Eastern District of Pennsylvania

PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Deslouis Edouard, 28, formerly of Philadelphia, PA, was sentenced to five years in prison, three years of supervised release, and ordered to pay approximately $515,000 restitution by United States District Court Jeffery L. Schmehl for his conviction of aggravated identity fraud and related charges.

In October 2021, the defendant pleaded guilty to four counts of aggravated identity fraud and six counts of related fraud charges in connection with an extensive identity fraud scheme during which he was essentially living his day-to-day life based on fraud during a period of at least four years. Edouard lived in a series of apartments he rented in victims’ names and obtained electric, cable, and other services in his victims’ names. He then failed to pay the bills and moved from apartment to apartment, fleecing the apartment owners and service providers along the way. The defendant controlled the identity and credit information of more than 450 individuals and used that information to obtain credit cards and purchase goods including Apple products, gift cards, numerous other electronic devices, as well as a luxury vehicle – causing over $515,000 in losses to numerous victims.

Edouard engaged in much of this fraud activity in the Lehigh Valley, living in apartment complexes in the area and shopping in numerous retail establishments with false identification, often with his picture and others’ identity information on the cards. He also possessed document-making equipment in his residence, which he could use to make false identifications with the numerous identities he had at his disposal. He frequently hijacked his victims’ accounts with wireless service providers, such as AT&T, and became an authorized user on those accounts with one of his false identities.

At the time of his arrest in Florida, the defendant was caught driving an Audi Q5 that he had purchased in Allentown for over $30,000 using the false personal identification information of one of his victims. At the time of the purchase, the defendant presented a fake driver’s license with his victim’s identity information (including his birth date, address, and driver’s license number) paired with his own photograph.

“This defendant victimized innocent bystanders in two ways: first, by stealing individuals’ identities, money and good credit; and second, by ripping off businesses and other service providers,” said U.S. Attorney Williams. “If Edouard had not been apprehended by authorities, he would undoubtedly still be committing crimes today with even more victims. Now, instead, he will face consequences of those actions which includes five years in federal prison.”

"Identity theft strips its victims not only of their hard-earned money, but also of their security and privacy," said Special Agent in Charge Jacqueline Maguire. "Crooks who think they can conceal their crimes in cyberspace - or who think it's okay to fund their lifestyle with other peoples' hard-earned money - need to know two things: the FBI knows where you hide and we will bring you to justice"

The case was investigated by the Federal Bureau of Investigation, the United States Postal Service, the Bethlehem Police Department, and the Northampton County District Attorney’s Office, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Emiliano Rodriguez, 44, a citizen of the Dominican Republic residing in Philadelphia, PA, was arrested and charged by Indictment with one count of trafficking in counterfeit goods, and two counts of causing the delivery of hazardous materials by air carrier in connection with a scheme to utilize counterfeit goods in used vehicles, which he then resold to unsuspecting customers.

The Indictment alleges that from at least January 2017 through October 2019, the defendant, who is a trained auto mechanic, fraudulently imported counterfeit airbags from China and installed these unproven parts in salvaged autos which were then reintroduced to the consumer market. China has been identified as the largest exporter of counterfeit commodities, including counterfeit airbags. Persons involved in the trade of counterfeit airbags engage in this practice in an effort to increase profits from their sales by decreasing the cost of the parts used to replace the original items. Unsuspecting motorists purchase used or salvaged vehicles unaware of the history of the part(s) used in the vehicle reconstruction. Once purchased, the vehicles are driven on public roads and expose the driver, passengers and general public to potential hazards associated with the use of counterfeit parts. In this case, federal agents recovered more than 450 counterfeit airbags and parts from the Rodriguez’s residence and business.

“The hazards posed to unsuspecting motorists and the general public by the alleged actions of the defendant in this case are enormous, and could have ramifications for years to come,” said U.S. Attorney Williams. “Safety equipment as important as vehicle airbags are subject to strict quality control standards to keep everyone safe, therefore when corners are cut by utilizing counterfeit goods, the consequences can be disastrous. Our Office appreciates the dedicated efforts of our law enforcement partners to investigate and bring charges in this case.”

“Counterfeit airbags pose real dangers to unsuspecting members of the public. The risks of counterfeit and substandard auto parts are known by those who work in the automotive industry,” said William S. Walker, Acting Special Agent in Charge of HSI Philadelphia. “Yet, Rodriquez, an auto mechanic, allegedly outfitted salvaged automobiles with counterfeit airbags imported from China and reintroduced those vehicles back into the consumer market, thereby putting lives at risk in the interest of making a profit. This investigation is yet another reminder of the risks posed by counterfeit goods. As result of this case, Rodriquez will now face justice for his alleged role in this scheme.”

“Illegally transporting potentially hazardous goods puts our transportation system at risk. When those goods are also counterfeit, the risk can be even greater,” said Joseph Harris, Special Agent-in-Charge, Northeast Region, U.S. Department of Transportation Office of Inspector General. “Together with our law enforcement and prosecutorial colleagues, we remain committed to pursuing those who would compromise public safety for personal gain.”

If convicted, the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, fines of $2,050,000, and a $200 special assessment.

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

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced that the owner and the former manager of rental properties in Quakertown, PA, have agreed to resolve a federal lawsuit brought by the United States in the Eastern District of Pennsylvania. The United States alleged that the defendants violated the Fair Housing Act when they refused to let a tenant’s girlfriend move in with him because she was pregnant with his son, and because the tenant was in recovery from an addiction to alcohol.

In 1988, Congress expanded the Fair Housing Act to prohibit discrimination based on familial status and disability. The Act’s ban on familial status discrimination protects individuals under 18 years old, as well as any person who is pregnant. The Fair Housing Act’s disability protections cover people in recovery from alcohol or drug addiction, but they do not apply to current, illegal use of or addiction to a controlled substance. The tenant in the United States’ lawsuit successfully completed an alcohol treatment program and was in recovery from his addiction for approximately nine months before requesting that his girlfriend move into the property.

“The expectation and arrival of a new baby is supposed to prompt celebration, not the threat of eviction,” said U.S. Attorney Williams. “The same should be true of individuals putting in the hard work to manage their addictions – they deserve support, not hurdles, to access safe, affordable housing. Expanding families and those working to remain on stable footing should be able to rely on the continuity of their home.”

“For more than three decades, federal law has prohibited housing discrimination against individuals because they are pregnant or because they are in recovery from alcohol addiction,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The resolution of this lawsuit advances the Justice Department’s commitment to ensuring that individuals expecting children, as well as people recovering from an addiction, have equal access to housing opportunities free from illegal discrimination.”

The consent order resolving the lawsuit, which was approved today by the U.S. District Court for the Eastern District of Pennsylvania, arose as a result of a complaint filed with the Department of Housing and Urban Development (HUD) by the tenant on behalf of himself and his minor daughter. After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.

“The Fair Housing Act seeks to ensure that individuals, who are recovering from addiction, and their families can access housing free from housing discrimination,” said Principal Deputy Assistant Secretary Demetria L. McCain for Fair Housing and Equal Opportunity at HUD. “HUD applauds the Department of Justice for its partnership with HUD and its aid in resolution of this matter.”

Under the consent order, the defendants will pay a total of $75,000 to the tenant and his child. The consent order also requires defendants to take actions directed towards preventing future unlawful discrimination, including complying with the Fair Housing Act, undergoing training and implementing nondiscrimination policies on the Fair Housing Act in connection with the rental and management of residential properties, and submitting to compliance and reporting requirements.

Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Additional information about the Fair Housing Act is available at www.HUD.gov.

The case is captioned United States v. Bacchus, et. al, No. 2:21-cv-3680 (E.D. Pa.). The United States is represented by Judith Amorosa, Assistant U.S. Attorney in the Eastern District of Pennsylvania, along with the Department of Justice’s Civil Rights Division, Housing and Civil Enforcement Section.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Leandro Rodriguez, 45, of Allentown, PA, was sentenced to one year and eight months in prison, three years of supervised release, and ordered to forfeit approximately $669,000 by United States District Court Judge Edward G. Smith for his participation in a conspiracy to smuggle mislabeled drugs into the United States from China, and sell them as dietary supplements.

In October 2021, the defendant pleaded guilty to conspiracy to smuggle and resell misbranded drugs, and delivering those drugs in interstate commerce, in order to defraud the United States by impeding and impairing the lawful functions of the Food and Drug Administration (FDA). The charges arose from Rodriguez’s participation in a conspiracy from early 2011 until March 2017 to import from China and resell to consumers, substances falsely labelled as “all natural” dietary supplements, but which the defendant knew contained the undeclared ingredient Sibutramine, a dangerous controlled substance that could not legally be sold in the United States.

“The United States sets standards for controlled substances in order to keep American consumers and patients safe,” said U.S. Attorney Williams. “The defendant knowingly skirted our country’s importation laws, and sold dangerous drugs under the guise of benign supplements. This scheme put many people’s health and safety at risk.”

“Misbranded drugs that are disguised as dietary supplements and contain potentially harmful hidden ingredients place American consumers at risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who endanger the U.S. public health by distributing fraudulent and potentially dangerous products.” 

“For nearly six years, Rodriguez smuggled into the United States a dangerous controlled substance from China, just to mislabel it as a dietary supplement and peddle it to consumers, seemingly with no regard for the health and safety of those who consumed the product,” said William S. Walker, Acting Special Agent in Charge of HSI Philadelphia.  “HSI Philadelphia was pleased to partner with the Food and Drug Administration (FDA) and U.S. Postal Inspection Service on this important investigation.  As a result of strong federal law enforcement collaboration, Rodriguez will be held accountable for his criminal acts.”

The case was investigated by the Food and Drug Administration – Office of Criminal Investigations, the United States Postal Inspection Service, and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that the United States filed a civil lawsuit against Philadelphia-based pharmacy Spivack, Inc., which previously operated under the name Verree Pharmacy, and its former owner, pharmacist Mitchell Spivack, alleging that they engaged in a years-long practice of illegally dispensing opioids and other controlled substances, and systematic health care fraud. The lawsuit alleges that Verree and Spivack illegally dispensed unparalleled quantities of opioids and other controlled substances into the Philadelphia community. The complaint seeks civil penalties and civil damages, which could total in the millions of dollars, as well as injunctive relief.

The culmination of a multi-year federal-state investigation, the complaint alleges that Verree Pharmacy, its pharmacist and then-owner Mitchell Spivack and other employees of Verree, had a responsibility to dispense opioids and other controlled substances only when appropriate.  Instead, the United States alleges that the pharmacy and Spivack dispensed the drugs, even when faced with numerous red flags suggestive of diversion—such as opioids in extreme doses, dangerous combinations of opioids and other “cocktail” drugs preferred by those 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 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 these pills critical to its profits. Behind that façade, the 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’ complaint alleges that Verree and Spivack were also 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 and their co-conspirators allegedly used BBDF as a means to cover their losses on other drugs and further line their pockets with illicit profits by falsely claiming to insurers, including Medicare, that they had dispensed a drug to a patient, when in fact they had not. According to the complaint, this sophisticated fraud—which one of the employees admitted to investigators—resulted in significant losses to Medicare and other federal programs.

The lawsuit seeks to impose civil penalties and damages on Verree and Spivack under the Controlled Substances and False Claims Acts. If Verree and Spivack 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 Verree and Spivack from committing additional controlled substance violations.

“Pharmacies and pharmacists engage in the deepest violation of the community’s trust when they exploit their access to opioids and other controlled substances and illegally dispense the drugs for their own financial gain,” said U.S. Attorney Williams. “It is even more disturbing when pharmacies take advantage of their position of trust by fraudulently billing Medicare and other federal health care programs for bogus prescription drugs. My Office will use every resource it has to pursue and hold these individuals accountable. I am grateful for the support and investigative teamwork that the DEA, HHS-OIG, and the Pennsylvania Attorney General’s Office provided in this important matter.”

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

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

“We know that nearly 80% of those who use heroin first started with misusing a prescription opioid,” said Attorney General Josh Shapiro. “Pharmacies and medical professionals have a responsibility under the law to dispense these drugs only when appropriate. These allegations of illegal dispensing and fraud are disturbing -- they hurt families and communities all over the Commonwealth and steal needed resources from taxpayers. Our office is committed to continuing to work with our federal partners, and I am thankful for the women and men who collaborated on this case.”

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, 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 complaint contains allegations only that the United States must prove if the case proceeds to trial.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Tayanna Bowman, 25, of Philadelphia, PA, was sentenced to  nine years and two months in prison, twenty years of supervised release, and was ordered to pay a $3,000 assessment by United States District Court Judge Michael M. Baylson for distributing child pornography to an undercover federal agent on an online file sharing platform.

In March 2021, the defendant pleaded guilty to distribution and attempted distribution of child pornography. In January 2020, while employed as a behavioral health technician at ChanceLight Autism Services [a regional childcare service provider] specializing in behavioral health support for children with autism, the defendant distributed videos and images of child pornography on the Internet using Kik Messenger. Prior to that job, Bowman worked at Cynthia’s Little Treasures Daycare in West Philadelphia as a teaching assistant.

“This defendant chose a line of work providing care to vulnerable, autistic children, and at the same time, she participated in the sexual abuse and exploitation of children by engaging with an online community interested in such abhorrent acts,” said U.S. Attorney Williams. “It is our duty to protect the most vulnerable members of society and we will continue to uphold that duty by bringing to justice anybody who preys upon minor children.”

“Bowman betrayed the trust her students and their parents placed in her. Although today’s sentencing cannot repair the damage Bowman caused, it sends the message that the FBI remains committed to hunting down child predators and delivering justice to their victims,” said FBI Special Agent in Charge Jacqueline Maguire.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Dwayne Butler, 27, of Chester, PA, was sentenced to 12 years in prison, five years of supervised release, and ordered to pay a $4,000 special assessment by United States District Court Chief Judge Juan R. Sanchez for his role as one the most prolific members of the “3rd Bone” drug trafficking group, a violent street gang that sold large amounts of crack, cocaine, and heroin in downtown Chester.

In October 2019, Butler and nearly two dozen others were arrested pursuant to parallel Indictments of rival drug gangs operating in and around Chester: “3rd Bone,” which held power in the area of 3rd and Lamokin Streets; and their rivals, “William Penn,” which controlled the territory surrounding the Chester Housing Authority’s William Penn Homes.

Butler and 12 of his “3rd Bone” co-conspirators were charged in a 70-count Indictment alleging conspiracy to distribute crack, cocaine, fentanyl, and heroin (one count); distribution and possession with intent to distribute controlled substances (57 counts); unlawful use of a communications facility in furtherance of a drug felony (five counts); possession of a firearm in furtherance of a drug trafficking crime (three counts); felon in possession of a firearm (two counts); and aiding and abetting. In September 2021, Butler pleaded guilty to more than 35 drug-related counts, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon.

Earlier this year, another “3rd Bone” defendant, Jamel Covington, 31, also of Chester, was sentenced to 10 years in prison, four years of supervised release, and ordered to pay a $500 special assessment. Covington pleaded guilty to drug trafficking and firearms offenses, including maintaining a small arsenal of semiautomatic weapons and bulk amounts of crack and fentanyl in a storage facility rented in his name.

“The defendant and his co-conspirators in 3rd Bone, together with the defendants in the William Penn gang, terrorized the Chester community for years with their drug dealing and associated violence,” said U.S. Attorney Williams. “Butler dealt dangerous narcotics and illegally possessed weapons to further his drug-dealing business, and for that he will now spend more than a decade in prison. 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.”

“For years, Butler and his fellow gang members terrorized the hard-working residents of Chester – and he now will pay the price for his crimes.  The FBI and its law enforcement partners will never stop working to make our communities safer and free from violent crime,” said FBI Special Agent in Charge Jacqueline Maguire

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 (FBI) and the Drug Enforcement Administration (DEA), working closely the Chester City Police Department, and is being prosecuted by Assistant United States Attorneys Meaghan A. Flannery and Matthew T. Newcomer.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Luis Gomez, 33, of Reading, PA, was sentenced to 19 years in prison, five years of supervised release, and was ordered to pay a $2,000 fine by United States District Court Judge Edward G. Smith for possessing a large quantity of crystal methamphetamine and a loaded pistol at his home in 2019.

At the conclusion of a long-term investigation led by the Federal Bureau of Investigation and the Pennsylvania State Police into methamphetamine, heroin, and cocaine trafficking in the Reading area, in September 2019, Gomez was arrested during the execution of a federal search warrant at his Reading home. Inside Gomez’s bedroom, FBI agents recovered approximately one pound of crystal methamphetamine along with an extended firearm magazine containing 26 rounds of live 9mm ammunition and a bulletproof vest. Approximately two additional pounds of crystal methamphetamine were recovered in separate bedrooms of the house, along with various drug paraphernalia and a loaded 9mm pistol in the living room.

Following forensic analysis at the FBI laboratory, Gomez’s DNA profile was identified on the pistol. Because of a prior felony conviction for drug dealing, Gomez was prohibited from possessing firearms under federal law. Five other defendants were also arrested in connection with this investigation, and over 65 pounds of methamphetamine and three additional firearms were seized in the same month.

“This defendant personally threatened the safety of his neighbors in Reading, and all communities in our District, through his dangerous and illegal actions,” said U.S. Attorney Williams. “Gomez stashed drugs in his home and illegally possessed a weapon to further his drug-dealing business. Thanks to the steady, determined efforts of investigators at the FBI and Pennsylvania State Police, the defendant and his co-conspirators’ operation was permanently shut down.”

The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Timothy Spillane, 39, of Chester Springs, PA, pleaded guilty before United States District Court Judge Joel Slomsky to accessing a protected computer network without authorization, arising from his intrusions into the digital networks of two suburban Philadelphia-area colleges.

According to court documents, between November 2017 and January 2018, the defendant hacked into approximately 25 school network email accounts at two local colleges belonging to students and staff. After gaining access to these accounts, Spillane obtained the personal identifying information of the account holders and others, including W-2 tax forms and student financial information. The defendant then attempted to submit fraudulent tax returns using the stolen information, but he was unsuccessful because he could not accurately determine the victims’ adjusted gross income from the prior tax year. Spillane further admitted that he set up email, pre-paid phone and bank accounts in these individuals’ names in order to collect the fraudulently obtained tax return money.

“A significant number of Americans handle nearly all of their business online, which means that the information they store digitally can be vulnerable,” said U.S. Attorney Williams. “Would-be thieves like this defendant demonstrate how quickly and easily personal information can be compromised. However, this case also demonstrates how quickly our Office and our law enforcement partners will respond; it was only a matter of weeks between the FBI receiving a tip and the day they knocked on the defendant’s door to execute a search warrant, stopping him in his tracks.”

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Brian James Kunsman, 44, of PhiladelphiaPA, was charged by Indictment with one count of possession of an unregistered destructive device and one count of being a felon in possession of an explosive.

The Indictment alleges that in October 2021, the defendant possessed a ‘pipe bomb’ inside the emergency room at St. Luke’s University Hospital in the Fountain Hill section of the City of Bethlehem. An attending nurse discovered that Kunsman had brought the homemade destructive device in his backpack while he was a patient at the emergency room. Following the discovery, the emergency department of the hospital was evacuated for a two-hour period and all incoming trauma patients had to be diverted to other local hospitals.

The defendant is scheduled to make an initial appearance in federal court on these charges on Monday, January 24, 2022, before United States Magistrate Pamela Carlos in Allentown.

“Homemade explosive devices pose a grave threat to the general public when in the wrong hands, and bringing one into the emergency department of a hospital – an enclosed space where people are receiving acute medical care – is especially dangerous,” said U.S. Attorney Williams. “We are grateful to our law enforcement partners for working quickly and efficiently to mitigate the threat posed by this defendant’s alleged actions.”

“ATF is committed to working with our law enforcement partners to keep our communities safe from violence,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “As alleged, this defendant possessed a device which posed a substantial threat to hundreds of citizens. I would like to thank the Fountain Hill Police Department, the Allentown Bomb Squad, and the U.S. Attorney’s Office for their assistance in this investigation.” 

If convicted, the defendant faces a maximum possible sentence of 20 years in prison, up to 3-years of supervised release, and a $260,000 fine.

The case was investigated by the Allentown Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Borough of Fountain Hill Police Department, the Allentown Bomb Squad, and the Lehigh County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.

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

As Part of All Hands on Deck Initiative, U.S. Attorney’s Office Secures Indictments Against Delaware Man Accused in FDR Park Carjacking and Against Philadelphia Felon for Attempted Armed Robbery and Shooting of Convenience Store Owner, and Obtains Lengthy Prison Sentence for Drug and Firearms Trafficker.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced a series of updates on violent crime cases being prosecuted by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, as the Office continues to emphasize its All Hands On Deck initiative which brings together federal law enforcement and agency partners to tackle the serious violent crime problem in the City of Philadelphia.

“When I announced the All Hands On Deck initiative in April 2021, I vowed that we 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. “I also put violent criminals on notice that we were doubling down on our efforts to identify, arrest, and charge them for their crimes. The Indictments and sentencing result announced today show that we have kept our word to focus on getting the most violent offenders off the street and behind bars for a long time, so they cannot hurt anyone else in the community. And with more than 30 homicides so far in just the first 20 days of the year, our diligence and commitment to this work comes at a critically important time.”

On January 18, 2022, Eric Long, 52, of Philadelphia, PA, was arrested and charged by Indictment with one count of attempted Hobbs Act robbery, one count of possession of a firearm by a felon, and one count of carrying and using a firearm during a crime of violence. The Indictment alleges that in December 2020, the defendant entered the Express One convenience store on the 2000 block of East Allegheny Avenue in Philadelphia, demanded money from the store manager while brandishing a firearm, and then shot the store owner with that firearm multiple times. Long is also charged with illegally possessing the firearm as a previously convicted felon. If convicted, defendant Long faces a maximum possible sentence of life imprisonment, five years of supervised release, a $750,000 fine, $300 in special assessments, restitution, and forfeiture.

On January 19, 2022, Dwayne Gary, 36, of Philadelphia, PA, was sentenced to nine years in prison and five years of supervised release by United States District Judge Cynthia M. Rufe for his participation in a conspiracy to distribute, and distribution of, more than 200 grams of heroin in 2017. While engaging in this drug distribution activity, Gary also organized the sale of a firearm while in custody on an unrelated criminal charge. The defendant pleaded guilty to this four-count Indictment in September 2021.

Finally, on January 20, 2022, Josiah Brown, 19, of Wilmington, DE, was charged by Indictment with one count of carjacking, and one count of carrying and using a firearm during a crime of violence in connection with a December 2021 armed carjacking which occurred at Franklin D. Roosevelt Park in South Philadelphia. According to the Criminal Complaint filed on December 23, 2021, while the victim and an associate were speaking near the victim’s vehicle, an SUV pulled up alongside them and blocked them in. One suspect got out of the SUV, pointed a gun at the victim and demanded the keys to the vehicle, and then fled from the area in the stolen vehicle. Investigators tracked and located the vehicle later that day in Wilmington, and then in New Castle, DE. When multiple individuals approached the parked vehicle in the parking lot of the Christiana Fashion Center in New Castle, law enforcement detained five people, including the defendant who was in possession of the keys to the victim’s vehicle.

“The FBI is fully committed to protecting the safety of our citizens as we combat the violent crime problem here in Philadelphia together with our law enforcement partners,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. “And while our work is far from done, the results being announced today are significant steps in getting armed criminals off of Philly’s streets and making our streets safer for all of the innocent citizens who deserve to live without fear.”

“ATF continues to work with our local, state, and federal partners to reduce violence in our communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Facilitating illicit transactions of firearms and narcotics jeopardizes the safety of our citizens. These offenses will always be taken seriously and today the community is safer thanks to the outstanding work by our partners at the U.S Attorney’s Office.” 

The United States v. Eric Long case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Kathryn Deal.

The United States v. Dwayne Gary case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Francis A. Weber.

The United States v. Josiah Brown case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, with assistance from the Delaware State Police, Wilmington Police Department, and the New Castle County Police Department, and is being prosecuted by Assistant United States Attorney Justin Oshana.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Eric Amaefuna, 65, of King of Prussia, PA, pleaded guilty to engaging in a multi-year scheme to assist clients with filing false income tax returns in order to fraudulently increase the amount of the refund they received.

In April 2021, the defendant was charged by Indictment with 29 counts of aiding and assisting in the preparation of false income tax returns. At the time of the charged conduct, Amaefuna was the owner of American Financial Stewardship (AFS), a tax preparation business on Bustleton Avenue in Northeast Philadelphia. According to the Indictment, Amaefuna prepared false and fraudulent IRS Personal Income Tax 1040 Forms for client taxpayers for at least tax years 2014 through 2016. The defendant added attachments to the 1040 Forms that were also false, in that they claimed false or inflated employee business expenses, inflated state and local taxes, false or inflated miscellaneous deductions, and losses that were entirely fictitious or falsely inflated. These falsities resulted in the filing of personal income tax returns claiming refunds due to the client taxpayers which they were not entitled to receive.

“Our system of taxation relies upon taxpayers contributing their fair share to the federal government, and preparers are supposed to help them do that by accurately reporting income and expenses,” said U.S. Attorney Williams.  “The defendant manipulated his clients’ tax filings to suit their own needs at the expense of honest taxpayers. This case is an important reminder to take seriously the legal obligation to file complete and accurate federal income tax returns as we start the 2022 tax season.”

“As we approach the start of the tax filing season, it is important that taxpayers are very diligent when it comes to filing an accurate tax return,” said IRS Criminal Investigation Special Agent In Charge Yury Kruty. “For those who choose to use a tax return preparer, filing an accurate tax return starts with staying clear of unscrupulous tax return preparers. Remember, YOU as the taxpayer, are ultimately responsible for filing a timely, complete, and accurate tax return.”

The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant United States Attorney Terri A. Marinari.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Omar White Oliver, 43, formerly of Philadelphia, PA, was arrested and charged by Indictment for his involvement in a scheme to unlawfully obtain and misuse loan proceeds offered through the federal Paycheck Protection Program (“PPP”). 

The Indictment, unsealed today, charges the defendant with four felony counts: two counts of bank fraud and attempted bank fraud, and two counts of money laundering. The charges stem from Oliver’s alleged scheme to fraudulently obtain approximately $186,750 in PPP loan proceeds by making false representations regarding his alleged real estate business, Oliver Twist Real Estate, LLC. The Indictment alleges that Oliver 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. According to the Indictment, the defendant then used those PPP loan proceeds for personal and unauthorized purchases, including a luxury automobile and an American Express platinum card bill. As charged, 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 is charged with fraudulently obtaining nearly $200,000 that could have helped struggling businesses and individuals but instead allegedly paid for personal indulgences.”

“The Paycheck Protection Program was implemented amid widespread economic upheaval caused by the coronavirus pandemic,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The intention was to keep both businesses and employees financially afloat — not afford scammers some lavish lifestyle. Anyone who thinks defrauding U.S. taxpayers is a quick way to an easy payday best think again, because the FBI stands very ready to hold you accountable.”

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Peter Fratus, 40, of West Dennis, MA, was sentenced to four years in prison, and three years of supervised release by United States District Judge Gerald J. Pappert for sending racist, misogynistic threats via email to Philadelphia Police Commissioner Danielle Outlaw.

In September 2021, the defendant was convicted after a three-day trial on charges of transmitting threatening communications in interstate commerce. As established during trial, Fratus sent two June 2020 emails to the Philadelphia Police Commissioner’s official City of Philadelphia email address. Both emails contained racist, offensive, and threatening language, with one communication asking where Commissioner resides. Further, the defendant has a long history of sending racist, misogynistic threats and assaulting law enforcement officers.

“Sending threats online is a serious federal crime, whether the victim is a private citizen or a prominent civic leader,” said U.S. Attorney Williams. “The public can rest assured that our Office, together with our law enforcement partners, will work tirelessly to identify anyone who does this in order to ensure they’re held accountable for their actions.”

“Peter Fratus apparently thought he could make violent physical threats with impunity, but today’s sentencing proves how wrong he was,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Threats to life are most certainly not protected speech, and the FBI will continue to work with our partners to hold accountable anyone who crosses the line and commits these criminal acts.”

The case was investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department and the Dennis Police Department, and is being prosecuted by Assistant United States Attorneys Robert J. Livermore and Sarah M. Wolfe.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Myrna Ortiz, 43, of Philadelphia, PA, was charged in a 32-count Indictment in connection with a conspiracy to steal and conceal the origin of fraudulently obtained Social Security benefits and COVID-19 PUA unemployment benefits. The Indictment charges Ortiz with one count of conspiracy to commit money laundering and 31 counts of theft of government funds. She made her initial appearance in federal court on these charges earlier today.

According to the Indictment, Ortiz met an individual through the online dating website ‘Match.com,’ and began a relationship via digital messaging. She is charged with helping her online paramour execute a scheme in which fraudulent claims were filed for Social Security Administration (SSA) Retirement benefits, using the personal identifiable information of individuals age 62 or older, the age at which taxpayers become eligible to begin collecting those benefits. The indictment charges that Ortiz participated by laundering the stolen money.  Specifically, she is charged with opening ten bank accounts at the direction of her co-conspirator in order to receive the fraudulently issued government funds, and then withdrawing the funds, purchasing gift cards with the cash, and laundering the funds back to her co-conspirator through the gift cards. The scheme targeted high wage earners who are over the age of 62 but have not yet filed for SSA Retirement benefits on their own, and it impacted at least twenty-three victims.

Further, the Indictment alleges that the defendant helped steal money from the government specifically related to COVID-19 emergency relief funds or Pandemic Unemployment Assistance (“PUA”) funds. Using the same bank accounts to which the fraudulently obtained SSA funds were directed, Ortiz is also charged with depositing fraudulently obtained PUA funds in the names of various victims and laundering these illegal proceeds back to the same co-conspirator. This scheme involved deceiving the state workforce agencies of Pennsylvania, Illinois, Indiana, West Virginia, Arizona, and Ohio.

Through these schemes, Ortiz is alleged to have been involved in a conspiracy to defraud the government, and to launder the stolen government funds in an amount of almost $600,000.

“Social Security retirement benefits and pandemic unemployment assistance funds are intended to help Americans who have worked hard and now need some extra help making ends meet, either because they are now enjoying their well-deserved retirement or because the COVID-19 pandemic has dramatically impacted their ability to work and earn a living,” said U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of honest workers – ripping them off while also ripping off all taxpayers who fund these programs. As alleged, Ortiz fraudulently obtained nearly $600,000 in government funds, all at the behest of an individual she met through an online dating website.”

“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations,” stated Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General.

The case was investigated by the United States Department of Labor Office of Inspector General and the Social Security Administration Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Megan Curran.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Patrick Harrison, 39, of Pottstown, PA, was arrested and charged by Indictment with Hobbs Act robbery; carrying, using, and brandishing a firearm during the commission of a crime of violence; and being felon in possession of a firearm in connection with a pharmacy robbery in West Philadelphia last year.

The Indictment alleges that in November 2021, the defendant entered a Rite-Aid located at 5040 City Ave, in West Philadelphia. Harrison brandished a firearm and demanded money from store employees. The defendant then allegedly fled the store after stealing approximately $600. The defendant is also charged with illegally possessing a firearm, in this case a loaded Smith and Wesson 9mm pistol, as a previously convicted felon.

“As alleged, this defendant waved a loaded gun in the faces of Rite-Aid employees simply doing their jobs and got away with $600,” said U.S. Attorney Williams. “Law enforcement experts have said that the majority of violent crimes committed in and around Philadelphia are perpetrated by a small number of brazen criminals. The charges in this Indictment demonstrate that assertion and are exactly why our All Hands On Deck initiative is committed to investigating and prosecuting those violent, repeat offenders.”

“As the indictment alleges, Harrison recklessly brandished a firearm during this brazen armed robbery, placing everyone in the community in danger,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “ATF, along with our local, state, and federal partners will continue to work every day to identify and remove violent criminals who threaten the safety of our citizens.”

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

If convicted, the defendant faces a maximum possible sentence of life imprisonment, five years of supervised release, and a $750,000 fine, and a $300 special assessment.

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

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

PHILADELPHIA, PA – United States Attorney Jennifer Arbittier Williams announced that SoNo International LLC (“SoNo”) and Ark Capital Equipment LLC (“Ark”) have agreed to jointly pay $904,000 to the federal government to resolve allegations that they violated the False Claims Act by supplying the Department of Defense with shipping containers made in China and/or made from Chinese steel.  The Department of Defense contracted for its agencies to purchase American-made materials or materials manufactured in specified allied countries, such as South Korea.  Instead, in one contract, SoNo and Ark allegedly had a third-party company change the identifying plates on 100 shipping containers made in China to make them appear to have been manufactured in South Korea.  On two other contracts, SoNo’s supplier used Chinese steel, and SoNo and Ark allegedly failed to detect the deception before providing the United States military those containers.

As part of the resolution with the United States, SoNo and Ark have entered into an administrative agreement with the Defense Logistics Agency establishing enhanced training and reporting requirements with respect to government procurement.  The third-party company that physically switched the plates has reached a separate agreement with the United States under which it will provide training to its employees to enhance their compliance with Customs rules and regulations and improve their awareness of Buy American and other issues.

“Americans have the right to know that their tax dollars are being spent to support American jobs and American policies,” said U.S. Attorney Williams. “When the Department of Defense purchased this material for our warfighters, SoNo agreed to acquire material from and support manufacturers in America or our allied nations. The United States Attorney’s Office is ready to investigate and punish contractors who do not follow these clear rules.”

“Protecting the integrity of the Department of Defense (DoD) procurement process and supply chain is a top priority for the DoD Office of Inspector General Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office.  “The DCIS will continue to work with its law enforcement partners and the USAO-EDPA to hold DoD contractors accountable to contract requirements and ensure that quality products and services are provided to the U.S. military.”

“AFOSI will continue to work with our law enforcement partners and the U.S. Attorney’s Office, Eastern District of Pennsylvania, to protect the integrity of the Federal procurement process and ensure wrongdoers are held accountable for their actions,” said Special Agent in Charge William W. Richards, Air Force Office of Special Investigations.

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 DCIS, the Army Criminal Investigation Division, and the Air Force Office of Special Investigations, with assistance from Homeland Security Investigations and the U.S. Customs and Border Protection’s Regulatory Audit and Agency Advisory Services. 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.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Kray Strange, 19, of Carthage, NY, was arrested earlier today and charged by federal Criminal Complaint with manufacturing and distributing child pornography, and willfully causing and aiding and abetting the manufacture and distribution of child pornography.

Strange was arrested after the FBI executed a federal search warrant at his residence. He made his initial appearance in federal court in the Northern District of New York this afternoon, and will be detained pending his removal to Philadelphia to face the charges in this Complaint. 

The charges stem from the defendant’s alleged involvement in an online catfishing scheme with former Springside Chestnut Hill Academy teacher Andrew Wolf, which they operated for more than a year during 2020 and 2021. According to the Complaint, Strange targeted school-age boys on social media platforms while impersonating a teenage girl in order to entice the boys to produce sexually explicit images and videos of themselves and send them to Strange, who then shared them with Wolf via the internet.

Strange’s co-conspirator, Wolf, was arrested in the Eastern District of Pennsylvania on October 7, 2021, and remains in federal custody.

“As alleged in the Criminal Complaint, the defendant communicated with children for the purpose of sexually exploiting their innocence,” said U.S. Attorney Williams. “The convenience and accessibility of digital communications, coupled with the ease with which child sexual exploitation crimes can be concealed online, make these cases extremely difficult to investigate and prosecute. However, our Office and our law enforcement partners are committed to doing this difficult work in order to hold child sexual predators accountable.”

If convicted, the defendant faces a maximum possible sentence of 40 years’ imprisonment.

The case was investigated by the FBI and is being prosecuted by the United States Attorney’s Office for the Eastern District of Pennsylvania.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Anthony Francis Nero, 48, of Norristown, PA, pleaded guilty today to charges of sending threatening communications and cyberstalking before United States District Judge Karen S. Marston.

According to court documents, on January 7, 2021, Nero sent an electronic message over the Internet to the Montgomery County Democratic Party (MCDP) that threatened “random acts of violence” and stated “you should probably beef up security.” On January 20, 2021, MCDP officials discovered that the front window to MCDP’s office, located in Norristown, PA, had been shot through three times by a firearm. In a February 2021 interview with Norristown Police and the FBI, Nero admitted sending the online threat to the MCDP and firing his .45 caliber pistol three times into the MCDP office. Ballistics tests by the Montgomery County Detective Bureau confirmed that two spent rounds recovered from the MCDP’s office were fired by Nero’s .45 caliber pistol. In March 2021, the defendant was arrested and charged by federal criminal complaint. He remains in federal custody.

“In the midst of a politically tumultuous time in our Nation, Anthony Nero sent a threatening communication and then turned those words into a violent act that could have resulted in catastrophic injury, or worse,” said U.S. Attorney Williams. “I want to thank our partners in the Montgomery County District Attorney’s Office and all agencies at the federal, state and local levels for their dedicated work on this case.”

“I want to thank the U.S. Attorney’s Office for their efforts in prosecuting this defendant for terroristic threats against the Montgomery County Democratic Committee. There is no place for this kind of criminal behavior in our democracy, and our law enforcement will continue to stand together to make sure that those who act in this way are brought to justice,” said Montgomery County District Attorney Kevin Steele. 

“Threatening violence is bad enough – but then, Anthony Nero carried out his threat and fired multiple gunshots into the MCDP office,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our law enforcement partners are committed to investigating and holding accountable anyone engaged in such criminal behavior. Nobody should have to fear becoming the target of reckless violence.”  

The case was investigated by the Federal Bureau of Investigation, Norristown Police Department, Montgomery County Detective Bureau, Montgomery County District Attorney’s Office, and the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorneys Vineet Gauri and Josh Davison, and Special Assistant United States Attorney Kathleen A. McLaughlin

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Lucy Xi, 44, formerly a resident of Malvern, PA, pleaded guilty to stealing trade secrets from GlaxoSmithKline (GSK) to benefit a Chinese pharmaceutical company named Renopharma.

Lucy Xi’s co-defendants, Yu Xue, Tao Li and Yan Mei, established Renopharma supposedly to research and develop anti-cancer drugs. In reality, though, the company was used as a repository of information stolen from GSK. Renopharma received financial support and subsidies from the government of China. At the time, Lucy Xi (who was married to Yan Mei) and Yu Xue were employed as a scientists at a GSK facility in Upper Merion, PA, which worked on developing biopharmaceutical products. These products typically cost in excess of $1 billion to research and develop. 

In January 2015, Lucy Xi sent Yan Mei a GSK document which contained confidential and trade secret data and information. The document provided a summary of GSK research into monoclonal antibodies at that time. In the body of the e-mail, Lucy Xi wrote, “You need to understand it very well. It will help you in your future business [RENOPHARMA].”

Yu Xue, her sister, Tian Xue, and Tao Li have all pleaded guilty for their roles in this conspiracy. Yan Mei is a fugitive who currently resides in China. 

“This defendant illegally stole trade secrets to benefit her husband’s company, which was 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 jeopardizes the strategic benefits brought about through research and development. Such criminal behavior must be prosecuted to the fullest extent of the law.”

“Pharmaceutical firms like GSK invest staggering amounts of time and money to develop new medications and bring them to market,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “When individuals steal valuable trade secrets concerning one of these drugs, it’s a threat both to that firm and beyond. After all, innovation like this propels the U.S. economy. The FBI is committed to enforcing laws that protect the nation’s businesses from such theft. We will not permit American research and development to be scavenged for the benefit of other companies or countries.”

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.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Josiah Brown, 19, of Wilmington, DE, was arrested and charged by Criminal Complaint on charges of carjacking and carrying and using a firearm during a crime of violence in connection with an armed carjacking that occurred in Franklin D. Roosevelt Park in South Philadelphia yesterday afternoon. The defendant made his initial appearance in federal magistrate court in Philadelphia this afternoon and is currently detained.

According to the Complaint, while the victim and an associate were speaking near the victim’s parked vehicle, an SUV pulled up alongside them and blocked them in. One suspect got out of the SUV, pointed a gun at the victim and demanded the keys to the victim’s vehicle and at the same time, a second suspect also got out of the SUV. The victim complied, and then both suspects got into the victim’s car and drove away. A third suspect driving the SUV then fled following the victim’s car.

Investigators determined that the victim’s vehicle contained equipment to track and locate it, which they did later that day in Wilmington, and then in New Castle, Delaware. When multiple individuals approached the parked vehicle in the parking lot of the Christiana Fashion Center in New Castle, law enforcement detained five people, including the defendant who was in possession of the keys to the victim’s vehicle.

“The investigation into this incident is in its very initial stages, and we are continuing to investigate and evaluate charging decisions,” said U.S. Attorney Williams. “Armed carjacking is a serious federal crime. There have been a rash of violent crimes like this recently, and while there were national security implications to this particular incident, we are always working collaboratively with our local partners to evaluate if cases should be taken federally. Working together means more resources, more tools, more intelligence. I’ve said it before and I’ll say it again: If you pick up a gun and use it to commit a crime, together, we will come after you. And we are very good at what we do.”

“Anyone willing to victimize a total stranger at gunpoint at any time, much less in broad daylight, in the middle of the day, is a clear threat to our community,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “No one who lives, works, or visits here should have to fear violent criminals targeting them for their vehicle or any other possessions. The FBI’s Violent Crimes Task Force will continue to work in lockstep with the Philadelphia Police Department and all of our partners to get guns out of the hands of those who shouldn’t have them and dangerous individuals off the street. We will never cede this city to criminals who have total disregard for the lives and safety of others.”

If convicted, the defendant faces a maximum possible sentence of lifetime imprisonment.

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, with assistance from the Delaware State Police, Wilmington Police Department and the New Castle County Police Department, and is being prosecuted by Assistant United States Attorney Justin Oshana.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that the United States and the Commonwealth of Pennsylvania Department of Environmental Protection filed a civil lawsuit against the Bucks County Water and Sewer Authority (“the Authority”), alleging violations of the federal Clean Water Act and Pennsylvania Clean Streams Law. The violations primarily consist of sanitary sewer overflows – typically in the form of wastewater overflowing from manholes – and operation and maintenance violations under its state-issued permits. 

At the same time the civil suit was filed, the United States and the Commonwealth of Pennsylvania also filed a proposed consent decree that would resolve the lawsuit subject to the District Court’s approval. The Authority will pay a $450,000 penalty and will be obligated to devote substantial resources to evaluate and upgrade its sewer systems as part of the decree.

The Authority owns and operates hundreds of miles of sewer pipes and associated treatment plants, and wastewater collection and conveyance systems, largely situated in Bucks County. The Authority’s service areas have historically suffered from sanitary sewer overflows, including more than 100 that have occurred in Plumstead Township since 2014. In that timeframe, multiple overflows have also occurred in Bensalem, Richland, Doylestown Borough, Middletown, Upper Dublin, and New Hope-Solebury.

Sanitary sewer overflows are typically characterized as unauthorized discharges of pollutants into waterways. Properly designed, operated, and maintained sanitary sewer systems are meant to collect and transport sewage to a treatment facility. Overflows occur for a variety of reasons, including severe weather, improper system design, equipment failures, poor management, improper operation and maintenance, and vandalism. Sanitary sewer overflows pose a substantial risk to public health and the environment. The main pollutants in raw sewage from overflows are bacteria, pathogens, untreated industrial wastes, toxic substances such as oil and pesticides, and wastewater solids.

Along with the financial penalty, the Authority has agreed to evaluate its collection system and adopt extensive measures to ensure compliance with the federal and state requirements. These measures include monitoring water flow; modelling the collection system; conducting inflow and infiltration evaluations; identifying and remedying hydraulic capacity limitations; addressing illegal sewer connections; and improving its overall operation and maintenance program.

“It’s no secret that many communities in the United States are grappling with issues caused by aging infrastructure, especially here on the East Coast which employs some of the oldest systems. However, there are ways to manage and address these issues in order to maintain the safety of our environment and property. Here, this consent decree will greatly reduce the problem of sewage in streets, basements, waterways in Bucks County and beyond,” said U.S. Attorney Williams. “We thank the Authority for working cooperatively to reach this resolution that will surely improve public health and environmental quality.”

“We’re pleased that the water and sewer authority has agreed to take extensive steps to upgrade and improve sewer systems for Bucks County, particularly the Plumstead area,” said Todd Kim, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.  “The federal Clean Water Act requires communities to eliminate or reduce their sewage overflows into the nation’s rivers, lakes, and oceans. Today’s agreement furthers that and will result in a cleaner, safer, Delaware River.” 

“Sewer overflows pollute rivers and streams and can expose local residents to toxic pollutants,” said Larry Starfield, Acting Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement will reduce sewer overflows, which mean a cleaner, safer environment for residents of Bucks County.”

“Protecting the air, land, and water from pollution, while providing for the health and safety of our citizens is the very mission of our agency,” said DEP Secretary Patrick McDonnell. “We are accomplishing just that through this coordinated and cooperative effort, not only with our federal partners at EPA, but with the Bucks County Water and Sewer Authority as well.”

The Authority cooperated with the investigation. As part of the settlement, it did not admit liability for the alleged violations.

The proposed consent decree, which has been filed in the U.S. District Court for the Eastern District of Pennsylvania, is subject to a 30-day public comment period and approval by the federal court.

The case was handled by Civil Chief Gregory B. David, former Assistant U.S. Attorney John T. Crutchlow, and Pamela Lazos, Senior Assistant Regional Counsel for the United States Environmental Protection Agency. Supervisory Counsel William H. Gelles handled the case on behalf of the Commonwealth of Pennsylvania Department of Environmental Protection. 

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Ashante Richardson, 46, of Lawrenceville, GA, and Frank Crosson, 50, of Greensboro, NC, were arrested and charged by Indictment with conspiracy to commit wire fraud and multiple counts of wire fraud in connection with a scheme to fraudulently alter numerous individuals’ credit scores in order to obtain loans and credit.

According to the Indictment, which was unsealed in conjunction with the defendants’ initial appearances in federal court on these charges today, from about September until December 2016, the defendants conspired with another individual to alter the credit histories of themselves and their clients in order to falsely improve those individuals’ chances of securing credit and loans from financial institutions. At the time of the charged conduct, the defendants’ co-conspirator was an employee of TransUnion, one of the three primary consumer credit reporting agencies in the United States. Richardson and Crosson allegedly paid this individual $40,000 in exchange for making unauthorized and unsupported alterations to individuals’ TransUnion credit histories, including the credit histories of clients of Perpetual Synergy, a credit repair business operated by Richardson. Shortly after the co-conspirator at TransUnion made the alterations to these individuals’ credit histories, many of those individuals credit scores increased and they obtained new credit cards, lines of credit, or bank loans.

“The defendants allegedly cheated our national system of credit reporting in order to bolster their scores and those of their clients,” said U.S. Attorney Williams. “Criminals that conduct schemes like this prey on the hard work and honesty of all American consumers who operate within the system to build their credit histories. Our Office will continue to investigate and prosecute financial fraud to protect the integrity of the markets and commerce.”

If convicted the defendants faces a maximum possible sentence of 180 years in prison, three years of supervised release, a $2,250,000 fine, and a $900 special assessment.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney K.T. Newton.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Tyeed Henson, 22, of Philadelphia, PA, was charged by Indictment with nine counts of Hobbs Act robbery stemming from a rash of late-2020 armed robberies of Philadelphia-area convenience stores over the course of one week.

According to the Indictment, from October 30 through November 5, 2020, the defendant is alleged to have robbed seven convenience stores in West and Southwest Philadelphia of money and store merchandise at gunpoint. Following an investigation by the Philadelphia Police Department, investigators learned of two additional alleged robberies in Yeadon and Bala Cynwyd with fact patterns that were consistent with the Philadelphia robberies.

“The complete disregard that this defendant is charged to have demonstrated for the safety and well-being of others is appalling,” said U.S. Attorney Williams. “As alleged, in just seven days, Henson terrorized the employees of nine area businesses who were simply doing their jobs. Through our multi-pronged approach - including strategic use of recently announced grant funding for the PSN program - we will continue our coordination with the Philadelphia Police Department and federal agencies to make the community safer by removing criminals like this from our streets.”

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 of all charges, Henson faces a total possible maximum sentence of 180 years in prison and three years of supervised release, a $2.25 million fine, and a $100 special assessment.

The case was investigated by the Philadelphia Police Department, Yeadon Police Department, Lower Merion Police Department, and the Federal Bureau of Investigation, and is being prosecuted by 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 – United States Attorney Jennifer Arbittier Williams announced that Edward Holloway, 34, of Philadelphia, PA was charged by Indictment with possession of a controlled substance with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon, all stemming from a vehicle search conducted during traffic stop earlier this year.

In January 2021, Philadelphia Police Department officers initiated a traffic stop of the defendant’s vehicle. A subsequent search of the vehicle is alleged to have uncovered a large quantity of cocaine and additional packets of crack cocaine in a void under the vehicle’s center console. Investigators are also alleged to have recovered a loaded semiautomatic firearm from the same location.

“Drugs and firearms are a very dangerous combination, especially in Philadelphia where the violent crime rate has reached record-breaking levels,” said U.S. Attorney Williams. “Through the initiatives we launched this year like #AllHandsOnDeck and DOJ-OJP Public Safety Partnership, and the recently announced grant funding for the PSN program, we will continue our coordination with the Philadelphia Police Department and federal agencies to make the community safer by removing criminals like this from our streets.”

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

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 of all charges, the defendant faces a total possible maximum sentence of lifetime imprisonment, a 15-year mandatory minimum term of imprisonment, at least three years of supervised release, a fine of $1.5 million, and a $300 special assessment.

The case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by 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 – United States Attorney Jennifer Arbittier Williams and Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division announced that John Murray Rowe, Jr., 63, of Lead, South Dakota, a former employee of multiple cleared defense contractors, was arrested in South Dakota for attempting to communicate classified national defense information to aid a foreign government.  

The defendant was charged by a criminal complaint that was unsealed and made public today upon Rowe’s arrest in the District of South Dakota. According to the complaint, Rowe, who is originally from Massachusetts, was employed for nearly 40 years as a test engineer for multiple security cleared defense contractors. In connection with his employment, the defendant held various national security clearances from SECRET to TOP SECRET//SCI (Sensitive Compartmented Information) and worked on matters relating to the U.S. Air Force’s aerospace technology, among other things. After committing a number of security violations and revealing a fervent interest in Russian affairs, including asking whether he could obtain a security clearance from the Russian government, Rowe was identified as a potential insider threat and terminated from employment.

Based on his conduct, the FBI began an undercover operation to determine the defendant’s willingness to communicate classified information to a foreign government. In March 2020, Rowe met with an FBI employee operating in a covert capacity and posing as an agent of the Russian government. Over the course of the next eight months, Rowe exchanged over 300 emails with the purported Russian agent, confirming his willingness to work for the Russian government and discussing his knowledge of classified information relating to U.S. national security and military interests. In one email, Rowe explained, “If I can’t get a job here then I’ll go work for the other team.” In another email, Rowe disclosed national defense information classified as SECRET that concerned specific operating details of the electronic countermeasure systems used by U.S. military fighter jets.

Rowe will make his initial appearance in federal court on these charges in South Dakota tomorrow. If convicted, the defendant faces a maximum possible sentence of life in prison.

The case was investigated by the FBI Philadelphia Field Office, and is being prosecuted by Assistant United States Attorney Sarah Wolfe and Justice Department Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section. Valuable assistance was provided by the Lead Police Department in South Dakota, the U.S. Attorney’s Office for the District of South Dakota, the U.S. Air Fore Office of Special Investigations, and the FBI’s Minneapolis Field Office and Rapid City Resident Agency.

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

A South Dakota man was arrested last night in Lead, South Dakota, on criminal charges related to his alleged espionage attempts.

According to court documents, John Murray Rowe Jr., 63, of Lead, attempted to provide classified national defense information to the Russian government. According to the complaint, Rowe, who is originally from Massachusetts, was employed for nearly 40 years as a test engineer for multiple cleared defense contractors. In connection with his employment, Rowe held various national security clearances from SECRET to TOP SECRET//SCI (Sensitive Compartmented Information) and worked on matters relating to the U.S. Air Force’s aerospace technology, among other things. After committing a number of security violations and revealing a fervent interest in Russian affairs, including whether he could obtain a security clearance from the Russian government, Rowe was identified as a potential insider threat and terminated from employment.

Based on his conduct, FBI began an undercover operation to determine Rowe’s willingness to communicate classified information to a foreign government. In March 2020, Rowe met with an undercover FBI employee who posed as an agent of the Russian government. Over the course of the next eight months, Rowe exchanged over 300 emails with the purported Russian agent, confirming his willingness to work for the Russian government and discussing his knowledge of classified information relating to U.S. national security and military interests. In one email, Rowe explained, “If I can’t get a job here then I’ll go work for the other team.” In another email, Rowe disclosed national defense information classified as SECRET that concerned specific operating details of the electronic countermeasure systems used by U.S. military fighter jets.

Rowe is charged with attempting to communicate national defense information to aid a foreign government and will make his initial court appearance in the District of South Dakota on Friday. If convicted, he faces a maximum statutory penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Jennifer A. Williams for the Eastern District of Pennsylvania; Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division and Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Field Office made the announcement.

The FBI’s Philadelphia Field Office is investigating the case with valuable assistance provided by the Lead Police Department in South Dakota.

Assistant U.S. Attorney Sarah Wolfe for the Eastern District of Pennsylvania and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section   are prosecuting the case.

Valuable assistance was provided by the U.S. Attorney’s Office for the District of South Dakota, the U.S. Air Force Office of Special Investigations, and the FBI’s Minneapolis Field Office and Rapid City Resident Agency.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Emily Baier, 28, of West Chester, PA, was sentenced to 14 months in prison and five years of supervised release by United States District Judge Eduardo C. Robreno for falsely claiming and taking approximately $47,000 in pandemic unemployment compensation authorized by the CARES Act. Her co-conspirator, Jacob Fulton, 33, of Coatesville, PA, was sentenced to one and a half years in prison for his role the scheme earlier this month.

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. The defendant took advantage of and unlawfully profited from the PUA program by submitting and continuing to certify fraudulent PUA claims for herself and for inmates of Chester County Prison, including her co-conspirator, knowing that neither she nor these inmates were entitled to these benefits.

Specifically, in May 2020, the defendant filed a PUA claim for herself knowing that she was not eligible for such benefits because she was not unemployed as a result of the COVID-19 pandemic. Baier continued to submit weekly submissions of certification that she and her co- conspirator—who was at that time an inmate of Chester County Prison—were eligible for these benefits, all while knowing that neither she nor her co-conspirator were eligible for these benefits. Then, between July and August 2020, the defendant schemed with her co-conspirator to file PUA claims on behalf of at least two other inmates and take a cut of the claim payments for themselves. In September 2021, the defendant pleaded guilty mail fraud and conspiracy to commit mail fraud based on this conduct.           

“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 unlawfully are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. Baier fraudulently obtained thousands of dollars in funds that could have helped struggling individuals.”

“Those who think they can exploit the system by stealing from the PUA Program should take notice of the sentence Baier received,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “We will continue to use all resources at our disposal to investigate and hold accountable fraudsters like Baier.”

“Emily Baier engaged in a scheme with her co-defendant to defraud the Pennsylvania Pandemic Unemployment Assistance (PUA) program by obtaining personal information from inmates in Chester County Jail and submitting fraudulent claims for PUA benefits on behalf of those inmates even though they were incarcerated and not able and available to work. The U.S. Department of Labor Office of Inspector General and its partners, such as the Pennsylvania Department of Labor and Industry, will continue to work together to preserve the integrity of unemployment compensation benefit programs by vigorously pursuing those who commit this type of fraud,” stated Special Agent-In-Charge Syreeta Scott, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

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 J. Jeanette Kang.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Devron Brown, 50, formerly of Philadelphia, PA, pleaded guilty before 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 June 2021, the defendant was indicted on eleven felony counts: two counts of bank fraud and attempted bank fraud, and nine counts of money laundering for 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. Following his arrest on the indicted charges, Brown failed to appear in court as required and absconded as a fugitive, in violation of the terms of his pretrial release. He was apprehended by authorities and returned to the Eastern District of Pennsylvania earlier this year to face the charges against him. 

“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.”

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.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Bernard Giddings, 26, of Philadelphia, PA, pleaded guilty before United States District Court Judge Michael M. Baylson to illegally possessing a firearm as a felon following an incident on a state highway earlier this year.

On March 4, 2021, Pennsylvania State Police responded to an incident that took place on Interstate-76 at approximately 2:30 p.m. Following leads developed in the investigation, PSP investigators obtained a search warrant for the Giddings’ residence in Philadelphia. Upon execution of the search warrant, Troopers recovered a loaded semi-automatic firearm and an extended magazine under the bed where Giddings 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 defendant was thereafter charged by Indictment with one count of possession of a firearm by a felon.

“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 levels this year,” said U.S. Attorney Williams. “Bernard Giddings admitted to illegally possessing a firearm which was recovered by Pennsylvania State Police after investigating a serious incident. 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 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 Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms & Explosives, and is being prosecuted by Special Assistant United States Attorney Martin Howley.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that The Department of Justice has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. Locally, the Pennsylvania Commission on Crime and Delinquency was awarded $282,428 to administer PSN grant funds in the Eastern District of Pennsylvania.

The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.

“This announcement and grant funding from the Department of Justice could not come at a better time for the Eastern District of Pennsylvania, and specifically for Philadelphia – a city that is experiencing an epidemic of gun violence,” said U.S. Attorney Williams. “A great deal of ink has been spilled in the last few weeks by many as we all struggle to identify and combat the reasons behind the city’s record number of homicides this past year. In 2021, this Office has steadfastly pledged our support and partnership in myriad ways to the local agencies tasked with investigating and prosecuting violent criminals, including our ‘All Hands on Deck’ initiative and the recently announced DOJ-OJP Public Safety Partnership. While it may be the purview of others to debate the reasons why violence remains so intractable in Philadelphia, our job remains the same: prosecuting criminals and deterring future unlawful acts. With this grant from the Department, the PSN program in our District will continue to be an important tool in accomplishing that mission.”

Grant funds will support the PSN strategy within the Eastern District of Pennsylvania with the continuation of Special Assistant U.S. Attorneys (SAUSA) handling firearms cases, with the goal of disrupting drug and firearm trafficking operations in and around Philadelphia. SAUSAs are cross-designated prosecutors from partner agencies at the state and local levels who focus on violent crime cases in specific geographic areas. More broadly, the PSN strategy also includes prosecution of all types of federal violent crime, including but not limited to, Hobbs Act robberies, car-jackings, murder-for-hire, armed robberies, and firearms trafficking.

“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”

“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”

In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.

PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.

For a list of all grantees, please visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/FY21-Project-Safe-Neighborhoods-Awards.pdf  

Information about these and other FY 2021 grant awards from the Office of Justice Programs can be found online at the OJP Grant Awards Page.

PHILADELPHIA, PA – United States Attorney Jennifer Arbittier Williams announced that the owner of LAN Apothecary, Inc. (“LAN Apothecary”) in Philadelphia has agreed to pay $1,000,000 to resolve liability under the False Claims Act.

LAN Apothecary and owner-pharmacist Bachtu (“Theresa”) M. Phan will jointly pay $1,000,000 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare for prescription medications that were not actually dispensed during the period from January 1, 2014 to June 29, 2019. These medications include, but are not limited to, Januvia, Janumet, Zetia, Tradjenta, Linzess, Advair Diskus, Namenda XR, and Dexilant. As part of the resolution with the United States, LAN Apothecary and Theresa Phan will enter into a corporate integrity agreement  with the Department of Health and Human Services, Office of the Inspector General. The integrity agreement requires them to undertake substantial compliance obligations and to contract with an Independent Review Organization that will conduct quarterly third-party audits of their Medicare and Medicaid claims and drug inventory.

“Pharmacies and pharmacists have a responsibility to serve as gatekeepers of a closed system of prescription drug distribution. That responsibility was allegedly abused for profit here,” said U.S. Attorney Williams. “Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse.”

“Pharmacies are responsible for all claims they submit to Medicare,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayer dollars are only spent on bona fide medical claims.”

The settled civil claims are allegations only. There has been no determination of civil liability.

This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Deborah W. Frey and Auditor George Niedzwicki.    

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Tony Ren, 58, of Philadelphia, Pennsylvania was convicted today at trial for bribing a public official from the Occupational Safety and Health Administration (OSHA). The charges arose from Ren’s attempts to bribe an OSHA Compliance Safety and Health Officer in order to induce him not to report safety violations at a Philadelphia construction site run by Ren, and to eliminate previous safety violations and corresponding fines.

In September 2021, the defendant was charged by Indictment with two counts of bribery. According to the Indictment, in October 2017, the OSHA official conducted an inspection of a worksite on Arch Street in response to an imminent hazard report. During the inspection, the official observed numerous violations of OSHA standards including debris in passageways, electrical issues, holes in the floor, and gas tanks with broken pressure gauges. The Indictment alleges that on two separate dates in November 2017, Ren offered $1,500 cash bribes to the OSHA official in exchange for the official falsifying the inspection results and agreeing not to report the violations so that the defendant could avoid the substantial penalties that would follow.

“OSHA inspections and standards exist for a reason: to prevent injuries and protect workers,” said U.S. Attorney Williams. “As the evidence presented at trial showed, the defendant attempted to subvert this system of protections by bribing an official to look the other way on multiple workplace safety violations. This case should serve as a warning to all employers that our Office will investigate and prosecute fully this type of corruption.”

The case was investigated by the United States Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud and is being prosecuted by Assistant United States Attorney Mary Kay Costello.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Ricardo Torres, 37, of Philadelphia, PA, was convicted today at trial of illegally possessing a firearm when he knew was prohibited from doing so because he had been previously convicted of a felony.

In September 2019, the defendant was Indicted for being a felon in possession of a firearm, charges which stemmed from a traffic stop conducted by Philadelphia Police officers in April of that year. The incident unfolded when Torres was driving in the area of C Street and Allegheny Avenue in the Kensington neighborhood.  Philadelphia Police officers on routine patrol observed that one of his vehicle’s brake lights was not working, so the officers conducted a traffic stop. When the defendant leaned forward to retrieve his vehicle documents, one of the officers twice observed a bulge in Torres’ waistband, underneath his sweatshirt. One officer then asked Torres to step out of his car and began patting him down, immediately locating a loaded semiautomatic pistol inside Torres’ waistband. The defendant had been convicted on three prior occasions of felony narcotics charges and was therefore barred from legally 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, Ricardo Torres illegally possessed a firearm which 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 investigation demonstrates our dedicated partnership with the Philadelphia Police Department and the US Attorney’s Office,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “We will remain committed to investigating and preventing convicted felons, like Torres, from possessing firearms and threatening the safety of our communities.”  

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

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Nelson S.T. Thayer, Jr.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Joshua Obed Altruz, 26, of Bethlehem, PA, was sentenced to 14 years and one month in prison, five years of supervised release, and was ordered to pay a $1,000 fine and restitution by United States District Judge Edward G. Smith for committing two armed robberies on February 6, 2020.

In July 2021, the defendant pleaded guilty to an Indictment charging him with two counts of Hobbs Act robbery, and two counts of using, carrying, and brandishing a firearm during a crime of violence. The charges stemmed from two incidents on the same afternoon last February: a robbery of the Taylor Family Fuel and Mini Mart, followed by a robbery of a Rite Aid pharmacy a few hours later. Each of the crimes were captured on surveillance, which ultimately enabled law enforcement to link the robberies back to the same assailant. In both videos, the defendant was seen wearing the same clothing, brandishing a distinctive two-tone black and brown semi-automatic Glock pistol, and fleeing the scene in a gold Honda Civic with tinted windows and an indentation on the driver side door.

Immediately after the second robbery at the pharmacy, Bethlehem Police Department officers responded to a call and conducted a traffic stop on a car matching the description above. The defendant was found in possession of the distinctive handgun, which was fully loaded with ten rounds of ammunition.

“This defendant brazenly robbed two neighborhood businesses, and for that he will now spend over fourteen years in prison,” said U.S. Attorney Williams. “Hopefully others will learn from the example set here -- if you rob a business in our District with a firearm, you are going to face serious federal prison time as a result. Our Office is committed to being ‘All Hands On Deck’ working with our law enforcement partners to bring criminals to justice.”

“Determined to score money and pills, Joshua Altruz committed two armed robberies in less than four hours,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “He did so toting a fully loaded gun, which he pointedly showed his victims. Fortunately, Bethlehem police officers quickly saw and stopped Altruz’s vehicle, taking him into custody before he could target any other businesses. Getting violent criminals like this off the street is a priority for the FBI and our local law enforcement partners, as we all work our hardest to keep the public safe.”

The case was investigated by the Federal Bureau of Investigation, with assistance from the City of Bethlehem Police Department and the Northampton County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.

PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Timothy F. Shawl, M.D., 62, of Garnet Valley, Pennsylvania was sentenced to three years in prison, and two years of supervised release United States District Judge R. Barclay Surrick for his unlawful distribution of controlled substances in connection with his medical practice based in Philadelphia.

In January 2020, the defendant pleaded guilty to five counts of unlawful distribution of controlled substances, admitting that he wrote prescriptions for controlled substances that were outside the usual course of professional practice and not for a legitimate medical purpose. Shawl was charged by Indictment in September 2019, as part of a nationally coordinated healthcare fraud enforcement action across seven federal districts, involving more than $800 million in loss and more than 3.25 million opioid pills distributed in “pill mill” clinics.  Specifically, Shawl wrote prescriptions, usually for oxycodone, for certain patients without seeing, treating or examining them; generally, certain patients just picked up an envelope with their prescription from the receptionist at Shawl’s office. For one patient, he had not conducted a physical examination in at least five years, despite regularly prescribing controlled substances. This patient died on January 7, 2019, just three days after Shawl last prescribed oxycodone for her, and the cause of death was drug intoxication.

“This sentence should serve as a warning to any medical professional engaged in this type of illegal behavior,” said U.S. Attorney Williams. “As a physician, Shawl was well aware of the inherently dangerous nature of the drugs he cavalierly prescribed, sometimes to vulnerable people struggling with addiction, and he did so despite taking an oath to do no harm. He is no better than a street-level drug dealer; in fact, in some ways he is far worse.”

“Our community has felt the negative effects of pill mills operated by doctors like Shawl, who use their positions of trust to become drug dealers for personal profit, for far too long,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “But the FBI and our law enforcement partners are fighting back, and we will continue to tirelessly pursue unethical doctors who write illegal opioid prescriptions that are plainly outside their professional practice. Today’s sentencing is a testament to the dedication and teamwork in combating the opioid crisis in the Philadelphia area.”

The case was investigated by the Federal Bureau of Investigation with assistance from task force officers from the Philadelphia Police Department and Pennsylvania Office of the Attorney General, and is being prosecuted by Trial Attorney Debra Jaroslawicz of the Criminal Division’s Fraud Section.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Jacob Fulton, 33, of Coatesville, PA, was sentenced to one year and six months in prison, five years of supervised release, and ordered to pay full restitution by United States District Judge Eduardo C. Robreno for falsely claiming and taking approximately $32,000 in pandemic unemployment compensation authorized by the CARES Act.

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. The defendant took advantage of the program by unlawfully submitting fraudulent PUA claims for himself and for inmates of Chester County Prison, knowing that neither he nor these inmates were entitled to these benefits.

In May 2020, the defendant filed a PUA claim for himself knowing that he was not eligible for such benefits because he was not unemployed as a result of the COVID-19 pandemic. After Fulton was arrested and sent to Chester County Prison in July 2020, he continued to submit weekly certifications that he was eligible for these benefits (with the aid of his co-defendant), all while knowing that he was not eligible for these benefits because he was in prison. At the same time, Fulton conspired to file PUA claims on behalf of at least two other inmates and take a cut of the claim payments for himself. In August 2021, the defendant pleaded guilty to charges of mail fraud and conspiracy to commit mail fraud stemming from the scheme to file false PUA claims for himself and others.

“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. Fulton fraudulently obtained thousands of dollars in funds that could have helped struggling individuals.”

“The CARES ACT was designed to provide assistance to hard working Americans and their families suffering from financial hardships. Today’s sentence sends the message that the FBI is committed to protecting tax payer funded programs and will aggressively investigate fraudsters like Fulton and his fellow inmates who seek to abuse such programs,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division.

“Fulton thought he could get rich at the expense of Americans who desperately needed the Pandemic Unemployment Assistance,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty.  “His sentence today shows just how much such criminal conduct will not be tolerated. Those contemplating similar conduct should take notice”

“Jacob Fulton engaged in a scheme with his co-defendant to defraud the Pennsylvania Pandemic Unemployment Assistance (PUA) program by obtaining personal information from inmates in Chester County Jail and submitting fraudulent claims for PUA benefits on behalf of those inmates even though they were incarcerated and not able and available to work. The U.S. Department of Labor Office of Inspector General is grateful for our partnerships with the Pennsylvania Department of Labor and our many law enforcement partners. We also want to thank the U.S. Attorney’s Office for their continued efforts to prosecute those who violate public benefit programs and commit fraud,” stated Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General. 

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 J. Jeanette Kang.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Darrell Johnson, 36, of Philadelphia, Pennsylvania, was sentenced to 14 years and one day of imprisonment by United States District Judge Wendy Beetlestone, after pleading guilty to committing three gunpoint robberies and brandishing a firearm during the course of his three-day crime spree in April 2017.

Each of Johnson’s crimes was captured on surveillance video from the stores he robbed, which ultimately enabled law enforcement to link the robberies back to the same assailant.  Johnson first robbed a 7-Eleven convenience store in the early morning hours of April 22, 2017. Video surveillance inside the store captured Johnson pointing a distinctive silver and black, 9mm semi-automatic pistol at store employees and demanding all the money in the store. Just a few hours after he robbed the 7-Eleven store, Johnson robbed a Dunkin Donuts restaurant, wearing the same clothing and pointing the same silver and black firearm at the employees and demanding money from the register. Just before entering Dunkin Donuts, the defendant was captured on surveillance video doing warm-up calisthenics and stretching exercises with the gun in his hand. On April 25, 2017, he was captured by Philadelphia Police in the act of robbing a Rite Aid pharmacy, again with a silver and black semi-automatic firearm. A later forensic examination of the firearm recovered at Rite Aid and a bullet recovered at the 7-Eleven crime scene definitively placed the gun at both robberies.

In December 2017, a grand jury issued a seven-count superseding indictment against the defendant, charging him with three counts of robbery which interferes with interstate commerce (Hobbs Act robbery); three counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence; and one count of possessing a firearm as a convicted felon. In March 2020, the defendant pled guilty to 6 counts in the superseding indictment.

“This defendant was determined to commit armed robbery, so much so he did it three times in the span of only four days,” said U.S. Attorney Williams. “His complete disregard for others and for the law is appalling. Hopefully others will learn from this example: if you rob a business in Philadelphia with a firearm, you are going to face serious federal prison time as a result. Our Office is committed to being ‘All Hands On Deck’ working with our law enforcement partners to bring criminals to justice.”

"The FBI is committed to keeping the Philadelphia area and its citizens safe from predators like Darrell Johnson," said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. "Today’s sentencing sends a message to violent criminals that if you terrorize our community, we will find you and bring you 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, with assistance from the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Alison Donahue Kehner and Michael R. Miller.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Christopher Gehris, 46, of Phoenixville, PA, was charged by Information with one count of embezzlement from a program receiving federal funds.

According to the Information, from November 2013 until July 2019, the defendant was the Director of Finance/Business Manager of the Phoenixville Area School District (PASD). The Information alleges that Gehris misappropriated funds from PASD bank accounts, directed unauthorized payments to himself, made false entries, and fabricated receipts, all in order to embezzle more than $90,000 in school funds earmarked for student sporting events, field trips, summer programs and other school events. For the years during the charged conduct, the PASD received federal funds for school programming.

“The defendant allegedly stole nearly $100,000 from a public school district, money which was specifically allocated for student activities meant to enhance their educational experience,” said U. S. Attorney Williams. “Criminals that embezzle public money from schools are ripping off hundreds of students while also ripping off all taxpayers who fund them.”

"The FBI is committed to bringing justice to those, like Gehris, who dare to steal from programs funded with tax payer dollars," said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. "In exploiting the trust the Phoenixville Area School District placed in him, Gehris stole from children and deprived them of meaningful educational experiences. The FBI will continue to work with our law enforcement partners to protect government-funded programs and investigate those who engage in similar greed-based schemes."

"Thank you to the United States Attorney’s Office for bringing these charges against Christopher Gehris and holding him accountable for stealing from the coffers of the Phoenixville School District, students, parents, and taxpayers," said Chester County District Attorney Deb Ryan. "It is a clear violation of trust for a school leader to take advantage of his position to the detriment of those children he is supposed to serve. Our children deserve better.”

If convicted, the defendant faces a maximum possible sentence of 10 years in prison and a $250,000 fine.

The case was investigated by Federal Bureau of Investigation, the Phoenixville Police Department and is being prosecuted by Assistant United States Attorney Terri A. Marinari and the Chester County District Attorney’s Office.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Moshe Porat, 74, 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 convicted today after trial on charges that he conspired and schemed to deceive the school’s applicants, students, and donors into believing that the school offered top-ranked business degree programs, so that they would pay tuition and make donations to Temple.

In April 2021, Porat was charged by Indictment with one count of conspiracy to commit wire fraud and one count of wire fraud. The charges stemmed 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.]

Porat 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.

“Today, a jury reaffirmed that wire fraud is a federal crime even when perpetrated within the system of higher education in the United States,” said U.S. Attorney Williams. “Moshe Porat misrepresented information about Fox’s application and acceptance process, and therefore about the student-body itself, in order to defraud the rankings system, potential students, and donors. This case was certainly unusual, but at its foundation it is just a case of fraud and underlying greed. We respect the jury’s verdict and thank its members for their service.”

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 MaryTeresa Soltis.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced that Barrie Osborne, 76, of Celebration, Florida, was charged by Indictment with with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering in connection with a scheme to fraudulently obtain more than $7 million in Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL) and pre-pandemic Small Business Administration (SBA) loans, and to launder the proceeds of the illegal scheme.

The Indictment alleges that, beginning in about January 2018 until August 2021, the defendant, a professional tax preparer, conspired with at least eight California-based individuals to apply for SBA, PPP, and EIDL loans on behalf of their respective businesses. All of the businesses in question were dormant companies or companies with limited business operations. In exchange for fees, Osborne allegedly made the businesses appear to be functioning companies with operations and employees by creating fake documents, including fake bank statements and fictitious tax documents. The defendant also provided a “script” to scheme participants to use in calls with lenders. Osborne and the California co-conspirators allegedly obtained over $7.3 million in PPP, EIDL, and SBA loans. 

The Indictment further alleges that the defendant created “forgiveness plans” which were designed to disguise the fraud proceeds as payroll expenses in order to make it appear that each loan recipient was meeting the SBA requirement to devote a percentage of the PPP funds to payroll.  This increased the likelihood that each loan recipient – including one of the defendant’s own companies - would qualify for loan forgiveness.

“PPP, SBA and EIDL funds are intended to help American small-businesses continue paying their employees, even if revenues have dropped dramatically,” 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. As alleged, Osborne led a conspiracy to fraudulently obtain $7 million in funds that could have helped struggling businesses and individuals.”

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

This case was investigated by the Small Business Association Office of Inspector General, IRS-Criminal Investigation Philadelphia, Homeland Securitu Investigations’ Philadelphia Field Office, and the FBI’s Philadelphia Field Office, and is being prosecuted by trial attorneys David A. Stier and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant United States Attorney Judy G. Smith for the Eastern District of Pennsylvania.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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

A Florida tax preparer was charged in an indictment filed in the Eastern District of Pennsylvania yesterday with scheming to fraudulently obtain more than $7 million in Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL) and pre-pandemic Small Business Administration (SBA) loans, and to launder the proceeds of the illegal scheme.

The indictment alleges that, beginning in or around January 2018, Barrie J. Osborne, 76, of Celebration, conspired with at least eight California-based individuals to apply for SBA, PPP, and EIDL loans on behalf of their respective businesses that were dormant companies or companies with limited business operations. In exchange for fees, Osborne made the businesses appear to be functioning companies with operations and employees by creating fake documents, including fake bank statements and fictitious tax documents. Osborne also provided a “script” to scheme participants to use in calls with lenders. Osborne and the California co-conspirators allegedly obtained over $7.3 million in PPP, EIDL, and SBA loans. 

The indictment further alleges that Osborne created “forgiveness plans” that directed the co-conspirators to transfer the fraud proceeds as purported payroll expenses for each of the companies that obtained PPP funds, including one of his own companies. These so-called “forgiveness plans” were designed to disguise the proceeds as payroll expenses and make it appear that the loan recipient was meeting the SBA requirement that a percentage of the PPP funds be used for payroll, thus increasing the likelihood that the loan recipient would qualify for loan forgiveness. Osborne is charged with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Association Office of Inspector General (SBA-OIG) Eastern Region; Special Agent in Charge Yury Kruty of IRS-Criminal Investigation (IRS-CI) Philadelphia Field Office; Special Agent in Charge Brian Michael of Homeland Security Investigations (HSI) Philadelphia Field Office; and Acting Assistant Director Jay Greenberg of the FBI's Criminal Investigative Division made the announcement

This case was investigated by the SBA-OIG, IRS-CI, HSI’s Philadelphia Field Office, and the FBI’s Philadelphia Field Office. 

Trial Attorneys David A. Stier and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Judy G. Smith of the U.S. Attorney’s Office for the Eastern District of Pennsylvania are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866 720 5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Thomas Gavin, 78, of Pottstown, PA, was sentenced to one day in prison, three years of supervised release with the first year to be served on home confinement, a $25,000 fine and was ordered to pay $23,385 in restitution by United States District Court Judge Mark A. Kearney for selling an antique rifle dating back to the American Revolution that he had stolen from a local museum.

In July 2021, the defendant pleaded guilty to an Information charging him with a single count: disposal of an object of cultural heritage stolen from a museum. As part of his guilty plea, Gavin admitted that he had stolen the Christian Oerter Rifle from the Valley Forge State Park Museum in 1971.  The rifle is a rare surviving 1775 rifle made by Christian Oerter, a master gunsmith from the Christian Springs Philadelphia-area gun-making center. The rifle is known to be one of two such rifles to have survived with its original flint mechanism bearing the maker’s name, site and date of manufacture, and is worth in excess of $175,000. The other Christian Oerter rifle is in the Royal Collection at Windsor Castle in England.  Gavin also admitted that he kept the rifle for over 40 years and sold it in 2018, along with other items that he had stolen from museums back in the 1970’s. 

“Stealing an artifact from a museum – literally a piece of American history – is a serious federal offense,” said U.S. Attorney Williams. “After four decades, justice finally caught up with this defendant. Thanks to the work of our law enforcement partners, the Christian Oerter rifle is safely back where it can be enjoyed by all Americans.”

“Thomas Gavin kept the stolen Oerter rifle squirreled away for decades, depriving all of us of this Revolutionary piece of our past,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “It is way past time for Mr. Gavin to be held accountable for his actions. This case is a great example of the FBI’s commitment to protecting and preserving the cultural property that helps tell the story of our nation.”

The case was investigated by members of the Federal Bureau of Investigation’s Art Crime Team and detectives with the Upper Merion Township Police Department, and is being prosecuted by Assistant United States Attorney K.T. Newton.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Robert Costello, 54, of Bethlehem, PA, was sentenced to twelve years and seven months in prison, and lifetime supervised release by United States District Court Judge Joseph F. Leeson, Jr. for child pornography offenses.

In March 2021, Costello pleaded guilty to all counts against him: three counts of receipt of child pornography, one count of access with intent to view child pornography, and one count of possession of child pornography. The defendant admitted to receiving sexually explicit images of children over the Internet and possessing thousands of sexually explicit images and videos of children on several devices that he kept and stored at his residence. During the time that he committed these crimes, Costello was employed as Assistant Commissioner of the New York City Department of Probation.

“The defendant held a position of public trust paid by taxpayer dollars as an Assistant Commissioner with the City of New York,” said U.S. Attorney Williams. “And at the same time, he was also downloading and storing sexually exploitative images of children – thus creating demand for those depictions to be produced and children to be victimized. Our Office will continue to work with our law enforcement partners in all jurisdictions to investigate and prosecute child sexual exploitation offenses – no matter what profession or status the offenders may hold.”

“Sexually exploiting children is a terrible crime, made even more reprehensible when the perpetrator is someone in a position of public trust,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia, “Robert Costello, as an Assistant Commissioner of New York City’s probation department, violated that trust, and now he will face the consequences. HSI will continue to pursue cases like this one, to protect children and ensure that those responsible are held accountable for their crimes.”

The case was investigated by the Department of Homeland Security Investigations and Bethlehem Township Police Department and is being prosecuted by Assistant United States Attorneys Francis A. Weber and Kelly Harrell and Department of Justice Trial Attorney Jessica Urban of the Child Exploitation and Obscenity Section (CEOS).

PHILADELPHIA –United States Attorney Jennifer Arbittier Williams announced that the following defendants were charged with fraudulently obtaining emergency unemployment benefits related to COVID-19. Each of the following defendants was charged with one count of mail or wire fraud and one count of theft of government funds for obtaining Pandemic Unemployment Assistance (PUA) funds while working for the Philadelphia Police Department (PPD) and also collecting his or her City paycheck:

Shannon Reynolds, age 25, of Philadelphia, PA; Najah Harrell, age 32, of Philadelphia, PA; Korey Kinard, age 29, of Philadelphia, PA; Keely Maude, age 23, of Philadelphia, PA; Tashika White, age 50, of Cheltenham, PA; Paulette Johnson, age 55, of Philadelphia, PA; Monica Pelzer, age 45, of Philadelphia, PA; and Yarelis Feliciano, age 28, Philadelphia, PA.

Seven of the eight defendants are employed as radio dispatchers for the PPD: Reynolds, Harrell, Kinard, Maude, White, Pelzer and Feliciano. The eighth defendant, Johnson is employed as a clerk for the PPD. Each defendant is charged in a separate Indictment with the two counts noted above.

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

Each of the defendants is alleged to have submitted weekly certifications stating that they were not employed and were ready, willing, and able to work each day. The Indictments charge that these statements were false because each defendant was employed at the time by PPD. According to the Indictments, as part of the weekly certifications, each defendant also certified that he or she was not earning any wages or grossly unreported true wages to secure eligibility. However, these statements are also allegedly false according to PPD payroll records. As a result of these false statements, each defendant received PUA funds for multiple weeks in which he or she also collected his or her PPD salary.

“Pandemic Unemployment Assistance funds are intended to help Americans who are not working or who have experienced dramatically reduced working hours due to the pandemic, not people who are already gainfully employed,” 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. As alleged, these eight defendants fraudulently obtained funds that could have helped struggling individuals.”

“It should go without saying that, if you’re a) employed, and b) working for a law enforcement agency, applying for any sort of unemployment compensation is a really bad decision,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “It’s particularly disappointing when people with steady paychecks coming in are taking money set aside for those most affected by the pandemic. The FBI will continue to hold accountable anyone defrauding the government and taxpayers like this.”

These cases were investigated by the Federal Bureau of Investigation, United States Department of Labor – Office of Inspector General, and the Philadelphia Police Department with assistance from the Pennsylvania Department of Industry and Labor. These cases are being prosecuted by Assistant United States Attorney Timothy Lanni.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. 

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Kenneth Blakeney, 29, of Philadelphia, PA, was sentenced to nine years in prison and three years of supervised release by United States District Court Judge Gene E. K. Pratter for being a felon in possession of a firearm.

In June 2021, the defendant was convicted at trial for being a felon in possession of a gun stemming from an incident the previous year. In March 2019, Philadelphia Police Officers found a loaded gun in the defendant’s possession during a traffic stop. The defendant was a convicted felon and was not allowed by law to possess a firearm. When officers attempted to recover the gun, the defendant fled from the police, leading officers on a car chase for multiple blocks until the defendant eventually jumped out of his car and ran. The defendant was arrested several months later and was charged by Indictment in October 2019.

“Being a felon illegally in possession of a firearm is a serious offense, particularly in Philadelphia where gun violence is rampant,” 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: our ‘All Hands on Deck’ initiative uses 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.”

“Today’s sentence ensures that a violent criminal is taken off the streets for a long time,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division.  “Keeping our communities safe from violent felons like Blakeney will always be our top priority.  I would like to thank our partners at the Philadelphia Police Department and the U.S. Attorney’s office for their continued support in our joint effort to maintaining public safety.”

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 J. Jeanette Kang.

PHILADELPHIA – United States Attorney for the Eastern District of Pennsylvania Jennifer Arbittier Williams, the United States Attorneys for the Middle and Western Districts of Pennsylvania, and the Pennsylvania Sheriffs’ Association are joining forces this holiday season to educate airline travelers on the safe and proper way to transport firearms and thereby reduce risk and delay to the traveling public.

Transportation Security Administration (TSA) officers in Pennsylvania are on pace to seize a record number of firearms at Pennsylvania airport security checkpoints in 2021, despite greatly reduced air traffic due to the pandemic. Most of the firearms seized by TSA are loaded.  Firearms at security checkpoints pose a serious security risk to the public and to TSA officers.  Passengers who bring firearms to security checkpoints also disrupt the security screening process and delay travelers from getting to their departure gates.   

The number of airline travelers is expected to surge over the next six weeks, so it is important for the public to hear this message now. Responsible gun owners can protect the public by personally and carefully checking to make sure that their carry-on bags do not contain firearms.   

“By partnering with the Pennsylvania Sheriffs’ Association to increase awareness and education regarding safe firearm transportation, we aim to reduce the number of firearms seized at airport security checkpoints. At the same time, to protect the traveling public and TSA employees, we will pursue all options including prosecution and referral of concealed carry permit holders to the appropriate Sheriff,” said U.S. Attorney Jennifer Arbittier Williams of the Eastern District of Pennsylvania, U.S. Attorney John C. Gurganus of the Middle District of Pennsylvania, and Acting U.S. Attorney Stephen R. Kaufman of the Western District of Pennsylvania in a joint statement.

“As the law enforcement body that processes licenses to carry in the Commonwealth, Pennsylvania Sheriffs support Second Amendments rights.  An overwhelming majority of Pennsylvanians with a license to carry are responsible gun owners, who comply with all state and federal laws, including not knowingly taking a weapon onto an airplane.  We appreciate the U.S. Attorneys’ concerns about concealed weapons and are glad to work with them to bring attention to this matter. Therefore, we encourage all gun owners to double and triple-check your carry-on luggage to make sure you have not forgotten to remove any weapons,” said Pennsylvania Sheriffs’ Association President, Joseph Groody, who also serves as the Schuylkill County Sheriff.

In October, Acting U.S. Attorney Kaufman announced a deterrent strategy to reduce the number of guns at Pittsburgh International Airport security checkpoints. In addition to possible criminal charges and stiff civil penalties, passengers with guns in carry-on bags could face revocation of their concealed gun carry permit due to negligence. As a result of the collaboration between the Pennsylvania Sheriffs’ Association and the U.S. Attorney’s Offices, County Sheriffs in all 67 counties have agreed to provide permit holders with information about safe firearm transport and to review referrals from federal authorities for possible revocation of the offender’s concealed carry permit.

Passengers are permitted to travel with firearms in checked baggage if they are properly packaged and declared at their airline ticket counter.  Firearms must be unloaded, placed in a hard-sided locked case, and packed separately from ammunition.  Then the locked case must be taken to the airline check-in counter to be declared.  Learn more at https://www.tsa.gov/travel/transporting-firearms-and-ammunition.

TSA may issue a $3,000 to $13,910 civil penalty to travelers who bring weapons to the security checkpoint. Civil penalties apply to travelers with or without concealed firearm carry permits because even though an individual may have a concealed carry permit, it does not allow for a firearm to be carried onto a plane.

The Pennsylvania Sheriffs’ Association is dedicated to preserving the time-honored Office of Sheriff in Pennsylvania and assisting the Commonwealth’s 67 County Sheriffs in acquiring the education and training required for law enforcement officers. More information on the organization is available at https://pasheriffs.org/.

PITTSBURGH, Pa. - The Pennsylvania Sheriffs’ Association and the United States Attorney’s Offices for the Western, Middle, and Eastern Districts of Pennsylvania are joining forces this holiday season to educate airline travelers on the safe and proper way to transport firearms and thereby reduce risk and delay to the traveling public.

Transportation Security Administration (TSA) officers in Pennsylvania are on pace to seize a record number of firearms at Pennsylvania airport security checkpoints in 2021, despite greatly reduced air traffic due to the pandemic. Most of the firearms seized by TSA are loaded. Firearms at security checkpoints pose a serious security risk to the public and to TSA officers. Passengers who bring firearms to security checkpoints also disrupt the security screening process and delay travelers from getting to their departure gates.

The number of airline travelers is expected to surge over the next six weeks, so it is important for the public to hear this message now. Responsible gun owners can protect the public by personally and carefully checking to make sure that their carry-on bags do not contain firearms.

“As the law enforcement body that processes licenses to carry in the Commonwealth, Pennsylvania Sheriffs support Second Amendments rights. An overwhelming majority of Pennsylvanians with a license to carry are responsible gun owners, who comply with all state and federal laws, including not knowingly taking a weapon onto an airplane. We appreciate the U.S. Attorneys’ concerns about concealed weapons and are glad to work with them to bring attention to this matter. Therefore, we encourage all gun owners to double and triple-check your carry-on luggage to make sure you have not forgotten to remove any weapons,” said Pennsylvania Sheriffs' Association President, Joseph Groody, who also serves as the Schuylkill County Sheriff.

“By partnering with the Pennsylvania Sheriffs’ Association to increase awareness and education regarding safe firearm transportation, we aim to reduce the number of firearms seized at airport security checkpoints. At the same time, to protect the traveling public and TSA employees, we will pursue all options including prosecution and referral of concealed carry permit holders to the appropriate Sheriff,” said U.S. Attorney Jennifer Arbittier Williams of the Eastern District of Pennsylvania, U.S. Attorney John C. Gurganus of the Middle District of Pennsylvania, and Acting U.S. Attorney Stephen R. Kaufman of the Western District of Pennsylvania in a joint statement.

In October, Acting U.S. Attorney Kaufman announced a deterrent strategy to reduce the number of guns at Pittsburgh International Airport security checkpoints. In addition to possible criminal charges and stiff civil penalties, passengers with guns in carry-on bags could face  revocation of their concealed gun carry permit due to negligence. As a result of the collaboration between the Pennsylvania Sheriffs’ Association and the U.S. Attorney’s Offices, County Sheriffs in all 67 counties have agreed to provide permit holders with information about safe firearm transport and to review referrals from federal authorities for possible revocation of the offender’s concealed carry permit.

Passengers are permitted to travel with firearms in checked baggage if they are properly packaged and declared at their airline ticket counter. Firearms must be unloaded, placed in a hard-sided locked case, and packed separately from ammunition. Then the locked case must be taken to the airline check-in counter to be declared. Learn more at https://www.tsa.gov/travel/transporting-firearms-and-ammunition.

TSA may issue a $3,000 to $13,910 civil penalty to travelers who bring weapons to the security checkpoint. Civil penalties apply to travelers with or without concealed firearm carry permits because even though an individual may have a concealed carry permit, it does not allow for a firearm to be carried onto a plane. 

The Pennsylvania Sheriffs’ Association is dedicated to preserving the time-honored Office of Sheriff in Pennsylvania and assisting the Commonwealth’s 67 County Sheriffs in acquiring the education and training required for law enforcement officers. More information on the organization is available at https://pasheriffs.org/.

Collaboration includes statewide referrals to Sheriffs for review of concealed carry permits

Harrisburg - The Pennsylvania Sheriffs’ Association and the United States Attorney’s Offices for the Western, Middle, and Eastern Districts of Pennsylvania are joining forces this holiday season to educate airline travelers on the safe and proper way to transport firearms and thereby reduce risk and delay to the traveling public.

Transportation Security Administration (TSA) officers in Pennsylvania are on pace to seize a record number of firearms at Pennsylvania airport security checkpoints in 2021, despite greatly reduced air traffic due to the pandemic.  Most of the firearms seized by TSA are loaded.  Firearms at security checkpoints pose a serious security risk to the public and to TSA officers.  Passengers who bring firearms to security checkpoints also disrupt the security screening process and delay travelers from getting to their departure gates.  

The number of airline travelers is expected to surge over the next six weeks, so it is important for the public to hear this message now.  Responsible gun owners can protect the public by personally and carefully checking to make sure that their carry-on bags do not contain firearms.

“As the law enforcement body that processes licenses to carry in the Commonwealth, Pennsylvania Sheriffs support Second Amendments rights.  An overwhelming majority of Pennsylvanians with a license to carry are responsible gun owners, who comply with all state and federal laws, including not knowingly taking a weapon onto an airplane.  We appreciate the U.S. Attorneys’ concerns about concealed weapons and are glad to work with them to bring attention to this matter. Therefore, we encourage all gun owners to double and triple-check your carry-on luggage to make sure you have not forgotten to remove any weapons,” said Pennsylvania Sheriffs' Association President, Joseph Groody, who also serves as the Schuylkill County Sheriff.

“By partnering with the Pennsylvania Sheriffs’ Association to increase awareness and education regarding safe firearm transportation, we aim to reduce the number of firearms seized at airport security checkpoints.  At the same time, to protect the traveling public and TSA employees, we will pursue all options including prosecution and referral of concealed carry permit holders to the appropriate Sheriff,” said U.S. Attorney Jennifer Arbittier Williams of the Eastern District of Pennsylvania, U.S. Attorney John C. Gurganus of the Middle District of Pennsylvania, and Acting U.S. Attorney Stephen R. Kaufman of the Western District of Pennsylvania in a joint statement.

In October, Acting U.S. Attorney Kaufman announced a deterrent strategy to reduce the number of guns at Pittsburgh International Airport security checkpoints.  In addition to possible criminal charges and stiff civil penalties, passengers with guns in carry-on bags could face revocation of their concealed gun carry permit due to negligence.  As a result of the collaboration between the Pennsylvania Sheriffs’ Association and the U.S. Attorney’s Offices, County Sheriffs in all 67 counties have agreed to provide permit holders with information about safe firearm transport and to review referrals from federal authorities for possible revocation of the offender’s concealed carry permit.

Passengers are permitted to travel with firearms in checked baggage if they are properly packaged and declared at their airline ticket counter.  Firearms must be unloaded, placed in a hard-sided locked case, and packed separately from ammunition.  Then the locked case must be taken to the airline check-in counter to be declared.  Learn more at https://www.tsa.gov/travel/transporting-firearms-and-ammunition.

TSA may issue a $3,000 to $13,910 civil penalty to travelers who bring weapons to the security checkpoint.  Civil penalties apply to travelers with or without concealed firearm carry permits because even though an individual may have a concealed carry permit, it does not allow for a firearm to be carried onto a plane.

The Pennsylvania Sheriffs’ Association is dedicated to preserving the time-honored Office of Sheriff in Pennsylvania and assisting the Commonwealth’s 67 County Sheriffs in acquiring the education and training required for law enforcement officers.  More information on the organization is available at https://pasheriffs.org/.

###

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Caesar DiCrecchio, 60, of Voorhees, NJ, was sentenced to ten years and one month in prison, three years of supervised release and ordered to pay more than $8 million in restitution by United States District Court Judge Cynthia M. Rufe for defrauding the Philadelphia Wholesale Produce Market of over $7.8 million. 

In April 2021, the defendant pleaded guilty to two counts of wire fraud, one count of conspiracy to commit wire fraud, one count of money laundering conspiracy, one count of aggravated identity theft, and four counts of tax evasion, all of which allegedly caused more than $7.8 million in losses to the wholesale produce business in South Philadelphia.

DiCrecchio, the former President and CEO of the Produce Market, defrauded the Market by using company funds to pay $1.9 million in rent on his Stone Harbor, New Jersey shore house; converting into cash $1.1 million in checks drawn on the Market’s bank account and using the cash for his own benefit; causing $1.7 million in checks to be issued from the Market operating account payable to his friends or relatives; causing the Market to pay for the defendant’s personal credit card expenditures; converting $320,000 in checks that were payable to the Market and cashing them for his own benefit; skimming $2.6 million in cash from the pay gate at the Market’s parking lot, which he used to pay Market employees ‘under the table’ while keeping a substantial portion for his own use; and using Market funds to provide a $180,000 loan to a Market vendor, which the vendor repaid directly to DiCrecchio. The defendant concealed these expenditures in the Market’s books and records by directing that these payments be reflected as legitimate business expenditures, for example: notated as maintenance, snow removal, insurance, legal fees and other false expenditure entries.

DiCrecchio committed aggravated identity theft by cashing checks at a currency exchange using the name of an unwitting victim as the payee. Further, DiCrecchio conspired to engage in money laundering by agreeing with two unnamed individuals to conduct repeated money laundering transactions using money orders drawn on Market accounts and cashed at a currency exchange so that he could pay the rent at his shore house. In total, DiCrecchio laundered approximately $319,736 by purchasing money orders at the currency exchange using Market funds.

DiCrecchio also willfully evaded federal income tax over several years, by failing to report more than $2.1 million in income for tax years 2014 through 2017. DiCrecchio failed to report as income the proceeds of his fraud on the Market, as well as a car allowance, a pension allowance, and consulting income that he received from the Market. 

“As the President and CEO, DiCrecchio had a fiduciary duty to steward the Philadelphia Wholesale Produce Market honestly,” said U.S. Attorney Williams. “Instead, he stole small amounts here and there from various sources over many years in an attempt to hide the enormous scale and severity of his fraud: a more than $7.8 million loss. Our Office is committed to prosecuting this type of complicated financial fraud so that justice can be served for all victims.”

“For years, Caesar DiCrecchio used the Philadelphia Wholesale Produce Market like his own ATM, to the tune of almost $8 million,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “I’d call that wholesale fraud. Holding DiCrecchio responsible for his crimes is imperative, to send the message that stealing business funds for personal use isn’t such easy money after all.”

“Instead of accurately filing and paying his fair share of taxes, Mr. DiCrecchio chose to hide his income and use his business as his personal ATM,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Justice has been served today, as Mr. DiCrecchio is sentenced to federal prison.”

The case was investigated by the Federal Bureau of Investigation’s Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Michael T. Donovan.