Western District of Pennsylvania

PITTSBURGH- After a lengthy investigation into drug trafficking in Wilkinsburg, Pennsylvania, forty-four (44) people - 43 residents of Pennsylvania, and one resident of New Jersey - were indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws. On May 21, 2014, a federal grand jury issued one superseding indictment and five indictments, all related to one another, United States Attorney David J. Hickton announced today.

“Heroin is a huge problem in Western Pennsylvania,” stated U.S. Attorney Hickton. “The prosecution of this gun-toting, drug trafficking conspiracy will disrupt a major heroin pipeline from Newark to our area. These conspirators brazenly sold their illegal drugs openly on the streets of our communities. Today they are out of business.”

According to Patrick Fallon, Asst. Special Agent in Charge of the Federal Bureau of Investigation – Pittsburgh Office, “Today’s arrests are the result of a long-term, multi-agency investigation conducted by the Greater Pittsburgh Safe Streets Gang Task Force. As a result of the hard work and dedication exhibited by members of the Task Force, today we made dozens of arrests that will have a positive impact on the safety and quality of life in our local communities. We recognize, however, law enforcement is but one part of the multi-pronged effort to address the growing heroin epidemic impacting our community. We are keenly aware that in order to succeed in our efforts, the law enforcement community must continue to work together with the support and trust of the citizens we serve.”

THE INDICTMENTS

The first indictment (superseding), containing six counts, named:

• Keith Eutsey, 38, formerly of Nazareth, Pa., currently incarcerated;
• Che Hawkins, 35, formerly of Duquesne, Pa., currently incarcerated;
• Isaiah Cross, 24, formerly of Newark, NJ, currently incarcerated;
• Shaneeca Johnson, 31, of Duquesne, Pa.;
• Rahde Williamson, 18, of Duquesne, Pa.;
• Maurice Demery, 38, of West Mifflin, Pa.;
• Shelby Jeffries, 31, of Munhall, Pa.; and
• Rashawn Coward, 34, of McKees Rocks, Pa.

According to the indictment, from in and around January, 2014, and continuing thereafter to in and around April 3, 2014, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Keith Eutsey and Isaiah Cross are each charged with one count of possession with intent to distribute and distribution of 100 grams or more of heroin; Che Hawkins is charged with possession with intent to distribute 100 grams or more of heroin; and Isaiah Cross and Rahde Williamson are each charged with one count of possession with intent to distribute less than 100 grams of heroin.

The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 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.

The second indictment, containing nine counts, named:

• Terrell Evans, 21, of Monroeville, Pa.;
• Jamont Neal, 23, of McKeesport, Pa.;
• Jordan Smith, 24, of Export, Pa.;
• Brian Shunk, 28, of Claridge, Pa.;
• Edward Lutz, 23, of Indiana, Pa.;
• Courtney Sullivan, 31, of Indiana, Pa.;
• Thomas Marks, Jr., 28, of Greensburg, Pa.;
• Michael Lyons, 18, of Turtle Creek, Pa.; and
• Edwin Williams, 24, of Verona, Pa.

According to the indictment, from in and around October, 2013, and continuing thereafter to in and around May, 2014, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Terell Evans is charged with one count of employing or using a person under 18 years of age in drug operations and three counts of distribution and possession with intent to distribute 100 grams of heroin; Brian Shunk, Edward Lutz, Courtney Sullivan, and Thomas Marks, Jr., are each charged with one count of possession with intent to distribute less than 100 grams of heroin.

The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 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.

The third indictment, containing four counts, named:

• Anthony Berry, Jr., 21, formerly of Duquesne, Pa., currently incarcerated;
• Shawn Whitley, Jr., 23, of Wilmerding, Pa.;
• Donald Freeman, 24, of Pittsburgh, Pa.;
• Darrell Heaps, 23, of Duquesne, Pa.; and
• Melvin Calloway, 21, of Munhall, Pa.

According to the indictment, from in and around December, 2013, and continuing thereafter to in and around March, 2014, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Anthony Berry, Jr., is charged with one count of possession with intent to distribute less than 100 grams of heroin and one count of possession of a firearm by a convicted felon; and Melvin Calloway is charged with one count of possession with intent to distribute less than 100 grams of heroin.

The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 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.

The fourth indictment, containing five counts, named:

• Homer McClung, 27, of Wilkins Township, Pa.;
• Brandon McWright, 26, of Wilkins Township, Pa.;
• Lewis Van Burt III, 29, of Pittsburgh, Pa.;
• Robert Dorsey, 20, of Pittsburgh, Pa.;
• Samuel Brooks, 27, of Pittsburgh, Pa.; and
• Robert Smiley, 23, of Pittsburgh, Pa.

According to the indictment, from in and around June, 2013, and continuing thereafter to in and around May, 2014, the defendants conspired with one another to possess with intent to distribute and distribute 100 grams or more of heroin; Robert Smiley is charged with one count of possession with intent to distribute less than 100 grams of heroin, and Lewis Van Burt III is charged with one count of possession with intent to distribute 100 grams of heroin, one count of possession of a firearm and ammunition by a convicted felon, and one count of carrying a firearm during a drug trafficking crime and possession in furtherance thereof.

The law provides for a mandatory minimum of five years and up to a maximum total sentence of forty 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.

The fifth indictment, containing seven counts, named:

• Paris Wilson, 22, of Monroeville, Pa.;
• Quamar Linton, 28, of Pittsburgh, Pa.;
• Miranda Rosenberger, 28, of Kittanning, Pa.;
• Michael Cox, 38, of Kittanning, Pa.;
• Shawn Ellis, Jr., 24, of Pittsburgh, Pa.;
• William Smith, 32, of Ford City, Pa.;
• Breya Bowles, 22, of Turtle Creek, Pa.;
• Melvin Moore, 24, of Pittsburgh, Pa.;
• Charles Blystone, 43, of Rural Valley, Pa.;
• Salah Tinsley-Ewell, 21, of Pittsburgh, Pa.;
• Travis Anthony, 27, of Kittanning, Pa.; and
• Benton Nixon, 26, of Pittsburgh, Pa.

According to the indictment, from in and around October, 2013, and continuing thereafter to in and around May, 2014, Wilson, Linton, Rosenberger, Cox, Ellis, Jr., Smith, Bowles, Moore, Blystone, and Tinsley-Ewell conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Paris Wilson is charged with one count of employing or using a person under 18 years of age in drug operations; Travis Anthony is charged with one count of possession of a firearm by a drug user or addict; Melvin Moore, Charles Blystone, and Benton Nixon are each charged with one count of possession with intent to distribute less than 100 grams of heroin; and William Smith is charged with one count of carrying a firearm during a drug trafficking crime and possession in furtherance thereof.

The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 or both for Wilson, Linton, Rosenberger, Cox, Ellis, Jr., Smith, Bowles, Moore, Blystone, and Tinsley-Ewell; the law provides for a term of up to ten years in prison and a fine of $250,000 for Anthony; and the law provides for a term of up to twenty years in prison and $1,000,000 or both for Nixon. 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 sixth indictment, containing four counts, names:

• Dominique Harvey, 22, of Plum, Pa.;
• Robert Hyatt, 28, of Pittsburgh, Pa.;
• Kenneth Mitchell, 18, of Penn Hills, Pa.; and
• Darrell Barham, 30, of Wilkinsburg, Pa.

According to the indictment, from in and around June, 2013, and continuing thereafter to in and around May, 2014, the defendants conspired with one another to possess with intent to distribute and distribute one kilogram or more of heroin; Dominique Harvey is charged with one count of employing or using a person under 18 years of age in drug operations; Robert Hyatt is charged with one count of possession with intent to distribute less than 100 grams of heroin; and one count of possession of a firearm and ammunition by a convicted felon.

The law provides for a mandatory minimum of ten years and up to a maximum total sentence of life in prison, a fine of $10,000,000 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 Amy L. Johnston is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation, the FBI 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, and the Pittsburgh 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 - After deliberating for three hours on May 23, a federal jury of six men and six women found Rafael A. Cabrera, a/k/a Rubio, guilty of one count of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, United States Attorney David J. Hickton announced today.

Rafael Cabrera, 35, of Passaic, New Jersey was tried before United States District Judge Mark R. Hornak in Pittsburgh, Pa.

According to Assistant United States Attorney Eric S. Rosen, who prosecuted the case along with Special Assistant United States Attorney Jake Pugh, the evidence presented at trial established that from August 2012 to Jan. 10, 2013, Cabrera, who lives in New Jersey, brought large shipments of heroin to a co-conspirator at highway rest stops in Carlisle, Pa. Upon receipt of the heroin, the co-conspirator brought the heroin back to Pittsburgh, where it was sold to local drug dealers. The proceeds from these drug sales were then funneled back to Cabrera in New Jersey after the heroin was distributed. In total, the Government presented evidence that Cabrera delivered more than 1,500 bricks of heroin to his co- conspirator in Carlisle. These heroin bricks, each containing between one and two grams of heroin, have a street value of more than $300,000.

Judge Hornak has not yet set a date for sentencing. As Cabrera has a prior felony drug distribution conviction, the law provides for a total sentence of up to life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court continued Cabrera’s detention.

The Federal Bureau of Investigation, as assisted by the City of Pittsburgh Police and the Pennsylvania State Police, conducted the investigation that led to the prosecution of Rafael Cabrera.

ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearms laws and drug laws, United States Attorney David J. Hickton announced today.

Shawn I. McCrorey, 45, pleaded guilty to three counts before Senior United States District Judge Maurice B. Cohill, Jr.

In connection with the guilty plea, the court was advised that on January 5, 2013 McCrorey was found in possession of cocaine and a handgun, and a second handgun was found in his residence in Erie, Pennsylvania. Also, McCrorey obtained one of the handguns in December 2012, after lying to a local gun store about his identity and lying that he had no prior felony conviction. McCrorey, known by several aliases, was convicted in 1994 for the crime of delivery of cocaine under the name William Dean, and is therefore prohibited from firearm possession.

Judge Cohill scheduled sentencing for August 26, 2014 at 11:00 a.m. The law provides for a total sentence of life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

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

The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office Bureau of Narcotics Investigation, and the Erie Bureau of Police conducted the investigation that led to the prosecution of McCrorey.

PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 144 months imprisonment, to be followed by five years of supervised release, on his conviction of sex trafficking of a child, United States Attorney David J. Hickton announced today.

Senior United States District Judge Donetta W. Ambrose imposed the sentence on William Miller, 37.

The superseding indictment in the case charged that from in and around December of 2011, to on or about Feb. 10, 2012, Miller knowingly recruited, enticed, harbored, transported, provided and obtained a homeless, 15-year-old minor, Jane Doe, to engage in a commercial sex acts and produced visual depictions of the minor engaged in sexually explicit conduct. Miller was arrested when he drove and accompanied the minor to a date with an undercover City of Pittsburgh Police Detective at the Quality Inn Hotel in Oakland. At sentencing, Judge Ambrose stated that the 12-year sentence should be a “general deterrent but also a personal deterrent to Mr. Miller.”

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 and the City of Pittsburgh Police Department for the investigation leading to the successful prosecution of Miller.

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 the state of Georgia pleaded guilty in federal court to a charge of wire fraud conspiracy, United States Attorney David J. Hickton announced today.

Edward Claude Hammitt, 67, of Summerville, Ga., pleaded guilty to one count before United States District Judge Nora Barry Fischer.

In connection with the guilty plea, Hammitt agreed to accept and negotiate for cash fraudulently obtained IRS refund checks for tax years 2010 and 2011 from conspirators, which were obtained from a larger stolen identity refund fraud scheme.

Judge Fischer scheduled sentencing for Sept. 29, 2014, at 9 a.m. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $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 Gregory C. Melucci is prosecuting this case on behalf of the government.

The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Hammitt.

First Time Criminal Charges are Filed Against Known State Actors for Hacking

WASHINGTON—A grand jury in the Western District of Pennsylvania (WDPA) indicted five Chinese military hackers for computer hacking, economic espionage and other offenses directed at six American victims in the U.S. nuclear power, metals and solar products industries.

The indictment alleges that the defendants conspired to hack into American entities, to maintain unauthorized access to their computers and to steal information from those entities that would be useful to their competitors in China, including state-owned enterprises (SOEs). In some cases, it alleges, the conspirators stole trade secrets that would have been particularly beneficial to Chinese companies at the time they were stolen. In other cases, it alleges, the conspirators also stole sensitive, internal communications that would provide a competitor, or an adversary in litigation, with insight into the strategy and vulnerabilities of the American entity.

“This is a case alleging economic espionage by members of the Chinese military and represents the first ever charges against a state actor for this type of hacking,” U.S. Attorney General Eric Holder said. “The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response. Success in the global market place should be based solely on a company’s ability to innovate and compete, not on a sponsor government’s ability to spy and steal business secrets. This Administration will not tolerate actions by any nation that seeks to illegally sabotage American companies and undermine the integrity of fair competition in the operation of the free market.”

“For too long, the Chinese government has blatantly sought to use cyber espionage to obtain economic advantage for its state-owned industries,” said FBI Director James B. Comey. “The indictment announced today is an important step. But there are many more victims, and there is much more to be done. With our unique criminal and national security authorities, we will continue to use all legal tools at our disposal to counter cyber espionage from all sources.”

“State actors engaged in cyber espionage for economic advantage are not immune from the law just because they hack under the shadow of their country’s flag,” said John Carlin, Assistant Attorney General for National Security. “Cyber theft is real theft and we will hold state sponsored cyber thieves accountable as we would any other transnational criminal organization that steals our goods and breaks our laws.”

“This 21st century burglary has to stop,” said David Hickton, U.S. Attorney for the Western District of Pennsylvania. “This prosecution vindicates hard working men and women in Western Pennsylvania and around the world who play by the rules and deserve a fair shot and a level playing field.”

Summary of the Indictment

Defendants: Wang Dong, Sun Kailiang, Wen Xinyu, Huang Zhenyu, and Gu Chunhui, who were officers in Unit 61398 of the Third Department of the Chinese People’s Liberation Army (PLA). The indictment alleges that Wang, Sun, and Wen, among others known and unknown to the grand jury, hacked or attempted to hack into U.S. entities named in the indictment, while Huang and Gu supported their conspiracy by, among other things, managing infrastructure (e.g., domain accounts) used for hacking.

Victims: Westinghouse Electric Co. (Westinghouse), U.S. subsidiaries of SolarWorld AG (SolarWorld), United States Steel Corp. (U.S. Steel), Allegheny Technologies Inc. (ATI), the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) and Alcoa Inc.

Time period: 2006-2014.

Crimes: Thirty-one counts as follows (all defendants are charged in all counts).

Count(s) Charge Statute Maximum Penalty

1

Conspiring to commit computer fraud and abuse

18 U.S.C. § 1030(b).

10 years.

2-9

Accessing (or attempting to access) a protected computer without authorization to obtain information for the purpose of commercial advantage and private financial gain.

18 U.S.C. §§ 1030(a)(2)(C), 1030(c)(2)(B)(i)-(iii), and 2.

5 years (each count).

10-23

Transmitting a program, information, code, or command with the intent to cause damage to protected computers.

18 U.S.C. §§ 1030(a)(5)(A), 1030(c)(4)(B), and 2.

10 years (each count).

24-29

Aggravated identity theft.

18 U.S.C. §§ 1028A(a)(1), (b), (c)(4), and 2

2 years (mandatory consecutive).

30

Economic espionage.

18 U.S.C. §§ 1831(a)(2), (a)(4), and 2.

15 years.

31

Trade secret theft.

18 U.S.C. §§ 1832(a)(2), (a)(4), and 2.

10 years.

Summary of Defendants’ Conduct Alleged in the Indictment

Defendant Victim Criminal Conduct

Sun

Westinghouse

In 2010, while Westinghouse was building four AP1000 power plants in China and negotiating other terms of the construction with a Chinese SOE (SOE-1), including technology transfers, Sun stole confidential and proprietary technical and design specifications for pipes, pipe supports, and pipe routing within the AP1000 plant buildings.

Additionally, in 2010 and 2011, while Westinghouse was exploring other business ventures with SOE-1, Sun stole sensitive, non-public, and deliberative e-mails belonging to senior decision-makers responsible for Westinghouse’s business relationship with SOE-1.

Wen

SolarWorld

In 2012, at about the same time the Commerce Department found that Chinese solar product manufacturers had “dumped” products into U.S. markets at prices below fair value, Wen and at least one other, unidentified co-conspirator stole thousands of files including information about SolarWorld’s cash flow, manufacturing metrics, production line information, costs, and privileged attorney-client communications relating to ongoing trade litigation, among other things. Such information would have enabled a Chinese competitor to target SolarWorld’s business operations aggressively from a variety of angles.

Wang and Sun

U.S. Steel

In 2010, U.S. Steel was participating in trade cases with Chinese steel companies, including one particular state-owned enterprise (SOE-2). Shortly before the scheduled release of a preliminary determination in one such litigation, Sun sent spearphishing e-mails to U.S. Steel employees, some of whom were in a division associated with the litigation. Some of these e-mails resulted in the installation of malware on U.S. Steel computers. Three days later, Wang stole hostnames and descriptions of U.S. Steel computers (including those that controlled physical access to company facilities and mobile device access to company networks). Wang thereafter took steps to identify and exploit vulnerable servers on that list.

Wen

ATI

In 2012, ATI was engaged in a joint venture with SOE-2, competed with SOE-2, and was involved in a trade dispute with SOE-2. In April of that year, Wen gained access to ATI’s network and stole network credentials for virtually every ATI employee.

Wen

USW

In 2012, USW was involved in public disputes over Chinese trade practices in at least two industries. At or about the time USW issued public statements regarding those trade disputes and related legislative proposals, Wen stole e-mails from senior USW employees containing sensitive, non-public, and deliberative information about USW strategies, including strategies related to pending trade disputes. USW’s computers continued to beacon to the conspiracy’s infrastructure until at least early 2013.

Sun

Alcoa

About three weeks after Alcoa announced a partnership with a Chinese state-owned enterprise (SOE-3) in February 2008, Sun sent a spearphishing e-mail to Alcoa. Thereafter, in or about June 2008, unidentified individuals stole thousands of e-mail messages and attachments from Alcoa’s computers, including internal discussions concerning that transaction.

Huang

Huang facilitated hacking activities by registering and managing domain accounts that his co-conspirators used to hack into U.S. entities. Additionally, between 2006 and at least 2009, Unit 61398 assigned Huang to perform programming work for SOE-2, including the creation of a “secret” database designed to hold corporate “intelligence” about the iron and steel industries, including information about American companies.

Gu

Gu managed domain accounts used to facilitate hacking activities against American entities and also tested spearphishing e-mails in furtherance of the conspiracy.

An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.

The FBI conducted the investigation that led to the charges in the indictment. This case is being prosecuted by the U.S. Department of Justice’s National Security Division Counterespionage Section and the U.S. Attorney’s Office for the Western District of Pennsylvania.

ERIE, Pa. - A former resident of St. Marys, Pennsylvania, has been sentenced in federal court to 46 months in jail and ordered to make restitution in the amount of $414,649.39 on his conviction of wire fraud and money laundering, United States Attorney David J. Hickton announced today.

United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Richard Danz, 49. According to information presented to the court, Danz was the financial advisor/accountant for the Elk County Humane Society. From in and around September 2008 to in and around June 2012, Danz embezzled $422,017.81 from the Elk County Humane Society and another individual. Danz spent the embezzled funds on luxury items including a Mercedes-Benz and a kitchen remodeling.

Prior to imposing sentence, Judge Cohill noted the significant harm caused by Danz, which included the loss of seven jobs at the Elk County Humane Society and the reduced ability to provide critical services to abandoned animals.

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 and the City of St. Marys, Police Department for the investigation leading to the successful prosecution of Danz.

PITTSBURGH - A Murrysville woman has been sentenced in federal court to 96 months imprisonment, to be followed by five years of supervised release, on her conviction of conspiracy to distribute oxycodone and health care fraud, United States Attorney David J. Hickton announced today.

Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence yesterday on Paula Jackson, 40.

According to information presented to the court, Jackson conspired with others to engage in a multi-year long oxycodone pill distribution conspiracy, during which Jackson obtained more than 17,000 pills. Jackson both sold the pills she obtained and consumed them. As part of the conspiracy, Jackson stole the DEA numbers of various area doctors and also used stolen health care insurance information to pay for the pills that she fraudulently obtained.

Prior to imposing sentence, Judge Cohill noted the seriousness of the offenses as well as the damage done to the doctors who had their identities stolen by Jackson.

Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Jackson.

PITTSBURGH - Three Georgia women pleaded guilty in federal court to a charge of wire fraud conspiracy, United States Attorney David J. Hickton announced today.

Heather A. Smith, 26, of Summerville, Ga.; Astrid P. Perry, 37, of Summerville, Ga.; and Beverly J. McHenry, 57, of Rome, Ga., pleaded guilty to one count before United States District Judge Nora Barry Fischer.

In connection with the guilty plea, these defendants conspired with other persons to use stolen identities to file false federal 2010 and 2011 federal income tax returns requesting refunds totaling nearly $2,000.000 into banks and credit unions in Pittsburgh and Georgia.

Judge Fischer scheduled sentencing for Sept. 26, 2014, at 9 a.m. for McHenry and 11:30 a.m. for Perry. Smith’s sentencing is scheduled for Sept. 30, 2014, at 9 a.m. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $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 Gregory C. Melucci is prosecuting this case on behalf of the government.

The Internal Revenue Service, Criminal Investigation, conducted the investigation that led to the prosecution of these defendants.

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

United States District Judge Terrence F. McVerry imposed the sentence on Valber Silva-Brito, 26, of Brazil.

According to the information presented to the court, Valber Silva-Brito, an alien, was formally removed from the United States by U.S. Immigration and Customs Enforcement on Oct. 16, 2007, Jan. 10, 2008 and Sept. 16, 2010. Valber Silva-Brito was found to be illegally present in Pittsburgh on June 9, 2013.

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

U.S. Attorney Hickton commended ICE’s Enforcement and Removal Operations for the successful investigation leading to the successful prosecution of Valber Silva-Brito.

PITTSBURGH - A resident of Brooklyn, New York, has been sentenced in federal court to 36 months incarceration, which included a mandatory sentence of 24 months incarceration, on his trial convictions for conspiracy and aggravated identity theft, United States Attorney David J. Hickton announced today.

Senior United States District Judge Maurice B. Cohill, Jr., imposed the sentence on Brent Kevin Hercules Antoine, of Brooklyn, New York.

According to information presented to the court, Antoine, the final member of a credit card fraud conspiracy to be sentenced, obtained and used counterfeit credit cards which he used to purchase merchandise and gift cards at Giant Eagle and Walmart stores in Western Pennsylvania in March 2010. He and his co-defendant, Jean Seraphin, also of Brooklyn, were convicted at trial in September 2012.

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

U.S. Attorney Hickton commended the United States Secret Service, Homeland Security Investigations, and the Scott Township Police Department for the investigation leading to the successful prosecution of Antoine.

PITTSBURGH - A Pittsburgh jeweler has been sentenced in federal court to three years of probation, a $12,000 fine, and 100 hours of community service on his conviction of failing to file Internal Revenue Service forms for the purpose of evading federal reporting requirements, United States Attorney David J. Hickton announced today. The first six months of probation will be served in home detention with electronic monitoring.

Senior United States District Judge Gustave Diamond imposed the sentence on Alan Kashi, 32.

According to information presented to the court during the earlier guilty plea proceeding, on March 13, 2012, Kashi, who was engaged in the jewelry business known as Kashi Jewelers located on Fifth Avenue in downtown Pittsburgh, for the purpose of evading federal reporting requirements, failed to file an Internal Revenue Service Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, following his receipt of approximately $12,500 in currency as a payment for a Breitling watch.

The charges against Kashi arose as a result of an undercover IRS investigation of Kashi's sale of high-end jewelry to known drug traffickers for cash. The investigation established that transactions exceeding $10,000 were not, as required by law, reported to the IRS on Forms 8300.

During the execution of a federal search warrant at Kashi Jewelers, $933,025 was discovered in two safes and seized by federal agents. Prior to the sentencing proceeding, Kashi agreed to the Court entering an order forfeiting the money to the United States.

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

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

PITTSBURGH – Two Pittsburgh men have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and bank fraud, United States Attorney David J. Hickton announced today.

The two-count indictment, returned on May 6 and unsealed today, named Eric Tyrone Bates, Jr., 27, and Herbert Butler, Jr., 27, as defendants.

According to the indictment, beginning in 2013, Bates and Butler conspired together to steal bank account information belonging to an account holder at Citizens Bank in Pittsburgh, information they used to create accounts at other banks which they controlled to make multiple withdrawals of cash. Bates is also charged separately for bank fraud in connection with another unauthorized access of a Citizens Bank account and subsequent withdrawals from the account. Some of the funds were used to buy automobiles.

The law provides for a maximum total sentence of not more than 35 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 Gregory C. Melucci is prosecuting this case on behalf of the government.

The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the indictment of Bates and Butler. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.

An indictment is an accusation. The defendants are presumed innocent unless and until proven guilty.

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

Eric Roller, 49, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.

In connection with the guilty plea, the court was advised that on or about Feb. 22, 2013, Roller possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.

Judge Hornak scheduled sentencing for Sept. 15, 2014, at 10 a.m. The law provides for a total sentence of 10 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.

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

The Federal Bureau of Investigation, the Pennsylvania State Police, and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Roller.

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 McKeesport store manager pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.

Nichole Bires, 36, pleaded guilty to one count before United States District Judge Cathy Bissoon.

In connection with the guilty plea, the court was advised that Bires was the manager at H&H Fish Market, a small retail food store in McKeesport. In October 2009, H&H began participating in the USDA's food stamp program. As a condition of participation in the food stamp program, the owners and employees of H&H were required to comply with all rules and regulations of the program and were aware that program rules prohibited the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, Bires exchanged customers’ food stamp benefits for cash on a discounted basis, usually giving the customers only 50 cents on the dollar for food stamp benefits.

Judge Bissoon scheduled sentencing for Aug. 26, 2014, at 10 a.m. The law provides for a total sentence of 10 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 defendant’s bond.

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

The Office of the Inspector General for the United States Department of Agriculture, the Department of Homeland Security, Homeland Security Investigations and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Bires.

PITTSBURGH - A resident of Norridge, Ill., has been sentenced in federal court to 27 months imprisonment on his conviction of mail fraud, distribution of human growth hormone and money laundering, United States Attorney David J. Hickton announced today.

Senior United States District Judge Donetta W. Ambrose imposed the sentence on Ronald J. DeFranco, 54.

According to information presented to the court, DeFranco maintained a website for the illegal distribution of peptides - chemical compounds which require a prescription for dispensation, but which are illegitimately sought by body builders for muscle enhancement. DeFranco deceived the Internet service provider and the FDA by falsely representing on the website that he was selling these substances "for research purposes only . . . not for human consumption." In addition to sales of peptides, DeFranco also allegedly sold human growth hormone (HGH) without the required physician's prescriptions. During the period from May 2010, until January 2011, DeFranco allegedly paid $94,777.40 in Western Union and bank wire transfers to acquire these substances from suppliers in the Peoples Republic of China.

Prior to imposing sentence, Judge Ambrose stated that she was denying the defendant’s downward variance request due to the serious nature of the offense and because his prior sentence of imprisonment “speaks volumes about [his] ability to conform [his] behavior to the law.”

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

U.S. Attorney Hickton commended the FDA Office of Criminal Investigations, IRS - Criminal Investigation and the DEA for the investigation leading to the successful prosecution of DeFranco.

PITTSBURGH – A Pittsburgh woman pleaded guilty in federal court to a charge of Federal Employees’ Compensation Fraud, United States Attorney David J. Hickton announced today.

Cindy A. Elsesser, 45, pleaded guilty to one felony count before United States District Judge David S. Cercone.

According to information presented to the Court at the guilty plea, Elsesser, in connection with the application and receipt of federal employees’ compensation moneys and benefits, concealed and covered up the fact that she was employed. Elsesser’s fraudulent conduct resulted in compensation payments totaling approximately $4,771.41 being issued to her during the period from April 1, 2011, to March 11, 2013, payments Elsesser knew she was not entitled to receive.

Judge Cercone scheduled sentencing for Sept. 15, 2014 at 10 am. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 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 sentence, the court released Elsesser on bond.

Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.

The Department of Labor, Office of Inspector General, and the United States Postal Service, Office of Inspector General, conducted the investigation leading to the plea of guilty in this case.

JOHNSTOWN, Pa. – A Johnstown physician has been indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.

The 136-count indictment, returned on May 6 and unsealed today, named Dr. Glenn Davis, 61.

According to the indictment presented to the court, from August of 2011 to February 2013, Dr. Davis prescribed and distributed thousands of Schedule II controlled substances (i.e., Oxycodone, Morphine, Oxycontin, Methadone, Fentanyl patches, Dilaudids, Opanas) outside the usual course of professional practice.

The law provides for a maximum sentence, at each of the 136 counts, of 20 years in prison and 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.

Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.

The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Office of the Pennsylvania Attorney General, the Cambria County Drug Task Force, and the Internal Revenue Service Criminal Investigation Division conducted the investigation that led to the prosecution of Davis.

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 on charges of violating federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.

The three-count indictment named Omar Smith, 25, as the sole defendant.

According to the indictment, Smith was previously convicted of felony drug charges in Allegheny County on four separate dates between 2008 and 2011, and he again violated drug laws on June 21, 2012. Although federal law precludes a person convicted of a crime punishable by in excess of one year from possessing a firearm or ammunition, Smith allegedly possessed a .357 Taurus pistol and ammunition at the time of the new drug crimes.

The law provides for a minimum sentence of 15 years and a maximum of life in prison, a fine of up to $4,250,000, 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 of the defendant.

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

The Drug Enforcement Administration, the Coraopolis Police Department and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case with the valuable assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

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

JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distributing heroin, United States Attorney David J. Hickton announced today.

Damian C. Jeffers, Sr., 44, pleaded guilty to one count before United States District Judge Kim R. Gibson.

In connection with the guilty plea, the court was advised that on Jan. 7, 2013, Jeffers distributed less than 100 grams of heroin.

Judge Gibson scheduled sentencing for Aug. 28, 2014, 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.

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

The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Jeffers.

PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 87 months imprisonment and eight years supervised release on his conviction of violating federal narcotic laws, United States Attorney David J. Hickton announced today.

United States District Judge Cathy Bissoon imposed the sentence on Brady Hall, 19.

According to information presented to the court, Hall had previously pled guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more heroin, possession with the intent to distribute a quantity of heroin, and employment of juveniles to distribute heroin. In total, Hall agreed to accept responsibility for between 700 and 1,000 grams of heroin.

In connection with the guilty plea and sentencing, the Court was advised that from May 2012 to February 2013, Hall conspired together with his charged co-defendants, Jay Germany, Jaquan Washington, and others, to possess with the intent to distribute and distribute, heroin. In addition, Hall conspired with uncharged co-conspirator Andre Corbett, Sterling Marshall, and their associates to distribute heroin. Germany and Washington have both pled not guilty, while Corbett and Marshall have pled guilty. Corbett was sentenced to 10 years in prison, and Marshall was sentenced to 12 years in prison.

The Court learned that during the timeframe of the heroin trafficking conspiracy, Germany was the leader of the conspiracy, in that he operated the “customer phone,” whereby retail heroin customers would call Germany to arrange a heroin transaction. Once the transaction had been finalized, Germany, in turn, called either Washington or Hall to deliver the heroin to the customer. Hall operated a heroin “stash house,” in Homestead. From that stash house, Hall used runners, including juvenile runners as young as 15 years old, to deliver heroin to customers.

Finally, Count Five of the Superseding Indictment related to a heroin transaction that took place at the Giant Eagle on the Waterfront in Homestead. On Oct. 30, 2012, a heroin customer arranged to purchase 100 stamp bags of heroin from Germany at the Giant Eagle. Germany drove Hall to complete the deal at Giant Eagle. Hall met the customer in the Giant Eagle bathroom. In the bathroom, Hall provided the customer with the 100 stamp bags of heroin. Law enforcement, who had been intercepting the telephone conversations of Germany, monitored this transaction, and later conducted a traffic stop of the customer as he drove away. Law enforcement recovered the purchased heroin from the customer.

Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.

The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Bureau of Police, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution, conviction and sentencing of Brady Hall.

PITTSBURGH - A resident of Clarksburg, West Virginia, has been sentenced in federal court to 15 months in prison, to be followed by three years of supervised release, on his conviction of income tax evasion, United States Attorney David J. Hickton announced today.

United States District Judge David S. Cercone imposed the sentence on James R. Corbitt.

According to information presented to the court, during the tax years 2005 through 2009, Corbitt, an employee of Nexus Medical Services located in Westmoreland County, evaded income tax by diverting cash and checks payable to Nexus to himself, and by having Nexus pay for his personal expenses, including $77,000 for an apartment in Greensburg, $101,000 for personal cars and a motorcycle, and such items as his utilities, cable bill, and lawn and maid service. For the year 2008, the year to which he pleaded guilty, Corbitt reported income of $11,000 and tax due of $1,103, while his actual income was $167,079, upon which tax was due and owing of $29,564. The total amount of tax loss is $102,102, which does not include interest or penalties.

Corbitt was convicted in federal court in Ohio in 1993 of theft of government funds and filing a false tax return. He was sentenced to an 18-month term of incarceration on that occasion.

Prior to imposing sentence, Judge Cercone stated that the sentence “is important to deter others from cheating on their taxes.”

Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.

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

PITTSBURGH - A resident of Antioch, Calif., pleaded guilty in federal court to a charge of violating federal money laundering laws, United States Attorney David J. Hickton announced today.

Coquese Alcorn, 65, pleaded guilty to one count before United States District Judge David S. Cercone.

IRS-Criminal Investigation 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. In part, the investigation relied upon search warrants, court orders, consensually recorded conversations, surveillance and information supplied by confidential sources, as well as records and documents obtained by Grand Jury and Administrative subpoenas. The investigation revealed a major cocaine distribution conspiracy which resulted in cocaine being transported to Pittsburgh and other areas from 2000 through 2010. Defendant Robert Russell Spence, Jr. was a local fulcrum of the conspiracy, which was supplied by various cocaine sources over time. The investigation revealed that the conspiracy involved over 2000 kilograms of cocaine and millions in laundered drug money. Over time, the conspiracy involved enough cocaine for every current man, woman and child resident of Pennsylvania to have their own $20 rock of crack cocaine. Conspiracies commonly change both members and mechanisms to adapt to changes, and this conspiracy is no different. Aside from changing cocaine sources over time, the conspiracy also changed its common manner of doing business over time as well. For example, prior to the summer of 2007, the conspiracy utilized packages of cocaine being shipped by the US mail or various common carriers from California to recipients such as Spence in Pittsburgh. Documents and evidence reveal 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 intended for another 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 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 discovered it to contain 19 kilograms of cocaine. Mitchell was observed, along with others, looking for the bag in Pittsburgh and he also filed a claim for the bag. On Aug. 8, 2009, more than $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 or money by means such as chartered private flights and vehicles including tractor trailers. Individuals indicted thus far involve many different roles within the conspiracy. Some conspirators are suppliers, couriers or recipient drug dealer/distributors. Other conspirators played a variety of roles such as: shipping or receiving packages; arranging for couriers, flights and flight payments; money launderers; and those who circumvented security procedures at airports.

The drug activities of supplier Damon Collins generated millions of dollars in cash. A conspiracy existed to launder those funds and resulted in several of the co-defendants structuring drug funds supplied by Collins by involving individual amounts under $10,000 to avoid the transaction reporting requirements under federal and state law, as well as concealing and disguising Collins’ drug money by actions that make it appear that they belong to others. These disguised amounts were used to pay for vehicles, home improvements, mortgage payments, apartment rentals, hotel payments, airline tickets, credit card payment, child support payments and tax payments for Collins.

Ms. Alcorn is the mother of Damon Collins, one of the cocaine sources for this large-scale cocaine distribution network. Collins was a fugitive for a period of 20 months after he was indicted in this district. During his association with the cocaine conspiracy, Collins was able to launder in excess of two million dollars in drug proceeds. The defendant assisted Mr. Collins with this laundering activity by structuring currency deposits, permitting herself to be used as a nominee in financial transactions, paying for his mortgage personally in cash and making payments for him on matters such as: his pool, credit card, and vehicles (Land Rover, Jaguar, Lexus, Mercedes Benz and others). The other alleged launderers of Collins’ money include Jared Weinberg, Howard Weinberg, Bridgette Morgan, Cindy Haughton, Alexandria Brown and Tosha Asker. Each of the co-defendants has pleaded guilty, except Howard Weinberg who is scheduled to plead guilty on May 20, 2014 at 1:15pm. The parties agree that Ms. Alcorn personally laundered $400,000 in drug funds for her son.

Judge Cercone scheduled sentencing for Sept. 11, 2014 at 10:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, 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.

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

PITTSBURGH - An inmate at SCI-Houtzdale, located in Houtzdale, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal law, United States Attorney David J. Hickton announced today.

The one-count indictment, returned on April 29, named Michael Kramer, 30, currently incarcerated in SCI-Houtzdale.

According to the indictment, Kramer forged a federal Judge’s signature on a court order.

The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000, 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, of the defendant.

Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.

The United States Marshal’s 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 – Elanda Bell has pled guilty in federal court to a charge of violating federal firearm laws, United States Attorney David J. Hickton announced today.

Bell, 55, with no known permanent address, pleaded guilty on Monday to one count before Senior United States District Judge Gustave Diamond.

In connection with the guilty plea, the court was advised that between Jan. 3, 2008, and June 29, 2013, Bell possessed ten .41 Caliber cartridges. Bell had previously been convicted of manslaughter and aggravated assault in the Court of Common Pleas of Philadelphia. Federal law prohibits anyone who has been convicted of a crime punishable by more than one year from possessing ammunition or a firearm.

Judge Diamond scheduled sentencing for Aug. 20, 2014, at 11 a.m. The law provides for a maximum total sentence of 10 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.

Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clairton Police Department conducted the investigation that led to the prosecution of Bell.

PITTSBURGH - A Monroeville man has been sentenced in federal court to 108 months in prison at Count One of the Superseding Indictment, and 60 months in prison at Count Four of the Superseding Indictment to run consecutively, for a total 168 months imprisonment, followed by four years of supervised release on his conviction of violating federal firearms and drug trafficking laws, United States Attorney David J. Hickton announced today.

United States District Judge Cathy Bissoon imposed the sentence on Antonio Hardin, 32.

According to information presented to the court, and as reflected in Count One of the Superseding Indictment, from April, 2012 to February 2013, Hardin conspired together with his charged co-defendants Brandon Thompson, James Walker, Richard Wood, Gregory Harris, Jr., Luther Harper and others to possess with the intent to distribute and distribute, 100 grams or more of heroin. In total, Hardin agreed to accept responsibility for between 900 and 990 grams of heroin. All of the abovementioned co- conspirators, except for Richard Wood, have pleaded not guilty to the charges against them.

Specifically, the Court learned that in April, 2012, Hardin received heroin from co- conspirator Brandon Thompson. Hardin then supplied this heroin to an uncharged co-conspirator who was later shot by Thompson and Edward Cook at Club Pink in Munhall on or about Aug. 12, 2012. Cook has pleaded guilty to this shooting, and he was sentenced to 12 years in prison. The Court also learned that Hardin, acting together with Brandon Thompson, James Walker, and Joseph Thompson, shared a heroin “stash house” in Pitcairn at which these persons packaged raw heroin into stamp bags that would later be sold on to other dealers, and eventually, to individual users. In addition, the Court learned that Hardin, over the course of the conspiracy, sold heroin to other charged distributors, including Richard Wood, Gregory Harris, Jr., and Luther Harper. The Court heard intercepts of a call in which Luther Harper and Bryce Harper discussed purchasing 25 brick quantities (40 gram quantities) of heroin from Hardin that the Harpers then planned to distribute to individual users. Last, Hardin acknowledged that during his drug trafficking crimes he possessed a firearm, including a 9mm Glock, to protect himself and to protect his drugs. As a result, Hardin possessed a firearm in furtherance of the abovementioned drug trafficking crimes.

Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, Pittsburgh Bureau of Police, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department for the investigation leading to the successful prosecution of Antonio Hardin.

PITTSBURGH - Two Illinois residents have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy, using unauthorized access device in aggregate of $1,000, possessing device- making equipment, possessing 15 or more access devices, and aggravated identity theft, United States Attorney David J. Hickton announced today.

The six-count superseding indictment, returned on April 29, named Joel M. Cosey, 25, of Chicago, Illinois, and Monique S. Morris, 33, of Bolingbrook, Illinois.

According to the indictment, Cosey was charged with conspiracy, possessing device- making equipment, possessing 15 or more access devices, aggravated identity theft, and two counts of using unauthorized access device in aggregate of $1,000 on or about Aug. 9, 2013.

According to the indictment, Morris was charged with conspiracy and two counts of using unauthorized access device in aggregate of $1,000 on or about Aug. 9, 2013.

The law provides for a maximum total sentence of 52 years in prison, a fine of $1,500,000 or both for Cosey. The law provides for a maximum total sentence of 25 years in prison, a fine of $750,000 or both for Morris. 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 Shardul S. Desai is prosecuting this case on behalf of the government.

The United States Secret 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 – A Westmoreland County resident pleaded guilty in federal court to a charge of theft of government money, United States Attorney David J. Hickton announced today.

Kelly McGuire, 54, of Greensburg, Pa., pleaded guilty to one count before Senior United States District Court Judge Maurice B. Cohill.

In connection with the guilty plea, the court was advised that from Nov. 3, 1993 to Oct. 3, 2011, McGuire converted to his own use $172,375 in Social Security Title II, Old Age, Survivor’s Disability Insurance benefit payments of his aunt, Lucille McGuire, who died on Oct. 2, 1993, benefits he knew he was not entitled to receive.

Judge Cohill scheduled sentencing for Aug. 6, 2014 at 2 p.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, 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 sentence, the court released McGuire on bond.

Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.

The Social Security Administration, Office of Inspector General, conducted the investigation that lead to the prosecution of McGuire.

PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.

The one-count indictment named Jason, T. Korey, 31, as the sole defendant.

According to the indictment and other court records, on April 17, 2014, while on federal supervised release for a prior felony conviction, Jason Korey was in possession of a firearm and ammunition.

The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 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 of the defendant.

Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.

The United States Probation Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives 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 man has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.

The one-count indictment, returned on April 29, named Diontai L. Moore, 30, as the sole defendant.

According to the indictment, on or about Aug. 25, 2013, Moore, being a convicted felon, illegally possessed a FEG, model PA-63, 9mm short caliber pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.

The law provides for a minimum sentence of 15 years in prison to a maximum of life, a fine of $250,000, 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 of the defendant.

Assistant United States Attorney Barbara K. Doolittle of the United States Attorney’s Office is prosecuting this case on behalf of the government.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment of Moore.

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

PITTSBURGH – The owners of a local convenience store pleaded guilty to charges of conspiracy to commit wire fraud and food stamp fraud, United States Attorney David J. Hickton announced today.

Hadi and Wesam Ibrahim, brothers and owners and operators of City News & Arcade on Wood Street, Pittsburgh, Pa., each pleaded guilty to one count of conspiracy before Senior United States District Judge Maurice B. Cohill. The defendants also executed civil settlement agreements for violations of the False Claims Act, and agreed to pay to the United States the sum of $199,605.38.

In connection with the guilty plea, the court was advised that City News & Arcade participated in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the food stamp program. Food stamp recipients could purchase eligible food items using food stamp benefit cards at City News & Arcade. As a condition of participation in the food stamp program, the defendants certified that they would comply with all rules and regulations of the program and were aware that program rules strictly prohibited the exchange of food stamp benefits for cash and/or for ineligible items. Despite this knowledge, on multiple occasions, the defendants exchanged food stamp benefits with customers in exchange for cash on a discounted basis, usually giving the customers only .50 cents on the dollar for their food stamp benefits. The defendants also permitted food stamp customers to purchase ineligible non- food items, such as cigarettes, with food stamp benefits.

Judge Cohill scheduled sentencing for Aug. 14, 2014. The law provides for a total sentence of five years in prison, a fine of $250,000, or both for each defendant. 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 released the defendants on bond.

Assistant United States Attorney Tonya Sulia Goodman is prosecuting these cases on behalf of the government. Assistant United States Attorney Colin Callahan is litigating the cases on behalf of the Affirmative Civil Enforcement Section of the United States Attorney's Office.

The Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Homeland Security Investigations conducted the investigation that led to the prosecution of the Ibrahim brothers.

PITTSBURGH - Two Chester County residents have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to engage in sex trafficking and sex trafficking of a child, United States Attorney David J. Hickton announced today.

The three-count superseding indictment, returned on April 29, named Rasul Abernathy, 32, and Poshauntamarin Walker, 35, formerly of Coatesville, Pa. as the defendants.

According to the superseding indictment, beginning in at least July of 2012, and continuing through on or about March 1, 2013, Abernathy and Walker did knowingly conspire to recruit for sex trafficking and did in fact traffic a male and female minor, both under the age of 18 years, in Pittsburgh for commercial sex acts.

The law provides for a maximum total sentence of life in prison, 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 defendants.

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 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.

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 Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of bank and wire fraud conspiracy, United States Attorney David J. Hickton announced today.

The one-count indictment, returned on April 29, named Richard Stromberg, 49, of Bethel Park, Pa., as the sole defendant.

According to the indictment, from in and around August of 2002, and continuing until in and around June of 2008, Stromberg knowingly conspired with other individuals known to the grand jury to defraud lenders. Stromberg operated a mortgage broker firm, Great American Home Equity. The conspiracy involved the submission to lenders of loan applications that contained material misrepresentations about the borrower’s financial condition, such as inflating the borrower’s income and assets, and appraisals that overstated the values of the properties serving as collateral for the loans. Stromberg and others also submitted false supporting documentation for the misrepresentations contained in the applications.

The law provides for a maximum total sentence of 30 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.

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

The Mortgage Fraud Task Force (MFTF) conducted the investigation leading to the indictment in this case. The MFTF is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the MFTF include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other MFTF members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.

Mortgage industry members with knowledge of fraudulent activity are encouraged to call the Mortgage Fraud Task Force at (412) 894-7550. Consumers are encouraged to report suspected mortgage fraud by calling the Pennsylvania Attorney General's Consumer Protection Hotline at (800) 441-2555.

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

PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of mail fraud, United States Attorney David J. Hickton announced today.

Samuel Cole, 44, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Maurice B. Cohill.

In connection with the guilty plea, the court was advised that in February, 2007, Cole and his co-defendant, Lahron Buchanan, who previously pled guilty, formed New Image Consultants, Inc. They used Pittsburgh as their home base and traveled to several cities with other salespersons to sell door to door. Over the next four years they owned and operated the following corporations: New Image Consultants, Inc.; Fresh Start Opportunities; A Fresh Start by Larhon Buchanan; A Fresh Start by Samuel Cole; and Destiny Sales, Inc. None of these businesses provided or paid for a magazine subscription for any of the persons who paid for them.

Salespersons often wore fraudulent credentials purporting to show their company was a member of the National Field Selling Association (NFSA), and when in fact none of the companies were members. As described in the indictment, the NFSA was a trade association of the door to door sales and the direct sales industry. Each member company agrees to comply with the NFSA Code of Ethics to promptly handle consumer complaints, to not make false, deceptive or misleading statements to prospective purchasers, and to not misrepresent the time period for product delivery.

The sales pitches used were designed to create sympathy for the salesperson, who represented himself/herself to be impoverished, a student, a single parent, or a criminal who was starting over in life. The sales pitches were also designed to take advantage of any charitable inclination of victims by representing that delivery of the magazines could be directed to the local Children’s Hospital, or to the war fighters in the war zone.

Only checks were accepted as payment and the checks were collected by salespersons on the spot. During the course of the scheme, magazine delivery was promised from as little as 90 days and up to as many as 160 days. The victims were given a “receipt” at the time of the sale with instructions on how to seek a refund. Attempts by victims to get refunds were uniformly unsuccessful, and in fact, magazines were never delivered to any victim.

The extensive investigation involved reviewing checks from more than 30 checking accounts used during the scheme. Approximately 30,000 victims from virtually all over the country were identified through these checking accounts. The documented losses to victims is approximately $1,933,586.

Judge Cohill scheduled sentencing for Aug. 5, 2014. The law provides for a maximum sentence of 20 years of incarceration and a $250,000 fine, 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 defendants.

Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.

The United States Postal Inspection Service conducted the investigation that led to the prosecution of Samuel Cole.

JOHNSTOWN, Pa. - A resident of Brockport, Pa., has been sentenced in federal court to 97 months in prison and four years supervised release on his conviction of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.

United States District Judge Kim R. Gibson imposed the sentence on James A. Volpe, 55.

According to information presented to the court, Volpe distributed an imprint die on Aug. 20, 2012, which would facilitate the production of counterfeit Viagra tablets. In addition, on Nov. 1, 2012, Volpe possessed with the intent to distribute in excess of 50 marijuana plants and 50 grams or more of methamphetamine, and he also possessed a German Sports Gun pistol. He had been convicted in 2009 in United States District Court of unlawful possession of a firearm by a convicted felon. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Unlawful possession of a firearm by a convicted felon is such a crime.

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

U.S. Attorney Hickton commended the Food and Drug Administration-Office of Criminal Investigations, Homeland Security Investigations, the Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Volpe.

According to Mr. Hickton, Volpe was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.

JOHNSTOWN, Pa. - A resident of Palm Beach, Fla., pleaded guilty in federal court to charges of filing false tax returns, United States Attorney David J. Hickton announced today.

Robert Paltrow pleaded guilty to two counts before United States District Judge Kim R. Gibson.

In connection with the guilty plea, the court was advised that Paltrow filed two individual income tax returns for the calendar years 2007 and 2008, whereby he failed to report $4,787,222 in taxable income, resulting in an underpayment of $798,969 in income tax owed to the United States.

Judge Gibson scheduled sentencing for September 30, 2014, at 11 a.m. The law provides for a total sentence of six years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

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

The Internal Revenue Service/Criminal Investigation conducted the investigation that led to the prosecution of Paltrow.

PITTSBURGH - A resident of Warren, Ohio, has been sentenced in federal court to 84 months imprisonment, with six years of supervised release to follow on his conviction of possession with intent to distribute crack cocaine and heroin, United States Attorney David J. Hickton announced today.

United States District Judge Cathy Bissoon imposed the sentence on Matthew Hosey, 62.

According to information presented to the court, on or about April 24, 2013, Hosey possessed with intent to distribute a quantity of crack cocaine and heroin.

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

U.S. Attorney Hickton commended the Federal Bureau of Investigation, Southwest Regional Police Department, Pennsylvania State Police, Drug Enforcement Administration, and the Pennsylvania Attorney General’s Office for the investigation leading to the successful prosecution of Hosey.

JOHNSTOWN, Pa. - A resident of Hollidaysburg, Pa., pleaded guilty in federal court to charges of filing false tax returns, United States Attorney David J. Hickton announced today.

Michael Herman pleaded guilty to two counts before United States District Judge Kim R. Gibson.

In connection with the guilty plea, the court was advised that Herman filed two individual income tax returns for the calendar years 2007 and 2008, whereby he failed to report $9,873,745 in taxable income, resulting in an underpayment of $655,934 in income tax owed to the United States.

Judge Gibson scheduled sentencing for Sept. 30, 2014, at 10 a.m. The law provides for a total sentence of six years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

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

The Internal Revenue Service/Criminal Investigation conducted the investigation that led to the prosecution of Herman.

PITTSBURGH - A Catholic priest has been sentenced in federal court to 36 months in prison, followed by 12 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 Nora Barry Fischer imposed the sentence on David Dzermejko, 65, of Braddock, Pa.

According to information presented to the court, Dzermejko, a Catholic priest, possessed on Jan. 11, 2013, in excess of 100 photographs in computer graphics files, depicting the sexual exploitation of pubescent and prepubescent boys. The child pornography was found on various computers and computer-related equipment taken from Dzermejko’s former residence in Pittsburgh, Pa., following the execution of a search warrant.

Dzermejko had been viewing child pornography for more than 10 years, had acquired the images on-line from various websites, and had traveled on numerous occasions to Thailand where he engaged in sexual encounters with teen boys, some of whom he thereafter maintained an on-line relationship.

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

U.S. Attorney Hickton commended the Federal Bureau of Investigation, Detectives of the Allegheny County District Attorney’s Office, and other officers of the Violent Crimes Against Children Task Force for the investigation leading to the successful prosecution of Dzermejko.

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.

JOHNSTOWN, Pa. - A resident of Portage, Pa., has been sentenced in federal court to 37 months in prison and three years supervised release on his conviction of conspiracy to traffic in oxycodone, United States Attorney David J. Hickton announced today.

United States District Judge Kim R. Gibson imposed the sentence on Eugene Moyer, Jr., 55, of Portage, Pa.

According to information presented to the court, from Jan. 17, 2013, to Feb. 6, 2013, Moyer conspired with others to distribute and possess with the intent to distribute a quantity of oxycodone.

Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.

Mr. Hickton commended the Federal Bureau of Investigation and the Pennsylvania Office of the Attorney General for the investigation leading to the successful prosecution of Moyer.

PITTSBURGH - A resident of Springdale, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of theft from an employee benefit plan, United States Attorney David J. Hickton announced today.

The one-count indictment named Jennifer Gent, 39, as the sole defendant.

According to the indictment, during a two-year period while she was employed as the office manager for the Journeyman-Apprentice Training Fund (JATF) for the Sheet Metal Industry of Western Pennsylvania, Gent embezzled from her employer by writing and cashing approximately $30,297.70 in unauthorized JATF checks.

The law provides for a maximum total sentence of five years in prison, a fine of $250,000 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 Leo M. Dillon is prosecuting this case on behalf of the government.

The Department of Labor, Office of Labor-Management Standards and the Employee Benefit Security Administration 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. - Five individuals from around the United States have been indicted by a federal grand jury in Erie on charges of conspiracy to commit wire fraud and aggravated identity theft, United States Attorney David J. Hickton announced today.

The 13-count superseding indictment, returned on April 8, 2014, named:

• Doherty Kushimo, 52, of Providence, Rhode Island;
• Saburi Adeyemi, 56, of Memphis, Tennessee;
• Abiodun Bakre, 49, Ozone Park, New York;
• Adetunji Gbadegeshi, 57, of Queens, New York; and
• Adebola Mejule, 54, of Hempstead, New York, as defendants.

“We are making significant progress in our efforts to uncover identity fraud and protect citizens from criminals who steal their personal information and steal their money,” stated U.S. Attorney Hickton. “We have dismantled a massive stolen identity ring that involved thousands of victims and tens of millions of dollars in losses.”

“Investigating refund fraud and identity theft is a top priority for IRS Criminal Investigation, and perhaps one of our most intense challenges,” according to IRS-CI Special Agent in Charge Akeia Conner. “Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law.”

“The use of the Internet for criminal purposes is one of the most critical challenges facing the FBI and law enforcement in general,” added Patrick Fallon, Asst. Special Agent in Charge of the FBI. “In order to combat Internet fraud, it is essential for law enforcement officers not only to understand and use the Internet, but also to join forces. This case illustrates the benefits of law enforcement and private industry, around the world, working together in partnership on computer crime investigations.”

According to the superseding indictment presented to the court, the five defendants conspired to commit wire fraud by submitting fraudulent federal tax returns in the names of individuals whose identities the conspirators stole. The conspirators then opened bank accounts using other stolen identities and used those accounts as repositories for their fraudulently obtained federal tax refunds. The conspirators obtained stolen identity information on the Internet and then traded that information among themselves using email accounts and other means of communication. All told, the indictment alleges that approximately $21 million in fraudulent tax refunds was sought from the IRS by the conspirators, causing the IRS to pay approximately $10 million in fraudulent refunds.

The law provides for a maximum total sentence of 20 years in prison for Saburi Adeyemi, Adetunji Gbadegeshi and Adebola Mejule. Doherty Kushimo faces 38 years in prison and Abiodun Bakre faces 36 years in prison. All five defendants are subject to a maximum fine of $250,000 or twice the amount of loss to the victims. 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 defendants.

For more information about identity theft, please visit www.irs.gov or www.justice.gov.

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

The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation 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, Pa. - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to five years imprisonment, to be followed by 10 years of supervised release, on his conviction of receipt of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.

Chief United States District Judge Joy Flowers Conti imposed the sentence on Charles Appel, 72, of Pittsburgh, Pa.

According to information presented to the court during the earlier guilty plea proceeding, Appel, an ordained minister and retired St. Edmund’s Academy teacher, received by United States mail, on Feb. 21, 2011, a video which depicted the sexual exploitation of minor boys from a Canadian video production company known as “Azov”, which previously operated a website offering DVD’s and streaming videos depicting children being sexually exploited. Appel ordered and received the video, titled “Boy Fights XIX: Triple Threat (2009)”, in both electronic and DVD format for $29.95 on Feb. 21, 2011, which he paid for with a credit card. During the period May 15, 2009 through March 13, 2011, Appel ordered child pornography videos from Azov on 29 occasions for a total cost of $1,864.54.

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

U.S. Attorney Hickton commended the United States Postal Inspection Service and members of the Pittsburgh Crimes Against Children Task Force, for the investigation leading to the successful prosecution of Appel.

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 – David J. Hickton, United States Attorney for the Western District of Pennsylvania, today announced that he has convened a group to develop and implement solutions to Western Pennsylvania’s opiate overdose epidemic.

The U.S. Attorney’s Working Group on Addiction: Prevention, Intervention, Treatment and Recovery will bring together citizens, parents and those in recovery with physicians, providers and regional leaders to prevent opiate overdoses and deaths throughout Western Pennsylvania. Specifically, individuals who have direct experience with addiction and specialists in the fields of public health, law enforcement, human services, pharmacology, drug treatment and recovery will make up the Working Group. The group had an initial meeting on April 7, and created three subcommittees to focus on Community Outreach/Education; Treatment; and Quality, Safety and Outcomes.

U.S. Attorney Hickton said, “We cannot prosecute our way out of the problem of opioid addiction. We need to better address the demand side of the problem by being more attentive to and understanding of addiction, treatment and recovery. Opiate overdoses affect all age groups, all ethnic groups, men, women, and children, and it is destroying lives and killing people. We cannot wait another day to combat this scourge on our communities.”

The Working Group will be co-chaired by Neil A. Capretto, D.O., F.A.S.A.M., Medical Director of Gateway Rehabilitation Center, and Michael Flaherty, Ph.D., Clinical Psychologist. Working Group members currently include:

• Jim Rohr, Executive Chairman, PNC, and former Chairman of the Allegheny Conference on Community Development;
• Mike Zemaitis, Ph.D., Professor of Pharmaceutical Sciences, University of Pittsburgh School of Pharmacy;
• Marc Cherna, Director, Allegheny County Department of Human Services;
• Reverend DeNeise Welch, Bidwell Presbyterian Church;
• Antoine Douaihy, MD, Associate Professor of Psychiatry, University of Pittsburgh School of Psychiatry;
• Fred Thieman, President, Buhl Foundation;
• Sabato Anthony Stile, MD, Medical Director, UPMC Behavioral Health Associates;
• Karen Hacker, MD, MPH, Director, Allegheny County Health Department;
• Debra M. Kehoe, R.N. BSN, MsEd., Executive Director, The Pennsylvania Alliance for Safe and Drug Free Children;
• James Schuster, MD, MBA, Chief Medical Officer, Community Care Behavioral Health Organization;
• David McAdoo, Director, Southwest Behavioral Health Management;
• Latika Davis-Jones, PhD, MPH, MSW, Administrator, Allegheny County Bureau of Drug and Alcohol Services;
• Carmen Carpozi, Founder, Sage’s Army; Parent Advocate – Education and Prevention;
• Lucy Garrighan, CEO, Jade Wellness Center and Parent Advocate for Treatment;
• Scott Golden, MD, VA Pittsburgh Health System; and
• Robert Woolhandler, MD, Family Practitioner.

The group will be meeting on a regular basis, and is expected to issue interim recommendations within 60 to 90 days that will include an action plan for long-term reform.

PITTSBURGH – A resident of Venango County pleaded guilty in federal court to a charge of union embezzlement, United States Attorney David J. Hickton announced today.

David L. Barr, 50, of Emlenton, PA, pleaded guilty to one count before United States District Court Judge David S. Cercone.

In connection with the guilty plea, the court was advised that Barr, the Financial Secretary-Treasurer of the Local No. 99 of the Glass, Molders, Pottery, Plastics & Allied Workers International Union, AFL CIO, CLC, stole approximately $5,688.40 from the union by cashing 19 employer dues remittance checks belonging to the labor organization and converting the monies to his own personal use during the period from April 9, 2010 through Sept. 22, 2011.

Judge Cercone scheduled sentencing for Sept. 2, 2014, at 11:30 A.M. The law provides for a maximum total sentence of not more than 5 years in prison, a fine of $250,000, 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 sentence, the court released Barr on bond.

Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.

The Department of Labor, Office of Labor Management Standards, conducted the investigation that lead to the prosecution of Barr.

PITTSBURGH - A Pittsburgh-area grocer pleaded guilty in federal court to fraud charges United States Attorney David J. Hickton announced today.

Emile Bizimungu, 32, pleaded guilty to one count of wire fraud and one count of food stamp fraud before Senior United States District Judge Gustave Diamond.

In connection with the guilty plea, the court was advised that Bizimungu was the owner of Dollar Grocery, a retail food store formerly located on Brownsville Road in Mt. Oliver Borough. The defendant's retail store participated in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the Food Stamp Program. Food stamp recipients could purchase eligible food items using food stamp benefit cards at the defendant's retail store. As a condition of participation in the Food Stamp Program, Bizimungu certified that he would comply with all rules and regulations of the program and was aware that program rules strictly prohibit the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, the defendant exchanged food stamp benefits for cash on a discounted basis, usually giving the customers only .50 cents on the dollar for their food stamp benefits. The defendant also permitted food stamp customers to purchase ineligible items with food stamp benefits and accepted food stamp benefits as payment on credit accounts and loans.

Judge Diamond scheduled sentencing for Aug. 11, 2014 at 10 a.m. The law provides for a total sentence of 25 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

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

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

The Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Homeland Security Investigations conducted the investigation that led to the prosecution of Bizimungu.

PITTSBURGH - A Pittsburgh resident and a resident of Oakland, Calif., have been sentenced in federal court on their convictions 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 five years imprisonment followed by five years supervised release on Earl Lamar, 40, of Pittsburgh, Pa., and a sentence of 10 years imprisonment followed by five years supervised release on Roscoe Simpson, 39, of Oakland, Calif..

The IRS-Criminal Investigations 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 cocaine 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 more than 2000 kilograms of cocaine and millions in laundered drug money. Prior to the summer of 2007, the conspiracy utilized packages of cocaine being shipped via the US mail or various common carriers from California to recipients 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 100 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 a co-defendant boarded a plane in Oakland bound for Pittsburgh with cocaine in his luggage. It was later learned that his bag contained 19 kilograms of cocaine. The co-defendant was observed, along with others, looking for the bag in Pittsburgh and he also filed a claim for the bag. On Aug. 8, 2009, more than $335,000 in cash, 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 or money by means such as chartered private flights and vehicles including tractor trailers. Individuals Indicted thus far involve many different roles within the conspiracy. Some conspirators are suppliers, couriers or recipient drug dealer/distributors. Other conspirators played a variety of roles such as: shipping or receiving packages; arranging for couriers, flights and flight payments; money launderers; and those who circumvented security procedures at airports.

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 Lamar and Simpson.

JOHNSTOWN, Pa. - A resident of Northern Cambria, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute heroin, United States Attorney David J. Hickton announced today.

Casey Lex, 29, pleaded guilty to one count before United States District Judge Kim R. Gibson.

In connection with the guilty plea, the court was advised that from April 2012 to March 8, 2013, Lex conspired with others to possess and distribute 100 grams or more of heroin.

Judge Gibson scheduled sentencing for Aug. 21, 2014, at 10 a.m. 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 defendant.

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

The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Lex.

PITTSBURGH - A resident of Latrobe, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of income tax evasion, United States Attorney David J. Hickton announced today.

The four-count indictment named Debra J. Feather as the sole defendant.

According to the indictment, during the years 2007 through 2010, the defendant’s joint federal tax returns were false since they failed to declare substantial income and thus resulted in substantial additional tax owing to the United States.

The law provides for a maximum total sentence, at each count, of five years in prison, a fine of $250,000 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 Leo M. Dillon is prosecuting this case on behalf of the government.

The Internal Revenue Service, Criminal 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 former Butler middle school teacher was sentenced in federal court to two years imprisonment, followed by 10 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.

Senior United States District Judge Donetta W. Ambrose imposed the sentence on Jason B. Nolan, 37, of Gibsonia, Pa.

According to information presented to the court, Nolan, a former middle-school, social studies teacher in the South Butler County School District, used a laptop computer taken from the school’s library to acquire and possess images of child pornography. Nolan also used the laptop to communicate on-line with minors, including a female he believed to be 12 years of age, with whom he spoke of meeting to have sex and to whom he sent naked, sexual photographs of himself, taken in his classroom after school hours.

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

U.S. Attorney Hickton commended the Department of Homeland Security-Homeland Security Investigations (HSI), for the investigation leading to the successful prosecution of Nolan.

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.