Eastern District of Pennsylvania

PHILADELPHIA – AdaptHealth LLC, formerly known as QMES, LLC, a provider of durable medical equipment based in Plymouth Meeting, Pennsylvania, will pay $5.3 million to resolve alleged False Claims Act violations for submitting allegedly false claims to federal healthcare programs for respiratory devices that patients did not need or use, in violation of federal healthcare program requirements. The settlement was announced today by United States Attorney Jacqueline C. Romero.       

The settlement resolves allegations that between 2013 and 2017, AdaptHealth (known during the period as QMES and Tri-County Medical Equipment and Supply LLC), itself and through certain of its related entities, knowingly and willfully billed federal payors for non-invasive ventilators (“NIVs”) when a patient was instead prescribed and used a BiPAP machine—for which federal payors reimburse suppliers thousands of dollars less per year. The settlement also resolves allegations that AdaptHealth continued billing federal payors for ventilators after patients no longer needed or were using them, and double-billed federal payors for some ventilator rentals in violation of program requirements.

“The integrity of our health care system depends on the government being able to rely on durable medical equipment providers to seek reimbursement for only those devices a doctor has prescribed for their patient and that the patient actually needs and uses,” said U.S. Attorney Romero. “Providers like AdaptHealth have an obligation to ensure that the equipment and devices they rent to patients are medically necessary and properly billed. When companies disregard that obligation to maximize their profits, this Office will hold them accountable.”

“When submitting false claims to federal healthcare programs, providers exploit the trust that they will bill in accordance with the law and instead use the reimbursement process to steal taxpayer dollars,” stated Maureen Dixon, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, along with our law enforcement partners, will work to investigate and cease wrongful activity to protect federal healthcare resources.”

“The integrity of the Federal health care programs depends on the honest and accurate submission of claims,” said Conrad J. Quarles, Deputy Assistant Inspector General for Investigations, Office of Personnel Management Office of the Inspector General. “We applaud the efforts of our law enforcement partners and colleagues at the Department of Justice on today’s settlement.” 

The settlement resolves a lawsuit originally brought by Michael J. Kelly, a former QMES employee, under the whistleblower, or qui tam, provisions of the False Claims Act. The Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Kelly will receive approximately $950,000 of the settlement.

The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare 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).

The case is being handled by Assistant United States Attorneys Lauren DeBruicker and Veronica J. Finkelstein and Auditor Dawn Wiggins. This settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Pennsylvania; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; and the Office of Personnel Management, Office of the Inspector General.

The lawsuit is captioned United States ex rel. Kelly v. QMES LLC, d/b/a Tricounty Medical Equipment and Supply, LLC, No. 17-cv-0199 (E.D. Pa.). The claims resolved by the settlement are allegations only; there has been no determination of liability. 

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Al-Ashraf Khalil, 29, and Isaam Jaghama, 29, both of Philadelphia, PA, were charged by indictment with one count of conspiracy to commit malicious damage by means of fire of a building used in interstate commerce, and one count of malicious damage by means of fire of a building used in interstate commerce.  Khalil was also charged with one count of wire fraud, and one count of using fire in furtherance of the commission of that wire fraud. 

Khalil and Jaghama are charged with the arson at 300 West Indiana Avenue in Philadelphia on June 18, 2022, which resulted in the death of Philadelphia Firefighter Lieutenant Sean Williamson, and injuries to five other first responders, who were inside the building when it collapsed following fire suppression activities.  Defendant Khalil was the owner of the property at 300 West Indiana Avenue, which contained both apartments and a business.  According to the allegations in the indictment, Khalil and Jaghama set a fire inside 300 West Indiana Avenue so that Khalil could profit by filing an insurance claim related to the fire.  According to the indictment, after the fire occurred, Khalil signed paperwork authorizing an insurance adjuster to file an insurance claim on his behalf.  As alleged in the indictment, this claim was then filed on June 20, 2022.        

If convicted, defendant Khalil faces a mandatory-minimum sentence of 17 years in prison, and up to a maximum of life in prison.  If convicted, defendant Jaghama faces a mandatory minimum sentence of 7 years in prison and up to a maximum of life in prison.   

The case was investigated by ATF Philadelphia and the ATF’s National Response Team, the Philadelphia Fire Department Fire Marshal’s Office, and the Philadelphia Police Department, with significant assistance provided by the Philadelphia Department of Licenses & Inspections. The case is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.

An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

Philadelphia, PA - On Monday, April 17, 2023, in partnership with the National Constitution Center, United States Attorney Jacqueline C. Romero hosted a Reentry Simulation to raise awareness about the challenges that formerly incarcerated individuals face when they reenter society. The event marked the launch of the United State Attorney's Office’s "Reentry Simulation Kits," distributed to community organizations and other stakeholders to encourage greater understanding and support efforts to promote successful reintegration.

Reentry Simulations are designed to help people understand the significant challenges faced by citizens returning home from prison. Versions of this exercise have been facilitated by U.S. Attorney's Offices and community and criminal justice organizations nationwide. 

The U.S. Attorney’s Office for the Eastern District of Pennsylvania redesigned the kits to facilitate conducting Simulations with easy-to-use, high-quality and reusable materials designed to replicate the challenges encountered such as obtaining identification, finding employment, and accessing essential services.

What is a Reentry Simulation?

The Simulation is a two-hour activity that prompts participants to walk in the shoes of someone who has just returned home from prison by providing them with tasks to complete within a certain amount of time. 

The exercise is divided into four 15-minute segments, representing four weeks (the first month) of someone returning home. The participants receive a "wallet" with an "Identity Sheet," which lists information about their criminal offense and life circumstances. They also receive a "Life Card," which details the tasks they must complete, including complying with the terms of probation, finding a job, attending treatment, managing family responsibilities, paying bills, and purchasing food and transportation.  The participants must move among several corresponding “stations” to complete the tasks at each station within the allotted time. 

The Simulation is followed by a debrief and discussion about the criminal justice system and the complexities of Reentry. This exercise can create awareness about the barriers to Reentry, change perceptions about returning citizens and the criminal justice system, deepen empathy, and inspire people to think more about the workings of our criminal justice system. 

“Promoting successful reintegration of formerly incarcerated individuals is why we are here today to commemorate National Second Chance Month with the launch of the Reentry Simulation Initiative," said U.S. Attorney Romero. "In my previous role as an Assistant United States Attorney, I participated in the office's Reentry Court for years and I saw the struggles. I hope that our Reentry Simulation Kits and numerous simulations hosted after today will open up many more eyes and inspire understanding."

The United States Attorney's Office is committed to raising awareness about the importance of Reentry and to supporting initiatives that promote successful reintegration into society. Over the next several months, the Office will facilitate Simulations across the District with law enforcement, community members, non-profits, and people from all walks of life. By working together, we can ensure that our returning citizens have the tools and resources they need to succeed in their journey home.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Dayon Hackett, 20, of Philadelphia, PA, pleaded guilty today to one count of carjacking and one count of attempted carjacking. Hackett and his co-defendants, Jaheym Newsome, 20, of Philadelphia, and Taquan Mershon, 19, of Philadelphia, were charged by Superseding Indictment with these offenses in connection with an armed carjacking they committed on December 22, 2021, in the Bridesburg section of Philadelphia, and an attempted armed carjacking in South Philadelphia later that same day.  Newsome and Mershon pleaded guilty to these same charges on March 20, 2023. 

As detailed in the Criminal Complaints previously filed in this case, in the first incident, Hackett, Newsome, and Mershon carjacked a man at gunpoint as he prepared to head to work in early morning hours of December 22, 2021.  The three men then took the car they stole in Bridesburg and drove it South Philadelphia, where they attempted to carjack a man who was coming home from work and looking for a parking spot. Hackett and Newsome opened the door to that vehicle and attempted to pull the victim out of the car. Upon observing a firearm on the victim’s lap, Hackett and Newsome opened fire on the victim, striking him multiple times. The victim returned fire and Hackett was struck multiple times. Hackett and Newsome then returned to the waiting vehicle that Mershon was driving, and Mershon and Newsome dropped Hackett on the floor of a nearby emergency room, fleeing in the vehicle they had carjacked earlier that morning. All three individuals were subsequently identified, charged by federal Criminal Complaint, and taken into custody.  A grand jury returned the Superseding Indictment on September 13, 2022. 

“Today’s guilty plea is another fine example of the successful partnership that is the Philadelphia Carjacking Task Force,” said U.S. Attorney Romero. “If you commit a violent offense like a gunpoint carjacking, you can expect the federal authorities to come knocking at your door.”

“ATF is on the frontline in the fight against violent crime, particularly armed carjackings,” said Eric DeGree, Special Agent in charge of ATF’s Philadelphia Field Division. “While we hope this case deters those willing to use gun violence against American citizens, ATF investigators stand ready to work with our local, state and federal partners whenever gun crime occurs in our community.”

The swift and relentless action to investigate and federally charge these defendants is the result of the Philadelphia Carjacking Task Force, which is comprised of members of the U.S. Attorney’s Office’s Violent Crime Unit; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Philadelphia Police Department. The goal of the Taskforce is to stem the wave of armed carjackings and violent crimes through investigative and enforcement techniques meant to identify and refer for federal prosecution all who terrorize innocent victims through commission of these offenses within Philadelphia and surrounding areas.

After pleading guilty, Newsome is set to be sentenced on July 12, 2023, Mershon is set to be sentenced on July 24, 2023, and Hackett is set to be sentenced on August 14, 2023, before the Honorable Nitza I. Quinones-Alejandro.

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.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Christian Dunbar, 42, of Philadelphia, PA, the former Philadelphia City Treasurer, was sentenced to six months in prison, 3 years of supervised release, a $10,000 fine, and $33,202.00 in restitution to the IRS by United States District Court Judge Cynthia M. Rufe. His U.S. citizenship will also be revoked. As part of his application to become a U.S. citizen, Dunbar made multiple false statements, submitted altered citizenship papers, and failed to file federal tax returns in three separate tax years. 

In May 2021, the defendant was charged by Superseding Indictment with multiple counts of filing a false income tax return and failure to file tax returns. Earlier, in September 2020, Dunbar was charged in a 14-count Indictment, charging embezzlement by a bank employee, procurement of naturalization through a false statement, procurement of naturalization unlawfully, obtaining false citizenship papers, and making false statements in support of naturalization.

The defendant previously admitted to procuring U.S. citizenship fraudulently by providing false information about where and with whom he was living, where his child was residing, and submitting a false lease and a false W-2 tax form to U.S. Citizenship and Immigration Services. Further, Dunbar admitted to not filing his personal income tax returns for tax years 2015, 2016, and 2019 (during the last of which he was serving as the Philadelphia City Treasurer).     

“Christian Dunbar’s actions in seeking United States citizenship and serving as the City of Philadelphia’s Treasurer betrayed the ideals inherent in the precious privilege of U.S. citizenship, and the duty he owed to Philadelphians to oversee the City’s finances,” said U.S. Attorney Romero. “Our Office will continue to work with our law enforcement partners to hold public officials accountable.”

“As city treasurer, Christian Dunbar held a key position of public trust,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Little did the people of Philadelphia realize that his U.S. citizenship was fraudulently obtained and he'd been dodging doing his taxes. Philly deserves better and the FBI will continue to work on behalf of the public to hold corrupt officials like Dunbar accountable.”

“Mr. Dunbar’s conscious decision to violate federal tax laws has cost him his freedom,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “With the end of the tax filing season fast approaching, this should serve as another reminder of the importance for filing an accurate tax return. Failure to do so could lead to similar consequences.”

“Today’s sentencing of Mr. Dunbar illustrates HSI’s commitment to ensuring that our immigration system is void of fraud and deception, particularly from those entrusted with public office,” said Special Agent in Charge of HSI Philadelphia William S. Walker.  “HSI will continue to tirelessly work with our partners in the U.S. Attorney’s Office, FBI, and IRS-CI to prosecute and to revoke any fraudulently obtained citizenship from those committing federal crimes and violating the trust of the people of Philadelphia.”    

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations, and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Zachary William Easterly, 38, of Etters, Pennsylvania, was charged by Information with misdemeanor assault of a federal officer. Specifically, the Information alleges that on August 30, 2022, Easterly assaulted a Special Agent of the Federal Air Marshal Service who was engaged in the performance of his official duties.

If convicted, the defendant faces a maximum possible sentence of one year in prison, one year of supervised release, and a $100,000 fine.

The case was investigated by the Federal Air Marshal Service, an agency of the Department of Homeland Security, Transportation Security Adminstration.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that a Superseding Indictment was unsealed today in relation to the murder of Philadelphia Police Corporal James “Jimmy” O’Connor, posthumously promoted to Sergeant. The 31-count Superseding Indictment includes a RICO conspiracy, three additional counts of murder, nine non-fatal shootings, and related charges for Hassan Elliott, a/k/a “Haz,” age 25; Khalif Sears, a/k/a “Leaf,” a/k/a “Lil Leaf,” age 21; and two previously unnamed defendants, Kelvin Jiminez a/k/a “Nip,” age 32; and Dominique Parker, a/k/a “Dom,” age 31, all of Philadelphia.

The original Indictment charged the murder of Sergeant O’Connor, as well as related drug trafficking and firearms offenses.

The Superseding Indictment charges all four defendants with:

• conspiracy to participate in a racketeering (RICO) enterprise (1 count); and
• conspiracy to distribute a controlled substance (1 count).

Additional charges include:

• murder in aid of racketeering (4 counts);
• assault in aid of racketeering (9 counts);
• attempted assault in aid of racketeering (2 counts);
• possession of a firearm in furtherance of drug trafficking (1 count);
• using, carrying, brandishing, and discharging a firearm during a crime of violence (5 counts);
• murder in the course of using, carrying, and discharging a firearm (4 counts);
• possession with intent to distribute and distribution of a controlled substance (1 count);
• maintaining a drug involved premises (1 count); and
• possession of a firearm by a felon (2 counts).

The Superseding Indictment alleges that the defendants were members of a violent drug trafficking organization known as “1700 Scattergood,” which operated in the Frankford section of Northeast Philadelphia. The defendants allegedly sold large quantities of narcotics over a multi-year period, using violence and threats of violence to protect their reputation and drug territory. The Superseding Indictment alleges that in furtherance of that conspiracy, Elliott and others killed Kaseem Rogers on December 3, 2018; Tyrone Tyree on March 1, 2019; and Dontae Walker on August 22, 2019.

On March 13, 2020, Elliott, Sears, and others previously indicted were inside a stash house on the 1600 block of Bridge Street when Sergeant O’Connor and other members of the Philadelphia Police Department’s SWAT team arrived with a homicide warrant for Elliott related to the March 2019 murder of Tyrone Tyree. As Sergeant O’Connor and his fellow officers ascended the staircase to the second floor of the residence and announced their presence multiple times, Elliott allegedly fired a semi-automatic assault rifle 16 times, striking and killing Sergeant O’Connor.

If convicted, the defendants face a maximum possible penalty of lifetime imprisonment. In addition, contained within the Superseding Indictment is a Notice of Special Findings for defendant Elliott for each of the four charges of murder while using or carrying a firearm. These Notices make Elliott eligible for the death penalty.

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 Attorneys Christopher Diviny, Ashley Martin, and Lauren Stram.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA—United States Attorney Jacqueline C. Romero announced that GlycoMark, Inc., a joint-venture subsidiary owned by Toyota Tsusho Corporation, Toyota Tsusho America, Inc., and Nippon Kayaku Co., Ltd., has agreed to pay $195,000 to resolve allegations that it violated the False Claims Act by encouraging its customers to submit claims for the GlycoMark test after the test was no longer approved for reimbursement to Medicare and Medicaid.

Between approximately 2016 and 2018, GlycoMark distributed the GlycoMark test, which was used to detect hyperglycemia and hyperglycemic excursions. According to GlycoMark, the GlycoMark test is used for a “more complete assessment of glycemic control to identify patients that may benefit from closer diabetes management.” 

Prior to September 1, 2016, the GlycoMark test was eligible for reimbursement under Medicare’s Current Procedural Terminology (CPT) code 84378, providing coverage for a variety of tests related to blood sugars. In September 2016, a Medicare Administrative Contractor (MAC) issued Local Coverage Determination (LCD) L36761, specifically prohibiting Medicare reimbursement for the GlycoMark test, stating that the GlycoMark test was not reasonable or necessary for the management of diabetes, and is not covered. The non-coverage policy went into effect on October 17, 2016. 

Despite knowing of the prohibition of Medicare reimbursement and being aware of the billing oversight for the GlycoMark test, the United States alleges that GlycoMark, from November 1, 2016 to May 30, 2019, knowingly caused to be submitted claims for GlycoMark tests that it knew were not covered by the Federal health care programs. The United States further contends that GlycoMark encouraged its customers to submit GlycoMark tests for Medicare reimbursement in two ways: (1) by encouraging labs to continue billing for the GlycoMark test using CPT code 84378; and (2) by printing and distributing marketing materials that stated “reimbursed by Medicare” and by displaying CPT code 84378 with no disclaimer that Medicare reimbursement is prohibited. 

“We are committed to ensuring that testing manufacturing companies appropriately bill Medicare,” said U.S. Attorney Romero. “GlycoMark allegedly encouraged labs to charge the government for quantities of tests after it was aware that federal programs would not reimburse for this testing. Those who engage in these deceptive practices in the name of profits will be held accountable.”

“Testing manufacturing companies have a responsibility to follow Medicare regulations,” stated Maureen R. Dixon, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to working with the United States Attorney’s Office to investigate allegations of inappropriate insurance claims and to safeguard the integrity of our federal health care programs.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Jeffery Johnston v. GlycoMark, Inc., et al., No. 2:18 -cv-5033 (E.D. Pa.) and was filed by Thomas W. Sheridan of Sheridan & Murray LLC in Philadelphia, PA.

The investigation was conducted by the U.S. Department of Health and Human Services Office of Inspector General. The investigation and resolution obtained in this action were handled by United States Attorney Jacqueline C. Romero and Auditor George Niedzwicki. 

The claims resolved by the settlement are allegations only and there has been no determination of liability.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Sumo Dukulah, 49, of Philadelphia, Pennsylvania was convicted today at trial of procurement of citizenship by a false statement and unlawfully arising from his failure to honestly answer questions during the naturalization process about his prior criminal activity, including his rape of a child under the age of thirteen.

The defendant was indicted by a grand jury on June 24, 2021 and charged with procuring citizenship through a false statement and with procuring citizenship unlawfully.  The defendant, from September 27, 2011 to January 9, 2012, in submitting his application for citizenship and in his sworn affirmations at his interview at U.S. Citizenship and Immigration Services in Philadelphia, falsely declared that he had never committed a crime, when in fact, he had been raping a minor female.

“The guilty verdict for Sumo Dukulah sends a message that you will be held accountable for lying about your criminal background on federal immigration forms,” said U.S. Attorney Romero. “Those who would lie in order to secure the precious privilege of U.S. Citizenship put the integrity of our immigration system at risk.”

“Today’s conviction of Mr. Dukulah illustrates HSI’s commitment to ensuring that our immigration system is void of fraud and deception, particularly from those perpetrating such heinous criminal conduct,” said Special Agent in Charge of HSI Philadelphia William S. Walker.  “HSI will continue to tirelessly work with our partners in the U.S. Attorney’s Office to prosecute and to revoke any fraudulently obtained citizenship from anyone that poses a threat to the most vulnerable amongst our communities.”    

The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorneys Josh A. Davison and Patrick Brown.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that David Perez 37, of Philadelphia, PA, was sentenced to 110 months’ imprisonment, three years of supervised release, and ordered to pay $75,218.40 in restitution to the Philadelphia School District and $43,500 in restitution to Wells Fargo Bank by United States District Court Judge Michael M. Baylson for engaging in the business of manufacturing explosive devices, possession of explosives by a convicted felon, malicious damage to a building/institution receiving federal financial assistance, possession of firearm by a convicted felon, possession with intent to distribute a mixture and substance containing a detectable amount of phencyclidine (PCP), and conspiracy to commit bank fraud.

Perez previously pled guilty to manufacturing illegal explosive devices for several years prior to his arrest in June 2021.  Devices consistent with those made by Perez were found at numerous post-blast scenes, including at multiple scenes where explosive devices were used to attempt to access ATMs in the summer and fall of 2020. 

Perez admitted to using some of his homemade illegal explosive devices on July 4, 2020 in the courtyard of the Honorable Luis Munoz-Marin Elementary School in Philadelphia.  Use of these devices caused extensive damage to property inside and outside the school, and resulted in damage to numerous windows.  Repairs to the school cost more than $75,000. 

Upon arrest Perez was found in possession of multiple firearms and distribution-level quantities of PCP in his home.  He also participated in a bank fraud conspiracy, which led to a loss of $43,500 to Wells Fargo Bank.  

"Perez's Sentencing today should serve as a cautionary tale to others considering producing, possessing, or selling an illegal explosive device," said U.S. Attorney Romero. "Detonating powerful explosive devices on the grounds of an elementary school, and possession of firearms and distribution-quantity PCP, all by a convicted felon, is the very definition of a threat to public safety.  The U.S. Attorney's office, with our law enforcement partners, will continue to pursue these cases relentlessly, and David Perez will spend nearly ten years in federal prison."

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Social Security Administration – Office of Inspector General, and the Philadelphia Police Department, with substantial assistance from the Philadelphia Fire Marshal’s Office, and is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Frontage Laboratories, Inc. (Frontage) has agreed to pay $125,000.00 to resolve allegations that it violated the Controlled Substances Act (CSA) by failing to maintain complete and accurate records of controlled substances and failing to keep one controlled substance secured.  The United States’ investigation involved Frontage’s facility located 75 E. Uwchlan Ave., Exton, PA 19341.  As part of the settlement, Frontage has entered into a two-year extension of its Memorandum of Agreement (MOA) with the Drug Enforcement Administration (DEA), which includes additional responsibilities regarding the handling of controlled substances.  The MOA imposes compliance obligations significantly more stringent than those in the applicable laws and regulations.

Frontage is registered with the DEA as a Manufacturer of schedule I-V controlled substances.  Based on an investigation, Frontage entered into a Memorandum of Agreement with the DEA on July 21, 2021.  On May 9, 2022, a reinspection was completed on Frontage’s manufacturer registration.  The investigators found record-keeping violations, including failure to separate Schedule I-II biennial inventory from Schedule III-V inventory, failure to document the correct amount of certain controlled substances on-hand, failure to record the date and quantity received on four receiving records, record the address and registration number of their own manufacturer and analytical lab on six transfers of controlled substances, and storing one controlled substance in a cabinet, rather than an approved safe.

Frontage acknowledged the seriousness of the issues, corrected the problems, hired new oversight staff, and accepted the extended MOA and the need to pay a penalty. 

“Manufacturers who fail to maintain proper records of controlled substances create conditions ripe for diversion,” said U.S. Attorney Romero. “Companies have a responsibility to ensure that all controlled substances are tracked through the distribution chain.  Our Office is committed to ensuring total compliance with the Controlled Substances Act, and we will vigorously enforce violations wherever we find them.”

Congress enacted the CSA to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications, and requires individuals and entities registered with the DEA to maintain complete and accurate records of all controlled substances and security systems so that controlled substances are not lost, stolen, or inappropriately dispensed.

The government’s pursuit of this matter demonstrates its commitment to combating diversion of controlled substances.  The recordkeeping and other regulations applicable to DEA registrants, including manufacturers, are the tools by which the DEA deters drug diversion. 

The investigation was conducted by the DEA’s Philadelphia Field Division, Diversion Regulatory Group 1 and the investigation and settlement was handled by Assistant U.S. Attorney Viveca D. Parker.    

The claims resolved by this settlement are allegations only and there has been no determination of liability.

The Justice Department announced today a coordinated international takedown of ChipMixer, a darknet cryptocurrency “mixing” service responsible for laundering more than $3 billion worth of cryptocurrency, between 2017 and the present, in furtherance of, among other activities, ransomware, darknet market, fraud, cryptocurrency heists and other hacking schemes. The operation involved U.S. federal law enforcement’s court-authorized seizure of two domains that directed users to the ChipMixer service and one Github account, as well as the German Federal Criminal Police’s (the Bundeskriminalamt) seizure of the ChipMixer back-end servers and more than $46 million in cryptocurrency. 

Coinciding with the ChipMixer takedown efforts, Minh Quốc Nguyễn, 49, of Hanoi, Vietnam, was charged today in Philadelphia with money laundering, operating an unlicensed money transmitting business and identity theft, connected to the operation of ChipMixer.

“This morning, working with partners at home and abroad, the Department of Justice disabled a prolific cryptocurrency mixer, which has fueled ransomware attacks, state-sponsored crypto-heists and darknet purchases across the globe,” said Deputy Attorney General Lisa Monaco. “Today’s coordinated operation reinforces our consistent message: we will use all of our authorities to protect victims and take the fight to our adversaries. Cybercrime seeks to exploit boundaries, but the Department of Justice’s network of alliances transcends borders and enables disruption of the criminal activity that jeopardizes our global cybersecurity.”

“Today's announcement demonstrates the FBI's commitment to dismantling technical infrastructure that enables cyber criminals and nation-state actors to illegally launder cryptocurrency funds,” said FBI Deputy Director Paul Abbate. “We will not allow cyber criminals to hide behind keyboards nor evade the consequences of their illegal actions. Countering cybercrime requires the ultimate level of collaboration between and among all law enforcement partners. The FBI will continue to elevate those partnerships and leverage all available tools to identify, apprehend and hold accountable these bad actors and put an end to their illicit activity.”

According to court documents, ChipMixer – one of the most widely used mixers to launder criminally-derived funds – allowed customers to deposit bitcoin, which ChipMixer then mixed with other ChipMixer users’ bitcoin, commingling the funds in a way that made it difficult for law enforcement or regulators to trace the transactions. As detailed in the complaint, ChipMixer offered numerous features to enhance its criminal customers’ anonymity. ChipMixer had a clearnet web domain but operated primarily as a Tor hidden service, concealing the operating location of its servers to prevent seizure by law enforcement. ChipMixer serviced many customers in the United States, but did not register with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and did not collect identifying information about its customers. 

As alleged in the complaint, ChipMixer attracted a significant criminal clientele and became indispensable in obfuscating and laundering funds from multiple criminal schemes. Between August 2017 and March 2023, ChipMixer processed:

• $17 million in bitcoin for criminals connected to approximately 37 ransomware strains, including Sodinokibi, Mamba and Suncrypt;
• Over $700 million in bitcoin associated with wallets designated as stolen funds, including those related to heists by North Korean cyber actors from Axie Infinity’s Ronin Bridge and Harmony’s Horizon Bridge in 2022 and 2020, respectively;
• More than $200 million in bitcoin associated either directly or through intermediaries with darknet markets, including more than $60 million in bitcoin processed on behalf of customers of Hydra Market, the largest and longest running darknet market in the world until its April 2022 shutdown by U.S. and German law enforcement;
• More than $35 million in bitcoin associated either directly or through intermediaries with “fraud shops,” which are used by criminals to buy and sell stolen credit cards, hacked account credentials and data stolen through network intrusions; and
• Bitcoin used by the Russian General Staff Main Intelligence Directorate (GRU), 85th Main Special Service Center, military unit 26165 (aka APT 28) to purchase infrastructure for the Drovorub malware, which was first disclosed in a joint cybersecurity advisory released by the FBI and National Security Agency in August 2020.

Beginning in and around August 2017, as alleged in the complaint, Nguyễn created and operated the online infrastructure used by ChipMixer and promoted ChipMixer’s services online. Nguyễn registered domain names, procured hosting services and paid for the services used to run ChipMixer through the use of identity theft, pseudonyms, and anonymous email providers. In online posts, Nguyễn publicly derided efforts to curtail money laundering, posting in reference to anti-money laundering (AML) and know-your-customer (KYC) legal requirements that “AML/KYC is a sellout to the banks and governments,” advising customers “please do not use AML/KYC exchanges” and instructing them how to use ChipMixer to evade reporting requirements. 

“ChipMixer facilitated the laundering of cryptocurrency, specifically Bitcoin, on a vast international scale, abetting nefarious actors and criminals of all kinds in evading detection,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Platforms like ChipMixer, which are designed to conceal the sources and destinations of staggering amounts of criminal proceeds, undermine the public’s confidence in cryptocurrencies and blockchain technology. We thank all our partners at home and abroad for their hard work in this case. Together, we cannot and will not allow criminals’ exploitation of technology to threaten our national and economic security.”

“Criminals have long sought to launder the proceeds of their illegal activity through various means,” said Special Agent in Charge Jacqueline Maguire of the FBI Philadelphia Field Office. “Technology has changed the game, though, with a site like ChipMixer and facilitator like Nguyen enabling bad actors to do so on a grand scale with ease. In response, the FBI continues to evolve in the ways we ‘follow the money’ of illegal enterprise, employing all the tools and techniques at our disposal and drawing on our strong partnerships at home and around the globe. As a result, there’s now one less option for criminals worldwide to launder their dirty money.”

“Together, with our international partners at HSI The Hague, we are firmly committed to identifying and investigating cyber criminals who pose a serious threat to our economic security by laundering billions of dollars’ worth of cryptocurrency under the misguided anonymity of the darknet,” said Special Agent in Charge Scott Brown of Homeland Securities Investigations (HSI) Arizona. “HSI Arizona could not be more proud to work alongside every agent involved in this complex international case. We thank all our domestic and international partners for their support.”

Nguyễn is charged with operating an unlicensed money transmitting business, money laundering and identity theft. If convicted, he faces a maximum penalty of 40 years in prison.

The FBI, HSI Phoenix and HSI The Hague investigated the case.

The U.S. Attorney’s Office for the Eastern District of Pennsylvania is prosecuting the case. 

German law enforcement authorities took separate actions today under its authorities. The FBI’s Legal Attaché in Germany, the HSI office in The Hague, the HSI Cyber Crimes Center, the Justice Department’s Office of International Affairs and National Cryptocurrency Enforcement Team, EUROPOL, the Polish Cyber Police (Centralnego Biura Zwalczania Cyberprzestępczości) and Zurich State Police (Kantonspolizei Zürich) provided assistance in this case.

To report information about ChipMixer and its operators visit rfj.tips/Duhsup.

A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Philadelphia – The Justice Department announced today a coordinated international takedown of ChipMixer, a darknet cryptocurrency “mixing” service responsible for laundering more than $3 billion worth of cryptocurrency, between 2017 and the present, in furtherance of among other activities, ransomware, darknet market, fraud, cryptocurrency heists and other hacking schemes.  The operation involved U.S. federal law enforcement’s court-authorized seizure of two domains that directed users to the ChipMixer service and one Github account, as well as the German Federal Criminal Police’s (the Bundeskriminalamt) seizure of the ChipMixer back-end servers and more than $46 million in cryptocurrency

Coinciding with the ChipMixer takedown efforts, Minh Quốc Nguyễn, 49, of Hanoi, Vietnam, was charged today in Philadelphia with money laundering, operating an unlicensed money transmitting business and identity theft, connected to the operation of ChipMixer.

“This morning, working with partners at home and abroad, the Department of Justice disabled a prolific cryptocurrency mixers, which has fueled ransomware attacks, state-sponsored crypto-heists and darknet purchases across the globe,” said Deputy Attorney General Lisa O. Monaco. “Today’s coordinated operation reinforces our consistent message: we will use all of our authorities to protect victims and take the fight to our adversaries. Cybercrime seeks to exploit boundaries, but the Department of Justice’s network of alliances transcends borders and enables disruption of the criminal activity that jeopardizes our global cybersecurity.”

“Today's announcement demonstrates the FBI's commitment to dismantling technical infrastructure that enables cyber criminals and nation-state actors to illegally launder cryptocurrency funds,” said FBI Deputy Director Paul Abbate. “We will not allow cyber criminals to hide behind keyboards nor evade the consequences of their illegal actions. Countering cyber crime requires the ultimate level of collaboration between and among all law enforcement partners. The FBI will continue to elevate those partnerships and leverage all available tools to identify, apprehend, and hold accountable these bad actors and put an end to their illicit activity.”

According to court documents, ChipMixer – one of the most widely used mixers to launder criminally derived funds – allowed customers to deposit bitcoin, which ChipMixer then mixed with other ChipMixer users’ bitcoin, commingling the funds in a way that made it difficult for law enforcement or regulators to trace the transactions. As detailed in the complaint, ChipMixer offered numerous features to enhance its criminal customers’ anonymity. ChipMixer had a clearnet web domain but operated primarily as a Tor hidden service, concealing the operating location of its servers to prevent seizure by law enforcement. ChipMixer serviced many customers in the United States, but did not register with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and did not collect identifying information about its customers.

As alleged in the complaint, ChipMixer attracted a significant criminal clientele and became indispensable in obfuscating and laundering funds from multiple criminal schemes.  Between August 2017 and March 2023, ChipMixer processed:

• $17 million in bitcoin for criminals connected to approximately 37 ransomware strains, including Sodinokibi, Mamba and Suncrypt;

• Over $700 million in bitcoin associated with wallets designated as stolen funds, including those related to heists by North Korean cyber actors from Axie Infinity’s Ronin Bridge and Harmony’s Horizon Bridge in 2022 and 2020, respectively;

• More than $200 million in bitcoin associated either directly or through intermediaries with darknet markets, including more than $60 million in bitcoin processed on behalf of customers of Hydra Market, the largest and longest running darknet market in the world until its April 2022 shutdown by U.S. and German law enforcement;

• More than $35 million in bitcoin associated either directly or through intermediaries with “fraud shops,” which are used by criminals to buy and sell stolen credit cards, hacked account credentials and data stolen through network intrusions; and

• Bitcoin used by the Russian General Staff Main Intelligence Directorate (GRU), 85th Main Special Service Center, military unit 26165 (aka APT 28) to purchase infrastructure for the Drovorub malware, which was first disclosed in a joint cybersecurity advisory released by the FBI and National Security Agency in August 2020. 

Beginning in and around August 2017, as alleged in the complaint, Nguyễn created and operated the online infrastructure used by ChipMixer and promoted ChipMixer’s services online.  Nguyễn registered domain names, procured hosting services and paid for the services used to run ChipMixer through the use of identity theft, pseudonyms, and anonymous email providers. In online posts, Nguyễn publicly derided efforts to curtail money laundering, posting in reference to anti-money laundering (AML) and know-your-customer (KYC) legal requirements that “AML/KYC is a sellout to the banks and governments,” advising customers “please do not use AML/KYC exchanges” and instructing them how to use ChipMixer to evade reporting requirements. 

“ChipMixer facilitated the laundering of cryptocurrency, specifically Bitcoin, on a vast international scale, abetting nefarious actors and criminals of all kinds in evading detection,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Platforms like ChipMixer, which are designed to conceal the sources and destinations of staggering amounts of criminal proceeds, undermine the public’s confidence in cryptocurrencies and blockchain technology. We thank all our partners at home and abroad for their hard work in this case. Together, we cannot and will not allow criminals’ exploitation of technology to threaten our national and economic security.”

“Criminals have long sought to launder the proceeds of their illegal activity through various means,” said Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Field Office. “Technology has changed the game, though, with a site like ChipMixer and facilitator like Nguyen enabling bad actors to do so on a grand scale with ease. In response, the FBI continues to evolve in the ways we ‘follow the money’ of illegal enterprise, employing all the tools and techniques at our disposal and drawing on our strong partnerships at home and around the globe. As a result, there’s now one less option for criminals worldwide to launder their dirty money.”

“Together, with our international partners at HSI The Hague, we are firmly committed to identifying and investigating cyber criminals who pose a serious threat to our economic security by laundering billions of dollars’ worth of cryptocurrency under the misguided anonymity of the darknet,” said Special Agent in Charge Scott Brown of Homeland Securities Investigations (HSI) Arizona. “HSI Arizona could not be more proud to work alongside every agent involved in this complex international case. We thank all our domestic and international partners for their support.”

Nguyễn is charged with operating an unlicensed money transmitting business, money laundering and identity theft. If convicted, he faces a maximum penalty of 40 years in prison.

FBI, HSI Phoenix and HSI The Hague investigated the case.

The U.S. Attorney’s Office for the Eastern District of Pennsylvania is prosecuting the case. 

German law enforcement authorities took separate actions today under its authorities. The FBI’s Legal Attaché in Germany, the HSI office in The Hague, the HSI Cyber Crimes Center, the Justice Department’s Office of International Affairs, National Cryptocurrency Enforcement Team, EUROPOL, the Polish Cyber Police (Centralnego Biura Zwalczania Cyberprzestępczości) and Zurich State Police (Kantonspolizei Zürich) provided assistance in this case.

To report information about ChipMixer and its operators visit rfj.tips/Duhsup.

A criminal complaint is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Bill Omar Carrasquillo, 36 years old, of Swedesboro, NJ, was sentenced to 66 months’ imprisonment, five years of supervised release, more than $30 million in forfeiture, and more than $15 million in restitution by United States District Court Judge Harvey Bartle III, for crimes arising from a wide-ranging copyright infringement scheme that involved piracy of cable TV, access device fraud, wire fraud, money laundering, and hundreds of thousands of dollars of copyright infringement.  

As the Indictment set forth, from about March 2016 until at least November 2019, Carrasquillo along with his co-defendants operated a large-scale internet protocol television (IPTV) piracy scheme in which they fraudulently obtained cable television accounts and then resold copyrighted content to thousands of their own subscribers, who could then stream or playback content. The defendants also made fraudulent misrepresentations to banks and merchant processors in an effort to obtain merchant processing accounts. During the period of their scheme, the defendants earned more than $30 million. Carrasquillo, in particular, converted a large portion of his profits into homes and dozens of vehicles, including high-end sports cars. When agents attempted to seize those items pursuant to judicially-authorized warrants, Carrasquillo made false statements about and attempted to hide some of those vehicles, including a Freightliner recreational vehicle and a McLaren sports vehicle.

Carrasquillo was convicted of one count of conspiracy; one count of violating the Digital Millennium Copyright Act; 1 count of reproduction of a protected work; 3 counts of public performance of a protected work; 1 count of access device fraud; 1 count of wire fraud; 1 count of making false statements to a bank; 1 count of money laundering; 1 count of making false statements to law enforcement officers; and 1 count of tax evasion.

In addition to a sentence of 66 months’ imprisonment, the court ordered Carrasquillo to pay $10.7 million in restitution to the victim cable companies, more than $5 million in restitution to the IRS, and to forfeit over $30 million in illegal proceeds that he reaped from the scheme.

"Income gained from the infringement of copyrights is taken seriously, and the federal government will continue its commitment to protecting copyright holders, creators, and the millions of customers who enjoy the fruits of a strong intellectual property rights system," said U.S. Attorney Romero. "Carrasquillo and his co-defendants operated a large-scale cable piracy scheme. They fraudulently obtained cable television accounts and then resold copyrighted content to tens of thousands of subscribers across the country and abroad, earning over 30 million dollars in illicit revenue in about three years, none of which was reported on state or federal income tax return. Accordingly, today's sentencing of Omar Carrasquillo includes prison time and substantial forfeiture and restitution reflecting the severity of his actions."

“Making money off of someone else’s copyrighted work is theft, plain and simple,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Mr. Carrasquillo hijacked all of this content, sold it to his subscribers, and lived large off the illegal proceeds. Today’s sentence should send a message that willfully stealing another party’s intellectual property is a serious crime and the FBI is committed to holding violators accountable.”

“Whether obtained legally or illegally, all income must be reported,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. Carrasquillo took multiple steps to evade his tax liability, including attempting to hide the source of his ill-gotten gains by depositing them into bank accounts held in names other than his own. Thanks to the hard work of IRS-CI and its law enforcement partners, Carrasquillo has been held accountable for his criminal conduct.”

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation and is being prosecuted by Assistant United States Attorneys Matthew T. Newcomer and Sara A. Solow, and DOJ Computer Crime and Intellectual Property Section Trial Attorneys Adrienne Rose and Jason Gull. Special Assistant United States Attorney David Weisberg and Assistant United States Attorney Lauren Baer also assisted with the prosecution, forfeiture, and restitution.

PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero and announced today that Alexander Malave, 31, of Reading, Pennsylvania, co-founder and Top General of a gang he named the Sevens, was sentenced to lifetime imprisonment followed by a consecutive mandatory 10 years’ imprisonment.

Malave was one of 14 defendants charged with various offenses involving the violent acts of the Sevens gang, whose members represented other gangs such as the Gangster Disciples, Bloods, and Crips. Ten offenders pled guilty. Malave was convicted, along with Karvarise Person, 33; James Goode, 47 and Shaquile Newson, 29, by a jury on June 2, 2022, of offenses including conspiracy to participate in a racketeering enterprise; conspiracy to commit sex trafficking by force, fraud, and coercion, and of a minor; violent crime in aid of racketeering, including kidnapping and assault with a dangerous weapon; sex trafficking by force, fraud, or coercion; and discharging a firearm in the course of committing a violent offense - all arising from his leadership in in the “Sevens” gang, which took control over and operated out of a 50-room boarding house on South 4th Street in the City of Reading.

One trial witness testified that when the Sevens gang took over the boarding house, it was “like Russia invading Ukraine.” Malave was one of the gang’s most violence members. In the course of committing his violent offenses, he kidnapped, maimed, assaulted, imprisoned, and otherwise wreaked havoc and harm to those he encountered.  For example, during one vicious attack, Malave grabbed a man from behind and savagely used a knife to slice him from ear to ear, causing him excruciating pain and permanent disfigurement. After he was sliced and maimed, the man was kept locked naked in a closet for three days, provided no food or water, during which time the Sevens gang members kept watch and discussed who would kill him. During the course of the three days, the man was also subject to additional beatings. On another occasion, Malave shot another individual in an attempt to demonstrate the Sevens gang’s power and control over the boarding.

“Today’s sentencing ensures the permanent end of Malave’s reign of terror over the City of Reading and the demise of the Sevens gang,” said U.S. Attorney Romero. “We will continue to partner with our local counterparts to bring the resources necessary to investigate, prosecute and dismantle violent gangs.

The sentencing of the “Seven’s” leader, Alexander Malave, to a lifetime in federal prison should serve as a warning to criminal organizations that perpetuate violence and terrorize our communities,” said HSI Philadelphia Special Agent in Charge William S. Walker.  “HSI’s resolve to disrupt the abhorrent acts and to dismantle the criminal enterprises of gangs in order to restore safety to our community’s streets is and always will be absolute.”   

"This Gang and its members were responsible for despicable criminal acts in our community," said John T. Adams, Berks County District Attorney.   "Again, I would like to thank our Federal Partners for the collaborative effort with local authorities to dismantle this Criminal enterprise and for seeking Justice for the victims in this case. Hopefully, today's sentencing sends a message that this type of criminal conduct will not be tolerated in our community, and those that violate our Laws will receive significant penalties for their actions. "

“The sentencing of Alexander Malave to life in prison for his role as a leader in the Sevens gang will ensure that he will never again terrorize and prey on innocent victims like he did in the City of Reading,” said Reading Police Chief Richard A. Tornielli. “The Reading Police Department, with our partner law enforcement agencies, will continue to prioritize the investigation and dismantling of criminal organizations that conduct acts of violence in our city.  I want to thank Homeland Security Investigations and the US Attorney’s Office for their hard work and collaboration on this and other cases that will continue to make the City of Reading a safer place.”

The case was investigated by Homeland Security Investigations and the Reading Police Department and is being prosecuted by Assistant United States Attorneys Sherri A. Stephan and Justin Ashenfelter.

PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero announced that The Sherwin-Williams Company has agreed to pay $1 million to resolve False Claims Act allegations that it participated in a scheme to defraud the federal Disadvantaged Business Enterprise (DBE) program in connection with a contract to paint the George C. Platt Memorial Bridge in Philadelphia.

Governed by statutes and regulations, the DBE program provides opportunities for small businesses owned by socially and economically disadvantaged individuals to work on federally funded projects by requiring that government contracts set goals for DBE participation. A government contractor may claim credit toward a DBE goal only if a DBE serves a “commercially useful function” on the project. A DBE does not serve a commercially useful function, however, if it acts as a mere pass-through, or extra participant, through which funds are passed to create the appearance that historically disadvantaged businesses did the work.

According to the government’s investigation, this was precisely the case with the Platt Bridge project. In 2011, Hercules-Vimas Joint Venture, LLC was awarded a $42.7 million contract by the Pennsylvania Department of Transportation (PENNDOT) to paint the bridge. The contract, funded largely by the federal government, required that a percentage of work be performed by a DBE. To meet this requirement, Hercules-Vimas subcontracted with Vertech International, Inc., a DBE certified in Pennsylvania, to supply materials.

The government contends that this arrangement was a sham. While Hercules-Vimas represented to PENNDOT that Vertech was the paint supplier, the government alleges that it worked directly with Sherwin-Williams, a non-disadvantaged business, to deliver paint and materials to the project site. Vertech merely created invoices designed to conceal the fraud in exchange for a nominal fee.

In 2016, the owner of Vertech pleaded guilty to criminal charges associated with his role in the fraudulent scheme, as did a Hercules-Vimas principal in 2017. In addition, the government reached a $310,000 civil settlement of False Claims Act allegations against Hercules-Vimas in 2020.

According to the government, Sherwin-Williams’ liability as a third-party supplier arises from its knowing complicity with the fraudulent scheme. The government contends that Sherwin-Williams maintained the ordered supplies in storage and delivered them directly to Hercules-Vimas’s job site, then submitted invoices for payment of paint and supplies to Vertech, with knowledge and intent that Vertech would, in turn, create invoices on Vertech’s letterhead, adding a 1.75% mark-up (representing Vertech’s profit) and submit those invoices to Hercules-Vimas for payment. This scheme, the government believes, enabled Hercules-Vimas to submit a substantially lower bid than competing bidders on the Platt Bridge Project because, unlike Hercules-Vimas’s bid, competing bids included the reasonable market value for commercially useful functions performed by Disadvantaged Business Enterprises.

“Because of this scheme, legitimate disadvantaged business owners were deprived of the very opportunities the DBE program was designed to create,” said U.S. Attorney Romero. “Sherwin-Williams must be held accountable because, without its agreement, the scheme would not have worked.”

“Preserving the integrity of DBE programs by unraveling the layers of fraudulent activities in federally funded highway projects remains an important point of focus for our Office of Investigations,” said Christopher A. Scharf, Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General  Northeastern Region. “The significant financial settlement and compliance program reached today demonstrates our commitment to working with our law enforcement and prosecutorial partners on DBE schemes that adversely impact transportation programs in the Commonwealth of Pennsylvania and throughout the United States.”

The settled civil claims are allegations only. There has been no determination of civil liability. The investigation was conducted by the United States Department of Transportation Office of Inspector General and the United States Department of Labor Office of Inspector General. For the United States Attorney’s Office, Assistant United States Attorneys David Degnan, Eric Gill, and Bryan Hughes handled the investigation.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Darnell Jackson, a/k/a “Major Change,” 51, of Philadelphia, PA was convicted at trial of federal charges of murder-for-hire and possession of ammunition by a convicted felon.

The defendant orchestrated a murder-for-hire plot which stemmed from an ongoing state drug trafficking investigation. On Monday, July 19, 2021, and in the days immediately following, Jackson communicated with an individual via cell phone calls and text messages in an effort to arrange the killing of a different individual (the intended victim), sending a photo of the intended victim and indicating that he was willing to pay $5,000 to someone to commit the murder. Once the individual reported to the defendant that he had located the intended victim, they allegedly agreed that the killing would occur on the evening of Wednesday, July 21st.

That same evening, the individual called Jackson to report that the intended victim had been killed, but this was actually false. In response, the defendant replied that he was on his way to meet the individual in order to pay him for carrying out the murder. A few minutes later, Jackson was stopped by law enforcement while driving a vehicle in the vicinity of 65th Street & Guyer Avenue in Southwest Philadelphia. He was found in possession of a Glock-style Personally Manufactured Firearm (PMF or “ghost gun”) loaded with 16 live rounds of ammunition, and nowhere near the amount of $5,000. The defendant was immediately arrested and taken into custody pursuant to a Criminal Complaint.

“Every day, members of law enforcement agencies at all levels work tirelessly to prevent violent events from occurring in our city,” said U.S. Attorney Romero. “In this case, the work of the FBI and the Philadelphia Department of Police ensured the swift arrest and filing of a Criminal Complaint that stopped Darnell Jackson en route to an attempted murder plot.

“Darnell Jackson not only wanted his intended target dead, he was open to killing others in the process,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Given his lack of respect for human life, he belongs behind bars and that’s exactly where the jury’s verdict today will keep him. The FBI and Philadelphia Police Department are committed to working together and bringing all our resources to bear, to take violent criminals like Jackson off the street for the safety of all Philadelphians.”

The case was investigated by the Federal Bureau of Investigation – Philadelphia Field Office and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Andrew Wolf, age 42, of Philadelphia, PA, was sentenced today before United States District Court Judge Mark A. Kearney to 38 years and 10 months in prison, 5 years supervised release, $800 special assessment, $40,000 special assessment under the Justice for Victims of Trafficking Act, $150,000 in assessments under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act, and a $50,000 in fines for multiple child exploitation offenses in connection with his scheme to manipulate and catfish children online, including his own middle school students.

In February 2022, the defendant and an accomplice were indicted on charges of conspiracy to manufacture child pornography, along with several counts of manufacturing and attempted manufacturing of child pornography. These charges, to which Wolf pleaded guilty in June 2022, stem from conduct which occurred over a period of one year. Between May 2020 and October 2021, Wolf and his accomplice developed and carried out an elaborate online child exploitation catfishing scheme, in which they impersonated minor girls to entice their child victims to self-produce and send them sexually explicit images. As part of their scheme, Wolf provided identifying information for his own middle school students to his accomplice so that the accomplice could target them online.

“Our Office and our law enforcement partners are committed to holding child sexual predators accountable,” said U.S. Attorney Romero. “Today’s sentencing will never make the victims whole; however, it should serve as a reminder to all of us that an open line of communication and discussion with our youth about the ever-evolving dangers on the internet are another key component to keeping our youth safe”.

“Over several years, Timothy Gritman collected hundreds of thousands of dollars to which he knew he wasn’t entitled,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Needless to say, defrauding the government is a criminally bad idea and the FBI and our partners will continue to pursue anyone bold enough, and foolish enough, to do so.”

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Kelly Harrell.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Ramoine White, 39, of Upper Darby, PA, was convicted at trial of a single count of possession of a firearm by a felon.

On February 11, 2021, officers stopped White during a narcotics surveillance operation in the area of 5100 Arch Street in Philadelphia. Philadelphia Police Officers retrieved a Smith and Wesson, M&P, .40 caliber handgun loaded with 14 live rounds from White’s waistband. The defendant, who did not have a permit to carry that firearm, was also prohibited from possessing it due to his prior felony convictions which include possession with intent to distribute narcotics, aggravated assault, and firearms violations.

“This trial conviction exemplifies the ongoing commitment of the U.S. Attorney’s office to keep weapons out of the hands of people who are not permitted to possess them,” said U.S. Attorney Romero. “It is the partnerships and the hard work of our law enforcement partners that are critical in keeping our communities safe.”

“I want to congratulate our ICE ERO officers for their skill and dedication in tracking down this dangerous criminal,” said Enforcement and Removal Operations Philadelphia Field Office Director Cammilla Wamsley. “The interagency cooperation and professionalism of the officers and prosecutors led to the arrest of another person who threatens the safety of the American public.”

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 Department of Homeland Security - Enforcement and Removal Operations and is being prosecuted by Assistant United States Attorney MaryTeresa Soltis.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Timothy Gritman, 55, of Brodheadsville, PA pled guilty in U.S. District Court today to wire fraud and Social Security fraud for concealing the death of his father to steal his Social Security Administration Retirement Benefits ("SSA") and New York State pension benefits ("pension”) totaling approximately $204,985.

The defendant's father, Ralph Gritman, was 79 years old and in poor health in 2016 when he was last seen alive by relatives at defendant Gritman's Pennsylvania residence. In the summer of 2017, defendant Gritman relocated to Wyoming with his father. After that, the defendant posed as his dead father numerous times to continue receiving the SSA retirement benefits and the New York State pension.

Gritman obtained a Pennsylvania State identification card from the Department of Transportation Driver License Center in his father's name. Defendant Gritman was then photographed trying to disguise himself as an older man, holding the Pennsylvania State identification card he obtained of his father and appearing to use make-up to whiten his hair and eyebrows.

According to Medicare records, Ralph Gritman's health insurance was last used in September 2017 for an emergency visit to a Wyoming hospital. After that, his Medicare health benefits were never used again, but he was not reported deceased. Thus, his SSA and pension benefits continued to be paid to a joint account with the defendant. From approximately October 2017 to October 2022, defendant Gritman took Social Security and pension benefits intended for his father for his own personal use. While law enforcement has determined that Ralph Gritman is now deceased, his remains have not been found.

"Representing the United States in court means protecting taxpayer funds, including pursuing cases where there is an attempt to obtain money from the SSA fraudulently," said U.S. Attorney Romero. "Defendant Gritman physically represented himself as his elderly father to steal funds from the SSA. His guilty plea should serve as a warning that defrauding the SSA or any other government agency will never be worth money fraudulently obtained."

“Over several years, Timothy Gritman collected hundreds of thousands of dollars to which he knew he wasn’t entitled,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Needless to say, defrauding the government is a criminally bad idea and the FBI and our partners will continue to pursue anyone bold enough, and foolish enough, to do so.”

“Mr. Gritman’s admission holds him accountable for the intentional concealment of his father’s death to steal government funds for his personal gain,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank each agency for their investigative efforts, as well as the NYS Comptroller’s office for their work in this investigation, and the U.S. Attorney’s Office for prosecuting this case.”

“Timothy Gritman hid his father’s death to collect his pension and social security payments for more than four years, going so far as posing as his deceased father to keep his fraud going,” Thomas P. DiNapoli said. “Thanks to the work of my investigative team and our partners in law enforcement, he has been brought to justice. My office will continue to hold anyone who seeks to defraud the pension system accountable no matter who or where they are.”

“Timothy Gritman hid his father’s death to collect his pension and social security payments for more than four years, going so far as posing as his deceased father to keep his fraud going,” DiNapoli said. “Thanks to the work of my investigative team and our partners in law enforcement, he has been brought to justice. My office will continue to hold anyone who seeks to defraud the pension system accountable no matter who or where they are.”

The defendant faces a maximum possible sentence of 285 years' imprisonment, a three-year period of supervised release, a $3,750,000 fine, and a $1,500 special assessment.

The case was investigated by the FBI, 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.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Acia Moore, 20, of Philadelphia, PA, pleaded guilty today to two counts of attempted Hobbs Act robbery, one count of Hobbs Act robbery, and one count of carrying and using a firearm during the commission of a crime of violence. Moore and co-defendant, Omar White-Davis, 29, of Philadelphia, were charged by Indictment with these offenses in connection with multiple armed robberies of businesses in the Feltonville and Juniata sections of North Philadelphia, including Café Tinto restaurant on Wyoming Avenue, which was targeted twice in two days.

According to the Indictment, the defendants attempted to rob and did rob a variety of small businesses, both together and separately, stealing approximately $3,100 dollars total between November 21 and December 6, 2021. The incidents detailed are as follows:

• On November 21, 2021, White-Davis attempted to rob the Ariel Grocery, 2000 block of E. Pacific Street;
• On December 1, 2021, Moore robbed the Al-Molhem Store, 400 block of E. Wyoming Avenue;
• On December 2, 2021, White-Davis and Moore robbed Café Tinto, 100 block of E. Wyoming Avenue;
• On December 4, 2021, Moore returned to Café Tinto approximately 48 hours later and robbed it again;
• On December 6, 2021, Moore robbed the Leslie Mini Market, 4200 block of Bodine Street; and,
• Also on December 6, 2021, approximately an hour later, Moore and White-Davis attempted to rob the Hernandez Food and Deli Market, 4500 block of D Street. 

“These defendants robbed small local businesses in the Feltonville and Juniata neighborhoods," said U.S. Attorney Romero.  "They were so brazen that they targeted the same business twice in two days.  We will remain dedicated to making our neighborhoods safer, and to working with our local, state and federal partners to identify, investigate, apprehend, and prosecute violent individuals like these defendants."

“Moore and his co-defendant went on a crime spree, targeting neighborhood businesses six times in just over two weeks and threatening their victims at gunpoint to terrify them into compliance,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Now that they’ve admitted to their crimes, they'll be off the street and not able to menace innocent people who are just trying to make a living.”

After pleading guilty, Moore is set to be sentenced in April 10, 2023 before the Honorable Gerald A. McHugh.

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 is being prosecuted by Assistant United States Attorney Robert E. Eckert.

PHILADELPHIA – United States Attorney Jacqueline Romero announced that Emiliano Rodriguez, 45, a citizen of the Dominican Republic residing in Philadelphia, PA pleaded guilty to one count of trafficking in counterfeit goods, and two counts of causing the delivery of hazardous materials by air carrier in connection with a scheme to utilize counterfeit goods in used vehicles, which he then resold to unsuspecting customers.

From at least in or about January 2017 through on or about October 30, 2019, defendant Rodriguez, an auto mechanic, fraudulently imported airbags from China and installed these defective parts in salvaged autos which were then reintroduced to the consumer market. China has been identified as the largest exporter of counterfeit commodities, including counterfeit airbags. Persons involved in the trade of counterfeit airbags engage in this practice in an effort to increase profits from their sales by decreasing the costs of the parts used to replace the original items. Unsuspecting motorists purchase remanufactured vehicles unaware of the history or the substandard/defective part(s) used in the vehicle reconstruction. Once purchased and driven on public roads, the vehicles expose the driver, passengers and general public to the hazards associated with vehicle malfunctions due to the use of substandard parts. Some of these malfunctions may include tires prone to blow-outs, brakes unable to withstand the high temperatures associated with highway driving speeds, and airbags incapable of timely inflation or over-inflation that result in the death or serious injury of the driver or others exposed to the defective airbag. In this case, federal agents recovered more than 450 counterfeit airbags and parts from Rodriguez’s residence and business.

"Counterfeit airbags are playing Russian roulette with the lives of unsuspecting consumers," said U.S. Attorney Romero. "The National Highway Traffic Safety Administration notes that counterfeits have consistently been shown to malfunction. Emiliano Rodriguez peddled these airbags for profit, knowing lives would be at risk. Consumers must also be aware of the threat. Our office will continue to work with federal, state, and local law enforcement partners to keep these dangerous counterfeit products from being imported."

“Emiliano Rodriguez’s plea should serve as a potent warning that disreputable actors could circumvent our laws and safety protocols by using international commerce to obtain and install faulty, unsafe, and counterfeit equipment in order to make a profit,” said Special Agent in Charge of Homeland Security Investigations Philadelphia William S. Walker. “In all commercial transactions, we urge consumers to conduct their own research and only purchase from reputable dealers who have a verifiable track record of legal performance. The consequences of not doing so can be dire, including monetary losses or even the loss of life or limb.”

“Today’s announcement is a sober reminder that the safety of the public is put at grave risk when counterfeit airbags are illegally transported by air and later introduced into the market and cars traveling on our roads,” said Christopher A. Scharf, Special Agent in Charge, Department of Transportation Office of Inspector General, Northeastern Region. “As we continue working with our law enforcement and prosecutorial partners, we also encourage the public to review resources available at https://www.nhtsa.gov/equipment/air-bags#the-topic-fake-air-bags.” 

The defendant faces a maximum possible sentence of 10 years’ imprisonment, three years of supervised release, fines of $50,000, and a $200 special assessment. As a non-U.S. citizen, he also faces deportation.

The case was investigated by the Department of Homeland Security, Homeland Security Investigations and the Department of Transportation, and is being prosecuted by Assistant United States Attorney M. Beth Leahy.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that her Office, along with the United States Department of Education, Office for Civil Rights (“OCR”), in Philadelphia, hosted a panel presentation yesterday for disability rights organizations to discuss the problem of discrimination against children in public and private schools, camps, and childcare facilities, based on an autism spectrum diagnosis. The virtual event was attended by organizations that routinely work with families of children with disabilities.

The focus of the presentation was to inform the public of the efforts and enforcement tools of the United States Attorney’s Office and OCR to combat disability discrimination, with an emphasis on less-recognized and under-reported discrimination against children who have been diagnosed with autism.

The United States Attorney’s Office’s segment of the presentation focused on its primary tool to combat autism-based discrimination, the Americans with Disabilities Act (“ADA”). The Department of Justice enforces the ADA, which prohibits discrimination in a variety of settings because of disability. The presentation discussed the provisions of the ADA that apply to public and private schools, camps, and childcare facilities, and informed the public that these entities are required to comply with the ADA by providing disabled children with an equal opportunity to participate in programs, activities, and services.  

To assist the public with identifying potential autism-based discrimination, and increase reporting, several examples of allegations investigated or resolved by the Department of Justice were discussed, including situations where children with autism were denied enrollment, disenrolled, or treated differently than other children in schools, camps, and childcare facilities.

“Autism is a spectrum condition, meaning that each child has different needs and abilities. The ADA prohibits schools, camps, and childcare facilities, whether public or private, from making blanket denials of enrollment, services, or activities without conducting an individualized assessment of the needs of children with autism. Our Office is committed to combating autism-based discrimination by helping the public identify and understand the options for reporting such potential violations of the ADA,” said U.S. Attorney Romero.

U.S. Attorney Jacqueline C. Romero; Assistant United States Attorney Stacey L. B. Smith, from the Civil Division of the United States Attorney’s Office in Philadelphia; and Andrea DelMonte, an attorney with the United States Department of Education, Office for Civil Rights in Philadelphia, presented to the attendees.

The United States Attorney’s Office encourages anyone who believes their child is being discriminated against by public or private schools, camps, or childcare facilities based on autism to review Department of Justice guidance and resources provided at www.ADA.gov, where complaints may also be filed. Individuals in Philadelphia and the surrounding counties of Berks, Bucks, Chester, Delaware, Lancaster, Lehigh, Montgomery, and Northampton may also file a complaint with the United States Attorney’s Office directly at 615 Chestnut Street, Suite 1250, Philadelphia, PA 19106, ATTN: Lauren DeBruicker, Civil Rights Deputy Chief. She may also be emailed at [email protected] or [email protected]

Individuals may also contact OCR at [email protected] to discuss the Department of Education’s enforcement options detailed during the presentation.

PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero and announced that Karvarise Person, 33, of Reading, Pennsylvania, a member of the Gangster Disciples who “tied flags” with a gang called the “Sevens” in Reading and became one of its leaders, was sentenced to life imprisonment plus ten consecutive years’ imprisonment and ten years of supervised release.  James Goode, 47, also of Reading, a drug supplier and associate the “Sevens” in Reading, was sentenced to 37 years’ imprisonment and 10 years of supervised release.

If either is ever released from prison, they will also be required to register pursuant to the Sexual Offender Registration and Notification Act.

Both Person and Goode were convicted along with Shaquile Newson, 29 and Alexander Malave, 31, by a jury on June 2, 2022, of offenses including conspiracy to participate in a racketeering enterprise; conspiracy to commit sex trafficking by force, fraud, and coercion, and of a minor; various violent crimes in aid of racketeering offenses including kidnapping and assaults with dangerous weapons; sex trafficking including of minors; and firearms offenses; all arising from their membership and association in a violent gang called “The Sevens,” which took control and operated out of a 50-room boarding house on South 4th Street in the City of Reading. 

Person was a “general” in the Sevens gang, and trial evidence established that he was one of its most ruthless leaders. The Sevens operated primarily out of the boarding house. Person was one of 14 defendants charged with various offenses involving the violent acts of the gang, whose members represented other gangs such as the Gangster Disciples, Bloods, and Crips. One trial witness testified that when the Sevens gang took over the boarding house, it was “like Russia invading Ukraine.”

Person is the first of the gang members to be sentenced. In the course of his racketeering enterprise, he raped, robbed, caged, shot, violently beat, and caused others to do the same, under his command and leadership. Trial testimony described a shocking series of dehumanizing and violent acts. For example, victims were shot, assaulted with a baton, stabbed with a knife, and beaten with a hammer. A minor was forced to engage in a commercial sexual encounter while Person held a gun to her head; at other times, he also assaulted her with a baton and hammer and locked her naked in a dog kennel while he poked her with a knife through its bars.

Goode is the second member of the conspiracy to be sentenced. In the course of his racketeering enterprise, he distributed drugs, possessed multiple firearms, menaced a man and a woman with firearms, and raped a minor female and a woman at the boarding house.  Trial testimony described Goode’s attempts to recruit women for commercial sexual encounters by raping and then paying them, and then withholding drugs from them, all in an attempt to groom and coerce the victims into sex trafficking. In addition, Goode held a close relationship with Sevens members by working alongside them to sell drugs, participating in meetings led by the Sevens leadership, and recruiting women for commercial sex at the boarding house.  

“The demise of the Sevens gang was the result of the successful collaboration among local and federal authorities to dismantle a violent gang that terrorized the City of Reading,” said U.S. Attorney Romero. “We will continue to partner with our local counterparts to bring the resources necessary to dismantle violent gangs and restore peace and safety to the communities upon which they prey.”

“The Sevens gang inflicted depraved and unprecedented violence on its victims and on the communities of Reading. I hope today’s sentencing provides some solace and justice to those brutally victimized and exploited by the Sevens gang,” said HSI Philadelphia Special Agent in Charge William S. Walker.  “It has been HSI Philadelphia’s privilege to partner with the Reading Police Department and the United States Attorney’s Office to rid the community of this predatory gang and to make our communities safer in the process.”

“The acts of this gang were despicable,” said John T. Adams, Berks County District Attorney. “Thanks to the collaborative efforts of local and federal law enforcement authorities, this gang and its leader will most likely never be released from prison, nor should they be. Hopefully this investigation and the penalties imposed will serve as a deterrent to rid our community of this type of criminal activity from occurring again. For those who continue to engage in this insidious behavior we will continue to investigate and prosecute them to the fullest extent of the law.  I want to thank our federal partners for a job well done and we look forward to our continuing partnership to make our community a safe place to live.”

“The sentencing of Karvarise Person and James Goode was the result of a collaborative effort between the Reading Police Department and our partners in federal law enforcement,” said Reading Police Chief Torineilli.  “The crimes committed by the Sevens gang, both directed and perpetrated by Karvarise Person, are some of the most violent, horrific, and inhumane acts we have ever witnessed in our community. While any sentence cannot undue the horrors the victims of this gang were forced to endure, they and our community can be assured that Person and his gang will no longer be able to terrorize our community.”

Sevens associates Shaquile Newson and Alexander Malave are scheduled for sentencing in Spring 2023.

The case was investigated by Homeland Security Investigations and the Reading Police Department and is being prosecuted by Assistant United States Attorneys Sherri A. Stephan and Justin Ashenfelter.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Edward Burgess, 45, of Philadelphia, PA, was convicted at trial of a single count of possession of a firearm by a felon, arising from an investigation of an illegal speakeasy by the Pennsylvania State Police, Bureau of Liquor Control Enforcement (BLCE).

In June 2019, BLCE officers conducted undercover surveillance of a local lounge selling alcohol and tobacco products without a license. They witnessed defendant Edward Burgess acting as a manager of the lounge and entering areas designated as "employees only." Philadelphia Police officers then conducted a raid of the lounge premises. When the officers were escorting the defendant away from the crowd, he pulled a loaded firearm from his waistband and threw it behind him, where it struck one of the undercover BLCE officers in the leg. The officer alerted a Philadelphia Police officer, who was able to retrieve the firearm. Defendant Burgess was previously convicted of a felony offense and is prohibited from possessing a firearm.

"Today's conviction at trial is a step forward to a safer Philadelphia," said U.S. Attorney Romero. "This case is an example of our close working relationship with our local and state partners to use federal criminal charges to make the community safer.”

“The outcome of this prosecution sends a positive message to the community on ATF’s commitment to keeping the public safe from firearms violence,” said Eric DeGree, Special Agent in charge of ATF’s Philadelphia Field Division.  “Keeping our communities safe from violent felons like this will always be our top priority.  This outcome highlights the value of the collaborative effort with our local, state, and federal partners to reduce 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Anthony Carissimi and Bea Witzleben.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that William Merlino, 85, of Mays Landing, NJ, entered a plea of guilty before United States District Court Judge Gerald A. McHugh on one count of obstruction of justice, arising from his creation and submission of false and fictitious medical records and doctor’s letters, and causing them to be submitted to the District Court, in an effort to keep him from having to stand trial on separate felony charges.

In August 2021, Merlino was under indictment and awaiting trial on a felony misbranding charge for selling a toxic chemical as a weight-loss drug online.  Merlino faked a diagnosis of pancreatic cancer and caused fraudulent submissions to the trial court, by altering a doctor’s letters and altering legitimate medical records. The misbranding trial was postponed for months until the documents were discovered to be falsified.  In August, 2022, Merlino was convicted at trial of selling misbranded drugs online, arising from his scheme to sell the toxic industrial chemical DNP as a weight-loss drug which he manufactured in a lab in his home. 

Merlino is scheduled to be sentenced on both the obstruction charge and the misbranding trial conviction on March 16, 2023.

"Dr. Merlino submitted fraudulent medical records and letters claiming to have pancreatic cancer in an effort to avoid trial for selling misbranded drugs online," said U.S. Attorney Romero. "Obstructing justice to dodge the judicial process with claims of such a deadly cancer is particularly egregious."

“The distribution of unapproved and dangerous drugs puts consumers’ health at risk,” said Special Agent in Charge George A. Scavdis, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to pursue and bring to justice those who jeopardize the public health.”

The cases were investigated by U.S. Food & Drug Administration Office of Criminal Investigations, U. S. Postal Inspection Service, and Homeland Security Investigations (HSI) Atlantic City under the HSI Newark office and are being prosecuted by Assistant United States Attorney Joan Burnes.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today the unsealing of a sweeping 42-count indictment charging defendants Bhaskar Savani (56), Arun Savani (55), Niranjan Savani (51), Amen Dhyllon (45), Alesksandra Radomiak (44) - all of Montgomery County; and Sunil Phillip (56) of Bucks County, with a conspiracy under the Racketeering Influenced and Corrupt Organizations Act, or RICO as it is commonly called, alleging racketeering activity involving visa fraud, under 18 U.S.C. § 1546, related to a scheme to file false applications and petitions for H-1B visas; wire fraud, under 18 U.S.C. § 1343, related to a health care fraud scheme to fraudulently obtain Medicaid contracts and fraudulently bill Medicaid; money laundering, under 18 U.S.C. §§ 1956 and 1957, related to the laundering of the health care fraud proceeds; wire fraud, under 18 U.S.C. § 1343, related to a scheme to file false tax returns; and mail fraud, under 18 U.S.C. § 1341, related to the distribution and placement in human patients of prototype “Not For Human Use” dental implants that were not cleared by the U.S. Food and Drug Administration.

Bhaskar, Arun and Niranjan Savani, and defendants Vivek Savani (35), Bharatkumar Parasana (55), and Hiteshkumar Goyani (29), also of Montgomery County, PA and Piyusha Patel (41), a resident of Iowa, were charged with conspiracy to commit visa fraud, in violation of 18 U.S.C. § 371. Bhaskar, Arun and Niranjan Savani, and Piyusha Patel were charged with visa fraud.

 Bhaskar and Arun Savani, and defendant Susan Malpartida (26) of Passaic County, NJ were charged with conspiring to obstruct a grand jury investigation.

Bhaskar, Arun and Niranjan Savani, Amen Dhyllon and Aleksandra Radomiak were charged with conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349, and various counts of health care fraud, in violation of 18 U.S.C. § 1347.

Bhaskar and Arun Savani, Sunil Philip and Amen Dhyllon were charged with conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h). Bhaskar and Arun Savani were charged with various counts of money laundering, in violation of 18 U.S.C. §§ 1956 and 1957.

Bhaskar, Arun and Niranjan Savani and Sunil Philip were charged with a conspiracy to defraud the United States Treasury, in violation of 18 U.S.C. § 371, and wire fraud, in violation of 18 U.S.C. § 1343, for a scheme to file false tax returns.

Bhaskar and Niranjan Savani and defendant Jon Julian of South Carolina (70) were charged in a conspiracy to distribute adulterated and misbranded dental implants, in violation of 18 U.S.C. § 371.

As alleged in the indictment, the Savani brothers built a complex criminal enterprise (the “Savani Group”) that amassed millions of dollars through multiple fraud schemes. Bhaskar and Niranjan Savani were dentists by training. Defendant Arun Savani generally controlled the finances of the Savani Group. Through their criminal enterprise, the Savani brothers orchestrated long-running schemes to enrich themselves, including through:

• A visa fraud scheme to file false H-1B visa applications and petitions with the U.S. Department of Labor, U. S. Citizenship and Immigration Services, and the U.S. Department of State to exploit a workforce comprised of foreign nationals, mostly from India, who were dependent on the Savani Group, were forced to kickback wages and fees to the Savani Group.
• A health care fraud scheme to fraudulently obtain Medicaid contracts and fraudulently bill Medicaid using myriad of business entities and nominee business owners after Savani Group dental practices were terminated from Medicaid insurance contracts. The Savani Group defrauded Medicaid of more than $80 million through the scheme.
• A money laundering scheme to launder health care fraud proceeds through a complex web of financial transactions using numerous bank accounts at various banks.
• A wire fraud scheme involving false business expenses and the failure to report some taxable payroll to fraudulently decrease the amount of personal and payroll taxes due and owing. Through the scheme the Savani brothers and their companies failed to pay approximately $2 million in personal and payroll taxes, and fraudulently expensed through their businesses, among other personal expenses, improvements on a vacation property; payments to an elite private college preparatory school; college tuition payments; and car payments for personal cars of family members.
• A mail fraud scheme involving Osseolink USA LLC to place prototype “Not For Human Use” dental implants, not cleared by the U.S. Food and Drug Administration, in human patients without their knowledge or consent. Dental practices alleged to be involved in this scheme include AAA Signature Smile PC in Fort Washington, PA, and The Dental Retreat in Travelers Rest, SC.

If convicted, Bhaskar, Arun and Niranjan Savani, respectively, face a statutory maximum sentence of 430 years’ imprisonment, 425 years’ imprisonment, and 115 years’ imprisonment. Bhaskar and Arun Savani face fines of $10,750,000, and Niranjan Savani faces fines of $2,750,000. Other members of the RICO conspiracy face substantial sentences. Defendant Sunil Philip faces up to 105 years’ imprisonment and fines of $1,750,000; defendant Amen Dhyllon faces 110 years’ imprisonment and fines of approximately $2,500,000; and defendant Aleksandra Radomiak faces 50 years’ imprisonment and fines of approximately $1,000,000. The other defendants also face imprisonment and fines, as follows: defendants Vivek Savani, Bharatkumar Parasana, and Hiteshkumar Goyani each face 5 years’ imprisonment and fines of approximately $250,000 for their roles in the visa fraud conspiracy; Piyusha Patel faces 15 years’ imprisonment and a $500,000 fine for her visa fraud crimes; and defendants Jon Julian and Susan Malpartida each face 5 years’ imprisonment and fines of approximately $250,000 for conspiring to distribute adulterated and misbranded dental implants and obstruction of justice, respectively.

“This complex, multi-year investigation is an example of federal law enforcement at its best,” said U.S. Attorney Jacqueline Romero. “Through the coordinated efforts of almost a dozen state and federal law enforcement agencies, the United States Attorney’s Office for the Eastern District of Pennsylvania, the Money Laundering and Asset Recovery Section and Organized Crime and Gang Section of the Department of Justice, this group of dedicated public servants unraveled a tangled and complex web of alleged criminal activity designed to thwart justice. Through the unyielding work of all our law enforcement partners we were able to bring these charges and now will seek to hold persons accountable for these crimes.”

“Fraud and abuse take critical resources out of our healthcare system and cost taxpayers tens of billions of dollars each year,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI has been working alongside our state and federal partners on this investigation, we’re proud of the collaboration that’s led to these charges, and we’ll continue our joint efforts to hold anyone fleecing the U.S. government accountable.”

“Health care providers, who have a duty to practice in their patients’ best interests, are especially deceitful when they commit Medicaid fraud,” stated Special Agent in Charge Maureen R. Dixon with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “To assist in investigating the alleged illicit activity announced in today’s takedown, agents at HHS-OIG employed our suite of data analytics tools to identify and examine concerning trends. We will continue to work tirelessly with our partners to detect, investigate, and deter deception that jeopardizes the integrity of federal health care programs and services.”

“Criminal charges like the ones outlined in this indictment underscore the financial expertise and diligence of the IRS-CI special agents, who worked side-by-side with other federal law enforcement officers and the United States Attorney’s Office, to uncover these schemes and bring these charges against these defendants,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty.

“The synchronized efforts of the diligent investigators and prosecutors who teamed together on this years-long investigation have been extraordinary,” said William S. Walker, Special Agent in Charge of HSI’s Philadelphia office. “One of HSI’s primary missions is to detect and dismantle criminal organizations who exploit financial systems to fuel their greedy endeavors. Results like those obtained through these indictments are only realized through teamwork and information sharing. Without the dedication and tireless work of the multiple agencies involved in this investigation, this fraudulent conspiracy might still be active today.”

“This is a perfect illustration of DSS’ global reach with our network of DSS agents and investigative teams at U.S. embassies and consulates worldwide, and our skill in uncovering larger criminal enterprises while investigating visa fraud allegations,” said Mike Escott, Resident Agent in Charge at the DSS Philadelphia Resident Office. “When a United States-based business engages in a conspiracy to commit visa fraud to illegally bring workers to the United States to exploit that labor, DSS partners with our allies to bring them to justice, protecting American

“FDA takes seriously the requirement that devices have the proper approval or clearance before being introduced into interstate commerce,” said Special Agent in Charge George A. Scavdis, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to pursue those who skirt these requirements and jeopardize the public health.”

“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to the foreign labor certification programs administered by the U.S. Department of Labor,” stated Syreeta Scott, Special Agent in Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to investigate these types of allegations.”

The case was investigated by the following agencies: the Federal Bureau of Investigation; Health and Human Services-Office of Inspector General; Internal Revenue Service-Criminal Investigations Division; Homeland Security Investigations; the U.S. Department of State’s Diplomatic Security Service; U.S. Food and Drug Administration-Office of Criminal Investigations; Department of Labor-Office of Inspector General; Pennsylvania Office of Attorney General; and State of Iowa Medicaid Fraud Control Unit.

The case is being prosecuted by Assistant United States Attorneys Lesley Bonney, Kevin Jayne, and Meaghan Flannery, and Department of Justice Money Laundering Section Attorneys Darrin McCollough, Senior Policy Advisor, and Colin Trundle, Trial Attorney. The asset seizure and forfeiture is being prosecuted by Assistant United States Attorney Sarah Grieb.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

Multiple dental practice owners and co-conspirators were charged in the Eastern District of Pennsylvania for allegedly engaging in a multifaceted racketeering conspiracy through a multi-state network of dental practices and related dental businesses.

On Jan. 18, a federal grand jury returned an indictment charging 12 individuals with operating and participating in a series of dental practices and related companies (the Savani Group) that engaged in visa fraud, health care fraud, wire fraud involving federal tax evasion, and money laundering. Six of the defendants were charged with being part of a racketeer influenced corrupt organization (RICO) conspiracy based on their roles in the Savani Group, and three defendants were also charged with obstruction of justice.

According to court documents, the defendants were allegedly part of a wide-ranging scheme to defraud Medicaid, U.S. Immigration authorities, the IRS, and the Food and Drug Administration (FDA), and to launder the fraud proceeds. Bhaskar Savani, 57, and Niranjan Savani, 51, both of Maple Glenn, Pennsylvania and both licensed dentists, owned and controlled the Savani Group dental practices. Arun Savani, 55, of Blue Bell, Pennsylvania, owned and managed the Savani Group companies and was responsible for the Savani Group’s financial affairs. The three brothers – Bhaskar, Niranjan, and Arun – allegedly conspired to recruit foreign workers for U.S. work visas while concealing the workers’ true job titles and responsibilities. 

Sunil Philip, 57, of Newton, Pennsylvania, was an outside accountant for the Savani Group and personal accountant of Bhaskar, Arun, and Niranjan Savani. Philip, along with Bhaskar, Arun, and Niranjan Savani, allegedly engaged in a wire fraud scheme to evade federal taxes.

Amen Dhyllon, 44, of Wynnewood, Pennsylvania, was a licensed dentist for the Savani Group. Aleksandra Radomiak, 45, of Lansdale, Pennsylvania, was an employee and dental practice manager of the Savani Group. Dhyllon and Radomiak, along with Bhaskar, Arun, and Niranjan Savani, allegedly executed a scheme to use nominee owners of “on paper” dental practices to obtain and continue to profit from Medicaid contracts after managed care companies terminated the Savani Group dental practices’ Pennsylvania Medicaid contracts.

Jon Julian, 70, of South Carolina, was a licensed dentist for the Savani Group. Along with Bhaskar and Niranjan Savani, Julian allegedly conspired to place adulterated and misbranded dental devices in U.S. commerce. 

Vivek Savani, 35, Bharatkumar Parasana, 55, and Hiteshkumar Goyani, 39, all of North Wales, Pennsylvania; and Piyusha Patel, 41, of Ankenny, Iowa, were employed under the H1B visa program under the pretense of serving in specialty occupations for the Savani Group but actually performed office support roles for the Savani Group’s dental practices.

Susan Malpartida, 27, of Passaic, New Jersey, served in an office support function and allegedly obstructed the investigation when she made false statements about a Savani Group employee’s job function.

The defendants and their charges:

Name

Charges

If convicted, each defendant faces maximum imprisonment of:

Bhaskar Savani

Conspiracy to commit racketeering, conspiracy to commit visa fraud, visa fraud, conspiracy to obstruct justice, conspiracy to commit health care fraud, health care fraud, money laundering conspiracy, money laundering, conspiracy to defraud the United States Treasury, wire fraud, and conspiracy to distribute an adulterated and misbranded medical device in interstate commerce.

Racketeering Conspiracy: (20 years)

Conspiracy to Commit Visa Fraud: (5 years)

Visa Fraud: (10 years)

Conspiracy to Obstruct Justice: (5 years)

Conspiracy to Commit Health Care Fraud: (10 years)

Health Care Fraud: (120 years)

Money Laundering Conspiracy: (20 years)

Money Laundering: (210 years)

Conspiracy to Defraud the United States Treasury: (5 years)

Wire Fraud: (20 years)

Conspiracy To Distribute an Adulterated and Misbranded Medical Device in Interstate Commerce: (5 years)

Arun Savani

Conspiracy to commit racketeering, conspiracy to commit visa fraud, visa fraud, conspiracy to obstruct justice, conspiracy to commit health care fraud, health care fraud, money laundering conspiracy, money laundering, conspiracy to defraud the United States Treasury, and wire fraud.

Racketeering Conspiracy: (20 years)

Conspiracy to Commit Visa Fraud: (5 years)

Visa Fraud: (20 years)

Conspiracy to Obstruct Justice: (5 years)

Conspiracy to Commit Health Care Fraud: (10 years)

Health Care Fraud: (120 years)

Money Laundering Conspiracy: (20 years)

Money Laundering: (210 years)

Conspiracy to Defraud the United States Treasury: (5 years)

Wire Fraud: (20 years)

Niranjan Savani

Conspiracy to commit racketeering, conspiracy to commit visa fraud, visa fraud, conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States Treasury, wire fraud, and conspiracy to distribute an adulterated and misbranded medical device in interstate commerce.

Racketeering Conspiracy: (20 years)

Conspiracy to Commit Visa Fraud: (5 years)

Visa Fraud: (20 years)

Conspiracy to Commit Health Care Fraud: (10 years)

Health Care Fraud: (30 years)

Conspiracy to Defraud the United States Treasury: (5 years)

Wire Fraud: (20 years)

Conspiracy To Distribute an Adulterated and Misbranded Medical Device in Interstate Commerce: (5 years)

Sunil Philip

Conspiracy to commit racketeering, money laundering conspiracy, conspiracy to defraud the United States Treasury, and wire fraud.

Racketeering Conspiracy: (20 years)

Money Laundering Conspiracy: (20 years)

Conspiracy to Defraud the United States Treasury: (5 years)

Wire Fraud: (60 years)

Amen Dhyllon

Conspiracy to commit racketeering, conspiracy to commit health care fraud, health care fraud, and money laundering conspiracy.

Racketeering Conspiracy: (20 years)

Conspiracy to Commit Health Care Fraud: (10 years)

Health Care Fraud: (80 years)

Money Laundering Conspiracy: (20 years)

Aleksandra Radomiak

Conspiracy to commit racketeering, conspiracy to commit health care fraud, and health care fraud.

Racketeering Conspiracy: (20 years)

Conspiracy to Commit Health Care Fraud: (10 years)

Health Care Fraud: (20 years)

Jon Julian

Conspiracy to place adulterated and misbranded dental devices in commerce.

Conspiracy To Distribute an Adulterated and Misbranded Medical Device in Interstate Commerce: (5 years)

Vivek Savani

Conspiracy to commit visa fraud.

Conspiracy to Commit Visa Fraud: (5 years)

Bharatkumar Parasana

Conspiracy to commit visa fraud.

Conspiracy to Commit Visa Fraud: (5 years)

Hiteshkumar Goyani

Conspiracy to commit visa fraud.

Conspiracy to Commit Visa Fraud: (5 years)

Piyusha Patel

Conspiracy to commit visa fraud and visa fraud.

Conspiracy to Commit Visa Fraud: (5 years)

Visa Fraud: (10 years)

Susan Malpartida

Conspiracy to obstruct justice.

Conspiracy to Obstruct Justice: (5 years)

Bhaskar, Arun, and Niranjan Savani, Sunil Phillip, and Aleksandra Radiomak made their initial court appearances on Jan. 20 in the Eastern District of Pennsylvania.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania made the announcement.

The FBI, Homeland Security Investigations, IRS Criminal Investigation, U.S. Department of State Diplomatic Security Service, Department of Health and Human Services Office of the Inspector General, FDA, Department of Labor Office of the Inspector General, Pennsylvania Office of the Attorney General, Iowa Medicaid Fraud Control Unit, and Federal Aviation Administration are investigating the case.

Senior Policy Advisor Darrin L. McCullough and Trial Attorney Colin W. Trundle of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Leslie S. Bonney, Meaghan A. Flannery, Sarah L. Grieb, and Kevin L. Jayne for the Eastern District of Pennsylvania are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that William McCandless, age 59, of Elkton, Maryland, a former DeSales University priest, was sentenced to 37 months’ imprisonment followed by 15 years of supervised release. He is also required to register pursuant to the Sexual Offender Registration and Notification Act.

On May 27, 2022, McCandless pleaded guilty to access and attempted access with intent to view child pornography. In 2017, McCandless searched for images of young boys and accessed over 3000 web pages depicting and offering child sex abuse images. He also accessed dozens of stories which graphically detailed and described the sexual torture of young boys.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

“Those in positions of power and trust should never put the safety of our children in peril,” said U.S. Attorney Romero. “The actions taken by the defendants in Project Safe Childhood cases cause trauma and heartache for the victims and their families. Our office will continue pursuing these cases to help ensure our communities are safe.”

“For a priest and university faculty member to violate his position of trust by engaging in the depraved activity for which he previously pled guilty is reprehensible,” said William S. Walker, Special Agent in Charge for HSI Philadelphia. “Homeland Security Investigations and our law enforcement partners around the world will continue to coordinate closely to ensure our communities are protected from child predators who exploit vulnerable victims.”

The case was investigated by Homeland Security Investigations and the High Technology Investigative Unit of the Department of Justice’s Child Exploitation and Obscenity Section and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Yutong Zhang, 64, of Berwyn, PA, a physician, was sentenced to two years in prison, and three years of supervised release by United States District Court Judge Michael M. Baylson for operating a pain management medical practice in St. Davids, PA, as a “pill mill.”

In February 2022, the defendant pleaded guilty to an Information charging four counts of distributing oxycodone-containing medications outside of the usual course of professional practice and for no legitimate medical purpose. From approximately 2016 through 2020, Zhang sold medically unnecessary prescriptions for oxycodone and other controlled substances to about 120 so-called patients, who were actually cash-paying customers. The defendant frequently supplied these prescriptions after conducting only a cursory physical examination or without any examination at all, and did not take steps, such as ordering diagnostic testing, designed to discern the root cause of the pain reportedly suffered by patients.

In a separate but related civil settlement, the U.S. Attorney’s Office and Zhang agreed to resolve his civil penalty liability under the Controlled Substances Act.  Zhang agreed to pay $715,000 in civil penalties for his controlled substance prescribing. The civil settlement also permanently prevents Zhang from ever prescribing controlled substances.

“The U.S. Attorney’s Office is committed to fighting the opioid epidemic on all fronts, including prosecuting drug dealers who happen to have a medical degree,” said U.S. Attorney Romero. “As a physician, Yutong Zang was certainly aware of the inherently dangerous nature of the drugs he was selling, but he chose to profit from sales of prescriptions, instead of providing genuine medical treatment. His actions kept addicted customers returning to his office, contributing to the opioid crisis on the streets of Philadelphia.”

“Today we see yet another local physician going to prison for pushing powerful pills to addicts,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “We see a waste of all that education and experience, and we see a monstrous ethical lapse. Zhang and other doctors who deal oxycodone to anyone who can pay for it are directly fueling the opioid crisis and its mounting human toll here. The FBI is committed to holding accountable medical professionals who choose to throw away their oath and get involved in this dangerous drug diversion.”  

“Dr. Zhang demonstrated a complete and utter disregard of his medical oath as a doctor by prescribing powerful prescription painkillers for no legitimate purpose and for profit only,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “In addition to his federal prison sentence, Dr. Zhang will have to pay a $715,000 civil penalty fine and is prohibited from ever prescribing controlled substances again.” 

“As a physician, Dr. Zhang was trusted to care for his community,” said Acting Attorney General Michelle Henry. “He violated that trust by prescribing highly addictive drugs that fuel the opioid crisis throughout Pennsylvania. We will hold any individual, including health care professionals, accountable when they recklessly put the lives of others at risk."

“We are pleased to shut down this illegal operation within our community,” said Radnor Township Police Superintendent Chris Flanagan. “These ‘pill mills’ effect everyone involved; the user, their friends and their families. Over time they truly ruin lives. The teamwork from the F.B.I., U.S. Attorney’s Office, P.A. Attorney General Task Force Members, and Delaware County D.A., was instrumental to bring this case to prosecution.  We encourage those struggling with drug addiction to seek support from the many free resources where they live. Please report “pill mills” or other drug activities to your local authorities so action can be taken."

The case was investigated by the Radnor Police Department, the Pennsylvania Office of the Attorney General, the Federal Bureau of Investigation, and the the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. The criminal case is being prosecuted by Assistant United States Attorney Elizabeth Abrams, and the civil settlement was handled by Assistant United States Attorney Anthony D. Scicchitano.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Anthony Lombardo, 44 of Bristol, PA has been charged by criminal complaint and warrant with attempting to murder and forcibly assault, intimidate, and interfere with, a federal law enforcement officer. Lombardo remains hospitalized and in federal custody.

This case is being investigated by the FBI’s Philadelphia Division and the United States Marshals Service.  It is being prosecuted by Assistant U.S. Attorney Justin Ashenfelter.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that Matthew Swartz, 50, of Fairmount, West Virginia, was sentenced to 15 month’s imprisonment, three years of supervised release, and ordered to pay $486,000 in restitution to the U.S. Department of Treasury.

In November 2020, the defendant pleaded guilty before United States District Court Judge Timothy J. Savage to failing to pay employee withholding taxes to the IRS from his employees’ taxes in 2014.  Swartz, the owner of a group of Philadelphia area restaurants operating as the Grainery Group, was personally responsible for preparing the payroll for the company. As part of that responsibility, he prepared payroll stubs for employees that represented that taxes had been withheld from their pay and paid over to the IRS. In fact, Swartz did not pay to the IRS the taxes he withheld from the employee’s pay. As part of a plea agreement, Swartz acknowledged that he had failed to pay over withholding for the years 2011, 2012 and 2013, in addition to the charged conduct in the 2014 tax year.

The case was investigated by the Internal Revenue Service – Criminal Investigations and is being prosecuted by Assistant United States Attorney Richard Barrett.

PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero announced that Jaire Chance, 27, of Philadelphia, has agreed to a consent judgment of $100,399, and Robert Day, 42, of Center Valley, Lehigh County, has agreed to a consent judgment of $110,610 to resolve allegations that they violated the False Claims Act by improperly seeking Pandemic Unemployment Assistance (PUA) benefits when they were employed by the United States Postal Service. 

The United States alleges that Chance and Day made materially false and fraudulent statements to the Pennsylvania Department of Labor and Industry to obtain PUA benefits, meant for individuals not eligible for regular unemployment compensation or extended unemployment benefits. In fact, both were working full-time for the United States Postal Service for most or all of the time they were receiving PUA benefits. During that time, Day was also earning income as a driver using the Uber mobile application to arrange work. Further details regarding the United States’ allegations regarding conduct by Chance and Day can be found in the complaints filed in federal court, United States v. Jaire Chance, U.S.D.C. E.D. Pa. No. 2:22-cv-4626, and United States v. Robert Dean Day, U.S.D.C. E.D. Pa. No. 5:22-cv-4736.

“There is no excuse for any individual who fraudulently obtains money set aside to help victims of the COVID-19 pandemic,” said U.S. Attorney Romero. “The fraud alleged in this case is particularly egregious as it was perpetrated by a federal employee. The United States Attorney’s Office is ready to investigate and bring to justice any individual who abuses emergency assistance in this way.”

“It is alleged in the settlement agreements filed in court that Jaire Chance and Robert Day submitted weekly certifications, which falsely represented they were unemployed due to the COVID-19 pandemic, to the Pennsylvania Department of Labor and Industry’s Pandemic Unemployment Assistance (PUA) program. In actuality, they were employed full-time by the U.S. Postal Service for all or a majority of the period that they submitted the certifications. The submission of those certifications resulted in Chance and Day receiving PUA benefit payments that they were not eligible to receive. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to safeguard unemployment compensation benefit programs,” said Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

“The majority of postal employees are hard-working public servants dedicated to moving the mail to its proper destination. Unfortunately, Day and Chance betrayed this public trust when applying for unemployment benefits. The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the United States Postal Service,” stated Jeffrey E. Krafels, Special Agent-in-Charge of the Mid Atlantic Area Field Office, United States Postal Service Office of Inspector General.

This investigation was conducted by United States Attorney’s Office for the Eastern District with investigators from the United States Postal Service Office of Inspector General and United States Department of Labor Office of Inspector General. Assistant United States Attorneys Paul W. Kaufman and Isaac J. Jean-Pierre handled the investigation and consent resolution.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

PHILADELPHIA – U.S. Attorney Jacqueline C. Romero, together with Associate Attorney General for the Department of Justice Vanita Gupta, U.S. Attorneys for the Districts of New Jersey, Colorado and Eastern New York, and representatives from the DEA and Justice Department’s Civil Division’s Consumer Protection Branch, announced that the Department of Justice filed a civil complaint today alleging that AmerisourceBergen Corporation and two of its subsidiaries, AmerisourceBergen Drug Corporation and Integrated Commercialization Solutions, LLC (together “AmerisourceBergen”), collectively one of the country’s largest wholesale pharmaceutical distributors and one of the largest companies in America by revenue, violated federal law in connection with the distribution of controlled substances to pharmacies and other customers across the country, thereby contributing to the prescription opioid epidemic.

The complaint alleges that this unlawful conduct resulted in at least hundreds of thousands of violations of the Controlled Substances Act (CSA). The Justice Department seeks civil penalties and injunctive relief.

“Companies like AmerisourceBergen that sell controlled substances across the country have a significant responsibility to ensure that their product is handled appropriately and that they comply with their federal legal obligations,” said U.S. Attorney Romero. “The allegations against AmerisourceBergen are disturbing, especially for a company that is headquartered only a few miles from neighborhoods in Philadelphia devastated by the opioid epidemic. This lawsuit sends a strong message to the community that companies who fail to comply with their controlled substance legal obligations will be held accountable.”

“The Department of Justice is committed to holding accountable those who fueled the opioid crisis by flouting the law,” said Associate Attorney General Vanita Gupta. “Companies distributing opioids are required to report suspicious orders to federal law enforcement. Our complaint alleges that AmerisourceBergen—which sold billions of units of prescription opioids over the past decade—repeatedly failed to comply with that requirement.”

“AmerisourceBergen, one of the largest wholesale distributors of opioids in the world, had a legal obligation to report suspicious orders to the Drug Enforcement Administration, and our complaint alleges that the company’s repeated and systemic failure to fulfill this simple obligation helped ignite an opioid epidemic that has resulted in hundreds of thousands of deaths over the past decade,” said DEA Administrator Anne Milgram. “The men and women of the DEA will stop at nothing to hold accountable registrants that fail to uphold their responsibility of saving American lives by filing suspicious order reports.”

Pharmaceutical distributors that sell controlled substances, including AmerisourceBergen, have a longstanding legal obligation to monitor the orders that they receive from pharmacies and other customers and must inform the Drug Enforcement Administration (DEA) each and every time they receive a suspicious order.

The complaint filed in the U.S. District Court for the Eastern District of Pennsylvania alleges that over the course of nearly a decade, from 2014 through the present, AmerisourceBergen violated the CSA by failing to report at least hundreds of thousands of suspicious orders of controlled substances to the DEA as required by law. The alleged unlawful conduct includes filling and failing to report numerous orders from pharmacies that AmerisourceBergen knew were likely facilitating diversion of prescription opioids. Today’s filing is the result of a multi-year investigation by the DEA, the Civil Division’s Consumer Protection Branch and several U.S. Attorneys’ Offices.

“For years, AmerisourceBergen put its profits from opioid sales over the safety of Americans” U.S. Attorney for the District of New Jersey Philip R. Sellinger said. “According to the Complaint, this was part of a brazen, blatant, and systemic failure by one of the largest companies in America to comply with its obligations to report suspicious opioid orders, contributing to the epidemic of opioid abuse throughout this country.”

“AmerisourceBergen, a wholesale drug distributor, flagrantly and repeatedly violated its obligation to notify DEA of suspicious orders for controlled substances, which directly contributed to the epidemic of prescription opioid abuse across the United States,” stated U.S. Attorney for the Eastern District of New York Breon Peace.

“When drug distributors like AmerisourceBergen fail to alert the DEA of suspicious orders of prescription drugs by pharmacies, they shirk a key obligation in dealing with addictive drugs that can end lives. This complaint makes clear that the Department of Justice will continue to hold accountable corporations that disregard the public’s safety for their own profit,” said U.S. Attorney for the District of Colorado Cole Finegan.

The government’s complaint specifies several pharmacies for which AmerisourceBergen allegedly was aware of significant “red flags” suggesting the existence of diversion of prescription drugs to illicit markets. The complaint asserts that AmerisourceBergen nevertheless continued to distribute drugs to the pharmacies for years and reported few suspicious orders to the DEA. The five examples include: two pharmacies, one in Florida and one in West Virginia, for which AmerisourceBergen knew the drugs it distributed were likely being sold in parking lots for cash; a New Jersey pharmacy that has pleaded guilty to unlawfully selling controlled substances; another New Jersey pharmacy whose pharmacist-in-charge has been indicted for drug diversion; and a Colorado pharmacy that AmerisourceBergen knew was its largest purchaser of oxycodone 30mg tablets in all of Colorado. The government further alleges that for this Colorado pharmacy, AmerisourceBergen specifically identified eleven patients as potential “drug addicts” whose prescriptions likely were illegitimate. Two of those patients subsequently died of overdoses.

The complaint further alleges that AmerisourceBergen not only ignored red flags of diversion, but also relied on internal systems to monitor and identify suspicious orders that were deeply inadequate, both in design and implementation. These systems allegedly flagged only a tiny fraction of suspicious orders, thereby enabling diversion and AmerisourceBergen’s failure to report orders it was legally obligated to identify to the DEA. In fact, the complaint asserts that in the midst of the opioid epidemic, AmerisourceBergen intentionally altered its internal systems in a way that reduced the number of controlled substances reported as suspicious. Even for the small percentage of orders that AmerisourceBergen did identify as suspicious, the company routinely failed to report them to the DEA.

The government’s complaint alleges that for years AmerisourceBergen flouted its legal obligations and prioritized profits over the well-being of Americans.

If AmerisourceBergen is found liable, it could face escalating civil penalties depending on when each violation occurred and the type of controlled substance at issue. Specifically: up to $10,000 for each reporting violation before November 2015, up to $16,864 for each violation between November 2015 and October 2018 and for each violation relating to a suspicious order for a non-opioid controlled substance not reported after October 2018, and up to $109,374 for each violation relating to a suspicious opioid order not reported after October 2018, potentially totaling billions of dollars in penalties. The court also may award injunctive relief to prevent AmerisourceBergen from committing future CSA violations.

The United States is represented in the filed action by Assistant U.S. Attorneys Anthony D. Scicchitano and Landon Jones for the Eastern District of Pennsylvania, in conjunction with Trial Attorneys Michael Wadden, Amy DeLine, and Deborah Sohn of the Department of Justice Civil Division’s Consumer Protection Branch, Assistant U.S. Attorneys Hayden Brockett and Jordann Conaboy for the District of New Jersey, Assistant U.S. Attorneys Amanda Rocque and David Moskowitz for the District of Colorado, and Assistant U.S. Attorneys Elliot M. Schachner and Diane Leonardo for the Eastern District of New York. The DEA collaborated with the Department to investigate the case.

The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jonathan Nyce, 73, of Collegeville, PA, was convicted by a federal jury of wire fraud and the interstate shipment of misbranded animal drugs. The charges arise from a years-long scheme to defraud pet owners of money by falsely claiming to sell canine cancer-curing drugs.

In February 2020, the defendant was charged by Indictment for this scheme, which he operated by creating several companies, including “Canine Care,” “ACGT,” and “CAGT,” through which he purported to develop drugs intended to treat cancer in dogs. Using various websites for these companies beginning in 2012, 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!” As alleged, 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.” 

“When beloved pets become sick, caring owners look for treatments that can offer hope to keep their pet alive and comfortable,” said U.S. Attorney Romero. “Jonathan Nyce took advantage of that bond between pet and owner by defrauding customers and giving them false hope that they might be able to save their dying pet. That is both cruel and illegal, and we hope this verdict brings his victims a small measure of justice for their suffering.”

“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 Special Agent in Charge George A. Scavdis, 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.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Nasir Wright, 25, of Philadelphia, PA, was sentenced to 11 years in prison and five years of supervised release by United States District Court Judge John Padova for three gunpoint robberies which occurred in January 2020.

In June 2022, the defendant pleaded guilty to three counts of Hobbs Act robbery; one count of the carrying, using, and brandishing a firearm in during a crime of violence; and possession with the intent to distribute heroin. The charges stem from a series of incidents which occurred almost two years ago in Philadelphia and Delaware County. First, on January 10, 2020, the defendant entered a Little Caesar’s restaurant on the 5900 block of Lancaster Avenue and placed an order. Once the cashier opened the register, the defendant jumped over the counter, grabbed $200 from the register and fled the area. Then, on January 20, 2020, the defendant entered the Family Dollar on the 6400 block of Rising Sun Avenue and went to the checkout line to pay for a bag of chips. When he reached the front of the line, Wright jumped over the top of the counter, pointed a silver firearm at two employees, took $300 from the cash register and fled the store. A few hours later, on the same date, the defendant travelled to the Family Dollar located on the 1400 block of Chester Pike in Sharon Hill, PA. Wright entered the store and browsed the aisles inside. After about 15 minutes in the store, he approached the counter with an item from the store. Wright gave the cashier a $5 bill and when the cashier opened the register, Wright jumped over the counter, pulled out a silver handgun, and pointed it at the cashier. The cashier then gave Wright $350 from the register and he fled the store. 

Early the next morning, Upper Darby police officers located a vehicle that matched the description from the Sharon Hill robbery and observed that Wright was inside. When officers searched Wright’s vehicle, they recovered the silver handgun that he used to commit the robberies and six grams of heroin.

“Violent takeover robberies with firearms are terrifying for victims who are going about their daily duties to make a living,” said U.S. Attorney Romero. “Nasir Wright was determined to steal money from these businesses, growing bolder and more aggressive with each incident. This sentence of more than a decade in prison will keep him off the street, and we hope is a measure of justice for the victims.”

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, the Philadelphia Police Department, the Sharon Hill Police Department and the Upper Darby Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Michael Neill, 56, Marita Crawford, 53, Niko Rodriguez, 31, and Brian Fiocca, 31, all of Philadelphia, Pennsylvania, and all employees of Local 98 of the International Brotherhood of Electrical Workers (“Local 98”), entered pleas of guilty this week before United States District Court Judge Jeffrey Schmehl to federal charges arising from their personal use of the assets of Local 98 in ways that did not benefit the membership of Local 98 as a whole, including embezzlement of labor union assets, wire fraud, and theft from a union employee benefit plan.

All four were charged with former Local 98 Business Manager John Dougherty, who is set to stand trial with codefendant Brian Burrows, President of Local 98, on similar charges, in January 2023.

Michael Neill served as the Training Director of Local 98’s Apprentice Training Fund. 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. He is scheduled to be sentenced on April 7, 2023.

Marita Crawford served as Local 98’s Political Director. She pleaded guilty to four counts of wire fraud, the object of which was to obtain money and property from Local 98 by means of false and fraudulent pretenses, representations, and promises. She is scheduled to be sentenced on April 4, 2023.

Niko Rodriguez was employed by Local 98’s Apprentice Training Fund and by Local 98. He pleaded guilty to six counts of embezzlement of labor union assets. He is scheduled to be sentenced on April 4, 2023.

Brian Fiocca was employed by Local 98 as an office employee. He pleaded guilty to six counts of embezzlement of labor union assets. He is scheduled to be sentenced on April 6, 2023.

The Indictment returned in January 2019 alleges that from April 2010 through August 2016, defendants John Dougherty, Brian Burrows, Michael Neill, Marita Crawford, Niko Rodriguez, Brian Fiocca and others conspired and agreed to embezzle, steal, and convert to their use and the use of others, the funds, property, and other assets of Local 98 and of the Apprentice Training Fund, in violation of the IBEW constitution, the by-laws of Local 98, the interests of the members of Local 98, and federal law.

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, Chief of the Corruption & Civil Rights Unit; Bea Witzleben, Co-Chief of Trials; Jason Grenell; Anthony Carissimi; and Richard Barrett, Chief of the Office’s Criminal Division.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jason Mattis, 49, of Philadelphia, PA, was arrested and charged by Indictment with three counts of possession of an unregistered destructive device, charges which stem from three incidents that occurred in June and July 2022 in Northeast Philadelphia. Mattis made his initial appearance in federal court on December 15, 2022, and was ordered detained pending further proceedings.

The Indictment alleges that on two separate occasions on June 30, 2022, and again on July 1, 2022, Mattis lit an incendiary device commonly known as a Molotov cocktail, and threw it onto the porch of three different residences in the Tacony section of Philadelphia. On all three occasions, the weapon thrown by Mattis ignited and started a fire on the porch of each residence. Two of these incidents occurred in the middle of the night on June 30, 2022, and the last occurred during the evening hours on July 1, 2022. ATF examined evidence left at each scene and determined that the weapons allegedly used by the defendant were incendiary bombs as that term is defined under federal law.

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.

If convicted, the defendant faces a maximum possible sentence of 30 years in prison, a three-year period of supervised release, a $750,000 fine, and a $300 special assessment.

The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA – BioTelemetry, Inc. and its subsidiary CardioNet, LLC, both headquartered in Pennsylvania (collectively, “BioTelemetry”), have agreed to pay $44,875,000 to resolve allegations that they violated the False Claims Act by knowingly submitting claims to Medicare, TRICARE, the Veterans Health Administration, and the Federal Employee Health Benefits Program for heart monitoring tests that were performed, in part, outside the United States, and in many cases by technicians who were not qualified to perform such tests.

The United States alleged that BioTelemetry and CardioNet improperly billed Medicare and other federal healthcare programs for certain cardiac monitoring services – including Holter, event monitoring, and mobile cardiovascular telemetry (MCT) tests – that were performed overseas in violation of federal law that prohibits payment for services furnished outside the United States.  More specifically, the government alleged that in 2013, CardioNet contracted with a company located in India for the provision of diagnostic and analysis services of heart monitoring data.  Although BioTelemetry set up a workflow that was designed to route electrocardiogram data, including data relating to cardiac events (“ECG Data”) for certain federal payer patients to a domestic independent diagnostic testing facility for review and analysis, the government alleged that BioTelemetry—with the knowledge of then senior management—diverted certain federal beneficiaries’ ECG Data to India when the domestic workflow became backlogged.   BioTelemetry also allegedly sent ECG data for other federal payer patients directly to India for review. In 2014, over 29% of the ECG Data reviewed in connection with MCT tests, and over 78% of the ECG Data reviewed in connection with event monitoring tests, for Medicare patients were allegedly reviewed by technicians located in India. In 2015, those numbers allegedly rose to over 47% and over 88%, respectively. Although BioTelemetry began implementing technological controls in late 2015 to prevent personnel in India from accessing the domestic workflow, those controls were insufficient, and technicians in India allegedly continued to review and analyze some ECG Data for federal healthcare program beneficiaries thereafter. 

The United States further alleged that most of the offshore technicians tasked with reviewing ECG Data for federal healthcare program beneficiaries did not have the basic qualifications to perform the tests in question.  Of the more than 450 India-based technicians who reviewed Medicare patients’ ECG Data in connection with MCT services that CardioNet billed to Medicare during the 2013 to 2018 period, the government alleged that fewer than 3% were certified by Cardiovascular Credentialing International (CCI), the only recognized credentialing body for such cardiovascular technicians. 

“Federal healthcare beneficiaries deserve care, including remote cardiac monitoring, that complies with federal law and is provided by qualified clinical personnel,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement reminds all providers that they must observe those standards and reflects the Department’s commitment to pursue knowing violations of federal health care program requirements.” 

“Providers must act within clear federal healthcare program boundaries to ensure that appropriate care is given to the beneficiaries of those programs,” said Jacqueline C. Romero, United States Attorney for the Eastern District of Pennsylvania. “This office will continue to pursue cases where providers have failed to honor these rules, which were established to provide quality care to elderly citizens and military veterans, among others.”

“Providers participating in federal health care programs are obligated to obey the laws meant to protect the integrity of those programs and the quality of care furnished to patients,” said Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services. “With our law enforcement partners, our agency is extremely committed to investigating providers alleged of defying these requirements.”

“Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “The settlement agreement announced today demonstrates our ongoing commitment to work with our law enforcement partners, the Department of Justice, and the Defense Health Agency to investigate allegations of healthcare fraud.”

In connection with the settlement, BioTelemetry Inc. entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks.  The CIA also requires an independent review organization to annually assess the medical necessity and appropriateness of claims billed to Medicare.

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by several relators who were former CardioNet employees.  Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.  The qui tam case is captioned U.S. ex rel. Doe v. BioTelemetry, Inc., et al., No. No. 2:18-cv-01688-PD (E.D. Pa.).  As part of today’s resolution, the whistleblowers will receive approximately $8.3 million.   

The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the Eastern District of Pennsylvania and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section.  Assistance was provided by HHS-OIG, the Department of Defense’s Defense Criminal Investigative Service, the Department of Veterans Affairs Office of Inspector General, and the Office of Personnel Management’s Office of Inspector General.      

The matter was handled by Assistant United States Attorneys Eric Gill and Erin Lindgren and Civil Division attorneys Amy Kossak and Jessica Sievert. 

The claims resolved by the settlement are allegations only and there has been no determination of liability.

PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Ungerer & Company, a flavor and fragrance business operating in Bethlehem, Pennsylvania, has agreed to pay $230,000 and improve its compliance measures to resolve allegations it failed to make required notifications to the Drug Enforcement Administration (DEA) about certain international shipments of listed chemicals that can be used to manufacture illicit controlled substances, and failed to create necessary records documenting the transfer of chemicals within the company.

Federal law and regulations require companies to notify the DEA before they export certain chemicals that can be used to manufacture illicit controlled substances on a form frequently referred to as a “486.” In addition, federal law and regulations require companies to generate and maintain records regarding certain transactions involving these chemicals. For example, companies must generate and maintain these records when they make transactions between their own DEA registrations such as transfers to different locations or within the same company.

Ungerer and the United States previously entered into a civil settlement agreement, in which Ungerer agreed to pay $450,000 to resolve allegations that the company had imported and exported listed chemicals on a number of occasions and failed to provide information to the DEA on the date and quantity actually imported and exported within 30 days after certain transactions. As part of that resolution, the company entered into an administrative agreement with the DEA to implement certain remedial measures.

With the company’s implementation of those remedial measures, Ungerer self-disclosed certain conduct it had discovered to the United States. The current settlement is based on that self-disclosure. In particular, the settlement alleges that Ungerer, in 2018, negligently exported listed chemicals on three occasions without submitting the required pre-export notification, or “486.” In addition, the settlement alleges that Ungerer had transferred listed chemicals between its DEA registrations, but negligently failed to generate the records required to document those transactions.

Along with the $230,000 payment, Ungerer entered into two three-year administrative agreements with the DEA under which it has committed to implement heightened remedial measures. For example, the agreement requires Ungerer to document transfers of listed chemicals between registrations, train its employees on the documentation requirement, and regularly provide the DEA with a list of their listed chemical exports.

“Ungerer self-disclosed these chemical violations to the United States on its own accord,” said U.S. Attorney Romero. “The documentation requirements that are the subject of this settlement agreement are critical to ensure accountability and transparency over listed chemical transactions inside and outside of the United States. Ungerer’s self-disclosure is an important step in its commitment to compliance.”

“Ungerer appropriately discovered and disclosed these export reporting issues,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA’s goal is to ensure the proper transfer and export of listed chemicals so they can be properly accounted for.” 

This investigation was conducted with the Philadelphia Field Division of the DEA and the Diversion Chemical Investigations Unit in the DEA’s Diversion Control Division. For the United States Attorney’s Office, Assistant United States Attorney Anthony D. Scicchitano handled the investigation and settlement.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

PHILADELPHIA – Advanced Bionics LLC, a Valencia, California, based manufacturer of cochlear implant systems, will pay $11.36 million to resolve alleged False Claims Act violations for misleading federal healthcare programs regarding the radio-frequency (RF) emissions generated by some of its cochlear implant processors. The settlement was announced today by United States Attorney Jacqueline C. Romero and the Justice Department.       

The settlement resolves allegations that Advanced Bionics, in submitting pre-market approval applications to the U.S. Food and Drug Administration (FDA) for its Neptune and Naida cochlear implant processors, made false claims regarding the results of its RF emissions tests. These tests measure the extent to which cochlear implant systems generate RF emissions that can interfere with other devices that use the RF spectrum – such as mobile phones, alarm and security systems, televisions, and radios.

According to the allegations, Advanced Bionics represented that its processors satisfied an internationally recognized emissions standard when, in fact, they did not. More specifically, Advanced Bionics is alleged to have manipulated testing conditions to obtain passing test results by not testing processors in “worst-case” configurations, and improperly shielding certain emissions-generating components of the cochlear implant system during emissions testing – all contrary to the standard’s requirements. 

“The FDA’s approval process requires companies to demonstrate the efficacy of their products,” said U.S. Attorney Romero. “The settlement in this case demonstrates our commitment to hold responsible any medical device manufacturer that skirts these rules and seeks FDA approval of a device it knows is not as effective as represented. The consumers who use these devices, and the federal programs that pay for many of them, deserve better.”

“The United States expects device manufacturers to provide accurate information when they claim that their devices meet certain tests or standards,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The integrity of our health care system depends on the government being able to rely on the information provided by manufacturers when they apply for permission to market their devices.”

“Patients deserve to receive medical devices which are in compliance with all federal standards,” said Maureen R. Dixon, Special Agent in Charge, Office of the Inspector General, Department of Health and Human Services (HHS-OIG). “Manufacturers are required to be truthful in submitting claims for payment to the Medicare and Medicaid Programs. HHS-OIG will continue to work with DOJ and our law enforcement partners to protect the integrity of the Medicare Trust Fund.” 

“The VA OIG is dedicated to ensuring veterans receive the healthcare products that the VA is promised,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “In reaching today’s settlement, we thank the U.S. Attorney’s Office and our law enforcement partners in exposing misleading practices that affect medical devices meant for veterans and the proper use of VA dollars for their benefit.”

“The Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) is committed to working with its law enforcement partners and the U.S. Attorney’s Office, Eastern District of Pennsylvania, to combat health care fraud,” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “TRICARE, the health care program for active-duty military personnel, retirees, and dependents, relies on medical providers to furnish complete and truthful information about the efficacy of their products and services. Today’s settlement demonstrates DCIS’s tireless commitment to investigating the submission of false claims and statements to TRICARE.”

“We expect that medical products offered to federal employees and their families meet the standards promised by the manufacturer,” said Amy K. Parker, Special Agent in Charge, Office of Personnel Management (OPM) OIG. “We applaud our law enforcement partners and colleagues at the Department of Justice for their hard work resulting in today’s settlement.”

As a result of today’s settlement, in addition to the $11.36 million paid to the United States, Advanced Bionics will pay state Medicaid programs $1,238,580. The Medicaid program is funded jointly by the federal and state governments.

In addition to the civil settlement, Advanced Bionics entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG. The CIA requires an independent review of activities and processes relating to the preparation or submission of Premarket Approval Applications (PMAs) to the FDA and performance standards relevant to those PMAs. Advanced Bionics must also implement a robust compliance program that includes, among other things, a risk assessment program and compliance certifications from key managers and from the Board of Directors.

The settlement resolves a lawsuit originally brought by David Nyberg, a former Advanced Bionics engineer, under the whistleblower, or qui tam, provisions of the False Claims Act. The Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Nyberg will receive approximately $1.87 million of the federal settlement.

The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare 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).

The case is being handled in this district by Assistant United States Attorney Lauren DeBruicker and Auditor Dawn Wiggins. This settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Pennsylvania; the Civil Division of the United States Department of Justice; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; the Defense Health Agency Office of General Counsel; the Office of Personnel Management, Office of Inspector General; the Department of Veterans Affairs, Office of Inspector General; and the National Association of Medicaid Fraud Control Units. The FDA’s Office of Chief Counsel also provided assistance.

The lawsuit is captioned United States, et al., ex rel. David Nyberg v. Advanced Bionics Corp., No. 19-cv-3439 (E.D. Pa.). The claims resolved by the settlement are allegations only; there has been no determination of liability. 

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Rodney Kent a/k/a “Hott Rodd,” a/k/a “Hott,” 51, of Philadelphia, PA, was sentenced yesterday to 30 years in prison and 10 years of supervised release by United States District Judge Cynthia M. Rufe after being convicted of sex trafficking earlier this year.

In June 2022, the defendant was convicted at trial of sex trafficking, arising from his forcible coercion of a minor to engage in prostitution. After meeting the victim on social media in 2016, the defendant met the teenage victim in person and brought the victim to his home, where he manipulated the victim into posing for photographs. The defendant then advertised the minor victim for sex on Backpage.com for nearly two weeks. During this time, the defendant physically abused the victim, including using lit cigarettes to burn the victim. Law enforcement recovered the victim after the victim escaped from the defendant. In April 2018, the Justice Department seized Backpage.com, which was the Internet’s leading forum for prostitution ads, including ads depicting the prostitution of children.

“The crime that this defendant committed is one of the most devastating to victims that our Office prosecutes,” said U.S. Attorney Romero. “Kent forced a teenager, a minor, to sell their body for his own greed and financial gain. We will continue to work with our law enforcement partners to investigate and prosecute these horrific crimes against the most vulnerable victims.”

“The cruelty and inhumanity displayed by Rodney Kent is staggering,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. “He forced a child into sexual servitude, unleashing physical and emotional abuse even as he profited from that child's exploitation. While the FBI can't erase the harm he's done, we've made him answer for it, bringing justice for his victim and ensuring he can't claim any more.”

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The case was investigated by the Federal Bureau of Investigation, Tinicum Township Police Department, and Philadelphia Police Department, and was prosecuted by Assistant United States Attorneys Alexandra M. Lastowski and Vineet Gauri of the Eastern District of Pennsylvania and Assistant United States Attorney Seth M. Schlessinger, now of the Eastern District of Virginia.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that William Watts, Sr., 56, of Philadelphia, PA, was sentenced to five years and ten months in prison, five years of supervised release and ordered to pay $12,000 in special assessments by United States District Court Judge Joel H. Slomsky after being convicted of receiving and possessing child pornography.

In July 2022, the defendant pleaded guilty to these charges, which stemmed from an FBI investigation into a CyberTip from the National Center for Missing and Exploited Children. At the time of his arrest in October 2021, the defendant was a police officer in Philadelphia’s First Police District and had amassed a collection of hundreds of images of child pornography between his online accounts and electronic devices. Watts has since resigned his position with the Department.

“Watts admitted to seeking out videos of children being abused for his own gratification – and for that crime he will now spend years behind bars,” said U.S. Attorney Romero. “Our Office and our law enforcement partners are committed to doing the difficult work of investigating and prosecuting these heinous crimes in order to hold people like this defendant accountable, no matter their position in the community or occupation.”

“As a police officer, William Watts was sworn to protect and serve,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Not only did he break the law by continually seeking out these disgusting images, his actions put child victims at further risk of sexual exploitation. Justice demands, and this sentence ensures, that he is held accountable.”

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Kelly Harrell.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Javier Perez, 44, of Brookhaven, PA, was convicted at trial of possessing child pornography arising from the recovery of videos of child pornography from his personal computer.

In 2014, the FBI executed a search warrant at Perez’s residence and seized Perez’s desktop computer, which contained several videos of child pornography that he downloaded using an online peer-to-peer network. The defendant was arrested and charged, and the case was tried in 2016 after which the defendant was convicted of possession of child pornography and sentenced to four years in prison. Earlier this year, the defendant’s conviction was vacated pursuant to a petition which found that his previous trial counsel was ineffective. Perez was retried on the possession charge this week, and was once again convicted.

“This verdict sends a strong message that those who victimize our most vulnerable will be held accountable,” said U.S. Attorney Romero. “Thank you to the prosecutors and agency partners who remained determined to identify, prosecute and convict this defendant.”

“Those who seek out images of child sexual abuse help drive a demand for such depraved material, resulting in the continued exploitation of young children,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. “This conviction holds Javier Perez accountable for his actions and underscores the solid work of the FBI's Child Exploitation Task Force, committed to its mission of protecting vulnerable children from harm.”

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Veronica J. Finkelstein.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Steven Mazzone, 59, of Philadelphia, PA, was sentenced to five years in prison, three years of supervised release by United States District Judge R. Barclay Surrick, for his role in several conspiracies to commit racketeering, making extortionate extensions of credit, and conducting an illegal gambling business, all while serving as the underboss of the Philadelphia La Cosa Nostra (“LCN”), also known as the Philadelphia “mafia” or “the mob.”

In June 2022, Mazzone pled guilty to five counts in a Superseding Indictment, thereby admitting his guilt as a leader of the Philadelphia mafia who directed a vast network of criminal activity that spanned Philadelphia and parts of New Jersey. His conduct involved conspiracies to commit crimes involving extortion, illegal gambling, drug dealing, and loansharking. As the underboss, the defendant set rules for LCN members and associates and collected profits from illegal activity that was siphoned upward through the LCN command structure to ensure the enterprise continued to exist. Mazzone also organized the composition of smaller groups of members and associates, or “crews,” which reported to management, or “capos,” who in turn reported to Mazzone.

The investigation into the organization, conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Philadelphia Police Department, utilized wiretap interceptions of cellular phones used by LCN members and associates to conduct illegal sports betting and loansharking in the Philadelphia area. The wiretap evidence established that Mazzone financed high-interest loans to customers of the sportsbook who were unable to pay their debts, resulting in the collection of interest rates on loans of as much as 264%. Members of the LCN made several threats of violence to debtors who did not pay, including one threat to make a victim “disappear” for nonpayment on a loan.

The defendant’s command and control over the LCN was made apparent in a recorded conversation at a “making ceremony” to induct new members into the mob in South Philadelphia in 2015, at which time an LCN member announced that “We’re all in the family now,” to which Mazzone added, “Nobody break this chain . . . I know you were explained the rules already.”  Mazzone also discussed his co-conspirators’ efforts to extort bookmakers and loan sharks in and around Atlantic City, New Jersey, while he coached his underlings in their methods of intimidation and collection of gambling proceeds. At that same meeting, the defendant declared, “We got to get a hold back on Atlantic City, buddy! That’s what I want. That’s what I want. We have to get that back. I mean we have a few guys out there, you know, right now. You’re going to have a couple more guys out there with you. . . . I want you, I want you to do something.”

This case represents Mazzone’s second federal conviction for criminal activity in connection with the LCN. He had previously committed similar offenses in Philadelphia over 20 years ago as a member of the organization. In 2000, when he was in his early 30s, Mazzone was convicted in this District for conspiracy to commit racketeering and illegal sports bookmaking. In that case, Mazzone was captured on intercepted wiretap conversations discussing the extortion. One of the victims was shot and seriously injured during the course of the extortion. Mazzone was ultimately sentenced to nine years in prison for that conviction.

“Even though the Philadelphia mob has been weakened over the decades due in large part to persistent law enforcement efforts, the LCN and its criminal activities are still very much a problem and are damaging the communities in which it operates,” said U.S. Attorney Romero. “The U.S. Attorney’s Office is committed to prosecuting anyone who is committing serious federal crimes like these, and we will not rest until the mob is nothing but a memory that lives on in movies.”

“The Department of Justice has long been committed to dismantling LCN across the country and reducing its reach and influence,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “In this case, the defendant used his role as the underboss of the Philadelphia organized crime family to try to revive its fortunes, extorting victims in Pennsylvania and New Jersey. As this prosecution demonstrates, the department remains steadfast in its commitment to eradicating organized crime from our communities.”

“Steven Mazzone has been here before, previously convicted in an LCN case and sentenced to federal prison,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “When he got out, he went right back to the same streets and same old rackets — overseeing loansharking, illegal gambling, and extortion. Mazzone and co. need to accept that the FBI is just as committed to shutting down organized crime here as ‘the family’ has been to sustaining it.”

The case was investigated by the Federal Bureau of Investigation the Pennsylvania State Police, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Jonathan Ortiz and Justin Ashenfelter, and U.S. Department of Justice Trial Attorney Alexander Gottfried, Organized Crime and Gang Section.

A Pennsylvania man was sentenced today to five years in prison for conspiring to participate in the affairs of a racketeering enterprise, including making extortionate extensions of credit and conducting an illegal gambling business, all while serving as the underboss of the Philadelphia mafia family.

According to court documents, Steven Mazzone, 59, of Philadelphia, was the underboss of the Philadelphia organized crime family of La Cosa Nostra (LCN), aka the “mafia,” and directed a vast network of criminal activity that spanned Philadelphia and parts of New Jersey. As the underboss, Mazzone set rules for LCN members and associates in the Philadelphia mafia and collected profits from illegal activity that was siphoned upward through the LCN command structure. Mazzone also organized the composition of smaller groups of members and associates, or “crews,” which reported to middle managers, or “capos,” who in turn reported to Mazzone.

“The Department of Justice has long been committed to dismantling LCN across the country and reducing its reach and influence,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “In this case, the defendant used his role as the underboss of the Philadelphia organized crime family to try to revive its fortunes, extorting victims in Pennsylvania and New Jersey. As this prosecution demonstrates, the department remains steadfast in its commitment to eradicating organized crime from our communities.”

The investigation utilized court-ordered wiretap interceptions of cell phones used by LCN members and associates to conduct illegal sports betting and loansharking in the Philadelphia area. The wiretap evidence established that Mazzone financed high-interest loans to customers of the sportsbook who were unable to pay their debts, resulting in the collection of loans with interest rates as high as 264%. LCN members and associates made threatened debtors who did not pay with violence, including one threat to make a victim “disappear” for nonpayment on a loan.

“Even though the Philadelphia mob has been weakened over the decades due in large part to persistent law enforcement, the LCN and its criminal activities are still very much a problem and are damaging the communities in which it operates,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “The U.S. Attorney’s Office is committed to prosecuting anyone who is committing serious federal crimes like these, and we will not rest until the mob is nothing but a memory that lives on in movies.”

“The FBI is dedicated to eliminating transnational organized crime groups like La Cosa Nostra who continue to threaten our national and economic security,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We will continue to work with our law enforcement partners to seek justice against organized criminal threats and alliances and protect our communities.”

This case represents Mazzone’s second federal conviction for criminal activity in connection with the LCN. He had previously committed similar offenses in Philadelphia over 20 years ago as a inducted member in the Philadelphia mafia. In 2000, Mazzone was convicted of conspiracy to commit racketeering and illegal sports bookmaking. In that case, Mazzone was captured on intercepted wiretap conversations discussing an extortion. One of the victims was shot and seriously injured during the course of the extortion. Mazzone was ultimately sentenced to nine years in prison for that conviction.

The FBI, Pennsylvania State Police, and Philadelphia Police Department investigated the case.

Trial Attorney Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Jonathan Ortiz and Justin Ashenfelter for the Eastern District of Pennsylvania prosecuted the case.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Omar White-Davis, 28, of Philadelphia, PA, pleaded guilty today to two counts of attempted Hobbs Act robbery, one count of Hobbs Act robbery, and one count of carrying and using a firearm during the commission of a crime of violence. White-Davis and a co-defendant, Acia Moore, 20, also of Philadelphia, were charged by Indictment with these offenses in connection with multiple armed robberies of businesses in the Feltonville and Juniata sections of North Philadelphia, including Café Tinto restaurant on Wyoming Avenue, which was targeted twice in two days.

According to the Indictment, the defendants attempted to rob and did rob a variety of small businesses, both together and separately, stealing approximately $3,100 dollars total between November 21 and December 6, 2021. The incidents detailed are as follows:

• On November 21, 2021: White-Davis attempted to rob the Ariel Grocery, 2000 block of E. Pacific Street;
• On December 1, 2021: Moore robbed the AlMolhem Store, 400 block of E. Wyoming Avenue;
• On December 2, 2021: White-Davis and Moore robbed Café Tinto, 100 block of E. Wyoming Avenue
• On December 4, 2021: Moore returned to Café Tinto approximately 48 hours later and robbed it again;
• On December 6, 2021: Moore robbed the Leslie Mini Market, 4200 block of Bodine Street; and,
• Also on December 6, 2021: approximately an hour later, Moore and White-Davis attempted to rob Hernandez Food and Deli Market, 4500 block of D Street. 

After pleading guilty today, White-Davis is set to be sentenced in April 2023 before the Honorable Gerald A. McHugh. Moore is listed for trial on these charges in January 2023. If convicted, Moore faces a maximum possible sentence of life imprisonment, a five-year period of supervised release, and possible fines of over $1,000,000.

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 is being prosecuted by Assistant United States Attorney Robert E. Eckert.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jon Suggs, 31, and Nickolas Passineau 31, both of Philadelphia, PA were both convicted at trial of two counts of Hobbs Act Robbery, and one count of using a firearm in relation to a crime of violence arising from the armed robberies of two pharmacies in Philadelphia.

In March 2020, the defendants were charged by Superseding Indictment with two armed-robbery incidents in late 2017 and early 2018. Five other co-defendants were also charged in connection with the incidents, all of whom have since pleaded guilty. Evidence presented at trial demonstrated that Suggs and Passineau used the “take-over method” in both robberies: donning masks, and holding their victims at gunpoint to demand large quantities of narcotics, including opioids, promethazine, fentanyl, and morphine. The defendants also became violent during the robberies – pistol whipping, punching and kicking their pharmacy-employee victims. The estimated value of the controlled substances obtained by the defendants in the second robbery alone was $60,000. Philadelphia Police officers executed a search warrant of defendant Suggs’ residence and found ammunition, over $19,000 in cash, and clothing that matched witness descriptions of one of the robbers.

“Suggs, Passineau and their cohorts threatened the lives of pharmacy employees with weapons and physical violence, and stole thousands in controlled substances which undoubtedly wound up on the streets,” said U.S. Attorney Romero. “These defendants made terrible choices, for which they have now been held accountable by a federal jury.”

“Violent takeover robberies are terrifying for victims who are going about their daily duties to make a living when guns are put in their faces and they are assaulted,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. “Suggs and Passineau were determined to steal valuable narcotics and didn't care who they hurt in the process. These convictions will keep them off the street and are a measure of justice for their victims.”

The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, Philadelphia Police Department, Bloomsburg University Police Department, and is being prosecuted by Assistant United States Attorneys Everett Witherell and Meaghan Flannery.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Bruce Alexander, 19, and Naseem Williams, 21, both of Philadelphia, PA, were charged by Indictment for their roles in three different carjacking incidents which occurred this past summer. Specifically, the defendants are charged with conspiracy to commit carjacking, carjacking, and brandishing a firearm in furtherance of a crime of violence.

The Indictment alleged three separate carjackings:

1. In May 2022, Alexander and another man called for a locksmith to assist them with a vehicle on the 2000 block of Alter Street in the Point Breeze section of Philadelphia. When the locksmith arrived, Alexander and the other man allegedly struck the locksmith with a firearm and stole his work van which contained vehicle key fobs and vehicle key fob programming tools.
2. In July 2022, Alexander and Williams allegedly attacked a man entering his apartment building on the 3600 block of Conshohocken Avenue in the Wynnfield Heights section of Philadelphia, stole his vehicle keys at gunpoint, and drove away with his vehicle.
3. In July 2022, Williams and another man pointed firearms at the victim and carjacked his vehicle on the 1200 block of Jackson Street in South Philadelphia.

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert J. Livermore.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Zachkey James, 27, of Philadelphia, PA, was charged by Indictment with impersonation of a U.S. Postal Service (USPS) Mail Carrier, unlawful possession of three USPS Arrow Keys, mail theft, and possession of stolen mail.

As alleged in the Indictment, in July 2022, while pretending to be a USPS Mail Carrier, James stole undelivered mail from a collection box located near the Kingsessing Post Office in Philadelphia. In October 2022, again while pretending to be a USPS Mail Carrier, James stole undelivered mail from a collection box located near the East Germantown Post Office in Philadelphia. And in November 2022, James possessed three Arrow Keys and approximately 15 mail-in ballots that had been stolen from USPS collection boxes.

If convicted, the defendant faces a maximum of 31 years in prison and a $1,500,000 fine.

The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Patrick Brown.

U.S. Attorney Romero and USPIS Assistant Inspector in Charge John Walker made the announcement today: https://twitter.com/USAO_EDPA/status/1600588080150372352.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.