Middle District of Pennsylvania

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Walter J. Pietralczyk, Jr., age 39, pleaded guilty today to a tax fraud misdemeanor before U.S. Magistrate Judge Thomas M. Blewitt in Scranton.

     Pietralczyk is the spouse of Lackawanna County Attorney and former Family Court Guardian Ad Litem Danielle Ross Pietralczyk, both of Jermyn, Pennsylvania.

     According to United States Attorney Peter J. Smith, an indictment filed against Ross in February 2013 alleged that the couple’s joint federal tax returns verified by Ross under penalty of perjury failed to report income she received from private paying clients while acting as the guardian ad litem for the Lackawanna County Family Court. The only income Ross reported for 2009 and 2010 was her County compensation reported on 1099 Forms which she received as an independent contractor hired by Lackawanna County.

      The indictment charged that as the sole guardian ad litem for the Lackawanna County Family Court, Ross was paid an annual compensation of $38,000. Pursuant to the contract between Ross and Lackawanna County, Ross was permitted to bill private paying parties above her County compensation at a rate of $50 per hour. Those payments were not reported as income for tax purposes.

     The investigation continued beyond the original indictment and ultimately implicated Pietralczyk in the submission of false information to the IRS on tax returns filed by the couple.

     Pietralczyk was charged in an Information filed by the U.S. Attorney’s Office in November 2013.

     Pursuant to the terms of plea agreements with the Government, both Ross and Pietralczyk have agreed that the tax loss to the United States as a result of the fraud is more than $30,000 but less than $80,000. The restitution amount that will be imposed upon the couple will be determined by the Court as part of the sentences. Pietralczyk’s plea relates to the 2009 tax return.

     Ross is scheduled to enter her guilty plea on December 16, 2013, before U.S. Senior District Court Judge A. Richard Caputo. She was dismissed from her position as County Guardian Ad Litem earlier this year.  

     The prosecutions are the result of a joint investigation by the United States Internal Revenue Service (IRS), the Federal Bureau of Investigation (FBI), and the Lackawanna County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski, assisted by Assistant U.S. Attorney William Houser.

     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 Pietralczyk is one year 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 two Pittston residents were indicted by a federal grand jury in Scranton today for sex trafficking of children and producing and distributing child pornography.

     According to United States Attorney Peter J. Smith, the indictment alleges that Gregory Boone, age 29, and Randy Coleman, Jr., age 33, conspired to use minor females to engage in prostitution during August and September 2013 and used cell phones to produce and transmit images of child pornography which were used in “escort services” advertisements on a website.

     The indictment alleges that Boone, Coleman, and others whose identities are known to the grand jury, recruited at least three minor females–and attempted to recruit a fourth–to engage in prostitution in Luzerne, Lackawanna, and Dauphin Counties, took photographs of the minors and posted them on the website, rented motel rooms for customers to meet with minors for sex, and shared in the profits of the prostitution activities.

     Both defendants are charged with conspiracy to commit sex trafficking of children; sex trafficking of children as aiders and abettors; conspiracy to produce child pornography; three counts of producing child pornography as aiders and abettors; conspiracy to transport and ship child pornography; and three counts of transporting and shipping child pornography as aiders and abettors.

     The charges stem from an investigation by the U. S. Department of Homeland Security(HSI) Immigration and Customs Enforcement(ICE), the Pennsylvania State Police, the Pittston Police, and the Luzerne County District Attorney’s Office. 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, each defendant faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment on the child pornography production charges; a mandatory minimum sentence of 10 years’ imprisonment and a possible life imprisonment sentence on the sex trafficking of children offenses; and a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment on the transporting child pornography charges.

In addition to a prison sentence, both defendants also face 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.

     This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat 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 and click on the tab “resources.”

     The United States Attorney’s Office for the Middle District of Pennsylvania announced the unsealing of indictments charging three thoroughbred horse trainers and an employee of Penn National Racetrack in Grantville with fraud in connection with horse races at that track. The indictments were returned by a federal grand jury in Harrisburg on Wednesday and were unsealed following arrests of four individuals earlier today.

     According to United States Attorney Peter J. Smith, David Wells, 39, of Grantville, Sam Webb, 63, of Jonestown, Patricia Anne Rogers, 43, of Hummelstown, and Danny Robertson, 63, of Hershey, were charged individually in four separate indictments.

     Wells, Webb and Rogers, all horse trainers, were charged with allegedly devising a scheme to defraud those betting on thoroughbred races at Penn National Racetrack by attempting to administer, and administering in violation of state racing rules and regulations, substances prohibited from being introduced into a horse within 24 hours of when the horse is scheduled to race.

     The indictment also alleges that it is also a violation of state law to rig or attempt to rig a publicly exhibited contest such as a thoroughbred horse race. Races at Penn National Racetrack are simulcast to approximately 116 sites across the United States and in other countries by wire and television to allow bettors to wager on the Penn National races without being in attendance at that track.

     According to the indictment, Robertson was employed by the track as the clocker to provide racing officials and others with the official workout times for horses at Penn National, information relied upon by the betting public. The trainers, like the owners, stand to profit financially from the purse offered for that race if the horse that is entered finishes in first, second or third place.

     The indictment charging Webb alleges that Webb was detected by track security personnel on May 2, 2013, in a stall at the racetrack in possession of hypodermic syringes, needles and bottles of medications preparing to inject the horse “Papaleo” that Webb trained and which was scheduled to run in the sixth race that day. The horse was scratched from the race by racing officials.

     The indictment charging Rogers alleges that Rogers was caught by track security personnel on August 21, 2013, at a stall at the racetrack in possession of hypodermic syringes and needles and bottles of medications and was observed injecting or attempting to inject a substance into a horse named “Strong Resolve” that she trained and that was scheduled to run in the second race that day. The horse was scratched from the race by racing officials. Rogers was also charged with conspiring with a person known to the grand jury to attempt to commit wire fraud.

     The indictment charging Wells alleges that Wells, both a trainer and horse owner, for several years up to and including February 2012, would routinely inject prohibited substances into horses he trained and other horses he both trained and owned, by use of hypodermic syringes and needles and otherwise. It is also alleged that Wells was routinely in possession of those prohibited items at the racetrack in violation of state rules, regulations and laws.    

     The indictment charging Robertson alleges that Robertson was an employee of the racetrack, working in the capacity of clocker whose duties included being present when horses would have their official workout. Robertson was to verify that the horse being timed was the actual horse the trainer represented it to be, to accurately record the distance each horse ran, and the time it ran that distance in and then to provide that information to racing officials for inclusion in the official public daily racing program.

     Robertson also allegedly sent the workout time information interstate by wire via computer to Equibase, a Kentucky based company that provides information on a racehorse’s past performance and workout times to media outlets and publications as well as on its own website. The workout time information is allegedly relied upon by the betting public in deciding which horses to wager on in any given race.

     The Robertson indictment alleges that Robertson, in exchange for cash given to him by trainers known and unknown to the grand jury, would provide false workout times to racing officials and to Equibase. The times Robertson turned in allegedly, at times, included completely fabricated time for horses that did not workout at all at the track. The indictment alleges Robertson profited personally from the scheme, the betting public was defrauded and Robertson’s employer, Hollywood Casino and Racetrack, was denied of its right to Robertson’s honest services.  

     The investigation which is continuing is being conducted by the Harrisburg office of the FBI, the Commonwealth of Pennsylvania Department of Agriculture’s Horse Racing Commission, the Pennsylvania State Police, the Dauphin County District Attorney’s Office, and the U.S. Department of Agriculture.

     Each defendant faces up to 20 years imprisonment and a $250,000.00 fine if convicted of wire fraud or attempted wire fraud. Each defendant faces an additional 5 years imprisonment and a $250,000.00 fine if convicted of using and attempting to use the intestate wire mechanism provided by the simulcasting of races to defraud or for attempting to defraud the public through the rigging of a publicly exhibited contest in violation of state law. Rogers faces an additional potential 20 year term of imprisonment and a $250,000.00 fine if convicted of the charge of conspiring to commit wire fraud.   

     Prosecution has been assigned to Assistant U.S. Attorney William A. Behe.

     The case has been assigned to Senior U.S. District Court Judge William W. Caldwell.

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

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a second superseding indictment has been returned against former State Senator Raphael J. Musto, Pennsylvania 14th Senatorial District. This new indictment amends previous charges brought against Senator Musto, who is currently scheduled for trial on January 6, 2014.
                         
     According to United States Attorney Peter J. Smith, Senator Musto, age 85, of Pittston, was originally charged in an indictment in November 2011. Those charges alleged that Senator Musto accepted $25,000 cash payment from a construction contractor whom had developed various properties in Lackawanna and Luzerne Counties. Senator Musto accepted the $25,000 in cash, as well as other things of value from the contractor, as part of a stream of benefits designed to secure Senator Musto’s continued support of various construction projects which were to the financial benefit of the company.   

     In addition, Senator Musto was alleged to have accepted thousands of dollars in cash from another individual affiliated with Northeast Pennsylvania municipal authorities.  That cash payment was accepted by Senator Musto as a reward for prior official action taken by the senator where he assisted the municipal authorities obtain loans and grants. In addition, Senator Musto accepted these funds intending to be influenced in his future official decisions.

     In October 2012, the original indictment was superseded by a grand jury to include two new charges of public corruption. In 2006, Senator Musto is alleged to have accepted $1,000 and other benefits from an individual affiliated with a municipality in return for his assistance with passing through a loan application for the municipality. Senator Musto is alleged to have done the same, for the same individual, in 2008, again in return for his assistance with the passage of a loan application for local municipalities.

     The Indictment returned Wednesday amended portions of this indictment to include a broader array of things of value provided to Senator Musto and changed one of the charges in the indictment.

     In October 2012, attorneys for Senator Musto filed a motion with the court to dismiss the pending charges, or to indefinitely postpone the trial, because of Senator Musto’s physical health. The government objected to this request and Senior United States District Court Judge A. Richard Caputo agreed. The defense appealed this decision to the Third Circuit Court of Appeals. The appeals court denied the appeal and on October 22, 2013, the case was returned to Judge Caputo who scheduled it for trial on January 6, 2014. 

     On November 15, 2013, Senator Musto filed a renewed motion with the court to indefinitely postpone the trial. In this latest motion, the defense has identified the senator’s deteriorating physical health as well was his mental competency to stand trial as reasons for the trial postponement. The United States has not agreed with this request and will be filing a response asking Judge Caputo to schedule a hearing where the defense will be required to prove that Senator Musto is unable to withstand trial and/or assist his attorneys. 

     This case is part of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service and is being prosecuted by a team of federal prosecutors led by Senior Litigation Counsel Gordon Zubrod and includes Assistant U.S. Attorneys William Houser, Michael Consiglio, Amy Phillips John Gurganus and Criminal Division Chief Christian Fisanick.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a jury in Harrisburg has found a York County man guilty of two counts of receipt of child pornography.

     Following a three-day trial, early Wednesday evening, the jury convicted Lawrence B. Blevins, Jr., age 44, of West Manchester, Pennsylvania, of downloading child pornography from the internet. The trial was held before Chief United States District Court Judge Christopher C. Conner. A sentencing date has not been set. Blevins faces a 15-year mandatory minimum sentence.

     The case arose from an investigation by West Manchester Township Police into a network of individuals who shared child pornography over the internet.  On December 29, 2011, West Manchester Township Police executed a search warrant at Blevins’s residence and recovered multiple computers and external storage devices from his room.  Police found over a half million images of child pornography and hundreds of videos. He was arrested and charged by local officials. On September 26, 2012, a federal grand jury returned a two-count indictment charging Blevins with possession of child pornography.

     United States Attorney Peter J. Smith stated that the prosecution is part of the continuing cooperation between state and federal authorities in the Project Safe Childhood program.  The investigation was conducted by West Manchester Township Police Department, the Northern York Regional Police Department, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The prosecutor assigned to the case is Assistant United States Attorney Michael A. Consiglio.

     Yesterday, Judge Mariani ruled that Lupas was not competent to stand trial at the present time and ordered that Lupas be placed in the custody of the Attorney General to determine whether there is a substantial probability Lupas will attain the capacity to permit proceedings in this case to go forward in the future.

     The ruling came after a hearing and the consideration of reports and conclusions of health care professionals.  The government had full opportunity to present evidence and arguments in support of its position.  The Court’s 43 page ruling is very detailed.  There is no legal or factual basis for the government to appeal the decision, or to ask the Court to reconsider it, at this time.

     The charges in this case are extremely serious; the matter is of great concern to the alleged victims and the general public in Luzerne County; the defendant is a prominent lawyer.  At the same time, under the law, the mental competency of a defendant to stand trial is a basic requirement of our system.  The law provides for a careful and lengthy process to determine a defendant’s mental competency.  As Judge Mariani noted in his ruling, the decision is not the final step in the criminal justice process or the final word on whether or not Lupas will be competent to stand trial.  After further hospitalization and examination of the defendant while he is in the custody of the Attorney General, the government will have the opportunity to review the results and present its position to the Court.  This is the procedure mandated by law in these situations within the federal system.

     The United States Attorney’s Office for the Middle District of Pennsylvania, announced that charges have been filed against Andrea Gemberling, of Shamokin Dam, Pennsylvania. 

     According to United States Attorney Peter J. Smith, Gemberling, age 39, is charged in a one-count Information with providing contraband – tobacco and a cell phone to an inmate serving a sentence at the Allenwood Federal Penitentiary, White Deer, Pennsylvania. 

     The investigation was conducted by the U.S. Department of Justice Office of Inspector General, and Special Investigation Service.  Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.

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

     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 one year 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 Monday affirmed the 65-month prison sentence imposed by Senior U.S. District Court Judge James M. Munley on Jeffrey Olson for his scheme to defraud investors of $2.8 million and for violating conditions of his supervised release.

     According to United States Attorney Peter J. Smith, Olson, age 51, who resided in Pocono Lake during the time of the offense, previously pleaded guilty to wire fraud in connection with soliciting investments in a business called Northco Investments between 2008 and 2011. Olson was sentenced to prison in February 2013.

     Olson was charged in May 2011, as a result of an investigation by the Federal Bureau of Investigation.

     In his appeal, Olson challenged the validity of his guilty plea; claimed that the government promised him a lesser sentence; and argued that consecutive sentences for the wire fraud offense and his supervised release violation were unreasonable. The Third Circuit Court rejected each of those claims and noted that Judge Munley’s sentence was “premised upon appropriate and judicious consideration of the relevant factors.” 

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

$3 Million

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Wendy Weikal-Beauchat, age 46, of Gettysburg, Pennsylvania, pleaded guilty today to wire fraud and money laundering before U.S. District Court Judge John E. Jones, III.

     According to United States Attorney Peter J. Smith, Weikal-Beauchat, a former attorney at a Gettysburg law firm, was charged earlier this month with defrauding eight clients of more than $3 million from 2007 through 2013. She misappropriated client funds to pay for her business and personal expenses.

     Weikal-Beauchat concealed her fraudulent actions by providing clients with bogus Certificates of Deposit and IRS 1099 Interest Forms. The investigation is continuing in an effort to identify other clients who may have been victimized by her scheme.

     The investigation is being conducted by Internal Revenue Service, Criminal Investigations, and the FBI.

     The case is being prosecuted by Assistant U.S. Attorney Joseph J. Terz and Special Assistant U.S. Attorney Brian Sinnett from the Adams County District Attorney’s Office.

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

     In this case, the maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, a forfeiture 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 Nancy Rockey, age 55, of Harrisburg, Pennsylvania, pleaded guilty Thursday to wire fraud before U.S. District Court Chief Judge Christopher C. Conner.

     According to United States Attorney Peter J. Smith, Rockey was employed by Harrisburg Area Community College (HACC) from 1980 until her resignation in February 2012. At the time of her resignation, Rockey was Vice-President of the Harrisburg campus and Vice-President of College and Community Development. 

     In October 2013, Rockey was charged with using a credit card issued by HACC, to make online purchases of Target gift cards which she then used to purchase non-work-related items for herself, her family, and her friends. Rockey then created bogus invoices, later submitted to the HACC Finance Office, to conceal the unauthorized purchases.

     Rockey is charged with purchasing $228,000 worth of gift cards with her HACC credit card.

     The investigation was conducted by the FBI and the Dauphin County Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorney Joseph J. Terz.

     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 a 35-year-old Scranton man was charged today with stealing money from a bank where he worked as a teller.

     According to United States Attorney Peter J. Smith, his office filed a criminal Information against Gary Fletcher, charging him with the theft of more than $8,000 from Fidelity Deposit and Discount Bank.

     The charge against Fletcher resulted from an investigation by the Federal Bureau of Investigation.

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

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

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a third woman from Carbon County pleaded guilty today before Senior United States District Judge Edwin M. Kosik to the charge of conspiracy to distribute cocaine.

     According to United States Attorney Peter J. Smith, Ceres Lozada, age 27, of Nesquehoning, Carbon County, admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January 2010 and December 2012.

     Previously, Bonnie Vosburgh, age 22, of Nesquehoning, and Victoria Argott, age 34, of Lansford, entered guilty pleas and admitted to participating in the same cocaine trafficking conspiracy.

     The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.

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

     In this particular case, the maximum penalty under the federal statute is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine.  Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs.  For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Eric Chambers, age 44, of Harrisburg, was sentenced today by Senior U.S. District Court Judge William W. Caldwell, following Chambers’ conviction at a jury trial for possession of a firearm by a convicted felon.

      On June 12, 2013, a federal jury convicted Chambers of possessing a loaded firearm in a motel in Swatara Township on January 9, 2012.

     According to United States Attorney Peter J. Smith, Judge Caldwell classified Eric Chambers as an “Armed Career Criminal,” a determination that allows for additional penalties to be imposed once an individual has previously been convicted of three violent crimes or serious drug offenses. Judge Caldwell sentenced Chambers to 200 months’ incarceration to be followed by five years of supervised release and a fine of $2,100 for the firearms conviction.  Judge Caldwell also sentenced Chambers to a consecutive 24 month sentence for violating the terms of his supervised release.   

     Judge Caldwell ordered that this 224-month sentence be served consecutively to a 25-50 year sentence Chambers received in July 2013 after he was convicted by a jury in Dauphin County Court of Common Pleas of Attempted Homicide for his involvement in a shooting that occurred in September 2011. 

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 43-year-old Tamaqua, Pennsylvania resident was sentenced to nearly seven months in prison today by Senior U.S. District Court Judge Edwin M. Kosik for his role in an Oxycontin trafficking conspiracy that operated in Schuylkill and Berks County in 2011.

     According to United States Attorney Peter J. Smith, Michael Beaver previously admitted to conspiring with at least two others to unlawfully distribute 80mg Oxycontin pills.

     Beaver was indicted by a federal grand jury in April 2011, as a result of an investigation by the Drug Enforcement Administration and the Pennsylvania State Police. He pleaded guilty in October 2011.

     Judge Kosik also ordered Beaver to pay a $300 fine and a $100 special assessment. Beaver was placed on supervised release for three years, including six months on home confinement with electronic monitoring.

     Two of Beaver’s co-defendants previously entered guilty pleas in the case. Richard Law was sentenced to 15 months in prison. Stephen Nesspor was sentenced to one year in prison.

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

To Submit False Claims To The IRS

     The U.S. Attorney's Office for the Middle District of Pennsylvania announced that Stephanie A. Metz, age 25, of Harrisburg, Pennsylvania, was charged Tuesday with conspiracy to submit 33 fraudulent income tax returns to the IRS requesting $242,095 in fraudulent tax refunds for the years 2010 and 2011.

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

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

     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, along with Pennsylvania Attorney General Kathleen Kane and Pennsylvania State Police Commissioner Frank Noonan announced that a federal grand jury in Harrisburg returned an indictment today charging Matthew Baratucci, age 29, of Harrisburg, Pennsylvania, for attempted coercion and enticement of a minor to engage in sexual activity.

     According to United States Attorney Peter J. Smith, the charge resulted from Baratucci allegedly soliciting several women via the telephone and text messaging in October 2013, to allow him to engage in sexual activity with minor females aged five through nine years old. Baratucci is also facing state charges related to the alleged incidents. 

     The case is the result of a joint investigation by the United States Postal Inspection Service, the Pennsylvania Office of Attorney General, the Pennsylvania State Police, and the Lower Paxton Police Department.

     Anyone with information about this case or the defendant, Matthew Baratucci, is asked to contact U.S. Postal Inspector Michael Corricelli at 717-257-5581.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a New York City man was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 40 months in prison on the charge of conspiracy to distribute cocaine.

     According to United States Attorney Peter J. Smith, Richard Caba-Batista, age 35, formerly of New York City, previously admitted to participating in a drug-trafficking conspiracy which obtained cocaine in Texas and New York City and distributed the cocaine in the Monroe County and Northampton County areas in 2011.

     Caba-Batista also faces deportation proceedings.

     In addition to the prison term, Senior Judge Kosik also ordered that Caba-Batista be supervised by a probation officer for four years following his prison sentence if he is not deported.

     Previously, Dickson Gutierrez, age 37, and Jhonathan Gutierrez-Esquea, age 33, both formerly of Stroudsburg, were sentenced to 60 months in prison for participating in the same cocaine-trafficking conspiracy.  As part of his plea agreement, Dickson Gutierrez also agreed to forfeit to the United States two properties in the Dominican Republic which were purchased with the proceeds of cocaine trafficking activity.

     The investigation was conducted by the Drug Enforcement Administration, the Stroud Area Regional Police Department and the Internal Revenue Service, Criminal Investigations.

     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 the filing of an Information in U.S. District Court in Harrisburg today charging Wendy Weikal-Beauchat, age 46, of Gettysburg, Pennsylvania, with wire fraud and money laundering.

     According to United States Attorney Peter J. Smith, Beauchat is charged with defrauding eight clients of more than $3,000,000 during the period from 2007 through 2013. Beauchat, an attorney, was a member of a law firm located in Gettysburg until February 2012. According to the law firm website, Beauchat’s area of concentration was estate planning and long-term care planning.  

     Beauchat allegedly misappropriated client funds to pay for her business and personal expenses.

     It is charged that she concealed her fraudulent actions by providing clients with bogus Certificates of Deposit and IRS 1099 Interest Forms. The investigation is continuing in an effort to identify other clients who may have been victimized in Beauchat’s scheme.

     The investigation is being conducted by Internal Revenue Service, Criminal Investigations and the FBI.

     "The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said Akeia Conner, Special Agent in Charge, IRS Criminal Investigation.  With both law enforcement and financial investigation expertise, our agents are uniquely qualified to assist with these types of cases by following the money. IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime."

     “When a lawyer, an officer of the court, defrauds clients, it’s a serious crime – and a heinous breach of trust,” said FBI Special Agent in Charge Edward J. Hanko. “The FBI is committed to investigating financial schemes at every level, and working with our partners to hold white-collar crooks accountable.”

     The case is being prosecuted by Assistant U.S. Attorney Joseph J. Terz and Special Assistant U.S. Attorney Brian Sinnett, from the Adams County District Attorney’s Office.

     The U.S. Attorney’s Office also filed a plea agreement which must be approved by the District Court.

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

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

     In this case, the maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, a forfeiture 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 Thomas Edward Smith, age 59, of Emporium, Pennsylvania, was sentenced on November 1 by Chief U.S. District Court Judge Christopher C. Conner to a 171-month term of imprisonment and three years of supervised release for armed carjacking.

     According to United States Attorney Peter J. Smith, on August 8, 2012, Thomas Smith pretended to be working on a car parked along a street in Emporium and flagged down an employee of Citizens & Northern Bank. Smith entered the vehicle and pulled out a handgun. Smith then directed the victim to drive to the Citizens & Northern Bank branch in Emporium. Smith told the victim this would be "the worst day of her life," that the victim and the bank had taken his house away from him in a bank foreclosure, and that the victim and another bank employee were now "going to pay for it." The victim jumped out of the vehicle to escape from Smith, who then also fled from the vehicle.

     Smith was indicted in September 2012. In August 2013, Smith was convicted of carjacking, brandishing a gun during a crime of violence and receiving a stolen firearm stemming from an armed carjacking.

     The case was investigated by the Emporium Borough Police Department, the Cameron County Sheriff, the Pennsylvania State Police, and the Federal Bureau of Investigation. Prosecution was handled by Assistant United States Attorney George J. Rocktashel.

Sentenced For Involvement In Cocaine Distribution Conspiracy

     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 Frank Louis Suriano, age 45, of Pittston, Pennsylvania, to 30 months’ imprisonment for his involvement in a conspiracy to distribute more than 500 grams of cocaine between 2002 and April 2012.   
   
     According to United States Attorney Peter J. Smith, Suriano’s role in the conspiracy included driving to New York City on numerous occasions to obtain cocaine for distribution in the Pittston area.  A co-conspirator of Suriano, John Estock, was sentenced by Judge Kosik to 24 months’ imprisonment on October 8, 2013.  In addition to the 30-month term of imprisonment, Judge Kosik also ordered that Suriano be placed on supervised release for a period of four years following the service of his sentence, and that he pay a $600 fine. 

     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 Kirk Robinson, age 45, of Wilkes-Barre, Pennsylvania, has pleaded guilty to being involved 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, before Senior United States District Judge James M. Munley.  Robinson pleaded guilty 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.  

     The case was investigated by the Federal Bureau of Investigation; the Kingston Police Department; the Hanover Township Police; and the Wilkes-Barre Police Department.  Prosecution has been assigned to Assistant United States Attorney John C. Gurganus.

     The sentence following this guilty plea will be 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 85 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 Pennsylvania announced that Marlon T. Holmes, a/k/a “Peanut,” age 37, of Harrisburg, Pennsylvania, was sentenced to 11 years in federal prison for drug trafficking.

     According to United States Attorney Peter J. Smith, Holmes was charged with cocaine trafficking in Harrisburg from 2007 through October 2008. A grand jury indicted Holmes in 2008, but he remained a fugitive for approximately three years before he was arrested by authorities in November 2011. In June 2012, Holmes entered a guilty plea to cocaine and crack cocaine trafficking before the Senior United States District Court Judge William A. Caldwell.

     Today, Judge Caldwell sentenced Holmes to a sentence of 11 years of incarceration and a fine of $900. Upon his release from prison, Holmes must serve three years of supervised release.

     The United States Drug Enforcement Administration, the Dauphin County Drug Task Force, and the Harrisburg Bureau of Police worked together on this investigation. Prosecution was assigned to Assistant United States Attorney Michael A. Consiglio.

Sentenced For Involvement In Cocaine Distribution Conspiracy

     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 Leslie Williams, age 31, of Duryea, Pennsylvania, to one year of imprisonment for her involvement in a cocaine distribution ring centered in Pittston, Pennsylvania.
   
     According to United States Attorney Peter J. Smith, Williams admitted her role of receiving and distributing cocaine at a bar in Luzerne County where she worked during her guilty plea to the charge.  In addition to the one-year term of imprisonment, Judge Kosik also ordered that Williams be placed on supervised release for a period of two years following the service of her 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 32-year-old former Lehighton resident pleaded guilty today to receiving and distributing child pornography before Senior U.S. District Court Judge Edwin M. Kosik.

     According to United States Attorney Peter J. Smith, the defendant, Stephen Puza, III, admitted to using a computer to download and share numerous images of child pornography during July 2011 through September 2013.  Puza was living in Bethlehem, Pennsylvania, at the time of his arrest.

     Puza was indicted by a federal grand jury on September 10, 2013, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Lehighton Borough Police.

     Puza faces a mandatory minimum sentence of five years in prison and a possible maximum sentence of 20 years in prison, and a fine of $250,000. Puza remains in custody pending his sentencing.

     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 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.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mark Kandel, age 53, was sentenced today in federal court in Wilkes-Barre by U.S. District Judge A. Richard Caputo to 174 months’ imprisonment to be followed by a lifetime term of supervised release upon the completion of imprisonment and will be subject to the registration and reporting requirements of the Adam Walsh Act.

     According to United States Attorney Peter J. Smith, Kandel was indicted in December 2012 after he used the internet and a cellular device in attempts to persuade, induce, entice, and coerce minors to engage in sexual activity. Kandel pleaded guilty in June 2013.

     This case was brought as part of Project Safe Childhood, a nationwide initiative 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 internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

     The case was investigated by the FBI, the Lackawanna County District Attorney’s Office and the Blakely Police Department. The case was prosecuted by Assistant United States Attorney Michelle Olshefski.

The United States Attorney’s Office for the Middle District of Pennsylvania announced the unsealing of a seven-count indictment returned by a federal grand jury in Williamsport on October 10, 2013 charging Paul Chomiak, Lindsay Lee-Lampshire, Adam Stein, and Kyle Savitski with mail fraud conspiracy, conspiracy to distribute controlled substance analogues, distribution of controlled substance analogues, conspiracy to introduce and introduction of misbranded drugs, and conspiracy to commit money laundering offenses. The indictment also charged four businesses allegedly used to commit the offenses, Reflectionz and Symplegades Requiem, both based in Bloomsburg, Pennsylvania and Anima Entertainment, LLC and Extelligence Internet Services based in Kalamazoo, Michigan.

The indictment was unsealed following the arrests.

According to United States Attorney Peter J. Smith, the indictment alleges that from September 2009 through the present, Chomiak, Lee-Lampshire, Stein, and Savitski marketed and distributed controlled substance analogues and misbranded drugs, commonly referred to as “bath salts” and “spice,” using Internet web sites and two stores in Bloomsburg operated as Symplegades Requiem and Reflectionz.  The indictment alleges that the defendants fraudulently marketed the products as novelties not for human consumption, when in fact the products were being used to obtain the same physical effects as controlled substances.

Chomiak, age 47, and Stein, age 23, and Savitski, age 23, reside in Bloomsburg. Lee-Lampshire, age 30, is a resident of Kalamazoo, Michigan.

The case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration, the United States Postal Inspection Service, and the Columbia County Drug Task Force. Prosecution has been assigned to Assistant United States Attorney George J. Rocktashel.

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

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

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 Augustine DeCruz, age 59, was sentenced Wednesday by United States District Judge A. Richard Caputo to 104 months’ imprisonment for possession with intent to distribute cocaine and crack cocaine and possessing and carrying a firearm during, in relation to, and in furtherance of possessing with intent to distribute cocaine and crack cocaine. DeCruz, a native and citizen of Guyana, who is in the United States illegally, formerly resided in Wilkes-Barre, Pennsylvania.

     According to United States Attorney Peter J. Smith, on February 10, 2011 and February 16, 2011, members of the Pennsylvania State Police Vice and Narcotics Unit based at PSP Wyoming, Luzerne County, executed search warrants on DeCruz’s residence located on Pennsylvania Avenue, Wilkes-Barre, Luzerne County. During the search, troopers seized approximately 77 grams of cocaine base, (crack cocaine), 85 grams of cocaine hydrochloride (powder cocaine), two handguns, a rifle, approximately $2,500 in U.S. currency, a surveillance system, and a large amount of packaging material.

     In addition to the items found during the search warrant of DeCruz’s residence, police were able to make multiple controlled purchases of cocaine from DeCruz during transactions that occurred in Wilkes-Barre, Pennsylvania.  After his arrest by local authorities, DeCruz’s criminal case was adopted for federal prosecution.

     The investigation was conducted by the U.S. Department of Homeland Security, Homeland Security Investigations and the Pennsylvania State Police. The case was prosecuted by Special Assistant United States Attorney Brian G. McDonnell.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Donnell Thomas, 26, of Steelton, Pennsylvania, was indicted today by a federal grand jury in Harrisburg, Pennsylvania. The indictment charges Thomas with Possession of a Firearm by a Convicted Felon, Possession of a Firearm in furtherance of Drug Trafficking, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm with an Obliterated Serial Number.

     According to United States Attorney Peter J. Smith, the charges against Thomas are a result of allegations that in February 2013, Thomas attempted to ram a vehicle being driven by uniformed officers from the Harrisburg Police Bureau. He then fled from those officers but was ultimately apprehended after discarding a firearm with an obliterated serial number from the waistband of his pants. Upon his arrest, bags containing an alleged controlled substance were seized from his person and his vehicle.

     The case is being investigated 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 as part of the on-going cooperative effort by federal, county and Harrisburg law enforcement agencies to fight violent crime in the city.

     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 that a 38-year-old Luzerne County resident pleaded guilty today to receiving and distributing child pornography before U.S. District Court Judge Malachy E. Mannion.

     According to United States Attorney Peter J. Smith, the defendant, Michael Shaw, of Luzerne, Pennsylvania, admitted to using a computer to download and trade images of child pornography during 2012 through June 5, 2013.

     The charge against Shaw resulted from an investigation by special agents and task force officers of the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, detectives from the Luzerne County District Attorney’s Office, and local police.

     Shaw faces a mandatory minimum sentence of five years in prison and a possible maximum sentence of 20 years in prison, and a fine of $250,000. Judge Mannion ordered that Shaw remain in custody pending his sentencing.

     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 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.

      The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment today charging William Trickett Smith, Sr., age 76, with attempting to arrange a prison escape, lying to federal agents about it, and trying to persuade someone else to lie to federal agents. 

     According to United States Attorney Peter J. Smith, the charges stem from events surrounding the arrest and extradition of the defendant’s son, William Trickett Smith, II. In 2007, Smith II was arrested in Pennsylvania, and charged in Peru for the murder of his wife. Peruvian authorities sought his extradition.

     The indictment alleges that during 2009 and 2010, Smith Sr., Harrisburg, devised a plan to have his son escape from custody after Smith Sr. filed a false private criminal complaint by paying off a magisterial district justice to schedule a hearing that would require Smith II to be transported and paying off a constable who would be picked to transport him. The Indictment alleges that when the plan failed because the criminal complaint was not approved by the district attorney, Smith Sr. then allegedly devised another plan for his son’s escape by paying off a prison guard. That plan also failed because Smith II was moved to a different prison.  The indictment alleges that in 2010, Smith Sr. lied about his plans and actions when questioned by the Federal Bureau of Investigation and also tried to persuade another individual to lie to the FBI about Smith Sr.’s actions.

     The case was investigated by the Federal Bureau of Investigation, the United States Marshals Service, the Dauphin County District Attorney’s Office, the Pennsylvania Department of Corrections-Office of Professional Responsibility and the Perry County Prison. The case is being prosecuted by Assistant U.S. Attorney James T. Clancy.

     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 on October 17, Brandon Hill, age 32, pleaded guilty before U.S. District Court Senior Judge Edwin M. Kosik to preparing and filing false tax returns.

     According to United States Attorney Peter J. Smith, Hill was responsible for the preparation of approximately 60 false returns in the years 2009, 2010 and 2011.  Hill prepared false returns for himself as well as others.  The total amount of refunds which Hill was responsible for falsely claiming was $291,103.

     Hill was charged in September 2013.

     The case was investigated by the Criminal Investigation Division of the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Lorna N. Graham.

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

And Access Device Fraud

     The United States Attorney’s Office for the Middle District of Pennsylvania announced the return of an eight-count indictment by a federal grand jury in Williamsport on October 10, charging Amy Jenkins, age 39, with theft of mail, possession of stolen mail, fraud in connection with access devices, and aggravated identity theft.

     According to United States Attorney Peter J. Smith, the indictment alleges that from November 2012 through April 2013, Jenkins stole mail from mail boxes in the 178 zip code area. Jenkins removed and possessed credit cards and related correspondence and other account information from the stolen mail with the intent to defraud.

     The case was investigated by the United States Postal Inspection Service and the Pennsylvania State Police. Prosecution of this matter has been assigned to Assistant United States Attorney George J. Rocktashel.

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

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

     In this case, the maximum penalty under the federal statute is 47 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 Scranton man pleaded guilty on October 3, in federal court, admitting to the receipt, distribution, and possession of thousands of images and videos of child pornography.

     According to United States Attorney Peter J. Smith, Daniel Albert Mall, age 34, entered his guilty plea before Senior United States District Court Judge Edwin M. Kosik.

     The case against Mall stems from an investigation by the Federal Bureau of Investigation and the Lackawanna County District Attorney’s Office-Internet Crimes Against Children Task Force.

     Mall was indicted in July 2012 and charged with committing the offenses between 2001 and 2012. He was arrested on May 30, 2012.

     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 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.

     This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Federal Cocaine Trafficking Charges

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 24 months in prison on the charge of conspiracy to distribute cocaine.

     According to United States Attorney Peter J. Smith, Lenix Gutierrez-Esquea, age 31, formerly of Stroudsburg, Monroe County, previously admitted to participating in a drug-trafficking conspiracy which obtained cocaine in Texas and distributed the cocaine in the Monroe County and Northampton County areas in 2011.

     Gutierrez-Esquea also faces deportation proceedings.

     In addition to the prison term, Senior Judge Kosik also ordered that Gutierrez-Esquea be supervised by a probation officer for three years following his prison sentence if he is not deported.

     Previously, Dickson Gutierrez, age 37, and Jhonathan Gutierrez-Esquea, age 33, both formerly of Stroudsburg, were sentenced to 60 months in prison for participating in the same cocaine-trafficking conspiracy.  As part of his plea agreement, Dickson Gutierrez also agreed to forfeit to the United States two properties in the Dominican Republic which were purchased with the proceeds of cocaine trafficking activity.

     The investigation was conducted by the Drug Enforcement Administration, the Stroud Area Regional Police Department and the Internal Revenue Service, Criminal Investigations.

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

For Document Fraud

     The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced that a citizen of Mexico has been charged with Fraud and Misuse of Documents.

     According to United States Attorney Peter J. Smith, Hermelando Murrieta-Jimenez, age 26, a native and citizen of Mexico, in the United States illegally, was charged on October 9 in a one-count indictment by a federal grand jury in Harrisburg.

     The indictment alleges that on September 11, 2013, Murrieta-Jimenez did knowingly possess, use, or attempt to use a fraudulent permanent resident card and social security card in Adams County, Pennsylvania.

     This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and Homeland Security Investigations.  It is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.

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

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

     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 Vanessa Ramos, age 23, of Wilkes-Barre, Pennsylvania, pleaded guilty today to aiding and abetting the robbery of a Dunmore bank before Senior United States District Court Judge James M. Munley. 

     According to United States Attorney Peter J. Smith, Ramos appeared in federal court in Scranton, Pennsylvania, and admitted that she acted as a getaway driver for Romeal Price in the robbery of the Pennstar Bank, 1230 O’Neill Highway, Dunmore, Pennsylvania, of approximately $11,000 on June 28, 2013.  At the time of the bank robbery, Price was a fugitive following his escape from the Catholic Social Services Residential Reentry Center on June 18, 2013. Price had been housed there while completing the remaining few months of a 15-year federal prison sentence from 2001.  Following the bank robbery, Price fled to New York City.  On July 17, 2013, deputies of the United States Marshals Service arrested Price in a New York City apartment without incident.  On September 6, 2013, Price, age 36, appeared in Federal Court in Scranton and admitted to the escape and bank robbery charges.   

     The case was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Dunmore Police Department. The case is being prosecuted by Assistant U.S. Attorney John Gurganus.

      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 the filing of an Information in U.S. District Court in Harrisburg today charging Nancy Rockey, age 55, of Harrisburg, Pennsylvania, with wire fraud.

     According to United States Attorney Peter J. Smith, Rockey, was employed by Harrisburg Area Community College (HACC) from 1980 until her resignation in February 2012. At the time of her resignation, Rockey was Vice-President of the Harrisburg campus and Vice-President of College and Community Development.

     In connection with her position, HACC provided Rockey with a HACC credit card to be used to purchase work-related items such as text books, training materials and other educational items.

     Rockey is charged with using the HACC credit card to make online purchases of Target gift cards which she then used to purchase non-work-related items for herself, her family and her friends. It is alleged that Rockey created bogus invoices, later submitted to the HACC Finance Office, to conceal the unauthorized purchases.

     Rockey is charged with purchasing $228,000 worth of gift cards with her HACC credit card.

     The investigation was conducted by the FBI and the Dauphin County Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorney Joseph J. Terz.

     The U.S. Attorney’s Office also filed a plea agreement which must be approved by the District Court.

     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.

Pleads Guilty To Embezzlement Of Union Funds

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lisa Barrett, age 48, of Shavertown, Luzerne County, pleaded guilty on October 2, before Senior U.S. District Court Judge James M. Munley, to a felony Information which charged her with embezzlement of funds from a labor organization.

     According to United States Attorney Peter J. Smith, Barrett is the past president of the Wyoming Area Education Association (WAEA) and admitted to converting in excess of $30,000 in funds of the labor union to her own use from 2006 to 2012.  Barrett resigned as president of WAEA in March 2013.

     The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.

     Senior Judge Munley ordered that a presentence investigation take place.  Sentencing has been scheduled for January 8, 2014.

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

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

Pleads Guilty To $1.2 Million Wire Fraud And Tax Evasion

     The United States Attorney’s Office for the Middle District of Pennsylvania, announced that on October 15, Christine S. DeJuliis, age 51, of Felton, PA, pleaded guilty before U.S. Magistrate Judge Susan E. Schwab to wire fraud and tax evasion charges. Magistrate Judge Schwab has recommended that the guilty plea be accepted by U.S. District Court Judge Yvette Kane.

     According to United States Attorney Peter J. Smith, DeJuliis was hired by the Bon-Ton Stores, Inc., in 1999, and worked in an administrative capacity for the Bon-Ton Stores Foundation, a charitable organization established by the Bon-Ton Stores, Inc.  While working in that capacity, DeJuliis created fictitious businesses, opened bank accounts in those entities’ names, and then devised a scheme to forge Foundation checks written to those entities. For at least one of those entities, DeJuliis used an internet-based legal document service to obtain an Employer Identification Number. The Foundation money was put into the fictitious accounts controlled by DeJuliis and then moved into her personal accounts. Between January 2003 and July 2009, DeJuliis defrauded the Foundation of more than $1.2 million. During tax years 2007 and 2008, DeJuliis also failed to pay income tax on the money she stole from the Foundation, resulting in a tax loss of more than $170,000. DeJuliis was fired from the Foundation as soon as her conduct was discovered by the company in July 2009.

     The guilty plea was entered pursuant to a plea agreement reached by the parties following DeJuliis’s indictment on mail fraud and money laundering charges in January 2013.

     The case was investigated by the U.S. Secret Service and Internal Revenue Service–Criminal Investigation based on information received from the Bon-Ton Stores, Inc.  

     The case is being prosecuted by Assistant United States Attorney James T. Clancy, Chief of the Victim Rights and Asset Recovery Unit.

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

     In this particular case, the maximum penalty under the federal statute is 20 years’ imprisonment on the wire fraud charge, a term of supervised release following imprisonment, and a fine.  The tax evasion charge subjects DeJuliis to a term of imprisonment of up to 5 years and a fine of the greater of $100,000 or twice the tax loss.  Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs.  For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed on October 10, charging Gerald Timek, age 28, of Duryea, Pennsylvania, with distribution of cocaine.  

     According to United States Attorney Peter J. Smith the charges are 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.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of a Criminal Information in U.S. District Court in Scranton on October 16, charging Daniel Ortiz, age 28, of Watertown, New York, with the four robberies of convenience stores in April and May 2011.

     According to United States Attorney Peter J. Smith, Ortiz allegedly robbed the Hilltop Sunoco / Extra Mart located at 238 State Route 6, Milford, Pennsylvania on April 6, 2011; the Turkey Hill Minit Market, 912 Pennsylvania Avenue, Matamoras, Pennsylvania, on April 11, 2011; the Hilltop Sunoco / Extra Mart located at 238 State Route 6, Milford, Pennsylvania on April 17, 2011; and 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.

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

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

     A sentence following a finding of 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 80 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

     The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced that a 44- year-old native and citizen of Cameroon was charged with hindering removal from the United States.

     According to United States Attorney Peter J. Smith, Patrice Talbot, age 44, a native and citizen of Cameroon, in the United States illegally was charged in a one-count indictment returned on October 9 by a federal grand jury in Harrisburg.

     The indictment alleges that Talbot, an alien who was under a final order of removal from the United States, did connive, conspire, and take action that was designed and intended to prevent and hamper his departure from the United States.

     This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.

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

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

     In this case, the maximum penalty under the federal statute is four 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 Carbon County man pleaded guilty on October 9, before Senior United States District Judge Edwin M. Kosik, to 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, 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.

     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 is being prosecuted by Assistant United States Attorney Robert J. O’Hara.

     Senior Judge Kosik ordered that a presentence investigation take place.  A sentencing date has not yet been scheduled.

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that George Abreu, age 36, of New York City, pleaded guilty today to the charge of conspiracy to distribution cocaine hydrochloride before Senior United States District Court Judge Edwin M. Kosik.     

     According to United States Attorney Peter J. Smith, the charge and guilty plea are part of a continuing investigation into a Pittston area drug ring by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Abreu appeared today in federal court and admitted to being involved in the supply of between 3.5 and 5 kilograms of cocaine.

     Assistant United States Attorney John Gurganus is prosecuting the case.

     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 Shawn Luther Kelley, age 35, of Hazleton, Pennsylvania, pleaded guilty today to the robbery of three financial institutions before Senior United States District Court Judge A. Richard Caputo.

     According to United States Attorney Peter J. Smith, Kelley appeared in Federal Court in Wilkes-Barre and admitted to committing the following robberies: the PNC BANK, located at 499 Susquehanna Boulevard, Hazle Township, Pennsylvania, on April 16, 2012; the CHOICE ONE COMMUNITY FEDERAL CREDIT UNION, located at 983 North Sherman Court, Hazleton, Pennsylvania, on April 20, 2012; and the CITIZENS BANK located at 40 West Broad Street, West Hazleton, Pennsylvania, on April 24, 2012.  Kelley was arrested shortly after the Citizens Bank robbery on April 24, 2012.     

     The case was investigated by the Federal Bureau of Investigation, Pennsylvania State Police, Hazleton Police Department and West Hazleton Police Department. Prosecution has been assigned to Assistant United States Attorney John Gurganus.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Scranton couple convicted of conspiracy to defraud the estate of a deceased aunt was sentenced on October 17 by Senior U.S. District Court Judge Edwin M. Kosik.

     Tamara Santarelli was sentenced to 70 months’ imprisonment and three years of supervised release. Victor J. Santarelli, III, was sentenced to 57 months’ imprisonment and three years of supervised release. Judge Kosik further ordered that both defendants jointly pay $74,390.55 in restitution.

     According to United States Attorney Peter J. Smith, between May 2006 and August 2007, Victor J. Santarelli, III and Tamara Santarelli, both formerly of Scranton, engaged in a scheme to defraud the estate of Victor’s deceased aunt, Joanne Striminsky, including a plan to have previously named beneficiaries changed to themselves on multiple insurance contracts held by their aunt who passed away on January 4, 2007.

     The defendants gained control of the victim by assuming Power of Attorney and Executor status under a will that they drafted.  After assuming control, the Santarellis’ had the 82 year-old victim (who suffered from Alzheimers) involuntarily committed to a psychiatric unit of a local hospital and then, under the guise of Power of Attorney, went about taking all of her assets, including her house.

     When the victim died midway through the Santarellis’ scheme, they had her body buried in an unmarked grave.

     Tamara and Victor Santarelli were indicted in February 2011. They were convicted in October 2011 of conspiring to defraud the estate of a deceased aunt, mail and wire fraud.

     The investigation was conducted by the United States Postal Inspection Services, Philadelphia Division. The case was prosecuted by Assistant United States Attorney Michelle Olshefski.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that August John Stile, Jr., age 49, of Hughestown, Pennsylvania, pleaded guilty today to the defrauding investors of approximately $310,000 before United States District Court Judge Malachy E. Mannion. 

     According to United States Attorney Peter J. Smith, Stile appeared in Federal Court in Scranton, Pennsylvania, and admitted to devising a scheme to defraud private investors of money by fraudulently offering short term investment opportunities based upon a promise of a return of the investment with substantial interest in less than 90 days.   

     The Criminal Information alleges that Stile was the purported Vice President of JFC Group and the President of Stile Consulting.  JFC Group had an office in Dickson City, Pennsylvania, and Stile Consulting had an office in Exeter, Pennsylvania.   Stile admitted today in federal court that rather than investing the money he received from investors to fund projects as promised, Stile utilized the funds for his own purposes.     

     The case was investigated by the Federal Bureau of Investigation. Prosecution has been assigned to Assistant United States Attorney John Gurganus.

     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 U.S. District Court Judge Sylvia H. Rambo ruled in favor of the Government on its request for restitution in the case against developer David R. Dodd, II.

     In her 37-page opinion filed on October 15, Judge Rambo awarded $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
City of Harrisburg, $308,328.54

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

     According to United States Attorney Peter J. Smith, Dodd 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).

     Dodd utilized a business 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 $860,454.00 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.

     Dodd pleaded guilty in November 2011 to misappropriation of funds and money laundering based on this conduct. The second indictment will be dismissed as part of the plea agreement but the court can consider the conduct underlying the dismissed charges when arriving at an appropriate sentence. A sentencing date has not been scheduled.

     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 is being prosecuted by Assistant United States Attorney William A. Behe. Support is being 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 that Kevin William Small, age 50, was sentenced today in Harrisburg by United States District Court Judge Gene E.K. Pratter to 60 months’ imprisonment and three years of supervised release for mail fraud, escape, forging judicial signatures, use of a counterfeit seal and possession of a counterfeit seal. Small was also ordered to pay a $2,500 fine.
 
     According to United States Attorney Peter J. Smith, in 2007, Small was convicted of four counts of filing false tax claims following a week-long trial before Chief District Court Judge Christopher C. Conner. Evidence presented during the trial showed that Small was a long-term state prisoner who for at least four years had filed for an income tax refund claiming that he was due a substantial tax refund. Trial evidence from 2007 also established that Small created documents to substantiate his fictitious employment and opened fraudulent bank accounts to receive the tax refunds.
 
     Judge Conner sentenced Small to serve 135 months in federal prison and directed that he begin serving this sentence after he finished serving his state sentence at Huntingdon State Prison. Small’s conviction and sentence were affirmed by appellate courts following two rounds of appeals.

     Small’s state sentence expired on January 5, 2012 and he was scheduled to be turned over to federal prison authorities on that day. However, state prison officials had received a document that purported to be signed and sealed by Judge Conner and the Clerk of Courts for the Middle District of Pennsylvania that stated that Small’s federal conviction had been vacated. As a result, Small was released on that day rather than being turned over to federal prison authorities to begin serving his federal sentence.

     The escape was discovered when a federal agent called the state prison on another matter on March 8, inquired about Small, and learned that Small had been released to the street on January 5, 2012.

     Small was located by the U.S. Marshals Service and arrested in a residence in Philadelphia in March 2012.  Many documents that appeared to be forged or fraudulent were seized from the residence at the time of his arrest, including partially-prepared court documents that purportedly freed other state prisoners.

     Small was indicted on the most recent charges in March 2012. A superseding indictment was returned in December 2012. Small pleaded guilty in May 2013.

     Judge Pratter, a federal Judge in the Eastern District of Pennsylvania, was assigned to the case because the defendant’s conduct involved forgery of the signature of a federal Judge in the Middle District of Pennsylvania.

     This case was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigations and is assigned to Assistant U.S. Attorney Christy H. Fawcett. 

Federal Cocaine Trafficking Charges

    The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 60 months in prison on the charges of conspiracy to distribute cocaine. 

     According to United States Attorney Peter J. Smith, Jhonathan Gutierrez-Esquea, age 33, formerly of Stroudsburg, Monroe County, admitted to participating in a drug-trafficking conspiracy which obtained cocaine in Texas and distributed the cocaine in the Monroe County and Northampton County areas in 2011. 

     Gutierrez-Esquea also faces deportation proceedings.

     In addition to the prison term, Senior Judge Kosik also ordered that Gutierrez-Esquea be supervised by a probation officer for two years following his prison sentence if he is not deported. 

     The investigation was conducted by the Drug Enforcement Administration, the Stroud Area Regional Police Department and the Internal Revenue Service, Criminal Investigations.

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

    
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