Eastern District of Pennsylvania

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Luis Perez Rodriguez, 34, of Allentown, PA, was sentenced to 120 years of in prison and a lifetime of supervised release by United States District Court Judge Joshua D. Wolson for his convictions on multiple child exploitation offenses.

In December 2021, the defendant pleaded guilty to four counts each of manufacturing and distributing child pornography. The charges stemmed from Rodriguez’ sexual abuse of two pre-pubescent children, aged 3 and 10 years old, and his recording of the abuse of each child. The defendant then distributed those images and videos over the internet to groups of other child sex offenders, and encouraged those offenders to redistribute them further to even more people on the internet. The defendant also solicited tips on what kind of child exploitation images to produce from other members of chat groups focused on creating such horrific illicit material. The videos and images not only depicted Rodriguez’ sexual abuse of each child, but also showed the faces of each child victim. The defendant was arrested in May 2020, shortly after distributing the child exploitation images to an online chat where one of the participants was an undercover FBI agent.

“Rodriguez sexually assaulted two very young children and then distributed images of those assaults online, where they will exist indefinitely,” said U.S. Attorney Romero. “For that depravity, this defendant will now spend more than a lifetime in prison; securely confined and unable to victimize any more children. 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 Rodriguez 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 Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Brittany Jones.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Khaseem White, 24, of Philadelphia, PA, pleaded guilty before United States District Court Judge Karen Marston to the charge of unlawful possession of a firearm by a convicted felon.

On May 4, 2021, Philadelphia Police officers attempted to conduct a traffic stop of the defendant and his associate, who was driving. When officers approached, White and his associate suddenly made a U-turn and drove off at a high rate of speed, resulting in a car accident involving at least six cars. There was substantial damage to the defendant’s car and several others. An officer then saw the defendant climb out of his car and cross the street. When the officer caught up to White, the officer saw a black handgun with an extended magazine laying on the ground near him.

As part of the investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, agents discovered videos of the defendant holding a similar firearm with an extended magazine as the one recovered near White, including in a music video posted to his social media account. Agents also learned that the defendant was prohibited from possessing firearms because he had previously been convicted of a felony offense.

“Our Office is committed to prosecuting those who commit violent crimes including illegally possessing firearms, which is a federal crime” said U.S. Attorney Romero. “In this case, a previously convicted felon illegally possessed a loaded firearm, which presents a clear danger to our community that is struggling under a surge of violent gun crime.”

“This investigation is a result of our outstanding partnership with the Philadelphia Police Department,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division.  “Convicted felons who carry firearms pose a serious risk to public safety.  ATF will continue to aggressively pursue these investigations and work with our law enforcement partners to remove violent criminals from our communities.”

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Chidozie Collins Obasi, 29, of Nigeria, was charged by Indictment with one count of conspiracy to commit mail and wire fraud, six counts of mail fraud, and 16 counts of wire fraud, all stemming from a complicated, evolving fraud scheme that initially targeted Americans through a spam email campaign offering illegitimate “work from home” jobs, and then during the COVID-19 pandemic shifted to targeting U.S. hospitals and medical systems by offering non-existent ventilators for sale beginning in March 2020, and finally shifted again in June 2020 to using stolen identity information of American citizens to apply for and obtain Economic Injury Disaster Loans (“EID Loans”). The Indictment alleges that Obasi perpetrated this fraud from Nigeria, with the help of co-conspirators in Canada and elsewhere. The defendant and his co-conspirators are alleged to have obtained more than $31,000,000 through this multi-faceted fraud scheme, with the overwhelming majority of that money – more than $30 million – coming from the State of New York for the intended purchase of ventilators.

The scheme alleged in the Indictment began in September 2018, with a spam email campaign that offered phony “work from home” jobs. When a person responded to the phony job offer, Obasi or a co-conspirator posed as a representative of a legitimate company, often a supposed medical equipment supplier based outside the United States, and offered the person a job as the company’s U.S. representative with responsibilities including collecting on outstanding invoices. A co-conspirator in Canada then sent the new “employee” counterfeit checks purportedly from customers of the company, and the new “employee” deposited the checks, took a commission, and wired the rest of the money to a foreign bank account ostensibly owned by the fake company. As alleged in the Indictment, Obasi and his co-conspirators obtained more than $1 million in this manner.

The Indictment further alleges that in approximately March 2020, soon after the COVID-19 pandemic hit the United States and ventilators were in high demand, Obasi posed as a representative of an Indonesian-based medical supply company offering ventilators for sale, and claimed to have a large stockpile of ventilators manufactured by a German company whose headquarters was in Telford, PA. The defendant allegedly convinced a medical equipment broker in the U.S. to broker sales of these non-existent ventilators, and ultimately deceived the State of New York into wiring more than $30 million for the purchase of ventilators that did not exist. Obasi continued to target other potential customers with this same scam, including hospitals.

Later, in approximately June 2020, the Indictment alleges that Obasi and his co-conspirators took advantage of the EID Loan program by using stolen identities of U.S. citizens to apply for and obtain more than $135,000 in EID Loan proceeds.

Obasi is presently a fugitive, and the United States is seeking to locate and arrest him. Anyone with knowledge of his whereabouts should contact their local FBI Office.

If caught and convicted, Obasi faces a maximum sentence of 621 years in prison, a five-year period of supervised release, and a $5,750,000 fine. Obasi also will be required to make full restitution of the more than $31,000,000 that he obtained by fraud.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

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 Michael Garrison, 43, of Croydon, PA, was charged by Information with one count of conspiracy to commit wire fraud, one count of conspiracy to destroy an energy facility, eight counts of wire fraud, two counts of destruction of an energy facility, and one count of filing a false tax return.

The Information alleges that starting in 2018 and continuing until August 2021, Garrison broke into shuttered coal-fired power plants that had been decommissioned, including Titus Station in Berks County, Cromby Station in Chester County, Southward Generating Station in Philadelphia, and the Gould Street Generating Station in Baltimore, Maryland, in order to steal copper wire and other metal, which he then sold to scrap yards in Philadelphia. The Information further alleges that between January 2020 and August 2021, Garrison sold stolen scrap on approximately 175 separate occasions to a Philadelphia scrap yard, for which he was paid more than $117,000. But the payment the defendant received paled in comparison to the damage he caused to the power plants. For example, the Information alleges that in the summer of 2021 alone, Garrison caused more than $1.5 million worth of damage to Titus Station in order to expose and pull the copper wire and other metal that he stole from that facility. As set forth in the Information, Garrison is also charged with filing a false 2020 U.S. Income Tax Return that failed to declare the more than $62,000 he was paid that year from the Philadelphia scrap yard.

“Stealing or vandalizing energy facilities – operational or not – is a federal offense which will be vigorously prosecuted by our Office,” said U.S. Attorney Romero.

“Brazenly breaking into and damaging a power facility — for any reason — is unacceptable,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “It’s imperative to hold perpetrators accountable for their destruction and, in doing so, we seek to also deter others from committing such a serious federal crime.”

“No matter the source, all income is taxable,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Mr. Garrison is alleged to have earned a living by stealing. Income derived from theft is taxable and IRS-CI remain committed to investigating these types of crimes. “

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys Michael S. Lowe and Judy Smith.

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 Manuel Lopez Avitia, 45, a Mexican national, was sentenced to 15 years and one month in prison, and five years of supervised release, by United States District Judge Chad F. Kenney for numerous narcotics offenses.

In March 2021, the defendant pleaded guilty to one count of conspiracy to distribute 400 grams or more of fentanyl and two counts of possession with intent to distribute 400 grams or more of fentanyl, and aiding and abetting. The charges stemmed from the defendant’s role as the leader of a nationwide fentanyl trafficking organization, which distributed approximately 27 kilograms of fentanyl in the Eastern District of Pennsylvania from at least one known stash house in Whitehall Township, PA, and other locations across the country, from May 2017 to March 2019.

“Drug addiction and the distribution operations that enable it are at epidemic levels in Philadelphia, Allentown, Reading and other cities and towns across our District, so we are aggressively prosecuting those responsible for the surge,” said U.S. Attorney Romero. “Lopez-Avitia and others associated with this organization pumped large quantities of deadly fentanyl into neighborhoods across the country, putting many people’s lives at risk. We want to thank our law enforcement partners in this case for their hard work and dedication.”

“Lopez-Avitia was responsible for trafficking 27 kilograms of fentanyl across our region and the country over a two-year period where illicit fentanyl ravaged our communities,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “Illicit fentanyl continues to plague our streets today; Lopez-Avitia rightly deserves this lengthy federal prison sentence for his drug-trafficking activities.”

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The case was investigated by the Drug Enforcement Administration and Bensalem Police Department, and is being prosecuted by Assistant United States Attorney Francis A. Weber.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that Ebony Wortham, Esq., has been named Executive United States Attorney for Community Engagement for the U.S. Attorney’s Office for the Eastern District of Pennsylvania. The EUSA is a newly created role which will focus on creating partnerships in communities across the Eastern District of Pennsylvania with an emphasis on education and crime prevention, particularly in those communities struggling with high rates of violent crime, opioid abuse, and the legacy of generations of systemic exclusion from education, healthcare, housing and employment.

“Ebony’s experience and acumen as a former prosecutor, law enforcement partner and community advocate exceeds the demanding vision I had in mind when creating this new position in our Office,” said U.S. Attorney Romero. “My goal for the community outreach efforts of the U.S. Attorney’s Office, under Ebony’s leadership, is that we become a consistent, trusted presence in the communities we serve – which will ultimately lead to lasting, meaningful impact on our District and its people.”

“I am honored and humbled to have been selected to serve as Executive U.S. Attorney for Community Engagement,” said Ms. Wortham. “Throughout my life and career, I have sought opportunities to work collaboratively with community stakeholders and system partners to promote public safety and to improve the life chances of individuals, youth and families. In this new role, I look forward to continuing to learn from – and partner with – organizations, leaders, and citizens across our region, as we work collectively on solutions to strengthen and transform our neighborhoods.

“Historically, the U.S. Attorney’s Office for the Eastern District of Pennsylvania has been a critical partner in helping to galvanize the broader community around a larger strategic vision for public safety and well-being,” continued Ms. Wortham. “This position will provide me with the opportunity to work with my incredible colleagues within the U.S. Attorney’s Office to build on that extraordinary legacy as we implement U.S. Attorney Romero’s bold and dynamic strategic vision for community engagement.”

Ms. Wortham most recently served as a Senior Managing Consultant with the Center for Justice and Safety Finance within PFM’s Management and Budget Consulting Practice, where she worked with state and local government clients around the country to create operational and procedural efficiencies in their work. Prior to joining PFM, she was a 15-year veteran of the Philadelphia District Attorney’s Office, where she served as its Director of Juvenile Justice Policy and Prevention in addition to her work prosecuting cases. Ms. Wortham has deep roots in the community as a lifelong Philadelphian and remains engaged in numerous organizations and across a variety of programs and fields, focused on improving relationships between youth and law enforcement; reducing and preventing gun violence; providing social services, mentoring, job training, college preparatory and life skills; and advocating for trauma-informed practices.  

Ms. Wortham is a graduate of Central High School of Philadelphia (256). She received a bachelor’s degree in Criminal Justice from Temple University; a law degree from Widener University School of Law; a master’s degree in Organizational Development and Leadership from the Philadelphia College of Osteopathic Medicine; and a master’s degree in Public Administration from the Fels Institute of Government of the University of Pennsylvania.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Matt “Mack” Jones, 39, of Bensalem, PA, was convicted at trial of multiple narcotics offenses including distribution of heroin and conspiracy to distribute heroin.

In January 2018, New Jersey State Police, the Philadelphia DEA, New Jersey (Camden) DEA, and the Philadelphia Police Department began a joint investigation of the defendant and other co-conspirators related to a drug trafficking operation. Investigators learned that the defendant was a supplier of heroin, and would use female associates as couriers to deliver bags of heroin to customers. Phone records, text messages, and physical surveillance confirmed the defendant’s participation in the conspiracy to distribute and deliver substantial amounts of heroin throughout the Philadelphia region.

The investigation progressed from controlled purchases of heroin from the defendant and his co-conspirators, to the eventual seizure of substantial amounts of fentanyl-laced heroin, narcotics adulterants, drug paraphernalia, and multiple stolen firearms from an apartment used by the defendant and his coconspirators to store and distribute drugs. All told, the narcotics conspiracy was responsible for distributing over a half kilogram of heroin and/or fentanyl.

“Drug addiction and the distribution operations that enable it are at epidemic levels in Philadelphia, and the federal government is aggressively prosecuting those responsible for the surge,” said U.S. Attorney Romero. “Jones and other members of this conspiracy pumped large quantities of narcotics into our communities, putting many people’s lives at risk. We want to thank our law enforcement partners in this case for their hard work and dedication.”

The case was investigated by Drug Enforcement Administration, the Philadelphia Police Department, New Jersey State Police, the Bensalem Township Police, and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney David Metcalf.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Najee Cunningham, 31, and James Cunningham, 27, both of Wilmington, North Carolina, and Rickia Adams, 24, of Marion, South Carolina, were charged by Indictment with multiple firearms offenses related to their scheme to illegally traffic guns across state lines from the southern United States into Philadelphia, a large northeastern city, a fact pattern which is commonly known as the “iron pipeline.” Specifically, all three defendants were charged with conspiracy to deal firearms without a license and possession of a firearm by a felon.

Beginning in 2021, ATF Special Agents identified multiple firearms recovered in the City of Philadelphia, many connected to shootings, homicides, and illegal gun possession cases, that had been purchased by the same individuals in Ohio, South Carolina, and North Carolina. The short time frame between the purchase of the firearm and recovery in Philadelphia (known as the “time to crime” period) indicated that the weapons may have been trafficked into the city – a city that experienced the highest number of homicides in recorded history last year and is on track to outpace that number this year. In this case, the shortest “time to crime” alleged in the Indictment is just one day from the date of purchase in another state to the recovery of the firearm in Philadelphia, in connection with a crime. The Indictment also alleges that the defendants purchased more than 50 firearms over the course of a year and transported them to Philadelphia for sale on the black market. To date, at least 25 of those firearms have been recovered in the greater Philadelphia area.

“Stopping the gun violence ravaging our city and supporting the work of the Philadelphia Police Department is a top priority for our Office,” said U.S. Attorney Romero. “Earlier this year, the Justice Department announced strategies to fight violent crime, including cracking down on firearms trafficking and the ‘iron pipeline’ – the illegal flow of guns sold in mostly southern states, transported up the East Coast, and found at crime scenes in northeastern cities like ours. This Indictment, one of several announced just this year, shows that we are committed and determined to focus our resources on this problem.”

“Stemming the illegal flow of firearms into our city will always be at the forefront of our mission,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division.  “ATF and our dedicated partners at the U.S. Attorney’s Office are committed to using all tools available, to include the use of crime gun intelligence data, to make sure those engaged in trafficking firearms into the Commonwealth are held accountable.” 

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 defendants face a maximum possible sentence of 10 years in prison.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Ashley N. Martin.

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

PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero announced a $16.4 million civil settlement with Essilor International, Essilor of America, Inc., Essilor Laboratories of America, Inc., and Essilor Instruments USA (collectively, “Essilor”), headquartered in Dallas, Texas, to resolve allegations that the company violated the False Claims Act by causing claims to be submitted to Medicare and Medicaid that resulted from violations of the Anti-Kickback Statute. 

Essilor manufactures, markets, and distributes optical lenses and equipment used to produce optical lenses. The Anti‑Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives. 

The United States alleges that between January 1, 2011 and December 31, 2016, Essilor knowingly and willfully offered or paid remuneration to eye care providers, such as optometrists and ophthalmologists, to induce those providers to order and purchase Essilor products for their patients, including Medicare and Medicaid beneficiaries, in violation of the Anti-Kickback Statute. Specifically, the United States contends that Essilor, through its Strategic Alliance, Practice Builder Loyalty, Practice Builder Elite, and Growth Financing programs (collectively, “Threshold Programs”) knowingly and willfully offered or paid unlawful remuneration to providers to induce providers to order and purchase Essilor products and knowingly caused providers to submit false claims to Medicare and Medicaid for Essilor products that were tainted by kickbacks that Essilor offered or paid to providers enrolled in Threshold Programs. 

“Our healthcare system is predicated on providers making decisions solely in the best interest of the patient,” said United States Attorney Romero. “Kickbacks threaten to corrupt that decision-making. The United States Attorney’s Office stands ready to pursue anyone who fails to abide by the rules that ensure our system functions as it should.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relators Laura Thompson, Lisa Brez, and Christie Rudolph, former Essilor district sales managers. 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 cases are captioned United States ex rel. Laura Thompson & Lisa Brez v. Essilor Int’l, No. 3:15-CV-2853-C (N.D. Tex.) and United States ex rel. Christie Rudolph v. Essilor Labs. of Am., Inc., No. 16-CV-0537 (WB) (E.D. Pa.).

“We sincerely thank Ms. Thompson, Ms. Brez, and Ms. Rudolph. Without the willingness of relators to shed light on allegations of fraud, preserving government program funds would be far more challenging.” said U.S. Attorney Romero. 

In connection with the settlement, Essilor entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Essilor hire an Independent Review Organization to review its systems, policies, processes, and procedures for ensuring that any discounts, rebates, or other reductions in price offered to providers comply with the Anti-Kickback Statute. The CIA also requires Essilor to put in place new written review and approval process to ensure all existing and new discount arrangements comply with the Anti-Kickback Statute.

“Kickback schemes can impact medical judgment, eroding the trust of both patients and taxpayers,” said Lisa M. Re, Acting Chief Counsel at the U.S. Department of Health and Human Services Office of Inspector General. “Essilor’s Corporate Integrity Agreement is intended to establish policies and practices so it complies with the Anti-Kickback Statute moving forward.”

This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant U.S. Attorney Paul W. Kaufman and auditor Dawn Wiggins.

The investigation and resolution of this matter 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 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 the United States filed a proposed civil judgment with Philadelphia-based Spivack, Inc., previously operating under the name Verree Pharmacy, and owner-pharmacist Mitchell Spivack, to resolve allegations that they engaged in a years-long practice of illegally dispensing opioids and other controlled substances, and systematic health care fraud. The United States filed the related lawsuit against them and other employees of the pharmacy earlier this year. The pharmacy and Spivack have agreed, subject to court approval, to pay over $4.1 million to resolve their civil liability under the Controlled Substances Act, False Claims Act, and forfeiture. The proposed judgment would also permanently ban them from ever dispensing controlled substances in the future.

The culmination of a multi-year federal-state investigation, the previously-filed complaint alleged that Verree Pharmacy, its pharmacist and owner Mitchell Spivack, and other employees of Verree, had a responsibility to dispense opioids and other controlled substances only when appropriate. Instead, the United States alleged that the pharmacy and Spivack dispensed the drugs, even when faced with numerous red flags suggestive of diversion—such as opioids in extreme doses, dangerous combinations of opioids and other “cocktail” drugs preferred by those addicted, excessive cash payments for the drugs, blatantly forged prescriptions, and other signs that the pills were being diverted for illegal purposes. The complaint alleged that Verree—which was the top retail pharmacy purchasing oxycodone in Pennsylvania—has been a nationwide and regional outlier in its deviant purchasing, dispensing, and billing of controlled substances. To avoid scrutiny from the drug distributors that sold them the pills, Verree through Spivack allegedly made false statements to maintain the façade of legitimacy and keep the pharmacy stocked with these pills critical to their profits. Behind that façade, the complaint alleged that Spivack drew millions of dollars from the pharmacy while the public suffered the consequences.

The United States’ complaint alleged that Verree and Spivack were also engaged in an expansive health care fraud scheme involving fraudulent billings for drugs not actually dispensed.  The alleged cornerstone of the scheme was a code used by the pharmacy employees in their internal computer system: “BBDF” or “Bill But Don’t Fill.”  Verree, Spivack, and their co-conspirators allegedly used BBDF as a means to cover their losses on other drugs and further line their pockets with illicit profits by falsely claiming to insurers, including Medicare, that they had dispensed a drug to a patient, when in fact they had not. According to the complaint, this sophisticated fraud—which one of the employees admitted to investigators—resulted in significant damages to Medicare and other federal programs.

The lawsuit seeks civil penalties and damages on Verree, Spivack, and the other pharmacy employee defendants under the Controlled Substances Act, False Claims Act, and civil forfeiture.

The pharmacy and Spivack agreed to resolve this civil liability under terms outlined in the proposed consent judgment, if accepted by the court. Among other things, the pharmacy and Spivack would pay over $4.1 million in civil damages and penalties under the False Claims Act, Controlled Substances Act, and in civil forfeiture, along with the approximately $500,000 Spivack agreed to pay in criminal restitution and criminal forfeiture. The proposed resolution would also permanently prevent the pharmacy and Spivack from prescribing, distributing, or dispensing any controlled substances in the future, and prevents them from ever seeking another controlled substance registration from the Drug Enforcement Administration. The resolution would also impose a 22-year exclusion on the pharmacy and Spivack from Medicare and Medicaid.

The civil complaint relates to criminal charges that were previously filed against Mitchell Spivack. On May 31, 2022, the U.S. Attorney’s Office filed a one-count criminal information against Spivack for conspiracy to defraud the United States based on allegations similar to those in the civil litigation. Spivack pled guilty to that charge on June 29, 2022.

“Pharmacies and pharmacists who engage in illegal dispensing of opioids devastate their communities and worsen our country’s opioid epidemic” said U.S. Attorney Romero. “Providers who abuse Medicare and other federal health care programs by taking money with false billings also steal precious resources from programs critical to the health of our seniors and other citizens. This Office is committed to investigating and holding accountable those providers who violate their controlled substance and health care billing obligations. Our Office deeply appreciates our partnership with the DEA, HHS-OIG, and the Pennsylvania Attorney General’s Office in pursuing these cases.”

“In a city that has been so adversely and disproportionately affected by the opioid epidemic, Verree Pharmacy was the top retail pharmacy purchasing oxycodone in the entire state of Pennsylvania,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Spivack and Verree Pharmacy routinely demonstrated total disregard for their professional and ethical obligations, and improperly dispensed powerful painkillers when numerous warning signs were present.”

“The Medicare and Medicaid Programs provide vital prescription drug services to their beneficiaries,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office for the Department of Health and Human Services, Office of Inspector General. “Pharmacies are required to only bill for prescriptions and products they actually provide to their patients. HHS-OIG will continue to work with the U.S.  Attorney’s Office, the Pennsylvania Attorney General’s Office, and the DEA to investigate allegations of fraudulent insurance billings.”

“We know that nearly 80% of those who use heroin first started with misusing a prescription opioid,” said Attorney General Josh Shapiro. “Today, this pharmacy and their owner took a critical step in resolving the civil suit against them for allegedly filling prescriptions outside of medical standards for the highly addictive drug oxycodone. In addition to the owner’s criminal plea, this civil settlement will get them out of the drug business for good. The opioid crisis killed 5,438 Pennsylvanians last year – and we can’t afford to lose one more life. Pharmacies and medical professionals have a responsibility under the law to dispense these drugs only when appropriate.”

If the public has any information regarding Verree Pharmacy or any other health care fraud allegation, individuals should contact the HHS-OIG hotline at 800-HHS-TIPS.

The case is being investigated by the Philadelphia Field Division of the DEA, the Pennsylvania Department of State’s Bureau of Enforcement and Investigation, HHS-OIG, and the Pennsylvania Office of the Attorney General, with additional assistance from the HHS-OIG Office of Audit Services, Office of Personnel Management Office of Inspector General, the Defense Health Agency, and the Defense Criminal Investigative Service. The civil investigation and litigation are being handled by Assistant United States Attorneys Anthony D. Scicchitano and Sarah L. Grieb and auditors Dawn Wiggins and George Niedzwicki. The related criminal charges are being prosecuted by Assistant United States Attorney M. Beth Leahy and Special Assistant United States Attorney Linda Montag from the Pennsylvania Office of the Attorney General.

Except for what has been admitted in the criminal proceeding, the complaints in the civil litigation contain allegations only that the United States must prove if the case proceeds to trial. The proposed consent judgment would resolve any alleged civil liability as to Spivack, Inc. d/b/a Verree Pharmacy and Mitchell Spivack. The United States’ civil litigation against the remaining pharmacy employee defendants remains ongoing.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Natanael Alberto Montas, 33, of Philadelphia, PA, was charged by Superseding Indictment with attempted murder and assault of a federal officer, and multiple firearms and narcotics offenses, all stemming from his leadership of a fentanyl trafficking organization operating primarily in the Kensington section of Phildelphia. Kirsis Francisca Caceres, 36, also of Philadelphia, PA, was also charged with narcotics offenses for her role in the organization.

According to the Superseding Indictment, Montas was the leader of a drug trafficking group (DTG) that obtained bulk quantities of fentanyl to package and re-distribute the drugs to street-level organizations. In this role, Montas allegedly oversaw the entire operation, which included maintaining stash houses in Philadelphia which were utilized to mix, cut, and package the narcotics for resale to street-level dealers. Caceres and others in the DTG followed the direction of Montas, utilizing stamps to market and identify their product with names like ‘Walgreens,’ ‘F150,’ ‘RedBull,’ ‘Polo,’ ‘Monster,’ and others. Further, Montas maintained firearms at his disposal to protect himself and his drug trafficking business.

After several weeks of surveillance by law enforcement, in March 2021, investigators approached a vehicle being driven by Montas in which they believed he was transporting illegal narcotics. In an effort to evade officers, Montas led police on a high-speed chase through the narrow streets of Philadelphia’s Mayfair neighborhood, driving around stopped vehicles until he could no longer navigate on the roads, and ultimately fled on foot through backyards and alleyways. When he was confronted by a federal task force officer in pursuit, Montas allegedly fired a shot at the officer, which fortunately missed. As the officer took cover, Montas fired three more shots before breaking into a private residence occupied by a woman and two children, where he was ultimately apprehended. Montas, Caceres and others in the DTG were eventually apprehended following this dramatic series of events.

“Fentanyl is one of the deadliest narcotics flooding the streets of our country; Montas and the operation he directed made sure there was a steady supply of it right here in Philadelphia,” said U.S. Attorney Romero. “And his danger to the community did not end there: he directly threatened the lives of dozens of people when he fled from law enforcement, and is now charged with attempting to take the life of a federal officer. We will continue to work with our federal and local law enforcement partners to get dangerous criminals like this defendant off the streets.”

“Let this indictment serve as a crystal clear message that any acts of violence committed against a federal agent will be investigated and prosecuted to the fullest extent of the law,” said Thomas Hodnett, Special Agent in Charge of Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “As if Montas and Caceres’ alleged distribution of illicit fentanyl wasn’t dangerous enough to the community, they allegedly stock-piled numerous firearms in furtherance of their drug-trafficking activities. Montas’ alleged shooting at a task force officer assigned to our office will not be without a severe consequence.” 

The case was investigated by the Drug Enforcement Administration as part of Operation Relentless Pursuit, and is being prosecuted by Assistant United States Attorneys Jason Grenell and Erica Kivitz.

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 Aasim Harps-Busbee, 22, of Philadelphia, PA, was charged by Indictment with one count of possession of a firearm by a felon, and one count of possession of ammunition by a felon. The charges stem from a series of documented posts on social media and an incident during which the defendant was found in possession of ammunition.

According to the Indictment and other court documents filed in this case, on May 25, 2022, the defendant was convicted of state charges of carjacking and statutory sexual assault, in the Philadelphia County Court of Common Pleas.  Both offenses are felonies and punishable by more than one year in jail, thus rendering the defendant ineligible to possess firearms or ammunition under federal law.

Between July 6 and July 11, 2022, Harps-Busbee allegedly posted pictures to social media accounts that included a firearm and an offer to sell a firearm to any willing buyer for a specified price. When PPD and ATF initially located the defendant on July 11, 2022, he was not in possession of a firearm; however, he was in possession of six rounds of ammunition. Harps-Busbee later admitted to investigators that he possessed the firearm that he posted pictures of on social media. The defendant was arrested on July 19, 2022, and was detained pending trial.

“Being a felon in possession of a firearm, ammunition, or both are all serious offenses, particularly in a city like Philadelphia where violent crime and gun violence are significant problems,” said U.S. Attorney Romero. “Our Office is determined to continue doing everything we can to reduce gun violence in our city by investigating and arresting criminals like Harps-Busbee so they remain off the streets for a long time.”

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 Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 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 – United States Attorney Jacqueline C. Romero announced that Steven Pennycooke, 36, of Philadelphia, PA, was sentenced to four years and nine months in prison, three years of supervised release, and ordered to pay a $1,000 fine by United States District Court Judge John M. Gallagher for being a previously convicted felon illegally in possession of a firearm in connection with looting during a period of civil unrest and mandatory curfew in the City of Philadelphia in Spring 2020.

In April 2022, the defendant was convicted after trial of a single count of possession of a firearm by a felon. In June 2020, Philadelphia Police officers responded to a 911 call reporting that two men were seen pushing a looted ATM down a street in West Philadelphia. When the officers approached the block indicated in the call, they observed two men standing in the street less than a half a block away from a looted ATM loaded onto a cart. When the officers got closer to the suspects, they observed the defendant throw something into a vehicle; and one of the officers looked through the vehicle’s window and observed a firearm in the backseat. According to court documents, after both suspects were taken into custody, the defendant’s companion told police that they were both carrying firearms because, “they purging out here,” and because the defendant had recently been shot while at a gas station. As a previously convicted felon in the Commonwealth of Pennsylvania in 2011, Pennycooke was prohibited from owning or possessing a firearm.

“The crime of being a felon in possession of a firearm is a serious offense, particularly in Philadelphia where gun violence has been and continues to be our city’s most pressing threat to public safety,” said U.S. Attorney Romero. “Repeat offenders like this defendant, who knowingly illegally carry handguns, are actively contributing to the dangerous circumstances on our streets, and our Office is doing all we can to combat and deter that criminal activity.”

“Gun violence has claimed and affected far too many lives in this city, so every illegal weapon taken off the street is a step in the right direction,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Philadelphia police discovered an armed Steven Pennycooke out and about amidst looting and unrest. This was someone who’d done time for a violent assault with a firearm. He wasn’t permitted to have a gun, he knew it, and he tried to hide it, so back behind bars he goes — in federal prison. The FBI and PPD will continue to work together to lock up criminals who refuse to respect the law. We’ve got to make Philadelphia safer all around.”

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Alexandra Lastowski and Derek Hines.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Lee D. Weiss, 51, of Roslyn, NY, and Newton, MA, was sentenced today to five years in prison, three years of supervised release, and was ordered to pay $7.5 million in restitution and a $250,000 fine for his conviction of investment adviser fraud. The charges arose from Weiss’ multi-year investment scam that targeted his own clients and caused investor losses of more than $7 million.

In March 2022, the defendant pleaded guilty to investment adviser fraud in connection with this scheme to defraud his clients. Weiss was the principal of Family Endowment Partners, LP, an investment adviser registered with the U.S. Securities and Exchange Commission, which had an office in West Chester, PA, before it was closed by order of the SEC. The defendant used his position to fleece his own clients of millions of dollars through purported investments in a now-defunct Florida tobacco company and a series of private securities offerings. Weiss told his clients that their money would be used for investment purposes when, in fact, he diverted it to make Ponzi payments and to fund his lifestyle, and further told his clients that they were making money when their funds had already been misappropriated. Weiss continued to lie to them about the value of their investments to prevent them from learning of his thefts and to convince them to continue paying him fees for “managing” their money.

“Honesty, integrity, and trust all play a critical role in the relationship between a financial advisor and a client; when the advisor corrupts that relationship, the damage done to the financial security of the client can be catastrophic,” said U.S. Attorney Romero. “The end result is as devastating and traumatic as if the victim had been robbed at gunpoint, and therefore we take it just as seriously. We will continue to hold accountable those who, like Mr. Weiss, commit life-shattering financial crimes.”

“Lee Weiss’s clients expected him to invest their money responsibly and he had a fiduciary duty to do so. Instead, he misappropriated millions for his and his company’s purposes,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “He used their funds for everything from car payments, to country club fees, to payouts to previous investors. Justice demands that financial fraudsters like Weiss be held accountable for their crimes and today’s sentencing ensures that.”

“The Postal Inspection Service has a long history of investigating investment frauds,” said Damon Wood, Inspector in Charge of the Philadelphia Division of the Postal Inspection Service. “Today, Lee Weiss was sentenced for stealing millions of dollars from his clients, clients who had trusted him to invest their money in safe, blue-chip investments. Through a web of corporate entities, Mr. Weiss hid the reality of his investment strategy and his failing business and stole his clients’ money to cover his own losses and continue living well. Thanks to the hard work of the Postal Inspectors, special agents from the FBI and the Assistant United States Attorneys, Mr. Weiss has been held accountable for his deceitful practices.”

The case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service, and is being prosecuted by Assistant United States Attorneys Paul Shapiro and Nancy E. Potts. The U.S. Attorney’s Office appreciates the substantial assistance of the U.S. Securities and Exchange Commission in this matter.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that William Merlino, 85, of Mays Landing, NJ, was convicted at trial of selling misbranded drugs online, arising from his scheme to sell a toxic industrial chemical as a weight-loss drug which he manufactured in a lab in his home.

In December 2019, the defendant was charged with one count of introduction of misbranded drugs into interstate commerce in connection with operating a business through which he packaged and sold Dinitriophenol (DNP) for human consumption from at least November 2017 until March 2019. In the 1930s, before the law required drugs to be proven safe before they were marketed, DNP was used as a weight-loss drug despite significant negative side effects, including dehydration, cataracts, liver damage, and death. The chemical has never been approved for human consumption by the U.S. Food and Drug Administration, but has a variety of industrial/commercial uses, such as herbicides, dyes, and wood preservatives. Using Twitter to advertise, eBay to sell, and email to communicate with clients, Merlino earned approximately $54,000 from clients in the U.S., Canada, and the U.K. through the sale of this drug. During trial, a witness from the shipping service the defendant used to ship the drug to customers testified that they referred to Merlino among their colleagues as ‘the yellow man,’ due to the fact that every time he would bring in a package to ship, he would have yellow dust from the chemical on his skin, nails and clothes.

After a year-long investigation by the FDA, investigators served a search warrant at the defendant’s residence, where they found bulk DNP, packaging and encapsulating materials, and a pill press. Subsequently, while awaiting trial on this charge, Merlino faked a diagnosis of pancreatic cancer in order to attempt to avoid trial; the jury heard evidence that the defendant altered a doctor’s letter and his medical records. As a result, the defendant is now separately facing obstruction of justice charges related to these fraudulent submissions to the court.

“The United States sets standards for the foods and drugs we ingest in order to keep American consumers and patients safe,” said U.S. Attorney Romero. “The defendant knowingly skirted our country’s regulations by marketing an unsafe chemical to people hoping for a quick and easy solution. This scheme put many people’s health and safety at risk. We urge everyone to refrain from ingesting DNP for any reason.”

“The distribution of misbranded, unapproved and dangerous drugs in the U.S. marketplace 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 Postal Service has no interest in being the unwitting accomplice to anyone using the U.S. Mail to distribute contraband or other harmful substances,” said Damon Wood, Inspector in Charge of the Philadelphia Division of the United States Postal Inspection Service. “One of the Inspection Service’s key objectives is to rid the mail of illegal and dangerous substances that at best fleece our fellow citizens, and at worst, cause serious harm. William Merlino is no different than the snake oil salesmen from a century ago. Thanks to hard work of the Inspectors, Special Agents from the FDA and an Assistant United States Attorney’s Office, a jury saw through Merlino’s lies and held him accountable.”

The case was investigated by U.S. Food & Drug Administration Office of Criminal Investigations, U. S. Postal Inspection Service, and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Joan Burnes

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Maurice Bertrand, 34, of Newark, DE, pleaded guilty just before jury selection was set to begin for trial in front of United States District Court Judge Harvey Bartle III, to one count of fraudulently obtaining oxycodone, and one count of attempting to fraudulently obtain oxycodone. 

In September 2019, the defendant was charged in connection with his scheme to present forged prescriptions written under the name of a Center City doctor whom he had never met at a Marcus Hook area pharmacy. Evidence which would have been presented at trial would have shown that in May 2019, Bertrand obtained 90 oxycodone tablets, and in June 2019, he was intercepted by law enforcement while attempting to obtain 120 oxycodone tablets.

The charges against Bertrand and 12 other defendants were originally announced as part of the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Department of Justice Criminal Division’s Fraud Section, and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania and the District of New Jersey. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics. Bertrand is the last of the 13 total defendants to plead guilty to federal charges in connection with this investigation and faces up to eight years in prison.

“Stopping prescription fraud in order to stem the tide of illegal opioid distribution and addiction in our District is a top priority for our Office,” said U.S. Attorney Romero. “This thirteenth and final conviction in this investigation demonstrates our commitment to cutting off the supply of addictive drugs diverted to the streets in order to keep our communities safe.”

These cases were investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the U.S. Department of Health and Human Services Office of Inspector General, with assistance from the Easttown Township Police Department. The case is being prosecuted by Assistant U.S. Attorney David E. Troyer.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Karanjot Singh, 25, of Upper Darby, PA, was sentenced to one year and eight months in prison, and three years of supervised release by United States District Judge Joel H. Slomsky for cyberstalking a woman online for the better part of a year.

Beginning in March 2020 and continuing for more than 9 months, the defendant stalked a woman online by sending in excess of 100 sexually violent and threatening text messages to her. The defendant terrorized her repeatedly, messaging her at all hours of the day and night with escalating threats to rape and murder her and her family members. In order to disguise his true identity and as part of the course of his harassment of the victim, the defendant used multiple cell phone applications that allowed him to create numerous anonymous phone numbers. Following an intensive investigation, agents with the Federal Bureau of Investigation ultimately traced each of the “anonymous” phone numbers and linked them to the defendant, after which he was arrested.

“This defendant used his words as weapons, sending threatening messages and personal information to reinforce the targeted bullying of his victim,” said U.S. Attorney Romero. “His behavior very well could have escalated, which is why sending threatening communications is a crime, and why our Office and our partners take threats so seriously.”

“Singh was strategic in his cyber torment of his victim,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “His actions were intended to inflict emotional harm and the fear of physical violence and that’s exactly what they did. Cyberstalking is a serious crime, and you can be sure the FBI will work to unmask and hold accountable anyone who uses today’s technology in such a vile way.”   

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

PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero announced that Gavin Lee Casdorph, 23, of Anchorage, Alaska, was sentenced to five years and three months in prison, three years of supervised release, and ordered to pay over $7,700 in restitution and a $1,000 fine by United States District Court Judge Edward G. Smith for making false threats against Lafayette College in Easton, PA.

In April 2020, the defendant pleaded guilty to one count of willfully making false threats in connection with claims he made online stating he planned to detonate several bombs across the Lafayette College campus. In 2018, while using the handle “BdanJafarSaleem.,” Casdorph posted on Twitter that he planned to bomb multiple locations on campus and pledged allegiance to ISIS. He included with his Twitter post an image of the ISIS flag and a photograph of several firearms. The defendant also sent a mass email to members of the College’s admissions staff containing similar disturbing threats and imagery.

Investigators quickly determined that the bomb threats were a hoax, and arrested Casdorph in Anchorage, Alaska in December 2018.

“This defendant thought he could make threats from the other side of the continent with impunity, but the dedicated agents of the FBI on this case proved him wrong,” said U.S. Attorney Romero. “Threats of mass violence and destruction, especially on school campuses or any public place, are taken extremely seriously by our Office and our federal partners. As was the case here, we will not stop until the culprits are identified, arrested and brought to justice.”

“The FBI takes all threats of violence seriously, as Gavin Casdorph learned the hard way,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “I hope today’s sentencing sends a message that hoax threats aren’t a joke, they’re a crime. Please don’t let keyboard courage short-circuit your future. Anyone who tries something like this shouldn’t be surprised when the FBI rolls up at your front door.”

This case was investigated by the Lafayette College Department of Public Safety, Easton Police Department, and the Federal Bureau of Investigation, Philadelphia and Anchorage Divisions. It is being prosecuted by Assistant United States Attorney Joseph LaBar. Additional assistance was provided by the U.S. Attorney’s Office for the District of Alaska.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Shaquan Johnson, 23, of Philadelphia, PA, was sentenced to 11 years in prison, five years of supervised release, and ordered to pay $1,000,000 in restitution by United States District Court Judge R. Barclay Surrick for his participation in a home invasion robbery during which the defendant and his accomplices victimized the homeowners’ teenage daughter and stole approximately $1 million in currency and jewelry, and for smuggling contraband into federal prison while he was detained for the robbery.

In March 2022, the defendant pleaded guilty to charges of conspiracy to commit Hobbs Act robbery, Hobbs Act Robbery and brandishing a firearm during the commission of a violent crime in connection with the robbery incident in August 2018. According to court documents, Johnson and three co-defendants victimized the 17-year-old girl in her home while stealing the cash and valuables owned by her parents. Specifically, while she lay sleeping around midnight, the men entered her bedroom, pulled her from her bed, and struck her several times. They then held her at gunpoint and robbed her family of their life savings—the proceeds of their restaurant business a block-and-a-half away on Washington Avenue in South Philadelphia.

Further, while detained for the robbery charge in the Federal Detention Center in Philadelphia, the defendant was charged with using an infant to illegally bring narcotics and a cell phone into the prison. In March 2022, the defendant pleaded guilty to two counts of obtaining contraband in prison.

“Mr. Johnson and his accomplices not only victimized a family by violating the sanctity of their home and stealing the life savings for which they worked very hard, they also physically assaulted their daughter while they thought she was safely at home in her bed,” said U.S. Attorney Romero. “I imagine it will take many years for this family to feel whole and secure again. Spending more than a decade in prison will give the defendant some time to reflect on the damage his crimes caused, and serve as a warning to others who might be considering engaging in similar behavior.”

“Thanks to the diligent work of the investigators and prosecutors assigned to this case, the victims finally have justice for this horrific crime,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “ATF works tirelessly with the Philadelphia Police Department and United States Attorney’s Office to keep the public safe from this type of violence. Today, the community is safer knowing this violent individual will be behind bars for a long time.”

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 Sarah Damiani.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Old Man’s Home of Philadelphia d/b/a Saunders House will pay $819,640 to settle claims that the skilled nursing facility provided medically unnecessary rehabilitation therapy to residents to maximize revenue, and without prioritizing clinical needs. Saunders House is located in Wynnewood, PA.

The settlement resolves allegations in a whistleblower complaint filed in federal court in the Eastern District of Pennsylvania under the qui tam provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblower, a physical therapist assistant who provided physical therapy services at Saunders House through his employment with a contracted therapy provider, generally alleged that Saunders House overbilled federal healthcare programs such as Medicare for therapy services. He alleged that Saunders House: (a) overbilled federal healthcare programs such as Medicare for therapy services provided; (b) billed for services not provided; (c) billed for unreasonable, unnecessary, and sometimes harmful therapy; and (d) allowed the therapy provider to manipulate clinical services to maximize billing.

During the relevant time period, Medicare Part A paid for services rendered to a beneficiary in a skilled nursing facility at a daily rate based, in part, on a Resource Utilization Group (RUG) to which the beneficiary is assigned. Each distinct RUG was intended to reflect the anticipated costs associated with providing nursing and rehabilitation services to beneficiaries with similar characteristics or resource needs. The highest reimbursement level was Ultra High or RU. The resolution is based on claims that Saunders House caused the submission of false claims for Ultra High RUG therapy levels despite evidence that the RU level of therapy was not reasonable or necessary for the respective patients.

“Focusing on profits over the needs of individual patients violates the public trust and creates a potential for harm of some of the most vulnerable among us,” said U.S. Attorney Romero. “It also shifts taxpayers’ funds away from the vital services of law-abiding therapy providers. We thank the whistleblower for helping to make the government aware of these allegations. We also thank Saunders House for fully cooperating with the government’s investigation—that cooperation was taken into account when determining an appropriate resolution of these allegations.”

“Protecting the integrity of our Medicare program is of the utmost importance,” said Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services, Office of the Inspector General. “Patients need to depend on the decisions made by their health care providers and know those decisions are made to improve their conditions and not to increase providers’ individual profits. HHS-OIG will continue to work with the U.S. Attorney’s Office to investigate allegations of fraudulent actions.”  

Assistant United States Attorneys Landon Y. Jones III and Elizabeth L. Coyne handled the case in the Eastern District of Pennsylvania, with assistance from auditor Dawn Wiggins, and worked with Albert Mayer, Trial Attorney, of the Civil Fraud Section of the Department of Justice. The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General.

The Department of Justice, committed to protecting our nation’s seniors through its Elder Justice Initiative, works in coordination with U.S. Attorneys’ Offices to support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice.

The case is docketed as United States et al. ex rel. Carson v. Select Rehabilitation, Inc., et al., Civil Action No. 15-5708 (E.D. Pa.). The settled civil claims are allegations only. There has been no determination of civil liability.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced an agreement with Del Frisco’s Double Eagle Steakhouse in Philadelphia to resolve the Department of Justice review of the restaurant for compliance with the Americans with Disabilities Act (ADA). The government inspected the restaurant for ADA compliance as part of its review of 25 Philadelphia restaurants launched by the United States Attorney’s Office for the Eastern District of Pennsylvania in 2015. These restaurants were not reviewed in response to any specific complaint.

Del Frisco’s Restaurant Group, Inc. (“Del Frisco’s”) entered into a Voluntary Compliance Agreement to resolve the government’s ADA compliance review of its Philadelphia Del Frisco’s Double Eagle Steakhouse location on Chestnut Street. Designed and built in what was a nearly empty space in 2008, the restaurant was found to have a number of architectural barriers that violate the ADA, which President George H.W. Bush signed into law 32 years ago this week.

The agreement announced today requires the restaurant to take steps to remove specific barriers to accessibility identified by the Department of Justice during its inspection. The agreement also requires Del Frisco’s to identify and correct violations of the ADA that may exist in each of its other locations nationwide, including 16 Del Frisco’s Double Eagle Steakhouse restaurants and 17 Del Frisco’s Grille locations.

“The U.S. Attorney’s Office initiated this compliance review to ensure that individuals with disabilities have equal access to area restaurants to the full extent guaranteed by the Americans with Disabilities Act. The agreement announced today furthers that important goal,” said Romero. “Restaurants and other businesses must comply with the applicable accessibility provisions of the ADA. If they do not, we will continue to take all practical steps within our power to enforce compliance, including litigation if necessary.”

The U.S. Attorney’s Office for the Eastern District of Pennsylvania has a proud history of prioritizing civil rights enforcement and the ADA in particular; it has continued that tradition in recent efforts. For example, in February 2020, the Office began a review of all polling places in the District to ensure compliance with the ADA in advance of the November election. In April 2019, in response to an investigation initiated by the Office, Thomas Jefferson University Hospitals, Inc., executed a settlement agreement in which it agreed to address barriers to access for individuals who use wheelchairs in Jefferson’s radiology outpatient clinic. After a lengthy investigation, in March 2019, the Pennsylvania Department of Education signed a settlement agreement to address alleged discrimination against students with disabilities in its alternate education programs. In a March 2018 settlement agreement, Allergy & Asthma Specialists, P.C. agreed to fix barriers to access for deaf individuals at its Jenkintown facility.

The ADA compliance review of Del Frisco’s was handled by U.S. Attorney Jacqueline C. Romero, previously the Civil Rights Coordinator for the Eastern District of Pennsylvania, former Assistant U.S. Attorney John T. Crutchlow, and Assistant U.S. Attorney Lauren DeBruicker.

For resources on ADA compliance, visit www.ada.gov. To report a suspected violation of the ADA, visit www.ada.gov and click “File an ADA Complaint,” or email the U.S. Attorney’s Office for the Eastern District of Pennsylvania at [email protected].

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Lore Elisabeth Blumenthal, 35, of Philadelphia, PA, was sentenced to two and a half years in prison (30 months), two years of supervised release, and was ordered to pay more than $95,000 restitution by United States District Court Judge R. Barclay Surrick in connection with the arson of two Philadelphia Police Department (PPD) vehicles during the Spring 2020 civil unrest in Philadelphia.

In June 2020, the defendant was charged by criminal complaint following investigations into multiple arsons of law enforcement vehicles during the protests that occurred in response to the killing of George Floyd in Minneapolis, MN. The charges stemmed from incidents which occurred on May 30, 2020, during which Blumenthal set fire to two PPD vehicles that were parked on the north side of Philadelphia City Hall. In March 2022, the defendant pleaded guilty to two counts of obstructing, impeding and interfering with law enforcement officers engaged in the lawful performance of their official duties during the commission of a civil disorder.

“Now that several of those arrested in Philadelphia in connection with arsons during the 2020 racial justice protests have been sentenced in federal court, it is important to reflect on the gravity of what happened in our city and across the country,” said U.S. Attorney Romero. “We witnessed a movement that spurred thousands of people to take to the streets to peacefully protest unequal treatment under the law, but some saw it as an opportunity to commit violent, destructive crimes that endangered the lives of many, and ultimately robbed taxpayer-funded resources from the mission of protecting the public. That is unacceptable, and our Office will continue to work to ensure that all Americans can safely and freely exercise their First Amendment rights, while holding accountable those who would hijack peaceful protests for their own violent and selfish ends.”

“Today’s sentencing sends a clear message—when you are intent on conducting a violent act that breaks federal law, ATF and our law enforcement partners will make sure you are held accountable,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “This type of violent behavior puts our entire community in danger, so the outcome of this investigation is a small victory for all citizens of the Commonwealth.”

“Peacefully protesting is protected activity. Purposeful arson and destruction of property — those are crimes,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The actions of Lore Elisabeth Blumenthal and others who similarly crossed the line endangered law enforcement and countless bystanders alike, and proved a huge distraction from the message carried by protesters seeking social justice. There are productive ways to express your anger and desire for change, but violence will never be one of them.”

“Investigative successes like this are a testament to the interagency cooperation being practiced by partnering agencies united in the common goal of ensuring our national security and keeping our communities safe,” said William S. Walker, Special Agent in Charge for the HSI Philadelphia Field Office. “I am exceptionally proud of how HSI Philadelphia’s Special Agents and Analysts teamed together with our federal, state and local partners in this case, utilizing technology and collaboration to bring the defendant to justice.”

The case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, and Firearms and the Philadelphia Police Department and the Philadelphia Fire Marshal’s Office, with assistance from the New Jersey Office of Homeland Security and Preparedness, and is being prosecuted by the United States Attorney’s Office for the Eastern District of Pennsylvania.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Kevin Jamelle Archie, 40, of Philadelphia, PA, was sentenced to eight years and four months in prison,  and three years of supervised release by United States Court Judge Joel H. Slomsky for illegally possessing a loaded firearm.

In May 2019, the defendant was convicted after trial of being a felon in possession of a firearm. The charges stemmed from an incident in September 2016, when Philadelphia Police officers responded to a 911 call for a person with a gun in the area of Frankford Avenue and Pacific Street in the Harrowgate section of lower Northeast Philadelphia. Officers approached Archie when they saw him drop a black metallic object near the wheel well of a parked car and heard the object hit the ground. The officers recovered a firearm loaded with ten rounds of ammunition, and subsequently arrested the defendant. At the time of his arrest, Archie had previously been convicted of a felony – possession with the intent to distribute controlled substances – which barred him from legally possessing a firearm.

“This is the second such sentence handed down today in two different, unrelated cases that are strikingly similar: both defendants were convicted by juries of the charge of being a previously convicted felon in possession of a firearm, both incidents occurred in a particularly violent section of the city, and both defendants attempted to discard the firearms they were carrying so as not to be caught by police,” said U.S. Attorney Romero. “These cases are noteworthy even if they appear to be simple at first glance because they demonstrate our commitment to fighting violent crime by targeting the most dangerous, repeat offenders.”

“There is no place in our community for firearms to be in the hands of convicted felons,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Office.  “ATF will always remain steadfast in our efforts to collaborate with our law enforcement partners and reduce violent crime.  Identifying, investigating, and incarcerating armed felons that threaten the safety of the community is at the forefront of our efforts to combat gun 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 is being prosecuted by Assistant United States Attorney Tom Zaleski.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Asa Jackson, 40, of Philadelphia, PA, was sentenced to nine years in prison and three years of supervised release by United States District Court Judge Mark A. Kearney for illegally possessing a loaded firearm.

In March 2022, a jury convicted Jackson of unlawfully possessing a firearm after having been previously convicted of a felony. The charges stemmed from an incident in May 2020 in the Harrowgate section of Philadelphia during which Philadelphia Police officers responded to a 911 call that someone had assaulted two women inside a Frankford Avenue corner store and threatened them with a firearm. When officers arrived, they observed a man one block away who fit the description in the call, later identified as Jackson. When Jackson saw the police, he ducked between two parked vehicles and dropped the firearm to the ground. Police apprehended Jackson and recovered a loaded pistol. At the time of his arrest, Archie had previously been convicted of a felony which barred him from legally possessing a firearm.

“Reducing violent crime – especially gun crime – is a priority for our Office, and deterring individuals from illegally carrying weapons on the streets of Philadelphia is part of our strategy,” said U.S. Attorney Romero. “We are committed to working with the Philadelphia Police Department and other law enforcement partners to target the most dangerous, repeat offenders and bring them to justice.”

“This sentence ensures that a violent criminal is taken off the streets for a long time,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “Keeping our communities safe from violent felons like Jackson 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 Attorney Tiwana Wright.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that DeWitt Drayton, 46, of Philadelphia, PA, was sentenced to 10 years in prison, and five years of supervised release by United States Senior District Court Judge Anita B. Brody for manufacturing counterfeit pills using controlled substances, including methamphetamine, and for unlawfully possessing three firearms.

In March 2022, the defendant pleaded guilty to the charges of possession with intent to distribute methamphetamine, and two counts of possession of a firearm by a felon. The defendant was charged with these offenses after federal investigators executed a search warrant at his home and uncovered what can be described only as a drug lab. This included multiple pill press machines and other supplies, which the defendant had been using to manufacture counterfeit prescription painkillers using a variety of narcotics, including fentanyl and the horse tranquilizer Xylazine, as well as methamphetamine-laced ecstasy pills.  Investigators recovered thousands of pills, which the defendant had manufactured, and which were destined for sale on the streets of Philadelphia. The discovery of these items was not surprising, as federal authorities had been tracking the defendant’s purchases of pill-making supplies from China and elsewhere.

Agents also executed a search warrant at a property in New Jersey used by the defendant, and between the two properties, they recovered three firearms, two of which had obliterated serial numbers, and all of which the defendant was prohibited from possessing given his criminal history.

“Drug distribution and gun violence are an epidemic in Philadelphia and the federal government is aggressively prosecuting both in order to get dangerous, repeat offenders like this defendant off the streets,” said U.S. Attorney Romero. “DeWitt Drayton was a large-scale drug manufacturer and illegally possessed multiple firearms to protect his business, which are both offenses that put our community and the people who live here at risk. We want to thank our law enforcement partners in this case, the DEA and HSI, for their hard work and dedication.”

“Drayton was responsible for manufacturing and distributing fake opioid pills containing illicit fentanyl and fake stimulant pills containing methamphetamine out of a house in the heart of the Kensington section of Philadelphia,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “The current overdose crisis is largely driven by criminals like Drayton who flooded our streets with fentanyl-laced fake pills.  Learn more about the dangers of fake pills through our One Pill Can Kill public awareness campaign, which can be accessed at www.dea.gov/onepill.”   

“This sentencing demonstrates how Homeland Security Investigations (HSI) Philadelphia Cyber Crime Investigations Task Force (C2iTF) working hand in hand with partners from the Drug Enforcement Administration, Philadelphia Police Department, Customs and Border Protection and the Pennsylvania State Police actively seeks to hold accountable criminals whose actions harm Americans,” said William S. Walker, Special Agent in Charge for the HSI Philadelphia Field Office. “Methamphetamine and illicit firearms are significant contributors to public safety concerns, and we will continue to dismantle criminal organizations which prey upon our communities.”

The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, Customs and Border Protection, the Pennsylvania State Police and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Timothy M. Stengel.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that the Department of Justice, the Consumer Financial Protection Bureau (CFPB), and the Attorneys General of Pennsylvania, New Jersey, and Delaware announced today agreements to resolve allegations that Trident Mortgage Company (Trident), which is owned by Berkshire Hathaway, Inc., engaged in a pattern or practice of lending discrimination by “redlining” in the Philadelphia metropolitan area, including neighborhoods in Philadelphia, Camden, and Wilmington. This resolution represents the Justice Department’s first redlining settlement against a mortgage company and is the second-largest redlining settlement in Justice Department history.   

“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in certain communities or postal zip codes because of the race, color, or national origin of persons residing there. Under a proposed federal consent order, which is subject to court approval and was filed in conjunction with a complaint today in the U.S. District Court for the Eastern District of Pennsylvania, Trident has agreed to invest over $20 million to increase credit opportunities in neighborhoods of color in the Philadelphia metropolitan area. Trident will also pay a civil money penalty of $4 million.

The complaint filed in federal court alleges that: (1) Trident violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color, or national origin in their mortgage lending services; (2) Trident further violated the Consumer Financial Protection Act, which prohibits offering or providing to a consumer any financial product or service not in conformity with federal consumer financial law; (3) from at least 2015 to 2019, Trident failed to provide mortgage lending services to neighborhoods of color in the Philadelphia metropolitan area; (4) Trident concentrated its offices in majority-white neighborhoods; (5) Trident failed to direct its loan officers to serve—and its loan officers did not serve—the credit needs of neighborhoods of color; (6) Trident’s outreach and marketing avoided those neighborhoods; and (7) Trident’s loan officers and other employees sent and received work e-mails containing racial slurs and messages referring to communities of color as “ghetto.”

The $20 million that Trident agrees, under the proposed consent order, to invest to increase credit opportunities for residents of neighborhoods of color in the Philadelphia metropolitan area includes at least: $18.4 million in a loan subsidy fund; $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit; $875,000 for advertising and outreach; and $375,000 for consumer financial education.

Because Trident is no longer lending, it will contract with another lender to provide loan subsidies and services to the “redlined” communities and will ensure that the lender: maintains at least four mortgage loan officers dedicated to serving neighborhoods of color in and around Philadelphia, Camden, and Wilmington; maintains at least four office locations in those neighborhoods; and employs a full-time manager of community lending who will oversee the continued development of lending in neighborhoods of color in the Philadelphia metropolitan area.

Separately, Trident has also entered into agreements with the Commonwealth of Pennsylvania and the States of New Jersey and Delaware. Under those agreements, which resolve allegations against both Trident and Fox & Roach LP (a real estate affiliate of Trident): Trident will reimburse Pennsylvania and New Jersey for costs that they incurred in conducting their investigations; and Fox & Roach will invest $150,000 in marketing to communities of color in the Philadelphia metropolitan area.  

“For far too many years, Philadelphia’s Black, Latino, and other communities of color have lacked equal access to lending and legal deed ownership. These historically redlined areas of Philadelphia continue to experience disproportionate amounts of poverty, poor health outcomes, limited educational attainment, unemployment, and violent crime,” U.S. Attorney Jacqueline Romero said. “I am pleased that my office could support the Attorney General’s Combatting Redlining Initiative through this resolution, and I look forward to our continued partnership with the Civil Rights Division.”

“Last fall, I announced the Department’s Combatting Redlining Initiative and promised that we would mobilize resources to make fair access to credit a reality in underserved neighborhoods across our country,” said Attorney General Merrick B. Garland. “As demonstrated by today’s historic announcement, we are increasing our coordination with federal financial regulatory agencies and state Attorneys General to combat the modern-day redlining that has unlawfully plagued communities of color.” 

“This settlement is a stark reminder that redlining is not a problem from a bygone era. Trident’s unlawful redlining activity denied communities of color equal access to residential mortgages, stripped them of the opportunity to build wealth and devalued properties in their neighborhoods,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement ensures that significant lending resources will be infused into neighborhoods of color in and around Philadelphia that have historically experienced racial discrimination. Along with our federal and state law enforcement partners, we are sending a powerful message to lenders that they will be held accountable when they run afoul of our fair lending laws.”

“Trident illegally redlined neighborhoods in the Philadelphia area, excluding qualified families seeking to own a home,” said CFPB Director Rohit Chopra. “With housing costs so high, it is critical that illegal discrimination does not put homeownership even further out of reach.”

This settlement is part of the U.S. Attorney General’s Combatting Redlining Initiative, announced in October 2021 and aimed at coordinating agencies’ enforcement efforts to address this persistent form of discrimination against communities of color. The Initiative is expanding the Justice Department’s reach by strengthening partnerships with U.S. Attorney’s Offices around the country, with regulatory partners like CFPB, and with partners in States’ attorney general offices.

The U.S. Department of Justice Civil Rights Division and the CFPB jointly investigated the matter, with support from the U.S. Attorney’s Office. The investigation was coordinated closely with the attorneys general of the Commonwealth of Pennsylvania and the States of New Jersey and Delaware.

A copy of the complaint, as well as additional information about the Justice Department’s fair lending enforcement, can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.

Citizens in the Eastern District of Pennsylvania who believe that they may have been victims of lending discrimination may also contact the U.S. Attorney’s Office for the Eastern District of Pennsylvania at 215-861-8200 or 615 Chestnut Street, Suite 1250, Philadelphia, PA 19106, ATTN: Civil Division Chief Gregory David.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Valentin Ortiz, 73, of Reading, PA, was sentenced to five years and 11 months in prison, five years of supervised release, and was ordered to pay $10,000 restitution by United States District Court Judge John M. Gallagher for repeatedly traveling to the Dominican Republic to engage in a sexual relationship with a 12 year old child, with whom he eventually fathered two children.

In November 2021, the defendant pleaded guilty to one count of travel in foreign commerce with the intent to engage in illicit sexual conduct, and two counts of engaging in illicit sexual conduct in a foreign place. The charges arose from an investigation which began when the defendant, a naturalized United States citizen, applied to bring his spouse to the U.S. by filing paperwork with U.S. Citizenship and Immigration Services (USCIS) in June 2018. The defendant listed August 2013 as the date of their marriage, when his spouse and victim was 18 and he was 65 years old. Investigators discovered that beginning in 2007, when the defendant was 59 and the victim was just 12 years old, he pursued and maintained a sexual relationship with her when he traveled to the Dominican Republic. This ongoing illicit sexual relationship led to the victim becoming pregnant with their two children, when she was 13 and 15 years old, respectively.

“Valentin Ortiz is a sexual predator who targeted a very young and vulnerable victim, travelling internationally so he could prey on this child without the same legal consequences as he might face in the United States,” said U.S. Attorney Romero. “But as a U.S. citizen, he is prohibited from engaging in such abhorrent conduct abroad, and accordingly, he has now been held accountable for his crimes.”

“Catching international predators requires international reach. When it comes to these types of cases, Homeland Security Investigations (HSI) is a premier U.S. government agency working to track, arrest, and convict these appalling criminals,” said William S. Walker, Special Agent in Charge for the HSI Philadelphia Field Office. “This case shows how HSI Philadelphia, along with our colleagues in the Dominican Republic, collaborated closely and stopped at nothing in pursuit of a dangerous sexual predator of children.”

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 Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that the United States filed a civil lawsuit against Murray-Overhill Pharmacy, Inc., located in Media, PA, and its co-owner pharmacist Martin Brian, alleging a years-long practice of illegal dispensing and distribution of opioid and other controlled substances as part of a sex-for-pills scheme. At the same time the civil suit was filed, the United States also filed a proposed consent judgment that, subject to the court’s approval, would resolve the lawsuit. The consent judgment would require Murray-Overhill Pharmacy and Brian to pay $750,000 in civil penalties under the Controlled Substances Act and would permanently prohibit them from dispensing controlled substances or obtaining another controlled substance registration in the future.

In the civil complaint, the United States alleged that Murray-Overhill Pharmacy, Inc., through its pharmacist and co-owner Martin Brian, exploited its access to controlled substances and engaged in a scheme of pills-for-sex with multiple individuals. The United States alleged that police arrived at the rear of the pharmacy due to a report of an unconscious male and female in a car, which contained drug paraphernalia. The complaint alleges that another woman exited the back of the pharmacy followed by Brian, with the woman and Brian initially claiming she came to the pharmacy from Maryland—on a Sunday when the pharmacy was closed—to show pictures of her children. According to the United States’ allegations, additional investigation revealed that the woman received oxycodone and alprazolam from Brian for sexual acts on several occasions over the prior year, without any legitimate prescription.

The complaint also alleges that Brian and Murray-Overhill engaged in a similar pills-for-sex scheme with another woman. Brian allegedly gave the woman bottles of oxycodone and alprazolam from Murray-Overhill multiple times a week without a prescription in exchange for sex acts. The complaint further alleges that additional evidence confirmed the schemes with these individuals, with over a hundred thousand missing pills of opioids and other controlled substances.

Murray-Overhill has already surrendered its pharmacy registration to the DEA. Murray-Overhill Pharmacy and Brian further agreed to resolve their civil liability under terms outlined in the proposed consent judgment, if accepted by the court. Among other things, Murray-Overhill and Brian would pay $750,000 in civil penalties under the Controlled Substances Act. The proposed resolution would also permanently prevent Brian from distributing or dispensing any controlled substances in the future and prevent Murray-Overhill Pharmacy from ever applying for a new controlled substance registration from the DEA.

The Delaware County District Attorney’s Office previously filed criminal charges against Brian for the same conduct.

“This case illustrates that the opioid epidemic continues to damage our communities,” said U.S. Attorney Romero. “This Office will never allow pharmacies and pharmacists, who held positions of trust, to take advantage of their access to controlled substances at the expense of those in our communities addicted to controlled substances.”

“The allegations against Brian that he repeatedly distributed powerful painkillers and other controlled substances in exchange for sexual acts are repulsive and demonstrate Brian’s total disregard for his legal and ethical responsibilities as a pharmacist,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA, working with its partners such as the Delaware County District Attorney’s Office, the Media Borough Police Department, and the Pennsylvania Department of State, will aggressively pursue rogue pharmacists like Brian who are responsible for contributing to the opioid epidemic.”

“This case hits very close to home, involving as it does a pharmacy only a block from the courthouse. While the 81-year old pharmacist maintained a facade of respectability, in trading drugs for sex, he was no better than a dealer selling drugs on a street corner. The public should understand that the law enforcement community is committed to going after the dealers – whoever they may be, and wherever we may find them,” said Delaware County District Attorney Jack Stollsteimer.

The case is being investigated by the Philadelphia Field Division of the Drug Enforcement Administration, the Delaware County District Attorney’s Office, the Media Borough Police Department, and the Pennsylvania Department of State’s Bureau of Enforcement and Investigation. The civil investigation, litigation, and proposed resolution are being handled by Assistant United States Attorney Anthony D. Scicchitano and auditor Dawn Wiggins, and was also handled by former Assistant United States Attorney Paul J. Koob, with assistance from Assistant United States Attorney Anthony St. Joseph.

The complaint contains allegations only that the United States must prove if the case proceeds to trial. The proposed consent judgment would resolve any alleged civil liability.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Naod Tsegay, 22, of Collingdale, PA; Fode Bangoura, 20, of Philadelphia, PA; and Zyier Williams, 19, also of Philadelphia, PA, were arrested and charged by Indictment with bank fraud, aggravated identity theft, possession of stolen United States Postal Service (USPS) keys, and possession of stolen mail. The charges arise from the defendants’ alleged scheme to fraudulently alter and deposit personal and business checks that had been stolen from the U.S. mail. 

The Indictment alleges that between March and June 2021, Tsegay and his co-defendants recruited individuals to provide their bank account and debit card information, and then used those recruits’ bank accounts to deposit checks that had been stolen from blue USPS collection boxes located throughout the Eastern District of Pennsylvania. Each of the victims confirmed that they placed their checks in the mail at various blue collection boxes near their homes but their checks never reached the intended recipients. According to the Indictment, after altering the checks by changing the designated payees and increasing the dollar amount of the checks—often from a nominal sum to a payment of several thousand dollars—Tsegay allegedly deposited the stolen checks into the recruits’ bank accounts and later withdrew or attempted to withdraw the fraudulently deposited funds. The Indictment further alleges that Tsegay was ultimately found in unlawful possession of dozens of checks and money orders stolen from USPS collection boxes, as well as two Arrow Keys—keys belonging to USPS that are used by Postal employees to access blue collection boxes throughout the District. The total amount stolen or attempted stolen as a result of the defendants’ scheme exceeded $200,000.

“The United States Postal Service provides an essential service to nearly every citizen, often conveying income, bills and expenses which are the basis of many livelihoods,” said U.S. Attorney Romero. “If you choose to tamper with or steal U.S. mail for any reason, you can be assured that the federal government will conduct an intense investigation and aggressive prosecution, as we intend to in this case.”

“The United States Postal Inspection Service investigates many different crimes that affect the Postal Service, its customers, or that use the mail in the commission of the crime,” said Damon Wood, Inspector in Charge of the Philadelphia Division. “One of its original missions however, was to investigate the theft of mail. When folks use the mail to pay bills, send birthday cards, send business documents, or simply hope to receive a new pair of shoes that were ordered online, they should do so without fear that those items might be stolen. We have been working, and will continue to work, to identify, investigate, arrest, and support the prosecution of those responsible for stealing mail and shaking our collective trust in the mail system. I want to thank the United States Attorney’s Office and the numerous local police departments for working with us to bring these charges against these three individuals.”

If convicted, the defendants face mandatory terms of imprisonment and a fine of at least $1 million.

The case was investigated by the U.S. Postal Inspection Service and the Yeadon Borough Police Department, and is being prosecuted by Assistant United States Attorney Jessica Rice.

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 William Watts, Sr., 56, of Philadelphia, PA, pleaded guilty before United States District Court Judge Joel H. Slomsky to the charges of receiving and possessing child pornography.

In June 2022, the defendant was charged by Information with child exploitation offenses. The FBI arrested the defendant in October 2021 after investigating a CyberTip from the National Center for Missing and Exploited Children. At the time of his arrest, 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, and as a result of his conviction, he faces a sentence of up to forty years in prison, lifetime supervised release, and mandatory restitution of at least $3,000 per child victim, and other fines and penalties. Watts remains incarcerated at the Federal Detention Center in Philadelphia pending sentencing.

“Watts has admitted to seeking out videos of children being abused for his own gratification – thus adding to the demand for these types of images to be produced and more children to be victimized,” 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.”

“That William Watts repeatedly broke the law while sworn to uphold it is disappointing,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “That he was collecting images of children being sexually abused is disturbing. All those who seek out this despicable material are perpetuating the victimization of innocent children. That’s why the FBI so doggedly pursues these cases. Protecting kids from this physical and emotional trauma is our priority.”

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 Brandon Segers, 34, of Philadelphia, PA, was sentenced to two years and nine months in prison, 3 years of supervised release, and was ordered to pay $142,069 in restitution for fraudulently applying for and obtaining emergency unemployment benefits related to the COVID-19 pandemic. Specifically, Segers and others submitted false applications claiming that prison inmates lost employment as a result of the pandemic, and false weekly certifications that inmates were available to work full-time despite their incarceration.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) program, which provides unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits, including individuals, families, and businesses affected by the COVID-19 pandemic. Eligibility to receive weekly PUA benefits is predicated on an applicant’s unemployment for reasons related to the pandemic, and it requires that the applicant was able to work each day and, if offered a job, would have been able to accept it. Once an applicant is approved to receive benefits, the applicant is required to submit weekly certifications indicating that he or she: was ready, willing and able to work each day; was seeking full time employment; did not refuse any job offers or referrals; and had reported any employment during the week and the gross pay or other payments received.

In April 2022, the defendant pleaded guilty to charges including conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States, and theft of government money. As part of his guilty plea, Segers acknowledged that applications were filed on behalf of inmates who did not lose their job due to COVID. Co-defendant and incarcerated individual, Michael Matthews, transmitted the necessary inmate information for the filing of PUA applications to Segers, a former federal inmate who was previously incarcerated with Matthews, via phone and email. Segers would then file the fraudulent applications and weekly certifications in the name of Matthews and other inmates Matthews provided. Segers compensated Matthews for providing the inmate information by depositing money into his federal prison commissary account. Matthews previously pleaded guilty to related charges and is due to be sentenced on July 22, 2022. Co-defendant Dionne Segers’ case is pending.

“Pandemic Unemployment Assistance and small business loan funds are intended to help working Americans and small business owners continue to pay their bills and make ends meet, even when revenues have dropped dramatically due to the pandemic,” said U.S. Attorney Romero. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. Segers and Matthews fraudulently obtained thousands of dollars in funds that could have helped struggling businesses and individuals.”

“Today, Brandon Segers has been held accountable for using deceit and fraud to line his pockets with PUA funds,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “This is a warning to those out there who think the PUA program is a slush fund. IRS CI, along with our partners, remains committed to investigating those who fraudulently target the PUA program.”

This case was investigated by the United States Department of Labor – Office of Inspector General, and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Timothy Lanni.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that David Abell, 73, of Chincoteague Island, VA, and Rodney Martinez, 51, of Blackwood, NJ, were sentenced today by United States District Court Judge C. Darnell Jones for bribery and fraud offenses in connection with a scheme to defraud SEPTA of approximately $900,000. Abell was sentenced to five years in prison, three years of supervised release, and was ordered to pay over $213,000 restitution and to forfeit nearly $96,300. Martinez was sentenced to two years and six months in prison, three years of supervised release and ordered to pay $292,000 restitution and to forfeit nearly $144,300. Both defendants had pleaded guilty to charges of federal program bribery and federal program theft -- Abell in November 2021 and Martinez in December 2021.

From about 2013 through 2019, management-level employees working in SEPTA’s Bridges and Buildings Department (“BBD”) including Abell, Martinez and Peter Brauner, 59, of Kintersville, PA, engaged in bribery and theft schemes with two SEPTA vendors. The BBD is responsible for maintaining, repairing, and renovating SEPTA facilities throughout the southeastern Pennsylvania region. To facilitate this work, SEPTA issued “procurement cards” (also known as P-Cards) to management-level employees working in the BBD. The P-Cards, which operate as SEPTA credit cards, are to be used for purchasing items needed for the legitimate work of the BBD.

In about 2013, Abell, who was the Senior Director of Maintenance at SEPTA, agreed with two codefendants who were SEPTA vendors, to exploit the P-Card system for their mutual benefit. Abell solicited the vendors to provide him with regular cash payments of approximately $1,000 to $2,000 per month. In exchange for those payments, the vendors falsely billed SEPTA through the P-Card system for items that the vendor was not providing to SEPTA. The false charges to SEPTA covered the cash payments to Abell, plus a substantial additional amount to generate fraud proceeds for the vendor. As part of the corrupt deals with the vendors, Abell encouraged other BBD managers to use and continue to use the vendors for SEPTA purchases, growing the vendors’ business with SEPTA.

At various times, beginning around 2014, several other SEPTA BBD managers began engaging in similar fraud activity with the vendors. Those managers included defendant Martinez, who in 2016 replaced Abell as Senior Director of Maintenance and took over Abell’s legitimate role in SEPTA’s BBD, as well as his role in the fraud and bribery scheme. Martinez regularly solicited cash payments from the vendors under the same arrangement that the vendors had with Abell. The cash payments to Martinez totaled over $144,000. The cash payments to Abell totaled approximately $100,000.

Other BBD managers, including defendant Brauner, individually solicited the vendors for cash and personal items. The vendors agreed to provide the cash and personal items to the managers, and then fraudulently billed SEPTA to cover the cost of those payments and products and to generate additional fraud proceeds for themselves. The personal items provided to the managers included valuable gold coins, electronic devices and appliances, designer clothing, and expensive tools and equipment. Together, the two vendors defrauded SEPTA of roughly $900,000. Brauner, a lower-level participant in the scheme, was sentenced today to two years of probation, and was ordered to pay over $33,000 restitution, also by Judge Jones.

One of the corrupt vendors, Mark Irvello, was sentenced by Judge Jones in May 2022, to two years and six months in prison. The government charged a total of nine individuals who participated in this bribery and fraud scheme. All defendants have pleaded guilty and have been or will be sentenced by Judge Jones.

“Philadelphians deserve public employees who do their jobs honestly, without gaming the system to line their own pockets,” said U.S. Attorney Romero. “At a time when SEPTA is facing significant challenges to continue serving and protecting its riders, the defendants’ actions – and those of their co-conspirators – are the definition of selfish greed.”

“Stealing money from SEPTA, which so many folks depend on day to day, is both shameful and shortsighted,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “This is not the way to increase your take-home pay. The FBI takes federal program theft seriously and, as in this case, we’ll work to ensure justice is done and fraudsters are held appropriately accountable.”     

“The auditors and investigators in the SEPTA Office of Inspector General worked diligently to uncover this difficult-to-detect fraud,” said SEPTA Inspector General Denise S. Wolf. “Our ridership deserves that these wrongdoers be held accountable for their illegal activity. We express appreciation for the FBI and United States Attorney’s Office for bringing these defendants to justice.”

The case was investigated by the Federal Bureau of Investigation with the assistance of the SEPTA Office of Inspector General, and is being prosecuted by Assistant United States Attorney Louis D. Lappen. SEPTA’s Internal Audit Division launched an investigation after receiving tips from employees, and the Authority’s Inspector General shared the findings with the FBI.

PHILADELPHIA – Yesterday, Attorney General Merrick B. Garland announced the recipients for the 69th Annual Attorney General’s Awards, recognizing Department of Justice employees and partners nationwide for extraordinary contributions to the enforcement of our nation’s laws. This year, 298 Justice Department employees received awards, while 54 non-department individuals are also being honored for their work.  

United States Attorney for the Eastern District of Pennsylvania Jacqueline C. Romero was proud to note that one of the 2022 Attorney General’s Award recipients was EDPA Assistant United States Attorney and Chief of the Office’s Appeals Unit, Robert A. Zauzmer. Mr. Zauzmer received the Mary C. Lawton Lifetime Service Award, which recognizes employees who have served at least 20 years in the Department and who have demonstrated high standards of excellence and dedication throughout their careers. This award is presented only in exceptional circumstances to individuals of special merit and is not awarded to express general appreciation for tenure alone. Only two Mary C. Lawton Awards were presented this year.

“This year’s awardees have served selflessly to further the Department’s important work upholding the rule of law, keeping our country safe, and protecting civil rights,” said Attorney General Merrick B. Garland. “I am proud to recognize these individuals for their professionalism, skill, and leadership, and I am grateful for their service to our Department and our nation.”

“Our Office is incredibly fortunate to be able to call Bob Zauzmer a colleague and friend,” said U.S. Attorney Romero. “His unparalleled contributions to the Eastern District of Pennsylvania and the Department of Justice as an institution are certainly deserving of this recognition, but the Award alone does not go far enough in expressing how grateful we all are for his wisdom, integrity and masterful advocacy in the courtroom.”

During Mr. Zauzmer’s accomplished tenure with the United States Attorney’s Office for the Eastern District of Pennsylvania, which he joined in March 1990, he has prosecuted an array of federal crimes focusing on corruption and fraud matters, including several noteworthy public corruption matters in Philadelphia: the 2005 Philadelphia City Hall corruption case in which the City Treasurer and others were convicted of corrupt conduct in city government affairs; the 2009 corruption case against former State Senator Vincent J. Fumo; and the 2017 prosecution of former District Attorney R. Seth Williams who pleaded guilty during trial to bribery and fraud offenses.

In addition, since 1998, Mr. Zauzmer has served as Chief of the Office’s Appeals Unit, supervising all federal criminal appeals in the District, and appears frequently before the Third Circuit Court of Appeals in that capacity. He has also served in a variety of leadership positions with the Department of Justice, including as the national chair of the committee of appellate chiefs from 2012 to 2014 during which he advised the Attorney General on appellate matters, and as the Pardon Attorney in the Department of Justice from 2016 to 2017 to assist President Obama’s initiative to extend executive clemency to nonviolent drug offenders serving exceptionally long sentences.

This year’s Attorney General’s Award is not the first time Mr. Zauzmer has been recognized for his service to the Department. He has twice received the John Marshall Award, the DOJ’s highest award for litigation activities: in 1992 for the prosecution of a drug organization that terrorized a Philadelphia neighborhood, and again in 2008 for his participation on the team of DOJ attorneys which oversaw the response to amendments to the Sentencing Guidelines for certain drug offenses which required the resentencing for thousands of defendants nationally.

A complete list of the 69th Annual Attorney General’s Awards and recipients can be found here.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Andrew Dickson, 58, of Philadelphia, PA, was sentenced to twenty years in prison, and lifetime supervised release by United States District Court Judge C. Darnell Jones for the production, receipt, and possession of voluminous amounts of child pornography, and for accessing a website with the intent to view child pornography.

In 2015, the FBI infiltrated an extensive child exploitation website hidden on the dark web and, as part of that investigation, identified the defendant as a member of the site. The investigation showed that the defendant had produced and created his own child pornography by paying overseas child sex traffickers for online live-streaming shows of children being raped and sexually abused, and then recorded the live-streaming and saved it. When the FBI arrested him, Dickson was found in possession of over 78,000 images of children being sexually abused and exploited, which the defendant had collected over a span of at least 15 years. 

This prosecution was a result of Operation Pacifier, an exceptional FBI investigation which has led to hundreds of prosecutions for crimes against children. Operation Pacifier was led by Special Agent Daniel Alfin, who was tragically murdered in Florida on February 2, 2021, during the execution of a child exploitation search warrant in a separate case.

“Not only did this defendant commit the heinous crime of possessing child pornography, but he actively created it for himself and others by exploiting vulnerable children around the world,” said U.S. Attorney Romero. “The size and scope of Mr. Dickson’s ‘collection’ is truly heinous, and we gratefully acknowledge the work of Special Agent Alfin and all the men and women of the FBI who seek to bring these offenders to justice.”

“Andrew Dickson’s actions caused vulnerable children to undergo unimaginable horrors,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “These kids were sexually abused at his direction, while he watched and recorded the exploitation in order to repeatedly relive it. Given the subject matter, cases like this are some of the most difficult the FBI works. They’re also some of the most meaningful. Operation Pacifier is a prime example of the dedication shown by agents like Dan Alfin and FBI Crimes Against Children investigators in Philadelphia and across the country, who are driven to put predators like Dickson behind bars where they can’t harm another child.”

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 Priya T. De Souza.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jerry Collins, 42, of Philadelphia, PA, was sentenced to 10 years in prison and 5 years of supervised release by United States District Court Judge Gerald A. McHugh for his role in a broad daylight armed robbery of an armored vehicle containing hundreds of thousands of dollars in cash nearly three years ago.

In November 2021, the defendant pleaded guilty to charges including conspiracy to commit Hobbs Act robbery and related offenses including using, carrying, and brandishing a firearm during a violent crime in connection with the incident. On August 1, 2019, at approximately 10:00 a.m., Collins’ co-defendant, Tyree Holmes, and another individual, both wearing masks and gloves and armed with semi-automatic weapons, exited a Chevy Trailblazer that had parked behind a Garda armored truck near the 3500 block of Market Street as one of two guards removed three black bags containing a total of $434,000 in United States currency.  As the robbers approached the guard holding the money bags, they pointed their firearms at the guard and announced a robbery while Collins waited nearby in the driver’s seat of the Chevy Trailblazer. Holmes grabbed the bags of money and attempted to get back into the Chevy Trailblazer when both guards drew their firearms and began shooting at the fleeing robbers. During the ensuing gunfire, Holmes dropped the bags of money and fled on foot while the other robber got into the Trailblazer with Collins and fled the scene. Collins and Holmes were both arrested several months later by the Philadelphia Police Department and charged by federal indictment.

“This defendant orchestrated an armed robbery of an armored vehicle in the middle of the day in a busy section of downtown Philadelphia, putting the lives of the guards and many bystanders at risk,” said U.S. Attorney Romero. “Mr. Collins will now spend years behind bars for this serious and violent offense.”

“This daylight armed heist by Collins and his buddies was as brazen as it was foolish,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. “The way it all unfolded on that busy block, it's a miracle no one was hurt, or worse, in the gunfire that ensued. I'd like to thank the FBI-PPD Violent Crimes Task Force for their great work on this case. We and our law enforcement partners are fighting day in and day out to get violent criminals off the street and make Philly safer for all.”

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

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Patrick Harrison, 39, of Pottstown, PA, was sentenced to nine years in prison and five years of supervised release by United States District Court Judge Chad F. Kenney for a gunpoint robbery of a Rite-Aid pharmacy in Philadelphia that occurred on November 18, 2021.

On March 23, 2022, the defendant pleaded guilty to an Indictment charging him with Hobbs Act robbery; carrying, using, and brandishing a firearm during the commission of a violent crime; and possession of a firearm by a felon. In pleading guilty, Harrison acknowledged that he brandished a firearm and demanded money from store employees. The defendant then fled the store after stealing approximately $600. The defendant also admitted to illegally possessing a firearm, in this case a loaded Smith and Wesson 9mm pistol, which he was not permitted to do as a previously convicted felon.

“Mr. Harrison threatened the lives of employees in this pharmacy with a loaded weapon and stole $600, and for that crime he will now spend nearly a decade in prison,” said U.S. Attorney Romero. “Repeat offenders who commit reckless violent crimes like this defendant will soon face serious federal charges and years in prison.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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

PHILADELPHIA – United States Attorney Jacqueline C. Romero and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced that Wayne Garvin, 57, currently of Columbia, South Carolina, and a former IRS employee, was sentenced to 13 months in prison, three years of supervised release, and ordered to pay $74,662 restitution for filing false tax returns and providing fabricated records to the IRS in an attempt to obstruct an audit of those returns.

In March 2022, the defendant pleaded guilty to multiple tax fraud charges. Garvin was a long-time IRS employee who most recently worked as a Supervisory Associate Advocate with the IRS’s Taxpayer Advocate Service in Philadelphia. For the years 2012 through 2016, while working as an IRS employee, Garvin prepared and filed with the IRS personal income tax returns on which he claimed false deductions and expenses associated with rental properties, fictitious real estate taxes on his personal residence, and fabricated charitable contributions. Moreover, on his 2013 tax return, Garvin deducted nearly $16,000 in false expenses associated with his employment with the U.S. Army Reserves. Although Garvin was formerly a member of the U.S. Army Reserves, he did not perform any reservist duty in 2013 and was not entitled to deduct any expenses related to that employment. In total, Garvin caused a loss to the IRS of more than $74,000.

Further, court documents also show that after the IRS began an audit of the defendant’s 2013 and 2014 tax returns, Garvin attempted to obstruct the audit by submitting fictitious documents to the IRS. For example, to justify the false deductions and expenses on his tax returns, Garvin fabricated and submitted to the IRS auditors receipts from a church, invoices from a contractor and a letter from the Department of the Army. After learning he was under criminal investigation, Garvin later submitted some of the same fraudulent documents to IRS-Criminal Investigation.

The case was investigated by the Internal Revenue Service-Criminal Investigation, and is being prosecuted by Assistant United States Attorney Tiwana Wright and Trial Attorney Melissa S. Siskind of the Department of Justice Tax Division.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Thomas Staszak, 47, of Philadelphia, PA, a former employee of the Philadelphia Water Department (“PWD”), was sentenced to fourteen months in prison, two years of supervised release, and was ordered to pay $153,367 restitution by United States District Judge Joel H. Slomsky for stealing inventory from a City of Philadelphia storage facility.

In January 2022, the defendant pleaded guilty to multiple counts of theft from a federally funded program and computer fraud. On multiple occasions from approximately April 2017 through at least November 2018, the defendant accessed PWD’s computerized inventory control system without authorization, using log-in credentials associated with PWD employees under his supervision, at a PWD storeroom. Staszak created false entries in PWD’s electronic records to provide justifications for removing maintenance materials, for example bulk wire, from the storeroom. The defendant then physically took the materials from PWD’s inventory, transported them to local scrap yards, sold the materials, and kept the proceeds. In this fashion, Staszak stole items valued at approximately in excess of $150,000 before he was caught. As a City of Philadelphia agency, PWD receives millions of dollars in federal funds and assistance annually.

“Mr. Staszak used his position as a supervisor with a public sector agency to enrich himself to the detriment of all Philadelphians who expect and deserve honest services from their government,” said U.S. Attorney Romero. “The Philadelphia Water Department is entrusted with a task which is vital to the health of our city and region; the defendant’s actions took money and resources for that mission directly out of the hands of taxpayers and moved the proceeds into his own bank account.”

“Thomas Staszak apparently felt his city salary wasn’t enough,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “But stealing and selling your employer’s property certainly isn’t the way to enhance your paycheck. In doing so, Staszak cheated the Philadelphia Water Department, the taxpayers who help fund it, and all the honest municipal employees who do the right thing, in the right way, every day. He’ll now pay for his crimes through restitution and prison time.”  

The case was investigated by the Federal Bureau of Investigation and the City of Philadelphia’s Office of Inspector General, and is being prosecuted by Assistant United States Attorney Eric L. Gibson.

PHILADELPHIA – United States Attorney Jacqueline C. Romero and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced that Joseph Smith, 57, formerly of Fishkill, New York, was sentenced to three years and six months in prison, three years of supervised release, and ordered to pay $2,100,450 in restitution by Unites States District Court Judge Gerald J. Pappert for his scheme to defraud prospective franchisees of more than $2.1 million, collectively.

In February 2022, the defendant. the owner of New York Bagel Enterprises, Inc., (“New York Bagel”), which operated in Pennsylvania and other states, pleaded guilty to charges of conspiracy to commit wire fraud and tax evasion in connection with this scheme. According to court documents and statements made in court, Smith and Dennis Mason, charged separately, made numerous misrepresentations to individuals interested in buying a New York Bagel franchise. These misrepresentations included: a guarantee that New York Bagel could get financing for the prospective franchisee, the actual costs to open a franchise, the number of franchises that were already open or opening, and the profitability of existing franchises. The defendant and Mason charged prospective franchisees fees ranging between $7,500 and $44,500 to gain rights to open stores. When some prospective franchisees learned of the misrepresentations and demanded their money back, Smith refused to refund these fees. As a result of the fraud, Smith and New York Bagel sold more than 160 franchises and obtained more than $2.1 million in franchise fees.

Further, from 2014 through 2016, Smith deposited more than $1.3 million in franchise fees into New York Bagel bank accounts which he controlled. The defendant spent these funds on personal items unrelated to the business, including rent for his home, travel, car payments for personal vehicles and living expenses. Smith did not file corporate or individual income taxes for these three years or pay the taxes he owed to the IRS.

Mason previously pleaded guilty to related charges and was sentenced to three years in prison in April 2022.

“Individuals seeking to own and operate business franchises are seeking opportunity and financial stability for themselves and their families; they deserve honesty and forthrightness in their business dealings so they can make informed decisions,” said U.S. Attorney Romero. “Mr. Smith took advantage of his position to swindle millions of dollars from people seeking legitimate business opportunities, and for that crime he will now spend years in prison.”

“While Smith was defrauding investors out of their franchise fees, he also evaded nearly $175,000 in taxes due on that income,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Business owners who pay the IRS their fair share of taxes deserve to compete on a level playing field. Competitors who cut corners and seek to skirt their legal obligations should know they will be investigated and prosecuted.”

“Mr. Smith’s scheme served no purpose other than to mislead and defraud perspective franchisees,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Furthermore, he took steps to hide his earnings from IRS, thus shirking his tax liability. The sentence he received is a victory for all Americans who play by the rules.”

“Joseph Smith peddled what looked like a great opportunity to potential franchisees,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “But once they signed on the dotted line, they learned he’d been peddling something else instead. Smith treated their franchise fees like found money. It was a clear-cut case of fraud and this sentence puts him behind bars and provides some justice for his victims. The FBI will always fight to hold crooks like this accountable.”    

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 Attorney David J. Ignall and Trial Attorney Eric B. Powers of the Department of Justice Tax Division.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that three area railroad workers have agreed to pay over $75,000, collectively, to resolve claims of unemployment benefits fraud under the False Claims Act. In three civil actions filed this week, the government alleges that Shohana Culberson, of Philadelphia, PA; Keith Abele, of Levittown, PA; and James T. Billups, of Newark, DE; applied for and received unemployment benefits from the United States Railroad Retirement Board (RRB) when they were, in fact, gainfully employed.

The Railroad Retirement Act provides unemployment benefits for railroad workers who are out of work. The program is administered by the RRB and is financed by taxes paid by railroad employees. 

The government alleges that defendant Culberson submitted 20 false claims for unemployment benefits between March and December 2017, while she was employed by Comcast. The government also alleges that Abele submitted 31 false claims for unemployment benefits between November 2016 and April 2018, while he was employed by Terminal Switching Company, LLC and Watco Transloading, LLC. Finally, the government alleges that defendant Billups submitted 13 false claims for unemployment benefits between September 2017 and February 2018, while he was employed by FedEx and Comcast. Between them, the government alleges, the defendants received a total of $37,127 of unemployment compensation on days when they knew they were not eligible for it.

The United States filed lawsuits against Culberson, Abele, and Billups under the False Claims Act, which provides for three times the government’s damages plus civil penalties for each false claim. To resolve these matters, the defendants each agreed to enter into a consent judgment subject to the Court’s approval that would resolve the matter without litigation.

The claims resolved by the settlements announced today are allegations only, and there has been no determination of liability.

“Unemployment benefits, no matter if they are administered by the government, a union, or a private entity, are very plainly meant to help individuals through a difficult time while unemployed, not as slush fund from which to obtain surplus income,” said U.S. Attorney Romero. “We will continue to work with all of our investigative partners and use every tool at our disposal to remediate this type of fraud.”

The allegations arose from investigations led by the Railroad Retirement Board Office of Inspector General in Philadelphia. The cases are being handled by Assistant United States Attorney Lauren DeBruicker.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Roberto DeJesus Negrin, 35, of Philadelphia, PA, was sentenced to ten years in prison and five years of supervised release by United States District Court Judge Nitza I. Quinones-Alejandro for multiple narcotics offenses stemming from his role as a drug trafficker and a leading supplier of heroin in one of the most drug-laden neighborhoods in Philadelphia.

In January 2022, the defendant pleaded guilty to an Indictment charging him with conspiracy to distribute heroin, and two counts of possession with intent to distribute heroin. In pleading guilty, the defendant acknowledged that he coordinated shipments of heroin into Philadelphia and arranged for it to be packaged into street-level, sale-ready quantities at two locations which he obtained for the purpose of operating this bagging operation. During much of 2018, the defendant was the main heroin supplier to a drug trafficking organization that controlled an open-air drug market in the Kensington section of the city. In November 2018, when law enforcement executed search warrants at the two locations controlled by the defendant, they recovered over two kilograms of heroin in each place and other items consistent with drug trafficking.

“Drug use and the violence that surrounds it are – and have been – an epidemic in Philadelphia, and the federal government is aggressively prosecuting those who seek to profit from it,” said U.S. Attorney Romero. “This defendant played a key role in the supply chain of heroin distribution, for which he will now spend a decade in prison. We want to thank our law enforcement partners in this case, the FBI and the Philadelphia Police Department, for their hard work and dedication.”

The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Timothy M. Stengel.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Marques Russell, 37, of Philadelphia, PA, was sentenced to seven years in prison, three years of supervised release, and was ordered to pay a $3,100 special assessment and forfeiture of $129,600 by United States District Judge C. Darnell Jones, II, for his role in an inter-state prescription forgery ring.

In October 2021, the defendant pleaded guilty to 31 counts of possession with intent to distribute oxycodone. The charges stem from Russell’s participation in a forged prescription ring, in which he and others presented fake prescriptions, forging doctors’ signatures, to pharmacies in order to obtain large amounts of oxycodone for illegal resale. The defendant admitted to presenting such prescriptions on 31 occasions to pharmacies in Drexel Hill and Kennett Square, PA. Over a roughly two-year period from about February 2017 through May 2019, Russell obtained 4,320 oxycodone tablets totaling 129,600 milligrams. The defendant was charged by Indictment in 2019, along with eleven others who presented forged prescriptions, and one complicit pharmacist in New Jersey.

“Pharmacies and pharmacists have a responsibility to serve as gatekeepers of a closed system of prescription drug distribution. This defendant and his co-conspirators took advantage of that system to flood the streets of our region with dangerous opioid drugs, no doubt exacerbating the epidemic,” said U.S. Attorney Romero. “Our Office will continue to investigate and prosecute healthcare fraud crimes like this in an effort to deter such conduct and keep our communities safe.”

The case was investigated by the U.S. Drug Enforcement Administration and the Easttown Township Police Department, and is being prosecuted by Assistant United States Attorney David E. Troyer.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Craig Alex Levin, 66, of King of Prussia, PA, pleaded guilty to six counts of child exploitation offenses before United States District Court Judge Harvey Bartle, III, stemming from his travel to the Philippines over a nearly three-year period for the purpose of engaging in illicit sexual conduct with minor children, some as young as 12 years of age. He also engaged in commercial sex trafficking by brokering the sale of a minor girl, who was pregnant at the time, for sex with an adult sex offender in exchange for money.

In May 2021, the defendant was charged by Superseding Indictment with multiple counts of interstate and foreign travel for the purpose of engaging in illicit sexual conduct with a minor, sex trafficking of a minor, use of an interstate commerce facility to entice a minor to engage in sexual activity, distribution of child pornography, transfer of obscene material to a minor, and transportation of child pornography. Levin was first indicted with child exploitation offenses related to his travel to the Philippines in February 2020.

According to Court documents, Levin was a retired special education teacher for the Lower Merion School District. Between August 2016 and May 2019, the defendant traveled to the Philippines nine times to have sex with minor children. Prior to and during his travels, Levin created and maintained Facebook accounts that he used to communicate with minors in the Philippines for the purpose of enticing them to engage in illicit sexual conduct with him during his visits to the island nation. In addition, the defendant used Facebook Messenger to send child pornography to minors in the Philippines.

“Mr. Levin, someone who worked for years in a position of trust as a teacher, traveled to country and stayed for months at a time in order to prey on children undetected – or so he thought,” said U.S. Attorney Romero. “Our Office, together with our law enforcement partners, works day and night to investigate and track criminals like this defendant, even when they try to hide on the other side of the world. Our message to them with this case is simple: you cannot hide; we will find you and we will hold you accountable in a court of law.”

“Craig Levin apparently thought, because he was halfway around the world, he could commit these heinous crimes with impunity,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “He could not have been more wrong. As this case shows, the FBI’s reach is long, and we’ll do everything in our power to end the sexual exploitation of children, be they in Philadelphia or the Philippines. Protecting vulnerable kids from predators like Levin continues to be one of the Bureau’s top priorities.”

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 Sarah Damiani and Trial Attorney Austin M. Berry of the Department of Justice’s Child Exploitation and Obscenity Section.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Al-Ashraf Basem Khalil, 28, of Philadelphia, PA, was arrested on June 24, 2022, after being charged by Criminal Complaint with arson on June 23, 2022.  During a news conference held today with officials from the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the Philadelphia Fire Department; First Assistant United States Attorney Nelson S. T. Thayer, Jr., detailed the charges outlined in the Complaint accusing the defendant of causing the arson at 300 W. Indiana Avenue in Philadelphia on June 18, 2022, which resulted in the death of Philadelphia Fire Lieutenant Sean Williamson. The announcement comes the day after funeral services were held for Lt. Williamson.

Specifically, the defendant has been charged with one count of malicious damage by means of fire of a building used in interstate commerce resulting in death, one count of aiding and abetting and willfully causing the same, and one count of making materially false or fraudulent statements. Khalil was arrested Friday afternoon at John F. Kennedy International Airport in New York, NY, by United States Marshals who thwarted Khalil’s efforts to leave the United States, getting as far as Jordan, until he was forced to return to face these charges. Khalil made his initial appearance before a United States Magistrate Judge in the Eastern District of New York, where he was detained and ordered transferred to the Eastern District of Pennsylvania.

As detailed in the Complaint, voluminous video surveillance recovered by investigators showed two suspects – minutes before the fire began in the early morning hours of June 18 – walk behind a dumpster and enter the basement doors of the property at 300 W. Indiana Avenue. The video surveillance further shows the two suspects leave the location about twenty minutes later, shortly after which smoke can be observed that gradually grows thicker emanating from the area of building.

On June 20, 2022, ATF agents interviewed the defendant, the owner of the property, as part of their federal investigation into the origin and cause of the fire. The Complaint alleges that Khalil provided false information about where he was at the time he learned of the fire, and that he stated that he had no plans to travel outside the U.S. in the next year. While he was being interviewed, agents noted that some of the defendant’s clothing appeared to be similar to one of the two suspects captured on the video surveillance footage.

Further, the following day on June 21, 2022, Khalil again met with investigators at their request, and later that day booked a flight from JFK airport to Amman, Jordan with a layover in Dubai, United Arab Emirates. On June 22, 2022, the defendant left the United States on that flight.

“Whenever there is a fire in our city, the brave men and women of the Philadelphia Fire Department put their lives on the line to protect us. Intentionally causing a fire and deliberately putting firefighters and innocent victims in harm’s way is truly unconscionable,” said U.S. Attorney Romero. “We are grateful to all of the investigators on this case who moved rapidly to determine the origins of the fire, identify a suspect, and return him to U.S. soil so he can answer these charges before the court. And while we mourn the loss of Lt. Williamson, we are grateful for his life and his service to our city, and hope that by seeking justice in this case we honor his memory.”

“ATF is dedicated to investigating and preventing violent crime,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “Arson, just like gun crime, can have serious consequences and as alleged in this case, caused the death of a beloved public servant. Our team of investigators and dedicated prosecutors will continue to seek justice for the victims of these violent acts.”

“The phenomenal effort between U.S. law enforcement agencies and our international partners in quickly capturing this fugitive while attempting to flee to the Middle East demonstrates our global reach and unwavering commitment to justice,” said U.S. Marshal Eric Gartner. “Our hope is that this rapid capture will provide some measure of comfort to the family of Lt. Sean Williamson and the Philadelphia Fire Department.”

“We respond to more than 3,500 structure fires annually, and the majority are unintentional. However, intentional fires are still a problem: last year, more than 650 incendiary incidents were investigated by our Fire Marshal's Office in close partnership with the Philadelphia Police Department and ATF,” said Philadelphia Fire Commissioner Adam K. Thiel. “This incident demonstrates the tragic consequences of arson. Our thoughts remain with Lt. Williamson’s family, friends and PFD colleagues as this case moves forward and justice is served.”

If convicted, the defendant faces a mandatory minimum term of seven years in prison if, as here, personal injury results to any person. If death results to any person, including a public safety officer performing duties, the statute carries a maximum penalty of life in prison or the death penalty.

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 Pennsylvania Office of Attorney General, the Justice Department’s Office of International Affairs, the Federal Bureau of Investigation, Homeland Security Investigations, the Diplomatic Security Service in Amman, Jordan and Dubai, UAE, and INTERPOL Washington. The case is being prosecuted by Assistant United States Attorneys Jeanine Linehan and Sarah Damiani.

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 John Nusslein, 18, of Philadelphia, PA, was arrested and charged by Indictment with carjacking resulting in death, carjacking resulting in serious bodily injury, conspiracy to commit carjacking, and carrying and discharging a firearm during a crime of violence, all in connection with two carjacking incidents that occurred in December 2021 in Northeast Philadelphia. The defendant made his initial appearance in federal court on these charges today and was detained pending trial.

The Indictment alleges that on December 2, 2021, the defendant, in concert with others, placed a food delivery order to an address on the 3000 block of Teesdale Street as a ruse to lure their intended victim to that location. That evening, when the food delivery driver arrived on that block with the order, the defendant and his coconspirators approached the driver and struck him repeatedly, stole his vehicle and fled the area. As a result of the injuries sustained in this attack, the victim delivery driver succumbed to his injuries and died.

Then, on December 16, 2021, the defendant, in concert with others, followed the same plan and placed another food delivery order to an address on the 9000 block of Hilspach Street to lure another victim. When the food delivery driver arrived to deliver his cargo, the defendant and others approached the driver, pointed a firearm at him, demanded his money and struck him, stole his vehicle and then fled.

“Through our Office’s Carjacking Task Force, we are continuing to investigate, arrest and prosecute those responsible for the spate of carjackings we have seen in Philadelphia in recent months,” said U.S. Attorney Romero. “As alleged, this defendant violently attacked two hard-working people, one of whom died as a result of his injuries. Carjacking is not game or a fun pastime, it is a serious federal crime with severe consequences.”

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 total maximum sentence for the defendant is the death penalty, or alternatively, a period of imprisonment up to life, with a mandatory minimum sentence of seven years imprisonment consecutive to any other sentence of imprisonment, and a $1,000,000 fine.

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

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 Angela DiPietro-Sabatine, 57, of Pennsauken, NJ, was sentenced to four years and three months in prison, three years of supervised release, and was ordered to pay $2,644,543 in restitution and the same amount in criminal forfeiture by United States District Court Judge Joshua D. Wolson for her theft of more than $2.6 million dollars from her former employer, the Delaware River Waterfront Corporation (DRWC), an organization whose mission is to design, develop, and manage the central Delaware River waterfront from Oregon to Allegheny Avenues for the benefit of Philadelphia residents.

In February 2022, the defendant pleaded guilty to charges of wire fraud, aggravated identity theft and bank fraud in connection with a scheme to create false financial records for the non-profit and then steal the funds for her personal use. As Accounting Administrator for DRWC, her duties included managing the accounts payable and receivable, bank reconciliations, and general ledger work. DiPietro-Sabatine used the non-profit’s computerized accounting software to create false expense items for legitimate vendors of DRWC in order to invoice services that were never rendered. The defendant then generated DRWC checks for these false expense items, manipulated the computerized accounting software to change the payee on the check from the legitimate vendor to herself, and forged the signatures of DRWC’s authorized signatories, the President and Vice President, on these unauthorized checks made payable to herself. She spent the stolen proceeds, more than $2.6 million, on personal expenses, including gambling and luxury vacations.

“Organizations, especially non-profits and charities with a mission to benefit the public good, must be able to rely on the honesty of employees who handle money,” said U.S. Attorney Romero. “DiPietro-Sabatine went to great lengths to hide her criminal conduct from her employer for many years, but justice finally caught up with her. We appreciate DRWC’s cooperation in this investigation so the defendant could be held accountable for her actions.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Nancy Potts.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Eduardo Castelan-Prado, 39, of Leonia, NJ, and Jose Ochoa, 32, of Moreno Valley, CA, were convicted after trial of kidnapping charges arising from the abduction of a teenage victim from Northeast Philadelphia to New Jersey just over one year ago in June 2021.

In June 2021, the defendants were charged by Indictment with conspiracy to commit kidnapping and kidnapping in connection with their actions, along with a third conspirator, to kidnap a 17-year-old in the parking lot of a restaurant in Philadelphia, which was the teen’s place of employment, after his shift ended. Evidence presented at trial showed that on June 14, 2021, Castelan-Prado, Ochoa, and a third co-conspirator then transported the victim to a residence in New Jersey, where they held him at gunpoint while making ransom demands of $500,000 to his parents. The FBI and the Philadelphia Police Department were able to determine the victim’s location by tracing the ransom calls, and in the early morning hours of June 16, 2021, an FBI SWAT team executed a search warrant at an apartment complex in Leonia, New Jersey, rescued the victim, and arrested the defendants.

“The events of this case are every parent’s worst nightmare: someone with ill intentions forcefully taking their child. These defendants kidnapped a teenager in an effort to extort money, a crime for which they will now be appropriately penalized,” said U.S. Attorney Romero. “As was the case here, our investigators and prosecutors will work quickly and tirelessly to identify, locate and charge anyone who attempts this type of violent crime in our district.”

“These defendants abducted a child in order to extort his parents,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “This boy was made a pawn in a despicable and dangerous ploy for money. I’m so proud of all the folks who worked around the clock to locate and recover him, before his abductors inflicted any physical harm. These kidnapping convictions mean they’ll be off the street and behind bars for decades, unable to victimize anyone else’s child.”  

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 FBI Philadelphia and FBI Newark, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Justin Oshana and Kate Shulman.

PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Scott E. Diamond, 62, of Philadelphia, PA, and Jesse M. Cohen, 42, of Los Angeles, CA, were charged together by Information with one count of mail fraud and one count of wire fraud. Diamond was an attorney who was a partner in a Philadelphia law firm, and Cohen was an associate in the same law firm. The firm specialized in complex commercial litigation, representing plaintiffs in personal injury matters, and representing insurance companies in insurance subrogation matters.

According to the Information, for approximately two years from 2018 through 2020, Diamond and Cohen engaged in a scheme to divert the fees from numerous personal injury and subrogation matters from the firm to themselves by secretly resolving the cases without the other firm partners knowing about the resolutions. Diamond and Cohen then caused insurance companies and other payors on those cases to send legal fees to themselves instead of to their employer, the law firm. When that was not possible, Diamond went through the firm’s mail and removed checks covering legal fees on the stolen cases made payable to the firm. Diamond then deposited checks from the cases they diverted into bank accounts that he controlled and shared the proceeds with Cohen. Diamond concealed the illegal conduct from his employer by closing the files for those matters and making it appear in the computer records of the firm that there were no settlements or resolutions and that the cases were not viable.

The personal injury and subrogation matters that Diamond and Cohen diverted from the law firm generated approximately $750,000 in initial payments to the defendants, from which they distributed funds to clients and covered other costs in the litigation, maintaining the balance of the fraud proceeds (approximately $320,000) for themselves.

If convicted, the defendants each face maximum possible sentences of 40 years in prison.

The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Louis D. Lappen.

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 Mashaq White, 24, of Philadelphia, PA, was sentenced to nine years and two months in prison, followed by three years of supervised release by United States District Judge Karen S. Marston, for unlawful possession of a firearm by a felon stemming from an incident which occurred during the period of civil unrest in Philadelphia over two years ago.

On June 1, 2020, Philadelphia police responded to a burglary in progress call at a looted Rite-Aid at 57th and Chestnut Streets in West Philadelphia.  When they arrived, the officers found the Rite-Aid ransacked. White was encountered inside and was found to be in possession of a firearm loaded with 18 rounds of ammunition. Police saw the defendant moments before his arrest with a companion at an ATM machine located at the front of the store, and defendant was seen drilling into the machine. In October 2021, the defendant pleaded guilty to the one-count Indictment charging the firearms offense.

“Our Office is committed to prosecuting those who commit violent crimes including illegally possessing firearms, which is a federal crime” said U.S. Attorney Romero. “In this case, a previously convicted felon illegally possessed a loaded firearm, which presents a clear danger to our community that is struggling under a surge of violent gun crime.”

“ATF, along with our law enforcement partners, will continue to do everything in our power to take guns out of the hands of violent felons and disrupt violent gun crime in our community,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division.  “This sentence is a small victory in the perpetual battle against gun violence, and should send a clear message to those criminals who endanger our citizens.” 

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 Philadelphia Police Department and the Bureau of Alcohol, Tobacco and Firearms, and is being prosecuted by Assistant United States Attorney James R. Pavlock.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Andrew Wolf, 42, of Philadelphia, PA, and Kray Strange, 20, of Carthage, NY, both pleaded guilty before United States District Court Judge Mark A. Kearney to multiple child exploitation offenses in connection with their scheme to manipulate and catfish children online, including Wolf’s own middle school students.

In February 2022, the defendants were indicted on charges of conspiracy to manufacture child pornography, along with several counts of manufacture and attempted manufacture of child pornography. These charges, to which they pleaded guilty today, stem from conduct which occurred over a period of one year. Between May 2020 and October 2021, Wolf and Strange 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 Strange so that Strange could target them online.

“Both of these defendants violated the privacy and innocence of children, but Andrew Wolf also violated the trust of the community in which he taught by victimizing his own students,” said U.S. Attorney Romero. “Our Office and our law enforcement partners are committed to doing the difficult work of investigating and prosecuting these crimes in order to hold child sexual predators accountable.”

“A teacher facilitating the sexual exploitation of his young students is the stuff of parents’ nightmares — and an instant priority for the FBI,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Andrew Wolf and Kray Strange now admit taking advantage of vulnerable boys for their own vile gratification. Our Crimes Against Children Task Force works around the clock to identify, investigate, and lock up predators like these two — and, sadly, there are many. We’d urge adults to remind the kids in their lives that not everyone is who they say they are online.”

Defendant Wolf faces a maximum possible sentence of 240 years in prison, and defendant Strange faces a maximum possible sentence of 210 years in prison. Both defendants face a mandatory minimum of 15 years in prison.

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