Middle District of Pennsylvania

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Margarito Morales-Oliva, age 35, formerly of Mexico, was sentenced by U.S. District Court Judge Richard P. Conaboy to 24 months in prison for possessing a sharpened weapon commonly referred to as a “shank.”

According to the United States Attorney Peter Smith, Morales-Oliva was charged in August of 2014 and pleaded guilty in October of 2014.  The sentence imposed today is to be served after the expiration of the sentence he is currently serving.

The case was investigated by the FBI and the Special Investigation Section at the United States Penitentiary federal prison in Waymart, Pennsylvania.  Prosecution is assigned to Assistant United States Attorney John Gurganus.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Coaldale resident was charged yesterday in a criminal complaint by agents of the United States Postal Inspectors Service with attempting to entice a minor to engage in illegal sexual activities and receiving and possessing child pornography.

According to United States Attorney Peter Smith, the complaint alleges that Robert Rang, age 25, used a facility of interstate commerce during September and October of 2014, to attempt to persuade and induce a minor to engage in illegal sexual activities. The complaint also alleges that Rang received and possessed child pornography from September 2014 to December 29, 2014.

The investigation is being conducted in cooperation with the U.S. Attorney’s Office and the United States Postal Inspection Service in Massachusetts.

Rang appeared yesterday before U.S. Magistrate Judge Karoline Mehalchick in Wilkes-Barre and was ordered to be detained in prison pending a detention hearing scheduled for January 6, 2015. Rang faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison if he is convicted of the enticement charge; a mandatory minimum sentence of five years in prison and a possible maximum sentence of 20 years in prison if he is convicted of the receiving child pornography charge; and a maximum sentence of 10 years in prison if he is convicted of the possession of child pornography charge.

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

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 guilty 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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The United States Attorney's Office for the Middle District of Pennsylvania announced today that United States District Court Chief Judge Christopher C. Conner imposed a 147 month-sentence (12 years, 3 months)on Azim W. Showell, age 25, of Harrisburg, for trafficking heroin and cocaine, as well as trading drugs for firearms.

According to United States Attorney Peter Smith, Showell was the leader of a group of drug traffickers who brought heroin and cocaine from Harrisburg to State College, where motel and hotel rooms they distributed drugs throughout the region.  According to the government’s evidence presented at trial, many of the customers had also burglarized homes and stole firearms, which they traded to the group for drugs.  Many of the firearms were ultimately brought to Harrisburg.

In February 2012, police arrested Fareed Ray and other conspirators, who were in possession of stolen firearms and cocaine.  That same month, Fairview Township Police stopped Showell in a rental car.  In the trunk of the car, police found two stolen firearms, $10,000 in cash, and bundles of heroin packaged for sale.

In May 2014, Showell and Fareed Ray went on trial before a federal jury in Harrisburg.  Police, co-defendants, drug users, and victims of the home break-ins testified during the four-day trial. The jury convicted both Showell and Ray of all ten counts of drug trafficking, conspiracy, and firearms offenses.

In May 2014, co-defendant Darrin Matthis was sentenced to 37 months in prison.  In June 2014, co-defendant Josh Breon was sentenced 22 months in prison. In July 2014, co-defendant Dawan Maynard was sentenced to 151 months in prison.  Fareed Ray is not yet scheduled for sentencing.

The investigation was conducted by the Drug Enforcement Administration in conjunction with the Pennsylvania State Police.  Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that today United States District Court Judge John E. Jones sentenced Tiffany K. Look, age 39, of Harrisburg, Pennsylvania, to 24 months in prison for mail fraud.
 
According to U.S. Attorney Peter Smith, at separate times between 2007 and 2013, Look was a branch manager at two area financial institutions, Mid Penn Bank and Members First Federal Credit Union.  While at Mid Penn Bank, Look carried out a scheme to obtain money from a bank customer by taking out a fraudulent loan in the customer’s name.  After she left Mid Penn Bank, and began working at Members First, Look continued the scheme by taking out fraudulent loans in the names of three customers of the credit union.  Members First reported the fraud to law enforcement.  Judge Jones ordered Look to be taken into custody to begin serving her sentence immediately.  She was also ordered to pay restitution in the amount of $139,820.60.

Charges were filed against Look in May 2014.  She pled guilty later that month.  The financial institutions cooperated with the investigation conducted by the United States Postal Inspectors and the Swatara Township and Hampden Township Police Departments.  The case was prosecuted by Assistant United States Attorney Joseph J. Terz. 

The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a criminal information was filed today charging Adrea Cannon, age 21, of Portsmouth, Virginia with aggravated identity theft in connection with the unlawful use of a bank account number belonging to a legitimate account holder on or about March 12, 2014.
 
Cannon faces a statutorily mandated term of imprisonment of 24 months and a fine in the amount of $250,000.

The investigation was conducted by the United States Secret Service.  The prosecution is assigned to Assistant United States Attorney Michelle Olshefski.     

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

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

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

The United States Attorney's Office for the Middle District of Pennsylvania announced that Siquana Wallace, age 39, Scranton, was sentenced on December 18, 2014 in federal court in Scranton on a charge of trafficking in excess of 100 grams of heroin.

United States District Court Judge Robert D. Mariani sentenced Wallace to 60 months imprisonment followed by eight years of supervised release.  Wallace was charged in an indictment filed on October 16, 2012.  She pleaded guilty on May 29, 2013 to conspiring to distribute in excess of 100 grams of heroin, a Schedule I controlled substance, from September 2011 through May 2012. 

This case was part of an investigation of a conspiracy to distribute heroin between New York and Scranton and Wilkes-Barre by the Drug Enforcement Agency, the Lackawanna County District Attorney’s Office – Detective Division, the Pennsylvania State Police, as well as both the Scranton and Wilkes-Barre Police Departments.  Assistant United States Attorney Michelle Olshefski prosecuted the case.

The United States Attorney's Office for the Middle District of Pennsylvania announced that an Old Forge pharmacist who previously plead guilty to health care fraud was sentenced on December 18, 2014 in federal court in Scranton.

United States District Court Judge Malachy E. Mannion sentenced Peter J. Capitano, age 58, to 15 months imprisonment followed by a 3-year term of supervised release.  Capitano was also ordered to pay restitution in the amount of $166,287.03 to Blue Cross of Northeastern Pennsylvania and Medicaid.

According to United States Attorney Peter J. Smith, a criminal information was filed in January 2014 charging Capitano with engaging in a scheme to defraud Blue Cross of Northeastern Pennsylvania and Medicaid from 2007 through August 2013.  The scheme involved submitting claims or causing claims to be submitted to those health benefit providers for drugs allegedly prescribed when the prescriptions did not exist and for drugs not actually dispensed.

The charges stemmed from an investigation initiated in February of 2011 by the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General.

Assistant United States Attorney Michelle Olshefski prosecuted the case.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 21-year-old Tobyhanna man was sentenced to 10 months in prison today by Senior U.S. District Court Judge James M. Munley for distributing heroin in the Monroe County area between late 2013 and mid-2014.

According to United States Attorney Peter Smith, the defendant, Kyle Westry, previously pleaded guilty to distributing and possessing with intent to distribute multiple bricks of heroin. A brick of heroin consist of 50 small bags.

Westry was charged in a criminal Information filed by the United States Attorney on September 10, 2014, following an investigation by the Drug Enforcement Administration and the Monroe County Drug Task Force.

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

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

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Rite Aid Corporation Vice President and a New Jersey businessman have been charged in connection with a $14.6 million, surplus inventory sales/kickback scheme.

According to United States Attorney Peter Smith, Jay Findling, age 54, of Manalapan, New Jersey, is charged in a Criminal Information filed today in the United States District Court in Harrisburg with conspiracy to commit wire fraud.  Former Rite Aid Vice President Timothy P. Foster, 65, of Portland, Oregon, is charged in the same criminal information with making false statements to authorities. 

The charges are based upon Foster’s and Findling’s alleged nine year conspiracy to defraud Rite Aid, a publicly-owned national drug store chain with its headquarters located in Camp Hill, Pennsylvania, via a surplus inventory sales scheme that took place between 2001 and 2010.  As the Vice President for Quality Assurance, Foster’s primary responsibilities at Rite Aid involved the liquidation of surplus Rite Aid inventory across the United States.  During the time period in question, Foster worked for Rite Aid in Oregon.  According to the criminal information, Findling’s and Foster’s scheme succeeded by making Rite Aid believe its surplus inventory had been sold to Findling’s company, J. Finn Industries LLC, for amounts reported by Foster when, in fact, the inventory had been sold to third parties for greater amounts.  Findling would then kick back a portion of his profits to Foster.

The scheme allegedly started in 2001 and continued until February of 2010 when Foster resigned from Rite Aid.  According to the criminal information, Findling established a bank account in New Jersey under the name of “Rite Aid Salvage Liquidation.”  The account was used by the two conspirators to collect the payments submitted by the real buyers of the surplus Rite Aid inventory.  After the payments were received, Findling sent lesser amounts dictated by Foster to Rite Aid for the goods, thus inducing Rite Aid to believe the inventory had been purchased by J. Finn Industries, not the real buyers.  According to the criminal information, Findling received at least $87.4 million from the real buyers of the surplus Rite Aid inventory but, with Foster’s help, only had to tender $72.8 million of that amount to Rite Aid, leaving Findling approximately $14.6 million in profits from the scheme.

The criminal information also alleges that Foster knowingly and willfully lied when he was interviewed by FBI agents in January 2014 and denied he conspired with Findling to defraud Rite Aid.  Foster later recanted his false statements when he was re-interviewed by the FBI in May 2014.  During that interview Foster not only admitted he conspired to defraud Rite Aid with Findling, he voluntarily surrendered $2,941,940 in cash kickbacks Findling had paid Foster over the life of the conspiracy.

The Criminal Information was filed pursuant to plea agreements with the two defendants.  Both agreements, which are subject to approval by the court, require the defendants to cooperate with the government and to pay restitution to Rite Aid as ordered by the court.  Findling’s plea agreement also obligates him to make a $11.6 million lump sum forfeiture payment to the government at the time he enters his guilty plea.  No date has been scheduled as yet for the entry of Foster’s or Findling’s guilty plea.

The case was investigated by the Harrisburg Office of the FBI.  Both defendants are being prosecuted by Assistant United States Attorney Kim Douglas Daniel.

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

A sentence following a finding of guilty is imposed by the judge after consideration of the applicable federal sentencing statutes and the federal sentencing guidelines.

Both the false statement and the conspiracy count are punishable by up to 5 years 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.

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Rite Aid Corporation Vice President and a New Jersey businessman have been charged in connection with a $14.6 million dollar, surplus inventory sales/kickback scheme.

According to United States Attorney Peter Smith, Jay Findling, age 54, of Manalapan, New Jersey, is charged in a Criminal Information filed today in the United States District Court in Harrisburg with Conspiracy to commit Wire Fraud.  Former Rite Aid Vice President Timothy P. Foster, age 65, of Portland Oregon, is charged in the same Criminal Information with making False Statements to Authorities.

The charges are based upon Foster’s and Findling’s alleged 9 year conspiracy to defraud Rite Aid, a publicly-owned national drug store chain with its headquarters located in Camp Hill, Pennsylvania, via a surplus inventory sales scheme that took place between 2001 and 2010.  As the Vice President for Quality Assurance, Foster’s primary responsibilities at Rite Aid involved the liquidation of surplus Rite Aid inventory across the United States.  During the time period in question, Foster worked for Rite Aid in Oregon. According to the Criminal Information, Findling’s and Foster’s scheme succeeded by making Rite Aid believe its surplus inventory had been sold to Findling’s company, J. Finn Industries, LLC, for amounts reported by Foster when, in fact, the inventory had been sold to third parties for greater amounts.  Findling would then kick back a portion of his profits to Foster.

The scheme allegedly started in 2001 and continued until February of 2010 when Foster resigned from Rite Aid.  According to the Criminal Information, Findling established a bank account in New Jersey under the name of “Rite Aid Salvage Liquidation.” The account was used by the two conspirators to collect the payments submitted by the real buyers of the surplus Rite Aid inventory.  After the payments were received, Findling sent lesser amounts dictated by Foster to Rite Aid for the goods, thus inducing Rite Aid to believe the inventory had been purchased by J. Finn Industries, not the real buyers.  According to the Criminal Information Findling received at least $87.4 million from the real buyers of the surplus Rite Aid inventory but, with Foster’s help, only had to tender $72.8 million of that amount to Rite Aid, leaving Findling approximately $14.6 million in profits from the scheme.

The Criminal Information also alleges that Foster knowingly and willfully lied when he was interviewed by FBI agents in January 2014 and denied he conspired with Findling to defraud Rite Aid.  Foster Later recanted his false statements when he was re-interviewed by the FBI in May 2014.  During that interview Foster not only admitted he conspired to defraud Rite Aid with Findling, he voluntarily surrendered $2,941,940 in cash kickbacks Findling had paid Foster over the life of the conspiracy.

The Criminal Information was filed pursuant to plea agreements with the two defendants.  Both agreements, which are subject to approval by the court, require the defendants to cooperate with the government and to pay restitution to Rite Aid as ordered by the court.  Findling’s plea agreement also obligates him to make a $11.6 million dollar, lump sum forfeiture payment to the government at the time he enters his guilty plea.  No date has been scheduled as yet for the entry of Foster’s or Findling’s guilty plea.

The case was investigated by the Harrisburg Office of the FBI.  Both defendants are being prosecuted by Assistant United States Attorney Kim Douglas Daniel.

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

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

Both the False Statement and the Conspiracy count are punishable by up to 5 years 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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The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced that separate criminal charges were filed yesterday in U.S. District Court in Harrisburg against five illegal aliens.

According to United States Attorney Peter Smith, Delfino Garcia-Arroyo, age 38, was charged in a one-count indictment by a federal grand jury in Harrisburg alleging that Garcia-Arroyo, a Mexican citizen, who was previously arrested and deported from the United States on February 14, 2012, reentered the United States unlawfully and was found in Dauphin County, Pennsylvania.

If convicted, Garcia-Arroyo faces a maximum sentence of up to 2 years’ imprisonment and a $250,000 fine.

Luis Torres-Escalantes, age 31, was charged in a one-count indictment by a federal grand jury alleging that Torres-Escalantes, a Mexican citizen, who was previously arrested and deported from the United States on November 5, 2012, reentered the United States unlawfully and found in York County, Pennsylvania.

If convicted, Torres-Escalantes faces a maximum sentence of up to 10 years’ imprisonment and a $250,000 fine.

Nicolas Antonio Huc-Moo, age 34, was charged in a one-count indictment by a federal grand jury alleging that Huc-Moo, a Guatemalan citizen, who was previously arrested and deported from the United States on August 27, 2008, reentered the United States unlawfully and was found in York County, Pennsylvania.

If convicted, Huc-Moo faces a maximum sentence of up to 10 years’ imprisonment and a $250,000 fine.

Alfredo Hernandez-Sanchez, age 24, was charged in a one-count indictment by a federal grand jury alleging that Hernandez-Sanchez, a Mexican citizen, who was previously arrested and deported from the United States on April 14, 2011, reentered the United States unlawfully and was found in Franklin County, Pennsylvania.

If convicted, Hernandez-Sanchez faces a maximum sentence of up to 2 years’ imprisonment and a $250,000 fine.

Cresencio Vazquez-Munoz, age 30, was charged in a one-count indictment by a federal grand jury alleging that Vazquez-Munoz, a Mexican citizen, who was previously arrested and deported from the United States on December 17, 2012, reentered the United States unlawfully and was found in Dauphin County, Pennsylvania.

If convicted, Vazquez-Munoz faces a maximum sentence of up to 10 years’ imprisonment and a $250,000 fine.

The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and are being prosecuted by Special Assistant United States Attorney Alice Song Hartye.

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.

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

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a New York man was indicted by a federal grand jury in Harrisburg on charges of possessing 2,500 bags of heroin and body armor during a traffic stop on September 17, 2014.

According to United States Attorney Peter Smith, Terrence T. Byrd, age 37, New York, NY, was charged in a two count indictment with possessing heroin with the intent to distribute and with illegally possessing body armor. Byrd was allegedly stopped by the Pennsylvania State Police for a traffic violation on Interstate 81 in Lower Paxton Township.  During a search of the vehicle, troopers recovered body armor and 2,500 bags of heroin.  Byrd fled on foot when the contraband was discovered but was apprehended after a brief chase.

Byrd, if convicted, faces up to 20 years imprisonment on the heroin possession charge and a sentence of up to life imprisonment if convicted on the charge of illegally possessing body armor.

The matter was investigated by the Pennsylvania State Police, the Dauphin County District Attorney’s Office and the Drug Enforcement Administration’s Harrisburg Resident Office. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.

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.

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

The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Harrisburg today indicted a New York City man on charges involving unlawful distribution of cocaine.

According to United States Attorney Peter Smith, Wesley Jackson, 50, New York, NY was indicted on charges of unlawfully distributing cocaine and conspiring to distribute cocaine from September to November 2014. Jackson was also charged with using a facility in interstate commerce to cause money to be electronically transferred from Pennsylvania to New York via a money exchange service. The funds allegedly represented the proceeds of illegal drug trafficking. Jackson, if convicted, faces a combined maximum term of imprisonment of 50 years and fines totaling $2,250,000.00.

The case was investigated by the Drug Enforcement Administration’s Harrisburg Resident Office and the Harrisburg Police Department. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.

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.

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

A Central Pennsylvania thoroughbred horse trainer who races horses at Penn National Race Course in Grantville pled guilty in Dauphin County Court in Harrisburg yesterday to rigging races by administering drugs to horses on race day in violation of rules and regulations banning such treatment.

The United States Attorney’s Office for the Middle District of Pennsylvania and the Dauphin County District Attorney’s Office announced that David J. Wells, 50, Grantville, pled guilty before Court of Common Pleas Judge Deborah E. Curcillo to a charge of rigging publicly exhibited contests, in this case, thoroughbred races at Penn National Race Course. The offense is punishable by up to 5 years imprisonment and a $10,000 fine. Judge Curcillo ordered the preparation of a presentence investigation report and set sentencing for January 29, 2015.

The prosecution stemmed from an investigation conducted by the FBI, the Pennsylvania Department of Agriculture’s Racing Commission, the Pennsylvania State Police and the Dauphin County District Attorney’s Office into alleged wrongdoing in races at Penn National Race Course. As part of the investigation, Daniel Robertson, the official clocker at Penn National, was indicted in U.S. District Court on federal wire fraud charges in November 2013 and pleaded guilty on July 22, 2014.          

The Wells investigation was transferred to the Dauphin County District Attorney’s Office for prosecution of the violation of state law.  Assistant United States Attorney William A. Behe was specially appointed by Dauphin County District Attorney Edward Marsico as a Deputy District Attorney to handle the Wells prosecution.

At the guilty plea hearing yesterday, Wells admitted that he orally or by hypodermic injection illegally administered drugs to horses he trained and raced to give him and his horses an advantage in the races and that he was fully aware that this was in violation of racing rules and regulations. Wells also said that efforts were made to conceal this activity from the public and the Racing Commission.  The criminal complaint, filed in October 2014, alleged that the activity took place between 2008 and 2012.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Pennsylvania state prison inmate pleaded guilty today in Scranton before Senior U.S. District Court Judge James M. Munley to mailing a letter threatening to injure and kill a Monroe County Common Pleas Judge.

According to United States Attorney Peter Smith, the defendant, Devon Williams, age 25, admitted that while he was an inmate at the State Correctional Institution in Albion, Pennsylvania, he mailed a letter from the prison in January 2014 to the judge’s chambers at the Monroe County Courthouse in Stroudsburg. The letter threatened harm and death to the judge.

Williams was indicted by a federal grand jury in September 2014, as a result of an investigation by the United States Postal Inspection Service and the Pennsylvania State Police.

Judge Munley scheduled sentencing for March 24, 2015.  Williams faces up to five years in prison and a $250,000 fine. Williams is detained in federal custody pending sentencing.

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

The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Federal Grand Jury in Scranton has returned a three-count indictment charging an inmate at the United States Penitentiary at Canaan, Pennsylvania, with participating in an assault of another inmate with dangerous weapons.  James Banks, age 33, formerly of Tennessee, was charged with assault, conspiracy to commit assault, and with the illegal possession of a weapon by an inmate.

According to United States Attorney Peter Smith, the victim was another inmate who was stabbed by Banks’ coconspirator with a sharpened weapon commonly referred to as a shank.  Banks allegedly participated in the assault by attempting to strike the victim with a lock attached to a length of cloth during the attack.  

On December 4, 2014, Senior United States District Court Judge Richard P. Conaboy sentenced Banks’ coconspirator, Johnnie Williams, age 36, formerly of Memphis, Tennessee, to 30 months’ imprisonment for stabbing the victim. On September 10, 2014, Williams pleaded guilty to conspiracy to commit the assault.   

The case was investigated by the FBI and the Special Investigation Section at USP-Canaan.  Prosecution is assigned to Assistant United States Attorney John Gurganus.

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 particular case, the maximum penalty under the federal statute is ten years’ imprisonment for the assault, and five years’ imprisonment for the conspiracy charge and the weapon possession charge.  Banks also faces a term of supervised release following imprisonment, and a fine if convicted. 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 United States Attorney’s Office for the Middle District of Pennsylvania announced today that Richard J. Harley, of Shawnee on the Delaware, Pennsylvania, was convicted yesterday after a two-week trial before a federal jury sitting in Wilkes-Barre, Pennsylvania, of 23 counts of wire fraud, bank fraud, bankruptcy fraud, and making false statements on bankruptcy schedules. Harley was continued on bail and no date was set for sentencing.  Senior U.S. District Judge A. Richard Caputo presided over the trial.

According to United States Attorney Peter Smith, Harley defrauded investors and attempted to defraud the Federal Reserve Bank of New York and several financial institutions by soliciting money based on false claims that his company, RJH and Co. Inc., owned 10 million barrels of oil in Texas worth over $1 billion and had “unrestricted bond power” over $5 trillion in federal reserve bank instruments supposedly held at the Federal Reserve Bank of New York.  As a result of the fraud, investors lost approximately $323,800.

The bank fraud charge relates to Harley’s attempt to deposit two phony $500 million checks purportedly issued by the Federal Reserve Bank of New York into several financial institutions.  Harley also filed three fraudulent bankruptcy petitions in 2010, 2011 and 2012 where he attempted to discharge the debt he owed to one of the primary victims of the oil scheme.

Harley was previously convicted of mail and wire fraud and sentenced to five years’ imprisonment in 2001 for a scheme that defrauded patients and investors relating to a fraudulent ozone-enema treatment he claimed cured AIDS.  The jury verdict in the latest case relates to activities that occurred after Harley was released from federal prison.

Harley faces up to thirty years’ imprisonment on each wire fraud and bank fraud charge and up to five years’ imprisonment on each bankruptcy fraud and false statements charge, as well as substantial fines and restitution.

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

The United States Attorney’s Office for the Middle District of Pennsylvania announced that today in Harrisburg United States District Court Judge John E. Jones III sentenced Wendy Weikal-Beauchat, 46, to 15 years’ imprisonment plus restitution and forfeiture totaling over $12 million for wire fraud and money laundering in connection with the misuse of her clients’ funds.

In sentencing Weikal-Beauchat, Judge Jones stated that she had stolen from clients who were members of the depression and WWII generation and had undermined public trust in lawyers.  He dismissed her statement that she had “messed up” by saying that her conduct was essentially stealing from her clients and that her apology, presented in court for the first time today, was “hollow.” 

Judge Jones ordered Weikal-Beauchat to be taken into custody by U.S. Marshals to begin serving her sentence immediately after the hearing.  The judge found that a sentence above the guideline range was necessary as a just punishment and to deter violations of the public trust.  He ordered $6,365,913 in restitution and $6,341,451 in forfeiture.  According to the U.S. Attorney’s Office, the restitution amount in this case is higher because it includes expenses incurred by the victims, such as legal fees, above and beyond the proceeds of the crime.

Approximately 30 of Weikal-Beauchat’s former clients and their family members attended the sentencing.  Sixteen of them read statements to the court.  Most emphasized the mental as well as financial harm inflicted on them and their families by Weikal-Beauchat’s fraud.

Weikal-Beauchat, who has since been disbarred, was an attorney with the Gettysburg firm of Beauchat and Beauchat, concentrating on estate, trust, and long-term care planning.  According to the evidence presented by Assistant U.S. Attorney Joseph J. Terz, beginning in 2007, Weikal-Beauchat diverted approximately $6 million from a trust account she maintained for her clients at M&T Bank.  Weikal-Beauchat used the crime proceeds to operate her law firm, and for vacations and other personal expenses.  She falsely represented she could invest in certificates of deposit with high interest rates as a result of her “special relationship” with M&T Bank.  She generated bogus bank CDs and distributed them to her clients to further mislead them.

When several clients and M&T Bank questioned Weikal-Beauchat’s handling of the funds and/or initiated complaints against her, she made false statements, submitted false documents and said that she had hired an accountant to help her respond to the questions about the law firm’s activities.  In reality there was no accountant.

The details of the fraud scheme are presented in the government’s sentencing memorandum filed on Nov. 10, 2014, and in Judge Jones’ memorandum and order filed on Dec. 8, 2014.

The investigation was conducted by the Internal Revenue Service, Criminal Investigations, and the FBI’s Harrisburg office.  The case was prosecuted by Assistant U.S. Attorney Joseph J. Terz and Special Assistant U.S. Attorney Brian Sinnett of the Adams County District Attorney’s Office, assisted by the U.S. Attorney’s Office Victim Witness Unit.

Weikal-Beauchat was charged in a criminal information filed by the U.S. Attorney’s Office on Nov. 4, 2013.  She pleaded guilty on November 15.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that today in Harrisburg United States District Court Judge John E. Jones III sentenced Wendy Weikal-Beauchat, age 46, to 15 years’ imprisonment plus restitution and forfeiture totaling over $12 million for wire fraud and money laundering in connection with the misuse of her clients’ funds.

In sentencing Weikal-Beauchat, Judge Jones stated that she had stolen from clients who were members of the depression and WWII generation and had undermined public trust in lawyers.  He dismissed her statement that she had “messed up” by saying that her conduct was essentially stealing from her clients and that her apology, presented in court for the first time today, was “hollow.”

Judge Jones ordered Weikal-Beauchat to be taken into custody by U.S. Marshals to begin serving her sentence immediately after the hearing.  The Judge found that a sentence above the guideline range was necessary as a just punishment and to deter violations of the public trust.  He ordered $6,365,913 in restitution and $6,341,451 in forfeiture.  According to the U.S. Attorney’s Office, the restitution amount in this case is higher because it includes expenses incurred by the victims, such as legal fees, above and beyond the proceeds of the crime.

Approximately 30 of Weikal-Beauchat’s former clients and their family members attended the sentencing.  Sixteen of them read statements to the Court.  Most emphasized the mental, as well as the financial harm inflicted on them and their families by Weikal-Beauchat’s fraud.

Weikal-Beauchat, who has since been disbarred, was an attorney with the Gettysburg firm of Beauchat and Beauchat, concentrating on estate, trust, and long-term care planning.  According to the evidence presented by Assistant U.S. Attorney Joseph J. Terz, beginning in 2007, Weikal-Beauchat diverted approximately $6 million from a trust account she maintained for her clients at M&T Bank.  Weikal-Beauchat used the crime proceeds to operate her law firm, and for vacations and other personal expenses.  She falsely represented she could invest in certificates of deposit with high interest rates as a result of her “special relationship” with M&T Bank.  She generated bogus bank CDs and distributed them to her clients to further mislead them.

When several clients and M&T Bank questioned Weikal-Beauchat’s handling of the funds and/or initiated complaints against her, she made false statements, submitted false documents and said that she had hired an accountant to help her respond to the questions about the law firm’s activities.  In reality there was no accountant.

The details of the fraud scheme are presented in the Government’s Sentencing Memorandum filed on November 10, 2014 and in Judge Jones’ Memorandum and Order filed on December 8, 2014.

The investigation was conducted by the Internal Revenue Service, Criminal Investigations and the FBI’s Harrisburg office.  The case was prosecuted by Assistant U.S. Attorney Joseph J. Terz and Special Assistant U.S. Attorney Brian Sinnett of the Adams County District Attorney’s Office, assisted by the U.S. Attorney’s Office Victim Witness Unit.

Weikal-Beauchat was charged in a criminal information filed by the U.S. Attorney’s Office on November 4, 2013.  She pleaded guilty on November 15.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 43-year-old Erie, Pennsylvania resident was sentenced today in Scranton by Senior U.S. District Court Judge James M. Munley to serve 100 months in federal prison for unlawfully possessing a firearm and ammunition as a convicted felon.

According to United States Attorney Peter Smith, the defendant, James Presley, previously admitted to possessing a 9mm handgun and ammunition while driving a vehicle on Interstate 80 near Hazleton on May 15, 2014.  At the time he possessed the firearm and ammunition, Presley had prior felony convictions, including a conviction for murder in 1992 in Philadelphia. Presley served 13 years in prison for the murder.

Presley was charged in an Information filed by the United States Attorney on July 15, 2014, as a result of an investigation by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pennsylvania State Police.

Judge Munley also ordered Presley to spend two years on supervised release following his prison sentence, and to pay a $100 special assessment.

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

The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jocelyn Wilson, age 22, formerly of Carmichael, California, was sentenced yesterday by United States District Court Judge Robert D. Mariani to serve 33 months in prison on the charges of access device fraud and conspiracy to defraud the United States.

According to United States Attorney Peter Smith, Wilson along with co-defendant Francis Nevarez used a stolen credit card and a fraudulent Texas driver’s license to obtain cash advances, goods and services from financial institutions and businesses throughout Pennsylvania in 2013.

Nevarez was sentenced by Judge Mariani on November 21, 2014 to serve 36 months imprisonment and ordered to make restitution in the amount of $206,296.

The investigation was conducted by the United States Secret Service.  The case was prosecuted by Assistant United States Attorney Michelle Olshefski.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Malachy E. Mannion sentenced Calmen Stewart, Jr., age 23, of Stroudsburg, Pennsylvania, yesterday to a term of imprisonment of time served, approximately 2 months, followed by 2 years of supervised release.  Judge Mannion ordered that the first 6 months of supervised released be served on home detention with electronic monitoring.  Restitution in the amount of $1,700 was also ordered.

According to the United States Attorney Peter Smith, Stewart previously plead guilty to conspiracy to pass counterfeit federal reserve notes at various locations throughout the Middle District of Pennsylvania and elsewhere.

The case was jointly investigated the United States Secret Service and the Dickson City Police Department.  Assistant United States Attorney Michelle Olshefski prosecuted the case.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that yesterday Senior United States District Court Judge William W. Caldwell sentenced David Flores, age 48, Harrisburg to 15 months imprisonment and five years supervised release for failing to register as a sex offender.

According to United States Attorney Peter Smith, Flores was indicted by a federal grand jury in May 2014 for failing to register in Pennsylvania as a sex offender after he moved from New York to Pennsylvania.

Flores pled guilty to the charge on November 17, 2014.

The case was investigated by the United States Marshal’s Service.  Assistant United States Attorney Eric Pfisterer

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

The United States Attorney's Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge Richard P. Conaboy has sentenced Johnnie Williams, age 36, formerly of Memphis, Tennessee, to 30 months’ imprisonment for being involved in a conspiracy to assault another inmate with a dangerous weapon in February 2014.  Williams pleaded guilty to the charge in September.

United States Attorney Peter Smith stated that the victim was another inmate who was injured when Williams stabbed him with a weapon commonly referred to as a shank.  Charges are pending against the other alleged conspirator who used a mace-type weapon constructed from a lock attached to a sock to attempt to assault the victim inmate before being subdued by correctional officers.

The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons.  Assistant United States Attorney John Gurganus prosecuted the case.  

The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that two sentencings involving illegal aliens have taken place in U.S. District Court in Scranton.
    
On December 2, 2014, United States District Court Judge Richard P. Conaboy sentenced Jose Efrain Martinez-Aguilar, a/k/a Carlos Oreana Benitez, age 48, a native and citizen of Honduras, to a term of imprisonment for 27 months followed by immediate deportation.  Martinez-Aguilar was previously indicted and charged with illegal reentry into the United States after having been previously deported and after having been convicted of an aggravated felony involving the trafficking of controlled substances.

On December 4, 2014, Judge Conaboy sentenced Juan Domingo Tellar-Mendoza, a/k/a Juan Carlos Tellar-Mendoza, age 30, a native and citizen of Nicaragua, to a term of imprisonment of time served, approximately 6 months, and immediate deportation.  Tellar-Mendoza was previously indicted and charged with illegal reentry into the United States after having been previously deported.

The investigations were conducted by the Department of Homeland Security (DHS), Homeland Security Investigations (HSI).  Assistant United States Attorney Michelle Olshefski prosecuted both cases.

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nathaniel Mosley, age 44, of Harrisburg, Pennsylvania was sentenced by United States District Court Judge Sylvia H. Rambo on December 3, 2014 to 168 months’ imprisonment, a $1,200 fine and three years of supervised release following his release from imprisonment after pleading guilty to armed robbery and use of a firearm during a crime of violence in June 2014.

According to U.S. Attorney Peter Smith, on December 3, 2013, Mosley along with co-defendants Torey Dobbin and George Stoney robbed the Cracker Barrel restaurant on Brindle Road in Harrisburg at gunpoint.  The Susquehanna Township Police Department was alerted after a caller advised that individuals were inside the building robbing the restaurant.  Officers arrived almost immediately and set up a perimeter around the building.  Shortly thereafter three men wearing masks exited the restaurant and fled on foot.  After a brief pursuit, all three were apprehended.  Officers located the stolen money and seized three firearms. 

Both Dobbin and Stoney have pled guilty and are awaiting sentencing.

The investigation was conducted by the Federal Bureau of Investigation Capital City Safe Streets Task Force and the Susquehanna Township Police Department.   The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that DHS Technologies LLC and its subsidiary, DHS Systems LLC (collectively “DHS”), have agreed to pay $1.9 million, plus interest, to the United States to resolve allegations that DHS violated the False Claims Act by failing to disclose to the General Services Administration (“GSA”) that it offered greater discounts to a private company for the same items during the negotiation for the re-award of a government contract.

According to United States Attorney Peter Smith, this settlement agreement filed with the U.S. District Court today in Scranton resolves allegations that in 2007 DHS failed to inform the GSA during contract re-award negotiations, as it was required to do, that products offered for sale to the United States and its agencies were offered for sale at lower prices to a commercial company.  This resulted in federal agencies paying more for the products from 2007 through 2013 than they would have had the GSA known about the lower prices.

DHS has its headquarters in Orangeburg, NY.  It is a provider of mobile shelters and trailer-mounted support systems for military, medical, government and civilian organizations around the world.  During the relevant time period, DHS conducted business in northeastern Pennsylvania, including with the Tobyhanna Army Depot.          

“Companies doing business with the United States must be diligent in making sure American taxpayers are getting the best deal,” said GSA Deputy Inspector General Robert C. Erickson.

“Companies doing business with the U.S. government should do their part to ensure that the military is guaranteed a fair price for the goods and services it needs to support our military men and women,” said Frank Robey, the director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.  “Those companies who abuse their contracts will find our special agents ready to hold the companies accountable for their illegal activities.”

The settlement arose from a lawsuit filed in the United States District Court for the Middle District of Pennsylvania in 2011 by a whistleblower under the qui tam provisions of the False Claims Act.  Under that law, private citizens can bring suit on behalf of the government for false claims and share in any recovery.  The False Claims Act further provides that the United States may intervene in the suit as it did in this case.

The case was investigated by the Justice Department’s Civil Division, the United States Attorney’s Office for the Middle District of Pennsylvania, the General Services Administration Office of Inspector General, the Army Criminal Investigation Command, the Defense Criminal Investigation Service, and the Defense Contract Audit Agency.  The case was litigated by Assistant United States Attorney Timothy S. Judge of the United States Attorney’s Office for the Middle District of Pennsylvania.

The case is United States ex rel. McKinney v. DHS Technologies, LLC et al., Civ. No. 3:CV-11-146 (M.D.Pa.)  The claims resolved by the settlement are allegations only; there has been no determination of liability.  Other claims by the private plaintiff in the original lawsuit were not involved in the settlement and remain in the ongoing case.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 22-year-old Pittston resident was sentenced today to serve 25 months in prison by Senior U.S. District Court Judge James M. Munley for his role in a heroin trafficking conspiracy that operated in Luzerne County during 2013 and early 2014.

According to United States Attorney Peter Smith, the defendant, Robert Romasiewicz, previously pleaded guilty to conspiring with Sal Biscotto, also of Pittston, and others to obtain heroin from suppliers in New Jersey and distribute it to customers in Luzerne County. Biscotto, who also pleaded guilty to participating in the conspiracy, is awaiting sentencing in the case.

Romasiewicz was charged in a criminal Information filed by the U.S. Attorney’s Office in April 2014, as a result of an investigation by the Federal Bureau of Investigation, the Luzerne County District Attorney’s Office, and Pittston Police.

Judge Munley also ordered that Romasiewicz spend three years on supervised release following his prison sentence, pay a $300 fine and a $100 special assessment.

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

The United States Attorney for the Middle District of Pennsylvania announced today the unsealing of an indictment of Jorge Salazar, a/k/a J. Michael Salazar, for wire fraud.

Salazar, age 54, a resident of Georgia, was indicted on November 12, 2014 for defrauding approximately ten investors from Adams County, Pennsylvania.  The indictment was sealed pending the arrest of Salazar.  The investment scheme netted Salazar approximately $350,000 during a six-month period.  As part of the scheme, Salazar passed himself off as a licensed attorney and investor from Atlanta, Georgia.  According to Salazar, the funds he received were guaranteed to yield a return of three times the initial investment.  The money turned over to Salazar was not invested by him, but rather misappropriated for his own personal needs.  On November 20, 2014, agents of the FBI and IRS-CI arrested Salazar in Kentucky.  A federal Magistrate Judge in Kentucky ordered that Salazar be detained and transported to Harrisburg, Pennsylvania, to face the federal charges.

The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Joseph J. Terz.

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

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

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

(Salazar indictment)

The United States Attorney’s Office for the Middle District of Pennsylvania announced that today in Harrisburg, United States District Court Judge Yvette Kane sentenced Hetran Inc. and its Chief Executive Officer, Helmut Oertmann for their involvement in a conspiracy to evade export reporting requirements and with attempting to smuggle to Iran a lathe machine in violation of U.S. export regulations.  Oertmann received a sentence of 12 months probation.  Hetran, an engineering and manufacturing plant in Orwigsburg, Schuylkill County, Pennsylvania, was also sentenced by Judge Kane, who adopted the penalty imposed by the U.S. Department of Commerce of $337,500 cash and $500,000, which was suspended.  The fine made both Oertmann and Hetran jointly liable for payment.

According to U.S. Attorney Peter Smith, Hetran manufactured a horizontal lathe, also described as a bar peeling machine (“peeler”), valued at more than $800,000 and weighing in excess of 50,000 pounds.  The machine is used in the production of high grade steel or Abright steel@, a product used, among other things, in the manufacture of automobile and aircraft parts.

In June 2009, Hetran was contacted by representatives of FIMCO, an Iranian company with offices in Iran and the United Arab Emirates, and Crescent International, an affiliated company based in Dubai.  FIMCO wanted to purchase the peeler.  During negotiations, it became apparent that the peeler was intended for shipment to Iran.  American companies are prohibited from shipping “dual use” items (such as the peeler) to Iran without first obtaining a license from the U.S. government.  Aware that it was unlikely that such a license would be granted, Hetran, Helmut Oertmann and other co-conspirators agreed to falsely state on the shipping documents that the end-user of the peeler was Crescent International in Dubai.

On June 17, 2012, Hetrancaused the peeling machine to be shipped to Dubai, fraudulently listing Crescent International as the end-user, knowing that the shipment was ultimately being sent to Iran in violation of federal law.

U.S. authorities halted the shipment and prevented the machine from being delivered to Iran.  Oertmann, Hetran, three Iranians and two Iranian corporations were indicted by a federal grand jury in Harrisburg in December 2012.  Oertmann and Hetran pled guilty earlier this year.

The case was investigated by the Office of Export Enforcement of the U.S. Department of Commerce.  The case was prosecuted by Assistant U.S. Attorney Christy Fawcett and Senior Litigation Counsel Gordon Zubrod and was overseen by the National Security Division of the U.S. Department of Justice.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 38-year-old Fresno, California resident pleaded guilty today before U.S. Magistrate Judge Karoline Mehalchick in Wilkes-Barre, to possession with intent to distribute more than one kilogram of heroin.

According to United States Attorney Peter Smith, the defendant, Livier Cantor-Huizar, admitted to transporting 23 kilograms of heroin, with a street value of more than $1 million, from California to the Mt. Pocono area of Monroe County in July 2014.

Cantor-Huizar and three other suspects were indicted by a federal grand jury in July 2014, as a result of an investigation by the Drug Enforcement Administration and the Pennsylvania State Police.

Judge Mehalchick ordered a pre-sentence investigation report to be completed. Cantor-Huizar will be sentenced by Senior U.S. District Court Judge Richard P. Conaboy at a future date.

Cantor-Huizar faces a mandatory minimum sentence of 10 years in prison and a possible maximum sentence of life in prison.

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 guilty 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.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that two men from Monroe County were indicted November 25 by a federal grand jury in Scranton for heroin trafficking.

According to United States Attorney Peter Smith, Joseph Crawford, age 41, of Marshalls Creek, and Harry Rivera, age 39, of East Stroudsburg, are charged with possession with intent to distribute heroin and aiding and abetting.  In addition, Crawford is charged with being a convicted felon in possession of firearms, specifically, a Glock pistol and a Smith & Wesson rifle.  The charges stem from an incident on June 17, 2014, in which investigators found approximately 100 grams of heroin within a hidden compartment in a vehicle in which Crawford and Rivera were travelling.

The investigation was conducted by the Drug Enforcement Administration, the Pocono Mountain Regional Police Department and the Stroud Area Regional Police Department. The case is 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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

In this case, the maximum penalty under the federal statute is imprisonment for twenty 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.

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an Indictment was returned on November 25 by a grand jury in Scranton charging Michael Turner, age 21, Andrew Turner, age 27, and Jason Mitchell, age 29, all of Tobyhanna, Pennsylvania, with conspiracy and dealing in counterfeit United States Federal Reserve Notes.

United States Attorney Peter Smith stated that the three-count Indictment charges that beginning in or about June 1, 2014 through June 30, 2014, the defendants conspired and aided abetted each other in a scheme to receive, exchange, transfer, and pass approximately $8700 in counterfeit $100 Federal Reserve Notes at the Mount Airy Casino in Mount Pocono and the Mohegan Sun Casino in Plains.

The defendants face a total statutory maximum term of 45 years and fines in the amount of $750,000.

The case was investigated by the United States Secret Service and the Pennsylvania State Police, Bureau of Gaming Enforcement.

Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

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

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

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

The United States Attorney’s Office for the Middle District of Pennsylvania announced today the return of a 12-count second superseding indictment by a federal grand jury in Williamsport on November 26 charging the following Williamsport and Philadelphia men with conspiracy to distribute heroin, crack cocaine, and cocaine and other drug distribution and firearms violations:

Defendant                                                     Age           Recent Address    
ALPHONSO BATTEN                            27              Williamsport aka “Bugatti” aka “Boo”
THEODORE SHOCKLEY III              22               Williamsport aka “Glock”
STEVEN OLIVER SINGLETARY     27              Williamsport aka “Steven Carter”
SHARIF JONES                                        22              Williamsport aka “Reef” aka “Chief Reef” aka “Bucketz”
MALIKI HASSAN CHAPMAN          27              Philadelphia
Aka “Terrence Wallace”

Batten, Shockley, and Jones were indicted previously in September 2014.  The superseding indictment includes a new co-defendant, Maliki Chapman, who is charged with conspiring with the other defendants to distribute heroin, crack cocaine, and cocaine powder.    

According to United States Attorney Peter Smith, the indictment alleges that from January 2010 through the date of the indictment the co-conspirators distributed heroin, crack cocaine, and cocaine to drug users and sellers in Williamsport and in Lycoming and Tioga Counties.

The five men, who were known as the “Tat-Gang,” allegedly used mobile phones, social media, three addresses in Williamsport, and multiple motor vehicles in their drug distribution activities.  The co-conspirators allegedly bought, sold, traded, and possessed firearms in exchange for cash and controlled substances and to facilitate the distribution of controlled substances.

Shockley and Singletary are also charged with illegal possession of firearms, and Shockley is charged with using and carrying a firearm during a drug trafficking crime.  Allegations in indictment also seek forfeiture of two firearms and proceeds from the criminal offenses totaling $1.75 million.

The case was investigated by the Williamsport Bureau of Police, the Pennsylvania State Police, and the Federal Bureau of Investigation.  The prosecution is assigned to Assistant United States Attorney George J. Rocktashel.

If convicted of the conspiracy and drug distribution offenses charged in the indictment, the defendants face a maximum penalty of life in prison, a mandatory minimum sentence of ten years’ imprisonment, a maximum fine of $10 million, and a supervised release term of at least five years.  In addition Shockley faces a consecutive mandatory five-year prison term if convicted of using and carrying a firearm during a drug trafficking crime.

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

A sentence following a finding of guilty 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.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 68-year-old Sayre, Pennsylvania resident has been charged with possessing child pornography and wire fraud.

According to United States Attorney Peter Smith, a Superseding Information was filed today in U.S. District Court in Scranton alleging that Harold Schrader possessed child pornography on a computer in 2012, and allegedly participated through willful blindness in a fraud scheme involving soliciting overseas loans that were never repaid.

The charges against Schrader resulted from an investigation by the Department of Homeland Security (DHS), Homeland Security Investigations (HSI) and the Pennsylvania State Police.

If convicted of the charges, Schrader faces up to 30 years in prison and a $1 million fine for wire fraud, and up to 10 years in prison and a $250,000 fine for the child pornography charge.

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

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 guilty 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.

The United States Attorney=s Office for the Middle District of Pennsylvania announced today that Merisol Merry, age 40, Brooklyn, New York was sentenced in federal court in Scranton on a charge of trafficking in excess of 100 grams of heroin.

United States District Court Judge Robert D. Mariani sentenced Merry to 18 months imprisonment followed by two years of supervised release.  Merry originally waived indictment and was charged by way of Information on April 18, 2013.  The Information filed in the Middle District of Pennsylvania charged that between September 2011 through May 2012 in the Southern District of New York, Merry distributed and possessed with intent to distribute at least 100 but less than 400 grams of heroin, a Schedule I controlled substance. 

This case involved the prosecution of seven other defendants involved in a conspiracy to possess and distribute heroin from New York to Scranton and Wilkes-Barre, Pennsylvania.  The prosecution arose from the efforts of a joint investigation conducted by the Drug Enforcement Agency in Scranton, the Lackawanna County District Attorney’s Office – Detective Division, the Pennsylvania State Police, as well as both the Scranton and Wilkes-Barre Police Departments.  Assistant United States Attorney Michelle Olshefski prosecuted the case.     

                      
****

The United States Attorney’s Office for the Middle District of Pennsylvania, announced today the unsealing of an indictment of seven Luzerne County residents on charges relating to the unlawful distribution of bath salts.

According to United States Attorney Peter Smith, the following persons were taken into custody:

• • David Folweiler, 27 of West Pittston
  • Alan Folweiler, 21 of West Pittston
  • John Pearce, 29 of West Pittston
  • Frank Xavier Brennan, 33 of Kingston
  • Maura Kathio, 25 of Yatesville
  • Tiffany Pradel, 30 of Pittston Township
  • Marguerita Ann Davis, 59 of Pittston

The defendants were indicted by a federal grand jury in Scranton in August 2014 for their alleged participation in a bath salts trafficking and distribution ring led by Todd Morgans.  Morgans was arrested in July 2013, pled guilty and was sentenced to 135 months in federal prison in September 2014.  The indictment was sealed pending the arrest of the defendants.

David Folweiler, Alan Folweiler, Mauro Kathio, and Margherita Davis were arrested on November 12, 2014, and subsequently appeared before Magistrate Judge Thomas M. Blewitt David Folweiler was ordered detained pending trial. The others were released on bail with conditions.

John Pearce and Tiffany Pradel were arrested on November 14, 2014.  They appeared before Magistrate Judge Thomas M. Blewitt on November 17, 2014. Pearce and Pradel were ordered detained pending trial.

Frank Xavier Brennan surrendered to agents today and appeared before Magistrate Judge Thomas M. Blewitt.  Brennan was released on bail pending trial.

The maximum sentence for the offense is imprisonment for 20 years, a fine of $1,000,000 and supervised release for a period of at least 3 years.

This case was the result of a joint investigation between the Department of Homeland Security (DHS), Homeland Security Investigations (HSI), the Pennsylvania State Police, The United States Postal Inspection Service and the West Pittston, Jenkins Township, and the Pittston City Police Departments.

Bath salts are synthetic drugs which are analogues of controlled substances prohibited under federal statutes.  A controlled substance analogue is a drug which has not been scheduled under The Controlled Substances Act but has a similar chemical structure and a similar stimulant or hallucinogenic effect on a person’s central nervous system.  Such controlled substance analogues are treated as if the substance were the scheduled drug for prosecution and sentencing purposes.

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

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Beverly Hannibal, age 48, formerly of Williamsport, but now lives in Lancaster, was indicted by a federal grand jury in Williamsport on November 13, 2014 for health care fraud in connection with a Medicaid program.

According to United States Attorney Peter Smith, the indictment alleges that Hannibal fraudulently obtained $22,448 from the Pennsylvania Medicaid Home and Community Based Services Attendant Care Program, a federally funded health care benefit program.

According to the indictment, Hannibal submitted false and fraudulent applications identifying her nephew and, later in the scheme, a friend of hers, as direct care workers providing personal assistance to her.  Although they performed no work, Hannibal allegedly prepared false timesheets reporting hours purportedly worked by them, forged signatures on the timesheets, and then submitted them for payment.  The indictment alleges that Hannibal received reimbursement checks and had her nephew cash some of them and give her the proceeds, and that she also forged signatures on the checks and transacted them.

The indictment was sealed until today pending the defendant being taken into custody.  Hannibal appeared yesterday before Chief Magistrate Judge Martin C. Carlson.  Hannibal was released on bail.  Trial is scheduled for January 5, 2015 before United States District Court Judge Matthew W. Brann in Williamsport.

If convicted of the health care fraud charge, Hannibal, faces a maximum penalty of 10 years in prison, a fine of $250,000 million, and a supervised release term of three years.

The case was investigated by the Office of Inspector General, U.S. Department of Health and Human Services and the Federal Bureau of Investigation.  Prosecution has been assigned to Assistant United States Attorney George J. Rocktashel.

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.

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

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael A. Gantz, age 43, of Marietta, Pennsylvania, was charged in a criminal Information with theft concerning programs receiving federal funds.  If convicted of the offense, Gantz faces up to ten years’ imprisonment and $250,000 in fines, as well as restitution.  A plea agreement was also filed whereby Mr. Gantz has indicated he will enter a guilty plea to the charge when he appears in federal court for his arraignment.

According to United States Attorney Peter Smith, Gantz was employed by the Pennsylvania Department of General Services until July 2014 and was an acquisition officer in the surplus property warehouse.  In that position, Gantz had access to surplus military equipment which the federal government had provided the Pennsylvania Department of General Services for distribution to state and local law enforcement officers.  The Information alleges that Gantz stole 610 U.S. Military combat helmets between July 2009 and January 2010 which were valued in excess of $5,000.

The case was investigated by the U.S. Department of Defense, Defense Criminal Investigation Service and the Defense Logistics Agency, Office of Inspector General.  It is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.

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

The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced that separate criminal charges were filed yesterday in U.S. District Court in Harrisburg against three illegal aliens.

Jose Antonio Ramirez-Morales, age 36, was charged in a one-count indictment by a federal grand jury alleging that Ramirez-Morales, a Guatemalan citizen, who was previously arrested and deported from the United States on May 14, 2010, reentered the United States unlawfully and was found in Carbon County, Pennsylvania.

If convicted, Ramirez-Morales faces a maximum sentence of up to 10 years of imprisonment and a $250,000 fine.

Mario Ramirez-Dominguez, age 33, was charged in a one-count indictment by a federal grand jury alleging that Ramirez-Dominguez, a Mexican citizen, who was previously arrested and deported from the United States on September 30, 2012, reentered the United States unlawfully and found in York County, Pennsylvania.

If convicted, Ramirez-Dominguez faces a maximum sentence of up to 2 years’ imprisonment and a $250,000 fine.

Gustavo Ramirez-Diosdado, age 44, was charged in a one-count indictment by a federal grand jury alleging that Ramirez-Diosdado, a Mexican citizen, who was previously arrested and deported from the United States on April 22, 2008, reentered the United States unlawfully and was found in Centre County, Pennsylvania.

If convicted, Ramirez-Diosdado faces a maximum sentence of up to 10 years of imprisonment and a $250,000 fine.

The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and are being prosecuted by Special Assistant United States Attorney Alice Song Hartye.

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.

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

The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that a felony criminal information charging Michaelina Chivers, nee Vaughan, age 69, of Peckville, Pennsylvania, was filed in the United States District Court in Scranton, Pennsylvania.

According to United States Attorney Peter Smith, Chivers was charged in connection with theft of social security benefits are the result of her failure to inform the Social Security Administration of the death of her mother, and continuing to receive and use her deceased mother’s SSA benefits for her own personal use and gain.  As part of the plea agreement filed with the Court, Chivers has agreed to pay restitution to the SSA in the amount of $218,869.00, representing the loss to the SSA as a result of her fraud.

If convicted, Chivers could be imprisoned for a total statutory maximum sentence of up to 10 years and a fine in the amount of $250,000.

The joint investigation was conducted by the United States Social Security Administration, Office of the Inspector General and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Todd K. Hinkley.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Harrisburg man was sentenced today, in federal court in Harrisburg by Senior United States District Judge Sylvia H. Rambo, to serve 150 months in prison on the charge of possession of a firearm by a convicted felon.

According to United States Attorney Peter Smith, Elijah U. Brown, Jr., age 40, of Harrisburg, pleaded guilty to possession of a firearm by a convicted felon in May 2014.  Brown’s co-defendant Carlos C. Hill was previously sentenced by Judge Rambo to 235 months.

The charges were the result of an on-going partnership between the Dauphin County District Attorney’s Office and the U.S. Attorney’s Office announced in August 2012 to respond to a surge of violent crime within the city.  The charges against Brown arose from an incident in which, after Hill brandished a stolen firearm at a female victim in the 1600 Block of Park Street in Harrisburg, Brown hid the firearm.  The firearm was subsequently recovered by the Harrisburg Bureau of Police.

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

Brown was indicted by a federal grand jury on September 26, 2012, after an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Harrisburg Bureau of Police.  The case was prosecuted by Assistant United States Attorney Meredith A. Taylor.

The United States Attorney for the Middle District of Pennsylvania, announced today that a criminal charge of health care fraud has been filed against Edward Evans of Wernersville, PA.

According to United States Attorney, Peter Smith, Evans, age 50, is charged in a one-count felony information with health care fraud based on the submission of false claims to the Pennsylvania Attendant Care Medicaid Waiver Program.  The information alleges Evans’ billed for and received reimbursement for attendant care services which were never performed.  

The investigation which is ongoing was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Pennsylvania Attorney General’s Medicaid Fraud Control Section.  Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute 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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.

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

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Robert D. Mariani sentenced Jalani Kornegay, age 33, of New York, New York, for distributing cocaine.  Judge Mariani imposed a time-served sentenced of 59 days and further ordered that Kornegay serve four-month of home confinement.

On July 16, 2014, Kornegay pleaded guilty to a Criminal Information which charged that she distributed cocaine in Luzerne County on May 18, 2013.  The charges are the result of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police into the sale of cocaine at motels in Luzerne and Lackawanna Counties.  The case was prosecuted by Assistant United States Attorney John Gurganus.

In addition to the imprisonment and home-confinement sentence, Judge Mariani ordered that Kornegay be under the supervision of a United States Probation Officer for three years.

The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that a Millersburg bus company and one of its former officers pleaded guilty today to charges they defrauded two area school districts out of more than $1.4 million.

According to the U.S. Attorney Peter Smith, the Harris Transportation Corp. (HTC), and its former Vice President Todd M. Harris, age 49, a resident of Dalmatia, Pennsylvania, entered guilty pleas today before Senior U.S. District Court Judge Sylvia H. Rambo to an Information charging them with one count of Mail Fraud.  The Information filed on November 5, 2014, charges the defendants with defrauding the Halifax Area and the Upper Dauphin Area School Districts out of approximately $1.4 million between 2008 and 2011.  The Pennsylvania Department of Education (PDE) is also alleged to have been a victim of the scam.  U.S. Attorney Smith stated that the school districts and PDE cooperated with the federal investigators and that the Department of the Auditor General is working closely with his office.

As presented by Assistant U.S. Attorney Kim Douglas Daniel in U.S. District Court in Harrisburg today, HTC, a small, family owned business, provided student bus and van transportation services for the Halifax and Upper Dauphin school districts for many years.  The compensation HTC received for its services was based upon a formula set up by PDE, including mileage incurred with and without students, the age and size of the bus or van, and the number of students transported. Based on the formula, PDE reimburses school districts for a major portion of their annual student transportation expenses.

HTC received approximately $1.3 million from Halifax and approximately $3.6 million from Upper Dauphin during the school years 2008 to 2011.  The criminal Information alleges that between September 2008 and June 2011, Todd Harris routinely submitted false and grossly inflated mileage claims to the two school districts, resulting in substantial overpayments to HTC by Halifax ($566,556) and by Upper Dauphin ($898,057).  PDE also was a victim of the scheme because it reimbursed Halifax for approximately 82 percent, and Upper Dauphin approximately 84 percent, of their approved 2008-2011 student transportation expenses.

The fraud was first discovered in the summer of 2011 following an audit conducted by Upper Dauphin School District.  Subsequent audits by the Halifax School District and the Pennsylvania Department of the Auditor General revealed the mileage statements submitted by Todd Harris were typically inflated by 10 to 30 percent.  The State Auditors spent hundreds of hours reviewing billing issues and reported that Harris Transportation had over-billed the school districts by falsely reporting school bus mileage over several school years. 

“We need every dollar possible going toward classroom education for our students, but I realize that student transportation costs can be a big expense for any school district,” Pennsylvania Auditor General Eugene DePasquale said. “I urge all school districts to review transportation contracts and records to make sure they are not paying more than appropriate. Our school auditors will continue to closely examine transportation expenses. I am proud of our continued work with the U.S. Department of Education’s Office of Inspector General and U.S. Attorney to identify and stop corruption when we find it.”

The Auditor General’s audit reported that Harris Transportation Corp. greatly over-billed the districts by falsely reporting school bus mileage over several school years.  Auditors spent hundreds of hours reviewing the transportation billing issues, ultimately referring the case to federal officials.   

Interviews of former HTC drivers confirmed Todd Harris’ monthly mileage submissions were inflated and that Harris occasionally instructed them to take much longer routes on their runs than necessary. The investigation confirmed the combined losses sustained by both school districts for school years 2008 to 2011 totaled $1,464,613.  Upper Dauphin and Halifax terminated their contracts with HTC in early 2012.  The company ceased doing business shortly thereafter.

Todd Harris and HTC entered their guilty pleas pursuant to plea agreements with the government.  The agreements require the defendants to cooperate with the government, to forfeit their interests in the $1,464,613 proceeds of the fraud, and to make restitution to the two school districts as directed by the court.

HTC’s plea agreement also required it to make a $425,000 lump sum restitution payment at the time it entered its guilty plea. Counsel for the corporation tendered a $188,000 check to the court as partial payment during the guilty plea hearing and agreed to pay the remaining $237,000 by Friday November 22, 2014. The HTC plea agreement also acknowledges that HTC refunded an additional amount, $337,715, to Upper Dauphin in 2011, bringing the total restitution paid by the corporation to date to $762,715.

The Mail Fraud charge has a maximum sentence of up to 20 years in prison and a $250,000 fine.  Sentencing has been deferred pending preparation of Presentence Reports.   

The case was investigated by the U.S. Department of Education, Office of Inspector General, in conjunction with the Dauphin County Criminal Investigation Division and Office of General Counsel of the Pennsylvania Department of the Auditor General.  The case is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Matthew W. Brann sentenced Macey Geyer, age 42, of Castanea, Clinton County, to two years’ probation and ordered her to pay $9,230 in restitution for misappropriation of postal funds.

According to United States Attorney Peter Smith, Geyer took over $9,000 in postal funds from the Castanea Post Office. Geyer, who began her employment with the United States Post Service on June 23, 2007, served as Officer-in-Charge at the Castanea Post Office. The Postal Service terminated her employment in April 2014.

Geyer pleaded guilty on July 8, 2014.

The case was investigated by the United States Postal Service, Office of Inspector General.  Assistant United States Attorney Eric Pfisterer prosecuted the case.

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Trevoen Renel Parkins, age 23, of Buffalo, New York was sentenced today by United States District Court Judge Sylvia H. Rambo to 120 months’ imprisonment, followed by 10 years of supervised release and a $1,000 fine after pleading guilty to the offense of Transportation of Minor With Intent to Engage in Criminal Sexual Activity on July 13, 2014.

According to U.S. Attorney Peter Smith, Parkins met the 12-year-old victim online and on April 12, 2013, traveled from Buffalo, New York to Franklin County, Pennsylvania, waited all day for the victim to finish school and then drove the victim to Buffalo, New York without her parents’ knowledge.  While in Buffalo, Parkins statutorily raped the young girl twice.  Telephone records led law enforcement to Parkins who lied to police about the girl’s whereabouts and hid the girl for three days before she was ultimately located by police in a closet inside Parkins’ girlfriend’s apartment. 

 This case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police and the Buffalo City, New York Police Department.  The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.

The United States Attorney's Office for the Middle District of Pennsylvania announced today that United States District Court Judge Matthew W. Brann sentenced Catherine Maione, age 29, of New Hampton, New York, to one year probation along with a $350 fine and Anthony Webb, age 28, an inmate at the Allenwood facility, to 6 months’ imprisonment consecutive to any other sentence for providing and possessing contraband consisting of balloons containing marijuana.

According to a United States Attorney Peter Smith, Maione, visited Webb at the Allenwood facility, several times between June 2013 and February 2014 and delivered marijuana to Webb on those occasions.  Maione and Webb plead guilty on August 4, 2014.

The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons.  Assistant United States Attorney Eric Pfisterer prosecuted the case.

The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Robert D. Mariani sentenced Jeremiah Anderson, age 32, of Port Jervis, New York, to 57 months’ imprisonment for attempting to rob a convenience store in Milford, Pennsylvania.

According to United States Attorney Peter Smith, Anderson previously pleaded guilty in federal court to entering the Hilltop Sunoco/Extra Mart, in Milford, Pennsylvania on October 5, 2011, wearing a mask, and attempted to rob it without success. Judge Mariani ordered that Anderson be placed on supervised release for two years following the service of his 57-month prison sentence.   

The case was investigated by the Federal Bureau of Investigation, the Eastern Pike Regional Police Department, and the Pennsylvania State Police.  Assistant United States Attorney John Gurganus prosecuted the case.

The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO) announced today that a 28-year-old native and citizen of Honduras has been charged with improper entry into the United States.

According to United States Attorney Peter Smith, Orbin Izaguirre-Galvez, age 28, was charged in a one-count information filed with the Court in Harrisburg today.

The information alleges that Izaguirre-Galvez, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.

If convicted, Izaguirre-Galvez faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.

This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO). It is being prosecuted by Special Assistant United States Attorney Alice Song Hartye.

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.

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.