Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
U.S. Attorney McSwain Announces Charges Filed Against Leader of Northeast Philadelphia Heroin Distribution Ring, his Girlfriend and Five OthersRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Juan Caceres, 30, of Elkins Park, PA; Jose M. Suarez-Mendosa, 29, of Philadelphia, PA; Jerson David Diaz, 31, of Philadelphia, PA; Ezequiel Regalado-Rosario, 45, of Philadelphia, PA; Ramcel Duarte-Rodriguez, 21, of Philadelphia, PA, and Juan Francisco Regalado-Ferreras, 27, of Philadelphia, PA, were arrested and charged by criminal complaint on charges of possession with intent to distribute various amounts of heroin as associates of the Caceres drug trafficking organization.
During the execution of simultaneous search warrants in June, Caceres, Regalado-Rosario, Duarte-Rodriguez and Regalado-Ferreras were arrested at a residence in the 1000 block of Saint Vincent Street in Northeast Philadelphia and charged with possession with intent to distribute one kilogram or more of heroin. At the same time, Suarez-Mendosa and Diaz were arrested at a residence in the 2900 block of Teesdale Street, also in Northeast Philadelphia, and charged with possession with intent to distribute 100 grams or more of heroin.
All six defendants made their initial appearances in federal court last week. Caceres – the ring-leader of the group – Diaz, Suarez-Mendosa, and Regalado-Rosario were all detained by the court until trial. Duarte-Rodriguez and Regalado-Ferreras will appear in court for their detention hearings on Friday, June 26. A seventh defendant, Braulizabeth Reyes-Villanueva (identified as Person #1 in the criminal complaint), 31, of Philadelphia, PA, was charged elsewhere with conspiracy to distribute one kilogram or more of heroin, was arrested separately and also made an appearance in court last week.
In a related investigation, four other defendants, Tennille Lee, 43, of Atlantic City, NJ; Ebony Chapman, 40, of Absecon, NJ; Andrew Prater, 38, of Atlantic City, NJ; and Theresa Lockhart, 28, of Millville, NJ; were charged elsewhere by the Atlantic County Prosecutor’s Office and arrested by authorities in New Jersey in June as part of a joint investigation with members of the Liberty Mid-Atlantic HIDTA (High Intensity Drug Trafficking Area) Task Force.
According to the federal criminal complaint, from February until June 2020, the defendants operated a drug trafficking scheme to package, store and distribute large amounts of heroin in Philadelphia, PA; Elkins Park, PA; Atlantic City, NJ; and other locations in the region. During the execution of the Teesdale Street and Saint Vincent Street search warrants, agents discovered a large-scale heroin packaging operation at the residence on Saint Vincent Street, including tens of thousands of packets of heroin, grinders, scales and other paraphernalia, as well as a loaded Glock 42 firearm with an additional box of 50 rounds. Agents also found two children, approximately two months old and four years old, apparently living in the drug-infested residence.
During the investigation, agents allegedly observed Reyes-Villanueva and Caceres supplying Lee with packages of drugs on multiple occasions in an alleyway behind the Teesdale Street residence. Lee would transport the drugs from Philadelphia in her vehicle to a stash house in Atlantic City. From there, Lee, Chapman, Prater and Lockhart were also allegedly involved in a drug distribution conspiracy in New Jersey working for a different organization. According to the complaint, Reyes-Villanueva is romantically linked with Caceres and is a major facilitator in his organization with multiple vehicles used by members of the group registered in her name.
“As alleged in the criminal complaint, Caceres and his cohorts pumped huge quantities of deadly heroin onto the streets of our city and region,” said U.S. Attorney McSwain. “Drug trafficking is an inherently dangerous business that preys on individuals in addiction and puts innocent bystanders, like the two young children found living in one of these drug dens, in jeopardy. Our office is determined to work with our law enforcement partners at all levels and in other jurisdictions to investigate and convict those who are poisoning our community with deadly drugs and put them where they belong -- behind bars.”
“Those who profit from drug trafficking have no regard for the incredible damage they’re doing to our communities,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “As alleged, Caceres and his crew pushed vast amounts of heroin into Philadelphia, Atlantic City, and surrounding areas, a region hit hard by the opioid epidemic. The FBI will continue to work with our federal, state, and local partners to take drug traffickers and their dangerous product off the streets.”
“This investigation proves once again that drug traffickers do not allow state lines to interfere with their illegal operations,” said Susan A. Gibson, Special Agent in Charge of the DEA’s New Jersey Division. “It is the mission of law enforcement at all levels to keep our communities safe. Those choosing to distribute these deadly narcotics need to know we will go wherever the investigation takes us to carry out that mission.”
“Atlantic County is a part of the epi-center of the opioid epidemic in this country,” said Atlantic County Prosecutor Damon G. Tyner. “This operation is exactly the type of collaborative effort that we envisioned when the Atlantic County Prosecutor’s Office sought to be included in the Liberty Mid-Atlantic High Intensity Drug Trafficking Area. The ability to work with multiple agencies to disrupt the illegal activity of large drug trafficking organizations and make our community safer is our mission every day.”
If convicted, the defendants arrested in the Teesdale residence, Suarez-Mendosa and Diaz, face a maximum possible sentence of 40 years in prison, and the defendants arrested in the Saint Vincent Street residence, Caceres, Regalado-Rosario, Duarte-Rodriguez and Regaldo-Ferreras, as well as Reyes-Villanueva, face a maximum possible sentence of lifetime imprisonment.
The case was investigated by the Federal Bureau of Investigation Philadelphia Division, the Philadelphia Police Department, the Pennsylvania Attorney General’s Office, the Montgomery County District Attorney’s Office Detectives – Violent Crime Unit, and the Cheltenham Police Department, with assistance from the Federal Bureau of Investigation Newark Division – Atlantic City Resident Agency, the Drug Enforcement Administration Atlantic City office and the Atlantic County Prosecutor’s Office, and is being prosecuted by Assistant United States Attorney Joseph Labrum.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Allentown Business Owner Admits to Identity Theft and Pursuing Hundreds of Thousands of Dollars in Fraudulent Federal Tax RefundsRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced that Stalyn Morales, 42, of Easton, Pennsylvania, pleaded guilty to one count of submitting false claims to the United States and one count of aggravated identity theft before United States District Court Judge Jeffrey L. Schmehl.
The charges stem from the defendant’s participation in a scheme to obtain federal income tax refunds using other individuals’ stolen identities. As he admitted in court, the defendant sought more than $295,000 in fraudulent refunds from the IRS.
Investigators discovered the fraud through an analysis of the computers and computer servers located in the defendant’s business, MDFA Auto, in Allentown, PA. Evidence recovered from the shop showed that an IP address associated with the business was the source of fraudulent electronic tax filings. Also found were a digital cache of stolen identities, fraudulent taxes, falsified identity documents, and a spreadsheet documenting this criminal activity. Nearly all of the more than $295,000 in requested refunds were not issued to Morales because the IRS detected the fraud in time to deny most of the requests. As part of his plea, Morales will be ordered to pay restitution of the funds that were disbursed before the fraud was detected.
“Morales’ scheme victimized honest taxpayers in two ways: first, by stealing their identities and second, by trying to rip off the federal government,” said U.S. Attorney McSwain. “Now, he will face the consequences, as will anybody else who attempts to carry out a similar scheme.”
“Mr. Morales sought to willfully defraud the United States Treasury. He did so with a blatant disregard for the victims of his scheme,” said IRS Criminal Investigation SpecialAgent in Charge Thomas Fattorusso. “His willful act of filing fraudulent tax returns using stolen identities is a felony offense; one that has severe consequences.”
The defendant faces a maximum possible sentence of seven years in prison, four years of supervised release, and up to a $500,000 fine.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney David J. Ignall.
Philadelphia Woman Who Worked with Children at Multiple Locations Arrested for Distributing Child PornographyRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Tayanna Bowman, 23, of Philadelphia, Pennsylvania, has been arrested and charged with one count of distribution and attempted distribution of child pornography. The charges arise out of the defendant’s alleged distribution of images and videos -- including to an undercover federal agent -- on a file sharing platform over the internet.
At the time of the alleged offenses, Bowman worked with some of the most vulnerable members of society – autistic children. She was employed as a behavioral health technician at ChanceLight Autism Services in Havertown until June 12, 2020. Previously, she was employed as a teaching assistant at Cynthia’s Little Treasures Day Care on North 63rd Street in West Philadelphia.
“The allegations in this case are disturbing,” said U.S. Attorney McSwain. “Any child exploitation case is a very serious matter, but here, the defendant was working with vulnerable, autistic children while she was engaged with an online community of individuals interested in the sexual abuse and exploitation of children -- and illegally distributing child pornography to that community. It is our duty to protect the most vulnerable members of society and we will continue to uphold that duty by bringing to justice anybody who preys upon minor children.”
“It’s extremely concerning when someone allegedly distributing child pornography also works with children,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI is committed to identifying, locating, and holding responsible anyone who circulates this vile material. In doing so, they extend the trauma of the children victimized and drive a demand for additional abusive content.”
If convicted, Bowman faces a statutory maximum sentence of 20 years in prison, a lifetime of supervised release, and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Kelly Harrell.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney McSwain Announces Charges against Philadelphia Man for Blowing up an ATM and Illegal Possession of a Firearm during ProtestsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that David Elmakayes, 24, of Philadelphia, PA, was charged by criminal complaint with malicious damage of property with an explosive device and possession of a firearm by a convicted felon. The defendant is currently in federal custody and will make his initial appearance in federal court tomorrow. The government will be seeking the defendant’s detention pending trial on these charges.
Following peaceful protests on May 30, 2020, in response to the killing of George Floyd in Minneapolis, MN, civil unrest began to unfold in Philadelphia later that day and continued for several days thereafter. Widespread looting, burglary, arson, destruction of property, and other violent acts occurred.
The complaint alleges that on June 3, 2020, at approximately 11:45 p.m., Elmakayes used an explosive device to heavily damage an automated teller machine (ATM) on the sidewalk at 217 East Westmoreland Street in North Philadelphia. When he was arrested a short time later, he had three more explosive devices in his possession, as well as a .32 caliber pistol.
“Blowing up an ATM and illegal firearms possession are not acts of protest against perceived injustice. They are federal felonies and will be treated as such,” said U.S. Attorney McSwain. “As alleged, Elmakayes tried to take advantage of the unrest in Philadelphia to get away with a violent crime. Now he will face the consequences.”
“It is always disconcerting when individuals take advantage of sensitive situations to destroy property and terrorize our communities,” said Acting Special Agent in Charge John Schmidt, ATF Philadelphia Field Division. “When individuals choose to recklessly put innocent lives in danger, we commit our resources and unique capabilities in working with our law enforcement partners to bring those responsible to justice. This arrest is an example of how a joint effort with the Philadelphia Police Department and the Philadelphia Fire Marshal’s office did exactly that. We will continue to work together to ensure the safety of our citizens.”
If convicted, the defendant faces a mandatory minimum of fifteen years’ imprisonment, three years’ supervised release, and a $500,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Philadelphia Police Department, and the Philadelphia Fire Marshal’s Office, and is being prosecuted by Assistant United States Attorney Joseph A. LaBar
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Cumru Township Police Lieutenant Pleads Guilty to Child Pornography OffensesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Timothy Woll, 54, of Sinking Spring, Pennsylvania, has pled guilty to child exploitation charges before United States District Court Judge Edward G. Smith.
Woll was charged by Information in March 2020 with transportation of child pornography and access with intent to view child pornography. The charges arise from the defendant’s intent to view and to transport images of child pornography from his personal, home computer onto his personal Microsoft OneDrive cloud storage account in January 2019. An investigation of the defendant’s computer led to the discovery that his OneDrive account contained nearly 200 unique images of child pornography. During the time of this investigation and Woll’s subsequent arrest, the defendant was employed as a police lieutenant and evidence custodian for the Cumru Township Police Department in Berks County.
“This is an appalling case,” said U.S. Attorney McSwain. “The defendant was a member of a law enforcement organization charged with enforcing the law and protecting the public, but instead he chose to break the law and acquire child pornography. We stand ready with our federal and local partners to identify and prosecute all those who would prey upon minor children, no matter who they are.”
“The FBI works every day to track down those who seek out child pornography, because the demand for these depraved images leads to the continued sexual exploitation of young children,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The fact that a fellow law enforcement officer was involved with such material was extraordinarily disheartening to all of us. We and our partners will never stop working to save kids from physical and emotional harm.”
Woll faces a five year mandatory minimum term of imprisonment and a statutory maximum sentence of 40 years, up to a lifetime of supervised release, and a $500,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Berks County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Kelly Harrell.
U.S. Attorney McSwain Announces Charges Against Philadelphia Woman for Arson of Two Philadelphia Police Cars During ProtestsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Lore-Elisabeth Blumenthal, 33, of Philadelphia, PA has been charged by criminal complaint for the arson of two Philadelphia Police Department (PPD) vehicles.
The defendant is currently in federal custody and had her initial appearance in federal court yesterday. The government will be filing a motion for the defendant to be detained pending trial.
Following peaceful protests in the early afternoon of May 30, 2020 in response to the killing of George Floyd in Minneapolis, MN, civil unrest began to unfold later that afternoon in Philadelphia that resulted in widespread looting, burglary, arson, destruction of property, and other violent acts.
On that day, two vehicles, one PPD sedan (number 2514) and one PPD sport utility vehicle (number 1612), were parked on the north side of City Hall in Philadelphia. During the violent episodes that began around City Hall that afternoon, Blumenthal allegedly set fire to both vehicles. According to the complaint, various videos taken at the scene captured the defendant wearing protective goggles and gloves, taking a flaming piece of wooden police barricade from the rear window of the PPD sedan that was already on fire, and then shoving the flaming wood into the PPD SUV that was not on fire. Within minutes, the PPD SUV was also completely engulfed in flames. As result of the fires, both PPD vehicles were destroyed.
“We at the U.S. Attorney’s Office fully support the First Amendment right of the people to assemble peaceably and to petition their government. But torching a police car has nothing to do with peaceful protest or any legitimate message. It is a violent and despicable act that will be prosecuted in this District to the fullest extent of the law,” said U.S. Attorney McSwain. “Anybody who engaged in such acts can stand by to put your hands behind your back and head to federal prison. We are coming for you.”
“During the past several weeks, multitudes of people peacefully and lawfully exercised their First Amendment right to protest,” said Philadelphia Police Commissioner Danielle Outlaw. “However, there were individuals who chose to use the protests as an opportunity to engage in criminal activity. Some of these individuals’ actions were malicious, destructive, and could have resulted in critical injuries to others. We are privileged to have worked, and will continue to work, with our partners in law enforcement to investigate, identify and hold accountable the persons who committed these unlawful acts.”
“Our communities deserve to be safe from these types of violent crimes,” said Acting Special Agent in Charge John Schmidt. “Everybody deserves to be safe from violent criminals utilizing dangerous methods to destroy our neighborhoods and property. ATF will always work with our local, state and federal partners to investigate and arrest the criminals who choose to use arson to commit their crimes and terrorize the public.”
“Masses of people took to the streets of Philadelphia on May 30, exercising their right to peacefully protest,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “They were there to send a message in which they truly believed. Sprinkled among the crowd, though, were agitators, whose sole purpose was to commit crimes and cause chaos. As alleged, Blumenthal came prepared for just that, carrying out these arsons that destroyed property and put many lives at risk. Sadly, such acts also hijacked the message of the day’s demonstrators, whose calls for change were obscured for a time by the smoke from all those fires. Working with our law enforcement partners, the FBI is committed to bringing to justice those responsible for violent acts during the otherwise peaceful protests in Philadelphia.”
“Homeland Security Investigations fully respects the rights of all people to voice their opinion without interference, including through peaceful assembly and protest,” said Brian A. Michael, Special Agent in Charge for HSI Philadelphia. “Unfortunately, a number of protestors enticed violence that resulted in destruction of property throughout the City of Philadelphia. In instances like these, HSI works closely with federal, state, and local law enforcement partners to ensure those who inflict damage that impacts the safety and security of our community are held accountable.”
If convicted, the defendant faces a maximum possible sentence of eighty years in prison, followed by three years of supervised release, and a fine of up to $500,000.
The case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, and Firearms, the Philadelphia Police Department and the Philadelphia Fire Marshal's Office, with assistance from the New Jersey Office of Homeland Security and Preparedness, and is being prosecuted by the United States Attorney’s Office for the Eastern District of Pennsylvania.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney McSwain Announces Charges Against Massachusetts Man for Sending Racist, Threatening Emails to the Philadelphia Police CommissionerRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Peter Fratus, 39, of West Dennis, Massachusetts, was arrested and charged by criminal complaint with sending threatening emails to Philadelphia Police Commissioner Danielle Outlaw, in violation of 18 U.S.C. § 875, which prohibits transmitting threatening communications in interstate commerce.
After his arrest, Fratus made his initial appearance today in the U.S. District Court for the District of Massachusetts, prior to his transfer to the Eastern District of Pennsylvania. The U.S. Attorney’s Office for the Eastern District of Pennsylvania will also be filing a motion seeking detention of the defendant pending trial.
The criminal complaint in this case alleges that on June 6, 2020, the defendant sent two emails to the Philadelphia Police Commissioner’s email address. Both emails allegedly contained racist, offensive, and threatening language, with one communication asking where Commissioner Outlaw lives. The complaint further states that an investigation by the FBI determined the originator of the emails was Fratus and forensic evidence reinforced that Fratus sent both emails.
“As alleged in the criminal complaint, Peter Fratus’ racist threats towards Commissioner Outlaw were vile and disturbing,” said U.S. Attorney McSwain. “We take such threats very seriously, and let this be a warning to anyone who might feel the urge to fire off an online threat directed at a public official: we will trace your digital footprint, track you down and hold you accountable.”
“While the First Amendment gives us the right to express our own opinions, violent physical threats are certainly not protected speech,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “When someone threatens the life of another person, it’s a clear red flag and we have to take their despicable words at face value. Today’s arrest of Peter Fratus demonstrates the FBI’s resolve to investigate and bring to justice anyone who crosses this line.”
If convicted, the defendant faces a maximum possible sentence of five years in prison, three years of supervised release, and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Robert Livermore.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Pleads Guilty to Engaging in Illicit Sexual Conduct with Minors in the Republic of KenyaRead the Press Release
A Lancaster County, Pennsylvania man pleaded guilty today to engaging in illicit sexual conduct in a foreign place.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania and Special Agent in Charge Michael Driscoll of the FBI’s Philadelphia Field Office made the announcement.
Gregory Dow, 61, pleaded guilty to four counts of engaging in illicit sexual conduct in a foreign place, before U.S. District Court Judge Edward G. Smith. Sentencing is set for Sept. 29, 2020.
According to the plea agreement, Dow, an American citizen, traveled to the Republic of Kenya in 2008 to start an orphanage which came to be known as the Dow Family Children’s Home. While running the orphanage with his wife, he sexually abused, on multiple occasions, four minor girls between October 2013 and September 2017. During this time period, he maintained ties to the United States.
The FBI’s Philadelphia Field Office conducted the investigation with assistance from Kenyan authorities and local law enforcement in Lancaster County, Pennsylvania. Trial Attorneys Lauren S. Kupersmith and Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Timothy M. Stengel of the Eastern District of Pennsylvania are prosecuting the case.
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 U.S. Attorneys’ Offices and 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 year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
MSC Gayane Crew Member Pleads Guilty to Cocaine Trafficking Stemming from One of the Largest Drug Seizures in U.S. HistoryRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Vladimir Penda, 27, of the country of Montenegro, entered a plea of guilty before United States District Court Judge Harvey Bartle III on charges of conspiracy to possess with intent to distribute 5 kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States.
In 2019, Penda, a crew member who worked on board the shipping vessel MSC Gayane as the ship’s fourth engineer, conspired with others to engage in bulk cocaine smuggling. On multiple occasions during the MSC Gayane’s voyage at sea, crew members, including Penda, helped load bulk cocaine onto the vessel from speedboats that approached under cover of darkness, traveling at high speeds. Crew members used the Gayane’s crane to hoist cargo nets full of cocaine onto the vessel and then stashed the drugs in various shipping containers.
On June 17, 2019, federal, state, and local law enforcement agents boarded the MSC Gayane when it arrived at Packer Marine Terminal in Philadelphia and seized approximately 20 tons of cocaine on the ship, with a street value of over $1 billion. This was one of the largest drug seizures in U.S. history.
“Federal agents found nearly 20 tons of cocaine hidden on this ship when it arrived in the port of Philadelphia in June 2019,” said U.S. Attorney McSwain. “Over the past year, prosecutors in my Office, in conjunction with our partner agencies, have been working non-stop to pursue justice in this case in order to protect our district and our country. We want to send a strong message to criminals around the world that Philadelphia is not a safe harbor for their deadly drug trafficking.”
“Mr. Penda’s guilty plea is a testament to Homeland Security Investigations commitment to holding all those involved in the transnational drug smuggling investigation aboard the MSC Gayane accountable,” said Brian A. Michael, Special Agent in Charge for HSI Philadelphia. “HSI, in collaboration with CBP, the Coast Guard, and our other federal, state and local law enforcement partners, are committed to the detection and disruption of transnational drug smuggling, and will continue to work in concert with the U.S. Attorney’s Office for the Eastern District of Pennsylvania to keep our communities safe.”
“Mr. Penda’s plea agreement reinforces the notion that there are severe consequences for trafficking large amounts of dangerous drugs, such as this record-breaking cocaine seizure, into our communities,” said Casey Durst, CBP’s Director of Field Operations in Baltimore. “Customs and Border Protection remains steadfast on our nation’s borders, and arm-in-arm with our federal, state and local law enforcement partners, to protect our communities.”
The defendant faces a maximum possible sentence of lifetime imprisonment.
The case is being investigated by Homeland Security Investigations and the United States Customs and Border Protection, together with a multi-agency team of federal, state, and local partners.
Lancaster Man Pleads Guilty to Charges of Sexually Abusing Children in a Kenyan OrphanageRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Gregory Dow, 61, of Lancaster, PA entered a plea of guilty before United States District Court Judge Edward G. Smith on four counts of engaging in illicit sexual conduct with a minor in a foreign place, stemming from his operation of an orphanage in Kenya.
In early 2008, Dow and his family traveled from Lancaster County to the Republic of Kenya to start an orphanage. The orphanage, which came to be known as the Dow Family Children’s Home, was established in Bomet County, Kenya around April 2008. The defendant purported to be a Christian missionary who cared for these children and asked them to call him “Dad.” But instead of being a father figure, he preyed on their youth and vulnerability. The Dow Family Children’s Home remained in operation until September 2017, at which time Kenyan authorities suspected that Dow had sexually abused children in his care. Dow fled Kenya when the allegations came to light, returning to Lancaster County.
Acting on a tip, the Federal Bureau of Investigation (FBI) investigated the allegations and determined that Dow had sexually abused at least four teenage girls between October 2013 and September 2017. Two of the girls were as young as 11 years old when the abuse began. The defendant’s wife even transported the victims to a medical clinic to have birth control devices implanted into their arms so that Dow could perpetrate his crimes without fear of impregnating his victims. In July 2019, he was charged in a four count Indictment. Today, the defendant pleaded guilty to all counts.
“Gregory Dow hid behind his supposed faith on the other side of the world, hoping no one in the U.S. would know or care about the children he abused. He was wrong,” said U.S. Attorney McSwain. “Holding those accountable who sexually abuse children, no matter where their crimes occur, will continue to be a top priority of my Office and the entire Department of Justice.”
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. 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 investigation was conducted by the FBI with assistance from Kenyan authorities, the Lancaster City Bureau of Police and the East Hempfield Township Police Department. The case is being prosecuted by Assistant United States Attorney Timothy Stengel of the Eastern District of Pennsylvania and Department of Justice Trial Attorneys Lauren Britsch and Lauren Kupersmith of the Child Exploitation and Obscenity Section (CEOS).
United States Announces $425,000 Settlement with Allentown Beauty School for Allegedly Falsifying Federal Student Financial Aid ClaimsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Metro Beauty Academy, LLC (“MBA”) has agreed to pay $425,000 to resolve allegations that the school falsely sought federal student aid for students ineligible to receive such aid.
MBA is a private, for-profit beauty school with its principal office and campus located in Allentown, PA. Since May 2007, MBA has operated various educational and technical programs, such as cosmetology, esthetics, and massage therapy. MBA offers financial aid to its students through various federal financial aid programs, including Federal Pell Grants, Federal Direct Loans, and Federal Family Education Loans. To receive federal financial aid funds, MBA entered into a program participation agreement with the United States Department of Education. The Department of Education conditions MBA’s receipt of federal financial aid upon compliance with Title IV of the Higher Education Act of 1965 (“Title IV”).
The settlement resolves allegations raised by a whistleblower pursuant to the qui tam provisions of the False Claims Act and resolves the findings of the Department of Education’s program review. An investigation by the United States Attorney’s office focused on allegations that from January 2009 through December 2013, MBA knowingly submitted or caused to be submitted claims for federal student financial aid that were false because the students were ineligible to receive such aid. Specifically, the United States alleges that the students did not have a high school diploma or equivalent at the time they enrolled at MBA, as required by Title IV. In some cases, the United States contends that MBA staff created fake diplomas for students, or encouraged students to obtain false credentials from “diploma mills.”
“When schools agree to participate in the Title IV federal financial aid program, they must comply with regulations designed to ensure that qualified students have access to higher education,” said U.S. Attorney McSwain. “When a school receives financial educational assistance for ineligible students, it is unfair not only to other educational institutions that comply with the regulations, but also to the students attending the non-compliant school who may find themselves unqualified for employment and saddled with debt.”
In accordance with the settlement agreement, MBA will make total payments of $425,000. Included in that amount are payments to the federal government for losses associated with the federal student financial aid program, and to the whistleblower pursuant to the False Claims Act.
This settlement resolved a lawsuit filed under the False Claims Act in the U.S. District Court for the Eastern District of Pennsylvania. Under the qui tam or whistleblower provisions of the False Claims Act, private citizens, called relators, are permitted to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. The False Claims Act also permits the government to intervene and take over the lawsuit, which occurred in this case. The qui tam complaint was filed by Brian J. McCormick of Ross Feller Casey, LLP in Philadelphia. “We thank the relator and relator’s counsel for their invaluable contribution in this case. Without information from citizens like the relator, detecting fraud and conserving government program funds would be much more difficult,” said U.S. Attorney McSwain.
The government’s resolution of this matter illustrates its emphasis on combating fraud on student financial aid programs and other grant fraud. One of the most powerful tools in this effort is the False Claims Act. This case was investigated by the Department of Education Federal Student Aid Office and the Department of Education Office of Inspector General. It is being handled by Assistant United States Attorney Stacey L. B. Smith, with assistance from Auditor Dawn Wiggins, and Fraud Investigator Jeffrey Braun.
The case is captioned United States of America, ex rel. Tracy L. Donmoyer v. Metro Beauty Academy, LLC., Civ. A. No. 14-4540 (E.D. Pa.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Montgomery County Man Pleads Guilty to Nearly $2.8 Million Embezzlement Scheme Against Lancaster CompanyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Steven J. Russo, 43, of Pennsburg, PA, pleaded guilty today to wire fraud and filing false tax returns before United States District Court Judge Jeffrey L. Schmehl. The charges arose from Russo’s embezzlement of $2.79 million from his former employer, a company in Lancaster, PA, for which he served as the Director of Information Technology from November 2013 until October 2018.
Russo used his access to his former employer’s lines of credit and credit cards to make unearned payments to companies owned and controlled by him, and to purchase items that he kept for his personal use or sold for his personal gain. He also caused his former employer to issue checks to the companies he owned and controlled, and to make payments via PayPal to an account he controlled. Russo reported his taxable income for 2017 as only $18,579, when in reality his taxable income was nearly $1 million.
“The U.S. Attorney’s Office takes offenses like embezzlement and tax fraud very seriously,” said U.S. Attorney McSwain. “Russo stole millions by abusing his trusted position with his former employer. My Office will continue to work with our law enforcement partners to protect innocent businesses and taxpayers from being victimized by this type of fraud.”
“Not only did Mr. Russo steal millions of dollars from his employer, he also stole from the government and the American people when he decided to shirk his tax obligations,” said IRS-Criminal Investigations Special Agent in Charge Thomas Fattorusso. “His admission of guilt today underscores our commitment to protecting the integrity of the tax system by ensuring that everyone pays their fair share of taxes.”
Russo faces up to twenty-three years in prison, as well as restitution, fines, supervised release, and special assessments.
This case was investigated by IRS-Criminal Investigations, and is being prosecuted by Assistant United States Attorney Bea Witzleben.
Philadelphia Man Sentenced to over Four Years in Prison for Illegally Possessing a FirearmRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Khalil Key, 32, of Philadelphia, PA was sentenced to 52 months of imprisonment and three years of supervised release by United States District Judge Jeffrey L. Schmehl.
Key pleaded guilty in November 2019 to charges of being a felon in possession of a firearm, specifically a loaded Glock .40 caliber semi-automatic pistol. In March 2019, Key was approached by Amtrak Police at the Lancaster train station after he departed a train originating from Philadelphia. Key dropped a backpack on the floor of the station and ran from the officers. Police recovered the backpack and found the loaded weapon and Key’s personal identification inside. Key has previously been convicted of, and served terms of imprisonment for, weapons offenses.
“Reducing violent crime is a top priority of my Office and the Department of Justice,” said U.S. Attorney McSwain. “Firearms in the hands of convicted felons pose a serious threat to public safety. We are committed to working with our law enforcement partners to address this threat, whether it be on the streets of large cities, in small towns or anywhere in between -- including on public transportation.”
“This case is a reflection of our incredible working relationships with our local, state and federal law enforcement partners,” said Acting Special Agent in Charge John Schmidt, ATF Philadelphia Field Division. “Any time we can get a firearm out of the hands of a prohibited person, especially one with a history of weapon offenses, is a good day.”
“Amtrak Police appreciates the strong partnerships that we have with our Federal, state and local agencies, which all assist with keeping our system safe and secure,” said Amtrak Police Department Chief Neil Trugman.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Amtrak Police. The U.S. Marshals Service assisted in Key’s arrest. The case is being prosecuted by Assistant United States Attorney Paul L. Gray.
U.S. Attorney McSwain Announces Charges Against Two Convicted Felons for Illegal Possession of Firearms Amidst Ongoing Protests in PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Steven Pennycooke, 34, and Shawn Collins, 27, both of Philadelphia, PA, were each charged by criminal complaint with possession of a firearm by a convicted felon. The criminal complaints and arrest warrants against both men were unsealed this morning prior to their initial appearances in federal court.
Following peaceful protests on the afternoon of May 30th in response to the killing of George Floyd in Minneapolis, MN, civil unrest began to unfold in Philadelphia, resulting in widespread rioting, looting, burglary, arson, destruction of property, and other violent acts.
On the night of June 2nd, while a mandatory curfew was in effect, the Philadelphia Police Department received a call regarding two individuals loading an ATM onto a cart on the 4100 block of Viola Street in the Parkside section of West Philadelphia. Officers responded to the scene and observed what appeared to be a safe in the middle of the street. The officers also observed two individuals fitting the description from the original call—Pennycooke and Collins—standing near a vehicle about halfway down the block from the safe.
According to the complaint, Pennycooke removed an object, later confirmed to be a loaded 9mm Hi-Point C9 handgun, from his waistband and discarded it in the rear passenger seat of the vehicle parked nearby. Collins was also found to have a firearm in his waistband, later confirmed to be a loaded 9mm Taurus PT24/7 G2 C handgun. Both Pennycooke and Collins are convicted felons and cannot legally possess firearms. Also according to the complaint, Collins acknowledged to the arresting officer that he did not have a permit to carry a firearm.
“As I made clear last week, my Office is committed to prosecuting anybody who took advantage of the George Floyd protests to try to commit violent acts or otherwise violate federal law. There will be accountability,” said U.S. Attorney McSwain. “In this case, two previously convicted felons are charged with allegedly possessing firearms, which presents a clear danger to the community. We will continue to enforce the rule of law in Philadelphia and throughout the Eastern District of Pennsylvania during this period of unrest – and always.”
“Amid the recent civil unrest in the city sparked by lawless instigators, these two alleged armed felons were found among the looters,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Such criminal acts detract attention from the message of those who choose to peacefully protest. Today's charges demonstrate that the FBI will work swiftly with our law enforcement partners to take individuals who pose a threat to our community off the streets.”
If convicted, the defendants each face a maximum possible sentence of ten years’ imprisonment, followed by three years of supervised release, and a fine of up to $250,000.
The case is being investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Derek E. Hines.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney McSwain and PA Attorney General Shapiro Warn Pennsylvanians of Coronavirus Related Unemployment, Identity Theft ScamsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain and Pennsylvania Attorney General Josh Shapiro issued a warning to Pennsylvanians today to be alert to fraudsters using stolen identities to try to obtain Coronavirus Stimulus Funds.
The Pennsylvania Department of Labor & Industry (DLI) has reported that individuals are filing claims with stolen identities for Pennsylvania Unemployment Assistance (PUA). The PUA Program is administered by the DLI as part of the Federal Stimulus and is intended to benefit workers who have lost their jobs as a result of the coronavirus pandemic. U.S. Attorney McSwain and Attorney General Shapiro announced that federal and state law enforcement will aggressively pursue and prosecute anyone perpetrating this type of fraud.
“Fraud like this causes great harm to many citizens at a time when they are most vulnerable,” said U.S. Attorney McSwain. “It is especially intolerable that criminals are trying to take advantage of an unprecedented public health emergency. My Office and the Pennsylvania Attorney General’s Office will not tolerate it, and we will do everything in our collective power to ensure that such fraud scams are stopped and punished.”
“Scammers are working overtime during this crisis and trying to take advantage of the nearly 1 in 3 Pennsylvanians who have lost a job. We will not let anyone ripoff the public and the millions who are out of work,” said Attorney General Shapiro. “Our offices are using every resource at the state and federal level to figure out who these criminals are and put a stop to this theft. If you get a check you didn’t apply for or a deposit you are questioning, please contact our offices. We need the public’s help to address these crimes.”
According to the DLI, in one version of the fraud, the thieves use stolen identities of employed people to file claims for PUA, but direct that the money be sent to the fraudsters’ own bank accounts. Since discovering this scheme, DLI has taken steps to route PUA funds to the individuals named in the applications in order to prevent the thieves from receiving the stolen funds. As a result, victims of identity theft may only learn that their personal identifying information was stolen when they improperly receive a Pennsylvania unemployment compensation check, or a direct deposit of unemployment benefits, for which they never applied.
If any Pennsylvanian believes they have been a victim of this type of fraud or identity theft, U.S. Attorney McSwain and Attorney General Shapiro provided the following guidance:
- If you receive a paper check for unemployment benefits in the mail but did not file for such benefits in Pennsylvania, do not cash the check.
- Likewise, if you receive a direct deposit for unemployment benefits but did not file for such benefits in Pennsylvania, do not use the funds. The Pennsylvania Department of Labor & Industry website contains detailed instructions for returning the money.
- In addition, it is very important that victims report suspected identity theft to the Pennsylvania Department of Labor & Industry. A form is available on the Department’s website: DLI.PA.GOV. Identity theft and fraud can also be reported to the Department using its Fraud Hotline 1-800-692-7469. This information will be shared with law enforcement to investigate this suspected criminal activity.
The investigations are being handled by the Coronavirus Fraud Working Group, led by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, and including the Office of the Pennsylvania Attorney General, the U.S. Department of Labor Office of Inspector General, the United States Secret Service, the U.S. Postal Inspection Service, the Federal Bureau of Investigation, the Social Security Administration Office of Inspector General, and over a dozen other federal law enforcement agencies.
Ghanaian National Sentenced to over One Year in Prison for Passport FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Robert Owusu, 52, of the Bronx, New York, and a native and citizen of Ghana, was sentenced to one year and one day of imprisonment, and three years of supervised release, by United States District Judge Cynthia M. Rufe, for attempting to fraudulently obtain a United States passport using a false identity.
In 2018, the defendant submitted an application for a United States passport, using the identity of another in an attempt to remain in the United States illegally. While in the country, the defendant has been convicted of numerous offenses, including his most recent federal conviction for drug trafficking for which he served 45 months in prison. Owusu had previously secured a fraudulent United States passport in 1999 and reentered the country with said passport around that time after having been deported to his native Ghana. Now, he is once again facing deportation back to Ghana after he serves his latest federal sentence for passport fraud.
“To state the obvious, those who enter our country illegally are not above the law – nobody is,” said U.S. Attorney McSwain. “By his actions, Owusu has demonstrated a complete lack of respect for our nation’s laws. Not only did he flout our immigration laws and commit passport fraud, but also he committed additional, serious crimes such as drug trafficking while he was here. We will continue to work with our law enforcement partners to uphold the rule of law and ensure our nation’s immigration laws are enforced.”
The case was investigated by the Diplomatic Security Service and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
United States Attorney William M. McSwain Announces his Office’s Efforts to Preserve Integrity of Today’s Primary Elections in Eastern District of PennsylvaniaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Assistant United States Attorney Richard P. Barrett has been appointed to serve as the District Election Officer for the Eastern District of Pennsylvania for today’s primary elections as part of the Department of Justice’s nationwide Election Day Program. In that capacity, AUSA Barrett is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department headquarters in Washington.
The Department of Justice has an important role in deterring ballot fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible ballot fraud and voting rights violations while the polls are open.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their direction. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being impacted by fraud,” said U.S. Attorney McSwain. “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. The Department of Justice will act promptly and aggressively to protect the integrity of the election process, but we need anyone with specific information about voter interference or election fraud to report it immediately to my Office, the FBI, or the Civil Rights Division.”
In order to respond to complaints of ballot fraud or voting rights abuses today, and to ensure that such complaints are directed to the appropriate authorities, AUSA Barrett will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 215-861-8420. In addition, the FBI will have special agents available to receive allegations of ballot fraud and other election abuses today. The local FBI field office can be reached by the public at 215-418-4000.
Complaints about ballot access problems or discrimination can also be made directly to the Civil Rights Division’s Voting Section in Washington at 1-800-253-3931 or 202-307-2767.
Remarks by United States Attorney McSwain on the Aftermath of George Floyd Protests and the Unlawful Rioting in Philadelphia this Past WeekendRead the Press Release
PHILADELPHIA – In the wake of the violence and looting that took place in Philadelphia and surrounding counties over the past weekend, United States Attorney William M. McSwain participated in a press conference today to address the role that the United States Attorney’s Office for the Eastern District of Pennsylvania will play in restoring order and enforcing the rule of law in the District. Other speakers at the press conference were Pat Toomey, United States Senator, Pennsylvania; John McNesby, President, Fraternal Order of Police Lodge #5; Farah Jimenez, President and CEO, Philadelphia Education Fund; Reverend Reginald C. Johnson, Special Assistant to the CEO, People for People, Inc.; and Martina White, Member of the Pennsylvania House of Representatives. Below are U.S. Attorney McSwain’s remarks as prepared for delivery.
*****
Thank you, Senator Toomey.
We are united as a nation in our disgust over what happened to George Floyd. Nobody of good will can watch the video of his encounter with the Minneapolis police and not feel shock and anger. The feeling is universal, among both civilians and law enforcement alike.
Accountability for Mr. Floyd’s death must be addressed, and is being addressed, through our criminal justice system, both at the state and federal levels. That system is working and moving quickly. Initial charges have already been filed. Justice will be served.
The right of the people peaceably to assemble is one of our most cherished Constitutional rights. Many of this weekend’s protestors in Philadelphia exercised that right in a responsible manner. Others did not. Instead, they engaged in senseless violence – rioting, looting, burning.
There is no excuse for that kind of lawlessness. If you engage in that type of criminal behavior under the guise of “protest,” you disgrace the Constitution and you disgrace yourself. And you dishonor the memory of George Floyd.
In the face of extreme provocation this past weekend, with various physical objects and obscenities being hurled at them, the brave men and women of the Philadelphia Police Department did their job, and exercised admirable courage and restraint while doing so. Operating under extremely dangerous conditions, they did their very best to keep the City safe – and I applaud and thank them for that.
But restraint only goes so far. It is time to squarely confront any further violence and stop it in its tracks. Any continued violence, destruction of property and theft endangers the lives and livelihoods of others, and interferes with the rights of peaceful protestors, as well as the rights of all other citizens. It also undercuts the work that needs to be done to address legitimate grievances.
It is the responsibility of state and local leaders to ensure that adequate law enforcement resources are deployed on the streets to reestablish law and order. Federal law enforcement actions will be directed at apprehending and charging the violent agitators who have hijacked peaceful protest and are engaged in violations of federal law.
Some of those violations could include: arson, inciting a riot, engaging in civil disorder, destruction of motor vehicles, destruction of federal property, assaulting a federal officer or federal employee, and various firearms charges.
I implore any protestors in Philadelphia to behave peacefully. I also issue this warning: if you engage in violence and destruction and we have federal jurisdiction over your crime, you will be prosecuted in federal court to the fullest extent of the law. That is a promise.
Despite the looting and violence that we witnessed this weekend, Philadelphia is not a community of criminals. We are a City of honest, hard-working, and law-abiding people. We are members of community organizations, residents raising families, and people who serve the public good in a myriad of ways. On Sunday morning, after a night of destruction, people from all walks of life voluntarily gathered to clean our city streets, washing graffiti off of buildings, picking up debris, and helping store owners board up their broken windows. That is the Philadelphia that we need to come together to protect – one that respects our Constitution and the rule of law – and I am proud to be a part of it. Thank you.
Pennsylvania Man Sentenced to 37 Months in Prison and over $3 Million in Restitution for Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Branden Coluccio, 32, of Doylestown, Pennsylvania, has been sentenced to 37 months in prison for conspiracy to commit health care fraud. As part of his sentence, he was also ordered to pay restitution in the amount of $3,070,157, forfeiture in the amount of $110,000, and an additional $15,000 fine. United States District Judge Wendy Beetlestone presided over the sentencing hearing in Philadelphia via video teleconference. This scheme involved Liberation Way, a drug and alcohol rehabilitation organization that had treatment centers in Yardley, Bala Cynwyd, and Fort Washington, Pennsylvania.
The investigation exposed an array of health care fraud schemes committed by individuals associated with Liberation Way, including an over-billing scheme connected with the facility’s medical director, as well as an elaborate kick-back scheme involving thousands of medically-unnecessary urine tests which were sent to Florida-based laboratories for analysis. Coluccio, a co-founder of Liberation Way, participated in yet another scheme by fraudulently purchasing premium insurance policies for prospective patients on their behalf, which then allowed Liberation Way to bill insurance companies for expensive “treatment” purportedly provided to these patients. Liberation Way represented that the patients were buying and paying for these policies, when in reality Liberation Way was paying the premiums, which is illegal.
“As made clear by today’s sentencing, my Office will not tolerate health care fraud in any form,” said U.S. Attorney McSwain. “Those who think that they can exploit our health care system and take advantage of at-risk patients are criminals and will face the consequences. Coluccio will rightly spend years in prison and pay millions of dollars as the result of his criminal conduct.”
“Coluccio schemed to defraud health care programs by manipulating vulnerable patients,” said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “Instead he will spend years behind bars and restitute millions in stolen money. We will continue to work with our law enforcement partners to protect vital health and human service programs and the individuals they serve.”
“Coluccio used vulnerable patients as pawns in his scheme to defraud insurance plans of millions of dollars,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “He’s now being held to account for his criminal deceptions at Liberation Way, sentenced to several years behind bars. If you steal from our country’s essential healthcare system, know that the FBI, alongside our state and federal partners, is committed to shutting you down and bringing you to justice.”
“Branden Coluccio conspired with others in a health care fraud scheme by unlawfully purchasing premium insurance policies for prospective patients. The scheme allowed Liberation Way, an organization with several drug and alcohol rehabilitation centers, to bill insurance companies for expensive treatment allegedly provided to patients. We will continue to work with our law enforcement officers to protect the integrity of health care benefits,” stated Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“The defendant took advantage of people struggling with addiction to profit off the opioid epidemic ravaging Pennsylvania,” said Pennsylvania Attorney General Josh Shapiro. “Our office is fighting this scourge on all fronts. My thanks to our partners in the U.S. Attorney’s Office, the FBI, and other agencies in Pennsylvania and Florida for their diligence and dedication to this investigation and the punishments we’ve secured for these bad actors.”
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services, the Office of Personnel Management, and the Department of Labor, in conjunction with the Pennsylvania Attorney General’s Office. It is being prosecuted by Assistant United States Attorney Nancy Beam Winter and Special Assistant United States Attorneys Robert Labar and Kristy Christ.
U.S. Attorney William M. McSwain Announces Charges and Guilty Plea of Former Philadelphia Judge of Elections Who Committed Election FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Domenick J. DeMuro, 73, of Philadelphia, PA, a former Judge of Elections for the 39th Ward, 36th Division in South Philadelphia, has been charged and has pled guilty to a two-count Information charging (1) conspiracy to deprive Philadelphia voters of their civil rights by fraudulently stuffing the ballot boxes for specific Democratic candidates in the 2014, 2015, and 2016 primary elections, and (2) a violation of the Travel Act, which forbids the use of any facility in interstate commerce (here, a cell phone) with the intent to promote certain illegal activity (here, bribery). U.S. Attorney McSwain’s video statement providing additional details about this case is available on the Office website here: https://www.justice.gov/usao-edpa/video/united-states-attorney-william-m-mcswain-announces-guilty-plea-former-philadelphia.
The Judge of Elections is an elective office and a paid position. In that role, DeMuro was responsible for overseeing the entire election process and voter activities of his Division. The Judge of Elections is charged with overseeing the Division’s polling place in accordance with federal and state election laws and is required to attend Election Board Training conducted by the Philadelphia City Commissioners.
The voting machines at each polling station, including DeMuro’s station, generate records in the form of a printed receipt documenting the use of each voting machine. The printed receipt, also known as the “results receipt,” shows the vote totals, and the Judge of Elections and other Election Board Officials at each polling place attest to the accuracy of machine results.
During his guilty plea hearing, DeMuro admitted that an unnamed political consultant gave DeMuro directions and paid him money to illegally add votes for certain Democratic candidates. These candidates were individuals running for judicial office whose campaigns had hired the consultant, as well as other candidates for various federal, state, and local elective offices who were preferred by this consultant for a variety of reasons.
The political consultant would solicit monetary payments from his clients in the form of cash or checks as “consulting fees,” and then use portions of these funds to pay Election Board Officials, including DeMuro, in return for tampering with the election results. After receiving payments ranging from between $300 to $5,000 per election from the consultant, DeMuro would add fraudulent votes on the voting machine – also known as “ringing up” votes – for the consultant’s clients and preferred candidates, thereby diluting and distorting the ballots cast by actual voters. DeMuro would add these fraudulent votes to the totals during Election Day, and then would later falsely certify that the voting machine results were accurate.
“DeMuro fraudulently stuffed the ballot box by literally standing in a voting booth and voting over and over, as fast as he could, while he thought the coast was clear. This is utterly reprehensible conduct. The charges announced today do not erase what he did, but they do ensure that he is held to account for those actions,” said U.S. Attorney McSwain. “Voting is the cornerstone of our democracy. If even one vote is fraudulently rung up, the integrity of that election is compromised. I want the public to know that this investigation is active and ongoing, and my Office is taking every possible step that we can to ensure the integrity of the upcoming primary and general elections in the nine counties of the Eastern District of Pennsylvania.”
“This defendant abused his office by engaging in election fraud for profit,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s conviction makes it clear that the Department of Justice will do all in its power to protect the integrity of elections and maintain public confidence in all levels of elected government.”
“Domenick DeMuro put a thumb on the scale for certain candidates, in exchange for bribes,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “As public trust in the electoral process is vital, the FBI’s message today is clear: election interference of any kind, by hostile foreign actors or dishonest local officials, won’t be tolerated. This is an active, ongoing investigation and we're asking anyone with information on election fraud to contact the FBI.”
“The citizenry of the City of Philadelphia, as well as this Commonwealth and these United States, needs to be confident in the integrity of our elections,” said Captain Leo Hannon, Director of the Pennsylvania State Police, Special Investigations Division. As this investigation clearly illustrates, the Pennsylvania State Police will relentlessly pursue any breach of the sacred trust bestowed upon our public officials. Our agency is proud to partner with the Federal Bureau of Investigation, the United States Attorney’s Office, and the United States Department of Justice as a whole to root out corruption at any level of our government. Matters of public corruption and public integrity have been, and shall remain, a top priority of the Pennsylvania State Police.”
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorney Eric L. Gibson and Richard C. Pilger, U.S. Department of Justice, Director of Elections Crimes Branch, Criminal Division, Public Integrity Section.
Remarks by United States Attorney William M. McSwain Regarding Charges and Guilty Plea of Former Philadelphia Judge of Elections Who Committed Election FraudRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain released a video on May 21, 2020, in which he discussed the charging and guilty plea of former Philadelphia Judge of Elections Domenick J. DeMuro. Below are U.S. Attorney McSwain’s remarks, as prepared for delivery.
*****
Good morning. I am here to announce that the U.S. Attorney’s Office has unsealed criminal charges against Domenick J. DeMuro, a former Judge of Elections for the 39th Ward, 36th Division in South Philadelphia. DeMuro has been charged with two counts: first, for conspiring to deprive Philadelphia voters of their civil rights by fraudulently stuffing the ballot boxes for specific Democratic candidates in the 2014, 2015, and 2016 primary elections; and second, for a violation of the Travel Act, which forbids the use of any facility in interstate commerce (here, a cell phone) with the intent to promote certain illegal activity (here, bribery). DeMuro has pled guilty to both of these charges.
This prosecution has been a team effort, and before I get into a more detailed description of what happened in this case, there are several people that I want to recognize and thank. First, from the FBI, Mike Driscoll, who is the Special Agent in Charge of the FBI’s Philadelphia Field Office, as well as Special Agent Carmen DiMario, who is the lead investigator on the case. I want to thank the Public Integrity Section at the U.S. Department of Justice in Washington, and specifically Section Chief Corey Amundson, Deputy Chief John Keller, and the Director of the Election Crimes Branch of the Section, Richard Pilger. I also want to thank Assistant U.S. Attorney Richard Barrett, who is the Chief of our Public Corruption Unit at the U.S. Attorney’s Office, and Assistant U.S. Attorney Eric Gibson, who is the lead prosecutor on the case. And finally, I would like to thank the Pennsylvania State Police for their assistance in this investigation.
The position that DeMuro held, the Judge of Elections, is an elective office and a paid position. The Judge of Elections is responsible for overseeing the entire election process and voter activities of his or her Division. Each Judge of Elections is charged with overseeing the Division’s polling place in accordance with federal and state election laws, and is required to attend Election Board Training conducted by the Philadelphia City Commissioners.
The voting machines at each polling station, including the 39th Ward, 36th Division, generate records in the form of a printed receipt documenting the use of each voting machine. The printed receipt, also known as the “results receipt,” shows the vote totals, among other information. The Judge of Elections and the Election Board Officials at each polling place attest to the accuracy of machine results by affixing their signatures to the last page of the results receipt.
Our election system relies on the honesty and the integrity of its Election Officials. If they are corrupt, the system is corrupt, which creates opportunities for election fraud and for the counting of fake votes.
Domenick DeMuro did not uphold his duties as an Election Official. A political consultant gave DeMuro directions and paid him money to illegally add votes for certain Democratic candidates on the primary ballots in 2014, 2015, and 2016. These candidates were individuals running for judicial office whose campaigns had hired the consultant, as well as other candidates for various federal, state, and local elective offices who were preferred by this consultant for a variety of reasons.
The political consultant would allegedly solicit monetary payments from his clients in the form of cash or checks as “consulting fees.” The consultant would then take portions of these funds and make payments to Election Board Officials, including DeMuro, in return for DeMuro and other Election Board officials tampering with the election results.
After receiving payments ranging from between $300 to $5,000 per election from the consultant, DeMuro would add fraudulent votes on the voting machine – also known as “ringing up” votes – for the consultant’s clients and preferred candidates, thereby diluting and distorting the ballots cast by actual voters. DeMuro would add these fraudulent votes to the totals during Election Day, and then would later falsely certify that the voting machine results were accurate. He would add the fraudulent votes by literally standing in the voting booth and voting over and over, as fast as he could, when he thought the coast was clear.
In May 2014, DeMuro stuffed the ballot box with 27 fraudulent ballots during the primary election. In May 2015, DeMuro padded the ballot box with 40 fraudulent votes; in 2016, it was 46 fraudulent votes. These numbers may sound relatively small, but they made up a significant percentage of the total votes cast at the polling place. In 2014, 118 total ballots were reported in the 36th Division of the 39th Ward. That means that DeMuro’s fraudulent votes accounted for over 22% of the total voting in that Division in 2014. In 2015, his fraud accounted for over 15% of the votes in the Division; in 2016, his fraud accounted for over 17% of the votes.
But at the end of the day, the specific numbers don’t really matter. Voting is the cornerstone of our democracy. If only one vote has been illegally rung up or fraudulently stuffed into a ballot box, the integrity of that election is undermined. Again, the integrity of our elections depends on the honesty of our Election Officials – so we take any dishonesty by those officials very seriously. And I want to make it clear that this is an ongoing and active investigation.
I also want the public to know that my Office is taking every possible step that we can to ensure the integrity of every primary and general election in the Eastern District of Pennsylvania in 2020. For example, earlier this year, I announced that our Office has launched a review of all polling places in the Eastern District to determine if they are in compliance with the Americans with Disabilities Act. As this year marks the 30th anniversary of the ADA, there can be no doubt that counties have had more than enough time to ensure that their polling places provide full access to individuals with disabilities. We will work day and night to make sure that every citizen’s civil rights are protected, whether that is through access to the polls or making every legitimate vote count.
If you tamper with anyone’s right to vote or try to fix the results of any election in the Eastern District of Pennsylvania, my Office will hold you accountable. If you are an Election Official or work with the polling places in any way, I urge you to do your job honestly and faithfully at every turn. That is what the public deserves, it is what democracy demands, and it is what my Office will enforce.
Former Philadelphia Judge of Elections Convicted of Conspiring to Violate Civil Rights and BriberyRead the Press Release
A former Judge of Elections has been convicted for his role in accepting bribes to cast fraudulent ballots and certifying false voting results during the 2014, 2015, and 2016 primary elections in Philadelphia.
Domenick J. Demuro, 73, of Philadelphia, Pennsylvania, pleaded guilty during a sealed proceeding on March 16, 2020, before U.S. District Judge Paul S. Diamond to conspiring to deprive persons of civil rights, and using interstate facilities in aid of bribery. The court unsealed the matter today. Sentencing is scheduled for June 30, 2020.
During his guilty plea hearing, Demuro admitted that while serving as an elected municipal Judge of Elections, he accepted bribes in the form of money and other things of value in exchange for adding ballots to increase the vote totals for certain candidates on the voting machines in his jurisdiction and for certifying tallies of all the ballots, including the fraudulent ballots. Demuro further admitted that a local political consultant gave him directions and paid him money to add votes for candidates supported by the consultant, including candidates for judicial office whose campaigns actually hired the consultant, and other candidates for various federal, state and local elective offices preferred by that consultant for a variety of reasons. Demuro also admitted that the votes he added in exchange for payments by the political consultant increased the number of votes fraudulently recorded and tallied for the consultant’s clients and preferred candidates, thereby diluting the ballots cast by actual voters.
“This defendant abused his office by engaging in election fraud for profit,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s conviction makes it clear that the Department of Justice will do all in its power to protect the integrity of elections and maintain public confidence in all levels of elected government.”
“Demuro fraudulently stuffed the ballot box by literally standing in a voting booth and voting over and over, as fast as he could, while he thought the coast was clear. This is utterly reprehensible conduct. The charges announced today do not erase what he did, but they do ensure that he is held to account for those actions,” said U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania. “Voting is the cornerstone of our democracy. If even one vote is fraudulently rung up, the integrity of that election is compromised. I want the public to know that this investigation is active and ongoing, and my Office is taking every possible step that we can to ensure the integrity of the upcoming primary and general elections in the nine counties of the Eastern District of Pennsylvania.”
“Domenick Demuro put a thumb on the scale for certain candidates, in exchange for bribes,” said Special Agent in Charge Michael J. Driscoll of the FBI’s Philadelphia Division. “As public trust in the electoral process is vital, the FBI’s message today is clear: election interference of any kind, by hostile foreign actors or dishonest local officials, won’t be tolerated. This is an active, ongoing investigation and we're asking anyone with information on election fraud to contact the FBI.”
“The citizenry of the City of Philadelphia, as well as this Commonwealth and these United States, needs to be confident in the integrity of our elections,” said Captain Leo Hannon, Director of the Pennsylvania State Police, Special Investigations Division. “As this investigation clearly illustrates, the Pennsylvania State Police will relentlessly pursue any breach of the sacred trust bestowed upon our public officials. Our agency is proud to partner with the Federal Bureau of Investigation, the United States Attorney’s Office, and the United States Department of Justice as a whole to root out corruption at any level of our government. Matters of public corruption and public integrity have been, and shall remain, a top priority of the Pennsylvania State Police.”
The FBI and the Pennsylvania State Police investigated the matter. Richard C. Pilger, Director of the Election Crimes Branch in the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Eric L. Gibson of the Eastern District of Pennsylvania are handling the prosecution.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Fugitive Who Fled to Cambodia Pleads Guilty to Conspiracy to Commit ArsonRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Jason Gusoff, 44, of Richboro, Pennsylvania entered a plea of guilty to one count of conspiracy to commit arson. United States District Judge C. Darnell Jones II presided over the guilty plea hearing in Philadelphia via video teleconference.
The defendant purchased his business, California Tanning Salon, in November 2007. For the approximately nine months that the defendant owned and operated the business, it was never profitable. The business expenses exceeded the revenue generated, and Gusoff could not make the required lease payments. On July 21, 2008, Gusoff directed his co-conspirator to set fire to the business with the intent to destroy it. After the fire, Gusoff submitted requests for payment to the business’ insurance company while making materially false representations that he was not responsible for the loss caused by the fire. These lies resulted in the defendant receiving $105,486 from the insurance company.
A federal grand jury returned an Indictment against Gusoff in February 2011. Prior to his scheduled trial in September 2011, Gusoff fled the United States using his brother’s passport. In February 2019, due to the coordinated efforts of the United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Cambodian Police, the defendant was arrested in Cambodia and returned to the Eastern District of Pennsylvania to answer for his crimes. The co-conspirator, who was severely burned while committing the arson and hospitalized as a result, pled guilty in 2011 and has since served his sentence.
“Gusoff has a brazen disrespect for the law – and for human life. He is lucky that no one died during this fire,” said U.S. Attorney McSwain. “He put people’s safety at risk, stole insurance money, and when faced with the consequences of his actions, fled the country. If you are charged in the Eastern District of Pennsylvania with a federal offense, it does not matter if you flee to the other side of the world. We will find you and hold you accountable for your actions.”
“Acts of arson are dangerous crimes and threaten the community. ATF is committed to keeping the public safe from those who maliciously set these fires,” said Donald Robinson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Philadelphia Field Division. “We appreciate the assistance of our federal and international partners in getting the defendant back to the States to face these charges, and the dedication and tenacity of our personnel in the Arson and Explosives Task Force.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant U.S. Attorney Jeanine Linehan, the Deputy Chief of the Violent Crime Unit of the U.S. Attorney’s Office.
Hatboro Man Pleads Guilty to Sexually Exploiting an InfantRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jerry Zweitzig, 71, of Hatboro, Pennsylvania, has pleaded guilty to charges of manufacturing and attempted manufacturing of child pornography. These charges arose from the defendant’s sexual abuse of an infant and his videotaping of that abuse.
Investigators found the video of the infant, which was created in 2010, while preparing for Zweitzig’s sentencing hearing in a separate child exploitation case filed by this Office. In that previous case, Zweitzig was charged in May 2019 with five counts of manufacturing and attempted manufacturing of child pornography and one count of possession of child pornography. Those charges arose from the defendant’s sexual exploitation of a different child over a period of years, his photographing and videotaping of his sexual abuse of that child, and his extensive collection of child pornography involving thousands of other children. Zweitzig pleaded guilty to all of those counts in October 2019.
On June 16, 2020, the defendant is scheduled to be sentenced on both cases by United States District Court Judge Wendy Beetlestone. He faces a maximum possible sentence of 200 years’ imprisonment, a mandatory minimum term of 15 years, between five years and a lifetime of supervised release, a $1,750,000 fine, mandatory restitution, and a $700 special assessment.
“Sexual exploitation of a minor of any age, let alone an infant, is utterly reprehensible and will be met with swift justice,” said U.S. Attorney McSwain. “Because of the excellent forensic work by our partners at Homeland Security Investigations, we uncovered this additional crime, ensuring that the defendant will now be held accountable for his actions. Working with all of our law enforcement partners, my Office will continue to identify and punish sexual predators to protect our children and our communities.”
“Homeland Security Investigations (HSI) is committed to protecting the children and youth of our communities who are most vulnerable to online predators,” said Brian A. Michael, Special Agent in Charge for HSI Philadelphia. “When a criminal places a record of that abuse online or in other public forums, the abuse continues and can resurface throughout the victim’s life. HSI and our law enforcement partners are committed to finding, and bringing to justice, those who exploit 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 Department of Homeland Security, Homeland Security Investigations, the Horsham Police Department, and the Montgomery County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Eric L. Gibson.
Philadelphia Food Distributor Admits that It Sold Uninspected and Misbranded Meat and Poultry and Agrees to Consent DecreeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that United States District Court Judge Joshua D. Wolson approved a Consent Decree between the United States and Philadelphia food distributor Kawa Trading, Inc. (“Kawa”). On April 7, 2020, the United States filed a lawsuit to stop Kawa, and its president Chui Xun Liu (“Liu”), from continuing to violate federal meat and poultry food safety laws. The Complaint alleged that Kawa received and sold multiple unlabeled and uninspected cases of poultry products in December 2017 and January 2018. It further alleged that Kawa had a long history of violating the Poultry Products Inspection Act (“PPIA”) and the Federal Meat Inspection Act (“FMIA”), with violations dating back to 2013.
The defendants admitted to violating the PPIA and FMIA as alleged in the Complaint. The Consent Decree resolves all of these claims, provides for a permanent injunction enjoining Kawa and Liu from committing future violations, and calls for monetary penalties and other appropriate relief in the event of future violations.
The Food Safety and Inspection Service (“FSIS”) of the United States Department of Agriculture (“USDA”), is responsible for ensuring that meat and poultry products in commerce are wholesome, not adulterated, and properly marked, labeled, and packaged. The PPIA and FMIA are laws that prohibit companies and individuals from selling, transporting, offering for sale or transportation, or receiving for transportation, misbranded or uninspected poultry and meat that is capable of use as human food.
“Food safety is a key public health concern, especially now during the coronavirus pandemic,” said U.S. Attorney McSwain. “The Consent Decree in this case is an important step to ensure that food distributors like Kawa abide by all regulatory requirements that are designed to protect our food supply. My Office will continue to work with the USDA to enforce our nation’s food safety laws and protect consumers.”
“FSIS’s authority to enforce the FMIA and the PPIA is clear,” said FSIS Administrator Paul Kiecker. “Our inspectors and investigators are hard at work every day ensuring that the public has access to safe, wholesome, and accurately labeled food and, when necessary, we will take swift action to protect American consumers.”
The action is captioned United States of America v. Kawa Trading, Inc. and Chui Xun Liu, EDPA No. 20-1826.
The United States Attorney’s Office received valuable assistance from two divisions of the FSIS Office of Investigation, Enforcement, and Audit: the Compliance and Investigations Division, Northeast Region and the Enforcement and Litigation Division. Assistant United States Attorney Stacey L. B. Smith handled the civil matter, with assistance from USDA Office of the General Counsel Trial Attorney Tracy McGowan.
Allentown Man Arrested for Distribution of Child Pornography and Weapons ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Kelly Wayne Smith, 59, of Allentown, Pennsylvania, was arrested and charged by Criminal Complaint with knowingly distributing, and attempting to distribute, child pornography, as well as illegal possession of a firearm by a prohibited person. At Smith’s initial appearance, United States Magistrate Judge Henry S. Perkin ordered Smith detained until trial.
In October 2019, a social networking platform reported to the National Center for Missing and Exploited Children (“NCMEC”) Cyber Tipline that several images depicting child pornography had been uploaded to an account registered to Smith. In May 2020, a search warrant was executed at Smith’s residence and authorities found several photos depicting child pornography, including one that was reported to the NCMEC. Authorities also seized a handgun during the search.
If convicted, the defendant faces a maximum possible sentence of 50 years in prison, with a mandatory minimum term of 15 years.
“Adults should be protecting children from harm, not exploiting them for their own twisted gratification,” said U.S. Attorney McSwain. “Each time somebody distributes images that depict a child being exploited, that child is re-victimized all over again. My Office is committed to rooting out and punishing the online exploitation of children and we will continue to work tirelessly with our law enforcement partners to do just that.”
“Distribution of child pornography is a heinous act that perpetuates the sexual exploitation of children,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “The FBI stands ready to step in and work with our law enforcement partners to protect our children from such victimization.”
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 Allentown Police Department, and it is being prosecuted by Assistant United States Attorney Sherri Stephan.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Arrested and Charged with Assaulting Federal Protective Service Security OfficersRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that William K. Washington, 65, of Philadelphia, Pennsylvania, was arrested and charged by Criminal Complaint with assaulting and resisting two federal officers, a Class D felony. The Complaint alleges that Washington assaulted two Department of Homeland Security, Federal Protective Service (FPS) security officers at a Social Security Administration (SSA) office in Philadelphia on May 8, 2020. The defendant appeared today via video teleconference before United States Magistrate Judge Linda K. Caracappa for his initial appearance and arraignment.
The Complaint alleges that Washington forced his way inside the SSA office at 701 East Chelten Avenue, after he was told by a FPS security officer that the office was closed to the public because of the coronavirus pandemic. Washington refused to leave even after he was ordered to do so; he then resisted as the officers physically removed him from the premises. The Complaint further alleges that Washington punched one of the officers multiple times and injured both officers during the encounter.
“The defendant allegedly barged into a closed federal office, refused to listen to repeated instructions to leave, and then escalated the encounter to the point that he injured two federal security officers who were simply doing their job,” said U.S. Attorney McSwain. “Such behavior is intolerable and my Office will always take swift action to hold accountable anybody who assaults officers who protect and serve the public on federal property.”
If convicted, the defendant faces a maximum possible sentence of eight years in prison.
The case was investigated by the Federal Protective Service and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Attorney William M. McSwain Honors Law Enforcement During National Police WeekRead the Press Release
PHILADELPHIA – In honor of National Police Week, United States Attorney William M. McSwain recognizes and celebrates the service and sacrifice of federal, state, local, and tribal law enforcement. The week will be observed Sunday, May 10 through Saturday, May 16, 2020.
“There is no more noble profession than serving as a police officer,” said U.S. Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”
“Police officers work tirelessly to keep our communities safe. This week – and every week – they deserve our support, recognition, and gratitude for the sacrifices they make to protect us,” said U.S. Attorney McSwain. “In a time filled with uncertainty, police are more important than ever. And of course they are stepping up and providing us with outstanding service when we need it most.”
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 coronavirus pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they have sworn to serve.
Based on FBI data, 89 law enforcement officers died nationwide in the line of duty in 2019. Thus far in 2020, 20 law enforcement officers nationwide have been reported feloniously killed.
In the Eastern District of Pennsylvania, no officers were killed in 2019. All of America watched, however, as Maurice Hill shot six Philadelphia Police Officers during a seven-and-a-half-hour standoff in August 2019 in North Philadelphia. Miraculously, all six officers survived. Hill is currently in custody, pending trial. And in March 2020, Philadelphia Police Officer James O'Connor, 46, was murdered while serving a warrant in the Frankford section of Philadelphia. A 23-year veteran of the Philadelphia Police Department, Corporal O’Connor was posthumously promoted to Sergeant. Hassan Elliott and others are currently in custody and charged with the murder.
Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.
The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of the coronavirus, the vigil will be livestreamed to the public at 8:00 pm (EDT). The online event can be viewed at https://www.youtube.com/user/TheNLEOMF.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
Physician to Pay $50,000 and Permanently Cease Prescribing Opioids to Resolve Allegations of Improperly Prescribing OxycodoneRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Dr. Eric Heffelfinger, a pulmonologist who previously practiced in Ridley Park, Pennsylvania, will pay $50,000 and permanently lose his ability to prescribe opioids to resolve allegations that he improperly prescribed oxycodone and split the pills with a patient for his own personal use.
The settlement resolves allegations that between February 2014 and August 2016, Heffelfinger, who had a registration with the Drug Enforcement Administration to prescribe controlled substances, prescribed oxycodone to one patient on several occasions at least partially for the purpose of using some of the pills himself. The United States contends that such prescriptions were not written for a legitimate medical purpose and in the usual course of professional practice and were therefore illegal.
Heffelfinger has agreed to pay $50,000 to resolve the allegations. The settlement also permanently prevents Heffelfinger, as a physician, from ever purchasing, prescribing, distributing, or dispensing opioid controlled substances in the future and imposes a number of other accountability measures through an administrative agreement with the Drug Enforcement Administration.
“An important component of our strategy to combat the opioid epidemic is always to hold healthcare providers accountable if they abuse their prescribing privileges,” said U.S. Attorney McSwain. “We will use every tool at our disposal, including civil penalties and permanent revocation of opioid prescribing, to hold providers accountable and prevent abuse.”
“Healthcare providers who have the privilege to prescribe controlled substances must understand that misusing that privilege will have serious consequences,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Field Division. “We will continue to work together with the U.S. Attorney’s Office to identify all healthcare providers who violate the law and hold them responsible.”
This investigation was conducted with the Drug Enforcement Administration’s Philadelphia Field Division and the Federal Bureau of Investigation. For the United States Attorney’s Office, Assistant United States Attorney Anthony D. Scicchitano handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Allentown Man Arrested for Manufacturing Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Luis Perez-Rodriguez, 31, of Allentown, PA, has been arrested and charged with one count of manufacturing child pornography after a search warrant was executed at his home. United States Magistrate Judge Henry S. Perkin presided over a detention hearing in Allentown via video teleconference today, and ordered that the defendant remain in custody pending trial.
The charge stems from the defendant’s alleged sexual abuse of a minor child, filming that abuse, and sending a video of the abuse to other users on the messenger app Kik. The defendant allegedly used the username “LuNTiph” to distribute the video to a Kik group that, unfortunately for the defendant, included an undercover FBI agent.
“My Office is steadfast in its commitment to keeping our children safe from harm,” said U.S. Attorney McSwain. “Those who break the law will be swiftly prosecuted – pandemic or not – and held responsible for their actions, especially when targeting the most vulnerable members of our society. And I want to thank the FBI for its excellent, proactive work on this investigation.”
“There are few situations more urgent than when a child is physically at risk,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Those who sexually exploit children do serious lasting harm, and the manufacture and trade of child pornography cruelly perpetuates this damage. The FBI is committed to finding such predators, locking them up, and ensuring those they've victimized are safe and well-supported.”
If convicted, Perez-Rodriguez faces a statutory maximum sentence of 30 years’ incarceration, a lifetime of supervised release, a $250,000 fine, and a $5,100 special assessment. He also faces a 15-year mandatory minimum sentence of imprisonment.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Brittany Jones.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Michigan Man Charged with Manufacturing Child Pornography after Allegedly Travelling to Pennsylvania to Sexually Assault a MinorRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Mark Allen Hillis, age 57, of Southgate, Michigan, has been arrested and charged with one count of manufacture of child pornography, attempted manufacture of child pornography, and willfully causing the manufacture of child pornography, stemming from his text communications with a 13 year-old girl on Christmas Day 2019.
As alleged in the Criminal Complaint, Hillis (also known as “Daddy” and “Denverpolice#666”), met the minor through social media and then directed her to produce and send him graphic images of child pornography via text messages. Thereafter, Hillis allegedly traveled to Pennsylvania and sexually assaulted the minor in a hotel room, after convincing her to meet up with him at a pizzeria in the middle of the night. In addition to the federal child pornography charges, Hillis faces state charges related to the alleged sexual assault in Montgomery County.
“As alleged in the Criminal Complaint, the defendant’s conduct is abhorrent: manipulating a child into sending him graphic images and then luring her from home in the middle of the night in order to commit a sexual assault to satisfy his twisted desires,” said U.S. Attorney McSwain. “Protecting children and seeking justice for those who are victims of sexual exploitation is one of my Office’s highest priorities and we will always aggressively investigate and prosecute cases such as this.”
“This arrest demonstrates the great lengths that dangerous child predators will go through to victimize our most vulnerable,” said Brian A. Michael, Special Agent in Charge for HSI Philadelphia. “Homeland Security Investigations and our law enforcement partners will always prioritize bringing dangerous child predators to justice.”
If convicted, Hillis faces a statutory maximum sentence of 30 years’ imprisonment, with a mandatory minimum term of 15 years’ imprisonment, a mandatory minimum term of 5 years’ supervised release, and a fine up to $250,000.
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 investigation is being conducted by Homeland Security Investigations, a component of the Department of Homeland Security, and the Limerick Township Police Department, in conjunction with the Montgomery County Detectives Bureau. It 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.
United States Attorney William M. McSwain Announces Increased Efforts to Combat Sexual Harassment in Housing during Coronavirus PandemicRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that his Office is reaffirming its commitment under the Fair Housing Act to combat sexual harassment in housing. The Office is planning to hold virtual roundtables with local community organizations and encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to share the information or file a complaint.
The U.S. Department of Justice enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. The Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing.
Launched in 2017, the initiative has filed lawsuits across the country alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department may be able to help.
The virtual roundtables taking place in the Eastern District of Pennsylvania will bring together community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters, and transitional housing providers to share information about, and best practices for, detecting and reporting sexual harassment in housing. These organizations can identify the misconduct and encourage victims to report sexual harassment to the Department’s Civil Rights Division and the U.S. Attorney’s Office. Local police departments or legal aid offices may also be able to help victims if the behavior is a crime or if there is an imminent eviction.
Recently, the coronavirus public health crisis has left many citizens in the Eastern District of Pennsylvania out of work, furloughed, or otherwise in dire financial straits. This situation has led many tenants to seek postponements of rent or other accommodations at this time. Although many landlords and housing providers will be understanding during this difficult period, others may seek to exploit the financially vulnerable through demands for sexual favors and other acts of unwelcome sexual misconduct. The Department has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Through these roundtables, the U.S. Attorney’s Office seeks to prevent such illegal conduct from occurring and to detect and punish it if it does occur.
“Sexual harassment in housing is illegal and will not be tolerated at any time, but this behavior is especially despicable amidst a global pandemic when so many workers are sidelined and vulnerable,” stated U.S. Attorney McSwain. “Our Office is dedicated to uncovering such violations where they exist and to enforcing the law, particularly during a time of crisis like the one our country is experiencing now.”
“The Fair Housing Act authorizes the U.S. Department of Justice to take swift action against anyone who sexually harasses tenants, said Eric Dreiband, Assistant Attorney General for Civil Rights. “Landlords, property owners, and others who prey on vulnerable tenants during the COVID-19 pandemic should be on notice. We will bring the full resources of the United States Department of Justice to fight against sexual harassment in housing. We will defend the right of tenants and their families to leave peacefully and securely in their homes without the added stress, pain, fear, and turmoil of dealing with sexual predators.”
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected]. Citizens in the Eastern District of Pennsylvania who believe they may have been victims of discrimination may also contact the U.S. Attorney’s Office for the Eastern District of Pennsylvania at 215-861-8200, or 615 Chestnut Street, Suite 1250, Philadelphia, PA 19106, ATTN: Jacqueline C. Romero, Civil Rights Coordinator.
Massachusetts Man Charged with Orchestrating Ponzi Scheme, Defrauding Clients of More than $10 MillionRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Lee D. Weiss, 51, of Newton, Massachusetts, was charged by Information with six counts of wire fraud and two counts of mail fraud. The charges stem from Weiss’s multi-year investment scam that targeted his own clients and caused investor losses of more than $10 million.
The Information alleges that Weiss, the principal of Family Endowment Partners, LP, an investment adviser registered with the U.S. Securities and Exchange Commission, fleeced his own clients of millions of dollars through purported investments in a now defunct Florida tobacco company and a series of private securities offerings. Weiss allegedly told his clients that their money would be used for investment purposes when, in fact, he diverted it to make Ponzi payments and to fund his lifestyle. Weiss then told his clients that they were making money when their funds had already been misappropriated. As alleged, he continued to lie to them about the value of their investments to prevent them from learning of his thefts and to convince them to continue paying him fees for “managing” their money. Weiss allegedly defrauded his investors of millions of dollars. He misspent his clients’ investment funds on himself, payments to prior investors, and to prop up his other unrelated businesses.
“Honesty, integrity, and trust all play a critical role in the relationship between a financial advisor and a client, and any advisor who deliberately betrays their clients’ trust for their own financial gain turns the system on its head,” said U.S. Attorney McSwain. “The damage done by such corrupt financial advisors can be catastrophic. We will continue to hold those who commit crimes like the ones alleged here accountable for their misdeeds.”
“Lee Weiss lived lavishly on his clients’ money, funds they’d expected him to invest responsibly,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “For years, he misrepresented his actions, leading to millions and millions in losses as he worked to keep his Ponzi scheme afloat. Simply stated, this case is about greed and the serious abuse of trust. The FBI is determined to hold accountable financial fraudsters like this, to find a measure of justice for their victims and prevent anyone else from being fleeced.”
“The Postal Inspection has a long history investigating investment frauds as the fraudsters often rely upon the mail to execute their schemes,” said Inspector Wood. “The defendant, Lee Weiss, took advantage of clients who trusted him to manage their wealth in what he promised were safe, blue chip investment strategies. Through a web of corporate entities, Mr. Weiss hid the reality of his investment strategy and took his client’s money to cover his own losses. Thanks to hard work of our Inspectors, the agents of the FBI, and prosecutors at the United States Attorney’s Office, Mr. Weiss is being held accountable for his deceitful practices.”
If convicted, the defendant faces a maximum possible sentence of 160 years’ imprisonment, a $2 million fine, 3 years’ supervised release, an $800 special assessment, mandatory restitution, and forfeiture.
The case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service, and is being prosecuted by Assistant United States Attorneys Paul Shapiro and Michael J. Rinaldi. The U.S. Attorney’s Office appreciates the substantial assistance of the U.S. Securities and Exchange Commission in this matter.
An Indictment, Information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Pleads Guilty to Threatening Both a Lehigh County Solicitor and a Private AttorneyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Samuel Meeker, 38, of Philadelphia, PA, pleaded guilty today to two counts of interstate communication of threats against two individuals: a Lehigh County public official and a private attorney. United States District Judge Jeffrey L. Schmehl presided over the guilty plea hearing in Reading via video teleconference.
On August 9, 2019, the defendant left a threatening telephone voice message for a Lehigh County Solicitor using the Lehigh County Law Department’s internet voicemail system. The defendant threatened physical force against the victim and communicated his desire that the entire County of Lehigh be destroyed and wiped from the map.
Two days later, on August 11, 2019, the defendant left a telephone voice message for a private lawyer, who was the personal and estate attorney for the defendant’s father. The defendant threatened force against the lawyer and all other partners in the lawyer’s law firm, stating that the defendant would destroy them.
“Specific threats of violence like the ones made here must be taken very seriously and deserve an immediate response from law enforcement,” said U.S. Attorney McSwain. “Meeker made vile threats against multiple innocent people, including a public servant. I am thankful to the FBI for their swift handling of this potentially explosive situation.”
“You can't just call and threaten people with violent physical harm and not face repercussions,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “The FBI and our law enforcement partners have to take you at your word and intervene, because protecting human life is our absolute priority. Samuel Meeker is being held appropriately accountable for his actions.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Kishan Nair.
United States Attorney William M. McSwain Provides Information about Current Community ResourcesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain released a compilation of government and legal resources today that are available to the Philadelphia community during the coronavirus pandemic. This list includes updated information for legal services organizations, as well as other resources provided by both the state and federal government.
“My Office is committed to providing our District with up-to-date information to help the community through this unprecedented time,” said U.S. Attorney McSwain. “We have all been forced to adjust to major changes in our daily lives, and we hope that these legal and governmental resources can make that process a little easier for many.”
The below information is available and accurate as of April 24, 2020.
Legal Resources
The following organizations are dedicated to providing free legal assistance to members of the Philadelphia community regarding civil issues. This includes, but is not limited to, homeownership, unemployment, healthcare, and family advocacy. None of the following organizations is affiliated with the Department of Justice. For more detailed information on a specific organization, please visit the website listed below.
Community Legal Services (CLS) (www.clsphila.org)
- Walk-in Intakes: CLOSED until further notice.
- Telephone Intakes: OPEN. For all CLS Units, call (215) 981-3700 and press the option for the relevant issue (for example, to reach the Employment Unit, Press 7).
Philadelphia Legal Assistance (www.philalegal.org)
- Walk-in intakes CLOSED until April 30, 2020.
- Telephone and Online Intakes: OPEN.
- Telephone Intake: (215) 981-3800 (Monday-Thursday: 9:30 a.m. to noon)
- Family Law Intake: (215) 981-3838 (Monday-Thursday: 9:30 a.m. to noon)
- Unemployment Compensation Application Service Hotline: (215) 999-6910 (Monday: 9 a.m. to 1 p.m.; Tuesday: 1 p.m. to 5 p.m.;
Wednesday & Thursday: 3 p.m. to 7 p.m.; Friday: 10 a.m. to 2 p.m.)
SeniorLAW Center (www.seniorlawcenter.org)- Walk-in Intakes: CLOSED until further notice.
- Telephone Intakes: OPEN.
- Philadelphia: (215) 988-1242
- Bucks/Montgomery: (610) 910-0210
- Delaware/Chester: (610) 910-0215
- Statewide: 1 (877) 727-7529
Philadelphia Lawyers for Social Equity (PLSE) (www.plsephilly.org)- PLSE is in the process of continuing its operations remotely. For the most current information, please email [email protected] or call (267) 519-5323.
Other Government Resources
This list contains updates on city government services, state and federal courts, and some federal government departments. For more detailed information on a specific organization, please visit the website listed below.
City of Philadelphia (www.phila.gov)
- All Philadelphia city government buildings are CLOSED to the public.
- Information regarding access to city services can be found here.
- There is no scheduled interruption to trash services. Starting April 6, 2020, recycling will be collected every other week.
- Philadelphia Free Libraries are CLOSED, but the public can access online resources here.
- PennDOT Centers: All PennDOT Driver’s License and Photo License Centers are CLOSED until further notice. License expirations are extended to May 31, 2020. For more information, please visit www.penndot.gov.
- PA Turnpike: Cash payments are temporarily suspended.
- SEPTA: Bus, subway, and regional rail services are limited. Information on schedules and open routes, can be found here.
- Parks & Recreation: Philadelphia Parks & Recreation buildings, playgrounds, athletic courts, and restrooms are CLOSED. This includes all rec centers, older adult centers, environmental centers, ice rinks, and the Organic Recycling Center. Some older adult centers are open to provide food. Please find that information here.
Social Security Administration (www.ssa.gov/onlineservices/)
- All Social Security Administration offices are CLOSED until further notice.
- All online and phone services are still available. Please call 1 (800) 772-1213 or visit the website for online services. Hours for online services are the following: Weekdays: 5 a.m. to 1 a.m.; Saturday: 5 a.m. to 11 p.m.; Sunday: 8 a.m. to 11:30 p.m.
IRS (www.irs.gov)
- The income tax filing deadline has been EXTENDED until July 15, 2020.
United States District Court for the Eastern District of Pennsylvania
- Physical access to federal courthouses in the Eastern District of Pennsylvania is RESTRICTED, although certain proceedings are still taking place.
- All orders from the United States District Court for the Eastern District of Pennsylvania concerning the coronavirus pandemic can be found here.
United States Bureau of Prisons (BOP) (www.bop.gov)
- The United States Bureau of Prisons has suspended all social and legal in-person visitation.
- For more information on the BOP’s modified operations during the pandemic, please visit their coronavirus overview page found here.
First Judicial District of Pennsylvania (www.courts.phila.gov)
- The First Judicial District is currently CLOSED until May 1, 2020, although certain proceedings are still taking place.
- All orders from the First Judicial District of Pennsylvania concerning the coronavirus pandemic can be found here.
Pennsylvania Department of Corrections (www.cor.pa.gov)
- The Pennsylvania Department of Corrections has suspended all in-person visitation to state prisons. They now offer video visitation.
If you or someone you know has been the target or victim of a fraud scheme related to the coronavirus, please report the incident to the national hotline at The National Center for Disaster Fraud at 1-866-720-5721 or at [email protected].Florida Man Sentenced to over 15 Months in Prison and $3.4 Million in Restitution for Health Care Fraud Scheme Involving Liberation Way Drug and Alcohol Rehabilitation CentersRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Jesse Peters, 45, of Lake Worth, Florida, has been sentenced to 15 months and one day of imprisonment, three years of supervised release, and restitution of $3,405,065 for one count of conspiracy to commit health care fraud. United States District Judge Wendy Beetlestone presided over the sentencing hearing in Philadelphia via video teleconference. This scheme involved Liberation Way, a drug and alcohol rehabilitation organization that had treatment centers in Yardley, Bala Cynwyd, and Fort Washington, Pennsylvania.
The defendant participated in an elaborate scheme involving thousands of medically unnecessary urine tests ordered by a co-conspirator and processed by a lab in Florida associated with Peters. The co-conspirator ordered the tests to be performed on samples obtained from Liberation Way patients, even though the co-conspirator never treated any of those patients. The tests were then sent to Florida-based laboratories for a battery of unnecessary tests, and Peters paid kickbacks to principals at Liberation Way in return for directing the samples to his company. Over the course of the conspiracy, Peters kicked back over $1,192,589 to his co-conspirators at Liberation Way in return for sending these unnecessary urine tests to his labs. The defendant pleaded guilty in April 2019.
“Those who think they can profit off of health care fraud are mistaken and may soon find themselves behind bars,” said U.S. Attorney McSwain. “Whether it’s ordering unnecessary laboratory tests to try to get rich quick or any other type of health care fraud, my Office is focused on protecting our nation’s health care system and punishing those who abuse it.”
“Jesse Peters thought he and his co-conspirators had hit upon a surefire moneymaker,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He fully bought into this scheme of unnecessary tests and kickbacks, which cost health benefit programs millions of dollars in fraudulent claims. Anyone involved in, or entertaining, similar activity should know that health care fraud is a priority for the FBI, and we will pursue anyone trying to steal from this country’s vital health care system.”
“Today’s sentencing sends a strong message, health care fraud will not be tolerated,” said Maureen R. Dixon, Special Agent in Charge, Office of the Inspector General for the U.S. Department of Health and Human Services. “HHS-OIG is committed to working with the Department of Justice, Federal and State law enforcement agencies to root out health care fraud and protect the integrity of U.S. taxpayer dollars.”
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services, the Office of Personnel Management, and the Department of Labor, in conjunction with the Pennsylvania Attorney General’s Office, and is being prosecuted by Assistant United States Attorney Nancy Beam Winter and Special Assistant United States Attorneys Robert Labar and Kristy Christ.
Pennsylvania Attorney Pleads Guilty for Role in $2.7 Million Ponzi SchemeRead the Press Release
An Allentown, Pennsylvania, attorney pleaded guilty today for his role in a $2.7 million investment fraud scheme that victimized his law clients.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania and Special Agent in Charge Michael J. Driscoll of the FBI’s Philadelphia Field Office made the announcement.
Todd H. Lahr, 60, of Nazareth, Pennsylvania, pleaded guilty before U.S. District Judge Edward G. Smith of the Eastern District of Pennsylvania to one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud and four counts of wire fraud. Sentencing is scheduled for Aug. 3, 2020 before Judge Smith.
According to Lahr’s admissions at the plea hearing, from 2012 through 2019, Lahr conspired with others to perpetrate a securities fraud scheme targeting his own law clients, which involved the fraudulent sale of the securities of two entities, THL Holdings LLC and Ferran Global Holdings Inc. Lahr used investor funds to finance his own lifestyle, paying his home mortgage, his child’s school tuition, utility bills and other personal debts. He perpetuated the scheme by using money that he received from new investors to pay money owed to other investors in the scheme. Total investor losses are estimated to be over $2.7 million, Lahr admitted at the plea hearing.
The FBI investigated this case. Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael J. Rinaldi of the Eastern District of Pennsylvania are prosecuting the case.
The department appreciates the substantial assistance provided by the U.S. Securities and Exchange Commission.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Lehigh Valley Attorney Pleads Guilty to Orchestrating $2.7 Million Ponzi Scheme that Targeted His Own Clients to Invest in Fake Business OpportunitiesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Todd H. Lahr, 60, of Nazareth, PA, pleaded guilty today to one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud, and four counts of wire fraud. United States District Judge Edward G. Smith presided over the guilty plea hearing in Easton via video teleconference.
Lahr, an attorney licensed to practice law in Pennsylvania, perpetrated a multiyear securities fraud scheme that targeted his own law clients. The scheme involved the fraudulent sale of the securities of two entities, THL Holdings, LLC and Ferran Global Holdings, Inc. Lahr raised funds for the two companies by soliciting investments from his clients, telling them that their money would be used for a variety of business opportunities which were, in fact, non-existent.
Lahr initially sold THL Holdings investments, promising that the money raised would be used to pursue specific business opportunities, including mining operations in Papua New Guinea and the acquisition of the shares of a penny stock. In reality, the money was used for Lahr’s personal expenses and to make Ponzi scheme payments to prior investors, among other things. Once Lahr realized that he was running out of investor money to pay the THL Holdings investors, he sought investors for a second entity, Ferran. He told the Ferran investors that their money would be used for business opportunities, including even more mining in Papua New Guinea and residential property leases in Spain and England—but, in fact, these funds were used to repay the prior THL Holdings investors and for Lahr’s personal expenses to fund his lifestyle. Among these personal expenses were his home mortgage, his child’s school tuition, utility bills, and other personal debt. Total investor losses are estimated to be over $2.7 million.
Even after he was caught, Lahr continued his deception by lying in sworn testimony before the U.S. Securities and Exchange Commission (SEC). In this testimony, Lahr denied writing checks to his personal accounts from the THL Holdings accounts, when, in fact, he had written at least 25 separate checks to himself over a three-year period.
In addition to these criminal charges, the SEC filed a parallel civil enforcement action in the Eastern District of Pennsylvania last month based on the same course of conduct. The SEC Complaint charges Lahr and another individual, Thomas Megas, with multiple securities fraud violations and seeks disgorgement, prejudgment interest, civil money penalties, and injunctions against future violations of the federal securities laws against both defendants.
“Lahr targeted the very people to whom he owed a duty of loyalty: his own law clients,” said U.S. Attorney McSwain. “He stole millions of dollars from innocent victims who trusted him to serve as their lawyer and provide wise counsel. He betrayed them and served his own greedy impulses instead. My Office will continue to aggressively pursue securities and other financial frauds, particularly when perpetrated by lawyers and other industry professionals who are supposed to protect the rule of law, not defile it.”
“Todd Lahr’s clients felt comfortable investing with their trusted lawyer, expecting he would act in good faith,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “In reality, Lahr was inventing these great business opportunities, investing client funds only in himself and his teetering Ponzi scheme. The FBI is gratified to help bring to justice the perpetrator of such blatant and damaging fraud.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi and Trial Attorney Philip B. Trout of the U.S. Department of Justice, Criminal Division, Fraud Section. The U.S. Attorney’s Office appreciates the substantial assistance of the U.S. Securities and Exchange Commission in this matter.
Delaware County Man Arrested for Manufacturing and Distributing Child PornographyRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Peter Gilbert, 36, of Springfield, Pennsylvania, has been arrested and charged with one count of manufacturing and attempting to manufacture child pornography, and one count of distributing and attempting to distribute child pornography. These charges arise out of Gilbert’s alleged production of sexually explicit images of a child to whom he previously had access and his distribution of those images to an undercover federal agent over the Internet.
“Those who produce and disseminate child pornography pose a serious threat to the safety of our youth and our communities,” said U.S. Attorney McSwain. “Even in these trying times – especially in these trying times – federal prosecutors will not rest in our constant efforts to protect children. And I want to thank all of our law enforcement partners for continuing to work together to protect the most vulnerable in our society.”
“Adults who use their access to children for their own sexual gratification are both a danger and a disgrace,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our law enforcement partners will never stop working to put predators who harm children behind bars. These are incredibly disturbing cases to investigate, but each time we're able to step in and protect a child victim from further sexual abuse, it's a good day.”
If convicted, Gilbert faces a statutory maximum sentence of 50 years’ incarceration with a 15 year mandatory minimum sentence of imprisonment, a lifetime of supervised release, and a $500,000 fine.
The case is being investigated by the Federal Bureau of Investigation, with assistance from Delaware County District Attorney Detectives, the Springfield Township Police Department, Ridley Township Police Department, Sharon Hill Police Department, Newtown Square Police Department, and the Upper Darby Police Department. It is being prosecuted by Assistant United States Attorney Kelly Harrell.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Psychiatrist Affiliated with Philadelphia and Lehigh Valley-Area Health Clinics Who Claimed to Have Seen over 120 Patients per Day Agrees to Pay $91,109 to Resolve False Claims Act LiabilityRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Pramod Pilania, M.D., has agreed to pay $91,109 to resolve potential liability under the False Claims Act. Dr. Pilania was a psychiatrist who previously saw patients at the Northeast Community Mental Health Centers (“Northeast clinic”) in Philadelphia and the Lehigh Valley Community Mental Health Centers (“Lehigh Valley clinic”), with locations in Allentown, Bethlehem, and Reading. According to the settlement, the United States contends that Dr. Pilania claims to have seen more than 120 Medicaid patients, including children, on a single day on several occasions in 2010. On each of the dates when he supposedly saw in excess of 120 patients, he also travelled between the Northeast clinic in Philadelphia and the Lehigh Valley clinic in Allentown, which are separated by approximately an hour’s drive.
At the time of Dr. Pilania’s patient visits, Medicaid administrators required the “medication management” or “med check” visit to be 15 minutes in duration and also required the practitioner to record the time each visit began and ended on patient encounter forms. Seeing 120 patients for 15 minutes each would take 30 hours. According to the settlement agreement, Dr. Pilania did not see some of the 120-plus patients on those six dates for 15 minutes. Instead, many of the encounters were of extremely short duration. The settlement also alleges that Dr. Pilania did not record the beginning and ending times on patient encounter forms.
This False Claims Act settlement with Dr. Pilania was preceded by a separate, related civil health care fraud lawsuit filed in 2015 against the Northeast and Lehigh Valley clinics where Dr. Pilania served as the Medical Director. That complaint also named the clinics’ principals, Melchor Martinez and Melissa Chlebowski, as defendants. At the time, the Northeast and Lehigh Valley clinics were the largest providers of mental health services to Medicaid patients in their respective regions. They generated $75 million in combined Medicaid and Medicare payments from 2009 through 2012. In 2018, the parties settled the lawsuit, and the United States obtained a $3 million consent judgment against the defendants.
“When physicians see Medicare or Medicaid patients, it is their responsibility to know the billing and payment rules required by those programs and abide by them,” said U.S. Attorney McSwain. “The allegations against Dr. Pilania – that he billed federally funded healthcare programs for over 120 patients per day while also commuting between locations that are an hour’s driving distance apart – are egregious. My Office is committed to rooting out healthcare fraud and protecting the integrity of our Medicare and Medicaid systems by holding everyone involved accountable, including any providers who try to cheat those systems.”
“Civil enforcement is an important tool in our ongoing battle against health care fraud,” said Maureen R. Dixon, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services. “We will continue to work closely with the United States Attorney’s Office to ensure the integrity of taxpayer funds and protect beneficiaries of federal healthcare programs.”
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the Pennsylvania Office of Attorney General and the North Carolina Department of Justice. This matter was handled by Assistant U.S. Attorney Judith A. Amorosa and health care fraud auditor George Niedzwicki.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
United States Attorney William M. McSwain Announces Observance of National Crime Victims’ Rights WeekRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that his Office will be celebrating National Crime Victims’ Rights Week this week, April 19-25. National Crime Victims’ Rights Week creates an opportunity for communities to raise awareness of victims’ rights and services, celebrate the progress achieved, and honor victims and the professionals who serve them. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981. This year’s theme is “Seek Justice, Ensure Victims’ Rights, and Inspire Hope.”
“Every year, millions of Americans suffer the shock and trauma of criminal victimization, affecting their well-being and sense of security and dignity,” said Attorney General William P. Barr. “To these victims, we affirm our unwavering commitment to supporting them in their hour of need. We also commend the thousands of victim advocates and public safety professionals who labor tirelessly to secure victims’ rights and support survivors.”
“I am immensely proud of the work my Office does every day to give victims a voice in our criminal justice system and to provide them with the support and services they need,” said U.S. Attorney McSwain. “National Crime Victims’ Rights Week creates a unique opportunity to increase awareness of the services available for crime victims. Our goal is to ensure that victims and witnesses are always treated fairly during the prosecution process and that their rights are vigorously protected.”
The Victim/Witness Assistance Unit professionals in the U.S. Attorney’s Office provide crime victims with case status information, education regarding the criminal justice system, court accompaniment, crisis intervention, and referrals to various social service organizations. For detailed information about the rights federal crime victims have and the victim/witness resources available, please consult our website at https://www.justice.gov/usao-edpa/victim-witness-resources.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year.
Alaska Man Who Claimed Loyalty to ISIS and Threatened Attack on Lafayette College Campus Pleads GuiltyRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Gavin Lee Casdorph, 21, of Anchorage, Alaska, pleaded guilty to one count of willfully making false threats in violation of 18 U.S.C. § 844(e). United States District Judge Edward G. Smith presided over the guilty plea hearing in Easton via video teleconference. Casdorph was charged in January 2019 with making false threats after claiming that he planned to detonate several bombs across the Lafayette College campus.
On May 5, 2018, while posing as a radicalized Lafayette College student and using the handle “BdanJafarSaleem,” Casdorph posted on Twitter that he planned to bomb multiple locations on campus. He attached a letter to his tweets, falsely claiming that his grandfather had died, his girlfriend had broken up with him, and that he had found faith and healing in Allah. The posts also pledged allegiance to ISIS and included an image of the ISIS flag and a photograph of several firearms, with the caption: “Allah has graced us with these weapons of destruction to carry out his needs.”
Casdorph also sent a mass email to members of the College’s admissions staff containing similar disturbing threats and imagery. The email’s subject line was “ISIS Will Prevail: Allah Is the True God.” In the email, Casdorph claimed that his name was “Brendan,” that he was enrolled in Economics at Lafayette, and that he was retaliating for being mocked for his religious beliefs. He warned that when word spread of his plan and students attempted to evacuate, “they’ll be playing right into my plan. I have set up several pipe bombs, pressure cookers and nail bombs around the campus and I plan to inflict the most damage possible.”
Though law enforcement quickly determined that the bomb threats were a hoax, the incident caused a tremendous amount of anxiety on campus, even causing the College to move its graduation ceremony as a precaution. The FBI thereafter conducted an extensive investigation that spanned three states and two continents and led them to Anchorage, Alaska, where the FBI arrested Casdorph in December 2018. During interviews with law enforcement, Casdorph admitted his role in the threats against Lafayette College.
Casdorph hatched his plan to announce the bomb threat on Twitter after an argument he had had with an online gamer whom he met over the Internet. Casdorph then employed the anonymous web browser TOR to set up the phony “BdanJafarSaleem” Twitter account. He further obscured his identity by providing Twitter with a phone number he had purchased from a Florida company that sells numbers to individuals who want to set up social media accounts without providing their real contact information.
“Gavin Casdorph is a dangerous man whose Internet threats have real-life consequences,” said U.S. Attorney McSwain. “He thought he could cover his tracks by using phony information to register his Twitter account and an anonymous web browser. He was wrong. The local and federal law enforcement agencies tirelessly working this case did not stop until the trail of evidence led them to Casdorph’s door. This case goes to show that if you make threats like those involved here, no matter who you are or where you are – even as far as Alaska – we will hunt you down and hold you accountable.”
“Making false threats online isn’t some harmless goof. It’s selfish, short-sighted—and a crime,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “The FBI takes all threats to life seriously, and so should anyone sitting behind a keyboard or staring into their phone, contemplating posting one. Consider whether you really want to end up where Gavin Casdorph is now, waiting to hear just how many years you’re going to be spending behind bars.”
“On behalf of everyone affiliated with Lafayette, I want to express our immense gratitude to the Department of Justice and federal law enforcement agencies, as well as all of the state and local agencies who assisted in the investigation, including our own Department of Public Safety, for their diligence in identifying the perpetrator,” said Alison R. Byerly, President of Lafayette College. “While the threats made against the campus in 2018 were determined to be a hoax, their impact on our students, faculty and staff were very real. The conclusion of this matter provides our community with much-needed closure.”
This case was investigated by the Lafayette College Department of Public Safety, Easton Police Department, and the Federal Bureau of Investigation, Philadelphia Division and Anchorage Division. It is being prosecuted by Assistant United States Attorney Joseph LaBar. Additional assistance was provided by the U.S. Attorney’s Office for the District of Alaska.
United States Attorney McSwain, FBI Warn of Potential for Videoconferencing Hacking During Coronavirus PandemicRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain warned the community today about the potential for hackers to invade and disrupt videoconference meetings that are taking place as Americans use video-teleconferencing (VTC) platforms to conduct online meetings during the coronavirus pandemic.
“In the weeks following the coronavirus outbreak, videoconferencing platforms have become a part of daily living, used in a variety of ways – from conducting online classes, to hosting extended family gatherings, to holding large corporate meetings,” said U.S. Attorney McSwain. “Unfortunately, we have also seen an uptick in video hacking, where cyber actors hijack VTC meetings and cause a variety of harms, from showing inappropriate images to making death threats. Hackers beware: this behavior is not funny in any way and will not be tolerated.”
As individuals continue to engage in online learning and social and business meetings during the pandemic, law enforcement recommends exercising due diligence and caution and encourages users to take the following steps to mitigate videoconferencing threats:
- Do not make the meetings or classrooms public. Videoconferencing platforms have options under “settings” to make meetings private by requiring participants to enter a meeting password, follow a link to a meeting, or wait in a virtual “waiting room.” These are all features that allow the host to limit public access and control admission of guests.
- Do not share a meeting link publicly. Do not use publicly accessible social media platforms to share your meeting link with participants. Provide the link directly to specific people.
- Manage screen-sharing options. Most VTC platforms have screen-sharing capability so that participants can see a host’s presentations, a feature often used in online classroom settings. Change the screen-sharing setting to “Host-Only” so that participants cannot share their screens.
- Download updates. Ensure that users are using the updated version of remote access/meeting applications, as many VTC platforms have built in additional security measures in their latest updates.
- Familiarize yourself with the VTC platform’s capability to remove intruders and lock meetings. Most VTC platforms have ways for hosts to remove participants and prevent them from re-joining and to lock meetings once all participants have joined. Consult with your employer’s IT professionals for more information about these features.
If you are a victim of a video-teleconference hijacking or any cybercrime, you can report it to the FBI’s Internet Crime Complaint Center at www.ic3.gov. If you receive a specific threat of harm during a videoconference, please report it at tips.fbi.gov, 1-800-CALL-FBI, or by calling FBI Philadelphia at 215-418-4000.
- Do not make the meetings or classrooms public. Videoconferencing platforms have options under “settings” to make meetings private by requiring participants to enter a meeting password, follow a link to a meeting, or wait in a virtual “waiting room.” These are all features that allow the host to limit public access and control admission of guests.
United States Attorney William M. McSwain Seeks Partnerships with Health Care Institutions to Stop Coronavirus-Related FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain sent a letter to area health care institutions today to advise them that the U.S. Attorney’s Office for the Eastern District of Pennsylvania is working with its federal, state, and local law enforcement partners to investigate and prosecute those who seek to exploit the devastating effects of the coronavirus pandemic for their own financial benefit. In his letter addressed to hospital leaders across the District, U.S. Attorney McSwain asked for their assistance in identifying those suspected of perpetrating coronavirus-related crimes and urged them to report suspicious conduct to his Office.
In his letter, U.S. Attorney McSwain identified several types of coronavirus-related crimes. In addition to preventing and punishing hoarding and price gouging relating to critical health and medical supplies, he reiterated his commitment to prosecuting all types of coronavirus-related fraud scams, including fraudsters who advertise and sell fake or non-existent medical equipment or phony cures, steal personal identifying information, and engage in other cybercrimes related to the pandemic.
“If left unchecked, these bad actors can inhibit hospitals, physicians, and other health care professionals, as well as governmental agencies and the public, from mitigating the spread of the coronavirus and from successfully saving lives,” said U.S. Attorney McSwain. “We are all extremely grateful for the vital work these health care professionals are performing on a daily basis. I look forward to collaborating with area health care systems and hospitals to protect the community and enforce the laws of the United States during this time of national emergency.”
For health care institutions, illegal hoarding and price gouging of health and medical supplies is of critical concern. To that end, the letter identifies the health and medical supplies that the Secretary of Health and Human Services has designated as “scarce” pursuant to the Defense Production Act, and advises that hoarding or selling these supplies at exorbitant prices will trigger criminal penalties and civil enforcement remedies that the U.S. Attorney’s Office will aggressively pursue. There are fifteen (15) categories of critical health and medical supplies covered by the Act:
- N-95 filtering facepiece respirators
- Other filtering facepiece respirators (e.g., those designated as N99, N100, R95, R99, R100, P95, P99, or P100)
- Elastomeric, air-purifying respirators and appropriate particulate filters/cartridges
- Powered air purifying respirators (PAPR)
- Portable ventilators
- Drug products with active ingredient chloroquine phosphate or hydroxychloroquine HCl
- Sterilization services for any device as defined in Section 201(h) of the Food, Drug, and Cosmetics Act, and sterilizers as defined in Title 21, Sections 880.6860, 880.6870 & 880.6880 of the Code of Federal Regulations
- Disinfecting devices intended to kill pathogens and other kinds of microorganisms by chemical means or physical means, and other sanitizing and disinfecting products suitable for use in a clinical setting
- Medical gowns or apparel (e.g., surgical gowns or isolation gowns)
- Personal protective equipment (PPE) coveralls (e.g., Tyvek Suits)
- PPE face masks
- PPE surgical masks
- PPE face shields
- PPE gloves or surgical gloves
- Ventilators, anesthesia gas machines modified for use as ventilators, and positive pressure breathing devices modified for use as ventilators, ventilator tubing connectors, and ventilator accessories
U.S. Attorney McSwain encouraged hospital employees to report any coronavirus-related suspicious activity or fraud schemes to his Office and to the national hotline at The National Center for Disaster fraud at 1-866-720-5721 or at [email protected].
Read U.S. Attorney McSwain’s letter to hospital leadership here.
Lancaster County Farm Agrees to Consent Decree to Remedy Continued Violations of Food Safety Laws and to Ensure Compliance with Terms of Court-Ordered Permanent InjunctionRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that United States District Judge Edward G. Smith has approved a Consent Decree between the United States and Miller’s Organic Farm of Bird-in-Hand, PA. Five months ago, on November 19, 2019, the court permanently enjoined Miller’s and its owner, Amos Miller, from obstructing federal health and safety oversight and from slaughtering, processing, and selling non-federally-inspected, misbranded meat and poultry products to Miller’s nationwide “private membership association” customers. In the Consent Decree, Miller’s acknowledges its recent violations of these prohibitions and agrees to enforceable remedial provisions.
The first of those violations came to light in December 2019, shortly after the injunction began, when investigators from the Food Safety and Inspection Service (FSIS) of the U.S. Department of Agriculture went to Miller’s to assess compliance with the injunction. They found approximately 2,000 pounds of fresh meat carcasses and products that Miller’s had recently slaughtered without federal inspection, in violation of the injunction. After FSIS “detained” these articles (by tagging them so that they could not be used, altered, moved, or sold in commerce while under detention), Miller’s voluntarily destroyed them.
FSIS investigators found more violations of the court’s permanent injunction in January 2020. Under the injunction, Miller’s had 60 days to sell, exclusively to its buyers’ club members, approximately 34,062 pounds of frozen meat-and-poultry-product inventory that was already in existence when the court entered the November 19, 2019 injunction. On January 22, 2020, just after that deadline had passed, the investigators found the inventory still at Miller’s, with Mr. Miller contending that he had sold all of it to only one of his buyers’ club members who runs both a Miller’s website and a Florida food Co-Op. FSIS maintained that Miller’s violated the injunction by failing timely to sell and ship the inventory directly to individual members in consumer quantities (rather than to a single member in bulk).
On that date, the investigators also observed and detained approximately 2,100 pounds of non-federally-inspected, freshly slaughtered beef carcasses. Two days later, when FSIS investigators returned to Miller’s to detain the 34,062 pounds of frozen inventory, Mr. Miller violated the injunction by initially denying them access to his facilities.
On February 10, 2020, the United States filed a separate action to seize and condemn the detained frozen inventory and fresh meat carcasses. The U.S. Marshals Service then legally seized those meat and poultry articles but left them in place (frozen and stored) at Miller’s pending a condemnation hearing.
Under the Consent Decree, Miller’s acknowledges that it has violated the injunction and agrees: (1) to pay the financial sanction ($2,500) that the court’s injunction order allows for denying FSIS access to Miller’s; (2) either to adhere to procedures for distributing the frozen inventory directly to Miller’s members in consumer quantities or to destroy the inventory; (3) to denature or destroy the fresh carcass meat, if Miller’s cannot sell it to a pet food manufacturer; and (4) to cease internet advertising of “fresh” or “unfrozen” meat and poultry products unless and until such offers for sale comply with federal and state laws. Meanwhile, the Decree contemplates a stay of the condemnation action while Miller’s has an opportunity to distribute and dispose of the articles under FSIS oversight.
FSIS is responsible for ensuring that commercially sold meat, poultry, and egg products are safe, wholesome, and correctly labeled and packaged. The Consent Decree and the condemnation action are part of the United States’ continuing efforts to bring Miller’s into compliance with the Federal Meat Inspection Act and the Poultry Products Inspection Act.
“This Office takes very seriously these violations of the court’s injunction order and is prepared to seek maximum penalties should violations continue. We are entering into today’s Consent Decree to give Miller’s an opportunity to remedy its non-compliance, to show that it is finally willing to follow food safety law requirements, to stop hindering FSIS from carrying out its food safety mission, and to operate within the rule of law that applies to all other similar businesses,” said U.S. Attorney McSwain. “Particularly during the coronavirus pandemic, when Americans have heightened concern about food safety and availability, my Office will remain vigilant in its efforts to ensure that our nation’s food safety laws are followed so that the public’s health is not further put at risk by allowing potentially unsafe food to enter our food supply.”
“FSIS inspection of meat, poultry, and processed egg products provides U.S. consumers with confidence in the safety of the products they serve their families,” said FSIS Administrator Paul Kiecker. “FSIS will continue to exercise its authority to implement and enforce food safety regulations to protect the American public and maintain the integrity of the USDA mark of inspection.”
The injunction action is captioned United States of America v. Miller’s Organic Farm and Amos Miller, EDPA No. 19-cv-1435. The condemnation action is captioned United States of America v. 2,100 Pounds of Meat Carcasses, Parts of Carcasses, and Meat Food Products, and 34,062 Pounds of Meat Food Products and Poultry Products, EDPA No. 20-757.
The United States Attorney’s Office received valuable assistance on these cases from FSIS’s Compliance and Investigations Division, Philadelphia Regional Office; USDA’s Office of the General Counsel; and FSIS’s Enforcement and Litigation Division, Office of Investigation, Enforcement and Audit. The injunction action and condemnation action were handled by Assistant United States Attorney Gerald Sullivan.
Florida-Based Laboratory, Pain Clinic, and Two Former Executives Agree to Pay $41 Million to Resolve Allegations of Unnecessary Drug TestingRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Logan Laboratories, Inc. (Logan Labs), a reference laboratory in Tampa, Florida, Tampa Pain Relief Centers, Inc. (Tampa Pain), a pain clinic also based in Tampa, Florida, and two of their former executives, Michael T. Doyle and Christopher Utz Toepke, have agreed to pay a total of $41 million to resolve alleged violations of the False Claims Act for billing Medicare, Medicaid, TRICARE, and other federal health care programs for medically unnecessary Urine Drug Testing (UDT). Both Logan Labs and Tampa Pain are subsidiaries of Surgery Partners, Inc. Doyle is the former CEO of Surgery Partners and Logan Labs. Toepke is the former Group President for Ancillary Services at Surgery Partners, with oversight of Logan Labs, and a former Vice President at Tampa Pain.
The government alleged that defendants knowingly submitted or caused the submission of false claims to federal health care programs for presumptive and definitive UDT, in circumstances where such testing was not medically reasonable or necessary. Presumptive UDT are tests that screen for the presence of drugs, while definitive UDT are tests that identify the amounts of those drugs in a patient’s system. The government alleged that defendants developed and implemented a policy and practice of automatically ordering both presumptive and definitive UDT for all patients at every visit, without any physician making an individualized determination that either test was medically necessary for the particular patients for whom the tests were ordered. According to the government’s allegations, from January 1, 2010 through December 31, 2017, the medically unreasonable and unnecessary definitive UDT were performed at Logan Labs, the medically unreasonable and unnecessary presumptive UDT were performed at Tampa Pain, and the respective resulting false claims were submitted by both Tampa Pain and Logan Labs to federal health care programs. The settlement resolves allegations brought in two separate lawsuits, one in the Eastern District of Pennsylvania and the other in the Middle District of Florida.
“The indiscriminate and unnecessary testing alleged here increased medical costs to the government without serving patients’ real medical needs,” said U.S. Attorney McSwain. “A laboratory that promotes and knowingly conducts medically unnecessary drug testing -- prioritizing profits over objective medical decision-making -- operates unlawfully and wastes limited federal health care resources. That is unfair to both patients and taxpayers and is the type of conduct that must be rooted out of our health care system.”
“The Department of Justice is committed to ensuring that federally-funded laboratory tests are ordered based on each patient’s medical needs and not for the purpose of increasing laboratory profits,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We do not tolerate practices that are not based on patient medial needs and that lead to unnecessary costs for federal health care programs.”
“Medical providers seeking profits at the expense of individualized patient care will be held accountable in our district,” said the United States Attorney for the Middle District of Florida Maria Chapa Lopez. “We will protect our district’s residents from providers whose concern for their bottom line overrides medical decision-making.”
Contemporaneous with the False Claims Act settlement, Logan Labs and Tampa Pain have also entered into a “Corporate Integrity Agreement” with the U.S. Department of Health and Human Services, Office of Inspector General.
“Increasing the profits of a sister-company by referring patients for testing services that are not medically reasonable and necessary and then having that sister-company submit claims to government health insurance programs for those needless services drains resources from legitimate patient care,” said Omar Pérez Aybar, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Services. “Those scheming to enrich themselves at the expense of taxpayer-funded programs must be held accountable for their actions.”
“It is offensive when medical providers choose to bilk our healthcare billing system for personal enrichment,” said Special Agent in Charge Cynthia A. Bruce, Defense Criminal Investigative Service (DCIS) for the Department of Defense Office of Inspector General, Southeast Field Office. “DCIS and our investigative partners are dedicated to fully investigating and bringing to justice those who deprive the DoD of limited resources needed for the healthcare of our military, veterans and their families.”
“The Department of Labor appreciates the efforts of the OIG community and the Department of Justice in identifying and pursuing cases where unnecessary testing has resulted in excessive charges to our federal workers’ compensation program,” said Antonio Rios, Director of the Office of Workers’ Compensation Programs Division of Federal Employees’ Compensation. “Healthcare fraud detection efforts are a high priority for us.”
The allegations that are the subject of today’s settlement were originally alleged in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The Act also permits the government to intervene in such actions, as the government previously did in the two whistleblower cases. The whistleblowers will receive approximately $7.79 million of the settlement.
The government’s pursuit of these matters illustrates its emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800‑HHS‑TIPS (1-800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania and the Middle District of Florida, with assistance from the U.S. Department of Health and Human Services Office of Inspector General. The two lawsuits are captioned United States ex rel. Ashton v. Logan Laboratories, LLC, et al., Case No. 16-4583 (E.D. Pa.) and United States ex rel. Cho v. Surgery Partners Inc., et al., Case No. 8:17-cv-983 (M.D. Fla.). Assistant U.S. Attorneys David A. Degnan and Viveca D. Parker handled the case in the Eastern District of Pennsylvania, with assistance from auditor Denis Cooke, and worked jointly with Assistant U.S. Attorney Kyle Cohen of the Middle District of Florida and Jake Shields and Augustine Ripa of the Civil Fraud Section of the Department of Justice.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
United States Attorney McSwain Warns of Potential Scams Concerning the Economic Impact Payments that Many Americans Will Soon ReceiveRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain warned the public today about potential scams relating to the upcoming coronavirus economic impact payments, commonly referred to as stimulus checks.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020. Under the CARES Act, millions of Americans will start to receive economic impact payments from the federal government in the upcoming weeks. In most cases, this one-time direct payment will be delivered by the Treasury Department and the Internal Revenue Service (IRS) to individual taxpayers primarily through direct deposit. Despite safeguards in place to protect these payments, fraudsters will undoubtedly attempt to exploit the current situation to steal individuals’ personal and financial information through a variety of ways, including phishing emails, social media, robocalls, and text messaging.
“It is paramount that we get this much-needed money safely into the hands of Americans in order to ease some of the pain from the pandemic,” said U.S. Attorney McSwain. “The unfortunate reality is that no matter what is going on in the world, fraudsters will look for opportunities to steal. But anybody who tries to take advantage of the pandemic in this manner will feel the full weight of federal law enforcement.”
“Unfortunately, there are fraudsters out there who will attempt to victimize vulnerable people during these trying times,” said Michael Montanez, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Philadelphia Field Office. “Everyone should be wary of swindlers trying to steal their COVID-19 Economic Impact Payment, as well as crooked individuals trying to take advantage of the crisis by tricking people into unnecessarily turning over their personal, sensitive information. All Americans should be cautious in this regard and it is asked that everyone also be on the lookout for the interests of the elderly and other susceptible family members and friends.”
Below are tips for how to spot and avoid scams:
What Fraudsters May Do:
- Ask taxpayers to sign over an economic impact payment.
- Ask by phone, email, text message, or social media for verification of personal and/or banking information for the purposes of expediting a person’s economic impact payment.
- Mail taxpayers bogus checks with contact information (such as a phone number or web address) regarding how the taxpayer can cash the check.
How to Avoid Scams:
- Don’t provide personal or financial information to strangers. Never provide an unknown individual with personal or financial information until you have verified the identity of the person with whom you are speaking.
- Don’t open or click on unusual links or attachments. If you receive unexpected emails, text messages, or social media messages with attachments or website links, delete them. Do not click on, download, or open any of the above, as you may be opening malware on your electronic device that can help criminals steal your information.
- Checks are deposited automatically. Remember that in most cases, the IRS is using direct deposit to send the economic impact payments. Thus, if anyone is asking you for personal information in any manner, you should be wary and seek additional information to verify the person’s identity and employment.
- There are no fees to receive payment. The government is not asking citizens to pay anything up front to receive an economic impact payment. If someone contacts you asking for any form of payment in order to receive an economic impact payment, please contact law enforcement.
If you or someone you know has been the target or victim of a fraud scheme related to the coronavirus, please report the incident to the national hotline at The National Center for Disaster Fraud at 1-866-720-5721 or at [email protected].
United States Sues Philadelphia Food Distributor for Allegedly Selling Uninspected and Misbranded PoultryRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that his office has filed a lawsuit to stop Philadelphia food distributor Kawa Trading, Inc. (“Kawa”), and its president Chui Xun Liu, from continuing to violate federal food safety laws. Kawa’s most recent alleged violations include selling uninspected and misbranded poultry to two restaurants in Delaware and New Jersey.
The Food Safety and Inspection Service (“FSIS”) of the United States Department of Agriculture (“USDA”), is responsible for ensuring that meat, poultry, and egg products in commerce are wholesome, not adulterated, and properly marked, labeled, and packaged. The Poultry Products Inspection Act (“PPIA”) prohibits companies and individuals from selling, transporting, offering for sale or transportation, or receiving for transportation misbranded or uninspected poultry that is capable of use as human food. The Complaint alleges that Kawa received and sold multiple unlabeled and uninspected cases of poultry products in December 2017 and January 2018.
Kawa has a long history of violating the PPIA as well as another federal food safety law—the Federal Meat Inspection Act (“FMIA”), which similarly prohibits the sale or transportation of misbranded or uninspected meat products. Kawa’s violations of both the PPIA and the FMIA date back to 2013, and the USDA has warned Kawa numerous times about its violations.
“Food safety is a critical component of public health,” said U.S. Attorney McSwain. “We will not tolerate violations of federal food safety laws and will work with our partner agency, the USDA, to do all that we can to ensure that businesses safely handle the food we eat.”
“We allege that, despite numerous warnings, the company continued to violate food safety laws,” said FSIS Administrator, Paul Kiecker. “Today’s action shows that FSIS investigators are upholding the Agency’s mission to protect public health and ensure a safe food supply.”
The United States’ lawsuit seeks to permanently enjoin Kawa from committing any further violations of the PPIA or FMIA.
The Complaint filed in this matter contains allegations only; there has been no determination of civil liability.
The case is being litigated by Assistant United States Attorney Stacey L. B. Smith, with assistance from Tracy McGowan, USDA Trial Attorney.
United States Attorney William M. McSwain Announces Nearly $60 Million in Grants Available to Support Offenders’ Successful Reentry into Communities and to Prevent their Reversion to Criminal BehaviorRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that nearly $60 million in Department of Justice grants is available to help communities address public safety by supporting the successful reentry back into their communities of adult and juvenile offenders who have served their prison sentences.
The funding is available through the Office of Justice Programs (OJP), the federal government’s leading source of public safety funding and crime victim assistance in state, local, and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including adult and juvenile reentry initiatives and research projects designed to improve our knowledge of what works in reentry programming.
“Providing offenders who have paid their debt to society with functional ways to reintegrate into their communities is an important piece of the Department’s strategy for promoting public safety,” said U.S. Attorney McSwain. “And what we have learned from our District’s reentry program – Supervision to Aid Reentry (STAR) – is that these programs work. For example, in our District, statistics show that the recidivism and revocation rates of offenders who graduate from the STAR program are significantly lower than offenders residing in our District who did not participate in the program.”
“Our District’s STAR program is a national model, and its success is directly attributable to the strong partnerships we have forged with the Federal Community Defenders’ Office, the U.S. Probation Office, and the Court,” continued U.S. Attorney McSwain. “I encourage all who are eligible to apply for these available grants to strengthen and grow reentry programs in our District and beyond.”
“Our nation is facing difficult public safety challenges that demand strong and immediate action. The high rate of recidivism poses a dire threat to community safety and is being met with a robust response by this Administration,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this persistent challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The following funding opportunities are currently available, with additional ones coming in the near future:
- Review and Validation of the First Step Act Risk Assessment Tool
Link: https://nij.ojp.gov/funding/opportunities/nij-2020-fsa
Available Funds: Determined after selection
Deadline: April 10, 2020
The National Institute of Justice (NIJ) is the research, development, and evaluation agency of the U.S. Department of Justice. With this funding opportunity, NIJ seeks to review and revalidate, on an annual basis, the risk assessment tool developed in response to the First Step Act. The risk assessment tool – the Prisoner Assessment Tool Targeting Estimated Risk and Needs (PATTERN) – will be used by the Federal Bureau of Prisons (BOP) to predict the likelihood of general and violent recidivism for all BOP inmates. Governmental agencies are excluded from eligibility for this grant. NIJ expects to support multiple individual consultants with this funding, and those consultants selected will work as a team to address First Step Act mandates.
- Correctional Adult Reentry Education, Employment, and Recidivism Reduction Strategies Program
Link: https://bja.ojp.gov/funding/opportunities/bja-2020-17104
Available Funds: $7.2 million
Deadline: April 27, 2020
The Bureau of Justice Assistance (BJA) seeks applications to implement or expand education and employment programs that emphasize strong partnerships with corrections, parole, probation, education, workforce development, and reentry service providers. Programs funded by these grants will target prisons, jails, and juvenile facilities and should be focused on the three-year period before release, as well as upon transition and reentry into the community. The following entities are eligible to apply for and receive funding pursuant to this grant: state or local governmental agencies (or their components); federally recognized Indian tribal governments; or nonprofit organizations with a demonstrated history of providing comprehensive reentry services.
- Improving Reentry for People with Substance Use Disorders Program
Link: https://bja.ojp.gov/SCASUD20
Available Funds: $13.2 million
Deadline: April 27, 2020
BJA seeks applications for funding to establish, expand, and improve treatment for people with substance use disorders during their incarceration and reentry into the community, which in turn will help to reduce recidivism, promote public safety, and recovery. The following entities are eligible to apply for and receive funding pursuant to this grant: states, units of local government, federally recognized tribal governments, and nonprofit agencies.
- Improving Community Supervision Outcomes Through Swift, Certain, and Fair Responses
Link: https://bja.ojp.gov/funding/opportunities/bja-2020-17096
Available Funds: $3 million
Deadline: April 28, 2020
BJA seeks applications from community supervision agencies, e.g., adult probation and parole or pretrial services, to develop and test new or enhanced applications of the swift, certain, and fair (SCF) principles of intervention. The SCF principles of intervention were developed by BJA to reduce recidivism and improve outcomes for people under community supervision. The following entities are eligible to apply for and receive funding pursuant to this grant: states, units of local government, and federally recognized tribal governments.
- Second Chance Act Youth Offender Reentry Program
Link: https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17350
Available Funds: $7 million
Deadline: April 28, 2020
The Second Chance Act Youth Offender Reentry Program encourages collaboration between state agencies, local government, and community and faith-based organizations to address the challenges that reentry and recidivism reduction pose for moderate to high-risk juvenile offenders returning to their communities from juvenile residential or correctional facilities. The following entities are eligible to apply for and receive funding pursuant to this grant: states (including territories), local governments, or federally recognized Indian tribal governments, in partnership with interested persons (including federal corrections and supervision agencies), service providers, and nonprofit organizations.
- Innovations in Reentry Initiative: Building System Capacity and Testing Strategies to Reduce Recidivism
Link: https://bja.ojp.gov/funding/opportunities/bja-2020-17281
Available Funds: $4 million
Deadline: May 4, 2020
This program will help jurisdictions assess their reentry system, identify strengths and gaps, and then build capacity for improving the reentry system in place or expanding services it provides. The following entities are eligible to apply for and receive funding pursuant to this grant: states, units of local government, and federally recognized tribal governments.
- Second Chance Act Community-Based Reentry Program
Link: https://bja.ojp.gov/funding/opportunities/bja-2020-17110
Total Available: $13.5 million
Deadline: May 4, 2020
BJA seeks applications to implement or expand on reentry programs that demonstrate strong partnerships with corrections, parole, probation, and other reentry service providers. These partnerships should develop comprehensive case management plans that directly address criminogenic risk and needs, as determined by validated criminogenic risk assessments, and include delivery or facilitation of services. The following entities are eligible to apply for and receive funding pursuant to this grant: nonprofit organizations and federally recognized tribal governments.
- Research and Evaluation on Promising Reentry Initiatives
Link: https://nij.ojp.gov/funding/opportunities/nij-2020-17295
Available Funds: $6 million
Deadline: May 5, 2020
With this solicitation, the National Institute of Justice (NIJ) requests proposals for rigorous research to examine reentry initiatives that incorporate promising practices, strategies, or programs. NIJ is particularly interested in supporting evaluations of innovative reentry initiatives that focus on offenders with a moderate-to-high risk of reoffending. The following entities are eligible to apply for and receive funding pursuant to this grant: states; units of local government; federally recognized Indian tribal governments that perform law enforcement functions; nonprofit and for-profit organizations; and institutions of higher learning.
- Second Chance Act Evaluation Participation Support Program
Link: https://bja.ojp.gov/funding/opportunities/bja-2020-17680
Available Funds: $4 million
Deadline: May 28, 2020
BJA seeks applicants to participate in an evaluation of their Second Chance Act-funded programs. The following entities are eligible to apply for, and receive, funding pursuant to this grant: units or components of state, local, or county governments and federally recognized Indian tribal governments, provided that applicants are current, or previous, recipients of BJA Second Chance Act funds and are running reentry programs ready for a rigorous, randomized control trial evaluation.
For more information regarding all OJP funding opportunities, please visit: https://www.ojp.gov/funding/explore/current-funding-opportunities
United States Attorney William M. McSwain Announces More Than $159 Million Available to Fight Drug Addiction CrisisRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that more than $159 million in Department of Justice grants are available to help communities address America’s drug addiction crisis.
“Our Office participates in numerous outreach programs that focus on addiction awareness, prevention, and recovery,” said U.S. Attorney McSwain. “These grants are one aspect of that effort: through these grants, we are providing those affected by addiction with a path forward to long-term recovery. This is an important initiative that helps those directly and indirectly affected by addiction, while making our communities safer at the same time.”
“Our nation is facing the difficult challenge of curbing substance addiction, which threatens public safety and is among the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through the Office of Justice Programs (OJP), the federal government’s leading source of public safety funding and crime victim assistance in state, local, and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to prevent overdose deaths and break the cycle of addiction and crime.
The following funding opportunities are currently available, with additional ones coming in the near future:
- Family Drug Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17090
Total Available: $18.2 million
Deadline: April 8, 2020
The Office of Juvenile Justice and Delinquency Prevention (OJJDP) Family Drug Court Program seeks to build the capacity of state and local courts, units of local government, and federally recognized tribal governments to enhance existing family drug courts or to implement statewide or countywide family drug court practices that increase collaboration with substance abuse treatment and child welfare systems. The following entities are available to apply for this grant: states and territories; state and local courts; units of local government; and federally recognized Indian tribal governments acting on behalf of a single jurisdiction drug court.
- Mentoring Opportunities for Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-16930
Total Available: $48 million
Deadline: April 13, 2020
This program supports the implementation and delivery of mentoring services to youth populations that are at risk for juvenile delinquency, victimization, and juvenile justice system involvement. Mentoring services can be one-on-one, group, peer, or a combination of these types. This solicitation offers five program categories, each with different eligibility criteria outlined in the link provided above. Applicants in all categories must initiate mentoring services to youth who are 17 years old or younger at the time of admission to the program. Funding can be used to support new mentoring matches or continue existing mentoring matches at the time of application.
- Juvenile Drug Treatment Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17051
Total Available: $7.2 million
Deadline: April 13, 2020
This program provides resources to state, local, and tribal governments to create and enhance juvenile drug treatment court programs for youth in the justice system who have substance abuse problems specifically related to opioid abuse. This solicitation is composed of two grant categories, and information regarding the specific eligibility requirements for each category is provided in the link above. Applicants must clearly designate the category for which they are applying.
- Opioid Affected Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17352
Total Available: $9 million
Deadline: April 20, 2020
This program will support the efforts of states, communities, tribal jurisdictions, nonprofit organizations, for-profit organizations and institutions of higher education to implement programs and strategies that identify, respond to, treat, and support children, youth, and families impacted by the opioid epidemic. The following entities are eligible to apply for and receive funding pursuant to this solicitation: states and territories; units of local government; federally recognized Indian tribal governments; nonprofit organizations and for-profit organizations; and institutions of higher education.
- Research and Evaluation on Drugs and Crime
https://nij.ojp.gov/funding/opportunities/nij-2020-17275
Total Available: $1 million
Deadline: April 20, 2020
The National Institute of Justice’s (NIJ) Drugs and Crime Research Program supports rigorous applied research on evidence-based tools, protocols, and policies for state, tribal, and local law enforcement and other criminal justice agencies that address drug trafficking, drug markets, and drug-related violence. The focus of this research solicitation is narcotics-related criminal investigation, prosecution, intelligence, and community surveillance relevant to law enforcement and death investigation activities. The FY2020 solicitation’s drug priorities are methamphetamine and other stimulants, including diverted pharmaceuticals, illicit drugs, and their analogues. The following entities are eligible to apply for and receive funding pursuant to this solicitation: states and territories; units of local government; federally recognized Indian tribal governments that perform law enforcement functions; nonprofit organizations and for-profit organizations; and institutions of higher education.
- Enhancing Community Responses to America's Addiction Crisis: Serving Our Youngest Crime Victims
https://www.ovc.gov/grants/pdftxt/fy-2020-enhancing-community-responses-to-drug-crisis.pdf
Total Available: $19 million
Deadline: May 4, 2020
The U.S. Department of Justice Office for Victims of Crime (OVC) is seeking applications to support direct services for children and youth who are crime victims as a result of the current addiction crisis; and to provide training and technical assistance to the direct services grantees. This program furthers the Department’s mission by enhancing the field’s response to young victims of the addiction crisis. The following entities are eligible to apply for and receive funding pursuant to this solicitation: states and territories; units of local government; federally recognized Indian tribal governments; nonprofit, non-governmental victim and social service organizations with the capacity to serve young crime victims affected by the addiction crisis; for-profit organizations with the capacity to serve young crime victims affected by the addiction crisis; and institutions of higher education.
- Harold Rogers Prescription Drug Monitoring Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17754
Total Available: $28.1 million
Deadline: May 5, 2020
The Harold Rogers Prescription Drug Monitoring Program (PDMP) enhances the capacity of regulatory and law enforcement agencies and public health officials to collect and analyze controlled substance prescription data and other scheduled chemical products through a centralized database administered by an authorized agency. PDMPs help state and local governments to detect and prevent the diversion and abuse of pharmaceutically controlled substances such as opioids and other prescription drugs. Eligibility criteria is outlined in the link provided above.
- Adult Drug Court and Veterans Treatment Court Discretionary Grant Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17098
Total Available: $1.75 million
Deadline: May 14, 2020
This program provides financial and technical assistance to states, state courts, local courts, units of local government, and federally recognized Indian tribal governments to enhance the operations of drug courts or to implement new veterans’ treatment courts. These courts effectively integrate evidence-based substance abuse treatment, random drug testing, equitable sanctions and incentives, and transitional services in judicially-supervised court settings with jurisdiction over offenders to reduce recidivism, substance abuse, and prevent overdoses. Eligibility criteria is outlined in the link provided above.
- Comprehensive Opioid, Stimulant, and Substance Abuse Site-based Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17023
Total Available: $27 million
Deadline: May 21, 2020
The Comprehensive Opioid, Stimulant, and Substance Abuse Program (COSSAP) was developed as part of the Comprehensive Addiction and Recovery Act (CARA) legislation. COSSAP’s purpose is to provide financial and technical assistance to states, units of local government, and Indian tribal governments to develop, implement, or expand comprehensive efforts to identify, respond to, treat, and support those impacted by illicit opioids, stimulants, and other drugs of abuse. Eligibility criteria is outlined in the link provided above.
For more information regarding all OJP funding opportunities, please visit: https://www.ojp.gov/funding/explore/current-funding-opportunities