Pittsburgh, Pennsylvania – A Pennsylvania resident and a Florida resident pleaded guilty in federal court to charges of mail fraud and engaging in monetary transactions in property derived from specified unlawful activity, United States Attorney Scott W. Brady announced today.
Shane McFall, 33, of Fort Lauderdale, Florida, and Michael McDavid, 33, of Pittsburgh, pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that McFall and McDavid owned and operated 412Flip, a pawn/resale shop in downtown Pittsburgh. McFall and McDavid knowingly and willfully purchased health and beauty aids (HBAs) stolen by opioid dependent individuals from various commercial retailers, such as Rite-Aid, Walmart and Giant Eagle, for pennies on the dollar. The stolen HBAs were then resold through Amazon.
Judge Hornak scheduled sentencing for July 29, 2018 at 9:30 a.m. for McFall and 11 a.m. for McDavid. The law provides for a total sentence of 30 years in prison, a fine of $500,000 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 defendant.
The press release is available at justice.gov.