Western District of Pennsylvania

As Part of Coordinated Law Enforcement Efforts in 20 Countries, United States Charges 12 Defendants in Connection with Computer Fraud Conspiracy

WASHINGTON – The computer hacking forum known as Darkode was dismantled, and criminal charges have been filed in the Western District of Pennsylvania and elsewhere against 12 individuals associated with the forum, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania and Deputy Director Mark F. Giuliano of the FBI.

“Hackers and those who profit from stolen information use underground Internet forums to evade law enforcement and target innocent people around the world,” said Assistant Attorney General Caldwell. “This operation is a great example of what international law enforcement can accomplish when we work closely together to neutralize a global cybercrime marketplace.”

“Of the roughly 800 criminal internet forums worldwide, Darkode represented one of the gravest threats to the integrity of data on computers in the United States and around the world and was the most sophisticated English-speaking forum for criminal computer hackers in the world,” said U.S. Attorney Hickton. “Through this operation, we have dismantled a cyber hornets’ nest of criminal hackers which was believed by many, including the hackers themselves, to be impenetrable.”

“This is a milestone in our efforts to shut down criminals’ ability to buy, sell, and trade malware, botnets and personally identifiable information used to steal from U.S. citizens and individuals around the world,” said Deputy Director Giuliano. “Cyber criminals should not have a safe haven to shop for the tools of their trade and Operation Shrouded Horizon shows we will do all we can to disrupt their unlawful activities.”

As alleged in the charging documents, Darkode was an online, password-protected forum in which hackers and other cyber-criminals convened to buy, sell, trade and share information, ideas, and tools to facilitate unlawful intrusions on others’ computers and electronic devices. Before becoming a member of Darkode, prospective members were allegedly vetted through a process in which an existing member invited a prospective member to the forum for the purpose of presenting the skills or products that he or she could bring to the group. Darkode members allegedly used each other’s skills and products to infect computers and electronic devices of victims around the world with malware and, thereby gain access to, and control over, those devices.

The takedown of the forum and the charges announced today are the result of the FBI’s infiltration, as part of Operation Shrouded Horizon, of the Darkode’s membership. The investigation of the Darkode forum is ongoing, and the U.S. Attorney’s Office of the Western District of Pennsylvania is taking a leadership role in conjunction with the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).

The charges announced today are part of a coordinated effort by a coalition of law enforcement authorities from 20 nations to charge, arrest or search 70 Darkode members and associates around the world. The nations comprising the coalition include Australia, Bosnia and Herzegovina, Brazil, Canada, Colombia, Costa Rica, Cyprus, Croatia, Denmark, Finland, Germany, Israel, Latvia, Macedonia, Nigeria, Romania, Serbia, Sweden, the United Kingdom and the United States. Today’s actions represent the largest coordinated international law enforcement effort ever directed at an online cyber-criminal forum.

The following defendants face charges in the Western District of Pennsylvania:

• Johan Anders Gudmunds, aka Mafi aka Crim aka Synthet!c, 27, of Sollebrunn, Sweden, is charged by indictment with conspiracy to commit computer fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. He is accused of serving as the administrator of Darkode, and creating and selling malware that allowed hackers to create botnets. Gudmunds also allegedly operated his own botnet, which at times consisted of more than 50,000 computers, and used his botnet to steal data from the users of those computers on approximately 200,000,000 occasions.
• Morgan C. Culbertson, aka Android, 20, of Pittsburgh, is charged by criminal information with conspiring to send malicious code. He is accused of designing Dendroid, a coded malware intended to remotely access, control, and steal data from Google Android cellphones. The malware was allegedly offered for sale on Darkode.
• Eric L. Crocker, aka Phastman, 39, of Binghamton, New York, is charged by criminal information with sending spam. He is accused of being involved in a scheme involving the use of a Facebook Spreader which infected Facebook users’ computers, turning them into bots which Crocker controlled through the use of command and control servers. Crocker sold the use of this botnet to others for the purpose of sending out massive amounts of spam.
• Naveed Ahmed, aka Nav aka semaph0re, 27, of Tampa, Florida; Phillip R. Fleitz, aka Strife, 31, of Indianapolis; and Dewayne Watts, aka m3t4lh34d aka metal, 28, of Hernando, Florida, are each charged by criminal information with conspiring to send spam. They are accused of participating in a sophisticated scheme to maintain a spam botnet that utilized bulletproof servers in China to exploit vulnerable routers in third world countries, and that sent millions of electronic mail messages designed to defeat the spam filters of cellular phone providers.
• Murtaza Saifuddin, aka rzor, 29, of Karachi, Sindh, Pakistan, is charged in an indictment with identity theft. Saifuddin is accused of attempting to transfer credit card numbers to others on Darkode.

The following defendant faces charges in the Eastern District of Wisconsin:

• Daniel Placek, aka Nocen aka Loki aka Juggernaut aka M1rr0r, 27, of Glendale, Wisconsin, is charged by criminal information with conspiracy to commit computer fraud. He is accused of creating the Darkode forum, and selling malware on Darkode designed to surreptitiously intercept and collect email addresses and passwords from network communications.

The following defendant face charges in the District of Columbia:

• Matjaz Skorjanc, aka iserdo aka serdo, 28, of Maribor, Slovenia; Florencio Carro Ruiz, aka NeTK aka Netkairo, 36, of Vizcaya, Spain; and Mentor Leniqi, aka Iceman, 34, of Gurisnica, Slovenia are each charged in a criminal complaint with racketeering conspiracy; conspiracy to commit wire fraud and bank fraud; conspiracy to commit computer fraud, access device fraud, and extortion; and substantive computer fraud. Skorjanc also is accused of conspiring to organize the Darkode forum and of selling malware known as the ButterFly bot.

The following defendant faces charges in the Western District of Louisiana:

• Rory Stephen Guidry, aka k@exploit.im, of Opelousas, Louisiana, is charged with computer fraud. He is accused of selling botnets on Darkode.

The charges and allegations are merely accusations. A defendant is presumed innocent until and unless proven guilty.

This investigation, Operation Shrouded Horizon, is being conducted by the FBI with assistance from Europol and their European Cyber Crime Center (EC3). This case is being prosecuted by Assistant U.S. Attorneys James T. Kitchen and Charles A. Eberle of the Western District of Pennsylvania and Senior Trial Attorneys Gavin A. Corn, Marie-Flore Johnson and Harold Chun of CCIPS, Assistant U.S. Attorney Erica O’Neil of the Eastern District of Wisconsin and Assistant U.S. Attorney Myers Namie of the Western District of Louisiana. The Criminal Division’s Office of International Affairs also provided significant assistance.

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In a related case, Aleksandr Andreevich Panin, aka Gribodemon, 26, of Tver, Russia; and Hamza Bendelladj, aka Bx1, 27, of Tizi Ouzou, Algeria, pleaded guilty on Jan. 28, 2014, and June 26, 2015, respectively, in the Northern District of Georgia in connection with developing, distributing and controlling SpyEye, a malicious banking trojan designed to steal unsuspecting victims’ financial and personally identifiable information. Bendelladj and Panin advertised SpyEye to other members on Darkode. One of the servers used by Bendelladj to control SpyEye contained evidence of malware that was designed to steal information from approximately 253 unique financial institutions around the world. Panin and Bendelladj will be sentenced at a later date.

This case is being prosecuted by Assistant U.S. Attorneys Steven Grimberg and Kamal Ghali of the Northern District of Georgia. All press inquiries relating to this case should be directed to the U.S. Attorney’s Office for the Northern District of Georgia at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.

PITTSBURGH - An alien found in Armstrong County, Pennsylvania, has been sentenced in Pittsburgh to time served on his conviction of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.

United States District Judge Cathy Bissoon imposed the sentenced on Ivan Villegas-Estrella, 26, of Mexico.

According to the information presented to the court, Ivan Villegas-Estrella, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on or about Sept. 21, 2008, March 19, 2009, Nov. 16, 2013, April 11, 2014, and April 24, 2014. Ivan Villegas-Estrella was found to be illegally present in Freeport, Pa., on May 12, 2015.

Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the U.S. Department of Homeland Security, Immigration and Customs Enforcement for the successful prosecution of Ivan Villegas-Estrella.

JOHNSTOWN, Pa. - After deliberating approximately two hours, a jury of four men and eight women found Ronald W. Repak guilty of violating federal extortion and bribery laws, United States Attorney David J. Hickton announced today, Thursday, July 9, 2015.

Repak, 63, of Johnstown, Pa, was tried before United States District Judge Kim R. Gibson in Johnstown.

According to Assistant United States Attorney Stephanie L. Haines who prosecuted the case, evidence presented at trial established that Repak, while serving as Executive Director of the Johnstown Redevelopment Authority (JRA), engaged in conduct in violation of the Hobbs Act for extortion under color of official right, and engaged in acts of federal program bribery. Specifically, in exchange for Repak’s official actions and influence as the Executive Director of the JRA to facilitate the award of JRA contracting work, Repak solicited and obtained from local contracting firms a new roof for his personal residence and building demolition and grading services at Evolution Gym, his son’s privately-owned business. He was convicted of two counts for extortion under color of official right and two counts of federal program bribery relative to the roof and the Evolution Gym. Mr. Repak was found not guilty of a charge of extortion under color of official right and federal program bribery in relation to multiple Pittsburgh Steelers football game tickets.

Judge Gibson scheduled sentencing for Dec. 8, 2015, at 10 a.m. Based upon the convictions handed down by the jury, the law provides for a maximum total sentence of 60 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Repak.

PITTSBURGH - A Fayette County resident pleaded guilty in federal court to a charge of distribution of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.

Ronald Rhodes, 58, of Uniontown, Pa., pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.

In connection with the guilty plea, on or about April 3, 2014, Rhodes distributed a video containing material depicting the sexual exploitation of minors.

Chief Judge Conti scheduled sentencing for Oct. 14, 2015, at 3:30 p.m. The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.

Homeland Security Investigations and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Rhodes.

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

PITTSBURGH – Two Allegheny County residents pleaded guilty to a variety of offenses in federal court before Chief U.S. District Judge Joy Flowers Conti in Pittsburgh yesterday, U.S. Attorney David J. Hickton announced today.

Defendants Scott Kulikowski, 40, of Pittsburgh, PA, and Christopher Levy, 31, of Pittsburgh, PA, pled guilty to offenses resulting from a multi-agency investigation of them, Raymond Kober, and their associates in a motorcycle club called The Lords Amongst Warriors, or The LAW.

Kulikowski and Levy pleaded guilty to conspiracy to commit a Hobbs Act Robbery and possession of a firearm in furtherance of a crime of violence. According to the information presented to the court, in an around September 2014, Raymond Kober, Kulikowski and Levy conspired to commit an armed robbery of a business located in the Strip District section of Pittsburgh. Wiretapped telephone calls revealed the conspiracy and local police and federal agents were able to respond moments before the robbery occurred. According to the information presented to the court, Levy was stopped by police as he was approximately two blocks away from the robbery location and was found to have a loaded firearm in his possession for use in the robbery.

Separately, Scott Kulikowski also pled guilty to conspiracy to distribute and possess with intent to distribute cocaine from in and around January, 2014, and continuing thereafter to on or about Jan. 12, 2015, in the Western District of Pennsylvania and elsewhere. The information presented to the court indicated that during the course of the conspiracy, Kulikowski conspired to obtain and sell cocaine with Raymond Kober, Jason Godek and other individuals.

Also separately, Christopher Levy pled guilty to possession of firearms by a person who was prohibited from possessing firearms pursuant to a court order. According to the information presented to the court, Levy was prevented from possessing firearms due to an active protection from abuse order however, agents found him in possession of a firearm during the above-noted robbery as well as during a search of Levy’s residence on Jan. 12, 2015.

Judge Conti scheduled sentencing for Kulikowski and Levy for Oct. 16, 2015. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.

The Drug Enforcement Administration, the Internal Revenue Service–Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Allegheny County District Attorney’s Narcotics Enforcement Team and the Pittsburgh Bureau of Police conducted the investigation leading to the indictments in this case. This investigation was made possible through the Organized Crime Drug Enforcement Task Force program, a federal program designed to direct federal funds, and federal and local resources, at large scale, multi-jurisdictional drug investigations.

PITTSBURGH - A resident of Arnold and Lower Burrell, Pennsylvania, has been sentenced in federal court to 180 months (15 years) imprisonment followed by five years supervised release on his conviction of violating federal narcotics, firearms and money laundering laws, United States Attorney David J. Hickton announced today.

United States District Judge David S. Cercone imposed the sentence on Omali P. McKay, 29, a citizen of Trinidad who formerly resided in Lower Burrell, Pa., and in Arnold, Pa.

Last year, McKay was sentenced to 15 to 30 years’ imprisonment following his conviction in the Court of Common Pleas of Westmoreland County, Pennsylvania, for sexually abusing a child. Today, Judge Cercone ordered that 120 months (10 years) of the 180-month federal sentence must be served consecutively to McKay’s sentence in Westmoreland County, while the remaining 60 months of the sentence would run concurrently.

According to information previously presented to the court, McKay conspired with others from 2006 to Aug. 25, 2012, to distribute five to 15 kilograms of cocaine and 280 to 840 grams of crack cocaine. McKay obtained kilogram quantities of cocaine from out-of-state sources of supply and then cooked much of that cocaine into crack. He then sold cocaine and crack in small quantities to street-level distributors and drug users in order to maximize his profits.

Also, McKay admitted possessing with intent to distribute one kilogram of cocaine seized from his Lower Burrell residence on Aug. 25, 2012, while simultaneously possessing an assault rifle in furtherance of the drug crime. Specifically, on Aug. 25, 2012, search warrants were conducted at McKay's residences. In the master bedroom closet of the Lower Burrell residence, officers discovered more than one kilogram of cocaine, an assault rifle, approximately 3,000 rounds of ammunition, two ballistic vests, and $272,000 in cash hidden in a bag containing McKay's identification cards. Seized from the garage were a 2004 Mercedes Benz and a 2004 Lexus.

Finally, McKay admitted to conspiring with three others to launder his drug trafficking proceeds. He used those laundered funds to purchase the Lower Burrell residence for $243,000 in cash in August 2011. Specifically, between May and July 2011, McKay repeatedly provided sums of cash to three individuals who then deposited the cash into their respective bank accounts and wrote checks back to McKay. Some of checks were written to make them appear to be payments for services rendered from McKay's non-existent lawn care business. In total, $243,500 was laundered in this manner in a little more than a month and a half.

The Mercedes Benz, the Lexus, the $272,000 in cash, and the residence in Lower Burrell will be forfeited since they were proceeds of McKay’s drug trafficking activities.

Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Pennsylvania State Police, the Internal Revenue Service - Criminal Investigation Division, the Department of Homeland Security, the Drug Enforcement Administration, and the Lower Burrell Police Department for the investigation leading to the successful prosecution of McKay.

PITTSBURGH – An Ohio resident has been sentenced in federal court to five years’ probation with six months’ home detention and ordered to pay a fine of $7,500 on his conviction of one count of conspiracy to defraud the United States and one count of introduction of misbranded drugs into interstate commerce, United States Attorney David J. Hickton announced today.

Chief United States District Judge Joy Flowers Conti imposed the sentence on David Neal, 62, of Middletown, Ohio.

According to information presented to the court, Neal is the owner ACS Herbal Tea Company, a national Internet business located in Middletown, Ohio. Neal, using ACS Herbal Tea Company and the Internet websites www.123zip.com and www.passthetest.com, conspired to defraud the Substance Abuse and Mental Health Services Administration (SAMHSA) of the United States Department of Health and Human Services by obstructing and interfering with the lawful governmental functions of SAMHSA in overseeing, monitoring and establishing scientific and technical guidelines for federal workplace drug testing programs, and standards for certification of laboratories engaged in urine drug testing for federal agencies and federally-regulated industries, under the Federal Agency Drug-Free Work Place Program. For the past eight years, through the Internet websites www.123zip.com and www.passthetest.com, Neal sold, in interstate commerce, products such as the “Magnum Unisex Synthetic Urine-Never Fail a Urine Drug Test” and “Urine Luck” to customers who intended to use the products for the purpose of defeating federal, and federally regulated, employment drug urine tests overseen by SAMHSA. Additionally, some of the products sold through Neal’s websites were drugs, as defined by the Food and Drug Administration, but did not bear appropriate labeling.

“Federally mandated drug testing of transportation workers ¬¬¬is in place to ensure public safety; criminals who enrich themselves by distributing products designed to circumvent and defeat such testing endanger those who rely on transportation workers for safe passage; they also risk the health of the workers who take a product of unknown safety and efficacy,” said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “We will continue to protect the public health by bringing to justice criminals who distribute products that are designed only to defeat consumer safety.”

Judge Conti stated that the seriousness of the offense, when considering the public safety concerns implicated, supported the imposition of a guideline sentence.

Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation Division along with the Federal Bureau of Investigation and the Food and Drug Administration, Office of Criminal Investigations for the investigation leading to the successful prosecution of Neal.

PITTSBURGH - An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of sex trafficking of a child, United States Attorney David J. Hickton announced today.

The two-count indictment, returned on June 25, and sealed today, named Mario Grisom, 34, of Homestead, Pa., as the sole defendant.

According to the indictment, in and around April 2015, Grisom knowingly recruited, enticed, harbored, transported, provided and obtained a female minor, Minor A, to engage in commercial sex acts. The indictment further charges that from in and around July 2012, to in and around August 2012, Grisom knowingly attempted to recruit, entice, harbor, transport, provide and obtain a female minor, Minor B, to engage in commercial sex acts.

The law provides for a maximum total sentence of life imprisonment, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and the City of Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

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

PITTSBURGH - A citizen of Honduras has been sentenced in federal court to 10 months incarceration and one year supervised release on his conviction of illegal re-entry by an alien into the United States, United States Attorney David J. Hickton announced today.

Senior United States District Judge Donetta W. Ambrose imposed the sentence on Jose Samuel Mejia-Chavez .

According to information presented to the court, Jose Samuel Mejia-Chavez, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Oct. 2, 2006 and Feb. 27, 2009. Jose Samuel Mejia-Chavez was found to be illegally present in Harrison Township, Pennsylvania, on March 4, 2015.

Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Enforcement and Removal Operations, Department of Homeland Security for the investigation leading to the successful prosecution of Mejia-Chavez.

PITTSBURGH - On Wednesday, a federal grand jury in Pittsburgh returned a multi-count indictment against Yoandy Perez Llanes, a foreign national residing outside of the United States. Llanes was charged in a 21-count indictment with a scheme to defraud the Internal Revenue Service, United States Treasury, using the stolen identities of employees of UPMC (University of Pittsburgh Medical Center) to file false federal income tax returns in order to obtain unlawful tax refunds. Llanes and unnamed conspirators converted the unlawful tax refunds to Amazon.com gift cards, which were used to buy merchandise which was shipped internationally. All of these acts occurred generally between January and April, 2014. Llanes is charged with conspiracy to defraud the United States, wire fraud, money laundering and aggravated identity theft.

Early in 2014, thousands of employees of UPMC had their personal information compromised by hackers, who intruded into a UPMC computerized database stealing names, social security numbers, dates of birth and other personal identifying information. This data was then used to file false 2013 federal tax returns. Investigators learned that names and other identifiers were used by Llanes and other conspirators to file 935 false tax returns in which unlawful refunds were requested in the form of Amazon.com gift cards. Quick action by the IRS, UPMC, and Amazon.com frustrated the efforts of the fraudsters to file additional false returns and obtain further fraudulent proceeds. While the perpetrators sought approximately $2.2 million in fraudulent refunds, only $1.4 million was actually disbursed as refunds. Stolen Identity Refund Fraud, such as that alleged to have been perpetrated by Llanes, costs United States taxpayers billions of dollars.

This criminal scheme was complex and crossed national borders. Llanes and the conspirators used anonymous and encrypted email to disguise their identities and proxy computers to file returns. Using the fraudulently obtained Amazon.com gift cards, Llanes purchased hundreds of thousands of dollars in electronic merchandise for shipment through reshipping services in Miami, Florida, with instructions for delivery to “drop” locations outside the United States. Llanes and others then retrieved the merchandise and advertised it for sale on online auction websites overseas.

Though Llanes and the conspirators attempted to conceal their whereabouts and their identities through the use of encrypted email and proxy services, investigators were able to uncover the sophisticated plot and identify Llanes.

The law provides for a sentence of imprisonment, a fine of $5,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.

The Internal Revenue Service-Criminal Investigation, the United States Secret Service and the United States Postal Inspection Service, conducted the investigation leading to the indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

On Wednesday, a federal grand jury in Pittsburgh returned a multi-count indictment against Yoandy Perez Llanes, a foreign national residing outside of the United States.  Llanes was charged in a 21-count indictment with a scheme to defraud the Internal Revenue Service (IRS), and the U.S. Treasury, using the stolen identities of employees of the University of Pittsburgh Medical Center (UPMC) to file false federal income tax returns in order to obtain unlawful tax refunds.  Llanes and unnamed conspirators converted the unlawful tax refunds to Amazon.com gift cards, which were used to buy merchandise which was shipped internationally.  All of these acts occurred generally between January and April 2014.  Llanes is charged with conspiracy to defraud the United States, wire fraud, money laundering and aggravated identity theft.

Early in 2014, thousands of employees of UPMC had their personal information compromised by hackers, who intruded into a UPMC computerized database stealing names, social security numbers, dates of birth and other personal identifying information.  This data was then used to file false 2013 federal tax returns.  Investigators learned that names and other identifiers were used by Llanes and other conspirators to file 935 false tax returns in which unlawful refunds were requested in the form of Amazon.com gift cards.  Quick action by the IRS, UPMC and Amazon.com frustrated the efforts of the fraudsters to file additional false returns and obtain further fraudulent proceeds.  While the perpetrators sought approximately $2.2 million in fraudulent refunds, only $1.4 million was actually disbursed as refunds.  Stolen Identity Refund Fraud, such as that alleged to have been perpetrated by Llanes, costs United States taxpayers billions of dollars.

This criminal scheme was complex and crossed national borders.  Llanes and the conspirators used anonymous and encrypted email to disguise their identities and proxy computers to file returns.  Using the fraudulently obtained Amazon.com gift cards, Llanes purchased hundreds of thousands of dollars in electronic merchandise for shipment through reshipping services in Miami, Florida, with instructions for delivery to “drop” locations outside the United States.  Llanes and others then retrieved the merchandise and advertised it for sale on online auction websites overseas.

Though Llanes and the conspirators attempted to conceal their whereabouts and their identities through the use of encrypted email and proxy services, investigators were able to uncover the sophisticated plot and identify Llanes.

The law provides for a sentence of imprisonment, a fine of $5.5 million or both.  Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.

The IRS-CI, the U.S. Secret Service and the U.S. Postal Inspection Service, conducted the investigation leading to the indictment in this case.

An indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH – Racquel Sanchez, who resided in Lehigh Acres, Fl., and Tucson, Az., during the last two years, was convicted at the conclusion of a federal jury trial of conspiring to distribute at least 50 grams of pure methamphetamine or at least 500 grams of a mixture containing methamphetamine, United States Attorney David J. Hickton announced today.

Sanchez, 35, was tried before United States District Court Judge David S. Cercone in Pittsburgh, Pa.

During the 4 days of trial, evidence was presented that, during July 2013, Sanchez, who was residing in Arizona at the time, agreed to supply a Cleveland dealer with 1 pound (approximately 450 grams) of pure methamphetamine. After Sanchez shipped the pure methamphetamine to Cleveland, she flew to Cleveland and accepted delivery of the methamphetamine along with the Cleveland dealer. The methamphetamine was then mixed with another substance to expand its volume and supplied to a dealer in the Pittsburgh area where it was marketed as “molly”, a term for powder ecstasy or powder MDMA.

Judge Cercone scheduled sentencing to occur on November 16, 2015, at 10:00 a.m. The law provides for a maximum total sentence of at least 10 years and up to life in prison and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.

The Federal Bureau of Investigation and the Pennsylvania Attorney General’s Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Police Department, the Allegheny County Sheriff’s Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.

JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., has been sentenced in federal court to 60 months in prison and five years supervised release on his conviction of conspiracy to possess and distribute heroin, United States Attorney David J. Hickton announced today.

United States District Judge Kim R. Gibson imposed the sentence on William S. Rounsley, 22.

According to information presented to the court, from April 2012 to March 8, 2013, Rounsley conspired with his five co-defendants to possess and distribute 100 grams or more of heroin.

Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Rounsley.

JOHNSTOWN, Pa. - A resident of Carnegie, Pa., has been sentenced in federal court to three months in prison and three years supervised release on his conviction of possession of cocaine, United States Attorney David J. Hickton announced today.

United States District Judge Kim R. Gibson imposed the sentence on Brian J. Wimbley, 43.

According to information presented to the court, on Jan. 26, 2012, Wimbley possessed less than 500 grams of cocaine with the intent to distribute it.

Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Wimbley.

PITTSBURGH - A resident of New Kensington, Pa., pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.

Tremayne Carr, 38, pleaded guilty to one count before Senior United States District Judge Gustave Diamond.

In connection with the guilty plea, the court was advised that on February 6, 2014, Carr attempted to possess with intent to distribute a quantity of cocaine.

Judge Diamond scheduled sentencing for October 21, 2015 at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court ordered that Carr be held in home detention.

Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.

The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Carr.

PITTSBURGH- Two individuals pleaded guilty in federal court to a charge of conspiracy to defraud the United States in the computation and collection of individual and corporate income taxes, United States Attorney David J. Hickton announced today.

Paul Schneider and Lynda Schneider, husband and wife, pleaded guilty to one count each before United States District Judge Nora Barry Fischer.

In connection with the guilty plea, the court was advised that the Schneiders failed to file individual or corporate income taxes for themselves and their business, Cedar Direct, a company which designs and promotes the manufacture of log homes between 2006 and 2009. The defendants evaded the payments of taxes by using their corporate business checking account to pay personal expenses, by failing to maintain assets in their own names, and by failing to report or pay individual or corporate income taxes.

Judge Fischer scheduled sentencing for October 28, 2015. The law provides for a total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court continued the Schneiders on bond.

Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.

The Internal Revenue Service-Criminal Investigations conducted the investigation that led to the prosecution of Paul and Lynda Schneider.

PITTSBURGH – An Allegheny County pleaded guilty in federal court to a charge of distribution of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.

Michael Leneweaver, 49, of Crafton, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.

In connection with the guilty plea, on or about Sept. 5, 2013, Leneweaver distributed videos and images containing material depicting the sexual exploitation of minors.

Judge Hornak scheduled sentencing for Oct. 14, 2015, at 2 p.m. The law provides for a maximum total sentence of 90 years in prison, a fine of $1,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and the Allegheny County District Attorney’s Office conducted the investigation that led to the prosecution of Leneweaver.

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

PITTSBURGH - A resident of Fayette County, Pennsylvania, has been sentenced in federal court to 36 months imprisonment, followed by eight years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.

United States District Judge Maurice B. Cohill imposed the sentence on Jeremy S. Burnworth, 36, of Uniontown, Pennsylvania.

According to information presented to the court, on or about June 2, 2014, Burnworth knowingly possessed images in digital files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.

Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Reserve Township Police Department, and the Pennsylvania Office of Attorney General for conducting the investigation that led to the successful prosecution of Burnworth.

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

PITTSBURGH - A Penn Hills resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of cocaine, United States Attorney David J. Hickton announced today.

Abdul Boyd, 38, pleaded guilty to one count before United States District Judge Mark R. Hornak.

In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Abdul Boyd was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.

Judge Hornak scheduled sentencing for Oct. 15, 2015. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court continued the defendant’s detention.

Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Abdul Boyd.

PITTSBURGH - A resident of Allegheny County, Pennsylvania, pled guilty and has been sentenced in federal court to 100 months imprisonment, followed by 15 years supervised release, on his convictions of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.

Senior United States District Judge Gustave Diamond imposed the sentence on Brandon Quinn, 30, formerly of Crafton, Pa.

According to information presented to the court, on or about September 9, 2013, Quinn distributed images and videos in computer graphics files containing material depicting the sexual exploitation of minors. Quinn also was found to be in possession of visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.

Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended Homeland Security Investigations for conducting the investigation which led to the successful prosecution of Quinn.

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

PITTSBURGH - A resident of San Bernardino, Calif., pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.

Misha Cannon, 49, pleaded guilty to one count before United States District Judge Mark R. Hornak.

In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Misha Cannon was intercepted over the wire conspiring with others, including her brother, Lionel Cannon, to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier. During the conspiracy, Misha Cannon was responsible for transporting proceeds of the cocaine trafficking from the Western District of Pennsylvania to California. In August 2014, Misha Cannon also helped Lionel Cannon obtain a new supply of cocaine and conducted a deal for the purchase of one kilogram of cocaine, which was later seized by law enforcement.

Judge Hornak scheduled sentencing for Oct. 15, 2015. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court continued the defendant’s detention.

Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Misha Cannon.

PITTSBURGH - A Pittsburgh resident was sentenced in federal court to 10 years of incarceration on his conviction of federal heroin trafficking charges, United States Attorney David J. Hickton announced today.

United States District Judge Mark R. Hornak imposed the sentence on Omar Rashad Smith, 26.

According to information presented to the court, on June 21, 2012, Smith was apprehended by federal agents and Pittsburgh narcotics detectives fleeing a house where heroin was being actively packaged into individual dosage units commonly called “stamp bags.” The items located in the residence included various tools commonly used in heroin packaging, such as a scale, masks, a food processor and enough heroin to make well over 3,000 stamp bags-- worth nearly $30,000 on the street. Police also located a stolen firearm within an arm’s length of the table where the heroin was being processed.

Prior to imposing sentence, Judge Hornak considered the sentences imposed as a result of the defendant’s three previous convictions for felony drug offenses in Allegheny County and stated that the 10-year sentence was sufficient but not greater than necessary to deter others from heroin dealing. Judge Hornak also imposed 7 years of supervision by the United States Probation Office after Smith’s release, in order to help protect the public from further crimes of the defendant.

Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government and ensured that the drug money seized by police was forfeited. By forfeiting drug money, drug dealers ease the burden on taxpayers and actually help to investigate and prosecute future drug dealers.

U.S. Attorney Hickton commended the Drug Enforcement Administration (DEA), the Pittsburgh Bureau of Police, and the Allegheny County Probation Office for the investigation leading to the successful prosecution of Smith.

PITTSBURGH - A resident of Clairton, Pennsylvania, has been sentenced in federal court in Pittsburgh to an additional one year and one day in prison for violating his supervision on his previous crack cocaine dealing conviction, United States Attorney David J. Hickton announced today.

United States District Judge Nora Barry Fischer imposed the sentence on Jeffrey Carter.

According to information presented to the court, Carter violated his supervision by a United States Probation Officer in several ways: 1) he tested positive on numerous dates for the use of cocaine, marijuana and opiates; 2) he failed to notify his Probation Officer of his contacts with law enforcement; 3) he left Western Pennsylvania without permission; and 4) he changed jobs several times without notifying the Probation Officer.

Prior to imposing sentence, Judge Fischer stated that the sentence was sufficient but not greater than necessary to deter others from violating their supervision. Judge Fischer also imposed an additional one year of supervision once Carter is released from jail, in order to help protect the public from future criminal acts of the defendant.

Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the United States Probation Office for the investigation leading to the successful prosecution of Carter.

PITTSBURGH - A Beaver County resident pleaded guilty in federal court to a charge of travel with intent to engage in illicit sexual conduct, United States Attorney David J. Hickton announced today.

Donald L. Starkey, 57, of Beaver Falls, Pa., pleaded guilty to one count before United States District Judge Maurice B. Cohill, Jr.

In connection with the guilty plea, the court was advised that on June 4, 2012, Starkey, then 54 years of age, transported a 15-year-old female from Pennsylvania to North Carolina and engaged in sexual intercourse en route and while in North Carolina. A bystander observed Starkey and the minor female playing pool at a truck stop in Guilford County, North Carolina, and reported them to local authorities.

Judge Cohill scheduled sentencing for Sept. 10, 2015, at 11 a.m. The law provides for a maximum total sentence of not less than 15 years in prison or more than life, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

The court detained Starkey pending his sentencing hearing.

Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and the Beaver County District Attorney’s Office conducted the investigation that led to the prosecution of Donald L. Starkey.

PITTSBURGH - A former resident of the Duquesne and Pitcairn suburbs of Pittsburgh, Pennsylvania, has been sentenced in federal court upon his conviction of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.

United States District Judge David S. Cercone imposed a sentence of 20 years imprisonment followed by five years supervised release on Robert Russell Spence, aka “Little Russ” and “Slick”, 40.

The IRS Criminal Investigations section joined the DEA as major partners in the investigation of the current case with the valuable assistance of multiple other federal, state and local law enforcement agencies. The investigation revealed a major drug distribution conspiracy which resulted in cocaine being transported to Pittsburgh and other areas from 2000 through 2010. The evidence at trial established that the conspiracy involved over 2000 kilograms of cocaine and millions in laundered drug money. Over time, the conspiracy involved enough cocaine for every man, woman and child current resident of Pennsylvania to have their own $20 rock of crack cocaine and is believed to be one of the largest cocaine prosecutions ever in the Pittsburgh area.

Prior to the summer of 2007, the conspiracy utilized packages of cocaine being shipped by the US mail or various common carriers from California for recipients, such as Spence in Pittsburgh. Documents and evidence revealed the large number of packages of cocaine shipped to the conspirators, as well as the packages of drug money being shipped back. Multiple seizures of both money and cocaine packages occurred. For example, on June 7, 2007 Postal Inspectors intercepted six kilograms of cocaine from the mail that was earmarked for the conspiracy. On Aug. 5, 2007, Postal Inspectors also seized a package containing $99,850.00 intended for a co-defendant.

The conspiracy began using couriers to transport cocaine to Pittsburgh and money back to California. The investigation has revealed that between 2007 and 2010 at least 11 different couriers took approximately 200 airline flights for the conspiracy. These involved the transportation of cocaine to the Pittsburgh end of the conspiracy and the transportation of drug money back to California. Again, multiple packages of both money and cocaine were intercepted. For example, in February of 2008 co-defendant Ruben Mitchell boarded a plane in Oakland bound for Pittsburgh with cocaine in his luggage. Since the flight attendant had trouble getting the carry-on bag into the overhead bin, an airline employee called a “ramper” put a tag on the bag mistakenly causing it to be removed from the plane during a layover in Las Vegas. There, airline employees opened the bag and it was found to contain 19 kilograms of cocaine. Mitchell was observed, along with others, looking for the bag in Pittsburgh. On Aug. 8, 2009, over $335,000 in cash, just one part of approximately $700,000 that was sent on this occasion, was seized from the luggage of a conspirator.

During other times, the conspiracy arranged transportation of cocaine and/or money by means such as chartered private flights and vehicles including tractor trailers. Indicted individuals have performed many different roles within the conspiracy. Some conspirators were suppliers, couriers or recipient drug dealer/distributors. Other conspirators played a variety of tasks such as: shipping or receiving packages; arranging for couriers, flights and flight payments; money launderers; and those who circumvented security procedures at airports. The evidence showed that Spence was the main recipient of the cocaine that came to Pittsburgh and was personally responsible for more than 1500 kilograms of cocaine. Judge Cercone called Spence the “local fulcrum” of this large drug trafficking organization.

Federal agents obtained search warrants and simultaneously executed them in multiple locations in Pittsburgh and California, including a warehouse in a Pittsburgh suburb that Spence had rented under a false name. There, police located a significant stash of drug-processing items and also seized Spence’s vehicles and other assets. Experts testified that a drug dealer can substantially increase their profits by opening the packaged cocaine kilograms, grind the cocaine into a powder and mix in a diluent such as inositol. One of the items located in the warehouse was a hydraulic press which is utilized by drug dealers to forcefully press the now-diluted cocaine back into kilogram size packages in order to maintain the appearance that it is still “pure” and therefore more valuable. This process, sometimes called “re-rocking,” could turn two kilograms into three.

Spence conspired to launder his drug money in multiple ways including obtaining vehicles, prepaid credit cards, hotel reservations, houses, flights, drug processing materials and businesses in the names of other people. Spence also deposited cash in amounts below $10,000 in order to avoid federal laws requiring banks and others to report such transactions. The staggering amounts of money involved were proven by financial documents obtained by federal agents and acknowledged by cooperating witnesses. One witness, for example, testified to being sent to count one million dollars in drug cash for Spence and a separate witness testified to possessing $750,000 in drug cash for Spence on another date.

During his sentencing, Spence stated that he has been known as “a drug dealer all my life” and asked the Court for mercy. Despite his numerous previous convictions, Spence told the Court that “I can change.” Spence alleged that any illegal activities that he had committed were done simply in order to help his children financially, although the trial evidence showed Spence throwing extravagant parties (including those specifically for other drug dealers) and his purchase of expensive vehicles, jewelry and the like for himself. Spence even procured the regular services of a photographer he nicknamed “Paparazzi,” in order to document his lavish lifestyle.

The prosecution countered that Spence had, in person and in writing, threatened multiple prosecution witnesses, including forming the shape of a gun with his fingers while a witness was on the stand, testified falsely under oath and had filed numerous spurious motions in order to obstruct the legal process. The government also noted that Spence has arrests for burglary, drugs, fraud and weapon offenses in addition to more violent offenses like Aggravated Assault and Sexual Assault. The Court was advised that, in addition to a family member being shot to death, Spence’s chosen lifestyle has resulted in him being both shot and stabbed in the past.

Spence was released from prison and was on state parole for a previous conviction at the time he committed the federal charges. As a result, Spence faces the possibility of consecutive prison time from the Pennsylvania Board of Probation and Parole, and also has a pending significant heroin dealing charge in the Cleveland, Ohio area.

Assistant United States Attorneys Ross E. Lenhardt, Michael L. Ivory and Gregory J. Nescott prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Internal Revenue Service – Criminal Investigations, Drug Enforcement Administration, Pennsylvania Attorney General and many other federal, state and local law enforcement agencies for the investigation leading to the successful prosecution of Spence and the drug trafficking organization.

PITTSBURGH – A suburban Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of possession with intent to distribute and distribution of heroin, United States Attorney David J. Hickton announced today.

The four-count indictment, returned on June 9 and unsealed today, named Brandon Gibson, 38, of Duquesne, PA.

According to the indictment, on four separate occasions during the months of August and September, 2013, Gibson distributed heroin.

The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both, for each of the four counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation, Pittsburgh Bureau of Police, the Allegheny County Sheriff’s Office, and members of the Federal Bureau of Investigation Safe Street Task Force conducted the investigation leading to the indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of possession with the intent to distribute heroin, United States Attorney David J. Hickton announced today.

The one-count indictment, returned on June 9 and unsealed today named Carloto Neal, Jr., 20.

The indictment charges that on or about March 17, 2015, in the Western District of Pennsylvania, Neal possessed with the intent to distribute a quantity of heroin, a Schedule I controlled substance.

The law provides for a maximum total sentence of 20 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation, the Pennsylvania State Police, and members of the Federal Bureau of Investigation Safe Street Task Force, conducted the investigation leading to the indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH - A resident of Latrobe, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of health care fraud and obtained controlled substances through fraud, United States Attorney David J. Hickton announced today.

The two-count indictment, returned on June 9 and unsealed today, named Kari Richards, 28.

According to the indictment, Richards received health care benefits through Highmark and, in an attempt to obtain fraudulently various pain medications, caused Highmark to pay more than $600,000 in connection with claims in which she sought treatment over a 16-month period from more than 100 hospitals in eleven states on more than 300 occasions. Through this behavior, Richards obtained approximately 190 prescriptions for pain medications, including prescriptions for Schedule II controlled substances Oxycodone-Acetaminophen, Hydrocodone-Acetaminophen, Hydrocodone, and Oxycodone. As part of the scheme, Ms. Richards falsely represented the circumstances of injuries, which were mainly shoulder dislocations that she intentionally caused. She also misrepresented the medications that she received and her medical history.

The law provides for a maximum total sentence of 14 years of imprisonment, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

ERIE, Pa. - A resident of Bradenton, Florida, has been sentenced in federal court to 27 months in jail, and ordered to make restitution to Thayer Power and Communication in the amount of $202,789 and to the Internal Revenue Service in the amount of $87,840 on his conviction of bank fraud and tax evasion, United States Attorney David J. Hickton announced today.

Senior United States District Judge Maurice B. Cohill imposed the sentence on Brian M. Quimby,

According to information presented to the court, while Quimby was employed as CFO of Thayer Power and Communications, he engaged in an extensive check kiting scheme defrauding Key Bank and Thayer Power and Communication. In addition, Quimby failed to file his income tax return for calendar year 2007.

Prior to imposing sentence, Judge Cohill stated that he was troubled that Quimby had falsely told the IRS that he had mailed his tax return knowing that he had not filed the return with the IRS.

Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Quimby.

PITTSBURGH - An Armstrong County woman has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud and health care fraud, United States Attorney David J. Hickton announced today.

The eleven-count indictment named Francine Ann Priestas, 47, as the sole defendant.

According to the indictment presented to the court, Francine Ann Priestas was employed as a supervisor in the UPMC Health Plan Claims Department. Priestas generated billing statements which falsely represented that she and others known to the grand jury received medical services. She submitted 156 false statements on the UPMC system and received payments totaling $184,835.

The law provides for a maximum total sentence of 210 years in prison, a fine of $2,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH - A Washington County resident has been sentenced in federal court to three years of probation, with the first 12 months to served on home detention, on his conviction of wire fraud, United States Attorney David J. Hickton announced today.

Senior United States District Judge Terrence F. McVerry imposed the sentence on Barry Kent Peterson, 48, of Canonsburg, Pa.

According to information presented to the court, Peterson was the Vice President of Fullard Environmental Controls ("FEC") in Ford City, and that FEC performed demolition services in 2007 for the United States Department of the Navy in Beaufort, South Carolina. Peterson, along with another person employed at FEC, defrauded the government by submitting false information to the Department of the Navy regarding the costs that were incurred by FEC to perform the demolition services. Peterson, through FEC, defrauded the government in the amount of approximately $772,701.10. As part of the sentence, Judge McVerry ordered Peterson to forfeit $772,701.10 to the United States government.

During the sentencing hearing, Judge McVerry stated that the sentence of probation, rather than a sentence of imprisonment was due, in part, to Peterson’s extraordinary family hardships relating to the medical conditions of two of Peterson’s children.

Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Department of Defense, Office of Inspector General and Naval Criminal Investigative Service for the investigation leading to the successful prosecution of Peterson.

PITTSBURGH – A Pittsburgh resident has been sentenced in federal court to 70 months’ incarceration, followed by five years of supervised release, on his conviction of violating of the federal narcotics laws, United States Attorney David J. Hickton announced today.

United States District Judge Mark R. Hornak imposed the sentence on Antwon Lamar Richards, 29.

According to information presented to the court, from October 2013 to April 2014, in the Western District of Pennsylvania and elsewhere, Richards conspired with others to distribute and possess with the intent to distribute over two kilograms of cocaine. In addition, on Oct. 22, 2014, Richards possessed with intent to distribute a quantity of cocaine.

Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the the Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department for the investigation leading to the successful prosecution of Richards.

PITTSBURGH – Four Georgia residents have been sentenced in federal court by United States District Judge Nora Barry Fischer, United States Attorney David J. Hickton announced today.

Darrell Jerome Ryles, 56, of Dalton, Ga., was sentenced to 48 months incarceration followed by four years supervised release and restitution in the amount of $67,806.00, on his conviction of wire fraud conspiracy and aggravated identity theft. According to the information presented to the court, Ryles and others conspired to steal identities of other persons and inmates at correctional centers in Georgia which were used to electronically file unauthorized federal tax returns between 2010 and 2012. The tax returns sought tax refunds which were paid to Ryles and other conspirators in the false tax return scheme.

Beverly J. McHenry, 57, of Rome, Ga., was sentenced to probation for five years and restitution in the amount of $92,742.11, on her conviction of wire fraud conspiracy; Astrid P. Perry, 37, of Summerville, Ga., was sentenced to time served of 15 months incarceration, plus three years supervised release and restitution in the amount of $37,416.74 on her conviction of wire fraud conspiracy; and Heather A. Smith, 26, of Summerville, Ga., was sentenced to probation for five years and restitution in the amount of $98,331.41 on her conviction of wire fraud conspiracy. According to the information presented to the court, McHenry, Perry and Smith conspired to use stolen identities to file false federal 2010 and 2011 federal income tax returns requesting refunds payable to conspirators into banks and credit unions in Pittsburgh and Georgia.

Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation, for the successful prosecution of these defendants.

PITTSBURGH - A former bank director was sentenced in federal court to 144 months of imprisonment to be followed by five years of supervised release, and $9,934,159.41 in restitution, on his conviction on nine counts of misapplication and theft of funds by a bank director, United States Attorney David J. Hickton announced today.

United States District Judge Arthur J. Schwab imposed the sentence on Michael P. Bernick, 51, of Pittsburgh, Pa.

According to the evidence presented at trial, Bernick, a Director of the Metropolitan Savings Bank, formerly located in Pittsburgh’s Lawrenceville section, embezzled and misapplied in excess of $350,000 from the bank between January 2005 and March 2006. Donna Shebetich, Bernick’s girlfriend and the former Director and Vice President of Metropolitan, provided him with nine monetary disbursements from the bank’s checking account in the form of seven cashier’s checks and two wire transfers payable to Bernick, himself, or to financial institutions used to pay off his loans.

Bernick did not complete any loan applications, sign notes, or provide security for the monetary advances. Metropolitan’s procedures required that all advances be approved by the Board of Directors. Neither Bernick nor Shebetich sought the authorization from the Board of Directors, either before or after the advances were extended. Bernick’s thefts jeopardized the soundness of the bank and ultimately caused the failure of Metropolitan on Feb. 2, 2007. Shebetich is currently serving a six-year term of imprisonment for filing false quarterly reports with the FDIC, which further secreted Bernick’s conduct.

Assistant United States Carolyn J. Bloch prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation for conducting the investigation that led to the successful prosecution of Bernick.

JOHNSTOWN, Pa. - On June 2, 2015, six residents of Portage, Pa., were indicted by a federal grand jury in Johnstown on a charge of conspiring to commit money laundering, United States Attorney David J. Hickton announced today.

The one-count indictment named Tonia Vaughn, 39; Gary E. Vaughn, 41; Melissa R. Seymore, 39; Jason A. Seymore, 39; Brandon Hill, 19; and Brittany Garrett, 21.

According to the indictment presented to the court, from Jan. 1, 2012, to Jan. 22, 2014, the named defendants conspired with one another, and with others, to commit certain offenses against the United States, that is, to knowingly conduct and attempt to conduct financial transactions affecting interstate and foreign commerce, which involved property representing the proceeds of a specified unlawful activity, that is, mail fraud, in violation Title 18, United States Code, Section 1341, with the intent to promote the carrying on of the specified unlawful activity, and that while conducting and attempting to conduct such financial transaction knew that that property involved in the financial transaction represented the proceeds of some form of unlawful activity in violation of Title 18, United States Code, Section 1956(a)(1)(A)(i).

It was part of the conspiracy that the direction of and business decisions at Gary’s Steals and Deals were made by TONIA VAUGHN and/or GARY E. VAUGHN. It was further part of the conspiracy that, on a daily basis, customers would bring stolen new merchandise [a/k/a “new in package (NIP)” or “new in box (NIB)”] to Gary’s Steals and Deals for purchase by Gary’s Steals and Deals. It was further part of the conspiracy that, on a daily basis, employees of Gary’s Steals and Deals would purchase the stolen new merchandise, knowing it had been stolen. It was further part of the conspiracy that employees at Gary’s Steals and Deals would tender a monetary percentage of the retail value of the stolen new merchandise back to the customer. It was further part of the conspiracy that on frequent occasions, the same customer(s) would bring numerous identical stolen new items of merchandise to Gary’s Steals and Deals (including but not limited to razor blades, pet products, teeth whitening strips, ink cartridges, jackets, Lego sets), which were repetitively purchased from the customer(s) by employees at Gary’s Steals and Deals. It was further part of the conspiracy that the stolen merchandise that had been purchased from the customers by Gary’s Steals and Deals was thereafter sold by Gary’s Steals and Deals over the Internet on websites such as Ebay and Amazon. It was further part of the conspiracy that Gary’s Steals and Deals utilized the mail to deliver the stolen merchandise to persons who had purchased such merchandise over the Internet. It was further part of the conspiracy that Gary’s Steals and Deals would receive monetary payments for the stolen merchandise that had been sold over the Internet. It was further part of the conspiracy that, in connection with the above-described offense (mail fraud, in violation of Title 18, United States Code, Section 1341) the named defendants obtained proceeds of such conduct.

The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of each of the defendants.

Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.

The Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation leading to the indictment in this case.

An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal laws concerning robbery, use of a firearm, and firearm possession, United States Attorney David J. Hickton announced today.

The 11-count indictment named George Wilson, III.

According to indictment, Wilson committed a series of armed robberies of businesses throughout the Pittsburgh area from November 2014 through December 2014. During that time Wilson committed armed robberies of three stores called “The Exchange” and during one robbery Wilson discharged a firearm. Wilson also committed armed robberies of two Sunoco stations and one Exxon station. Due to a prior conviction for a felony offense, Wilson is prohibited from possessing firearms.

The law provides for a total sentence of not less than 25 years and up to life in prison, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.

Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation, the Pittsburgh Police Department, the Monroeville Police Department, the Ross Township Police Department, the Penn Hills Police Department and the Wilkins Township Police Department conducted the investigation leading to the indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH - A Pittsburgh-area resident pleaded guilty to charges of violating federal narcotics and firearms laws, and was subsequently sentenced to 10 years’ imprisonment followed by three years of supervised release, United States Attorney David J. Hickton announced today.

Montay King, a/k/a Tay Loc, 39, pleaded guilty to four counts before United States District Judge David S. Cercone.

In connection with the guilty plea, the court was advised that on or about Dec. 20, 2012, King possessed with the intent to distribute 1,500 stamp bags of heroin weighing 37 grams, 171 grams of cocaine, and five grams of crack cocaine, while simultaneously possessing two assault rifles and a handgun in furtherance of his drug trafficking crimes. The drugs and firearms were found inside King’s 1998 Ford Expedition parked outside of his residence following searches by the Allegheny County Probation Office and the Allegheny County Sheriff’s Office.

Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allegheny County Adult Probation Office, and the Allegheny County Sheriff's Office Fugitive Task Force for the investigation leading to the successful prosecution of King. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.

PITTSBURGH, PA - A resident of the State of Georgia has been sentenced in federal court to probation for a term of five years and restitution ordered in the amount of $139,357.27 on his conviction of wire fraud conspiracy, United States Attorney David J. Hickton announced today.

United States District Judge Nora Barry Fischer imposed the sentence on Edward Claude Hammitt, 67, of Summerville, GA.

In connection with the guilty plea, the court was advised that Hammitt and others conspired to steal identities of other persons which were used to file false electronic federal tax returns between 2010 and 2012.

Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation for the successful prosecution of Hammitt.

PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of failing to register as a sex offender, United States Attorney David J. Hickton announced today.

Christopher DeWayne Hayes, 50, formerly of Turner County, Georgia, pleaded guilty to one count before United States District Judge Cathy Bissoon.

In connection with the guilty plea, the court was advised that from June 12, 2014 to Feb. 5, 2015, Hayes, while living in Pennsylvania, failed to register as a sex offender, as required by the Sex Offender Registration and Notification Act. He was required to register by reason of his 1990 conviction in the State of Georgia for child molestation of a child under the age of 14 years.

Judge Bissoon scheduled sentencing for Sept. 9, 2015, at 10 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

The court detained Hayes pending his sentencing hearing.

Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.

The United States Marshal Service conducted the investigation that led to the prosecution of Christopher DeWayne Hayes.

PITTSBURGH - A Pittsburgh man has been sentenced in federal court to 90 months’ imprisonment on his convictions of bank embezzlement, bank fraud, mail fraud, tax fraud, conspiracy to commit counterfeiting and aggravated identity theft, United States Attorney David J. Hickton announced today.

Senior United States District Judge Terrrence F. McVerry imposed the sentence on Joseph Graziano, Jr., 29, of Pittsburgh, Pa.

According to information presented to the court, from May 12, 2008 through March 25, 2011, Graziano was employed by Bank of New York Mellon as a Corporate Trust Administrator. In this position, he had the access and ability to wire funds in and out of accounts held by the bank’s corporate trust customers. Graziano used this access to embezzle $2,441,294.35 from Bank of New York Mellon by wiring funds from the corporate trust accounts into his own bank accounts. In federal income tax returns, he failed to report the embezzled funds as income.

In the time before and after Graziano was employed by Bank of New York Mellon, he also engaged in schemes to defraud five other banks including Dollar Bank, First Niagara Bank, First Commonwealth Bank, Ameriserv Financial Bank and PNC Bank. In these schemes, the defendant submitted fraudulent loan documents to induce the banks to extend credit to him.

Following the bank embezzlement and the bank frauds, the defendant began engaging in a new and separate scheme to defraud through the online marketplace www.ebay.com. The defendant defrauded eBay buyers by offering personal electronics for sale on eBay. After the buyers submitted payment to the defendant's PayPal account, the defendant sent the buyers empty boxes, falsely claiming that the boxes' contents had been stolen during shipping. After the defendant had been indicted on charges relating to those offenses, and while he was on pretrial release, the defendant began to engage in new and separate criminal conduct. Only a few months after he was charged in the original indictment, Graziano engaged in a conspiracy to purchase counterfeit United States currency through a source in the Republic of Uganda with the intent to pass the counterfeit currency at retail locations in the United States. The defendant used a stolen identity to set up a mailbox to receive the shipments of counterfeit currency from Uganda and also attempted to open a credit card and bank account using the stolen Identity.

Prior to imposing sentence, Judge McVerry stated that the defendant has cheated and stolen his way through life and that by continuing to commit offenses while on pretrial release, the defendant demonstrated no respect for the law or for himself.

Assistant United States Attorney Tonya Sulia Goodman prosecuted these cases on behalf of the government.

U.S. Attorney Hickton commended the Federal Bureau of Investigation, United States Postal Inspection Service, Internal Revenue Service, Criminal Investigation Division, the Department of Homeland Security, Homeland Security Investigations, and the United States Secret Service for the investigation leading to the successful prosecution of Graziano.

Fifteen Chinese nationals have been indicted by a federal grand jury in Pittsburgh, Pennsylvania on charges of conspiracy, counterfeiting foreign passports, mail fraud and wire fraud, U.S. Attorney David J. Hickton for the Western District of Pennsylvania announced today.

The 35 count indictment, returned on May 21, 2015, and unsealed today, names the following 12 individuals as defendants: Han Tong, Xi Fu, Xiaojin Guo, Yudong Zhang, Yue Zou, Biyuan Li aka “Jack Li,” Jia Song, Ning Wei, Gong Zhang, Songling Peng, Siyuan Zhao and Yunlin Sun.  The identities of the three additional defendants remain under seal.

According to the indictment, between 2011 and 2015, the defendants engaged in a conspiracy and a scheme to defraud Educational Testing Services (ETS) and the College Board by having imposters take college and graduate school standardized entrance examinations, such as the Test of English as a Foreign Language (TOEFL), the Scholastic Aptitude Test (SAT) and the Graduate Record Examination (GRE).  In carrying out the scheme, the conspirators had counterfeit Chinese passports made and sent to the United States, which were used by the imposters to defraud ETS administrators into believing that they were other people, namely the conspirators who would receive the benefit of the imposter’s test score for use at American colleges and universities.  The majority of the fraudulent exams taken by the conspirators were taken in western Pennsylvania.

“The perpetrators of this conspiracy were using fraudulent passports for the purpose of impersonating test takers of standardized tests including the SAT, GRE and TOEFL and thereby securing fraudulently obtained admissions to American institutions of higher education and circumventing the F1 Student Visa requirements,” stated U.S. Attorney Hickton.  “This case establishes that we will protect the integrity of our passport and visa process, as well as safeguard the national asset of our higher education system from fraudulent access.”

“These students were not only cheating their way into the university, they were also cheating their way through our nation’s immigration system,” said Special Agent in Charge John Kelleghan for Homeland Security Investigations (HSI) of Philadelphia.  “HSI will continue to protect our nation’s borders and work with our federal law enforcement partners to seek out those committing transnational crimes and bring them to justice.”

“The State Department’s Diplomatic Security Service (DSS) is committed to working with the U.S. Attorney’s Office and our other law enforcement partners to investigate allegations of crime related to passport fraud and to bring those who commit these crimes to justice,” said Special Agent in Charge David Schnorbus for DSS’s New York Field Office.  “If criminal enterprises are able to manipulate instruments of international travel for profitable gain, then national security is at risk.”

The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both for each count of wire and mail fraud, 10 years in prison, a fine of $250,000 or both for each count of counterfeiting foreign passports, and five years in prison, a fine of $250,000 or both for conspiracy.  Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.  

Assistant U.S. Attorney James T. Kitchen is prosecuting this case on behalf of the government.

The Department of Homeland Security, HSI and the Department of State conducted the investigation leading to the indictment in this case.  U.S. Attorney Hickton acknowledged that ETS and the College Board cooperated fully in the investigation.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Imposters Using Fake Passports Took College, Grad School Entrance Exams for Prospective Foreign Students

PITTSBURGH—Fifteen Chinese nationals have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy, counterfeiting foreign passports, mail fraud and wire fraud, United States Attorney David J. Hickton announced today.

The 35-count indictment, returned on May 21, and unsealed today, names the following 12 individuals as defendants: Han Tong, Xi Fu, Xiaojin Guo, Yudong Zhang, Yue Zou, Biyuan Li (aka “Jack Li”), Jia Song, Ning Wei, Gong Zhang, Songling Peng, Siyuan Zhao and Yunlin Sun. The identities of the three additional defendants remain under seal.

According to the indictment, between 2011 and 2015, the defendants engaged in a conspiracy and a scheme to defraud Educational Testing Services (ETS) and the College Board by having imposters take college and graduate school standardized entrance examinations, such as the Test of English as a Foreign Language (TOEFL), the Scholastic Aptitude Test (SAT), and the Graduate Record Examination (GRE). In carrying out the scheme, the conspirators had counterfeit Chinese passports made and sent to the United States, which were used by the imposters to defraud ETS administrators into believing that they were other people, namely the conspirators who would receive the benefit of the imposter’s test score for use at American colleges and universities. The majority of the fraudulent exams taken by the conspirators were taken in western Pennsylvania.

“The perpetrators of this conspiracy were using fraudulent passports for the purpose of impersonating test takers of standardized tests including the SAT, GRE and TOEFL, and thereby securing fraudulently obtained admissions to American institutions of higher education and circumventing the F1 Student Visa requirements,” stated U.S. Attorney Hickton. “This case establishes that we will protect the integrity of our passport and visa process, as well as safeguard the national asset of our higher education system from fraudulent access.”

“These students were not only cheating their way into the university, they were also cheating their way through our nation’s immigration system,” said John Kelleghan, Homeland Security Investigations Philadelphia Special Agent in Charge. “HSI will continue to protect our nation’s borders and work with our federal law enforcement partners to seek out those committing transnational crimes and bring them to justice.”

“The State Department’s Diplomatic Security Service (DSS) is committed to working with the U.S. Attorney’s Office and our other law enforcement partners to investigate allegations of crime related to passport fraud, and to bring those who commit these crimes to justice,” said David Schnorbus, Special Agent in Charge for DSS’s New York Field Office. “If criminal enterprises are able to manipulate instruments of international travel for profitable gain, then national security is at risk.”

The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both for each count of wire and mail fraud, 10 years in prison, a fine of $250,000 or both for each count of counterfeiting foreign passports, and five years in prison, a fine of $250,000 or both for conspiracy. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.

Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.

The Department of Homeland Security, Homeland Security Investigations and the Department of State conducted the investigation leading to the indictment in this case. U.S. Attorney Hickton acknowledged that ETS and the College Board cooperated fully in the investigation.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH - A former resident of Pittsburgh, Pennsylvania was sentenced yesterday in federal court to one year probation on a misdemeanor charge of deprivation of civil rights under color of law, to which the defendant pleaded guilty earlier this year, United States Attorney David J. Hickton announced today.

United States Magistrate Judge Lisa Pupo Lenihan imposed the sentence on McArthur Mosley, 28, of Pittsburgh, Pa.

According to information presented to the court, on or about April 14, 2014, Mosley, while acting under color of law as a youth care worker with the Shuman Juvenile Detention Center, willfully deprived the victim of the right, secured and protected by the United States Constitution, not to be subjected to excessive force amounting to punishment by someone acting under color of law.

Assistant United States Attorneys Cindy K. Chung and Shaun Sweeney prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Federal Bureau of Investigation for conducting the investigation that led to the successful prosecution of McArthur Mosley.

PITTSBURGH. - A former resident of Allegheny County, Pennsylvania, was sentenced in federal court to 10 years imprisonment, followed by a lifetime supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.

United States District Judge Gustave Diamond imposed the sentence on James Stover, 28, formerly of Pittsburgh, Pa.

According to information presented to the court, on or about Aug. 15, 2013, Stover knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.

Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Federal Bureau of Investigation for conducting the investigation that led to the successful prosecution of Stover.

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

ERIE, Pa. - A former resident of Gates, New York, has been sentenced in federal court to 69 months in jail and ordered to make restitution of $16,370 on his convictions for bank robbery, United States Attorney David J. Hickton announced today.

United States District Judge Elizabeth A.Wolford of the Western District of New York imposed the sentence on Christopher Mancuso, 43.

According to information presented to the court, on Nov. 6, 2012, Mancuso robbed $10,060 from the M&T Bank at 1282 Long Pond Road, Greece, New York. On Dec. 18, 2013, Mancuso robbed $3,200 from the Chase Bank, located at 3917 Lake Avenue, Rochester, New York. On Jan. 17, 2014, Mancuso acted as the getaway driver during a robbery of Chase Bank, located at 2900 Dewey Avenue, Rochester, New York. Finally, on Jan. 31, 2014, Mancuso again acted as the getaway driver during a robbery at First Niagara Bank located at 12 Spencerport Road, Rochester, New York.

Prior to imposing sentence, Judge Wolfrod noted that Mancuso was on parole during each of the four bank robberies. Judge Wolford also took into account Mancuso’s lengthy criminal history dating back to his teenage years.

Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Federal Bureau of Investigation, under the direction of Special Agent-In-Charge Brian P. Boetig, the Gates Police Department, under the direction of Chief James VanBrederode, the Greece Police Department, under the direction of Chief Patrick Phelan, and the Rochester Police Department, under the direction Chief Michael Ciminelli for the investigation leading to the successful prosecution of Mancuso.

ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 92 months imprisonment on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.

United States District Judge David S. Cercone imposed the sentence on Jarron Darvez Jackson, 31.

According to information presented to the court, On April 16, 2011, Jackson became involved in a physical altercation inside the McDonald’s restaurant on Sassafras Street in Erie, Pennsylvania. After the altercation, Jackson retrieved a Kimber .45 caliber handgun from his vehicle and shot at other individuals as they were driving away from the restaurant. Jackson was prohibited from firearm possession because of his prior criminal convictions.

Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Erie Police Department for the investigation leading to the successful prosecution of Jackson.

ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 4 years probation, 24 months home detention and ordered to forfeit firearms, destructive devices and explosive materials on his conviction of violating federal gun laws, United States Attorney David J. Hickton announced today.

United States District Judge David S. Cercone imposed the sentence on Gerald Szymanowski, 67.

According to information presented to the court, on or about June 19, 2014, Szymanowski possessed approximately 38 unregistered firearms, including machineguns, silencers and destructive devices not registered to him in the National Firearms Registration and Transfer record and manufactured approximately 372 devices of varying sizes containing explosive materials.

Prior to imposing sentence, Judge Cercone commented on the seriousness of the offense, but imposed the sentence on Szymanowski primarily because of Szymanowski’s frail health.

Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Szymanowski.

ERIE, Pa. - Two residents of Erie, Pennsylvania pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney David J. Hickton announced today.

Levonne Rowan, 32, and Dywon Rowan, 31, pleaded guilty to one count before United States District Judge David S. Cercone.

In connection with the guilty plea, the court was advised that the Rowans were arrested after ordering 3.5 kilograms of cocaine in exchange for $142,800. The cash was seized from the Rowans when they arrived in Edinboro, Pennsylvania to purchase the cocaine.

Judge Cercone scheduled sentencing for August 31, 2015. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.

Pending sentencing, the court continued the Rowans on bond.

Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.

A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the prosecution of Levonne and Dywon Rowan. The task force is headed by the Drug Enforcement Administration and Homeland Security Investigations and is comprised of members drawn from the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service and the Bureau of Alcohol Tobacco Firearms and Explosives. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

PITTSBURGH – Following a multi-agency investigation into drug trafficking in Clairton, Pa., 14 people – 13 residents of Pennsylvania and one resident of New Jersey – have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws. The charges are contained in six separate, but related, indictments returned on May 12, 2015, and unsealed today.

“Through this investigation, which utilized Title III intercepts of cellular telephones, surveillance, controlled drug purchases, and other investigate techniques, we identified a number overlapping and interrelated violent drug distribution networks operating in Clairton, McKeesport, Washington County, Westmoreland County and New Jersey,” stated U.S. Attorney Hickton. “Our work to ensure that law abiding citizens have safe streets and peaceful neighborhoods continues.”

“The arrests today demonstrate, once again, the continued successful partnership of federal, state and local law enforcement in Western Pennsylvania,” said Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Field Office. “The Pittsburgh Division of the FBI remains committed to stopping the flow of illegal drugs and improving the quality of life in the communities we serve.”

“One of our primary obligations is keeping our communities safe, and I applaud the work of our OAG agents and the FBI for their great work in this endeavor,” Pennsylvania Attorney General Kathleen G. Kane added.

THE INDICTMENTS

The first indictment, containing four counts, names: Jarran Bell, 34, aka Screw, formerly of McKeesport, PA, currently incarcerated; Krystle Barretto, 29, aka Krystal Barretto, of McKeesport, PA; Amanda Santiago, 23, aka Mandy Santiago, of Jersey City, NJ; and
Donald Mitchell, 34, aka Don Mitchell, aka Curly Top, of New Eagle, PA.

According to the indictment, from in and around January 2015, and continuing thereafter to in and around April 2015, the defendants conspired with one another to distribute and possess with intent to distribute one kilogram or more of heroin; Jarran Bell, Krystle Barretto and Amanda Santiago are each charged with one count of possession with intent to distribute 100 grams or more of heroin; and Jarran Bell and Krystle Barretto are each charged with one count of possession with intent to distribute less than 100 grams of heroin and possess of a firearm in furtherance of a drug trafficking crime.

The law provides for maximum total sentences ranging from up to 20 years in prison up to life in prison, as well as mandatory minimum sentences starting at five years in prison. Fines ranging from $250,000 to up to $20,000,000 may also apply.

The second indictment, containing one count, names: Drake Cheadle, 22, aka Tootie, of Clairton, PA; Oscar Woods, Jr., 51, of Clairton, PA; Franklin Spence, III, 20, of McKeesport, PA; Isaac Love, 23, of Clairton, PA; Heidi Welsh, 27, of Connellsville, PA; and
Vance Gibson, 38, aka G-Hype. of Clairton, PA.

According to the indictment, from in and around October 2014, and continuing thereafter to in and around May 2015, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin (except for Welsh).

The law provides for a minimum sentence of 10 years in prison, up to life in prison, a fine of up to $20,000,000, or both.

The third indictment, containing one count, names: Bradley Dawkins, aka B-Dawk, 26, of Clairton, PA.

According to the indictment, on or about April 1, 2015, Dawkins, being a convicted felon, illegally possessed an Intratec, Model TECDC9, 9mm caliber pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.

The law provides for a maximum total sentence of up to ten years in prison or up to life in prison, as well as the possibility of a mandatory minimum sentence of 15 years in prison, depending on the defendant’s prior criminal history. A fine of up to $250,000 may also apply.

The fourth indictment, containing one count, named: Skylar Simmons, aka Bo, aka Bo Bo, of Clairton, PA.

According to the indictment, in and around March 2015, Simmons, being a convicted felon, illegally possessed a Ruger, Model P97, .45 caliber pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.

The law provides for a maximum total sentence of up to ten years in prison or up to life in prison, as well as the possibility of a mandatory minimum sentence of 15 years in prison, depending on the defendant’s prior criminal history. A fine of up to $250,000 may also apply.

The fifth indictment, containing one count, names: Kelli Johnson, 36, of Clairton, PA.

According to the indictment, from in and around December 2014, and continuing thereafter to in and around March 2015, Johnson conspired with others to distribute and possess with intent to distribute 28 grams or more of cocaine base, in the form commonly known as crack.

The law provides for a mandatory minimum of five years and up to a maximum total sentence of 40 years in prison, a fine of up to $8,000,000, or both.

The sixth indictment, containing two counts, names: Tyler Hurt, 22, aka Boski, of Clairton, PA.

According to the indictment, from in and around February 2014, and continuing thereafter to in and around April 2015, Hurt conspired with others to distribute and possess with intent to distribute a quantity of heroin. Additionally, on or about April 1, 2015, Hurt, being a convicted felon, illegally possessed an Intratec, Model TECDC9, 9mm caliber pistol

The law provides for a maximum total sentence of up to 20 years in prison or up to life in prison, as well as the possibility of a mandatory minimum sentence of 15 years in prison, depending on the defendant’s prior criminal history. A fine ranging from $250,000 up to $2,000,000 may also apply.

Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorneys Amy L. Johnston and Ross E. Lenhardt are prosecuting this case on behalf of the government.

A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictment in this case. The task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including the Pennsylvania Office of the Attorney General, Clairton Police Department, Wilkinsburg Police Department, West Mifflin Police Department, Allegheny County Police Department, Duquesne Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

JOHNSTOWN, Pa. - A resident of the Dominican Republic, has been sentenced in federal court to one year and one day in prison and ordered to pay restitution of $121,000 to Highmark Blue Cross/Blue Shield on his conviction of filing false individual and corporate tax returns and health care fraud, United States Attorney David J. Hickton announced today.

United States District Judge Kim R. Gibson imposed the sentence on Dr. William R. Acosta.

According to information presented to the court, Acosta, a physician licensed to practice in Pennsylvania, filed three false individual income tax returns and three false corporate income tax returns for calendar years 2001, 2002, and 2003, whereby he failed to report $561,129 in taxable income, resulting in an underpayment of $181,460 in income tax owed to the United States.

In addition, from Aug. 28, 2002, to Jan. 24, 2003, Acosta submitted false and fraudulent claims to Highmark Blue Cross/Blue Shield for levels of services higher than what he actually provided, and he unjustly received payment at the higher level from Highmark.

Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Internal Revenue Service/Criminal Investigation and the Department of Health and Human Services/Office of Inspector General for the investigation leading to the successful prosecution of Acosta.