Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
New Jersey Businessman Sentenced to Six Months’ Imprisonment for Tax ViolationsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Agostino Perna was sentenced by United States District Court Judge Jeffrey L. Schmehl to six months in federal prison and six months of home confinement for tax crimes. Perna was also ordered to pay a $25,000 fine and $455,463 in restitution.
Perna pleaded guilty in 2023, admitting that he assisted in the filing of false corporate tax returns and filed false personal income tax returns, with a total loss to the government of $455,463.
Perna was the co-owner and operator of a business called Life Quest, which sells body parts for medical purposes. In this role, he caused false corporate income tax returns for Life Quest to be filed for tax years 2014 through 2019. These returns did not report substantial amounts of the business’ income. This omission occurred because Perna concealed from both his business partner and Life Quest’s accountant/tax preparer that Perna had been receiving significant gross receipts – totaling $332,157 – from certain Life Quest clients, which he ultimately diverted to himself.
Perna filed false personal income tax returns over the same six-year period. First, he failed to report the over $300,000 of Life Quest customer payments that he diverted for his personal use. Second, he omitted from his tax returns over $250,000 of additional income that he received from other businesses he owned. Perna obtained this income having the businesses reimburse him (as a business expense) for using his personal credit cards to pay business expenses, all while he had those businesses directly pay the credit card bills and deducted the credit card payments again as a business expense. Third, Perna failed to report additional significant amounts of business income of approximately $632,000, and then disguised the distribution of that income to himself by mischaracterizing the income as “loan repayments.” Last, Perna failed to report over $80,000 of rental income that he received from properties that he rented to tenants.
“It’s April 15, a day when many people are rushing to file last-minute returns so they can claim refunds or pay what they owe,” said U.S. Attorney Romero. “Our tax system relies on the honesty and integrity of our citizens to do just that — pay what they legitimately owe to the U.S. Treasury. If they don’t, we can’t properly fund government services, which so many people rely on. Perna’s sentence of prison time, fine, and restitution sends the message that failure to pay your taxes will result in significant consequences.”
“Corporate and personal income taxes are an integral source of funding for government programs such as Social Security and Medicare,” said Yury Kruty, IRS-CI Special Agent in Charge. “These cases continue to be a priority for IRS-CI and we will aggressively pursue those who do not comply with those tax obligations.”
The case was investigated by the Internal Revenue Service - Criminal Investigation and prosecuted by Assistant United States Attorney Eric D. Gill.
Former Owner of Philadelphia CDL School Sentenced to 57 Months in Prison for Bribing CDL Examiner and Witness TamperingRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Vladimir Tsymbalenko, 53, the former owner of Vlad’s CDL School in Philadelphia, PA, was sentenced to 57 months’ imprisonment, three years of supervised release, and a $5,000 fine by United States District Court Judge Jeffrey L. Schmehl for bribing a Commercial Driver’s License examiner to pass some of Tsymbalenko’s students who did not actually pass, or never even took, the CDL examination, and for asking a witness to lie.
On October 11, 2023, Tsymbalenko had pleaded guilty to one count of bribery concerning programs receiving federal funds and one count of witness tampering.
“The last thing anyone should want on our roads are people behind the wheel of big rigs or school buses with bogus CDL certifications,” said U.S. Attorney Romero. “Licensure standards are intended to ensure that someone has the training and skills needed to safely move these huge vehicles and their cargo — human or otherwise — from Point A to Point B. As Tsymbalenko’s nearly five-year prison sentence shows, my office and our partners will work to hold accountable anyone seeking to evade such critical government regulations.”
“This sentencing of Vladimir Tsymbalenko demonstrates the Department of Transportation Office of Inspector General’s (DOT-OIG) commitment to pursuing individuals in the motor carrier industry who are willing to compromise the safety of the traveling public for personal gain,” stated Christopher A. Scharf, Regional Special Agent in Charge for DOT-OIG. “Working with our agency, law enforcement, and prosecutorial partners, we remain focused in our efforts to prevent, detect, and prosecute fraud schemes that compromise the integrity of DOT’s safety programs.”
“Corruption and fraud, at any level, is not tolerated, especially for licensing standards designed to keep our community safe,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI will continue to work alongside our federal, state and local partners to pursue those who orchestrate these fraudulent schemes which undermine the integrity of these licenses.”
The case was investigated by the Department of Transportation Office of Inspector General and the Federal Bureau of Investigation, with the assistance of the Pennsylvania Department of Transportation and the Pennsylvania State Police, and was prosecuted by Assistant United States Attorney K.T. Newton.
Philadelphia Carjacking Task Force Highlights Significant Cases, Impact Since Its Formation Two Years AgoRead the Press Release
PHILADELPHIA – The agencies comprising the Philadelphia Carjacking Task Force highlighted the task force’s efforts at a press conference today at the U.S. Attorney’s Office.
U.S. Attorney Jacqueline C. Romero, ATF Philadelphia Special Agent in Charge Eric J. DeGree, FBI Philadelphia Special Agent in Charge Wayne A. Jacobs, and Philadelphia Police Commissioner Kevin J. Bethel discussed the benefits of the task force partnership and several significant investigations. They also noted that the number of carjackings in Philadelphia, after hitting a historical high of 1,311 in 2022, dropped 31% to 900 in 2023. In addition, the numbers for the first quarter of 2024 are indicative of another marked decline from last year.
In her remarks, U.S. Attorney Romero shared that, from January 2022 through March 2024, 59 cases investigated by the Carjacking Task Force have resulted in federal charges, with a total of 103 defendants federally charged in connection with 121 individual carjackings.
U.S. Attorney Romero also discussed some recent case developments, including the sentencing of Dashawn Pringle to 10½ years in prison for two armed carjackings, one in which a victim was violently assaulted; the guilty plea of John Nusslein to two carjackings, including one where an elderly delivery driver was fatally beaten, resulting in a potential sentence of 25 years in prison; and the guilty pleas of Angel Fayez and Kevin Antun to a crime spree that began with a carjacking. Fayez and Antun are now facing mandatory minimum sentences of seven years in prison, and statutory maximum sentences of life in prison.
“We want our community to know that significant strides are being made on their behalf by the Philadelphia Carjacking Task Force,” said U.S. Attorney Romero. “At the same time, we want carjackers, and would-be carjackers, to know that we can and have charged defendants as young as 18 years old federally, and in the cases we’ve prosecuted, we’ve obtained some very significant sentences. Carjacking defendants routinely receive sentences of seven to 15 years — and can even face up to a lifetime of imprisonment in some cases.”
ATF Special Agent in Charge DeGree talked about his agency’s role on the task force, providing investigators and employing ATF’s crime gun intelligence tools. He also highlighted one of the agency’s key cases, in which Tarik Chambers and Nikeem Leach-Hilton committed three back-to-back carjackings, then crashed into and critically injured an elderly driver while fleeing from police. Each man was sentenced to more than 18 years in prison. Two other defendants in the same carjacking crew, Rashad Johnson-Price and Khasir Lynch, have pleaded guilty to additional carjackings; each faces about a decade in federal prison when sentenced.
“Our team of ATF special agents are working tirelessly with our partners in the Philadelphia Carjacking Task Force to seek justice and prevent these dangerous crimes,” said Special Agent in Charge DeGree. “Carjacking is not only a deadly dangerous crime, it is a serious federal offense, carrying lengthy federal prison sentences, even for first-time offenders.”
FBI Special Agent in Charge Jacobs looked at the Bureau’s investigative role and reviewed the cases of Shamire Young and Robert Riles. Young and three co-conspirators committed a carjacking at gunpoint in Northwest Philadelphia, pistol-whipping one of the victims; Young pleaded guilty and was sentenced to seven years behind bars. Riles and two co-conspirators committed a carjacking at gunpoint of a mother and daughter in West Philadelphia, with Riles pleading guilty and receiving a sentence of more than 11 years in prison.
“Whether a single subject or a group of subjects — with criminal history or without — the message is simple. Your actions have consequences,” said Special Agent in Charge Jacobs. “No matter who you are, the FBI and each agency on this task force will hold you to account.”
Philadelphia Police Commissioner Bethel cited the decrease in carjackings in the city over the last two years, crediting the work of the task force for getting numerous violent offenders off the street. He underscored the importance of partnerships like the Carjacking Task Force and how local and federal authorities must work collectively to reduce violent crime.
United States Files Lawsuit Alleging Medicaid Fraud by Philadelphia Mental Health Clinic and Its OwnerRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced today that the United States filed a civil complaint against Nueva Vida Multicultural/Multilingual Behavioral Health, Inc. (“Nueva Vida”) and its owner and principal, Dr. Ghodrat Pirooz Sholevar, alleging that they violated the False Claims Act and state common law by billing Medicaid for psychiatric medication management appointments (known as “med checks”) and other services that did not occur as billed.
In its complaint, the United States alleges that Nueva Vida provided psychiatry and therapy services to economically disadvantaged adults and children at three locations in Philadelphia under the Medicaid program. Among the services that Nueva Vida provided were med checks, appointments during which a psychiatrist is supposed to assess the efficacy and effects of a prescribed drug, including controlled substances, on patients within the doctor’s care. The United States alleges that between at least 2009 and 2017, Nueva Vida and Sholevar fraudulently billed Medicaid for thousands of med checks as though Sholevar had met with each patient for at least 15 minutes — when in reality, Sholevar spent well below the required time meeting with patients.
“This civil complaint reflects our focus on pursuing individuals who defraud Medicaid, especially when doctors in the Medicaid program should be providing complete and comprehensive mental health services to vulnerable populations,” said U.S. Attorney Romero.
“Civil enforcement is an important component in safeguarding the integrity of the Medicaid and Medicare Programs,” said Maureen Dixon, Special Agent in Charge of the Philadelphia Regional Office for the U.S. Department of Health and Human Services, Office of Inspector General. “Today’s civil complaint shows our commitment to ensuring Medicaid program dollars are only paid for services that were properly provided to patients.”
Among other things, the United States alleges that the defendants repeatedly billed Medicaid for days during which Sholevar allegedly performed more than 84 full-length med checks on the same day, which would amount to at least 21 hours of appointments. According to the United States, the defendants also repeatedly billed Medicaid for services that were never provided—because the relevant patients were receiving in-patient treatment at different hospitals at the alleged time of service. The United States also alleges that Nueva Vida failed to adhere to corporate formalities and was merely an alter ego for Sholevar. As a result, Sholevar personally pocketed millions of dollars in compensation through his control over Nueva Vida and defendants’ fraudulent billing, with an annual income as much as double the median compensation for child psychiatrists in Philadelphia. The United States’ civil lawsuit seeks damages for the false Medicaid claims submitted by defendants as well as the imposition of civil penalties.
The civil complaint details years of audits of Nueva Vida by Community Behavioral Health (CBH), the managed care organization that contracts with healthcare providers who provide mental health services for Medicaid recipients in Philadelphia. Over the years, as outlined in the complaint, CBH found repeated errors and significant problems in these audits. In 2017, Nueva Vida was terminated from the Medicaid program.
The matter was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General. The matter is handled by Assistant U.S. Attorneys Erin E. Lindgren and Gregory B. in den Berken of the Civil Division and healthcare fraud auditor George Niedzwicki.
The claims asserted against the defendants are allegations only — there has not yet been any determination of liability.
Philadelphia Man Indicted for May 2020 Arson of a SunRay Drugs Pharmacy Building in West PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Tyrone Wise, 34, of Philadelphia, PA, was charged today by indictment with one count of arson.
The indictment alleges that on May 31, 2020 — while both lawful protests and unlawful civil disturbances were occurring throughout the region and the country — the defendant started a fire inside 25 South 60th Street (at the corner of Ludlow and 60th Streets) in Philadelphia. The fire severely damaged a SunRay Drugs Pharmacy and multiple apartments inside the building.
If convicted, the defendant faces a mandatory minimum sentence of 5 years’ imprisonment, a maximum possible sentence of 20 years’ imprisonment, and other penalties.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Kevin Jayne.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced to More Than 13 Years in Prison for Robbing a Pizza Parlor in Mayfair and Shooting Two EmployeesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Kaleb Bridges, 20, of Philadelphia, PA, was sentenced today by United States District Court Judge Gerald A. McHugh to 166 months’ imprisonment and five years of supervised release for robbing a local restaurant and shooting and wounding two employees.
On December 6, 2023, Bridges pleaded guilty to charges of Hobbs Act robbery and carrying, using, and discharging a firearm during and in relation to a crime of violence.
The charges stem from Bridges’ actions on the night of March 8, 2023, when he entered the Mayfair Pizza restaurant at 7424 Frankford Avenue just before closing time. He produced a gun and demanded that an employee empty the cash register and place the money into a bag. After she had done so, Bridges pulled away before the employee could release the bag. Bridges then shot the employee (Victim #1) in the shoulder. She ducked down below the counter and Bridges fired another round, which struck a refrigerator.
The employee’s father, who owns the business, witnessed what happened. As Bridges made his way to the door with the bag of stolen money, the employee’s father then struggled with Bridges in an effort to keep him from fleeing. During the struggle, Bridges’ gun fell to the floor. Bridges retrieved and fired it, this time striking the employee’s mother (Victim #2), the co-owner of the pizza parlor. At that point, the employees were able to gain control of the defendant and hold him until the police arrived and took him into custody. Police officers rushed the shooting victims to the hospital, where Victim #1 was treated and released within a few hours. Victim #2 spent several weeks in the hospital recovering from her injuries.
“Kaleb Bridges’ decision to rob this family business at gunpoint and shoot two members of that family was life-changing for the victims,” said U.S. Attorney Romero. “While this crime occurred in a matter of minutes, it will long stay with the two women he shot and the witnesses who struggled to restrain him. It’s also changed the course of Bridges’ life, which, for the next decade-plus, will be lived locked away in prison.”
“Armed robberies threaten Philadelphia’s business and communities, and ATF Philadelphia Field Division is committed to working with the Philadelphia Police Department and our other partners to investigate, prosecute and prevent such crimes,” said Eric J. DeGree, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Philadelphia Field Division. “We regularly work together, sharing the ATF’s unique forensic and investigative tools, to ensure justice for the victims and to make our communities safer through federal prosecution.”
“The brazen violence displayed by Kaleb Bridges is a threat to the safety of every person in our city,” said Philadelphia Police Commissioner Kevin J. Bethel. “This case is a chilling example of how a robbery can escalate into a shooting, leaving innocent people injured and a community shaken. I applaud the collaborative efforts by the ATF, our detectives, and the U.S. Attorney's Office in holding this defendant accountable for his actions. This sentence sends a clear message that we will not tolerate this kind of violence in our neighborhoods, and that we will work tirelessly to bring those who commit such crimes to justice.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, and prosecuted by Assistant United States Attorney Robert E. Eckert.
Philadelphia Man Pleads Guilty to Murder in a Case Involving Two Carjackings of Food Delivery DriversRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that John Nusslein, 19, of Philadelphia, PA, pleaded guilty today to one count of conspiracy to commit carjacking, one count of carjacking resulting in death, and one count of carjacking resulting in serious bodily injury.
Nusslein was charged by indictment in June 2022 with these offenses, in connection with a series of carjackings of food delivery drivers in Northeast Philadelphia during November and December of 2021.
According to the indictment, the defendant and others committed two carjackings during the course of the conspiracy that took place between November 29, 2021, and December 29, 2021. The incidents detailed are as follows:
- On December 2, 2021, Nusslein and two others placed a food delivery order to an address on the 3000 block of Teesdale Street in Philadelphia, as a ruse to lure their intended victim to that location. At approximately 7:00 p.m., when C.C., a food delivery driver, arrived at that location, Nusslein, Person 1, and Person 2 approached C.C. and struck him repeatedly to facilitate the taking of C.C.’s vehicle, a 2004 Toyota Camry. Nusslein, Person 1, and Person 2 then fled the area in C.C.’s stolen Toyota Camry. C.C. was later taken to the hospital by first responders. On December 21, 2021, C.C. succumbed to his injuries and the Philadelphia Medical Examiner’s Office determined that the cause of death was the assault that C.C. sustained during the carjacking.
- On December 16, 2021, Nusslein and Person 1 placed a food delivery order to an address on the 9000 block of Hilspach Street in Philadelphia, as a ruse to lure their intended victim to that location. At approximately 9:10 p.m., when W.Z., a food delivery driver, arrived at that location, Nusslein and Person 1 approached W.Z., pointed a firearm at him, demanded his money, and struck him to facilitate the taking of W.Z.’s vehicle, a 2015 Infiniti QX5. Nusslein and Person 1 then fled the area in W.Z.’s stolen Infiniti QX5.
“The fact that these carjackers specifically lured two innocent people trying to make a living is despicable,” said U.S. Attorney Romero. “That Nusslein and the others so brutally beat one driver that his injuries proved fatal is horrific. We and our partners on the Philadelphia Carjacking Task Force simply won’t permit violent offenders like Nusslein to victimize people with impunity. They will be prosecuted, and they will go to prison for a very long time.”“Carjacking is a serious federal crime with lengthy prison sentences. This case also demonstrates that carjacking is a deadly dangerous crime,” said Eric J. DeGree, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Philadelphia Field Division. “ATF Philadelphia Field Division is working diligently with our partners in the Philadelphia Carjacking Task Force, sharing the ATF’s unique forensic and investigative tools to ensure justice for the victims and to make our communities safer through federal prosecution.”
“This case is a tragic reminder that carjackings can have deadly consequences,” said Philadelphia Police Commissioner Kevin J. Bethel. “The senseless assault on these food delivery drivers is appalling and unacceptable. I commend the outstanding collaboration between the Philadelphia Police Department, the ATF, and the U.S. Attorney's Office for their work in bringing this case to justice. Our carjacking task force remains vigilant in investigating these crimes and will continue to work tirelessly to ensure the safety of Philadelphians.”
Nusslein is set to be sentenced on July 31, 2024, before United States District Court Judge John M. Younge, and faces a maximum possible sentence of life in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Lauren E. Stram and Assistant United States Attorney Robert E. Eckert.
Philadelphia Man Sentenced for Directing a Scheme to Steal Diesel Fuel from Gas Stations and for Illegally Possessing FirearmsRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that William Cole, 32, of Philadelphia, PA, was sentenced to 70 months’ imprisonment and three years of supervised release by United States District Court Judge Gerald A. McHugh for directing a scheme to steal diesel fuel from gas stations and illegally possessing firearms.
In October 2023, Cole pleaded guilty to one count of conspiracy to commit access device fraud and one count of possession of a firearm by a felon.
From March 2021 through June 21, 2023, the defendant purchased stolen credit card data and had co-conspirators fill up auxiliary tanks at Philadelphia-area gas stations, at his direction and using his trucks, with more than $750,000 worth of diesel fuel, using those unlawfully obtained credit card numbers. Cole would then resell the diesel fuel at a discounted rate.
On June 26, 2023, during a court-authorized search of Cole’s residence, Homeland Security Investigations recovered a Smith and Wesson semi-automatic pistol loaded with 15 rounds of ammunition and a Glock 27, which had been modified with a conversion kit into a fully automatic pistol. Cole had previously been convicted of state drug and gun offenses in Pennsylvania and was not permitted to be in possession of firearms.
“Cole fueled his scheme using other people’s stolen information and armed himself with guns he knew he shouldn’t have,” said U.S. Attorney Romero. “This sentence holds him accountable for both his financial and firearms offenses. We’ll continue to work with HSI and our other valued partners to prosecute repeat offenders like William Cole.”
“Fraud through the manipulation of financial systems is one of the core investigative priorities of Homeland Security Investigations,” said William S. Walker, Special Agent in Charge of HSI Philadelphia. “Convicted felons like William Cole need to be held accountable for perpetrating fraud schemes targeting commercial businesses. Cases like this one are only accomplished when dedicated agents and prosecutors work side-by-side to bring fraudsters to justice.”
The case was investigated by Homeland Security Investigations (HSI) Philadelphia’s El Dorado – Cyber Crimes Investigations Task Force (C2iTF) and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Restaurant Owner Sentenced to 30 Months’ Imprisonment for Tax Violations That Cost the Government Almost $1.2 MillionRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Yong Chun (“Steven”) Guo, 57, of Wyomissing, PA, was sentenced by United States District Court Judge Joseph F. Leeson, Jr. to 30 months in federal prison for tax crimes. Guo was also ordered to pay restitution of $1,172,368 and a $95,000 fine.
Guo pleaded guilty in 2023 to conspiracy to defraud the United States, a charge that arose from his use of a cash payroll at his family owned-and-operated restaurant to avoid paying the full amount of employment taxes due. Records seized from the restaurant pursuant to a search warrant showed that employees were paid wages by a combination of paycheck and cash. Records provided by Guo’s accountant showed that only the portion of the payroll that was paid by check was disclosed to Guo’s accountant. The IRS calculated that Guo’s restaurant failed to report on its Forms 941 more than $3.9 million of cash wages that he paid employees from the first quarter of 2013 through the first quarter of 2020, resulting in a payroll tax loss of approximately $444,899.
Guo also pled guilty to attempted tax evasion, a charge that arose from his failure to report cash skimmed from the restaurant on his Form 1040 returns for tax years 2016, 2017, and 2018. The IRS calculated that Guo failed to report more than $2 million of income on his Forms 1040 for 2013 through 2018, resulting in a tax loss of approximately $727,469.
“Guo’s crimes cost the government more than a million dollars in tax revenue,” said U.S. Attorney Romero. “They’re also a slap in the face to every honest taxpayer who does the right thing each year. As this case shows, we’re fully committed to prosecuting tax cheats who refuse to contribute their fair share. Bottom line: pay what you owe or prepare to pay some serious consequences.”
“Our largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their taxes,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Anyone contemplating cheating on their taxes should know that IRS Criminal Investigation Special Agents work tirelessly, year-round, to investigate tax and financial crimes.”
The case was investigated by the Internal Revenue Service Criminal Investigation and prosecuted by Assistant United States Attorney Karen L. Grigsby.
City Man Sentenced to More Than 15 Years in Prison for Back-to-Back Armed Robberies of Northeast Philadelphia StoresRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Michael Malcolm, 26, of Philadelphia, PA, was sentenced to 185 months’ imprisonment, five years of supervised release, and $300 restitution by United States District Court Judge Gerald J. Pappert for robbing two Northeast Philadelphia stores at gunpoint.
On February 7, 2023, Malcolm pleaded guilty to one count of Hobbs Act robbery, one count of attempted Hobbs Act robbery, and one count of using and carrying a firearm during and in relation to a crime of violence. The charges stem from two armed robberies he committed within a matter of minutes on October 5, 2021.
At approximately 8:06 p.m. that evening, Malcolm entered Illadelph by All in One Smoke Shop at 14230 Bustleton Avenue in the Northeast. He asked the clerk for cigarillo wraps and handed over money to pay for them. When the clerk opened the register, Malcolm produced a gun, racked the slide, pointed the weapon at the clerk, and demanded money. After the clerk gave him approximately $300 from the register, Malcolm fled the store.
About 10 minutes later, Malcolm went to Somerton Beverage, located at 13510 Bustleton Avenue, approximately two-tenths of a mile from the smoke shop he’d just robbed. Malcolm entered the store, selected a beer for purchase, and gave money to the clerk. When the clerk didn’t open the register, Malcolm produced his firearm. The clerk yelled “he got a gun” and Malcolm fled the store with the beer.
Shortly after the Somerton Beverage robbery, two officers with the Philadelphia Police Department observed Malcolm standing on the corner at 13501 Bustleton Avenue. When the officers attempted to stop him, he fled on foot. After a short foot chase, Malcolm was arrested. When police officers searched Malcolm, they recovered a loaded 9mm handgun. Officers also seized Malcolm’s jacket, which matched the jacket described by the robbery victims that night.
“Anyone willing to rob a total stranger at gunpoint, let alone try it twice in a matter of minutes, is an obvious threat to our community,” said U.S. Attorney Romero. “The victim clerks in this case were on the job, just trying to make a living, when someone who’d rather steal money than earn it made them fear for their lives. We and our law enforcement partners are working to identify, prosecute, and lock up violent offenders like Michael Malcolm, to make the streets — and the stores — of Philadelphia safer for all.”
“The citizens who live and work in our community deserve to feel safe,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Through the diligent work and continued collaboration with our law enforcement partners, the FBI will continue to take violent criminals off our streets.”
“I would like to commend the diligent efforts of our law enforcement partners for swiftly bringing Michael Malcolm to justice,” said Philadelphia Police Commissioner Kevin Bethel. “These back-to-back armed robberies serve as a stark reminder of the importance of collaborative efforts in ensuring the safety and security of our communities. Through initiatives like Project Safe Neighborhoods, we remain steadfast in our commitment to reducing violent crime and fostering a safer environment for all. The significance of this sentencing cannot be overstated — it underscores the gravity of the defendant’s actions, and sends a clear message that such criminal behavior will not be tolerated in our city.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the FBI and the Philadelphia Police Department and prosecuted by Assistant United States Attorney Thomas M. Zaleski.
Delaware County Mushroom Farm Owner Sentenced to 46 Months’ Imprisonment for Tax ViolationsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Donna Fecondo, 63, of Garnet Valley, PA, was sentenced by United States District Court Judge Mitchell S. Goldberg to 46 months in federal prison for tax crimes. Fecondo was also ordered to pay restitution.
Fecondo pleaded guilty in 2022, admitting that she failed to remit employment (payroll) taxes to the IRS, with a loss to the government, for the years charged in the indictment, of approximately $600,000, and failed to file corporate and personal income tax returns.
Fecondo was the president and sole owner of Joseph Silvestri & Son, a/k/a Joseph Silvestri & Son, Inc. (“JSSI”). JSSI was a business operating a mushroom farm, with its principal place of business in Garnet Valley. As the sole owner of JSSI, Fecondo was responsible for collecting, accounting for, and paying over employment taxes. JSSI paid its employees weekly and was required by the IRS to electronically deposit its payroll taxes weekly. Fecondo withheld the taxes from her employees’ pay but did not remit the taxes to the IRS.
Fecondo did not timely file Forms 943, Employer’s Annual Federal Tax Return for Agricultural Employees, for tax years 2013 through 2016. Instead, Fecondo filed the Forms 943 for tax years 2013 through 2016 in or about July 2017, well after the due dates and after the Internal Revenue Service had contacted her about her failure to pay employment taxes and her failure to file returns.
Although Fecondo reported substantial payroll taxes due and owing on the Form 943 for tax years 2013 through 2016 that she made in July 2017, and although JSSI withheld employment taxes from JSSI’s employees’ wages, Fecondo did not pay over any employment taxes to the IRS for those tax years. In total, for tax years 2013 through 2016, Fecondo should have withheld and remitted to the IRS a total of approximately $1,255,068.94 in employment taxes, but instead she remitted nothing. Of this amount, Fecondo should have withheld and remitted to the IRS a total of approximately $599,159.94 related to tax years 2015 and 2016, but instead remitted nothing.
Fecondo also failed to file her 2015 and 2016 personal income tax returns even though she knew that she was required by law to file a tax return for each of those years. Further, Fecondo failed to file corporate tax returns on behalf of JSSI for tax years 2015 and 2016.
“We’re in the middle of tax season, when a lot of people are grumbling about what they owe the IRS — but they still go ahead and pay what they’re supposed to.” said U.S. Attorney Romero. “It’s these honest taxpayers who are being robbed when people try to cheat the system. Donna Fecondo was obligated to properly remit payroll taxes to the government and file personal and business returns annually, but simply decided not to. Her nearly four-year prison sentence should send a loud message to anyone even contemplating tax fraud that it will wind up costing them dearly, in the end.”
“Payroll taxes are an integral source of funding for government programs such as Social Security and Medicare,” said Yury Kruty, IRS-CI Special Agent in Charge. “Employment tax fraud will continue to be a priority for IRS-CI and we will aggressively pursue those who do not comply with their employment tax obligations.”
The case was investigated by the Internal Revenue Service - Criminal Investigation and prosecuted by Assistant United States Attorney Karen Grigsby.
Sex Offender Convicted at Trial on Child Pornography and Failure to Register ChargesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Christopher Daniels, 33, of Philadelphia, PA, was convicted at trial of receiving child pornography as a second time offender, possession of child pornography as a second time offender, access with intent to view child pornography as a second time offender, and failure to register as a sex offender, as required by the Sex Offender Registration and Notification Act (SORNA).
Daniels was first charged with child pornography offenses on March 12, 2015, and in July of that year, pleaded guilty to possession of child pornography. United States District Judge Wendy Beetlestone sentenced Daniels to 70 months in prison and 10 years of supervised release.
The defendant’s term of supervised release commenced on January 15, 2021. Under SORNA, he was required to keep his sex offender registration information, including his registered residential address, current. In July of 2022, Daniels failed to verify his sex offender registration with Pennsylvania State Police as required and went into non-compliant status. Daniels was also found to be non-compliant with the terms of his federal supervised release and a bench warrant was issued for his arrest.
On November 3, 2022, the U.S. Marshals Service arrested Daniels and the FBI conducted a court-authorized search of his residence, seizing several electronic devices belonging to the defendant. Subsequent forensic examination of those devices found thousands of videos and images depicting child pornography and browser searches for such material.
Daniels was charged by indictment on January 19, 2023, and by superseding indictment on August 29, 2023, with child pornography offenses and failure to register.
“After leaving prison in 2021, Mr. Daniels understood his legal responsibilities: comply with the requirements of his supervised release, keep his sex offender registration up to date, and stay away from material depicting the horrific sexual exploitation of children,” said U.S. Attorney Romero. “Well, he did none of those things, and this verdict ensures he’ll answer for it. The safety of our community and its children is the top priority of my office and our law enforcement partners.”
“Protecting children against exploitation remains a priority for the FBI,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “FBI Philadelphia and our law enforcement partners remain committed to identifying, investigating, and prosecuting those who seek to victimize our most vulnerable.”
“The propensity for underlying crimes of a most heinous nature cannot be discounted when investigating SORNA violations,” said U.S. Marshal Eric Gartner. “As such, the U.S. Marshals Service, together with the USAO and our federal, state, and local law enforcement partners, will aggressively pursue any and all such matters.”
Daniels faces a mandatory minimum sentence of 15 years in prison and a statutory maximum of 130 years in prison, and from five years up to a lifetime of supervised release. He also faces a consecutive sentence of two years in prison on his violation of supervised release.
The case was investigated by the FBI and the U.S. Marshals Service and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Philadelphia Drug Trafficker Who Sought to Have Witness Killed Sentenced to More Than 51 Years in Prison for Narcotics and Gun OffensesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Luis Algarin-Torres, 34, of Philadelphia, PA, was sentenced by United States District Judge Paul S. Diamond to 622 months in prison, to be followed by six years of supervised release, for distribution of narcotics and firearms possession offenses.
On March 10, 2018, Drug Enforcement Administration agents executed a search at the defendant’s home on the 4000 block of North Reese Street in Philadelphia. In a hidden compartment above a kitchen ceiling light fixture, agents found more than $28,000 in cash, 34 grams of cocaine, and a loaded firearm that had been modified to fire automatically. Prior to trial, the defendant pleaded guilty to a number of narcotics offenses, including possession of the 34 grams of cocaine with intent to distribute, and pleaded not guilty to two gun charges.
On March 31, 2023, after a three-day trial on those charges, the jury found the defendant guilty of possession of a firearm in furtherance of a drug trafficking offense and possession of a firearm by a convicted felon. The jury further found that the firearm had been modified to fire automatically. The evidence also showed that while awaiting trial, the defendant recruited another inmate to try to kill a witness who was scheduled to testify against the defendant.
“Luis Algarin-Torres received a very long prison sentence because he’s a career offender and very dangerous man,” said U.S. Attorney Romero. “For years, this large-scale drug trafficker helped flood Philadelphia with poison, and after he was arrested for it, tried to have a witness killed to better his chances at trial. Putting violent criminals like this out of business and behind bars makes our community a safer place.”
“Algarin-Torres was convicted at trial on federal drug and firearms charges, to include a firearm that was modified to fire automatically,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Of particular concern was that in addition to his drug and firearms charges, the evidence showed that Algarin-Torres attempted to orchestrate the murder of a federal witness that was scheduled to testify against him at trial. Let this 51-year prison sentence be a message that anyone who seeks to intimidate or harm a witness will face severe consequences in federal court.”
The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorneys David J. Ignall and Meghan E. Claiborne.
Philadelphia Pharmacy Criminal Pleas and Civil Resolutions Result in Multiple Criminal Convictions and over $4 Million RecoveredRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that two former pharmacy employees pled guilty, were sentenced, and settled civil allegations as to Philadelphia-based Spivack, Inc., previously operating under the name Verree Pharmacy (“Verree”). These two employees’ criminal and civil resolutions bring to an end the years-long investigation by the U.S. Attorney’s Office and its law enforcement partners as to opioid and fraud-related issues at Verree by its owner, Mitchell Spivack, and his employees. In addition to criminal convictions resulting in imprisonment, the settlements resulted in over $4.1 million recovered and permanently ban the employees from ever dispensing controlled substances in the future.
Most recently, two former employees, Todd Goodman and Eric Pestrack, pled guilty to charges that they knowingly dispensed oxycodone without a valid prescription. The district court sentenced Goodman and Pestrack to four months and three months in prison, respectively. In addition to the criminal convictions, Goodman and Pestrack separately agreed to resolve civil allegations that they engaged in a years-long practice of illegally dispensing and distributing opioids and other controlled substances as well as systematic health care fraud by billing for drugs the pharmacy did not actually dispense to patients. In addition to paying the United States to resolve their exposure, the two also committed to never dispense controlled substances in the future.
Goodman and Pestrack’s convictions come after owner-pharmacist Mitchell Spivack pled guilty and was sentenced to 42 months in prison for his role at Verree. Spivack pled guilty to having conspired with others to engage in health care fraud and illegally dispense the controlled substance oxycodone at Verree. Spivack also resolved the civil allegations against him through a court-approved consent judgment. Spivack and his business agreed to pay over $4.1 million to resolve their civil liability under the Controlled Substances Act, False Claims Act, and forfeiture. The judgment also permanently banned them from ever dispensing controlled substances in the future and imposed a 22-year exclusion on the pharmacy and Spivack from Medicare and Medicaid.
The culmination of a multi-year federal-state investigation, the previously filed civil complaint alleged that Verree, its owner Spivack, and employees of Verree had a responsibility to dispense opioids and other controlled substances only when appropriate. Instead, the United States alleged that Verree and Spivack dispensed the drugs, even when faced with numerous red flags suggestive of diversion, such as opioids in extreme doses, dangerous combinations of opioids and other “cocktail” drugs preferred by those addicted, excessive cash payments for the drugs, blatantly forged prescriptions, and other signs that the pills were being diverted for illegal purposes. The complaint alleged that Verree—which was the top retail pharmacy purchasing oxycodone in Pennsylvania—has been a nationwide and regional outlier in its deviant purchasing, dispensing, and billing of controlled substances. To avoid scrutiny from the drug distributors that sold them the pills, Verree through Spivack allegedly made false statements to maintain the façade of legitimacy and keep the pharmacy stocked with these pills critical to their profits. Behind that façade, the complaint alleged that Spivack drew millions of dollars from the pharmacy while the public suffered the consequences.
The United States’ complaint alleged that Verree and Spivack were also engaged in an expansive health care fraud scheme involving fraudulent billings for drugs not actually dispensed. The alleged cornerstone of the scheme was a code used by the pharmacy employees in their internal computer system: “BBDF” or Bill But Don’t Fill. Verree, Spivack, and their co-conspirators allegedly used BBDF as a means to cover their losses on other drugs and further line their pockets with illicit profits by falsely claiming to insurers, including Medicare, that they had dispensed a drug to a patient, when in fact they had not. According to the complaint, this sophisticated fraud—which one of the employees allegedly admitted to investigators—resulted in significant damages to Medicare and other federal programs.
“Pharmacies and pharmacists who engage in illegal dispensing of opioids devastate their communities and worsen our country’s opioid epidemic” said U.S. Attorney Romero. “Providers who abuse Medicare and other federal health care programs by taking money with false billings also steal precious resources from programs critical to the health of our seniors and other citizens. This Office is committed to investigating and holding accountable those providers who violate their controlled substance and health care billing obligations. Our Office deeply appreciates our partnership with the DEA, HHS-OIG, and the Pennsylvania Attorney General’s Office in pursuing these cases.”
“In a city that has been so adversely and disproportionately affected by the opioid epidemic, Verree Pharmacy was the top retail pharmacy purchasing oxycodone in the entire state of Pennsylvania,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Spivack and the other employees at Verree routinely demonstrated total disregard for their professional and ethical obligations and improperly dispensed powerful painkillers when numerous warning signs were present.”
“The Medicare and Medicaid Programs provide vital prescription drug services to their beneficiaries,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office for the Department of Health and Human Services, Office of Inspector General. “Pharmacies are required to only bill for prescriptions and products they actually provide to their patients. HHS-OIG will continue to work with the U.S. Attorney’s Office, the Pennsylvania Attorney General’s Office, and the DEA to investigate allegations of fraudulent insurance billings.”
“We are proud collaborators in efforts leading to these recent convictions, along with the millions of settlement dollars from this deceptive, predatory pharmacy practice. Our communities continue to rebuild and recover from opioid-related devastation, so our efforts to assist in that recovery cannot and will not stop,” Pennsylvania Attorney General Michelle Henry said. “My office has shown a commitment, through this and other actions, to hold accountable the pharmacists and businesses that exploited a nationwide addiction crisis to line their pockets.”
The case was investigated by the Philadelphia Field Division of the DEA, the Pennsylvania Department of State’s Bureau of Enforcement and Investigation, HHS-OIG, and the Pennsylvania Office of the Attorney General, with additional assistance from the HHS-OIG Office of Audit Services, Office of Personnel Management Office of Inspector General, the Defense Health Agency, and the Defense Criminal Investigative Service. The criminal charges were prosecuted by Assistant United States Attorneys M. Beth Leahy, Joan Burnes, and Eileen Geiger, and Special Assistant United States Attorneys Robert Smulktis and Linda Montag from the Pennsylvania Office of the Attorney General. The civil investigation and litigation were handled by Assistant United States Attorneys Anthony D. Scicchitano and Sarah L. Grieb and auditors Dawn Wiggins and George Niedzwicki.
Except for what has been admitted in the criminal proceedings, the complaints in the civil litigation contain allegations only.
Former Universal Companies Executives Convicted at Trial of Conspiracy to Defraud the United States GovernmentRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that defendant Abdur Rahim Islam, 66, the former Chief Executive Officer of Universal Community Homes and defendant Shahied Dawan, 72, the former Chief Financial Officer and Secretary of Universal, both of Philadelphia, PA, were convicted today at trial of conspiring to defraud the United States.
Islam was also convicted of six counts of honest services wire fraud, five counts of wire fraud, and six counts of filing false tax returns.
Details of the charges follow.
Count 1 – Conspiracy to Defraud the United States (Islam and Dawan convicted)
The defendants conspired to defraud the United States by impeding, impairing, obstructing, and defeating the lawful functions of the Internal Revenue Service of the Department of the Treasury in the ascertainment, computation, assessment, and collection of income taxes, and in the regulation of tax-exempt charitable organizations, from at least in or about 2011 until at least in or about 2018.
The object of the conspiracy was to conceal from the Internal Revenue Service taxable income, including unapproved bonuses and payments to both defendants, and improperly reimbursed personal expenses to Islam. The defendants hid the true nature of these payments from Universal’s auditors as they prepared the IRS Forms 990 for Universal. As a result, the tax returns for Universal and its related companies were false. Because Universal was able to maintain its tax-exempt status as a Section 501(c)(3) organization, the defendants were able to take advantage of the benefits of Universal’s tax-exempt status, including the ability to solicit donations based on representations that such donations would be tax deductible.
Counts 2-7 – Honest Services Wire Fraud (Bribery) (Islam convicted)
Islam devised and participated in a scheme and artifice to defraud and to deprive the citizens of Milwaukee, Wisconsin, of their right to the honest services of then-Milwaukee Public Schools Board President Michael Bonds, from in or about December of 2014 to in or about February of 2018.
The scheme involved the payment of an $18,000 bribe to Bonds, who previously pleaded guilty, in exchange for Bonds using his official position to take a series of official actions to financially benefit Universal. These actions included advocating for and voting in favor of Universal’s expansion of charter school operations in Milwaukee, and for favorable lease terms for Universal.
Counts 8-12 – Wire Fraud (Islam convicted)
Islam devised and participated in a scheme and artifice to defraud and to obtain money and property, that is, at least $491,000, from the Universal Companies, by means of materially false and fraudulent pretenses, representations, and promises, from in or about December of 2014 to in or about February of 2018.
He stole significant sums of money from Universal, even while Universal was losing significant amounts of money due to the failed charter school expansion in Milwaukee. The thefts included unapproved bonuses of $280,000 for Islam and at least $211,000 in fraudulent expense reimbursements to him.
Counts 13-18 – Filing False Tax Returns (Islam convicted)
Islam filed false tax returns for tax years 2011, 2012, 2013, 2014, 2015, and 2016, underreporting his taxable income by approximately $573,823, resulting in a tax loss to the government of approximately $196,577. The defendant did not report any of the money he took from Universal during the execution of the wire fraud scheme that is the subject of Counts 8-12.
“Islam and Dawan conspired to defraud the government — and therefore, taxpayers — out of revenue,” said U.S. Attorney Romero. “Today’s verdict holds them accountable for doing so, and holds Islam responsible for his years-long pattern of criminal activity. He treated Universal like a virtual ATM, shortchanging its charter schools’ students, and the community, in the process.”
“Public corruption is a top FBI criminal investigative priority, as it erodes public confidence in the systems built to better our communities,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI and our law enforcement partners remain steadfast in our commitment to combating public corruption at any level and aggressively pursue those who abuse their positions for personal profit.”
“The outcome today is due to the dedicated efforts of IRS Criminal Investigation special agents and our law enforcement partners,” said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. “IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation, and we will continue to aggressively investigate individuals who engage in money laundering, tax fraud, or other types of white-collar crimes.”
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigations Division, with assistance from the Department of Education Office of Inspector General and is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Linwood C. Wright, Jr.
Two Brothers Sentenced to Prison for Multi-District Scheme to Defraud the United States Postal Service, UPS, and Citizens BankRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Zumar Dubose, 35, of Atlantic City, NJ, and Abdush Dubose, 37, of Boynton Beach, FL, were sentenced by United States District Judge Wendy Beetlestone, in connection with their scheme to defraud and obtain money from the United States Postal Service, UPS, and Citizens Bank.
Zumar Dubose was sentenced on Friday, March 15, 2024, to 125 months’ imprisonment, five years of supervised release, and restitution of $281,223.
Abdush Dubose was sentenced on Thursday, March 14, 2024, to 57 months’ imprisonment, three years of supervised release, and restitution of 281,223.
Their brother and codefendant Kariem Dubose, 42, of Philadelphia, PA, was sentenced on February 15, 2024, to 24 months’ imprisonment, three years of supervised release, and restitution of $47,813.09.
In May 2023, a federal jury convicted Zumar and Abdush Dubose on mail fraud, wire fraud, bank fraud, and money laundering conspiracy charges related to their fraud scheme, with Kariem Dubose convicted on mail fraud, wire fraud, and bank fraud charges.
Starting as early as October 2018, over the course of approximately 1.5 years, the defendants submitted over 1,200 fraudulent insured-parcel claims with the United States Postal Service and UPS and received almost $300,000 in ill-gotten gains. As part of the scheme, the Dubose brothers sent parcels to themselves containing items of no value, using insured U.S. Postal Service postage and UPS tracking labels. Their parcels often included worthless items like sand, cardboard, paper, and cheap plastic headphones. They then filed fraudulent claims with the U.S. Postal Service and UPS, claiming that these parcels contained valuable items such brand name headphones, designer sunglasses and clothing, and other electronic items. They claimed that these valuable items were lost or damaged in transit and attached sham proofs of value.
The defendants used numerous emails, addresses, postboxes, bank accounts and bank cards, fake individual names, and fictitious corporations, including “Urmajesty Banktruckfit Solutions,” “Miworld Three Incorporated,” and “4 Entertainment Corporation,” which were incorporated in the State of New Jersey, and “Seeds of Beauty Incorporated,” which was incorporated in the State of Florida. The U.S. Postal Service and UPS then issued claim checks to cover the defendants’ alleged losses, and the defendants deposited those checks into Citizens Bank accounts opened in the names of their fake companies. The defendants made these deposits through ATMs in Philadelphia, Pennsylvania, and elsewhere.
When the U.S. Postal Service and UPS refused to issue or deliver some of the fraudulently obtained claim checks, and when Citizens Bank placed a hold on a bank account that was used to deposit the fraud proceeds, the Dubose brothers were undeterred. Using fake names, the brothers repeatedly sought recoveries from the U.S. Postal Service and UPS. They even filed lawsuits against UPS in various counties in New Jersey, using fake plaintiff names and falsely claiming that UPS did not pay them funds that they were owed. The defendants also filed lawsuits against Citizens Bank, again using false identities, in an effort to obtain the funds from their fraud scheme.
“The Dubose brothers made their fraud a family affair,” said U.S. Attorney Romero. “They took advantage of the U.S. Postal Service and UPS policies intended to make customers with legitimate losses whole, collecting hundreds of thousands of dollars they weren’t entitled to in the process. We and our partners are committed to shutting down flagrant fraud schemes like this and holding the perpetrators accountable.”
“I want to thank the United States Attorney’s Office for the work and support they put into in convicting and sentencing the Dubose brothers,” said Christopher Nielsen, the Inspector in Charge of the Philadelphia Division of the U.S. Postal Inspection Service. “The two brothers each received significant sentences as a result of their efforts to steal from the United States Postal Service and the United Parcel Service. These two individuals defrauded the Postal Service’s shipping insurance service by claiming shipping losses they never incurred. Together with our partners at the Postal Service’s Office of Inspector General, Postal Inspectors unraveled an elaborate scheme that resulted in almost $300,000 in losses to the Postal Service and UPS.”
“The USPS OIG will continue to work with our law enforcement partners to vigorously investigate these indemnity fraud cases. Hopefully the sentences handed down will be a deterrent to those who might attempt to defraud the USPS by filing false claims,” said Jeffrey Krafels, Executive Special Agent in Charge, USPS OIG Mid-Atlantic Area Field Office.
The case was investigated by the United States Postal Service Office of the Inspector General and the United States Postal Inspection Service and prosecuted by Assistant United States Attorneys Louis D. Lappen and J. Jeanette Kang. UPS and Citizens Bank provided crucial cooperation in the investigation.
U.S. Attorney’s Office and FBI Seeking to Identify Potential Victims in Connection with Online Child Exploitation CaseRead the Press Release
PHILADELPHIA - United States Attorney Jacqueline C. Romero and FBI Philadelphia Special Agent in Charge Wayne A. Jacobs announced that their offices are seeking to identify potential victims of an online child exploitation scheme, which originated in Los Angeles, California, and is believed to have victimized minor females in Pennsylvania, North Carolina, and elsewhere, starting as early as 2014.
The defendant in this investigation, John Douglas Burch, a resident of the Santa Monica, California area, has been charged by federal indictment in the Eastern District of Pennsylvania with traveling to engage in illicit sexual conduct and enticement of a minor to engage in sexually explicit conduct and prostitution.
Between 2014 and 2024, the defendant was active on numerous online applications, including KIK, Omegle, Snapchat, Telegram, Facebook, Instagram, Twitter, Reddit, Discord, Seeking Arrangements, and Fetlife, and may be known by the following usernames: “Burch”; “Mstr_trainer”; “Just 9x6.5a”; “Notyourfitguru”; “@TheBurch9567”; “NOTYOURFITGURU”; “@food_is_not_enemy”; “@notyourfitguru2”; “@not_your_fit_guru_original”; “@backup_notyourfitguru”.
If you, your family member, or anyone that you know has had contact with this individual or any of the usernames above and would like to report a crime, please contact the FBI via email at [email protected] or complete this online questionnaire.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
For additional resources and information, please visit:
- DOJ Office for Victims of Crime - Help for Victims
- National Safe Place Network
- National Child Traumatic Stress Network
- National Suicide Prevention Lifeline | 800-273-8255
- Rape, Abuse & Incest National Network (RAINN)
- National Center for Missing & Exploited Children
Rare, Wrongfully Obtained Manuscript Returned to Peruvian GovernmentRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero and FBI Philadelphia Special Agent in Charge Wayne A. Jacobs announced that a rare sixteenth-century manuscript was repatriated to the Peruvian government at a ceremony today presided over by U.S. Secretary of State Antony J. Blinken. The ceremony took place at the U.S. Department of State in Washington, D.C., with the Philadelphia case team in attendance.
On behalf of the Republic of Peru, Foreign Affairs Minister Javier González-Olaechea accepted the manuscript from the FBI. It will now be returned to the Archivo General de la Nación del Perú, the Peruvian national archives.
This six-page document, dated June 28, 1599, is a contract for the formation of the first theatrical company in the Americas in Lima, Peru. It had been in the collection of the Rosenbach Museum & Library (“the Rosenbach”) for almost a century, when it was voluntarily transferred by the Rosenbach to the custody of the FBI in November 2023.
In 2017, at the request of the Republic of Peru and in coordination with the Bureau of Educational and Cultural Affairs of the United States Department of State, the FBI Art Crime Team and the United States Attorney’s Office began an investigation into whether these manuscript pages in the Rosenbach collection had been wrongfully removed from a sixteenth-century bound volume in the Peruvian national archives. The Rosenbach cooperated fully in this investigation and concluded that the manuscript, which had been purchased in the 1920s by its founder, Dr. A.S.W. Rosenbach, had been removed from the bound volume in the archives at some time prior to Dr. Rosenbach’s purchase.
“It’s been an honor for our office to assist in the return of this centuries-old manuscript to the people of Peru,” said U.S. Attorney Romero. “The document represents a unique part of Peru’s history, and its repatriation reflects the Department of Justice’s ongoing commitment to protecting cultural heritage, not just in our own country, but around the world.”
“We are incredibly grateful to stand alongside our partners, both national and international, to return cultural property to its rightful home,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The Bureau, through the diligent work of our Art Crime Team, is committed to preserving cultural heritage and returning them to the communities to which they belong.”
The United States Attorney’s Office and the FBI thank the Peruvian government for their partnership, and acknowledge the cooperation and assistance of the Rosenbach that led to today’s repatriation.
This case was investigated by the FBI Art Crime Team and was handled by Assistant United States Attorney K.T. Newton.
Philadelphia Man Sentenced to More Than 10 Years in Prison in Connection with Two Violent CarjackingsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Dashawn Pringle, 27, of Philadelphia, Pennsylvania, was sentenced to 125 months’ imprisonment, three years of supervised release, a $300 special assessment, and $1,250 in restitution by United States District Court Senior Judge Timothy J. Savage for his role in two carjackings in the city.
On the afternoon of April 23, 2022, Victim #1 was operating his 2021 Honda Pilot near the 5100 block of Race Street. The victim temporarily pulled over to the side of the road, and Pringle and another male suddenly got in. When Victim #1 attempted to run from the scene, the two caught up to him, punched and kicked him, then stole his wallet, car keys, and vehicle.
In the early morning hours of May 1, 2022, Victim #2, a ride-share driver, had just made a drop-off on the 300 block of South Camac Street when the previously carjacked Honda Pilot pulled behind his vehicle and hit the back bumper. Seeing no damage, Victim #2 waved to the driver of the Pilot, later identified as Pringle, and departed the area. After the Honda Pilot followed him and the driver appeared to flag him down, Victim #2 pulled over on the 1200 block of Lombard Street and walked over to the driver’s side door of the Pilot, where Pringle promptly pointed a gun at his face and told him not to move or he’d be shot. A front-seat passenger took Victim #2’s keys and drove off in his 2018 Toyota Highlander.
On November 28, 2023, Pringle pleaded guilty to two counts of carjacking and possession of ammunition by a felon.
“Carjackings are offenses that really undermine public confidence and quality of life,” said U.S. Attorney Romero. “People going about their daily business shouldn’t have to fear armed criminals like Dashawn Pringle preying on them out of the blue, physically assaulting them, sticking guns in their face, and taking off in their car. We and our partners on the Carjacking Task Force are working every day to identify, prosecute, and take criminals like this off Philadelphia’s streets, with the public’s safety our number one priority.”
“Sentences like this are a product of the diligent work done by the FBI Philadelphia Violent Crimes Task force, who leverages the resources of our local law enforcement partners to remove violent offenders from our streets,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “This serves as a reminder that brazen acts of violence will be not tolerated in this city and reinforces our commitment to fostering a safe community for the citizens of Philadelphia.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the FBI Philadelphia Violent Crimes Task Force and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Martin E. Howley, Jr.
Physician Pays $95,000 to Resolve Allegations of Genetic Testing FraudRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Nishi Patel, MD, a physician who received his medical training at Drexel University, will pay $95,000 to resolve allegations that he violated the False Claims Act by ordering medically unnecessary genetic testing for Medicare beneficiaries.
Between August 2018 and May 2020, Dr. Patel referred more than 400 patients for medically unnecessary genetic tests that were paid for by Medicare. The United States alleges that Dr. Patel had no medical relationship with these patients, never examined these patients, and that the referrals were based on brief telemedicine consultations, and in some instances, no consultation. The genetic tests that Dr. Patel ordered often cost thousands of dollars per patient.
“Doctors who refer patients for medically unnecessary and costly services, such as genetic testing, deplete vital funds from Medicare and other government healthcare programs,” said U.S. Attorney Romero. “This office will continue to work with law enforcement partners, and our own internal analytics tools, to identify healthcare providers who increase costs through unnecessary procedures and will hold them accountable.”
“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General, Region III. “HHS-OIG and the U.S. Attorney’s Office will continue to evaluate and pursue allegations of medically unnecessary services.”
This matter was handled by Assistant U.S. Attorney Deborah W. Frey and Auditor Dawn Wiggins.
The government’s pursuit of this matter illustrates its emphasis on combatting health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
Philadelphia Man Indicted for Firearms Possession and Narcotics TraffickingRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Norman Copper, 32, of Philadelphia, Pennsylvania, was arrested and charged by indictment with multiple firearms and narcotics offenses related to his possession and trafficking of those items. Specifically, the defendant is charged with one count of possession with intent to distribute methamphetamine, one count of possession of firearms in furtherance of drug trafficking, and one count of possession of firearms by a felon.
The indictment alleges that Copper was found in possession of methamphetamine with the intent to distribute it on January 24, 2024, in King of Prussia, Montgomery County, Pennsylvania. The indictment further alleges that on January 24, 2024, the defendant was found to be in possession of three semi-automatic handguns and one AK-style semi-automatic rifle. Finally, the indictment alleges that the defendant had been previously convicted of a felony before he possessed each of these firearms.
If convicted, the defendant faces a maximum possible sentence of life imprisonment.
The case was investigated by the Upper Merion Township Police Department, the Montgomery County Detective Bureau, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Lindsey T. Mills.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Generic Pharmaceuticals Manufacturer Pleads Guilty, Agrees to $1.5 Million Criminal Penalty for Distributing Adulterated Drugs and $2 Million to Resolve Civil Liability under the False Claims ActRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that KVK Research Inc., a generic drug manufacturer in Bucks County, Pennsylvania, pleaded guilty today to criminal charges that it introduced adulterated drugs into interstate commerce.
A criminal information filed in federal court in Philadelphia charged KVK Research and its corporate affiliate, KVK Tech Inc., with two misdemeanor counts of introducing adulterated drugs into interstate commerce in violation of the Federal Food, Drug and Cosmetic Act (FDCA). Pursuant to a plea agreement, KVK Research pleaded guilty to the information and agreed to a proposed fine and forfeiture amount of $1.5 million.
KVK Tech agreed to a three-year deferred prosecution agreement (DPA) that will allow the company to avoid conviction on the charges in the information if it complies with the terms of the agreement, which include implementation of a compliance program designed to prevent and detect violations of federal regulations regarding current good manufacturing processes. The DPA also requires KVK Tech to engage an independent compliance monitor to evaluate the company’s corporate compliance program to address and reduce the risk of future violations.
U.S. District Judge Harvey Bartle III presided over the KVK Research plea hearing.
“Consumers in this District expect that manufacturers will adhere to FDA regulations,” said U.S. Attorney Romero. “When adulterated drugs are introduced into interstate commerce, that conduct has the potential to jeopardize patient safety. This case exemplifies my office’s commitment to holding manufacturers responsible for their crimes, as well as refocusing efforts on the company’s compliance to prevent future illegal conduct. In this case, the joint efforts between the office’s criminal and civil divisions to hold defendants accountable also returned money to those federal agencies affected by the defendants’ conduct.”
“The FDA’s requirements for manufacturing generic drugs are designed to ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing adulterated drugs to U.S. consumers will not be tolerated,” said Special Agent in Charge George Scavdis of the FDA Office of Criminal Investigations, Metro Washington Field Office. “We will continue to investigate and protect the public health of the nation.”
As part of the plea agreement and the DPA, the companies admitted that between January 2011 and October 2013, KVK Tech introduced into interstate commerce at least 62 batches of adulterated hydroxyzine tablets. The tablets were manufactured with an active pharmaceutical ingredient (API) made at a foreign facility. KVK Tech failed to notify FDA or seek FDA authorization to use that facility as a source of API for its hydroxyzine products. The companies also admitted that between Feb. 27, 2019, and April 16, 2019, KVK Tech manufactured prescription drugs while failing to exercise appropriate controls over computer and related systems as required by current good manufacturing practices regulations. Under federal law, such drugs are deemed to be adulterated.
Additionally, KVK Tech agreed to pay $2 million to resolve its civil liability under the False Claims Act arising from the company’s failure to exercise appropriate controls as required by current good manufacturing practice regulations, which caused KVK Tech to introduce into interstate commerce drugs deemed to be adulterated. During the Feb. 27, 2019, through April 16, 2019, time period, KVK Tech sold the adulterated pharmaceuticals, which resulted in alleged false claims submitted to the TRICARE program, Federal Employees Health Benefits Program (FEHBP), Veterans Administration (VA) and Department of Labor, Office of Workers Compensation Programs (DOL-OWCP), in violation of the False Claims Act.
“Protecting the welfare of our nation’s military members and their families is a priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” said Acting Special Agent in Charge Brian J. Solecki of the DCIS Northeast Field Office. “The introduction of adulterated pharmaceuticals into the TRICARE system endangers the lives of American service members and threatens our military readiness. The DCIS is committed to working with the Justice Department and our law enforcement partners to ensure that companies who engage in fraudulent activity, at the expense of the U.S. military, are investigated and prosecuted.”
“We expect manufacturers to comply with all federal laws and regulations when they are serving federal health care recipients,” said Deputy Assistant Inspector General for Investigations Conrad J. Quarles of the Office of Personnel Management Office of the Inspector General. “We applaud our investigative staff, and our law enforcement partners for their hard work protecting FEHBP enrollees and their families.”
FDA’s Office of Criminal Investigations investigated the case.
Assistant Director Ross S. Goldstein and Trial Attorney Alisha Crovetto of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys M. Beth Leahy and Patrick Murray for the Eastern District of Pennsylvania are prosecuting the case. Deputy Chief Charlene Keller Fullmer, Assistant U.S. Attorney Anthony D. Scicchitano and Auditor Dawn Wiggins for the Eastern District of Pennsylvania handled the civil case.
Except to the extent that the defendants’ admissions are part of its criminal resolution, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Philadelphia Man Sentenced to Prison for Evading TSA Security at Philadelphia International AirportRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Hugh James, 52, of Philadelphia, Pennsylvania, was sentenced to six months’ imprisonment, two years’ supervised release, a fine of $1,000, and a mandatory special assessment of $200 for attempting to board an international flight with undeclared currency that had not passed through airport security. United States District Judge Paul S. Diamond also ordered James to forfeit the sum of $62,000.
On October 9, 2020, James attempted to board a flight from Philadelphia International Airport to Montego Bay, Jamaica. When questioned by U.S. Customs and Border Protection officers during boarding, James initially denied having cash in his carry-on luggage. However, a search of his luggage revealed $62,000 in undeclared cash, including $42,000 in $100 bills inside sealed toothpaste boxes. Subsequent investigation revealed that James, an employee with access to the secure area of the airport, arranged to have the cash smuggled around Transportation Security Administration screening. On November 16, 2023, James pleaded guilty to one count of evading airport security and one count of failure to declare currency.
The case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorney Patrick Brown.
Par Funding Principals Charged in a RICO Indictment in Addition to Pending Charges of Securities Fraud, Extortion, Tax Crimes, Perjury, and ObstructionRead the Press Release
PHILADELPHIA – A second superseding indictment was filed yesterday charging a violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) by three principals of Complete Business Solutions Group, Inc. d/b/a Par Funding (“Par Funding”) and also charging various other crimes included in a previous superseding indictment, including securities fraud, extortionate collection of credit, tax crimes, perjury, obstruction of justice, witness retaliation, and witness tampering, announced United States Attorney Jacqueline C. Romero. These principals are Joseph LaForte, 52, Joseph Cole Barleta (“Joe Cole”), 39, and James LaForte, 46.
A separate indictment was filed charging Joseph LaForte, and his wife, Lisa McElhone, 43, with tax evasion, a conspiracy to avoid paying taxes, and a scheme to avoid paying approximately $1.6 million in income taxes due to the State of Pennsylvania by fraudulently claiming that their residence was Florida, when in fact they resided in Pennsylvania.
According to the second superseding indictment, codefendants Joseph LaForte, Joe Cole, and James LaForte, and others, were part of an association-in-fact RICO enterprise that conspired to commit a number of predicate crimes, including crimes related to the fleecing of Par Funding’s many investors and the extortionate collection of credit from Par Funding’s many merchant-customers. The indictment alleges that when the defendants were sued civilly by the SEC in July 2020, which resulted in a receivership taking over control of Par Funding, the enterprise took various illegal steps to attempt to regain control of Par Funding and to “defeat” the government, including through acts of obstruction of justice, witness tampering, and retaliation. The enterprise was structured with Joe LaForte as its leader and final decisionmaker, and it operated through various family members and close associates.
The indictment alleges that the principal purposes of the LaForte Enterprise were as follows:
- to generate money for its leadership, members, and associates through the commission of various criminal acts, such as securities fraud, wire fraud, the extortionate collection of debt, obstruction of justice, and retaliation;
- to conceal from investors, auditors, the government, and law enforcement that its members were self-dealing and enriching themselves to the detriment of Par Funding’s investors;
- to conceal Joseph LaForte’s identity, criminal history, and role as the leader of the enterprise and the functional Chief Executive Officer of Par Funding from Par Funding’s investors, customers, and auditors, and from the government and law enforcement, including through misrepresentations, false statements, and other means;
- to use extortionate means, including threats of violence, to collect money owed to Par Funding by its merchant-customers;
- to maintain control over Par Funding after Par Funding was put under the control of a court-appointed receiver, including by acts of obstruction and retaliation intended to frustrate and interfere with the receiver’s efforts to control Par Funding; and
- to protect the enterprise and its members from detection, apprehension, and prosecution by law enforcement.
It is alleged that as part of their fundraising efforts, these defendants and their conspirators caused false and misleading information to be conveyed to investors regarding various issues, including:
- Joseph LaForte’s true name, his role at Par Funding, and his criminal history;
- Par Funding’s underwriting process;
- the diversity of the company’s MCA portfolio;
- Par Funding’s default rate;
- Par Funding’s financial success and profitability;
- the company’s insurance; and
- the defendants’ self-dealing.
For instance, the indictment alleges that although Joseph LaForte operated Par Funding and referred to it as his business, he concealed this ownership and control by using his wife, Lisa McElhone, as his nominee. Joseph LaForte also used several aliases, such as “Joe Mack,” while working at the company. It is alleged that Joseph LaForte, Joe Cole, James LaForte, and their conspirators engaged in this deception to conceal Joseph LaForte’s true role as the person operating the company and his significant criminal history from investors.
The indictment also alleges that Joseph LaForte and James LaForte conspired with an individual named Renato “Gino” Gioe to participate in the extortionate collection of credit. It is alleged that during the course of Par Funding’s operations, these individuals made hostile, threatening, and intimidating communications to Par Funding’s customers in person and over the telephone in order to collect on delinquent MCAs. For example, the indictment alleges that Joseph LaForte threatened to “blow up” a delinquent customer’s home in May 2019 and asked another delinquent customer in August 2019 whether the customer had heard of “cement shoes.” In addition, the indictment alleges that in May 2018, James LaForte told one customer that he was a “soldier for the family” who had torched people’s cars and kicked people’s teeth in.
Furthermore, the indictment alleges that Joseph LaForte committed a variety of tax crimes. It is alleged that Joseph LaForte committed tax crimes by failing to report millions of dollars in cash kickbacks that he personally received from a Par Funding customer, and by regularly paying cash wages to Par Funding employees but not withholding taxes from these wages or reporting them to the IRS.
It is further alleged that Joseph LaForte and Joe Cole each committed perjury twice during depositions in federal lawsuits against Par Funding, making misrepresentations regarding various matters. For instance, the indictment alleges that Joseph LaForte lied under oath about his knowledge of his wife’s role at Par Funding, Joe Cole’s role at the company, and the company’s default rate. The indictment alleges that Joe Cole lied under oath about who was on Par Funding’s credit committee (which Joseph LaForte ran) and who ran Par Funding.
Finally, the indictment alleges that Joseph LaForte and James LaForte engaged in obstruction of justice, witness tampering, and retaliation. Specifically, it is alleged that in late February 2023, on the streets of Center City Philadelphia, James LaForte, with the assistance of and in coordination with Joseph LaForte, physically assaulted counsel for the receiver for Par Funding in a lawsuit brought by the U.S. Securities and Exchange Commission in the Southern District of Florida. Moreover, in connection with the same lawsuit, the indictment alleges that Joseph LaForte threatened to cause serious bodily injury to another individual in November 2022. Lastly, it is alleged that James LaForte made threats of violence to multiple parties in early 2023, in an effort to interfere with the SEC lawsuit, a federal grand jury investigation, and an anticipated federal prosecution, as well as to retaliate against these parties.
If convicted of all counts charged against them, the defendants are facing decades or more of imprisonment, and they also face full restitution, a fine, and a period of supervised release and/or probation.
In a separate indictment, it is alleged that Joseph LaForte and Lisa McElhone committed several tax crimes. For instance, it is alleged that the married couple defrauded the Commonwealth of Pennsylvania out of more than approximately $1.6 million of state taxes by falsely claiming to be residents of Florida, even though they worked, lived, and spent more than 300 days per year in Pennsylvania. Furthermore, the indictment alleges that Joseph LaForte and Lisa McElhone worked together to evade the payment of over half a million dollars of employment taxes that had been imposed on Joseph LaForte in connection with companies that he had operated in the mid-2000s.
An indictment charging Complete Business Solutions Group, Inc., doing business as Par Funding, with wire fraud, securities fraud, and conspiracy, was also filed.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, the Federal Deposit Insurance Corporation-Office of Inspector General, and Pennsylvania State Police and is being prosecuted by Assistant United States Attorneys Patrick J. Murray, Alexandra Lastowski, and Matthew Newcomer. The SEC in Florida investigated and litigated the civil securities fraud charges, which formed the basis of a portion of the criminal prosecution.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Former Local 98 Employees Sentenced for Illegal Use of Union AssetsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Michael Neill, 57, Marita Crawford, 54, and Niko Rodriguez, 32, all of Philadelphia, Pennsylvania, were sentenced this week by United States District Court Judge Jeffrey Schmehl. The defendants, all former employees of Local 98 of the International Brotherhood of Electrical Workers (“Local 98”), had previously pleaded guilty to stealing Local 98 funds for their personal use.
Michael Neill had served as the Training Director of Local 98’s Apprentice Training Fund since 2008. In December 2022, he pleaded guilty to four counts of embezzlement of labor union assets, one count of theft from a union employee benefit plan, and one count of making and subscribing to a false federal income tax return. As part of his guilty plea, Neill admitted having Local 98 and the Apprentice Training Fund pay for construction and maintenance work at his home, at Doc’s Union Pub, of which he was a part owner, and other personal properties by causing the submission of false invoices from May 2013 through December 2015.
Neill was sentenced to 13 months in prison, three years of supervised release, a fine of $10,000, and a mandatory special assessment of $600. Neill was ordered to pay restitution of $92,733.67 and to forfeit the sum of $25,259.29.
Marita Crawford had served as Local 98’s Political Director since November 2011. In December 2022, she pleaded guilty to four counts of wire fraud, which involved using her Local 98 credit card to pay for personal expenses for the benefit of herself and others, and, for some of the illegal expenditures, submitting false business-related explanations of the expenses to the union to disguise the illegal nature of the transactions. Crawford also admitted illegally using money from a political action committee (PAC) called “New Gen1,” funded primarily by contributions from Local 98’s committee on political education (“COPE”) and by the IBEW’s similar fund in Washington, D.C., for personal purchases for herself and others.
Crawford was sentenced to 15 days in prison followed by three months of home confinement, three years of supervised release, a fine of $2,000 and a mandatory special assessment of $400. She was ordered to pay restitution of $11,903 and to forfeit the sum of $2,777.63.
Niko Rodriguez was employed by Local 98’s Apprentice Training Fund and by Local 98 since 2011, primarily serving as a driver and personal assistant to Local 98’s Business Manager, codefendant John Dougherty. In December 2022, he pleaded guilty to six counts of embezzlement of labor union assets. As part of his guilty plea, Rodriguez admitted using Local 98 credit cards to purchase personal goods for himself and Dougherty.
Rodriguez was sentenced to three years’ probation, 80 hours of community service, a fine of $5,000, and a mandatory special assessment of $600. He was ordered to pay restitution of $13,491 and to forfeit the sum of $1,079.55.
“In using Local 98 funds to pay for personal expenses, these defendants broke the law, and they stole from the union’s rank and file,” said U.S. Attorney Romero. “Every one of those hardworking members needs to be able to trust that the dues they dutifully pay are in fact being used for the union’s benefit, as intended. When that doesn’t happen, when money is unlawfully misdirected, we and our partners won’t hesitate to step in and hold those responsible to account.”
“Investigating public corruption is a priority of the FBI and this includes ensuring the integrity of labor organizations and protecting the workers who trust them.” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “These individuals betrayed the electrical union’s members, those who rely on them to work with their best interest in mind, not out of greed. The FBI and our partners will continue to investigate and hold accountable those that pocket organizational funds for personal profit.”
“IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation,” said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. “We, along with our law enforcement partners and the Department of Justice, will continue to aggressively investigate individuals who engage in money laundering, tax fraud, or other types of white-collar crimes.”
“Neill’s sentencing sends an important message to all those entrusted with protecting benefit plan assets. Regardless of title or position, the U.S. Department of Labor will hold fiduciaries to the highest standards of accountability to protect the employee benefits of America’s workers,” said U.S. Department of Labor’s Employee Benefits Security Administration Regional Director Cristina O’Brien in Philadelphia.
“Most union officials and employees do their work with great care, but union employees Michael Neill, Marita Crawford and Niko Rodriguez betrayed the trust and confidence placed in them by members of IBEW Local 98,” said U.S. Department of Labor Office of Labor-Management Standards Acting District Director Nicole Spallino in Philadelphia. “We remain committed to working with our law enforcement partners to identify criminal violations and pursue legal action when individuals unlawfully exploit their union positions at the expense of the union and its members.”
Sentencing hearings for codefendants Brian Fiocca, who pleaded guilty in December 2022, as well as codefendants Brian Burrows and John Dougherty, who were convicted at trial in December 2023, are scheduled for March, April, and May 2024, respectively.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Labor Office of Labor Management Standards, the U.S. Department of Labor Office of Inspector General, and the Pennsylvania State Police, with assistance from the Pennsylvania Attorney General’s Office, and is being prosecuted by Assistant United States Attorneys Frank Costello, Bea Witzleben, Richard Barrett, Jason Grenell, and Anthony Carissimi.
City Man Convicted of Drug, Gun Offenses for Role in Large-Scale Drug Trafficking Organization Operating in Port Richmond Section of PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Phillip Gillard, 46, of Philadelphia, Pennsylvania, was convicted at trial on February 16, 2024, of federal drug trafficking and firearm offenses.
On July 18, 2023, a grand jury in the Eastern District of Pennsylvania returned a 54-count superseding indictment charging Gillard and eight co-defendants with their participation in a large-scale drug trafficking organization operating in the Port Richmond section of Philadelphia, in the immediate vicinity of the Memphis Street Academy, a charter school located at 2950 Memphis Street.
The charges in the indictment arose from the Federal Bureau of Investigation’s two-year investigation into the Gillard drug trafficking organization, which supplied other drug traffickers with wholesale quantities of methamphetamine, phencyclidine (“PCP”), fentanyl, and other narcotics.
Throughout the course of the investigation, law enforcement agents conducted surveillance and undercover sting operations during which drugs were purchased from the defendants. Gillard and his co-defendants maintained three separate properties in connection with their drug trafficking organization, all of which were less than 1,000 feet away from the Memphis Street Academy.
In total, the FBI confiscated over 20 pounds of pure methamphetamine, three gallons of PCP, one and a half kilograms of cocaine, 900 grams of crack cocaine, 400 grams of fentanyl, and 11 firearms.
Gillard now faces a maximum sentence of life in prison.
Co-defendants Diane Gillard, Raphael Sanchez, Sharif Jackson, Amin Whitehead, Cesar Maldonado, and Terrence Maxwell previously pleaded guilty to similar charges and also face maximum sentences of life in prison. Co-defendants Melvin Dreher and Arron Preno previously pleaded guilty and face a maximum sentence of 20 years in prison.
The case was investigated by the FBI, Philadelphia Police Department, and Homeland Security Investigations, with extraordinary cooperation from the Memphis Street Academy, and is being prosecuted by Assistant United States Attorneys Everett Witherell and Robert W. Schopf.
North Carolina Man Sentenced to 19 Years in Prison for Kidnapping a Young Woman in Center City Philadelphia, Attempting to Kidnap AnotherRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jacob Montague, 38, of Wilson, North Carolina, was sentenced to 19 years’ imprisonment by United States District Judge Joel H. Slomsky for attempting to kidnap a young woman in Center City Philadelphia in November of 2020, and then kidnapping another young woman the following day.
On November 1, 2020, at approximately 11:00 p.m., the defendant approached a young woman in Center City, brandished a knife, and ordered his victim to come with him. The victim responded by calling 911, and the defendant proceeded to retreat to his vehicle and drive away.
The next day, Montague returned to Center City. At around 5:30 p.m., he snuck up behind a young woman walking her dog near the Schuylkill River Park. The defendant rushed up to his victim, put a knife to her throat, and dragged her into his vehicle. Fortunately, nearby civilians intervened before the defendant could drive away from the scene. After a physical struggle, the civilians freed the victim from the defendant’s vehicle, and police arrived and arrested the defendant. The victim was injured during the attack and required multiple stitches following the kidnapping.
Montague pleaded guilty to the attempted kidnapping and kidnapping on April 10, 2023.
“Anyone who tries to snatch a stranger off the street isn’t fit to walk those streets with the rest of us,” said U.S. Attorney Romero. “Jacob Montague did so at knifepoint — not just once, but twice in two days. He’s a clear threat to public safety, and for the protection of everyone in Philadelphia and beyond, Mr. Montague needs to be behind bars. Today’s sentence ensures he’ll be there for a very long time.”
“Mr. Montague used a weapon and attempted to forcibly kidnap strangers off the street," said Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Division. “The sentence handed out today demonstrates that brazen acts such as these are not tolerated in our city. The FBI thanks our partners, the Philadelphia Police Department and Pennsylvania State Police, for their invaluable assistance in removing violent criminals like Mr. Montague from the communities we serve.”
“The sentencing of Jacob Montague to 19 years in prison sends a clear message that predatory behavior like this will not be tolerated in Philadelphia,” said Philadelphia Police Commissioner Kevin J. Bethel. “Montague's attempted kidnapping and subsequent kidnapping were terrifying acts of violence that left lasting physical and emotional scars on his victims. This case also highlights the bravery of the bystanders who intervened and risked their safety to free the victim and help apprehend the suspect. Their actions prevented further harm and demonstrate the power of community in keeping our streets safe. This sentence also reflects the tireless work of the FBI and the Philadelphia Police Department in investigating these crimes and securing justice. While no sentence can fully undo the harm inflicted, this outcome should serve as a deterrent to anyone considering similar acts. The PPD remains committed to working with all our partners to ensure the safety and well-being of everyone who lives, works, or visits Philadelphia.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and prosecuted by Assistant United States Attorneys Priya DeSouza and Michael Miller.
Collegeville Man Sentenced to 97 Months in Prison for Scheme to Sell Fraudulent Canine Cancer Drugs to Pet OwnersRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jonathan Nyce, 73, of Collegeville, Pennsylvania, was sentenced today to 97 months in prison, three years of supervised release, and a $500 special assessment for carrying out a years-long scheme to defraud pet owners of money by falsely claiming to sell drugs that could cure canine cancer. A federal jury convicted Nyce of wire fraud and the interstate shipment of misbranded animal drugs in December 2022.
In perpetrating the scheme, Nyce created several companies, including “Canine Care,” “ACGT,” and “CAGT,” through which he purported to develop drugs intended to treat cancer in dogs. Beginning in 2012, using various websites for these companies, the defendant marketed these “cancer-curing” medications to desperate pet owners, using the drug names “Tumexal” and “Naturasone.” The websites made numerous false and fraudulent claims regarding the safety and efficacy of these supposed drugs, including that “Tumexal is effective against a wide variety of cancers,” and, “[i]n fact, Tumexal will almost always restore a cancer-stricken dog’s appetite, spirit and energy!” In reality, these drugs were nothing more than a collection of bulk ingredients from various sources, which the defendant blended together himself at a facility on Arcola Road in Collegeville.
Further, through email and telephone conversations, Nyce induced the owners of terminally ill dogs to pay him hundreds or thousands of dollars for these drugs by touting the effectiveness of his products in treating a host of canine cancers. He also told prospective customers that their pets could become part of clinical trials, but in order to do so, they had to pay him large sums of money. Evidence presented at trial showed the defendant sold nearly $1,000,000 worth of drugs to approximately 900 different victims. The defendant’s marketing, sale, and shipment of these drugs violated the Food and Drug Administration’s Food, Drug, and Cosmetic Act because the drugs were not approved by the FDA. The defendant even falsely claimed in promotional materials that his company’s research was “funded in part by the U.S. Food and Drug Administration.”
“In shopping these worthless ‘drugs’ to desperate pet owners, Jonathan Nyce’s actions were both criminal and cruel,” said U.S. Attorney Romero. “He deliberately exploited people’s emotions, their love for their ailing dogs, purely for his own financial gain. Many people consider dogs members of their families, so they’re especially vulnerable to such schemes. For defrauding his victims and thumbing his nose at the FDA, justice demanded that Mr. Nyce be held accountable.”
“The FDA’s animal drug approval process ensures that our pets receive safe and effective products. Ignoring the FDA’s requirements and selling unapproved drugs to vulnerable U.S. consumers will not be tolerated,” said George A. Scavdis, Special Agent in Charge of the FDA Office of Criminal Investigations Metro Washington Field Office. “We will aggressively pursue and bring to justice those criminals who place profits above the health and safety of animal patients.”
The case was investigated by the Food and Drug Administration’s Office of Criminal Investigation with assistance from the Consumer Protection Branch of the Department of Justice and is being prosecuted by Assistant United States Attorney Christopher E. Parisi.
Justice Department Conducts Court-Authorized Disruption of Botnet Controlled by the Russian Federation’s Main Intelligence Directorate of the General Staff (GRU)Read the Press Release
Note: Following the publication of this press release, the FBI and international partners issued a joint multinational cybersecurity advisory on Russian cyber actors' use of compromised routers to facilitate cyber operations.
A January 2024 court-authorized operation has neutralized a network of hundreds of small office/home office (SOHO) routers that GRU Military Unit 26165, also known as APT 28, Sofacy Group, Forest Blizzard, Pawn Storm, Fancy Bear, and Sednit, used to conceal and otherwise enable a variety of crimes. These crimes included vast spearphishing and similar credential harvesting campaigns against targets of intelligence interest to the Russian government, such as U.S. and foreign governments and military, security, and corporate organizations. In recent months, allegations of Unit 26165 activity of this type has been the subject of a private sector cybersecurity advisory and a Ukrainian government warning.
This botnet was distinct from prior GRU and Russian Federal Security Service (FSB) malware networks disrupted by the Department in that the GRU did not create it from scratch. Instead, the GRU relied on the “Moobot” malware, which is associated with a known criminal group. Non-GRU cybercriminals installed the Moobot malware on Ubiquiti Edge OS routers that still used publicly known default administrator passwords. GRU hackers then used the Moobot malware to install their own bespoke scripts and files that repurposed the botnet, turning it into a global cyber espionage platform.
The Department’s court-authorized operation leveraged the Moobot malware to copy and delete stolen and malicious data and files from compromised routers. Additionally, in order to neutralize the GRU’s access to the routers until victims can mitigate the compromise and reassert full control, the operation reversibly modified the routers’ firewall rules to block remote management access to the devices, and during the course of the operation, enabled temporary collection of non-content routing information that would expose GRU attempts to thwart the operation.
“The Justice Department is accelerating our efforts to disrupt the Russian government’s cyber campaigns against the United States and our allies, including Ukraine,” said Attorney General Merrick B. Garland. “In this case, Russian intelligence services turned to criminal groups to help them target home and office routers, but the Justice Department disabled their scheme. We will continue to disrupt and dismantle the Russian government’s malicious cyber tools that endanger the security of the United States and our allies.”
“For the second time in two months, we’ve disrupted state-sponsored hackers from launching cyber-attacks behind the cover of compromised U.S. routers,” said Deputy Attorney General Lisa Monaco. “We will continue to leverage all of our legal authorities to prevent harm and protect the public — whether the hackers are from Russia, China, or another global threat.”
“Russia’s GRU continues to maliciously target the United States through their botnet campaigns,” said FBI Director Christopher Wray. “The FBI utilized its technical capabilities to disrupt Russia’s access to hundreds of routers belonging to individuals in addition to small and home offices. This type of criminal behavior is simply unacceptable, and the FBI, in coordination with our federal and international partners, will not allow for any of Russia’s services to negatively impact the American people and our allies.”
“In this unique, two-for-one operation, the National Security Division and its partners disrupted a botnet used by both criminal and state-sponsored actors,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Notably, this represents the third time since Russia’s unjustified invasion of Ukraine that the Department has stripped the Russian intelligence services of a key tool used to further the Kremlin’s acts of aggression and other malicious activities. We will continue to use our legal authorities and cutting-edge techniques, and to draw on the strength of our partnerships, to protect the public and our allies from such threats.”
“This is yet another case of Russian military intelligence weaponizing common devices and technologies for that government’s malicious aims,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “As long as our nation-state adversaries continue to threaten U.S. national security in this way, we and our partners will use every tool available to disrupt their cyber thugs — whomever and wherever they are.”
“Operation Dying Ember was an international effort led by FBI Boston to remediate over a thousand compromised routers belonging to unsuspecting victims here in the United States, and around the world that were targeted by malicious, nation state actors in Russia to facilitate their strategic intelligence collection,” said Special Agent in Charge Jodi Cohen of the FBI Boston Field Office. “The FBI’s strong partnerships with the private sector were critical to identifying and addressing this threat which targeted our national security interests here and abroad. This operation should make it crystal clear to our adversaries that we will not allow anyone to exploit our technology and networks.”
As described in court documents, the government extensively tested the operation on the relevant Ubiquiti Edge OS routers. Other than stymieing the GRU’s ability to access to the routers, the operation did not impact the routers’ normal functionality or collect legitimate user content information. Additionally, the court-authorized steps to disconnect the routers from the Moobot network are temporary in nature; users can roll back the firewall rule changes by undertaking factory resets of their routers or by accessing their routers through their local network (e.g., via the routers’ web-based user interface). However, a factory reset that is not also accompanied by a change of the default administrator password will return the router to its default administrator credentials, leaving the router open to reinfection or similar compromises.
The FBI Philadelphia and Boston Field Offices and Cyber Division, U.S. Attorney’s Office for the Eastern District of Pennsylvania, and the National Security Division’s National Security Cyber Section led the disruption effort. The Criminal Division’s Computer Crime and Intellectual Property Section and Office of International Affairs, Shadowserver Foundation, Microsoft Threat Intelligence, and other partners provided valuable assistance.
The FBI is working with internet service providers to provide notice of the operation to owners and operators of SOHO routers covered by the court’s authorization. If you believe you have a compromised router, please visit the FBI’s Internet Crime Complaint Center.
To better protect themselves, the FBI advises all victims to conduct the following remediation steps:
- Perform a hardware factory reset to flush the file systems of malicious files;
- Upgrade to the latest firmware version;
- Change any default usernames and passwords; and
- Implement strategic firewall rules to prevent the unwanted exposure of remote management services.
The FBI strongly encourages router owners to avoid exposing their devices to the internet until they change the default passwords.
Monroe County Man Sentenced to 60 Months in Prison After Concealing Father’s Death, Disposing of His Remains to Steal Social Security and Pension BenefitsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Timothy Gritman, 56, of Brodheadsville, Pennsylvania, was sentenced today by United States District Judge Cynthia Rufe to 60 months’ incarceration and three years of supervised release for a fraud scheme in which he concealed his father’s death to steal Social Security Administration ("SSA") retirement benefits and New York State pension benefits totaling approximately $204,985. Gritman was also ordered to pay restitution of $83,188 to the SSA and $110,897 to the New York State and Local Retirement System. He had pleaded guilty to fourteen counts of wire fraud and one count of Social Security fraud on February 13, 2023.
Gritman’s father, Ralph, was 79 years old and in poor health when he was last seen alive by relatives at Gritman’s Pennsylvania residence in 2016. In the summer of 2017, Gritman relocated to Wyoming with his father. According to Medicare records, the father’s health benefits were used in September 2017 for an emergency visit to a Wyoming hospital, and then never utilized again.
Investigators believe Ralph Gritman died in or about October 2017, with Timothy Gritman concealing the death from family members and disposing of Ralph’s body in an unknown manner. As Ralph Gritman was never reported deceased, his SSA and pension benefits continued to be paid into a joint account with the defendant from approximately October 2017 to October 2022.
In that time, the defendant made many false statements to government officials to conceal his fraud and enable him to continue stealing government funds, even physically posing as his father numerous times, using makeup to look older.
To date, the defendant refuses to divulge the whereabouts of his father’s remains, which, despite numerous searches, have not been found.
“Timothy Gritman chose dollars and cents over a dignified death for his dad,” said U.S. Attorney Romero. “He had been living off of his father Ralph’s retirement benefits for years, even before his father’s passing — and after it, went to significant lengths to keep that money coming in. With today’s sentence, he’s finally being made to answer for his criminal greed.”
“For several years, Mr. Gritman intentionally concealed his father’s passing in a ploy to collect his pension and social security payments,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Today’s sentencing is a reminder that the FBI, alongside our partners, will continue our work to hold those to account who engage in these fraud schemes.”
“Timothy Gritman schemed to obtain the Social Security retirement benefits intended for his deceased father. His behavior is unacceptable, and this sentence holds him accountable for his criminal actions,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank our law enforcement partners and the New York State Comptroller’s Office for their efforts in investigating, and the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Megan Curran for prosecuting this case.”
“For over five years, Timothy Gritman orchestrated a sometimes elaborate scheme to steal his deceased father’s Social Security benefits,” said Christopher Nielsen, Postal Inspector in Charge of the Philadelphia Division of the Postal Inspection Service. “In doing so, he concealed from the government and his extended family that his father had passed away. Even at sentencing, Mr. Gritman refused to close the door for his family and investigators and identify the whereabouts of his father’s body. This man not only harmed the Social Security system, but he also brought pain upon his extended family. We are pleased to have assisted the United States Attorney’s Office, the Social Security Office of Inspector General, and the FBI in this investigation, and through our collective efforts, bring some closure to the Gritman family, and to protect the Social Security system.”
“Timothy Gritman shamelessly hid his own father’s death, going so far as to attempt to disguise himself as him in order to collect his pension and Social Security payments for more than four years,” said New York State Comptroller Thomas P. DiNapoli. “Thanks to the work of my investigative team and our partners in law enforcement, he has been held accountable. My office will continue to bring anyone who seeks to defraud the pension system to justice.”
The case was investigated by the Federal Bureau of Investigation, Social Security Administration - Office of the Inspector General, U.S. Postal Inspection Service, and the New York State Office of the Comptroller and is being prosecuted by Special Assistant United States Attorney Megan Curran.
Five Members of a Methamphetamine and Cocaine Distribution Ring Charged with Drug Trafficking OffensesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced the unsealing of a seven-count indictment charging five individuals with drug trafficking offenses. The indictment alleges that the defendants were members of a drug trafficking organization (DTO) that distributed methamphetamine and cocaine mailed to, and distributed throughout, the Eastern District of Pennsylvania, including in Reading, Quakertown, Bensalem, Plymouth Township, Coopersburg, and elsewhere.
Members of the DTO used addresses obtained through associates in the Eastern District of Pennsylvania to mail the drugs, and then had members of the organization pick up the packages for subsequent distribution to their dealers.
During the investigation, law enforcement seized forty firearms, over 100,000 rounds of ammunition, 60 pounds of methamphetamine, one kilogram of fentanyl, one kilogram of cocaine, 65 pounds of marijuana, fentanyl/heroin, 300 fentanyl pills, six pounds of mushrooms, and $15,000.00 in United States currency.
The individuals charged include Michael Sanchez, 32, of Los Angeles, California; Avrian Haywood Mack, 21, of Reading, Pennsylvania; David Matthew Yohn, 53, of Coopersburg, Pennsylvania; Aived Abel Garcia, 25, of Chula Vista, California; and Miguel Aliaga, 36, of Whitehall, Pennsylvania.
If convicted, the defendants face a maximum possible sentence of life imprisonment.
The case was investigated by Homeland Security Investigations (HSI) Philadelphia’s El Dorado Task Force, HSI Allentown, HSI Los Angeles, HSI San Diego, HSI LAX, Bucks County District Attorney’s Office Drug Strike Force, Quakertown Borough Police Department, Richland Township Police Department, Pennsylvania State Police, Liberty Mid-Atlantic High Intensity Drug Trafficking Area (HIDTA), Los Angeles Sheriff’s Department, Berks County Detectives, United States Postal Inspection Service, Pennsylvania Office of the Attorney General (PAOAG), Bensalem Police Department, Montgomery County Detectives, and the Orange County Probation Office and is being prosecuted by Assistant United States Attorney Lizmar Bosques and Special Assistant United States Attorney Tom Gannon.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Files Lawsuit Against Philadelphia Resident, Alleging Violations of FAA Regulations When Flying DronesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that the United States has filed a complaint in U.S. District Court against Michael DiCiurcio of Philadelphia, Pennsylvania. In its complaint, the United States alleges that DiCiurcio operated small unmanned aircraft systems (“sUAS”) — commonly known as drones — unlawfully and unsafely in the Philadelphia area between at least December 2019 to the present, in violation of Federal Aviation Administration (“FAA”) requirements.
The United States alleges that DiCiurcio operated flights at night, in close proximity to the William Penn Statue, PSFS Building, and the Liberty One Building. On one occasion, the sUAS almost struck a church steeple during flight. The United States alleges that, during certain flights, DiCiurcio improperly operated the sUAS inside of controlled airspace near the Philadelphia International Airport, over people and cars, and, in at least one instance, lost control of the sUAS, causing it to fly uncontrolled over Philadelphia.
The FAA warned DiCiurcio in writing and provided him with counseling and education regarding requirements for safe operations of a sUAS under the Federal Aviation Regulations. The United States alleges that DiCiurcio nonetheless has continued to operate sUASs illegally and in a careless or reckless manner that endangers others. The United States seeks substantial civil penalties and an injunction to prevent additional illegal conduct.
“Failing to adhere to the safety requirements for flying drones endangers people and property,” said U.S. Attorney Romero. “All drone operators have a responsibility to ensure that they observe all applicable regulations and guidance. Our office is committed to ensuring total compliance with the FAA regulations and we will vigorously enforce violations wherever we find them.”
“We work hard to educate people about safely flying their drones, and we don’t hesitate to take strong enforcement action when pilots deliberately flout the rules,” said Deputy FAA Administrator Katie Thomson.
The allegations regarding unsafe sUAS flights in violation of FAA regulations are described in detail in the complaint. The case is captioned United States of America v. Michael DiCiurcio, Case No. 24-cv-00612 (E.D. Pa.).
The case has been investigated by the FAA’s Flight Standards Division and the U.S. Department of Transportation Office of the Inspector General. The case is being handled by Assistant U.S. Attorney Viveca D. Parker.
All civil claims are allegations only. There has been no determination of civil liability.
Two Philadelphia Men Plead Guilty to 2022 Crime Spree, Admitting to Seven Armed Robberies and a Carjacking in 12 DaysRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Angel Fayez, 19, and Kevin Antun, a.k.a. Acquah Evans, 20, both of Philadelphia, Pennsylvania, pleaded guilty today to one count of carjacking, eight counts of Hobbs Act robbery, and one count of carrying and using a firearm during the commission of a crime of violence.
Fayez and Antun were charged by indictment in March 2023 with these offenses, in connection with a series of gunpoint robberies of businesses in the Kensington and the Lower Northeast sections of Philadelphia.
According to the indictment, the defendants committed one carjacking and robbed a variety of small businesses, stealing approximately $3,613 total between November 22, 2022, and December 3, 2022. The incidents detailed are as follows:
- On November 22, 2022, Fayez and Antun carjacked a woman at the Liberty gas station located at 3949 Kensington Avenue;
- On November 22, 2022, Fayez and Antun robbed the Dollar General located at 1240 E. Erie Avenue;
- On November 22, 2022, Fayez and Antun robbed the Popeyes located at 501 Adams Avenue;
- On November 28, 2022, Fayez and Antun robbed the Texas Chicken and Burger located at 3960 Kensington Avenue;
- On November 30, 2022, Fayez and Antun robbed the Wingstop located at 3855 Aramingo Avenue;
- On November 30, 2022, Fayez and Antun robbed the Wingstop located at 2118 Cottman Avenue;
- On November 30, 2022, Fayez and Antun robbed the Domino’s Pizza located at 6391 Oxford Avenue; and
- On December 3, 2022, Fayez and Antun robbed the Popeyes located at 3541 Aramingo Avenue.
“Fayez and Antun terrorized the community with their brazen gunpoint crimes, at times committing multiple armed robberies in the same day,” said U.S. Attorney Romero. “Taking repeat offenders like these off the street is a priority for my office and our law enforcement partners, as we work to crack down on violent crime in Philadelphia and keep the public safe.”
“During their vicious crime spree, Fayez and Antun showed a complete disregard for public safety after carjacking an innocent woman and threatening multiple store employees with firearms,” said Eric DeGree, Special Agent in Charge of ATF’s Philadelphia Field Office. “I want to thank the Philadelphia Police Department and the United States Attorney’s Office as we work to protect the people of our district.”
“The brazen carjacking that initiated this crime spree and the violence used throughout these robberies put our community members at a real risk,” said Philadelphia Police Commissioner Kevin Bethel. “I applaud the collaborative efforts of the Philadelphia Police Department, ATF, and U.S. Attorney’s Office that brought these individuals to justice. This case again demonstrates our commitment to tackling carjackings and gun violence that plague our city. We will continue to relentlessly pursue those who choose to terrorize our neighborhoods and ensure they face the full force of the law.”
After pleading guilty, Fayez is set to be sentenced on May 29, 2024, and Antun on May 30, 2024, before the Honorable Juan R. Sanchez.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Special Assistant United States Attorney David Osborne.
Philadelphia Man Charged with Making Antisemitic and Islamophobic ThreatsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Yaniv Gola, 50, of Philadelphia, Pennsylvania, was charged today by information on eight counts of interstate communication of threats.
The information alleges that between August 2, 2022 and November 5, 2023, Gola used a Voice over Internet Protocol service to mask his phone number and make telephone calls threatening to injure, rape and kill eight different victims. On one of these calls, Gola threatened, “You f***ing Jew, now I know where you are. I’m going to kill all you Jews … You all should be shoved back into ovens. I’m going down to [victim’s business location] to kill you.” On another call, Gola said to a victim, “I want to put a bullet in your head … You f***ing Muslims.” In the most recent call, Gola threatened a victim, “You’re Jewish, I’m from Hamas. You’re animals and pigs … If you don’t leave that place, we’re going to blow you up.”
If convicted, the defendant faces a maximum possible sentence of 40 years’ imprisonment, three years of supervised release, a $2,000,000 fine and an $800 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney J. Jeanette Kang. The FBI was assisted by the Philadelphia Police Department, the Media Borough Police Department, the Cinnaminson Township (NJ) Police Department, the Newtown Township (Delaware County) Police Department, and the Haddonfield (NJ) Police Department.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Reading Man Who Shot at FBI Agents Convicted at Trial of Three Counts of Attempted Murder of a Federal Law Enforcement OfficerRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Rafael Vega-Rodriguez, 41, of Reading, Pennsylvania, was convicted today at trial of three counts of attempted murder of a federal law enforcement officer, three counts of assault on a federal officer with a deadly weapon, and two related firearms charges, stemming from an incident during which he shot at and tried to kill three FBI Special Agents.
On March 1, 2020, FBI Special Agents were conducting surveillance in the area of Gordon Street in Reading, looking for the defendant, who was the subject of an active state arrest warrant for a parole violation. At approximately 11:45 p.m., the agents saw the defendant walking in the area of West Greenwich Street with a second individual. When the agents attempted to stop him, Vega-Rodriguez drew a handgun from under his sweatshirt and shot at them. He continued to shoot as he and the second individual fled from the scene.
After an intense manhunt, investigators discovered that Vega-Rodriguez had fled to Leola, Pennsylvania, approximately 30 miles southwest of Reading. He was arrested there by FBI Special Agents and Pennsylvania State Police Troopers in the early morning hours of March 3, 2020.
“Rafael Vega-Rodriguez was so determined not to be arrested and go back to prison that he immediately opened fire on approaching FBI agents,” said U.S. Attorney Romero. “It’s incredibly fortunate that none of the agents, or anyone else for that matter, was hit. When Vega-Rodriguez pulled the trigger that night, he sealed his own fate, and now faces spending the rest of his life behind bars.”
"Every day, FBI agents put themselves in harm's way to protect our communities," said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. "Let this verdict serve as a clear message that if you commit an act of violence against a federal agent, you will be prosecuted to the fullest extent of the law."
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Timothy M. Stengel, Assistant United States Attorney Everett Witherell, and former Assistant United States Attorney Mary Futcher.
Pennsylvania Courts to Pay $100,000 and Take Statewide Measures to Redress Alleged Discrimination Against People with Opioid Use DisorderRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that the Justice Department has secured an agreement with the Unified Judicial System of Pennsylvania (UJS) to resolve allegations that UJS courts violated the Americans with Disabilities Act (ADA) by preventing individuals under court supervision from taking lawfully prescribed medication to treat opioid use disorder (OUD).
Under the agreement, UJS courts will pay $100,000 to victims, and encourage all its component courts to adopt new policies and train personnel on the ADA’s anti-discrimination requirements regarding OUD and report on their compliance efforts.
“My office is dedicated to fighting the opioid epidemic with every tool that we have,” said U.S. Attorney Romero. “That includes enforcing the ADA to remove discriminatory barriers to treatment for OUD. All too often, people taking medication to treat their OUD are subjected to discrimination based on unfounded stigma associated with these medications. It is a violation of the ADA to deny someone access to programs and services simply because they are taking medication their doctors have prescribed to get and keep their OUD in remission. My office will hold entities that violate the ADA’s anti-discrimination protections accountable.”
“The battle against the opioid epidemic requires not only the vigorous prosecution of those who traffic in and profit from drugs like heroin and fentanyl, but also requires ensuring individuals with opioid use disorder can take their medically prescribed treatment,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “This agreement with the Commonwealth will help ensure that individuals participating in Pennsylvania’s courts who have opioid use disorder will be allowed to follow their providers’ course of treatment, which may include medication that dramatically reduces opioid overdose deaths. This office will enforce the ADA to protect all individuals with disabilities, and this includes our citizens in recovery from addiction.”
The settlement agreement resolves the department’s lawsuit against the UJS, Supreme Court of Pennsylvania and Blair, Jefferson, Lackawanna and Northumberland County Courts of Common Pleas. The department’s complaint, filed in 2022, alleged that UJS courts in multiple counties caused significant harm through the enforcement of their discriminatory administrative policies. The department further alleged that those affected by the UJS court policies were put to an agonizing choice: take their medication and face incarceration or termination from their treatment court program or forgo their medication and suffer painful withdrawal symptoms while risking relapse, overdose and death. As a result, they suffered significant harm. The complaint alleged that the named county courts and other UJS courts had likely harmed many other individuals with OUD through the enforcement of their discriminatory policies.
Under the settlement agreement, the UJS courts will compensate the victims identified in the complaint. They will train all Pennsylvania state court criminal judges and treatment court professionals on the ADA and OUD medication. Several of the named county courts will adopt a robust anti-discrimination policy related to OUD medication. The Administrative Office of Pennsylvania Courts will recommend and encourage all other county courts to adopt the same policy. Finally, the UJS courts will report on their efforts to comply with the agreement, including detailing any complaints about access to OUD medication submitted to any UJS courts during the agreement’s two-year term.
“People with opioid use disorder caught up in the criminal justice system should be supported in seeking treatments that can help them attain recovery,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Under this agreement, courts that categorically restricted the use of opioid treatment medication are required to allow people with opioid use disorder to take proven medications that can put them on a path toward recovery and rehabilitation. Ensuring that courts are employing science-driven and data-informed approaches to the opioid crisis is an important priority for the Civil Rights Division. We will continue to enforce our federal civil rights laws, including the ADA, to ensure that people with disabilities are protected from discrimination.”
The settlement agreement announced today advances the Justice Department’s efforts to combat discrimination against individuals with OUD and to remove discriminatory barriers to treatment. The department has issued public guidance and filed statements of interest on the ADA’s protections for those with OUD. It has entered into multiple settlements with jails and prisons to increase access to OUD medication, including recent agreements in Allegheny County, Pennsylvania; Eastern Kentucky and Massachusetts. It has undertaken enforcement efforts to combat discrimination against individuals with OUD in court supervision programs in Massachusetts. It has also entered numerous settlements to address discriminatory barriers to treatment for OUD outside of the criminal justice context, including barriers related to employment, professional licensing, social services and healthcare.
U.S. Attorney Romero and Deputy Civil Chief for Civil Rights Lauren DeBruicker handled this matter for the Eastern District of Pennsylvania, in collaboration with attorneys from the Disability Rights Section of the Justice Department’s Civil Rights Division and Middle District of Pennsylvania Assistant United States Attorney and Civil Rights Coordinator Michael J. Butler.
For more information about the Justice Department’s work to address discrimination against individuals with opioid use disorder, please visit https://www.ada.gov/topics/opioid-use-disorder/. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Members of the public may report possible civil rights violations at civilrights.justice.gov/report. Anyone in the Eastern District of Pennsylvania may also report civil rights violations to the U.S. Attorney’s Office for the Eastern District of Pennsylvania by calling 215-861-8555 or emailing [email protected].
Owner of Closed Substance Use Treatment Facility in Florida Sentenced to 26 Months in Prison for Conspiring to Defraud Health InsurersRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Terrence Livorsi, 69, of Glenside, Pennsylvania, has been sentenced to 26 months’ imprisonment and two years of supervised release, and ordered to pay $287,654.72 in restitution, a $10,000 fine, and $100 special assessment for conspiring to commit health care fraud, arising from his operation of an Employee Assistance Program (“EAP”). Livorsi used the EAP to funnel patients to addiction treatment at facilities and programs that he owned in Florida, in order to bill patients’ medical insurance for treatment, including treatment that was not medically necessary.
Livorsi offered his EAP services free of charge and marketed the services mainly to public sector labor unions in New Jersey. Livorsi and his EAP encouraged union officials and representatives to call when a union member was in distress or facing workplace discipline. Upon referral of a union member for EAP services, Livorsi and/or an employee of the EAP collected information from the person, including asking the prospective patient about his or her use of alcohol or drugs. Many prospective patients did not have substance use disorders but were nevertheless fraudulently referred to Recovery Institute of South Florida (“RISF”), a substance use treatment facility that Livorsi also owned and operated. Patients were pressured to fly to Florida immediately for treatment at RISF, allegedly to save their jobs. The people that Livorsi and his staff members referred to RISF were not told that Livorsi owned RISF or that he would benefit financially by billing their health insurance.
From at least January 2014 until RISF closed in April 2018, it was the business of Livorsi’s EAP to send patients to treatment at RISF. RISF depended on the EAP to refer patients for treatment and made money by billing insurers for those referred patients. The EAP, which did not charge anyone for its services, depended on RISF to finance its operations. As the sole owner of both RISF and the EAP, Livorsi controlled every aspect of their operations, including the finances and bank accounts of both organizations. Livorsi directly profited when RISF profited. Livorsi directed RISF to pay bonuses to his staff, including himself, for admissions to RISF that the employee had procured. Although he was not a licensed caregiver and was infrequently present at RISF, Livorsi exercised control over when patients could be discharged from RISF and would keep patients as long as possible to maximize the opportunities to bill insurance.
Livorsi was charged by an information filed April 11, 2023, and entered a plea of guilty on May 8, 2023.
“Terrence Livorsi’s scheme was to use an Employee Assistance Program he owned to funnel patients to a drug treatment facility that he also owned — whether they had substance abuse issues or not — keep them there as long as possible, and profit,” said U.S. Attorney Romero. “He gave no thought to these people’s wellbeing, or their lives and livelihoods, just the money he could bilk from their insurance plans. Health care fraud is an incredibly costly crime and a high priority for the Department of Justice. That’s why we and the FBI will continue to work together to hold fraudsters like Terrence Livorsi accountable.”
The case was investigated by the FBI Philadelphia Health Care Fraud Task Force, which includes agents from the Pennsylvania Attorney General's Office and the Philadelphia Police Department, and the Employee Benefit Security Administration of the United States Department of Labor, and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
Justice Department Secures Agreement with Pennsylvania Courts to Resolve Lawsuit Concerning Discrimination Against People with Opioid Use DisorderRead the Press Release
The Justice Department announced today that it has secured an agreement with the Unified Judicial System of Pennsylvania (UJS) to resolve allegations that UJS courts violated the Americans with Disabilities Act (ADA) by preventing individuals under court supervision from taking lawfully prescribed medication to treat opioid use disorder (OUD).
Under the agreement, UJS courts will pay $100,000 to victims, and encourage all its component courts to adopt new policies and train personnel on the ADA’s anti-discrimination requirements regarding OUD and report on their compliance efforts.
“People with opioid use disorder caught up in the criminal justice system should be supported in seeking treatments that can help them attain recovery,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Under this agreement, courts that categorically restricted the use of opioid treatment medication are required to allow people with opioid use disorder to take proven medications that can put them on a path toward recovery and rehabilitation. Ensuring that courts are employing science-driven and data-informed approaches to the opioid crisis is an important priority for the Civil Rights Division. We will continue to enforce our federal civil rights laws, including the ADA, to ensure that people with disabilities are protected from discrimination.”
“My office is dedicated to fighting the opioid epidemic with every tool that we have,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “That includes enforcing the ADA to remove discriminatory barriers to treatment for OUD. All too often, people taking medication to treat their OUD are subjected to discrimination based on unfounded stigma associated with these medications. It is a violation of the ADA to deny someone access to programs and services simply because they are taking medication their doctors have prescribed to get and keep their OUD in remission. My office will hold entities that violate the ADA’s anti-discrimination protections accountable.”
“The battle against the opioid epidemic requires not only the vigorous prosecution of those who traffic in and profit from drugs like heroin and fentanyl, but also requires ensuring individuals with opioid use disorder can take their medically prescribed treatment,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “This agreement with the Commonwealth will help ensure that individuals participating in Pennsylvania’s courts who have opioid use disorder will be allowed to follow their providers’ course of treatment, which may include medication that dramatically reduces opioid overdose deaths. This office will enforce the ADA to protect all individuals with disabilities, and this includes our citizens in recovery from addiction.”
The settlement agreement resolves the department’s lawsuit against the UJS, Supreme Court of Pennsylvania and Blair, Jefferson, Lackawanna and Northumberland County Courts of Common Pleas. The department’s complaint, filed in 2022, alleged that UJS courts in multiple counties caused significant harm through the enforcement of their discriminatory administrative policies. The department further alleged that those affected by the UJS court policies were put to an agonizing choice: take their medication and face incarceration or termination from their treatment court program or forgo their medication and suffer painful withdrawal symptoms while risking relapse, overdose and death. As a result, they suffered significant harm. The complaint alleged that the named county courts and other UJS courts had likely harmed many other individuals with OUD through the enforcement of their discriminatory policies.
Under the settlement agreement, the UJS courts will compensate the victims identified in the complaint. They will train all Pennsylvania state court criminal judges and treatment court professionals on the ADA and OUD medication. Several of the named county courts will adopt a robust anti-discrimination policy related to OUD medication. The Administrative Office of Pennsylvania Courts will recommend and encourage all other county courts to adopt the same policy. Finally, the UJS courts will report on their efforts to comply with the agreement, including detailing any complaints about access to OUD medication submitted to any UJS courts during the agreement’s two-year term.
The settlement agreement announced today advances the Justice Department’s efforts to combat discrimination against individuals with OUD and to remove discriminatory barriers to treatment. The department has issued public guidance and filed statements of interest on the ADA’s protections for those with OUD. It has entered into multiple settlements with jails and prisons to increase access to OUD medication, including recent agreements in Allegheny County, Pennsylvania; Eastern Kentucky and Massachusetts. It has undertaken enforcement efforts to combat discrimination against individuals with OUD in court supervision programs in Massachusetts. It has also entered numerous settlements to address discriminatory barriers to treatment for OUD outside of the criminal justice context, including barriers related to employment, professional licensing, social services and healthcare.
The Justice Department’s Civil Rights Division handled this matter in collaboration with the U.S. Attorneys’ Offices for the Eastern and Middle Districts of Pennsylvania.
The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. For more information about the Justice Department’s work to address discrimination against individuals with opioid use disorder, please visit www.ada.gov/topics/opioid-use-disorder/. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit ada.gov. Members of the public may report possible civil rights violations at civilrights.justice.gov/report.
Philadelphia Man Indicted for Targeting U.S. Army Servicemembers in Conspiracy to Commit Identity Theft and CyberstalkingRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Alpha Omega Mayhue, 39, of Philadelphia, Pennsylvania, was charged today by indictment with one count of conspiracy to commit identity theft, seven counts of misuse of a Social Security number, seven counts of aggravated identity theft, twenty-one counts of false statements, and one count of cyberstalking.
The indictment alleges that from February 2018 to March 2021, Mayhue, who served in the United States Army with his victims, stole and used their personally identifiable information to harass and stalk them over past grievances he had with them in the military. Mayhue and his co-conspirators impersonated the victims and conducted numerous unauthorized transactions with banks, credit unions, the Federal Trade Commission, and other entities. In addition, Mayhue cyberstalked one victim, claiming he was surveilling her and subjecting her to sexual threats. If convicted of these offenses, the defendant faces a maximum possible sentence of 164 years’ imprisonment, three years of supervised release, a $9,250,000 fine, and a $3,700 special assessment.
The case was investigated by the Defense Criminal Investigative Service (“DCIS”) and the Federal Deposit Insurance Company Office of Inspector General (“FDC-OIG”) and is being prosecuted by Assistant United States Attorney Josh A. Davison.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged in Connection with Eight Carjackings and Nine RobberiesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Khalil Dickens, 20, of Philadelphia, Pennsylvania, was arrested and charged by indictment with one count of conspiracy, eight counts of carjacking and aiding and abetting, and four counts of using a firearm during a crime of violence and aiding and abetting.
Between approximately June 2023 and July 2023, Dickens and others allegedly took part in eight armed carjackings and nine additional robberies, in the city of Philadelphia, several of which involved the perpetrators physically assaulting, or even shooting at, their victims.
If convicted, the defendant faces a maximum possible sentence of life imprisonment.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
California Man Sentenced to 51 Months in Prison for Defrauding Amtrak, Trailways of More Than $475,000Read the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Korey Wise was sentenced today to 51 months’ imprisonment and two years of supervised release by United States District Judge Nitza Alejandro Quinones for defrauding Amtrak and Trailways Transportation Systems of approximately $475,910. Wise was also ordered to pay full restitution of that sum.
On May 17, 2023, defendant Wise, 48, pleaded guilty to two counts of wire fraud and one count of aggravated identity theft before United States District Judge Edwardo C. Robreno.
From January 2014 through May 2017, Wise devised a scheme in which he made telephone calls to individuals and small business owners located throughout the country. During these calls, he pretended to be a representative of a utility company, calling to collect an overdue bill or an official from a licensing board that oversaw nail salons. Wise falsely told the business owner that the business owed an inspection fee and if the fee was paid over the telephone with a credit card, the fee would be less. Unbeknownst to the victims, he then used the credit card information he collected to purchase travel reservations on carriers, including Amtrak and Trailways Transportation Systems, and then resold those reservations for profit.
The investigation revealed that Wise victimized individuals and small business owners, who spoke English as a second language, throughout the country. He fraudulently obtained the credit card information of three victims located in the Eastern District of Pennsylvania at the time of his calls. Wise falsely told these three victims, who each owned nail salons, that he was from the Cosmetology Board and the Board was planning an inspection of their salon. He told each victim that he or she could prepay the fee with a credit card. Without their knowledge and authorization, Wise used their respective credit cards to purchase reservations from Trailways Transportation Systems in various amounts.
“Korey Wise defrauded Amtrak and Trailways of nearly half a million dollars, using the stolen identities of innocent people to do so,” said U.S. Attorney Romero. “It’s despicable that he specifically targeted victims for whom English may have been a second language, hoping they’d be easier to exploit. My office and our law enforcement partners will continue to hold financial fraudsters like Wise accountable for their crimes.”
The case was investigated by the Amtrak Police Department, the Amtrak Office of the Inspector General, the United States Secret Service, and the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
Philadelphia Woman Charged with Interfering with Flight Crew, Simple Assault, and Indecent Exposure on Frontier Airlines FlightRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Dulce Huertas, 60, of Philadelphia, Pennsylvania, was arrested and charged by criminal complaint with interference with flight crew members and attendants, simple assault, and indecent exposure on a Frontier Airlines flight from Orlando, Florida, to Philadelphia.
If convicted, the defendant faces a maximum possible sentence of 21 years and three months in prison, three years of supervised release, and a $355,000 fine.
The case is being investigated by the Federal Bureau of Investigation and the Federal Air Marshal Service, an agency of the Department of Homeland Security’s Transportation Security Administration. The Philadelphia Police Department has also provided assistance.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced to 413 Months for Shooting Pharmacy EmployeeRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Gregory Stevens, 25, of Philadelphia, Pennsylvania, was sentenced to 413 months’ imprisonment by United States District Judge Mitchell S. Goldberg for shooting a pharmacy employee during a robbery.
On February 22, 2021, at 3:55 p.m., the defendant entered Universal Pharmacy at 3908 Kensington Avenue in Philadelphia while on parole for another robbery. The defendant brandished a gun and demanded narcotics. After an employee tried to defend himself by putting the defendant into a bear hug, the defendant broke free, intentionally shot the employee, and took $8,200 in narcotics from the pharmacy. The employee survived his injuries but spent three days in the Temple University Hospital ICU and sustained severe damage to his liver.
On March 9, 2021, before being arrested for the robbery and shooting, the defendant rode on South Broad Street in a group of dirt bikes in the middle of the day. The defendant suddenly slowed, and he was tapped by the car behind him near the intersection of Broad and Washington. When the car’s driver exited the vehicle to check on the defendant, the defendant assaulted the driver, grabbed a firearm, and nearly shot the driver. The defendant then threw cinder blocks at the driver’s vehicle while the driver hid inside, unable to drive away because of the vehicles in front of him. A viral video of the attack attracted national and international media attention.
“Gregory Stevens has proven himself to be a vicious and violent repeat offender with no regard for others,” said U.S. Attorney Romero. “He was so determined to steal drugs, he shot a pharmacy employee, inflicting life-changing injuries. Just two weeks later, his shocking assault on a driver horrified people around the world. The lengthy sentence imposed today ensures Mr. Stevens will be off the street for decades, making the city safer for all.”
“Predatory violent criminals like Gregory Stevens terrorize our communities,” said Wayne A. Jacobs, FBI Philadelphia's Special Agent in Charge. “Today’s sentencing resulted from the coordinated efforts of the FBI and our community partners. The FBI and its law enforcement partners will never stop working to make our communities safer and free from violent crime.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Michael R. Miller.
Two Owners of Tony Luke’s Philadelphia Cheesesteak Restaurant Sentenced for Tax FraudRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that two owners of a popular South Philadelphia cheesesteak restaurant were sentenced to prison today for their decade-long conspiracy to defraud the IRS. The court sentenced Nicholas Lucidonio, 57, and Anthony Lucidonio Sr., 84, to 20 months in prison each.
According to court documents and statements made in court, the Lucidonios owned and operated Tony Luke’s, a cheesesteak and sandwich restaurant located in South Philadelphia. From 2006 to 2016, they hid from the IRS more than $8 million in cash receipts by, among other things, depositing only a portion of the cash they received into Tony Luke’s business bank accounts and providing incomplete information to their accountant, which caused their accountant to file false tax returns that substantially underreported business receipts and income.
The Lucidonios also committed employment tax fraud by paying employees “off the books” in cash. To evade detection, they paid most employees a portion of their wages “on the books.” The Lucidonios then paid the remainder of their wages in cash without withholding federal income tax, Social Security and Medicare taxes or paying those to the IRS. They did not report these cash wages to their accountant, which caused the accountant to prepare and file false quarterly employment tax returns with the IRS.
When a dispute over Tony Luke’s franchising rights arose between the Lucidonios and another individual in 2015, the Lucidonios became concerned that their tax fraud scheme would be revealed, so they directed that the prior year’s tax returns be amended to increase reported sales. The Lucidonios continued to hide their ongoing payroll tax scheme.
As a result of their tax fraud scheme, the defendants caused a loss of $1,321,042 to the United States.
“For a decade, these successful restaurateurs boldly cooked the books, cheating the government and honest taxpayers alike,” said U.S. Attorney Romero. “As this investigation and prosecution show, tax fraud is a crime with some pretty high stakes, with violators held fully accountable.”
“Anyone contemplating cheating on their taxes should know that IRS Criminal Investigation Special Agents work tirelessly, year-round, to investigate tax and financial crimes,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Our largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their taxes.”
In addition to the terms of imprisonment, U.S. District Judge Gerald A. McHugh ordered both defendants to serve three years of supervised release.
IRS Criminal Investigation investigated the case.
Acting Section Chief John Kane of the Justice Department’s Tax Division and Criminal Division Chief Richard Barrett of the Eastern District of Pennsylvania are prosecuting the case.
Two Men Sentenced for Falsifying Documents Related to Testing of Equipment at Nuclear Power PlantsRead the Press Release
Two men attended sentencing hearings today in federal court for their roles in creating false calibration certificates in a matter within the jurisdiction of the Nuclear Regulatory Commission (NRC).
Miguel Marcial Amaro and Martin Ramos had each previously pleaded guilty to the felony offense of making and using a false document, in violation of 18 U.S.C. § 1001. Each defendant is banned from participation or employment in NRC-licensed activities as a condition of their plea agreement – Marcial Amaro for five years and Ramos for two years.
According to court documents, Marcial Amaro and Ramos both worked for a company that provided acoustic emissions (AE) testing to nuclear power plants to detect structural defects in the plant’s equipment, including critical components within the nuclear reactors.
Between 2010 and 2021, Marcial Amaro was responsible for ensuring that the company’s AE testing equipment was calibrated annually; Ramos worked under Marcial Amaro as an engineer. The two men created numerous false calibration certificates for AE testing equipment and 15 of these false certificates were sent a total of 29 times to nuclear plant owners as part of final testing reports required by NRC. The falsified calibration certificates were discovered in 2021 during an external audit.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) and U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania made the announcement.
The NRC’s Office of Investigation conducted the investigation.
Senior Trial Attorney Daniel Dooher and Trial Attorney Rachel M. Roberts of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Joan E. Burnes for the Eastern District of Pennsylvania are prosecuting the case.
Current and Former Owners of Center City Philadelphia Pharmacy Agree to Pay over $4.6 Million to Resolve Civil Investigations of Improper Medicare and Medicaid BillingRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that Jai Shri Krishna LLC, the current owner of Pennmark Pharmacy in Philadelphia, and Pennmark Pharmacy Inc., the former owner of the pharmacy, have separately agreed to pay, in total, over $4.6 million to resolve the False Claims Act liability of Jai Shri Krishna and its pharmacist and the unjust enrichment liability of Pennmark Pharmacy Inc.
Jai Shri Krishna LLC has operated Pennmark Pharmacy on South Street in southwestern Center City since January 2018. During that time, Antim Patel, a member of the LLC, has been Pennmark Pharmacy’s principal pharmacist. Jai Shri Krishna LLC and Mr. Patel will jointly pay $3,955,173.79 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare and Medicaid for prescription medications that were not actually dispensed during the period from January 12, 2018, through September 30, 2020. These medications include but are not limited to Latuda, Sprycel, Metformin Hydrochloride, Truvada, Advair Diskus, Genvoya, Triumeq, Tremfya, Tivicay, Breo Ellipta, Anoro Ellipta, Spiriva Respimat, Januvia, Vanos 0.1% cream, Isentress, and Biktarvy. In some cases, such as for Metformin Hydrochloride and Vanos 0.1% cream, the government alleges that Jai Shri Krishna LLC billed Medicare for high-cost formulations of the medications while dispensing lower-cost formulations to beneficiaries.
As part of their resolution with the United States, Jai Shri Krishna LLC and Antim Patel have entered into an integrity agreement with the Department of Health and Human Services, Office of the Inspector General. The integrity agreement requires them to undertake substantial compliance obligations and to contract with an Independent Review Organization that will conduct third-party audits of their Medicare claims and drug inventory.
Pennmark Pharmacy Inc. has separately agreed to pay $700,530 to resolve allegations that it and its principal, Engin Celik, were unjustly enriched as a result of billing Medicare and Medicaid, during the period from June 17, 2015, through January 11, 2018, for prescription medications that were not actually dispensed. These medications include but are not limited to Symbicort, Aripiprazole, Ventolin HFA, Isentress, Sensipar, Advair Diskus, Prezista, Renvela, and Flovent HFA.
“Pharmacies and pharmacists are in a position to serve their communities as vital components of our medical system; they have a responsibility not to abuse their positions for profit,” said U.S. Attorney Romero. “Taxpayers expect that their dollars will be spent on medications needed by Medicare and Medicaid beneficiaries. The U.S. Attorney’s Office works every day to ensure that taxpayer dollars are not wasted on fraud and abuse.”
“Pharmacies are responsible for all claims they submit to Medicare and Medicaid,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayer dollars are only spent on bona fide medical claims.”
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorneys Elizabeth L. Coyne and Rebecca S. Melley and Auditor George Niedzwicki.
Florida Woman Sentenced for Disrupting FlightRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Jessica Navarro, 31, of Winter Springs, Florida, was sentenced to nine months’ imprisonment and one year of supervised release by the Honorable Judge Nitza I. Quinones Alejandro.
In June 2023, Navarro pleaded guilty to one count of interfering with a flight crew, one count of assaulting a flight attendant, and one count of assaulting a passenger. On January 11, 2022, the defendant, under the influence of alcohol, had kicked the seats in front of her, spat on passengers, and physically resisted the flight crew. The defendant’s conduct escalated, with Navarro striking a flight attendant and a passenger, causing a Frontier Airlines flight that departed Orlando, Florida, to be diverted from its intended Islip, New York, destination and land at Philadelphia International Airport.
“Jessica Navarro’s violent conduct endangered and traumatized passengers, and severely inconvenienced everyone aboard that plane,” said U.S. Attorney Romero. “Air travel can already be a stressful experience, and the last thing anyone should have to deal with is such drunken and dangerous behavior en route to their destination. If you commit a federal crime aboard an aircraft, expect to be held accountable.”
“Passengers like Navarro do more than disrupt a flight, they put all passengers and the entire crew at risk,” said Wayne A. Jacobs, FBI Philadelphia's Special Agent in Charge. “Today’s sentencing sends a message to anyone who might engage in disruptive behavior or violence aboard an aircraft: Upon your arrival, FBI agents will be waiting to bring you to justice.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Delaware County Man Pleads Guilty to Six Explosive IncidentsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Cushmir McBride, 24, of Yeadon, PA, entered a plea of guilty before United States District Court Judge Gene E.K. Pratter for conspiracy to maliciously damage property used in interstate commerce by means of an explosive, and aiding and abetting, as well as five separate counts alleging maliciously damaging property used in interstate commerce by means of an explosive.
In addition, on January 11, 2024, Nasser McFall, 23, of Claymont, DE, was sentenced to six and a half years in prison and three years of supervised release by United States District Court Judge Gene E.K. Pratter for the explosive incidents described below. On June 29, 2022, McFall had pleaded guilty to conspiracy to maliciously damage property used in interstate commerce by means of an explosive, and aiding and abetting, as well as four separate counts alleging maliciously damaging property used in interstate commerce by means of an explosive.
McBride and McFall, along with Kamar Thompson, 34, of Philadelphia, PA, were charged by indictment in April of 2021 for their involvement in four separate incidents in Fall 2020: the robberies of a Target and a Wawa, and attempts to rob two different Wawas, all with multiple explosive devices. McFall was also charged with setting off an explosive device at a bank in Philadelphia later that year. McBride and McFall were previously arrested and charged by complaint, and Thompson was already in federal custody facing charges in a separate case involving the possession of a firearm by a convicted felon.
On November 3, 2021, Thompson pleaded guilty to conspiracy to maliciously damage property used in interstate commerce by means of an explosive, and aiding and abetting, six counts alleging maliciously damaging property used in interstate commerce by means of an explosive, and possession of a firearm by a convicted felon.
On January 20, 2022, McBride and McFall were charged by superseding indictment, which added a charge alleging that McBride set off an explosive device at a Wells Fargo bank ATM in the Chestnut Hill section of Philadelphia on March 2, 2021. The superseding indictment also alleged that McBride, McFall, and Thompson stole over $400,000 from Capital One Bank (Target), PNC Bank (Wawa), and Wells Fargo.
As background:
On October 26, 2020, a Philadelphia police officer-involved shooting occurred in the Cobbs Creek section of Philadelphia, resulting in the death of Walter Wallace, Jr. Peaceful protests began that evening and continued into the following days, accompanied by a period of civil unrest, with widespread incidents of looting and violence in various neighborhoods in Philadelphia.
On October 28, 2020, defendants McBride, Thompson and McFall conspired to break into a Target in the Port Richmond section of Philadelphia and set off an explosive device in order to steal money from an ATM inside. The defendants had broken into a Wawa the following day, October 29, on Richmond Street in Philadelphia, where they once again set off explosive devices in order to steal money from the ATM. On October 31, 2020, the defendants broke into another Wawa in Northeast Philadelphia and detonated an explosive device. The indictment further alleged that the defendants set off an explosive device in another Wawa in Claymont, DE, on November 4, 2020, in an attempt to rob this store in the same manner. All three defendants were later charged with setting off an explosive device inside an ATM at a Wells Fargo bank in Philadelphia on December 2, 2020. McBride was then charged with setting off an explosive device at a Wells Fargo ATM in Philadelphia on March 2, 2021. The defendants were able to steal approximately $417,000 during the course of the conspiracy.
“The Department of Justice remains committed to protecting the rights of individuals to peacefully exercise their First Amendment freedoms,” said U.S. Attorney Romero. “However, violence and destruction of property like this clearly jeopardize the rights and safety of all citizens. As evidenced by McBride’s plea and McFall’s sentence, if you seek to use peaceful protests as cover to pursue your own violent criminal agenda, my office and our law enforcement partners will bring you to justice.”
“Both defendants recklessly used explosive devices at least six times, each with the potential to cause significant damage and injure countless people,” said Eric DeGree, Special Agent in charge of ATF’s Philadelphia Field Office. “ATF is committed to protecting our communities from harm and working with our law enforcement partners to disrupt violent explosives-related activity. I want to thank the Philadelphia Police Department, Delaware State Police, Upper Chichester Police Department, and the United States Attorney’s Office for their efforts in this case.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, with assistance from Delaware State Police and Upper Chichester Police Department and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Special Assistant United States Attorney David Osborne.
Eastern District of Pennsylvania Reaches Agreement with Temple University Health System to Provide Greater Education and Equal AccessRead the Press Release
U.S. Attorney Jacqueline C. Romero announced today that Temple University Health System, Inc. (“Temple Health”) has reached an agreement with the United States to improve employee training and awareness of the Americans with Disabilities Act (“ADA”), to resolve allegations that Temple Universal Hospital – Episcopal Campus (“Episcopal Hospital”) violated the ADA by denying full and equal access to Episcopal Hospital’s Emergency Department (“ED”) based on an individual’s disability and use of a service animal.
Under the ADA, all hospitals, as places of public accommodation, must provide emergency services to members of the general public. This resolution arises out of an investigation into whether Episcopal Hospital denied an individual with a service animal access to its ED, which is in violation of the ADA.
“All individuals, including individuals with disabilities who require the use of service animals, should have equal access to all hospital services, especially vital emergency services.” said U.S. Attorney Romero. “Episcopal Hospital cooperated with the investigation and has recognized the importance of raising awareness of the ADA and service animals.”
To resolve the matter, Episcopal Hospital has agreed to make improvements to both the timing and frequency of employee training related to the ADA and service animals. Specifically, it will require all newly hired staff and security contractors to review its service animal policy, and complete ADA training, within the first week of employment with Episcopal Hospital and on an annual basis thereafter. Episcopal Hospital has further agreed to post a quick-reference reminder about the ADA and service animals at the entrance of the ED.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania is committed to investigating alleged violations of the ADA. Those interested in learning more about obligations under the ADA may access www.ada.gov or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at https://www.justice.gov/crt/how-file-complaint.
Assistant U.S. Attorneys Mansi G. Shah and Deborah W. Frey handled the matter.
Former Executive Director of Philadelphia Non-Profit Fund Charged with Stealing over $1.6 Million from Church FamiliesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that John A. Miller, 74, of Philadelphia, Pennsylvania, was arrested and charged by indictment on charges of wire fraud.
The indictment alleges that Miller, who served as executive director and treasurer of a non-profit fund in Philadelphia, used his position of trust to steal more than $1.6 million intended for widows and orphans of deceased clergy. The indictment alleges that from January 2015 through May 2022, the defendant devised a scheme to divert money from the fund to himself by, among other means, presenting false and fraudulent financial information to other fund executives and its outside auditors. The indictment alleges that Miller then used this money to fund personal purchases for himself, including international cruises, vacations to the Caribbean, and a luxury condominium.
If convicted, the defendant faces a maximum possible sentence of 60 years’ imprisonment.
The case was investigated the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Jerome M. Maiatico.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.