Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Former Philadelphia Middle School Teacher Sentenced to 15 Years for Multiple Child Exploitation OffensesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Christopher O’Sullivan, 32, of Philadelphia, PA, was sentenced to 15 years in prison, 10 years of supervised release, and ordered to pay $5,200 restitution by United States District Judge Nitza I. Quinones-Alejandro for crimes stemming from his sexual exploitation of a student via text message.
In October 2020, the defendant pleaded guilty to one count of enticement of a minor, and one count of production of child pornography. According to court documents, over the course of several weeks in June and July 2019, O’Sullivan, a middle school teacher at a Philadelphia charter school at the time, sent a series of sexually suggestive text messages to Minor 1, a student of his who was twelve years old, in an effort to coerce the boy to engage in sexual activity and to send O’Sullivan sexually explicit photographs. Eventually, the child acquiesced to the pressure and sent O’Sullivan a photograph of his genitalia. The child’s parents saw the sexually explicit text messages on the child’s phone and contacted authorities, and law enforcement later found the same photograph on the defendant’s phone.
“O’Sullivan held one of the most sacred positions of trust in our society, a molder of young minds – a teacher,” said Acting U.S. Attorney Williams. “Schools must be safe havens for children. For this defendant to abuse his position by targeting and manipulating a student for his own perverse gratification is almost unimaginable. As always, we stand ready with our federal partners to identify and prosecute individuals that perpetuate this type of child abuse.”
“What a betrayal by Christopher O’Sullivan,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He went from teaching a classroom full of kids to eagerly manipulating and sexually exploiting a vulnerable young boy. O’Sullivan is now being held responsible for his predatory behavior, locked behind bars so he can’t target anyone else’s child.”
This case is part of Project Safe Childhood, a Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Philadelphia Man Convicted After Trial for Unlawful Possession of FirearmRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Stacy Gallman, 31, of Philadelphia, PA, was convicted today at trial for being a felon in possession of a firearm.
In December 2019, Philadelphia Police Officers pulled Gallman over for a traffic violation when the vehicle he was driving failed to stop at a stop sign. When they approached the vehicle, officers noticed that the passenger had a firearm in his pocket. Moments later, when the officers asked Gallman to step out of the car, they discovered a second firearm next to the driver’s seat. At the time of the incident, the defendant was a convicted felon and was not allowed by law to possess a firearm.
In an unrelated case, on June 11, 2021, Kenneth Blakeney, 29, of Philadelphia, PA, was convicted after trial, also for being a felon in possession of a firearm. The firearm in Blakeney’s possession was also discovered during a traffic stop by Philadelphia police.
“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. “Today’s conviction is the second in as many weeks against someone who sustained a felony conviction and then illegally possessed a firearm. Both men will now face lengthy prison sentences.”
“The possession of a firearm by a convicted felon threatens the safety of our entire community,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Thanks to our partners at the Philadelphia Police Department and the U.S. Attorney’s office, this defendant is no longer in a position to harm the citizens of Philadelphia.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Special Assistant United States Attorney Ashley Martin.
Philadelphia Man Charged with Stealing Nearly $1 Million in PPP FundsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Devron Brown, 50, formerly of Philadelphia, PA, was arrested and charged by Indictment with two counts of bank fraud and nine counts of money laundering in connection with an alleged scheme to unlawfully obtain and misuse loan proceeds offered through the federal Paycheck Protection Program (“PPP”).
The Indictment alleges that, in June 2020, the defendant fraudulently obtained approximately $937,500 in PPP loan proceeds, pursuant to a PPP loan application that contained false representations regarding his alleged construction business, Just Us Construction Inc. According to the Indictment, Brown allegedly made multiple false characterizations about Just Us Construction, including the number of employees, the wages paid to them, the payroll taxes paid on those wages, and the intended use of the PPP loan proceeds. It is also alleged that Brown used those PPP loan proceeds for personal and unauthorized purchases, including a new residential property in Florida, a motorcycle, an all-terrain vehicle, a luxury automobile, and diamond jewelry. The defendant also allegedly caused a second fraudulent PPP loan application to be submitted for approximately the same amount in early 2021, but that application was denied.
“Paycheck Protection Program funds are intended to help American small-businesses continue paying their employees, even if revenues have dropped dramatically due to the pandemic,” said Acting U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. As alleged, Brown fraudulently obtained nearly $1 million in funds that could have helped struggling businesses and individuals.”
“The Paycheck Protection Program was created to provide emergency financial assistance to businesses and employees battered by the pandemic,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Unfortunately, criminal opportunists with dollar signs in their eyes promptly got to work trying to defraud the federal government by seeking a cut of the funds. The FBI will continue to aggressively pursue those using the money from the PPP to bankroll their own lavish lifestyles at taxpayers’ expense.”
If convicted of all charges, the defendant faces a maximum possible sentence of 150 years of imprisonment, three years of supervised release, a $4,250,000 fine, restitution, and an $1100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Kathryn Deal.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Montgomery County Defendant Charged with Possession of Molotov CocktailRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jacob Dean Robotin, 25, of Willow Grove, PA, was arrested and charged by Criminal Complaint on charges of possessing an unregistered destructive device, specifically, a homemade firebomb, also known as a “Molotov cocktail.”
The Complaint alleges that, on the evening of December 31, 2020, members of a large group of individuals wearing dark clothing vandalized the Federal Detention Center, the Robert C. Nix Federal Building, and other property in Center City Philadelphia by spray painting, setting off fireworks, and breaking windows. Shortly thereafter, at 600 Sansom Street, Philadelphia Police officers stopped three individuals, including the defendant. Robotin had a green, military-style backpack and was wearing dark clothing with spray paint on Robotin’s pants. After other police officers identified the three individuals as being among the larger group which had members participating in the vandalism of the Nix Building that evening, officers placed Robotin and the other two individuals under arrest.
According to the Complaint, officers found a glass bottle containing liquid and fuses, along with some tape inside Robotin’s backpack. Officers noticed that the glass bottle had a heavy odor of flammable liquid. In addition, the backpack contained additional fuses, lighters, camping heat sources, and fireworks, among other items. The Philadelphia Police Bomb Disposal Unit took custody of these items and later transferred custody of the items to the FBI. The Explosives Unit of FBI’s Laboratory later determined that the glass bottle contained gasoline, and together with the fuses, comprised a homemade firebomb, or Molotov cocktail.
Earlier today, Robotin was arrested by the FBI and had an initial appearance in federal court. The defendant has been released on conditions.
“Homemade Molotov cocktails can be incredibly dangerous,” Acting U.S. Attorney Williams said. “Here, the defendant is alleged to have carried all of the materials needed to endanger the lives of many people. Luckily, Philadelphia Police arrested Robotin before anyone was hurt. Let this case serve as a warning to others who might consider acting in a similar way – possession of a Molotov cocktail is not protected speech nor harmless hijinks; it is a serious federal crime.”
“Molotov Cocktails are incendiary weapons which pose a significant danger to the entire community,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “There is no telling what future acts of violence were prevented because of the swift action of law enforcement. ATF will continue to work alongside our local, state and federal partners to protect our communities against violent crime.”
“Robotin allegedly took to the streets of Center City on New Year’s Eve, armed with a dangerous incendiary device and components for more,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “People don’t casually stroll around with a Molotov cocktail in their bag, just for fun. It’s fortunate that Philadelphia police officers stopped and this defendant and found the firebomb before it did any damage or hurt someone.”
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, followed by three years of supervised release, and a fine of up to $250,000.
The case was investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Philadelphia Police Department, and is being prosecuted by the United States Attorney’s Office for the Eastern District of Pennsylvania.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two PA Chiropractic Practices Pay over $800,000 to Resolve Alleged False Claims Act Liability Arising from Billing of P-Stim DevicesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that two related, integrative chiropractic practices and their chiropractor owners have agreed to make payments totaling $805,978 to resolve liability under the False Claims Act for the alleged improper billing of P-Stim electro-acupuncture devices, in these cases branded ‘ANSiStim.’
The settling parties are: (1) Discover Optimal Healthcare of Brookhaven, PA, with its owner, Jason Weigner, and his affiliate Weigner Healthcare Management Group, LLC (collectively, “Weigner”); and (2) Yucha Medical Pain Management & Chiropractic Rehabilitation, LLC of Pottstown, PA, and its owners, Randolph E. Yucha and Rodney Gabel (collectively, “Yucha”).
Chiropractors are generally limited in what services they can bill to federal healthcare programs (more information here). However, integrative chiropractic practices such as Weigner and Yucha may in certain circumstances bill additional services to federal healthcare programs through affiliated medical providers, in this case a medical doctor contractor. From approximately September 2016 to February 2017, Weigner and Yucha separately billed Medicare, and Weigner also billed the Federal Employees Health Benefit Program, for the implantation of neuro-stimulators – a surgical procedure which usually requires an operating room and which is reimbursed by federal healthcare programs – when in fact the only procedures performed had been the non-surgical application of ANSiStim by a non-surgeon contractor physician. ANSiStim is another brand name for the P-Stim device, which is also branded as NeuroStim, Stivax, E-Pulse, and NSS-2 Bridge. ANSiStim devices are applied with an adhesive and insertion of a limited number of needles; their application does not involve surgery or anesthesia, nor does it take place in an operating room. Federal healthcare programs do not reimburse for devices such as ANSiStim, whether they are characterized as an electro-acupuncture device or as an implantable neuro-stimulator. Weigner promoted this scheme to Yucha and received a portion of Yucha’s profits.
For the fraudulently billed P-Stim services here, Weigner previously repaid $306,342 to Medicare and will pay an additional $356,150. Likewise, Yucha had repaid $94,089 to Medicare and will pay an additional $49,397.
“As we have said before, the application of P-Stim devices is not surgery and should not be billed using the surgical codes improperly pushed by marketers,” said Acting U.S. Attorney Williams. “If a marketer pushes a healthcare scheme like P-Stim that sounds too good to be true, it likely is – and you shouldn’t agree to it.”
These are the fourth and fifth P-Stim provider settlements announced in this District as part of an ongoing investigation. Other jurisdictions including the Southern District of Texas, the Southern District of Georgia, and the Middle District of Tennessee have also taken action to hold providers accountable.
Acting U.S. Attorney Williams continued: “Our continued enforcement through this series of cases has already recovered millions and is a lesson to anyone who might consider a similar fraudulent billing scheme – especially those that prey on vulnerable Medicare beneficiaries looking for legitimate pain management solutions. You will be held accountable by our Office and our partners at the Centers for Medicare & Medicaid Services’ Center for Program Integrity, the Department of Health and Human Services Office of Inspector General, other federal healthcare programs, state partners, and sister U.S. Attorney’s Offices around the country. And if you have already been involved in such a scheme, it is better to come forward and self-disclose than have us find you, as we will.”
“Every time DOJ stops a provider who is committing fraud, it protects patients and improves the sustainability of the Medicare program,” said Chiquita Brooks-LaSure, Administrator for the Centers for Medicare and Medicaid Services (CMS). “Actions like this to combat fraud, waste and abuse in our federal programs would not be possible without the successful partnership of CMS, the Department of Justice and Department of Health and Human Services Office of Inspector General.”
“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG, CMS’s Center for Program Integrity, and the U.S. Attorney’s Office will continue to evaluate and pursue inaccurate billings of P-Stim and similar devices.”
The settled civil claims are allegations only. There has been no determination of civil liability. This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Matthew E. K. Howatt, Civil Chief Gregory B. David, and Auditor Dawn Wiggins.
Philadelphia Man Convicted After Trial for Unlawful Possession of FirearmRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Kenneth Blakeney, 29, of Philadelphia, PA, was convicted today at trial for being a felon in possession of a firearm.
In March 2019, Philadelphia Police Officers pulled Blakeney over for a traffic violation in North Philadelphia, and they observed a gun in his car. The defendant was a convicted felon at the time and was not allowed by law to possess a firearm. The defendant fled from the police, leading officers on a car chase for multiple blocks until the defendant eventually jumped out of his car and ran. He was arrested several months later and was charged by federal indictment in October, 2019.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in Philadelphia where gun violence is rampant,” said Acting U.S. Attorney Williams. “As the evidence presented at trial showed, Kenneth Blakeney illegally possessed a gun and then fled from police. Our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck’ to get criminals like this defendant off the streets for a long, long time.”
“ATF is determined to make our streets safer by working with our local, state and federal partners,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “We will always be committed to identifying and removing armed criminals from our communities. The conviction of Kenneth Blakeney is an example of the strong partnership between ATF and the Philadelphia Police Department and a credit to the excellent work of the U.S Attorney’s Office.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang and Anthony Wzorek.
Chester County Man Charged with Tax Evasion for Second TimeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Michael Goldner, 51, of Paoli, PA, was charged by Indictment on a charge of tax evasion. The defendant made his initial appearance in federal court this afternoon.
The Indictment alleges that Mr. Goldner accrued a tax liability of approximately $1,858,740 for the years 2013 through 2017, and that beginning in 2016 he engaged in a scheme to evade the payment of those taxes. Goldner’s tax evasion scheme involved having his employer make payments to Goldner’s wife for payment of personal expenses, including the mortgage on the house where his family resided, rent for an apartment where he resided, service for his pool, dance classes for his daughter, and a vacation for his family. The defendant also had his employer make some payments toward a nearly $5 million restitution judgment that Goldner owed from a 2016 wire fraud and tax evasion conviction in the Eastern District of Pennsylvania. The Indictment further alleges that Goldner failed to report this additional income on his 2016 and 2017 tax returns.
“Goldner’s alleged scheme to hide his true income victimized honest taxpayers in two ways: first, by evading more than $1.8 million in tax liability to the IRS, and second, by avoiding having to make additional payments towards the large balance (more than $4 million) he still owed in court-ordered restitution from his previous conviction on similar charges,” said Acting U.S. Attorney Williams. “Clearly this defendant has not learned that you cannot outrun the IRS. Anyone who is contemplating similar fraud should view this case as a warning that it will not succeed.”
“If you keep breaking the law, the FBI and our partners will keep coming after you,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Willfully defrauding the government and cheating honest taxpayers isn’t ‘creative accounting.’ It’s a federal crime.”
“The American tax system provides government services critical to our people,” said Joleen Simpson, Acting Special Agent in Charge of IRS Criminal Investigation. “Every time someone cheats the tax system, the burden of providing vital services increases on taxpayers who pay their fair share.”
If convicted, the defendant faces a maximum possible sentence of five years in prison, a $250,000 fine, a three years period of supervised release, and a $100 special assessment.
The case was investigated by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney David J. Ignall.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bucks County Drug Manufacturer and Two Executives Charged with Conspiracy to Defraud the FDARead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that generic drug manufacturer KVK-TECH, Inc., headquartered in Newtown, PA, Murty Vepuri (69), and Ashvin Panchal, (50), also of Newtown, were charged by Indictment with conspiracy to defraud the United States Food & Drug Administration (“FDA”) arising from the alleged distribution of unapproved drugs as well as alleged efforts to mislead the FDA and conceal information which could impact drug safety and effectiveness. KVK-TECH was also charged with one count of mail fraud arising from the alleged sale of unapproved drugs to customers who believed the drugs were made with the approval of the FDA.
According to the Indictment, from approximately October 2010 through at least March 2015, Vepuri, the de facto owner of KVK-TECH, and Panchal, the company’s head of Quality Assurance, conspired to defraud the United States and its agencies by impeding, impairing, and defeating FDA’s mission to protect the health and safety of the public by ensuring that drugs marketed and distributed in the United States are safe and effective for their intended uses.
As alleged in the Indictment, Vepuri directed KVK-TECH’s day-to-day operations and made all key business decisions for the company, including decisions related to drug regulatory requirements, drug composition, drug manufacturing quality, purity, and potency. However, Vepuri – who previously owned a generic drug manufacturer in New Jersey that was subject to a restraining order due to ongoing FDA violations – is charged with hiding his involvement in KVK-TECH by placing its ownership in private trusts for the benefit of his children. Vepuri then allegedly represented to the FDA that he was merely an advisor or consultant to KVK-TECH, when in reality he exercised unchecked authority over the company.
As alleged, under Vepuri’s control, KVK-TECH ignored regulatory requirements that had the potential to slow the manufacture, distribution, and sales of its drugs. Vepuri and Panchal are also charged with having provided false explanations to the FDA when inspectors identified violations. Often, Vepuri and Panchal attributed regulatory failures to a mistake or misunderstanding, and KVK-TECH would falsely assure the FDA that violations had been addressed when they knew no corrective and preventative actions had been taken.
The Indictment highlights KVK-TECH’s conduct with regard to Hydroxyzine, a KVK-TECH prescription drug for the treatment of anxiety, for which Vepuri purchased an active pharmaceutical ingredient (“API”) made in Mexico by Dr. Reddy’s Laboratories (“DRL Mexico”). DRL Mexico was not an FDA-approved source. To the contrary, as alleged, the defendants knew that DRL Mexico’s API was considered adulterated by the FDA due to significant violations of good manufacturing practices (cGMP) at DRL Mexico’s manufacturing plant. The cGMP violations were so severe that the FDA issued an import alert for all DRL Mexico API from July 2011 through July 2012. Nonetheless, from 2011 through 2013, KVK-TECH is charged with having knowingly distributed more than 383,000 bottles of the unapproved Hydroxyzine without the FDA’s knowledge or approval.
“FDA laws and regulations regarding drug composition, manufacturing, quality, and related controls are designed to protect Americans’ health and safety – so we can all be confident that our prescription medications will be safe and effective,” said Acting U.S. Attorney Williams. “When companies attempt to game the system to avoid these regulations and increase their profits, the ramifications are potentially catastrophic. As this Indictment makes clear, any individuals or companies that try to evade the law in this manner will be brought to justice.”
“The FDA’s requirements for drug approval are designed to ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing unapproved drugs to U.S. consumers will not be tolerated,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office. “We will continue to investigate and protect the public health of the nation.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud against the Department of Labor’s programs. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Syreeta Scott, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
If convicted, Vepuri and Panchal each face a maximum possible sentence of five years in prison, three years of supervised release, a $250,000 fine and other financial penalties including forfeiture. KVK-TECH faces fines up to $4 million and other financial penalties such as forfeiture and probation. The parties also face mandatory exclusion from participating in federal programs.
The case was investigated by the FDA-Office of Criminal Investigations, Homeland Security Investigations, and the Department of Labor Office of Inspector General, and is being prosecuted by Assistant United States Attorneys M. Beth Leahy and Patrick J. Murray, and Ross Goldstein, Senior Litigation Counsel for the Department of Justice Consumer Protection Branch.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Georgia Man Arrested for Hoax Bomb Threat Concerning Plane on Tarmac at Lehigh Valley International AirportRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Donald Thompson, 43, of Scottdale, Georgia, was arrested and charged by Complaint and Warrant on charges of maliciously conveying false information about an explosive, and false information and hoaxes. If convicted, the defendant faces a maximum possible sentence of fifteen years in prison.
The Complaint alleges that on May 27, 2021, defendant Donald Thompson called into the Lehigh Valley International Airport, Operations Division, located in Allentown, PA, stated that he had a disagreement with his daughter S.T., and claimed she was taking marijuana to an individual in St. Croix aboard a Delta flight. After a short discussion, the Operations Division transferred him to the Delta counter.
The Complaint further alleges that the defendant proceeded to ask a Delta supervisory representative for information about S.T. and her travel. When the Delta representative declined to share the requested information, the defendant allegedly explained that his daughter was trying to smuggle drugs to St. Croix, asked about Delta’s procedures, and asked if they could get his daughter off the airplane. The Delta representative responded that Delta did have a protocol but that it could not be shared with the caller. As alleged, the caller became irate, identified himself as S.T.’s father Donald Thompson, asked what the Delta representative would do if “I told you there was a bomb on the plane,” and hung up the phone.
The Delta representative immediately called law enforcement and corporate security. The airplane was on the tarmac at the time, and the passengers and crew were swiftly deplaned. A search team and bomb dog were deployed to the airplane, and S.T. was screened and questioned by a Lehigh Northampton Airport Authority detective. No drugs or bombs were located on the airplane or on S.T.’s person or luggage.
Donald Thompson was arrested on June 9, 2021 in Georgia and had his initial appearance that same day. A detention hearing has been scheduled for June 14, 2021 in the Northern District of Georgia, after which the defendant will come to the Eastern District of Pennsylvania to face the charges.
“As a result of this defendant's alleged conduct, law enforcement resources were diverted to respond to what they believed was an imminent, terrifying threat to everyone on the plane and in the airport,” said Acting U.S. Attorney Williams. “As this case exemplifies, bomb threats – even hoax bomb threats such as the one alleged to have been made by this defendant – are no laughing matter; they are federal crimes with serious consequences.”
“The FBI and our partners take all threats of violence seriously. With lives potentially at risk, we have to,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Hoax threats consume law enforcement resources needed for actual emergencies and cause serious disruptions for the locations and people targeted. Anyone who pulls something like this should expect the FBI to come knocking. It’s a crime and you will be held accountable.”
The case was investigated by Allentown Resident Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Mary A. Futcher.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Montgomery County Children’s Swim School Employee Sentenced to Seven Years for Trafficking in Child PornographyRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Danielle Sebenick, 29, of Glenside, PA, was sentenced to seven years in prison, and ten years of supervised release by United States District Court Judge Petrese B. Tucker for her distribution and possession of child pornography.
In May 2019, the defendant pleaded guilty to charges stemming from an investigation into her trafficking in videos of child pornography on the internet during November 2018, while she was employed at Kids First Swim School in Jenkintown, PA.
Authorities identified Sebenick as the administrator of an online site that was dedicated to the sexual abuse and exploitation of children. She used the online site to communicate with other child sex offenders and to traffic in child pornography. At the time that she committed these crimes, Sebenick was six months’ pregnant with her first child; during her online communications with other child sex offenders, Sebenick discussed her plans to sexually abuse her baby as soon as she gave birth. Fortunately, Sebenick was identified by law enforcement, arrested, and incarcerated. She gave birth in prison and the child was placed in the custody of family members.
“Not only did this defendant commit the heinous crime of possessing and distributing child pornography, but she did so while employed at a business that caters to children and while threatening to sexually abuse her own baby,” said Acting U.S. Attorney Williams. “The thought of a mother bringing a child into the world with the plan to abuse him or her, a helpless infant, is almost unfathomable. She will now spend years behind bars where she no longer poses a threat to our community.”
“Today’s sentence reflects the seriousness of the defendant’s crimes and the irrevocable damage she caused,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “Homeland Security Investigations will continue to work collectively with our law enforcement partners to investigate and prosecute those who commit the heinous crime of possessing and distributing child pornography.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Homeland Security Investigations, the Abington Police Department, and the Montgomery County Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys Kelly Harrell and Michelle Rotella.
Philadelphia Man Convicted of 2017Armed Robbery of Germantown Avenue Bar in Mounty Airy NeighborhoodRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Lawrence Laws, 28, of Philadelphia, PA, was convicted today at trial of Hobbs Act robbery (robbery which interferes with interstate commerce) and using, carrying and brandishing a firearm during and in relation to a crime of violence arising from his participation in a robbery of a business in the Mount Airy section of Philadelphia.
In February 2017 at approximately 1:00 a.m., the defendant and two co-defendants laid in wait for the owner of the Mermaid Bar, located on Germantown Avenue, as he was closing the bar for the night along with his bartender. The owner of the bar approached his vehicle and, after realizing that one of the defendants was inside waiting for him, both he and the bartender took off running. The defendants caught up to the owner and bartender and ordered them onto the ground and then back to the bar at gunpoint, where they stole a firearm, cash from the register and from a safe in the basement, cartons of cigarettes and a cell phone. The defendants also took the owner’s debit card and PIN number, which they used to make multiple cash withdrawals from the bank ATM across the street before fleeing the scene together. Laws co-defendants both previously pleaded guilty to charges related to this incident.
“Lawrence Laws and his co-defendants committed a brazen armed robbery that endangered innocent lives and left a long-time business owner and one of his employees traumatized,” said Acting U.S. Attorney Williams. “These three defendants should serve as an example to others -- if you rob any kind of business in Philadelphia with a firearm, you are going to face serious federal charges. Our Office is committed to being ‘All Hands On Deck’ working with our law enforcement partners to bring violent criminals to justice.”
“The FBI’s Violent Crime Task Force works closely with our local law enforcement partners to combine our resources as an effective strategy in reducing violent crime in Philadelphia,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Today's guilty verdict is a direct result of this unique collaboration and is another step towards making our communities safer.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Alison Kehner and Anthony Wzorek.
Delaware Man Sentenced to over Seven Years for Defrauding Cisco Systems, Microsoft, Lenovo, and APC Out of More than $3.5 million in Computer HardwareRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Justin David May, 31, of Wilmington, DE was sentenced today to seven years and eight months in prison, five years of supervised release, ordered to pay more than $4 Million in restitution and over $300,000 forfeiture by United States District Judge Joel H. Slomsky, following his guilty pleas in two separate cases to 42 counts of mail fraud, 10 counts of money laundering, three counts of interstate transportation of goods obtained by fraud, and two counts of tax evasion.
The defendant’s convictions stem from from separate schemes he perpetrated in order to defraud Cisco Systems Inc. (“Cisco”), Microsoft Corporation (“Microsoft”), Lenovo Group Ltd. (“Lenovo”), and APC by Schneider Electric (“APC”) out of computer hardware, by submitting to these manufacturers hundreds of false warranty claims seeking the advance replacement of more than $5 million worth of computer hardware. While not every false claim was successful, most of the claims did deceive the manufacturers, and May successfully defrauded them into shipping more than $3.5 million worth of computer hardware to him and several co-schemers.
May’s fraud schemes involved the registration of false domain names and the creation of false e-mail addresses, which were used to submit the false warranty claims. After first obtaining legitimate serial numbers for Cisco computer hardware, Microsoft Surface tablets, Lenovo Thinkpads, and APC Smart-UPS that he did not own, the defendant contacted the companies, using false identities and the false email addresses he had created, and claimed to be the owner of a piece of computer hardware that was supposedly broken. May knew how to explain the supposed problem in such a way that the item in question could not be fixed through trouble shooting and would instead require a replacement. May promised to return the supposedly broken item as soon as he received the advance replacement, and he gave false addresses to which the replacement items could be shipped, including many addresses in Philadelphia, South Jersey, and Delaware. After picking up the hardware, May sold most of it through eBay or to various computer equipment resellers, and he never returned any of the supposedly broken items, because he never owned them in the first place.
The primary victim of the defendant’s fraud schemes was Cisco. With respect to Cisco, May personally submitted 267 false warranty claims, while co-schemers based in Texas submitted another 101 false warranty claims. Out of these 368 total false warranty claims, May and his co-schemers were successful on at least 252 occasions, and between April 12, 2016 and April 3, 2017, May and his co-schemers deceived Cisco into shipping Cisco hardware worth almost $3.5 million. May laundered the proceeds he obtained from the Cisco scheme by cashing checks he received from the computer equipment resellers at a check cashing business rather than depositing them in his bank account, and he used some of the proceeds to buy a new BMW.
With respect to Microsoft, May and a Singapore-based co-schemer were responsible for the submission of 227 false warranty claims to Microsoft, and they were successful on 139 of these false claims, which induced Microsoft into shipping to May a total of 139 Microsoft Surface tablets with a retail value of $364,761.
With respect to Lenovo, May personally submitted at least 216 separate false warranty claims, and as to each he claimed that his Lenovo ThinkPad hard drive had failed. These false warranty claims were successful on 193 occasions, and May caused Lenovo to ship to him 193 separate “replacement” hard drives, with a retail value of $143,000. May sold all of these hard drives through an eBay store he operated.
With respect to APC, May induced APC to ship at least three of its uninterruptable power supply products, with a retail value of at least $11,400 through the submission of false warranty claims.
While May earned hundreds of thousands of dollars through his illegal fraud scheme, he failed to pay any income tax on that money, and instead he evaded the payment of at least $52,000 in federal income taxes.
“Warranties are designed to make consumers whole by replacing faulty products, not to be exploited by scammers looking to turn an illegal profit,” said Acting U.S. Attorney Williams. “Warranty fraud is not a victimless crime, rather, companies which support employment for thousands of workers stand to lose millions of dollars, which was the case here. The defendant’s scheme caused real harm, which is why he will now spend many years behind bars as punishment for his actions. I would like to thank the FBI and IRS for their dedication and partnership in this matter.”
“May and his co-conspirators undermined the warranty process which exists to support honest consumers. They profited from this complex scheme while defrauding these companies and the federal government,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Through the hard work and collaborative efforts of the FBI and IRS, this sentencing sends the message to those who seek to make a profit through fraud and deception, that this conduct bears significant consequences.”
“IRS Criminal Investigation will painstakingly investigate cases when individuals have taken property that belongs to others,” Thomas Fattorusso, Special Agent in Charge of IRS Criminal Investigation. “We will continue to be persistent in our mission to take apart these illicit schemes and bring the criminals who run them to justice.”
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.
Convicted Juvenile Sex Trafficker from Delaware Sentenced to 20 Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Kristian Jones, 27, of Wilmington, DE, was sentenced to twenty years in prison, ten years of supervised release, and was ordered to pay over $15,000 in restitution to his victims by United States District Judge Nitza I. Quiñones Alejandro for his participation in a conspiracy to sex traffic minor and young adult victims.
In April 2019, following a 14-day jury trial, the defendant was found guilty of one count of conspiracy to engage in sex trafficking by force, fraud, and coercion and three counts of sex trafficking of minors by force, fraud, and coercion.
The evidence at trial showed that Kristian Jones helped manage the sex trafficking enterprise led by co-defendant Dkyle Bridges. The multi-year sex trafficking conspiracy preyed on teenage girls and young women looking for a home and support. Once lured into the trafficking circle, the victims were compelled to engage in commercial sex acts in southeastern Pennsylvania, Delaware, and elsewhere, for the co-defendants’ financial benefit. Co-defendant Bridges used violence and coercive tactics to force the victims to remain in his sex trafficking operation – including pouring water on them to keep them awake, choking them, and assaulting them. Bridges, the leader of this operation, was sentenced to 35 years in prison earlier this year.
Defendant Kristian Jones’ role in the sex trafficking operation included overseeing the trafficking of three minor girls brought to hotel rooms to engage in commercial sex acts. The defendant collected the money paid by the sex buyers, provided the condoms, controlled the victims’ access to food, and stayed on-site to ensure the victims engaged in the commercial sex acts. In doing so, the defendant fulfilled his role as the day-to-day manager of the sex trafficking of children.
The defendant’s brother, Anthony Jones, was also convicted for his role in this sex trafficking conspiracy. Anthony Jones is scheduled to be sentenced later this summer.
“Kristian Jones used the bodies of children for his own financial benefit,” said Acting U.S. Attorney Williams. “His crimes are appalling, and today’s sentence of twenty years reflects the seriousness with which the federal justice system will treat defendants convicted of sex trafficking offenses. We will continue to work collectively to investigate and prosecute these destructive crimes committed against some of the most vulnerable members of our community.”
“Jones exploited and abused his victims. His willingness to prey on vulnerable women and coerce them to engage in sex trafficking is a danger to public safety,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Today’s sentencing further affirms the FBI’s commitment to combating sex trafficking and protecting the survivors of these crimes. Together with our law enforcement partners across the region, we are dedicated to investigating and bringing federal charges against those like Jones who commit these reprehensible acts.”
The case was investigated by Federal Bureau of Investigation – Philadelphia with assistance from the Tinicum Township Police Department; Newark, Delaware Police Department; Delaware State Police; Delaware River Bay Authority; and Philadelphia Police Department; and was prosecuted by Assistant United States Attorney Priya T. De Souza and Department of Justice Trial Attorney Jessica L. Urban.
Philadelphia Corrections Officer Indicted for Smuggling Contraband into Philadelphia PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Haneef Lawton, 33, a Philadelphia Corrections Officer, Kernard Murray, 36, a currently incarcerated inmate, and Charene Stallings, 42, Murray’s girlfriend, all of Philadelphia, PA, were charged by Indictment with bribery, and conspiring to distribute narcotics and cell phones in a contraband smuggling scheme at the Philadelphia Industrial Correctional Center (“PICC”).
The seven-count Indictment charges defendant Lawton and his co-conspirators with one count of conspiracy, two counts of federal program bribery, and distribution (and possession with intent to distribute) a controlled substance (Suboxone). Stallings is also charged with an additional count of possession with intent to distribute cocaine base or crack.
The Indictment alleges that Lawton agreed with Murray to smuggle contraband on multiple occasions into PICC in exchange for a series of bribes. It further alleges that Murray arranged to sell the incoming contraband to other inmates. As part of the arrangement, Murray is charged with securing the agreement of his fellow inmate buyers to make payment arrangements with Stallings via cash and electronic peer-to-peer payment methods such as CashApp. In return for Lawton’s agreement to deliver the contraband to Murray, Murray and Stallings are alleged to have paid Lawton over $11,400, also using CashApp. As noted in the forfeiture notice, Murray and Stallings are alleged to have trafficked as much as $69,000 worth of contraband into PICC.
“Corrections officers have a difficult, oftentimes dangerous, job,” said Acting U.S. Attorney Williams. “But this does not give them an excuse to break the law, nor does it give them license to sell their silence. The U.S. Attorney’s Office will not tolerate this kind of lawless behavior.”
“Corrections officers are responsible for maintaining a safe environment in our prison facilities,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “This alleged conspiracy to smuggle in dangerous contraband undermined daily order at PICC, posing a threat to both staff and inmates and putting lives at risk. Shutting down such a bribery scheme underscores the FBI's commitment to go after corruption wherever we may find it festering.”
If convicted, the defendants Lawton and Murray face a maximum possible sentence of 45 years’ imprisonment, 3 years of supervised release, and a $2 million fine. Stallings faces those same penalties and an additional potential mandatory minimum sentence of 10 years to life imprisonment, 5 years supervised release, and a $10,000,000 fine for the cocaine base.
The case was investigated by the Federal Bureau of Investigation and Internal Affairs from the Philadelphia Department of Prisons, and is being prosecuted by Assistant United States Attorney Eric L. Gibson.
Two Men Charged for Arson of Pennsylvania State Police Vehicle During May 2020 Civil UnrestRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Ayoub Tabri, 25, of Arlington, VA, and Lester Fulton Smith, 26, of Philadelphia, PA were each charged by Superseding Indictment with two counts of arson and one count of obstruction of law enforcement in connection with the arson of a Pennsylvania State Police (PSP) vehicle.
Smith was arrested earlier this morning and will have his initial appearance in federal court in Boston, Massachusetts today. Tabri was arrested in October 2020 and remains in federal custody.
On May 30, 2020, based on a report of a large gathering of protesters, PSP troopers responded to the intersection of Broad and Vine Streets in Philadelphia at the overpass of Interstate 676 (also known as “I-676” or the “Vine Street Expressway”). PSP placed two SUVs at an on-ramp for I-676 near Broad and Vine Streets. PSP troopers responded to this area to prevent protestors from gaining access to I-676 and endangering themselves or others by demonstrating on the highway and impeding motorists’ travel.
At approximately 3:40 p.m., a group of individuals began attacking the two PSP SUVs, which were designated as PSP Units K1-7 and K1-17. Both PSP SUVs were locked and contained PSP-issued rifles and other police equipment. Eventually, individuals shattered the windows of both PSP SUVs and stole PSP equipment stored inside, including road flares.
PSP troopers assigned to the area reported that individuals then threw lit road flares into K1-17, igniting a fire which engulfed that SUV. As alleged in the Superseding Indictment, Tabri and Smith maliciously damaged and destroyed vehicle K1-17 by means of fire.
One PSP trooper, who was standing near K1-17, was hit by a lit road flare and part of his uniform caught fire. This trooper’s left hand also suffered burn injuries when he reached into K1-17 to retrieve a rifle in order to prevent individuals from stealing it. He was treated for his injuries on the scene by EMS. Due to the fire damage to K1-17 and the physical damage to K1-7, both vehicles were destroyed.
“The U.S. Attorney’s Office and the entire Department of Justice will always support peaceful protest – we are sworn to protect the rights guaranteed by the First Amendment,” said Acting U.S. Attorney Williams. “But that does not cover committing arson and other violent acts. Here, the defendants allegedly destroyed a police vehicle, endangering many lives including police officers and peaceful protestors nearby. This conduct is not free speech and is not protected by our constitution; rather, it is criminal.”
“The public has a right to peacefully protest, but when a peaceful demonstration turns violent and destruction of property ensues, that conduct will not be tolerated by any law enforcement agency,” said Major Richard D’Ambrosio, Pennsylvania State Police Area IV Commander. “Our department thanks all of the assisting local, state, and federal agencies to hold those accountable for their criminal actions.”
“The arson of a Pennsylvania State Police vehicle by these individuals, which the indictment alleges, will always be vigorously investigated by law enforcement,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “ATF remains committed to working with our law enforcement partners to seek justice for those individuals who use protest to conceal their acts of violence.”
“Tabri and Smith allegedly engaged in a deliberate effort to destroy a police vehicle, setting it ablaze in the middle of a crowded public street,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “They used lawful demonstrations as cover to foment chaos, and in doing so, put people's lives at risk. Those who sought to turn peaceful protests into riots must be held accountable for their violent criminal acts.”
If convicted, the defendants face a mandatory minimum sentence of up to seven years in prison, a maximum possible sentence of 65 years in prison, followed by three years of supervised release, and a fine of up to $750,000.
The case was investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Pennsylvania State Police, and is being prosecuted by the United States Attorney’s Office for the Eastern District of Pennsylvania.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Philadelphia Parks & Recreation Official Sentenced to over One Year in Prison for Fraud and EmbezzlementRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Paul Dignam, 59, of Philadelphia, PA was sentenced to 13 months in prison, one year of supervised release, and was ordered to pay a $3,500 fine by United States District Judge Eduardo C. Robreno for a scheme to defraud the City of Philadelphia of approximately $119,000 over the course of several years.
In November 2020, Paul Dignam pleaded guilty to mail fraud and embezzlement from a program receiving federal funds. At the time of the charged offenses, the defendant was a long-time employee of the Philadelphia Parks and Recreation (“PPR”) Department, serving most recently as the Regional Manager for the South Region. In this position, Dignam oversaw and managed the PPR programs and operations in this section of the city including activities for members of the community, fund-raising, general maintenance and supervision of personnel.
In 2011, Paul Dignam opened a bank account that purported to be for use by a recreation advisory council, a commonly used governance structure in PPR that exists to support local recreation centers and playgrounds by helping to raise funds, develop programs, and maintain play sites. Beginning in 2012 and continuing through 2019, the defendant allegedly misused this bank account by repeatedly writing checks on the account made payable to himself. He helped conceal this fraud by having bank statements mailed to his personal residence and having another individual act as a signatory on the account. The defendant then forged the other individual’s signature on the misappropriated checks and falsely noted in the memo line of the checks that they were “reimbursements” for expenses he incurred by making purchases on behalf of PPR. In sum, Paul Dignam wrote himself approximately 102 checks worth approximately $119,000.
Paul’s brother, Leo Dignam, 61, also of Philadelphia and formerly an Assistant Managing Director with the City of Philadelphia, also pleaded guilty in November 2020 to charges of wire fraud and embezzlement from a program receiving federal funds in connection with similar misuse of public money, and was sentenced last week to 15 months in prison.
“Just like his brother, the defendant abused the trust placed in him by his superiors and the citizens of Philadelphia, specifically supporters of Parks and Recreation,” said Acting U.S. Attorney Williams. “Stealing money from a bank account meant to support programming and maintenance of facilities, some in desperate need of repair, is inexcusable – but now he has been held accountable.”
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Office of the Inspector General, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.
Third Philadelphia Man Sentenced to 10+ Years for Gunpoint Robbery of East Mount Airy Corner StoreRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Maurice Quinn, 42, of Philadelphia, PA, was sentenced to 10 years in prison, and five years of supervised release by United States District Judge Jan E. DuBois for Hobbs Act robbery, and carrying and using a firearm during the commission of a violent crime.
The charges stemmed from an armed robbery of a corner grocery store in the East Mount Airy section of Philadelphia in March 2019. In February 2020, the defendant and his two co-defendants, Abid Stevens and Donnie Smith, both 41 and also of Philadelphia, PA, were convicted on all charges after trial. Stevens and Smith have already been sentenced by Judge DuBois for this crime to 10 years and 12 years in prison, respectively.
During the incident, Quinn entered RD Grocery and complained to a store employee that the store’s ATM had given him fake money. Quinn then attempted to grab both money from the register and a firearm kept by the owner behind the counter. Unable to grab the money or firearm, Quinn left and returned with Smith and Stevens, both of whom were armed with black semi-automatic handguns. Smith and Stevens brandished their firearms in the store employee’s face and Smith took the firearm from behind the counter. Quinn then again attempted to take cash from the register but failed. He demanded that the store employee open the register for him; the employee then opened the register, withdrew $100 in cash, and gave it to the Quinn.
“The defendant was so determined to rob this store that when his first attempt didn’t work, Quinn brazenly returned with armed back-up,” said Acting U.S. Attorney Williams. “His complete disregard for others and for the law is appalling. Hopefully others will learn from the example set by these three -- if you rob a store in Philadelphia with a firearm, you are going to face serious federal prison time as a result. Our Office is committed to being ‘All Hands On Deck’ working with our law enforcement partners to bring criminals to justice.”
“Maurice Quinn and his co-defendants committed a brazen armed robbery that endangered innocent lives and left a store employee traumatized,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “ATF and our partners from the Philadelphia Police Department remain committed to protecting the public from individuals like Stevens, who spread fear and perpetuate violence within the community. I would like to thank the United States Attorney’s Office for their proactive support throughout this investigation.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Special Assistant United States Attorney Ashley N. Martin.
Former Philadelphia City Treasurer Charged in Superseding Indictment with Tax Fraud and Failure to File Tax ReturnsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Christian Dunbar, 41, of Philadelphia, PA, the former Philadelphia City Treasurer, was charged by Superseding Indictment with two counts of filing a false income tax return and three counts of failure to file tax returns. Dunbar was previously charged with 14 counts of embezzlement by a bank employee, procurement of naturalization through a false statement, procurement of naturalization unlawfully, obtaining false citizenship papers, and making false statements in support of naturalization.
According to the Superseding Indictment, Dunbar allegedly participated in three schemes – (1) bank embezzlement; (2) false statements submitted in his application to become a U.S. citizen; and (3) failing to file his tax returns and falsely filing returns.
The Superseding Indictment includes allegations from the original Indictment that, just weeks before his appointment to serve as the City’s Deputy Treasurer, Dunbar, while still employed at Wells Fargo Bank in Newtown Square, stole $15,000 from two different bank customers on two separate occasions, once in December 2015 and again in January 2016.
Dunbar also allegedly made false representations in his application for naturalization. Dunbar allegedly falsified with whom he was cohabitating, to whom he was married,
where he was residing, and where his child was residing. He is also charged with having submitted a false lease and a false W-2 tax form to immigration officials. And, he is charged with failing to disclose a previous crime that he committed, namely bank embezzlement.
The Superseding Indictment newly alleges that Dunbar did not file his personal income tax returns for tax years 2015, 2016, and 2019 (during the last of which he was serving as the Philadelphia City Treasurer). Also, Dunbar is charged with filing false tax returns for the years 2017 and 2018 by claiming business losses resulting in tax refunds to which he was not entitled.
If convicted, Dunbar faces a maximum possible sentence of 174 years’ imprisonment and a fine of $6.025 million.
“As first detailed in the initial Indictment announced last September, and further alleged in the Superseding Indictment announced today, Christian Dunbar’s conduct in this case demonstrates a shocking level of misconduct – three separate fraud schemes – for a person who held such a senior, cabinet-level position with City of Philadelphia,” said Acting U.S. Attorney Williams. “Our Office will continue to work with our law enforcement partners to investigate these types of complicated public corruption cases, and hold public officials accountable.”
“For whatever reason, some people feel like the laws we all must abide by simply don’t apply to them,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Christian Dunbar allegedly perpetrated quite an array of fraud schemes. I guess he thought he’d get away with all of it. Today’s superseding indictment suggests otherwise. The FBI and our partners won’t stand for fraudsters flouting federal law, particularly those who’ve wound up in positions of public trust.”
“Today’s action demonstrates our collective efforts to enforce the law and ensure public trust,” said Thomas Fattorusso, Special Agent in Charge of IRS Criminal Investigation. “Public officials hold positions of trust in the public eye. That trust is eroded when public officials commit crimes. IRS-CI will continue to work with our law enforcement partners to seek justice on behalf of the citizens of Philadelphia.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations, and is being prosecuted by Assistant United States Attorneys Josh Davison and Denise S. Wolf.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced to 15 Years for Drug Trafficking and Firearms OffensesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Omar Acosta, 43, of Philadelphia, PA, was sentenced to 15 years in prison, and five years of supervised release by United States District Judge Wendy Beetlestone for narcotics and firearms offenses stemming from an undercover operation.
In February 2020, the defendant pleaded guilty to possession with intent to distribute 5+ kilograms of cocaine, and possession of a firearm in furtherance of a drug trafficking crime. Less than a year earlier, in May 2019, Drug Enforcement Administration agents learned that Acosta was in possession of multiple kilogram quantities of cocaine that he was seeking to sell. Through a confidential source, agents arranged a controlled purchase for four kilograms of cocaine from the defendant for $32,000 per kilogram. As the defendant drove to meet the confidential source to execute the purported transaction, he was stopped by law enforcement. With his consent, law enforcement officers searched Acosta’s car and found 21.5 kilograms of cocaine inside of a suitcase. A subsequent search of his residence in the Mayfair section of Northeast Philadelphia led to the discovery of multiple firearms, narcotics and cash including: a loaded Ruger .22 caliber rifle; a loaded Glock 22 semiautomatic pistol; a .40 caliber magazine and extra rounds; an extended Glock magazine; almost 2,000 grams of cocaine; 214 grams of heroin, and more than $57,000 in U.S. currency.
“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. “Omar Acosta was a large-scale drug trafficker with a weapons cache to support it, both of which put our community in grave danger. We want to thank our law enforcement partners in this case, the DEA, for their hard work and dedication.”
The case was investigated by the Drug Enforcement Administration, and is being prosecuted by Assistant United States Attorney Erica Kivitz.
Former Financial Professional Charged with Embezzlement from Jewish Federation and the Philly POPS!Read the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Cheryl Lutts, 42, of Philadelphia, PA, was arrested and charged by Indictment on charges of wire fraud and mail fraud. These charges resulted from Lutts’ employment with the Jewish Federation of Greater Philadelphia and its subsidiary, the Jewish Exponent, and later, the Encore Series, d/b/a The Philly POPS! Lutts is no longer employed by either non-profit organization.
The Indictment alleges that Lutts used her position as Director of Business Operations at the Jewish Federation of Greater Philadelphia, and later as Controller at the Philly POPS!, to steal money from each non-profit and use it to pay her personal credit card bills, and for a wide variety of personal expenses charged to company credit or debit cards including rideshare services, airline tickets, entertainment, travel and lodging, healthcare and exercise services, utilities, education and career services, legal services, funeral and burial services, clothing, food and alcohol, and other items from retail stores, grocery stores, convenience stores, websites, restaurants, and delivery services. The defendant is also charged with routinely using her personal credit cards and her corporate credit and debit cards to transfer company funds to various individuals who were not vendors of either non-profit using, among other things, PayPal and CashApp.
The defendant allegedly went to great lengths to disguise her fraudulent activities from her employers. According to the Indictment, Lutts provided management at both organizations with financial statements that did not include a balance sheet, or that included a balance sheet or bank reconciliation that was later determined to be false because it did not match the account balances and/or the transactions reflected on the bank statements.
The Indictment seeks forfeiture of $1,443,375.57, which represents the total amount of money Lutts allegedly embezzled from both former employers.
“This defendant allegedly swindled hundreds of thousands of dollars from not one, but two former employers” said Acting U.S. Attorney Williams. “Non-profit organizations exist for the people and constituencies they serve, not as personal piggy banks for those entrusted with managing their funds. Our office will continue to aggressively pursue and prosecute those who steal from non-profits.”
“The usual reward of nonprofit work is personal fulfillment, not financial enrichment,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Lutts, however, allegedly treated these organizations like her very own ATM, shortchanging their efforts and the community in the process. The FBI will pursue and hold accountable anyone foolish enough to engage in this kind of fraud.”
If convicted, the defendant faces a maximum possible sentence of 480 years in prison, 3 years of supervised release, at $6,000,000 fine, and a $2,400 special assessment.
The case was investigated by the Federal Bureau of Investigation.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delaware County Man Sentenced to 20 Years for Collecting 22,000+ Images Involving the Sexual Abuse of ChildrenRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Ryan Davis, 24, formerly of Glen Mills, PA, was sentenced to 20 years in prison, a lifetime of supervised release, and was ordered to pay $15,000 restitution after a nearly 10-hour hearing by United States District Judge Gerald Pappert for his possession of more than 22,000 images and videos of child pornography that Davis concealed on his electronic devices and in his online accounts.
In July 2019, the defendant pleaded guilty to transporting and possessing a collection of more than 22,000 extremely graphic and sadistic images and videos of children being raped, sexually assaulted, and depicted in sexually explicit positions. Most of the children depicted in his collection were prepubescent, and included infants and toddlers being sexually abused. An investigation into the defendant’s online Dropbox account revealed that the IP addresses used to access his child pornography were linked to various residences associated with the defendant, including his student account at West Chester University.
At the time he committed these child sex crimes, Davis was under court supervision and still serving his juvenile sentence for sexually assaulting two prepubescent boys who were just 6 and 9-years old at the time that Davis victimized them. Davis was also in sex offender treatment during the same time he committed these federal child sex crimes.
“Child pornography offenses victimize real children – they are first abused by those who produce these images, and re-victimized every time a child sex offender engages in these online crimes,” said Acting U.S. Attorney Williams. “Davis is very clearly a danger to children in the community as a previously adjudicated child sex offender, and he will now spend years behind bars to ensure he can no longer hurt any more children. Investigating and prosecuting these cases are a priority for our Office, as is ensuring that the offenders are held fully accountable.”
“Ryan Davis admitted to amassing many thousands of images of babies, toddlers, and children suffering horrific sexual abuse, and doing so while in treatment for sexually abusing two children himself,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Those photos and videos represent unimaginable pain forced upon utterly vulnerable victims, some too young to walk or talk. Know that the FBI will never stop looking for, and locking up, those involved in the sexual exploitation of children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Atlanta-Based National Chain of Skilled Nursing Facilities to Pay $11.2 Million to Resolve Allegations of Providing Substandard Care, Medically Unnecessary Therapy ServicesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that SavaSeniorCare LLC and related entities (Sava), have agreed to pay $11.2 million, plus additional amounts if certain financial contingencies occur, to resolve allegations that it violated the False Claims Act by causing its skilled nursing facilities (SNFs) to bill Medicare for rehabilitation therapy services that were not reasonable, necessary or skilled, and to resolve allegations that Sava billed Medicare and Medicaid for grossly substandard skilled nursing services. Sava, based in Atlanta, Georgia, currently owns and operates more than 160 skilled nursing facilities across the country, including three facilities in Pennsylvania.
“Nursing home residents should not be at the mercy of nursing home operators that put their own economic gain ahead of the needs of the residents, and we will continue to aggressively pursue those operators who bill Medicare and Medicaid for substandard care,” said Acting U.S. Attorney Williams. “This settlement holds Sava accountable, and the resulting Corporate Integrity Agreement should ensure that Sava provides seniors with quality care and treats its residents with dignity and respect.”
This settlement resolves four False Claims Act lawsuits, one in the United States District Court for the Eastern District of Pennsylvania and three consolidated in the United States District Court for the Middle District of Tennessee. The lawsuits allege that Sava submitted false claims for rehabilitation therapy services by engaging in a systematic effort to increase its Medicare billings. Through corporate-wide policies and practices, Sava allegedly exerted significant pressure on its SNFs designed to meet unrealistic financial goals, resulting in the provision of medically unreasonable, unnecessary and unskilled services to Medicare patients. Sava allegedly set these aggressive, prospective corporate targets for the highest Medicare reimbursement rates to significantly increase Sava’s revenues without regard for its patients’ actual clinical needs and then pressured its staff to meet those targets. Sava also allegedly delayed discharging patients from its facilities in order to increase its Medicare payments, even though the patients were medically ready to be discharged.
This settlement also resolves allegations that between Oct. 1, 2008 and Sept. 30, 2012, Sava submitted false claims to Medicaid for coinsurance amounts related to rehabilitation therapy services for beneficiaries who were eligible for both Medicare and Medicaid.
In addition, this settlement resolves allegations that between Jan. 1, 2013 and Dec. 31, 2018, Sava submitted false claims for payment to Medicare and Medicaid for grossly and materially substandard and/or worthless skilled nursing services, which were caused in large part by Sava’s failure to provide a sufficient number of skilled nursing staff to adequately care for its nursing home residents. This failure of care allegedly resulted in preventable pressure ulcers, preventable falls, and preventable medication errors.
“Nursing home operators will be held to account when they put their own financial interests ahead of the needs of their residents,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “This settlement demonstrates the Department’s continued commitment to aggressively pursue those operators who bill Medicare and Medicaid for unnecessary and grossly substandard services and who fail to adequately care for the residents entrusted to their care.”
Under the settlement with the United States, and separate settlements with participating states, Sava has agreed to pay a total of approximately $11.2 million, plus additional amounts if certain financial contingencies occur.
Contemporaneous with this settlement, Sava has also entered into a five-year, chain-wide Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent organization to annually review patient stays and associated paid claims by Medicare for those stays, including provision of rehabilitation therapy services to ensure that they are reasonable and necessary to improve, maintain, or slow deterioration of the patient’s condition, or restore the patient’s prior level of function. In addition, Sava is required to engage an independent monitor to review the quality of resident care. CIAs promote compliance and protect vulnerable nursing home residents.
The matters were handled by U.S. Attorney’s Offices for the Eastern District of Pennsylvania and Middle District of Tennessee, the Civil Division’s Commercial Litigation Branch, and the HHS-OIG, with assistance from the U.S. Attorneys’ Offices of the Southern District of Texas and the Western District of Texas and the National Association of Medicaid Fraud Control Units. In the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Assistant U.S. Attorney David A. Degnan, Assistant U.S. Attorney Gerald B. Sullivan, and Auditor George R. Niedzwicki handled the investigation and settlement.
The cases are captioned United States, et al. ex rel. Doe, et al. v. SavaSeniorCare, Inc., et al., Civil Action No. 16-CV-0840 (E.D. Pa.); United States ex rel. Hayward v. SavaSeniorCare, LLC, et al., No. 3:11-0821 (M.D. Tenn.); United States ex rel. Scott v. SavaSeniorCare Administrative Services, LLC, 3:15-0404 (M.D. Tenn.); and United States ex rel. Kukoyi v. Sava Senior Care, L.L.C., et al., No. 3:15-1102 (M.D. Tenn.). The relator in the Eastern District of Pennsylvania action is represented by David T. Marks of Marks Balette Giessel & Young, P.C., Thomas Sheridan of Sheridan & Murray, LLC, and Joseph Trautwein of Joseph Trautwein & Associates, LLC.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Retired Bucks County Credit Union CEO Sentenced to over Three Years for Embezzlement from Six Philadelphia-Area Federal Credit UnionsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Joan Brown, 80, of Bristol, PA, was sentenced to three years and eight months in prison, five years of supervised release, and ordered to pay $1,016,900 in restitution by United States District Judge Joshua Wolson for her scheme to embezzle credit union funds for which she provided management services through a company which she co-founded.
In September 2020, the defendant pleaded guilty to six counts of embezzlement of credit union funds and 11 counts of making false entries in credit union records arising from her embezzlement of more than $1 million over several years from six small credit unions. Brown is the former CEO of the Bensalem-based Service Center for Credit Unions, and in that position was well-known in the credit union community in the Philadelphia area. In fact, according to court document, in the past she had been described as “the face of credit unions in Philadelphia.” As a result of her actions, six small credit unions failed and were liquidated by the National Credit Union Association.
“Credit unions, by their nature, are cooperative institutions which rely on the support of everyone involved to function and remain safe places to save and borrow money,” said Acting U.S. Attorney Williams. “In her position as the CEO of a credit union management company, Brown destroyed six such credit unions with her greed and dishonesty. Our office will continue to work with our law enforcement partners to ensure that anyone who commits this type of fraud will be held accountable for their actions.”
“The credit unions contracting with SCCU depended on the company to ably manage their financial matters,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Joan Brown took full advantage of that trust, dipping into accounts and stealing money for herself, over and over again, for years. Her criminal actions caused the insolvency and shutdown of six local financial institutions. Brown is finally being held accountable for this extensive and clear-cut fraud.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney K.T. Newton.
PA Electrical Supplier Agrees to Pay over $50,000 to Resolve Claims it Failed to Adhere to ‘Buy American’ Preference on 30th Street Station Renovation ProjectRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Wescott Electric Company (“Wescott”), of Aston, PA, has agreed to pay $54,983 and implement enhanced compliance measures to resolve claims arising from its use of Chinese-made parts during a fire alarm installation and renovation project at Amtrak’s William H. Gray 30th Street Station in Philadelphia, PA.
Companies contracting with Amtrak are responsible for complying with a federal regulation which establishes a preference for using American-made parts when fulfilling those contracts. The United States alleges that Wescott neither determined that its parts were American-made nor worked through Amtrak’s process for obtaining a waiver to this rule. The renovation at William H. Gray 30th Street Station was funded by a grant from the United States Department of Transportation.
“Amtrak and the Department of Transportation have established a preference to support American jobs by using American-made parts, and taxpayers have a right to know that policy is being honored,” said Acting U.S. Attorney Williams. “If contractors believe that doing so is impossible, they have a responsibility to raise the issue with contracting officers openly and to work with government authorities on a mutually agreeable resolution.”
“The Department of Transportation Office of Inspector General (DOT-OIG), along with our prosecutorial and law enforcement partners, is committed to protecting the integrity of the Federal procurement process and ensuring that government contractors comply with all applicable laws and regulations, including the Buy American and Trade Agreements Acts,” said Brian Gallagher, DOT-OIG Acting Special Agent in Charge Northeastern Region. “Today’s resolution is a testament to that commitment.”
“The American people deserve fair and honest services from Amtrak contractors, and this includes adhering to laws which require them to use American-made products to the greatest extent reasonable, consistent with public interest,” said Michael Waters, Special Agent in Charge of Amtrak OIG’s Northeast Field Office. “This settlement underscores our commitment to protect Amtrak funds, American taxpayers, and the traveling public, and we appreciate the seamless collaboration with the U.S. Attorney's Office and the Department of Transportation OIG throughout this investigation.”
Acting United States Attorney Williams also highlighted Wescott’s agreement to enhance its compliance program: “Wescott reacted promptly to the government’s investigation and cooperated fully, taking serious steps to make sure this issue never recurs. We hope Wescott’s compliance measures will be a model for other grantees and contractors looking to meet their responsibilities to the United States.”
This investigation was conducted as part of the United States Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force’s procurement fraud initiative with investigators from Amtrak Office of Inspector General and the Department of Transportation Office of Inspector General. Assistant United States Attorney Paul W. Kaufman of the Eastern District of Pennsylvania handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Philadelphia Electrical Contractor Sentenced to Two Years on Charges of Tax Fraud and Theft of Employee BenefitsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Donald Dougherty, 55, of Philadelphia, PA, was sentenced to two years in prison, one year of supervised release, and was ordered to pay approximately $358,000 in restitution and a $125,000 fine by United States District Judge Michael M. Baylson for filing a false income tax return and theft from an employee benefit plan.
In January 2021, the defendant pleaded guilty to the charges, which arose from his ownership of Dougherty Electric Incorporated (DEI), an electrical contracting firm located in Philadelphia. The false income tax return charge related to Dougherty’s diversion of DEI resources for his personal benefit. In 2015, he used the resources of DEI to pay for $237,100 in personal expenditures, including a Dougherty family vacation at the Ritz Carlton Hotel in Miami; repairs to his home; condominium association fees for his wife’s New Jersey condominium; expenses for beer delivery; and $25,000 transferred from the DEI operating account and deposited into the defendant’s personal account. Dougherty failed to report the receipt of these benefits on his personal income tax return for 2015.
The charge of theft from an employee benefit plan resulted from Dougherty’s failure to pay benefits over to a labor benefit plan as required by a collective bargaining agreement between the national Electrical Contractors Associations and International Brotherhood of Electrical Workers (IBEW) Local 5 in Pittsburgh. The agreement required DEI to file payroll and remittance reports with Local 5 that identified DEI employees working in Pittsburgh, the hours worked, the wages they earned, and to then make corresponding contributions to the Local 5 benefit plans. Dougherty skirted around the agreement by using non-union labor to work on a contract project in Pittsburgh. He concealed his use of non-union labor by using his brother’s pass-through company to pay non-union electrical workers on DEI’s Pittsburgh projects. The deception enabled him to avoid making total contributions of $266,000 to Local 5’s benefit fund.
“Donald Dougherty’s schemes to enrich himself backfired, and now he has received a just punishment as the consequence of his actions,” said Acting U.S. Attorney Williams. “This is an important reminder for those who might consider filing false returns: the government is very good at detecting this type of fraud – and you will be found out and prosecuted.”
“Mr. Dougherty not only stole from the Government, he put his own interests ahead of honest and hard-working union members,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Such greed and corruption cannot go unchecked. The FBI is committed to working with our law enforcement partners to protect the Government’s resources and dedicated laborers everywhere.”
“Today’s sentence sends a clear message that the laws of the land apply to everyone,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “No matter who you are, it is unacceptable to purposely underreport your income. If you intentionally file fraudulent tax returns, your status will not protect you from federal prosecution.”
“The U.S. Department of Labor, Employee Benefits Security Administration, will pursue to the fullest extent of the law those who unlawfully profit by failing to make required contributions to employee benefit plans,” said Michael Schloss, Regional Director of EBSA’s Philadelphia Regional Office.
The case was investigated by the FBI, IRS Criminal Investigations Unit, and the Employee Benefits Security Administration of the U.S. Department of Labor, and is being prosecuted by Assistant United States Attorney Richard P. Barrett and Frank Costello.
French Medical Device Manufacturer to Pay $2 Million to Resolve Alleged Kickbacks to Physicians and Related Medicare Open Payments Program ViolationsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced today that Medicrea International, a French medical device manufacturer, and its American affiliate Medicrea USA Inc., have agreed to pay:
- $1 Million to the United States and participating states to resolve civil whistleblower allegations that the companies, by entertaining U.S.-based physicians during a 2013 conference in France, violated the Anti-Kickback Statute and, through resulting claims to federal healthcare programs, the False Claims Act and similar state statutes; and
- an additional $1 Million to the United States to resolve related allegations that the companies violated the physician Open Payments Program (formerly known as the “Sunshine Act”) by failing to fully report those physician-entertainment expenses to the Centers for Medicare & Medicaid Services (CMS).
The Anti-Kickback Statute prohibits medical device manufacturers from directly or indirectly offering or paying anything of value to induce the referral of items or services, such as device orders or purchases, covered by Medicare, Medicaid, TRICARE, or other federal healthcare programs. The federal settlement resolves allegations that Medicrea (which Medtronic USA Inc., recently acquired) provided items of value in the form of meals, alcoholic beverages, entertainment, and travel expenses to U.S.-based physicians at events surrounding the Scoliosis Research Society’s September 2013 Congress in Lyon, France. The United States alleged that Medicrea provided the benefits to induce the physicians to purchase or order Medicrea’s spinal devices, and that this resulted in false payment claims to federal healthcare programs.
This settlement also resolves Medicrea’s liability under CMS’s Open Payments Program. As part of the Affordable Care Act, Congress created the Open Payments Program: (1) to provide greater transparency and protection to consumers, by requiring medical device manufacturers and others publicly to disclose certain payments and other transfers of value to physicians; and (2) with the goal of preventing, through such disclosures, payments and benefits from being used to induce physicians and hospitals to prescribe or buy products.
This is among the first settlements to resolve allegations under both the False Claims Act and the Open Payments Program. The settlement follows the Senate Finance Committee’s March 2019 request that HHS-OIG and CMS investigate Open Payments Program non-compliance and pursue enforcement. Manufacturers must ensure accurate and timely Open Payments Program reporting to CMS of all applicable payments or transfers of value, including indirect payments.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act statute. Under those 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, et al., ex rel. Dory Frain v. Medicrea USA Corporation, Civil Action No. 16-1986. The whistleblower’s Philadelphia-based attorneys are Michael A. Filoromo, III of Katz, Marshall & Banks, LLP, and Ryan Allen Hancock of Willig Williams & Davidson.
“Kickbacks undermine the integrity of federal healthcare programs and increase costs to taxpayers,” said Acting U.S. Attorney Williams. “This case demonstrates the Department of Justice’s commitment to ensuring that medical device manufacturers do not use improper relationships to influence physician decision-making and are transparent about the benefits that they provide to physicians.”
Williams added: “We thank the relator and relator’s counsel for their contributions. Without information from citizens like the relator, detecting fraud and conserving government program funds would be much more difficult.”
“Allegations of kickbacks are concerning as patients rely on their medical professionals to make health care decisions based on their individual medical needs,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “We will continue working with the U.S. Attorney’s Office, CMS and our Medicaid Fraud Control Units to protect patients and taxpayers.”
The United States’ investigation and resolution of this matter illustrates its focus on combating healthcare fraud. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The settled claims are allegations only; there has been no determination of liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Commercial Litigation Branch of the Justice Department’s Civil Division, as well as the National Association of Medicaid Fraud Control Units (NAMFCU). For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant United States Attorneys Landon Y. Jones III and Gerald B. Sullivan, and Auditor Dawn Wiggins.
- $1 Million to the United States and participating states to resolve civil whistleblower allegations that the companies, by entertaining U.S.-based physicians during a 2013 conference in France, violated the Anti-Kickback Statute and, through resulting claims to federal healthcare programs, the False Claims Act and similar state statutes; and
Former Senior City of Philadelphia Official Sentenced to over One Year in Prison for Fraud and EmbezzlementRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Leo Dignam, 61, of Philadelphia, PA was sentenced to 15 months in prison, one year of supervised release, and was ordered to pay a $7,500 fine by United States District Judge Eduardo C. Robreno for a scheme to defraud the City of Philadelphia of approximately $150,000 over the course of several years.
In November 2020, Leo Dignam pleaded guilty to wire fraud and embezzlement from a program receiving federal funds. At the time of the charged offenses, the defendant was an Assistant Managing Director in the City of Philadelphia Managing Director’s Office and, prior to serving in that position, was a long-time employee of the Philadelphia Parks and Recreation (“PPR”) Department, having risen through the ranks to serve as the Deputy Commissioner for Programs. In these positions, he oversaw the administration of major events in the city, such as the Philadelphia Marathon, the Broad Street Run and the Mummers Parade. Mr. Dignam worked for the City of Philadelphia for approximately 38 years.
Over the course of several years, from 2012 through 2019, Leo Dignam misused two bank accounts he controlled on behalf of the City that existed to support the work of PPR, namely, recreational activities for citizens. In particular, he opened a bank account purportedly to support the activities of PPR in connection with a non-profit organization, the Junior Baseball Federation (“JBF”). The JBF partnered with the Philadelphia Phillies to raise most of its funds through the sale of tickets for Phillies games. The defendant converted funds from this account to pay for personal expenses he incurred on a credit card associated with the JBF account for purchases from retail stores, grocery stores, pharmacies, gas stations, online retailers, and service providers. Dignam also admitted to misusing another account that was created for the benefit of PPR and the citizens of Philadelphia, the Program Advisory Fund Account. The defendant used this account to pay personal expenses by transferring funds directly to a personal bank account, and by using it to pay personal expenses on a Verizon wireless account.
Leo’s brother, Paul Dignam, 58, also of Philadelphia and formerly the Regional Manager for the South Region of Philadelphia Parks and Recreation, also pleaded guilty in November 2020 to charges of mail fraud and embezzlement from a program receiving federal funds in connection with similar misuse of public money, and will be sentenced next week.
“This defendant abused the considerable level of trust placed in him by his superiors and the citizens of Philadelphia,” said Acting U.S. Attorney Williams. “His inexcusable behavior, stealing money from public programs designed to serve city youth and Parks and Recreation supporters, has now been met with swift and serious consequences in federal court. Our Office will continue to hold public employees, especially those in leadership positions, responsible for this type of fraud.”
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Office of the Inspector General, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.
Chester County Accountant Sentenced for Fraud SchemeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Christopher May, 32, of Paoli, PA, was sentenced to one year and four months in prison, and two years of supervised release by United States District Judge Timothy J. Savage for engaging in an embezzlement scheme through which he stole more than $1.2 million from his former employer.
In February 2021, the defendant pleaded guilty to two counts of wire fraud stemming from this scheme which he perpetrated over the course of about eight months. From roughly October 2019 until May 2020, while employed as a staff accountant at a local e-commerce automotive parts retailer based in Paoli, PA, May made more than 50 unauthorized Paypal transfers of his employer’s funds into his personal accounts. In total, he stole $1,213,500. He immediately spent nearly this entire amount gambling on sports and making payments to pornographic web camera models whom he met on the internet.
To hide and prolong his fraud, the defendant doctored his employer’s bank statements and created fake financial records. He abruptly resigned from his position in June 2020, after an audit at the company raised questions about discrepancies in these documents.
As part of the Court’s sentence, the defendant will be required to pay back all the money that he stole from his employer. When released from prison, May will also be required to attend mental health treatment to address underlying issues that may have contributed to his crimes.
“Our Office takes offenses like embezzlement and financial fraud very seriously,” said Acting U.S. Attorney Williams. “The defendant stole more than a million dollars by abusing his position handling finances for his former employer. We will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by this type of fraud.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Sean P. McDonnell.
Former Manager of Contracted City Meal Program for HIV/AIDS Patients Pleads Guilty to TheftRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Barbara Conway, 62, of Drexel Hill, PA, entered a plea of guilty before United States District Court Judge Michael M. Baylson for stealing money from a meal program for sick and needy individuals which she managed as a contractor for the City of Philadelphia.
In November 2020, the defendant was charged by criminal information with theft from a program receiving federal funds. According to the Information, Conway served as the Food Voucher Coordinator while employed by the Philadelphia Health Management Corporation (PHMC), a public health agency contracted with the City of Philadelphia to administer a food voucher program funded by the federal government. While serving as the coordinator from 2015 through 2019, Conway stole over $35,000 in food vouchers that were supposed to be distributed as part of an emergency assistance package to people living with HIV/AIDS. This initiative is funded by the Ryan White HIV/AIDS Program, a federal program that provides grants to states, cities, counties, and other local organizations to fund care and treatment services for individuals living with the disease.
“Stealing money from federally-funded programs will be met with swift and serious consequences,” said Acting U.S. Attorney Williams. “Appallingly, Barbara Conway victimized people who are already facing the incredibly challenging life circumstance of living with HIV/AIDS and who require emergency assistance to meet basic life necessities while they bravely fight to get well. Our Office will continue to hold public employees and contractors responsible for this type of egregious behavior.”
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Office of the Inspector General, and is being prosecuted by Assistant United States Attorney Richard P. Barrett.
Illegal Firearms Trafficker from Philadelphia Sentenced to 15 Years After Being Convicted at TrialRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Kenneth Eugene Cherry, Jr., 33, of Philadelphia, PA, was sentenced to fifteen years in prison and three years of supervised release by United States District Judge Harvey Bartle III, for 27 counts of firearms trafficking offenses.
In August 2019, following a jury trial, Cherry was convicted of dealing in firearms without a license, possession and transfer of a machine gun, possession of an unregistered firearm, possession of a firearm with an obliterated serial number, and multiple counts of possession of a firearm by a convicted felon.
Utilizing a confidential source during a year-long investigation, federal agents conducted controlled purchases of a total of 45 firearms – 24 from Cherry and 21 from his co-defendant. The firearms purchased from Cherry included two Glock “Auto Sear” conversion devices that are classified as machineguns, an unregistered short-barreled rifle, and six additional assault-style rifles. Cherry also provided a large amount of ammunition with the firearms he sold, which were trafficked from Virginia up to Philadelphia to be sold on the street for profit.
“The defendant put large-capacity, semiautomatic weapons on the streets of Philadelphia, significantly contributing to the violent crime problem in our city,” said Acting U.S. Attorney Williams. “Less than one week ago, I stood with our partners at ATF and the Philadelphia Police Department to discuss how the ATF’s NIBIN Van will be a critical resource to expedite ballistics testing of crime guns like the ones this defendant was trafficking. We are working around the clock and are ‘All Hands On Deck’ to put criminals like Cherry behind bars for a long time.”
“Knowingly selling firearms without a license is a violation of federal law, and by doing so, Cherry circumvented the very laws which are designed to protect communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Public safety 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 & Explosives, and is being prosecuted by Assistant United States Attorney Mark S. Miller.
Former Bank Teller Pleads Guilty to Embezzling Social Security Funds from Deceased Customer’s AccountRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jonnel Perkins, 43, of Philadelphia, PA, pleaded guilty to the charge of embezzlement by a bank employee.
According to court documents filed today, the defendant was employed as a Retail Relationship Banker at a bank located in Philadelphia. While she was employed in this position, the Social Security Administration (SSA) conducted a routine audit which identified that a customer of the bank branch where Perkins worked was likely deceased but still receiving monthly electronic benefits from the SSA. The SSA suspended the payments to this account, but due to regulation had to wait seven years before the approximately $200,000 in accumulated benefit overpayments by the SSA could be reclaimed.
In the months prior to the time when the reclamation could be initiated, between June and December 2019, Perkins withdrew all of the funds from this dormant account. A subsequent investigation determined that the customer whose account from which the defendant withdrew funds had been deceased since 1999. In total, Perkins plead guilty to embezzling $207,450 from the deceased customer’s account. With the embezzled funds, the defendant made large cash deposits into her personal bank accounts as well as large cash deposits at casinos in Philadelphia and Atlantic City, totaling over $200,000.
“Bank employees are trusted by their customers and employers to handle money with honesty and integrity,” said Acting U. S. Attorney Williams. “Here, the defendant stole hundreds of thousands of dollars while she was employed in a position of trust at a bank which managed the deceased victim’s account. Our Office will continue to investigate and prosecute this type of fraud in order to protect individual bank account holders and all American taxpayers who pay into the Social Security system.”
“We will continue to pursue those who would misuse Social Security funds for personal gain, particularly those in positions of trust,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I want to thank the FBI for their partnership, and the U.S. Attorney’s Office for its efforts to bring the charges that led to today’s guilty plea.”
“Jonnel Perkins stole money from someone she figured would never miss it,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “In draining that deceased customer’s account, though, she was ripping off the Social Security Administration and those actually entitled to its benefits. The FBI and our federal partners won’t stand for criminals cheating the U.S. government and the millions of taxpayers who fund it.”
The case was investigated the Social Security Administration – Office of the Inspector General and the Federal Bureau of Investigation, and is being prosecuted by Special Assistant United States Attorney Megan Curran.
Acting United States Attorney Jennifer Arbittier Williams Recognizes National Police WeekRead the Press Release
PHILADELPHIA – In honor of National Police Week, Acting United States Attorney Jennifer Arbittier Williams recognizes and celebrates the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9, through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“Every year, National Police Week gives us an opportunity to take time to reflect on the sacrifices made by those brave men and women who have devoted themselves to serve the public and protect our communities every day. We especially pay tribute to those who lost their lives to ensure our safety,” said Acting U.S. Attorney Williams. “This week, I ask the residents of the Eastern District of Pennsylvania to join me in saying ‘thank you’ to our nation’s law enforcement officers at all levels of government.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19. Here in the Eastern District of Pennsylvania, six officers died in the line of duty in 2020.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
Former Montgomery County Teacher Charged in Superseding Indictment with Traveling to the Philippines to Have Sex with ChildrenRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Craig Alex Levin, 65, of King of Prussia, PA, was charged by Superseding Indictment with additional child exploitation offenses related to his travel to the Philippines. The defendant, who was previously detained in the Philippines, was deported back to the United States in August 2020 and has been held in federal detention since that time.
The Superseding Indictment contains sixteen counts including nine counts of interstate and foreign travel for the purpose of engaging in illicit sexual conduct with a minor, two counts of sex trafficking of a minor, one count of use of an interstate commerce facility to entice a minor to engage in sexual activity, two counts of distribution of child pornography, one count of transfer of obscene material to a minor, and one count of transportation of child pornography.
The Superseding Indictment alleges that Levin, a former high school teacher for the Lower Merion School District, created and maintained Facebook accounts that he used to communicate with minors in the Philippines for the purpose of enticing them to engage in illicit sexual conduct with him during his visits to the Philippines. In addition, the defendant allegedly used Facebook Messenger to send images depicting minors engaging in sexually explicit conduct and obscene photographs from his residence to minors in the Philippines. Between August 29, 2016 and May 8, 2019, Levin is alleged to have traveled to the Philippines nine times to have sex with minor children. Levin was first indicted with child exploitation offenses related to his travel to the Philippines in February 2020.
“As alleged in the Superseding Indictment, the defendant repeatedly traveled to the Philippines and stayed for months as a time in order to sexually prey on children,” said Acting U.S. Attorney Williams. “If Mr. Levin thought he could get away with these crimes because they occurred on the other side of the world, that was a grave miscalculation on his part. Holding child sexual predators accountable, including those who travel overseas to commit their heinous acts, will continue to be a top priority of our Office.”
“Craig Levin went to extraordinary lengths to sexually exploit children, as alleged in the superseding indictment,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He repeatedly trekked thousands of miles to the Philippines and ensconced himself there for months, taking advantage of situations of extreme poverty in order to prey on underage girls. Child sexual exploitation is abhorrent anywhere it occurs, and the FBI will continue to go after Americans who travel abroad for that purpose. We’re determined to hold them accountable for the damage they’ve done and prevent them from victimizing anyone else’s child.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If convicted, the defendant faces a maximum possible sentence of lifetime imprisonment with a mandatory minimum of ten years’ imprisonment, lifetime supervised release, a $4,000,000 fine, and a $1,600 special assessment, and an additional $75,000 mandatory special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Sarah Damiani and Trial Attorney Austin M. Berry of the Department of Justice’s Child Exploitation and Obscenity Section.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Previously Convicted Felon from Philadelphia Convicted After Trial in Federal Court of Illegally Possessing a FirearmRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jesse Golden, 30, of Philadelphia, PA, was convicted today after a three-day trial of illegally possessing a firearm and ammunition as a convicted felon.
In September 2019, the defendant was Indicted following an investigation by the Philadelphia Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. 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 they 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. “As the evidence presented at trial showed, Jesse Golden illegally possessed a gun and flagrantly displayed it, a video of which wound up on social media. Now, Golden is facing a mandatory minimum of fifteen years in prison if the Court declares him an armed career criminal, and he could face as much as life in prison. 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.”
“A felon in possession of a firearm always presents a great danger to our community,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division “The public is very fortunate that the Philadelphia Police Department was able to interdict the defendant before harm could come to anyone. We are committed to making our community safer by working with our local, state and federal partners in identifying and removing armed criminals 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 and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney David Ignall.
Pharmaceutical Manufacturer Agrees to Pay $12.6 Million to Resolve Allegations it Provided Kickbacks Through Donations to a Third-Party CharityRead the Press Release
PHILADELPHIA—Acting United States Attorney Jennifer Arbittier Williams announced that Incyte Corporation, headquartered in Delaware, has agreed to pay $12.6 million to resolve allegations that it violated the False Claims Act by using a foundation as a conduit to pay the copays of Medicare and TRICARE patients taking Incyte’s drug Jakafi. TRICARE is the health care program for uniformed service members, retirees, and their families.
When a Medicare or TRICARE beneficiary obtains a prescription drug covered by a federal health care plan, the beneficiary may be required to make a partial payment, in the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copays in the programs, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs.
Under the Anti-Kickback Statute, a pharmaceutical company cannot offer or pay, directly or indirectly, any remuneration—which includes money or any other thing of value—to induce Medicare or TRICARE patients to purchase the company’s drugs. This prohibition includes the payment of patients’ copay obligations. Payment of those prescriptions in violation of the Anti-Kickback Statute leads to submission of false claims to Medicare and TRICARE and violations of the False Claims Act.
Incyte sells Jakafi, a medication approved to treat myelofibrosis in 2011 and approved to treat other disorders after 2014. Incyte allegedly was the sole donor to a fund that was opened by a nonprofit foundation in November 2011 to assist only myleofibrosis patients. After the fund opened, the government alleges that from November 2011 through December 2014, Incyte used its influence as the sole donor of the fund to have the foundation pay the copays of Medicare and TRICARE patients taking Jakafi that did not have myelofibrosis, and thus were not eligible for assistance from the fund. Incyte managers allegedly pressured the foundation, through phone calls and emails, to provide economic assistance to these ineligible patients, and Incyte’s contractor helped ineligible patients to complete their applications that were submitted to the fund for assistance. The government alleges that through this conduct, Incyte caused false claims for Jakafi to be submitted to Medicare and TRICARE.
“Pharmaceutical companies cannot skirt the anti-kickback rules by disguising their inducements to federally-insured patients as charitable donations,” said Acting United States Attorney Jennifer Arbittier Williams. “This resolution shows our office’s continuing commitment to holding drug companies accountable for this conduct.”
“Protecting TRICARE is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Incyte’s false claims for ineligible patients compromised the integrity of the TRICARE program. Today’s settlement is the result of a joint effort with the U.S. Attorney's Office, DOJ Civil Frauds, and HHS-OIG, and it demonstrates our ongoing commitment to work with our law enforcement partners to investigate those who engage in health care fraud.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Justin Dillon, a former compliance executive at Incyte. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Dillon v. Incyte Corp., No. 2:18 -cv-2642 (E.D. Pa.) and was filed by Brian McCormick of Ross Feller Casey LLP in Philadelphia, PA.
“We thank the relator and relator’s counsel for their contributions to this case. Without information from citizens like the relator, detecting fraud and conserving government program funds would be much more difficult,” said Acting U.S. Attorney Williams.
The investigation was conducted by the Department of Defense Office of Inspector General and the U.S. Department of Health and Human Services Office of Inspector General. The investigation and resolution obtained in this action were handled by Assistant United States Attorneys Paul J. Koob and Matthew E.K. Howatt, Deputy Chief Charlene Keller Fullmer, and Auditor George Niedzwicki. This matter was handled in conjunction with the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section’s Senior Trial Counsel Jennifer Cihon.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Philadelphia Man Admits to Identity Theft as Part of Scheme to Steal Federal Income Tax RefundsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Luis Veras-Velasquez, 37, formerly of Philadelphia, PA, pleaded guilty to the charge of aggravated identity theft before United States District Court Judge Gerald J. Pappert related to a scheme to steal income tax refunds.
On April 23, 2015, a federal grand jury returned an Indictment against the defendant, alleging that he engaged in a scheme to obtain tax refunds using stolen identities. According to the Indictment, Veras-Velasquez possessed numerous documents containing the names, dates of birth, and social security numbers of victim taxpayers. Internal Revenue Service records show that more than 20 of those identities were used to seek tax refunds without the knowledge or authorization of the taxpayer named on the return. Before he could answer to these charges in federal court, the defendant fled to Dominican Republic, where he remained for five years. Then in September 2020, Veras-Velasquez boarded a flight from the Dominican Republic to Mexico and was subsequently arrested.
“Veras-Velasquez’ scheme victimized honest taxpayers in two ways: first, by stealing their identities; and second, by trying to rip off the federal government,” said Acting U.S. Attorney Williams. “Now, he will face the consequences – even after attempting to evade justice overseas for five years – as will anybody else who attempts to carry out a similar scheme.”
“Investigating refund fraud and identity theft is a top priority for the Agents in my office,” said Thomas Fattorusso, Special Agent in Charge of IRS Criminal Investigation. “This individual demonstrated a flagrant disregard for the integrity of the United States tax system and caused harm to those individuals whose identities he stole. The defendant thought he could flee the country after he committed his crimes, but he could not outrun justice.”
“Homeland Security Investigations remains committed to investigating those who use stolen identities to steal money from the United States by filing false tax returns and claiming fraudulent tax refunds,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “The defendant’s guilty plea should serve as a reminder that attempting to defraud the federal government will result in serious consequences.”
If convicted, the defendant faces a mandatory sentence of two years in prison.
The case was investigated by the Internal Revenue Service and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney David J. Ignall.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Northeast Philly Tax Preparer Charged with 29 Counts of Filing False Tax ReturnsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Eric Amaefuna, 65, of King of Prussia, PA, was charged by Indictment with 29 counts of aiding and assisting in the preparation of false income tax returns.
According to the Indictment, the defendant was the owner of American Financial Stewardship (AFS), a tax preparation business on Bustleton Avenue in Northeast Philadelphia. The Indictment alleges that Amaefuna prepared false and fraudulent IRS Personal Income Tax 1040 Forms for client taxpayers for at least tax years 2014 through 2016. The defendant added attachments to the 1040 Forms that were also false, in that they claimed false or inflated employee business expenses, inflated state and local taxes, false or inflated miscellaneous deductions, and losses that were entirely fictitious or falsely inflated. These falsities resulted in the filing of personal income tax returns claiming refunds due to the client taxpayers which they were not entitled to receive.
“Our nation’s taxing system relies upon tax preparers to apply our tax laws honestly in order to help clients accurately report income and pay their fair share of federal taxes, not bend or ignore the rules to suit their client’s needs,” said Acting U.S. Attorney Williams. “As alleged, the defendant manipulated his clients’ tax filings at the expense of honest taxpayers who take seriously their legal obligation to file complete and accurate federal income taxes each year. As we approach this year’s tax filing deadline, this is an important reminder.”
“Filing a tax return is one of the most significant financial transactions an average American taxpayer makes each year,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Taxpayers should be particular in selecting a return preparer and have confidence knowing that person will prepare an accurate tax return. IRS Criminal Investigation wants to make sure taxpayers do not pay good money for bad advice.”
If convicted, the defendant faces a maximum possible sentence of 87 years in prison, and a $7,250,000 fine.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former DRWC Bookkeeper Charged with Stealing $2.6 MillionRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Angela DiPietro-Sabatine, 57, of Pennsauken, NJ, was arrested and charged by Indictment with ten counts of wire fraud, one count of bank fraud, three counts of aggravated identity theft, and aiding and abetting, all stemming from her alleged theft of more than $2.6 million dollars from her former employer, the Delaware River Waterfront Corporation (DRWC). DRWC is non-profit, quasi-governmental entity whose mission is to design, develop, and manage the central Delaware River waterfront from Oregon to Allegheny Avenues for the benefit of Philadelphia residents.
According to the Indictment, when the defendant was employed at DRWC as the Accounting Administrator, her duties included managing the accounts payable and receivable, bank reconciliations, and general ledger work. The Indictment alleges that the defendant used the non-profit’s computerized accounting software, located in its offices in Philadelphia, to create false expense items for legitimate vendors of DRWC – invoicing services that were never rendered. DiPietro-Sabatine then generated DRWC checks for these false expense items, manipulated the computerized accounting software to change the payee on the check from the legitimate vendor to herself, and forged the signatures of DRWC’s authorized signatories, the President and Vice President, on these unauthorized checks made payable to herself. It is alleged that the defendant then spent the stolen proceeds on personal expenses, including gambling and luxury vacations. The Indictment alleges that this scheme occurred over the course of at least seven years, resulting in the theft of more than $2.6 million from DRWC.
“The alleged conduct in this case shows a pattern of deception and dishonesty that went on for the better part of a decade,” said Acting U.S. Attorney Williams. “Organizations must be able to rely on the honesty of employees who handle money, and this is especially important when the entity has a mission meant to benefit the public. As alleged, DiPietro-Sabatine went to great lengths to hide her criminal conduct from her employer; our Office thanks DRWC for coming forward and cooperating fully with the investigation so we can hold this defendant responsible for her actions.”
“The FBI is committed to tracking down those who abuse their positions of trust for personal gain,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Embezzlement from non-profits like DRWC erodes citizens' faith in their leaders, and bringing those engaging in economic crimes to justice will continue to be one of the FBI’s top criminal investigative priorities. Today’s indictment sends the message that the FBI will work tirelessly to protect non-profits and other government entities from fraud, waste and abuse.”
If convicted, the defendant faces a maximum possible sentence of 230 years in prison, a six year mandatory minimum sentence, a $4,250,000 fine, and restitution of more than $2.6 million.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
South Philadelphia Drug Trafficking Ringleader Sentenced to Nearly 20 Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Basil Bey, 31, of Philadelphia, PA, was sentenced to 19.5 years in prison, and six years of supervised release by United States District Judge Gerald A. McHugh for conspiring to distribute heroin and crack cocaine, and distributing heroin and crack cocaine, including near a playground.
Bey’s sentence comes after a jury returned guilty verdicts in December 2017 against Bey and three of his co-conspirators, all from Philadelphia, who have already been sentenced for their roles in the conspiracy: Reginald White, 34, was sentenced to 17.5 years, Tyrik Upchurch, 33, was sentenced to 18 years and seven months; and Amin Wadley, 29, was sentenced to 15.5 years. Six other defendants, also all from Philadelphia, previously pleaded guilty and were sentenced by Judge McHugh for their roles in the conspiracy: Sidney Cornish, 31; Dassan Cornish, 29; Jerome Lyles, 36; Rhasul Lucas, 32; Jihad Thorne, 24; and Quaadir Crawford, 32.
As presented at trial, from at least April 2015 through December 2016, Bey was the leader of a narcotics trafficking organization that sold heroin (including fentanyl-laced heroin) and crack cocaine nearly 24 hours a day, seven days a week, to buyers in South Philadelphia. The group, which included White, Upchurch, Wadley, Sidney and Dassan Cornish, Lyles, Lucas, Thorne, and Crawford as members, sold and delivered narcotics in shifts in order to serve customers day and night. Bey, Upchurch, and Wadley also maintained residences around Philadelphia in order to store and package the narcotics for distribution. Due to the dedicated efforts of law enforcement in this case, approximately thirty-five controlled purchases of heroin and/or crack were made from this drug group—all captured on video. Law enforcement also lawfully obtained a wiretap that captured some of the group’s cell phone activity.
“Drug trafficking is an insidious activity that destroys and demoralizes neighborhoods,” said Acting U.S. Attorney Williams. “Basil Bey was an expert at it, a career criminal committed to living a life of crime, and now he will pay the price by spending decades in prison. This is the just punishment that awaits drug dealers facing federal charges.”
“The FBI is committed to keeping communities safe from predators like Basil Bey and the members of his drug trafficking organization,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Bey’s actions and that of his co-conspirators are particularly heinous given that they trafficked in dangerous narcotics made even more lethal as they were laced with fentanyl. Today’s sentence sends the message to drug organizations and gang members that if you traffick in illegal drugs, we, along with our law enforcement partners, will hunt you down and bring you to justice.”
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorneys Jason Bologna and Kevin Jayne.
Three Men Indicted for Setting Off Explosives Inside Target, Wawas During October 2020 Civil Unrest in Philadelphia AreaRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Cushmir McBride, 21, of Yeadon, PA, Kamar Thompson, 34, of Philadelphia, PA, and Nasser McFall, 22, of Claymont, DE, were charged by Indictment for their alleged involvement in four separate incidents in Fall 2020: the robberies of a Target and a Wawa, and attempts to rob two different Wawas, all with multiple explosive devices. McFall is also charged with setting off an explosive device at a bank in Philadelphia later that year. McBride and McFall were previously arrested and charged by Complaint, and Thompson is in federal custody facing charges in a separate case involving the possession of a firearm by a convicted felon. Each defendant is expected to be arraigned on these new charges next week.
On October 26, 2020, a Philadelphia Police Officer-involved shooting occurred in the Cobbs Creek section of Philadelphia that resulted in the death of Walter Wallace, Jr. Peaceful protests began that evening and continued into the following days, accompanied by a period of civil unrest with widespread incidents of looting and violence in various neighborhoods in Philadelphia.
The Indictment announced today alleges that on October 28, 2020, defendants McBride, Thompson and McFall conspired to break into a Target in the Port Richmond section of Philadelphia and set off an explosive device in order to steal money from an ATM inside. The defendants are also alleged to have broken into a Wawa the following day, October 29, on Richmond Street in Philadelphia, where they once again set off explosive devices in order to steal money from the ATM. The Indictment further alleges that the defendants set off explosive devices in two other Wawas, one in Philadelphia and one in Claymont, DE, in two separate attempts to rob these stores in the same manner. Finally, McFall is alleged to have set off an explosive device inside an ATM at a Wells Fargo bank in Philadelphia on December 2, 2020.
Each defendant is charged with conspiracy to maliciously damage property used in interstate commerce by means of an explosive, and aiding and abetting, as well as four separate counts alleging maliciously damaging property used in interstate commerce by means of an explosive.
“The U.S. Attorney’s Office and the Department of Justice will always support the constitutionally protected right to peaceful protest and freedom of speech,” said Acting U.S. Attorney Williams. “However, there is no right to rob, loot or destroy property while endangering lives, as the defendants are accused of doing here. If you engage in violence and commit a federal crime during periods of civil unrest hoping the turbulence will afford you some cover, rest assured that it will not. As this Indictment shows, we will find you, charge you, and you will faces the consequences of your actions in federal court.”
“The Philadelphia Arson and Explosives Task Force maintains a wealth of expertise in these types of investigations,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “These arrests and indictment would not have been possible without the continued professionalism of our partners in the Philadelphia Police Department, the Philadelphia Fire Marshal’s Office and the United States Attorney’s Office. ATF is committed to vigorously working with all of our law enforcement partners and to utilize our expertise in explosives investigations to identify and arrest individuals that commit these types of crimes.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, each defendant faces a maximum possible sentence of 80 years in prison.
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.
Reading, PA Woman Sentenced to 15 Years in Prison for Sex Trafficking ChildrenRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Melissa Madera, 27, of Reading, PA was sentenced to fifteen years in prison, and a lifetime of supervised release by United States District Judge Joseph P. Leeson for multiple child exploitation and sex trafficking offenses.
In September 2020, the defendant pleaded guilty two counts of sex trafficking minors, and one count each of distribution, receipt, and possession of child pornography. The charges stem from Madera’s trafficking of two children, a 15-year-old girl and a 17-year-old girl, from about August until October 2017. Madera forced the girls to engage in commercial sex for her own financial gain, all while plying the minors with drugs like Ecstasy and cocaine to ensure their compliance. Sometimes one of the girls would not make it to school the following day because she had been given so many drugs the previous night.
Madera also obtained a sexually explicit image of one of the girls and used it on a commercial sex trafficking website, advertising the minor for commercial sex acts using locations like the Quality Inn in Wyomissing, PA, and the Days Inn, Kleins’ Motel and Roadway Inn, all in Reading, PA. The defendant would rent two rooms at the hotel: one room was for the commercial sex acts and Madera would stay in the other after meeting the sex buyers and charging a fee of $200 per hour. After the 15-year-old’s mother reported her missing to the Reading Police Department in October 2017, Madera confronted the girl and assaulted her, stating “This is what you get for being a rat.”
“The crimes committed by this defendant will physically and psychologically impact her victims for years to come,” said Acting U.S. Attorney Williams. “Madera advertised these children like objects and plied them with drugs so she’d be more easily able to control them. Her behavior is horrifying, and she deserves every single day of that prison sentence.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
Prolific Document Counterfeiter from Montgomery County Sentenced to over Two Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Danial Gomez-Velazquillo, 34, of Norristown, PA, was sentenced to two years and three months in prison, three years of supervised release by United States District Judge R. Barclay Surrick for producing unlawful and counterfeit federal documents, including Social Security Administration and Alien Registration cards.
In March 2020, the defendant pleaded guilty to six counts of unlawful production of identification documents, six counts of sale of Social Security cards (which utilized the social security numbers of five living victims and one deceased victim), and five counts of sale of alien registration cards. According to court documents, Gomez-Velazquillo was a mass producer of high-quality counterfeit documents, including social security cards and alien registration documents, so much so that he earned the nickname, “Photo Guy.” Evidence gathered in the investigation of the case indicated that the defendant produced over 7,000 separate identification documents.
“When we prosecute a fraudster for stealing personal identification information, we recognize that each nine-digit social security number is an American citizen,” said Acting U.S. Williams. “Social security cards and other identification documents have become critical in modern society to confirm individuals’ identities for a wide range of purposes, and those who commit these offenses can cause lifelong harm to the victims. We will continue to prioritize aggressive prosecution of these cases.”
“Homeland Security Investigations has been at the forefront of investigating fraud schemes,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “Together with our law enforcement partners we remain steadfast in our pursuit to safeguard the public and hold accountable fraudsters like the defendant, who profit from the production of unlawful and counterfeit federal documents.”
The case was investigated by Homeland Security Investigations and the Social Security Administration- Office of the Inspector General, and is being prosecuted by Special Assistant United States Attorney Megan Curran.
Baltimore Man Sentenced to 5+ Years as Part of Nationwide Scam to Pass Counterfeit Checks Worth over $1 MillionRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Robert Sean Harrington, 42, of Baltimore, MD, was sentenced to five years and four months in prison, three years of supervised release, and ordered to pay restitution in the amount of $204,066 by United States District Judge Joseph F. Leeson, Jr. for aggravated identity theft and conspiracy to commit wire fraud.
In September 2019, the defendant pleaded guilty to charges of aggravated identity theft, conspiracy and wire fraud. Harrington was one of nine men charged in a Superseding Indictment as part of a coordinated scheme that operated for over two years, between June 2016 and July 2018, with the purpose of committing identity theft in order to defraud various banks and Walmart, Inc., by presenting and cashing over $1,000,000 worth of counterfeit checks at Walmart stores throughout the United States.
All nine defendants in this case pleaded guilty to similar charges; many were previously sentenced and received the following sentences from Judge Leeson: Ahmad Becoate, 34, of Philadelphia, PA, was sentenced to 75 months in prison; Jeffrey Roach, 35, of Baltimore, MD, was sentenced to 94 months in prison; Jethro Richardson, 42, of Greensboro, NC, was sentenced to 70 months in prison; Nathaniel Jones, 41, of High Point, NC, was sentenced to 24 months in prison; Leander Rowell, 44, also of Greensboro, NC, was sentenced to 87 months in prison; and Brian Cherry, 45, of Charlotte, NC, was sentenced to 70 months in prison. All defendants were also ordered to pay substantial amounts of restitution.
“This was a sophisticated scheme involving many defendants that took excellent investigative work to unravel,” said Acting U.S. Attorney Williams. “Financial fraud and identity theft harm hard-working individuals every day. Our office will continue to aggressively prosecute the perpetrators and seek justice for victims.”
“Passing stolen or counterfeit checks is as old a scheme as the concept of checks themselves,” said Damon Wood, Postal Inspector in Charge of the Philadelphia Division of Postal Inspection Service. “Investigating and prosecuting these cases is tedious but necessary work as it helps to maintain confidence in our economic system. Also, real people are the ones hurt by these schemes as they are forced to work with their banks to recoup their lost money, close compromised accounts and open new clean accounts. Thank you to the United States Attorney, the Secret Service, and the Office of Inspector General from the Social Security Administration for working with us on this case and many other similar cases.”
“This case exemplifies the shared commitment of Federal law enforcement agencies to combat large-scale identity theft that harms businesses and consumers,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I want to thank the U.S. Secret Service and the U.S. Postal Inspection Service, as well as the U.S. Attorney’s Office, for their partnership as we work to maintain the integrity of the Social Security number as a key identifier.”
The case was investigated by the United States Secret Service, the United States Postal Inspection Service, and Social Security Administration Office of Inspector General, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Four Philadelphians Charged with Sex Trafficking of MinorsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that John Adams, 41, Mercedes Hampton-Devero, 28, Malachai Kendall, 20, and Chukuw Ossai, 31, all of Philadelphia, PA, were arrested and charged in two separate Indictments with sex trafficking of minors. Kendall was also charged with both production and distribution of child pornography, and Adams was also charged with tampering with evidence in a federal investigation.
According to publicly filed court documents, Adams, whose self-professed nickname was “Captain Save-A-Hoe,” along with co-defendants Hampton-Devero and Kendall, trafficked two minors during approximately three weeks in January of 2020 from multiple locations in Philadelphia. The defendants allegedly used their cell phones to post advertisements of the victims on a website which is known to be used for advertising sexual services for a fee, directed the minors to participate in commercial sex acts, and took a portion of the proceeds on each occasion. During this time, Kendall also allegedly used his cell phone to record one of the minors performing oral sex on him and then sent the video to the minor victim. Also according to court documents, Adams and Kendall each coerced the minors into having sex with them on multiple occasions, and Hampton-Devero instructed one of the minor victims to record commercial sex acts on her cell phone for Devero to post online to attract more sex buyers. When the minors were rescued and Adams learned he was under investigation by the FBI, he allegedly wiped his cell phone clean of all incriminating evidence.
In a separate Indictment, Ossai is charged with the sex trafficking of a minor in late January 2020. According to public filings, Ossai trafficked one minor, took her to a lingerie store where he picked out lingerie for her, posted an advertisement of her on a website used to advertise sexual services for a fee, and harbored her in a hotel room in Lester, PA. As charged, Ossai drove the minor victim to a housing project in Philadelphia for her to engage in a commercial sex act, and he attempted to have sex with her himself. The minor was rescued from Ossai’s vehicle after he was pulled over in Tinicum Township.
“The crimes alleged in these Indictments will have a devastating and long-lasting impact on these minor victims,” said Acting U.S. Attorney Williams. “We will continue to work collectively with our law enforcement partners to investigate and prosecute these destructive crimes against vulnerable children.”
If convicted, each defendant faces a maximum possible sentence of life imprisonment.
These cases were investigated by the Federal Bureau of Investigation, with assistance from the Tinicum Township Police Department and the Philadelphia Police Department, and are being prosecuted by Assistant United States Attorney Erica Kivitz.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bucks County Fluid-Dynamics and Software Development Company Agrees to Pay Almost $200k and Implement Compliance Improvements to Resolve Claims it Failed to Meet Federal Contract ObligationsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Combustion Research and Flow Technology, Inc. (“CRAFT”) based in Pipersville, PA, has agreed to pay $192,586 and implement enhanced compliance measures to resolve claims arising from its administration of Small Business Innovation and Research (“SBIR”) contracts funded through the Department of Defense and the National Aeronautics and Space Administration (“NASA”). Concurrent with its settlement with the Department of Justice, CRAFT reached an administrative agreement with the Department of Defense in which CRAFT committed to enhancing its compliance practices relating to SBIR contracts and timekeeping.
Like all federal agencies, the Department of Defense and NASA seek to support American small businesses through the award of research and technology development contracts. Their SBIR contracts and those of other agencies form “America’s seed fund,” providing critical capital to small businesses across the United States to develop new technologies or products. These products can be commercialized to provide small businesses with revenue streams to maintain or expand their operations for years to come.
The settlement resolves claims that CRAFT proposed that work would be performed by particular individuals – including in some cases its principal investigator on the research – who then performed little or no documented work on the contract, and that CRAFT neither sought nor received permission to substitute personnel under these contracts. Principal investigators, particularly, are supposed to have frequent contact with research personnel and have the overall responsibility for managing each project’s finances, administration, and scientific and technical direction. The United States does not allege that there was any issue with the quality or functionality of the research or other output that CRAFT produced under these contracts.
"Federally contracted researchers must account accurately for their time so that the United States knows it has received the work for which it bargained. Timekeeping obligations are especially important for the principal investigators and other key personnel upon whose qualifications the contracts were awarded,” said Acting U.S. Attorney Williams. “Whether a contractor is a small business, a major university, or a Fortune 500 company, principal investigators need to ensure that the government knows who is doing the work, and any changes in personnel must be clearly communicated to the United States before being made.”
“The Defense Criminal Investigative Service (DCIS) is committed to protecting research and development programs funded by the U.S. Department of Defense,” said Patrick J. Hegarty, Special Agent in Charge of the DCIS Northeast Field Office. “Today's settlement agreement is the result of a joint investigative effort and demonstrates our commitment to work with the USAO-EDPA and our law enforcement partners to ensure that claims submitted on SBIR contracts are proper.”
“SBIR/STTR program participants must accurately represent that they meet and will abide by the program’s compliance requirements,” said Special Agent-in-Charge, Mark. J. Zielinski, Eastern Field Office, NASA Office of Inspector General (“NASA OIG”). “Identifying attempts to circumvent the program requirements is one step in safeguarding access to limited government resources. NASA OIG, along with its law enforcement partners, will continue to aggressively investigate individuals and entities to ensure that American taxpayers get the work for which they contracted.”
Acting United States Attorney Williams also praised CRAFT’s agreement to enhance its compliance program: “We commend CRAFT for reacting promptly to the government’s investigation, cooperating fully, and taking serious steps to ensure this issue never recurs. We hope the compliance measures it has undertaken will be a model for other grantees and contractors looking to meet their responsibilities to the United States.”
This investigation was conducted as part of the United States Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force’s grant fraud initiative with investigators from DCIS, NASA-OIG, the U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service, the Air Force Office of Special Investigations, and the Department of Homeland Security Office of Inspector General. Assistant United States Attorneys Paul W. Kaufman and Veronica J. Finkelstein of the Eastern District of Pennsylvania handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Former Temple Business School Dean Indicted for FraudRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced during a press conference today that Moshe Porat, the former Dean of Temple University’s Richard J. Fox School of Business and Management (“Fox”), has been indicted on charges that he conspired and schemed to deceive the school’s applicants, students, and donors into believing that the school offered top-ranked business degree programs, so they would pay tuition and make donations to Temple.
Porat, 74, of Bala Cynywd, PA, was Dean of Fox Business School from 1996 until 2018. He also was the Dean of Temple’s School of Sports, Tourism & Hospitality Management from 1998 until 2018.
The Indictment charges Porat with one count of conspiracy to commit wire fraud and one count of wire fraud. According to the Indictment, from at least 2014 until at least 2018, Porat conspired with a Fox professor named Isaac Gottlieb and a Fox employee named Marjorie O’Neill to submit false information about the school’s online MBA (“OMBA”) and part-time MBA (“PMBA”) programs to U.S. News & World Report in order to inflate Fox’s rankings in the annual U.S. News surveys of top OMBA and PMBA programs.
Among other things, the conspirators allegedly agreed to provide false information to U.S. News about the number of Fox’s OMBA and PMBA students who had taken the Graduate Management Admission Test (“GMAT”); the average work experience of Fox’s PMBA students; and the percentage of Fox students who were enrolled part-time because it was believed that better numbers for these metrics would result in better rankings for the programs.
The Indictment charges that the scheme was successful. Relying on the false information it had received from Fox, U.S. News ranked Fox’s OMBA program Number One in the country four years in a row (2015 – 2018). U.S. News also moved Fox’s PMBA program up its rankings from No. 53 in 2014 to No. 20 in 2015, to No. 16 in 2016, and to No. 7 in 2017.
According to the Indictment, Porat boasted about these rankings in marketing materials directed at potential Fox students and donors. Enrollment in Fox’s OMBA and PMBA programs grew dramatically in a few short years, which led to millions of dollars a year in increased tuition revenues.
Gottlieb and O’Neill have been charged in a separate Information with one count of conspiracy to commit wire fraud.
“The success of the higher education system in the United States relies not only on the academic excellence and rigor of the programs offered, and not only on the aptitude and hard work of the applicants and students,” said Acting U.S. Attorney Williams, “but also on transparency and honesty about the system itself. Moshe Porat allegedly misrepresented information about Fox’s application and acceptance process, and therefore the student-body itself, in order to defraud the rankings system, potential students, and donors. His conduct, as alleged, undermines the integrity of the entire academic system and forever hurts the students who worked so hard for admission.”
“Moshe Porat knew that burnishing the MBA programs’ rankings would make Fox more competitive, bringing in more students and more dollars,” said Lilian S. Perez, Assistant Special Agent in Charge of the FBI’s Philadelphia Division.“Fudging the school’s data was a means to that end. But countless applicants, students, and donors made big decisions, financial decisions, based on the lies at the heart of this alleged conspiracy. This was an extended and extensive fraud, for which those involved must be held accountable.”
“Today’s action alleges that Mr. Porat knowingly abused his position of trust to defraud the very ones he promised to serve – Temple students. That is unacceptable,” said Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office. “As the law enforcement arm of the U.S. Department of Education, we will continue to aggressively pursue those who scam students or rig the system for their selfish purposes.”
“Leadership at institutions of higher education owe a duty to provide honest and accurate information about their schools and programs. As these leaders know, students, prospective students, prospective employees, employers, and others rely on the information they disseminate, and trust in its veracity,” said Postal Inspector in Charge Damon Wood. “Unfortunately, we have seen far too many examples of these leaders breaching this duty by engaging in deceptive activity. Today, the United States Attorney charged the former Dean of the Fox School Business at Temple University with providing fraudulent information to college ranking publications and then widely sharing that information with prospective students. This fraudulent data helped propel Temple Business School’s online degree program to a number one ranking in the US News and World Report and caused the program’s application and enrollment numbers to balloon. Many of these students would not have considered Temple if not for the number 1 ranking. The team from the FBI, the US Department of Education Office of Inspector General, and the Postal Inspection Service, spent several years working together to unravel this fraud. Today, thanks to their investigation, we are holding one of those individuals who engaged in this destructive conduct responsible and accountable.”
If convicted, Porat faces a maximum possible sentence of 25 years in prison, followed by three years of supervised release, and a $500,000 fine. Gottlieb and O’Neill each face a maximum possible sentence of five years in prison, followed by three years supervised release; and a $500,000 fine.
The case was investigated by the FBI, the United States Postal Inspection Service, and the Department of Education’s Office of the Inspector General; and is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Leader of Philadelphia Drug Trafficking Gang and Rap Artists “Original Block Hustlaz” Sentenced to 45 Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Abdul West, 38, of Brookhaven, PA, was sentenced to 45 years in prison, ten years of supervised release, and ordered to pay a $5,000 fines by United States District Judge Michael M. Baylson for his role as the leader of the Original Block Hustlaz, or “OBH,” a violent drug trafficking organization that doubled as a group of aspiring rap artists in Philadelphia. Two of West’s co-defendants, Jamaal Blanding, 39, and Jameel Hickson, 43, both of Philadelphia, PA, were also recently sentenced and received 25 and 20 years in prison, respectively.
In November 2019, all three defendants, plus an additional defendant who is still awaiting sentencing, Hans Gadson, 36, also of Philadelphia, PA, were convicted, after a two-and-a-half-week trial on charges that included conspiracy to distribute controlled substances, and distribution of or possession with intent to distribute cocaine, crack, and methamphetamine. Several other co-defendants pled guilty prior to trial. In total, nine defendants connected to OBH were charged in a 16-count Second Superseding Indictment in August 2019. All nine were convicted or pled guilty.
Between at least March 2017 through June of 2018, OBH poisoned the Philadelphia community by importing dangerous narcotics, including large quantities of methamphetamine and cocaine, from California to Philadelphia and then selling those drugs in the Philadelphia area. To further their drug business, OBH employed fear, intimidation, and violence. West was the driving force behind the violent character of OBH and routinely posted rap videos and other messages on social media in which he communicated threats of violence, and which demonstrated his power and authority within the organization. According to court documents, West ordered a member of the organization to murder a former member of the group, identified as R.J., because West believed R.J. was involved with West’s “enemy” and “playing both sides of the fence.” R.J. was ultimately shot multiple times and died.
In September 2017, officers and detectives from the Philadelphia Police Department executed a search warrant at 3234 North Sydenham Street, which was a property used by members of OBH to store and sell drugs. During the execution of the search warrant, numerous drugs were seized, including approximately 62 grams of cocaine base (“crack”), 229 grams of heroin, and 48 grams of a methamphetamine mixture. The officers also seized $8,101 from the residence.
In May 2018, FBI agents executed a search warrant on an apartment on Columbus Boulevard, another property used by OBH to store drugs. During the execution of the search warrant, the FBI and seized 10 kilograms of cocaine, nearly 6 pounds of pure methamphetamine, and $20,000 in cash.
In a related case, defendant Charles Salley, 39, of Clayton, Delaware, pleaded guilty to witness tampering in connection with the above-referenced trial. During the trial, a cooperating witness received a threatening letter from Salley under the pen name “Ron Harvey,” threatening physical violence if the witness testified at trial against West and his OBH associates. Salley was present in the courtroom during the course of the trial, including on the day of the witness’ scheduled testimony. The threatening letter was investigated by the FBI and the witness ultimately testified during the trial. Salley is scheduled to be sentenced in August 2021.
“West and his OBH co-defendants pumped huge quantities of deadly drugs into our community,” said Acting U.S. Attorney Williams. “As the evidence presented at trial showed, the defendant’s violent lyrics weren’t just creative expression, they were truthful depictions of the mayhem OBH created on the streets of Philadelphia. Our Office is determined to continue doing everything we can by being ‘All Hands On Deck’ to get violent criminals like OBH off the streets.”
This West/OBH case is part of the FBI’s Violent Gang Safe Streets Task Force, a program through which federal, state, and local law enforcement agencies collaboratively address the violent crime plaguing communities. It was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Everett Witherell and Timothy M. Stengel. The Salley case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Philadelphia Police Officer Indicted on False Statement and Obstruction ChargesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Michael Kennedy, 49, of Philadelphia, PA, was charged by Indictment with six counts of making materially false statements to the FBI, one count of obstruction of justice, and one count of conspiracy to make a false statement.
According to the Indictment, the defendant participated in the execution of a Philadelphia Police Department search warrant while on duty as a police officer. During the execution of that warrant, Kennedy is alleged to have pocketed evidence, that is, cash proceeds of drug trafficking that was on a nightstand. Subsequently, the Federal Bureau of Investigation (FBI) investigated reports that Kennedy stole this cash. The Indictment alleges that the defendant, when interviewed by FBI agents and Philadelphia Police Department Task Force Officers, made a number of false statements about the incident. The Indictment further alleges that the defendant obstructed justice by corruptly persuading another Philadelphia Police Department officer, and conspiring with that officer, to lie to the FBI about the incident in order to create an alibi and corroborate Kennedy’s false statements.
“The charges against Officer Kennedy allege behavior that is in stark contrast to values police officers are supposed to embody,” said Acting U.S. Attorney Williams. “Our community expects everyone in law enforcement to follow the law, and justice demands it. Thank you to the FBI and the Philadelphia Police Department for their dedicated work on this investigation.”
“As law enforcement officers, we must be held to the highest of ethical standards,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The public’s trust is critical for our justice system to function properly. That's why the FBI will do everything in its power to hold accountable an officer whose criminal actions undermine that trust.”
If convicted, the defendant faces a maximum possible sentence of 55 years’ imprisonment, including a federal Guidelines Range of a period of incarceration.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Philadelphia Police Department Task Force Officers, and is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Joseph LaBar.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Labor Contractor Indicted for Operating Undocumented Worker Conspiracy and Extensive Tax FraudRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Miguel Morales, 48, of Quarryville, PA; Jose Morales, 39, also of Quarryville, PA; Oscar Carrillo-Perez, 35, of West Grove, PA; and Santiago Garcia-Ramirez, 44, of Landenberg, PA; were arrested in a take-down operation conducted this morning following their Indictment on charges of conspiring to transport, and transporting, people who are not lawfully present in the United States. Additionally, Morales was charged with making false statements. In a separate Indictment, Miguel Morales and Lawrence Urena, 49, of Spring Lake, North Carolina (who was also arrested) were charged with conspiracy to defraud the United States and failure to collect and pay employment taxes.
According to the first Indictment, Miguel Morales, who owns and operates Morales Contractor based in Pennsylvania, provided a contracted labor force to various mushroom farms in Chester County, PA. These farms were businesses that were independent from Morales.' The labor force Morales provided was comprised of hundreds of undocumented workers. Morales provided some of these workers with housing in 10 properties that he owns in Lancaster and Chester Counties, and with transportation to and from the farms where they worked – charging those workers for both rent and transportation. The Indictment alleges that, from at least 2018, Miguel Morales, Carrillo-Perez, Garcia-Ramirez, and Jose Morales conspired to transport these undocumented workers who were illegally in the United States. The Indictment also alleges that Miguel Morales hired people regardless of their immigration status, hired undocumented aliens who were not lawfully present in the United States, did not file Form W-2 Wage and Tax Statements, and failed to collect and pay over to the IRS employment taxes for his business.
Defendants Carrillo-Perez, Garcia-Ramirez, and Jose Morales allegedly participated in the conspiracy by driving vehicles registered to Miguel Morales to transport the undocumented workers between their residences and the farms where they worked for Morales Contractor, handing out paychecks to the workers, and driving them to La Latina Intemational Market in Oxford, PA, where they could cash their paychecks and wire money to foreign countries. La Latina also was operated by Miguel Morales. The remaining counts of the Indictment charge all of the defendants with transporting undocumented people across state lines on various dates.
The second Indictment alleges that Miguel Morales and Lawrence Urena conspired to obstruct the IRS in its lawful assessment and collection of unemployment taxes. According to this Indictment, Urena operated Urena Accounting, which was a tax preparation business that handled accounting work for Morales, including weekly payroll. For calendar year 2020, Morales paid wages of $3,644,142 to employees, many of whom earned $10 per hour, which required him to withhold and pay over to the IRS approximately $921,968 in employment taxes. However, Morales allegedly paid no employment taxes to the IRS in 2020. Further, the Indictment also alleges that from 2015 to 2018, Morales paid the IRS only a fraction of what he owed, resulting in a tax loss of approximately $2 million.
“According to the Indictment, Miguel Morales and the other defendants knew they were employing undocumented workers as part of a years-long scheme to avoid paying their fair share of taxes to the United States,” said Acting U.S. Attorney Williams. “This case is about exploiting those less fortunate out of sheer greed. This type of fraud will not be tolerated in this District, and these defendants will now have to answer to these charges.”
If convicted, the defendants could face the following possible sentences: Miguel Morales faces a maximum possible sentence of 250 years of in prison, and a $8,750,000 fine; Lawrence Urena faces a maximum possible sentence of five years in prison, and a $250,000 fine; Carrillo-Perez faces a maximum possible sentence of 65 years of in prison, a $1,750,000 fine; Garcia-Ramirez faces a maximum possible sentence of 85 years in prison, and a$2,250,000 fine; and a Jose Morales faces a maximum possible sentence of 15 years of imprisonment, $500,000 and a period of supervised release of 3 years.
The case was investigated by Internal Revenue Service Criminal Investigation, Homeland Security Investigations, Department of Labor Office of Inspector General, and the Chester County Detectives; and is being prosecuted by Assistant United States Attorney Karen Grigsby.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Local Union Vice President Indicted for Operating Overtime Kickback Scheme in the Allentown Post OfficeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Joseph Whitbeck, 55, of Tamaqua, PA, was charged by Indictment with wire fraud and honest services wire fraud stemming from his operation of a scheme to defraud fellow union members out of rightfully earned overtime compensation.
The Indictment alleges that the defendant, while serving as the Vice President for the Local 274 branch of the National Association of Letter Carriers in the Lehigh Valley area, operated a kickback scheme involving certain letter carriers at the Allentown Post Office. As the Vice President, Whitbeck filed numerous grievances on behalf of groups of letter carriers, claiming that U.S. Postal Service managers violated overtime rules. The indictment charges that Whitbeck then settled these class-action grievances for total lump sums, without designating the specific individuals to whom overtime grievance payments were owed, so that he could select the payees at a later time. Meanwhile, according to the Indictment, Whitbeck offered to secure extra overtime grievance payouts for some letter carriers who agreed to kick back a portion directly to him, generally in cash. This kickback scheme, as charged, prevented non-participating letter carriers from receiving overtime grievance funds to which they were entitled. The Indictment also alleges that the defendant often made false and misleading statements to convince letter carriers to participate in his scheme; for example, the defendant frequently told letter carriers that he would use the kick-backed funds to assist other letter carriers who were out of work.
According to the Indictment, Whitbeck’s covert kickback scheme lasted more than a decade and was uncovered only when a concerned letter carrier raised the issue at a union Executive Board meeting in March 2018.
“Union representatives are supposed to act in the best interest of the union members, not manipulate them into participating in fraud,” said Acting U.S. Attorney Williams. “Here, Whitbeck held a position of trust and owed a fiduciary duty of honesty and loyalty to all letter carriers in the Allentown Post Office in connection with the equitable distribution of overtime grievance settlements. The defendant allegedly abused that trust and violated his obligation to union and non-union letter carriers alike.”
“The vast majority of the Postal Service's 630,000 employees are hard-working, trustworthy individuals who work around the clock to deliver the nation’s mail,” said Kenneth Cleevely, Executive Special Agent in Charge for the Eastern Area Field Office, United States Postal Service, Office of Inspector General. “However, when one of those individuals chooses to violate that trust, and the trust of their fellow employees, special agents with the U.S. Postal Service Office of Inspector General (USPS OIG) will vigorously investigate serious allegations, and seek the individual's prosecution and termination if appropriate. To report crimes committed by Postal Service employees, contact USPS OIG special agents at www.uspsoig.gov or 888-USPS-OIG.”
“An important mission of the U.S. Department of Labor, Office of Inspector General is to investigate allegations of corruption and fraud related to labor unions,” said Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General. “We will continue to work with our law enforcement partners to investigate these types of allegations”
“Joseph Whitbeck failed in his fiduciary duties and betrayed the trust of the members of Letter Carriers Branch 274 and the union itself by using his union position to enrich himself. The U.S. Department of Labor’s Office of Labor-Management Standards is committed to seeking justice on behalf of the labor unions and their membership when anyone puts personal financial gain ahead of the best interests of their fellow union members. We will continue to work with our investigative partners to ensure that those who are affiliated with labor organizations adhere to the highest standards of conduct,” said OLMS Northeastern Regional Director Andriana Vamvakas.
If convicted, the defendant faces a maximum possible sentence of 400 years imprisonment, a $5,000,000 fine, three years supervised release, and a $2,000 special assessment.
The case was investigated by the U.S. Postal Service – Office of Inspector General, the U.S. Department of Labor – Office of Inspector General, and the U.S. Department of Labor – Office of Labor-Management Standards, and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.