Middle District of Pennsylvania

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an indictment charging four individuals with allegedly being involved in a scam to distribute misbranded drugs through businesses located in York County and conceal the unlawful profits has been unsealed.

     The indictment returned by a Harrisburg grand jury on March 8 was sealed pending the arrest of the defendants.

     According to United States Attorney Peter J. Smith, Almuntasser “Alex” Hbaiu, age 34, of Los Angeles, California, was previously charged with criminal conspiracy, delivery of misbranded drugs, receipt of misbranded drugs, and two counts of wire fraud.  On March 8, the Grand Jury returned a second superseding indictment that charged Alex Hbaiu with additional offenses of structuring financial transactions and bank fraud.

     The new indictment also charged three additional defendants.  Ahed Hbaiu, age 32, of Etters, Pennsylvania, is charged with criminal conspiracy, delivery of misbranded drugs in interstate commerce, receipt of misbranded drugs in interstate commerce, structuring financial transactions, bank fraud, and engaging in monetary transactions with criminally derived property worth more than $10,000.

     Gil Conrad Dizon, age 28, of Los Angeles, California, is charged with criminal conspiracy, delivery of misbranded drugs in interstate commerce, receipt of misbranded drugs in interstate commerce, two counts of wire fraud, and structuring financial transactions.  Christopher Mouzon, age 27, of Los Angeles, California, is charged criminal conspiracy, structuring financial transactions and perjury.

     The second superseding indictment charges that the four men were involved with various companies that sold drugs including “Mojo Nights,” “Libigrow” and “Blue Diamond” that were marketed as “all-natural” versions of sexual enhancement drugs such as Viagra.  In fact, the drugs contained sildenafil citrate, the active ingredient in Viagra, and Tadalafil, the active ingredient in Cialis.  Both are prescription drugs approved by the U.S. Food and Drug Administration for the treatment of erectile dysfunction.  The misbranded “performance enhancers” products were sold on internet web sites as well as physical locations, including a location in York County. 

     In addition, according to the second superseding indictment, the four defendants conspired to avoid the requirement that banks report cash transactions of $10,000 or more by “structuring” deposits made into various bank accounts.  The conspirators made cash deposits of less than $10,000 in their accounts as well as accounts of family members and associates and then transferred the money to accounts controlled by them, their family members, or associates.  Some of the funds “structured” in this fashion were used to pay off the mortgage on a residence at 1806 Meadow Ridge Drive, Hummelstown, Pennsylvania, which was eventually titled to Alex Hbaiu.  Other structured funds were used to fund the business operations of Caliber Investments; 1 Stop Sunoco Gas Station and Eclipse Builders, both located in located in Etters, York County.

     The second superseding indictment further charges that Ahed Hbaiu committed bank fraud by obtaining a credit card in his mother’s name and using the card to purchase construction equipment for his business, Eclipse Builders.  Ahed Hbaiu’s mother filed for bankruptcy after only a few payments were made and the credit card debt was discharged.  Ahed Hbaiu and Alex Hbaiu are also charged with obtaining credit cards in the name of an individual who is serving a sentence of life imprisonment in Florida and making false representations on credit card applications.

     The charge of engaging in monetary transactions of over $10,000 with money obtained through criminal activity stems from Ahed Hbaiu’s purchase of construction equipment with the money obtained from the bank fraud. 

     According to the allegations in the second superseding indictment, Christopher Mouzon committed perjury when he testified before the Grand Jury on October 3, 2012. 

     The second superseding indictment also seeks forfeiture of a number of bank accounts and the property at 1806 Meadow Ridge Drive, Hummelstown. 

     Ahed Hbaiu reportedly left the country last week and Dizon is purportedly in the Philippines. Warrants have been issued for their arrest.  Mouzon was arrested Wednesday in California. 

     The case was investigated by the Internal Revenue Service-Criminal Investigation, the Food and Drug Administration Office of Criminal Investigations, and the Drug Enforcement Administration.  It is assigned to Assistant U.S. Attorney Christy H. Fawcett. 

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

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that following a two-day jury trial before U.S. District Court Judge Sylvia H. Rambo, Carlos C. Hill, age 41, was convicted of possession of a firearm by a previously convicted felon. The jury returned a verdict after three hours.

     According to United States Attorney Peter J. Smith, Hill and co-defendant Elijah U. Brown, Jr., were indicted in September 2012 following stepped-up federal efforts to partner with Harrisburg police and the Dauphin County District Attorney’s Office to fight violent crime in Harrisburg. Hill and Brown were charged with possession of a firearm by a convicted felon and possession of a stolen firearm.

     The charges resulted from Hill brandishing a stolen firearm at a female victim in the 1600 Block of Park Street in Harrisburg on July 13, 2012. 

     The firearm was subsequently recovered by the Harrisburg Police Bureau.

     Hill faces a statutory minimum of 15 years imprisonment. A sentencing date for Hill has not yet been scheduled. Brown is scheduled for trial on April 1, 2013. 

     The case was investigated by ATF in coordination with the Harrisburg Police Department. Assistant U.S. Attorney Meredith A. Taylor is handled the 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 life imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

     The United States Attorney's Office for the Middle District Pennsylvania announced the indictment today by a federal grand jury in Harrisburg of Lebanon City man for child pornography offenses.

     According to United States Attorney Peter J. Smith, Howard D. Davis, age 57, is charged with allegedly enticing a fourteen-year-old to engage in sexually explicit activity and requesting that these sexual images be sent through the internet. The fourteen-year-old was, in reality, an undercover officer with the Nebraska State Police. A subsequent search warrant executed at Davis’s address uncovered a computer with alleged child pornography which Davis distributed to others over the internet.  

     The case was investigated by the United States Postal Inspectors in conjunction with the Nebraska State Police and the Pennsylvania Office of Attorney General. Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a criminal Information was filed in U.S. District Court in Scranton today against Cindy Batista, age 23, of Hazleton, Pennsylvania, charging her with passing counterfeit $100 bills.

     According to United States Attorney Peter J. Smith, Batista passed $100 bills at various businesses in Luzerne County between February 5, 2013 and February 12, 2013. 

     The case was investigated by the U.S. Secret Service and is assigned to Assistant U.S. Attorney Lorna N. Graham for prosecution.

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

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two Pennsylvania men wanted in Canada for their alleged violent acts committed at the 2010 G-20 Economic Summit held in Toronto have been extradited to face charges in Canada.

     According to United States Attorney Peter J. Smith, pursuant to an extradition treaty between the United States and Canada, Richard Dean Morano, and Kevin Chianella, both of Lackawaxen, Pennsylvania, were arrested.

     Morano was arrested, without incident, by the United States Marshals Service for the Middle District of Pennsylvania on February 21, 2013. Chianella surrendered to the United States Marshals Service on February 28.

     According to Canadian court documents, Morano, a United States citizen, is alleged to have committed riotous acts at the G-20 Economic Summit on June 26, 2010. Canadian authorities have charged Morano with Mischief over $5,000(6 counts); Intimidation of Justice System participant; Obstructing a peace officer; Assaulting a peace officer with a weapon; Mischief endangering life(3 counts); Disguise with intent to commit an indictable offense and Theft. A warrant for his arrest was issued by the City of Toronto, Province of Ontario on March 4, 2011.

     According to Canadian court documents, Chianella, a United States citizen, is alleged to have committed riotous acts at the G-20 Economic Summit on June 26, 2010. Canadian authorities have charged Chianella with Mischief over $5,000(21 counts); Attempted mischief(3 counts); Intimidation of Justice System participant(2 counts); Obstructing a peace officer; Assaulting a peace officer with a weapon; Assault with a weapon; Assault; Mischief endangering life(12 counts); Attempt mischief endangering life(2 counts); Arson; Break and enter with intent to commit an indictable offence; Disguise with intent to commit an indictable offence; and Theft(3 counts). A warrant for his arrest was issued by the City of Toronto, Province of Ontario on March 4, 2011.

     Both men waived their extradition rights and were turned over to Canadian authorities Tuesday.

     Assistant U.S. Attorney William A. Behe in the Harrisburg office of the U.S. Attorney handled the filing of the extradition complaints and compliance with the extradition treaty. Assistant U.S. Attorney Francis P. Sempa in the Scranton office of the U.S. Attorney handled the court proceedings before Chief U.S. Magistrate Judge Martin C. Carlson and U.S. Magistrate Judge Thomas M. Blewitt.

    The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ethan Nguyen, age 34, of Phoenixville, Pennsylvania was sentenced today by U.S. District Court Judge Edwin M. Kosik to a 12 month plus one-day term of imprisonment, two years of supervised release and a $300 fine. Judge Kosik further ordered that Nguyen pay $45,128 in restitution to the Pennsylvania Department of Unemployment Insurance.

     According to United States Attorney Peter J. Smith, beginning in 2007 Ethan Nguyen operated Four Seasons Services, a temporary employment agency with offices in Philadelphia, Pennsylvania, and contracted with businesses in the Scranton and Wilkes-Barre area to provide day labor employees.

     Together with co-defendants, Andri Gunawan and Eleni Nguyen, the employment agency contracted with various third party businesses to provide temporary, day labor employees. The co-defendants would fulfill these contracts by hiring illegal aliens and paying the illegal aliens cash “under the table,” failing to pay various federal, state and local taxes, fees or compensation insurance.  In this way, the temporary employment agency was able to greatly increase its profits for providing such temporary labor.

     Four Seasons Services was later changed to business names Direct Staffing Services(DSS), Express Staffing Services(ESS) and First Choice Staffing(FCS).

     Ethan Nguyen, Andri Gunawan and Eleni Nguyen were charged in separate criminal Informations. All three pleaded guilty. Eleni Nguyen is scheduled for sentencing on March 19, 2013. Gunawan is scheduled for sentencing on April 4, 2013.

     The joint investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, the Pennsylvania State Police, and United States Department of Health and Human Services. The case is assigned to Assistant United States Attorney Todd K. Hinkley.

Ammunition By A Convicted Felon And With Being A Fugitive From Justice

     The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a criminal Information has been filed against Stanley Backus, age 33, of Wilkes-Barre, Pennsylvania charging him with possession of a ammunition by a prohibited person.

     According to United States Attorney Peter J. Smith, Backus was previously convicted of four prior felonies and was wanted by Philadelphia County for a probation violation and a Meghan’s law registry violation. The offenses included the criminal Information filed Wednesday allegedly occurred in July 2011 in Wilkes-Barre, Luzerne County.

     This case was the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Wilkes-Barre and Kingston Police Departments.

     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, 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 the former Executive Director of the Northeastern Intermediate Unit #19 was sentenced today by U.S. District Court Judge Robert D. Mariani to 33 months’ imprisonment and a $30,000 fine for fraud and theft.

     Judge Mariani ordered Rosetti to make restitution to the NEIU in the amount of $137,944.13 immediately.

     During the three-hour sentencing hearing today, the court heard testimony concerning three individuals who told the FBI and investigators from the U.S. Department of Education -  Office of Inspector General that Rosetti had attempted to influence the investigation in conversations that he had with them while the investigation was underway.

     The court also heard testimony from two officials from the NEIU, Dr. Clarence Lamanna, the current Executive Director and Tom Rink, the Fiscal Director. Both men testified about the fiscal loss to the Unit caused by Rosetti’s activities and the loss of the Unit’s reputation.  

     U.S. Attorney Smith stated that, “The cooperation and support of the investigation provided by the NEIU staff members and the current officials, and especially the statements made today, showed that the vast majority of the staff of the NEIU are dedicated professionals and that Rosetti’s admitted abuse of the public trust was something that most of the staff of the NEIU had never approved or accepted.”

     The indictment returned in February 2012 alleged that between July 1, 1998 through June 30, 2010, Rosetti, age 64, Archbald, engaged in a scheme to defraud the Northeastern Intermediate Unit #19 (NEIU). The indictment charged that during his tenure as Executive Director, Rosetti fraudulently, improperly, and unlawfully converted funds and property of the NEIU for his personal benefit and for the personal benefit of his family.       

     According to the summary of the evidence presented in court and in filings by Assistant U.S. Attorney Michelle Olshefski, Rosetti directed and ordered NEIU employees to perform home maintenance services at his personal residence, personal secretarial services, personal shopping for Rosetti and his family, and to assist in the planning and preparation of Rosetti family events. 

     Rosetti created false travel vouchers and directed and ordered NEIU employees to create false travel vouchers for the benefit of Rosetti.

     Rosetti also intentionally failed to document his time-off in the form of used vacation, sick and personal days which enabled him to include all of the undocumented time-off in an accumulation of days for which he received a cash payout at the time of his retirement.

     Intermediate Units provide services and support for special education in school districts throughout the State. The NEIU supports 20 school districts in northeastern Pennsylvania.

     Rosetti pled guilty on February 7, 2013, after entering into a plea agreement with the U.S. Attorney’s Office.

     In February 2013, Judge Mariani rejected Rosetti’s binding plea agreement in which Rosetti would be sentenced to a 12-18 month range prison term. At that point, Rosetti was entitled to withdraw the plea. However, he chose not to do so.

     As a result of his activities, Rosetti has lost a substantial portion of his pension benefits as a result of an action taken last fall by the Pennsylvania School Employee Retirement System after Rosetti’s guilty plea.

     U.S. Attorney Smith noted that the discovery and exposure of Rosetti’s scheme was the result of a prompt and thorough investigation by the Pennsylvania Department of the Auditor General’s Office of Special Investigations.

     “This case is an example of how the investigating and auditing process works well when there is cooperation among government agencies,” said PA Auditor General Eugene DePasquale. “I commend the professional investigators and auditors on our staff for their diligence and hard work.”

    A joint investigation by the Federal Bureau of Investigation (FBI), and the United States Department of Education - Office of Inspector General then followed. Prosecution of the case was assigned to Assistant United States Attorney Michelle Olshefski.

     Judge Mariani ordered Rosetti to report to the Bureau of Prisons on April 4, 2013.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that podiatrist who practiced in Harrisburg and Elizabethtown was sentenced today to 16 months in federal prison for committing health care fraud.

     United States Attorney Peter J. Smith said that Dr. Michael C. Karason, 44, who now resides in Lincoln, California, previously pleaded guilty to engaging in a scheme to defraud health care benefits programs. At today’s hearing Senior District Court Judge Sylvia H. Rambo also directed that Karason pay a total of $118,072.29 in restitution to Medicare, Capital Blue Cross and Highmark and that he serve a three-year term of supervised release following his prison sentence.

     According to the charges and a summary of facts presented by Assistant U.S. Attorney Christy Fawcett, Karason maintained two offices in the Harrisburg area and an office in Elizabethtown as well as two offices in the Los Angeles, California, area.  He engaged in a pattern of billing health insurers for services in both Pennsylvania and California that were supposedly provided in both locations at the same time.  Investigators obtained travel and financial documents that established Karason was in California during time periods when he billed for services in his central Pennsylvania offices.  Some of the services billed in this manner were not provided at all; others were provided by an unlicensed office manager not authorized to perform such services.

     This case was investigated by the Office of Inspector General, U.S. Department of Health and Human Services.        

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Floyd and Susan Martin, of Shippensburg, Pennsylvania, d/b/a Chestnut Grove Kennel, entered guilty pleas today before U.S. District Court Judge John E. Jones, III, in Harrisburg. 

    Pursuant to the terms of written plea agreements, Floyd Martin entered a plea of guilty to one count of mail fraud.  Susan Martin entered a plea of guilty to one count of conspiracy.  The plea agreements also specify that Floyd and Susan Martin are jointly and severally liable for restitution in the amount of $300,000.

     The charges stem from an investigation initiated in February 2009 by the Internal Revenue Service, U.S. Department of Agriculture-Office of Inspector General, Animal & Plant Health Inspection Service, and Animal Care. According to United States Attorney Peter J. Smith, the Martins were charged with the unlawful procurement of hundreds of random sourced dogs by unnamed co-conspirators, and the subsequent resale of those dogs to medical research facilities by Floyd and Susan Martin, d/b/a Chestnut Grove Kennel.  

     The indictment alleged that the defendants conspired to circumvent federal regulations, which place limitations on the number of allowable sales of dogs, by stealing the identities of multiple individuals and falsifying federal documents.

     U.S. Attorney Smith said that activities such as those alleged in the indictment will be investigated and prosecuted by his office: “This kind of alleged conduct constitutes a cruel fraud on dog owners and mistreatment of animals as well as showing a flagrant disregard for the U. S. Department of Agriculture’s program to ensure that such animals are treated properly and safely.”

     Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

     A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. A sentencing date has not yet been scheduled.

     In this particular case, the maximum penalty under the federal statute is 20 years imprisonment for mail fraud and 5 years imprisonment for conspiracy, 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.

     Peter J. Smith, United States Attorney for the Middle District of Pennsylvania and Donald Robinson, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Philadelphia Field Division jointly announced today that U.S. Middle District Court Judge John E. Jones, III, has adopted the revocation of the Federal Firearms License (FFL) of Scott W. Taylor, d/b/a Taylor’s Trading Post, located in Biglerville, Pennsylvania.

     In early 2010, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a compliance inspection of Taylor’s business, which was operated out of his home in Biglerville, Adams County. ATF discovered that over a three-year period of time, Taylor had committed more than 10,000 violations of the Gun Control Act, which requires firearm dealers to keep detailed and timely records of the purchase and sale of firearms. Law enforcement relies on these records to apprehend criminals who use firearms to commit crimes and to ensure that firearms are not being sold to persons not authorized to possess them.

     Despite buying and selling thousands of guns over that three-year period, Taylor failed to record the purchase of 5,715 firearms, the sale of 2,856 firearms, and keep records of the disposition of 1,618 additional firearms.  About 160 of the firearms remain unaccounted for.  Taylor also admitted to possessing a firearm with an obliterated serial number, which he knew was illegal and failing to report it to law enforcement.

     As a result, in November 2011, ATF revoked Taylor’s Federal Firearms License. Taylor challenged this administrative action claiming his three-year failure to comply with the record requirements had not been willful for a variety of reasons, including that he had been ill for a period of time, the loss of a co-worker, and the crash of a computer system.

     Judge Jones adopted findings resulting from a hearing before Chief Magistrate Judge Martin C. Carlson in which the violations were determined to be willful because Taylor admitted he knew the law required him to keep the records, he had kept the records in the past, and then failed to keep the records for three years while he continued to buy and sell thousands of guns each year.

     As a result of Judge Jones’ ruling, Taylor will be no longer be able to engage in the business of dealing in firearms. ATF will establish terms to facilitate Taylor’s liquidation of his firearms inventory in a specified time period.

     This case was handled by Assistant United States Attorney Kate L. Mershimer of the Civil Division of the U.S. Attorney’s Office and ATF Associate Chief Counsel Jeffrey A. Cohen and ATF Division Counsel J. Kevin White.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of criminal charges against Frank Suriano, age 44, of Pittston, Pennsylvania, with conspiring to distribution of more than 500 grams of cocaine hydrochloride, and with distributing cocaine on numerous occasions.

     According to United States Attorney Peter J. Smith, the Indictment marks a continuation of an investigated into a Pittston area drug ring by special agents of the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. 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 60 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

Enters Guilty Plea To Charge Of Making False Statements In Connection With A Health Care Matter

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Supervisor in Middle Smithfield Township, Monroe County, pleaded guilty today before United States Magistrate Judge Thomas M. Blewitt to the charge of making false statements in connection with health care benefits.

     According to United States Attorney Peter J, Smith, Robert Spano, age 63, admitted to violating a federal statute prohibiting the making of false statements in connection with a health care matter.

     Spano was previously indicted by a grand jury in November 2011.  The indictment alleged that Spano, while he was a Supervisor and employee of Middle Smithfield Township, participated in the township’s group health benefit plan administered by Blue Cross of Northeastern Pennsylvania and in the township’s dental care benefits plan administered by United Concordia.   

     The indictment charged that Spano completed health insurance and dental insurance enrollment forms in November of 2007 in which he listed his girlfriend, referred to in the indictment as “C.B.,” as his spouse, and as having the last name “Spano,” when in fact her last name was not “Spano,” and she was not his spouse.  The indictment stated that Robert Spano was still legally married to another person and had filed for divorce from his wife in January 2011.

     As a result of Spano’s misrepresentations, Middle Smithfield Township, Blue Cross of Northeastern Pennsylvania, and United Concordia incurred expenses totaling approximately
$24,488 for medical and dental services provided to C.B. and for higher health insurance premiums between 2007 and 2010.

     The case was investigated by the Federal Bureau of Investigation and the Northeastern Pennsylvania Insurance Fraud Task Force.

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

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

     A sentencing date has not been scheduled.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that GPX/GPX, USA, a seismic surveying company based in Sealy, Texas, and its field operations supervisor, Douglas C. Wiggill, have agreed to plead guilty to federal charges involving harboring and transporting 19 illegal aliens for a project in the Williamsport, PA area.

     GPX has agreed to plead guilty to conspiracy to harbor illegal aliens. The company has agreed to forfeit $250,000 and pay a $25,000 fine. Wiggill, age 43, a Canadian citizen residing in Ft. Worth, Texas, has agreed to plead guilty to a misdemeanor violation of aiding and abetting the improper entry of aliens to the United States.

     As part of the plea agreement, GPX agreed to implement a corporate compliance program for confirming the employment eligibility and identity of all current and prospective employees.

     Both plea agreements are subject to the approval of the Court. A court date has not yet been scheduled. The case is assigned to U.S. District Court Chief Judge Yvette Kane.

     According to United States Attorney Peter J. Smith, in May 2012, a 20-count indictment was filed charging GPX/GPX, USA and Wiggill with harboring and transporting illegal aliens, and conspiracy to commit those offenses. GPX is engaged in the business of providing seismic and surface mapping surveys for the oil and gas industry.

     The indictment alleged that in May 2011 GPX and Wiggill hired 19 illegal aliens to work on a seismic surveying project in Lycoming County.  The indictment alleged that GPX and Wiggill failed to verify the immigration status of the aliens and did not prepare the required Form I-9 and supporting documentation concerning the aliens’ authorization to be in the United States. 

     According to the indictment, GPX executed a contractor compliance agreement certifying that all personnel were authorized to work legally in the United States when, in fact, they were not. On June 23 and 24, 2011, officers of the Williamsport Bureau of Police and agents of U.S. Department of Homeland Security Investigations arrested the 19 aliens employed by GPX at, or in the vicinity of, apartments rented for them in Williamsport by Wiggill and GPX. The arrests were a result of an investigation of one of the aliens by Williamsport Police.   

     The case was investigated by Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the Williamsport Bureau of Police.  Prosecution of this matter is assigned to Assistant United States Attorney George J. Rocktashel. 

     The United States Attorney’s Office for the Middle District of Pennsylvania issued the following statement concerning the death of Correctional Officer Eric Williams at the United States Penitentiary, Canaan, Pennsylvania:

     The staff at the United States Attorney’s Office for the Middle District of Pennsylvania extends its condolences to the family of Officer Williams, his coworkers and staff of the U.S. Bureau of Prisons facility at Canaan, Pennsylvania. This matter is under investigation by the FBI, with the cooperation and assistance of the Bureau of Prisons. Attorneys from the U.S. Attorney’s Office have been assigned to the matter.

     We have no further comment at this time.

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

     Serge Sivchuk, age 27, the owner of Advantage Medical Transport, Inc, headquartered at 733 Fire House Lane, Harrisburg, pleaded guilty before U.S. District Court Judge Christopher C. Conner today to one count of False Statements in Health Care Matters. The charge is punishable by up to five years imprisonment and a $1,000,000 fine.

     According to U.S. Attorney Peter J. Smith, Sivchuk was indicted in January 2011 on multiple False Statement and Medicare Fraud charges. The Indictment alleged that between January 2009 and June 2011 Sivchuk 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 provided Medicare with dozens of ambulance Trip Sheets, which are prepared by Emergency Medical Technicians (EMTs) at the time of each ambulance transport.  The Trip Sheets contain a narrative section that describes the patient’s physical condition and ability to ambulate.  The Trip Sheets serve as the primary support document for each ambulance transport claim for which Medicare was billed.

     The June 2, 2011 search by the FBI and investigators from the Health and Human Services (HHS) Inspector General’s Office revealed that Sivchuk did not submit the original trip sheets to the auditors but instead submitted copies of other trip sheets that had been re-written and forged to conceal the fact the beneficiaries were able to walk and stand.  During his court appearance before Judge Conner today, Sivchuk admitted 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.    

     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 result in Advantage being paid by Medicare more than $1,000.

     Under the terms of the 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 that the government intends to show during the loss hearing that the total loss to Medicare as the result of the fraud scheme 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 bank accounts controlled by Advantage and Sivchuk.

     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. 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 today that charges have been filed against Cheryl Cobia and Sharieff Wilkins, both of Williamsport, Pennsylvania.

     According to United States Attorney Peter J. Smith, Cobia, age 27, is charged with conspiracy to file false income tax returns claiming false refunds between 2009 and 2011. It is alleged she attempted to receive refunds totaling more than $1,000,000.  She is also charged with making false statements in applications for food stamp and medical assistance benefits. 

     Wilkins, age 35, is charged with conspiracy to submit false claims to the United States government. The charge alleges he submitted multiple false income tax returns for himself and others for tax years 2009-2011 and claimed refunds to which he was not entitled. 

     The investigations were conducted by the Internal Revenue Service, Criminal Investigation Division and the Office of Inspector General Department of Health and Human Services. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the cases.

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

* * * *

     The United States Attorney's Office for the Middle District of Pennsylvania announced that a former correctional officer at the United States Penitentiary-Lewisburg pleaded guilty today to a charge of theft of government property in federal court in Williamsport before U.S. District Court Judge Christopher C. Conner.

     According to United States Attorney Peter J. Smith, a criminal Information was filed in January 2013 charging Fred Hagenbuch, age 52, of Danville, Pennsylvania, with theft of government property. The property stolen was from the Federal Correctional Complex at Allenwood and included electrical conduit, fence post, and mesh fencing valued at approximately $1,545.  At the time of the theft in December 2010, Hagenbuch was employed as a Senior Officer Specialist at the Lewisburg Penitentiary.

     This case was investigated by the U.S. Department of Justice's Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney William Simmers.

     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 Maurice Lebron Davis, age 39, of Brooklyn, New York, was indicted today by a federal grand jury in Harrisburg. The indictment charges Davis with 10 counts of Interference with Commerce by Robbery.

     According to United States Attorney Peter J. Smith, the charges against Davis are a result of allegations that Davis, and others, broke into and robbed or attempted to rob 10 fast food restaurants in Cumberland, Dauphin and York counties between December 2011 and February 2012. The restaurants include:

-Chick-fil-A, 6416 Carlisle Pike, Mechanicsburg, PA; -Wendy’s, 3465 Simpson Ferry Road, Camp Hill, PA; -Wendy’s, 427 N. 21st Street, Camp Hill, PA; -Burger King, 3253 Paxton Street, Harrisburg, PA; -Wendy’s, 2 Old Mill Road, Dillsburg, PA; -Wendy’s, 71 S. Conestoga Drive, Shippensburg, PA; -Burger King, 2000 N. Cameron Street, Harrisburg, PA; -Wendy’s, 331 S. Hanover Street, Carlisle, PA; -McDonald’s, 1176 Harrisburg Pike, Carlisle, PA; and
-Arby’s, 240 Cumberland Parkway, Mechanicsburg, PA

     Davis was arrested by Upper Allen Township Police on February 24, 2012.

     These cases were investigated by the Federal Bureau of Investigation, the Pennsylvania State Police and the police departments of Upper Allen Township, Middlesex Township, Harrisburg, Carroll Township, Swatara Township, Lower Allen Township and Silver Spring Township.  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 maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a New York City man pleaded guilty Tuesday before Senior United States District Judge A. Richard Caputo to the charge of conspiracy to pass counterfeit United States currency.

     According to United States Attorney Peter J. Smith, John Roldan, age 48, of Queens, New York, admitted to participating in a conspiracy to pass counterfeit United States currency in the Monroe County area.  Roldan and another individual, Maribel Vasquez, age 46, also of Queens, New York, were arrested after an incident in April 2011 in which Roldan and Vasquez each used a counterfeit $100 bill to purchase merchandise at the Target store located in Stroudsburg, Monroe County.  Officers from the Stroud Regional Police Department later conducted a traffic stop of the vehicle in which Roldan and Vazquez were traveling and seized approximately $7,000 in counterfeit United States currency.

     The case was investigated by the Stroud Regional Police Department, the United States Secret Service, and Target store security personnel.

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

     In this particular case, the maximum penalty under the federal statute is 5 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs.  For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

     The United States Attorney's Office for the Middle District Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment today charging a Camp Hill marijuana trafficker. 

     According to United States Attorney Peter J. Smith, Andrew Angle, age 25, is charged with conspiracy to distribute marijuana and money laundering. The Government is also seeking the forfeiture of approximately $85,000 in drug proceeds seized from a bank account, safe deposit box, and locations affiliated with Angle.

     The case was investigated by the Drug Enforcement Administration, Dauphin County Drug Task Force, and the Cumberland County Drug Task Force. Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.

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

Child Pornography

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 33-year-old Nicholson resident has been charged with producing and attempting to produce child pornography.

     According to United States Attorney Peter J. Smith, an Information was filed Wednesday alleging that Alfred Kenvyn persuaded a nine-year-old girl to engage in sexually explicit conduct on a web cam between July and September 2012.

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

     In a plea agreement that was also filed in the case, Kenvyn has agreed to plead guilty to the charge and prosecutors have agreed to recommend that Kenvyn be sentenced to 13 years in prison to be followed by supervised release for life.

     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.

     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 Willie Elmore, age 43, of Brooklyn, New York was sentenced Wednesday by U.S. District Court Judge Christopher C. Conner to a 168-month (14 years) term of imprisonment for the armed robbery of the Fulton Bank in Etters, Pennsylvania. Judge Conner included an enhancement to the prison sentence for obstruction of justice.

     Elmore was further ordered to pay $13,781 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, Pennsylvania, was robbed at gunpoint and over $13,000 was stolen from the bank.

     Elmore, and co-defendant, Tristan Green, of York, Pennsylvania, were both 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.

     Green is scheduled to be sentenced on April 1, 2013.

     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.

To Federal Cocaine Trafficking Charges

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

     According to United States Attorney Peter J. Smith, Victoria Ann Argott, age 34, of Lansford, Carbon County, admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January 2011 and December 2012.

     Previously, Bonnie Vosburgh, age 22, of Nesquehoning, Carbon County, entered a guilty plea and admitted to participating in the same cocaine trafficking conspiracy.

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

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that today a Grand Jury in Scranton has returned an indictment charging Lackawanna County Attorney Danielle Ross Pietralczyk, age 37, of Jermyn, Pennsylvania with two counts of tax evasion and two counts of filing a false federal income tax return.

     According to United States Attorney Peter J. Smith, the indictment alleges that tax returns verified by Ross under penalty of perjury failed to report any amounts of income she received from private paying clients while acting as the sole guardian ad litem for the Lackawanna County Family Court.  It is alleged that the only income Ross reported for 2009 and 2010 was her County compensation reported on 1099 Forms which she received as an independent contractor hired by Lackawanna County.

     The indictment charges that as the sole guardian ad litem for the Lackawanna County Family Court, Ross was provided with an annual compensation of $38,000. However, pursuant to a contract between Ross and Lackawanna County, Ross was permitted to bill private paying parties above her County compensation at a rate of $50 per hour. Ross allegedly managed and exercised complete control over her private billings and income.  That income was allegedly known only to Ross and not Lackawanna County, nor was Lackawanna County required to approve Ross’s private billings.  

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

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

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

     According to United States Attorney Peter J. Smith, Bonnie Vosburgh, age 22, of Nesquehoning, Carbon County, admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January 2011 and December 2012.

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

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

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced charges filed Thursday against Calvin L. Green, age 59, of Harrisburg, for failing to properly register in Pennsylvania as a Sex Offender. 

     According to United States Attorney Peter J. Smith, Green is charged with knowing failure to register under the Sex Offender Registration and Notification Act. Green has a conviction that requires his registration and updates under that law.

     The charge stems from an investigation conducted by the United States Marshals Service. The case is being prosecuted by Assistant United States Attorney James T. Clancy.

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

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

     In this 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 a Luzerne County man was sentenced today by Senior United States District Judge Richard P. Conaboy to serve 84 months in prison on the charge of conspiracy to distribute heroin.

     According to United States Attorney Peter J. Smith, Alik Jerome Harrington, age 35, of Kingston, previously admitted to participating in a conspiracy to distribute heroin in the Luzerne County area.  On April 14, 2011, after making a traffic stop, members of the Kingston Police Department seized over 200 bags of heroin from Harrington’s vehicle.  Investigators then obtained a search warrant and obtained an additional quantity of heroin from a residence on Divison Street in Kingston where Harrington was residing.

     In addition to the prison term, Senior Judge Conaboy also ordered that Harrington be supervised by a probation officer for three years following his prison sentence.

     The investigation was conducted by the Kingston Police Department and the Federal Bureau of Investigation.

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

To Produce Child Pornography

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 29-year-old Forty Fort resident was sentenced today to serve 12 years in federal prison by Senior U.S. District Court Judge Edwin M. Kosik for to attempting to produce child pornography.

     According to United States Attorney Peter J. Smith, Joshua Campbell, was previously indicted by a federal grand jury in Kansas in June 2012 for persuading a 12-year-old female to take sexually explicit photographs of herself and transmit them to the defendant via computer. This activity occurred during 2008 and 2009.

     The charge against Campbell resulted from an investigation by special agents and task force officers of the Federal Bureau of Investigation in Kansas and Scranton, and detectives from the Lackawanna County District Attorney’s Office. The indictment against Campbell originated in Kansas and was later transferred to the Middle District of Pennsylvania for prosecution. Campbell subsequently pleaded guilty to attempting to produce child pornography.

     Judge Kosik also ordered that Campbell be placed on supervised release for life following his prison sentence and pay a fine of $500. Campbell must also receive sex offender treatment and comply with sex offender registration and notification requirements.

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

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that late on January 30, 2013, a federal jury in Scranton returned a unanimous verdict in favor of the United States Postal Service.

     The matter captioned as Gary A. Savidge v. Patrick R. Donahoe, Postmaster General, was tried before the Honorable Robert D. Mariani. The jury deliberated for approximately one hour.

     According to United States Attorney Peter J. Smith, Gary Savidge, of Shickshinny, PA, a retired mail processing clerk, brought this employment discrimination suit against the Postal Service, claiming that the Postal Service failed to select him for two custodial positions located in Wilkes-Barre, PA, because of his service-related disabilities. The Postal Service maintained that Mr. Savidge was not selected for the first custodial position because the employee selected for the position had an earlier request to transfer than Mr. Savidge.  Additionally, the Postal Service maintained that Mr. Savidge was not selected for the second custodial position because he had unacceptable attendance.

     After a three day trial, the jury returned a verdict that the Postal Service did not discriminate against Mr. Savidge.

     The Postal Service was represented by Assistant United States Attorney Melissa A. Swauger.

****

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 46-year-old Scranton resident pleaded guilty today before Senior U.S. District Court Judge A. Richard Caputo to attempting to entice a minor to engage in illegal sexual conduct.

     According to United States Attorney Peter J. Smith, Lewis John Davies admitted to using a computer to attempt to persuade a minor to engage in sexual acts with him during April-June 2008.

     Davies was indicted by a federal grand jury in June 2008, as a result of an investigation by the Federal Bureau of Investigation and the Scranton Police Department.

     Under the terms of the plea agreement, if it is accepted by the court, Davies will be sentenced to between 66 months and 78 months in prison, to be followed by five years of supervised release. The agreement also requires Davies to comply with sex offender registration and treatment requirements. Davies also agreed to forfeit to the United States computers and related material used in the commission of the crime.

     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.

For Bank Fraud

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Humphrey Holmes was sentenced today by United States District Court Judge Sylvia H. Rambo to a 36-month term of imprisonment and four years of supervised release for bank fraud.

     According to United States Attorney Peter J. Smith, from 2010 through September 2011, Holmes, age 28, used fraudulent social security numbers, employment records, and other materials in an effort to obtain loans and cash checks from several Central Pennsylvania banks and credit unions, including, the Pennsylvania State Employees Credit Union, Belco Credit Union, American General Financial Services, Susquehanna Valley Credit Union, Hershey Federal Credit Union, New Cumberland Federal Credit Union and the Patriot Federal Credit Union. Holmes also engaged in a check kiting scheme while attempting to cash a $20,000 check that he fraudulently obtained. 

     Holmes was indicted in October 2011 and pleaded guilty in August 2012.

     The investigation was conducted by the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Michael A. Consiglio.

Charged With $1.2 Million Mail Fraud And Money Laundering

     The United States Attorney’s Office for the Middle District of Pennsylvania, announced the indictment of a former employee of the Bon-Ton Stores Foundation for mail fraud and money laundering that robbed the Foundation of more than $1.2 million.  Christine S. DeJuliis, age 51, of Felton, PA, was charged in a six-count indictment handed up by the Grand Jury sitting in Harrisburg Wednesday.

     According to United States Attorney Peter J. Smith, DeJuliis is charged with five counts of mail fraud and one count of money laundering covering a period from as early as January 2003 until July 2009. The charges stem from an investigation conducted by the U.S. Secret Service and Internal Revenue Service–Criminal Investigation based on information received from the Bon-Ton Stores, Inc. 

     The investigation revealed that DeJuliis, hired by the Bon-Ton Stores, Inc., in 1999, worked in an administrative capacity for the head of the Bon-Ton Stores Foundation, a charitable organization established by the Bon-Ton Stores, Inc. 

     DeJuliis’s duties involved much of the day-to-day operation of the Foundation. DeJuliis allegedly created fictitious businesses with bank accounts and then devised a scheme to have the Foundation appear to award grants to the businesses. The grant money was put into the fictitious accounts controlled by DeJuliis and she allegedly caused the money to be taken out of those accounts and placed into her personal accounts. Over the period charged in the Indictment, DeJuliis allegedly defrauded the Foundation of more than $1.2 million. 

     The Indictment also contains a forfeiture allegation stating the Government’s intent to forfeit at least $1,282,885 traceable to the crime.

     Officials at the Bon-Ton Stores, Inc., and the Bon-Ton Stores Foundation were cooperative with the investigation.  DeJuliis was fired from the Foundation as soon as her conduct was discovered by the company in July 2009.

     The case is being prosecuted by Assistant United States Attorney James T. Clancy.

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

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

     In this particular case, the maximum penalty under the federal statute is 20 years’ imprisonment on each mail fraud charge, a term of supervised release following imprisonment, and a fine. The money laundering charge also subjects DeJuliis to a term of imprisonment of up to 20 years and a fine of the greater of $500,000 or twice the value of the property involved in the money laundering transactions. 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 James M. Munley today sentenced Fawzi Atra, age 43, of Bethlehem, Pennsylvania, to 70 months’ imprisonment for the robbery of six financial institutions in Pennsylvania and New Jersey.

     Atra had previously pleaded guilty to all six counts that were contained in a Criminal Information charging the following robberies:

- KNBT BANK, located at 2170 Union Boulevard, Bethlehem, Pennsylvania, on April 3, 2012; - PNC BANK, located at 307 West Route 70, Marlton, New Jersey, on April 4, 2012; - PNC BANK, located at 942 West Street Road, Warminster, Pennsylvania, on April 11, 2012; - PNC BANK, located at 800 Denow Road, Unit F, Pennington, New Jersey, on April 14, 2012; - QNB BANK, located at 901 South West End Boulevard, Quakertown, Pennsylvania, on April 17, 2012; and
- ESSA BANK & TRUST, located at 601 Route 940, Mount Pocono, Pennsylvania, on April 19, 2012.

     A police officer with the Pocono Mountain Regional Police Department arrested Atra shortly after the ESSA BANK & TRUST robbery on April 19, 2012. A search incident to the arrest revealed the presence of the money stolen from the Essa Bank and a pellet gun. Atra has been detained in federal custody since his arrest.

     In additional to the 70-month term of imprisonment, Judge Munley also ordered that Atra be placed on supervised release for a period of three years following the service of his sentence. Judge Munley further specified that the supervised release term would be on a non-reporting basis in the event that Atra is deported to Jordan, his country of citizenship, following service of his sentence. In addition, Judge Munley ordered that Atra make restitution of $9,688, representing the total amount of money netted as a result of the six robberies.

     The case was investigated by special agents of the Federal Bureau of Investigation, the Pocono Mountain Regional Police Department, the Richland Township, Pennsylvania Police Department, the Bethlehem, Pennsylvania Police Department, the Evesham Township, New Jersey Police Department, the Hopewell, New Jersey Police Department, and the Warminster, Pennsylvania Police Department. The case was prosecuted by Assistant United States Attorney John Gurganus.

     The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced that three individuals were charged with being in the United States illegally in separate cases.

     According to United States Attorney Peter J. Smith, Informations were filed Monday against: Adolfo Lopez-Perez, age 24, and Antonio Rios, age 42, natives and citizens of Mexico, both found in Adams County and Tomas Justino Mercado-Mendoza, age 26, a native and citizen of El Salvador, found in York County. The three came to the attention of authorities after eluding examination or inspection by immigration officers.

     The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and are being prosecuted by Special Assistant United States Attorney 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 these particular cases, the maximum penalty under the federal statute is six months’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the 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 William Joseph Zinnanti, age 44, of Mountain View, California, was sentenced today, in Harrisburg, to four months’ imprisonment by U.S. District Court Senior Judge William W. Caldwell for introducing adulterated medical devices into interstate commerce in violation of Federal Food and Drug laws.

     According to information presented by Assistant U.S. Attorney Joseph Terz, from 2005 to 2007, while residing in Hershey, Pennsylvania, Zinnanti was the President and Owner of a business known as Zinnanti Surgical Design, LLC, which manufactured a medical device known as the Bayonet Electro-Surgical Pencil. The device was sold mainly to hospitals. Surgeons used this device to cut and cauterize tissue surrounding the patient's thoracic vertebrae to allow access to the thoracic disk space during back surgery.

     The surgical pencils were adulterated because the methods, facilities, and controls Zinnanti used for the manufacture, packing, and storage of the product did not comport with current good manufacturing practice to ensure that the devices were safe and effective and in compliance with the Federal Food, Drug, and Cosmetic Act. Zinnanti acted with the intent to defraud and mislead the FDA with regard to the manufacturing procedures he had in place.

     Zinnanti was charged in May 2012 and pleaded guilty in June 2012.

     According to United States Attorney Peter J. Smith, after questions surrounding the sterility of the device came to light in 2006, a nationwide and international recall was instituted. Anyone seeking further information regarding the recall should contact the FDA Division of Small Manufacturers International and Consumer Assistance at 1-800-638-2041.

     This investigation was conducted by the Food and Drug Administration, Office of Criminal Investigations. The case was prosecuted with the assistance of FDA's Office of Chief Counsel.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today the settlement of a federal lawsuit against Chambersburg Skydiving Center, Inc., Chambersburg, Pennsylvania filed as a result of an inquiry by the Federal Aviation Administration (FAA).

     According to United States Attorney Peter J. Smith, the civil Complaint, filed on November 7, 2012, claimed that Chambersburg Skydiving Center Inc. operated an aircraft in violation of the federal aviation regulations by failing to have the aircraft inspected, by failing to have annual inspections and operating the aircraft when it was not in an airworthy condition.

     Under the terms of the settlement agreement, Chambersburg Skydiving Center, Inc. will pay $10,000 in satisfaction of all alleged violations.  Additionally, Chambersburg Skydiving Center, Inc. agreed to fully cooperate with the FAA for the purpose of conducting inspections and investigations concerning compliance with federal aviation regulations.

     The U.S. Attorney’s Office and Chambersburg Skydiving Center, Inc. agreed that the terms of the settlement agreement were appropriate in light of the Chambersburg Skydiving Center’s status as a small business with limited financial resources and its record of no prior violations. Additionally, Chambersburg Skydiving Center, Inc. took measures to ensure the airworthiness of the aircraft once it became aware of any alleged violation including the timely repairs and inspections. The company is currently compliant with the FAA’s requirements and has agreed to cooperate with any future inspection or investigation by the FAA.

     The settlement agreement is subject to the approval of U.S. District Court Judge John E. Jones, III, the judge to whom the case is assigned.

     This matter was litigated by Assistant U.S. Attorney Timothy Judge, of the U.S. Attorney’s Office Civil Division in collaboration with the FAA’s Eastern Regional Counsel’s Office.

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

     According to United States Attorney Peter J. Smith, Rama Putra, age 32, residing in Scranton, pleaded guilty to Count I of an indictment returned in October 2012 by a grand jury in Scranton.  Count I charges Putra with conspiracy to commit money laundering, and the employment and transportation of illegal aliens.  Putra was charged for committing the offenses from January 2007 through September 2012.

     The indictment stemmed from a continuing joint investigation by the U.S. Department of Homeland Security - Immigration and Customs Enforcement and the Pennsylvania State Police.

     The indictment alleged that 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.

     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.

     Sentencing is scheduled for April 25, 2013.

     Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that an Old Forge man pleaded guilty today in Scranton before U.S. District Court Judge A. Richard Caputo to online enticement.

     According to United States Attorney Peter J. Smith, Jeffrey Pettinato, age 51, was charged in a felony Information in November 2012 for committing the offenses at various times between July 2012 through August 2012. Pettinato used a computer and attempted to persuade, induce, entice, and coerce a minor to engage in sexual activity.

     In this particular case, the maximum penalty under the federal statute is life imprisonment and a minimum of 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.

     Pettinato will also be required to follow sexual offender registration requirements pursuant to the Adam Walsh Act. A sentencing date has been scheduled for April 30, 2013.

     Smith noted that 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."

     Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

****

     The United States Attorney's Office for the Middle District of Pennsylvania announced that Patricia Delorenzo, age 59, of Milford, Pennsylvania, pleaded guilty today in Scranton to Health Care Fraud charges before U.S. District Court Judge A. Richard Caputo.

     According to United States Attorney Peter J. Smith, a criminal Information was filed in November 2012 charging Delorenzo with engaging in a scheme to defraud Blue Cross of Northeastern Pennsylvania for the period beginning May 2009 through December 2011.

     The charges stem from an investigation initiated in July of 2009 by the Federal Bureau of Investigation (FBI).

     Under the terms of the plea agreement, Delorenzo=s intended loss is approximately $20,000.  Actual loss is $10,188.88. Delorenzo will pay restitution for the actual loss amount and forfeit her professional counseling license.

     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.

     Sentencing is scheduled for April 26, 2013.

     Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

     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
30-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, Miguel Angel Bautista-Valdez, age 30, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment by a federal grand jury in Harrisburg today.

     The indictment alleges that Bautista-Valdez, an alien who has previously been arrested, and deported from the United States on January 9, 2008, did knowingly and unlawfully reenter the United States and was apprehended in Franklin County, Pennsylvania.

     This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Special Assistant United States Attorney 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 two 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 today in Scranton Senior United States District Court Judge James M. Munley sentenced Anthony Orlando Gibbs, age 37, formerly of Michigan, to 15 months’ imprisonment for bribing a correctional officer at the United States Penitentiary at Canaan to smuggle contraband into the prison.

     The sentencing follows Gibbs’ guilty plea to a Criminal Information charging him with bribery of a public official.  The Criminal Information noted that during the Spring and Summer of 2011, Gibbs was an inmate at USP-Canaan.  The United States Penitentiary-Canaan is a high security institution housing male inmates.  High security institutions, also known as United States Penitentiaries, have highly-secured perimeters featuring walls or reinforced fences, multiple- and single-occupant cell housing, the highest staff-to-inmate ratio, and close control of inmate movement.

     The Criminal Information further noted that under federal law, inmates are prohibited from possessing cellular telephones.  USP-Canaan is also a smoke-free environment; inmates are not allowed to purchase or possess any kind of tobacco product which is considered contraband within the institution.

     The Criminal Information alleged that Gibbs paid more than $5,000 to correctional officer Donald E. Lykon to induce him to smuggle to the defendant cellular phones, marijuana, tobacco and related items within the United States Penitentiary at Canaan.

     There was a plea agreement in the case which was accepted by Senior Judge Munley.

     Judge Munley previously sentenced correctional officer Donald E. Lykon to 18 months’ imprisonment and his wife, Kimberly Lykon, to 5 months’ imprisonment for their roles in the scheme. 

     The investigation was conducted by the United States Department of Justice Office of Inspector General.

     Assistant U.S. Attorney John Gurganus prosecuted the case.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today the forfeiture of more than $300,000 from the sale of a drug trafficker’s home.  According to United States Attorney Peter J. Smith, United States District Judge John E. Jones, III, entered a Final Order of Forfeiture on January 14, 2013 in connection with a criminal case pending against Robert Taylor. The court’s order forfeited $341,898.35 to the United States. That sum was the proceeds of the sale of Taylor’s home located at 4216 Herrera Court, Randallstown, Maryland. Those proceeds were held by the United States Marshals Service since the closing on the sale pending the court’s forfeiture order.

     Taylor, 37, of Aberdeen, MD and co-defendant, Shawn Duncan, 41, of Harrisburg, came to the attention of authorities following an investigation into drug activity in Harrisburg. Taylor was identified as a source of supply for Duncan. In February of 2012, federal agents made multiple purchases of crack cocaine from co-defendant Duncan. Both Duncan and Taylor were arrested on February 9, 2012 and approximately 9 ounces of crack cocaine was seized.

     Taylor and Duncan were indicted by a federal grand jury in Harrisburg in February 2012 with unlawfully distributing both cocaine HCL and crack cocaine as well as criminal conspiracy to do the same.  A superseding indictment was returned by a federal grand jury in Harrisburg in March 2012 providing notice of the Government’s intention to forfeit any property that drug proceeds were used to purchase and any property used to commit the offenses. The federal investigation revealed that the proceeds of drug trafficking were used to purchase the Randallstown home.

     On October 1, 2012 both Taylor and Duncan pleaded guilty to unlawfully distributing cocaine HCL and crack cocaine. Taylor agreed to the forfeiture of the proceeds of the sale of the Randallstown home. Both defendants await sentencing.  Taylor faces a mandatory minimum term of imprisonment of 10 years up to life imprisonment. Duncan faces a maximum sentence of 20 years imprisonment. Sentencing dates have not yet been scheduled for either defendant.

     The case was investigated by the U.S. Drug Enforcement Administration’s Harrisburg Resident Office, the Pennsylvania State Police, the Dauphin County Drug Task Force and the East Lampeter Township Police Department. The case is being prosecuted by Assistant U.S. Attorney William A. Behe.

     The United States Attorney’s office for the Middle District of Pennsylvania announced that a Nigerian national charged in connection with a multi-national scheme that bilked more than $70 million from U.S. and Canadian lawyers pleaded guilty in federal court today in Harrisburg.

     According to United States Attorney Peter J. Smith, Emmanuel Ekhator, 42, of Mississauga, Canada, and Benin City, Nigeria, pleaded guilty to criminal conspiracy to commit mail fraud and wire fraud before United States Magistrate Judge Martin C. Carlson.  Pursuant to a plea agreement with the government, Ekhator also acknowledged the government’s right to forfeit property in Canada and the contents of several bank accounts in Nigeria.

     According to the information provided to the court by Assistant U.S. Attorney Christy Fawcett during the guilty plea proceeding, Ekhator was part of a scam that targeted lawyers.  Conspirators contacted U.S. and Canadian law firms by e-mail claiming to be individuals or businesses outside North America who were owed money by entities in the U.S. and asking for legal representation to collect the money.  Often, the prospective “clients” said the monies owed came from a real estate transaction, tort claim, or divorce settlement.

     Once the law firm agreed to represent the out-of-country “client”, the law firm would be contacted by the U.S. entity purportedly owing money with an offer to pay the “client”  by check.  The “client” would instruct the law firm to deposit the check in the law firm’s trust account, retain the law firm’s fee, and wire the remaining funds to accounts in Asia.  The check that was then mailed to the law firm would be a counterfeit check, a fact that would be discovered only after funds from the law firm’s trust account had been wired to the Asian bank.

     The counterfeit checks, which appeared to be drawn on legitimate accounts from well-established financial institutions, often included a telephone number for the financial institution.  Lawyers attempting to determine the validity of the check would call the number only to reach another conspirator who would falsely verify the check. Ekhator’s co-defendant, Yvette Mathurin, has been charged with alleged involvement with this aspect of the conspiracy and is awaiting extradition from Canada.

     As part of the plea agreement lawyers for Ekhator told the court that Ekhator’s involvement in the scheme makes him responsible for losses of more than $7 million and up to $20,000,000.  Ekhator also admitted to being a leader in the sophisticated criminal enterprise.

     Ekhator was arrested in Nigeria in August 2010, and extradited to the United States in August 2011.

     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.

     Sentencing is expected to occur in the spring.

     This case is part of an on-going investigation of advance fee collection fraud schemes by a task force including the United States Postal Inspection Service, the Federal Bureau of Investigation, the United States Secret Service, the Toronto Police Services, the Royal Canadian Mounted Police, the Nigerian Economic and Financial Crimes Commission and the U.S. Attorney’s Office for the Middle District of Pennsylvania.

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that an indictment charging two New Jersey residents for conspiring to defraud the United States, using false documents and making false statements in connection with a Monroe County residence mortgage loan insured by the Federal Housing Administration of the U.S. Department of Housing and Urban Development was unsealed today. The indictment returned on January 8, was sealed pending their arrest.

     According to United States Attorney Peter J. Smith, the defendants, David Sacci, age 46, of Bradley Beach, New Jersey, and Martin Sacci, age 64, of South Plainfield, New Jersey, are charged with committing the offenses in 2007 and 2008, when both men worked as loan officers for Aurora Financial, a financial services firm operating in Pennsylvania, New Jersey and other states. The fraud and false statements were allegedly in connection with a mortgage insured by the FHA for a residential property in Long Pond, Monroe County, Pennsylvania.

     The indictment also seeks the forfeiture of all property and proceeds obtained as a result of the alleged fraudulent conduct.

     Both defendants were arraigned before U.S. Magistrate Judge Thomas M. Blewitt. Trial in the case is scheduled for March 18, 2013. Both defendants were released pending trial.

     The charges stem from an investigation by the Department of Housing and Urban Development (HUD).

     Another defendant connected to the scheme, Patricia Chmura, previously pleaded guilty to HUD fraud charges and is awaiting sentencing.

     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 maximum penalty under the federal statute is 14 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 J. Ostrowski, age 29, of Wilkes-Barre, pleaded guilty today before Senior United States District Court Judge Edwin M. Kosik to producing and attempting to produce child pornography, interstate extortion, and cyber stalking.

     The plea agreement calls for Ostrowski to be sentenced to 25 years in prison, to be followed by a lifetime of supervised release. The court ordered a pre-sentence investigation to be completed after which a date for sentencing will be scheduled.

     According to United States Attorney Peter J. Smith, a Superseding Information was filed in December 2012 charging that Ostrowski, a former football coach at Holy Redeemer High School in Wilkes-Barre, persuaded and enticed, and attempted 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 used 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 also 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.

     According to a summary of the Government’s evidence presented at today’s 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.

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

     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 member of a Carbon County-based drug trafficking conspiracy was sentenced Tuesday by Senior U. S. District Court Judge James M. Munley to 39 months in prison.

     According to United States Attorney Peter J. Smith, Imani Simelani, age 30, of Allentown, Pennsylvania, who used the street name “E,” previously pleaded guilty to conspiracy to distribute cocaine base (“crack”) and cocaine. Simelani admitted to being a member of the drug conspiracy from early 2006 to April 2007.

     Simelani was indicted by a federal grand jury in April 2007, as a result of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police. Simelani was one of 11 people charged in the case. Ten of the co-defendants pleaded guilty to drug-related charges and have been sentenced to prison. Krishna Mote, one of the leaders of the drug ring, was recently convicted after a jury trial and is awaiting sentencing.

     Judge Munley also ordered Simelani to be placed on supervised release for four years following his prison sentence and pay a fine of $500.

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

For Federal Heroin Trafficking Charges

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Luzerne County man was sentenced by Senior United States District Judge James M. Munley to serve 60 months in prison on the charge of conspiracy to distribute heroin.

     According to United States Attorney Peter J. Smith, David Gilliam, age 27, of Forty Fort, previously admitted to participating in a conspiracy to distribute heroin in the Luzerne County area between January and November 2011.  In March 2011, investigators seized 660 bags of heroin from a residence located on Wyoming Avenue in Forty Fort where Gilliam was residing.

     In addition to the prison term, Judge Munley also ordered that Gilliam be supervised by a probation officer for three years following his prison sentence.

     The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, the Luzerne County Drug Task Force, and the Kingston and Hanover Police Departments.

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

For Stolen Firearms Charge

     The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Luzerne County man was sentenced by Senior United States District Court Judge James M. Munley to serve 20 months in prison for the possession and receipt of three stolen firearms.

     According to United States Attorney Peter J. Smith, Albert Behrmann, age 37, of Larksville, Luzerne County, was previously indicted by a federal grand jury in November 2011, after an incident in Luzerne County in which the defendant was involved in the sale of a stolen firearm to another person.

     Behrmann previously entered a guilty plea to the charge of possession and receipt of stolen firearms on April 4, 2012.

     In addition to the prison term, Judge Munley also ordered that the defendant be supervised by a probation officer for three years following his prison sentence.

     The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, the Luzerne County Drug Task Force, and the Kingston and Hanover Police Departments. The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.

To Premeditated Prison Murder

     A federal inmate formerly held in Pennsylvania’s Allenwood Federal Correctional Complex pleaded guilty today in Harrisburg, Pa., before U.S. District Judge Yvette Kane, to first degree murder for stabbing and kicking a fellow inmate to death.

     U.S. Attorney for the Middle District of Pennsylvania Peter J. Smith and Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division announced the plea, entered today by Shawn Cooya, 33, formerly of White River, Ariz.

     According to documents filed in this case and Cooya’s admissions in court, in September 2005, Cooya, allegedly along with co-defendant Ritz Williams – another inmate at Allenwood in White Deer, Pa. – aided each other in the premeditated murder of inmate Alvin Allery by repeatedly stabbing him with a homemade knife and repeatedly kicking him in the head and torso.           

     Cooya and Williams were indicted by a federal grand jury in Williamsport in February 2008 and a superseding indictment was returned in July 2009.

     As a result of his plea, Cooya faces a mandatory sentence of life in prison. Sentencing has been scheduled for March 18, 2013.

     A trial date for Williams has been scheduled for April 15, 2013.  He is considered innocent unless and until proven guilty.

     The case was investigated by the FBI, Williamsport, Pa., Resident Agency and the Federal Bureau of Prisons.  The case is being prosecuted by Assistant U.S. Attorneys Wayne Samuelson and Michelle Olshefski of the Middle District of Pennsylvania and Michael Warbel of the Criminal Division’s Capital Case Unit.