Middle District of Pennsylvania

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that today the U.S. Postal Inspection Service is delivering over 3400 checks to victims of marketing schemes by MoneyGram agents and others.

     The distribution payments were made from a $100 million fund paid by MoneyGram as part of a settlement with the U.S. Department of Justice and the U.S. Attorney’s Office for the Middle District of Pennsylvania in 2012.  The settlement was approved by Chief U.S. District Court Judge Christopher C. Conner.

     The U.S. Postal Inspection Service’s announcement, with additional information about the fund, can be found at postalinspectors.uspis.gov.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Margarito Morales-Oliva, age 35, formerly of Mexico, an inmate at the United States Penitentiary at Canaan, Pennsylvania, was charged on August 15, 2014 in a criminal Information with allegedly possessing a sharpened weapon commonly referred to as a “shank.”      

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 15, 2014, United States District Court Judge Malachy E. Mannion sentenced August John Stile, Jr., age 50, of Hughestown, Pennsylvania, to 46 months’ imprisonment.  In October 2013, Stile pleaded guilty to defrauding investors of approximately $310,000.  This was Stile’s second federal conviction for fraud since 2001.  

     Stile was the purported Vice President of JFC Group and the President of Stile Consulting.  JFC Group had an office in Dickson City, Pennsylvania, and Stile Consulting had office in Exeter, Pennsylvania.  Stile was indicted on the fraud charges in April 2013.  

     According to United States Attorney Peter Smith, between 2007 and 2009, Stile schemed to defraud private investors by fraudulently offering short-term investment opportunities based upon a promise of a return of the investment with substantial interest in less than 90 days.  In one instance, Stile promised an investor a payout of $265,000 in return for a short-term investment of $25,000-—the payout to occur in roughly 40 days.

     Rather than investing the money he received as promised, Stile used the funds for his own purposes which included the purchase of vehicles, and improvements to his other property.

     Judge Mannion sentenced Stile to the top of the applicable Sentencing Guidelines range.  In addition to the imprisonment term, Judge Mannion ordered Stile to pay restitution to the victims in the amount of $327,500.  Judge Mannion denied Stile’s request for a delay to begin his sentence and ordered him immediately into custody.

     Stile was previously prosecuted in federal court for fraud in 2001 and was sentenced to a prison term.  In 2011, he was sentenced to an additional 14 months in federal prison for violating the terms of his supervised release in that case as a result of the fraudulent investment scam activity that led to his indictment in the present case.  

     The case was investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorney John Gurganus prosecuted the case.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today charging a Monroe County resident with participating in a conspiracy to distribute heroin during November 2013 through April 2014.

     According to United States Attorney Peter Smith, the Information alleges that Tamika Davis, age 33, of Effort, Pennsylvania, conspired with others to distribute and possess with intent to distribute heroin in Monroe County and elsewhere.

     The charge stems from an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.

     Davis faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge.

     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 yesterday Senior United States District Court Judge A. Richard Caputo has sentenced Richard Hall, age 38, of Wilkes-Barre, Pennsylvania, to 65 months’ imprisonment for his involvement in a conspiracy to distribute cocaine hydrochloride and cocaine base (crack) between 2009 and April 2013; and for distributing marijuana to a person under the age of 21.

     According to United States Attorney Peter Smith, Hall was a cocaine and marijuana dealer in the Wilkes-Barre area.  Hall obtained cocaine from New York City and marijuana from the Philadelphia for distribution in the Luzerne County area.  On April 2, 2013, FBI Agents arrested Hall in Atlantic City, New Jersey.  On February 24, 2014, Hall appeared in federal court and pleaded guilty to the conspiracy charge and a charge that he distributed marijuana to a person under 21.

     The case was investigated by the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, and the Luzerne County District Attorney’s Office. Assistant United States Attorney John Gurganus prosecuted the case.

     The United States Attorney's Office for the Middle District of Pennsylvania announced that yesterday in Scranton United States District Court Judge Malachy E. Mannion sentenced Tarmaine Colbert, age 36, formerly of Phoenix, Arizona, to 37 months’ imprisonment for assaulting two correctional officers.  On May 29, 2014, Colbert pleaded guilty to the assault which occurred on January 12, 2014, at the U.S. prison facility in Canaan.

     According to United States Attorney Peter Smith, Colbert assaulted the officers when they attempted to do a pat down search of him for weapons.  Colbert punched the two officers in the face resulting in minor injuries to the officers. Colbert was found to be in possession of a sharpened weapon commonly referred to as a shank.   

     The case was investigated by special agents of 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 that a 34-year-old Philadelphia man pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to participating in a conspiracy to distribute heroin in the Hazleton area of Pennsylvania.

     According to United States Attorney Peter Smith, the defendant, Edwin Laureano-Suarez, admitted to conspiring with others to distribute heroin between May 2014 and June 18, 2014.

     Laureano-Suarez was charged in a criminal Information filed on August 12, 2014, as a result of an investigation by the Federal Bureau of Investigation and Scranton Police.

     Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing will be scheduled after the completion of the pre-sentence report.

     Laureano-Suarez faces up to 20 years in prison and a $1 million fine.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 37-year-old New Jersey man was sentenced to 14 months in federal prison yesterday by U.S. District Court Judge Malachy E. Mannion for possession with intent to distribute heroin in Kingston, Pennsylvania, on January 3, 2014.

     According to United States Attorney Peter Smith, the defendant, George Wormley, on May 1, 2014, pleaded guilty to committing the offense.

     Wormley was indicted by a grand jury on March 25, 2014, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kingston Police.

     Judge Mannion also ordered Wormley to be placed on supervised release for three years after serving his prison sentence, and to pay a $100 special assessment.

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

     The Unites States Attorney's Office for the Middle District of Pennsylvania announced today that it filed a Motion and Brief in Support of Motion to Quash State Court Subpoena in Commonwealth of Pennsylvania v. Robert J. Mellow.

     The United States Attorney's Office for the Middle District of Pennsylvania announced today that Matthew B. Puterbaugh, 47, of Dover, Pennsylvania was indicted today by a federal grand jury in Harrisburg charging him with production of receiving, and possession of, child pornography.

     If convicted, Puterbaugh faces a mandatory minimum of 15 years imprisonment on the production charge, a mandatory minimum five years imprisonment on the receipt charge and a statutory maximum of 70 years imprisonment.

     According to U.S. Attorney Peter Smith, Puterbaugh was a music teacher and band director at Dover Intermediate School in York County.  He allegedly secretly recorded images of female students at the school that constitute child pornography.  In February 2014, school officials reported a complaint to the Northern York County Regional Police Department.  Police conducted searches and allegedly found thousands of images depicting minors engaged in sexually explicit conduct on computers in Puterbaugh=s home.  Puterbaugh was suspended by the school district and charged by the York County District Attorney’s Office.  Earlier this week, he was terminated from his position by the school district. 

     Puterbaugh appeared before Magistrate Judge Susan E. Schwab this afternoon.  He was detained pending a detention hearing.

     This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

     This case is part of a continuing investigation by the Federal Bureau of Investigation and the Northern York County Regional Police Department in cooperation with the York County District Attorney’s Office.  The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.  Anyone with information concerning the subject matter of the investigation should contact the FBI at 717-232-8686 and reference the Puterbaugh 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 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 criminal Information was filed today charging a Philadelphia resident with participating in a conspiracy to distribute heroin in the Hazleton area of Luzerne County during May through June of this year.

     According to United States Attorney Peter Smith, the Information alleges that Edwin Laureano-Suarez, age 34, conspired with others to distribute and possess with intent to distribute heroin in Luzerne County and elsewhere.

     The charge stems from an investigation by special agents of the Federal Bureau of Investigation and Scranton Police.

     Laureano-Suarez faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge.

     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 a felony information has been filed against Calmen Stewart, Jr., age 23, of Stroudsburg, Pennsylvania.  The information charges Stewart with conspiracy to pass counterfeit federal reserve notes at locations throughout the Middle District of Pennsylvania and elsewhere.

     Ketsy Devis, age 24, Dominick Andino, age 24, and Ralph Randolph, age 36 were charged in related cases.  Devis and Andino await sentencing.  Randolph was sentenced on July 24, 2014 by U.S. District Court Judge Malachy E. Mannion to ten months incarceration followed by two years of supervised release.

     Stewart could be imprisoned for a statutory maximum term of imprisonment of five years and fines in the amount of $250,000. 

     The case was jointly investigated by the United States Secret Service and the Dickson City Police Department.

     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 that Gary L. DuRocher, 41, no fixed address, was charged in a Criminal Complaint following a series of incident at the Gettysburg National Military Park on Friday night, August 8, 2014. 

     According to United States Attorney Peter Smith, DuRocher is charged with assault and malicious mischief within the special jurisdiction of the United States for allegedly starting a fire that damaged property in the Park and making a threat of harm to another person.  The Complaint was filed by a Gettysburg Park Ranger.  If convicted of all offenses, DuRocher faces 11 years in prison and fines of more than $500,000. 

     DuRocher was taken into custody after the incidents and made an initial appearance before U.S. Magistrate Judge Susan E. Schwab in Harrisburg today.  A preliminary hearing on the complaint is scheduled for August 21, 2014.  Magistrate Judge Schwab granted the Government’s motion to detain DuRocher pending that hearing because of his risk of flight and danger to the community.

     Law enforcement officers of the National Park Service, Cumberland Township, Gettysburg Borough, McSherrystown Borough, Pennsylvania State Police and Maryland State Police, as well as fire and emergency response personnel from around the Gettysburg area participated in the investigation.  The case is being prosecuted by Assistant United States Attorney James T. Clancy.

     In 2012 Lupas, a long time prominent Wilkes-Barre attorney and school district solicitor, was taken into custody by federal agents and then indicted for mail fraud and conspiracy by a federal grand jury.  The initial indictment, and a superceding one, alleged that Lupas, since at least 2006, carried out a scheme to defraud clients by soliciting them to enter into trust agreements with him for investment purposes.  Lupas promised to hold the money in an account with a minimum of 7% interest tax-free for the benefit of the clients and their heirs.

     The charges alleged that the agreements were a massive fraud and that Lupas knowingly and intentionally betrayed the trust placed in him by taking and using the money for his own purposes and benefit.  Lupas pleaded not guilty and, on his behalf, a claim of incompetency was raised with the court.

     After examinations of Lupas by doctors and a competency hearing in 2013, U.S. District Court Judge Robert D. Mariani ordered that Lupas be committed to the custody of the Attorney General to receive further treatment pursuant to the governing statute.  In June 2014, physicians at the U.S. Bureau Of Prisons facility at Butner, North Carolina, issued a report stating that Lupas was suffering from a mental disease or defect rendering him incompetent to stand trial and there was a strong probably that his competency will not be restored in the foreseeable future.  The details of the report are included in a Motion to Dismiss the Superceding Indictment Without Prejudice filed by the Government on August 4, 2014.

     In its motion, the government stated:

     No additional facts can be provided at this time in support of maintaining the criminal charges against the defendant.  The defendant is 80 years old.  Multiple mental health experts and this Court have determined that the defendant is not competent to stand trial, and that there is no substantial probability that his competency will be restored in the foreseeable future.  As such, the Government is left with no other alternative but to move this Court to dismiss the pending criminal matter against the defendant, Anthony J. Lupas, Jr., without prejudice.

     WHEREFORE, for the foregoing reasons, the Government respectfully requests that the pending charges against the defendant be dismissed without prejudice.

     Yesterday, Judge Mariani filed an Order granting the government’s motion to dismiss without prejudice and directed that Lupas be release from the Butner facility.

     The government regrets that the prosecution of the case will not be able to go forward.  However, under the law, no defendant can be put on trial after he has been found incompetent.

     The allegations were extremely serious and many trusting people were deceived and grievously hurt through a pattern of deceit and dishonesty.  During the investigation, agents obtained, by search warrant and/or with consent, client records from Lupas’ former law firm and seized, or discovered, funds that maybe subject to further legal action by the government or the victims to obtain at least partial restitution.       

     Within the next few days, our Victim-Witness Unit will soon provide information, by mail and through our website, to the victims concerning what they can do and what steps they should follow to obtain their particular client files and to seek any funds, accounts and assets that may be subject to restitution.

     We appreciate the efforts of lawyers for the victims in this case to expose this long-running fraud and to help their clients recover their money.  We also note the action taken by the Pennsylvania Supreme Court and the Pennsylvania Crime Victims Fund to help recover at least a portion of the losses.

     This is not the only time in the past year that massive fraud against clients by trusted lawyers has been uncovered in this federal district.  Most lawyers act honestly and responsibly in the handling of their clients’ funds.  Obviously there was a major failure here.  I urge the legal community and, in view of this case, especially the legal community in Northeastern Pennsylvania, to do everything in its power to prevent a repetition of this conduct.

     Such efforts could include more education and outreach, fostering greater awareness of investment fraud schemes and establishing reasonable and appropriate limits, oversight and disclosure requirements concerning investment activities on the part of lawyers using client funds.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 31-year-old Philadelphia man pleaded guilty today in Scranton before U.S. District Court Judge Malachy E. Mannion to participating in a conspiracy that distributed heroin during November 2013 to January 2014.

     According to United States Attorney Peter J. Smith, the defendant, Luis Morales, admitted that he conspired with others, including Eudy Gonzalez, then an inmate at the Pennsylvania State Correctional Institution at SCI Waymart, to distribute and possess the heroin in Northeastern Pennsylvania.

     Morales was indicted by a federal grand jury in March 2014, as a result of an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.

     Morales faces a possible maximum sentence of 20 years in prison and a fine up to $1 million. Judge Mannion ordered a pre-sentence investigation to be completed prior to sentencing.

     Two of Morales’ co-defendants, Linda Reyes and Eudy Gonzalez, previously pleaded guilty and are awaiting sentencing.

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

     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 and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced that charges were brought yesterday against the following:

     Anicteo Baltazar-Uribe, age 20, a native and citizen of Mexico, was charged in a one-count indictment by a federal grand jury in Harrisburg.  The indictment alleges that Baltazar-Uribe, previously arrested and deported from the United States in September 2012, knowingly and unlawfully reentered the United States and was apprehended in Cumberland County, Pennsylvania.

     If convicted, Baltazar-Uribe faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.

     Luis Seba-Polito, age 27, a native and citizen of Mexico, was charged in a one-count indictment by a federal grand jury in Harrisburg.  The indictment alleges that on or before July 25, 2014, Seba-Polito used or attempted to use a fraudulent lawful permanent resident card during an encounter with immigration officials in Adams County, Pennsylvania.

     If convicted, Seba-Polito faces a maximum sentence of up to ten years’ imprisonment and a $250,000 fine.

     Jose Aguilar-Cruz, age 43, a native and citizen of Honduras, was charged in a one-count indictment by a federal grand jury in Harrisburg today.  The indictment alleges that Aguilar-Cruz, previously arrested and deported from the United States in June 2013, did knowingly and unlawfully reenter the United States and was apprehended in Cumberland County, Pennsylvania.

     If convicted, Aguilar-Cruz faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.

     Oscar Gonzalez-Herrera, age 26, a native and citizen of Mexico, was charged in a one-count indictment by a federal grand jury in Harrisburg.  The indictment alleges that on or before July 15, 2014, Gonzalez-Herrera knowingly possessed, used, or attempted to use a fraudulent lawful permanent resident card during an encounter with immigration officials in York, York County, Pennsylvania.

     If convicted, Gonzalez-Herrera faces a maximum sentence of up to ten years’ imprisonment and a $250,000 fine.

     Jose Baltazar-Uribe, age 29, a native and citizen of Mexico, was charged in a one-count information filed with the Court in Harrisburg.  The information alleges that Baltazar-Uribe, entered the United States at any time or place other than as designated by immigration officers and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.

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

     Manuel Angel Acevedo-Sola, age 47, a native and citizen of Guatemala, was charged in a one-count information filed with the Court in Harrisburg.  The information alleges that Acevedo-Sola, entered the United States at a time or place other than as designated by immigration officers and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.

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

     Pedro Reyes-Soto, age 46, a native and citizen of Honduras, was charged in a one-count information filed with the Court in Harrisburg.  The information alleges that Reyes-Soto, entered the United States at a time or place other than as designated by immigration officers and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.

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

     Armando Hernandez-Montiel, age 36, a native and citizen of Mexico, was charged in a one-count information filed with the Court in Harrisburg.  The information alleges that Hernandez-Montiel, entered the United States at a time or place other than as designated by immigration officers and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.

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

     Jacinto Gabriel-Lopez, age 27, a native and citizen of Mexico, was charged in a one-count information filed with the Court in Harrisburg.  The information alleges that Gabriel-Lopez, entered the United States at a time or place other than as designated by immigration officers and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.

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

     These cases were investigated by the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO) and are being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.

     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 offenses are 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 criminal Information was filed in U.S. District in Scranton yesterday charging a Monroe County resident with distributing crack cocaine during 2013.

     According to United States Attorney Peter Smith, the Information alleges that Jose Hernandez-Tirado, age 34, of Brodheadsville, distributed and possessed with intent to distribute cocaine base (“crack”).

     The charge stems from an investigation by special agents of the Drug Enforcement Administration, Department of Homeland Security (DHS), Homeland Security Investigations (HSI), the Pennsylvania State Police, the Bureau of Narcotics Investigations, and Berks County Detectives.

     Hernandez-Tirado faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge.

     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 a 40-year-old Effort man pleaded guilty yesterday before U.S. Magistrate Judge Karoline Mehalchick to conspiring with others to distribute heroin in the Monroe County area during a six-month time period.

     According to United States Attorney Peter Smith, the defendant, Kerion Johnson, admitted to committing the crime between November 2013 and April 22, 2014.

     Johnson was charged in a criminal Information filed by the United States Attorney on June 4, 2014, following an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.

     Johnson faces a potential maximum sentence of 20 years in prison and a $1 million fine.  Johnson will be sentenced by Senior U.S. District Court Judge Richard P. Conaboy at a future date. Johnson was ordered to be detained in prison pending sentencing in the case.

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

     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 a two-Count criminal Information was filed yesterday in U.S. District Court in Scranton charging Joseph S. Hyduk, age 54, Hazleton, Pennsylvania, with wire fraud and income tax evasion. 

     The Information alleges that Hyduk did business as BNA Financial Services, an insurance company which he operated from his home.  Allegedly, during 2010 through 2012, Hyduk fraudulently diverted approximately $1 million dollars from his clients’ accounts to himself for his own personal use.  The Government also filed a plea agreement in the case which is subject to the approval of the Court.

     If convicted, Hyduk faces a maximum of 25 years’ incarceration, $500,000 in fines and a term of supervised release.

     The investigation was conducted by the FBI Allentown office and the Internal Revenue Service, Criminal Investigation, Scranton office.  Prosecution is assigned to Assistant U.S. 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 U.S. Attorney's Office for the Middle District of Pennsylvania announced that a criminal information was filed in U.S. District Court in Harrisburg yesterday charging Robert M. Fowler, 60, of York Springs, Pennsylvania, with workers' compensation fraud involving $24,934.68 of benefits he was not entitled to receive.  If convicted, Fowler faces up to five years' imprisonment, $250,000 in fines and restitution.  A plea agreement was also filed indicating that Fowler intends to plead guilty when he appears for his arraignment in federal court.  The plea agreement is subject to approval by the Court

     According to U.S. Attorney Peter Smith, Fowler allegedly sustained an on-the-job injury in 1999 while working at the Defense Industrial Plant Equipment Center in Mechanicsburg, Pennsylvania, and began receiving federal workers' compensation benefits from the Office of Workers' Compensation Programs (OWCP) shortly thereafter.  Recipients of these benefits are required to submit forms to OWCP on a periodic basis to insure they are still eligible to receive the benefits.

     The criminal charge filed today allegedly indicates that Fowler lied on several forms he submitted to OWCP because he falsely claimed he was not incarcerated during the prior 15 months for a felony and was residing with his wife.  In fact, Fowler was in the Adams County Jail between September 2012 and July 2013 and had not resided with his wife between October 2010 and March 2014.  As a result of the false statements, OWCP paid Fowler $24,934.18 which he was not entitled to receive.

     The case was investigated by the U.S. Department of Labor, Office of Inspector General, and 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.

     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 for the Middle District of Pennsylvania, announced that charges have been filed against Sinclair L. Atkins who is currently confined at United States Penitentiary Terre Haute, Indiana.

     According to United States Attorney, Peter Smith, Atkins, age 63, is charged in a one-count felony information with mailing threatening letters to various federal officials.  The offense is alleged to have occurred in November 2011, while Atkins was confined at the United States Penitentiary, Lewisburg, Pennsylvania.

     The investigation was conducted by the Federal Bureau of Investigation, and the United States Marshal’s Service.  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.

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

     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 Robert G. Bard, age 47, of Warfordsburg, Pennsylvania, was sentenced by Senior U.S. District Court Judge Sylvia H. Rambo to 262 months’ imprisonment, ordered to pay $4.2 million in restitution to 66 victims, and was placed on two years supervised release after release from prison.

     In handing down her sentence, Judge Rambo stated “Bard’s actions had a devastating impact on his victims and the lengthy sentence was appropriate under the circumstances.”  Judge Rambo ordered that Bard be immediately taken into custody to commence serving his sentence.  A number of victims were present in the courtroom and applauded as Bard was taken into custody.

     Bard was convicted of 21 counts of securities fraud, mail fraud, wire fraud, bank fraud, and making false statements after a seven-day jury trial in August 2013.  The evidence at trial proved that Bard was a registered investment advisor and was the owner and operator of Vision Specialist Group (VSG) between December 2004 and August 2009. The jury convicted Bard of defrauding numerous investors by, among other things, misrepresenting the value and make-up of their investment portfolios.

     Bard executed the scheme by creating phony account statements which significantly inflated the value of the investors’ accounts and included securities that were not owned by the investor. Bard created the phony account statements to conceal over $5.8 million in losses his clients sustained between 2006 and 2009 as a result of risky and speculative stocks he purchased on their behalf.

     Bard also failed to inform his clients that he was terminated from his prior employment as a stock broker for forging customer signatures on financial documents, had received a lifetime ban from the National Association of Securities Dealers and had declared personal bankruptcy in 2005.

     The case was investigated by the FBI with assistance from the U.S. Securities and Exchange Commission. Senior Litigation Counsel Bruce Brandler handled the prosecution.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 58-year-old Pittston resident pleaded guilty and was sentenced yesterday by U.S. Magistrate Judge Karoline Mehalchick to nearly two months in prison for unlawfully possessing and causing to be present a loaded firearm inside the William J. Nealon Federal Building in Scranton on June 5, 2014.

     According to United States Attorney Peter Smith, the defendant, Jerome Vantaggi, was sentenced to time already served in prison, which totaled 55 days.

     The charge against Vantaggi resulted from an investigation by the United States Marshals Service.

     Vantaggi must also pay a $25 special assessment, and serve a year on supervised release. Judge Mehalchick ordered that Vantaggi may not possess a firearm while on supervised release and must undergo a mental health evaluation.

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

     The U.S. Attorney's Office for the Middle District of Pennsylvania announced that Stephanie A. Metz, age 25, of Harrisburg, Pennsylvania, was sentenced to serve a year in prison and pay $57,216.22 to the IRS for her role in a conspiracy to submit 33 fraudulent income tax returns to the IRS requesting $242,095 in fraudulent tax refunds for the years 2010 and 2011.  U.S. District Court Judge Yvette Kane ordered that Metz surrender to the Bureau of Prisons on August 25, 2014 to commence serving her sentence.

     According to U.S. Attorney Peter Smith, Metz provided a co-conspirator with addresses where the fraudulent income tax refund checks could be delivered by mail and was paid a fee for each refund check she delivered to her co-conspirator.  For the tax years 2010 and 2011, Metz provided addresses for 33 fraudulent income tax returns requesting $242,095 in fraudulent tax refunds.  The IRS paid out $57,216 to the co-conspirator before the scheme was detected in early 2012.

     The investigation is part of a project known as Operation Mass Mail involving the filing of hundreds of thousands of false returns using stolen identity information of residents of Puerto Rico.  The investigation was conducted by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler.         

     The United States Attorney's Office for the Middle District of Pennsylvania announced that Sandra Jalowiec, age 43, Avoca, Pennsylvania was charged with health care fraud in a criminal information filed in U.S. District Court in Scranton yesterday.

     According to United States Attorney Peter Smith, Jalowiec, allegedly engaged in a scheme and artifice to defraud Blue Cross of Northeastern Pennsylvania for the period beginning January 2008 through May 2014.

     The charges stem from an investigation initiated in June 2014 by the Federal Bureau of Investigation and the Department of Health and Human Services.

     The information alleges that Jalowiec defrauded Blue Cross of Northeastern Pennsylvania by forging prescriptions in the name of a licensed medical doctor.  The prescriptions were fraudulently written by Jalowiec for pain medications.  Blue Cross was then billed for the forged and fraudulent claims.  The government also filed a plea agreement in the case.  The agreement is subject to the approval of the Court.  Jalowiec will be required to pay restitution for the loss amount.

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

     Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Mexican citizens, who were in the United States illegally, were sentenced to prison on charges of illegal reentry into the United States.

     German Espinosa-Hernandez, also known as Ferdinand Gonzalez-Velez, age 36, a native and citizen of Mexico in the United States illegally, was sentenced today by United States District Judge Yvette Kane to 36 months imprisonment and three years of supervised release following his release from imprisonment after pleading guilty to illegal reentry into the United States on March 11, 2014.

     According to U.S. Attorney Peter Smith and documents filed in federal court, Espinosa-Hernandez was ordered removed by an Immigration Judge in York, Pennsylvania in May, 2008 and was previously removed from the United States on two prior occasions, in May and June, 2008.

     Additionally, Espinosa-Hernandez was granted voluntary returns to Mexico on two other occasions, in December, 1999 and August, 2008.  Since 2003 Espinosa-Hernandez has accumulated seven prior criminal convictions as an adult, including resisting arrest and three driving under the influence of alcohol offenses. On September 24, 2013, after having reentered the United States illegally Espinosa-Hernandez was again apprehended in Franklin County by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.

     On Wednesday, July 23, 2014, Alberto Bautista-Sanchez, age 30, a native and citizen of Mexico in the United States illegally, was sentenced by United States District Judge Yvette Kane to 41 months imprisonment and three years of supervised release following his release from imprisonment after pleading guilty to illegal reentry into the United States on March 19, 2014.

     According to U.S. Attorney Peter Smith and documents filed in federal court, Bautista-Sanchez was ordered removed from the United States by an Immigration Judge in Arizona in November, 2002. Between November 2002 and January 2013, Bautista-Sanchez was previously removed from the United States eight times. Additionally, since 2001, Bautista-Sanchez has accumulated thirteen prior criminal convictions as an adult, including two aggravated felony sex offenses involving a minor.

     On December 3, 2013, after reentering the United States illegally, Bautista-Sanchez was apprehended in Franklin County by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.  

     These cases were investigated by the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO) and were prosecuted by Special Assistant United States Attorney Brian G. McDonnell.

****

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Todd Kowar, age 46, Kidder Township, Carbon County, was indicted today by a federal grand jury in Scranton on charges of producing child pornography and possessing child pornography.

     According to United States Attorney Peter Smith, the grand jury alleges that Kowar persuaded and induced a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. The indictment alleges that Kowar committed the crimes between 2008 and December 2012.

     The charges stem from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Kidder Township Police.

     Kowar faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison if he is convicted of the production of child pornography charge; and faces 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.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Schmutzler, age 43, of Fayetteville, Pennsylvania was sentenced yesterday by Senior United States District Judge William Caldwell to 108 months’ imprisonment, a $15,000 fine and ten years of supervised release following his release from imprisonment after pleading guilty to possession and receipt of child pornography on July 29, 2013.

     According to U.S. Attorney Peter Smith, in March of 2013, federal and state law enforcement officers executed a search warrant at the defendant’s home in Fayetteville, Pennsylvania and found several thousand videos and images of material containing child pornography, including 1425 images Schmutzler created using existing child pornographic images and Photo-shopping the cropped images of heads from 136 students at the school where he was employed.  Schmutzler was employed as a teacher at Chambersburg High School. 

     This case was investigated by the United States Postal Inspection Service, the Pennsylvania State Police and the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI).  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 Thomas A. O'Connor, 46, of York, Pennsylvania was sentenced to 420 months’ imprisonment by Chief Judge Christopher C. Conner in U.S. District Court in Harrisburg.  O'Connor had previously pleaded guilty to production and receipt of child pornography for enticing a young boy to produce sexually explicit videos of himself online.  Agents also found thousands of images and videos depicting minors engaged in sexually explicit conduct on computers in O'Connor's home.  In addition, O’Connor confessed to sexually abusing a young child with special needs for several years. 

     This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse.  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.   

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Hazleton man was sentenced yesterday, in federal court in Scranton, by United States District Judge Robert Mariani, to serve 46 months in prison on a charge of conspiracy to distribute cocaine.

     According to United States Attorney Peter Smith, Juan Carlos Alvarez, age 28, a resident of Hazleton, pleaded guilty to the charge in March of this year.  Alvarez was ordered to serve an additional 3 years’ under court supervision upon his release from prison.

     Alvarez was charged after an investigation conducted by the United States Drug Enforcement Administration, the Hazleton Police Department and the Butler Township Police Department.    

     The case was prosecuted by Assistant United States Attorney William S. Houser.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 31-year-old Stroudsburg man pleaded guilty today before Senior U.S. District Court Judge James M. Munley to distributing crack cocaine in the Monroe County area during a seven-month time period.

     According to United States Attorney Peter Smith, the defendant, Dominic Darby, admitted to distributing and possessing with intent to distribute crack cocaine from October 2013 to April 30, 2014.

     Darby was charged in a criminal Information filed by the United States Attorney on July 17, 2014, following an investigation by special agents of the Federal Bureau of Investigation and the Pennsylvania State Police.

     Darby faces a potential maximum sentence of 20 years in prison and a $1 million fine.  Judge Munley scheduled sentencing for October 23, 2014.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Danny Robertson, 63, Hershey, Pennsylvania pled guilty in United States District Court in Harrisburg to wire fraud relating to providing false information to racing officials and the public.

     According to United States Attorney Peter Smith, Robertson was an employee at the Penn National racetrack and worked as a clocker.  His duties included being present at the racetrack when horses had their official workout. Robertson was responsible for verifying that the horse was the actual horse the trainer represented it to be, accurately recording the distance and the time the horse ran in and providing the information to racing officials for the official daily racing program. Robertson also provided the workout time information by interstate wire via computer to Equibase, a Kentucky-based company that distributes information on a racehorse’s performance and workout times to organizations, media outlets and publications such as the Daily Racing Form, as well as on its own website.

     Robertson was charged in an indictment presented on November 20, 2013.  The count of the Indictment to which Robertson pled guilty alleged that the workout time information is relied upon by the betting public in deciding which horse to wager on in any given race. Robertson admitted that, in exchange for cash, he provided false workout times to racing officials and to Equibase. The times provided by Robertson as part of the fraud were inaccurate, or were completely fabricated for a horse that did not work out at all at the track. Robertson profited personally from the scheme, the betting public was defrauded and Robertson’s’ employer, Hollywood Casino and Racetrack, was denied its right to Robertson’s honest services.  

     Robertson pled guilty today before Senior U.S. District Court Judge William W. Caldwell pursuant to a plea agreement with the government. The investigation was conducted by the Federal Bureau of Investigation’s Harrisburg Resident Agency, the Pennsylvania State Police and the Pennsylvania State Horse Racing Commission.  Prosecution was assigned to Assistant United States Attorney William A. Behe.

     Robertson faces up to 20 years imprisonment and a $250,000 fine.

     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 47-year-old Forty Fort businessman was sentenced to 31 months in federal prison today by Senior U.S. District Court Judge Edwin M. Kosik for participating in a conspiracy to launder drug proceeds related to the distribution of synthetic marijuana.

     According to United States Attorney Peter Smith, the defendant, Mastan Mathan, of Forty Fort, previously admitted to conducting financial transactions with drug proceeds that were designed to conceal the nature of the proceeds and carry on the illegal distribution of synthetic marijuana. The money laundering activity occurred between October 2011 and July 2012, and involved approximately $310,000.

      Mathan was charged in a criminal Information filed by the United States Attorney. The Information states that Mathan and his co-conspirators obtained synthetic marijuana from out-of-state suppliers; sold synthetic marijuana to customers from the GM Foodmart Store in Forty Fort; and deposited the proceeds of drug sales into at least two bank accounts in order to conceal the illegal nature of the proceeds and to promote the carrying on of the illegal drug business.

     The prosecution of Mathan resulted from an investigation by the IRS Criminal Investigative Division, the Drug Enforcement Administration, and the Pennsylvania State Police.

     Judge Kosik also ordered Mathan to be placed on supervised release for two years after serving his prison sentence. Mathan has forfeited approximately $174,000 to the United States that was seized by agents during the investigation.

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

     The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Christopher A. Engel, 34, formerly of Glen Rock, Pennsylvania, and currently residing in Washington, Utah, was sentenced in connection with his operation of Pinnacle Forex Group ("PFG"), LLC, a currency trading firm that he operated from his home in Glen Rock.

     United States District Court Judge Yvette Kane sentenced Engel to 38 months’ imprisonment, $405,500 in restitution and two years’ supervised release.  Engel was ordered to surrender to the Bureau of Prisons on August 18, 2014.

     According to U.S. Attorney Peter Smith, Engel created PFG in 2010 and advertised it on the internet as "a full scale currency investment firm" that was "in the top 1% of currency traders."  Between June 2011 and October 2012, Engel allegedly received $411,500 from 21 investors throughout the United States that was supposed to be invested in the Foreign Exchange Market ("Forex").  Engel admitted he only invested $137,000 of the money into the Forex market and later withdrew those funds for personal expenses.  The remaining funds were never invested and also used by Engel for personal expenses.

     The case was investigated by the FBI and was prosecuted by Senior Litigation Counsel Bruce Brandler.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today charging a Chicago resident with traveling in interstate commerce to promote and facilitate drug trafficking.

     According to United States Attorney Peter Smith, the Information alleges that Maria Pina, age 44, a Mexican national who resided in Chicago, Illinois, at the time of her arrest, traveled from Illinois to Pennsylvania on February 11 and 12 of this year to further the efforts of a drug trafficking conspiracy operating in the Middle District of Pennsylvania and elsewhere.

     The charge stems from an investigation by special agents of the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), the Pennsylvania State Police, and Berks County Detectives.

     Pina faces a potential maximum sentence of five years in prison and a $250,000 fine if she is convicted of the charge.

     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 for the Middle District of Pennsylvania announced that charges have been filed in U.S. District Court in Williamsport against Mary Ann Gillespie of Bloomsburg, Pennsylvania.

     According to United States Attorney, Peter Smith, Gillespie, age 59, is charged in a one-count felony information with bank larceny during the period of November 2008 to September 2013.  The offense is alleged to have occurred as a check kiting scheme carried out by the defendant involving accounts at the First Columbia Bank and Trust Company and Fulton National Bank in Bloomsburg.

     The investigation was conducted by the Federal Bureau of Investigation, Williamsport Resident Agency.   Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.

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

     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 U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Vanny Son (33), Son Thach (55), and Hung Danh (54), all of Harrisburg, Pennsylvania, were indicted by the federal grand jury on charges they participated in a tax scheme that resulted in over $1 million in losses to the IRS.  Vanny Son and Son Thach were arrested and brought before U.S. Chief Magistrate Judge Martin C. Carlson for an initial appearance and released on bail pending trial, which is scheduled for September 3, 2014.  An arrest warrant is pending for Hung Danh, who remains a fugitive.

     According to U.S. Attorney Peter Smith, Son and Thach allegedly operated five employee leasing businesses in Harrisburg between 2006 and 2012 and paid their employees over $7 million in cash without withholding income taxes or Federal Insurance Contribution Act (FICA) taxes resulting in a tax loss of over $1 million to the IRS.  Danh helped operate one of the employee leasing businesses during that time, known as HD Staffing.  The names of the employee leasing companies operated by the defendants and the years of operation are as follow:

     Vanny and Son Services (V&S), (2006-2007)
     Industrial Labor Services (ILS), (2007)
     Advance Labor Services (ALS), (2008)
     HD Staffing (HD), (2009-2010)
     TD Staffing (TD), 2011-2012)

     Employers are required to withhold income taxes from employee wages based on the number of allowances on the employees' W-4 Form.  Employers are also required to withhold FICA taxes from their employees' wages at the FICA tax rate and remit those payments, along with the employee's matching FICA tax, when they file their Employer's Quarterly Federal Income Tax Return-Form 941.  The 37-count Indictment charges the defendants with conspiring to evade these employment taxes, tax evasion, and causing multiple false Forms 941 and Forms 1120 to be filed with the IRS which failed to report any of the cash wages paid to their employees.

     The defendants face up to five years' imprisonment and $250,000 in fines for the conspiracy count and tax evasion charges, and up to three years' imprisonment and $250,000 in fines for filing false tax returns, along with full restitution to the IRS.

     The case was investigated by the Criminal Investigation Division of the IRS and 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 5 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.

     The United States Attorney's Office for the Middle District of Pennsylvania and the United States Secret Service, announced today that three New York men have been charged with Possession of Fifteen or More Counterfeit or Unauthorized Access Devices today by a federal grand jury in Harrisburg.

     According to United States Attorney Peter Smith, Danilo Vargas, age 25, Dawill Miguel Almonte, age 22, and Jeriel Delosangeles, age 25, allegedly possessed approximately 62 counterfeit credit cards.  The charges arose out of a car stop by the Pennsylvania State Police in York County in November 2013.

     If convicted, Vargas, Almonte, and Delosangeles face a term of imprisonment of up to ten years and fines up to $250,000.

     This investigation was conducted by the United States Secret Service and Pennsylvania State Police. It is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.

     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 Jose Juan Albertorio-Garcia, 45, of Philadelphia, Pennsylvania, was indicted by a federal grand jury in Harrisburg.  The indictment charges Garcia with Possession of a Firearm in furtherance of Drug Trafficking and five counts of Possession With Intent to Distribute a Controlled Substance.

     According to United States Attorney Peter Smith, the charges against Garcia are a result of allegations that Garcia was supplying heroin for distribution in Harrisburg from June 2013 through March 2014.  In addition, Garcia is charged with possessing a firearm in furtherance of drug trafficking at the time of his arrest.

     If convicted, Garcia faces a statutory maximum of life imprisonment and a mandatory minimum of five years’ imprisonment.

     This case is being investigated by the Drug Enforcement Administration and the Pennsylvania State Police as part of a continuing initiative to combat violent crime in Harrisburg.  This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.

     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 criminal Information was filed today charging a Monroe County resident with distributing crack cocaine during a seven-month time period.

     According to United States Attorney Peter Smith, the Information alleges that Dominic Darby, age 31, of Stroudsburg, Pennsylvania, distributed and possessed with intent to distribute cocaine base (“crack”) in Monroe County from October 2013 to April 30, 2014.

     The charge stems from an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.

     Darby faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge.

     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.

     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.

     The United States Attorney's Office for the Middle District of Pennsylvania announced today that Devonte Betts, 20, of Hummelstown, Pennsylvania was indicted by a federal grand jury in Harrisburg.  The indictment charges Betts with Possession of a Firearm by a Convicted Felon, Possession of a Firearm in furtherance of Drug Trafficking, and two counts of Possession With Intent to Distribute a Controlled Substance.

     According to United States Attorney Peter Smith, the charges against Betts are a result of allegations that Betts was in the vicinity of 13th and Market Streets, Harrisburg, on June 6, 2014, in possession of two firearms, as well as heroin and crack cocaine. 

     If convicted, Betts faces a statutory maximum of life imprisonment and a mandatory minimum of five years’ imprisonment.

     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.

     This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Harrisburg Bureau of Police as part of the ongoing cooperative effort to combat violent crime in the City.  This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.

     The United States Attorney's Office for the Middle District of Pennsylvania announced today that Nicholas Rivera, 40, of Harrisburg, Pennsylvania, was indicted by a federal grand jury in Harrisburg, Pennsylvania.  The indictment charges Rivera with five counts of Distribution or Possession with Intent to Distribute a Controlled Substance.

     According to United States Attorney Peter Smith, the charges against Rivera are a result of allegations that Rivera was selling cocaine and heroin in Harrisburg from March 2014 through May 2014.

     If convicted, Rivera faces a statutory maximum 20 years’ imprisonment.

     This case is being investigated by the Drug Enforcement Administration, the Pennsylvania State Police and the Dauphin County Drug Task Force.  This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.

     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 Senior United States District Court Judge James M. Munley sentenced an inmate at the United States Penitentiary at Canaan, Pennsylvania, to 15 years’ imprisonment for stabbing another inmate multiple times with a sharpened weapon and with the intent to commit murder.  Eddie Joe Sutton, age 60, formerly of Texas, was charged with the offense and pleaded guilty on April 15, 2014.     

     According to United States Attorney Peter Smith the attack on the victim inmate occurred on November 7, 2013; the victim inmate survived the attack but suffered numerous stab wounds which required treatment at a local hospital.  At the time of the attack, Eddie Joe Sutton was serving a 20-year sentence for bank robbery.  Judge Munley ordered the 15-year imprisonment term to be served after completion of his bank robbery sentence.

     The case was investigated by the FBI and the Special Investigation Section at USP-Canaan.

     Assistant United States Attorney John Gurganus prosecuted the case.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an indictment was returned by a grand jury charging Farah Laurent, age 30, of Scranton, Pennsylvania, with obtaining approximately $26,000 by fraud from the Tobyhanna Federal Credit Union in May through July of 2010. 

     According to United States Attorney Peter Smith, Laurent allegedly made fictitious credit card payments to the Tobyhanna Federal Credit Union by using either closed or invalid at other banks. 

     Laurent faces a maximum sentence up to 30 years in prison and fines in the amount of $500,000.

     The prosecution is the result of an investigation by the United States Secret Service.  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.

     In this case, the maximum penalty under the federal statute is 30 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert F. Evans, Jr., age 38, of Moosic, Pennsylvania, pleaded guilty to a one-count Criminal Information charging that he distributed oxycodone on numerous occasions between August 2012 and July 29, 2013.   At the time of the offense, Evans was employed as a police officer with the Hughestown Borough Police Department. 

     At the guilty plea hearing, United States District Court Judge Malachy E. Mannion accepted Evans’ guilty plea after Evans acknowledged distributing approximately 750 oxycodone pills during the scheme; possessing a firearm in connection with the activity; and abusing his position of trust as a police officer which significantly facilitated and concealed the offense.    Judge Mannion ordered that a presentence investigation report be compiled in advance of the sentencing.

     United States Attorney Peter J. Smith stated that the charge is the result of an investigation conducted by the Federal Bureau of Investigation and the Pennsylvania State Police.  Prosecution is assigned to Assistant United States Attorney John Gurganus.

     A sentence following a guilty plea 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 twenty 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.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that James Presley, a 43-year-old Erie, Pennsylvania resident was indicted by a federal grand jury today for unlawfully possessing a firearm and ammunition as a convicted felon in Luzerne County on May 15, 2014.

     According to United States Attorney Peter Smith, the grand jury alleges that James Presley unlawful possessed a Hi Point 9mm firearm. The indictment alleges that at the time he possessed the firearm and ammunition Presley was a convicted felon.  

     The charge stems from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pennsylvania State Police.

     If the defendant is convicted of the charge, he faces up to 10 years in prison and a $250,000 fine.

     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.

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

     Ernest G. Fink, Jr., 68, of Orwigsburg, Pennsylvania, the former Chief Operating Officer and co-owner of Schuylkill Products Inc., was sentenced in federal court in Harrisburg, Pennsylvania, today to 51 months’ imprisonment and ordered to pay fines totaling $25,100 for his role in a massive conspiracy to defraud the Disadvantage Enterprise (DBE) program, announced Peter Smith, U.S. Attorney for the Middle District of Pennsylvania.  Senior U.S. District Court Judge Sylvia H. Rambo directed that Fink report to prison no later than September 8, 2014. 

     In handing down the sentence, Judge Rambo stated “DBE fraud is pervasive in the construction industry and persons so inclined to commit the same kind of fraud need to be aware that they face serious consequences from DBE fraud.”

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

     On August 16, 2010, Fink pleaded guilty to conspiracy.  Sentencing was deferred pending the resolution of the case against Joseph W. Nagle, SPI’s former president and co-owner.

     In April 2012, after a four-week jury trial, a federal jury found Nagle guilty on 26 charges in the indictment, including conspiracy to defraud the USDOT and to commit wire and mail fraud, seven counts of wire fraud, six counts of mail fraud, conspiracy to commit money laundering and 11 counts of money laundering.

     On June 30, 2014, Nagle was sentenced to 84 months imprisonment and ordered to pay fines totaling $27,600.

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

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

     The USDOT Office of Inspector General has cautioned prime contractors and subcontractors not to engage in fraudulent DBE activity and encouraged them to report any suspected DBE fraud by contacting www.oig.dot.gov/hotline. 

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

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

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

     Earlier this year, three other former executives associated with SPI, CDS and Marikina were sentenced for their roles in the scheme.

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

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

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced yesterday, in federal court in Wilkes-Barre, by United States District Judge A. Richard Caputo, to serve 41 months in prison on a charge of conspiracy to distribute heroin.

     According to United States Attorney Peter Smith, Dwayne Webb, age 33, a resident of Wilkes-Barre pleaded guilty to the charge in March of this year. 

     Webb was charged after an investigation conducted by the United States Drug Enforcement Administration, the Pennsylvania State Police and the Wilkes-Barre Police Department.  An Indictment was filed against Webb and twelve other persons on June 4, 2014.  Webb was classified as a career offender under the United States Sentencing Commission advisory sentencing guidelines.  

     The case was prosecuted by Assistant United States Attorney William S. Houser.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that an inmate at SCI Waymart pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to participating in a conspiracy that distributed heroin during November 2013 to January 2014.

     According to United States Attorney Peter Smith, the defendant, Eudy Gonzalez, age 24, admitted that he conspired with others to distribute and possess with intent to distribute heroin during a three-month period, while he was in prison.

     Gonzalez was indicted by a federal grand jury on March 11, 2014, as a result of an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.

     Gonzalez faces a possible maximum sentence of 20 years in prison and a fine up to $1 million. Judge Mannion ordered a pre-sentence investigation to be completed prior to sentencing.

     One of Gonzalez’s co-defendants, Linda Reyes, previously pleaded guilty and is awaiting sentencing.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania today announced the return of a three-count indictment against Steven Oliver Singletary, age 27, of Philadelphia, Pennsylvania.  The indictment charges Singletary with possession of a firearm by a convicted felon, possession of a stolen firearm, and possession of a firearm with an obliterated serial number.
 
     According to United States Attorney Peter Smith, the indictment alleges that on July 2, 2014, in Williamsport, Pennsylvania, Singletary, a convicted felon, possessed a stolen Glock Model 17 9mm pistol which had an obliterated serial number.
 
     If convicted of all the charges alleged in the indictment, Singletary faces a 25-year prison term, a three-year term of supervised release, and a $750,000 fine.            

     The case was investigated by the Pennsylvania State Police, the Williamsport Bureau of Police, and the Federal Bureau of Investigation, Philadelphia Division.  Prosecution of this matter 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.