Merchenthaler sentenced for Monkey Junction pipe bombs
WILMINGTON, NC (WWAY) — A man has been sentenced to federal prison nearly three years after investigators found pipe bombs in a Monkey Junction storage unit among other crimes.
A federal judge in Pennsylvania today sentenced Istvan Merchenthaler, 45, to 140 months in prison for wire fraud, aggravated identity theft, money laundering, filing false tax returns, interstate transportation of stolen property, possessing unregistered destructive devices, possessing firearms and ammunition as a fugitive and possessing an illegally manufactured firearm. These charges stemmed from indictments in Pennsylvania, Maryland and North Carolina. In addition to the jail time, United States District Judge Robert F. Kelly also ordered three years of supervised release for Merchenthaler, a $2,200 special assessment and more than $3.4 million in restitution.
Federal prosecutors say between May 2006 and February 2013, Merchenthaler claimed to be the founder of PhoneCard USA, a company that was purportedly a “premier distribution source” for prepaid phone cards, prepaid phones and prepaid “adult entertainment cards.” They say Merchenthaler, used a number of aliases and falsely claimed that PhoneCard USA had “lucrative contracts” with major retail chain stores including Walmart, 7-Eleven, and BJ’s Wholesale Club. In reality, though, prosecutors say Merchenthaler operated a “Ponzi” scheme, stealing more than $3 million from more than 250 investors and using much of these funds to buy expensive cars, jewelry and firearms and to perpetuate his scheme. Investigators say to line his pockets with the victims’ money, Merchenthaler used stolen identities, impersonated corporate executives, forged signatures, and fabricated bogus contracts. They say Merchenthaler continued his scheme while he was on pretrial release and filed false tax returns, defrauding the United States of more than $400,000.
While on pretrial release, Merchenthaler also removed his electronic monitoring bracelet and fled as a fugitive. In order to evade authorities, Merchenthaler stole two vehicles from car dealerships in Pennsylvania and North Carolina and drove away in one of the stolen cars from a traffic stop by the Pennsylvania State Police. The United States Marshals Service Fugitive Task Force and the Maryland State Police later arrested Merchenthaler in Bel Air, Maryland.
The US Attorney’s Office says says before and after jumping bail Merchenthaler amassed approximately 17 firearms and over approximately 11,580 rounds of ammunition, as well as approximately 634 improvised explosive devices (“IEDs”), which he stored in Pennsylvania, North Carolina and Maryland. Approximately 67 of these IEDs were comprised of PVC pipe, almost all of which contained shrapnel in the form of nails, screws, or rocks. The remaining approximately 567 IEDs were comprised of cardboard tubes in varying sizes and explosive power. All of the IEDs – PVC and cardboard – were center primed with flash powder. Merchenthaler drove these IEDs in his stolen vehicles to storage facilities in all three states.
In February 2013, state and federal investigators found Merchenthaler’s stash of bombs at a storage unit in Monkey Junction. Prosecutors say during what they call “render safe procedures,” several of the IEDs exploded, resulting in damage to a bomb squad robot and the storage facility.
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