Middle District of Pennsylvania

     A corrupt MoneyGram/Western Union agent was sentenced to 15 years in federal prison today, the United Attorney’s Office for the Middle District of Pennsylvania announced.  Itohan Agho-Allen, of Brooklyn, New York, was convicted by a federal jury in Harrisburg of charges of laundering money paid by victims of international telemarketing fraud schemes following a six-day trial in July, 2013. 

     Chief U.S. Court District Judge Christopher C. Conner also ordered Agho-Allen to pay restitution of $2,371,668, and a special assessment of $2,300 and to serve a three-year term of supervised release.

     Agho-Allen was convicted of criminal conspiracy, 8 counts of wire fraud and 14 counts of money laundering.

     According to United States Attorney Peter J. Smith, Agho-Allen, age 39, was an agent of Miracle Multi-Link, a MoneyGram and Western Union outlet in Brooklyn, New York and had been recruited to process money transfers received from fraud schemes including sweepstakes, loans, employment opportunities, persons-in-need and internet purchases.

     Between 2002 and November 2010, money transfers originating in locations in Pennsylvania, including York, Bloomsburg, Berwick, Hazleton, Lebanon, Chambersburg, East Stroudsburg and Montoursville, were transmitted through facilities to fraud participants in Brooklyn, Spain, Romania, Canada and Nigeria. Money in excess of $7 million was obtained from hundreds of victims throughout the United States through telemarketing schemes that falsely promised financial awards and other valuable items. 

     At trial the Government presented evidence that Agho-Allen entered fictitious identifying information into the Moneygram or Western Union computer systems disguising the true nature of the transaction and the identities of individuals perpetrating the frauds. For doing so, Agho-Allen was paid 10-15% of each transaction.

     Assistant U.S. Attorney Christy Fawcett, the Government trial attorney, noted that, “The money launderer is crucial to the success of the international fraud scheme because she conceals from victims and law enforcement who is behind the fraud and where the money is going.”

     Agho-Allen was indicted in March 2011 and charged with conspiracy to commit mail fraud, wire fraud and money laundering and counts of wire fraud and money laundering.

     To-date, approximately 33 former MoneyGram and Western Union agents have been prosecuted by the United States Attorney’s Office in Harrisburg. Several of them testified as Government witnesses at Agho-Allen’s trial. In addition, in November 2012, the U.S. Department of Justice reached a settlement with MoneyGram which resulted in the forfeiture of $100 million to be used to compensate thousands of victims. 

     This case is part of an on-going, long-term investigation by the U.S. Postal Inspection Service in coordination with the United States Attorney’s Office for the Middle District of Pennsylvania and with cooperation from Canadian law enforcement agencies.

     David W. Bosch, Inspector in Charge of the Philadelphia Division of the United States Postal Inspection Service, said, “This 15-year sentence reflects the damaging impact of international mass marketing frauds against primarily U.S. citizens.  It should act as a deterrent to those who would prey on the most vulnerable segments of our society.” 

     Prosecution was handled by Assistant United States Attorney Christy H. Fawcett.

     Persons who believe they were victims of the fraud scheme should visit http://www.justice.gov/criminal/vns/caseup/ or call 1-877-282-2610 (United States Only) or 317-324-0390 (International) for instructions on how to request compensation.

     Persons with information and/or complaints concerning suspected marketing fraud schemes should contact their nearest United States Post Office or 1-877-USMAIL-5.

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     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Carbon County man was sentenced yesterday, in federal court in Scranton by Senior United States District Judge Edwin M. Kosik, to serve 30 months in prison on the charge of being an unlawful user of controlled substances in possession of firearms.

     According to United States Attorney Peter J. Smith, Jordan Bachert, age 29, of Lansford, Carbon County, previously admitted to being an unlawful user of controlled substances in 2011 and 2012, a time period in which he purchased and possessed several firearms in Carbon County.  Bachert pled guilty on October 9, 2013 to a criminal information filed on September 16, 2013.

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

     The case resulted from an investigation concerning drug and firearms trafficking in Carbon and Schuylkill Counties conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.

     The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that today in federal court in Scranton, a man was sentenced for the receipt, distribution, and possession of thousands of images and videos of child pornography.

     Senior United States District Court Judge Edwin M. Kosik sentenced Daniel Albert Mall, age 35, of Scranton, to 151-months of imprisonment followed by a 10-year term of supervised release.  Mall also faces a lifetime sexual offender registration requirement pursuant to the Adam Walsh Act.

     According to U.S. Attorney Peter Smith, the case against Mall stems from an investigation by the Federal Bureau of Investigations and the Lackawanna County District Attorney’s Office – Internet Crimes Against Children Task Force.

     Mall was indicted by a grand jury in July 2012 with committing the offenses between 2001 and 2012.  He was arrested May 2012. Prosecution was handled by Assistant United States Attorney Michelle Olshefski.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania and U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced that charges were brought against the following by a federal grand jury in Harrisburg yesterday:

     Ricardo Hernandez-Del Angel, age 32, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment alleging that Hernandez-Del Angel, an alien convicted on December 20, 2006, of Statutory Sexual Assault in Franklin County, Pennsylvania, and previously arrested and deported from the United States on February 6, 2007, did knowingly and unlawfully reenter the United States. He was located by ERO officers in Franklin County, Pennsylvania.

     If convicted, Hernandez-Del Angel faces a maximum sentence of up to 20 years of imprisonment and a $250,000 fine.

     Victor Peralta-Serrano, age 35, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment alleging that Peralta-Serrano, an alien previously arrested and deported from the United States in July 2007, did knowingly and unlawfully reenter the United States and was apprehended in York County, Pennsylvania.

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

     Juan Calderon-Villanueva, age 29, a native and citizen of El Salvador, in the United States illegally was charged in a one-count indictment alleging that Calderon-Villanueva, an alien, previously arrested and deported from the United States in February 2011, did knowingly and unlawfully reenter the United States and was apprehended in Franklin County, Pennsylvania.

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

     Miguel Salazar-Gomez, age 31, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment alleging that Salazar-Gomez, an alien previously arrested and deported from the United States in February 2006, did knowingly and unlawfully reenter the United States and was apprehended in Adams County, Pennsylvania.

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

     The investigations were conducted by ICE ERO’s Criminal Alien Program in Philadelphia 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 the filing of a criminal information yesterday charging Thomas Ceprish, age 32, and his brother, Simon Ceprish, age 33, both of Wilkes-Barre, Pennsylvania, with distributing cocaine in Luzerne County between January 2008 and April 2013. 

     United States Attorney Peter Smith stated that the charge is the result of an investigation conducted by the Federal Bureau of Investigation; the Pennsylvania Attorney General’s Office; and the Luzerne County District Attorney’s Office.  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 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.

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     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Philadelphia resident pleaded guilty on March 25, 2014 before U.S. District Court Judge Malachy E. Mannion to participating in a drug trafficking conspiracy that distributed heroin during November 2013 to March 2014.

     According to United States Attorney Peter Smith, the defendant, Linda Reyes, age 23, admitted that she conspired with others, including an inmate at the Waymart State Prison, to distribute and possess with intent to distribute more than 100 grams of heroin during a two-month time period.

     Reyes 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.

     Reyes 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.

     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 Hazleton resident was arrested yesterday by federal agents for allegedly participating in a drug trafficking conspiracy that distributed cocaine and crack cocaine from January 2011 to the present.

     According to United States Attorney Peter Smith, a federal grand jury sitting in Scranton indicted Jose Angeles, also known as “Catalino Rivera-Felix” and “Tito,” age 53, in January 2014. The grand jury alleges that Angeles conspired with others to distribute and possess with intent to distribute crack cocaine and powder cocaine in the Hazleton area during a three-year time period.

     The Indictment also alleges that Angeles distributed and possessed with intent to distribute crack cocaine on May 25, 2012; October 19, 2012; September 4, 2013; and October 9, 2013.

     The charges stem from an investigation by special agents and task force officers of the Federal Bureau of Investigation, the Pennsylvania State Police, Hazleton Police and Sugarloaf Police.

     If the defendant is convicted of the charges, he faces up to 20 years in prison and a $1 million fine for each 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 that Ashley Gries, 19, of Shippensburg, Pennsylvania; Danny Guy Forrester, 48, of Shippensburg; Gabriel John Stouffer, 30, of Newburg, Pennsylvania; Michael Anthony DeCarlo, 31, of Shippensburg; and Jeffrey Lynn Wright, Jr., 31, of Shippensburg, have been arrested and arraigned by Chief Magistrate Judge Martin C. Carlson on drug trafficking charges in federal court in Harrisburg today. 

     Gries, Forrester, Stouffer, DeCarlo and Wright were charged by indictment on March 19, 2014 by a grand jury in Harrisburg.  According to U.S. Attorney Peter Smith, the indictment made public today, alleges that the defendants engaged in heroin trafficking in the Franklin and Cumberland County areas from October 2013 through March 2014.  Gries, Forrester, and Stouffer were also charged with drug trafficking offenses that led to the death of 21-year-old Kyle Andrew Golter in Lurgan Township, on February 7, 2014.

     Forrester, DeCarlo and Wright were detained pending trial.  Gries and Stouffer were temporarily detained pending a detention scheduled for April 2, 2014.

     According to the U.S. Attorney’s Office, Franklin County Coroner Jeffrey R. Conner determined that the cause of Mr. Golter’s death was the result of heroin toxicity.  

     “This case was initiated as the result of the heroin overdose death in Franklin County.  Heroin overdoses are an all too common occurrence.  Between 2009 and mid-2013, Franklin County had 5 heroin related overdose deaths, and there were 25 in Cumberland County during the same period,” said Drug Enforcement Administration Special Agent in Charge David G. Dongilli.  “This is due in part to its availability and the fact that it has never been cheaper or more potent.  Heroin doesn’t just kill people; it causes serious health problems, breaks up families, and destroys communities.  DEA will continue to aggressively target traffickers and distributors bringing heroin and other drugs, including highly addictive prescription pain medications, into our communities.”

     Gries, Forrester and Stouffer each face a mandatory minimum of 20 years’ imprisonment and a statutory maximum of life imprisonment for the drug trafficking offenses.  DeCarlo and Wright face a statutory maximum of 40 years’ imprisonment.

     This case is being jointly investigated by the Drug Enforcement Administration, the Shippensburg Police Department, the Pennsylvania State Police, the Cumberland County Drug Task Force, the Cumberland County District Attorney’s Office, the Franklin County District Attorney’s Office and the Office of the Franklin County Coroner.  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 Edwin M. Kosik has sentenced George Abreu, age 32, of New York, New York, to 57 months’ imprisonment for his involvement in a conspiracy to distribute more than 3.5 kilograms of cocaine between 2008 and May 24, 2012.

     According to United States Attorney Peter J. Smith, Abreu’s role in the conspiracy included delivering cocaine in New York City to individuals traveling from Luzerne County to obtain cocaine for distribution in the Pittston area.  FBI Agents arrested Abreu in New York City when he arrived to distribute cocaine to a cooperating witness.

     A federal grand jury sitting in Scranton, Pennsylvania, indicted Abreu on the conspiracy charge on March 12, 2013, and on October 21, 2013, Abreu pleaded guilty to the Indictment.

     In addition to the 57-month term of imprisonment, Judge Kosik also ordered that Abreu be placed on supervised release for a period of three years following the service of his sentence.

     The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’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 a New Jersey resident was indicted by a federal grand jury in Scranton today for trafficking in heroin in Kingston, Pennsylvania, in January 2013.

     According to United States Attorney Peter Smith, the grand jury alleges that George Wormley, age 37, of Montclair, New Jersey, possessed heroin with the intent to distribute it on January 3, 2013.

     The charge stems from an investigation by The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Kingston Police, and the Luzerne County District Attorney’s Office.

     If convicted of the charge, Wormley faces a potential maximum sentence of 20 years in prison and a $1 million 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 20 years imprisonment, a term of supervised release following imprisonment, and a fine of $1 million. 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 Pennsylvania announced the indictment by a federal grand jury in Harrisburg and arrests of three men for distributing crack cocaine, heroin and cocaine in York, Pennsylvania over a seven month period in 2013 and 2014.

     According to United States Attorney Peter Smith, the indictment charges a highly organized and violent drug trafficking scheme centered in York County. Those indicted are:  Marc Hernandez, age 28; Douglas Kelly, age 35; and Roscoe Villega, age 39, all of York, Pennsylvania. 

     The indictment alleges that the defendants used firearms in their drug trafficking activities and distributed them to co-conspirators.

     All three men have been arrested and appeared today before Chief Magistrate Judge Martin C. Carlson in Harrisburg.  Kelly and Villega were detained pending trial.  Hernandez was temporarily detained pending a detention hearing scheduled for March 27, 2014.

     The case is part of a continuing joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department, with the assistance of the York County Drug Task Force.  It is assigned to Assistant United States Attorney Michael A. Consiglio 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 particular case, the maximum penalty under the federal statute is twenty years imprisonment for the defendants and 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 for the Middle District of Pennsylvania announced that today, Chief United States District Court Judge Christopher Conner sentenced a Mechanicsburg doctor, Timothy Clark, age 47 to 15 months imprisonment for health care fraud and pension fraud.

     Clark was also ordered to pay restitution of $130,535.05 and forfeiture of $105,518.46.

     According to United States Attorney Peter Smith, on April 22, 2013, Clark pleaded guilty to two indictments.  In June 2012, Clark was indicted on charges that from July 2010 through December 2011, as the owner of Central Pennsylvania Pulmonary Associates (“CPPA”) and Sleep Disorder Centers of Central Pennsylvania, Clark withheld employee 401(k) contributions and failed to deposit the withheld funds into their 401(k) plan.  Clark’s employees lost approximately $25,000.

     In July 2012, Clark was indicted on charges that from December 2007 through September 2008, Clark who provided critical care services to patients of Holy Spirit Hospital, intentionally inflated the amount of time the health care providers he employed spent with each patient, thereby fraudulently inflating the claims he submitted to Medicare, Highmark, Inc. and Capital Blue Cross.

     The case involving the health care fraud and money laundering was investigated by the Pennsylvania Office of the Attorney General Insurance Fraud Section; the U.S. Department of Health and Human Services Office of Inspector General, the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigations.

     The case involving the employee plan embezzlement was investigated by the U.S. Department of Labor, Office of Inspector General and the U.S. Department of Labor Employee Benefits Security Administration.

     Both cases were prosecuted by Assistant United States Attorney Joseph J. Terz. 

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that the leader of the “Felony Lane Gang” conspiracy was sentenced to 188 months in prison.

     According to the United States Attorney, on March 18, 2014, U.S. District Senior Judge William Caldwell sentenced Travis J. Russ for his leadership role in a car break-in and bank fraud crew that stole over a million dollars in the five years it was in operation. Testimony presented at Russ’s sentencing showed that the crew stole millions of dollars from banks using stolen checks and identification. At the sentencing, Russ was identified as the leader of the group of thieves.  Although they were only caught in the fall of 2012, Russ was implicated in committing this scheme over five years and victimizing over 250 people in the course of his fraud scheme, dubbed the “Felony Lane Gang.”

     The “Felony Lane Gang” is a group of thieves based in Fort Lauderdale, Florida, that travels across the United States stealing identities and checkbooks from unattended cars (“smash and grabs”).  With the stolen checkbooks and driver’s licenses, the gang cashes checks using the drive through lane of banks.  The  lane farthest from video cameras and tellers has been dubbed the “felony lane” because of the ease with which false identities can be used to cash checks.

     In December 2012, a grand jury returned a four-count indictment charging 10 people with conspiracy to commit fraud, bank fraud, wire fraud, and aggravated identity theft. All of those who were charged entered guilty pleas, and the majority of them have been sentenced:

• Travis J. Russ, age 32, of Fort Lauderdale, Florida – identified as the leader and sentenced to 188 months in prison;
• Sylvester Joseph, age 26, of Derrfield, Florida – identified as a leader and pending sentencing;
• Jarrett Hobbs, age 31, of Fort Lauderdale, Florida – identified as a leader and pending sentencing;
• Khiante Thompson, age 20, Florida – sentenced to 14 months in prison;
• Phillip Etienne, age 31, of Margate, Florida – 46 months in prison;
• Willie L. Ogiste, age 35, of Fort Lauderdale, Florida – pending sentencing;
• Teresa L. Brimhall, age 45, of Oakland Park, Florida – 18 months in prison;
• April Ainsworth, age 26, of Richmond, Texas – 36 months in prison;
• Colleen Shelly, age 49, of Lauderdale Lakes, Florida – 11 months in prison; and
• Wendy Snyder-Lucas, age 31, of Fort Lauderdale, Florida – 11 months in prison.

     The 10 persons charged in this indictment struck Pennsylvania from August to October 2012. During that time, they broke into and/or stole the identities of over 100 people. In addition, the group targeted state parks where victims left purses, wallets, and checkbooks in their cars while using the recreation facilities. The “smash and grabs” occurred at approximately 25 different state parks and recreation centers in and around Central Pennsylvania.

     This group used stolen checks and identification to obtain funds from banks and credit unions. According to the indictment, a conspirator, disguised as the account holder, used the drive-through lane at the account holder’s bank, submitted to the teller a forged check with the stolen identification of the victim, and received the funds. Through this process, these conspirators successfully compromised numerous accounts and stole tens of thousands of dollars in funds from the victims.

     This investigation was conducted by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), HSI’s Bulk Cash Smuggling Center, the United States Secret Service, the Pennsylvania State Police, the Federal Bureau of Investigation, the Pennsylvania Department of Conservation and Natural Resources and other state and local investigative agencies. The prosecutor assigned to the case is Assistant United States Attorney Michael A. Consiglio.

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     The United States Attorney's Office for the Middle District Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment today charging David Thomas Macon, Jr., age 23, of Harrisburg, Pennsylvania, with possessing a stolen firearm and possessing a firearm after having been convicted of a felony.

     According to United States Attorney Peter Smith, initially Harrisburg City Police responded to a 911 hang-up call and learned that Macon allegedly had assaulted his former girlfriend.  Allegedly Macon was stopped shortly thereafter and found to be allegedly in possession of a loaded stolen 9 mm semi-automatic handgun, a violation of federal firearms laws.

     The case was investigated by the Harrisburg City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of a coordinated effort to prosecute violent crime in Harrisburg involving firearms.

     Prosecution is assigned to Assistant United States Attorney Daryl Bloom.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Malachy E. Mannion sentenced Daniel Ortiz, age 28, of Watertown, New York, to 80 months’ imprisonment for his involvement in four robberies of convenience stores in April and May 2011.

     According to United States Attorney Peter J. Smith, Ortiz previously pleaded guilty in federal court to robbing (1) the Hilltop Sunoco / Extra Mart located at 238 State Route 6, Milford, Pennsylvania on April 6, 2011; and (2) the Turkey Hill Minit Market, 912 Pennsylvania Avenue, Matamoras, Pennsylvania, on April 11, 2011; (3) the Hilltop Sunoco / Extra Mart located at 238 State Route 6, Milford, Pennsylvania on April 17, 2011; and (4) the Turkey Hill Minit Market, 912 Pennsylvania Avenue, Matamoras, Pennsylvania, on May 5, 2011.  In doing so, Ortiz brandished weapons to instill fear to facilitate the robberies.  Judge Mannion ordered that Ortiz be placed on supervised release for three years following the service of his 80-month prison sentence.  

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

     The United States Attorney’s Office for Middle District of Pennsylvania announced that today a federal grand jury in Scranton indicted Leroy J. Pelicci and his wife, Ann Pelicci, for an alleged conspiracy to evade federal currency transaction reporting requirements by structuring a series of specific cash transactions at several Northeast Pennsylvania banks between 2011 and 2013.

     According to United States Attorney Peter Smith, Pelicci, a physician and owner/operator of the “Pelicci Pain Relief Center” in Scranton and his wife Ann Pelicci, an alleged employee of the Pain Relief Center, conspired to violate the federal law that requires reporting of suspicious currency transactions.  The indictment alleges that the Peliccis withdrew approximately $431,500 in cash from accounts at four Scranton area banks, Fidelity Bank, Citizens Bank, Penn Security Bank and FNCB, in 49 separate transactions, totaling $431,500, most of which were in $9,000 amounts, “just below” the amount that would trigger the reporting requirement, between January and July 2012.

     According to the United States Attorney’s Office, the alleged crime is “structuring,” the conducting of transactions in currency at one or more financial institutions for the purpose of evading federal currency transaction reporting requirements.  Banking institutions are required to file currency transaction reports (CTRs) with the Internal Revenue Service for each deposit, withdrawal or exchange of currency or other payment that involves currency of more than $10,000.  The law also prohibits evading or attempting to evade the reporting requirements or attempting to cause banks to fail to file CTRs.

     For more information on structuring and currency transaction reporting requirements, see attachment.

     The indictment alleges that the Peliccis began transferring funds from a Fidelity Investment account after the patient and billing records of the Pelicci Pain Relief Center became the subject of an inquiry by agencies of the Commonwealth of Pennsylvania.  The defendants allegedly opened multiple bank accounts individually in the name of Ann Pelicci and moved large amounts of cash from the investment account into those individual accounts.  Beginning in January 2012, the defendants allegedly began withdrawing cash, mostly in amounts of $9,000, from the individual accounts at the four banks listed above.

     In addition to the conspiracy charge, the indictment charges the Peliccis with 49 counts based on each of the alleged cash withdrawal transaction and an additional 49 counts alleging that the defendants’ activities “knowingly caused and attempted to cause, the banks to fail to file the required CTRs.”

     The maximum criminal penalty provided for structuring transactions to evade CTR reporting requirements is imprisonment of not more than five years and a fine of $250,000.  If the structuring involves more than $100,000 in a 12 month period, as is alleged in this case, the penalty is increased to a maximum of 10 years imprisonment and a fine of $500,000.  The indictment also includes a count alleging that the $431,500 total amount of the currency involved in the structuring is subject to forfeiture to the United States plus “all property real or personal, involved in the offense, and all property traceable to such property.”

     The investigation is being conducted by the Scranton office of the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorney Michelle Olshefski with the assistance of the United States Attorney’s Office’s Victim Rights and Asset Recovery Unit.

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     Peter J. Smith, United States Attorney for the Middle District of Pennsylvania, announced today that an Indictment has been returned against Omari Lowery, age 27, Bronx, New York.

     A Grand Jury convened in Scranton returned the 10 Count Indictment charging Lowery with Conspiracy, Aggravated Identity Theft, Access Device Fraud, and Fraud in Connection with Identification Documents.  The Indictment alleges that beginning in August 2013 and continuing through February 2014, the defendant conspired to obtain and use multiple means of identification belonging to others for the purpose of fraudulently obtaining goods, services, cash, and other things of value in the Middle District of Pennsylvania and elsewhere. 

     Lowery faces a statutory maximum 78 years imprisonment and fines in the amount of $2,500,000.  Lowery is currently in custody at the Lackawanna County Prison.

     This case is being investigated by the Pocono Mountain Regional Police and 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.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 42-year-old Clarks Summit man pleaded guilty yesterday before Senior U.S. District Court Judge James M. Munley to posting a threat to kill the President of the United States on the White House website.

     According to United States Attorney Peter J. Smith, the defendant Nicholas Savino admitted to sending a threat on August 16, 2013, that read: “President Obama the Anti-Christ. As a result of breaking the constitution you will stand down or be shot dead.”

     Savino was indicted by a federal grand jury in September 2013, as a result of an investigation by the United States Secret Service and Clarks Summit Police.     

     Under the terms of the plea agreement, Savino will forfeit to the United States three firearms and approximately 11,000 rounds of ammunition seized by agents from his apartment and vehicle during the investigation.

     Judge Munley scheduled sentencing for June 11, 2014. Savino remains detained in prison pending sentencing. He faces up to five years in prison and a $250,000 fine.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Clarks Summit man was indicted today by a federal grand jury in Scranton on charges of producing child pornography and online enticement of a minor.

     According to United States Attorney Peter J. Smith, the grand jury alleges that Taylor Bzdyr, age 20, used a computer and a cell phone to persuade a 13-year-old female to engage in sexual acts which were transmitted live via Skype. The indictment alleges that Bzdry engaged in such conduct between October 2012 and March 5, 2014.

     The charges stem from an investigation by the Federal Bureau of Investigation, Border Patrol Agents in California, and the New Westminster Police Department in British Columbia, Canada.

     If convicted, Bzdyr 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 child pornography charge; and faces a 10-year mandatory minimum sentence and a possible life sentence if he is convicted of online enticement of a minor.

     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.

     The United States Attorney's Office for the Middle District of Pennsylvania, announced that Anthony Moore, age 31, of Hanover Township, Pennsylvania, was sentenced by U.S. District Court Judge Robert D. Mariani today in Scranton to 130 months’ incarceration to be followed by a four-year term of supervised release, for distribution of crack cocaine. 

     Moore was indicted in January 2013 for illegal distribution of heroin, cocaine base (crack) involving 500 grams or more of cocaine.  He pled guilty in October 2013 pursuant to a plea agreement.

     The investigation was conducted by the DEA.  The case was prosecuted by Assistant United States Attorney Todd K. Hinkley.

     ****

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has filed a criminal information charging possession of a weapon by an inmate today in federal court in Williamsport.

     According to United States Attorney Peter J. Smith, Paul Hernandez, age 42, an inmate at the United States Penitentiary-Allenwood, was charged with possession of a weapon.  The weapon was discovered by corrections’ officers during a routine search of Hernandez on December 2, 2013.

     At the same time the criminal Information was filed, the U.S. Attorney’s Office filed a plea agreement which is subject to the approval of the court.

     The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney William Simmers.

     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, announced the guilty plea of a West Pittston man for his role in a conspiracy to distribute “bath salts”.

     According to United States Attorney Peter J. Smith, Todd Morgans, age 34, pled guilty to conspiring with others to distribute alpha-pyrrolidinopentiophenone (A-PVP), an analogue of methylenedioxypyrovalerone (MDPV) before U.S. District Judge Malachy Mannion in federal court yesterday.  A-PVP is a synthetic cathinone which is included in a family of abused drugs commonly known as “bath salts”. 

     A controlled substance analogue is a drug which has not been scheduled under The Controlled Substances Act but shares a substantially similar chemical structure as a scheduled drug and has a substantially similar stimulant or hallucinogenic effect on a person’s central nervous system.  Additionally, the government must also establish that drug was distributed for human consumption.  The Controlled Substances Act provides that controlled substance analogues shall be treated as if the substance were the scheduled drug for prosecution and sentencing purposes.

     U.S. Attorney Smith noted that the plea agreement provides that the defendant will accept the United States Sentencing Guidelines enhancement that is applicable when the death or seriously bodily injury of another results from the use of the controlled substance.  The investigation surrounding the death of Jason Folweiler remains ongoing.

     Morgans has agreed to forfeit an automobile, the contents of his bank account, $40,000 in currency seized from the defendant’s home and a silver bar.

     This investigation was conducted by the Department of Homeland Security-Homeland Security Investigations, the Pennsylvania State Police and the West Pittston Police Department and is being prosecuted by Assistant United States Attorney Amy C. Phillips.

     The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Christopher A. Engel, 34, Glen Rock, Pennsylvania, was charged with wire fraud in connection with his operation of Pinnacle Forex Group ("PFG"), LLC, a currency trading firm that he operated from his home.  A plea agreement was also filed indicating that Engel intends to plead guilty when he appears for his arraignment in federal court.  Engel faces up to twenty years' imprisonment, restitution, and fines, if convicted.

     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").  The charges filed today indicate that Engel 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 simply used by Engel for personal expenses.

     The case was investigated by the FBI 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 20 years imprisonment, a term of supervised release following imprisonment, and a fine of over $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 that today, Senior U.S. District Court Judge Sylvia H. Rambo today sentenced David R. Dodd, II, age 45, of Mechanicsburg, Pennsylvania, to 87 months imprisonment for misappropriation of federal funds and money laundering.

     Dodd was also ordered to pay restitution totally approximately $21 million to suppliers, sub-contractors, Metro Bank, the City of Harrisburg and Dauphin County.

     Assistant U.S. Attorney William A. Behe told the Court that Dodd’s conduct reflected far more than bad judgment.  It contained false statements, hidden conflicts of interest and repeated deceptive acts.  Senior Judge Rambo agreed to the Government’s request that Dodd be taken into custody by U.S. Marshals immediately after the sentencing.

     According to United States Attorney Peter Smith, Dodd pleaded guilty in November 2011.  He was charged in two separate indictments returned by federal grand juries in June 2010 and January 2011, both involving fraudulent real estate and business deals associated with the Capital View Commerce Center (CVCC), a failed construction project in Harrisburg.

     Dodd utilized a business he owned known as Industrial Design and Construction, Inc. (IDC) as part of the Capital View Commerce Center (CVCC) project to purchase pre-cast concrete forms for use in the construction of the building.

     Dodd concealed his own personal interest in IDC in violation of federal conflict of interest requirements and, through that concealment, wrongfully obtained over one million dollars of funds from HUD through programs administered by the City of Harrisburg and Dauphin County. These funds were placed into a brokerage account at Dodd’s direction to conceal the existence and ownership of the misappropriated funds.

     Dodd was also paid $860,454 in HUD funds through programs administered by the City of Harrisburg and Dauphin County to pay contractors who performed and completed work on the CVCC project. Although Dodd, through his business Cameron Real Estate, LP, received that money, Dodd kept the money and did not pay the contractors as he was obligated to do.

     After five days of hearings to establish the amount of the loss resulting from Dodd’s conduct, Judge Rambo filed a 37-page opinion on October 15, 2013 awarding $20,943,635.13 in restitution as follows: H&R Mechanical, $1,255,468.62
Weaver Glass, $594,890.00
Stone Fire Protection, $308,755.40
Scheadler Yesco, $390,767.05
Stewart-Amos Steel, $622,146.52
Ciesco, $118,218.11
Macri Concrete, $323,057.70
H.W. Nauman, $31,672.47
Herre Brothers, Inc., $1,265,237.50
Metro Bank, $9,489,864.88
Dauphin County, $2,752,450.64
City of Harrisburg, $3,512,777.70 and $308,328.54

     Victims’ statements were read into the record of the sentencing hearing by the former owner of Herre Brothers, a contractor that went out of business as a result of Dodd’s conduct, and the City of Harrisburg. 

     Judge Rambo concluded that Dodd was responsible for the projects demise and the loss to the contractors.

     As part of the plea agreement with the Government, Dodd agreed to forfeit to the Government $1,151,037 seized from Wells Fargo brokerage accounts, a 2008 BMW X5 vehicle, a 2008 Mercedes Benz and $58,041 in cash.

     The joint investigation was conducted by the HUD’s Office of Inspector General, Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation and the Dauphin County District Attorney’s Office.  The case was prosecuted by Assistant United States Attorney William A. Behe. Support was provided by the U.S. Attorney’s Office Victim Rights and Asset Recovery Unit.

****

     The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of an Indictment in U.S. District Court in Harrisburg today charging Donald Jackson, Jr. age 28, of Harrisburg, Pennsylvania, with possessing with the intent to distribute crack cocaine.

     The investigation was conducted by the Harrisburg Police Department and the FBI.  The case is being prosecuted by Assistant U.S. Attorney Joseph J. Terz.

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

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today the sentencing of a former employee of the Bon-Ton Stores Foundation for mail fraud and tax evasion in connection with the theft of more than $1.3 million.  Christine S. DeJuliis, 53, of York, Pennsylvania, was sentenced to serve five years in federal prison for stealing from the Bon-Ton Stores Foundation and failing to pay taxes on the money she stole.

     United States Attorney Peter J. Smith said that DeJuliis was sentenced to the term of incarceration by U.S. District Court Judge Yvette Kane in Harrisburg.  DeJuliis had previously pleaded guilty to mail fraud charges involving a scheme she devised to steal money from the Foundation while she was employed as an assistant to the head of the Foundation and to tax evasion charges for failing to pay taxes on the money she stole.  The judge noted that DeJuliis had been placed in a position of significant trust by the Foundation and that she violated that trust over the course of her nine-year crime.

     Assistant U.S. Attorney James T. Clancy noted that the community work DeJuliis was seeking credit for performing was the very kind of work the Foundation would have been funding others to do if she had not stolen the Foundation’s money.  Clancy also noted that although DeJuliis spoke of being sorry for committing the crime and vowed to pay restitution, she has not yet paid back any money to the Foundation.

     In addition to spending five years in federal prison, she will be on supervised release – a form of probation – for three years after her release from custody.  Judge Kane also ordered that DeJuliis make restitution to the Foundation and the Bon-Ton Stores, Inc., in the amount of $1,376,885 and to the IRS in the amount of $170,890.

     The Bon-Ton Stores, Inc. and the Bon-Ton Stores Foundation cooperated with the investigation and prosecution of the case.  The investigation was conducted by the U.S. Secret Service and Internal Revenue Service-Criminal Investigation.

     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 today that charges have been brought against the following:

     Martin Perez-Gomez, age 30, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment by a federal grand jury in Harrisburg today.  The indictment alleges that Perez-Gomez, an alien who has previously been arrested and deported from the United States in June 2008, did knowingly and unlawfully reenter the United States and was apprehended in Adams County, Pennsylvania.

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

     Dario Cruz-Reyes, age 35, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment by a federal grand jury in Harrisburg today.  The indictment alleges that Cruz-Reyes, an alien who has previously been arrested and deported from the United States in August 2009, did knowingly and unlawfully reenter the United States and was apprehended in Cumberland County, Pennsylvania.

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

     The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement 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 William H. Klein, age 47, was sentenced today after pleading guilty to Interstate Communication with Threat to Injure charge.

     According to United States Attorney Peter J. Smith, on July 5, 2013, Hershey Entertainment and Resorts received a call at approximately 9:52 p.m. in which a male caller stated, “If One Direction plays tomorrow, the stadium will blow up.”  The stadium was placed on lockdown before the concert, a bomb sweep was performed and a bag check was performed on all patrons coming into the stadium.

     The call was made from a New Jersey number.  Further investigation determined that the number is assigned to a pay phone outside of a 7-Eleven convenience store located in Northfield, New Jersey.  Through video surveillance the caller was positively identified as William H. Klein.

     On February 25, 2014, the United States District Judge Yvette Kane sentenced Klein to eight months’ imprisonment followed by two years of supervised release with two months to be served on home detention with electronic monitoring.

     The United States Attorney’s Office and the Federal Bureau of Investigation stands in close partnership with the local law enforcement community to identify, thoroughly investigate, and prosecute such criminal conduct.

     This case was investigated by the Federal Bureau of Investigation and the Derry Township Police Department. Prosecution was handled by Assistant United States Attorney Daryl F. Bloom.

     The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Sandra R. Powers, 57, Harrisburg, Pennsylvania, was charged in a criminal Information with bank larceny involving $125,815.00.  A plea agreement was also filed indicating that Powers intends to plead guilty when she appears in federal court for her arraignment.  She faces up to ten years' imprisonment and $250,000 in fines as a result of the charges.

     According to U.S. Attorney Peter J. Smith, Powers was employed as a branch manager for Integrity Bank's Allentown Boulevard and Colonial Road branches located in Harrisburg, Pennsylvania.  The charges filed today indicate that Powers stole $125,815.00 from a customer's account between May 2012 and March 2013.  Powers was terminated by Integrity Bank in March 2013 and subsequently made full restitution to the bank.

     The case was investigated by the FDIC Office of Inspector General and the FBI 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 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.

* * * *

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Kingston resident pleaded guilty today before U.S. District Court Judge Robert D. Mariani to distributing heroin and cocaine during a four-year period.

     According to United States Attorney Peter J. Smith, the defendant, James Featherstone, age 33, admitted to distributing cocaine and heroin on multiple occasions in Luzerne County during January 2009 through September 2013.

     The charge against Featherstone resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Pennsylvania State Police, Kingston Police, and the Luzerne County District Attorney’s Office.

     Featherstone faces a potential maximum sentence of 20 years in prison and a $1 million fine.

     According to the terms of the plea agreement filed in the case, the government and the defendant will recommend that Featherstone be sentenced to between 163 months and 188 months in prison. Sentencing will occur in May 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 that a Harrisburg man described as a danger to the community was sentenced today by a federal judge to a long prison term for conspiracy and distribution of cocaine and crack.

     According to United States Attorney Peter J. Smith, Senior United States District Judge William Caldwell sentenced Dawan Maynard, age 41, of Harrisburg, to 25 years in prison. Judge Caldwell noted that Maynard’s criminal history including violence and firearms demonstrated his danger to the community. Furthermore, Maynard’s extensive prior periods of incarceration had failed to deter him from reengaging in criminal conduct. Maynard has prior convictions for robbery and attempted murder. 

     On September 12, 2013, Judge Caldwell sentenced co-defendant Michael Morris, age 46, of Harrisburg to 262 months in prison. At that sentencing proceeding, Judge Caldwell noted Morris’s three prior drug trafficking convictions. Both Maynard and Morris were convicted by a jury in April 2013.

     The three-year investigation into the activities of Dawan Maynard was spearheaded by the Drug Enforcement Administration in conjunction with Dauphin County Drug Task Force.  The indictment charged Maynard and his co-conspirator with using threats of violence and intimidation to acquire cocaine from other area drug traffickers. 

     The U.S. Attorney’s Office publicly acknowledged and thanked the law enforcement agencies who assisted in this investigation and successful prosecution, including the Dauphin County Criminal Investigation Division, Middletown Bureau Police Department, Lower Paxton Township Police Department, the Harrisburg Bureau of Police, and the Pennsylvania State Police. The case was prosecuted by Assistant United States Attorney Michael Consiglio.

* * * *

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 26-year-old New Jersey resident who worked at a GM Foodmart store in Kingston, Pennsylvania, pleaded guilty today to conspiracy to distribute synthetic marijuana before Senior U.S. District Court Judge Edwin M. Kosik.

     According to United States Attorney Peter J. Smith, the defendant, Manjinder Singh, also known as “Mintu,” admitted that he conspired with others to distribute synthetic marijuana from the store during January 2012 through July 2012.  

     The charge against Singh resulted from an investigation by the IRS Criminal Investigative Division, the Drug Enforcement Administration, and the Pennsylvania State Police.

     Singh faces up to 20 years in prison and a $1 million fine. No date for sentencing was scheduled.

     The owner of the GM Foodmart store, Mastan Mathan, previously pleaded guilty to participating in a money laundering conspiracy connected to the sale of synthetic marijuana. He is waiting 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 announced today that David H. Scanlan III, a former physician-in-training in pediatric oncology at Penn State Hershey Medical Center, pleaded guilty to child pornography distribution charges today in U.S. District Court in Harrisburg.  Scanlan was charged last week in a one-count criminal Information.

     The plea was entered in open court before U.S. District Judge John E. Jones III in Harrisburg.  Judge Jones accepted the plea, adjudicated Scanlan guilty of the charge, and ordered a Presentence Report.

     Judge Jones told Scanlan that the plea agreement made between him and the Government is not binding on the court, and that he can sentence Scanlan up to the maximum of 20 years in federal prison.

     Scanlan was released pending sentencing, but was ordered that he be confined to his residence in Virginia under electronic monitoring by the U.S. Probation Office, except for approved absences such as employment and medical appointments.

     Judge Jones warned Scanlan that any deviation from the conditions of release would be reported to him immediately and subject Scanlan to severe consequences.  Sentencing likely will take place this summer.

     The case was investigation by the Internet Crimes Against Children Task Force, the Pennsylvania State Police, and Homeland Security Investigations.  The case is being prosecuted by Assistant United States Attorney James T. Clancy.

     The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that a federal jury in Harrisburg returned a verdict today finding a New York man guilty of conspiracy to traffic drugs and trafficking drugs.

     According to United States Attorney Peter J. Smith, Maurice Henderson, 33, who resided in both New York and Harrisburg, was convicted of criminal conspiracy to distribute and possess with intent to distribute five kilograms and more of cocaine hydrochloride and 280 grams or more of crack cocaine and distribution and possession with intent to distribute the same drugs.  The jury found him not guilty of possessing a firearm in furtherance of drug trafficking.  The verdict was returned following a week-long jury trial before U.S. District Court Judge John E. Jones, III.

     Evidence presented during trial established that Henderson sold crack cocaine to an individual working with the Dauphin County Drug Task Force twice and also sold crack cocaine to an undercover police officer on two occasions.  Witnesses testified that over a two-year period, Henderson and his co-conspirators made frequent trips from Harrisburg to a neighborhood in New York to purchase multiple kilogram quantities of cocaine hydrochloride, using rental cars and drivers to make the trips. Upon their return to Harrisburg, members of the conspiracy cooked the bulk of the cocaine hydrochloride into “crack” cocaine, weighed it, packaged it into smaller quantities and distributed to drug dealers in the Harrisburg area.   

     Co-conspirators Juval Green, 34, Robert Reynoso, 35, Derrice Sassaman, 39, and Annalyn Black, 26, all previously pleaded guilty to a drug trafficking conspiracy and are awaiting sentencing.  Prior to jury selection in Henderson’s case, the government filed a notice stating that because Henderson has at least two prior felony drug convictions, he is subject a mandatory 20 years’ imprisonment.

     The investigation that led to Henderson’s arrest and conviction was part of a larger investigation targeting crack cocaine dealing in the 14th and Swatara Street area in Harrisburg.

     The case was investigated by the Drug Enforcement Administration, the Dauphin County Criminal Investigative Division, the Dauphin County Drug Task Force, Lower Paxton Township Police, Susquehanna Township Police, the U.S. Marshal’s Service, Pennsylvania State Police, and Harrisburg Police.  It was prosecuted by Assistant U.S. Attorney Christy H. Fawcett. 

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that two former Edwardsville residents were arrested today by federal and state law enforcement officers on charges involving the sex trafficking and prostitution of a minor and weapons offenses.

     According to United States Attorney Peter J. Smith, on January 21, 2014, a federal grand jury in Scranton indicted Travis Humphrey, a/k/a “GT,” age 26, and Kyoni Humphrey a/k/a “Kyoni Nieves,” age 24, for conspiring to force a minor female to engage in prostitution and illegal sexual activity during May 15, 2013, to June 3, 2013.

     The indictment alleges that the defendants used a cell phone to post advertisements for “escort services” involving the minor female on the backpage.com website in Pennsylvania and New Jersey, and transported the minor in interstate commerce from Pennsylvania to New Jersey and New York to engage in illegal sexual activity and prostitution.  

     Both defendants are charged, allegedly, as principal or aiders and abettors, with Conspiracy to Commit Sex Trafficking of Children by Force and Coercion; Sex Trafficking of Children by Force and Coercion; Conspiracy to Transport a Minor in Interstate Commerce with Intent to Engage in Criminal Sexual Activity; Transporting a Minor in Interstate Commerce with Intent to Engage in Criminal Sexual Activity; Persuading, Enticing and Coercing a Minor to Travel in Interstate Commerce to Engage in Prostitution; and Transporting a Person in Interstate Commerce to Engage in Prostitution.

     Both defendants are charged with Carrying and Possessing a Firearm in Furtherance of a Crime of Violence. Travis Humphrey is charged with Possessing a Firearm as a Convicted Felon. Kyoni Humphrey is charged with Making False Statements During the Purchase of a Firearm.  

     The charges stem from an investigation by the Department of Homeland Security, the Pennsylvania State Police and the Luzerne County District Attorney’s Office.

     Sex trafficking of children by force and coercion is punishable by a mandatory minimum sentence of 15 years in prison and a possible maximum sentence of life in prison. The carrying and possessing a firearm in connection with a crime of violence charge is punishable by a mandatory minimum sentence of five years in prison and a possible maximum sentence of life in prison, and that sentence must run consecutive to any other sentence imposed.  The other charges contain maximum sentences of from 10 to 20 years imprisonment.

     Both defendants are scheduled to appear before U.S. Magistrate Judge Karoline Mehalchick this afternoon at the federal courthouse in Wilkes-Barre.

     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.

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

****

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that criminal charges have been filed in U.S. District Court in Williamsport against Derl Knarr of Herndon, Pennsylvania.

     According to United States Attorney Peter J. Smith, Knarr, age 55, is charged in a one-count felony Information with stealing insurance funds while he worked for Allstate Financial Services.  The thefts are alleged to have occurred between 2006 and 2012, and total over $630,000.

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

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

     A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing 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 of over $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 that Carl E. Murphy, Jr., a 33 year old resident of Harrisburg, PA, was sentenced yesterday by Senior U.S. District Court Judge Sylvia H. Rambo, following Murphy’s guilty plea to Possession of a Firearm by a Convicted Felon. 

     On August 29, 2013, Murphy pled guilty to possessing a loaded firearm in Harrisburg on March 7, 2012 and on October 13, 2012.  Murphy has multiple prior felony convictions making him ineligible to possess a firearm.

     According to United States Attorney Peter J. Smith, Judge Rambo sentenced Murphy to 108 months (9 years) incarceration to be followed by three years of supervised release and a fine of $500 for the firearms conviction. 

     This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Harrisburg Police Bureau and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.

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     The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that child pornography distribution charges were filed against David H. Scanlan III.  Scanlan, 38, of Harrisburg, was charged with one count of distribution of child pornography in a criminal Information filed today in U.S. District Court in Harrisburg.

     According to U.S. Attorney Peter Smith, Scanlan is charged with distributing child pornography over the internet between May and June 2011.  The charges stem from an investigation by the Internet Crimes Against Children Task Force, Pennsylvania State Police, and U.S. Department of Homeland Security, Homeland Security Investigations.  At the time of the offense, Scanlan was a physician specializing in pediatric oncology.  He has surrendered his medical license.  

     Along with the Information, a plea agreement was filed in which Scanlan agrees to plead guilty to the child pornography distribution charge.  The plea agreement must be approved by the court.  Scanlan faces a minimum of five and a maximum of 20 years in prison and a $250,000 fine, Smith said.

     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 was investigation by the Internet Crimes Against Children Task Force, the Pennsylvania State Police, and Homeland Security Investigations.  The case is being prosecuted by Assistant United States Attorney James T. Clancy.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 39-year-old former Luzerne Borough resident who admitted to receiving and distributing child pornography during 2012 through June 2013, was sentenced today to serve 15 years in prison by U.S. District Court Judge Malachy E. Mannion.

     According to United States Attorney Peter J. Smith, the defendant, Michael Shaw, pleaded guilty to the crime on October 23, 2013.

      Shaw was indicted by a federal grand jury in September 2013, for using a computer to receive and distribute child pornography.

     The charge against Shaw resulted from an investigation by the Federal Bureau of Investigation, Lackawanna County Detectives and the Luzerne County District Attorney’s Office.

     Judge Mannion also ordered that Shaw be placed on supervised release for 10 years following his prison sentence. Shaw must also receive sex offender treatment and abide by sex offender registration requirements after his release from prison.

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

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

     The United States Attorney's Office for the Middle District of Pennsylvania announced that a 35-year-old Wilkes-Barre resident pleaded guilty today in Wilkes-Barre before U.S. Magistrate Judge Karoline Mehalchick to a criminal information charging her with tampering with a consumer product that affected interstate commerce.

     According to United States Attorney Peter J. Smith, the defendant, Yolanda Holman, of Wilkes-Barre, admitted that she knowingly and intentionally tainted a bottle of non-prescription children’s pain reliever with prescription pills and other medication and caused it to be taken to a retail store in Wilkes-Barre as a returned item on or about August 23, 2013.

     U.S. Attorney Smith stated that suspected tainted containers related to this incident were recovered and were in the possession of law enforcement officers or otherwise destroyed. The tainted containers present no danger to the public.

     The criminal information and a plea agreement were filed on December 19, 2013.      

     The investigation was conducted by agents of the Federal Bureau of Investigation – Scranton Resident Office.  Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

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

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

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     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Hazleton resident was indicted by a federal grand jury in Scranton on January 28, 2014 for participating in a drug trafficking conspiracy that distributed heroin and cocaine during July through October of 2013.

     According to United States Attorney Peter J. Smith, the grand jury alleges that Willy Perez, age 36, conspired with others to distribute and possess with intent to distribute heroin and cocaine in the Hazleton and Scranton areas during a four-month time period.

     The Indictment alleges that Perez and his co-conspirators arranged to obtain heroin and cocaine in New York City and distributed the drugs in the Hazleton and Scranton areas of northeastern Pennsylvania. The indictment alleges that Perez and his associates communicated with each other and drug customers by cell phones. Perez is also charged with possessing heroin with the intent to distribute it on October 24, 2013.

     The charges stem from an investigation by special agents and task force officers of the Federal Bureau of Investigation, Scranton Police, and detectives from the Lackawanna County District Attorney’s Office.

     If the defendant is convicted of the charges, he faces up to 20 years in prison and a $1 million fine for each 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 that it has charged a 26-year-old New Jersey resident who worked at a GM Foodmart store in Kingston, Pennsylvania, with conspiracy to distribute synthetic marijuana.

     According to United States Attorney Peter J. Smith, his office filed a criminal Information in U.S. District Court in Scranton today against Manjinder Singh, charging him with participating in a conspiracy to sell synthetic marijuana from the store during January 2012 and July 2012.

     The Information alleges that Singh and/or his co-conspirators obtained synthetic marijuana from out-of-state suppliers and sold synthetic marijuana to customers from the GM Foodmart Store in Forty Fort. It further alleges that Singh distributed synthetic marijuana to others on six occasions.

     The charge against Singh resulted from an investigation by the IRS Criminal Investigative Division, the Drug Enforcement Administration, and the Pennsylvania State Police. Mastan Mathan, the owner and operator of the store, recently pleaded guilty to a money laundering conspiracy involving proceeds from the sale of synthetic marijuana.

     If convicted of the charge, Singh faces up to 20 years in prison and a $1 million fine.

     A plea agreement was also filed in the case.

     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 that the Third Circuit Court of Appeals today affirmed the sentence of life imprisonment imposed by Senior U.S. District Court Judge James M. Munley on Krishna Mote for his participation in a drug trafficking conspiracy that was responsible for distributing large amounts of crack cocaine in the Lehighton area of Northeastern Pennsylvania between 2005 and 2007.

     According to United States Attorney Peter J. Smith, Mote, age 44 who resided in the Allentown-Bethlehem area during the time of the conspiracy, was convicted by a jury after a three-day trial in December 2012.  The jury returned guilty verdicts on both drug-related charges in the indictment.

     Mote was indicted by a federal grand jury in June 2011, as a result of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.

     In upholding the jury’s verdict, the Court rejected Mote’s claims that the indictment was duplicitous and the evidence proved two conspiracies instead of a single conspiracy. The Court noted that Mote engaged in the drug trafficking enterprise “with the same individuals during most of the period in question, and worked with a number of people who had an overlapping involvement over the entire time span” of the drug conspiracy. The Court concluded that there was “overwhelming evidence at trial” that Mote conspired with others to distribute more than 280 grams of crack cocaine.

     In affirming the sentence, the Court explained that “with three prior felony drug convictions, the District Court properly sentenced [Mote] to a mandated life imprisonment.”

     Assistant United States Attorney Francis P. Sempa prosecuted the case and handled the appeal for the government.

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     The United States Attorney's Office for the Middle District of Pennsylvania announced today that on January 29, 2014 it filed a motion in United States District Court in Scranton seeking a hearing regarding the modification of the plea agreement between the government and Mericle and to determine whether the defendant has breached the plea agreement.

     Senior United States District Court Judge Edwin M. Kosik has scheduled Mericle’s sentencing for February 26, 2014.

     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 Kirk Robinson, age 45, of Wilkes-Barre, Pennsylvania, to 18 years’ imprisonment for his involvement in two Luzerne County jewelry store robberies, a bank robbery, as well as an insurance fraud scheme. 

     According to United States Attorney Peter J. Smith, Robinson pleaded guilty in federal court on October 24, 2013, to conspiring with others to carry firearms in relation to the robbery of Steve Hydock Diamonds Jewelry store, Kingston, Pennsylvania, on May 5, 2008, and Dunay Jewelry store, Wilkes-Barre, Pennsylvania, on May 14, 2008. He also pleaded guilty to the armed bank robbery of the M&T Bank, Hanover Township, occurring on October 30, 2010.  At his guilty plea, Robinson admitted that he planned and acted as a getaway driver in those three robberies.  Additionally, Robinson pleaded guilty to using the mail in a scheme to defraud an insurance company of $43,000.  Robinson admitted that the scheme involved staging a robbery with a confederate and filing a police report wherein he falsely claimed an armed robber stole jewelry from him.

     Judge Munley ordered that Robinson be placed on supervised release for three years following the service of his 18-year prison sentence.  In addition, Judge Munley ordered that Robinson pay restitution in the amount of $150,728 representing the value of money and jewelry stolen during the robberies and fraud scheme.

     The case was investigated by the Federal Bureau of Investigation, the Kingston Police Department, the Hanover Township Police, and the Wilkes-Barre Police Department. Assistant United States Attorney John C. Gurganus, Jr. prosecuted the case.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today in U.S. District Court in Scranton charging a Kingston resident with distributing heroin and cocaine during a four-year time period.

     According to United States Attorney Peter J. Smith, the Information alleges that James Featherstone, age 33, distributed cocaine and heroin in Luzerne County from January 2009 through September 2013.

     A plea agreement was filed along with the Information.

     The charge stems from an investigation by The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Pennsylvania State Police, Kingston Police, and the Luzerne County District Attorney’s Office.

     Featherstone faces a potential maximum sentence of 20 years in prison and a $1 million fine.

     According to the terms of the plea agreement filed in the case, Featherstone has agreed to plead guilty to the charge, and the government and the defendant will recommend that Featherstone be sentenced to between 163 months and 188 months in prison.

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

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

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

     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.

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     Peter J. Smith, United States Attorney for the Middle District of Pennsylvania, announced that the former leader of a large group of corrupt, Canadian based MoneyGram Agents has been resentenced to a lengthy term of incarceration for helping to defraud thousands of American citizens out of $4 million between January 2004 and April 2009.

     JAMES E. UGOH, age 51, of Toronto, Ontario, was re-sentenced by U.S. District Court Judge Sylvia Rambo in Harrisburg  yesterday afternoon to 151 months (12.6 years) incarceration.   UGOH had been previously sentenced by Judge Rambo to 118 months incarceration in 2012.

     In October of 2009 UGOH and three other Toronto area MoneyGram agents, KAYODE KASSIM, age 45, ABEL ONGUNFUNWA, age 51, and FELIX MORDI, age 45 , were indicted on multiple charges by a Middle District of PA grand jury.  After an 18-month process, the four defendants were eventually extradited to Harrisburg where they pleaded guilty to Conspiracy to commit Mail Fraud, Wire Fraud, and Money Laundering.  In 2012 the 4 were sentenced by Judge Rambo to the following terms of incarceration:

Mordi – 53 months
Ogunfunwa  –  63 months
Kassim – 80 months
Ugoh – 118 months

     After the sentences were imposed, the government appealed to the U.S. Court of Appeals for the Third Circuit, arguing the district court erred in calculating their advisory sentencing guideline ranges.  Last year the Third Circuit agreed with the government and remanded the 4 cases back to Judge Rambo for resentencing.

     Thus far, only UGOH and KASSIM have been resentenced.  KASSIM was resentenced in December of last year to 109 months incarceration. MORDI is scheduled to be resentenced on February 13, 2014.  No date has yet been scheduled for OGUNFUNWA’s resentencing.

     Between 2004 and 2009 Canadian based, mass-marketing fraudsters distributed thousands of letters and counterfeit checks to American citizens via the mail and the Internet. The communications falsely promised the recipients cash prizes, fictitious loans, commissions and other payments. The recipients were typically tricked into depositing worthless counterfeit checks into their bank accounts before sending money to the fraudsters for “taxes” and other bogus fees via the MoneyGram money transfer system.

     UGOH, an expatriated Nigerian Tribal Chief living in Toronto, was the leader of a corrupt group of Canadian MoneyGram agents who conspired with the mass marketing fraudsters to intercept, launder and distribute the MoneyGram transfers sent by the victims of the mass-marketing schemes.  UGOH obtained his first MoneyGram outlet in 2001.  By 2008 UGOH had 12 MoneyGram outlets in the greater Toronto area, 1l operating under the name of Money Spot and 1 under the name of N & E Associates.   Between January 2005 and February 2009 UGOH’s outlets paid out more Consumer Fraud Reported money transfers than any other MoneyGram agent in the world - 1,754 transfers totaling $3.4 million.

     But UGOH’s money laundering activities went far beyond just his 12 MoneyGram outlets.  UGOH recruited MORDI, KASSIM, and ONGUNFUNWA to launder MoneyGram transfers checks issued by approximately 28 other corrupt MoneyGram agents in the greater Toronto area.  Instead of making the MoneyGram checks payable to the intended payees, UGOH and his co-conspirators would make the checks payable to third party companies controlled by MORDI, KASSIM and OGUNFUNWA.  MORDI, KASSIM and UNGUNFUNWA would then deposit the checks into their bank accounts, keep an approximate 3 to 4% cut for themselves, and distribute the balance to UGOH. UGOH would then share the bulk of the funds with the mass marketing fraudsters, typically via off-shore money MoneyGram transfers to Nigeria, Jamaica or Romania, thereby effectively laundering the proceeds. The $4 million loss stipulation in UGOH’s plea agreement represented the approximate dollar value of 2,309 transfers paid out at the 18 MoneyGram outlets controlled by UGOH, MORDI, KASSIM and UNGUNFUNWA that were reported by MoneyGram customers as being fraudulently induced between 2004 and March of 2009.

     The UGOH case was one of several on-going investigations of fraudulent international telemarketing schemes involving corrupt MoneyGram and Western Union agents by the U.S. Postal Inspection Service in Harrisburg and the U.S. Attorney=s Office for the Middle District of Pennsylvania.   In November of 2012 the U.S. Attorney’s Office for the Middle District of PA and the U.S. Justice Department entered into a Deferred Prosecution Agreement with MoneyGram that required the company to pay $100 million into a victim restitution fund. Thus far, the Postal Inspection Service has returned approximately half of the $100 million to thousands of victims of the mass marketing schemes.

     The MoneyGram agent and corporate prosecutions are being handled by Assistant U.S. Attorneys Kim Douglas Daniel and Christy Fawcett, with assistance from the Justice Department’s Asset Forfeiture and Money Laundering Section in Washington, D.C..  The Third Circuit appeal in the UGOH cases was handled by Assistant U.S. Attorney Steven Cerutti.

     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 today that charges have been brought this week against the following:

     Domingo Cervante-Dominguez, at 34, a native and citizen of Mexico, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg today.  The information alleges that Cervante-Dominguez, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in York, Pennsylvania after eluding examination or inspection by immigration officers.

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

     Jorge De Leon-Estrada, age 34, a native and citizen of Guatemala, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg.  The information alleges that De Leon-Estrada, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in Franklin, Pennsylvania after eluding examination or inspection by immigration officers.

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

     Elvin Sanchez-Herrera, age 33, a native and citizen of El Salvador, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg.  The information alleges that Sanchez-Herrera, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in York, Pennsylvania after eluding examination or inspection by immigration officers.

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

     Fidel Bautista-Salazar, age 35, a native and citizen of Mexico, in the United States illegally, was charged in a one-count information filed with the Court in Harrisburg.  The information alleges that Bautista-Salazar, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.

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

     The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement 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.

     In these cases, the maximum penalty under the federal statute is 6 months’ 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 offenses are not an accurate indicator of the potential sentence for a specific defendant.

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     The United States Attorney's Office for the Middle District of Pennsylvania announced today that it has filed a criminal information in U.S. District Court in Scranton charging an Old Forge pharmacist with submitting false insurance claims for non-existent prescriptions.

     According to United States Attorney Peter J. Smith stated that, according to the criminal information, Peter Capitano, owner of Capitano’s Pharmacy engaged in a scheme to defraud Blue Cross of Northeastern Pennsylvania and the Pennsylvania Medicaid Program between January 2007 through August 2013. 

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

     Capitano allegedly submitted claims or caused claims to be submitted for drugs allegedly prescribed when the prescriptions did not exist and drugs were not actually dispensed. 

     A plea agreement was also filed together with the criminal information.  The agreement is subject to approval by the Court.  According to the plea agreement, the estimated financial loss resulting from the fraudulent claims was between $120,000 and $200,000.  Capitano 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.

     An Indictment or Information is not evidence of guilt but simply a description of the charge made by the Grand Jury and/or United States Attorney against a defendant.  A charged Defendant is presumed innocent until a jury returns a unanimous finding that the United States has proven the defendant=s guilt beyond a reasonable doubt or until the defendant has pled guilty to the charges.

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     The United States Attorney's Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton Tuesday returned an indictment against Carlos Mendez, a citizen of Guatemala, charging failure to depart the United States.

     According to United States Attorney Peter J. Smith, Carlos Mendez, age 44, a native and citizen of Guatemala, was charged with allegedly failing to comply with facilitating his departure from the United States after a final order of removal had been issued.  In June 2013, an Immigration Judge in Philadelphia sustained a ruling that Mendez, who had entered the U.S. on a VISA in 1988, was not here legally and ordered him to be removed.  Mendez then allegedly refused to comply with established removal procedures.

     If convicted, Carlos Mendez faces up to four years imprisonment.

     The case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

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

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

     In this case, the maximum penalty under the federal statute is 4 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.