Gary E. Vaughn, Money Laundering, Pennsylvania 2023

Portage Business Owner Sentenced to 15 Months in Prison for Money Laundering Scheme

A resident of Portage, Pa. has been sentenced in federal court in Johnstown to 15 months in prison, consecutive to a sentence he is presently serving on a case prosecuted in the Middle District of Pennsylvania, and three years’ supervised release, on his conviction of conspiring to commit money laundering.

According to court documents, Gary E. Vaughn, 43, of Portage, Pa., operated a business called Gary’s Steals and Deals, which dealt in new and used merchandise. However, the operation of the business was shrouded in deceit, as Vaughn and his wife, Tonia Vaughn, would accept new stolen items from customers, and then list them for sale on Ebay or Amazon.

The scheme involved dozens of identical, new-in-package stolen items, such as razor blades, pet products, teeth whitening strips, ink cartridges, jackets, and Lego sets, being brought into the store on the same day or subsequent days. The stolen merchandise was then shipped to the purchaser via the mail, with the proceeds from the sale used to either purchase new stolen items or received by employees as proceeds of the conduct.

Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government, while the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation that led to Vaughn’s prosecution.

United States District Judge Kim R. Gibson imposed the sentence on Vaughn, who will serve 15 months in prison, consecutive to a sentence he is presently serving.

This case is a stark reminder of the devastating consequences of money laundering and the importance of holding individuals accountable for their crimes. As a society, we must remain vigilant in our efforts to combat financial crimes and protect our communities.

Gary E. Vaughn’s sentencing marks a significant victory for law enforcement and serves as a warning to others who would engage in similar schemes.

MORE FEDERAL CRIME NEWS

White Collar Crime

Chester Damon Garfield, Money Laundering, Nevada 2008

Jan 15, 2008

White Collar Crime

New York Apple Tours, Wire Fraud, New Jersey 1999

Jan 15, 1999

White Collar Crime

Godrich Machuta, Tax Fraud, Ohio 2010

Mar 12, 2015

White Collar Crime

Lobos Otaiza, Healthcare Fraud, Florida 2023

Jan 15, 2023