Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Three Brothers Charged in Multi-District Scheme to Defraud the United States Postal Service, UPS, and Citizens BankRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that brothers Zumar Dubose, age 32, of Atlantic City, NJ; Abdush Dubose, age 34, of Boynton Beach, FL; and Kariem Dubose, age 40, of Philadelphia, PA; were charged by Superseding Indictment on charges of mail fraud, wire fraud, bank fraud, and conspiracy to commit money laundering. The charges arose out of a scheme to defraud the United States Postal Service, United Parcel Service, and Citizens Bank of hundreds of thousands of dollars.
The Superseding Indictment alleges that between October 2018 and April 2020, the defendants submitted over 1,200 fraudulent insured-parcel claims with USPS and UPS, and received almost $300,000 in ill-gotten gains. As part of the scheme, the Dubose brothers sent parcels to themselves using insured USPS postage and UPS tracking labels. They then filed fraudulent claims with USPS and UPS, claiming that these parcels were lost or damaged in transit, and attached sham proofs of value. The defendants used numerous e-mails, addresses and postboxes, bank accounts and bank cards, fake individual names, and fictitious corporations, including “Urmajesty Banktruckfit Solutions,” “Miworld Three Incorporated,” and “4 Entertainment Corporation,” which were incorporated in the State of New Jersey, and “Seeds of Beauty Incorporated,” which was incorporated in the State of Florida. The claim checks that the brothers received as part of this fraud scheme were deposited into Citizens Bank accounts opened in the names of these fake companies through ATMs in Philadelphia, Pennsylvania, and elsewhere.
The brothers also used the court system to perpetrate their fraud by filing false lawsuits against the victims. When USPS and UPS refused to issue or deliver some of the fraudulently-obtained claim checks, and when Citizens Bank placed a hold on a bank account that was used to deposit the fraud proceeds, the Dubose brothers were undeterred. The brothers repeatedly contacted USPS and UPS using fake names; defendant Zumar Dubose even filed lawsuits against UPS in various counties in New Jersey, using fake plaintiff names and falsely claiming that UPS did not pay him funds that he was owed. The defendants also filed a lawsuit against Citizens Bank, again pretending to be a different individual, in an effort to obtain the funds from their fraud scheme.
“These three brothers were allegedly brazen in their efforts to defraud businesses and the United States government via the postal services,” said Acting U.S. Attorney Williams. “According to the Superseding Indictment, it wasn’t enough simply to perpetrate a direct fraud by lying about insured parcels – when the companies suspected something wasn’t right, the defendants turned around and had the nerve to file lawsuits against the victim companies. We will vigorously investigate and prosecute this type of unabashed fraud.”
“Many people might be surprised to learn that the Post Office and United Parcel Service often work together moving millions of parcels and mail. Today however, I have the unfortunate role of announcing that they were victimized together,” said Damon Wood, Postal Inspector in Charge of the Philadelphia Division of the Postal Inspection Service. “The brothers Dubose devised an elaborate scheme to take advantage of the Post Office’s and UPS’s parcel insurance. Setting up fake email addresses, sending empty parcels, and filing bogus lawsuits, were among the tactics that demonstrate the lengths to which these brothers went to steel money from a private company and a government agency. A company and an agency, I might add, who have both worked tirelessly over the last 18 months to support our community and nation through the pandemic. Thanks to the detailed investigation of Inspectors from the Postal Inspection Service and by agents of Post Office Inspector General, this theft was stopped and the brothers behind it have been charged.”
“The United States Postal Service, Office of Inspector General is committed to protecting the sanctity of the United States Mail,” said Kenneth Cleevely, Special Agent in Charge, U.S. Postal Service Office of Inspector General. “I wish to commend our partners at the United States Postal Inspection Service and the United States Attorney’s Office for the Eastern District of Pennsylvania for their teamwork in bringing these subjects to justice”.
If convicted, defendant Zumar Dubose faces a maximum possible sentence of 340 years in prison, five years of supervised release, and a $5 million fine. Defendant Abdush Dubose faces a maximum sentence of 310 years of in prison, three years of supervised release, and a $3.75 million fine. Defendant Kariem Dubose faces a maximum possible sentence of 130 years of in prison, three years of supervised release, and a $2.25 million fine.
The case was investigated by the United States Postal Service Office of the Inspector General and United States Postal Inspection Service, and is being prosecuted by Deputy United States Attorney Louis D. Lappen and Assistant United States Attorney J. Jeanette Kang.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
NJ, NY, CA Defendants Indicted for Nationwide Copyrighted IPTV Theft SchemeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams and Assistant Attorney General Kenneth A. Polite, Jr. announced that Bill Omar Carrasquillo, 35, of Swedesboro, NJ; Jesse Gonzales, 42, of Pico Rivera, CA; and Michael Barone, 36, of Richmond Hill, NY, were charged by Indictment with crimes arising out of a wide-ranging and lucrative copyright infringement scheme.
According to the Indictment, from about March 2016 until at least November 2019, the defendants operated a large-scale internet protocol television (IPTV) theft scheme in which they fraudulently obtained cable television accounts and then resold copyrighted content to thousands of their own subscribers, who could then stream or playback content. The defendants also allegedly made fraudulent misrepresentations to banks and merchant processors in an effort to obtain merchant processing accounts. During the period of their scheme, the defendants earned more than $30 million. Carrasquillo, in particular, allegedly converted a large portion of his profits into homes and dozens of vehicles, including high-end sports cars. When agents attempted to seize those items pursuant to judicially-authorized warrants, Carrasquillo made false statements about and attempted to hide some of those vehicles, including a Freightliner recreational vehicle and a McLaren sports vehicle.
A detailed listing of charges against individual defendants is as follows:
Bill Omar Carrasquillo is charged with: one count of conspiracy; one count of violating the Digital Millenium Copyright Act; one count of reproduction of a protected work; 19 counts of public performance of a protected work; four counts of access device fraud; six counts of wire fraud; three counts of making false statements to a bank; nineteen counts of money laundering; two counts of making false statements to law enforcement officers; two counts of removal of property to prevent seizure; and four counts of tax evasion.
In total and if convicted, Mr. Carrasquillo faces a maximum possible sentence of 514 years in prison, as well as supervised release, fines, restitution, and asset forfeiture.
Jesse Gonzales is charged with: one count of conspiracy; one count of violating the Digital Millenium Copyright Act; one count of reproduction of a protected work; 19 counts of public performance of a protected work; four counts of access device fraud; five counts of wire fraud; two counts of making false statements to a bank; and one count of money laundering.
In total and if convicted, Mr. Gonzales faces a maximum possible sentence of 244 years in prisonm, as well as supervised release, fines, restitution, and and asset forfeiture.
Michael Barone is charged with: one count of conspiracy; one count of violating the Digital Millenium Copyright Act; two counts of access device fraud; and five counts of wire fraud.
In total and if convicted, Mr. Barone faces a maximum possible sentence of 130 years in prison, as well as supervised release, fines, restitution, and asset forefeiture.
“These defendants are charged with engaging in a massive, years-long scheme to steal copyrighted content, which is a very serious federal crime” said Acting U.S. Attorney Williams. “As this prosecution shows, protecting intellectual property rights is an important priority of our Office and the entire Department of Justice.”
“We will investigate and take seriously schemes for profit that infringe upon copyrights,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The charges announced today should leave no doubt about the department’s continuing commitment to protect copyright holders from theft.”
“You can’t just go and monetize someone else’s copyrighted content with impunity,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “That’s the whole point of securing a copyright. Theft is theft, and if you’re going to willfully steal another party’s intellectual property, the FBI stands ready to step in and shut you down.”
“All income is taxable, including income derived from illegal means,” said Yury Kruty, Acting Special Agent in Charge of the Philadelphia Field Office for IRS-Criminal Investigation. “In addition, it is a crime to knowingly engage in monetary transactions involving criminally derived property of a value greater than $10,000 that is derived from a specified unlawful activity, such as wire fraud. IRS-CI will continue to work with our law enforcement partners to bring charges against individuals who choose to participate in illegal schemes such as this.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, and is being prosecuted by Assistant United States Attorneys Christopher J. Mannion and Matthew T. Newcomer, and DOJ CCIPS Trial Attorney Jeff Pearlman.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Multiple Defendants Indicted in Alleged Intellectual Property Theft SchemeRead the Press Release
An indictment was unsealed yesterday in the Eastern District of Pennsylvania charging a New Jersey man, a California man, and a New York man with federal crimes arising out of a wide-ranging and lucrative copyright infringement scheme.
According to court documents, Bill Omar Carrasquillo, 35, of Swedesboro, New Jersey; Jesse Gonzales, 42, of Pico Rivera, California; and Michael Barone, 36, of Richmond Hill, New York, operated a large-scale cable theft scheme between at least March 2016 and at least November 2019, in which they fraudulently obtained cable television accounts and then resold copyrighted content to thousands of their own subscribers. According to the indictment, the defendants also made fraudulent misrepresentations to banks and merchant processors in an effort to obtain merchant processing accounts. The defendants allegedly earned more than $30 million from the scheme.
As alleged, Carrasquillo converted a large portion of his profits into homes and dozens of vehicles, including high-end sports cars. When agents attempted to seize those items pursuant to judicially-authorized warrants, Carrasquillo made false statements about and attempted to hide some of those vehicles, including a Freightliner recreational vehicle and a McLaren sports vehicle.
“We take seriously schemes for profit that infringe upon copyrights,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The charges announced today demonstrate the department’s continuing commitment to protect copyright holders from theft.”
“These defendants are charged with engaging in a massive, years-long scheme to steal copyrighted content, which is a serious federal crime,” said Acting U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania. “As this prosecution shows, protecting intellectual property rights is an important priority of our office and the entire Department of Justice.”
“You can’t just go and monetize someone else’s copyrighted content with impunity,” said Acting Special Agent in Charge Bradley S. Benavides of the FBI’s Philadelphia Division. “That’s the whole point of securing a copyright. Theft is theft, and if you’re going to willfully steal another party’s intellectual property, the FBI stands ready to step in and shut you down.”
“All income is taxable, including income derived from illegal means,” said Acting Special Agent in Charge Yury Kruty of the Philadelphia Field Office for IRS-Criminal Investigation (IRS-CI). “In addition, it is a crime to knowingly engage in monetary transactions involving criminally derived property of a value greater than $10,000 that is derived from a specified unlawful activity, such as wire fraud. IRS-CI will continue to work with our law enforcement partners to bring charges against individuals who choose to participate in illegal schemes such as that alleged here.”
Carrasquillo was arrested on Sept. 21. He is charged with one count of conspiracy to commit copyright infringement and related offenses; one count of violating the Digital Millennium Copyright Act; one count of reproduction of a protected work; 19 counts of public performance of a protected work; four counts of access device fraud; six counts of wire fraud; three counts of making false statements to a bank; 19 counts of money laundering; two counts of making false statements to law enforcement officers; two counts of removal of property to prevent seizure; and four counts of tax evasion. In total, if convicted of all counts, Carrasquillo faces up to 514 years’ imprisonment.
Gonzalez was arrested on Sept. 21. He is charged with one count of conspiracy to commit copyright infringement and related offenses; one count of violating the Digital Millennium Copyright Act; one count of reproduction of a protected work; 19 counts of public performance of a protected work; four counts of access device fraud; five counts of wire fraud; two counts of making false statements to a bank; and one count of money laundering. In total, if convicted of all counts, Gonzales faces up to 244 years’ imprisonment.
A summons to appear in court was issued to Barone, and he is scheduled to make his initial appearance today in the Eastern District of Pennsylvania. He is charged with one count of conspiracy to commit copyright infringement and related offenses; one count of violating the Digital Millennium Copyright Act; two counts of access device fraud; and five counts of wire fraud. In total, if convicted of all counts, Barone faces up to 130 years’ imprisonment.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and IRS-CI are investigating the case.
Trial Attorney Jeff Pearlman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Christopher J. Mannion and Matthew T. Newcomer of the Eastern District of Pennsylvania are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bucks County Temp Agency Owner Indicted on Charges of Tax FraudRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Heng Han, 49, of Bensalem, PA, owner of HBH Global Resources, Ltd., was charged by Indictment on charges related to his alleged failure to pay over the trust fund portion of HBH’s employment taxes for quarters in 2015 to the Internal Revenue Service, and filing false individual and corporate tax returns with the IRS for tax years 2012 through 2015. The defendant made his initial appearance in federal court on these charges this afternoon.
According to the Indictment, as the proprietor of HBH, the defendant provided temporary employees to work for client companies in various industries, including light and heavy manufacturing and construction work. Han was legally obligated to withhold payroll taxes from wages paid to his employees and was responsible to pay over these taxes to the IRS. He was also required to file, following the end of each calendar quarter, an Employer’s Quarterly Federal Income Tax Return (Form 941), setting forth the total amount of wages and other compensation subject to withholding, the total amount of income tax withheld, and the total amount of social security and Medicare taxes due to the IRS. Although Han late-filed the Forms 941, he has allegedly never paid over a combined total of approximately $1,739,560. in withholding taxes due to the IRS for the years 2012 through 2015.
The Indictment further alleges that from 2012 through 2015, Han also never filed corporate or individual tax returns. In 2016, Han is alleged to have filed corporate and individual tax returns, but they were false in that he underreported HBH’s gross receipts for each of the calendar years from 2012 through 2015 by approximately $5,184,450. His alleged criminal conduct resulted in a tax loss of approximately $1,771,550.
“Heng Han’s alleged scheme to enrich himself victimized honest American taxpayers and business owners who pay their tax obligations,” U.S. Attorney Williams said. “Over years, he caused the IRS to lose millions of dollars in tax revenue. This type of fraud will be aggressively investigated and prosecuted by this Office.”
“Employment tax fraud is a serious crime that hurts honest employees as well as the United States Treasury,” said Yury Kruty, Acting Special Agent in Charge of the Philadelphia field Office for IRS-Criminal Investigation. “Because of the detrimental impact this type of misconduct has on the American taxpayers, investigating employment tax fraud will continue to be a priority for the special agents of IRS-CI.”
If convicted, the defendant faces a maximum possible sentence of 22 years in prison and a $420,000 fine. The defendant may also be responsible for the full amount of the taxes due, in addition to the payment of penalties and interest to the Internal Revenue Service.
The case was investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Anita Eve.
Philadelphia Man Sentenced to over 8 Years in Prison for Shooting a Firearm into a Residential Neighborhood in Southwest PhiladelphiaRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Salim Davis, a/k/a “Leem,” 36, of Philadelphia, PA was sentenced eight years and four months in prison and five years of supervised release by United States District Court Judge Gene E.K. Pratter for illegally possessing a firearm and shooting it into a residential neighborhood.
Nearly two years ago in September 2019, the defendant was convicted at trial of being a felon in possession of a firearm, possession of a firearm in connection with a drug trafficking offense, possession with intent to distribute a controlled substance, and aiding and abetting the making of a false statement to a federal firearms licensee. The jury heard evidence that a Philadelphia Police Inspector was off-duty driving his unmarked police car in the area of 2500 Island Avenue when he heard gunshots. Minutes later, he observed Davis, who was wearing a black jacket, and another man, walking in an alleyway near the officer’s car, both carrying firearms. The Inspector followed the suspects and commanded that they stop and put their hands up. Davis failed to comply, walked away, and discarded his black jacket. Police eventually caught up with Davis, placed him in custody, and conducted a pat down. They found over $1,000 cash and a bottle containing 70+ Xanax pills. After picking up the discarded black jacket, officers recovered a Smith & Wesson, .40 caliber, semi-automatic handgun loaded with 10 live rounds. They also recovered four bullet cartridge cases from the scene which were found to be from the defendant’s weapon.
“If you commit a federal firearms offense, our Office, together with our law enforcement partners, will hold you accountable,” said Acting U.S. Attorney Williams. “We are nearly six months into our ‘All Hands On Deck’ initiative; six months of working with our law enforcement partners nearly around the clock to put criminals like Davis behind bars where they can no longer contribute to the violence on the streets of our city.”
“ATF, along with our law enforcement partners, will continue to do everything in our power to take guns out of the hands of violent felons and disrupt violent gun crime in our community,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Today’s sentence is a small victory in the perpetual battle against gun violence and should send a clear message to those criminals who endanger our citizens.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It was tried by Assistant United States Attorney Katherine Driscoll, and was handled post-trial by Assistant United States Attorney Michael Miller.
Nine Members of Kensington “TRUHITTAZ” Drug Trafficking Group Sentenced to a Total of 73 Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Hassan Griffin, 25, a/k/a “Glizzy,” “Frizzy,” “ODOG,” and “GlizzytheHitta,” of Philadelphia, PA, was sentenced to 12 years in prison, 10 years supervised release and a $2,000 special assessment by United States District Judge Mitchell S. Goldberg for conspiracy to distribute and distribution of phencyclidine (“PCP”), and cocaine base (“crack”) through the Drug Trafficking Group (DTG) he led in the Kensington neighborhood of Philadelphia.
Griffin and eight other individuals, James Grimes, 30, a/k/a “Speedy,” “Dink,” “HM;” Andrew Gault, 29, a/k/a “Fly,” “Butterknife King,” “BKK;” Katina Grimes, 32, a/k/a “Snoop,” “SnoopdaHitta;” Tyreeq Lenair, 29, a/k/a “Bear;” Quran Justice, 24, a/k/a “Skee;” Wayne Brunson, 27, a/k/a “Weez;” Unterrio Parris, 27, a/k/a “Dudda,” “Didda;” and Anthony Hill, 30, a/k/a “Turk,” “Turt;” were charged by Indictment in April 2018 with numerous counts of drug trafficking offenses arising from their participation in the “TruHittaz” DTG that controlled the 700 and 800 blocks of East Madison and East Willard Streets in Philadelphia. To anyone driving by, this was a residential neighborhood, lined with rowhomes, trees and parked cars. But to the TruHittaz and their customers, it was - as they called it - “the block” and “the jungle.” It was a place where some of the very row homes, alleys and vacant lots that lined those streets became stash locations (hiding spots) for the drugs supplied by these defendants and sold by their workers, and for the guns supplied by James Grimes to protect their block, their drugs, and their profits from being robbed. Witnesses recounted driving these streets in the summer months and smelling the distinct odor of PCP in the air while the bottles and caps used to package and sell this dangerous drug littered the road and alleyways.
Led by Grimes and Griffin, the TruHittaz obtained quantities of phencyclidine, cocaine base, heroin, marijuana, and other controlled substances from suppliers, both outside and within the Eastern District of Pennsylvania. They then sold these drugs twenty-four hours a day, seven days a week, by employing a network of bosses, caseworkers, trappers and lookouts, such that when one member was unavailable for any reason, another took his or her place. When a member returned from arrest, prison, or even after being shot, s/he immediately resumed his/her criminal activity. This allowed the TruHittaz to sell at least five ounces of PCP and 10 bundles of crack every twelve hours – meaning that it took just over seven days (not including the night shift) to sell a kilogram of PCP and 280 grams of crack.
The TruHittaz DTG made large sums of money and protected its operations by selling drugs, carrying and using firearms, engaging in acts of intimidation and threats, and by recruiting individuals in their own community who were financially or otherwise vulnerable. The group operated in an open-air market undeterred by the presence of law enforcement, local arrests, or shootings in the area. Their main stash house (where over a kilogram of PCP, hundreds of vials and other packaging paraphernalia and numerous rounds of ammunition were seized) was located directly next to an operating daycare center. Their drug territory and many “offsite” sales took place in direct proximity to several area schools including: Philip Sheridan School, 800 East Ontario Street; the People for People Charter School, 800 North Broad Street; the Woodrow Wilson Middle School, 1800 Cottman Avenue; the Russell H. Conwell Middle School, 1849 East Clearfield Street; and the Resurrection Regional Catholic School, 2020 Shelmire Avenue.
Griffin’s sentencing yesterday brings to a close a more than five-year effort by federal and local law enforcement to disrupt and dismantle the TruHittaz DTG. The above-named defendants were sentenced to a total of 73 years in prison followed by lengthy periods of federal supervision.
“This vast and sophisticated drug trafficking enterprise left a path of destruction across Kensington and throughout Philadelphia,” said Acting U.S. Attorney Williams. “Today’s sentence brings to a close our dedicated effort to take down the nefarious TruHittaz criminal organization, and we remain committed to cutting off the supply of deadly drugs into our communities.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorneys MaryTeresa Soltis and Christopher E. Parisi.
Recidivist Child Sex Offender from Philadelphia Sentenced to 55 Years for Exploiting Two Young ToddlersRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Justyn Perez-Colon, 27, of Philadelphia, PA, was sentenced today to 55 years in prison, and lifetime supervised release by United States District Judge E.K. Pratter for his sexual abuse and exploitation of two young toddlers in his care, his production and distribution of child pornography involving those same toddlers, and his collection of hundreds of images of child pornography that he obtained from the internet. At the time he committed these federal crimes, the defendant was a recidivist child sex offender, having previously sexually abused a young family member for more than eight years, beginning when the child was just seven years of age.
In September 2019, the defendant pleaded guilty to a federal Indictment, which charged him with two counts of production of child pornography, distribution of child pornography, five counts of attempted distribution of child pornography, and possession of child pornography.
This federal investigation began in February 2018, when Perez-Colon posted an advertisement on Craigslist seeking to connect with other child sex offenders to trade stories and child pornography. An undercover FBI agent responded to his posting. During their communications over the next few days, the defendant admitted to sexually abusing a young family member for years, and also confessed that he was currently sexually abusing a young girl in his care. The defendant sent photographs and video of him sexually abusing the one-year old girl, including images of his horrific abuse of this child was she was sleeping.
On February 14, 2018, within 24-hours of receiving the pornographic images of Perez-Colon’s abuse of the child, the Federal Bureau of Investigation identified and arrested him. His cell phone was also seized and examined, and found to contain additional videos of Perez-Colon sexually abusing the 1-year-old girl, in addition to evidence that he was also sexually exploiting a different toddler with whom the defendant had a personal relationship.
The subsequent investigation by the FBI revealed that the defendant not only sexually abused and exploited the two toddler victims, but he also distributed their images and videos out over the Internet to other child sex offenders for their sexual gratification. The FBI identified Timothy O’Connell, a Villanova University Campus Minister, and Michael Meacham, a West Chester University student, both of whom communicated online with the defendant, and requested and received sexually explicit images from him. Both of these child sex offenders were prosecuted and pleaded guilty to federal charges of receipt of child pornography. O’Connell was sentenced in November 2019 to 6 ½ years in prison. Meacham is awaiting the imposition of his sentence.
In September 2019, defendant Perez-Colon pleaded guilty to the federal Indictment, which charged him with two counts of production of child pornography, distribution of child pornography, five counts of attempted distribution of child pornography, and possession of child pornography.
“Child pornography and exploitation offenses are among the most horrific crimes prosecuted by this Office,” said Acting U.S. Attorney Williams. “But this case is particularly disturbing due to Perez-Colon’s history as a previously convicted sex offender and the very young ages of his victims. I have no doubt that our community is safer with Perez-Colon and his criminal associates behind bars, and my heartfelt thanks goes out to the fast-acting agents at the FBI who worked quickly to identify and arrest the defendant so he could no longer hurt anyone else.”
“The criminal acts to which Justyn Perez-Colon admitted are stomach-churning,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “He sexually abused two toddlers, documenting and sharing images of that exploitation. It was imperative that the FBI swiftly take him off the street. Unequivocally, our community is safer with Perez-Colon behind bars, locked away where he can’t victimize anyone else’s child.”
The case was investigated by the Federal Bureau of Investigation, with assistance from the Horsham Police Department and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Philadelphia Man Sentenced for Possession of Twenty Automatic Machineguns with Counterfeit After-Market Parts Making Them Capable of Firing 1,200 Rounds in 60 SecondsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Ayende Alvarado, 40, of Philadelphia, PA, was sentenced today to 6 years and 6 months in prison without the possibility of parole, and three years of supervised release by United States District Court Judge Juan R. Sánchez for multiple firearms offenses including possession of a machinegun.
In May 2021, Alvarado pleaded guilty to a Superseding Indictment charging offenses including possession of a machinegun, possession of a firearm by a felon, and possession of a firearm not registered in the National Firearms Registration and Transfer Record. The charges stem from an incident in July 2019, during which Customs and Border Protection (CBP) officers at JFK International Airport intercepted a package from China containing 20 counterfeit Glock auto-switches addressed to defendant’s home in Pennsylvania. The auto-switches are essentially conversion devices designed and created for the sole purpose of converting semi-automatic Glock pistols into fully automatic machineguns. When properly installed on a semi-automatic Glock pistol, these devices allow the firearm to expel more than one projectile by a single pull of the trigger, at a staggering rate of approximately 1,200 rounds per minute.
Following that discovery, agents with the Department of Homeland Security, Philadelphia Police detectives and members of the Philadelphia Police Department S.W.A.T Unit, executed a federal search and seizure warrant on the 3000 block of North 7th Street in Philadelphia. A search of a residence there revealed the presence of numerous firearms and ammunition, including the 20 counterfeit Glock auto-switches manufactured in China.
“The defendant had the supplies to put large-capacity, automatic weapons on the streets of Philadelphia, significantly contributing to the violent crime problem in our city,” said Acting U.S. Attorney Williams. “We are nearly six months into our ‘All Hands On Deck’ initiative; six months of working with our law enforcement partners nearly around the clock to put criminals like Alvarado behind bars where they can no longer contribute to the violence on the streets of our city.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Department of Homeland Security, United States Customs and Border Protection, United States Postal Inspection Service, the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney José R. Arteaga.
Massachusetts Man Convicted of Sending Threatening Emails to Police CommissionerRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that that Peter Fratus, 39, of West Dennis, MA, was convicted today at trial of sending threatening email messages to City of Philadelphia Police Commissioner Danielle Outlaw.
In August 2020, Fratus was charged by Indictment with transmitting threatening communications in interstate commerce. According to the Indictment, on June 6, 2020, the defendant sent two emails to the Philadelphia Police Commissioner’s City of Philadelphia email address. Both emails allegedly contained racist, offensive, and threatening language, with one communication asking about where the Commissioner lives.
“It is a federal felony to threaten another person online, whether the victim is a private citizen or a public figure,” said Acting 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 and ensure they’re held accountable for their actions.”
“The perceived anonymity offered by the internet has emboldened many people into thinking they can post or send anything they want,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Today, a jury proved that’s not the case, holding Peter Fratus accountable for his violent threats. This was not free speech. This was a crime. Know that the FBI will continue to investigate and bring to justice people like Fratus who clearly cross that line.”
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.
Recidivist Delaware County Drug Trafficker Sentenced for Attempting to Purchase 20 Kilos of Cocaine During Undercover Sting OperationRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Romel Bolger, 41, of Drexel Hill, PA, was sentenced to ten years and four months in prison, and five years of supervised release by United States District Court Judge Mark A. Kearney for his illegal attempt to traffic approximately 20 kilograms of cocaine, which he was prepared to purchase with hundreds of thousands of dollars in cash at a hotel in Delaware County.
In May 2021, the defendant pleaded guilty to a Superseding Indictment charging him with attempting to possess with intent to distribute a controlled substance. According to court documents, in August 2020, just five years after his release from a nearly ten-year prison sentence for drug trafficking, Bolger negotiated the purchase of 20 kilograms of cocaine from an undercover Pennsylvania State Police Trooper in exchange for $700,000. On the date of the purported transaction, Bolger met with the undercover officer and inspected a kilogram of cocaine. After expressing his satisfaction with the drugs, he and his co-defendant, Kasib Parham, each carried a duffel bag full of cash to the scene of the purported transaction, a hotel in Delaware County. As they were about to make the deal, Bolger and Parham were arrested. In addition to the $700,000 contained in the two duffel bags, Parham had a bag containing various items of drug trafficking paraphernalia, and Bolger had an additional $10,440 in cash on his person. At Bolger’s residence, law enforcement recovered an additional $181,073 in cash. A search of Parham’s residence revealed additional cash, a money counter, and various items of drug trafficking paraphernalia with cocaine base (“crack”) residue.
“Drug trafficking is inherently dangerous for all touched by it, from those struggling with addiction, to residents of the neighborhoods where this behavior occurs, and of course for the distributors themselves,” said Acting U.S. Attorney Williams. “The federal government is aggressively prosecuting recidivist drug dealers like Bolger to ensure that those seeking to make a profit off the vulnerable face the consequences of their criminal acts. We want to thank our law enforcement partners in this case, the DEA and the PA State Police, for their hard work and dedication.”
“Bolger negotiated with an undercover officer for the purchase of twenty kilograms of cocaine and put together over $700,000 in cash, which demonstrated his intent in completing this deal,” said Thomas Hodnett, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The fact that Bolger was previously convicted of drug trafficking and had an additional $181,000 in drug proceeds at his residence is indicative of the threat he posed to our community. I want to thank our partners at the Pennsylvania State Police for our collaboration in this investigation.”
The case was investigated by the Drug Enforcement Administration and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Erica Kivitz.
Bangladeshi Husband and Wife Sentenced for Conspiring to Provide Material Support to ISISRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Shahidul Gaffar, 40, and Nabila Khan, 35, both residents of Pennsylvania, were sentenced to 18 months and two years in prison, respectively, by United States District Court Judge Joshua D. Wolson for conspiracy to provide material support and resources to ISIS, a designated Foreign Terrorist Organization. Judge Wolson also sentenced both defendants to three years of supervised release.
According to court documents, in 2015, Gaffar and Khan, a married couple originally from Bangladesh, provided and attempted to provide financial support to two of Khan’s brothers who traveled to Syria to join ISIS fighters. Gaffar and Khan discussed the brothers’ travel plans in detail with each other, as well as with the brothers and other family members, as early as September 2014. In January 2015, Khan asked her sister living in Bangladesh to sell some of Khan’s gold and provide the money to their oldest brother, J.K., in order to assist him in travelling to Syria. Khan then flew to Bangladesh to wish J.K. farewell before his departure in February 2015. Gaffar, who remained in Pennsylvania, sent supportive messages to Khan’s mother, stating: “Be [p]roud mother for the noble cause and for the sake of Allah!!!”
Further, Khan’s second brother, I.K., had come to the United States on a student visa and resided with Khan and Gaffar in Pennsylvania from June 2014 until February 2015, when he returned to Bangladesh. Over the next few months, Khan, who was still in Bangladesh, observed I.K. watching terrorist propaganda videos featuring Anwar al-Awlaki, a designated global terrorist who is now deceased. Around the same time, Gaffar began sending international money transfers to I.K. in Bangladesh. These funds had multiple purposes, but one was to support I.K.’s travel to Syria to join ISIS. In June 2015, Gaffar sent a message to Khan, stating: “Let [I.K.] know that I will manage and send 3000 dollars if Allah wills. Let's help him, my love, for the good cause who knows that might be enough to get forgiveness from Allah and accept[ance] [in]to heaven.” In July 2015, Gaffar continued to communicate with Kahn regarding the conspiracy, saying in part: “I feel bad for mom and dad, at the same time, I feel very proud. [W]hat a lucky mom and dad.”
In early July 2015, I.K. traveled to Syria to join ISIS. The next day, Gaffar and Khan discussed via electronic messages how Khan had tried to give I.K. more money right before he left, and days later, Kahn exchanged multiple electronic messages with a family member discussing I.K.’s arrival in Syria and reunion there with J.K. Gaffar sent reassuring messages to Khan, stating that it was “cool” that she had been able to observe I.K.’s radical Islamist “changes” from “beginning to end.”
According to court documents, in May 2016, Khan received an electronic message that I.K. had been wounded in the fighting in Syria, and in August 2016, Khan’s mother sent a message to Kahn with photographs of I.K.’s wounds sustained while in Syria. In September 2016, I.K. changed his online social media account profile picture to an image depicting himself, his brother and another male sitting in front of the black ISIS flag with firearms on a table in front of them, overtly identifying himself and his brother as members of ISIS. I.K. was ultimately killed in the fighting in Syria in March 2019.
“This case draws into sharp focus the first priority of the Department of Justice and the U.S. Attorney’s Office: protecting our Nation from all security threats,” said Acting United States Attorney Williams. “The defendants encouraged and financially supported the efforts of Nabila Kahn’s brothers to join the murderous terrorist group ISIS, which is a direct threat to the United States. The public can rest assured that our Office is working tirelessly every day to protect all Americans from the threat of terrorism.”
“Money and manpower are the lifeblood of terror groups like ISIS,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Gaffar and Khan, while enjoying all the rights and privileges of living in America, conspired to support violent extremists who consider our country their sworn enemy. Know that FBI Philadelphia’s Joint Terrorism Task Force is working diligently around the clock to detect and disrupt anyone whose beliefs have crossed the line into terrorist activity.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Sarah Wolfe and Robert Livermore.
Philadelphia Man Pleads Guilty to Kidnapping and Robbing United States Postal WorkersRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that James Chandler, 55, of Philadelphia, PA entered a plea of guilty before United States District Court Judge R. Barclay Surrick to two counts of robbery of a postal employee and one count of kidnapping.
In February 2021, the defendant was charged by Indictment in connection with two incidents that occurred on January 11 and February 4, 2021, during which Chandler robbed postal workers using a replica handgun, forcing them into their postal trucks and stealing packages from inside. During the incident in February, Chandler also forced the postal worker to drive him for several blocks in her postal truck before he fled on foot.
“Targeting and violently assaulting employees of the United States Postal Service is a serious federal crime,” said Acting U.S. Attorney Williams. “Mail carriers provide an essential service to nearly every citizen and business, oftentimes going above and beyond to execute their duties in challenging circumstances such as the COVID-19 pandemic. Mr. Chandler terrorized two postal workers using a replica handgun, and he will now face the serious consequences of his crimes.”
“Yesterday, James Chandler pled guilty to terrorizing several Postal Carriers who were just doing their jobs, delivering mail in neighborhoods of West Philadelphia,” said Damon Wood, Postal Inspector in Charge of the Philadelphia Division of the Postal Inspection Service. “Postal employees are essential workers and have worked hard, sometimes under trying circumstances, to keep the mail flowing over the last 18 months of the pandemic. When Mr. Chandler interrupted those efforts last winter he didn’t count on investigators from the Postal Inspection Service working and the Philadelphia Police Department working tirelessly to identify and arrest him. Protecting U.S. Postal Service employees and customers is a responsibility we prioritize above most else. Because of the quick and diligent work of the Inspectors from the Inspection Service and officers from the Philadelphia Police Department, Mr. Chandler didn’t get a chance to terrorize anyone else.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the United States Postal Inspection Service and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Justin Oshana.
Bucks County Man Sentenced to over Three Years for Faking Military Hero Status and Stealing from the GovernmentRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Richard Meleski, 58, of Chalfont, PA, was sentenced to three years and four months in prison, three years of supervised release, and ordered to pay $302,121 in restitution for a particularly disgraceful fraud scheme to steal Veterans Administration (VA) benefits by pretending to be a veteran who had been captured by the enemy during combat.
In July 2020, the defendant pleaded guilty to one count of healthcare fraud, two counts of mail fraud, one count of stolen valor, two counts of fraudulent military papers, as well as two counts of aiding and abetting straw purchases, and one count of making false statements in connection with receiving Social Security Administration disability benefits.
The charges stemmed from Meleski fraudulently claiming to have served as an elite Navy SEAL and falsely representing that he had been a Prisoner of War in order to secure healthcare benefits from the VA worth over $300,000. Due to his false representation as a Prisoner of War, the defendant received healthcare from the VA in Priority Group 3, effectively receiving healthcare before other deserving military service members. In reality, Meleski never served one day in the United States military.
The defendant also filed for monetary compensation from the VA for PTSD suffered during an armed conflict in Beirut in which he rescued injured teammates. In his application for disability benefits for PTSD, Meleski falsely represented that he had been awarded the Silver Star for his heroic actions during his time as a Navy SEAL. Again, Meleski never served a single day in the United States military and was never awarded such commendation. Meleski also submitted another application to the VA for monetary compensation in which he included obituaries of actual Navy SEALs alongside whom he falsely said he had served. He traded on the actions of these true service members in an attempt to bolster his application for monetary benefits.
The defendant also filed for disability benefits from The United States Social Security Administration (SSA) for injuries he claimed to have received during his time in the military. Meleski falsely testified under oath in connection with an SSA Disability proceeding.
“The defendant faked a record as a decorated U.S. Navy SEAL in order to collect numerous forms of taxpayer-funded compensation,” said Acting U.S. Attorney Williams. “The fact that Meleski chose to put himself ahead of true war heroes in order to take advantage of benefits designed specifically for those serving in the U.S. military is profoundly offensive. Our veterans fought for the freedoms we hold dear, and as we approach the twentieth anniversary of the attacks of 9/11 this Saturday, their sacrifices are even more meaningful. The defendant’s actions dishonor all of their legacies.”
“We are grateful to our federal partners for their work in pursuing and prosecuting those who impersonate our nation’s hero’s and unlawfully obtain benefits meant for those who served,” said RADM Karen Flaherty-Oxler (RET), Medical Center Director for the Corporal Michael J. Crescenz (Philadelphia) VA Medical Center. “It is disheartening to see someone who benefited from the service of our Veterans, dishonor them in this manner. Nonetheless, our day-to-day mission of caring for our Veterans continues uninterrupted and with the same vigor and commitment.”
“Today’s sentence sends a clear message that those who benefit from falsely claiming to have served in the United States military will be held accountable,” said Special Agent in Charge Christopher Algieri, Department of Veterans Affairs Office of Inspector General, Northeast Field Office. “The VA OIG appreciates the support of the United States Attorney’s Office and our law enforcement partners in securing justice for our nation’s true heroes.”
“This defendant defrauded the government in many different ways for several years,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The outcome of this investigation is the result of several law enforcement agencies working together for a common goal – to keep our communities safe from criminals like Meleski. I want to thank our law enforcement partners at the VA OIG, SSA OIG and the U.S Attorney’s Office for this successful prosecution.”
The case was investigated by Department of Veterans Affairs Office of the Inspector General, Social Security Administration Office of the Inspector General, and the Bureau of Alcohol, Tobacco and Firearms, and it is being prosecuted by Special Assistant United States Attorney Megan Curran.
New York Man Sentenced to 4 Years for Exporting Night-Vision and Thermal-Imaging Devices Worth $100k+ to RussiaRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Anton Perevoznikov, 34, of Brooklyn, NY, was sentenced to 4 years in prison, and 3 years of supervised release. by United States District Court Judge Joel H. Slomsky for his participation in a conspiracy to unlawfully export night-vision goggles and thermal-imaging devices to buyers in Russia.
In October 2018, the defendant pleaded guilty to one count of a federal Indictment charging him with conspiracy to unlawfully export defense articles. Between February 2011 and November 2013, the defendant conspired with three Russian co-conspirators to export technologically sensitive imaging devices from the United States without first obtaining from the Department of State the required license or written authorization for such exports. Perevoznikov also purchased night vision equipment from a United States vendor while acknowledging formally, in writing, that he understood that the items he was purchasing were legally precluded from export and by falsely affirming that he did not intend to export those items. The defendant’s Russian co-conspirators sent him wire transfers so that he could, in turn, purchase more than 30 pieces of night-vision and thermal-imaging devices worth over $100,000. On shipping documents, the defendant provided false descriptions of these regulated articles, including “case box,” “case for camera,” “camera and soft case,” “photo camera,” “camcorder,” and “jacket”.
“Individuals who seek to profit by unlawfully obtaining and exporting items designated by the United States as articles important to our national defense will be prosecuted with the full weight of the federal justice system,” said Acting U.S. Attorney Williams. “It is important that we take all necessary steps to prevent our military technology from being exported and possibly used against our service members and our allies overseas.”
"Perevoznikov admitted to a conspiracy to export night-vision goggles and thermal imaging devices to buyers in Russia, all of which can pose a threat to national security," said Brian Michael, Special Agent in Charge of HSI Philadelphia. "HSI Philadelphia's resolve to keep Americans safe is present in each arrest of those criminals seeking to make a profit while threatening the safety of our country."
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Thomas R. Perricone.
Philadelphia Woman Charged with Straw-Purchasing Nearly 20 Handguns in Bucks CountyRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Sharon Jones, 44, of Philadelphia, PA, was arrested and charged by Indictment with one count of dealing in firearms without a license and six counts of making false statements to a Federal Firearms Licensee (FFL) during the purchase of firearms.
The Indictment alleges that between July and September 2020, during six separate transactions, the defendant purchased a total of 19 firearms from a FFL on York Road in Warminster, PA, and that she made false statements during each of the purchases. Specifically, she allegedly certified on an official Firearm Transaction Record that she was the actual buyer, and that she lived at an address on Hartville Street in Philadelphia. According to the Indictment, Jones purchased firearms from manufacturers including Smith & Wesson, Ruger, Sig Sauer, and two .40 caliber Glocks, all for the purpose of reselling them for profit. The defendant was taken into custody and made her initial appearance in federal magistrate court on Friday, August 27.
“The purpose of our ‘All Hands On Deck’ initiative is, first and foremost, to prevent violent crime, which includes targeting for prosecution prolific straw firearms purchasers,” said Acting U.S. Attorney Williams. “This defendant’s alleged actions certainly fit that description. By charging crimes like straw purchasing of firearms, where firearms are purchased in order to turn them over to people who are prohibited from legally buying or possessing them, we can cut off the supply of illegal weapons at the source.”
“ATF remains dedicated to investigating violent crime and disrupting straw purchasing schemes as this indictment alleges,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “Together, with our law enforcement partners, we will continue to take measures to ensure the safety of our communities and stop the flow of guns to individuals who cannot legally purchase them.”
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 35 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Justin Oshana.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man, Previously Convicted of a Felony, Sentenced to 15 Years for Illegally Possessing a FirearmRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jesse Golden, 30, of Philadelphia, PA, was sentenced to fifteen years in prison and three years of supervised release by United States District Court Judge Gerald J. Pappert. The defendant was convicted of illegally possessing a firearm and ammunition as a convicted felon after a three-day trial in May 2021.
In May 2019, a Philadelphia Police officer saw a video on the social media platform Instagram in which the defendant was sitting in a car with another individual and brandishing a distinctive painted-black revolver. Investigators determined that Golden had multiple prior felony convictions, so they obtained a search warrant for the defendant’s residence. During the execution of that warrant, investigators found an unloaded revolver and 100 rounds of ammunition the same caliber as the firearm. The revolver they found matched the look (including the paint job) of the firearm in the Instagram video. Evidence presented at trial showed that testing performed on the gun found DNA that matched the defendant’s DNA.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in a city like Philadelphia, where gun violence is prevalent,” said Acting U.S. Attorney Williams. “The sentence handed down by the Court today reflects the seriousness of Golden’s crimes, and should serve as a deterrent to others engaged in the same conduct. 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 Golden off the streets for a long, 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney David Ignall.
Philadelphia Man Pleads Guilty to Attempted Armed Bank Robbery in Which His Sons Were Indicted as AccomplicesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Ronald DeWitt Vines, 47, of Philadelphia, PA, pleaded guilty before United States District Court Judge Paul S. Diamond to attempted armed bank robbery and using, carrying, and brandishing a firearm during a crime of violence, in connection with an armed robbery he and his accomplices, who were two of his sons, attempted to carry out in Bucks County in late 2017.
In January 2018, the defendant was charged by Indictment for attempting to commit the armed robbery of the PNC Bank branch on Buck Road in Holland, PA, in November 2017. To execute the robbery, Vine placed a handgun against the side of a bank employee’s head, forcing her to open the bank door as she arrived for work that morning, and then forcing her inside the bank. A second bank employee screamed when she realized the bank was being robbed. Vines and his accomplices, sons Elijah and Solomon Vines, quickly fled the bank in a getaway vehicle before being stopped by Northampton Township Police Officers responding to a 911 call. A search by patrol officers of the getaway vehicle produced one loaded semi-automatic handgun, one loaded rifle, and two body armor vests.
“This defendant terrified and threatened the lives of bank employees who were just attempting to do their jobs, and he convinced his sons – young men with their whole lives ahead of them – to help him pull it off,” said Acting U.S. Attorney Williams. “The simple fact is that this family is a danger to the community. This case demonstrates why our All Hands On Deck initiative is so important: we are investigating and prosecuting the most violent criminals to get them off the streets and behind bars.”
“The terror of being forced into her bank at gunpoint is something that employee will likely never forget,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Ronald Vines and his accomplice planned to rob a bank. It’s incredibly fortunate no one was hurt before the robbers opted to flee, and that police officers quickly spotted and stopped their getaway vehicle. Bank robbery isn’t an easy payday, it’s a federal crime, and the FBI and our partners will ensure perpetrators like Vines are held fully accountable.”
The case was investigated by Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northampton Township Police Department, and is being prosecuted by Assistant United States Attorney José R. Arteaga.
Phoenix Man Sentenced to over 11 Years for Operating International Drug Smuggling Ring Using Women as Mules Through Philadelphia and the CaribbeanRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Delgardo Frazer, 52, of Phoenix, AZ, was sentenced to eleven years and three months prison, and four years of supervised release by United States District Judge Chad F. Kenney for organizing and leading an international cocaine trafficking operation which was discovered and dismantled in 2018.
In April 2021, the defendant pleaded guilty to all counts in a Superseding Indictment charging him with intent to distribute fentanyl, conspiracy to distribute cocaine, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon. The charges stemmed from an incident during which Frazer was arrested near Philadelphia International Airport (PHL) in connection with drug smuggling.
For his illicit trafficking organization, the defendant recruited and paid several young women from Arizona to serve as “drug mules,” who would travel at his behest to various Caribbean locations and then deliver suitcases containing kilos of cocaine to him in Philadelphia, PA, and to his conspirators in Orlando, FL. As part of the trafficking conspiracy, Frazer also distributed fake oxycodone pills which, in fact, contained fentanyl. The operation came to an end in July 2018, when one of the “drug mules,” after traveling a circuitous route through the Caribbean, was stopped by federal agents at PHL with two suitcases containing over 4 kilograms of cocaine. Frazer was waiting at a nearby hotel in Essington, PA, to pick her up at the airport. When he learned that she was stopped by law enforcement, he told her on a phone call to take a cab to the nearest cheap hotel, and at the same time he packed up and abandoned the hotel room five days ahead of schedule. The defendant was unaware that the woman was with federal agents who overheard that call.
The defendant drove out of the hotel parking lot quickly, and a Tinicum Township police officer on routine patrol observe him commit multiple traffic violations. The officer stopped Frazer and searched his vehicle at an on-ramp to Interstate-95, at which point approximately 485 fake oxycodone pills containing fentanyl were found in the gas cap, and a semi-automatic 9 mm Luger handgun loaded with 12 live rounds was found in the trunk. Frazer had a prior felony drug conviction in Arizona and was therefore not permitted to possess a firearm.
“Drug distribution and gun violence are an epidemic in Philadelphia, and the federal government is aggressively prosecuting both in order to be ‘All Hands On Deck’ to get dangerous criminals like this defendant off the streets,” said Acting U.S. Attorney Williams. “Delgado Frazer was a large-scale drug trafficker who exploited women to do the ‘heavy lifting’ of bringing illegal narcotics into our country through Philadelphia and other airports, which puts those communities in grave danger. We want to thank our law enforcement partners in this case, HSI and DEA, for their hard work and dedication.”
“Frazer admitted to organizing an international drug trafficking ring, putting deadly drugs in the hands of those struggling with addictions. HSI is committed to working with its law enforcement partners to ensure that those seeking to make a profit off the vulnerable are arrested to face the consequences of their criminal acts,” said HSI Philadelphia Special Agent in Charge, Brian Michael.
The case was investigated by the Homeland Security Investigations and the Drug Enforcement Administration, and is being prosecuted by Assistant United States Attorney Andrea G. Foulkes.
Former U.S. Golf Association Employee Charged with Embezzling over $3 Million in U.S. Open Tickets over Seven YearsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Robert Fryer, 39, of Perkasie, PA, was charged by Information with one count of conspiracy to commit mail and wire fraud, four counts of mail fraud, and 10 counts of wire fraud related to a scheme to embezzle and pocket fraudulent proceeds from the unauthorized sale of United States Open Championship (“U.S. Open”) tickets, one of four major championships for golf.
The filed Information alleges that the defendant was employed by the United States Golf Association (“USGA”) in its Admissions Office. Beginning in advance of the 2013 U.S. Open held at the Merion Golf Club in Ardmore, PA, and continuing through the 2019 U.S. Open held at the Pebble Beach Golf Links in Pebble Beach, CA, Fryer abused his position in the USGA Admissions Office in order to steal more than 23,000 U.S. Open admission tickets, all without the knowledge and consent of the USGA. The defendant then sold those stolen tickets to third-party ticket brokers in return for payments totaling more than $1 million, which was paid to Fryer mostly in the form of cash and PayPal transfers. According to the Information, the face value of the tickets that the defendant stole was more the $3 million.
The Information further alleges that the ticket brokers to whom Fryer sold the tickets bought them in bulk to then turn around and resell them to their customers. In fact, the Information alleges that the USGA had a strict 20-ticket cap on the number of tickets that it would sell to any one person, but these ticket brokers were able to acquire thousands of tickets to each U.S. Open by buying stolen tickets from Fryer.
According to the Information, Fryer delivered the stolen U.S. Open tickets to the ticket brokers in a variety of ways: sometimes in person, and sometimes by sending them via Federal Express or UPS, either to the ticket brokers themselves or directly to the customers of the ticket brokers. The Information alleges that one of the ticket brokers regularly emailed the defendant prepaid UPS shipping labels that he then used to send the tickets to that broker and that broker’s customers.
“The defendant allegedly stole revenue from a legitimate business that pays taxes, employs many, supports a non-profit organization, and brings excitement and income to our district with U.S. Open events at courses like the Merion Golf Club,” said Acting U. S. Attorney Williams. “Criminals that conduct ticket schemes like this prey on the excitement surrounding big events; fans should remember that any item with a low price that seems ‘too good to be true’ should be cause for caution and concern.”
“Robert Fryer allegedly engaged in a years-long scheme to steal and sell thousands of U.S. Open tickets,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Fraud is simply not the answer, if you feel your paycheck isn’t up to par. The FBI takes seriously allegations of embezzlement and fraud and will investigate anyone engaged in this sort of criminal behavior.”
Fryer faces a maximum sentence 300 years in prison, three years of supervised release, a $3,750,000 fine, and a $1,500 special assessment. In addition, Fryer will be required to pay restitution to the USGA and forfeit the proceeds he obtained as a result of his fraud.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe. Investigators appreciate the cooperation of the USGA in connection with this investigation.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Seven Armed Robberies of Philadelphia and Montgomery County Banks and PharmaciesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Daniel King, 25, of Philadelphia, PA, was charged by Superseding Indictment with three counts of bank robbery; four counts of armed robbery of commercial businesses; one count of using and carrying a firearm during and in relation to a crime of violence; and one count of possessing a firearm after having been convicted of a felony.
The Indictment alleges that the defendant robbed the following banks and commercial businesses: the Rite Aid on Windrim Avenue in Philadelphia on June 10, 2018; the PNC Bank on North Broad Street in Philadelphia on June 18, 2018; the Santander Bank on Easton Road in Wyncote on June 20, 2018; the Citizens Bank on South Easton Road in Glenside on June 16, 2018; the Family Financial Check Cashing on West Girard Avenue in Philadelphia on August 28, 2018; the Rite Aid on Rising Sun Avenue in Philadelphia on September 10, 2018; and the Walgreens in Yorktown Plaza in Elkins Park on September 17, 2018.
King allegedly robbed the pharmacies and the check cashing business while armed with a handgun. The Superseding Indictment further charges the defendant with knowingly possessing a firearm loaded with 18 live rounds of ammunition, while also knowing he had previously been convicted of a felony offense which precluded him from possessing firearms.
“As alleged, this defendant went on a prolific armed robbery spree in the summer of 2018, wreaking havoc on businesses and their employees,” said Acting 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 are a perfect case-in-point and exactly why our All Hands On Deck initiative is committed to investigating and prosecuting the most violent criminals; by focusing on the most violent among us, we will have a big impact.”
“The FBI is committed to keeping the Philadelphia area and its citizens safe from predators like Daniel King. Today’s indictment sends a message to violent criminals that if you terrorize our community, we will find you and bring you to justice,” said Acting Special Agent in Charge Brian T. Herrick.
If convicted, the defendant faces a maximum possible sentence of life in prison, with a mandatory seven-year sentence, five years supervised release, and a $2,250,000 fine.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Cheltenham Township Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Allentown Man Now Facing Federal Charges in Murder-For-Hire PlotRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Dominic Luis Escalera, 37, of Allentown, PA, was charged by Indictment on charges of murder-for-hire and being a felon in possession of a firearm related to a plot to kill two individuals in the Allentown area earlier this year.
The Indictment alleges that from about January 28, 2021 to about February 17, 2021, the defendant used a cell phone and traveled from Newark, NJ to Allentown to arrange for the murders of two individuals, M.R. and A.R., and made an agreement to pay someone to commit the murders using controlled substances and cash. The Indictment further alleges that the defendant, knowing he had previously been convicted of a felony offense, illegally possessed a firearm loaded with four live rounds of ammunition. The previous felony conviction precludes the defendant from possessing a firearm.
“This is the second murder-for-hire case our office has announced in the last three weeks,” said Acting U.S. Attorney Williams. “These charges are a warning to anyone thinking that solicitation of homicide is a solution to your problems: This is not a game. If you try to hire someone to commit murder, you will face an aggressive federal investigation and very serious charges. Our office is committed to working with our law enforcement partners across the District to do all we can do prevent senseless violence.”
“This indictment illustrates the power of the combined efforts of ATF and our law enforcement partners,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The vigilant work of our law enforcement partners enabled them to prevent a murder and hold the defendant responsible for his alleged crimes. I want to thank the Allentown Police Department, the Pennsylvania State Police, and the U.S. Attorney’s Office for their continued effort in combatting violent crime.”
“The Pennsylvania State Police worked in collaboration with local, state, and federal law enforcement partners to ensure a thorough and prompt investigation,” said Major Jeremy Richard, director of the Pennsylvania State Police Bureau of Criminal Investigation. “I would like to extend my gratitude to these joint forces whose teamwork spoiled Mr. Escalera’s efforts. Plots to potentially harm or kill another person are serious crimes that carry severe consequences. The Pennsylvania State Police is committed to ensuring the safety of Commonwealth residents.”
If convicted, the defendant faces a maximum possible sentence of 30 years in prison, three years of supervised release, and a $750,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, and the Allentown Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tri-County Hospitalists, LLC Agrees to Pay $200,000 to Resolve Allegations of Overbilling MedicareRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Tri-County Hospitalists, LLC (“TCH”) has agreed to pay a total of $200,000 plus interest to resolve alleged violations of the False Claims Act by overbilling Medicare for advanced care planning (“ACP”) and tobacco cessation counseling (“TCC”) services. In many instances, TCH sought Medicare reimbursement for ACP and TCC services regardless of whether the counseling was necessary, voluntary, or performed with patient consent.
The settlement resolves allegations that, between January and September 2019, TCH engaged in a coordinated effort to defraud the United States by pressuring TCH personnel to seek Medicare reimbursement for ACP and TCC services for patients TCH treated, regardless of medical need. In most cases, the prerequisites for ACP and TCC services were not met and not every patient required the services that were billed. In some instances, TCH allegedly billed Medicare four or more times where ACP services were provided to a single patient over a short time frame with no evidence of any documented changes in patient condition to justify its billing activities. TCH also allegedly unnecessarily sought and received Medicare reimbursement for tobacco cessation counseling where patients did not use tobacco.
TCH is a physician-owned medical group that employs over 75 health care providers, also referred to as hospitalists, who specialize in internal medicine, family practice, pulmonary medicine, hospital medicine, emergency medicine and cardiology. TCH has offices in Philadelphia, Montgomery, and Chester Counties and provides its services in hospitals, skilled rehabilitation facilities, outpatient practices, and urgent care centers.
“Receiving payments from Medicare while providing medically unnecessary services to patients who rely on their doctors for their professional judgment cheats patients and defrauds the federal government,” said Acting United States Attorney Williams. “This resolution represents our commitment to holding accountable those who engage in fraud that affects the residents of this city and this district.”
The allegations were brought by a former TCH hospitalist under the qui tam (or whistleblower) provisions of the False Claims Act. The qui tam provisions permit private parties to sue for false claims on behalf of the government and to receive a share of any recovery. The relator was represented by Christopher J. DelGaizo, Esquire of the Derek Smith Law Group, PLLC.
The government’s pursuit of these matters illustrates its emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800‑HHS‑TIPS (1-800-447-8477).
This case was investigated by the U.S. Attorney’s Office for the Eastern District of Pennsylvania with assistance by Auditor Dawn Wiggins. The lawsuit is captioned United States ex rel. Zeth Holbert v. Tri-County Hospitalists, LLC (“TCH”) et al., Civil Action No. 19-4099.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Nine SEPTA Maintenance Managers and Vendors Charged with Bribery and Fraud in Connection with Multiple Procurement Fraud SchemesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Mark Irvello, 56, of Broomall, PA; Stanley Woloff, 58, of Philadelphia, PA; David Abell, 72, of Chincoteague Island, VA; Stephen Kish, 65, of Philadelphia, PA; Rodney Martinez, 50, of Blackwood, NJ; Jesse Fleck, 43, of Philadelphia, PA; Peter Brauner, 58, of Kintersville, PA; James Turner, 59, of Horsham, PA; and John Brady, 60, of Blue Bell, PA; were charged in separate Criminal Informations with bribery and fraud offenses.
The Informations allege that at various times from 2013 through 2019, management-level employees working in SEPTA’s Bridges and Buildings Department (“BBD”) engaged in bribery and theft schemes with two SEPTA vendors, defendants Mark Irvello of MSI Tool Repair and Supply (“MSI”), located in Upper Darby, PA; and Stanley Woloff of Advantage Industrial Supply (“AIS”), located in Philadelphia, PA. The SEPTA managers alleged to have engaged in the scheme are David Abell, Stephen Kish, Rodney Martinez, Jesse Fleck, Peter Brauner, James Turner, and John Brady.
According to the Informations, the BBD is responsible for maintaining, repairing, and renovating SEPTA facilities throughout the southeastern Pennsylvania region. To facilitate this work, SEPTA issues “procurement cards” (also known as P-Cards) to management-level employees working in the BBD. The P-Cards, which operate as SEPTA credit cards, are to be used for purchasing items needed for the legitimate work of the BBD.
In about 2013, defendant Abell, who was a Senior Director of Maintenance at SEPTA, agreed with defendant Irvello of MSI, and separately, with defendant Woloff of AIS (collectively “the vendors”), to exploit the P-Card system for their mutual benefit. Abell solicited the vendors to provide him with regular cash payments of approximately $1,000 to $2,000 per month. In exchange for those payments, the vendors falsely billed SEPTA through the P-Card system for items that the vendor was not providing to SEPTA. The false charges to SEPTA covered the cash payments to Abell, plus a substantial additional amount to generate fraud proceeds for the vendor. As part of the corrupt deals with the vendors, Abell encouraged other BBD managers to use and continue to use MSI and AIS for SEPTA purchases, growing the vendors’ business with SEPTA. To conceal the scheme, Irvello and Woloff billed SEPTA for items that SEPTA might use, but in fact, did not need at that time, or billed SEPTA for substantially more of certain products than they were actually providing to the agency. The vendors thus combined legitimate with fraudulent billing, making the scheme difficult to detect.
At various times, beginning around 2014, several other SEPTA BBD managers began engaging in similar fraud activity with defendants Irvello and Woloff. Those managers included defendant Martinez, who in 2016 replaced Abell as Senior Director of Maintenance and took over Abell’s legitimate role in SEPTA’s BBD, as well as his role in the fraud and bribery scheme. Martinez regularly solicited cash payments from the vendors under the same arrangement that the vendors had with Abell. The cash payments to Martinez totaled over $144,000.
Other BBD managers, including defendants Kish, Fleck, Brauner, Turner, and Brady, individually solicited the vendors for cash and personal items. The vendors agreed to provide the cash and personal items to the managers, and then fraudulently billed SEPTA to cover the cost of those payments and products and to generate additional fraud proceeds for themselves.
The most prolific participant in this fraud scheme was defendant Kish. Kish had Irvello make over $225,000 in purchases to benefit Kish. In most of these cases, Kish directed Irvello to purchase specific precious metals, particularly gold coins, each worth thousands of dollars. The purchases included several American Gold Eagle Coins, Gold American Buffalo Coins, South African Gold Krugerrand Coins, Canadian Gold Maple Leaf Coins, Royal Canadian Mint Gold Bars, and PAMP Suisse Gold Bars. Defendant Kish is also alleged to have engaged in money laundering for using the proceeds of the scheme to purchase real estate. The other participants in the scheme also obtained numerous personal items, including a $5,000 backhoe attachment for defendant Brauner, ATV equipment for defendant Fleck, and numerous electronics, tools, articles of clothing, and automobile repairs for defendants Turner and Brady.
In connection with this scheme, the vendor companies owned by defendants Irvello and Woloff each became one of SEPTA’s largest billers through the P-Card system. In doing so, Irvello defrauded SEPTA of more than $540,000, and Woloff defrauded SEPTA of more than $330,000.
“Philadelphians deserve public employees who do their jobs honestly, without gaming the system to line their own pockets,” said Acting U.S. Attorney Williams. “At a time when SEPTA is facing significant challenges to continue faithfully serving its riders, many of whom have no other reliable, cost-effective transportation options, the defendants’ alleged actions perpetrating this fraud scheme are the definition of selfish greed.”
“The FBI is committed to tracking down public officials and servants who abuse their positions of trust for personal gain,” said Brian T. Herrick, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Public corruption erodes citizens' faith in their community servants, and it will continue to be the FBI’s top criminal investigative priority. Today’s indictment sends the message that the FBI will work tirelessly to protect government entities and services from fraud, waste and abuse.”
“SEPTA is a public trust. Employees who engage in fraud violate that trust and will face serious consequences,” said D. James Bannan, the Authority’s Inspector General. “The vast majority of SEPTA’s workforce are honest, hard-working individuals who are dedicated to providing critical public transportation service to our region. We will continue to do right by them, the taxpayers, and the riding public by holding those who engage in illegal activity accountable for their actions.”
If convicted, each defendant faces maximum sentences of at least 20 and as much as 40 years in prison.
The case was investigated by the Federal Bureau of Investigation with the assistance of SEPTA Office of Inspector General, and is being prosecuted by Deputy United States Attorney Louis D. Lappen. SEPTA’s Internal Audit Division launched an investigation after receiving tips from employees, and the Authority’s Inspector General shared the findings with the FBI.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Statement of the U.S. Attorney’s Office for the Eastern District of Pennsylvania Regarding Recent Publication by Institute for Quantitative Study of Inclusion, Diversity, and Equity, Inc.Read the Press Release
In our constitutional democracy, the court is the focal point of the entire criminal justice system; its mission is to serve the public by administering justice in a fair and impartial manner, by preserving each citizen’s constitutional rights, and by faithfully applying the rule of law in each individual case. The court’s ability to fulfill this mission – one that the Department of Justice shares with the court – depends on the public’s confidence in our judiciary as an institution.
A recent paper by an organization called the Institute for the Quantitative Study of Inclusion, Diversity, and Equity claims that two judges in our District – Judges C. Darnell Jones II and Timothy J. Savage – have engaged in discriminatory sentencing practices. Our Office is the most frequent litigant before the U.S. District Court for the Eastern District of Pennsylvania. We can report that Judges Jones and Savage treat defendants fairly and even handedly, balancing the complexities presented in each case without regard to race or ethnicity.
Putting aside questions about the paper’s methodology and underlying data set, what we have seen over many years is wholly inconsistent with the paper’s assertions. Simply put, it’s conclusion is belied by our experience appearing before these judges.
Promoter of Bogus Green Energy Firm Based in Montgomery County Sentenced to 18 Years for $54 Million Ponzi SchemeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Wayde McKelvy, 59, of Aurora, Colorado, was sentenced to 18 years in prison, five years of supervised release, and ordered to pay $37 million restitution today by United States District Judge Joel Slomsky for operating a $54 million Ponzi scheme in one of the largest green energy frauds in U.S. history.
In October 2018, the defendant was convicted after trial of seven counts of wire fraud, conspiracy to commit wire fraud, securities fraud, and conspiracy to engage in securities fraud. The government established at trial that McKelvy and his co-conspirators ran an elaborate Ponzi scheme operating as Mantria Corporation, which received more than $54 million in fraudulently obtained new investor funds. The group promised investors huge returns, as high as 484%, for securities investments in supposedly profitable business ventures in real estate and green energy. In reality, Mantria, based in Bala Cynwyd, PA, was a classic Ponzi scheme in which new investor money was used to pay “returns” to early investors, and the business generated meager revenues and no actual profits.
To induce investors to invest money, the defendant and his co-conspirators repeatedly made fraudulent representations and material omissions about the economic state of Mantria. McKelvy also promoted himself as a financial wizard through aggressive marketing tactics, even though he had little financial acumen and was an unlicensed securities salesman. McKelvy operated what he called “Speed of Wealth” clubs, which advertised on television, radio and the Internet, held seminars for prospective investors, and promised to make them rich. During those seminars and other programs, McKelvy lied to prospective investors to dupe them into investing in Mantria. When the SEC shut down Mantria in November 2009, the pyramid scheme collapsed and was exposed.
McKelvy’s co-conspirators, Troy Wragg and Amanda Knorr, who met as Temple University students, were previously sentenced for their involvement in this scheme to 22 years and two and a half years in prison, respectively.
“This case is a classic example of the warning: if it seems too good to be true, it probably is,” said Acting U.S. Attorney Williams. “McKelvy is nothing more than a twenty-first century snake oil salesman, with all of the trappings to make him appear to be a legitimate businessman. The defendant is clearly a danger to the investing public and deserves to be in prison for a very long time, as the government demonstrated at trial.”
“Wayde McKelvy didn’t care about green energy. The only ‘green’ on his mind was money,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “At his bogus financial seminars, he actively and enthusiastically duped people into investing in Mantria, even urging them to liquidate retirement funds and other assets to do so. When the teetering Ponzi scheme finally collapsed, many victims were left financially devastated. It’s the FBI’s duty to hold scammers like McKelvy and his co-conspirators accountable for the serious damage they’ve done.”
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Robert Livermore and Sarah Wolfe. Additionally, the U.S. Attorney’s Office appreciates the assistance of Securities and Exchange Commission.
Philadelphia Sex Offender Convicted of Failing to Register After Absconding from Federal SupervisionRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Edward C. Kipp, 74, of Philadelphia, PA, was convicted today at trial of failing to register as a sex offender, as required by the Sex Offender Registration and Notification Act (SORNA), also known as “Megan’s Law.” Under Megan’s Law, sex offenders are required to register their home, work, and school addresses with state law enforcement, so that individuals can search a database and be aware of convicted sex offenders living, working, or attending school in their neighborhood.
In 2013, the defendant was convicted of possessing child pornography. Because of that conviction, he is required to register as a sex offender with the Pennsylvania State Police, and to verify that registration on an annual basis for 10 years. The defendant must also notify the State Police within three business days if there is any change in his residence. In 2020, Kipp absconded from federal supervised release and moved to a new residence without updating his registration. In September 2020, the defendant was charged by Indictment with one count of failing to register as a convicted sex offender.
“The purpose of Megan’s Law is to provide the public with current information about the whereabouts of sex offenders in order to ensure public awareness and safety,” said Acting U.S. Attorney Williams. “Failure to comply with the Megan’s Law registration requirement is not simply an administrative hiccup; it is a new federal crime. And if these offenders do not comply, we will aggressively prosecute.”
“The U.S. Marshals Service is pleased to lead Sex Offender Registration and Notification Act (SORNA) enforcement as part of Project Safe Childhood initiatives to diminish the risk posed by those that have the potential to dangerously endanger children,” said Eric Gartner, U.S. Marshal for the Eastern District of Pennsylvania.
“Parents and caregivers deserve to know if a sex offender lives next door,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “That's precisely why the registration and notification law was passed, to provide that critical information to the public and better protect children. Convicted offenders are required to advise the state police if their address of record changes. Edward Kipp was well aware of that, failed to do so, and is now being held appropriately accountable.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the United States Marshals Service and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Jessica Rice and Nancy Rue.
Member of O.B.H. Sentenced to & 7½ Years for Attempting to Intimidate Witness During 2019 Trial That Sent Fellow Gang Members to PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Charles Salley, a/k/a “Dark Lo,” a/k/a “Ron Harvey,” 39, of Philadelphia, PA, was sentenced to seven and a half years in prison, one years of supervised release, and was ordered to pay a $10,000 fine by United States District Court Judge Mark A. Kearney for threatening a cooperating witness during a federal trial in November 2019.
Salley, a well-known Philadelphia-based rapper and member of the violent street gang “O.B.H.” (or “Original Block Hustlaz”), mailed a menacing letter to a witness on the eve of the witness’ testimony during a federal trial in which Salley’s O.B.H. associates were charged with drug trafficking and weapons possession. The letter threatened violence against the witness and the witness’ girlfriend if the witness told the truth during his testimony. Salley was then present in the courtroom during the course of the 2019 trial, including on the day of the witness’ scheduled testimony. Later that day, following the witness’ testimony, Salley was arrested at his home in Delaware and charged with witness tampering for sending the letter. Ultimately, the O.B.H. defendants were all convicted after trial and sentenced to lengthy prison terms. Salley will now join them.
“Witness intimidation has no place in the criminal justice system and will be dealt with immediately so as to deter anyone else who might consider acting so reprehensibly,” said Acting U.S. Attorney Williams. “If you attempt to intimidate a federal witness, you will face federal charges of your own.”
“Imagine agreeing to be a federal witness against members of a violent drug gang and the day before you take the stand, one of their buddies threatens you and yours,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “This is exactly the type of thing our witness tampering laws are designed to prevent, as our justice system depends on witnesses being willing to share what they know. The FBI simply will not permit them to be targeted like this, in an attempt to subvert the rule of law. Charles Salley was hoping to keep his OBH associates out of prison. Instead, he finds himself behind bars as well, for quite some time.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Pharmacy Owner and Pharmacist Employee, a Previously Convicted Felon, Agree to Pay $250,000 to Resolve Alleged False Claims Act LiabilityRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Mark Zulewski, Kaushal Patel, Patel’s company Kass Management & Consulting, LLC, and Patel-owned pharmacies Belmont Pharmacy, LLC; Bensalem Pharmacy; Big Oak Pharmacy, Inc.; Doylestown Drugs, LLC; Family One Pharmacy; Penndel Drugs, Inc.; Penlar Pharmacy; and Medical Plaza Pharmacy have agreed to pay $250,000 to resolve potential liability under the False Claims Act.
Zulewski was a pharmacist licensed in Pennsylvania when, in 2010, he was convicted by the Commonwealth of Pennsylvania of a felony controlled substance offense. As a result of the conviction, Zulewski’s pharmacy license was suspended and in 2011 he was excluded from participation in federal health care programs by the U.S. Department of Health and Human Services.
The United States contends that Patel hired Zulewski to work in Patel’s pharmacies even though Patel knew that Zulewski had been convicted of a controlled substance offense, and that Patel allowed Zulewski to continue working in his pharmacies even after learning Zulewski was excluded from participating in federal health care programs as a result of his conviction. The United States further contends that, from August 2010 until March 2017, Patel gave Zulewski broad administrative authority as well as his pharmacist log-in credential so that Zulewski could manage Patel’s pharmacies and, on occasion, fill prescriptions as needed when pharmacists-in-charge at certain of the Kass pharmacies were unavailable.
The United States further contends that Zulewski, Patel, Kass Management, and the Patel-owned pharmacies knowingly and willfully disregarded Zulewski’s exclusion, resulting in the presentation of false or fraudulent claims for payment to the federal programs, including Medicare, Medicaid, and the Federal Employee Health Benefits Program.
The Office of the Inspector General of the U.S. Department of Health and Human Services excludes people from participating in federal health care programs upon their conviction of certain crimes, including a controlled substance offense. A federal health care exclusion is intended to keep individuals who have violated the law out of Medicare, Medicaid, and Federal Employee Health Benefits programs to protect program beneficiaries and the integrity of federal health care programs.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act statute. Under these provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The suit was filed in the Eastern District of Pennsylvania and is captioned United States of America, ex rel. LaGrossa v. Kass Management & Consulting, LLC, et al., Civil Action No. 15-6844. The whistleblower’s attorneys are Gavin Lentz and Peter Bryant of Bochetto & Lentz, PC.
“The United States will pursue those who violate a federal health care exclusion and those who knowingly allow excluded individuals to provide goods or services to federal program beneficiaries.” said Acting U.S. Attorney Williams. “An individual convicted of a controlled substances offense, as Zulewski was, must not be allowed behind the pharmacy counter during his exclusion to handle prescription drugs, including narcotics, and dispense them to federal program beneficiaries.”
“Civil enforcement is an important tool in our ongoing battle against health care fraud,” said Maureen R. Dixon, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services. “We will continue to work closely with the United States Attorney’s Office to ensure the integrity of taxpayer funds and protect beneficiaries of federal healthcare programs.”
“Exclusions protect Medicare and Medicaid patients and safeguard the integrity of these vital programs,” stated Gregory Demske, Chief Counsel to the Inspector General for the U.S. Department of Health and Human Services. “Anyone who circumvents an exclusion undermines the goal of ensuring Medicare and Medicaid patients receive safe, appropriate, and high-quality, services.”
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General, the U.S. Office of Personnel Management’s Office of Inspector General, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. This matter was handled by Assistant U.S. Attorney Judith A.K. Amorosa and Fraud Investigator Jeffrey Braun.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Two MSC Gayane Crew Members Sentenced for Conspiracy to Smuggle $1 Billion Worth of Cocaine into the United StatesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced today that Ivan Durasevic, 31, and Nenad Ilic, 41, both of Montenegro, were sentenced by United States District Court Judge Harvey Bartle III, on charges of conspiracy to possess with intent to distribute cocaine on a vessel subject to the jurisdiction of the United States. Durasevic was sentenced to six and a half years in prison and two years of supervised release. Ilic was sentenced to seven years in prison followed by two years of supervised release.
Durasevic and Ilic worked on board the MSC Gayane, a commercial shipping vessel, as crew members; Durasevic was the second officer and Ilic was the engineer cadet. For months in early 2019, Durasevic, and Ilic conspired with others to engage in a bulk cocaine smuggling scheme. On multiple occasions during the MSC Gayane’s voyage and while at sea, crew members including the defendants helped load bulk packages of cocaine onto the vessel from speedboats that approached the vessel in the middle of the night under cover of darkness. Crew members used the vessel’s crane to hoist cargo nets full of cocaine onto the vessel and then stashed the cocaine in the vessel’s shipping containers; they bent railings on the ship and pulled back doors on the shipping containers so they could fit the huge quantities of cocaine into the containers. After hiding the drugs among legitimate cargo, crew members used fake seals to reseal the shipping containers in which they had stashed the cocaine in order to disguise their clandestine activities and contraband. Durasevic and Ilic operated mobile “narco” phones to coordinate the bulk cocaine smuggling with others on land and recruited other crew members while at sea to assist in the scheme.
On June 17, 2019, federal, state, and local law enforcement agents boarded the MSC Gayane when it arrived at Packer Marine Terminal in Philadelphia and seized about 20 tons of cocaine worth over $1 billion U.S. dollars from its shipping containers in one of the largest drug seizures in U.S. history.
Five other crew members from the MSC Gayane involved in this smuggling scheme were arrested, pleaded guilty to conspiracy to possess with intent to distribute cocaine, and have previously been sentenced based on their participation in the scheme. These crew members include Bosko Markovic, 39, of Montenegro, the ship’s chief officer; Vladimir Penda, 27, of Montenegro, the fourth engineer; Stefan Bojevic, 29, of Serbia, the assistant reeferman; Fonofaavae Tiasaga, 29, of Samoa, an able seaman; and Laauli Pulu, 34, of Samoa, an ordinary seaman. A sixth crew member, Aleksandar Kavaja, 27, of Montenegro, the electrician, pleaded guilty and is awaiting sentencing.
“As the sentences for the illegal conduct in this case continue to happen, they serve as a reminder that drug smuggling operations will be uncovered one way or another,” said Acting U.S. Attorney Williams. “Prosecutors in our Office have been working non-stop to pursue justice since the MSC Gayane docked in the port of Philadelphia over two years ago, and we will not stop until the case is closed.”
The case is being investigated by Homeland Security Investigations and the United States Customs and Border Protection, together with a multi-agency team of federal, state, and local partners.
Philadelphia Man Charged with Forcible Sex Trafficking of Multiple Victims Including a MinorRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Kevin Smith, 27, of Philadelphia, PA, was charged by Indictment with sex trafficking by force and sex trafficking a minor. The charges against the defendant stem from his operation of a sex trafficking ring in Philadelphia and the surrounding region—including Bucks and Delaware counties.
The Indictment alleges that for about seven days at the end of September 2019, Smith knowingly recruited, enticed, harbored, transported, maintained a minor for the purposes of forcing that minor to engage in commercial sex acts in Philadelphia. It also alleges that Smith operated a sex trafficking enterprise at various times over a period of two years from July 2015 to July 2017, during which he used physical threats to force three different young adult victims to have sex for money.
“The crimes Smith is accused of committing are some of the most devastating to victims that our office prosecutes,” said Acting U.S. Attorney Williams. “Allegedly, this defendant forced four young people, one a minor child, to sell their bodies for his financial gain. We will continue to work collectively to investigate these destructive crimes against the most vulnerable victims.”
“Using physical threats to control another human being, to force them into sexual exploitation, is unconscionable,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Kevin Smith allegedly did just that to three young women — and a child. The FBI will never stop working to find and help trafficked victims, to protect them from further abuse and keep their traffickers from hurting anyone else.”
If convicted, the defendant faces a maximum possible sentence of life in prison.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Delaware County District Attorney’s Office, the Bensalem Police Department, the Media Borough Police Department, the Tinicum Township Police Department and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorneys David Metcalf and Brittany Jones.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delaware County Man Sentenced to over 22 Years for Abusing Three-Year-Old Child and Recording the AbuseRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that David Carbonaro, 28, of Upper Darby, PA, was sentenced to twenty-two years and one month in prison, lifetime supervised release, and was ordered to pay $38,000 in restitution by United States District Court Judge Chad F. Kenney for numerous child exploitation offenses including abusing a three-year-old in order to produce pornography.
The defendant pleaded guilty in November 2019 to charges of production, distribution, and possession of child pornography, stemming from his horrendous sexual abuse of minor child in his care when she was just a toddler. Carbonaro conducted “photo shoots” of Minor #1, as she is referred to in court documents, in sexualized poses and directed his co-defendant Kayla Parker, to sexually abuse Minor #1 for his viewing pleasure. Law enforcement came upon the evidence of these deplorable crimes while investigating the defendant for distributing child pornography over the internet. The search warrant executed at Carbonaro’s residence in Delaware County yielded thousands of images of child pornography in his collection, including nine images depicting the sexual abuse of Minor #1.
“This is a truly horrifying case. Sexually exploiting and abusing a three-year-old child is simply too awful for most people to even think about,” said Acting U.S. Attorney Williams. “Strong law enforcement collaboration between our Office, Homeland Security Investigations and the Pennsylvania Office of Attorney General resulted in justice for this defendant and his victims. Anyone we find abusing children in this District we will held accountable for their crimes.”
“Children are among the most vulnerable members of our Commonwealth, and thanks to the strong communication and collaboration with our federal and state law enforcement partners, we were able to hold the defendant accountable for his abhorrent crimes,” said Attorney General Josh Shapiro. “My Office will always stand up for survivors of sexual abuse.”
“Rescuing children from these predatory violators is a top priority for Homeland Security Investigations,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “HSI Special Agents and our state and local partners will spare no resource and will exhaust every effort to hunt them down and bring them to justice. Working closely together with the Pennsylvania Attorney General’s Office as HSI did in this case, we will continue to investigate and prosecute those who commit the particularly heinous crimes of producing, distributing, and possessing child pornography.”
The case was investigated by Homeland Security Investigations and the Pennsylvania Office of the Attorney General, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
California Man Sentenced to over Six Years in Prison for Credit Card-Skimming Fraud SchemeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Verzh Movsisyan, 43, of Glendale, CA, was sentenced to six years and three months in prison, five years of supervised release, and was ordered to pay $599,000 in restitution by U.S. District Court Judge Paul S. Diamond for his involvement in a theft scheme using stolen debit card information.
The defendant pleaded guilty in June 2020 to charges of conspiracy, bank fraud, aggravated identity theft and money laundering. Movsisyan and his six co-defendants were charged for their involvement in a scheme to steal money from victims’ bank accounts by making fraudulent ATM withdrawals and money order purchases in multiple states with stolen debit card numbers. The victims’ debit card numbers were obtained by members of the scheme through illegally installed devices on gas station pumps, known as ‘skimmers’, that captured the victims’ debit card numbers and Personal Identification Numbers when they used their debit cards at gas stations to purchase gas. The skimming devices were installed on pumps at gas stations throughout the Mid-Atlantic region.
Movsisyan is the second defendant to be sentenced; one co-defendant was previously sentenced in March 2020 to over three years in prison, two co-defendants are scheduled to be sentenced in August and September 2021, and the three remaining co-defendants are scheduled for trial in September 2021.
“This fraud utilized nearly-undetectable technology to take advantage of victims as they went about the business of their daily lives,” said Acting U.S. Attorney Williams. “Being victimized in this way is an alarming violation because there is nothing a victim can do to prevent or stop it. I want to thank the many agents and investigators who worked tirelessly to uncover this scheme and help our Office seek justice for victims.”
“Skimming is an insidious crime, with perpetrators taking advantage of people just going about their everyday business,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The victims of this scheme never imagined that filling up their gas tanks could empty out their bank accounts. The FBI will continue to work with our partners to identify, track down, and take down criminal groups siphoning off other people’s money and personal information.”
The case was investigated by the Federal Bureau of Investigation Philadelphia Organized Crime Task Force, the United States Postal Inspection Service, the United States Secret Service, the Newark, Delaware Police Department, the Borough of Wyomissing, Pennsylvania Police Department, and the Bensalem, Pennsylvania Township Police Department, and is being prosecuted by Assistant United States Attorney K.T. Newton.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Indicted for Illegally Possessing A Firearm Following Violent Assault and Armed RobberyRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Kelvin Canales, 21, of Philadelphia, PA, was arrested and charged by Indictment with possession of a firearm by a felon stemming from an incident in which he allegedly violently assaulted a victim before disposing of the weapon. Canales made his initial appearance on these charges in federal court earlier today.
According to the Indictment, Canales allegedly robbed a victim of his cell phone on a sidewalk in North Philadelphia. After the defendant returned to his car, he re-approached the victim and allegedly shot the victim multiple times in the back. Video footage shows Canales then fleeing the area. Court documents further allege that, approximately an hour later, the defendant crashed his car in a single-car accident. When paramedics arrived and attempted to speak with the defendant, he allegedly fled the accident scene, walked behind a row of houses and hid a loaded firearm in a trashcan.
“I have said many times in recent months that our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck,’” said Acting U.S. Attorney Williams. “When someone illegally possesses a firearm after sustaining a felony conviction, it is a very serious federal crime. In this case, the defendant is facing a maximum possible sentence of life in prison.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendant faces a maximum possible sentence of life in prison, a $250,000 fine, a 5-year period of supervised release, and a $100 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 Man Arrested on Murder-For-Hire Charges; Attempted Homicide in Southwest Philadelphia ThwartedRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Darnell Jackson, a/k/a “Major Change,” 47, of Philadelphia, PA, was arrested and charged by Criminal Complaint on federal charges of murder-for-hire and possession of ammunition by a convicted felon. In a news conference outside the federal courthouse in Philadelphia alongside Assistant Special Agent-In-Charge for FBI Philadelphia’s Violent Crime Branch James Christie and Philadelphia Police Chief of Investigations Chief Inspector Frank Vanore, Acting U.S. Attorney Williams discussed the charges and the investigation leading to the defendant’s arrest as part of the federal effort to reduce violent crime in Philadelphia known as ‘All Hands On Deck.’
According to publicly filed court documents unsealed today, the defendant allegedly orchestrated a murder-for-hire plot which stemmed from an ongoing state drug trafficking investigation. One week ago on Monday, July 19, 2021, and in the days immediately following, Jackson allegedly communicated with an individual via cell phone calls and text messages in an effort to arrange the killing of a different individual (the intended victim), sending a photo of the intended victim and indicating that he was willing to pay $5,000 to someone to commit the murder. Jackson also allegedly mentioned to the individual that he was interested in locating the close friends of the intended victim so that they could be harmed as well. Once the individual reported to the defendant that he had located the intended victim, they allegedly agreed that the killing would occur on the evening of Wednesday, July 21st.
That same evening, the individual called Jackson to report that the intended victim had been killed, but this was actually false. In response, the defendant allegedly replied that he was on his way to meet the individual in order to pay him for his services. A few minutes later, Jackson was stopped by law enforcement while driving a vehicle in the vicinity of 65th Street & Guyer Avenue in Southwest Philadelphia, and he was allegedly found in possession of a Glock-style Personally Manufactured Firearm (PMF or ‘ghost gun’) loaded with 16 live rounds of ammunition, and nowhere near the amount of $5,000. The defendant was immediately arrested and taken into custody pursuant to the Criminal Complaint; he made his initial appearance in federal court on Friday, July 23, and will appear before U.S. Magistrate Judge Perkin for a detention hearing on Tuesday, August 3.
“It is no stretch of the imagination to conclude that law enforcement thwarted multiple alleged attempted murders by the defendant last week,” said Acting U.S. Attorney Williams. “But there are hundreds of families in this city for whom this news means very little, because their loved ones were already gunned down this year. I want to thank the dedicated men and women of the FBI and Philadelphia Police Department who were responsible for taking Jackson off the streets, and I want to assure the public that we will continue to do all we can to fight the surge of violence plaguing our city.”
“When our Safe Streets Gang Task Force received information on an alleged murder for hire last week, we immediately determined this was truly a life-threatening situation,” said James E. Christie, Assistant Special Agent in Charge of the FBI’s Philadelphia Division. “Agents and task force officers worked quickly, taking all necessary steps to disrupt this deadly plot. As a result, the intended victim is safe, the alleged orchestrator is behind bars, and a ghost gun is off the street. We refuse to cede this city to criminals who think solving a problem means pulling a trigger, who hold blocks and entire neighborhoods hostage to their violence. The ‘All Hands on Deck’ initiative continues to produce results and you’ll be seeing more of those in the weeks and months to come.”
“Every day, members of law enforcement agencies at all levels work tirelessly to prevent violent events from occurring in our city,” said Philadelphia Police Commissioner Danielle Outlaw. “The PPD and our partner agencies recognize the gravity of Philadelphia’s plight. People who commit serious crimes must face serious consequences, and arrests like the one announced today are the very reason why this joint initiative was created. I want to thank the FBI and the U.S. Attorney’s Office for pledging their support to this effort and ultimately contributing to the safety and well-being of those who live, work, and visit this beautiful city.”
If convicted, the defendant faces a maximum possible sentence of 20 years in prison (10 years for each charge).
The case was investigated by the Federal Bureau of Investigation – Philadelphia Field Office and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Unlicensed Investment Adviser Behind Ponzi Scheme Sentenced to Nine Years for Defrauding Clients out of More than $2 MillionRead the Press Release
PHILADELPHIA – – Acting United States Attorney Jennifer Arbittier Williams announced that Alexander S. Rowland, 30, formerly of Penns Grove, NJ, was sentenced to nine years in prison, three years of supervised release, and was ordered to pay more than $2.1 million restitution to his victims by United States District Court Judge Karen Spencer Marston, for defrauding more than 120 clients who thought they were investing money with Rowland’s company, Roaring Investments, Inc., when in reality, Rowland was operating a Ponzi scheme and spent more than $1 million of their money on himself. The defendant was also ordered to forfeit more than $1.4 million in criminal proceeds that he earned, as well as nine firearms that he purchased with fraud proceeds.
Rowland pleaded guilty in April 2021 to four counts of mail fraud, 16 counts of wire fraud, one count of bank fraud, one count of securities fraud, and one count of investment adviser fraud. As part of his guilty plea, the defendant admitted that he started Roaring Investments in July 2016 and falsely held himself out to potential investors as a licensed investment adviser who would invest their money in stocks and cryptocurrency, and he promised his clients a minimum return of 25% with potential returns of 50% or higher. None of these statements were true. Through these and other misrepresentations, Rowland was able to convince investors to invest almost $3 million in Roaring Investments. Rowland admitted that he actually only invested a little over $500,000 of the funds he obtained from his clients, and that his investments were a flop, losing more than $100,000. Rowland admitted that he spent more than $1 million of his client’s funds on himself, including payments for vacations and luxury vehicles, jewelry, and more than $47,000 worth of firearms. The defendant further admitted that he used some of the other client funds to pay his office rent, his employee salaries, and to make payments to his earlier clients – in effect, operating a Ponzi scheme.
Rowland also admitted that he lied to his clients by providing them with false account balances that led them to believe that their investments were highly profitable. In fact, Rowland led his clients to believe that the roughly $3 million they had collectively invested had grown to more than $9 million. When the scheme collapsed, Rowland’s clients learned that they had actually collectively lost more than $2 million due to Rowland’s fraud. The defendant further admitted that, after the scheme collapsed, he continued to lie to some of his victims by saying he could not repay them because the FBI was preventing him from accessing his accounts.
“Rowland talked a big game about the returns his company could produce through investments in stock and cryptocurrency, but it was all a lie. Instead, he funded his own lavish lifestyle in a manner no better than a common thief,” said Acting U.S. Attorney Williams. “And when he was caught, he continued to lie. The defendant is clearly a determined fraudster who needed to be taken off the street.”
“Alexander Rowland lured investors in by promising astronomical returns on their money,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Instead, he took full advantage of their trust and lived high on the hog at their expense. Ponzi schemes can be simply devastating for their victims. That's why the FBI and our law enforcement partners are so determined to bring this kind of financial fraud to light, and perpetrators like Rowland to justice.”
“Anytime a taxpayer is encouraged to invest in a product that seems too good to be true, they should be wary,” said Joleen D. Simpson, Acting Special Agent in Charge of the Philadelphia Field Office. “IRS Criminal investigators will continue to use their financial skills to assist their law enforcement partners in stopping harmful investor fraud schemes.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Currency Exchange Manager Sentenced to One Year for Filing False Transaction Reports in Connection with Scheme to Defraud Philadelphia Wholesale Produce MarketRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Thomas Del Borrello, 42, of Sewell, NJ, was sentenced to one year in prison, two years of supervised release, and was ordered to pay a $5,000 fine by United States District Judge Cynthia M. Rufe for filing false currency reports in connection with a vast, multi-million dollar scheme to defraud the Philadelphia Wholesale Produce Market (Market) in South Philadelphia, perpetrated by the Market’s President and CEO Caesar DiCrecchio.
The defendant pleaded guilty to a Criminal Information in April 2021, charging him with filing false Currency Transaction Reports (CTRs) and failing to file CTRs for cash transactions in excess of $10,000. Del Borrello was a supervisor at United Check Cashing on South Broad Street in Philadelphia and, as such, was responsible for compliance with regulations governing cash transactions, including the preparation and filing of CTRs.
Del Borrello regularly cashed checks for Caesar DiCrecchio, who has pleaded guilty to defrauding the Market while serving as its President and CEO. As part of his guilty plea, DiCrecchio admitted regularly causing groups of checks to be delivered to, and cashed at, United Check Cashing. These checks were each made out for less than $10,000, but when cashed as a group generated in excess of $10,000 in United States currency. For these cash transactions in excess of $10,000, regulations require the currency exchange to file a CTR, recording the identity of the person who presented the transaction. Del Borrello caused the filing of false CTRs which hid DiCrecchio’s identity, or caused United Check Cashing to fail to file a CTR altogether. On some occasions, DiCrecchio directed Del Borrello to convert the proceeds of the checks into separate money orders which were used to pay the $14,167 monthly rent for DiCrecchio’s Stone Harbor house. Del Borrello’s corrupt actions permitted DiCrecchio to remain undetected while he perpetrated the $7 million fraud on the Market.
“Del Borrello, by his corrupt choices, prevented the ordinary operation of the anti-money laundering laws of the United States,” said Acting U.S. Attorney Williams. “In his position as a supervisor at a check cashing business, Del Borrello served at a key gateway in our economy. But rather than respect the law and his important role in the enforcement process, he helped DiCrecchio cover up a massive fraud. He deserves the sentence of imprisonment he received for his effort to defeat our anti-money laundering laws.”
“In repeatedly evading or falsifying the required CTRs, Thomas Del Borrello facilitated the continuation of a long-running, multimillion-dollar fraud scheme,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He knew it was wrong and didn’t care, because he was making money off the whole deal. As today’s sentencing shows, such criminal actions have serious consequences.”
“The subject’s actions allowed millions of dollars to be siphoned from the Philadelphia Wholesale Produce Market, harming the local economy,” said Joleen D. Simpson, Acting Special Agent in Charge of IRS Criminal Investigation, Philadelphia Field Office. “The subject had a duty to prepare and file CTRs. As a direct result of Del Borrello’s dereliction of duties, an entity suffered lost revenues and federal tax laws were violated. IRS Criminal Investigation will always be ready to assist its law enforcement partners in investigating complex financial cases that cause economic damage to individuals and entities.”
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 – Bureau of Criminal Investigation, and is being prosecuted by Assistant United States Attorney Michael T. Donovan.
Philadelphia Real Estate Investor Charged with Witness Tampering Related to Prior Conviction for Bribing Sheriff’s Office EmployeeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Behzad Sabagh, a/k/a “Ben Sabagh,” 39, of Philadelphia, PA, was arrested and charged by Indictment with multiple counts of retaliating against a witness and tampering with a witness, stemming from a case in which he was previously convicted of bribing an employee of the City of Philadelphia in April 2019.
As set forth in the Indictment, in May 2018, Sabagh was charged criminally with honest services wire fraud, arising from his payment of bribes to a City of Philadelphia Sheriff’s Office employee. From December 2019 until March 2020, after Sabagh pleaded guilty to the fraud charges and completed his court-ordered sentence, he is alleged to have sent threatening text messages to an individual who was also charged in connection with the prior case and who had agreed to plead guilty and cooperate with law enforcement officials as a witness against Sabagh.
According to the Indictment, while the witness was awaiting sentencing, the defendant sent text messages in which he violently threatened the witness with sexual assault while in prison, threatened to sexually assault the witness’s wife while the witness was in prison, and threatened their children. The Indictment charges Sabagh with nine counts of retaliating against a witness and one count of tampering with a witness.
“Witness intimidation undermines the entire criminal justice system and will be dealt with swiftly and severely,” said Acting U.S. Attorney Williams. “Here, Sabagh allegedly threatened a witness in a most contemptible way, after his conviction and sentence had been served as though his actions would have no consequences. These charges demonstrate that he is absolutely wrong.”
“Our justice system depends on witnesses truthfully testifying as to what they know,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Retaliating against a cooperating witness sends a chilling message both to that person and the community at large. Bottom line: ensuring the safety of federal witnesses both before and after a prosecution is paramount, and the FBI takes Sabagh’s alleged acts extremely seriously.”
If convicted, the defendant faces a maximum possible sentence of up to 200 years in prison, a $2,500,000 fine, a $1,000 special assessment, and restitution.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Sarah L. Grieb and Christopher Diviny.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Women Leaders in Law Enforcement in Philadelphia Talk with Girls About Careers, Mentorship, and Breaking the Glass CeilingRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Girls Inc. of Greater Philadelphia & Southern New Jersey, in partnership with the U.S. Attorney’s Office for the Eastern District of Pennsylvania, hosted a virtual panel discussion for Girls Inc. program participants with women leaders in law enforcement in Philadelphia. The women leader panelists were Acting U.S. Attorney Jennifer Arbittier Williams, City of Philadelphia Police Commissioner Danielle Outlaw, City of Philadelphia Controller Rebecca Rhynhart, and City of Philadelphia Solicitor Diana Cortes. Dena Herrin, Executive Director of Girls Inc. of Greater Phila. & Southern New Jersey, provided welcoming remarks, and the discussion was moderated by Girls Inc. Eureka! Coordinator Sarah Kane.
The meeting marks a moment when, for the first time in Philadelphia history, four major law enforcement agencies – the United States Attorney’s Office for the Eastern District of PA, the Philadelphia Police Department, the City Controller’s Office and the City’s Law Department – are being led by women, two by women of color. The goal of the discussion, which was attended by approximately 60 participants ranging in age from 11 to 18, was to engage directly with girls who may be beginning to think about their own education and career paths, and to share the message that they can become leaders in any field, even fields like law enforcement that are traditionally dominated by men. The panelists spoke candidly about a wide variety of topics including their personal and professional backgrounds, typical duties of their current jobs, mentors and inspiration, professional challenges and rewarding moments, and even misconceptions about women in the field.
“Representation matters; seeing and engaging directly with women role models matters,” said Acting U.S. Attorney Williams. “Girls in middle school and high school are laying the groundwork for their futures. I enthusiastically participated in this event because, as a mother of four students, I know how important it is for youth to see diverse examples of people pursuing different careers and interests, especially people serving in leadership roles. As the late Justice Ginsburg said: ‘Women belong in all places where decisions are being made.’ And if we can do it, you can, too.”
“Blazing a new path can be challenging but is not impossible,” said Police Commissioner Outlaw. “It is important that young women know that what traditionally has been seen as weaknesses in us are, in fact, strengths. Women have long deserved many seats at the table due to our skill sets, lived experiences, perspectives and qualifications. It is crucial we develop our young women early to prepare them to not only take their seats at the table or to recognize when a seat at the table is not enough , but to ensure they are equipped to address any inequities or other challenges they may experience as they blaze trails for others behind them.”
“I’m thrilled to participate in this event with Girls, Inc. to encourage today’s young women – the leaders of tomorrow – to consider fields long-believed to be ‘men’s work,’ like government, law enforcement or STEM,” said Controller Rhynhart. “I am the first woman to be elected City Controller and while women are in positions of power across the city, Philadelphia has never had a woman mayor. Pennsylvania has never had a woman senator or governor. Girls need to know that they can, and should, hold positions of power, no matter the field, whether in the public or private sector. Events like this give girls the opportunity to see women creating change and leading, opening their minds to endless possibilities.”
“This program was a great opportunity to share with tomorrow’s women leaders the importance of public service work and how the City of Philadelphia Law Department plays a role in our community by defending the work of our City Council, our affirmative litigation program, or working to ensure the health and safety of our residents are protected,” said Solicitor Cortes.
Girls Inc. is a nonprofit organization with roots dating to 1864 and national status since 1945. The local affiliate was founded in 1961 as Teen Aid, and became affiliated with the national organization in 2002. Its mission is to inspire all girls to be strong, smart, and bold, through direct service and advocacy. Girls Inc. serves girls in K-12th grades at local schools, community partner sites, Philadelphia Juvenile Justice Service Center, and the Girls Inc. center. Girls Inc. programs focus on leadership and community action, STEM, early grade literacy, financial literacy, healthy decision making, and media literacy. The combination of long-lasting mentoring relationships, a pro-girl environment, and research-based programming equips girls to navigate gender, economic, and social barriers, and grow up healthy, educated, and independent. A Girls Inc. participant learns to value herself, take risks, and discover and develop her inherent strengths. The mission and the proven, holistic approach the organization employs to fulfill its mission is making a meaningful impact on thousands of girls in the region.
Philadelphia Man Charged with Federal Firearms Offense After Incident During 2020 Civil UnrestRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Mashaq White, 23, of Philadelphia, PA, was arrested and charged by Indictment on the charge of being a previously convicted felon in possession of a firearm, stemming from an incident which occurred during the civil unrest in Philadelphia last year. At a hearing in U.S. District Court today, the defendant was detained pending trial.
The Indictment alleges that on June 1, 2020, the defendant was in possession of a loaded 9mm Ruger handgun as a convicted felon. According to court documents, Philadelphia Police Officers responded to a burglary in progress at a pharmacy on the 5600 block of Chestnut Street in West Philadelphia. When they entered the store they found it ransacked and the sprinkler system activated. Suddenly, the defendant allegedly came running down an aisle of the store, toward one of the officers, while carrying a handgun. The officer restrained the defendant and he was arrested. The incident was captured on the officer’s body camera.
“Our office is committed to prosecuting anybody who took advantage of the civil unrest and protests of last summer to try to commit violent acts or otherwise violate federal law,” said Acting U.S. Attorney Williams. “In this case, a previously convicted felon is charged with allegedly possessing a loaded firearm, which presents a clear danger to our community that is struggling under a surge of violent gun crime.”
“Getting guns away from people who shouldn’t have them is a crucial part of our concerted effort to check violent crime in this city,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “If you’re in criminal possession of a firearm, the FBI and our partners will be glad to take it off your hands, in exchange for a nice pair of cuffs. We will continue to do all we can to make Philadelphia safer for the good folks who live, work, or visit here.”
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 10 years in prison, three years of supervised release, $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney James R. Pavlock.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Charged with Threatening Life of Philadelphia Woman Online from OverseasRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Davit Davitashvili, 43, of Gori, the Republic of Georgia, and a naturalized American citizen, was charged by Indictment today with one count of transmitting in interstate and foreign commerce a threat to injure another person. The defendant was arrested on June 3, 2021 upon arriving at John F. Kennedy Airport in Queens, New York, and taken into custody.
The Indictment alleges that on March 10, 2020, Davitashvili knowingly and willfully transmitted messages using an Internet messaging application to a woman living in Philadelphia known as ‘O.V.,’ which contained threats to sexually assault the mother of O.V., and to injure, maim, and kill O.V. and others.
“The defendant is alleged to have sent incredibly scary, disturbing, and intimidating messages to a woman living and working in our city. No one should have to live in such constant fear,” said Acting U.S. Attorney Williams. “The public can rest assured that our Office, together with our law enforcement partners, is working tirelessly to protect victims from all types of threats both at home and abroad.”
“You can't just threaten people online with violent physical harm. That’s not protected speech — it’s a crime,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “The FBI takes all threats to life seriously and so should anyone thinking about making one. We will investigate, identify you, and ensure you’re held accountable for your actions.”
If convicted, the defendant faces a maximum possible sentence of five years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Landlord to Pay $90,000 under the False Claims Act for Violating HUD Rules by Renting Subsidized Section 8 Apartment to RelativeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Mikhail Geneles (“Geneles”), will pay $90,000 to resolve False Claims Act allegations that he illegally claimed subsidies from the Department of Housing and Urban Development (“HUD”) while renting an apartment to his father-in-law in violation of the department’s requirements.
The settlement resolves allegations that, between May 2010 and May 2020, Geneles rented a subsidized apartment to his relative in violation of the Housing Choice Voucher Program’s (“HCVP”) requirements. The HCVP is commonly known as Section 8 housing. In the agreement, the United States alleges that Geneles participated as a landlord in the HCVP, a program whereby HUD provides rental subsidies for eligible low-income tenants who locate acceptable rental units on the private market. The government alleges that Geneles submitted documents to the Bucks County Housing Authority (which administers the HCVP in Bucks County) falsely certifying that the assisted tenant in Geneles’ rental property was not an immediate relative of the property’s owners. In fact, the sole tenant was Geneles’ father-in-law, which precluded Geneles’ receipt of HCVP rental subsidies.
“HUD instituted the HCVP program to help low-income residents without other options to obtain decent housing,” said Acting U.S. Attorney Williams. “By investigating this case, we put all landlords participating in the Section 8 program on notice that they cannot put relatives in apartments for which they are receiving HCVP funds.” Williams added, “From the time that this matter was brought to his attention, Mr. Geneles committed himself to setting things right. We appreciate his cooperative approach and efforts toward rectifying the problem.”
“The U.S. Department of Housing and Urban Development, Office of Inspector General is committed to working with the Department of Justice and community stakeholders to ensure that Federal funds intended to help low-income families are not wasted or misapplied,” said Acting Special Agent in Charge Shawn Rice. “Today’s settlement underscores the government’s commitment to protecting the integrity of HUD programs against fraud, waste, or abuse.”
This case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General, and by the Bucks County Housing Authority. For the United States Attorney’s Office, Assistant United States Attorney Colin Cherico handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Reading, PA Woman and New York Man Plead Guilty for Their Role in Nationwide “Grandparents Scheme” Worth $300k+Read the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Daniel Duran, 33, of Jamaica, NY, and Jacqueline Velazquez, 37, of Reading, PA, entered guilty pleas before United States District Court Judge Mark A. Kearney on multiple counts of mail fraud in connection with a phone and mail-based scheme to defraud elderly victims across the country out of hundreds of thousands of dollars.
The defendants were charged by criminal Information with seven counts of mail fraud in June 2021. According to the Information, from December 2018 through March 2020, the defendants played an integral role in what is commonly known as a “Grandparents Scheme,” which worked as follows: co-schemers based in the Dominican Republic telephoned elderly victims throughout the United States and, while posing as a grandchild or grandchild’s lawyer, falsely told each victim that their grandchild had been involved in a vehicular accident and needed money to pay for medical, legal, or court expenses. These co-schemers would also instruct the elderly victims to send large amounts of cash to certain addresses allegedly identified by the defendants, including addresses in Reading, PA. The defendants are charged with picking up the packages and sharing the money with their co-schemers. All told, this scheme defrauded at least fifty elderly victims across the United States of more than $300,000.
“Schemes like this ‘Grandparents Scheme’ are particularly heinous because they prey on a senior’s love for their family,” said Acting U.S. Attorney Williams.“The Department of Justice is committed to protecting our seniors from fraud, and our Office will continue to prioritize prosecuting criminals who prey on our elderly residents.”
The case was investigated by the United States Postal Inspection Service, in connection with the Reading Police Department, and is being prosecuted by Assistant United States Attorney Matthew T. Newcomer.
Philadelphia Man Admits Years-Long Sexual Abuse of Eight-Year-Old Victim, Including Manufacturing PornographyRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Herbert Smith, 33, of Philadelphia, PA, pleaded guilty in federal court to seven counts of manufacturing child pornography. Smith was indicted as a result of his extended sexual abuse for more than two years of a child who was just eight years old when Smith began molesting her.
The defendant’s sexual abuse of this child victim came to light when Philadelphia Police served an arrest warrant for Smith for his sexual assault of a different nine-year-old victim. When Police arrested the defendant, officers discovered him lying in bed with that victim. Police seized Smith’s electronic equipment, and the subsequent forensic analysis by the Federal Bureau of Investigation revealed hundreds of images of Smith’s horrific sexual assaults against an eight-year-old child, including rape and other sexual abuse of the child after she was given medication to make her sleep. Smith recorded his abuse of the child victim, saved the images and videos on his electronic equipment, and in some cases, uploaded the images to his online storage account.
Smith was taken into custody by Philadelphia Police in August 2019. He has been detained in federal custody since he was indicted federally in September 2019. As a result of his conviction on seven counts of manufacturing child pornography, he faces up to 210 years in prison, which includes a mandatory minimum 15 years, five years up to a lifetime of supervised release, a fine of up to $1,750,000, and special assessments of up to $35,700. Smith must also register as a convicted child sex offender under state law.
“Smith is a predator of young children and has been for years,” said Acting Assistant U.S. Attorney Williams. “With this conviction, and Smith now facing up to 210 years in prison, his victimization of our most vulnerable citizens has finally come to an end. Thank you to all of our agency partners who remain determined to identify, prosecute and convict child predators like this defendant.”
“Herbert Smith admits inflicting repeated horrific sexual assaults on a little girl, and recording the abuse so he could savor it whenever he wanted,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “His actions are unconscionable and the harm he’s done, immeasurable. It’s cases like this that drive the FBI and our partners, as we work to protect our community’s children from depraved predators like Smith.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Court-Appointed Pennsylvania Guardian and Virginia Co-conspirators Indicted for Stealing over $1 million from Elderly WardsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Gloria Byars, 60, of Aldan, PA; Carlton Rembert, 66, of Hampton, VA; and Alesha Mitchell, 40, of Suffolk, VA, were all indicted for their roles in scheme to defraud elderly, incapacitated people out of hundreds of thousands of dollars. All three defendants were charged with one count of conspiracy and one count of bank fraud. Additionally, Rembert and Byars were charged with five counts of wire fraud, and Byars faces an additional charge of money laundering.
The Indictment alleges that between 2012 and 2018, Byars stole from dozens of incapacitated wards while serving as their court-appointed guardian. Prior to operating her own guardianship company, Byars was an office manager for a different company that was appointed to care for wards in Pennsylvania. As office manager and then as guardian herself through her own firm, Byars had unfettered access to wards’ property including bank accounts, pensions, real estate, annuities, and other assets. Byars allegedly stole money from the wards’ bank accounts by writing unauthorized checks to companies she controlled, or to shell companies controlled by Rembert and Mitchell. The Indictment further alleges that Rembert and Mitchell assisted Byars in the theft by opening bank accounts in the names of shell companies purporting to be medical billing companies and depositing the stolen checks they received from Byars into those accounts. After the stolen checks cleared, Byars, Rembert, and Mitchell are alleged to have shared the fraud proceeds.
Byars is alleged to have also stolen gold Krugerrand coins, valuable gold coins first minted in South Africa in the 1960’s to introduce the country’s gold supply onto the world market, from one elderly victim’s safe deposit box. Byars is also alleged to have stolen $131,000 from the same ward’s bank account and over $756,000 from a retired federal employee’s Thrift Savings Plan. Finally, according to court documents, Byars managed assets for an individual identified as C.G., whose heir asked for the assets’ return from Byers after C.G.’s death. But Byars had already stolen C.G.’s money. In an attempt to conceal her theft from C.G., Byars is alleged to have stolen $122,000 from yet another ward and used it to repay C.G.’s heir.
Mitchell was arrested in Virginia yesterday, has been released on bail pending trial, and will appear in U.S. District Court in the Eastern District of Pennsylvania on Friday, July 2. Byars was previously arrested in both Philadelphia and Delaware County for theft from her wards. Byars and Rembert are scheduled to appear for the federal charges in U.S. District Court in the Eastern District of Pennsylvania on Tuesday, July 6.
“As a court-appointed fiduciary, Byars had a moral and legal obligation to act in her clients’ best interest,” said Acting U.S. Attorney Williams. “Instead, she and her co-conspirators allegedly used her position to help themselves to the very property they should have been protecting – no better than wolves in sheep’s clothing.”
“Elder fraud cases are probably the most heartbreaking of the financial violations we work,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Here we have someone entrusted to oversee their incapacitated wards’ affairs, allegedly siphoning off money and property for herself and her co-conspirators. Anyone who targets vulnerable older folks for their assets has neither a conscience nor a moral compass. The FBI is committed to holding such crooks accountable, on behalf of those they’ve so cruelly victimized.”
If convicted, the defendants face the following maximum possible sentences. For each count of conspiracy to commit bank fraud and bank fraud, the maximum sentence is 30 years’ imprisonment and a $1,000,000 fine. For each count of wire fraud, the maximum sentence is 20 years’ imprisonment and a $250,000 fine and for money laundering the maximum sentence is 20 years’ imprisonment and a $500,000 fine.
The case was investigated by the Federal Bureau of Investigations and Delaware County District Attorney’s Office, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Tiwana Wright.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albany Man Sentenced for Scamming Charities with Elaborate Drug Diversion SchemeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Defendant Lorenzo Hodges, 62, of Albany, NY, was sentenced today to one and a half years in prison, three years of supervised release, and was ordered to pay $537,769 restitution and to forfeit $40,000 by United States District Court Judge Wendy Beetlestone for his involvement in a scheme to fraudulently obtain donated medications and return them to the pharmaceutical companies for profit.
The defendant pleaded guilty in May 2019 to conspiracy to commit mail fraud. According to court documents, Hodges and others duped humanitarian organizations into believing that he had selflessly organized international relief missions to deliver medicines to the sick and injured in war-torn areas, but the missions were phony. At the time he was conducting this scheme, Hodges was the General Manager of a legitimate relief agency which provided donated clothing, personal care items, and durable medical equipment to approximately 17 conflict-affected nations worldwide. As such, Hodges was in a unique position to obtain donated pharmaceuticals.
Over a two-year period from 2012 to 2014, the defendant submitted applications under the auspices of his employer asking for donations of antibacterial agents and other medications for serious conditions such as diabetes. Hodges conjured up relief missions that would seem believable, identified fake destinations, and requested medications consistent with the purpose of the bogus trips so as not to raise any red flags. He arranged for the donated drugs to be transported from the donation site to his employer; concealed the drugs in the employer’s warehouse; and then hired a trucking company that transported the drugs to a returns processor using the pharmacy license of a co-conspirator. The returns processor issued refunds to the pharmacist on behalf of the drug manufacturers, believing that the drugs had been legitimately purchased. As a result of the scheme, Hodges and his co-conspirators fraudulently obtained refunds totaling approximately $540,000 for medications that had been donated to help suffering people around the world.
“It is difficult to imagine a fraud scheme more callous than scamming a charity on behalf of people suffering in the midst of war,” said Acting U.S. Attorney Williams. “But that is exactly what this defendant did to satisfy his own callous greed. Thanks to the investigative work of our law enforcement partners, Hodges will now spend time behind bars for his crime.”
“Under the guise of charity, Lorenzo Hodges amassed donated medications meant for vulnerable people in conflict zones, returned them, and banked the proceeds,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Imagine profiting by purposely exploiting the mass suffering of others. The selfishness on display here is breathtaking. The FBI is gratified to help bring Mr. Hodges to justice.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney M. Beth Leahy.
Upper Darby Man Pleads Guilty to Straw Purchasing 20+ Handguns Last Summer at Dealers in Southeast PARead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Nafez Hutchings, 22, of Upper Darby, PA, entered a plea of guilty before United States District Court Judge Anita Brody to an Indictment charging 12 counts of providing false information to a federal firearms licensee.
Between June and August 2020, the defendant fraudulently purchased 23 handguns over 12 separate transactions with several different Federal Firearms Licensees (licensed gun stores) in Philadelphia, Montgomery, and Delaware Counties. During each purchase, Hutchings falsely reported his address and declared on Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 that he was the actual purchaser of the firearms, when in reality it was not his intention to keep possession of the weapon. Before his arrest, the defendant admitted to ATF agents that he provided a false address and falsely certified on the ATF forms that he was buying the firearms, when in fact he was buying them on behalf of other individuals.
“Our Office is doing all we can to stem the tide of violent crime in Philadelphia, including indicting and prosecuting criminals who possess firearms when they’re prohibited by law from doing so. But the efforts of law enforcement to keep guns out of the wrong hands are thwarted every time someone straw purchases a weapon like this defendant did, 23 times over,” said Acting U.S. Attorney Williams. “Make no mistake -- If you knowingly buy a handgun for someone else who cannot legally purchase one, and they use it to commit a crime, it is no better than if you had fired that gun yourself. And that is exactly how you will be treated by the federal authorities.”
“Knowingly buying and selling firearms without a license is a violation of federal law, and by doing so, Hutchings circumvented the laws which are designed to protect communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The investigation of firearms diversion from the legal to the illegal market place is ATF’s top priority, and we are committed to working alongside our law enforcement partners to seek justice above anything.”
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 (ATF) and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
Philadelphia Man Who Raped Child for Eight Years Indicted for Concealing His Crimes to Obtain U.S. CitizenshipRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Sumo Dukulah, 47, of Philadelphia, PA, was charged by Indictment on the charge of procurement of citizenship by false statement.
According to the Indictment, approximately fourteen months after he took the oath and was sworn in as a United States citizen, the defendant was arrested in Philadelphia in April 2013 on charges of raping a minor child, beginning when the victim was eight years-old in 2004 and continuing until March 2013 when she was 16 years-old. Dukulah was ultimately convicted of those charges and is currently serving a state sentence of 31-63 years in prison. The Indictment alleges that when the defendant applied to become a naturalized U.S. citizen in 2011, he falsely claimed that he had never committed a crime, when during the same time period, he was actively committing a crime by raping a child. As a result of his fraudulent claims in his application to U.S. Citizenship and Immigration Services, Dukulah’s citizenship was granted in January 2012.
“Applying to become a citizen of the United States necessitates your willingness to adhere to the laws of our Nation,” said Acting U.S. Attorney Williams. “What this defendant did, and the crime for which he was convicted, is not just illegal but is also morally repugnant and shocking. The defendant then allegedly lied about it in order to obtain U.S. citizenship, and he will have to answer to this charge in federal court.”
If convicted, the defendant faces a maximum possible sentence of 20 years’ imprisonment, a $500,000 fine, three years’ supervised release, a $200 special assessment, and revocation of his U.S. citizenship.
The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Convicted After Trial of Unlawfully Possessing Drugs and GunsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jamir Foushee, a/k/a “Jamir Young,” 31, of Philadelphia, PA, was convicted after trial of possession of a firearm by a convicted felon, possession with intent to distribute “crack” cocaine, and possession of a firearm in furtherance of a drug trafficking crime. The charges against the defendant stemmed from his unlawful possession of these items while riding in his car, which was stopped by Philadelphia police in the Kensington section of the city.
The evidence presented at trial proved that, in April 2019, Foushee was riding as a passenger in his own car when it was stopped for a traffic violation by Philadelphia Police officers. After observing the defendant reach under his seat, officers discovered a handgun under that seat. The defendant then stated to officers that the other guns and drugs in the car were his. Police detained Foushee and the driver of the vehicle, searched the car, and found crack cocaine packaged for sale, as well as two additional firearms. At the time of the incident, the defendant was a convicted felon and was not allowed by law to possess a firearm.
“Less than three months ago, I vowed that our Office would continue doing everything possible to reduce gun violence in Philadelphia through our ‘All Hands On Deck’ initiative,” said Acting U.S. Attorney Williams. “And in just the last three weeks, we have delivered on that promise by securing guilty verdicts from three federal juries against defendants who illegally possessed firearms after sustaining felony convictions. Now, our efforts are multiplying; just this week the Justice Department announced a nationwide initiative to target illegal firearms and support community violence intervention programs in cities experiencing a spike in gun violence like Philadelphia.”
“Drugs and firearms are a very dangerous combination, especially while in the hands of a felon,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “We will continue our great partnership with the Philadelphia Police Department and the U.S. Attorney’s Office 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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney David E. Troyer, and Department of Justice Trial Attorney Randall Warden.
Dawara Brothers Sentenced to Nine Years Imprisonment for Arson and Tax Fraud Conspiracy Stemming from February 2018 Old City FireRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Imad Dawara, 40, of Swathmore, PA, and Bahaa Dawara, 32, of Woodlyn, PA, were both sentenced this week by United States District Court Chief Judge Juan R. Sanchez to nine years in prison and ordered to pay more than $22 million in restitution for conspiracy to commit arson and conspiracy to defraud the United States.
The defendants previously pleaded guilty and admitted to planning and causing the arson of their business, RCL Management LLC, at 239-241 Chestnut Street in Philadelphia on February 18, 2018, and to evading the assessment of their income tax liabilities from 2015-2017. Imad Dawara also admitted to fraud in connection with his receipt of health care and other government benefits.
From around December 2012 until February 18, 2018, the defendants owned and operated various restaurants and entertainment establishments in Philadelphia, including a restaurant and hookah lounge in the 200 block of Chestnut Street. As detailed in the Indictment, the Dawara brothers were struggling in their Chestnut Street business and had a years-long history of fighting with their landlord. By October 2017, the Dawara brothers had ceased all business operations at the Chestnut Street location and attempted to sell the business, but as they had failed to renew their lease or pay rent, no one would buy it.
On January 31, 2018, their landlord directed the defendants to vacate the premises by February 2, and advised them that they owed over $64,000 in overdue payments. Nonetheless, the Dawaras failed to vacate the premises, and on the same day they were to leave, RCL Management purchased a $750,000 insurance policy providing coverage in the event of an accidental fire at the Chestnut Street property. On February 18, a fire was intentionally started with gasoline in the basement of 239 Chestnut Street, which destroyed the entire building, displaced approximately 160 people, closed the 200 block of Chestnut Street for months, and closed numerous businesses.
“The Dawara brothers selfishly and criminally thought only of themselves and their finances that fateful February night,” said Acting U.S. Attorney Williams. “But their horrific conduct left so many victims in its wake – including individuals, businesses and the City of Philadelphia at large. I hope these sentences provide a measure of closure to the victims, and I want to thank all of our partner agencies for coming together to investigate and hold the Dawaras responsible.”
“This sentencing is the result of the exhaustive effort by ATF’s Arson and Explosives Task Force working in harmony with the U.S. Attorney’s Office,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The Dawara brothers will now serve nine years in federal prison, as a result of his actions. Criminals who commit arson for any reason jeopardize the safety of the community and first responders and will be held accountable.”
“These sentencings demonstrate that individuals who are willing to destroy property for financial gain and commit income tax violations will be held accountable,” said IRS Criminal Investigation Acting Special Agent in Charge Joleen Simpson. “The Dawara brothers had no regard for the well-being of others and were focused on their own greed. This collaborative effort with our law enforcement partners highlights the excellent investigative work done in ensuring such deplorable crimes are brought to justice.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Philadelphia, the Philadelphia Fire Marshal, the Philadelphia Police Department, the Internal Revenue Service – Criminal Investigation, the U.S. Department of Health & Human Services - Office of the Inspector General, with assistance from the Philadelphia Parking Authority Taxi and Limousine Division, and is being prosecuted by Assistant United States Attorneys Jeanine Linehan and Katherine E. Driscoll.
Former Philadelphia Water Department Employee Indicted for TheftRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Thomas Staszak, 46, of Philadelphia, PA, a former employee of the City of Philadelphia Water Department (“PWD”), was Indicted by a federal grand jury on multiple charges of theft from a federally funded program and computer fraud.
The Indictment charges that, on multiple occasions from approximately April 2017 through at least November 2018, the defendant accessed PWD’s computerized inventory control system without authorization, using log-in credentials associated with PWD employees under his supervision at a PWD storeroom. Staszak is then charged with creating false entries in PWD’s electronic records to provide justifications for removing maintenance materials, for example bulk wire, from the storeroom. The Indictment further alleges that the defendant physically took the materials from PWD’s inventory, transported them to local scrap yards, sold the materials, and kept the proceeds. In this fashion, Staszak is alleged to have stolen items valued in excess of approximately $164,000 before he was caught. And according to the Indictment, PWD receives federal funds and assistance in excess of $10,000 annually.
“As alleged, Thomas Staszak used his public position to enrich himself to the detriment of all Philadelphians who expect and deserve honest services from City employees,” said Acting U.S. Attorney Williams. “The Philadelphia Water Department is charged with providing clean, safe water for millions of residents and businesses, and protecting the region’s water resources, all on a limited budget. The defendant’s alleged actions took money and resources directly out of the hands of taxpayers and into his own pocket.”
If convicted, the defendant faces a maximum possible sentence of 65 years imprisonment and $2,750,000 in fines.
The case was investigated by the Federal Bureau of Investigation and the City of Philadelphia’s Office of Inspector General, and is being prosecuted by Assistant United States Attorney Eric L. Gibson.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.