Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Two USAO-EDPA Civil Healthcare Fraud Investigative Teams Honored by HHS-OIGRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that two separate investigative teams working in the Civil Division of the United States Attorney’s Office for the Eastern District of Pennsylvania were honored for their exemplary service to the U.S. Department of Health and Human Services (HHS) by recovering millions of dollars in healthcare fraud matters.
The first team, comprised of Assistant U.S. Attorneys Anthony Scicchitano, Landon Y. Jones III, and Rebecca Melley, received the 2022 Department of Health and Human Services Office of the Inspector General (“HHS-OIG”) Award for “Excellence in Promoting Quality, Safety, and Value” for their investigation and resolution with several companies concerning alleged generic drug price fixing.
The second team, comprised of Assistant U.S. Attorneys Deborah Frey, Matt Howatt, Civil Division Chief Gregory David, Auditor Dawn Wiggins, Investigator Frank O’Connor, and former Assistant U.S. Attorney John Crutchlow, received a 2022 HHS-OIG Honor Award for “Advancing Excellence and Innovation in recognition of outstanding teamwork and excellence for investigations, recoveries, and cost savings identified through P-Stim investigations.”
Generic Drug Price Fixing Investigations
This family of investigations into generic drug prix fixing led to three generic pharmaceutical manufacturers, Taro Pharmaceuticals USA, Inc., Sandoz Inc., and Apotex Corporation, paying a total of $447.2 million to resolve alleged violations of the False Claims Act (“FCA”) arising from conspiracies to fix the price of various generic drugs. These conspiracies allegedly resulted in higher drug prices for federal health care programs and beneficiaries.
Between 2013 and 2015, all three companies allegedly paid and received compensation prohibited by the Anti-Kickback Statute through arrangements on price, supply, and allocation of customers with other pharmaceutical manufacturers for certain generic drugs manufactured by the companies. Taro Pharmaceuticals USA, Inc., headquartered in New York, paid $213.2 million to the government to settle these claims. The Taro drugs allegedly implicated in this scheme address a wide variety of health conditions, and include etodolac, a nonsteroidal anti-inflammatory drug used to treat pain and arthritis, and nystatin-triamcinolone cream and ointment, a combination of an antifungal medicine and steroid used to treat certain kinds of skin infections. Sandoz Inc., headquartered in New Jersey, paid a settlement of $185 million. The Sandoz drugs at issue include benazepril HCTZ, used to treat hypertension, and clobetasol, a corticosteroid used to treat skin conditions. Apotex Corporation, headquartered in Florida, paid a $49 million settlement in connection with its sale of pravastatin, a drug used to treat high cholesterol and triglyceride levels.
P-Stim Investigations
Through a proactive data analysis, this team helped uncover a scheme of improper billings involving electro-acupuncture devices, branded among other names as P-Stim and Stivax. These devices are applied with an adhesive and insertion of a limited number of needles; they do not involve surgery, anesthesia, or take place in an operating room. Federal healthcare programs do not reimburse at all for them, but the devices were marketed and billed as reimbursable as surgically implanted neuro-stimulators. This team led the national Department of Justice effort to apply analytics to healthcare claims data to identify providers who inappropriately billed federal healthcare programs for P-Stim devices, and to investigate and hold accountable responsible marketers and distributors. This effort resulted in several resolutions with responsible parties and coordination with dozens of other U.S. Attorney’s Offices as to other provider investigations for a total recovery of over $25 million.
“Proactive efforts, relationship-building with other DOJ components and government agencies, and data analytics were the foundation for the excellent results of these two investigative teams,” said U.S. Attorney Williams. “We thank the Inspector General for recognizing their work and we thank the HHS OIG case agents who made these results possible.”
“Congratulations and thank you to our partners at the U.S. Attorney’s Office for the Eastern District of Pennsylvania,” said Maureen R. Dixon, Special Agent in Charge, Office of the Inspector General, U.S. Department of Health and Human Services. “These awards recognize the outstanding teamwork and support provided by the DOJ-EDPA Civil Division’s attorneys, support staff, and analysts which resulted in the recovery of millions of dollars in HHS health care funds. HHS-OIG looks forward to continued collaboration with our Civil Division partners, as we work together, to protect the integrity of the Medicare and Medicaid programs from financial harm.”
Former Liberian Rebel General Charged with Immigration FraudRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Laye Sekou Camara, a/k/a “K-1,” a/k/a “Dragon Master,” 43, of Mays Landing, NJ,was arrested and charged by Criminal Complaint and subsequent Indictment on the charge of use of an immigration document obtained by fraud.
In 1997, after a civil war and years of political upheaval, Charles Taylor was elected president of the West African nation of Liberia. In 1999, Liberia’s second civil war began. Primarily, two rebel groups, Liberians United for Reconciliation and Democracy (LURD), and the Movement for Democracy in Liberia (MODEL), waged war against Taylor’s government. LURD’s stated objective was to remove Taylor from the presidency of Liberia. Liberia’s second civil war, much like its first, was characterized by brutality, war crimes, and atrocities, many of which were perpetrated by LURD rebels. Furthermore, in waging its war against Taylor’s government, LURD recruited and used child soldiers. According to the Indictment, Camara was a LURD general.
The Indictment alleges that in June 2011, Camara submitted an application for a non-immigrant visa to the United States. In that application Camara falsely contended, among other things, that he: 1) was not a member of a tribe; 2) had never served in or been a member of a rebel group or insurgent organization; and 3) had never committed, ordered, incited, assisted or otherwise participated in political killings or other acts of violence. Camara’s application was approved and he was issued a non-immigrant visa which he used to enter the United States.
The Indictment further alleges that in June 2012, United States immigration authorities reviewed an application that Camara submitted for a United States immigrant visa. In this application, Camara falsely contended, among other things, that he: 1) was not seeking and had not sought a visa, entry into the United States, or any immigration benefit by fraud or misrepresentation; and 2) had never engaged in the recruitment or use of child soldiers. Camara’s application was approved and he was issued an immigrant visa which he used to enter the United States. Upon his entering and being admitted to the United States pursuant to his immigrant visa, Camara became entitled to, and did, receive a Green Card, evidencing his authorized permanent residence in the United States.
Finally, as alleged in the Indictment, in June 2017, in seeking a Pennsylvania state identification card, Camara presented his fraudulently obtained Green Card to PennDOT officials as evidence of his immigration status, that is, his lawful permanent residence in the United States.
“As alleged in the Indictment, this defendant attempted to evade accountability for his horrific involvement in Liberia’s brutual civil wars by fraudulently obtaining U.S. immigration documents,” said U.S. Attorney Williams. “Due to the hard work and perseverance of our prosecutors and law enforcement partners, he can no longer run and hide from justice.”
“HSI is committed to upholding the law, both within the United States and abroad,” said William S. Walker, Special Agent in Charge of the Homeland Security Investigations (HSI) Philadelphia Field Office. “The defendant in this case, Mr. Camara, is alleged to have served as a high-ranking general for a rebel group that fought in the Second Liberian Civil War, all the while employing tactics of unimaginable brutality, including the recruitment of child soldiers. This indictment alleges Mr. Camara then attempted to shield his violent past when he came to the United States by failing to disclose his affiliation with the rebel group. Investigations like this one are a chief priority of the No Safe Haven mission, and HSI will continue to work tirelessly to investigate those who attempt to evade justice for crimes they committed overseas. We will not allow the United States to be a safe haven for those attempting to hide from their past.”
If convicted, the defendant faces a maximum possible sentence of 10 years in prison and a $250,000 fine.
The case was investigated by Homeland Security Investigations with assistance from the Pennsylvania Attorney General’s Office, the Diplomatic Security Service (DSS) at the U.S. Embassy in Monrovia and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr. and Kelly M. Harrell, with assistance from Trial Attorney Chelsea Schinnour and Historian Christopher Hayden from the United States Department of Justice, Criminal Division’s, Human Rights and Special Prosecutions Section.
Members of the public who have information about foreign nationals suspected of engaging in human rights abuses or war crimes are urged to call the HSI tip line at: 1-866-DHS-2423 (1-866-347-2423). Callers may remain anonymous.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Serial Bank Robber from Delaware County Sentenced to 7 ½ Years for Committing Multiple Bank RobberiesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Michael George, 31, of Broomall, PA, was sentenced today to seven years and six months in prison and three years of supervised release, and was ordered to pay $4,790 in both forfeiture and restitution by United States District Judge Joel H. Slomsky for committing four bank robberies over the course of about a week in March 2020.
In December 2021, the defendant pleaded guilty to four counts of bank robbery in connection with three incidents at banks in the Port Richmond section of Philadelphia and one on the Main Line in Montgomery County, PA. George admitted to robbing the TD Bank on East Butler Street in Philadelphia on March 7, 2020; the Wells Fargo Bank on Aramingo Avenue in Philadelphia on March 16, 2020; the WSFS Bank on Aramingo Avenue in Philadelphia on March 16, 2020; and the PNC Bank on Youngsford Road in Gladwyne on March 17, 2020. During each robbery, George threatened a bank employee with death for failure to comply with his demand for money; he stole a total of nearly $4,800 from the banks.
“This defendant terrified and threatened the lives of bank employees who were just doing their jobs,” said U.S. Attorney Williams. “He is clearly a danger to the community – not stopping at one robbery but escalating to four in a matter of days. This case demonstrates why our All Hands On Deck initiative is so important: we are investigating and prosecuting the most violent criminals to get them off the streets and behind bars.”
“Michael George was a crime spree unto himself, responsible for four bank robberies in 10 days," said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. "He threatened the bank employees he victimized, making them fear for their lives. It was imperative to get him off the street quickly before anyone was physically harmed. This sentence nips his burgeoning bank robbery career in the bud and holds him accountable for his bad actions. The FBI and our partners are committed to making our communities safer by bringing these violent offenders to justice.”
The case was investigated by the Federal Bureau of Investigation, the Lower Merion Police Department, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Kevin Jayne.
Philadelphia Man Sentenced to Seven Years for Illegally Possessing a HandgunRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Mark Manigault, 44, of Philadelphia, PA was sentenced to seven years in prison, and three years of supervised release by Senior United States District Court Judge R. Barclay Surrick after having been found guilty of being a convicted felon in possession of a firearm.
In February 2020, the defendant, a four-time convicted felon and repeat parole violator, was convicted after trial of one count of being a felon in possession of a firearm. The charges stemmed from an incident in September 2016 during which Manigault possessed a 9mm semi-automatic pistol, loaded with 12 rounds of ammunition while loitering on a street in West Philadelphia with another armed man. Investigating Philadelphia Police officers found two firearms hidden in the wheel well of a parked car nearby. Using surveillance footage from the bar and from a private residence down the street, officers determined that Manigault and the other individual possessed the firearms and had placed them in the wheel wells.
“Prosecuting, deterring and preventing violent crime in Philadelphia are top priorities of this Office and our ‘All Hands On Deck’ initiative,” said U.S. Attorney Williams. “Illegal gun possession poses a serious threat to public safety because it often leads to violence; therefore, we are committed to working with the Philadelphia Police Department and our law enforcement partners to combat this threat.”
“ATF will always investigate violent criminals found in illegal possession of firearms,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Working with our law enforcement partners and the U.S. Attorney’s Office, we will do everything within our power to reduce violent crime in Philadelphia by holding violent offenders accountable for continually disregarding the law.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
Federal Charges Filed Against Philadelphia Man Who Allegedly Shot PPD SWAT Officer in FebruaryRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Kristian Reyes, 35, of Philadelphia, PA, was arrested today by federal agents and charged by criminal complaint with firearms and drug offenses in connection with an incident earlier this year, during which a Philadelphia Police Department (PPD) officer was shot while executing a warrant for the arrest of the defendant.
The defendant is charged with using a firearm during a drug trafficking offense, illegally possessing a firearm as a previously convicted felon, and possession of controlled substances with intent to distribute. According to the publicly filed complaint, Reyes was the subject of an active arrest warrant for state probation and parole violations. On February 11, 2022, Philadelphia Police SWAT Officers went to arrest the defendant at a property on the 100 block of West Lehigh Avenue in the Fairhill section of the city. After announcing themselves and receiving no response, officers breached the front door and went up a narrow stairwell to attempt to enter the third-floor apartment. The officers once again announced themselves as they made their way up the stairs. While they waited for equipment to gain access to the apartment, the leader of the SWAT entry team heard multiple popping sounds from inside the apartment and then felt a stinging sensation in his chest. When he looked down, he realized he had been shot.
The PPD SWAT officer was rushed to the hospital for treatment of non-life-threatening injuries. Law enforcement officers later determined that the ceramic plate in the SWAT officer’s ballistics vest prevented more serious injury and likely saved his life.
Ultimately, the defendant was apprehended after attempting to escape by jumping from a third-floor window onto the roof, with a gun in his hand. Investigators recovered a Glock 9mm pistol from the roof. Ballistics comparison later confirmed that the gun was used in the shooting. Investigators also obtained a search warrant for the third-floor apartment and recovered fired cartridge casings, nearly 100 additional rounds of ammunition, and an enormous inventory of alleged narcotics including over 3,500 fentanyl pills, heroin, crack cocaine, methamphetamine, cocaine, and nearly $3,000 cash.
“As we have said many times since launching the All Hands On Deck initiative, our Office and our federal partners are doing everything we can to support the Philadelphia Police Department and prosecute cases federally when appropriate,” said U.S. Attorney Williams. “Here, as alleged in the complaint, the defendant brazenly and recklessly fired a weapon through a wall at law enforcement officers in the middle of the day in busy neighborhood; an offense that certainly meets the criteria for federal prosecution. We are committed to bringing the full might of the federal justice system to this battle against criminals in our city.”
If convicted, the defendant faces a maximum possible sentence of life in prison with a thirty-five year mandatory minimum sentence.
The case was investigated by Drug Enforcement Administration and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Ashley Martin.
This case is part of the DEA’s new initiative, Operation Overdrive, aimed at combatting the rising rates of drug-related violent crime and overdose deaths plauguing American communities. Operation Overdrive, which launched February 1, 2022, uses a data-driven, intelligence-led approach to identify and dismantle criminal drug networks operating in areas with the highest rates of violence and overdoses. DEA, working in partnership with its fellow federal, state, and local law enforcement agencies, has mapped the threats and initiated enforcement operations against those networks in 34 locations across 23 states.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Father Sentenced to 13 Years for Attempted Armed Bank Robbery in Which His Sons Were Charged as AccomplicesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Ronald DeWitt Vines, 50, of Philadelphia, PA, was sentenced to 13 years in prison and five years of supervised release by United States District Court Judge Paul S. Diamond for an armed robbery he and his accomplices, who were two of his sons, attempted to carry out in Bucks County in late 2017.
In August 2021, the defendant pleaded guilty to charges of attempted armed bank robbery, and using, carrying, and brandishing a firearm during a crime of violence, in connection with his attempt to commit the armed robbery of the PNC Bank branch on Buck Road in Holland, PA, in November 2017. To execute the robbery, Vines’ son, Elijah Vines (who was previously sentenced to five years and one month in prison), placed a handgun against the side of a bank employee’s head, forcing her to open the bank door as she arrived for work that morning. A second bank employee screamed when she realized the bank was being robbed. Vines and his accomplices, sons Elijah and Solomon Vines, quickly fled the bank in a getaway vehicle before being stopped by Northampton Township Police Officers responding to a 911 call. A search by officers of the getaway vehicle uncovered one loaded semi-automatic handgun, one loaded rifle, and two body armor vests.
“This defendant terrified and threatened the lives of bank employees who were just attempting to do their jobs, and he convinced his sons – young men with their whole lives ahead of them – to help him pull it off,” said U.S. Attorney Williams. “The simple fact is that this family is a danger to the community. This case demonstrates why our All Hands On Deck initiative is so important: we are investigating and prosecuting the most violent criminals to get them off the streets and behind bars.”
“Imagine the terror of that bank employee when the gun was put to her head,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Make no mistake, this was a violent crime, and the fact that Vines and his sons fled empty-handed doesn’t lessen the severity of their actions one bit. Fortunately, local police officers quickly saw and stopped the family’s getaway car before they could try again somewhere else. The FBI is gratified Vines is finally being held accountable for this shameful scheme in which he involved his own children.”
The case was investigated by Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northampton Township Police Department, and is being prosecuted by Assistant United States Attorney José R. Arteaga.
Swiss Scientist Convicted by Federal Jury of Conspiracy to Steal Trade Secrets Belonging to GlaxoSmithKlineRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Gongda Xue, 52, formerly a resident of Allschwil, Switzerland, a legal permanent resident of Switzerland and citizen of China, was convicted after trial of charges related to his participation in a conspiracy to steal trade secrets from GlaxoSmithKline (GSK) pertaining to biopharmaceutical products under development from January 2010 to January 2016.
During the offense conduct, Gongda Xue worked as a scientist at the Friedrich Miescher Institute for Biomedical Research (“FMI”) in Switzerland, which is affiliated with Novartis. His sister, Yu Xue, worked as a scientist at GSK in Pennsylvania. Both the defendant and his sister conducted cancer research as part of their employment at these companies. Their research was sensitive and confidential. Consequently, GSK and FMI required Yu Xue and Gongda Xue respectively to sign confidentiality agreements as part of their employment. While the defendant performed basic research for publication in journals, the defendant’s sister performed research relating to GSK’s anti-cancer drugs under development. Evidence presented at trial showed that the defendant knew that GSK’s research could prove incredibly valuable, and that it was proprietary and confidential.
While working for their respective entities, the defendant and his sister betrayed their employers and shared confidential information for their own personal benefit. Gongda Xue created Abba Therapeutics AG in Switzerland and Yu Xue and her associates formed Renopharma, Ltd., in China. Both companies intended to develop their own biopharmaceutical anti-cancer products. Renopharma received direct funding and support from the government of China. Gongda Xue stole FMI research into anti-cancer products and sent that research to Yu Xue. Yu Xue, in turn, stole GSK research into anti-cancer products and sent that to Gongda Xue. Yu Xue also provided hundreds of GSK documents to her associates at Renopharma. Renopharma then attempted to re-brand GSK products under development as Renopharma products and attempted to sell them for billions of dollars. Renopharma’s own internal projections showed that the company could be worth as much as $10 billion based upon the stolen GSK data.
Fortunately, in January 2016, the FBI arrested Yu Xue and her Renopharma associates, seized e-mail accounts containing the stolen GSK data, and seized the funds in a Renopharma bank account in order to prevent Renopharma from achieving its goals and monetizing the stolen GSK information. Gongda Xue was charged in 2018 and extradited from Switzerland to the United States in December 2019.
Two former GSK employees, Yu Xue and Lucy Xi, have pleaded guilty for their roles in sending GSK trade secrets to Renopharma. Yu Xue's sister, Tian Xue, pleaded guilty to a money laundering conspiracy for agreeing to launder the substantial ill-gotten gains which Renopharma expected to receive. One of the directors of Renopharma, Tao Li, also pleaded guilty for his role in conspiring to steal GSK trade secrets. The other director of Renopharma, Yan Mei, is a fugitive who currently resides in China.
“This defendant illegally stole trade secrets to benefit companies controlled by himself and his sister, one of which were financed by the Chinese government,” said U.S. Attorney Williams. “The lifeblood of companies like GSK is its intellectual property, and when that property is stolen and transferred to a foreign country, it threatens thousands of American jobs and disincentivizes research and development. Such criminal behavior must be prosecuted to the fullest extent of the law.”
“When a company like GSK spends billions on research and development to bring new drugs to market, the theft of valuable trade secrets poses a significant operational threat,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “When those secrets are stolen on behalf of a global adversary, it also endangers the security of our nation and the stability of our economy. The FBI will continue to bring all our investigative resources to bear to hold accountable criminals like Xue and his codefendants who steal intellectual property to benefit themselves and the Government of China. Our relationships with private sector partners like GSK are critical to disrupting such costly activity and bringing those responsible to justice.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Robert J. Livermore and J. Jeanette Kang. Extradition assistance was provided by the U.S. Department of Justice, Office of International Affairs. The U.S. Attorney would also like to thank GlaxoSmithKline and Novartis for their extraordinary cooperation on this important investigation.
Prolific Philadelphia Meth Dealer Convicted at Trial of Multiple Drug OffensesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Arthur Rowland, a/k/a “Bo,” 41, of Philadelphia, PA, was convicted after trial of multiple narcotics offenses, along with his earlier conviction for being a felon-in-possession of a firearm, arising from his participation in a large scale interstate methamphetamine distribution conspiracy.
In December 2018, the defendant was arrested pursuant to an Indictment charging him and four other individuals with conspiracy to distribute methamphetamine and related charges. Ultimately, a second Superseding Indictment charged Rowland and five others with participating in a methamphetamine distribution conspiracy that acquired hundreds of pounds of Mexican methamphetamine in Los Angeles, shipped the illegal narcotics back to the Philadelphia area for distribution here, and in turn transferred many thousands of dollars back to the California-based sellers to pay for that methamphetamine. In addition to the drug conspiracy, Rowland was also charged with possessing with intent to distribute about nine pounds of methamphetamine from packages that he had shipped to multiple Philadelphia-area locations, and with possessing two AK-47 style assault type weapons and a semi-automatic handgun while being a felon, and with using those same weapons in furtherance of his drug trafficking activities.
“Rowland and his co-conspirators shipped tons of drugs from one end of this country to the other through a large and sophisticated trafficking enterprise,” said U.S. Attorney Williams. “Today’s conviction demonstrates our Office’s commitment to taking down these types of criminal organizations and cutting off the supply of deadly drugs in order to keep our communities safe.”
“Arthur Rowland was part of a conspiracy that saw vast amounts of meth brought into and sold in the Philadelphia area,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “This conviction is a win for the FBI and all of our partners as we work together to get dangerous drugs and criminals off the street. The ultimate goal here is to eliminate the drug trade and concomitant gun violence plaguing so many communities.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Paul Shapiro and Timothy Stengel.
Former Assistant Controller Charged with Embezzling over $3 Million from Pennsylvania-Based Metal Salvage CompanyRead the Press Release
PHILADELPHIA –United States Attorney Jennifer Arbittier Williams announced that Tammy Simpson, 49, of Pocono Lake, PA, was charged by Indictment with wire fraud and filing false tax returns. These charges stem from the defendant’s employment with Metal Traders, Inc., d/b/a Triad Metals International (“Triad”), where she worked as the Assistant Controller for fourteen years.
The Indictment alleges that between 2012 and when she was terminated in October 2019, Simpson used her position at Triad to steal company money and use it to pay personal expenses charged to her credit cards and to make payments on personal loans. She allegedly did so by paying her personal credit card bills and loan payments with electronic transfers from the company’s business checking account. The defendant is also alleged to have kept credit cards from employees who had left the company and used them to charge personal expenses including airfare and other entertainment expenses for her family and friends, and to pay her personal tax liabilities and those of other individuals for whom she prepared tax returns. None of these payments or transfers were for legitimate business expenses of her employer. The Indictment further alleges that Simpson failed to report the money stolen from the company as income on her tax returns for tax years 2015 through 2018.
The Indictment seeks forfeiture of $3,199,192.68, which represents the total amount of money Simpson allegedly embezzled from her now former employer.
“This defendant allegedly swindled almost more than three million dollars from her former employer over the better part of a decade,” said U.S. Attorney Williams. “Instead of doing the right thing and performing her job honestly as the assistant controller for this company, she took advantage of her position and chose the greedy path. Our Office will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by financial fraud.”
“Tammy Simpson’s company entrusted her with key accounting duties,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Little did they know their longtime employee would take full advantage of that trust, allegedly diverting and using millions of dollars of the business’s money as her own. The FBI will diligently investigate and hold accountable anyone engaged in such egregious financial fraud.”
“No matter how it’s earned, all income must be reported,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Simpson stands accused of treating Triad’s bank account as her personal bank account, supporting her lifestyle and that of her friends and family. This indictment should reassure those who play by the rules that IRS Criminal Investigation and its law enforcement partners will investigate anyone suspected of similar conduct.”
If convicted, Simpson faces a maximum possible sentence of 172 years in prison, three years of supervised release, a $2,400,000 fine and a $1200 special assessment.
The case was investigated by the Federal Bureau of Investigations and the Criminal Investigation Office of the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney MaryTeresa Soltis
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five Members of Violent Chester, PA Drug Gang Plead Guilty to Multiple Narcotics and Firearm OffensesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Issac Barrett, 35; Kaleaf Gilbert, 30; Darnell Bell, 31; Terrance Womack, 35; and Jamar Bright, 33; all of Chester, PA, pleaded guilty this week before United States District Court Chief Judge Juan R. Sanchez to charges including conspiracy to distribute crack, cocaine and heroin, as well as related narcotics and gun offenses.
In October 2019, two dozen defendants were arrested pursuant to parallel Indictments of rival drug gangs that operated for years in and around the city of Chester, Delaware County: the “William Penn” drug trafficking group, which controlled the territory surrounding the Chester Housing Authority’s William Penn Homes, and their rivals the “3rd Bone” drug trafficking group, which held power in the area of 3rd and Lamokin Streets. This week, the remaining five William Penn defendants pleaded guilty, wrapping up the years-long investigation and prosecution, and ending this violent drug gang’s reign of terror in the greater Chester community. The defendants will be sentenced in August 2022, when defendants Barrett and Gilbert will face at least 15 years in prison due to the statutory mandatory minimum penalties on their drug and gun convictions.
As established during their plea hearings, defendant Issac Barrett served as the group’s source of supply, ensuring that his co-conspirators had a constant stock of crack, heroin, and cocaine, which his co-conspirators would then sell to their customer base of drug addicts. Co-defendant Kaleaf Gilbert managed a shared “trap phone” or drug phone, which the group, including co-defendants Bell and Womack, used to provide their joint customer base with around-the-clock access to crack and other controlled substances.
Not only did the William Penn defendants poison the Chester community with dangerous narcotics, they also used violence and threats of violence in furtherance of their drug trafficking crimes, including against the rival 3rd Bone gang. In February 2019, a dispute between the two gangs came to a head in an exchange of gunfire between Barrett and Gilbert and three 3rd Bone members in the parking lot of a downtown Chester bar, which resulted in the shooting and hospitalization of one of the rival gang members. Subsequent wiretapped calls with Gilbert’s phone revealed Gilbert attempting to get rid of the gun used in the shooting by throwing it on the roof of an adjacent building, trying to hide his bullet-ridden car, and cavalierly talking about the shooting and potential paralysis of the 3rd Bone member. Texts recovered from Barrett’s phone showed him placing a $15,000 bounty on a rival gang member whom he suspected was responsible for the shooting.
“These defendants and their co-conspirators in the William Penn gang, together with the defendants in 3rd Bone, terrorized the Chester community for years with their drug dealing and associated violence,” said U.S. Attorney Williams. “Barrett sourced and supplied dangerous narcotics, and Gilbert managed the distribution ‘business’ through a cell phone, a business which eventually led to a violent shooting. Thanks to the efforts of investigators at the FBI and DEA, the 3rd Bone and William Penn drug operations have been permanently shut down, making the streets safer and improving the quality of life for the Chester community.”
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 jointly by the Federal Bureau of Investigations and the Drug Enforcement Administration, working closely the Chester City Police Department, and is being prosecuted by Assistant United States Attorneys Matthew T. Newcomer and Meaghan A. Flannery.
Feds Indict Two Philadelphia Men for Carjacking Spree in Philadelphia and Delaware CountiesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Tarik Chambers, 20, and Nikeem Leach-Hilton, 22, both of Philadelphia, PA were charged by Indictment with conspiracy, three counts of carjacking, three counts of carrying a firearm during and in relation to a crime of violence, and related charges in connection with a spate of armed carjackings in Philadelphia and Delaware County late last year.
The Indictment alleges that in the early morning hours of December 19, 2021, the defendants carjacked two victims at gunpoint in the Lawncrest section of the city. Then, approximately 20 minutes later, the defendants carjacked two more victims at gunpoint in the Germantown section. Finally, the Indictment also alleges that defendants used a privately made “ghost” gun to carjack yet another victim at gunpoint about six hours later in the rear parking lot of a retail store along Baltimore Pike in Springfield Township. The defendants then fled from the police, leading officers from multiple agencies on a high-speed car chase through Delaware County before crashing into the car of another motorist, who suffered severe, life-threatening injuries including broken bones and significant head trauma.
Earlier this month, U.S. Attorney Williams announced that the defendants had been charged by Criminal Complaint with the Delaware County carjacking. This Indictment returned by a federal grand jury now formally charges them with all three carjackings and related offenses.
“The charges announced today against these two defendants exemplify the type of rapid results we have promised to deliver through the Carjacking Task Force and the ‘All Hands On Deck’ initiative,” said U.S. Attorney Williams. “These two terrorized no less than six victims in three different neighborhoods across our region in roughly six hours -- actions which are being met with very serious federal charges. Enough is enough – if you commit a serious violent crime in our city, you can expect the feds to show up on your doorstep.”
“ATF’s main objective will always be keeping our citizens safe,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “This indictment is indicative of ATF’s continued efforts working with our partners and proudly serving as part of the joint carjacking task force, being led by the Philadelphia Police Department. We will continue working with our local, state, and federal partners in making sure violent individuals are held accountable when they threaten the safety of the community.”
The swift action to investigate and federally charge these defendants is the result of the newly formed Philadelphia Carjacking Task Force, which is comprised of members of the U.S. Attorney’s Office Violent Crime Unit; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Philadelphia Police Department. The goal of the Taskforce is to stem the wave of armed carjackings and violent crimes through investigative and enforcement techniques meant to identify and refer for federal prosecution all who terrorize innocent victims through commission of these offenses within Philadelphia and surrounding areas.
If convicted on all charges, the defendants face a mandatory 21 years in prison with a maximum possible sentence of life.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Springfield Township Police Department, and the Delaware County District Attorney’s Office and is being prosecuted by Assistant United States Attorney J. Jeanette Kang and Special Assistant United States Attorney Sandra M. Urban.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced to Nearly 22 Years for Kidnapping and Robbing United States Postal WorkersRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that James Chandler, 55, of Philadelphia, PA was sentenced to 21 years and 10 months in prison, and five supervised release by United States District Court Judge R. Barclay Surrick for two counts of robbery of a postal worker and one count of kidnapping.
In September 2021, the defendant pleaded guilty to the charges in connection with two incidents that occurred on January 11 and February 4, 2021, during which Chandler robbed postal workers using a replica handgun, forcing them into their postal trucks and stealing packages from inside. During the incident in February, Chandler also forced the postal worker to drive him for several blocks in her postal truck before he fled on foot.
“Targeting and violently assaulting employees of the United States Postal Service is a serious federal crime,” said Acting U.S. Attorney Williams. “Mail carriers provide an essential service to nearly every citizen and business, oftentimes going above and beyond to execute their duties in challenging circumstances such as the COVID-19 pandemic. Mr. Chandler terrorized two postal workers at gunpoint, and he will now spend decades behind bars for his actions.”
“Early in 2021, James Chandler terrorized two mail carriers with the United States Postal Service by pointing a gun their faces and robbing them of parcels they were delivering. With some old fashioned police work, Postal Inspectors and Philadelphia Police detectives quickly identified and arrested Mr. Chandler,” said Damon Wood, Inspector in Charge of the Philadelphia Division of the Postal Inspection Service’s Philadelphia Division. “While Inspectors are busy investigating narcotic trafficking, mail fraud schemes, and the theft of mail, few other crimes will mobilize Inspectors and the resources of the Inspection Service more so than violence committed against its employees or its customers. I want to thank the officers and detectives of the Philadelphia Police Department and the prosecutors at the United States Attorney’s Office for working alongside us in holding Mr. Chandler responsible.”
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 United States Postal Inspection Service and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Justin Oshana.
Philadelphia Felon Sentenced to over Three Years for Illegally Possessing a Firearm Following Incident on I-76Read the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Bernard Giddings, 26, of Philadelphia, Pennsylvania was sentenced to three years and one month in prison, and three years of supervised release by United States District Court Judge Michael M. Baylson for illegally possessing a firearm as a felon following an incident on a state highway last year.
In December 2021, the defendant pleaded guilty to one count of possession of a firearm by a convicted felon. The charges stemmed from an incident that took place in March 2021 on Interstate-76, to which Pennsylvania State Police responded. Following leads developed in the investigation, PSP investigators obtained a search warrant for the defendant’s residence in Philadelphia. Upon execution of the search warrant, Troopers recovered a loaded semi-automatic firearm and an extended magazine under the bed where the defendant was sleeping. The defendant ultimately admitted to possessing the gun, and forensic testing found his DNA on the weapon as well. PSP investigators later determined that the firearm had been reported stolen out of North Carolina in 2019.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in Philadelphia where gun violence continues to plague neighborhoods,” said U.S. Attorney Williams. “Giddings will now spend years in prison for this offense, which means there is one less person illegally carrying a weapon on the streets of our city. Our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck’ to put criminals like this defendant behind bars.”
“Identifying, investigating, and assisting in the prosecution of the armed gunmen that threaten the safety of the public is ATF’s primary focus,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “ATF is determined to collaborate with our law enforcement partners in our plight to ensure Philadelphia neighborhoods can be free of gun violence. Thank you to the Pennsylvania State Police and the U.S. Attorney’s Office for their committed support in our effort to combat 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 Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms & Explosives, and is being prosecuted by Special Assistant United States Attorney Martin Howley.
Philadelphia Felon Found Guilty by Jury of Illegally Possessing a Firearm During June 2020 Civil UnrestRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Steven Pennycooke, 36, of Philadelphia, PA, was convicted after trial of a single count of possession of a firearm by a felon arising from a looting incident during the period of civil unrest and mandatory curfew in the City of Philadelphia in Spring 2020.
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. 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 reached record-breaking proportions,” said U.S. Attorney Williams. “As the evidence presented at trial showed, the defendant illegally possessed a loaded firearm that fortunately was secured by experienced Philadelphia Police officers who took the defendant into custody without incident. Our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck’ to support Philadelphia police and get criminals like this defendant off the streets for a long time.”
“Getting guns away from people not allowed to have them is vital as we battle violent crime in Philadelphia,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our PPD partners will use every tool at our disposal to take criminals off the street, as we work to make Philadelphia safer. The folks who live, work, or visit here deserve nothing less.”
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.
Federal Inmate Convicted by Jury of Assault on Fellow Prisoner at FDCRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Robert Smith, 49, of Philadelphia, PA, was convicted today after trial of one count of assault with a dangerous weapon with intent to do bodily harm, and one count of possession of contraband in prison stemming from a violent incident in which he was involved while in federal prison.
In December 2020, while the defendant was incarcerated at the Federal Detention Center in Philadelphia, he was involved in a physical altercation with another incarcerated individual in the same unit. Officers separated them and took them both for medical assessment, where it was discovered that the other individual had a wound consistent with being stabbed. Video footage of the fight showed Smith striking the individual with a stabbing motion, then passing an unknown item under a door to another individual, who discarded the item in a trash can. Officers searched the trash can several minutes later and found a seven-inch-long piece of metal fashioned into a knife.
“One goal of incarceration is to deter future criminal conduct,” said U.S. Attorney Williams. “But instead of learning from previous mistakes, this defendant engaged in a violent assault on a fellow inmate. The U.S. Attorney’s Office will not tolerate this kind of lawless behavior.”
“It’s concerning when inmates serving time for past offenses continue to break the law, particularly with crimes of violence,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Both the federal inmates and BOP personnel at FDC Philadelphia deserve a safe environment in which to live and work, so violent behavior like Robert Smith’s cannot go unpunished. This conviction ensures he will spend even longer behind bars. We hope the extra time sends a message that it’s in his interests to do better going forward.”
The case was investigated by Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Christopher Diviny and Lauren Stram.
New Jersey Man Sentenced to over Ten Years for Violent Carjacking in Philadelphia Restaurant Parking LotRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Sherman Artwell, 24, of Camden, NJ was sentenced to ten years and one month in prison, five year of supervised release by United States District Court Judge Paul S. Diamond for his participation in a violent carjacking in Philadelphia and flight to New Jersey in the stolen vehicle.
In November 2021, the defendant pleaded guilty to carjacking and using, carrying and brandishing a firearm during a crime of violence. The charges arose from an incident that occurred in May 2018 in which the defendant, armed with a shotgun, and a juvenile co-conspirator approached the victim and his friend while the two were talking in the parking lot outside a Dunkin Donuts in Philadelphia. The two forcibly pulled the victim from the driver’s seat, threw him onto the ground, and pointed guns at him. The co-conspirator jumped into the driver’s seat of the victim’s vehicle, and the defendant got into the passenger seat. The two fled to New Jersey, and Camden County Police officers apprehended the juvenile co-defendant after he crashed the vehicle. The defendant was separately identified through video and forensic evidence and apprehended a short time later.
“As we have said many times since launching the #AllHandsOnDeck initiative, our Office and our federal partners are doing everything we can to support the Philadelphia Police Department and prosecute cases federally when appropriate,” said U.S. Attorney Williams. “Here, the defendant participated in a brazen carjacking at gunpoint in the middle of the afternoon in busy neighborhood -- an offense that certainly meets the criteria for federal prosecution. We are committed to bringing the full might of the federal justice system to this battle against the escalating number of carjackings.”
“Imagine the terror of being pulled from your car with a shotgun pointed straight at you,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Sherman Artwell violently accosted an individual living his life, minding his business, just to take that vehicle. The FBI is firmly committed to working with our police partners to address the spate of carjackings that have been plaguing Philadelphia. People shouldn’t have to live in fear every time they get behind the wheel.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Camden County (NJ) Police Department, and is being prosecuted by Assistant United States Attorney Christopher Parisi and Special Assistant United States Attorney Martin Howley.
Convicted Felon Sentenced to Almost Four Years for Firearms Offenses Following Dangerous Car Chase in Fairmount Section of PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Demetrius Wilson, 30, of Philadelphia, PA, was sentenced to 3 years and 10 months in prison, and three years of supervised release by United States District Court Judge Paul S. Diamond for a firearms offense which stemmed from a dramatic and perilous flight from Philadelphia Police.
In September 2021, the defendant pleaded guilty to possession of a firearm by a convicted felon. In January 2020, Philadelphia police attempted to conduct a traffic stop of a vehicle which was being operated by Wilson for a routine traffic violation in a residential neighborhood in the Fairmont-Brewerytown section of Philadelphia. Instead of complying with the traffic stop, Wilson sped away in his vehicle and the officers pursued him. The car chase ended when Wilson crashed into a telephone pole, but even after that accident he continued to flee undeterred; the defendant exited the vehicle and continued to flee on foot. Wilson’s reckless attempt to escape ended when he collided with a Philadelphia police officer and the gun in his possession, a loaded 9mm handgun, flew from his hand.
“The defendant’s actions, both the illegal possession of a firearm and his potentially deadly exploits on the road, presented a serious threat to the safety of our community,” said U.S. Attorney Williams. “This sentence of years in prison should serve as an example to others who have previously been convicted of felony offenses and are considering carrying firearms that we will use every law enforcement tool at our disposal to find and stop you. If you choose to illegally carry a firearm, you are going to face serious federal charges.”
“Convicted felons, who illegally possess firearms, will face federal prosecution and the possibility of a lengthy federal prison sentence,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “I want to thank our partners at the Philadelphia Police Department and the United States Attorney’s Office for their combined efforts investigating this case.”
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 Ashley N. Martin.
Former Local Union Vice President Sentenced to Two Years for Operating Overtime Kickback Scheme in the Allentown Post OfficeRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Joseph Whitbeck, 56, of Tamaqua, PA, was sentenced to two years in prison, three years of supervised release, and ordered to pay a $50,000 fine by United States District Court Judge Edward G. Smith for devising a scheme to defraud fellow union members out of rightfully earned overtime compensation.
In November 2021, the defendant pleaded guilty to multiple charges of wire fraud and honest services wire fraud. While serving as the Vice President for the Local 274 branch of the National Association of Letter Carriers in the Lehigh Valley area, Whitbeck operated a kickback scheme involving certain letter carriers at the Allentown Post Office. As the Vice President, the defendant filed numerous grievances on behalf of groups of letter carriers, claiming that U.S. Postal Service managers violated overtime rules. Whitbeck then settled these class-action grievances for total lump sums, without designating the specific individuals to whom overtime grievance payments were owed, so that he could select the payees at a later time. Meanwhile, Whitbeck offered to secure extra overtime grievance payouts for some letter carriers who agreed to kick back a portion directly to him, generally in cash. This kickback scheme prevented non-participating letter carriers from receiving overtime grievance funds to which they were entitled. The defendant often made false and misleading statements to convince letter carriers to participate in his scheme; for example, he frequently told letter carriers that he would use the kick-backed funds to assist other letter carriers who were out of work.
The defendant’s covert kickback scheme lasted more than a decade and was uncovered only when a concerned letter carrier raised the issue at a union Executive Board meeting in March 2018.
“Union representatives are supposed to act in the best interest of their members, not swindle them out of rightfully earned pay or urge them to participate in fraud,” said U.S. Attorney Williams. “As Vice President of the local branch of Letter Carriers, Whitbeck had a duty to advocate on behalf of all members in the Allentown Post Office in connection with the equitable distribution of overtime grievance settlements. He abused his position and for that he will now spend [months or years] in prison.”
“Mr. Whitbeck used his union position to take financial advantage of the very colleagues he was charged with representing. The U.S. Postal Service Office of Inspector General together with the U.S Attorney’s Office and our law enforcement partners will pursue those individuals who would use their positions of public trust within the Postal Service to victimize or steal from others for personal gain,” said Acting Special Agent in Charge Michael Spolidoro, Mid-Atlantic Area Field Office-Office of Inspector General for the U.S. Postal Service.
The case was investigated by the U.S. Postal Service – Office of Inspector General, the U.S. Department of Labor – Office of Inspector General, and the U.S. Department of Labor – Office of Labor-Management Standards, and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Philadelphia Man Sentenced to 6 ½ Years in Prison for Stealing Nearly $1 Million in PPP FundsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Devron Brown, 50, formerly of Philadelphia, PA, was sentenced to six years and six months in prison, five years of supervised release, and ordered to pay $939,350 restitution by United States District Court Judge Chad F. Kenney for his involvement in a scheme to unlawfully obtain and misuse loan proceeds offered through the federal Paycheck Protection Program (“PPP”).
In December 2021, the defendant pleaded guilty to eleven felony counts: two counts of bank fraud and attempted bank fraud, and nine counts of money laundering in connection with fraudulently obtaining approximately $937,500 in PPP loan proceeds by making false representations regarding his alleged construction business, Just Us Construction, Inc. Brown made multiple false characterizations about the business, including the number of employees, the wages paid to them, the payroll taxes paid on those wages, and the intended use of the PPP loan proceeds. Brown then used those PPP loan proceeds for personal and unauthorized purchases, including a new residential property in Florida, a motorcycle, an all-terrain vehicle, a luxury automobile, and diamond jewelry. The defendant also caused a second fraudulent PPP loan application to be submitted for approximately the same amount in early 2021, but that application was denied.
“Paycheck Protection Program funds are intended to help American small-businesses continue paying their employees, even if revenues have dropped dramatically due to the pandemic,” said U.S. Attorney Williams. “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. Here, the defendant fraudulently obtained nearly $1 million in funds that could have helped struggling businesses and individuals, and instead spent the money on indulgences for himself.”
“Cars, diamond rings, a house — Devron Brown must’ve thought he hit the jackpot when he got that PPP money,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “We’re talking about a program created to keep businesses and employees afloat amid a pandemic battering our economy. The FBI simply won’t stand for opportunists thinking they can defraud the federal government, live large, and get away with it. We will continue to aggressively pursue anyone foolish enough to do so.”
“Joseph Whitbeck, former Vice President of the National Association of Letter Carriers Branch 274, betrayed the trust of the members he served by engaging in a kickback scheme involving the solicitation of cash payments from letter carriers who he assisted in obtaining monetary grievance settlements from the United States Postal Service. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards to investigate union officials who exploit their members for personal benefit,” said Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
The case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of the Inspector General, with assistance from the United States Marshals Service, and is being prosecuted by Assistant United States Attorney Kathryn Deal.
Chester County Man Sentenced to over 2 ½ Years for Stealing Pandemic Unemployment Assistance Funds While IncarceratedRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Kenneth L. Huggins, Jr., 25, of Coatesville, PA, was sentenced to two years and nine months in prison, and three years of supervised release by United States District Judge Gerald J. Pappert for filing a fraudulent application for pandemic unemployment compensation while he was imprisoned on a state drug trafficking sentence, thus making him ineligible to receive those benefits.
On March 27, 2020, the CARES ACT was enacted and created the Pandemic Unemployment Assistance (“PUA”) program, to provide unemployment benefits to workers who lost their jobs because of the COVID-19 pandemic and who were ineligible for other unemployment compensation.
In December 2021, the defendant pleaded guilty to charges of mail fraud and conspiracy to commit mail fraud stemming from this scheme to file false PUA claims. Beginning in July 2020, Huggins abused the emergency benefit program by arranging to have his mother (co-defendant Patrice Hawthorne) and cousin (co-defendant Dashona Lawrence) submit a fraudulent PUA claim on his behalf. At the time, Huggins was an inmate at Chester County Prison in West Chester, PA, and he had been incarcerated there since before the pandemic began. Huggins also attempted to convince his co-defendants to file fraudulent PUA applications for two of his fellow inmates (who were also ineligible for benefits because they were not unemployed as a result of the pandemic) and planned to keep the vast majority of any funds paid to those inmates for himself. In total, Huggins fraudulently obtained nearly $13,000 in PUA benefits.
“Pandemic Unemployment Assistance funds are intended to help working Americans continue to pay their bills and make ends meet, even when hours and wages have dropped dramatically due to the pandemic,” said U.S. Attorney Williams. “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. Huggins fraudulently obtained thousands of dollars in funds that could have helped struggling individuals.”
“The job losses from COVID-19 were fast and furious in 2020,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “So many people lost their livelihoods and needed help fast. The Pandemic Unemployment Assistance program was enacted as a safety net, not an ATM for prison inmates seeking easy money. Kenneth Huggins stole thousands of taxpayer dollars to which he knew he wasn’t entitled. Anyone considering doing the same should know this: the FBI is committed to finding and locking up criminals willfully defrauding the federal government.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations, and the U.S. Department of Labor Office of the Inspector General, and is being prosecuted by Assistant United States Attorney Jessica Rice.
Member of Philadelphia ‘Hilltop’ Drug Gang Sentenced to over Seven Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Hyneef Harvey, 30, of Philadelphia, PA, was sentenced to seven years and three months in prison, and six years of supervised release by United States District Judge Gene E.K. Pratter for distributing narcotics as part of the Hilltop Drug Trafficking Group (DTG), an organization responsible for putting large amounts heroin and other narcotics including crack cocaine, oxycodone and fentanyl on the streets of West, Southwest, and Northwest Philadelphia, and Upper Darby between 2013 and 2018.
In November 2021, the defendant pleaded guilty to multiple felony narcotics charges including distribution and intent to distribute controlled substances and distribution of controlled substances near a school, stemming from his role in the Hilltop organization. The DTG operated seven days a week from approximately 9:00 am until midnight as a phone order/delivery service, through which customers called a cell phone number belonging to the leaders of the organization to place orders for illegal narcotics. The customers were then redirected to “runners,” who would meet the customers on the street, often entering the customers’ vehicles, to deliver the narcotics in exchange for payment. Hilltop was a violent group that often defended its territory and narcotics with firearms, and through distribution of narcotics is responsible for multiple overdose deaths.
“This case is an excellent example of all levels of law enforcement collaborating to dismantle a dangerous drug trafficking operation putting deadly narcotics on streets all across Philadelphia and beyond,” said U.S. Attorney Williams. “This defendant directly threatened the safety of children by conducting the business of drug dealing adjacent to schools and playgrounds, actions for which he will now spend years behind bars.”
The case was investigated by Drug Enforcement Administration and the Philadelphia Police department, and is being prosecuted by Assistant United States Attorney Kelly Harrell and Everett Witherell.
Montgomery County and Florida Women Convicted of Conspiring to Access Company Computers for MoneyRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Frances Marie Eddings, 68, of Orlando, FL, and Jude Denis, 54, of Wyncote, PA, were convicted after trial in the Allentown Federal Courthouse of accessing a computer system without authorization for pecuniary gain from a non-profit charity organization.
In September 2019, the defendants were charged with one count of conspiracy, three counts of unauthorized access to a computer, and aiding and abetting, stemming from their scheme to receive a payment of money from the Prostate Cancer Foundation (PCF), Denis’ former employer. In support of that scheme, they accessed internal documents obtained via unauthorized access to the computer system of PCF and threatened to release them to the public. Denis was hired by PCF in August 2014 but left her position shortly thereafter.
Evidence presented at trial showed that on several occasions over the course of several days after Denis left her employment, PCF computers were accessed, and documents were downloaded to her laptop and emailed to Eddings. In a series of emails sent by Eddings to PCF, the defendants demanded a payment of $150,000 in lost wages for Denis, as well as a $37,500 payment for Eddings for acting on Denis’ behalf. In those emails, Eddings threatened to release the documents to the public if their demands were not met. When their demands were ultimately not met, Eddings sent a series of emails to the PCF Board, PCF donors, and members of the media, sharing her previous correspondence and attaching the documents.
“Cyber-intrusion is a threat to all types of businesses, including non-profits,” said U.S. Attorney Williams. “Individuals who take advantage of a company’s vulnerability like these defendants did shows how easily sensitive information can be compromised. However, the defendants didn’t count on how decisively our Office would respond by holding them accountable for their illegal actions.”
“It should go without saying that committing cyber intrusions to settle a score is an incredibly bad idea,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Denis wanted payback from the nonprofit for its perceived unfairness and her friend Eddings was on board to help. Their short-sighted scheme has brought serious consequences, as evidenced by these convictions. The FBI is committed to tracking down and holding accountable cyber criminals, whatever their motivation for willfully breaking the law.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Alison Kehner and Kishan Nair.
Federal Officials Unveil Two Indictments Charging 14 People with Illegally Trafficking 400 Firearms into PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams, Bureau of Alcohol, Tobacco, Firearms and Explosives Philadelphia Field Division Special Agent in charge Matt Varisco announced federal charges in two separate interstate firearms trafficking cases at a press conference held at Philadelphia ATF Headquarters today. Both cases involve individuals illegally trafficking firearms from states in the southern United States into Philadelphia, a large northeastern city, a fact pattern which is known as the ‘iron pipeline.’ Taken together, both trafficking conspiracies are alleged to be responsible for illegally putting approximately 400 firearms on the streets.
In the first case, captioned United States v. Norman, et al, the following 11 defendants have been charged by Indictment with conspiracy to deal firearms without a license and to make a false statement to a federally licensed firearms dealer:
- Fredrick Norman, 25, of Atlanta, GA;
- Brianna Walker a/k/a “Mars, 23, of Atlanta, GA;
- Charles O’Bannon a/k/a “Chizzy,” 24, of Villa Rica, GA;
- Stephen Norman, 23, of Villa Rica, GA;
- Devin Church a/k/a “Lant,” 24, of Villa Rica, GA;
- Kenneth Burgos a/k/a “Peppito,” 23, of Philadelphia, PA;
- Edwin Burgos a/k/a “Rock,” 29, of Philadelphia, PA;
- Roger Millington, 25, of Philadelphia, PA;
- Ernest Payton, 30, of Philadelphia, PA;
- Roselmy Rodriguez, 22, of Philadelphia, PA; and
- Brianna Reed, 21, of Shippensburg, PA.
Additionally, defendants Edwin Burgos and Kenneth Burgos were each charged with dealing firearms without a license.
In the second case, captioned United States v. Ware, et al, the following three people have been charged by Indictment with conspiracy to deal firearms without a license and to make a false statement to a federally licensed firearms dealer:
- Muhammad Ware a/k/a “Moo,” 26, of Myrtle Beach, SC;
- Haneef Vaughn a/k/a “Neef,” 25, of Philadelphia, PA; and
- Jabreel Vaughn a/k/a “Breely,” 20, of Elkins Park, PA.
Additionally, defendant Muhammad Ware is charged with dealing firearms without a license.
United States v. Norman, et al:
Beginning in October 2020, ATF Special Agents identified multiple firearms which were recovered in the Philadelphia area as having been originally purchased in Georgia. The short time frame between the firearms’ purchase in Georgia and subsequent recovery in Philadelphia (known as a short “time to crime” period) indicated that the weapons may have been trafficked into the city.
According to the Indictment, subsequent investigation showed that over the course of six months, the conspiracy led by defendant Norman allegedly purchased nearly 300 firearms from dealers in and around Atlanta, and transported the firearms to Philadelphia for distribution and sale on the black market in exchange for approximately $116,000.
United States v. Ware, et al:
Beginning in March 2020, ATF Special Agents identified multiple firearms which were recovered in Philadelphia as having been originally purchased in South Carolina. Agents subsequently learned about a number of additional firearms recovered in Philadelphia with short “time to crime” periods that indicated they may have been trafficked into the city, just as in Norman, et al.
According to the Indictment, the recovered firearms were concentrated in a particular area of Philadelphia and were originally purchased near Myrtle Beach, SC. Subsequent investigation showed that defendant Ware had allegedly purchased several of the recovered firearms, and conspired and communicated with defendants Haneef Vaughn and Jabreel Vaughn, and others about the purchase, transportation and sale on the black market of over 100 illegal firearms.
“When I announced the All Hands On Deck initiative in April 2021, I vowed that our Office would do all we could to stop the violence ravaging our city and support the Philadelphia Police Department in its work,” said U.S. Attorney Williams. “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. The two indictments announced today, charging fourteen people with iron pipeline firearms trafficking conspiracies, show that we are aggressively focused on this work.”
“Preventing the illegal use and trafficking of firearms is a central focus of ATF's strategy to combat violent crime and protect our communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Illegally purchased firearms often end up in the hands of violent offenders and affect communities near and far. Ensuring firearms traffickers are aggressively investigated and swiftly brought to justice will remain a top priority for our firearms trafficking task force. And this collaborative effort between all of our law enforcement counterparts is a prime example of such.”
In Norman, et al: If convicted of all charges, Edwin Burgos and Kenneth Burgos face a statutory maximum penalty of 10 years in prison. All other defendants face a statutory maximum penalty of 5 years in prison.
In Ware, et al: If convicted of all charges, defendant Ware faces a statutory maximum penalty of 10 years in prison. Defendants Haneef Vaughn and Jabreel Vaughn each face a statutory maximum penalty of 5 years in prison.
These cases are 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 Norman, et al case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Philadelphia, Atlanta, and Harrisburg Field Offices, the Philadelphia Police Department, the Pennsylvania State Police, Homeland Security Investigations, and the U.S. Marshals, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
The Ware, et al case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Mark Miller and Special Assistant United States Attorney Martin Howley.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced to One Year in Jail for Shining Laser into Police HelicopterRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Raji Yusuf, 36, of Philadelphia, PA, was sentenced to one year in prison and three years of supervised release, and was ordered to pay a $1,000 fine by United States District Judge Michael Baylson for shining a laser pointer into a Philadelphia Police helicopter while it was airborne and for violating the terms of his supervised release.
In December 2021, the defendant pleaded guilty to the charge of aiming a laser at an aircraft. The charge stemmed from an incident that occurred in June of that year when two Philadelphia police officers were operating a helicopter as part of a regular nightly patrol. At approximately 9:55 p.m., while in flight in the area of the Northeast Philadelphia Airport, their helicopter was struck multiple times with a high intensity green laser. The laser flashes illuminated the cockpit, causing the officers to temporarily see spots in their vision. After regaining normal vision, the officers pinpointed the source of the laser on the ground in the Roosevelt Mall parking lot. Using the helicopter’s flood light, the officers saw a male wearing a blue shirt and jeans, later identified as the defendant, with the laser pointer. The officers radioed for assistance and Yusuf was taken into local custody by officers on the ground. At the time, Yusuf was on federal supervision for a 2016 conviction for trafficking firearms; accordingly, he was arrested by federal authorities a few days later for violating his supervised release.
“There is a reason that aiming a laser at an aircraft is a federal offense – the consequences for those onboard and anyone in the vicinity could be disastrous,” said U.S. Attorney Williams. “Let this be a warning to anyone who might consider trying something similar: you could face serious federal prison time as a result.”
“Aiming a laser pointer at an aircraft risks the safety of those onboard, as well as people on the ground. If a pilot’s vision is compromised, it could prove disastrous,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Mr. Yusuf made an extraordinarily bad decision — and did so while on federal supervision for his previous offense. This sentence not only holds him appropriately accountable, it shows how seriously we take it when someone uses a laser pointer in such a reckless and risky way.”
“Today’s sentencing shows that there are real consequences for pointing a laser at any aircraft,” said Joseph Harris, Special Agent-in-Charge, Department of Transportation Office of Inspector General (DOT-OIG), Northeastern Region. “DOT-OIG will continue working with our Federal and State law enforcement and prosecutorial partners to vigorously pursue anyone who chooses to compromise the safety of the Nation’s airspace.”
The case was investigated by the Federal Bureau of Investigation and U.S. Department of Transportation – Office of the Inspector General, with assistance from the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Sarah Wolfe.
Philadelphia Man Sentenced to 20 Years in Prison After Being Convicted at Trial of Unlawfully Possessing Drugs and GunsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Jamir Foushee, a/k/a “Jamir Young,” 32, of Philadelphia, PA, was sentenced to sentenced to 20 years in prison by United States District Judge Michael M. Baylson for multiple narcotics and firearms offenses. The charges against the defendant stemmed from his unlawful possession of these items while riding in a car stopped by Philadelphia police in the Kensington section of the city.
In June 2021, the defendant was found guilty by a jury of possession with intent to distribute “crack” cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. The evidence presented at trial proved that, in April 2019, Foushee was riding as a passenger in his own car when it was stopped for a traffic violation by Philadelphia Police officers. After observing the defendant reach under his seat, officers discovered a handgun under that seat. The defendant then stated to officers that the guns and drugs in the car were his. Police detained Foushee and the driver of the vehicle, searched the car, and found crack cocaine packaged for sale, as well as two additional firearms. At the time of the incident, the defendant was a convicted felon and was not allowed by law to possess a firearm.
“Drug distribution and gun violence are an epidemic in Philadelphia, and the federal government is aggressively prosecuting both; we are ‘All Hands On Deck’ to get dangerous criminals like this defendant off the streets,” said U.S. Attorney Williams. “As a previously convicted felon, Foushee knew all too well that he is prohibited from possessing a firearm, , and his simultaneous possession of illegal narcotics made him even more dangerous. We want to thank our law enforcement partners in this case, the ATF and the Philadelphia Police Department, for their hard work and dedication.”
“A convicted felon carrying drugs and guns clearly threatens the safety of the community,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “A jury convicted this defendant of federal crimes and with this jail sentence, he will no longer be in a position to harm anyone for quite some time. Thank you to our partners at the Philadelphia Police Department and the U.S. Attorney’s Office for their continued support in combatting 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 & Explosives, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney David E. Troyer, and Department of Justice Trial Attorney Randall Warden.
Feds Charge Eight Suspected Carjackers Tied to Multiple Offenses in Violent Crimes Across Philadelphia RegionRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams, together with federal, state and local law enforcement officials, announced that six defendants were arrested and charged with federal carjacking and other violent crimes in connection with incidents that occurred in Philadelphia and its surrounding counties:
- Christopher Robinson, 20, of Philadelphia, PA, was charged by Criminal Complaint with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with three armed carjackings on December 9, 2021, January 5, 2022, and January 11, 2022, all in West Philadelphia.
The carjacking victims in these three separate incidents were caught off guard while on the phone sitting in their parked vehicles or filling their gas tank.
- Tarik Chambers, 19, and Nikeem LeachHilton, 21, both of Philadelphia, PA, were charged by Criminal Complaint with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection a carjacking on December 19, 2021, in Delaware County.
The defendants allegedly used a privately-made “ghost” gun to carjack the victim in the rear parking lot of a retail store along Baltimore Pike in Springfield. The defendants fled from the police, leading officers on a high-speed car chase through Delaware County before crashing into another motorist’s car, who suffered severe, life-threatening injuries including broken bones and significant head trauma.
- Dayon Hackett, 19, of Philadelphia, PA, was charged by Indictment with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with an armed carjacking that occurred in the Bridesburg section of Northeast Philadelphia and a second armed carjacking and shooting in South Philadelphia, both of which occurred on December 22, 2021.
The second carjacking incident occurred while the victim was sitting in his parked car waiting for a parking space to open. The victim and two offenders exchanged gun fire and the victim sustained serious injuries including severed arteries, shattered bones, and bullets lodged near internal organs.
- Sean Allen, 23, of Camden, NJ, was charged by Indictment with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with two armed carjackings on January 4, 2022, and January 6, 2022, in Northeast Philadelphia.
The carjacking incidents occurred after victims posted their vehicles for sale on Facebook Marketplace and were contacted by an account claiming to have an interest in purchasing the vehicles.
- Cameron Styles, 20, of Philadelphia, PA, was charged by Indictment with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with two carjackings on February 10 and February 11, 2022, in Northeast Philadelphia.
The carjacking incidents occurred while the first victim was waiting for a train, and while the second victim was parked at a gas station.
Additionally, and as previously announced, in February 2022, Alex Fernandez-Pena and Juan Jose Rodriguez were charged by Indictment with carjacking and brandishing a firearm during a crime of violence stemming from their alleged involvement in a carjacking incident of a rideshare vehicle earlier this year in the Parkside section of Philadelphia, during which the victim shot both defendants while they tried to flee. These arrests bring the total number of carjacking suspects taken into federal custody in the last several weeks in the Eastern District of Pennsylvania up to eight.
The swift action to investigate and federally charge these defendants is the result of the newly formed Philadelphia Carjacking Task Force, which is comprised of members of the U.S. Attorney’s Office Violent Crime Unit; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Philadelphia Police Department. The goal of the Taskforce is to stem the wave of armed carjackings and violent crimes through investigative and enforcement techniques meant to identify and refer for federal prosecution all who terrorize innocent victims through commission of these offenses within Philadelphia and surrounding areas.
“It has been nearly a year since we launched our ‘All Hands On Deck’ initiative, and in that year our Office and our federal partners have doggedly pursued every opportunity to support the Philadelphia Police Department, which now includes the recently-created joint carjacking task force,” said U.S. Attorney Williams. “I have said repeatedly that if you commit a violent offense like a carjacking at gunpoint, federal authorities are coming for you. In just weeks we have arrested and charged eight people, and there’s much more to come.”
“The rash of carjackings we’ve seen in and around Philadelphia is unacceptable,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “That’s why this task force is united in our efforts to find those responsible and get them off the street. The potential penalties for federal carjacking charges are severe, so if people want to keep committing these crimes, they should know that the carjacking task force will make it a priority to put them in cuffs and behind bars for a good long time. We simply won’t stand for criminals terrorizing innocent people like this.”
“These indictments exemplify the strength of our newly established carjacking task force,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division.“Over the past year we have witnessed a spike in carjackings throughout the Commonwealth, and the announcement of these indictments should send a clear message to those who are thinking about committing violent acts. The public should know we are working closely together with our local, state, and federal partners to seek justice for those responsible for these types of crimes.”
“There are far too many in this city who think that they can commit violent crimes with impunity, and that law enforcement will sit idly by while our communities are traumatized,” said Philadelphia Police Commissioner Danielle Outlaw. “These latest arrests prove yet again that criminal behavior will not be tolerated, and sends the message that if you’re doing wrong, if you’re engaging in illegal activities, the PPD along with our local, state, and federal law enforcement agencies will find you, arrest you, and you will be charged to the fullest extent of the law.”
“Carjackings are dangerous, violent acts that strike fear into our communities and threaten public safety,” said Pennsylvania Attorney General Josh Shapiro. “We will continue to share available intel to collaborate with our law enforcement partners so we can use every resource available to hold individuals who commit these crimes accountable. I’m thankful for the hard work of the agents in our office, as well as our local, state, and federal partners in this important task force.”
If convicted, each defendant faces a maximum possible sentence of life in prison, as well as a mandatory minimum sentence of seven years in prison.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; and the Philadelphia Police Department; with assistance from the Pennsylvania Office of Attorney General; and are being prosecuted by Assistant United States Attorneys Kelly Fallenstein, Justin Oshana, Robert Eckert, Jeanette Kang, Michael Miller and Special Assistant United States Attorneys Sandy Urban and Tracie Gaydos.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia LCN Associate Sentenced to 10 Years in Prison for Racketeering and Drug DealingRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Victor DeLuca, a.k.a. “Big Vic,” 57, of Philadelphia, Pennsylvania was sentenced to ten years in prison and ten years of supervised release by Senior United States District Judge R. Barclay Surrick for racketeering conspiracy and conspiracy to distribute controlled substances.
In November 2021, the defendant pleaded guilty to charges in a superseding indictment stemming from his involvement in criminal activity with and for the Philadelphia La Cosa Nostra, also known as the LCN, the mafia, and the mob. The Philadelphia LCN is one of a number of LCN organized crime families based in various cities throughout the United States. The goal of the LCN in Philadelphia and elsewhere is to make money through the commission of various crimes, including illegal gambling, loansharking, drug trafficking, and extortion.
According to court documents, and the defendant’s guilty plea on November 29, 2021, DeLuca was an associate of the LCN who worked with LCN members and associates to commit crimes such as drug trafficking, extortion, and loansharking, among other crimes. The defendant pled guilty to his involvement with the LCN for that conduct as well as for an effort in April 2017 to obtain two pounds of methamphetamine, intended for later resale, on behalf of other LCN members and associates.
“Even though the Philadelphia mob is not what it was in the last century, the organization and its criminal activities are still very much a problem and are damaging the communities in which it operates,” said U.S. Attorney Williams. “The U.S. Attorney’s Office is committed to prosecuting anyone who is committing serious federal crimes like these, and we will not rest until the mob is nothing but a bad memory.”
“As a longtime associate of the Philadelphia LCN, Victor DeLuca earned his keep through drug-dealing, loansharking, and extortion - pretty much the antithesis of an honest day’s work,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “His actions caused harm to individual victims and the community alike and it’s gratifying he’s now been brought to justice. The FBI will continue to keep organized crime squarely in our sights as we work to make the city of Philadelphia a safer place.”
The case was investigated the FBI, including its Philadelphia Field Division and Atlantic City Resident Agency, as part of a long-running investigation, with the assistance of the Philadelphia Police Department, the Pennsylvania State Police and the Pennsylvania Office of the Attorney General. The case is being prosecuted by Assistant United States Attorneys Jonathan Ortiz and Justin Ashenfelter of the Eastern District of Pennsylvania and Trial Attorneys Alexander Gottfried and Kristen Taylor of the Department of Justice Criminal Division, Organized Crime and Gang Section.
Philadelphia Carjacker and Armed Robber Sentenced to over 11 Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Rasheen Mainor, 21, of Philadelphia, PA was sentenced to over 11 years and five months in prison, and three years of supervised release by United States District Judge Petrese B. Tucker, for committing a carjacking and an armed robbery.
In December 2019, the defendant carjacked a woman driving a Honda CRV in Northeast Philadelphia by pointing a firearm at the victim and then punching her in the face before taking her vehicle. Then, a month later in January 2020, Mainor and two accomplices used the carjacked CRV to flee from yet another crime scene: a tobacco store in West Philadelphia, the Dollar & Smoker’s Point, also known as the Chester Mini Market, where the defendant and his accomplices pointed a firearm at the cashier, forced him to run away, and then took merchandise and approximately $500 cash from the store.
“Carjacking a vehicle and then robbing a business at gunpoint threatens our collective safety,” said U.S. Attorney Williams. “And if you commit these crimes in the Eastern District of Pennsylvania, you are going to be met with a felony prosecution and long prison sentence, as is the case with this defendant who will now spend more than a decade behind bars for his crimes.”
“This carjacking and armed robbery were violent crimes targeting absolutely innocent victims,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “No one should have to fear a punch in the face — or worse — from a gun-toting carjacker, or a roving crew of criminals terrorizing them at work. These are offenses against society that undermine public safety and quality of life in this city. The FBI and Philadelphia Police Department are working every day to take violent individuals like Rasheen Mainor off the street, to keep them from harming anyone else.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Michael R. Miller.
North Carolina Man Convicted by Federal Jury for Gunpoint Robbery of Puppies from Lancaster County BreederRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Christopher Lamont Stimpson, Jr., 23, of Greensboro, North Carolina, was convicted of committing a gunpoint robbery of a Lancaster County puppy breeder and his family in order to steal five French Bulldog puppies in October 2020.
In November 2020, the defendant was charged by Indictment with robbery which interferes with interstate commerce, and interstate transportation of stolen goods in connection with the robbery. To lure the victims out with the puppies, dogs with a total value of more than $23,000, Stimpson posed as a customer seeking to purchase five French Bulldog puppies, only to pull out a gun, point it at the victims, and steal the animals. One of the victims recorded the registration of the defendant’s getaway vehicle, which was traced back to a rental company in Greensboro, North Carolina. According to court documents, a customer of the breeder who had also been interested in purchasing one of the puppies later discovered an Instagram posting which featured a video and a photograph of the puppies, as well as photographs of Stimpson. In December 2020, the defendant was arrested in North Carolina.
“Stimpson committed armed robbery in order to greedily and callously steal vulnerable, living creatures,” said U.S. Attorney Williams. “This conviction demonstrates our Office’s commitment to prosecuting dangerous, armed criminals, no matter where they may run and hide. We are thankful to our partners here in Pennsylvania and in North Carolina for their partnership in bringing Stimpson to justice.”
“Armed robbery is armed robbery, whether the objective is drugs, dollars, or dogs,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Christopher Stimpson traveled quite a ways to terrorize the breeder and his family and take those puppies by force. Let this be a warning to anyone else planning on coming into Pennsylvania to commit a violent crime: the FBI and our partners will track you down wherever you are and see that you’re brought to justice.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation, the Ephrata Police Department, and the Greensboro (NC) Police Department, and is being prosecuted by Assistant United States Attorney Mark S. Miller.
Former Catholic Priest Sentenced for Making False Statements in Connection with Church Sex Abuse InvestigationRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Robert Brennan, 83, of Perryville, MD, was sentenced by United States District Court Judge Anita B. Brody to five years of probation, the first two years of which will be served on home confinement with location monitoring, for lying to investigators about not knowing a former parishioner and victim of sexual abuse.
In November 2021, the defendant pleaded guilty to making materially false statements in a matter within the jurisdiction of the executive branch of the United States government. The charges stem from an interview conducted in April 2019, during which Brennan was questioned by the FBI and made a number of false statements.
Brennan had served in the Archdiocese of Philadelphia from 1993 to 2004 as a priest at Resurrection of Our Lord parish in the Rhawnhurst section of Northeast Philadelphia. In September 2013, the Philadelphia District Attorney’s Office filed criminal charges against him, alleging that he had sexually abused a minor, Sean McIlmail, during Brennan’s time at Resurrection. Soon thereafter, in October 2013, Sean McIlmail died of a drug overdose and the criminal charges against Brennan were dismissed.
In November 2013, the McIlmail family filed a civil lawsuit against the Archdiocese of Philadelphia and Brennan. The lawsuit was settled for an undisclosed amount in May 2018. During the April 2019 interview with the FBI, Brennan made several false statements, including that prior to the filing of the 2013 criminal case and civil lawsuit against him, he did not know Sean McIlmail, his father, mother or brother.
“Holding people accountable for their actions, within the confines of the criminal justice process, is a priority for the U.S. Attorney’s Office,” said U.S. Attorney Williams. “With this sentence handed down today, we hope it brings a sense of justice and closure to this case.”
“Lying to the FBI is more than a mistake and beyond a bad choice,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Doing so poses a direct threat to investigations, prosecutions — our entire system of justice. Such ramifications make it a crime for which there have to be some consequences, with violators held appropriately accountable.”
The case was investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania Attorney General’s Office, the Philadelphia District Attorney’s Office and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Federal Civil and Criminal Investigations Result in Six Convictions and Recovery of over $8.7 Million in Connection with Compounded Medications Formulated by DelCo PharmacyRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced the criminal and civil resolutions of multi-year investigations of various health care fraud schemes involving prescriptions for compounded medications formulated by Heritage Therapeutics, LLC, a Delaware County pharmacy. The investigations yielded six criminal convictions and recovered over $8.7 million in criminal forfeitures, criminal restitution, and civil settlement payments.
From 2013 into 2015, Heritage formulated expensive compounded medications such as pain creams, scar creams, and vitamins. These compounded medications were prescribed to, among others, beneficiaries of TRICARE, a federally funded health care program for military members, retirees, and their families. The investigations revealed that Heritage paid commissions to some of its sales representatives for referring Heritage’s compounded medications to medical providers who prescribed them to TRICARE beneficiaries. Some of these sales representatives, in turn, paid kickbacks to the medical providers to induce them to issue those prescriptions.
A lead sales representative for Heritage was Michael Bemis. Bemis paid kickbacks to a Philadelphia-area physician, Dr. Scott Kurzrok, in exchange for issuing prescriptions to TRICARE beneficiaries that Kurzrok allegedly never examined or treated. In addition, Bemis recruited other sales representatives and encouraged them to also pay kickbacks to medical providers to induce them to prescribe compounded medications to TRICARE beneficiaries through Heritage. Bemis also paid and encouraged other sales representatives to pay TRICARE beneficiaries to allow medically unnecessary prescriptions to be filled in their names. In addition, Bemis encouraged sales representatives to push TRICARE beneficiaries to accept refills of the medically unnecessary medications. Heritage submitted claims for those medications to TRICARE and paid commissions on those prescriptions to Bemis and other sales representatives. For his involvement in the scheme, Bemis pleaded guilty to conspiracy to commit health care fraud, was sentenced to over two and a half years in prison, and was ordered to pay criminal restitution of more than $3.3 million and to forfeit over $930,000. Bemis and Dr. Kurzrok each entered into settlement agreements to resolve civil claims under the False Claims Act.
Charles Hollister, a Heritage sales representative in North Carolina, was one of Bemis’s recruits. Hollister paid kickbacks to Tanya Dyer, a licensed nurse practitioner in Hickory, North Carolina, in exchange for Dyer prescribing Heritage compounded medications to TRICARE beneficiaries. These TRICARE beneficiaries included individuals whom Dyer allegedly never saw or examined. Hollister pleaded guilty to conspiracy to commit health care fraud, was sentenced to over a year in prison, and was ordered to pay over $1 million of criminal restitution jointly and severally with Bemis. Dyer entered into a settlement agreement to resolve civil claims under the False Claims Act.
Andrew Balick, a Heritage sales representative in Georgia, was another of Bemis’ recruits. Balick convinced a purported physician assistant to write medically unnecessary prescriptions for compounded medications that were filled by Heritage. Balick provided TRICARE beneficiary information to the physician assistant for use in writing the prescriptions and then shared part of his Heritage sales commissions with the beneficiaries, including a man named Andrew Dykstra. In addition to providing his own beneficiary information to Balick, Dykstra became a Heritage sales representative and allegedly recruited other purported sales representatives to provide their TRICARE beneficiary information for use in the scheme. Balick pleaded guilty to conspiracy to commit health care fraud, was sentenced to over a year in prison, and was ordered to pay criminal restitution of over $1.8 million jointly and severally with Bemis. Dykstra entered into a settlement agreement to resolve civil claims under the False Claims Act.
Separately, Benjamin Tewes, the brother of Heritage sales representative Kristine Sewell, , paid kickbacks to Thomas Hersch, a physician assistant in Georgia, to induce him to write prescriptions for Heritage compounded medications to TRICARE beneficiaries. Sewell allegedly received sales commissions from Heritage on these prescriptions and shared part of her commissions with Tewes. Tewes pleaded guilty to one count of paying kickbacks in connection with a federal health care program, was sentenced to 3 years of probation, and was ordered to forfeit over $276,000 and to pay a $15,000 fine. Hersch pleaded guilty to one count of receiving kickbacks in connection with a federal health care program. Sewell entered into a monetary settlement agreement to resolve civil claims under the False Claims Act.
In addition, Joseph Fidelie, who was both a Heritage sales representative and a medical assistant at an orthopedic practice in Oklahoma, paid kickbacks to a physician assistant in the same practice to induce the physician assistant to prescribe Heritage’s compounded medications to TRICARE beneficiaries. Fidelie received commissions from Heritage for the claims paid by TRICARE. Fidelie pleaded guilty to one count of paying kickbacks in connection with a federal health care program.
In addition to the resolutions noted above, Heritage, along with its president, David Raffaele; principals Kevin O’Brien and Stephen Seiner; former pharmacist-in-charge Gary Umland; and sales assistant Michael D’Antonio; entered into a settlement agreement to resolve civil claims against the entity and associated individuals under the False Claims Act. The civil claims resolved through this settlement relate to Heritage’s sales representatives’ alleged payments of kickbacks to medical providers, as described above, as well as to Heritage’s compensation of its sales representatives on a commission basis in the absence of bona fide employee relationships, all in violation of the Anti-Kickback Statute. In addition, this settlement resolved claims that, to avoid TRICARE’s recoupment of amounts previously paid to Heritage for compounded medications prescribed to TRICARE beneficiaries in the absence of any legitimate provider-patient relationship, as described above, Heritage itself made false statements in its responses to a TRICARE audit.
“With the conclusion of these investigations, we serve notice that medical providers and pharmaceutical manufacturers who prey on the men and women who bravely serve in our armed forces, and their families, in order to line their own pockets, will be relentlessly pursued with all of the resources of the United States Attorney’s Office,” said U.S. Attorney Williams. “Through the combined efforts of our criminal division, civil division, and our partner agencies, the fraudulent acts of both the company and the individuals who acted through it were held to account.”
“Investigating corrupt schemes that undermine the integrity of TRICARE, the healthcare system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with the Department of Justice to tirelessly pursue those individuals and corporations that target our service members and put TRICARE beneficiaries at risk.”
The investigations were conducted by agents from, in addition to DCIS, the Office of Personnel Management, Office of Inspector General; Department of Labor, Office of Inspector General; United States Postal Service, Office of Inspector General; and U.S. Army Criminal Investigation Division.
Assistant United States Attorney Mary Kay Costello and former Assistant United States Attorney John Crutchlow prosecuted the criminal cases. Assistant United States Attorneys Bryan C. Hughes and Rebecca S. Melley handled the civil investigation and settlements, assisted by Auditor George Niedzwicki.
Except for those facts admitted to in the guilty pleas, the claims resolved by the civil settlements are allegations only, and there has been no determination of liability.
Philadelphia Psychiatrist to Pay $3 Million to Resolve Allegations of False Workers’ Compensation ClaimsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Dr. Harry Doyle and his wife, Sonya Doyle, of Philadelphia, PA, have agreed to pay a total of $3 million to resolve alleged violations of the False Claims Act. The alleged violations include submitting false billing to the U.S. Department of Labor Office of Worker’s Compensation Programs (OWCP) for psychiatric services that were not provided, as well as upcoding and double-billing patient claims. As part of the settlement, the Doyles have also agreed to be voluntarily excluded from federal healthcare programs for a period of 25 years. This is the largest recovery against a single psychiatrist in the history of the OWCP.
Dr. Doyle was a psychiatrist to whom an attorney referred patients receiving federal workers’ compensation benefits authorized under the Federal Employees Compensation Act. Many of his patients received OWCP benefits because of a physical injury, and then were later approved for mental health services that were purportedly needed because of the initial physical injury. Dr. Doyle’s wife, Sonya Doyle, was his office assistant, and the sole employee of Dr. Doyle’s mental health practice.
A multi-agency investigation of Dr. Doyle’s practice revealed that from January 2013 through April 2021, the Doyles allegedly billed for services not rendered, some of which occurred when the Doyles were not physically present in the United States. The Doyles allegedly billed for cancelled and no-show appointments as if they had actually occurred, “upcoded” or billed for a higher level of service than what was actually provided including billing for more therapy time than spent with the patient, and also double-billed the patient and OWCP for initial consultations. Dr. Doyle allegedly falsified treatment records to reflect the false billing that was submitted.
“Our resolution of this matter and the significant recovery we have obtained from this physician show once again that no matter how complex the fraud scheme is, we will find it, stop it, and punish it,” said U.S. Attorney Williams. “The alleged falsified documentation Dr. Doyle created and submitted to OWCP compromised the agency’s ability to monitor claimant care and ensure that injured federal workers received the services they needed.”
“Dr. Harry Doyle and his wife Sonya Doyle entered into a settlement agreement to resolve alleged violations of the False Claims Act. The alleged violations involve the submission of potentially fraudulent billing to the U.S. Department of Labor Office of Workers’ Compensation Programs (OWCP) by Dr. Doyle’s practice. Today’s significant monetary settlement of $3 million and agreement to voluntary exclusion from federal healthcare programs for a period of 25 years will serve as a deterrent to those contemplating committing fraudulent billing schemes. The U.S. Department of Labor, Office of Inspector General will continue working with our law enforcement partners and OWCP to protect the integrity of DOL’s benefits programs,” stated Special Agent-In-Charge Syreeta Scott, Philadelphia Region, U. S. Department of Labor Office of Inspector General.”
“Abuse of OWCP will not be tolerated and is a drain on the United States Postal Service’s finances,” said Imari R. Niles, Executive Special Agent in Charge of the U.S. Postal Service Office of the Inspector General. “USPS OIG is dedicated to investigating and eradicating this type of conduct.”
“Fraudulent healthcare billing practices compromise the federal government’s ability to provide quality benefits to deserving individuals,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG is pleased to have worked together with its law enforcement partners to stop this couple from continuing their fraudulent practices.”
This case was investigated by the Department of Labor Office of Inspector General, the United States Postal Service Office of Inspector General, and Department of Veterans Affairs Office of Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant United States Attorney Viveca D. Parker and Auditor Dawn Wiggins.
The civil claims resolved by this settlement are allegations only and there has been no determination of liability.
Philadelphia Man Convicted in 2018 Murder-Kidnapping Plot Against North Philadelphia Business OwnerRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that John Perkins, 34, of Philadelphia, PA, was convicted after trial for his involvement in a scheme to kidnap an individual and hold them for ransom, which eventually led to that individual’s injury and death. The victim’s body was later recovered in Cecil County, Maryland.
In May 2019, Perkins was charged by Indictment with conspiracy to commit kidnapping, and kidnapping involving interstate commerce (transporting the kidnapped individual across state lines), stemming from the June 2018 kidnapping and murder of an individual who owned businesses in the city. When the victim showed up to the location of an arranged meeting in Philadelphia, a co-defendant shot the victim, injuring him. Perkins’ co-conspirators restrained the victim with duct tape, hand cuffs, and zip ties, and Perkins loaded the victim’s bound and bloody body into the kidnappers’ car. Perkins’ co-conspirators then drove the victim to a location in Chester County. Meanwhile, during the kidnapping, ransom calls demanding hundreds of thousands of dollars were made to the victim’s wife and to an associate of the victim. After meeting up with more co-conspirators, they drove the victim to a location in Cecil County, Maryland, where a co-conspirator ultimately shot the victim in the head, killing him.
Co-defendants who were also charged related to their involvement in the kidnapping conspiracy and who all previously pleaded guilty are: Ivan Rangel Prieto, 37, of Asheboro, North Carolina; Jose Castillo, 47, of Albuquerque, New Mexico; Jose Bernal, 33, of Newark, Delaware; Jose Delgado, 43, of Warminster, Pennsylvania; Salvador Sanchez Guerrero, 50, of Philadelphia, Pennsylvania; Robert Favors, 42, of Philadelphia, Pennsylvania; and Fermín Perez Mejia, 38, of Norristown, Pennsylvania.
“This defendant acted with callous disregard for another human being’s life, and now a jury has found him guilty of these horrific crimes,” said U.S. Attorney Williams. “Our office refuses to give in and let this type of lawless violence and intimidation become just the ‘way things are’ in Philadelphia – we are ‘All Hands On Deck’ to investigate and prosecute violent crimes in the city.”
“What a horrific way to spend the final hours of your life: abducted, restrained, bleeding, and completely powerless,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “John Perkins and his associates committed heinous acts of violence, and I'm thankful this jury has held him responsible for his role in this ruthless conspiracy. Getting dangerous criminals off the street is the top priority of the FBI Philadelphia Violent Crimes Task Force.”
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, with assistance from the Cecil County, Maryland Sherriff’s Office, the Southern Chester County Regional Police Department, and the Plymouth Township Police Department, and is being prosecuted by Assistant United States Attorneys Amanda R. Reinitz and Everett Witherell.
Serial Armed Bank Robber Sentenced to over 25 Years after Attempting to Murder Pennsylvania State Trooper During ArrestRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Christopher Larue, 44, of Lansdale, PA, was sentenced to 25 years and one day in prison, five years of supervised release, and was ordered to pay a $7,500 fine by United States District Judge Gene E.K. Pratter for committing an armed bank robbery in Bucks County and then nearly killing a Pennsylvania State Trooper in Montgomery County directly thereafter.
In October 2021, the defendant pleaded guilty to one count of brandishing a firearm during a crime of violence and one count of armed bank robbery. According to court documents, in the early morning hours of October 19, 2020, Larue entered QNB Bank in Perkasie, PA, wearing dark clothing and a black mask as employees were arriving for work. The defendant brandished a firearm and robbed the bank of over $11,000 in U.S. currency. He then fled in his vehicle. A GPS tracking devices hidden with the stolen money quickly led Pennsylvania State Police to the defendant, who had driven to his job site in Conshohocken, PA. When the State Police arrived and attempted to arrest him, Larue pointed a gun at the head of a trooper and pulled the trigger, but the gun mis-fired and troopers were able to handcuff Larue. In and around the defendant’s work locker, investigators found the stolen money, additional ammunition, and the clothing and mask Larue wore during the robbery.
Larue previously served over 12 years in federal prison after being convicted in 2009 of five additional bank robberies and was on supervised release at the time of this offense.
“This sentencing is especially poignant during a week when we have lost two Pennsylvania State Troopers who were bravely executing their duty in the face of extreme danger,” said U.S. Attorney Williams. “In this case, the defendant acted with complete disregard and callousness for the lives of the Pennsylvania State Troopers and the bank employees whom he threatened with a firearm. But for a mis-fired gun, the outcome could have been yet another tragic loss of life. The U.S. Attorney’s Office will not tolerate this kind of violent lawlessness.”
“Christopher Larue aimed a loaded gun at a state trooper’s head, asked him if he wanted to die that day, and repeatedly pulled the trigger. It was very nearly a tragedy, but thankfully the weapon didn’t fire,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “That was just after Larue had held three bank employees at gunpoint during a robbery — and that was after a previous string of bank robberies for which he’d served time. This is a dangerous serial offender who needs to be off the street. The FBI will continue working with the Pennsylvania State Police and all our law enforcement partners to keep violent criminals like Larue from committing further harm.”
The case was investigated by the Perkasie Borough Police Department, the Pennsylvania State Police, and the Federal Bureau of Investigation, with assistance from the Montgomery County District Attorney’s Office and the Bucks County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Philadelphia Felon Found Guilty by Jury of Illegally Possessing a FirearmRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Asa Jackson, 40, of Philadelphia, PA, was convicted after trial of unlawfully possessing a firearm after previously being convicted of a felony. The charges arose from an incident during which he threatened and intimidated two victims while possessing a firearm.
In May 2020, in the Harrowgate section of Philadelphia, Philadelphia Police officers responded to a 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 the defendant. When Jackson saw the police, he ducked between two parked vehicles and appeared to drop something to the ground that made a metallic sound. Police apprehended Jackson and recovered a loaded pistol between the two parked vehicles.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in Philadelphia where gun violence has reached record-breaking proportions,” said U.S. Attorney Williams. “As the evidence presented at trial showed, Asa Jackson illegally possessed a loaded firearm that fortunately was recovered by Philadelphia Police officers. Our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck’ to get criminals like this defendant off the streets for a long time.”
“This conviction is a result of the hard work and collaboration between our local, state and federal law enforcement partners,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Anytime dangerous felons commit gun crimes; we will use all of our available resources to make sure justice prevails. The community is a safer place with this guilty verdict.”
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.
Federal Inmate Sentenced to Three Years for Smuggling Contraband into Prison Through Hole in Cell WindowRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Anthony Robinson, a/k/a Slick, 34, of Philadelphia, PA, was sentenced to three years in prison and three years of supervised release by United States District Judge Gene E.K. Pratter for conspiring with others to smuggle contraband into the Federal Detention Center (FDC) in Philadelphia.
In October 2021, the defendant was convicted by a jury on charges of conspiracy and possession of contraband in prison, stemming from a 2020 incident caught on security recordings. In April 2020, staff at the FDC observed a man outside the prison, attaching items to a line. Security camera footage showed a rope being pulled up the side of the building facing Arch Street. Upon searching the cell from which the rope emanated, officers found two cellmates along with quantities of Suboxone, cocaine, tobacco, methamphetamine tablets, marijuana, a SIM card, and an inoperable cell phone. Both men were charged and convicted for possessing contraband in prison. Meanwhile, further investigation revealed that they did not act alone. Specifically, investigators discovered that another FDC inmate, defendant Robinson, had aided them in their smuggling operation from his own cell by arranging, via a contraband cell phone, for the drugs to be brought to the FDC.
“Maintaining the secure environment of federal correctional facilities is paramount to the safety of staff and inmates and the pursuit of justice in an effort to deter future criminal conduct,” said U.S. Attorney Williams. “In this case, instead of learning from previous mistakes, the defendant couldn’t help himself and committed another crime by smuggling contraband into the facility. The U.S. Attorney’s Office will not tolerate this kind of lawless behavior.”
“Talk about a brazen smuggling scheme, using a line lowered right down to Arch Street,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Introducing contraband into prisons can put corrections staff, inmates, and even the community at risk. Robinson was a key partner in this conspiracy and is being held appropriately accountable. It’s imperative to keep our correctional facilities safe and secure.”
The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons, and is being prosecuted by Assistant United States Attorney Sarah Damiani.
Ex-Roommate and Co-Conspirator of Former Philadelphia Eagle Sentenced to 2 Months for Insider Trading SchemeRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Mark Wayne Ramsey, 32, of San Francisco, CA, was sentenced to 60 days in prison, three years of supervised release, and was ordered to pay a $5,000 fine by United States District Judge Gene E.K. Pratter for his participation in an insider trading scheme.
In September 2021, a jury found the defendant guilty of four counts of securities fraud and two counts of conspiracy to commit securities fraud. Evidence presented at trial showed that Ramsey traded on inside information provided by Damilare Sonoiki, at the time a junior analyst at Goldman Sachs, regarding upcoming mergers involving four Goldman Sachs clients: Compuware Corporation; Move, Inc;, Sapient Corporation; and Oplink Communications. LLC. Sonoiki provided this information to Ramsey and his roommate Mychal Kendricks, then a linebacker for the Philadelphia Eagles. Ramsey and Kendricks purchased call options in the target companies between July and November 2014. During the football season, when Kendricks was busiest, Ramsey became the primary contact with Sonoiki, and Ramsey made the trades in Kendricks’s account based on the insider information Sonoiki provided. When the proposed merger was announced in each case, the value of the options purchased by Ramsey and Kendricks increased significantly. During the period of the conspiracy, the trading conducted by Ramsey and Kendricks from Kendricks’s account resulted in profits of nearly $1.2 million on the four securities.
Defendants Sonoiki and Kendricks both pleaded guilty in September 2018 to insider trading and conspiracy charges based on this same conspiracy. In July 2021, Kendricks was sentenced to one day in prison and three years of supervised release, and was ordered to pay a $100,000 fine. In the same month, Sonoki was sentenced to one month in prison and three years of supervised release, and was ordered to pay a $5,000 fine.
“This case was about three individuals who thought they could cheat the system to make a quick buck,” said U.S. Attorney Williams. “When individuals engage in insider trading, it undermines the integrity of our financial markets and harms ordinary investors who abide by the rules. Our Office will continue to investigate and hold accountable individuals who engage in this type of illegal activity.”
“Mark Ramsey knowingly traded on material, non-public information, to score a handsome profit,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “To maintain their integrity, our financial markets must be a level playing field for all investors, not just those with friends in the know. That’s exactly why the FBI works hard to hold accountable anyone engaged in insider trading.”
The case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission, and is being prosecuted by Assistant United States Attorneys David Ignall and Eileen Zelek.
PICC Inmate Sentenced to Seven Years for Conspiring with Corrections Officer to Smuggle Contraband into PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced Kennard Murray, 37, of Philadelphia, PA, a currently incarcerated inmate at the Philadelphia Industrial Correctional Center (PICC), was sentenced to seven years in prison and three years of supervised release by United States District Court Judge Cynthia M. Rufe for his role in a conspiracy to smuggle contraband into the facility.
In May 2021, the defendant and two co-defendants, Haneef Lawton, 34, a Philadelphia Corrections Officer, and Charlene Stallings, 43, the defendant’s girlfriend, were charged by Indictment with conspiracy; federal program bribery; and distribution, conspiracy to distribute, and possession with intent to distribute narcotics.
The defendant and Lawton agreed to smuggle contraband on multiple occasions into PICC in exchange for a series of bribes. As part of the arrangement, Lawton delivered the narcotics to Murray, and Murray arranged to sell the contraband to other inmates in exchange for cash and electronic payments via peer-to-peer methods such as CashApp. In return, Murray and Stallings paid Lawton over $11,400, also using CashApp. Through this scheme, the defendants were able to traffic as much as $69,000 worth of contraband into PICC.
“One goal of incarceration is to deter future criminal conduct,” said U.S. Attorney Williams. “But instead of learning from previous mistakes, this defendant used his time behind bars to commit even more illegal acts by smuggling dangerous contraband inside. The U.S. Attorney’s Office will not tolerate this kind of lawless behavior.”
“Murray conspired from behind bars on this money-making scheme to have contraband smuggled into his facility,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “It’s disheartening when incarcerated prisoners are determined to keep breaking the law like this. Introducing illegal contraband into prisons poses a danger to correctional officers and inmates alike – that’s why the FBI is so determined to put a stop to it and hold those involved accountable.”
The case was investigated by the Federal Bureau of Investigation and Internal Affairs from the Philadelphia Department of Prisons, and is being prosecuted by Assistant United States Attorneys Eric L. Gibson and Frank Costello.
Lancaster Company Agrees to Pay $820,000 for Improper Billing of Defense Intelligence AgencyRead the Press Release
PHILADELPHIA, PA – United States Attorney Jennifer Arbittier Williams announced that Reveal Global Consulting, LLC (“Reveal”) has agreed to pay $820,000 to the federal government to resolve allegations that it violated the False Claims Act by improperly billing time and expenses in its performance of a contract with the Defense Intelligence Agency (“DIA”).
In 2017, Reveal entered into a Spearheading CIO Applied Research and Leading Edge Technologies (“SCARLET”) contract with DIA. The contract was a time-and-materials contract under which Reveal could bill the United States only for time it actually expended and materials it required to fulfill its contractual obligations. Instead, Reveal allegedly billed the DIA for one twelfth of the total contract even for months in which less than one twelfth of the total required effort was devoted to the contract; devoted fewer than the promised employees for multiple months; submitted inflated and misstated bills for work by subcontractors; and invoiced the DIA for work supposedly performed by Reveal employees who had already left the company. Throughout the contract, Reveal allegedly failed to establish and maintain an adequate, effective timekeeping system.
“There is no excuse for invoicing the United States for work that was not done,” said U.S. Attorney Williams. “Companies that work for the United States have a moral and legal obligation to ensure that the United States receives the goods and services for which it is paying, and the United States Attorney’s Office is ready to investigate and punish contractors who flout this fundamental rule.”
“This case is a result of the stalwart, dedicated and collaborative work of investigators, DIA Office of the Inspector General (OIG), DOD OIG, Defense Criminal Investigations Services, the DCAA, and DOJ. The Office of the Inspector General, DIA, will continue to root out fraud, waste, and abuse in DIA processes while improving government funds stewardship from our civilian and contractor workforce,” said William Borden, Assistant Inspector General for Investigations, DIA.
“Investigating allegations of cost mischarging on Department of Defense (DoD) contracts is a top priority for the DoD Office of Inspector General's Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “The settlement agreement announced today is the result of a joint investigative effort with the Defense Intelligence Agency Office of the Inspector General and demonstrates the DCIS’ ongoing commitment to protect the integrity of DoD procurement.”
This investigation was conducted as part of the United States Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force with investigators from the Defense Intelligence Agency Office of Inspector General and DCIS, with assistance the Department of Commerce Office of Inspector General and Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Paul W. Kaufman handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Delaware County Ticket Broker Sentenced to Six Months for Conspiring to Sell Stolen U.S.G.A. Open Tickets Worth over $1.2 MillionRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that James Bell, 70, of Glen Mills, PA, who owns and operates Sherry’s Theater Ticket Agency, Inc. (“Sherry’s Tickets”), was sentenced today by United States District Judge Michael M. Baylson to six months in prison and three years of supervised release, ordered to pay $1,282,247 in restitution to the USGA, and ordered to forfeit over $598,000 in fraudulent profits for participating in a conspiracy to steal and sell more than $1.2 million worth of U.S. Open Golf tournament tickets.
In November 2021, the defendant pleaded guilty to multiple counts of fraud in connection with this ticket selling scheme. As part of his guilty plea, Bell admitted that he conspired with former United States Golf Association employee Robert Fryer (who was charged and convicted separately), to purchase from Fryer tickets to the 2017 through 2019 U.S. Open Golf Tournaments with a face value of over $1.2 million, which Fryer had stolen from the USGA. Bell admitted that he paid Fryer over $324,000 for the stolen tickets. Bell further admitted that he sold the tickets through Sherry’s Tickets for nearly $923,000, thus yielding a profit to Sherry’s of over $598,000.
“Bell stole revenue from the USGA, a legitimate business that pays taxes, employs many, supports a non-profit organization, and brings excitement and income to our district with U.S. Open events at golf courses around the region,” said U.S. Attorney Williams. “Criminals that conduct ticket schemes like this prey on the excitement surrounding big events; fans should remember that any item with a low price that seems ‘too good to be true’ should be cause for caution and concern.”
“This defendant’s actions are akin to a thief selling someone else’s property to make a quick buck,” said Special Agent in Charge Jacqueline Maguire. “The fraud at the center of this conspiracy took money from a legitimate business and earned this defendant a ticket to prison and a felony conviction to his name.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Former Temple Business School Dean Sentenced to over One Year in Prison for Rankings Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Moshe Porat, 75, of Bala Cynwyd, PA, the former Dean of Temple University’s Richard J. Fox School of Business and Management (“Fox”) from 1996 until 2018, was sentenced to one year and two months in prison, three years of supervised release, and was ordered to pay a $250,000 fine by United States District Court Judge Gerald J. Pappert after being convicted at of fraud in connection with a scheme to artificially inflate the school’s program rankings against other schools nationwide.
In November 2021, the defendant was convicted after trial on charges that he conspired and schemed to deceive the school’s applicants, students, and donors into believing that the school’s business degree programs legitimately earned top rankings, so that they would pay tuition and make donations to Temple. In April of the same year, Porat was charged by Indictment with one count of conspiracy to commit wire fraud and one count of wire fraud, stemming from a multi-year conspiracy in which the defendant participated with a Fox professor named Isaac Gottlieb and a Fox employee named Marjorie O’Neill to submit false information about the school’s online MBA (“OMBA”) and part-time MBA (“PMBA”) programs to U.S. News & World Report in order to inflate Fox’s rankings in the annual U.S. News surveys of top OMBA and PMBA programs.
Among other things, the conspirators agreed to provide false information to U.S. News about the number of Fox’s OMBA and PMBA students who had taken the Graduate Management Admission Test (“GMAT”); the average work experience of Fox’s PMBA students; and the percentage of Fox students who were enrolled part-time, all because it was believed that better numbers for these metrics would result in better rankings for the programs. And indeed, the scheme was successful. Relying on the false information it had received from Fox, U.S. News ranked Fox’s OMBA program Number One in the country four years in a row (2015 – 2018). U.S. News also moved Fox’s PMBA program up its rankings from No. 53 in 2014 to No. 20 in 2015, to No. 16 in 2016, and to No. 7 in 2017. Finally, the defendant boasted about these rankings in marketing materials directed at potential Fox students and donors. Enrollment in Fox’s OMBA and PMBA programs grew dramatically in a few short years, which led to millions of dollars a year in increased tuition revenues.
“The defendant conspired to provide false information about Fox programs and students in order to boost its appearance and fraudulently manipulate those who sought to support a top-tier school,” said U.S. Attorney Williams.” “Today an unhappy chapter for higher education in Philadelphia has come to a close and Moshe Porat has been sentenced to a term of imprisonment appropriate for his crime.”
“This defendant was, at one time, a well-respected member of academia,” said Special Agent in Charge Jacqueline Maguire. "But when he conspired to game the system and cheat potential students, he blurred the lines and went from well-educated professional to run-of-the-mill fraudster. The FBI does not care about your status in life when you break the law. We will bring to justice anyone who defrauds the government and, by extension, the public.”
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Department of Education’s Office of the Inspector General; and is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff, Nancy Potts and M.T. Soltis.
Previously Convicted Felon from Philadelphia Sentenced to over 14 Years After Second Federal Drug Trafficking ConvictionRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Jose Manuel Figueroa, 52, of Philadelphia, PA, was sentenced to 14 years and seven months in prison, and six years of supervised release by United States District Court Judge Petrese B. Tucker for numerous narcotics and firearms offenses.
In September 2021, the defendant pleaded guilty to eight counts of distribution of heroin and one count each of possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. The charges stemmed from an investigation in which the defendant sold heroin packaged for street-level distribution on numerous occasions between May 2018 and July 2018. In September 2018, investigators executed a search warrant at the defendant’s residence and seized more heroin and two firearms stashed near the drugs. The defendant committed these offenses after having been previously convicted of voluntary manslaughter in the Philadelphia Court of Common Pleas and federal drug trafficking charges in the United States District Court for the Middle District of Florida.
“Drugs and firearms are a very dangerous combination, especially in Philadelphia where the violent crime rate has reached record levels,” said U.S. Attorney Williams. “Today’s sentence should serve as an example to others who have previously been convicted of felony offenses and are considering carrying firearms or committing other illegal acts: our ‘All Hands on Deck’ initiative uses every law enforcement tool at our disposal to find and stop you. We will continue our coordination with the Philadelphia Police Department and federal agencies to make the community safer by removing these criminals from the streets.”
“Figueroa’s continued criminal behavior is emblematic of the potential for violence associated with the illegal drug trade,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “His illegal possession of multiple guns, packaged heroin for distribution, and prior felony convictions on federal drug charges and voluntary manslaughter are indicative of the threat he posed to our community.”
The case was investigated by the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Pennsylvania State Police; and Phoenixville Police Department, and is being prosecuted by Assistant United States Attorneys Francis A. Weber and Derek E. Hines.
Mallinckrodt Agrees to Pay $260M to Settle False Claims Act Lawsuit Alleging Payment of Illegal Kickbacks and Medicare Drug Rebate UnderpaymentsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that pharmaceutical company Mallinckrodt ARD LLC (previously Questcor Pharmaceuticals, Inc., “Questcor,” and collectively “Mallinckrodt”), has agreed to pay $260 million as part of a global settlement to resolve separate allegations that Mallinckrodt violated the False Claims Act by knowingly: 1) using a foundation as a conduit to pay illegal copay subsidies in violation of the Anti-Kickback Statute; and 2) underpaying Medicaid rebates due to the large price increases of its drug H.P. Acthar Gel (“Acthar”). The government filed separate complaints detailing these allegations in 2019 and 2020, respectively. The settlement, which is based on Mallinckrodt’s financial condition, required final approval of the U.S. Bankruptcy Court for the District of Delaware, which approved the settlement on March 2, 2022.
Kickback Claims
The U.S. Attorney’s Office for the Eastern District of Pennsylvania filed a complaint alleging kickbacks involving Medicare Part D copays in August 2019. When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value—to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
In its complaint, the government alleges that Mallinckrodt used a foundation as a conduit to pay illegal kickbacks in the form of copay subsidies for Acthar so it could market the drug as “free” to doctors and patients while increasing its price. Mallinckrodt allegedly paid these illegal subsidies through three funds that Mallinckrodt established through a foundation in order to induce Medicare-reimbursed purchases of Acthar at its ever-increasing price. Mallinckrodt used the subsidies to counteract doctor and patient concerns about the drug’s high cost and to market the drug as “free.”
“When pharmaceutical companies manipulate Medicare Part D by covering patient copays, the whole structure of the Part D program is undermined,” said United States Attorney Jennifer Arbittier Williams. “Our Office is committed to maintain the financial integrity of taxpayer-funded programs like Medicare, and therefore we will continue to pursue fraud actions like this so that Medicare Part D and other federal healthcare programs remain viable for those who rely on the benefits.”
“The Medicare Part D Program provides vital prescription drug services to Medicare 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. “HHS-OIG will continue to work with the U.S. Attorney’s Office to ensure the integrity of the Medicare Trust Fund.”
Medicaid Claims
The District of Massachusetts filed a complaint alleging fraud against the Medicaid Rebate Program in early 2020. Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The government alleges that Mallinckrodt knowingly underpaid rebates due for Acthar from 2013 until 2020. According to the Complaint, Mallinckrodt and its predecessor Questcor began paying rebates for Acthar in 2013 as if Acthar was a “new drug” first marketed in 2013, rather than a drug that had been approved since 1952. Allegedly, this practice meant the companies ignored all pre-2013 price increases when calculating and paying Medicaid rebates for Acthar from 2013 until 2020. In particular, the government alleged that Acthar’s price had already risen to over $28,000 per vial by 2013, and therefore ignoring all pre-2013 price increases for Medicaid rebate purposes significantly lowered Medicaid rebate payments for Acthar. Under the settlement agreement, Mallinckrodt admits and agrees that there is only one Acthar, that FDA approved Acthar in 1952, and that Acthar was first produced, distributed, and marketed prior to 1990.
The global settlement provides for Mallinckrodt’s payment of approximately $234.7 million to resolve the Medicaid Claims and approximately $26.3 million to resolve the Kickback claims. In October 2020, Mallinckrodt filed for bankruptcy protections and this settlement with the government has been approved for payment by the United States Bankruptcy Court for the District of Delaware.
The government’s allegations were originally alleged in cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did in these case, which are captioned: United States of America et al. ex rel. Landolt v. Mallinckrodt Pharmaceuticals Inc., No. 18-11931-PBS (D. Mass.); United States of America ex rel. Strunck et al. v. Mallinckrodt ARD, Inc., No. 12-CV-0175 (E.D. Pa.), and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc., No. 13-CV-1776 (E.D. Pa.). The whistleblowers in the E.D. Pa. qui tam will receive approximately $4.9 million from the recovery. “We sincerely thank the relators in this case. Together with their lawyers, these citizens provided invaluable assistance to the government throughout this case. Without the willingness of relators to shed light on allegations of fraud, preserving government program funds would be far more challenging. Their efforts played a vital role in the resolution of these cases,” said U.S. Attorney Williams.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The settlement agreement in the Eastern District of Pennsylvania is being handled by Assistant U.S. Attorneys Colin Cherico, Paul Koob and Matthew Howatt and auditor George Niedzwicki with assistance from the U.S. Department of Health and Human Services Office of Inspector General. In 2019, under a separate agreement stemming from the same qui tam filing in the Eastern District of Pennsylvania, Mallinckrodt agreed to pay $15.4 million to resolve claims that Questcor paid illegal kickbacks to doctors, in the form of lavish dinners and entertainment, to induce prescriptions of Acthar from 2009 through 2013.
The claims asserted by the United States are allegations only and there has been no determination of liability.
Philadelphia Man Charged After High-Speed Car and Foot Chase on I-76Read the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Naquor Berry, 28, of Philadelphia, PA, was arrested and charged by Indictment with possession of ammunition by a felon, possession of a controlled substance with the intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, all stemming from a dangerous high-speed incident which unfolded on the Schuylkill Expressway.
The Indictment alleges that on September 12, 2021, Philadelphia Police Department officers observed the defendant commit a traffic violation and attempted to pull him over. Berry fled in his vehicle, travelling on I-76 West toward the Roosevelt Boulevard exit. As the officers pursued him with lights on, the defendant began speeding and swerving in and out around other vehicles. Berry’s vehicle struck two vehicles and ultimately crashed into the median on I-76, rendering his vehicle immobile. The defendant then got out of the vehicle and fled from police on foot, jumping off the overpass onto Route 1 Northbound, an approximately 40-foot drop, injuring his leg. When officers searched the vehicle that Berry was driving, they recovered an AR-15 style rifle, commonly referred to as a ghost gun because there is no serial number, loaded with 10 rounds of .223 caliber ammunition, marijuana packaged for resale, and two sticks of dynamite.
“The defendant’s alleged actions, both the charged conduct and his potentially deadly escapades on the highway, presented a serious threat to the safety of our community,” said U.S. Attorney Williams. “This indictment should serve as an example to others who have previously been convicted of felony offenses and are considering carrying firearms, even untraceable firearms, that we will use every law enforcement tool at our disposal to find and stop you. If you choose to illegally carry a firearm, you are going to face serious federal charges.”
“ATF is committed to protecting the citizens of our community from dangerous people,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The community is extremely lucky nobody was seriously injured as a result of the defendant’s alleged actions. We will continue to work with all our local, state, and federal partners to keep the people of the Commonwealth safe.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendant faces a maximum possible sentence of life in prison, a five-year period of supervised release, a $750,000 fine, and a $300 special assessment.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Special Assistant United States Attorney Katherine A. McDermott.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Reading Drug Boss Sentenced to 32 Years for Supplying Large Areas of Berks, Lehigh, Montgomery and Northampton CountiesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that David Cooper, 47, of Reading, PA, was sentenced to 32 years in prison, eight years of supervised release, and was ordered to pay $2,000 fine by United States District Court Judge Joseph F. Leeson, Jr. for organizing and directing a prolific drug gang from his home located outside of Reading in Muhlenberg Township.
In September 2021, the defendant pleaded guilty just before trial to charges including conspiracy to distribute fentanyl, cocaine, and cocaine base (“crack”); possession with intent to distribute narcotics; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon. The charges stem from Cooper’s role in leading a drug trafficking organization which supplied large quantities of fentanyl, cocaine, and cocaine base to other drug dealers and drug users in Pottstown, Allentown, and the surrounding communities.
During the investigation into Cooper’s organization, detectives received permission to install court-ordered wiretaps on phones used by the defendant. Using extensive surveillance and the intercepted telephone calls, Montgomery County Detectives and FBI agents arrested the defendant as he attempted to resupply his organization with 200 grams of fentanyl, enough for more than six thousand individual doses. Investigators also seized narcotics, drug packaging materials, and a firearm. During the same operation, Cooper’s drug customer Comese Robinson, of Pottstown, PA, was also arrested and later convicted of similar charges in Montgomery County Court. Robinson was sentenced in December 2021 to 7 ½ to 15 years in state prison. Additionally, Cooper’s supplier, Miguel Figueroa, Jr., also of Reading, PA, was convicted of similar charges in Montgomery County Court and was sentenced to 18 to 40 years in state prison, and Cooper’s federal co-defendant, Edwin Andino, 39, of Allentown, PA, was also convicted of similar charges and sentenced to 18 years in federal prison.
“This case is an excellent example of all levels of law enforcement collaborating to dismantle a dangerous drug trafficking operation putting deadly narcotics on streets all across the Eastern District of Pennsylvania,” said U.S. Attorney Williams. “Cooper personally threatened the safety of his neighbors in Reading, and all communities in our District, through his dangerous and illegal actions, for which he will now spend over three decades behind bars.”
“Illegal drugs continue to kill thousands of people every year,” said Special Agent in Charge Jacqueline Maguire. “The FBI shares concern over this serious problem with our federal and local law enforcement partners, and we vow to the communities we serve that we will continue to track down the criminals who are reaping monetary rewards by pushing potentially deadly drugs on the streets of our neighborhoods.
“We are pleased to see David Cooper sentenced for his role in flooding Montgomery County and surrounding areas with large quantities of deadly drugs, including fentanyl,” said Montgomery County District Attorney Kevin R. Steele. “The investigation began with concerned citizen reports and ended after a lengthy investigation in the arrest of Cooper and more than two dozen others. Thank you to all of our local, regional, state and national partners for their efforts with this case and their ongoing commitment to ridding our communities of these deadly poisons.”
The case was investigated by the Montgomery County Detective Bureau’s Violent Crime Unit; the Federal Bureau of Investigation and the FBI Bucks and Montgomery County Safe Streets Task Force; the Office of the Pennsylvania Attorney General’s Bureau of Narcotics Investigation; Pottstown Borough Police Department; Pennsylvania State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Berks County District Attorney’s Narcotics Enforcement Team; Lehigh County Detective Bureau; Reading City Police Department; Allentown Police Department; Muhlenberg Township Police Department; and the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (HIDTA) program; and is being prosecuted by Assistant United States Attorney Christopher E. Parisi.
Philadelphia Drug Dealer Sentenced to over Eight Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Anthony Cintron, 20, of Philadelphia, PA, was sentenced to eight years and one month in prison and five years of supervised release by United States District Judge Eduardo C. Robreno for numerous gun and drug offenses, including illegally possessing a firearm that had been modified to be fully automatic.
In November 2021, the defendant pleaded guilty to charges including possession with intent to distribute crack cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a machinegun. The charges stemmed from an investigation conducted earlier in 2021 after law enforcement observed the defendant possessing firearms in social media posts. Investigators executed a search warrant at the defendant’s residence and seized distribution-level quantities of crack cocaine, two loaded firearms near the drugs, and a Glock pistol equipped with a machinegun conversion device—i.e., a device that attached to the pistol and converted it into a fully automatic weapon. That seized, modified pistol was highlighted as an illegal weapon recently taken off the streets during the City of Philadelphia’s first biweekly gun violence briefing held nearly one year ago on March 17, 2021.
“At the time this weapon was found in the defendant’s possession and seized by law enforcement officers, City leaders asked for assistance from all partners to tackle the violence crisis in Philadelphia,” said U.S. Attorney Williams. “Our Office and our federal partners heeded that call and responded that we would be All Hands On Deck in doing our part. The sentence handed down today putting Cintron behind bars for more than eight years demonstrates our commitment to this pledge.”
“Cintron’s brazen display of possessing firearms on social media shows how prevalent the gun threat is and has been in our city,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “His criminal acts, to include possession of a full-automatic machinegun, show the level of violence that is associated with the illegal drug-trade. Working to stem the gun violence that has plagued Philadelphia is one of our top enforcement priorities working with our partners in the Philadelphia Police Department.”
The case was investigated by the Drug Enforcement Administration and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Francis A. Weber.
Bucks County Man Sentenced to Nearly Four Years for Trafficking Firearms to St. LuciaRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Thomas Harris Jr., 29, of Croydon, PA, was sentenced to three years and 10 months in prison, and three years of supervised release for multiple firearms trafficking offenses stemming from his scheme to sell almost 40 guns to a buyer on the island of St. Lucia.
In September 2020, the defendant was charged by Indictment with making false statements to a federal firearm licensee, dealing in firearms without a license, delivery of firearms to a common carrier without written notice, and smuggling goods from the United States. Harris purchased approximately 38 firearms in 12 transactions at two Bucks County gun shops between April 2019 and February 2020, and provided a false address as his place of residence on the required federal forms that he completed during each transaction. The defendant then illegally trafficked the guns to St. Lucia, a sovereign island nation in the West Indies, despite his not having a license to deal in firearms nor a license to export.
One of Harris’s packages to St. Lucia was intercepted by federal agents at the warehouse of a local shipping company. Inside, concealed in household items such as packages of diapers, cat litter and laundry detergent, the agents found seven Glock semiautomatic pistols, one Ruger semiautomatic pistol, two AK-47 pattern pistols, two AK-47 pattern rifles, two AR-15 lower receivers, two AR-15 upper receivers, ten high-capacity Glock ammunition magazines, seven additional assorted ammunition magazines, and 815 rounds of ammunition.
“By shipping high-powered firearms to a foreign nation, the defendant displayed a brazen disrespect for our laws regulating and monitoring the sale of weapons,” said U.S. Attorney Williams. “Trafficking in firearms overseas is a serious federal offense, and one for which our Office will hold offenders like Harris accountable.”
“Firearms trafficking is at the forefront of ATF’s mission,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Harris’ sentencing should send the message to criminals that a blatant disregard of federal firearms laws will be investigated jointly by ATF and our local, state, and federal partners.”
“The FBI continues to work with our law enforcement partners in pursuit of criminals whose actions violate our laws and put the citizenry of our country – or any other – in harm’s way,” said Special Agent in Charge Jacqueline Maguire. “We have a global reach. It doesn’t matter if you are breaking laws and illegally trafficking guns within your state, within this country, or around the world. We will bring you to justice.”
“Illegally exporting firearms from the United States is a serious violation of our nation’s export control laws and often has dire consequences abroad,” said Jonathan Carson, Special Agent in Charge of the U.S. Department of Commerce’s Office of Export Enforcement, New York Field Office. “This case demonstrates the outstanding collaboration between the Office of Export Enforcement and our law enforcement partners to aggressively enforce export violations in the interest of national security in the U.S. and abroad.”
The case was investigated by the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joseph A. LaBar and U.S. Department of Justice National Security Division Trial Attorney Michael E. Eaton.
Two Philadelphia Men Convicted of Running Credit Card Fraud Ring Using 200,000+ Stolen AccountsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Malan Doumbia, 38, and Souleymane Diarra, 36, both of Philadelphia, PA, were convicted after trial of nine counts including conspiracy to commit wire fraud, access device fraud, aggravated identity theft, and conspiracy to commit money laundering, in connection with a scheme to purchase stolen credit card numbers from the dark web, use the accounts to purchase consumer products, and then re-sell the products for cash.
As part of the scheme, the defendants worked with several associates to purchase large quantities of stolen credit card numbers off black market websites located in Russia, Ukraine, and elsewhere overseas. They then encoded the stolen card numbers onto blank cards here in Philadelphia, and employed a network of runners who used the stolen credit card numbers to buy large quantities of gift cards and other items which could be quickly resold for cash, like Apple products, cigarettes, and diapers. When the United States Secret Service searched the defendants’ homes, agents found numerous computers, tablets, cell phones, re-encoding machines, card readers, and more than 200,000 stolen credit card numbers.
“Identity theft and financial fraud schemes like this one have a devastating and long-lasting impact on the victims, who have no way to prevent or stop the violations” said U.S. Attorney Williams. “ Our Office will continue to do everything we can to ensure that such fraud scams are stopped and punished, whether the fraudsters are located here or abroad.”
“So long as criminals insist on stealing identities and livelihoods, so will the Secret Service continue to identify and stop their despicable operations,” said U.S. Secret Service Philadelphia Special Agent in Charge James Henry. “Our highly trained investigators are uniquely trained and steadfastly dedicated to our mission to ensure a secure national financial environment. The Secret Service, together with all of our critical law enforcement partners at all levels, can and will ensure these criminals are brought forward for justice, no matter the dark corner of the internet in which these offenders think they can hide.”
“The defendants in this case stole money and personally identifiable information from unsuspecting victims, then went to extraordinary lengths to hide their illicit activities from law enforcement scrutiny,” said William S. Walker, the special agent in charge of Homeland Security Investigations, Philadelphia. “As a result of this investigation, they will now be held accountable for their reprehensible crimes. HSI is pleased to have worked with our partners in federal and local law enforcement to bring the offenders in this case to justice.”
The case was investigated by the United States Secret Service, with assistance from the Department of Homeland Security, Homeland Security Investigations, the U.S. Customs and Border Protection, the Swatara Township Police Department, the Lower Salford Township Police Department, the Haverford Township Police Department, the Montgomery Township Police Department, the Deptford Police Department, the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Robert J. Livermore.
DOJ Adds Employee Defendants in Illegal Opioid Distribution and Health Care Fraud Lawsuit Against Northeast Philadelphia PharmacyRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that the United States filed an amended civil complaint against pharmacist Todd Goodman and pharmacy employees Eric Pestrack and Lee Kamp for their alleged involvement in years-long practices of illegally dispensing opioids and other controlled substances, and systematic health care fraud, at Philadelphia-based pharmacy Spivack, Inc., which previously operated under the name Verree Pharmacy. These individuals were added as defendants in the previously filed lawsuit against Verree and its former owner, pharmacist Mitchell Spivack, for the same alleged schemes. The amended complaint continues to seek civil penalties and civil damages, which could total in the millions of dollars, as well as injunctive relief.
The lawsuit, in which Goodman, Pestrack, and Kamp were added, was the culmination of a multi-year federal-state investigation. The amended complaint alleges that Verree Pharmacy, Spivack, Goodman, Pestrack, and Kamp had a responsibility to dispense opioids and other controlled substances only when appropriate. Instead, the United States alleges that Verree and these individuals 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 struggling with addiction, excessive cash payments for the drugs, blatantly forged prescriptions, and other signs that the pills were being diverted for illegal purposes.
The amended complaint alleges 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 pills critical to its profits. Behind that façade, the amended complaint alleges that Spivack drew millions of dollars from the pharmacy while the public suffered the consequences, including one patient who overdosed and died next to Verree Pharmacy bottles dispensed by Spivack.
The United States’ amended complaint also alleges that Verree, Spivack, Goodman, Pestrack, and Kamp were engaging 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, Goodman, Pestrack, and Kamp allegedly used BBDF as a means to cover their losses on other drugs and further the pharmacy’s 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 amended complaint, this sophisticated fraud—which one of the employees admitted to investigators—resulted in significant losses to Medicare and other federal programs.
The lawsuit seeks to impose civil penalties and damages on Verree, Spivack, Goodman, Pestrack, and Kamp under the Controlled Substances and False Claims Acts. If Verree, Spivack, Goodman, Pestrack, and Kamp are found liable, they could face civil penalties up to $68,426 for each unlawful prescription dispensed, civil penalties up to $23,607 for each false claim they submitted to federal health care programs, and treble damages for the alleged health care fraud against federal programs. The court may also award injunctive relief to prevent the defendants from committing additional controlled substance violations.
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 Drug Enforcement Administration, 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 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 Attorney Anthony D. Scicchitano and auditors Dawn Wiggins and George Niedzwicki.
The amended complaint contains allegations only that the United States must prove if the case proceeds to trial.
Two Shotgun-Wielding Carjackers Who Attacked Rideshare Driver and Passenger Near Philadelphia Zoo Federally ChargedRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Alex Fernandez-Pena, 32, and Juan Jose Rodriguez, 20, both of Philadelphia, PA, were arrested and charged by Indictment on charges of carjacking and brandishing a firearm during a crime of violence stemming from an incident earlier this year in the Parkside section of Philadelphia. Both defendants were taken into federal custody and will make their initial appearances on these charges tomorrow, February 24, 2022.
On January 3, 2022, the defendants used their Honda Accord to bump the rear bumper of a Lyft vehicle, an Infiniti G37, that was transporting a passenger on the 1100 block of North 40th Street. After the Lyft driver exited his vehicle, Fernandez-Pena allegedly pointed a 12-gauge shotgun at the driver-victim and then drove off with the Lyft vehicle after its passenger escaped through a rear door. The driver-victim, who had a license to carry a firearm, shot Fernandez-Pena before the defendant drove away in the victim’s vehicle. The victim then shot Rodriguez, the suspect who allegedly initiated the attack by rear-ending the Infiniti, after Rodriguez threatened to run the victim over with his Honda. Philadelphia Police officers subsequently captured both defendants nearby. The attack occurred in broad daylight around 2:30 p.m., less than a mile away from family attractions like the Please Touch Children’s Museum and the Philadelphia Zoo.
“As we have said many times since launching the #AllHandsOnDeck initiative, our Office and our federal partners are doing everything we can to support the Philadelphia Police Department and prosecute cases federally when appropriate,” said U.S. Attorney Williams. “Here, the defendants allegedly committed a brazen carjacking at gunpoint in the middle of the afternoon in busy neighborhood; an offense that certainly meets the criteria for federal indictment. We are committed to bringing the full might of the federal justice system to this battle.
“ATF’s main objective will always be keeping our citizens safe,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “This indictment is indicative of ATF’s continued efforts working with our partners and proudly serving as part of the joint carjacking task force, being led by the Philadelphia Police Department. We will continue working with our local, state, and federal partners in making sure violent individuals are held accountable when they threaten the safety of the community.”
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, each defendant faces a maximum possible sentence of life in prison, as well as a mandatory minimum sentence of seven years’ incarceration.
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 Michael R. Miller.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.