Operator of Sports Merchandise Company Sentenced to Three Years in Prison for Running Fraud Scheme

PITTSBURGH—A resident of Allegheny County, Pennsylvania has been sentenced in federal court to serve 37 months’ imprisonment, to be followed by three years’ supervised release, and ordered to pay restitution in the amount of $601,470.31, on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Andrew A. Demasi, 63, of Natrona Heights, Pennsylvania.
According to information presented to the court, Demasi and his partner, Ronald Halpern, operated a business known as A&R Services, Inc., from an apartment at Washington Place, Pittsburgh, Pennsylvania. On behalf of A&R Services, Demasi and Halpern negotiated the purchase, sale, and delivery of sports-related merchandise and novelty items. During the period April 2007 through September 2007, Demasi and Halpern devised and executed a scheme to defraud manufacturers, wholesale distributors, and interstate shipping companies of money and property valued at more than $600,000. The fraud scheme included obtaining merchandise for resale by applying for extensions of credit from the various manufacturers, wholesalers, and shipping companies based on false, financial information provided by Demasi.
On August 3, 2007, Demasi and Halpern, in executing the scheme, obtained merchandise, delivered by interstate carrier FedEx, from Pro Specialities Group, Inc., in San Diego, California, based upon credit extended upon materially false financial information about the financial health and history of A&R Services, Inc. Demasi and Halpern had no intention of paying for the merchandise or its shipment after receipt.
Ronald Halpern entered a guilty plea before Judge Arthur Schwab and was sentenced in May 2013 to serve a 24-month term of imprisonment.
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 and the Office of the United States Trustee for the investigation leading to the successful prosecution of Demasi.

Grand Jury Returns Superseding Indictments in Homestead-Area Drug and Gun Cases

PITTSBURGH—On August 6, 2013, a federal grand jury issued superseding indictments in six related cases involving drug trafficking and violence in Homestead, Pennsylvania, United States Attorney David J. Hickton announced today. The superseding indictments added new firearms and drug trafficking counts and one additional defendant, to drug and gun charges filed against 34 people on March 14, 2013. The original indictments followed a year-long federal, state, and local law enforcement investigation.
The Superseding Indictments
The first superseding indictment, containing seven counts, named:

• Brandon Thompson, 30, of Homestead, Pennsylvania;
• Antonio Hardin, 32, of Monroeville, Pennsylvania;
• James Walker, 44, of Homestead;
• Joseph Thompson, II, 25, of Homestead;
• Richard Wood, 34, of Homestead;
• Gregory Harris, Jr., 24, of Homestead; and
• Luther Harper, 27, of Homestead.

According to the indictment, from in and around April 2012, to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Brandon Thompson, Hardin, Walker, Joseph Thompson, II, Wood, Harris, and Harper, conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment also charges that on or about August 12, 2012, Brandon Thompson used, carried, possessed in furtherance of, brandished, and discharged firearms during and in relation to that heroin trafficking conspiracy. The indictment further charges Antonio Hardin with, on or about February 11, 2013, possessing with the intent to distribute a quantity of heroin, possessing a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. Last, on or about January 26, 2013, the indictment charges Richard Wood with possession with intent to distribute a quantity of heroin, and charges Walker and Hardin with distribution and possession with intent to distribute a quantity of heroin. There were no new charges added. However, Brandon Thompson and Antonio Hardin were both named in additional forfeiture allegations. Ed Cook was charged in the initial indictment for discharging a firearm during and in relation to a drug trafficking crime, and he has since pled guilty to that charge.
The second superseding indictment, containing two counts, named:

• Troy Anderson, 24, of Braddock, Pennsylvania;
• Mark Felder, 25, of Duquesne, Pennsylvania; and
• Dorianne Harris, 20, of Wilkinsburg, Pennsylvania.

According to the indictment, from in and around May 2012, and continuing thereafter to in and around March 2013, in the Western District of Pennsylvania and elsewhere, Anderson, Felder, and Harris, conspired with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. In terms of new charges, Anderson was charged with possession of a firearm in furtherance of a drug trafficking crime on or about March 14, 2013.
The third superseding indictment, containing three counts, named:

• Sterling Marshall, 18, of Munhall, Pennsylvania;
• Tireal Wheeler, 19, of Homestead; and
• Jordan Murphy, 21, of Homestead.

According to the indictment, from in and around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Marshall, Wheeler and Murphy conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. Additionally, the indictment charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. In terms of new charges, Marshall was charged with possession with the intent to distribute a quantity of heroin on or about March 14, 2013. Andre Corbett was charged in the initial indictment, and he has since pled guilty to both counts contained within that indictment.
The fourth superseding indictment, containing six counts, named:

• Jay Germany, 22, of Pittsburgh;
• Brady Hall, 19, of Pittsburgh;
• Jaquan Washington, 23, of Homestead;
• Hector Guadalupe, Jr., 36, of Brooklyn, New York;
• Santino Drew, 34, of New Brunswick, New Jersey;
• Thomas Martinez, 34, of Edison, New Jersey; and
• Louis Spinnenweber, Jr., 34, of Canonsburg, Pennsylvania.

According to the indictment, from in and around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Germany, Hall, Washington, Guadalupe, Jr., Drew, and Martinez, conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, Germany, Hall, and Washington knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. Additionally, on or about January 30, 2013 and January 31, 2013, Drew and Martinez possessed with the intent to distribute 100 grams or more of heroin. Also, on or about November 21, 2012, Spinnenweber, Jr., possessed with the intent to distribute a quantity of a heroin. Last, on or about October 30, 2013, Germany and Hall possessed with the intent to distribute and did distribute a quantity of heroin, and, in a new charge, Washington engaged in that same conduct on or about March 11, 2013.
The fifth superseding indictment, containing 11 counts, named:

• Bryce Harper, 26, of Homestead;
• Diamantia Serrano, 19, of McKeesport, Pennsylvania;
• acie Harper, 24, of Homestead;
• Ryan Harper, 36, of Munhall; Jamar Harper, 32, of Homestead;
• Ronnell Robinson, 19, of Duquesne;
• Seth Lindsey, 18, of Duquesne; and
• Diassandai Serrano, 18, of McKeesport.

According to the indictment, from in and around July, 2012, and continuing thereafter to in and around February, 2013, in the Western District of Pennsylvania and elsewhere, Bryce Harper, Diamantia Serrano, Lacie Harper, Ryan Harper, Jamar Harper, Ronnell Robinson, and Seth Lindsey conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. Also, the indictment charges that on or about September 19, 2012, Bryce, Ryan, and Jamar Harper, together with Diamantia Serrano, possessed with the intent to distribute a quantity of heroin.
The indictment added the following eight new counts. On or about February 27, 2013, Diamantia Serrano possessed with the intent to distribute a quantity of heroin, and on that same day, his brother, Diassandai Serrano, a new defendant, possessed a firearm in furtherance of a drug trafficking crime. On March 13, 2013, Ryan Harper distributed a quantity of heroin, and on February 13 and 19, 2013, Ronnell Robinson distributed a quantity of heroin. On September 17, 2012, Ronnell Robinson possessed a firearm in furtherance of a drug trafficking crime, and Bryce Harper was charged with that same crime on March 14, 2013. Also on March 14, 2013, Bryce Harper was charged with being a felon in possession of a firearm.
The sixth superseding indictment, containing five counts, named:

• Thomas Hopes, 21, of Pittsburgh;
• Keith Harris, 22, of Homestead;
• Anthony Smith, 21, of Homestead,;
• Hakeem Kirby, 19, of Homestead;
• William McDonald, 68, of Homestead;
• Ronnell Robinson, 19, of Duquesne;
• Gregory Harris, Jr., 24, of Homestead;
• Sterling Marshall, 18, of Munhall; and
• Diamantia Serrano, 19, of McKeesport.

According to the indictment, from in and around May, 2012, and continuing thereafter to in and around February, 2013, in the Western District of Pennsylvania and elsewhere, Hopes, Harris, Smith, Kirby, and McDonald conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. The indictment also charges that on or about December 18, 2012, Hopes and Kirby possessed with the intent to distribute and did distribute a quantity of heroin. Also, on March 14, 2013, Kirby possessed with the intent to distribute a quantity of heroin. Last, the indictment charges that on or about January 3, 2013, Robinson, Keith, and Gregory Harris, Marshall, Serrano and Hopes used, carried, possessed in furtherance of, brandished and discharged firearms during and in relation to a drug trafficking crime and a crime of violence.
Penalties
On the conspiracy to distribute one kilogram or more of heroin count, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both, for a first-time drug trafficking conviction. For those with one prior felony drug trafficking conviction, the law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $20,000,000 or both, and for those with two prior felony drug trafficking convictions, the law provides for a mandatory minimum sentence of life in prison.
On the firearms’ counts charging possession, use, brandishing or discharge of a firearm in furtherance of a crime of violence or a drug trafficking crime, the law provides for a mandatory minimum sentence of five years if the gun is possessed in furtherance of the crime, seven years if the gun is brandished in furtherance of the crime, and 10 years if the gun is discharged in furtherance of the crime. These sentences, by law, must run consecutively to any sentence imposed for the narcotics counts. In addition, the law imposes a fine of up to $250,000. For second or consecutive counts of this nature, the law provides for a mandatory minimum consecutive sentence of 25 years.
For the firearms count charging possession of a firearm by a felon, the law provides for a maximum total sentence of up to ten years in prison, a fine of $250,000, or both. However, if the court determines that the defendant has three previous convictions for either crimes of violence or serious drug offenses, the law provides for a maximum total sentence of not less than 15 years and up to life 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 offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting these cases 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 of the above-mentioned individuals.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Suitland PCP Dealer Sentenced to 12 Years in Prison

GREENBELT, MD—U.S. District Judge Roger W. Titus sentenced Shareef Muhammad, age 34, of Suitland, Maryland, today to 12 years in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute phencyclidine (PCP), crack cocaine, and heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration-Washington Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Cathy L. Lanier of the Metropolitan Police Department; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Muhammad’s guilty plea, from at least June 2010 through February 2012, he was a part of a drug trafficking conspiracy led by Samuel Braxton based in and around Temple Hills, Maryland. Braxton regularly received multi-ounce to quarter-gallon quantities of PCP as well as heroin, crack, and powder cocaine from his sources of supply. Braxton sold the PCP, heroin, and crack to Muhammad and other drug customers in the Washington, D.C. metropolitan area, including Prince George’s County.
In August 2011, law enforcement made two purchases of PCP from co-conspirator Cortez Winston, totaling about 16 ounces of PCP. Muhammad had supplied Winston with the PCP, which he had obtained from Braxton. On September 9, 2011, law enforcement arrested Muhammad in Southeast Washington, D.C. and seized from Muhammad’s vehicle approximately 31 ounces of PCP which he had obtained from Braxton.
Over the course of the conspiracy, Muhammad was responsible for the distribution of at least three kilograms of PCP, 28 grams of crack cocaine, and 100 grams of heroin.
Judge Titus also found that Muhammad attempted to obstruct justice. According to Muhammad’s plea agreement, on August 3, 2012, while he was in prison, Muhammad mailed a letter to an associate instructing that person to bring a second enclosed letter to another individual. Muhammad instructed that the second individual should deliver the second letter to Muhammad’s co-defendant, have Muhammad’s co-defendant re-write the letter, and have it notarized. The second letter appeared to have been drafted by Muhammad and had the co-defendant denying that he/she had ever obtained drugs from or discussed drugs with Shareef Muhammad.
A total of 15 members of the conspiracy have been convicted, including Samuel Braxton, age 44, of Temple Hills, Maryland; Mac “Easy” Holland, age 40, of Upper Marlboro, Maryland; and Norman Lee, Jr., age 36, of Washington, D.C., who were sentenced to 27 years in prison, 15 years in prison and 188 months in prison, respectively. Cortez Winston, age 22, of Suitland, Maryland, also pleaded guilty and is scheduled to be sentenced on October 21, 2013.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Metropolitan Police Department, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule, Steven E. Swaney, and Arun Rao, who prosecuted this Organized Crime Drug Enforcement Task Force case.

Clinton Woman Pleads Guilty in $2.3 Million Government Contract Fraud Scheme

GREENBELT, MD—Larayne Whitehead, age 34, of Clinton, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to defraud businesses which supplied goods under government contracts.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, from December 2007 to May 2013, Whitehead and her co-conspirators used at least 15 businesses in Maryland, Delaware, Georgia, Nevada, North Carolina, and Tennessee which they incorporated to bid on contracts to provide goods—such as books, snowmobiles, plants, and paint—to federal, state, and local government agencies. Most of the contracts were awarded using the FedBid online marketplace, which contractors use to compete for federal contracts through a reverse auction process. The conspirators’ businesses often submitted extremely low bids to secure the contracts. Once awarded the contracts, Whitehead enticed victim businesses to act as subcontractors and supply the goods required by contract by providing fake references and by falsely promising that the subcontractors would be paid after the government paid Whitehead. After the subcontractors delivered the goods required by the contracts, government agencies paid Whitehead, typically by electronic transfers to bank accounts set up in the business names but controlled by Whitehead. Whitehead fraudulently retained these proceeds for her own personal benefit and did not pay the subcontractors.
The conspirators typically operated under a particular business name for a period of six to 12 months until the business was either disqualified from the FedBid marketplace or was otherwise burdened with lawsuits or liens. The conspirators then continued the scheme under a newly registered business name. The conspirators initially used their true names and addresses to register their businesses, but later attempted to conceal their true identities by using aliases.
Whitehead has agreed to forfeit $2,393,579 and a car.
Whitehead faces a maximum sentence of 20 years in prison and a fine of $250,000. U.S. District Judge Alexander Williams, Jr. scheduled her sentencing for January 14, 2014 at 12:00 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force—chaired by Assistant Attorney General for the Criminal Division Lanny A. Breuer—includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant U.S. Attorney Christen A. Sproule, who is prosecuting the case.

Westlake Man Sentenced to More Than 21 Years in Prison for Meth and Gun Possession Charges

LAKE CHARLES, LA—United States Attorney Stephanie A. Finley announced Anthony Frederick “Tony” Giaimis, 48, of Westlake, Louisiana, was sentenced Thursday by U.S. District Judge Patricia Minaldi to 262 months in prison and five years of supervised release for conspiring to distribute methamphetamine, 262 months in prison and four years of supervised release for possessing with intent to distribute methamphetamine, and 262 months in prison and six years of supervised release for felony weapon possession. He will serve prison and supervised release terms for all three counts concurrently.
On April 10, 2013, after a three-day trial, a jury found Giaimis guilty of conspiring to distribute 50 grams of methamphetamine, possession of methamphetamine with intent to distribute, and a felon in possession of 14 firearms. According to witness testimony and evidence presented at trial, during the dates of the conspiracy, Giaimis obtained more than 80 ounces of methamphetamine from two men in the Houston area, which he sold to people living in and around Calcasieu Parish. On January 6, 2012, police found 14 firearms during a search of the marina where Giaimis was living, the Bridge Point Yacht club, which is owned by his mother. Giaimis had been previously convicted of a felony in June of 2011 in the 253rd District Court of Texas in Chambers County for possession with intent to deliver more than 200 grams of methamphetamine.
Justin W. Brewer, 42, and Ricky Martinez, 43, both of Houston, Texas, were also charged in the same indictment with Giaimis in August 2012. Brewer was sentenced on July 25, 2013 by Judge Minaldi to 60 months in prison and five years of supervised release for possession with intent to distribute more than 50 grams of methamphetamine. According to evidence presented at Brewer’s guilty plea, he was arrested on December 28, 2011, after a Westlake police officer found 51.1 grams of pure methamphetamine in the trunk of his car. An informant told authorities that Brewer was in the Westlake area and was transporting a large quantity of methamphetamine. After the officer pulled Brewer over for a traffic violation, the officer found a drug smoking pipe and other drug paraphernalia in the console of the car, and a box containing methamphetamine in the trunk. He pleaded guilty on April 8, 2013.
Martinez is scheduled for a change of plea hearing on August 7, 2013. He is charged with one count of conspiracy to distribute more than 50 grams of methamphetamine and one count of possession of more than 50 grams of methamphetamine with intent to distribute.
“It took the work of police, sheriff’s deputies, and federal agents, along with witnesses, to bring the defendants in this drug distribution operation to justice,” Finley stated. “I want to thank all of those who put their time and lives on the line to remove harmful and illegal drugs from our streets.”
The Westlake Police Department, Calcasieu Parish Sheriff’s Office, Lake Charles Police Department, FBI Safe Streets Task Force, Combined Anti-Drug Team (CAT) Task Force, and the Drug Enforcement Administration Laboratory conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.

Three Northeast Alabama Residents Indicted for Distributing Methamphetamine

BIRMINGHAM—A federal grand jury late Tuesday indicted three northeast Alabama residents for conspiracy to distribute methamphetamine in Marshall County, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein, Jr.
An indictment filed in U.S. District Court charges Angela Nicole Holland, 39; Chester Lynn Davidson, 60; both of Albertville, and Robert Bradley Fussell, 38, of Boaz, with conspiring to distribute and to possess with intent to distribute at least 50 grams of the controlled substance, methamphetamine, between November 2012 and February.
The indictment also charges Davidson with two individual counts of distributing methamphetamine on January 29 and January 30. It charges Fussell with one count of possessing methamphetamine with intent to distribute the drug on January 30 and charges Holland with one count of distributing methamphetamine on February 15 and with possessing with intent to distribute five grams or more of the drug on that date.
The conspiracy charge carries a penalty of 10 years to life in prison and a fine of up to $10 million. The charges of possessing with intent to distribute or distributing methamphetamine carry a maximum penalty of 20 years in prison and a $1 million fine. Possessing with intent to distribute at least five grams of methamphetamine carries a possible prison sentence of five to 40 years and a maximum $5 million fine.
The FBI investigated the case, which Assistant U.S. Attorney Laura D. Hodge is prosecuting.
The public is reminded that an indictment contains only charges. It will be the government’s responsibility to prove the charges beyond a reasonable doubt at trial.