Middle District of Pennsylvania

HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced that Jesse Brewer, age 40, of Jamaica, New York was convicted late yesterday of interference with commerce by robbery and use of a firearm during the commission of a crime of violence after a three-day jury trial in Harrisburg before U.S. District Court Judge William W. Caldwell.

According to United States Attorney Peter Smith, the jury returned with the verdict of guilty after approximately two hours deliberation. The charges were the result of a robbery that occurred on July 12, 2012 at White Jewelers in York, PA.  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, severely injuring him. Smallwood of Allentown, Pennsylvania pleaded guilty previously and was sentenced to 17 years in prison for his role in the robbery.  Forbes of Allentown, Pennsylvania pleaded guilty and is awaiting sentencing.  No sentencing date was set for Brewer.

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

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

 

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SCRANTON--The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 44-year-old Hazleton resident was indicted by a federal grand jury late yesterday in Scranton, on 10 counts of distribution and possession with intent to distribute heroin.

According to United States Attorney Peter Smith, the defendant, Israel Calcano-Garcia, a citizen of the Dominican Republic, allegedly committed the crimes between January 2015 and September 2015, in Luzerne County.

The charges in the indictment resulted from an investigation by the Drug Enforcement Administration, the Pennsylvania State Police, and Hazleton Police.

Eight of the charges allege that the defendant distributed heroin within 1,000 feet of a school. Each of those charges is punishable by a mandatory minimum one-year prison sentence and a potential maximum sentence of 40 years in prison. Calcano-Garcia faces up to 20 years in prison if he is convicted on the two other charges.

The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.

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

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

According to United States Attorney Peter Smith, Christopher Fleisher, age 35, of Harrisburg, Pennsylvania was charged in an indictment with being a felon in possession of a firearm and with possessing a stolen firearm. The indictment alleges the offenses occurred on June 4, 2015 in Harrisburg and involved a stolen .38 caliber Smith and Wesson handgun.

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

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

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

The maximum penalty under federal law is 10 years 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.

 

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the former Director of Marketing and Merchandising for the Pennsylvania Liquor Control Board (PA-LCB) pled guilty before U.S. District Court Judge Sylvia H. Rambo to a scheme to defraud the state, its citizens and the PA-LCB of their right to his honest services as a public official through bribes, kick-backs and concealing information.   

According to United States Attorney Peter Smith, James H. Short, Jr., age 50, of Harrisburg, Pennsylvania, admitted to the charge of Honest Services Mail Fraud.  Short was indicted by a grand jury in August 2015.

Short served as the Director of Marketing and Merchandising from approximately 2003 to 2012 and supervised the process through which alcoholic beverages are selected and acquired for sale in Pennsylvania’s state-run liquor stores.

By pleading guilty Short admitted to approximately 10 years (2002 to 2012) of receiving benefits from a distributor and a manufacturer of alcoholic beverages sold in Pennsylvania’s stores.  These benefits included all-expense paid golf trips, cash, gift cards, meals, and other benefits.

As Director of Marketing and Merchandising for the PA-LCB, Short supervised the process of recommending to the PA-LCB which new products should be sold and which products should no longer be sold in Pennsylvania’s 500 state-run liquor stores.

No date has been scheduled yet for Short’s sentencing.

The case is part of a continuing investigation by the Harrisburg Office of the FBI and is being prosecuted by Assistant United States Attorney Michael A. Consiglio. The case initially was brought by the Pennsylvania Ethics Commission which found that Short violated the Pennsylvania Ethics act when he accepted certain things of value charged in the present federal 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 for the offense 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 late yesterday a federal grand jury in Scranton indicted five federal inmates at the United States Penitentiary Canaan (“USP Canaan”), in Waymart, Pennsylvania, in separate cases involving alleged assaults with a dangerous weapon.

One of the incidents involves an assault by an inmate on correction officers.

According to United States Attorney Peter Smith, the following inmates were charged in the following cases:

Jerome Lummes, age 37, is charged with assaulting four correctional officers at USP Canaan on August 18, 2015.  Lummes also was charged with possessing a homemade weapon fashioned from a sharpened piece of metal, commonly known as a “shank.”

The maximum penalty under federal law for Lummes is 20 years of imprisonment for each assault count, a term of supervised release following imprisonment, and a $250,000 fine.  The maximum penalty under federal law is 5 years of imprisonment for the use of a dangerous weapon, a term of supervised release following imprisonment, and a $250,000 fine.

On June 3, 2015, inmate Reuben Blajos, age 41, originally from California, and inmate Manuel Vasquez-Perez, age 39, originally from Mexico, allegedly assaulted another inmate at USP-Canaan, repeatedly striking the victim with improvised weapons made by tying metal padlocks to prison-issued socks.

Blajos and Vasquez-Perez face up to 20 years’ incarceration and fines of up to $750,000.

James E. Carson, age 29, is charged with assaulting a fellow inmate at USP Canaan on July 12, 2015.  Carson also was charged with possessing a homemade weapon fashioned from a sharpened piece of metal, commonly known as a “shank.”

The maximum penalty under federal law for Carson is 15 years of imprisonment, a term of supervised release following imprisonment, and a fine.

Efrain Rodriguez, age 43, was charged with assaulting a fellow inmate at USP Canaan on July 23, 2015.  Rodriguez also was charged with possessing a homemade weapon fashioned from a razor blade and a toothbrush, commonly known as a “shank.”

The maximum penalty under federal law for Rodriguez is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine.

The investigations were conducted by the Federal Bureau of Investigation and officers from USP Canaan.  Lummes is being prosecuted by Assistant United States Attorney John C. Gurganus. Blajos and Vasquez-Perez and are being prosecuted by Assistant United States Attorney Peter Hobart.  Carson and Rodriguez are 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.

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 Chambersburg man has been indicted by a federal grand jury in Harrisburg on a charge of theft and fraud regarding federal workers’ compensation benefits he received from 2011 through 2014.

According to United States Attorney Peter Smith, Chad McClure, age 45, of Chambersburg, PA was charged in an five count indictment with fraudulently receiving $143,475.41 in benefits paid out under the Federal Employees Compensation Act (FECA). The Department of Labor’s Office of Workers’ Compensation administers the FECA program. The indictment alleges that McClure was a civilian employee of the U.S. Army Corps of Engineers.  In 2009, he went out on a disability claim.  From April 2011 through 2014, McClure, who claimed a work-related injury, concealed his employment and affiliation with, CM Pig Out, a catering services firm, during this same time period he submitted the forms each year by the Office of Workers’ Compensation for benefits to continue to be paid.

The case was investigated by the by the United States Department of Labor’s Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations. Prosecution is assigned to Assistant United States Attorney William A. Behe.

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

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

The maximum penalty under federal law is 10 years of imprisonment on each count of theft and 5 years on each count alleging FECA program fraud, 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 Scranton man was sentenced today in federal court in Scranton by United States District Judge Edwin M. Kosik to serve 60 months in prison on the charge of using an interstate communication device to entice a minor to engage in sexual activity.

According to United States Attorney Peter Smith, Hugo Perez Banda, age 28, pleaded guilty to utilizing the internet and a cellular device, to knowingly attempt to entice a minor to engage in sexual activity, in March 2015.

The charges were brought after Scranton Police received a complaint that Banda had communicated with a 14 year old minor using Facebook, and requesting the minor to both send photographs of her genital area to Banda over the internet, and to accompany Banda to a local motel in order to engage in sexual intercourse.

In addition to the prison term, Judge Kosik also ordered that Banda be supervised by a probation officer for five years following his release from prison.  It is also noted that Banda is subject to deportation upon his release from prison.

The investigation was conducted by Homeland Security Investigations, the Pennsylvania State Police, and the Scranton Police Department.  The case was prosecuted by Assistant United States Attorney Todd K. Hinkley.

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

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today Lori Haberle, age 45, of Kelayres, PA, has been charged in a one-count Indictment with misappropriation of Postal funds by a federal grand jury in Scranton. 

According to United States Attorney Peter Smith, in January through March 2015,  Haberle, a Postal Service support employee, misappropriated postal funds at the Kelayres and Quakake Post Offices in Schuylkill County, resulting in a loss of at least $1,155 to the United States Postal Service.

The investigation of this case was conducted by the United States Postal Service.  Prosecution is assigned to Assistant United States Attorney John C. Gurganus, Jr.

Haberle faces a maximum sentence of 10 years imprisonment and fines totaling $250,000.    

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 today that a Wilkes-Barre man pleaded guilty today in United States District Court in Scranton, before United States District Judge Malachy E. Mannion, to a federal heroin trafficking charge.

According to United States Attorney Peter Smith, Larry Hayes, age 28, admitted to the charge of possession with intent to distribute heroin. Hayes and another defendant were indicted by a grand jury in June 2015.

The charges stem from an incident in which investigators served a search warrant at a residence located on Sullivan Street in Wilkes-Barre and seized heroin from a bedroom in which Hayes was sleeping. From another bedroom in which the co-defendant was sleeping, investigators seized an additional amount of heroin and two firearms.

The investigation was conducted by the Wilkes-Barre Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF).

The charges against the co-defendant, Disean Kendricks, are still pending.

The cases are being prosecuted by Assistant United States Attorney Robert J. O’Hara.

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 U.S. District Court Judge Robert D. Mariani sentenced Robert Cagle, age 50, Bronx, New York on Friday, September 11, 2015 to 48 months imprisonment.  Cagle pled guilty in April 2015 to possession of fraudulent credit cards and aggravated identity theft.

According to U.S. Attorney Peter Smith, a Criminal Information was filed in March 2015 charging Cagle with access device fraud and aggravated identity theft.  Allegedly, in April 2014, Pennsylvania State Police conducted a search of a disabled vehicle on Interstate 81.  Cagle, a passenger in the vehicle, was found to be in possession of 71 fraudulent credit/debit cards, as well as equipment intended to be used for the manufacture of the counterfeit devices.

In addition to the prison term, Judge Mariani also ordered that Cagle be supervised by a probation officer for three years following his release from prison.

The case was investigated by the U.S. Secret Service and the Pennsylvania State Police and prosecuted by Assistant United States Attorney Michelle L. Olshefski.

 

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed in U.S. District Court in Scranton charging a Luzerne county man with stealing over $20,000 from the United States Postal Service by submitting multiple false insurance claims over an eight month period.

According to United States Attorney Peter Smith, on multiple occasions between October 2011 and June 2013, David Steele, age 44, of Luzerne County, Pennsylvania, submitted false insurance claims to the United States Postal Service, resulting in losses totaling $20,903.13.

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

This case was investigated by the United States Postal Service Office of the Inspector General. Prosecution is assigned to Assistant United States Attorney Peter Hobart.

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 $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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WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today a federal grand jury in Williamsport returned a two-count indictment charging three residents of Westmoreland County with conspiracy to distribute a half-pound of heroin.

According to United States Attorney Peter Smith, the grand jury charged Brian Keith Robinson, Cesare Biagio Palumbi, and Natawsha Durand with conspiracy to distribute approximately 224 grams (about a half pound) of heroin recovered in a rental vehicle following their arrests on February 26, 2015 by Scott Township Police Department officers on State Route 487 near Interstate 80 in Columbia County.  The indictment also charges them with distribution and possession of heroin.

Robinson, age 31, and Durand, age, 20, are residents of New Kensington, Pennsylvania.  Palumbi, age 23, is a resident of Irwin, Pennsylvania.

The investigation was conducted by the Federal Bureau of Investigation together with the Scott Township Police Department, South Centre Township Police, the Columbia County Drug Task Force, and the Columbia County District Attorney’s Office.  Assistant United States Attorney George J. Rocktashel has been assigned to the prosecution of this matter.

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 40 years of imprisonment, 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 today that U.S. District Court Judge Robert D. Mariani sentenced Frank McBride, age 29, of Scranton, to 110 months imprisonment. McBride pled guilty in March 2015 to bank robbery and attempted bank robbery, and Hobbs Act robbery (interference with commerce by threats or violence).

According to U.S. Attorney Peter Smith, the charges stemmed from an FBI investigation initiated in June of 2014 after a series of attempted bank robberies in Lackawanna County.  A similar scheme was used in each attempted bank robbery and McBride was identified as the perpetrator after review of video surveillance from bank locations and analysis of cell phone records.  Law enforcement later learned that McBride was responsible for robberies at gas stations/convenience stores in Scranton and Moosic.

In addition to the prison term, Judge Mariani also ordered that McBride be supervised by a probation officer for three years following his release from prison, and ordered him to make restitution in the amount of $9,829.

The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michelle L. Olshefski.

 

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that today a federal grand jury in Harrisburg returned an indictment against Jay Eugene Reed, age 55, a resident of Three Springs, Pennsylvania.  The indictment charges Reed with production of child pornography, possession of child pornography and tampering with witnesses.

According to United States Attorney Peter Smith, Reed was charged in July 2015 by the Pennsylvania State Police with sexually assaulting minors.  During the investigation, the State Police seized a cell phone, a computer, and other electronic devices belonging to Reed from his residence pursuant to search warrants. The Indictment alleges that Reed both produced and possessed images of child pornography found on several of the seized devices.  The Indictment also alleges that Reed attempted to tamper with a victim or witness by writing a letter asking the victim/witness not to talk to anyone about the case.  

Reed has been detained in custody since July 9, 2015 as a result of the sexual assault charges.

This investigation is being conducted by the Federal Bureau of Investigation, the Pennsylvania State Police and the Huntingdon County District Attorney’s Office and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.

If you have any information regarding this case, please contact Special Agent Clifton Vikara, FBI, at 814-234-0341.

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 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 that Rafael Sanchez, age 51 of Hazleton, Pennsylvania, was sentenced today in federal court in Scranton, by United States District Judge James M. Munley, to serve 94 months in prison after pleading guilty in April of this year to conspiracy to submit false claims and aggravated identity theft.

Sanchez was also ordered to serve an additional 3 years under court supervision upon his release from prison and to pay $694,237 in restitution to the Internal Revenue Service.

According to U.S. Attorney Peter Smith, Sanchez owned and operated Sanchez Multi Service, a check-cashing, tax preparation and money transfer business in Hazleton.  An Indictment returned by a federal grand jury last year alleged Sanchez and others used the identities of unknowing third parties to prepare and file fraudulent federal income tax returns.  The Indictment also alleged that Sanchez deposited and cashed fraudulently obtained federal tax refund checks totaling hundreds of thousands of dollars.   

Akeia Conner, Special Agent in Charge, Philadelphia Field Office stated, “The severity of today’s sentence sends a clear message to identity thieves who think they can defraud the United States Treasury.  The Internal Revenue Service, Criminal Investigation, along with the United States Attorney’s Office and our fellow law enforcement partners, will work diligently to pursue those who seek to enrich themselves at the expense of the American taxpayer.  The impact of identity theft on our taxpayers and our tax system is long lasting. The sentence imposed today tells identity thieves that the ramifications for their crime will also be long lasting.”

The investigation was conducted by the Scranton Office of the Internal Revenue Service, Criminal Investigation.  The IRS received assistance in the investigation from the Department of Homeland Security, Homeland Security Investigations (HSI) and the Hazleton City Police Department. The case was prosecuted by Assistant United States Attorney William S. Houser.

 

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WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal jury in Wilkes-Barre found Joseph P. Donahue, age 60, guilty of knowingly failing to surrender for service of a federal sentence pursuant to a court order, being a felon in possession of a firearm, being a fugitive from justice in possession of a firearm, and possession of a stolen firearm after a seven-day trial.  The case was tried before United States District Court Judge E. Richard Caputo.  Sentencing is scheduled for December 7, 2015.

According to United States Attorney Peter Smith, Donahue was previously convicted in March 2010 of sixteen felony counts including bank fraud, money laundering, false statements and credit card fraud after a two week trial.  On December 2, 2010, United States District Court Judge James M. Munley sentenced Donahue to 121 months’ incarceration and ordered Donahue to surrender himself to begin serving that sentence on January 4, 2011.  Donahue failed to report to a previously designated federal facility and a warrant for his arrest was issued.  He was apprehended on January 20, 2011 by United States Marshals in Los Cruces, New Mexico while operating under an assumed identity.  He possessed a firearm at the time of his arrest.

Donahue testified at trial. Donahue’s defense, in part, was that he failed to surrender to begin serving his sentence because he feared that he was being unfairly prosecuted by the government and he denied any knowledge concerning the firearm.  The jury received the case Tuesday afternoon, September 1, 2015 and returned a verdict of guilty on all counts after deliberating approximately 3 hours.

The evidence at the 2010 trial proved that Donahue enlisted and recruited shareholders, investors and partners in various businesses that the defendant owned and controlled, offering them, in exchange for their paying a share of the operating expenses, a share in the profits of the particular business.  With the knowledge of his partners, Donahue obtained credit cards from various financial institutions, putting the credit cards in the names of the investors, for the purpose of paying for the operating expenses of a particular corporation that the defendant owned and controlled.

Unbeknownst to the investors, however, Donahue obtained additional credit cards and loans from financial institutions in their names by obtaining on-line credit card applications and by forging their names on the applications, identifying corporations unknown to the partners.  Donahue then use these fraudulently-acquired credit cards to incur expenses to which the investors had not consented and for which they would be liable. By forging the investors= names to loan applications, Donahue also committed bank fraud and money laundering.

Donahue was also previously convicted after a 1989 federal trial of conspiracy and failure to comply with monetary instrument reporting requirements.  That trial involved evidence that Donahue conspired with drug trafficker Frederick “Rik” Luytjes to smuggle millions of dollars out of the United States while avoiding monetary reporting requirements and tax consequences for Luytjes.  United States District Court Judge Richard P. Conaboy sentenced Donahue to a two year term of imprisonment for those crimes.

The investigation was a collaborative effort between the United States Marshals Service and the Federal Bureau of Investigation.  The case was prosecuted by Assistant United States Attorneys Todd K. Hinkley and Michelle L. Olshefski.

 

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the former Director of Marketing and Merchandising for the Pennsylvania Liquor Control Board (PA-LCB) has been charged with a scheme to defraud the state, its citizens and the PA-LCB of their right to his honest services as a public official through bribes, kick-backs and concealing information.  

According to United States Attorney Peter Smith, James H. Short, Jr., age 50, of Harrisburg, Pennsylvania, is charged with Honest Services Mail Fraud in a Criminal Information filed today in the United States District Court in Harrisburg. Short served as the Director of Marketing and Merchandising from approximately 2003 to 2012 and supervised the process through which alcoholic beverages are selected and acquired for sale in Pennsylvania’s state-run liquor stores.  With over $1 billion in annual revenue, the PA-LCB is one of the largest purchasers of alcohol in the world.

The charge is based upon Short’s alleged 10 years (2002 to 2012) of receiving benefits from a distributor and a manufacturer of alcoholic beverages sold in Pennsylvania’s stores.  These benefits included all-expense paid golf trips, cash, gift cards, meals, and other benefits.

As Director of Marketing and Merchandising for the PA-LCB, Short supervised the process of recommending to the PA-LCB which new products should be sold and which products should no longer be sold in Pennsylvania’s 500 state-run liquor stores. Short has been charged with accepting things of value from the companies with the intent to be influenced in decisions he made to recommend new products and remove others from Pennsylvania liquor stores while failing to disclose the receipt of the items in annual financial reports he was required to submit to the State Ethics Commission as a public official.

The Information describes two alleged examples of all-expense paid trips to Florida. In February 2010, Short is alleged to have been taken by private jet on an all-expense paid golf outing to Bonita Bay, Florida with the purpose of influencing his decision to list a particular product for sale.  This trip, as well as a similar trip in December 2011, were part of an ongoing stream of benefits the vendor and manufacturer provided to Short to influence his decisions.  The specific mailing in the charge is correspondence Short allegedly caused to be sent to company A in February 2012 notifying the company of a PA-LCB decision approving the listing of the company’s products.

No date has been scheduled yet for entry of Short’s guilty plea. Together with the Criminal Information, the government also filed a plea agreement with Short, which is subject to the approval of the court, and a joint statement of facts concerning the offense.

The case is part of a continuing investigation by the Harrisburg Office of the FBI and is being prosecuted by Assistant United States Attorney Michael A. Consiglio. The case initially was brought by the Pennsylvania Ethics Commission which found that Short violated the Pennsylvania Ethics act when he accepted certain things of value charged in the present federal 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 for the offense 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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WILLIAMSPORT.  The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Williamsport men were indicted today by a federal grand jury for narcotics trafficking and possession of firearms in furtherance of their drug trade.

According to United States Attorney Peter Smith, the grand jury alleges that Anthony Gaskin, age 24, and Ibrahim Stevens, age 25, possessed crack cocaine and heroin in a Williamsport apartment.  These narcotics were found in a 2014 surveillance and investigation of the apartment by Williamsport police that also uncovered 3 unlicensed handguns and equipment and materials to weigh and package the drugs.

Both Gaskin and Stevens face charges of Conspiracy to Distribute Controlled Substances, Possession with the Intent to Distribute Controlled Substances, Possession of a Firearm in Drug Trafficking and Possession of a Stolen Firearm.  Gaskin also faces a count of Possession of a Firearm by a Felon.

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

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 of imprisonment, a term of 4 years’ supervised release following imprisonment, and a $5 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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HARRISBURG - A leader of the “Southside Gang” located in York, Pa. pled guilty to racketeering and drug trafficking conspiracy today before U.S. Magistrate Judge Karoline Mehalchick in Scranton.

According to United States Attorney Peter Smith, James Abney, a/k/a “Doocs”, age 29, of York, pled guilty as the parties prepare for a jury trial scheduled for September 21, 2015.  

On September 17, 2014, a federal indictment was brought by a grand jury in Harrisburg charging 21 one members of the Southside Gang with racketeering and drug trafficking conspiracy. In the indictment, the Southside Gang is identified as an alleged criminal enterprise whose purpose is to protect its territory and power through intimidation, violence and threats, generate profits primarily through open-air drug dealing within its territory and violent crime, defend and retaliate on behalf of gang members, and assist members through retaliation against witnesses and thwarting efforts of law enforcement.

According to the U.S. Attorney’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Essam E. Rabadi, the racketeering conspiracy indictment was the result of a two-year combined investigation by ATF, York City Police Department and the York County District Attorney’s Office with participation by the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, and the Federal Bureau of Investigation.

Assistant U.S. Attorney Michael A. Consiglio, William Houser, Joseph Terz, and Daryl Bloom are prosecuting the case.

The names of those charged in the indictment are listed at the end of this release.  They all were held in custody pending trial.

According to the indictment, all 21 men allegedly are or have been members or participants in the Southside Gang, which operated in the southern area of the City of York. The center of the alleged gang area is near Maple and Duke Streets in York, a location locally known as “the Jungle.”

The gang allegedly functions through an organized structure, including senior leaders, drug traffickers engaged in narcotics distribution; and “shooters,” who commit violent acts on behalf of the gang and to protect each other.  Order is allegedly maintained through intimidation, threats, violence and, in some cases, murder.

The indictment alleges that defendant James Abney has been a principal leader and organizer, along with six other indicted individuals.  The indictment also alleges that the Southside Gang includes a group of violent drug traffickers, originally affiliated with the “Bloods,” primarily a New York-based national violent street gang.

The indictment alleges criminal acts involving violence against a rival York gang, called “Parkway,” allegedly resulting in deaths of members of both gangs and innocent bystanders.

Southside Gang members allegedly distribute illegal drugs, mainly crack cocaine, as a major part of the criminal enterprise’s business and used and possessed firearms to protect the drugs.

Many Southside gang members have been investigated and prosecuted by York and York County law enforcement agencies for years as individual cases.  The federal prosecution aims at dismantling the organization by exposing and attacking its ongoing structure and leadership.  The federal investigations of gang violence and drugs in York are continuing in full cooperation with local police and the York County District Attorney’s Office.

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

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

In this case, the maximum penalty James Abney faces is 25 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

 

Name and Street Name                      Age

Rolando Cruz, a/k/a “Mico”                29

Marc Hernandez, a/k/a “Marky D”     29

Douglas Kelly, a/k/a “Killer”               36

Roscoe Villega, a/k/a “P Shawn”      40

James Abney, a/k/a “Doocs”             28

Tyree Eatmon, a/k/a “Ree”                26

Jahkeem Abney, a/k/a “Foo”             24

Maurice Atkinson, a/k/a “Mo”            27

Anthony Sistrunk, a/k/a “Kanye”       26

Cordaress Rogers, a/k/a “Tank”       28

Eugene Rice, a/k/a “B Mor”              26

Angel Schueg, a/k/a “Pocko”            24

Marquis Williams, a/k/a “Quis”         26

Jalik Frederick, a/k/a “Murder Cat”  21

Brandon Orr, a/k/a “B Or”                22

Malik Sturdivant, a/k/a “Base”         22

Jabree Williams, a/k/a “Minute”        23

Ronald Payton, a/k/a “Ron Ron”      22

Jerrod Brown, a/k/a “Boogie”           25

Quintez Hall, a/k/a “Q”                      21

Richard Nolden, a/k/a “Rich”            24

 

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania today announced the successful conclusion of the investigation and prosecution of a major Harrisburg-area drug trafficking organization and recognized the efforts of law enforcement agencies in the case.

United States Attorney Peter Smith particularly thanked Dauphin County District Attorney Ed Marsico and Harrisburg Police Chief Thomas Carter, for their key role as long-time partners in drug law enforcement in the Harrisburg area.

In 2011, the Drug Enforcement Administration and Internal Revenue Service Criminal Investigations in Harrisburg began investigating a large-scale drug trafficking organization whose members were bringing substantial quantities of cocaine hydrochloride into this area and distributing it to local drug dealers.  Some of it was cooked into crack cocaine.  Both the powder cocaine and crack cocaine were sold on the streets of Harrisburg.

The agents dubbed the investigation “Operation Ghost Hunter” because the main targets, including John Rawls and Antwaun Byrd, had eluded law enforcement for a long time.  The investigation involved court-authorized wiretaps as well as federal funding.  It resulted in the conviction of 22 drug dealers for drug offenses and money laundering.  In addition, law enforcement officers seized cash drug proceeds, firearms, and luxury cars.

During the course of the investigation, agents learned that, generally, Harrisburg-area dealers, including Antwaun Byrd, sent couriers by Amtrak to the Atlanta, Georgia, area.  The couriers carried cash which they turned over to Rawls who, in turn, provided them with large quantities of cocaine hydrochloride.  The couriers traveled back to Harrisburg, usually by bus, and turned the drugs over to Byrd and other members of the organization.  Drug proceeds were laundered, in part, through the purchase and sale of luxury automobiles.

The last of the defendants, and one of two defendants convicted at jury trials, was sentenced today by U.S. District Court Judge William Caldwell this morning.  The Court sentenced Shaine L. Williams, age 44, of Harrisburg, to 144 months’ imprisonment.  Previously, Judge Caldwell sentenced Adrian Totton, the other defendant who went to trial, to 240 months’ imprisonment.  The prosecutor was Assistant U.S. Attorney Christy Fawcett, currently head of the Organized Crime Drug Enforcement Task Force in the U.S. Attorney’s Office.

Other defendants received substantial sentences as well (see the attached list).  Nearly all these defendants were drug dealers or career criminals or both.  The drug seizures included three kilos of cocaine hydrochloride seized from Rawls’ house in Atlanta, another three kilos seized from a courier at the Harrisburg bus station, and a half kilo of methamphetamine seized in Atlanta, as well as additional drugs.

Eight firearms, including a pistol-grip shotgun, were seized.  One of the more unusual firearms that was seized was a handgun the drug dealers called “Pinky.”

Five luxury vehicles paid for with drug profits and used to transport drugs were confiscated.  These included two BMWs, two Mercedes Benz, and a Cadillac Escalade.

Agents and officers seized almost $620,000 in cash, including $435,000 found at a safe in a house owned by Rawls in Atlanta.

The U.S. Attorney’s Office announced that $432,103 of that money was turned over to its partners in local law enforcement to fund their efforts in drug law enforcement, including $340,386.59 that went to the Dauphin County Drug Task Force.

This case, and other similar ongoing cooperative and joint efforts, demonstrate the remarkable and often unsung work of state and local law enforcement in the effort to combat criminal activities involving illegal drugs as part of their overall responsibility to protect the public.

Other law enforcement agencies and law enforcement personnel contributed significantly to this case.  They include the DEA Atlanta Field Division Strike Force Group 1,  IRS Criminal Investigations in Atlanta, the United States Marshals Service, Dauphin County Probation, Lebanon County Drug Task Force, the Pennsylvania Office of Attorney General’s Bureau of Narcotics Investigation, the Clayton County Georgia, Sheriff’s Office, The Columbia County, Pennsylvania Sheriff’s Office, and the North Carolina State Highway Patrol.

 

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WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Williamsport has indicted Alexander Cebilla-Amaya on charges of Illegal Reentry to the United States after a prior deportation.

According to United States Attorney Peter Smith, Cebilla-Amaya, age 38, of Honduras, was charged in an indictment alleging that he illegally re-entered the United States after having been previously deported in 2013. In April 2015, he was arrested in Towanda, Pennsylvania.

The case was investigated by the by the Allenwood Office of Immigration and Customs Enforcement. Prosecution is assigned to Assistant United States Attorney Geoffrey W. MacArthur.

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 two 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 U.S. District Court Chief Judge Christopher C. Conner sentenced Jerome Knight, age 35, of Chambersburg, Pennsylvania today to 30 months imprisonment in federal court in Harrisburg.  Knight pleaded guilty on March 26, 2015 to distribution and possession with intent to distribute a controlled substance.

According to United States Attorney Peter Smith, Knight obtained cocaine in New York and distributed it in Chambersburg and in Maryland.  When he was arrested by the Pennsylvania State Police, bags containing more than 200 grams of powder cocaine were seized from his vehicle.

This case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Meredith A. Taylor.

 

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SCRANTON -The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 45-year-old Tobyhanna man who admitted to producing child pornography was sentenced today to 270 months (22.5 years) in prison by U.S. District Court Judge Malachy E. Mannion in Scranton.

According to United States Attorney Peter Smith, the defendant, Robert Ferraro, previously pleaded guilty in May 2015 to using and persuading a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. Ferraro committed the offense between August 2013 and January 2015.  The criminal conduct involved Ferraro sexually abusing a six-year-old child, videotaping the abuse, and uploading the video to the internet.

Ferraro was indicted by a federal grand jury in March 2015, as a result of an investigation by Homeland Security Investigations, the Pennsylvania State Police, and the Monroe County District Attorney’s Office.

Judge Mannion ordered Ferraro to serve 10 years on supervised release following his prison sentence. Ferraro must also register as a sex offender and comply with all of the requirements of the Sex Offender Registration and Notification Act.

This case was brought as part of Project Safe Childhood, a nationwide initiative

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

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

 

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HARRISBURG -The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 47-year-old Boston man was sentenced today to 324 months (27 years) in prison by U.S. District Court Chief Judge Christopher C. Conner in Harrisburg.

According to United States Attorney Peter Smith, the defendant, Fremo Santana, previously pleaded guilty in December 2014 to conspiracy to distribute and possess with intent to distribute heroin and cocaine hydrochloride.

Santana was known as the leader of a drug trafficking organization and was a major Boston-based source of supply of cocaine and heroin to distributors in Harrisburg. Santana maintained a premises in Harrisburg and utilized couriers to travel between Harrisburg and the Boston area.   

Santana was indicted by a federal grand jury in April 2012, as a result of an investigation by the Drug Enforcement Administration and the Dauphin County Drug Task Force.

Assistant U.S. Attorney Daryl F. Bloom prosecuted the case.

 

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a York County woman was sentenced today to 5 years’ probation by U.S. District Court Judge Sylvia H. Rambo for theft of public funds.

According to United States Attorney Peter Smith, Melissa Ann Arnold, age 46, was charged in February 2015 for stealing more than $300,000 from tax payments made by citizens to Spring Garden Township, York County during 2008 and 2009. Arnold was the Treasurer and Tax Collector for Spring Garden Township from 1995 until October 2009.  Arnold was able to steal the tax payments because many of the checks were written out to her and, rather than deposit the checks into the Township’s account, she deposited them into her personal account.

Arnold pled guilty in March 2015.

York County submitted an insurance claim for the funds and received a significant repayment.  Arnold entered into an agreement with the insurance company to pay back the full amount of the claim and has already paid almost $50,000 of the amount due.

Judge Rambo made payment of the balance, as well as an additional sum of almost $28,000 to Spring Garden Township for related losses, part of Arnold’s sentence in a restitution order.

The case was investigated by the Federal Bureau of Investigation with assistance of the Pennsylvania State Police and Spring Garden Township Police Department, and was prosecuted by Assistant U.S. Attorney James T. Clancy.

          

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Alan Folweiler, age 22, of Pittston, Pennsylvania, was sentenced to 63 months’ imprisonment by United States District Court Judge Malachy E. Mannion for participating in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”

According to United States Attorney Peter Smith, Folweiler pleaded guilty in April 2015 to his involvement in the conspiracy which was responsible for distributing large quantities of alpha-pvp, a controlled substance analogue, to others during 2011 through 2013.

Folweiler was indicted by a federal grand jury in August 2014, following an investigation by Department of Homeland Security agents, the Pennsylvania State Police, and West Pittston Police.

Judge Mannion also ordered Folweiler to serve three years on supervised release following his prison sentence, and to pay a special assessment of $100.

The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.

 

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an indictment was returned late yesterday by a grand jury in Scranton charging a Scranton man with robbing the West Scranton branch of PNC Bank.

According to United States Attorney Peter Smith, the indictment charges that on July 14, 2015, Chester Williams, age 31, robbed the West Scranton PNC bank of five hundred forty dollars ($540).

This case was investigated by the Federal Bureau of Investigation and the Scranton Police Department. Prosecution is assigned to Assistant United States Attorney Peter Hobart.

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

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

The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $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 a 26-year-old Scranton man pleaded guilty yesterday before Senior U.S. District Court Judge James M. Munley to conspiracy to commit sex trafficking of a minor.

According to United States Attorney Peter Smith, Jimmy Cantelmo admitted to conspiring with his brother, Sean Cantelmo, and others to persuade a minor to engage in prostitution 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; purchasing and providing condoms for the minor to use during commercial sex acts; and serving as security or “bodyguards” at the motels where the commercial sex acts took place.

Jimmy Cantelmo was indicted by a federal grand jury in Scranton in April 2015, as a result of an investigation by Homeland Security Investigations and the Pennsylvania State Police. Four persons have been charged in connection with the investigation. Sean Cantelmo previously pleaded guilty and was sentenced to 151 months in prison. Justin Strait pleaded guilty and is awaiting sentencing.

Judge Munley scheduled sentencing for November 18, 2015. Cantelmo faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison. Cantelmo remains detained in prison pending sentencing.

Prosecution is assigned to Assistant United States Attorney Francis P. Sempa.

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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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Middletown man was sentenced today in U.S. District Court in Harrisburg to 84 months’ imprisonment by United States District Judge John E. Jones, III for receipt of child pornography.

According to United States Attorney Peter Smith, the defendant, Steven Alan Shepherd, age 30, previously pleaded guilty to the receipt of child pornography in January 2015.  Judge Jones also ordered Shepherd to pay restitution in the amount of $135,000.

The charges resulted from a search of Shepherd’s home on May 1, 2014, where over 21,000 images and 909 video files of child pornography were located and seized.  Shepherd received the material via a computer in 2010.

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."

This case was investigated by the United States Postal Inspection Service, Homeland Security Investigations and the Pennsylvania State Police and prosecuted by Assistant United States Attorney Daryl F. Bloom.

 

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Luzerne County man was indicted late yesterday by a federal grand jury in Scranton for heroin trafficking.

According to United States Attorney Peter Smith, the indictment charges Pedro Noriega, age 42, of Plymouth, Luzerne County, with possession with intent to distribute heroin.

The charge stems from an investigation in April 2015 which investigators arranged to make a purchase of heroin from Noriega and then obtained a search warrant for Noriega’s residence on West Main Street in Plymouth, and allegedly seized approximately 495 bags of suspected heroin, 19 grams of raw heroin, packaging materials and drug paraphernalia from a bedroom in the residence.

The investigation was conducted by the Luzerne County Drug Task Force, the Bureau of Narcotics Investigations (BNI) of the Pennsylvania Office of Attorney General, and the Bureau of Alcohol, Tobacco and Firearms (ATF).  Prosecution is assigned to Assistant United States Attorney Robert J. O’Hara.

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

 

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that, as the result of ongoing cooperation among local, state and federal law enforcement agencies, indictments were returned late yesterday by a grand jury in Scranton charging four men in separate cases with possession of firearms in connection with drug-dealing activity in Luzerne County communities.

The charges were part of an ongoing cooperative effort by federal, state and local law enforcement against violent crime in Luzerne County.

According to United States Attorney Peter Smith, on February 4, 2015, Jeffery Stevens, 32, of Wilkes-Barre, Pennsylvania, was arrested by agents of the Pennsylvania Attorney General’s Bureau of Narcotics Investigations following an alleged heroin transaction at a hotel room in Plains Township. At the time of his arrest, the defendant was allegedly in possession of heroin, a .380 semi-automatic pistol with an obliterated serial number, a 9mm semi-automatic pistol with an obliterated serial number, a .357 revolver, 135 rounds of ammunition and $1,410 in United States currency.

On June 12, 2015, Dennis Couvertier, 43, of Luzerne, was arrested by Kingston Police detectives allegedly following the third of three cocaine transactions that took place between June 3 and June 12. At the time of his arrest, Couvertier was allegedly in possession of a .45 caliber semi-automatic pistol, a 9 mm semi-automatic pistol, 43 rounds of ammunition and $2,916 in United States currency.

On July 11, 2015, Joshua Harris, 26, of Newark, New Jersey, was arrested for allegedly distributing marijuana and possessing marijuana with the intent to distribute it following a routine traffic stop by the Edwardsville Police. At the time of his arrest, Harris—an alleged felon who is not permitted to possess firearms—was allegedly in possession of a Chinese assault-style rifle with 30-round magazines, 50 rounds of ammunition and $669 in United States currency.

The investigation of these cases was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives working in conjunction with the Attorney General’s Bureau of Narcotics Investigations, the Kingston Police and the Edwardsville Police. Prosecution is assigned to Assistant United States Attorney Peter Hobart.

A fourth Indictment charges Aaron Bangaroo, age 35, of Kingston, with possession with intent to distribute heroin and cocaine, two counts of distribution of heroin, possession of firearms in furtherance of a drug trafficking crime, and being a convicted felon in possession of firearms.

The charges stem from an investigation in which police made two purchases of heroin from Bangaroo and then obtained a search warrant for Bangaroo’s residence, located on South Gates Avenue in Kingston, and seized heroin, cocaine, two firearms and ammunition from a bedroom in the residence.

The investigation was conducted by the Kingston Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF).  Prosecution is assigned to Assistant United States Attorney Robert J. O’Hara.

Couvertier faces a minimum term of 5 years and up to life imprisonment as well as fines totaling $1,250,000.   Harris faces a minimum term of 5 years and up to life imprisonment as well as fines totaling $500,000.  Stevens faces a minimum term of 5 years and up to life imprisonment  as well as fines totaling $1,500,000.  Bangaroo faces a minimum term of 5 years and up to life imprisonment as well as a $250,000 fine.

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 criminal Information was filed today charging a Hazleton resident with distributing more than 100 grams of heroin and illegally reentering the country after having been removed as an illegal alien.

According to United States Attorney Peter Smith, the Information alleges that Edwin Guerrero-Guerrero a/k/a “Angel Dueno Matos,” age 35, who is a citizen of the Dominican Republic and was residing in Hazleton at the time of his arrest, distributed and possessed with intent to distribute more than 100 grams of heroin, and illegally reentered the United States after having been previously removed as an illegal alien.

The charges stem from an investigation by special agents and task force officers of the Federal Bureau of Investigation, Homeland Security Investigations, and Hazleton Police.

Guerrero-Guerrero faces a potential maximum sentence of 40 years in prison and a $5 million fine if he is convicted of the drug charge, and up to 20 years in prison and a $250,000 fine if he is convicted of the illegal reentry charge.

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

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

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

The maximum penalty under federal law is a total of 60 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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The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that a unique partnership has been formed consisting of local, regional and national private business entities to aid moderate to high-risk offenders in the federal criminal justice system, who have been recently released into the community.

The U.S. District Court for the Middle District of Pennsylvania operates the Court Assisted Re-Entry (CARE) Program, which is a four-phase program designed to aid in the rehabilitation and re-integration of recently released federal inmates.  The members of the program include the U.S. District Court, U.S Attorney’s Office, U.S. Probation, Federal Public Defenders Office and county volunteers.

A new partnership between ESSA Bank & Trust, Northampton Community College, Pyramid Healthcare Inc. and the CARE Program institutes a precedent setting program whereby CARE participants will team with a bank, community college and healthcare officials to help them get back on their feet.

ESSA Bank & Trust will institute a Financial Literacy Program where CARE participants will be instructed by bank officials on money management issues.  In addition, it will institute a CARE Loan Program that would provide loans up to $15,000 to qualifying active CARE participants and CARE graduates for housing, education/training, or transportation.  On Aug. 12, 2015, the official launch of the program, ESSA Bank & Trust announced its first loan in the amount of $13,750 for a CARE participant to purchase a car as transportation to her employment.

Northampton Community College will provide educational opportunities including a G.E.D. program and adult basic education courses.

Pyramid Healthcare Inc. will administer a drug and alcohol treatment and counseling program and perform a Level of Care Assessment for each participant entering into the CARE program.     

The combined partnership of the CARE Program will assist individuals under federal supervision to successfully re-enter their communities and become responsible, self-sufficient, contributing and law-abiding citizens. 

In early 2013, the Justice Department launched a comprehensive review of the criminal justice system in order to identify reforms that will ensure felony laws are enforced more fairly and more efficiently.

This review led to the Smart on Crime initiative announced by Attorney General Eric Holder in August 2013, which maps a way forward for meeting our criminal justice challenges, including bolstering prevention and reentry efforts to deter crime and reduce recidivism.  The new CARE partnership with ESSA Bank & Trust, Northampton Community College and Pyramid Healthcare is a step forward in the “Smart on Crime” initiative and reinforces the Justice Department’s commitment to making the criminal justice system work more efficiently.

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a unique partnership has been formed consisting of local, regional, and national private business entities to aid moderate to high-risk offenders in the federal criminal justice system, who have been recently released into the community.

The U.S. District Court for the Middle District of Pennsylvania operates the Court Assisted Re-Entry (CARE) Program, which is a four-phase program designed to aid in the rehabilitation and re-integration of recently released federal inmates. The members of the program include the U.S. District Court, U.S Attorney’s Office, U.S. Probation, Federal Public Defenders Office, and county volunteers.

A new partnership between ESSA Bank & Trust, Northampton Community College, Pyramid Healthcare, Inc., and the CARE Program institutes a precedent setting program whereby CARE participants will team with a bank, community college and healthcare officials to help them get back on their feet.

ESSA Bank & Trust will institute a Financial Literacy Program (FLP) where CARE participants will be instructed by bank officials on money management issues. In addition, it will institute a CARE Loan Program that would provide loans up to $15,000 to qualifying active CARE participants and CARE graduates for housing, education/training, or transportation.  On August 12, 2015, the official launch of the program, ESSA Bank & Trust announced its first loan in the amount of $13,750 for a CARE participant to purchase a car as transportation to her employment.

Northampton Community College will provide educational opportunities including a G.E.D. program and adult basic education courses.

Pyramid Healthcare, Inc. will administer a drug and alcohol treatment and counseling program and perform a Level of Care Assessment for each participant entering into the CARE program.    

The combined partnership of the CARE Program will assist individuals under federal supervision to successfully re-enter their communities and become responsible, self-sufficient, contributing, and law-abiding citizens.

In early 2013, the Justice Department launched a comprehensive review of the criminal justice system in order to identify reforms that will ensure felony laws are enforced more fairly and more efficiently.

This review led to the “Smart on Crime” initiative announced by Attorney General Eric Holder in August 2013, which maps a way forward for meeting our criminal justice challenges, including bolstering prevention and reentry efforts to deter crime and reduce recidivism.  The new CARE partnership with ESSA Bank & Trust, Northampton Community College and Pyramid Healthcare is a step forward in the “Smart on Crime” initiative and reinforces the Department’s commitment to making the criminal justice system work more efficiently.

 

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HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania, announced that a Harrisburg man has been sentenced to 80 months incarceration by Chief U.S. District Court Judge Christopher C. Conner for threatening to kill a federal law enforcement officer.

According to U.S. Attorney Peter Smith, Abraham Cruz, age 54, was indicted by a federal grand jury in Harrisburg four years ago after Cruz allegedly threatened employees at the Social Security Office in Harrisburg in August 2011.  Later that day when Cruz was contacted by an agent from the Department of Homeland Security’s Federal Protective Service, who was investigating the incident, Cruz repeated the threats in two separate telephone conversations with the agent.  During both conversations, one of which was recorded, Cruz also threatened to kill the agent.

Cruz went to trial on the charges in April 2012, he was convicted by a jury on two counts of threatening a federal law enforcement officer.  Sentencing was delayed until today while Cruz underwent a period of evaluation and treatment at the U.S. Bureau of Prisons medical facility at Butner, North Carolina. In imposing the 80 month sentence, Chief Judge Connor cited Cruz’s lengthy criminal history record and the need to protect the public.

The case was prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.

 

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hung Danh, age 55, of Harrisburg, Pennsylvania, pled guilty to conspiracy to evade $337,000 in employment taxes in connection with his operation of an employee leasing business known as HD Staffing.  The guilty plea was accepted by U.S. District Court Judge John E. Jones, III and sentencing was scheduled for January 2016.

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 is assigned to Assistant United States Attorney Bruce Brandler, Chief of the Criminal Division.

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

 

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Franklin County man was taken into custody on charges of production, distribution and possession of child pornography.

According to United States Attorney Peter Smith, late yesterday a grand jury in Harrisburg indicted Martin Allen Mentzer, age 44, for allegedly producing child pornography in his home by using a 13 year old boy to engage in sexually explicit conduct for the purpose of producing the visual depictions of the activity.  The conduct allegedly took place during a period beginning in October 2014.

This case was investigated by the Federal Bureau of Investigation 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 60 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 grand jury in Harrisburg has indicted a local thoroughbred horse trainer on charges of wire fraud and conspiracy.

According to United States Attorney Peter Smith, Murray L. Rojas, age 49, of Grantville, Pennsylvania was charged in a five count indictment with wire fraud and conspiracy for conduct related to 11 races in which she had horses entered at Penn National Race Course in early 2013.

The indictment alleges that Rojas directed and conspired with unnamed and unindicted coconspirator veterinarian(s) to administer substances to horses on the day the horses were entered to race, in violation of the Pennsylvania law and racing rules and regulations prohibiting the administering of those substances.

The indictment further alleges that steps were taken to conceal this conduct by the backdating of invoices for the sale and administration of drugs to the horses on race day, as well as submitting fraudulent veterinarian treatment reports to the Pennsylvania Racing Commission. The purse money for the races is funded by the interstate electronic transfer of funds and the transmission of these funds that are used to pay successful owners/trainers is essential to the alleged scheme to defraud.

The indictment also alleges that Rojas obtained winnings totaling $52,360 from the 11 races in which it is alleged she directed the administration of prohibited substances to her horses.

The case was investigated by the by the Harrisburg Office of the Federal Bureau of Investigation and Pennsylvania Department of Agriculture’s Horse Racing Commission. Prosecution is assigned to Assistant United States Attorney William A. Behe.

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

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

The maximum penalty under federal law is 20 years 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.

 

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that disorderly conduct charges have been filed in Scranton against a Binghamton, New York man resulting from his alleged actions occurring at the conclusion of a detention hearing.  The criminal information charges that Karl E. Kelly, age 35, engaged in threatening and tumultuous behavior, and used obscene language within the William J. Nealon Federal Building and United States Courthouse in Scranton.    

According to United States Attorney Peter Smith, Kelly attended the detention hearing of a friend who was charged with allegedly committing an armed bank robbery.  At the conclusion of the hearing on June 25, 2015, Senior United States District Judge James M. Munley ordered the defendant in that case detained pending trial.  As Kelly was leaving the courtroom, he allegedly used obscene language and made a threatening comment about a third person.

The investigation was conducted by the Federal Bureau of Investigation and prosecution is assigned to Assistant U.S. Attorney John Gurganus.

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 90 days imprisonment and a $300 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 Vincent Fearon, age 33, of Scranton, Pennsylvania, was sentenced today in federal court in Scranton, by Senior United States District Edwin Kosik, to serve 57 months in prison on a charge of conspiracy to distribute crack cocaine.  Fearon was ordered to serve an additional 3 years under court supervision upon his release from prison.

Fearon was charged after an investigation conducted by the Pennsylvania State Police, the Federal Bureau of Investigation, the Wilkes-Barre City Police Department, the New Jersey State Police and the Internal Revenue Service.  The investigation commenced after a routine traffic stop in January 2012, conducted on Interstate 81 in Susquehanna County by the Pennsylvania State Police of a car driven by Paul Rivera of Brooklyn, New York. During the stop, troopers discovered a distribution quantity of cocaine in the trunk of the vehicle.  Rivera and other occupants of the car were initially charged with drug offenses in state court.

Further investigation by multiple law enforcement agencies revealed that Rivera was affiliated with “TF Mafia,” a group engaged in criminal activity as well as the production of rap music videos. Ultimately, the investigation resulted in racketeering and other charges being brought in the Eastern District of New York against Rivera and Michael Garrett, also of Brooklyn.

Rivera and Garrett were convicted at trial in federal court in Brooklyn earlier this year and face mandatory minimum sentences of life in prison as a result of the jury’s finding they committed a murder in furtherance of their racketeering activity.

Vincent Fearon, Hassan Woods and others were charged in federal court in Scranton as a result of their involvement in drug trafficking with TF Mafia.  Woods was previously sentenced by Judge Kosik to 10 years in prison.

United States Attorney Peter Smith used the occasion of Fearon’s sentencing today to present letters of commendation to 14 individuals from the Pennsylvania and New Jersey State Police, the FBI Scranton Task Force and FBI New York Office and local law enforcement who participated in the investigation.

The case was prosecuted in the Eastern District of New York by Assistant United States Attorneys Taryn Merkl, Alixandra Smith and Michael Robotti.  The case was prosecuted in the Middle District of Pennsylvania by Assistant United States Attorney William S. Houser.

 

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Kman, age 51, of Harrisburg, pleaded guilty yesterday to   production of child pornography before United States District Court Judge Sylvia H. Rambo in Harrisburg.

According to United States Attorney Peter Smith, the charges against Kman were a result of Kman inducing, persuading and coercing his daughter, then age 17, to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual activity.

The investigation was conducted by the Federal Bureau of Investigation and the East Pennsboro Police Department.  The case is being prosecuted by Assistant United States Attorney Joseph J. Terz.  A sentencing date has not yet been set.

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 of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Kman also faces a mandatory minimum sentence of 15 years in prison.  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 Jorge Salazar, age 57, of Georgia pleaded guilty on Wednesday, July 29, 2015, to wire fraud, money laundering and aggravated theft charges before United States District Court Judge Sylvia H. Rambo in Harrisburg.

According to United States Attorney Peter Smith, the charges against Salazar were a result of a fraudulent investment scheme he carried out in Adams County, Pennsylvania from 2012 through 2014.  The investment scheme netted about $360,000.

The investigation was conducted by the Federal Bureau of Investigation, the Internal Revenue service, Criminal Investigations, and the Pennsylvania State Police.  The case is being prosecuted by Assistant United States Attorney Joseph J. Terz.  A sentencing date has not yet been set.

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 42 years of imprisonment, a term of supervised release following imprisonment, and a $750,000 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 Hershey Medical Center Research Technologist has been indicted by a federal grand jury in Harrisburg on health care fraud and false statements charges in connection with performing flawed genetic diagnostic tests for 124 cancer patients.

According to United States Attorney Peter Smith, Floyd Benko, age 60, a former research technologist at the Hershey Medical Center in Hershey, PA, is charged with one count of health care fraud and two counts of false statements in health care matters.

The Indictment was sealed pending Benko being taken into custody.  He surrendered today, the Indictment was unsealed and Benko had his initial appearance in court before U.S. Magistrate Judge Susan E. Schwab. Benko was released on his own recognizance. Trial has been tentatively scheduled for September 14, 2015 before U.S. District Court Judge Yvette Kane.

According to the Indictment, Benko, a resident of Palmyra, PA, allegedly performed gene mutation tests for 124 advanced stage cancer patients at the Medical Center in 2013 and 2014. These tests help physicians diagnose a patient’s particular type of cancer so that specifically tailored treatments can be administered to the patient.

Benko allegedly did not perform the tests, or assays, in the manner called for by Hershey’s standard operating procedures.  Subsequent retesting of the patients revealed that 60 of the 124 patients had results that varied from results obtained by an outside laboratory. The Medical Center considers those results as “discordant.”

Benko is charged in the two false statement counts with lying to administrators of the Hershey Medical Center about how he conducted the assays in two written statements he provided the hospital in April and October of 2014. Benko also allegedly failed to disclose and concealed the fact that he did not follow standard Hershey operating procedures by not preserving the patients’ leftover tissue and DNA samples.

According to the Indictment, the Hershey Medical Center incurred losses totaling $102, 406 as a result of Benko’s fraud, $65,000 for outside laboratory testing and $37,406 for assay refunds.

Hershey Medical Center reported the incident to law enforcement agencies and is cooperating with the investigation. According to the Medical Center, the patients who had a discordant test result in the relevant time period have been notified by the Center. Persons seeking further information concerning the flawed tests should contact Hershey Medical Center’s Chief Medical Officer at 717-531-4595. The Medical Center provided information regarding this case on its website on September 23, 2014. http://pennstatehersheynewsroom.org/press-resources/statements/penn-state-hershey-provides-information-about-molecular-lab-inconsistencies/

Benko resigned from his position at the Medical Center in April 2014.

The case is being investigated by the Harrisburg Office of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Kim Douglas Daniel and Anthony Scicchitano.

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 $250,000 fine. The maximum term of imprisonment for False Statements in Health Care Matters 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 Mitchell Orewiler, age 34, of Adams County, was sentenced yesterday in U.S. District Court in Harrisburg to 15 months’ imprisonment by United States District Court Judge Sylvia H. Rambo for filing false claims with the Internal Revenue Service (IRS) relating to refunds.

According to United States Attorney Peter Smith, in April 2009, Orewiler filed an amended 2006 and 2007 Federal Income Tax return and a 2008 Federal Income Tax return.  Based on false 1099 forms, Orewiler attached to these three returns, Orewiler made a claim to a refund amount of approximately $506,000.  As a result, he received approximately $324,000 from the IRS to which he was not entitled.  In addition to the prison term, Judge Rambo ordered Orewiler to pay restitution in the amount of $324,000.

Orewiler was indicted by a federal grand jury in March 2014, as a result of an investigation by the Internal Revenue Service, Criminal Investigation.  He pleaded guilty to the charges in April 2015.

The case was prosecuted by Assistant U.S. Attorney Joseph J. Terz.

 

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The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Philadelphia man was indicted late yesterday by a federal grand jury in Harrisburg on a charge of allegedly passing counterfeit $100 bills in four central Pennsylvania counties between October 2014 and March 2015.

According to United States Attorney Peter Smith, Harvey Blake, age 46, of Philadelphia, Pennsylvania was charged in a one count indictment with passing $17,900 in counterfeit $100 bills in Dauphin, Franklin, York and Cumberland Counties. The bills were allegedly used to purchase merchandise at Home Depot, Lowes and Walmart stores in the four counties.

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. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.

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

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

The maximum penalty under federal law is 20 years 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.

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SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Hazleton man was sentenced today in U.S. District Court in Wilkes-Barre to 63 months’ imprisonment by United States District Judge A. Richard Caputo for wire fraud and income tax evasion.

According to United States Attorney Peter Smith, Joseph S. Hyduk, age 55, pleaded guilty to the charges in November 2014.  Hyduk was indicted in August 2014.

Hyduk did business as BNA Financial Services, an insurance company which he operated from his home.  During 2010 through 2012, Hyduk fraudulently diverted approximately $1 million dollars from his clients’ accounts to himself for his own personal use.

In addition to the prison term, Hyduk will be supervised by a probation officer for three years following his release from prison and will be required to pay restitution.  A court order for restitution will be finalized within the next 60 days.  Hyduk was ordered to report on August 17, 2015 to a federal prison to be designated later.  As part of the case, the government also sought forfeiture of cash, real property and vehicles owned by Hyduk.

The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.  The case was prosecuted by Assistant U.S. Attorney Michelle Olshefski.

 

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Harrisburg man was indicted late yesterday by a federal grand jury in Harrisburg for being a felon in possession of a firearm.  Shaun L. Graves, age 32, was charged with unlawful possession and one count of possessing a firearm with an obliterated serial number.

According to United States Attorney Peter Smith, the Indictment stems from an October 16, 2014, incident in which Graves was arrested by Harrisburg police officers in South Harrisburg and found to be in possession of a loaded Bersa .380 caliber semiautomatic pistol bearing an obliterated serial number.

The case is being investigated by the Harrisburg Office of the ATF as part of an ongoing effort by federal and local law enforcement to combat violent crime 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 the felon in possession charge is life imprisonment. The maximum term of imprisonment for the obliterated serial number charge 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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SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 58-year-old Berwick man was sentenced today to 200 months in prison by Senior U.S. District Court Judge A. Richard Caputo in Wilkes-Barre, for producing child pornography.

According to United States Attorney Peter Smith, the defendant, Rickie Sitler, previously pleaded guilty to using a four-year-old child to engage in sexually explicit conduct for the purpose of producing images of such conduct. Sitler committed the crime between late November to early December 2014.

Sitler was indicted by a federal grand jury in March 2015, as a result of an investigation by agents of Homeland Security Investigations, the Berwick Police Department, and the Columbia County District Attorney’s Office.

Judge Caputo also ordered Sitler to serve 10 years on supervised release following his prison sentence and to pay a special assessment of $100.

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

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

 

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a York County woman was sentenced late yesterday to 30 months’ imprisonment by U.S. District Court Judge Yvette Kane in Harrisburg, for wire fraud.  She was also ordered to pay $83,467.78 in restitution to the victim of the fraud.

According to United States Attorney Peter Smith, Nancy Sipe, age 47, pleaded guilty on October 28, 2014 to one count of wire fraud.  Sipe was indicted by a Grand Jury in Harrisburg in January of 2014.

The charge was based on conduct occurring between August 2008 and February 2012, while Sipe was acting as power-of-attorney for her brother-in-law.  During this time Sipe used the victim’s bank and retirement accounts, without authorization, to fund personal vacations, daily expenses and shopping sprees for herself and her family.  Sipe also wrote out thousands of dollars in checks to herself.  Although Sipe pled guilty, she claimed at the sentencing hearing that she was only responsible for $33,742.43 of loss to the victim, claiming that she provided over $26,000 in cash to the victim’s mother.  Judge Kane found Sipe’s testimony to be not credible and sentenced Sipe to a term of imprisonment at the top of the appropriate Sentencing Guidelines range. 

This case was investigated by the United States Secret Service and was prosecuted by Assistant United States Attorney Daryl F. Bloom.

 

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SCRANTON - The United States Attorney's Office for the Middle District of Pennsylvania announced today that an indictment was returned by a grand jury charging a Wilkes-Barre man with failing to comply with sex offender registrations requirements.

According to United States Attorney Peter Smith, Joseph Brant, age 55, a current resident of the Sherman Hills Apartments in Wilkes-Barre, is charged with 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.  It is alleged that Brant traveled interstate to Pennsylvania and established a residence in Wilkes-Barre but failed to register and update his sex offender registration information in Pennsylvania.

The charges are the result of an investigation by the United States Marshals Service - Scranton and New York offices.  Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

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

A sentence following a finding of 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 $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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