Middle District of Pennsylvania

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 49-year-old Dingmans Ferry resident was indicted Tuesday by a federal grand jury in Scranton for receiving and distributing child pornography.

     According to United States Attorney Peter J. Smith, Richard A. Lewis, is charged with using a computer between January and May of 2013, to receive and distribute child pornography.

     The indictment of Lewis stems from an investigation by special agents of Homeland Security Investigations and Provincial Police from Ontario, Canada.

     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.

     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 mandatory minimum penalty under the federal statute is 15 years’ imprisonment. The maximum penalty 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.

     A federal inmate was sentenced today to life in prison for the violent murder of a fellow inmate in Pennsylvania’s Allenwood Correctional Complex, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Middle District of Pennsylvania Peter J. Smith.

     Ritz D. Williams Jr., 32, of Gila River Indian Reservation, Sacaton, Ariz., pleaded guilty to one count of first degree murder and possession of a weapon on April 15, 2013.  U.S. District Court Judge Yvette Kane sentenced Williams to life without the possibility of parole on May 15, 2013, for his role in the murder of fellow inmate Alvin Allery.

     Williams and his co-conspirator Shawn Cooya were indicted by a federal grand jury in February 2008 and a superseding indictment was returned in July 2009.

     According to court documents, Williams and Cooya aided each other in the premeditated murder of Allery.  On Sept. 28, 2005, Williams and Cooya stabbed Allery 10 times with a homemade knife and repeatedly kicked him in the head and torso, which resulted in Allery’s death. 

     On Jan. 8, 2013, Cooya pleaded guilty to one count of first degree murder and was sentenced to serve life in prison on March 18, 2013.

     The case was investigated by the Bureau of Prisons and the FBI. The case was prosecuted by Assistant U.S. Attorneys Wayne P. Samuelson and Michelle Olshefski of the Middle District of Pennsylvania, Trial Attorneys Julie B. Mosley and Mike Warbel of the Criminal Division’s Capital Case Unit, and Assistant U.S. Attorney C.J. Williams of the Northern District of Iowa and formerly with the Capital Case Unit.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kirk Robinson, age 45, of Wilkes-Barre, Pennsylvania, was charged by a federal grand jury in Scranton Tuesday, with allegedly 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 allegedly conspired with others to carry firearms in connection with 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 was also charged with the involvement in an armed $17,000 bank robbery of the M&T Bank, Hanover Township, occurring on October 30, 2010. The indictment alleges that Robinson acted as a planner and getaway driver in those robberies. Additionally, the Grand Jury charged Robinson with a mail fraud scheme involving a fake jewelry robbery staged to fraudulently obtain $43,000 from an insurance company in 2009.

     The case was investigated by the FBI, and the Kingston, Hanover Township and Wilkes-Barre Police Departments. Prosecution has been assigned to Assistant United States Attorney John C. 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 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 the former football coach of Holy Redeemer High School in Wilkes-Barre was sentenced today to serve 25 years in prison by Senior United States District Court Judge Edwin M. Kosik for producing and attempting to produce child pornography, interstate extortion, and cyber stalking.

     According to United States Attorney Peter J. Smith, the defendant Joseph J. Ostrowski, previously pleaded guilty to persuading and enticing, and attempting to persuade and entice, minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, including live transmissions via webcam, and using the internet to extort and attempt to extort additional nude photographs, images and live transmissions of sexual conduct from his victims.

     Ostrowski was indicted by a federal grand jury in Scranton in May 2012 and taken into custody. He was later indicted for cyber stalking by a federal grand jury in the Western District of Michigan. That case was transferred to the Middle District of Pennsylvania for prosecution. The United States Attorney’s Office for the Middle District of Pennsylvania subsequently filed a superseding Information against Ostrowski.

     According to a summary of the Government’s evidence presented at the guilty plea hearing by Assistant United States Attorney Francis P. Sempa, Ostrowski’s production and attempted production of child pornography, interstate extortion activities and cyber stalking occurred during 2006 through May 2012, and involved victims in Pennsylvania, New York, North Carolina, California, Texas, Florida, New Jersey, Michigan, Ohio, Virginia, Minnesota, Indiana, Alabama, and Maryland. Some victims were adults; some were minors; they included students who participated in athletic programs. Ostrowski admitted that he frequently posed as students, school alumni, and other persons and used Facebook, Skype, e-mail, instant messaging, and cellular text messaging to commit the crimes.

     At the sentencing hearing today, the Government noted that Ostrowski victimized or attempted to victimize more than 60 people, used deception to compromise the Facebook and other online identities of people, and in some instances took advantage of the trust that athletes placed in him. Ostrowski was described by the Government as “the very definition of an online predator.”

     Ostrowski’s charges resulted from an investigation by the Federal Bureau of Investigation in Scranton and Michigan and the Michigan State University Police.

     Judge Kosik also ordered that Ostrowski be placed on supervised release for life following his prison sentence, pay a $1500 fine, and a $300 special assessment.

    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 United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Bethlehem man who participated in a Carbon County-based drug trafficking conspiracy, was sentenced today to serve life in prison by Senior United States District Court Judge James M. Munley.

     According to United States Attorney Peter J. Smith, the defendant Krishna Mote, age 43, was convicted after a three-day jury trial in December 2012 of conspiracy to distribute more than 280 grams of crack cocaine and more than 500 grams of cocaine, and distribution of crack cocaine as an aider and abettor.

     Mote was indicted by a federal grand jury in June 2011, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Carbon County. The drug conspiracy operated in the Lehighton and Weissport area from late 2005 through April 2007. Evidence presented at trial proved that Mote and his co-conspirators used the residences of several local drug users to distribute crack cocaine and cocaine to numerous customers.

     The court noted that Mote’s two prior drug trafficking convictions triggered a federal statute that mandated the imposition of a life sentence. Judge Munley also ordered that Mote pay a $200 special assessment.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin William Small, age 50, pleaded guilty today in Harrisburg before United States District Court Judge Gene E.K. Pratter to mail fraud, escape, forging judicial signatures, use of a counterfeit seal and possession of a counterfeit seal. A sentencing date has not been scheduled.
 
     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 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 on March 5, 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. 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.

     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 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 that a 54-year-old West Lawn, Pennsylvania resident pleaded guilty today in Scranton before Senior U.S. District Court Judge Edwin M. Kosik to participating in an Oxycontin trafficking conspiracy that operated in Schuylkill and Berks County in 2011.

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

     Nesspor was indicted by a federal grand jury in September 2011, as a result of an investigation by the Drug Enforcement Administration and the Pennsylvania State Police.

     Judge Kosik ordered a pre-sentence investigation report to be completed. Nesspor faces up to 20 years in prison and a $1 million fine. No date was set for sentencing.

     Two of Nesspor’s co-defendants previously entered guilty pleas in the case. Richard Law was sentenced to 15 months in prison. Michael Beaver pleaded guilty and is awaiting sentencing.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that three members of the Pennsylvania branch of the Almighty Renegade Gangsta (“ARG”) Bloods gang who were involved in the distribution of heroin, crack cocaine and marijuana in Columbia, Northumberland, and Luzerne Counties pleaded guilty today in federal court in Williamsport before U.S. District Court Judge Christopher C. Conner.

     Renard Durant, a/k/a “Black” and “SB,” age 27, of Bloomsburg, Shelton Cochrane, II, a/k/a “Sett,” age 37, of Mt. Carmel, and Gilberto Lanzot, Jr., a/k/a “Pops,” age 32, of Wilkes-Barre, each pleaded guilty to conspiracy to distribute heroin, crack cocaine, and marijuana. Sentencing has been scheduled for August 19, 2013.

     According to United States Attorney Peter J. Smith, Durant and Jeffrey Tripp were initially indicted in June 2012 on charges of distribution of heroin, crack cocaine, and marijuana in Northumberland and Columbia Counties.

     In December 2012, a superseding indictment was returned charging Cochrane and Lanzot for their involvement. A second superseding indictment was returned in March 2013.

     Durant, Cochrane, and Lanzot occupied positions of leadership within the Pennsylvania branch of the “ARG” Bloods operating in Columbia, Northumberland, and Luzerne Counties, Pennsylvania. Durant served as the leader of the local ARG Bloods, managing a network of approximately 10-15 gang members which included Cochrane, Lanzot, and Tripp, who distributed heroin, crack cocaine, and marijuana from various suppliers in Hazleton, Pennsylvania and New York. From July 2011 through 2013, Durant agreed with Cochrane, Lanzot, and Tripp to distribute and to possess with intent to distribute 100 grams of heroin and 112 grams of crack cocaine.   

     Co-defendant Jeffrey Tripp pleaded guilty in December 2012 and is scheduled for sentencing on June 11, 2013.    

     The case was investigated by the Pennsylvania State Police, the Columbia County Drug Task Force, and the Federal Bureau of Investigation.  Prosecution of this matter has been assigned to Assistant United States Attorney George J. Rocktashel.

     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 for each defendant 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 that a Mount Holly Springs man pled guilty in United States District Court in Harrisburg Thursday to distributing heroin that resulted in the death of a Carlisle area man.

     According to United States Attorney Peter J. Smith, Derk Roberts, age 29, of Mount Holly Springs, pled guilty before Senior U.S. District Court Judge William W. Caldwell in Harrisburg to a charge of unlawfully distributing heroin in the Cumberland County area during the period of time beginning in January of 2010 until February 9, 2011. The heroin distributed by Roberts caused the death of Joshua Michael Hamman, age 27, of Carlisle. 

     The evidence presented in court established that on February 4, 2011 at approximately 3:25 p.m. a worker at the PPG glass manufacturing facility in South Middleton Township, Cumberland County, found Hamman unconscious on the floor of a bathroom stall in the locker room/bathroom of the plant. Hamman had injected heroin and passed out. Facility staff administered CPR to Hamman until EMS personnel arrived and transported him to the Carlisle Regional Medical Center. Hamman was admitted to the ICU where on February 8, 2011 Hamman was taken off of life support and subsequently died at 8:15 pm that day.

     The Pennsylvania State Police and the Federal Bureau of Investigation conducted an investigation that established that Hamman had been in touch with Roberts the morning of February 4, 2011 via cell phone text messages. Hamman was asking the defendant if he could get heroin from Roberts later in the day. During the next few hours Hamman and Roberts exchanged text messages in which it was discussed that Roberts would be getting heroin in Maryland and would deliver it to Hamman at the PPG facility. At around 2:42 in the afternoon that day Roberts met Hamman in the PPG parking lot and provided him with several packets of heroin and then left. Hamman went back into work and into the bathroom stall where he injected the heroin and passed out. The autopsy determined that Hamman died as a result of opiate toxicity.

     Roberts was later interviewed by agents with the FBI and state police and admitted that he in fact sold Hamman the heroin on February 4, 2011. Roberts admitted that he had been selling heroin for about a year before he sold the heroin that led to Hamman’s death.

     Roberts entered into a plea agreement with the United States which, if accepted by the court, requires the court to impose a sentence of no less than 6 years nor more than 8 years imprisonment. Roberts also faces a fine of up to $1 million dollars and a supervised release term of no less than three years. A sentencing date has not been scheduled.

     The matter was investigated by the Federal Bureau of Investigation, Pennsylvania States Police and the Cumberland County Drug Task Force.

     The case was prosecuted by Assistant United States Attorney William A. Behe who is assigned to the Organized Crime Drug Enforcement Task Force.

Laundering And Harboring, Transporting, And Employing Illegal Aliens

     The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Wally Nguyen, age 48, of Danville was convicted yesterday in federal court for conspiracy to commit money laundering and to harbor, transport, and employ illegal aliens, as well as separate counts of transporting illegal aliens, harboring illegal aliens, and aiding and abetting the unlawful employment of illegal aliens.  The offenses of conviction were committed from January 2004 through January 2008.

     The jury also returned a special verdict ordering Wally Nguyen to forfeit $50,000 to the United States, as well as two properties located in Danville that were used to facilitate the crimes.

     The indictment charged that Wally Nguyen engaged in a conspiracy whereby his conduct acted to promote and conceal the profits of the underlying criminal activity.  That underlying criminal activity involved the operation of a temporary employment agency known as “H&T” which recruited, employed, transported, and harbored an illegal work force.  “H&T” provided hundreds of illegal temporary employees to various businesses throughout the Middle District of Pennsylvania over a period of several years.  In furtherance of the conspiracy, Nguyen knowingly provided housing and transportation for the illegal workers and paid the illegal work force in cash on a weekly basis.  H also engaged in a scheme to defraud the Commonwealth of Pennsylvania and the United States Government of revenue.  The scheme included the filing of false Pennsylvania tax documents and the avoidance of reporting requirements.

     Wally Nguyen faces a statutory maximum term of 25 years and fines in the amount of $750,000. A sentencing date has not been scheduled.

     The charges resulted from a joint investigation by the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Department of Labor, United States Department of Health and Human Services - Office of the Inspector General, and the Pennsylvania State Police.

     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 Dominick J. Muracco, Jr., age 60, of Scranton, Pennsylvania, pled guilty in federal court in Wilkes-Barre before Senior U.S. District Judge A. Richard Caputo to attempted income tax evasion regarding his 2008 federal income tax return. Sentencing was scheduled for August 15, 2013.

     According to United States Attorney Peter J. Smith, Muracco previously operated a business in Dunmore, Pennsylvania known as Automated Payroll and Tax Service (“APTS”) which prepared tax returns and represented taxpayers before the IRS. Muracco admitted today that he filed a false income tax return for 2008 which omitted over $125,000 in taxable income and over $31,000 in tax. Muracco also admitted that for the years 2006, 2007, 2008 and 2009, he under-reported his income by over $276,000 and his tax by over $63,000. The unreported income came primarily from fees that Muracco charged APTS clients for tax program services.

     The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.

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

     In this particular case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, restitution 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 Trevorn Renel Parkins, age 21, of Buffalo, New York, was indicted today by a federal grand jury in Harrisburg charging him with the transportation of minors and traveling with intent to engage in illicit sexual conduct.

     The case is being investigated by the Federal Bureau of Investigation, Pennsylvania State Police, the Buffalo City Police and the Buffalo District Attorney’s Office. The case is being prosecuted by 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 particular case, the maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg-based ambulance company has pleaded guilty to multiple False Statement charges related to Medicare fraud.

     Advantage Medical Transport, Inc, headquartered at 733 Fire House Lane, Harrisburg, pleaded guilty before U.S. District Court Judge Christopher C. Conner today to 14 Counts of False Statements in Health Care Matters, 18 USC 1035. Each Count is punishable by up to as much as a $500,000 fine.  Serge Sivchuk, age 27, the sole owner of Advantage, appeared in court and entered the guilty pleas on behalf of the Corporation. The Government estimated the total loss to Medicare as a result of the fraud was approximately $740,000.

     According to U.S. Attorney Peter J. Smith, Sivchuk and Advantage were indicted in January 2012 on multiple False Statement and Medicare Fraud charges. The Indictment alleged that between January of 2009 and June of 2011 Sivchuk and Advantage perpetrated a scheme to defraud Medicare by submitting hundreds of claims for the nonemergency transport of Medicare beneficiaries to and from dialysis treatment centers.  The Indictment alleged the claims were fraudulent because the patients were ambulatory and the ambulance transports were not medically necessary.

     The Indictment focused on an August 2010 audit conducted by Medicare and a June 2, 2011 search of Advantage’s business premises by federal law enforcement officers. In response to the audit Sivchuk submitted 14 ambulance Trip Sheets to Medicare that were prepared by Emergency Medical Technicians (EMTs) at the time of each ambulance transport.  The Trip Sheets contained a narrative section that described the patient’s physical condition and ability to ambulate, and serve as the primary support document for each Medicare billed, ambulance transport claim. The June 2, 2011 search by the FBI and investigators from the Health and Human Services (HHS) Inspector General’s Office revealed Sivchuk did not submit the original trip sheets to the auditors but instead submitted copies that had been re-written and forged to conceal the fact the beneficiaries were ambulatory and capable of walking and standing.

     During a February 22, 2013 court appearance before Judge Connor, Sivchuk plead guilty to one of the 14 False Statement Counts for which he was indicted, admitting he directed a subordinate to re-write and forge the signatures of two EMTs on a Trip Sheet pertaining to the ambulance transport of a dialysis treatment beneficiary on August 19, 2010. Sivchuk is currently awaiting sentencing and the completion of a pre-sentence report.

     Medicare paid Advantage approximately $166 for each leg of a transport to and from a dialysis treatment center, plus $5.49 per mile.  Many dialysis patients underwent 3 treatments per week. Thus, one week’s transport of just one dialysis patient would yield Advantage more than $1,000.

     Under the terms of Advantage’s plea agreement Judge Conner will determine the overall loss to Medicare.  During the guilty plea proceeding Assistant U.S. Attorney Kim Douglas Daniel told the Court the government intends to show during the loss hearing that the total loss to Medicare was approximately $740,000.  Daniel also noted that at the time the investigators executed the June 2, 2011 search warrant, the U.S. Attorney’s Office filed a civil action in federal court that froze more than $936,000 in Advantage and Sivchuk controlled bank accounts.

     The case is part of a priority program within the U.S. Department of Justice and the U.S. Attorney’s Office focusing on Health Care Fraud and a joint investigation by the FBI and the HHS-Office of Inspector General. Anyone with information concerning suspected health care fraud should contact the FBI at 717-232-8686.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of criminal charges Tuesday against August John Stile, Jr. age 49, of Hughestown, Pennsylvania. 

     According to United States Attorney Peter J. Smith, the Criminal Information alleges that between 2007 and January 2011, Stile devised and executed 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. Stile allegedly defrauded the investors of approximately $310,000. 

     Stile was allegedly 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 its office in Exeter, Pennsylvania. 

     The case was investigated by the Federal Bureau of Investigation. Prosecution has been 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 140 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 Thomas C. Holloway, age 46, of Mechanicsburg, Pennsylvania, pleaded guilty today before U.S. District Court Judge Christopher C. Conner to attempted income tax evasion for 2008. Sentencing has been scheduled for August 8, 2013.

     According to United States Attorney Peter J. Smith, Holloway previously was employed by Spherion (an IT firm based in Mechanicsburg and formerly known as Intellimark and Technisource) between 2001 and 2009 and embezzled company funds which were not reported on his income tax returns.  Holloway previously was charged by local authorities with theft by deception in connection with the embezzlements and was sentenced in 2010 in state court to probation and ordered to pay $125,000 in restitution to Spherion.  The current tax charges allege that the tax loss to the IRS was $80,000 for the years 2003-2009.

     The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that it has filed a civil complaint seeking a permanent injunction against an operator of an alleged fraudulent mailing scheme directed at Pennsylvania corporations and corporations in other states. It has been assigned to U.S. District Court Judge Sylvia H. Rambo.

     The civil complaint filed on April 29, 2013, alleges that Aaron Williams, of Playa Vista, CA, doing business as Pennsylvania Corporate Compliance (PCC), sent on March 22, 2013, 5,312 pieces of mail to Pennsylvania businesses.  The mailings urged the businesses to file information and send payment of $125.00 by April 5, 2013 to maintain proper records. 

     According to United States Attorney Peter J. Smith, the mailings included one page of instructions to complete an annual disclosure statement form, a one page annual meeting disclosure statement with a request reply by April 5, 2013, and a return envelope directing the mail to PCC with a mailing address of 4075 Linglestown Road #120, Harrisburg PA. 

     The annual disclosure statement stated “failure to comply with certain requirements could cause your corporation to lose its limited liability status . . . . Companies that do not satisfy certain state requirements may forfeit the limited liability protection provided to owners, and could face administrative dissolution or revocation of the entity status by that state should the integrity of the corporation become questionable.”  Additionally, the annual disclosure statement provides that PCC “assist[s] corporations to avoid potential non-compliance with the [Pennsylvania Business Code] of maintaining Annual Meeting Minutes.” 

     Businesses receiving the mailing reasonably believed that PCC is a state agency, completion and submission of the annual meeting disclosure statement is required by the Commonwealth, and they are required to pay the $125.00 fee. 

     In fact, corporations or limited liability companies registered with the Commonwealth of Pennsylvania are not required to file corporate or annual meeting minutes and are not required to pay the $125.00 fee. 

     The Pennsylvania Department of State has issued a consumer alert regarding the PCC scam on its website. 

     Similar mailings in other states have resulted in a cease and desist order against Williams doing business as Indiana Corporate Compliance Business Service Division, Illinois Corporate Compliance Business Services Division, and Ohio Corporate Compliance Business Services Division. The Wyoming Secretary of State has issued a cease and desist letter to Aaron Williams doing business as Wyoming Corporate Compliance. 

     On April 19, 2013, 3,450 pieces of mail were presented on behalf of Rhode Island Corporate Compliance, 68 Dorrance St. STE 119, Providence, RI 02903-2210 to the United States Postal Service.  These mailings are also believed to be part of Williams’ fraudulent scheme. 

     Williams’ continued misrepresentations and misuse of the mail are not in the public interest and undermine the State’s ability to collect legitimate fees. Thus, the United States Attorney’s Office has sought to permanently enjoin Williams from such fraudulent activities anywhere in the United States.

     This matter is being litigated by Assistant United States Attorneys Melissa A. Swauger and Timothy S. Judge.  The case stems from an investigation conducted by the Harrisburg office of the United States Postal Inspection Service.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that an operator of an illegal alien employment business in Scranton was sentenced Thursday in federal court before Senior U.S. District Court Judge A. Richard Caputo.

     Rama Putra, age 32, residing in Scranton, was sentenced to 12 months’ imprisonment. Putra also faces possible deportation.

     According to United States Attorney Peter J. Smith, Putra engaged in a conspiracy to promote and conceal the profits of a temporary employment agency known as “H&Y Staffing, Inc.” operating out of a Scranton address which recruited, employed, and transported an illegal work force. “H&Y Staffing, Inc.” provided dozens of illegal temporary employees to businesses in the Scranton area over a period of several years. Putra, in furtherance of the conspiracy, allegedly provided transportation for the illegal workers, paid the illegal work force in cash on a weekly basis, and cashed checks from local businesses at check cashing services located in Philadelphia as part of the scheme to conceal and promote the underlying criminal activity.

     Putra was indicted in October 2012 and pleaded guilty in January 2013 to conspiracy to commit money laundering and the employment and transportation of illegal aliens. 

     The case was investigated by the U.S. Department of Homeland Security - Immigration and Customs Enforcement and the Pennsylvania State Police.

     Prosecution was assigned to Assistant United States Attorney Michelle Olshefski.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 33-year-old Nicholson resident pleaded guilty today before U.S. District Court Judge Robert D. Mariani to producing and attempting to produce child pornography.

     According to United States Attorney Peter J. Smith, Alfred Kenvyn admitted to persuading a nine-year-old girl to engage in sexually explicit conduct on an X-box web cam session between July and September 2012, and admitted to attempting to persuade an 11-year-old girl to engage in similar conduct in early 2012.

     The charge against Kenvyn resulted from an investigation by the Federal Bureau of Investigation and the Blooming Grove, New York Police Department.

     Under the terms of the plea agreement that was filed in the case, prosecutors and the defendant have agreed to recommend that Kenvyn be sentenced to 13 years in prison to be followed by supervised release for life. Sentencing will take place in July 2013.  Kenvyn remains in prison while awaiting 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 35-year-old Mexican national who resided in the Reading area at the time of his arrest was sentenced to serve 10 years in prison for participating in a drug trafficking conspiracy by Senior U.S. District Court Judge A. Richard Caputo.
 
     According to United States Attorney Peter J. Smith, Jose Luis Sandoval-Martinez previously pleaded guilty to conspiracy to distribute more than five kilograms of cocaine and more than 500 grams of methamphetamine. The drug conspiracy operated in the Schuylkill and Berks County area between August and November 2011. Sandoval-Martinez was indicted by a federal grand jury in November 2011, as a result of an investigation by the Drug Enforcement Administration.

     Judge Caputo also ordered that Sandoval-Martinez be placed on five years of supervised release after serving his prison sentence, and pay a $100 special assessment. Sandoval-Martinez also faces possible deportation as a result of his conviction.

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

     The United States Attorney's Office for the Middle District of Pennsylvania announced that Senior United States District Court Judge Edwin M. Kosik sentenced Richard A. Burgio, age 50, of Pittston, Pennsylvania, Tuesday to 18 months’ imprisonment for distributing cocaine on numerous occasions between 2010 and April 18, 2012, in Luzerne County.   
    
     United States Attorney Peter J. Smith noted that in additional to the 18-month term of imprisonment, Judge Kosik also ordered that Burgio be placed on supervised release for a period of two years following the service of his sentence.

     The case was investigated by special agents of 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 more charges were filed today against two men accused of participating in a murder-for-hire scheme.

     According to United States Attorney Peter J. Smith, a federal grand jury returned separate superseding indictments against Edward McLaughlin, of Florida and Gary Williams, of Scranton, related to an alleged conspiracy to murder McLaughlin’s ex-wife.

     One superseding indictment charges McLaughlin with conspiracy to commit a murder-for-hire; two counts of solicitation to commit a crime of violence; possessing a firearm in furtherance of a crime of violence; unlawfully shipping a firearm and ammunition as a convicted felon; unlawfully transferring a firearm to be used in a violent crime; unlawfully shipping a firearm to commit a felony offense; and unlawfully transporting a firearm in interstate commerce.

     The second indictment charges Williams with conspiracy to commit a murder-for-hire; possessing a firearm in furtherance of a violent crime; receiving a firearm with the intent to commit a felony offense; unlawfully possessing a firearm as a convicted felon; and attempting to tamper with a witness.

     McLaughlin was originally indicted in July 2012. The charges resulted from an investigation by the Federal Bureau of Investigation and the Scranton Police Department. The cases are assigned to Senior U.S. District Judge A. Richard Caputo who ordered that the defendants be charged separately.

     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 these particular cases, both defendants face a mandatory minimum of five years imprisonment. 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 Northampton County man was sentenced today in Harrisburg before U.S. District Court Judge Christopher C. Conner for attempting to entice a minor to produce child pornography.

     Alan Stroppa was sentenced to an 18-month term of imprisonment, 10 years of supervised release and a $100 fine.

     According to United States Attorney Peter J. Smith, in January 2012, Stroppa, age 46, of Bath, Pennsylvania, began communicating with an undercover United States Postal Inspector in Harrisburg who presented himself online as a 12-year-old girl. For several months Stroppa regularly communicated via the internet and text messages with the “girl.” Stroppa attempted to entice the “girl” to produce a sexually explicit video and photographs of herself. Pursuant to Stroppa’s requests, the purported videos were sent through the mail to a Northampton business.  On June 14, 2012, Stroppa accepted the package when delivered and was arrested shortly thereafter by federal and local law enforcement.

     Stroppa was indicted in July 2012 and pleaded guilty in November 2012.

     The case was investigated by the United States Postal Inspection Service with the assistance of the Office of Homeland Security Investigations and Northampton Police Department. Assistant United States Attorney Michael A. Consiglio prosecuted the case.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Mechanicsburg doctor and owner of two Central Pennsylvania medical facilities pleaded guilty today in federal court in Harrisburg before U.S. District Judge Christopher C. Conner.

     According to United States Attorney Peter J. Smith, Dr. Timothy Clark, age 44, is a medical doctor and pulmonologist and the sole owner of Central Pennsylvania Pulmonary Associates(CPPA) and Sleep Disorder Centers of Central Pennsylvania. In June 2012 and again in July, Clark was indicted by a federal grand jury in Harrisburg in separate indictments. 

     In June 2012, Clark was indicted on charges that from July 2010 through December 2011, as the owner of CPPA, and the trustee of the CPPA employee 401(k) Plan, he withheld employee 401(k) contributions and failed to deposit the withheld funds into their 401(k) Plan. Clark instead maintained the employee 401(k) contributions in bank accounts he controlled. Clark’s employees lost approximately $25,000 of their retirement funds.   

     In July 2012, Clark was indicted on charges that from December 2007 through September 26, 2008, Clark, who provided critical care services to patients of Holy Spirit Hospital, intentionally inflated the amount of time the healthcare providers he employed spent with each patient, thereby fraudulently inflating the health insurance claims Clark submitted to Medicare, Highmark, Inc., and Capital Blue Cross.  The dollar amount of the fraudulent claims exceeded $500,000. In the indictment’s six money laundering counts, Clark was charged with transferring approximately $103,000 obtained through the healthcare fraud to CPPA payroll and money market accounts.

     Today, Clark pleaded guilty to embezzlement from an employee benefit plan, executing a scheme to defraud healthcare benefit programs in connection with the delivery and payment of healthcare benefits and money laundering.

     Clark is scheduled for sentencing on July 29, 2013.

     The case involving the embezzlement from an employee benefit plan was investigated by the United States Department of Labor, Employee Benefits Security Administration, the United States Department of Labor, Office of Inspector General, the United States Department of Health and Human Service, Office of Inspector General, and the Federal Bureau of Investigation.

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Karree Isiah Pitts, the man allegedly responsible for the robbery at the Fulton Bank in Cleona was charged in an indictment.

     According to United States Attorney Peter J. Smith, on February 27, 2013, the Fulton Bank located at 433 West Penn Avenue in Cleona, Pennsylvania was robbed and $2,790 was stolen from the bank. A federal grand jury in Harrisburg returned an indictment Wednesday charging Karree Isiah Pitts, age 22, of Lebanon, with bank robbery.

     This case was investigated by the Federal Bureau of Investigation and the Cleona Police Department. Prosecution has been 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 particular 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 Joseph M. Yesvetz, age 57, of Hazleton, Pennsylvania, pled guilty in federal court today in Scranton before U.S. District Judge Robert D. Mariani to making a false claim for benefits under the Department of Labor’s Energy Employees Occupational Illness Compensation Program (EEOICP).

     According to United States Attorney Peter J. Smith, EEOICP is meant to compensate individuals who suffer work-related health conditions due to exposure to toxic substances in the work place. Yesvetz filed a claim on behalf of his father who died in 2001 after working at a beryllium plant and who allegedly suffered from chronic beryllium disease. Yesvetz admitted that he lied on the claim form by failing to report his prior conviction in 2008 for mail fraud in connection with his receipt of over $88,000 in Pennsylvania state workers’ compensation benefits meant for his deceased father. Yesvetz received $150,000 in April 2012 as a result of his false claim under the EEOICP.

     The case was investigated by the Department of Labor Inspector General’s Office and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.

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

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

     The United States Attorney's Office for the Middle District of Pennsylvania announced that Senior United States District Court Judge Edwin M. Kosik today sentenced Kevin Andre Parks, age 41, of Hazleton, Pennsylvania, to 60 months’ imprisonment for the September 7, 2012, robbery of the First National Community Bank, located at 340 West Broad Street, Hazleton, Pennsylvania. 
    
     According to United States Attorney Peter J. Smith, in robbing the bank, Parks stated to one of the tellers "Give me all your cash, I have a gun” and then patted his right pants pocket.  Thereafter, Parks fled to Scranton where he was arrested and found in possession of $3,199 in bank robbery proceeds. Parks did not possess a weapon at the time of his arrest.

     In addition to the 60-month term of imprisonment, Judge Kosik also ordered that Parks be placed on supervised release for a period of three years following the service of his sentence.

     The case was investigated by special agents of the Federal Bureau of Investigation, Scranton Police Department, and the Hazleton Police Department.  Assistant United States Attorney John Gurganus prosecuted the case.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Harrisburg man faces at least 20 years and up to life imprisonment after his conviction last week on federal drug trafficking charges.

    According to United States Attorney Peter J. Smith, Damien Hammonds, age 28, of Harrisburg, was convicted by a jury in United States District Court in Harrisburg following a weeklong trial before U.S. District Judge Christopher C. Conner on charges of unlawfully distributing cocaine base, also known as crack, as well as cocaine hydrochloride. The jury also held that the amount of crack cocaine involved was at least 280 grams plus at least half a kilogram of cocaine hydrochloride.

    The evidence showed that Hammonds sold crack cocaine and also supplied co-conspirator Michael Hansley, also of Harrisburg, with multiple ounces of cocaine hydrochloride on a weekly basis which Hansley would convert into crack and then distribute through individuals working with and for him.

     Hansley previously pleaded guilty and is awaiting sentencing on May 23, 2013.

     Hammonds was stopped at the airport in San Juan, Puerto Rico in June 2010 and found to have approximately $22,000 in U.S. currency hidden on his person and in his luggage. Hammonds was in Puerto Rico to purchase a kilogram of cocaine from a source of supply located there.

     The evidence also showed that in April 2011 Hammonds sold two ounces of crack cocaine to an individual who was assisting the Drug Enforcement Administration and the Dauphin County Drug Task Force. That sale was under surveillance by those agencies and was subject to both audio and video recording.  

     Hammonds was indicted in May 2011. A sentencing date has not been scheduled.

     The case was investigated by the Drug Enforcement Administration’s Harrisburg Resident Office, the Pennsylvania Attorney General’s Bureau of Narcotics Investigation and the Dauphin County Drug Task Force.

     Assistant United States Attorney William A. Behe prosecuted the case for the United States.

     A federal inmate pleaded guilty today for the violent murder of a fellow inmate in Pennsylvania’s Allenwood Correctional Complex, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Middle District of Pennsylvania Peter J. Smith.
 
     Ritz D. Williams Jr., 32, of Gila River Indian Reservation, Sacaton, Ariz., pleaded guilty before Chief U.S. District Judge Yvette Kane to one count of first degree murder and possession of a weapon.
 
     Williams and his co-conspirator Shawn Cooya were indicted by a federal grand jury in February 2008 and a superseding indictment was returned in July 2009.
 
     According to court documents, Williams and Cooya aided each other in the premeditated murder of inmate Alvin Allery.  On Sept. 28, 2005, Williams and Cooya stabbed Allery 10 times with a homemade knife and repeatedly kicked him in the head and torso, which resulted in Allery’s death.
 
        On Jan. 8, 2013, Cooya pleaded guilty to one count of first degree murder.  On March 18, 2013, he was sentenced to serve life in prison without the possibility of parole.
 
     As a result of Williams’s plea, he faces a mandatory sentence of life in prison.  His sentencing has been scheduled for May 15, 2013, in the Middle District of Pennsylvania.
 
     The case is being prosecuted by Assistant U.S. Attorneys Wayne P. Samuelson and Michelle Olshefski of the Middle District of Pennsylvania and Trial Attorneys Julie B. Mosley and Mike Warbel of the Criminal Division’s Capital Case Unit (CCU) and former CCU Trial Attorney C.J. Williams.  The case was investigated by the Bureau of Prisons and the FBI.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christine Tufts, age 43, of Virginia, has agreed to plead guilty to mail fraud. Tufts was indicted by a federal grand jury in Scranton on August 14, 2012.

     According to U.S. Attorney Peter J. Smith, Tufts was the owner of Foremost Settlement Services, Inc., which had an office in Moosic, PA.  Tufts was an agent of First American Title Insurance Company.  The indictment charged that from 2006 to 2008, Tufts issued title insurance on behalf of First American to clients who owned properties in Lackawanna and Luzerne Counties.  The clients took out mortgages to pay off prior mortgages or other loans.

     Tufts allegedly falsely represented to First American that the proceeds of the mortgage funds were being used to pay off the prior mortgages or other loans when, in fact, she allegedly kept the money for herself.

     The plea agreement was filed with the court on April 5. The case is assigned to U.S. District Court Judge Richard P. Conaboy.

     The case was investigated by the Federal Bureau of Investigation and the prosecution is assigned to Assistant U.S. Attorney Lorna Graham.

     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 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 Tristan Green, age 28, of York, Pennsylvania, was sentenced April 4 by U.S. District Court Judge Christopher C. Conner to a 360-month (30 years) term of imprisonment for the armed robbery of the Fulton Bank in Etters, Pennsylvania. Judge Conner also ordered that Green serve three years of supervised release and pay $13,761 in restitution.

     According to United States Attorney Peter J. Smith, on September 16, 2011, the Fulton Bank located at 2220 Old Trail Road, Etters, Pennsylvania, was robbed at gunpoint and over $13,000 was stolen from the bank.

     Green, and co-defendant, Willie Elmore, of Brooklyn, New York, were indicted in December 2011 on charges of armed bank robbery and possession of a firearm in furtherance of a crime of violence.

     In August 2012, following a four-day trial, Elmore and Green were convicted for the armed robbery of the Fulton Bank.

     Elmore was sentenced in February 2013 to a 168-month term of imprisonment. Elmore was also ordered to pay $13,761 in restitution which will be paid jointly with Green.

     Green faces additional prison terms associated with the robberies of three other banks. In January 2013, a jury returned a guilty verdict on armed robbery charges associated with the robbery of the Sovereign Bank, 1442 Bannister Street, York, PA; the Heritage Valley Credit Union, 777 Kings Mill Road, York, PA; and the Sovereign Bank, 519 South 29th Street, Harrisburg, PA. The maximum penalty under the federal statute is life imprisonment. Green faces a mandatory minimum of 900 months imprisonment. A sentencing date has not been scheduled.

     This case was investigated by the Federal Bureau of Investigation, Capital City Safe Streets Task Force; Pennsylvania State Police; York City Police Department; Newberry Township Police Department; Springettsbury Township Police Department; Hellam Township Police Department; Northern York County Regional Police Department and the York County District Attorney’s Office Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Schmutzler, of Fayettesville, Pennsylvania, was indicted Wednesday by a federal grand jury in Harrisburg for receipt and possession of child pornography.

     According to United States Attorney Peter J. Smith, Schmutzler, a former teacher at Chambersburg Area School District, was arrested on March 21, following charges filed in a Criminal Complaint. He remains in custody.

     At this point in the investigation, the U.S. Attorney’s Office has no evidence that any female students were involved or that there was any unlawful physical contact with any students.

     Anyone with information related to this matter should please contact United States Postal Inspector Michael Corricelli at 717-257-5581.

     If you feel you are a victim and need assistance please contact the Victim/Witness Coordinator for the Middle District of Pennsylvania Laurie A. Riley at 717-221-4482 or 1-866-673-7340.

     The case is being investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s(ICE) Homeland Security Investigations(HSI) and the Pennsylvania State Police. The prosecutor assigned to the case is 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 particular case, the mandatory minimum penalty is five years’ imprisonment. The maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

     The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement, announced today that a 31- year-old native and citizen of Mexico has been charged with Illegal Reentry into the United States.

     According to United States Attorney Peter J. Smith, Navor Silva-Garcia, age 31, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg Wednesday.

     The indictment alleges that Silva-Garcia, an alien who was convicted on March 19, 2012, of Unlawful Restraint, was previously arrested and deported from the United States on April 13, 2012, did knowingly and unlawfully re-enter the United States. He was located by federal immigration agents in Dauphin County, Pennsylvania.

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

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

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

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

Pay Government $1,029,791 To ResolveAlleged Improper Medicare Claims

     The United States Attorney's Office for the Middle District of Pennsylvania announced that the St. Luke’s University Health Network has agreed to pay the United States $1,029,791 to resolve allegations that it erroneously submitted improper claims to the Medicare program.  St. Luke’s University Health Network owns and operates St. Luke’s Hospital of Bethlehem, St. Luke’s Quakertown Hospital, and St. Luke’s Miners Memorial Hospital.

     According to United States Attorney Peter J. Smith, St. Luke’s University Health Network has agreed to pay $1,029,791 to resolve allegations that from January 1, 2002, through June 30, 2012, its hospitals erroneously submitted claims to the Medicare program for payment that contained evaluation and management services that were not allowable under Medicare.

     Medicare does not normally allow additional payments for such services performed by a provider on the same day as a procedure, unless the service is significant, separately identifiable, and above and beyond the usual preoperative and postoperative care associated with the procedure.  In such cases, an attachment to the claim, known as "Modifier 25," may be submitted to allow the additional payment.

     In this matter, the government determined that St. Luke’s hospitals incorrectly attached Modifier 25 to Medicare claims that led Medicare to pay the hospitals for evaluation and management services that were not significant and separately identifiable from the underlying procedures for which Medicare also made payments.

     The Harrisburg Office of the U.S. Attorney’s Office had jurisdiction because Medicare provider claims are processed by Novitas Solutions, Inc., formerly Highmark Medicare Services, in Camp Hill, Pennsylvania.  The U.S. Attorney’s Office for the Eastern District of Pennsylvania cooperated in this matter.

     The case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General in Harrisburg and handled by D. Brian Simpson, of the United States Attorney's Office, Civil Division.

To Resolve Allegation Of Improper Medicare Claims

     The United States Attorney's Office for the Middle District of Pennsylvania announced that Easton Hospital has agreed to pay the United States $454,866 to resolve allegations that it submitted improper claims to the Medicare program.  Easton Hospital is a subsidiary of Community Health Systems and is located in Easton, Pennsylvania. 

     According to United States Attorney Peter J. Smith, Easton Hospital has agreed to pay $454,866 to resolve allegations that from January 1, 2004, through May 28, 2009, Easton Hospital improperly submitted claims to the Medicare program for payment that contained evaluation and management services that were not allowable under Medicare.

     Medicare does not normally allow additional payments for such services performed by a provider on the same day as a procedure, unless the service is significant, separately identifiable, and above and beyond the usual preoperative and postoperative care associated with the procedure.  In such cases, an attachment to the claim, known as "Modifier 25," may be submitted to allow the additional payment.

     In this matter, the government determined that Easton Hospital incorrectly attached Modifier 25 to Medicare claims that led Medicare to pay the hospital for evaluation and management services that were not significant and separately identifiable from the underlying procedure for which Medicare also paid the hospital.

     The U.S. Attorney’s Office acknowledged and Easton Hospital’s cooperation and remedial action which helped to resolve the matter.  After the Government contacted Easton Hospital concerning improper Modifier 25 claims, the hospital conducted an internal review to determine what caused the improper claims to be submitted to the Medicare program and took action to increase medical coding training and bolster its compliance program.  

     The Harrisburg Office of the U.S. Attorney’s Office had jurisdiction because Medicare provider claims are processed by Novitas Solutions, Inc., formerly Highmark Medicare Services, in Camp Hill, Pennsylvania.  The U.S. Attorney’s Office for the Eastern District of Pennsylvania cooperated in this matter.

     The case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General, in Harrisburg and handled by D. Brian Simpson, of the United States Attorney's Office, Civil Division.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Caitlin Lucille Walls Smith, age 37, formerly of Wilmington, NC, was sentenced on March 28 by U.S. District Court Judge Sylvia H. Rambo to a 30-month term of imprisonment and three years of supervised release. Judge Rambo further ordered that Smith pay $437,000 in restitution.

     Caitlin Smith was indicted in February 2012 with violations of the federal wire fraud statute. She pleaded guilty in November 2012.

     According to United States Attorney Peter J. Smith, Caitlin Smith was a high school graduate who never completed her college education. In July 2008, she applied for a position as an officer in the nuclear program of the United States Navy.

     In her application and in subsequent interviews, questionnaires and other documents, Smith falsely represented that she had a Bachelor of Science degree from the University of North Carolina, a Masters of Science in Chemistry from Duke University, a Doctor of Philosophy in Chemical Engineering and a Doctor of Philosophy in Environmental Engineering from the University of Delaware. She had never been awarded any of these degrees by any of the institutions.

     Smith was accepted into the Navy nuclear program with the rank of Ensign.  Using her fraudulently-acquired military status, she applied for a U.S. Department of Veterans Affairs-backed loan in September 2010 by calling PNC Bank in Newark, Delaware, for the purpose of purchasing a property in York County, Pennsylvania.

     As part of the loan application process, Smith submitted forged and fraudulent bank statements and documents purporting to be from the United States Navy confirming her actual and anticipated income and assets.  Smith also submitted a forged and fraudulent lease agreement purporting to have been signed by herself and a third party to demonstrate that her property in Delaware had been leased and was therefore not a liability to the defendant or to PNC Bank.  The loan was backed by the Department of Veterans Affairs under its Loan Guarantee Program.

     In November 2010, PNC Bank approved Smith’s loan based on the forged and fraudulent bank statements and documents purporting to be from the United States Navy confirming her actual and anticipated income and assets and wire transferred the loan amount of $437,423.92 from Kentucky to the defendant’s title company account at Metro Bank in Lemoyne, Pennsylvania.  The fraudulently-acquired funds were used by the defendant to acquire the York County property.

     In 2010, Smith was court-martialed by the Navy for false representations relating to her enlistment.

     The case was investigated by the Office of the Inspector General for the U.S. Department of Veterans Affairs and the Naval Criminal Investigative Service. The case was prosecuted by Assistant U.S. Attorney Gordon Zubrod.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brian Edward Kelson, Jr., age 21, of Milton, Pennsylvania was indicted Wednesday by a federal grand jury in Harrisburg charging him with two counts of producing materials involving the sexual exploitation of children and one count of possession of child pornography.

     This case is being jointly investigated by the Federal Bureau of Investigation, the Milton Police Department and the Pennsylvania State Police.  The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.

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

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

     In this particular case, the mandatory minimum penalty under the federal statute is 15 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 Carl Murphy, Jr., age 32, of Harrisburg, Pennsylvania was indicted Wednesday by a federal grand jury in Harrisburg charging him with two counts of possession of a firearm by a convicted felon.

     According to United States Attorney Peter J. Smith, the charges are the result of an on-going partnership with the Dauphin County District Attorney’s Office that was announced in August 2012 to help respond to a surge of violent crime within the city.  The charges against Murphy are a result of allegations that on both March 7, 2012, and October 13, 2012 Murphy possessed a firearm in Harrisburg, Pennsylvania after having previously been convicted of a felony crime.  The firearms were both recovered by the Harrisburg Police Bureau.

     This case is being jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Bureau.  This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.

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

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Susan Walmer, age 46, of Shiremanstown, Pennsylvania, was indicted Wednesday and charged with three counts of passport fraud.

     According to United States Attorney Peter J. Smith, in December 2007, Walmer submitted three applications for U.S. passports for her children’s behalf. With the applications, Walmer allegedly submitted a forged affidavit from her ex-husband claiming she had his permission to obtain the passports for travel to Canada.  While Susan Walmer and the children’s father shared physical custody, legal custody was provided to the father. The father did not provide permission for the children to obtain passports or leave the United States.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that more than $3 million has been presented to the Pennsylvania State Police and the Lycoming County District Attorney’s Office as their share of a forfeiture of $4.9 million in a federal criminal case.

     According to United States Attorney Peter J. Smith, during the past week the U.S. Department of Justice has begun distributing $3.2 million to the Pennsylvania State Police and $49,000 to the Lycoming County District Attorney’s Office for their contributions to the investigation and prosecution of R.S. Duffy, Inc. and National A-1 Advertising, Inc.

     In November 2011, the U.S. Attorney’s Office in Harrisburg charged Philadelphia-based corporations, R.S. Duffy, Inc. and National A-1 Advertising, Inc. with operating an internet enterprise called Escorts.com which facilitated interstate prostitution activities in violation of federal law. The corporate defendants received subscription fees and payments in the form of money orders, checks, and credit card credits, and wire transfers from users of Escorts.com throughout the nation.

     Pursuant to a plea agreement reached with the Government, National A-1 Advertising and R.S. Duffy pleaded guilty to a money laundering conspiracy charge. Under the terms of the plea agreement, the defendants agreed to the criminal forfeiture of $4.9 million in cash derived from the unlawful activity, as well as forfeiture of the domain name, Escorts.com, all of which represented property used to facilitate the commission of the offenses. A major part of the investigation was conducted with the Pennsylvania State Police.

     The case was before U.S. District Court Judge Christopher C. Conner.

     The $4.9 million forfeited in the R.S. Duffy, Inc. and National A-1 Advertising, Inc. case was distributed as part of the Department of Justice Asset Forfeiture Program.  The Program is a nationwide law enforcement program administered by the Department of Justice, the primary goals of which are (1) to punish and deter criminal activity by depriving criminals of property used or acquired through illegal activities and (2) to enhance cooperation among federal, state and local law enforcement agencies through the equitable sharing of the assets recovered.  Any law enforcement agency that directly participates in an investigation that results in a federal forfeiture may request an equitable share of the net proceeds. Sharing requests are reviewed and approved by the Department of Justice in Washington based on a consideration of the extent of participation of the requesting agency in the particular case.

     U.S. Attorney Smith noted that the Pennsylvania State Police are the frontline as well as the backbone of law enforcement throughout the state and particularly in the 33 counties that comprise the federal middle district. “The state police are true partners with federal law enforcement. We appreciate their help and diligent efforts on behalf of the citizens of Pennsylvania.”

     The case against R. S Duffy, Inc. and National A-1 Advertising, Inc. that led to the forfeiture to the United States of these assets was handled by Assistant U.S. Attorney George J. Rocktashel. Assistant U.S. Attorney and Chief of the Office’s Victim Rights and Asset Recovery Unit James T. Clancy and Assistant U.S. Attorney Amy C. Phillips handled the forfeiture.

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 today that a citizen of Mexico has been charged with Fraud and Misuse of Documents.

     According to United States Attorney Peter J. Smith, Marcos Martinez-Munoz, age 37, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg Wednesday.

     The indictment alleges that on November 25, 2012, Martinez-Munoz did knowingly possess, use, or attempt to use a fraudulent permanent resident card in Dauphin 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 Alice Song Hartye.

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

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement, announced today that a 26- year-old native and citizen of Mexico has been charged with Illegal Reentry into the United States.

     According to United States Attorney Peter J. Smith, Jose Alfredo Garcia-Zamudio, age 26, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg Wednesday.

     The indictment alleges that Garcia-Zamudio, an alien who was convicted on July 16, 2010, of Endangering the Welfare of a Child, was previously arrested and deported from the United States on May 27, 2011, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in Dauphin County, Pennsylvania.

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

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

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joanne Beers, age 58, of Monroeton, Pennsylvania, was sentenced Monday by U.S. District Court Judge Christopher C. Conner to a two-year term of imprisonment and three years of supervised release. Beers was also ordered to pay $96,185.68 in restitution.

     According to United States Attorney Peter J. Smith, Beers worked as a program specialist supervisor for the Martha Lloyd Community Services Facility, a non-profit health care provider in Troy, Pennsylvania. Martha Lloyd provides facilities, programs and services in Bradford and Tioga Counties for persons with intellectual and developmental disabilities.

     The facility receives funding from the U.S. Department of Health and Human Services and the Commonwealth of Pennsylvania through the Medicaid program. Beers was responsible for overseeing a program which housed 18 female residents.

     Without the knowledge, authorization, and approval of her employer, Beers used four Martha Lloyd credit card accounts to purchase merchandise and services for her personal use and benefit, including hair care services at a salon, video game equipment, clothing, gift cards, food, and household goods for herself and her family, and furniture, a television, and DVD player for her residence.

     Beers stole cash from Martha Lloyd accounts and submitted false purchase orders and receipts to support other petty cash and credit card account expenditures used for her personal expenses.

     Beers also transacted paychecks for developmentally and intellectually disabled residents of the facility under her supervision and used the cash to purchase gasoline, cigarettes, and other items for her own personal use and benefit.

     Beers was charged and pleaded guilty in August 2012.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 29-year-old Ukranian national who resided in the Poconos at the time of his arrest was sentenced Monday to serve 27 months in prison for access device fraud by Senior U.S. District Court Judge James M. Munley.

     According to United States Attorney Peter J. Smith, Igor Shaposhnikov, age 29, who resided in Stroudsburg, Pennsylvania, at the time of the offense, previously pleaded guilty to possessing approximately 140 counterfeit credit cards with the intent to defraud. Shaposhnikov committed the offense in June 2008.

     Shaposhnikov was indicted by a federal grand jury on June 17, 2008, as a result of an investigation by the Federal Bureau of Investigation.

     Judge Munley ordered that the 27-month prison sentence in this case run consecutive to a 102-month prison sentence imposed on Shaposhnikov in the Southern District of Florida for similar conduct committed by the defendant after he fled the Middle District of Pennsylvania while awaiting sentencing in this case.

     Judge Munley also ordered that Shaposhnikov be placed on three years of supervised release after serving his prison sentence, pay restitution of $33,814.09, pay a $100 special assessment, and forfeit to the United States $8,297 in cash, a Samsung Plasma Television, two Sony Handycams, and a 2006 Chrysler vehicle. Shaposhnikov also faces possible deportation as a result of his conviction.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton returned an indictment today charging a Schuykill County man with the production and possession of child pornography.

     According to United States Attorney Peter J. Smith, Robert Lee Raeder, Jr., age 45, of Tamaqua, Schuykill County, was charged by the grand jury for allegedly committing the offenses at various times between January 2001 through December 2012. It is alleged that Raeder produced videos and other images and then maintained them on his computer.

     The charges against Raeder stem from an investigation by the Pennsylvania State Police Computer Crimes Unit and United States Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

     Raeder is currently in custody on related state charges.

     U.S. Attorney Smith requests that anyone with information related to this matter please contact the U.S. Department of Homeland Security Tipline at 1-866-347-2423.

     This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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.

     Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

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

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

     In this particular case, the mandatory minimum penalty under the federal statute is 15 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 federal grand jury in Scranton returned an indictment today charging a Luzerne County man with the receipt, distribution and possession of child pornography.

     According to United States Attorney Peter J. Smith, Jeremy Joseph Box, age 29, of Hazleton City, Luzerne County, was charged by the grand jury for allegedly committing the offenses between 2011 and 2013.

     The charges against Box stem from an investigation by the Pennsylvania State Police Computer Crimes Unit and U.S. Immigration and Customs Enforcements (ICE) Homeland Security Investigations (HSI).

     U.S. Attorney Smith requests that anyone with information related to this matter please contact the U.S. Department of Homeland Security Tipline at 1-866-347-2423.

     Box was taken into custody on December 6, 2012 on related state charges.

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

     Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

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

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton has handed up a two count Indictment today charging Dennis Bloom, age 58, of Mount Pocono, Pennsylvania, with tax fraud. Specifically, Bloom is charged with one count of tax evasion and one count of filing a false tax return as a result of his alleged failure to include a substantial amount of income in his 2006 federal income tax return. Bloom is the former chief executive officer of the Pocono Mountain Charter School and Pastor of Shawnee Tabernacle Church, both in Mount Pocono.

     According to United States Attorney Peter J. Smith, the charges stem from an investigation initiated by the Internal Revenue Service-Criminal Investigations and the U.S. Department of Education, Office of Inspector General. Prosecution is assigned to Assistant United States Attorney Lorna N. Graham. 

     “The Role of IRS-Criminal Investigation becomes more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel,” said Akeia Conner, Special Agent in Charge of the IRS-Criminal Investigation, Philadelphia Field Office.   “As we often see, the victims are not only taxpayers but also the individuals and entities who suffer the financial harm.  Be assured that we are serious about investigating these crimes and we will vigorously pursue criminals who steal from the American taxpayer."

     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 eight 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 Jeffrey Schmutzler, of Fayettesville, Pennsylvania, was arrested today on charges of distribution and receipt of material involving the sexual exploitation of minors alleged in a Criminal Complaint filed in federal court today.

     Chambersburg school officials were notified of the arrest.

     Schmutzler is scheduled to appear before Chief Magistrate Judge Martin C. Carlson at 4:00pm today in the federal courthouse in Harrisburg.

     U.S. Attorney Smith requests that anyone with information related to this matter please contact United States Postal Inspector Michael Corricelli at 717-257-5581.

     The case is being investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s(ICE) Homeland Security Investigations(HSI) and the Pennsylvania State Police. The prosecutor assigned to the case is 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.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lloyd Hershey Wenger, Jr., age 46, of Lancaster, Pennsylvania was sentenced Tuesday by U.S. District Court Judge Sylvia H. Rambo to a 121-month term of imprisonment, followed by 20 years’ of supervised release. Judge Rambo further ordered that Wenger pay $5,000 in restitution. Wenger must also register as a sex offender.

     According to United States Attorney Peter J. Smith, Wenger had contact with an undercover FBI agent and shared numerous image files that depicted children, some as young as infants, engaged in sexually explicit conduct that he possessed. A forensic examination of Wenger’s computer revealed over 1,800 image files and over 500 video files containing child pornography.

     Wenger was indicted in February 2012 and pleaded guilty in August 2012.

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

     This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Daryl F. Bloom.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that an indictment returned on March 12, 2013 charging three Luzerne County residents with their alleged roles in a conspiracy to make straw purchases of firearms and other firearms charges, including possession of a machine gun and distribution of cocaine was unsealed Monday following their arrest.

     According to United States Attorney Peter J. Smith, Jovon Martin, age 31, of Kingston, was charged with conspiracy to make false statements in connection with the purchase of a firearm, prohibited possession of a firearm, possession of a machine gun in furtherance of drug distribution, possession of an illegal weapon (machine gun), possession of an unregistered weapon (machine gun) and possession with intent to deliver cocaine.

     Christine Hanahan, age 30, also of Kingston, was charged with unlawful transfer of a firearm to a prohibited possessor.  John Teslicko, age 50, of Larksville, was charged with conspiracy to make false statements in connection with the purchase of a firearm, false statements in connection with the purchase of a firearm, unlawful transfer of a firearm to a prohibited possessor and prohibited possession of a firearm.  The offenses allegedly occurred between March 2012 and March 2013 in Luzerne County.
The straw purchase of a firearm is the unlawful use by individuals who are unable to purchase a firearm to utilize others who do not have a criminal record to make the purchase in their own name and then transfer the firearm to the prohibited possessor.  The investigation also allegedly uncovered cocaine distribution closely related to the straw purchases.

     Martin, Hanahan and Teslicko were arraigned before Magistrate Judge Thomas Blewitt and Martin was ordered detained pending trial on May 20, 2013.  

     This case was the result of a joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kingston Police Department.

     Prosecution is assigned to Assistant United States Attorney Amy C. Phillips.

     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, Martin faces a mandatory minimum of 30 years’ imprisonment.

     The maximum penalty under the federal statute for Hanahan and Teslicko is 10 years’ imprisonment.

     All three 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.

     The United States Attorney's Office for the Middle District of Pennsylvania announced that Thomas C. Holloway, age 46, of Mechanicsburg, Pennsylvania, was charged today with attempted income tax evasion for 2008.

     A plea agreement was filed at the same time as the Information.  In it, Holloway agreed to plead guilty to the offense and pay $80,000 in restitution to the IRS.

     According to United States Attorney Peter J. Smith, Holloway previously was employed by Spherion (an IT firm based in Mechanicsburg and formerly known as Intellimark and Technisource) between 2001 and 2009 and embezzled company funds which were not reported on his income tax returns.  Holloway previously was charged by local authorities with theft by deception in connection with the embezzlements and was sentenced in 2010 in state court to probation and ordered to pay $125,000 in restitution to Spherion.  The current tax charges allege that the tax loss to the IRS was $80,000 for the years 2003-2009.

     The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.

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

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

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