Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Counterfeit NCAA, NFL Ticket-Seller Sentenced to PrisonRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Rakee Russ, 41, of Philadelphia, PA was sentenced to 12 months and one day of incarceration, three years’ supervised release and $420 restitution by United States District Judge R. Barclay Surrick for his participation in a scheme to sell counterfeit tickets.
Russ pleaded guilty in July 2019 to conspiracy to commit wire fraud, wire fraud, conspiracy to traffic in counterfeit goods, and trafficking in counterfeit goods, arising from his role in the sale of counterfeit tickets to sporting events, including the January 2017 Villanova-Virginia NCAA Men’s College Basketball game and the September 2017 Eagles v. Giants NFL game, both in Philadelphia, PA. The counterfeit tickets bore the authentic trademarks that were registered with the United States Patent and Trademark Office. Russ sold the counterfeit tickets at the Wells Fargo Center and Lincoln Financial Field.
“Criminal counterfeiting and piracy are serious, federal crimes,” said First Assistant U. S. Attorney Williams. “When fans spend their hard-earned money on event tickets, they deserve the real deal. This defendant took advantage of unsuspecting fans, and now he will be doing more than a year in federal prison. To anyone else out there who thinks selling counterfeit tickets are not going to be prosecuted federally, take notice. Justice has been served.”
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Joan E. Burnes and Anita Eve.
Philadelphia Man Sentenced to 27 Years for Sex Trafficking of Children and for Training Others to Engage in Sex TraffickingRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Collin Cowell, a/k/a “Tyson,” 29, was sentenced to 324 months’ incarceration and 20 years’ supervised release by United States District Court Judge J. Curtis Joyner for his scheme to organize and manage a trafficking venture with ‘employees’ whom he trained to sell young girls into sexual conduct. The defendant is also required to register as a sex offender.
The defendant was convicted in March 2018 of sex trafficking and aiding and abetting the sex trafficking of three minor children, two of whom were only 15 years old, in Philadelphia and elsewhere. He was also convicted of the distribution of child pornography for posting a sexually explicit image of two of the young girls on backpage.com, a website Cowell and his co-defendants used to advertise the minors for commercial sex acts with sex buyers, which financially benefited him directly. The defendant not only led the trafficking operation, he trained those working under him to engage in sex trafficking.
“Cowell’s crimes were devastating to his minor victims,” said First Assistant U.S. Attorney Williams. “Today’s sentence of almost three decades incarceration reflects the seriousness of his crimes and the irrevocable damage he caused, all in pursuit of financial gain. We will continue to work collectively to investigate these destructive crimes against vulnerable children.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth
Lancaster Surgeon to Pay $4.25 Million to Resolve False Billing and Kickback ClaimsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced a $4.25 million civil settlement with Glenn A. Kline, D.O. and Community Surgical Associates to resolve civil allegations relating to kickbacks received from two hospitals formerly operated by Health Management Associates (HMA) in Lancaster, Pennsylvania, in violation of the False Claims Act and Anti-Kickback Statute. Dr. Kline’s case is related to a larger investigation under which HMA agreed to pay $260 million to the United States to settle claims arising from HMA’s fraudulent billing practices in multiple healthcare institutions across the United States.
Between 2009 and 2012, as alleged in the relators’ complaint, Dr. Kline practiced as a general surgeon in Lancaster, Pennsylvania. Dr. Kline was a major source of surgical business in the Lancaster area. His ability to refer patients to two former HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center, gave Dr. Kline significant leverage over HMA as it attempted to compete in the Lancaster market.
To secure Dr. Kline’s referrals, the complaint alleges that HMA compensated Dr. Kline by paying him exorbitantly more than the fair market value of his services. Dr. Kline was being paid 300% more than the Medical Group Management Association (MGMA) median salary for comparable general surgeons, and no fair market value analysis was done to support this payment. In addition to his excessive salary, Dr. Kline demanded, and was paid, additional amounts to benefit his practice, Community Surgical Associates. As alleged, Dr. Kline was paid these amounts as kickbacks for his referral of patients to Lancaster Regional Medical Center and Heart of Lancaster Medical Center, which in turn billed federal health care programs for those patients’ services. According to the complaint, these arrangements were intentionally structured to disguise payments which were, in actuality, payments for patient referrals, not for legitimate services.
“Our resolution of this matter and the significant recovery we have obtained from this physician show once again that no matter how complex the fraud scheme is, we will find it, stop it, and punish it,” said First Assistant U.S. Attorney Williams. “The alleged improper physician inducements that Dr. Kline demanded, and received, are a form of ‘pay to play’ business practice that could compromise professional judgment. In sum, this conduct must be rooted out because it interferes with a physician’s ability to provide top-notch patient care to American citizens.”
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. George E. Miller and Michael J. Metts, former HMA hospital executives in Lancaster, filed suit in the Eastern District of Pennsylvania, alleging the improper financial relationship between HMA and Dr. Kline. Mr. Miller and Mr. Metts will receive approximately $1,054,000 million as their share of the recovery. Counsel for the whistleblowers, Marc S. Raspanti, Esquire and Pamela Coyle Brecht, Esquire from the law firm of Pietragallo Gordon Bosick & Raspanti, LLP, worked closely with the United States to investigate and resolve this case. “We sincerely thank Mr. Miller and Mr. Metts. Together with their lawyers, these two citizens provided invaluable assistance to the government throughout this case. Without the willingness of relators to shed light on allegations of fraud, preserving government program funds would be far more challenging. Their efforts played a vital role in the resolution of these cases,” said Williams.
“Today’s settlement highlights our dedication to ensuring physicians are making health care decisions based on their patients’ needs, not illegal inducements,” said Maureen R. Dixon, Special Agent in Charge, Philadelphia Regional Office, U.S. Department of Health and Human Services, Office of the Inspector General. “We will continue to work with the U.S. Department of Justice to safeguard patients and taxpayers.”
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Deputy Chief Charlene Keller Fullmer, Assistant United States Attorney Veronica Finkelstein, and Auditor Dawn Wiggins.
The civil claims resolved by the settlement are allegations against Dr. Kline only, and there has been no determination of liability.
Statement of United States Attorney McSwain on Today’s Opinion in the United States v. Safehouse LitigationRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain issued the following statement regarding the opinion issued by the district court this afternoon:
“As Deputy Attorney General Rosen explained today, the Department of Justice remains committed to preventing illegal drug injection sites from opening. Today’s opinion is merely the first step in a much longer legal process that will play out. This case is obviously far from over. We look forward to continuing to litigate it, and we are very confident in our legal position.”
Three Chinese Nationals Using the Alias “Alex” Indicted in the United States for Conspiring to Import and Distribute Deadly OpioidsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Deyao Chen, Guichun Chen, and Liangtu Pan a/k/a Liang Pan, all of the People’s Republic of China, have been charged by indictment with the following: conspiracy to import controlled substances (one count); conspiracy to distribute controlled substances (one count); and distribution of furanyl fentanyl, U-47700, and methoxyacetyl fentanyl – all powerful synthetic opioids (62 counts). In a news conference at the U.S. Attorney’s Office, U.S. Attorney McSwain addressed the charges in the indictment and highlighted broader efforts of the U.S. Attorney’s Office for the Eastern District of Pennsylvania and law enforcement to stem the tide of the opioid crisis.
The indictment alleges that from in or about April 2016 through on or about March 22, 2017, Deyao Chen, Guichun Chen, and Liangtu Pan operated through websites located in the People’s Republic of China and offered controlled substances for sale, including furanyl fentanyl, U-47700, and methoxyacetyl fentanyl. The defendants often used the same alias, “Alex,” when using these websites. Customers accessed these websites and selected the controlled substances they wanted to purchase, and the defendants directed the customers to different websites to pay for their orders.
Upon receipt of payment from the customers, the defendants emailed the customers’ orders to David Landis, charged elsewhere, who was a distributor residing in Montgomery County, Pennsylvania and a former Montgomery County Deputy Sheriff. The defendants mailed controlled substances from China to Landis in quantities sufficient to meet the orders from their internet customers. Landis would then mail the controlled substances via the United States Postal Service to customers located throughout the United States and in numerous other countries. In less than a year, Landis mailed approximately 2,900 packages of controlled substances to customers on behalf of the defendants. Landis has pleaded guilty and is awaiting sentencing.
Of the 62 distribution counts set forth in the indictment, one count alleges distribution of U-47700 to an individual which resulted in serious bodily injury. The remaining 61 distribution counts allege that the defendants distributed U-47700 and/or furanyl fentanyl to numerous individuals, including to five individuals in Georgia, Illinois, Ohio, and Tennessee who received these illegal substances and later overdosed and died with these controlled substances in their systems.
“Make no mistake: China is waging an undeclared war on our country and our American way of life, with deadly drugs serving as its weapon of choice,” said U.S. Attorney McSwain. “China is supplying the United States with the most potent and deadly fentanyl and other synthetic opioids on the market today. Today’s indictment is an important step in choking the flow of these deadly drugs into the Eastern District of Pennsylvania. International suppliers beware: you cannot hide behind a computer or evade our detection by drug trafficking from a far-away place. Even if you are halfway around the world, you will be held to account for your crimes.”
“This indictment sends a strong message to anyone connected anywhere in the world with production and trafficking of narcotics into the United States that Homeland Security Investigations and our law enforcement partners are going to hold you accountable,” said Marlon V. Miller, Special Agent in Charge of Homeland Security Investigations, Philadelphia. “Whether you’re selling fentanyl on a corner in Kensington or hiding behind a keyboard in China, Homeland Security Investigations will ensure that justice will be served.”
“The indictments announced today are the result of years of exemplary policework and collaboration at all levels of law enforcement,” said Major Douglas Burig, Director of the Pennsylvania State Police Bureau of Criminal Investigation. “The State Police will continue to work closely with our local, state, and federal partners to investigate and dismantle dangerous drug trafficking organizations that attempt to do business in Pennsylvania.”
“David Landis’ base of trafficking operations may have been Montgomery County, but his reach was global, spreading poison, misery and death far and wide. Because of traffickers like Landis, people are dying across the Commonwealth and across the country,” said Montgomery County District Attorney Kevin Steele. “I am proud to partner with United States Attorney McSwain and our other state and federal partners as we work to take down these dealers, shut down these drug pipelines and get this poison out of our communities.”
If convicted, the defendants face a maximum possible sentence of life imprisonment.
This Organized Crime Drug Enforcement Task Force (OCDETF) designated case was supported by the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (LMAHIDTA) and investigated by Homeland Security and the Pennsylvania State Police, with assistance from the following law enforcement agencies: Drug Enforcement Administration; U.S. Postal Inspection Service; United States Postal Service-Office of Inspector General; United States Secret Service; U.S. Customs and Border Protection; the Pennsylvania National Guard; Mentor-on-the-Lake Police Department, Ohio; La Vergne, Tennessee Police Department; Floyd County, Georgia Police Department; Hebron, Ohio Police Department; and the Tri-County, Illinois Drug Enforcement Task Force. It is being prosecuted by Assistant United States Attorneys Clare Putnam Pozos and Faithe Moore Taylor, and Special Assistant United States Attorney Samantha Thompson.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Montgomery County Attorney Charged with Mail FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Craig A. Cohen, age 55, of Blue Bell, Pennsylvania was charged by Information with one count of mail fraud. Cohen was an attorney who worked for approximately eight years for a Philadelphia, Pennsylvania law firm (“the Law Firm”). Cohen specialized in representing insurance companies in subrogation matters, particularly those matters involving losses generated by water damage. As a subrogation attorney, Cohen filed claims on behalf of insurance companies to obtain recoveries against product manufacturers and class action settlement funds after insurance companies covered losses of insured individuals due to water damage resulting from defective products.
Over the course of approximately four years, from 2015 through 2019, Cohen engaged in a fraudulent scheme to obtain financial recoveries from product manufacturers and class action settlement funds for his own benefit, based on (1) entirely fabricated subrogation claims; and (2) legitimate subrogation claims to which an insurance company client of the Law Firm, and not Cohen, was entitled to the financial recovery.
Cohen operated the scheme primarily from his home in Blue Bell where he created a legal entity, WLSP, PLLC (“WLSP”), which he used to file the fabricated claims. He also opened a post office box in Philadelphia and created internet domains and email addresses for his company so that his fraudulent business could function effectively and appear legitimate.
Cohen created fake subrogation claims by modifying the paperwork from legitimate claims that he and other attorneys had already successfully resolved on behalf of clients of the Law Firm. His fake paperwork for each claim made it falsely appear that losses to the insured were caused by one manufacturer’s defective product, when in fact, a different manufacturer’s product caused those losses. Where necessary, Cohen would physically damage products and take pictures of them to submit with his fraudulent claim. He also engaged an expert engineer to examine the defective product and issue a report describing the defect that would entitle Cohen’s purported client to a recovery against the product manufacturer or settlement fund.
In addition to submitting entirely fake claims, Cohen also used legitimate, unresolved claims from insurance company clients of the Law Firm and submitted those claims through WLSP, generating financial recoveries entirely for himself. In each of these cases, Cohen convinced the Law Firm’s client and the Law Firm that the claims were not viable and should not be pursued, when in fact, the claims were viable. In converting these legitimate claims to his own company’s name and pursuing them solely for his own benefit, Cohen defrauded the insurance company clients of the Law Firm that were entitled to a recovery as well as the Law Firm that was entitled to a contingency fee on those matters.
In total, Cohen submitted dozens of fraudulent claims, causing losses to numerous victims, including product manufacturers, class action settlement funds, insurance companies, and the Law Firm, for an alleged loss of at least approximately $3.4 million.
“Attorneys of any kind, public or private, take an oath to act in accordance with the law – not to use their law license to steal,” said U.S. Attorney McSwain. “The allegations here are particularly disturbing, as the defendant went to great lengths to deceive and defraud his employer and its clients of millions of dollars, which is illegal conduct for an employee in any line of work, but is especially egregious for a lawyer.”
If convicted, the defendant faces a maximum possible sentence of 20 years in prison.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Easton-Area Attorney Charged with Defrauding EstateRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Angelo Perrucci, Jr., of Bangor, PA was arrested and charged by Indictment with wire fraud.
The indictment alleges that between on or about March 16, 2016 and on or about May 29, 2019, Angelo Perrucci, Jr., while serving as the administrator of an estate of a deceased Bergen County, N.J. individual, defrauded the estate of more than $300,000. During the more than three-year period in which Perrucci purported to serve as the administrator of the estate, he issued more than seventy checks to himself.
“As alleged in the indictment, this defendant – an attorney entrusted with the care of this estate – committed fraud and stole from the true beneficiaries of the estate,” said U.S. Attorney McSwain. “Attorneys of any kind, public or private, take an oath to act in accordance with the law – not to use their law license to steal. My Office will continue to root out the type of conduct that is alleged here.”
If convicted, the defendant faces a maximum possible sentence of 100 years’ imprisonment.
The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Christopher J. Mannion of the Eastern District of Pennsylvania.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bucks County Bar and Restaurant Owners Charged with Tax OffensesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Stephen Eckler, 68, of Ivyland, Pennsylvania, and Robert Yost, 52, of Southampton, Pennsylvania, were charged by Information with willful failure to pay employment taxes.
The information alleges that Eckler and Yost, owners of the Kopper Kettle Bar and Restaurant, located in Feasterville, Pennsylvania, did not report $263,340 in cash wages that they paid to dishwasher employees at the Kopper Kettle Bar and Restaurant during the period March 2012 through at least September 2016. As a result of this practice, defendants Eckler and Yost failed to properly collect and pay over employment taxes to the Internal Revenue Service, including Social Security Tax and the Medicare Tax, commonly referred to as “FICA” taxes, and federal income tax withholdings.
“Our tax system requires businesspeople to truthfully report the wages paid to their employees,” said U.S. Attorney McSwain. “The defendants’ practice of paying their employees in cash, concealing this from the IRS, and failing to collect and pay federal employment taxes, undermines the integrity of the federal income tax system and harms those who play by the rules. My Office will aggressively pursue businesspeople who operate in such an illegal manner.”
If convicted, the defendants face a maximum possible sentence of five years in prison, a $250,000 fine, and full restitution paid to the IRS.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Richard P. Barrett.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Middle School Teacher Charged with Child Sexual ExploitationRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Christopher O’Sullivan, 31, of Philadelphia, was charged by Indictment with one count of using a facility of interstate commerce to entice a minor to engage in sexual activity, and one count of manufacturing child pornography.
The indictment alleges that between June 21 and July 23, 2019, O’Sullivan enticed a minor to engage in criminal sexual activity and manufactured child pornography. Court documents allege that O’Sullivan, a middle school teacher, coerced a 12-year-old minor boy to take a sexually explicit photograph and text it to O’Sullivan, and that O’Sullivan discussed sexual activity with the minor over text messaging. O’Sullivan was arrested by criminal complaint on August 30, 2019, in Plattsburgh, New York, and he has been detained since that time.
Anyone with additional information regarding O’Sullivan related to the sexual abuse of minors is encouraged to contact the FBI – Philadelphia at (215)418-4000.
“The defendant’s alleged abuse of his position of trust in our community for his perverse gratification is over,” said First Assistant U.S. Attorney Williams. “Child sexual exploitation is appallingly pervasive, exacerbated by the easy availability of digital media and communications, and it demands an aggressive response. We stand ready with our federal partners to identify and prosecute individuals that perpetuate this abuse.”
“Rather than live up to a teacher’s commitment to care for his students, O’Sullivan robbed this young boy of his innocence and childhood. Although today’s indictment cannot repair the damage O’Sullivan caused, it sends the message that the FBI and our partners, like the Philadelphia Police Department’s Special Victims Unit, remain committed to hunting down child predators,” said Michael T. Harpster, Special Agent in Charge of the Philadelphia Division of the FBI.
If convicted, the defendant faces a mandatory minimum term of imprisonment of 15 years, a maximum possible sentence of lifetime imprisonment, a mandatory minimum term of 5 years up to a lifetime of supervised release, a $500,000 fine, a $200 special assessment, and a $10,000 additional assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan. 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 as Part of Federal Health Care Fraud Takedown in Northeastern United StatesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain joined fellow Justice Department officials today at a press conference to announce a coordinated health care fraud enforcement action across seven federal districts involving more than $800 million in loss and the distribution of over 3.25 million opioid pills in “pill mill” clinics. The takedown includes new charges against 48 defendants for their roles in submitting over $160 million in fraudulent claims. Of those 48 defendants, 15 are doctors or medical professionals, and at least 24 defendants were charged for their roles in diverting opioids. In the Eastern District of Pennsylvania, 17 defendants (five of whom are doctors or medical professionals) were arrested, and the conduct involved submission of more than $4 million in fraudulent claims and distribution of approximately 738,000 oxycodone pills to the streets of this District.
Today’s announcement comes one year after the Department of Justice announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania and the District of New Jersey. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics.
“As today’s takedown demonstrates, this Strike Force has produced precisely what we hoped it would – and by that I mean tangible results,” said U.S. Attorney McSwain. “We have brought together a wealth of resources, knowledge, and subject-matter expertise – that of health care fraud prosecutors, civil enforcement attorneys, data analysts, and law enforcement agencies – all working to stop fraud, waste, and abuse within our federal health care programs and to stem the tide of illegal opioid distribution. These are top priorities of the Department of Justice and of my Office, and our focus in this area continues to pay off.”
At the press conference, U.S. Attorney McSwain announced details about the following cases charged in the Eastern District of Pennsylvania:
Timothy F. Shawl, M.D., 60, of Garnet Valley, PA, a medical doctor, was charged with five counts of unlawful distribution of controlled substances. He allegedly wrote prescriptions for controlled substances that were outside the usual course of professional practice and not for a legitimate medical purpose. As alleged in the indictment, Shawl wrote prescriptions for controlled substances for patients without seeing, treating, or examining them. Shawl allegedly prescribed hundreds of prescriptions for oxycodone to approximately 16 patients, amounting to over 29,000 oxycodone tablets. The Federal Bureau of Investigation (FBI) conducted the investigation. The case is being prosecuted by Trial Attorney Debra Jaroslawicz of the DOJ Fraud Section.
The second case involves defendants Neil K. Anand, M.D., 42, of Bensalem, PA, and Asif Kundi, 31, Atif Mahmood Malik, 34, and Viktoriya Makarova, 33, all of Philadelphia, PA. Anand, a medical doctor, Kundi and Malik, unlicensed foreign medical school graduates, and Makarova, a nurse practitioner, were each indicted on one count of health care fraud and one count of conspiracy to distribute controlled substances. The charges stem from the defendants’ alleged submission of false and fraudulent claims to Medicare, health plans provided by the United States Office of Personnel Management (OPM), and Independence Blue Cross (IBC). The claims allegedly were for “Goody Bags,” which were stuffed with medically unnecessary prescription medications that were dispensed by non-pharmacy dispensing sites owned by Anand. In total, Medicare, OPM, and IBC allegedly paid over $4 million for the Goody Bags. Patients were allegedly required to take the Goody Bags in order to receive prescriptions for controlled substances.
According to the indictment, Malik and Kundi wrote prescriptions for controlled substances using blank prescriptions that were pre-signed by Anand or Makarova. Anand and Makarova provided over 10,000 prescriptions for Schedule II controlled substances, of which over 7,000 were for oxycodone, for a staggering total of over 634,000 oxycodone tablets distributed from this scheme. The investigation was conducted by the following agencies: FBI, Department of Health and Human Services – Office of Inspector General (HHS-OIG), United States Postal Service – Office of Inspector General (USPS-OIG), the Office of Personnel Management, the Pennsylvania Office of Attorney General, and the Philadelphia Police Department. The case is being prosecuted by DOJ Trial Attorney Jaroslawicz.
Additionally, 12 indictments were unsealed yesterday involving charges against 12 people for allegedly possessing oxycodone with intent to distribute. The indictments charge that, from September 2016 through June 2019, the 12 defendants all presented forged prescriptions for oxycodone to various pharmacies outside of Philadelphia, in order to obtain oxycodone to distribute to others. The defendants, all from Philadelphia, allegedly drove to Pennsylvania pharmacies in Marcus Hook, Drexel Hill, and Kennett Square, and a New Jersey pharmacy in Mount Laurel, to fill these forged prescriptions. The defendants are charged with at least two, and up to 32, counts of possession with intent to distribute oxycodone. The defendants are charged with having received anywhere from 6,300 milligrams to 135,000 milligrams of oxycodone, which is approximately 75,000 oxycodone pills.
Charged were: Lamar Dillard, 37; Jermaine Grant, 29; Katrina Tucker, 32; Maurice Bertrand, 31; Courtney Brockenborough, 34; Alan Alexander Harrison, 29; Abdullah Howard, 23; Jonathan Metellus, 32; Clinton Monte Bullock, 29; Crystal Coleman, 31; Marques Russell, 35; and Joseph Michael Simmons. One defendant, Metellus, is also charged with one count of health care fraud, for allegedly using his Medicaid card to purchase prescription drugs with a forged prescription. These cases were investigated by the Drug Enforcement Administration, HHS-OIG, the Pennsylvania Department of State’s Bureau of Enforcement and Investigations, the Chester County District Attorney’s Office, and the Easttown Township Police Department. They are being prosecuted by Assistant U.S. Attorneys David E. Troyer, Elizabeth Abrams, Joan Burnes, and Mary Kay Costello, all of the Eastern District of Pennsylvania.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with its Medicare Fraud Strike Force, as well as the U.S. Attorney’s Offices for the Eastern District of Pennsylvania, District of New Jersey, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut, and District of Columbia.
“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”
“Today's indictments confirm the FBI's commitment to hunting down doctors and other healthcare professionals who act like drug dealers. The opioid crisis is devastating families here in Philadelphia and across the country. The FBI and its law enforcement partners will continue to focus on corrupt physicians and others driving the epidemic,” said Michael T. Harpster, Special Agent in Charge of the Philadelphia Division of the FBI.
“Today’s law enforcement actions show we are holding alleged bad actors accountable and working to prevent further harm to beneficiaries and taxpayers,” said Maureen R. Dixon, Special Agent in Charge, Philadelphia Regional Office of the Inspector General, U.S. Department of Health and Human Services. “HHS-OIG will continue to work with our law enforcement and community partners to combat health care fraud and drug diversion in the Philadelphia Region.”
“The DEA’s Diversion Investigators and Tactical Diversion Squads are missioned with the identification, investigation, and arrest of rogue DEA Registrants and drug trafficking organizations involved in the illegal distribution of controlled substances such as oxycodone and other prescription painkillers,” said Jonathan A. Wilson, Special Agent in Charge of the DEA’s Philadelphia Field Division. “Working with our partner agencies such as the U.S. Department of Health & Human Services, the U.S. Department of Labor, and the Federal Bureau of Investigation, the DEA will continue to pursue federal criminal cases and parallel civil proceedings against the registrants and organizations that seek to divert these powerful painkillers that have contributed to the opioid epidemic.”
U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, stated: “The Postal Service spends billions of dollars per year on health care related costs for postal employees, the majority of which is for legitimate purposes. However, a few medical providers try to take advantage of the system. USPS – OIG special agents will vigorously investigate health care fraud allegations that touch the Postal Service and will work with our law enforcement partners to bring fraudsters to justice.”
“The opioid, heroin, and fentanyl epidemic is devastating Pennsylvania communities, and it is fueled in part by prescription drug abuse,” said Pennsylvania Attorney General Josh Shapiro. “The defendants had a responsibility to help their patients, but instead they are charged with giving them dangerous opioids that they did not need. They also allegedly committed millions of dollars in insurance fraud, which causes rates for all consumers to increase. I’m proud to work with our law enforcement partners to put a stop to this criminal enterprise and protect the people of Pennsylvania.”
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trident USA Health Services LLC to Pay $8.5 Million to Resolve False Claims Act Liability for Alleged Kickback SchemeRead the Press Release
PHILADELPHIA, PA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced today an $8.5 million civil settlement to resolve two False Claims Act cases, United States et al. ex rel. Ravi Srivastava v. Trident USA Health Services LLC, Symphony Diagnostic Services No. 1, Inc. dba MobilexUSA, Civil Action No. 16-2956 (E.D. Pa.), and United States ex rel. Peter Goldman v. Symphony Diagnostic Services No. 1, LLC, d/b/a MobilexUSA, Civil Action No. 19-cv-01603 (E.D. Pa.). The lawsuits were filed by whistleblowers Ravi Srivastava and Peter Goldman, respectively, on behalf of the United States. The defendant is MobilexUSA, also known as Trident USA Health Services, LLC (Trident).
Trident provides mobile diagnostic services, including mobile x-rays, to individuals residing in skilled nursing facilities. The United States pays Trident to provide mobile x-rays to Medicare and Medicaid participants in these skilled nursing facilities. Whistleblower Srivastava had been Trident’s Chief Information Officer, and whistleblower Goldman had been a Trident regional sales manager. Based upon these whistleblowers’ allegations that Trident was engaged in a kickback scheme with skilled nursing facilities, the government investigated Trident’s pricing arrangements and its costs to provide mobile x-rays at these facilities.
Based upon its investigation, the government alleges that, from approximately June 2006 through September 2019, Trident engaged in illegal “swapping” arrangements under which Trident provided mobile x-rays to skilled nursing facilities at prices below Trident’s costs to provide the services, or below fair market value, for the purpose of inducing the facilities to refer lucrative federal health program business to Trident. Federal law prohibits the payment of kickbacks in exchange for the referral of federal healthcare business, including for healthcare that will be paid by the federal government through Medicare or Medicaid. Trident, like other companies that submit claims for payment to Medicare or Medicaid, is required to certify that it is compliant with federal anti-kickback laws. The government alleges that Trident’s certifications of anti-kickback law compliance were false certifications.
On February 10, 2019, Trident filed for bankruptcy protection. In bankruptcy, Trident sought to extinguish the government’s ability to collect any damages or penalties from Trident in connection with the illegal swapping arrangements. Despite Trident’s bankruptcy, the government and whistleblowers Srivastava and Goldman and their counsel worked together closely and continued their vigorous pursuit of the government’s claims, resulting in the $8.5 million settlement.
First Assistant U.S. Attorney Williams said: “Companies that violate the False Claims Act through illegal swapping arrangements, or by any other illegal scheme violating federal laws designed to protect the public fisc, will not find a safe harbor in bankruptcy court. The government will not relent or be deterred in our pursuit of justice for America’s taxpayers.”
Whistleblower Srivastava will receive $2,018,750.00 as his share of the government’s $8.5 million recovery, and whistleblower Goldman will receive $106,250.00. The whistleblowers were represented by attorneys Sherrie R. Savett, Esq. and Russell D. Paul, Esq., of Berger Montague, Philadelphia, PA, and James D. Young, Esq., of Morgan & Morgan Complex Litigation Group, Jacksonville, FL, respectively. “The whistleblowers and their lawyers provided vital and exceptionally valuable support to the government’s effort in this case, even after Trident’s bankruptcy put any recovery in doubt,” stated Williams.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. The lawsuits were handled by Assistant U.S. Attorneys Joel M. Sweet and Veronica J. Finkelstein, Auditor Dawn Wiggins, and Investigator Jeffrey R. Braun, from the U.S. Attorney’s Office for the Eastern District of Pennsylvania, along with Trial Attorneys Alex Thor Pogozelski and Michael J. Podberesky of the Civil Frauds Branch of the Department of Justice. Assistant U.S. Attorney Jessica Hu of the U.S. Attorney’s Office for the Southern District of New York represented the United States in Trident’s bankruptcy proceedings.
The government’s settled civil claims are based on allegations. There has been no court determination of liability.
Pharmacy Owners Agree to Pay $1.1 Million and Abide by 10-Year Federal Healthcare Exclusion to Resolve False Claims Act LiabilityRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced that the owners of E-Z Pharmacy in Philadelphia have agreed to pay $1,100,000 to resolve liability under the False Claims Act.
Dhanyabapa LLC, doing business as E-Z Pharmacy, and Shardaben Patel will jointly pay $1,100,000 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare for prescription medications that were not actually dispensed during the period from January 1, 2012 to December 31, 2016. These medications include Advair Diskus, Humalog, Novolog, Renvela, and Lidoderm. Dhanyaba LLC and Shardaben Patel also agreed to a ten-year federal healthcare exclusion, which will prohibit them from receiving payments from any federally funded health care insurer such as Medicare for the next decade.
“Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse,” said U.S. Attorney McSwain. “We appreciate E-Z Pharmacy's willingness to promptly negotiate a resolution in this matter. I also want to thank the Department of Health and Human Services, Office of the Inspector General for its referral of this matter. Our Office will continue to work proactively with our law enforcement partners to identify and prosecute fraudulent conduct.”
“Pharmacies are responsible for all claims they submit to Medicare,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayer dollars are only spent on bona fide medical claims.”
The settled civil claims are allegations only. There has been no determination of civil liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Deborah W. Frey, Civil Chief Gregory B. David, and Auditor George Niedzwicki.
Members of Nationwide Child Exploitation Enterprise Sentenced to PrisonRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced today that the following sentences were handed down this week for defendants’ participation in a nationwide child exploitation enterprise and child pornography conspiracy occurring over the online communications service Discord: (a) Andrew Dowdle, 47, of Oswego, New York, was sentenced to 16 years’ imprisonment and 15 years of supervised release; (b) Carl Masters, 44, of Lawrence, Kansas, was sentenced to 27 years’ imprisonment and a lifetime of supervised release; and (c) Ric Crossfield, Jr., 24, of Queens, New York, was sentenced to 14 years’ imprisonment and 40 years of supervised release. All three defendants will be required to register as sex offenders upon their release from incarceration. All sentences were imposed by United States District Judge Harvey Bartle III.
The case represents the first child exploitation enterprise prosecution ever brought in the Eastern District of Pennsylvania.
The sentenced defendants and their co-conspirators congregated on Discord, an Internet communications service permitting users to create “servers” (essentially chat rooms with certain advanced features) typically organized around a particular common interest. In the case of the sentenced defendants and their co-conspirators, their common interest was child pornography streamed via web camera or cell phone camera over any of a number of video-streaming platforms (including Omegle, Skype, live.me, Snapchat, Periscope, musical.ly, YouNow and others).
Over various Discord servers, the defendants and the other enterprise members encouraged one another to produce child pornography by communicating over the Internet directly with minors and enticing them to broadcast sexually explicit videos of themselves, and then to share the results of their successful efforts (which they described as “wins”) with other members of the group. The members also provided each other with links to child pornography and technical advice designed to facilitate the viewing and retention of child pornography videos. Hundreds of minor children were victimized by the enterprise, and vast quantities of child pornography were produced.
Each of these sentences followed a previous guilty plea. Dowdle pled guilty to conspiracy to advertise child pornography on April 8, 2019. Masters pled guilty to engaging in a child exploitation enterprise and conspiracy to advertise child pornography on April 25, 2019. Crossfield pled guilty to engaging in a child exploitation enterprise and conspiracy to advertise child pornography on April 17, 2019.
“The harm caused by any child exploitation is devastating and long-lasting,” said First Assistant U.S. Attorney Williams. “In this case, the impact can be multiplied by the hundreds of victims these defendants and others manipulated for their own benefit. There can be no doubt that children across the nation, and the world, are safer now that these defendants are off the street. We stand ready with our federal and local partners to identify and prosecute all those who would prey upon minor children.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Seth M. Schlessinger and Trial Attorneys Lauren E. Britsch and Kaylynn N. Foulon of the Department of Justice’s Child Exploitation and Obscenity Section.
United States Files Suit Against Pharmacy, Pharmacy Owner, and Pharmacist-in-Charge for Alleged False BillingRead the Press Release
PHILADELPHIA, PA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced that the United States has filed a civil lawsuit against G & A Somerton Pharmacy LLC (“Somerton”), its owner Polina Khodak, and its pharmacist-in-charge, Inessa Lerner, alleging that they violated the False Claims Act when they knowingly billed Medicare for over $1 million worth of prescription drugs that were never actually dispensed to beneficiaries, during the period January 1, 2009 through December 31, 2015. These medications included but were not limited to Lidoderm, Advair Diskus, Omeprazole, Solaraze, Nexium, Donepezil, Novolog, Meclizine, Lidocaine, and Januvia.
The United States has also entered into a Stipulated Order and Consent Judgment with Somerton, Khodak, and Lerner, subject to the Court’s approval, which would resolve the matter without litigation. If approved by the Court, the Judgment will require the defendants to pay nearly $1.3 million. Significantly, it will also require Somerton and Khodak to agree to a 10-year healthcare exclusion, which will prohibit them from receiving payments from any federally funded health care insurer such as Medicare. And it will require Lerner to enter into an integrity agreement, requiring her to undertake substantial compliance obligations.
“Pharmacy fraud remains a priority for our Office,” said First Assistant U.S. Attorney Jennifer Arbittier Williams. “Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse. Our Office will continue to scrutinize and pursue such conduct.”
“Pharmacies are responsible for all claims they submit to Medicare,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayers’ dollars are only spent on bona fide medical claims.”
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. For the U.S. Attorney’s Office, Assistant U.S. Attorney Deborah W. Frey, Civil Chief Gregory B. David, Auditor George Niedzwicki, and paralegal Patricia Bontempo, Certified Fraud Examiner, handled the matter.
The complaint contains allegations only; there has been no determination of liability
Philadelphia Woman Sentenced to Twenty Years’ Incarceration for Sex Trafficking of MinorsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Shyniquah Lightner, 27, of Philadelphia, Pennsylvania, was sentenced today to twenty years’ incarceration and fifteen years’ supervised release by United States District Judge C. Darnell Jones II for her role in a scheme to sex traffic minor children.
In 2016 and 2017, Lightner recruited two children, ages 14 and 15, to engage in commercial sex acts at a house in Philadelphia. She advertised the children on the website Backpage.com, and she collected money from the sex buyers who came to the residence for sexual encounters with the minors. Her co-defendant, Malik Hudson, participated in the trafficking of the 15-year-old.
“Lightner’s crimes were devastating to her minor victims,” said First Assistant U.S. Attorney Williams. “Today’s sentence of twenty years’ incarceration reflects the seriousness of her crimes and the irrevocable damage she caused, all in pursuit of financial gain. We will continue to work collectively to investigate these destructive crimes against vulnerable children.”
“Today’s sentencing is a significant step in holding Ms. Lightner accountable for trafficking children,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “Traffickers prey on the vulnerabilities of their victims, repeatedly exploiting them for their own personal gain. We will continue working with our partners at the Philadelphia Human Trafficking Task Force to hold these criminals accountable for their deplorable actions.”
The case was investigated by the Department of Homeland Security - Homeland Security Investigations, with assistance from the Philadelphia Police Department Special Victims Unit, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Philadelphia Man Convicted at Trial of Gun, Drug OffensesRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Salim Davis, 34, of Philadelphia, PA was convicted at trial of one count of being a felon in possession of a firearm, one count of possession of a firearm in connection with a drug trafficking offense, one count of possession with intent to distribute a controlled substance, and one count of aiding and abetting the making of a false statement to a federal firearms licensee.
At trial, the government presented evidence that, on December 29, 2017, at approximately 3:25 p.m., an off-duty Philadelphia Police Inspector was driving his unmarked police car in the area of 2500 Island Avenue when he heard gunshots. Minutes later, he observed defendant Salim Davis and another man carrying firearms while walking in an alleyway near the Inspector’s car. The Inspector commanded that they stop and put their hands up, but Davis fled and discarded his jacket. Police eventually caught up with Davis, placed him in custody, and recovered from him money, a bottle containing 72 Alprazolam pills, and several loose pills in Davis’s pocket. In addition, upon picking up Salim’s discarded jacket, officers recovered a Smith & Wesson, .40 caliber, semi-automatic handgun loaded with 10 live rounds. Police later determined that the weapon they recovered was purchased by a third party on Davis' behalf at Double Action, a federal firearm licensee, in Yeadon, PA.
“This guilty verdict is another important step towards protecting our communities from drug and gun offenders who bring violence to our communities,” said First Assistant U.S. Attorney Williams. “The United States Attorney’s Office, with our law enforcement partners, will aggressively investigate, prosecute, and hold these offenders accountable. We deeply appreciate the cooperation of all of our federal, state, and local partners in defending our communities and bringing Davis to justice.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by ATF and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Kate Driscoll.
Liberation Way Doctor Involved in Addiction-Treatment Health Care Fraud Scheme Sentenced to 3+ Years in PrisonRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Domenick Braccia, 58, of Hatfield, Pennsylvania, was sentenced to 37 months’ incarceration, one year supervised release, 150 hours of community service, a $15,000 fine and ordered to pay $2,484,864 in restitution by United States District Judge Wendy Beetlestone. The defendant pleaded guilty to one count of conspiracy to commit health care fraud in May 2019, arising from his role in a scheme to overbill health care benefit programs for treatment and testing of drug-addicted patients at outpatient facilities owned by Liberation Way.
Domenick Braccia was the so-called “medical director” and the only medical doctor on staff at Liberation Way’s three locations in Yardley, Bala Cynwyd, and Fort Washington. In violation of his oath as a doctor, and as part of a multi-state scheme to defraud insurers, Braccia signed blank prescription forms and patient orders, averred to the medical necessity of testing for patients whom he never saw, and prescribed for patients he did not see.
“We have consistently said that this case should send a message to those attempting to profit from fraud and the despair of individuals battling addiction,” said First Assistant U.S. Attorney Williams. “With this sentence, that message has been delivered in a powerful and concrete way. Dominick Braccia is through practicing medicine and is going to prison. We have been proud to work with the Office of Pennsylvania Attorney General Shapiro and our other federal agency partners to bring all of the defendants in this case to justice.”
“The operators of Liberation Way shamelessly took advantage of people suffering from substance use disorder to line their own pockets,” said Attorney General Josh Shapiro. “As Medical Director, Dr. Braccia played a significant role in this fraud and betrayed the patients he was supposed to be helping. I’m proud that through collaboration with our federal law enforcement partners, we held him accountable for his despicable actions today, and we will continue to do the same with the remaining Liberation Way defendants.”
The case was investigated with the Pennsylvania Attorney General’s Office, and by the Federal Bureau of Investigation, Department of Health and Human Services, Office of Personnel Management, and the Department of Labor. It is being prosecuted by Assistant United States Attorney Nancy Beam Winter and Special Assistant United States Attorneys Kristy Christ and Robert Labar of the AG’s Office.
Florida Man Who Molested 12-Year-Old Child in Philadelphia Hotel Sentenced to 15 Years in PrisonRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Liam Heim, 23, of St. Petersburg, Florida, was sentenced to 180 months’ imprisonment, and lifetime supervised release by United States District Judge Petrese B. Tucker for child exploitation offenses which occurred in Philadelphia.
In early 2018, while living in Florida, the defendant started an online forum on the messaging service Discord, through which he met a 12-year-old girl living with her parents in southern New Jersey. Heim groomed his seventh-grade victim to believe that they were in a romantic relationship, eventually convincing her to meet with him in person so that he could sexually assault her. On March 29, 2018, Heim flew from Florida to Philadelphia, picked up the victim in southern New Jersey, and brought her to a hotel near the airport in Philadelphia where he repeatedly sexually assaulted her over the course of an approximately 36-hour period before the victim was recovered by authorities and Heim was arrested. The defendant ultimately pled guilty to charges of traveling in interstate commerce to engage in illicit sexual conduct with a minor, and transportation of a minor in interstate commerce with intent to engage in unlawful sexual activity.
“The harm caused by any child exploitation is devastating and long-lasting,” said First Assistant U.S. Attorney Williams. “And in this case, the conduct wasn’t limited to online communications – this defendant followed through, traveled here from out-of-state, and actually assaulted a young and vulnerable child. There can be no doubt that our children and our community are safer now that this defendant is off the street. We stand ready with our federal and local partners to identify and prosecute all those who would prey upon minor children.”
"The sexual exploitation of children is a heinous offense,” said Marlon V. Miller, special agent in charge of Homeland Security Investigations, Philadelphia. “This joint investigation with the Philadelphia Police Department Special Victims Unit, Collingswood Police Department and Camden County Prosecutor’s Office Special Victims Unit demonstrates HSI’s commitment to working with our law enforcement partners to bring perpetrators to justice.”
The case was investigated by Homeland Security Investigations, Philadelphia Police Department and the Camden County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Seth M. Schlessinger.
Philadelphia Man Sentenced for Series of 2018 Hobbs Act Robberies in North and Northeast PhiladelphiaRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that John Karl Smith, 26, of Philadelphia, Pennsylvania was sentenced to 84 months’ incarceration and three years’ supervised release by United States District Judge Paul S. Diamond for the robbery of multiple businesses in Philadelphia during the summer of 2018.
This Hobbs Act robbery case charged the defendant with entering commercial businesses in North and Northeast Philadelphia during July and August of 2018. He entered each business, approached the clerk, produced a knife, and demanded money. The defendant robbed six businesses during his crime spree – including a corner store, multiple cell phone stores, and a pizza restaurant – and he pled guilty to six counts of Hobbs Act robbery in May 2019.
“The complete disregard that Smith demonstrated for the safety and well-being of others is appalling,” said First Assistant U.S. Attorney Williams. “The employees of these stores were simply doing their jobs, when Smith terrorized them just to make a few bucks. The streets are safer now that the defendant will be spending the next few years behind bars.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
Lehigh Valley Drug Trafficker Sentenced for Distributing Variety of Illegal Drugs Including Meth, Cocaine, “Crack Cocaine” and MarijuanaRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Jerome Lamont Duggan, 46, of Bethlehem, Pennsylvania was sentenced to 324 months’ imprisonment, five years’ of supervised release and a $2,500 fine by United States District Judge Joseph F. Leeson, Jr., for his crimes related to trafficking a multitude of drugs throughout the Lehigh Valley.
From about March through early-May 2016, Duggan and his co-conspirators possessed with intent to distribute and distributed illegal drugs including approximately 2.4 kilograms of methamphetamine in various locations throughout Northampton and Lehigh Counties, Pennsylvania. In March 2019, a jury found Duggan guilty of all counts of the Superseding Indictment, including one count of conspiracy to distribute 500 grams or more of methamphetamine, and counts charging possession with intent to distribute: (a) 50 grams or more of methamphetamine; (b) 500 grams or more of cocaine; (c) 28 grams or more of cocaine base (“crack”); and (d) approximately 772 grams of marijuana.
“Duggan and other members of this drug organization pumped huge quantities of dangerous drugs into our community,” said First Assistant U.S. Attorney Williams. “These traffickers essentially delivered destruction to our communities. Our office is determined to investigate and convict these criminals, and put them behind bars.”
“Duggan was convicted and sentenced for distributing a substantial amount of dangerous drugs such as methamphetamine, cocaine, crack cocaine, and marijuana across the Lehigh Valley,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA, working with our partner federal, state, and local law enforcement agencies will continue to identify and investigate drug-traffickers like Duggan that seek to poison our communities.”
The case was investigated by Drug Enforcement Administration-Allentown Resident Office, United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania State Police, Lehigh County District Attorney’s Office Detectives, and Allentown and Bethlehem Police Departments, and is being prosecuted by Assistant United States Attorney Kishan Nair.
Illegal Alien and Convicted Bank Robber Sentenced for Fourth Illegal Reentry into United StatesRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Mario Calderon-Medina, 55, a native and citizen of Mexico, was sentenced to 15 months’ imprisonment and one year of supervised release by United States District Judge Juan R. Sanchez for illegally reentering the United States after having been deported previously. The defendant was found by the judge to fall within Criminal History Category II based on his previous offenses.
Calderon-Medina reentered the United States illegally after having been deported to his native Mexico four times, the most recent occurrence being in 2003. During his most recent illegal return to this country, he committed a bank robbery in Montgomery County, PA, for which he was sentenced to 1½ to 3 years in state prison.
“The defendant has demonstrated a complete lack of respect for our country’s laws and has also now clearly shown that he represents a danger to the community if he should return again,” said First Assistant U.S. Attorney Williams. “The need to enforce immigration law is underscored in this case when an alien not only reenters the country unlawfully, but commits a serious crime upon his reentry.”
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations, and is being prosecuted by Assistant United States Attorneys Sarah Wolfe and Thomas Perricone.
Former President of Radnor Township Board of Commissioners Sentenced for Trafficking in Child PornographyRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that defendant Philip Ahr, 68, of Radnor, Pennsylvania, was sentenced to 151 months’ incarceration and 10 years’ supervised release by United States District Court Judge Michael M. Baylson after pleading guilty to three counts of distribution, receipt and possession of child pornography. His sentence requires him to register as a sex offender under Megan’s Law.
The defendant, who created online aliases like “DaddyX” and “DaddyXX” to commit these crimes, was originally arrested by the Delaware County District Attorney’s Office Criminal Investigation Division, and then later by the Federal Bureau of Investigation as part of an online investigation into the sexual exploitation and trafficking of children.
For more than four years, the defendant communicated online with hundreds of other child offenders, distributing horrific images of children being sexually abused and collecting an extensive supply of the unlawful videos and images. He did so at all times of the day and night and from various locations and devices, including at his home, his place of employment, and using his government-issued iPad which he had received as President of the Board of Commissioners in Radnor Township. During the same time that he was committing these offenses, Ahr also involved himself in numerous community service activities that were geared toward and gave him access to children of the same age that he sexually exploited as part of his crimes.
“The defendant’s days of exploiting his position of trust in our community for his perverse gratification are over,” said First Assistant U.S. Attorney Williams. “Child sexual exploitation is appallingly pervasive, exacerbated by the easy availability of online file sharing, and it demands an aggressive response. We stand ready with our federal partners to identify and prosecute individuals that perpetuate this abuse.”
This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Federal Bureau of Investigation, the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Doctor and Physician Practice to Pay $178,000 to Resolve False Claims Act Liability Arising from Billing of “P-Stim” DevicesRead the Press Release
PHILADELPHIA, PA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced that Richard P. Frey, D.O., and Physicians Alliance Ltd. (“PAL”) have agreed to pay $178,398.35 to resolve liability under the False Claims Act for the alleged improper billing of “P-Stim” devices.
From May 2013 through June 2014, Frey and PAL billed Medicare for the implantation of neurostimulator electrodes, a surgical procedure typically necessitating an operating room for which Medicare reimburses thousands of dollars. Frey did not conduct surgery, however. Instead, he applied a “P-Stim” device in an office setting without surgery or anesthesia.
P-Stim is an electric acupuncture device that, pursuant to manufacturer’s instructions, is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the device then provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for approximately four days until its battery runs out, at which time the device is thrown away. Medicare does not reimburse for acupuncture or for acupuncture devices such as P-Stim, nor does Medicare reimburse for P-Stim as a neurostimulator or as implantation of neurostimulator electrodes. Other brand names for this device include Stivax, NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge.
“P-Stim is an acupuncture device that was billed here as a surgically implanted neurostimulator,” said First Assistant U.S. Attorney Williams. “Medicare does not reimburse a dime for acupuncture devices, but it paid these defendants thousands of dollars because of their alleged improper billing. We appreciate Dr. Frey and PAL’s willingness to promptly negotiate a resolution in this matter, and we will continue working closely with our partners at CMS’s Center for Program Integrity, the Department of Health and Human Services Office of the Inspector General, and sister U.S. Attorney’s Offices around the country to hold accountable any other providers who inappropriately billed for this device and any distributors or marketers who carried out such a billing scheme.”
“Every dollar saved is critical to the sustainability of our Medicare program and the needs of our beneficiaries,” said Centers for Medicare and Medicaid Services Administrator Seema Verma. “We thank our partners at the Department of Justice and Department of Health and Human Services Office of Inspector General for working hard with us to identify, investigate, and eliminate waste, fraud and abuse in our federal healthcare programs.”
“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG, CMS’s Center for Program Integrity, and the U.S. Attorney’s Office will continue to evaluate and pursue inaccurate billings of P-Stim and similar devices.”
The settled civil claims are allegations only. There has been no determination of civil liability. This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Matthew E. K. Howatt, Civil Chief Gregory B. David, and Auditor Dawn Wiggins.
Philadelphia Man Found Guilty of Sex Trafficking ChildrenRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Artavius Horne, a/k/a “Lo”, 35, of Philadelphia, PA was convicted at trial of three counts of sex trafficking minors by force, fraud or coercion.
During the week-long trial, the government presented evidence which showed that the defendant organized, operated and led a sex trafficking venture based in and around Northeast Philadelphia. As part of the scheme, the defendant recruited, enticed, harbored, transported, provided, obtained, or maintained three minor children, one of whom was 13 years old, to engage in commercial sexual encounters. Horne created internet advertisements for each of the victims on a website known as Backpage.com, and he transported them across state lines to New Jersey, New York, Washington D.C., and Maryland for the purpose of engaging in commercial sex acts. He also kept the victims in apartments throughout Philadelphia, also known as “trap houses,” where they were made to engage in commercial sex for the benefit of the defendant.
“The defendant’s days of trafficking girls by force and manipulation for his own financial benefit are over,” said First Assistant U.S. Attorney Williams. “Sex trafficking is an appallingly pervasive problem, exacerbated by the easy availability of online advertising, and it demands an aggressive response. We stand ready with our federal partners to identify and dismantle organizations that perpetuate this abuse.”
The case was investigated by the Federal Bureau of Investigation, and it is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
Former Philadelphia City Controller’s Office Employee Indicted on Federal Public Corruption ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jeffrey Blackwell, 46, of Philadelphia, PA was charged by Superseding Indictment with honest services wire fraud, federal program bribery, filing a false tax return, and failure to file a tax return. In a news conference today, U.S. Attorney McSwain discussed the charges against the defendant and the commitment of the U.S. Attorney’s Office to investigating and prosecuting all types of public corruption.
The 13-count Superseding Indictment, unsealed this morning, alleges that the defendant – a former City of Philadelphia employee in the Office of the City Controller – committed a series of frauds, accepting more than $22,000 in bribes and kickbacks from individuals seeking City permits and contracts. Between 2013 and 2015 while serving in the Investigations Division of the Controller’s Office, Blackwell misused his official position to enrich himself by soliciting money in exchange for official actions or the promise of official actions, but rarely provided the promised permits or contracts. These promised services included lucrative city contracts and licenses, permits for home renovation work, and even mundane permits to park a storage container on the street. Blackwell is also charged with one count of federal program bribery for allegedly accepting a bribe to award a contract with the City to install decals on Philadelphia Police vehicles and a license to operate a used car sales business. Finally, the defendant faces charges related to making a false claim on his tax return in 2012, and failing to file federal tax returns in 2014 and 2015.
“Corruption is an insidious crime. It is a cancer that must be attacked and destroyed wherever it is found. It is lethal and can literally suck the life out of an organization, or even a city,” said U.S. Attorney McSwain. “My Office is committed to the fight against corruption: if you are an elected official, a public official or a public employee and you debase yourself and your position and betray the public through corrupt acts, you will be prosecuted and jailed. And when doing your job, don’t try to walk up to the line between corrupt and honest behavior. Stay far away from that line. Instead, do your job honestly and faithfully every day in every possible way. That is what the public deserves.”
“When government employees seek bribes and kickbacks, they’re blatantly putting their own greed ahead of the interests of the people they serve,” said Christian Zajac, Assistant Special Agent in Charge of the FBI’s Philadelphia Division. “As alleged, Blackwell traded on his official position in order to enrich himself. In doing so, he deprived the citizens of Philadelphia of their right to honest services from their city workers. The FBI is committed to investigating public corruption, in order to protect the integrity of government at all levels. We’d ask anyone who may be aware of criminal misconduct by a public official to call our Philadelphia field office, or go to tips.FBI.gov and share the information.”
“This indictment is an important victory for America's taxpayers who play by the rules,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Those Americans who file accurate, honest and timely tax returns can be assured that the government will hold accountable those who don't.”
“This indictment sends a message that you can’t skirt City permitting rules,” said Philadelphia Inspector General Amy Kurland. “The rules ensure that construction work will be done safely and honestly. We were pleased to have played a role in this investigation, and we look forward to working with our law enforcement partners to continue aggressively pursuing anyone who doesn’t play by the rules.”
“The vast majority of city employees are good people who work hard each and every day to improve the city,” said Philadelphia City Controller Rebecca Rhynhart. “However, there are a few bad actors who abuse their positions and the public’s trust. We cannot turn a blind eye to those individuals. They must be rooted out and held to account. Today’s announcement sends a clear message that these kinds of egregious actions won’t be tolerated.”
If convicted, the defendant faces a maximum possible sentence of more than thirty years’ imprisonment.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service with assistance from the Philadelphia Office of the Inspector General, and is being prosecuted by Assistant United States Attorney David Ignall. An indictment, information, or criminal complaint is an accusation.
A defendant is presumed innocent unless and until proven guilty.
Former Montgomery County Sheriff’s Officer Pleads Guilty to Child Pornography OffensesRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Matthew Laver, age 38, of Souderton, in Montgomery County, PA, entered a plea of guilty before United States District Judge Michael Baylson to multiple counts of distribution, receipt, and possession of child pornography.
The defendant was indicted in March 2019 after an investigation into the defendant’s collection of almost 4,000 images and videos depicting the sexual abuse of children that he downloaded and distributed to other users on the internet over approximately ten years. The investigation revealed that Laver trafficked in child pornography that depicted children as young as infants being sexually assaulted and raped, and that he did so during the time that he was employed as a Montgomery County Sheriff’s Officer.
“The harm caused by child exploitation is devastating and long-lasting, which is why we prosecute these cases aggressively,” said First Assistant U.S. Attorney Williams. “In this case, the conduct was particularly egregious because the defendant was a member of a law enforcement organization charged with enforcing the law. We stand ready with our federal and local partners to identify and prosecute all those who would prey upon minor children.”
“Law enforcement officers take an oath to serve and protect, thus our conduct must be beyond reproach ,” said Marlon V. Miller, special agent in charge of HSI Philadelphia. “Homeland Security Investigations special agents worked closely with our law enforcement partners to further prevent this perpetrator from victimizing children by distributing images of sexual assault.”
This case is part of Project Safe Childhood (PSC), a nationwide program bringing together all levels of law enforcement and the communities they serve to reduce sexual crimes against children. The Department of Justice and U.S. Attorney’s Offices work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce sexual crimes against children.
The case was investigated by the Department of Homeland Security and the Abington Police Department, and is being prosecuted by Assistant United States Attorneys Eileen Zelek and Michelle Rotella.
Stock Promoter Who Caused Tens of Millions in Losses Pleads Guilty to Securities Fraud ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Dino Paolucci, 41, of Mississauga, Ontario, entered a plea of guilty to four counts of securities fraud before United States District Judge Eduardo C. Robreno.
The charges resulted from the defendant’s participation in a scheme to manipulate the price and trading volume of the stocks of LiveWire Ergogenics (“LVVV”), YaFarm Technologies (“YFRM”), Resource Ventures (“REVI”), and Medical Cannabis Payment Solutions (“REFG”). This type of scheme is commonly referred to as a “pump-and-dump.”
During the course of the scheme, Paolucci, a stock promoter, worked with others to artificially increase the price and volume of the stocks through the use of false and misleading press releases, email blasts, radio advertisements and tweets, often in coordination with planned trading by other participants in the scheme. The misleading promotion in concert with planned trading was designed to control the price and volume of the stock. In order to hide their scheme from investors and regulators, Paolucci and his fellow schemers used offshore corporations and brokerage accounts, intermediaries, and even fake names, causing tens of millions of dollars of losses to investors while gaining millions in profits for themselves.
“Stock fraud is a danger to free markets and to individual investors, and our securities laws must be vigorously enforced to protect the public,” said U.S. Attorney McSwain. “Those who defraud investors and harm our securities markets will be tracked down and brought to justice, just as Paolucci was here.”
The case was investigated by the Federal Bureau of Investigations, with assistance from the Securities and Exchange Commission. It is being prosecuted by Assistant United States Attorneys Patrick Murray and Judy Smith.
Pennsylvania Man Sentenced for Attempted Travel to Philippines to Have Sex with MinorsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that defendant Jack Russell Bristol, 62, of Troy, Pennsylvania, was sentenced to thirty years’ incarceration and ten years’ supervised release by United States District Court Judge Gerald J. Pappert for child exploitation offenses.
The defendant was arrested by the Department of Homeland Security Investigations as part of an online investigation involving the sexual exploitation and trafficking of children via live-streaming webcams. For more than a year, the defendant paid for live-streamed sex shows that featured children in the Philippines. The defendant sought out young girls, some as young as 8 years of age, and paid their adult handlers to have the girls strip on camera, masturbate, and engage in sex acts with other children and with adults. The investigation confirmed that Bristol spent approximately $600 every month for these live-streamed shows, and over the last few months before his arrest, had repeated contact with two sisters who were just 12 and 14 years old.
As part of his abuse of these girls, the defendant made arrangements to travel to the Philippines, where he had paid to stay with a host family that had five girls, all under the age of 18. Bristol’s plan was to have sex with the two sisters he had been communicating with online, but he was intercepted by federal agents in Philadelphia as he attempted to board a plane to the Philippines.
Bristol confessed to agents on the day of his arrest, and later pleaded guilty to all three charges in the Indictment, for which he was sentenced today: two counts of using the Internet to entice a minor to engage in sexual conduct, and one count of attempted foreign travel to engage in illicit sexual activity with a minor.
“Child predators often go to extreme lengths to get what they want, and this case is a prime example of that – this defendant was ready to travel literally to the other side of the globe,” said U.S. Attorney McSwain. “We stand ready with our federal and local partners to identify and prosecute those who would prey upon minor children.”
“Protecting children from predators is a top priority for Homeland Security Investigations,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “Today’s sentencing demonstrates that we will not tolerate the sexual abuse of children anywhere in the world. HSI will vigorously investigate anyone who attempts to travel overseas to exploit and take advantage of children.”
This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Department of Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
United States Attorney McSwain Announces Arrest of Former Catholic Priest on False Statement ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Robert Brennan, 81, of Perryville, MD, was arrested and charged by Indictment with four counts of making materially false statements in a matter within the jurisdiction of the executive branch of the United States government.
The Indictment alleges that on or about April 25, 2019, Brennan was interviewed by the Federal Bureau of Investigation and made a number of false statements to the investigating agents. Brennan had served in the Archdiocese of Philadelphia from 1993 to 2004 as a priest at Resurrection of Our Lord parish (“Resurrection”). In September 2013, the Philadelphia District Attorney’s Office filed criminal charges against him, alleging that he had sexually abused a minor, Sean McIlmail, during Brennan’s time at Resurrection. Soon thereafter, on or about October 13, 2013, Sean McIlmail died of a drug overdose and the criminal charges against Brennan were dismissed.
In November 2013, the McIlmail family filed a civil lawsuit against the Archdiocese of Philadelphia and Brennan. The lawsuit was settled for an undisclosed amount on or about May 2, 2018.
During the April 25, 2019 interview with the FBI, Brennan made several allegedly false statements that prior to the filing of the 2013 criminal case and civil lawsuit against him, he did not know Sean McIlmail, his father, mother or brother. Brennan was arrested in Maryland this morning and is being transported to Philadelphia for his initial appearance in federal court today at 1:30 p.m.
“Making false statements to the FBI is a serious crime, and given the circumstances, the alleged false statements here are particularly disturbing,” said U.S. Attorney McSwain. “We will use all of the tools at our disposal to hold this defendant accountable for his alleged actions.”
“The defendant allegedly lied to the FBI to obstruct an investigation into complaints that he sexually abused a child while serving as a priest,” said Attorney General Josh Shapiro. “I’m proud to work with our federal partners to hold him accountable. Our Office will investigate and prosecute anyone who abuses children, takes advantage of their position of power, or gives false statements to law enforcement, no matter who they are.”
“Lying to federal agents threatens the integrity of our justice system,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “That’s precisely why it’s a crime. The FBI can't properly carry out investigations, if the people we interview think they can deceive us without consequence.”
If convicted, the defendant faces a maximum possible sentence of 32 years’ imprisonment, a $1,000,000 fine, and 3 years’ supervised release.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania Attorney General’s Office, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Second Haverford College Student Pleads Guilty to Attempt to Access President Trump’s Tax InformationRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Andrew Harris, 23, of Philadelphia, entered a plea of guilty before United States Judge Cynthia M. Rufe on the charges related to violations of 18 U.S.C. § 1030 for using a school computer and someone else’s username without that person’s permission in an attempt to illegally obtain President Donald Trump’s tax returns from the Internal Revenue Service. Harris’ co-defendant, Justin Hiemstra, previously pleaded guilty on August 6, 2019.
These charges arose out of a plot between the defendant, then a student at Haverford College, and Hiemstra (another Haverford College student), to use computers at the school’s computer lab and the Free Application for Student Aid (FAFSA) website to illegally access the tax returns. The defendants opened a false FAFSA application in the name of a member of the Trump family, and found that someone else had already obtained a username and password for Donald Trump. In order to reset the password, the defendants were prompted to answer challenge questions, which the original person had created when setting up the account. They were able to answer the questions and reset the password, and then used the President’s personal identifier information, including his social security number and date of birth, to attempt to import the President’s federal tax information into the bogus FAFSA application. Ultimately, this illegal attempt failed.
“No matter what you think about the President’s tax returns, clearly this kind of illegal activity cannot be tolerated or condoned. Unauthorized or false attempts to obtain any citizen’s IRS filings are a serious violation of privacy rights and a federal crime, and there’s nothing funny about it,” said U.S. Attorney McSwain. “Now this un-funny plot has branded both Harris and his cohort, Hiemstra, with federal criminal convictions that they deserve.”
The case was investigated by the Department of Education – Office of Inspector General and the Treasury Inspector General for Tax Administration, and is being prosecuted by Assistant United States Attorney Anthony J. Wzorek.
Nursing Assistant Receives Jail Sentence for Stealing from Wheelchair-Bound VeteranRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jacoya Brazzle, 31, of Coatesville, Pennsylvania, was sentenced to eight months’ incarceration, five years supervised release and full restitution by United States Timothy J. Savage for stealing money from a veteran patient in her care.
The defendant was a nursing assistant at the VA Medical Center (VAMC) in Coatesville. As part of her duties, she was assigned to care for a veteran who uses a wheelchair. Brazzle learned the veteran’s ATM card PIN number, and used his ATM card to access his account – withdrawing funds on more than 10 occasions from ATMs in the Coatesville area over a two month timespan. In all, the defendant stole approximately $11,000 from the victim’s bank account.
“Our veterans deserve our gratitude for their service, and it goes without saying that they deserve safe and trustworthy care at VA Medical Centers,” said U.S. Attorney McSwain. “The defendant’s conduct here – stealing from a wheelchair-bound veteran in her care – is reprehensible. My Office will investigate and prosecute any crimes against veterans to the fullest extent possible.”
“VA employees that take advantage of vulnerable veterans in their care will not be tolerated,” said Special Agent in Charge Sean J. Smith, Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Office.
The case was investigated by the Office of Inspector General for the U.S. Department of Veterans Affairs, and is being prosecuted by Assistant United States Attorney Nancy Rue.
Drug Maker Mallinckrodt Agrees to Pay over $15 Million to Resolve Alleged False Claims Act Liability for “Wining and Dining” DoctorsRead the Press Release
Pharmaceutical company Mallinckrodt ARD LLC (formerly known as Mallinckrodt ARD Inc. and previously Questcor Pharmaceuticals Inc. "Questcor"), has agreed to pay $15.4 million to resolve claims that Questcor paid illegal kickbacks to doctors, in the form of lavish dinners and entertainment, to induce prescriptions of the company’s drug, H.P. Acthar Gel (Acthar) from 2009 through 2013.
The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — with the intent to induce a health care provider to prescribe a drug reimbursed by a federal health care program, including Medicare. This prohibition extends to such practices as “wining and dining” doctors to induce them to write Medicare prescriptions of a company’s products.
The government alleged that, from 2009 to 2013, twelve Questcor sales representatives marketing Acthar provided illegal remuneration to health care providers in the form of lavish meals and entertainment expenses. The company paid this remuneration, the government alleges, with the intent to induce Acthar Medicare referrals from those health care providers, resulting in a violation of the Anti-Kickback Statute and the submission of false claims to Medicare.
“The Department of Justice will hold companies accountable for the payment of illegal kickbacks in any form,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Improper inducements have no place in our federal healthcare system, which depends on physicians making decisions based on the healthcare needs of their patients and not on or influenced by personal financial considerations.”
“When companies buy off doctors, patients suffer. My Office is committed to rooting out this type of behavior and the Anti-Kickback Statute is a critical tool in that fight,” said U.S. Attorney McSwain. “We will continue to protect the integrity of our healthcare system by holding drug companies accountable for their conduct.”
“Paying kickbacks to win business, as contended in this case, cheats taxpayers and the patients who rely on government health care programs for essential care,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to hold accountable entities paying such kickbacks.”
The allegations that are the subject of yesterday’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 $2.926 million of the settlement. The government is continuing to pursue claims in these two matters alleging that Mallinckrodt violated the False Claims Act by using a foundation as a conduit to pay illegal kickbacks in the form of copay subsidies for Acthar. These claims are not being resolved by the settlement.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the U.S. Department of Health and Human Services Office of Inspector General. The two lawsuits are captioned United States of America ex rel. Strunck et al. v. Mallinckrodt ARD, Inc., No. 12-CV-0175 (E.D. Pa.) and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc., No. 13-CV-1776 (E.D. Pa.).
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Drug Maker Mallinckrodt Agrees to Pay $15.4 Million to Resolve False Claims Act Allegations for "Wining and Dining" DoctorsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that pharmaceutical company Mallinckrodt ARD LLC (formerly known as Mallinckrodt ARD, Inc. and previously Questcor Pharmaceuticals, Inc. (“Questcor”)), has agreed to pay $15.4 million to resolve claims that Questcor paid illegal kickbacks to doctors from 2009 through 2013 in the form of lavish dinners and entertainment, to induce prescriptions of the company’s drug, H.P. Acthar Gel (“Acthar”) for the treatment of complications from multiple sclerosis.
The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value—with the intent to induce a health care provider to prescribe a drug reimbursed by Medicare. This prohibition extends to such practices as “wining and dining” doctors to induce them to write Medicare prescriptions of a company’s products.
The government alleges that, from 2009 to 2013, twelve Questcor sales representatives marketing Acthar provided illegal remuneration to health care providers in the form of lavish meals and entertainment expenses. The company paid this remuneration, the government alleges, with the intent to induce Acthar Medicare referrals from those health care providers, resulting in a violation of the Anti-Kickback Statute and the submission of false claims to Medicare.
“Federal law protects patients from medical providers who write prescriptions so they can enrich themselves and from drug companies who do not play by the rules in their marketing and promotional efforts,” said U.S. Attorney McSwain. “Kickback schemes are a form of illegal pay-to-play business practices that have no place in our health care system; they interfere with physician-patient relationships and drive up the cost of health care.”
“The Department of Justice will hold companies accountable for the payment of illegal kickbacks in any form,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Improper inducements have no place in our federal healthcare system, which depends on physicians making decisions based on the healthcare needs of their patients and not on or influenced by personal financial considerations.”
“Paying kickbacks to win business, as contended in this case, cheats taxpayers and the patients who rely on government health care programs for essential care,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to hold accountable entities paying such kickbacks.”
The allegations relevant to this 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, which are captioned United States of America ex rel. Strunck et al. v. Mallinckrodt ARD, Inc., No. 12-CV-0175 (E.D. Pa.), and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc., No. 13-CV-1776 (E.D. Pa.). The 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 800 HHS TIPS (800-447-8477). The whistleblowers will receive approximately $2.926 million of the settlement.
This matter is being handled by the Civil Division of the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Department of Justice’s Commercial Litigation Branch, with assistance from the U.S. Department of Health and Human Services’ Office of Inspector General, the Defense Criminal Investigative Service, the Federal Bureau of Investigation and the Office of Personnel Management. For the United States Attorney’s Office, the matter is being handled by Assistant United States Attorney Colin Cherico and Auditor George Niedzwicki.
The claims resolved by settlement are allegations only and there has been no determination of liability.
Northampton County Man Indicted for Illegally Possessing Guns, Homemade Bombs, and Unlawfully Operating DronesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jason Muzzicato, 43, of Bangor, Pennsylvania was charged by Superseding Indictment with possession of firearms by an unlawful user of a controlled substance, and knowingly operating an aircraft when not registered. Muzzicato was also previously charged in June with possession of firearms by a person subject to a court order restraining him from harassing, stalking and threatening an intimate partner (known as a domestic violence protective order, Protection From Abuse order or PFA), and possession of an unregistered destructive device (an improvised explosive device). These charges are pending before United States District Judge Joseph F. Leeson in Allentown, Pennsylvania.
The charges against the defendant stem from his possession of firearms and homemade bombs, while subject to the terms of a PFA order issued by the Northampton County Court of Common Pleas, and while being an unlawful user of methamphetamine. Under federal law, an individual who is subject to a PFA order is prohibited from possessing firearms. The defendant is also charged with unlawful operation of an unmanned aerial vehicle (drone). As alleged in the Superseding Indictment, the defendant possessed a DJI, Model Phantom 3, unmanned aerial vehicle (drone), seven improvised explosive devices and ten firearms, including multiple AR-15 rifles and semi-automatic pistols.
“It does not take much imagination to conjure up the enormous harm that can result from the combination of illegal firearms, explosives, and drone aircrafts,” said U.S. Attorney McSwain. “Adding methamphetamine and a disregard of court orders to the mix only serves to heighten the risk. Here the defendant’s alleged behavior violated the law and threatened public safety.”
If convicted, the defendant faces a maximum possible sentence of 33 years’ imprisonment, three years’ supervised release, a $760,000 fine, and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Reading Field Office; the Department of Transportation, Office of Inspector General, Fort Washington Field Office; the Washington Township Police Department; the Pennsylvania State Police; and the Bethlehem Fire Department, and is being prosecuted by Assistant United States Attorney John Gallagher.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Sentenced for Trafficking Protected TurtlesRead the Press Release
David Sommers, 64, of Levittown, Pennsylvania, was sentenced to six months imprisonment, three years of supervised release including six months of home detention, and to pay $250,000 in restitution for trafficking protected turtles.
From November 2011 until October 2017, Sommers poached thousands of protected diamondback terrapins and their eggs from coastal marshes in New Jersey and illegally sold the turtles. A grand jury indicted Sommers on July 10, 2018 for his criminal conduct involving the sale, export and false-labeling of packages containing protected diamondback terrapins. On Feb. 4, 2019, Sommers pleaded guilty to false-labeling of packages containing protected diamondback terrapins.
“Sommers used a sham business to shamelessly mask an illegal trade in threatened and protected species,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “The Justice Department and our law enforcement partners will safeguard our nation’s natural resources and biodiversity and prosecute wildlife traffickers to the fullest extent of the law.”
“The defendant had a simple business plan: poach protected turtles and their eggs from their natural habitat, advertise them for sale online and then illegally ship them to customers by concealing the actual contents of the packages,” said U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania. “Sommers represented himself as a legitimate reptile breeder, when he was in fact endangering the lives of these animals and breaking the law. Thanks to our partners at the New Jersey Division of Fish and Wildlife and the United States Postal Inspection Service, this defendant will be held responsible for his actions.”
Diamondback terrapins (Malaclemys terrapin) are a semi-aquatic species of turtle native to brackish waters in eastern and southern United States. They are not found in the wild in Pennsylvania, where Sommers resided, but have a dwindling habitat range in neighboring New Jersey. The terrapins are prized in the reptile pet trade for their unique, diamond-shaped shell markings. The turtles are protected under New Jersey law and by an international treaty, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
The United States, Canada and approximately 181 other countries are signatories to CITES, which provides a mechanism for regulating international trade in species whose continued survival is threatened by such trade. Due to declining populations, CITES listed the diamondback terrapin as threatened in 2013, and New Jersey banned collecting, possessing and transporting them in 2016.
This case was investigated by the United States Fish and Wildlife Service with assistance from the New Jersey Division of Fish and Wildlife. It is being prosecuted by trial attorney Ryan Connors of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Joan E. Burnes.
Levittown Man Sentenced for Trafficking Protected TurtlesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that David Sommers, 64, of Levittown, PA was sentenced to six months’ imprisonment, three years’ supervised release including six months’ home detention, and $250,000 restitution by United States District Judge Anita B. Brody for trafficking protected turtles.
From November 2011 until October 2017, the defendant poached thousands of protected diamondback terrapins and their eggs from coastal marshes in New Jersey and illegally sold the turtles. A grand jury indicted Sommers on July 10, 2018 for his criminal conduct involving the sale, export, and false-labeling of packages containing protected diamondback terrapins. On February 4, 2019, Sommers pleaded guilty to false-labeling of packages containing protected diamondback terrapins.
During the sentencing hearing, the government offered evidence that the total market value of the defendant’s sales figures and inventory of poached wildlife was worth well over $550,000.
“The defendant had a simple business plan: poach protected turtles and their eggs from their natural habitat, advertise them for sale online and then illegally ship them to customers by concealing the actual contents of the packages,” said U.S. Attorney McSwain. “Sommers represented himself as a legitimate reptile breeder, when he was in fact endangering the lives of these animals and breaking the law. Thanks to our partners at the New Jersey Division of Fish and Wildlife and the United States Postal Inspection Service, this defendant will be held responsible for his actions.”
“Sommers used a sham business to shamelessly mask an illegal trade in threatened and protected species,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “The Justice Department and our law enforcement partners will safeguard our nation’s natural resources and biodiversity and prosecute wildlife traffickers to the fullest extent of the law.”
Diamondback terrapins (Malaclemys terrapin) are a semi-aquatic species of turtle native to brackish waters in eastern and southern United States. They are not found in the wild in Pennsylvania, where Sommers resided, but have a dwindling habitat range in neighboring New Jersey. The terrapins are prized in the reptile pet trade for their unique, diamond-shaped shell markings. The turtles are protected under New Jersey law and by an international treaty, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
The United States, Canada, and approximately 181 other countries are signatories to CITES, which provides a mechanism for regulating international trade in species whose continued survival is threatened by such trade. Due to declining populations, CITES listed the diamondback terrapin as threatened in 2013, and New Jersey banned collecting, possessing, and transporting them in 2016.
This case was investigated by the United States Fish and Wildlife Service with assistance from the New Jersey Division of Fish and Wildlife. It is being prosecuted by Assistant United States Attorney Joan E. Burnes and trial attorney Ryan Connors of the Justice Department’s Environmental Crimes Section.
Defense Contractor to Pay $940,000 to Resolve Allegations of Withholding Discounts from TRICARERead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that International SOS Assistance, Inc., International SOS Government Services, Inc., International SOS, LP, Air Rescue Americas, Inc. Arnaud Vaissié; and Pascal Rey-Herme (collectively, “International SOS”), will pay $940,000 to resolve allegations that it overcharged TRICARE, a health care insurance system for members of the military services and their families, for aeromedical evacuation services by concealing discounts it received from third-party air ambulance providers in violation of the False Claims Act.
The settlement resolves allegations that, between 2013 and 2017, International SOS, a provider of overseas healthcare services for the government, submitted to TRICARE false claims for payment relating to International SOS’s provision of aeromedical evacuations. International SOS negotiated discounts from third-party air ambulance providers, which it was required to pass along to TRICARE. Instead, International SOS did not disclose the actual cost of the aeromedical evacuation services during the quoting process; billed TRICARE at the higher non-discounted amount; and received payment from TRICARE for the inflated costs, which International SOS contends it retained as a fee.
“My Office is committed to protecting the integrity of federal healthcare billing regulations,” said U.S. Attorney McSwain. “We will hold accountable any federal contractor who chooses to engage in conduct that undermines those regulations, and therefore overburdens American taxpayers, by overbilling federal healthcare programs.”
“Protecting the integrity of the U.S. Department of Defense’s (DoD) procurement process and combating healthcare fraud impacting the DoD are top priorities for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “By concealing discounts and overcharging TRICARE, the DoD’s healthcare program, International SOS sought to profit at the expense of the American taxpayer. The settlement agreement announced today is the result of a joint effort and demonstrates DCIS’ continued commitment to work with the U.S. Attorney’s Office to ensure that U.S. military members and their beneficiaries continue to receive high quality and cost-effective healthcare.”
This settlement resolves allegations in a lawsuit by a former International SOS Regional Flight Desk Manager, under the qui tam (or whistleblower) provisions of the False Claims Act. The qui tam provisions permit private parties to sue for false claims on behalf of the government and to receive a share of any recovery. The relator here will receive $165,000 as his share of the recovery in the case. The relator was represented by Franklin J. Rooks, Jr., Esq. of Morgan Rooks, P.C., and Jared A. Jacobson, Esq. of Jared Jacobson Law, LLC.
“We thank the whistleblower for coming forward and providing essential assistance to the government. This concerned citizen’s information and assistance was critical to our office’s investigative efforts in this matter, and we deeply appreciate that contribution,” said U.S. Attorney McSwain.
This case was a cooperative effort among the U.S. Attorney’s Office for the Eastern District of Pennsylvania, and the Defense Criminal Investigative Service. For the United States Attorney’s Office, Assistant United States Attorneys Scott W. Reid, Colin Cherico, and Auditor Dawn Wiggins handled the investigation and settlement.
The lawsuit is captioned United States ex rel. Richard Nicholas v. International SOS Assistance, Inc., et al., Civil Action No. 16-3927 (E.D. Pa.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
United States Brings Criminal Charges and Files Suit Against Center City DoctorRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced that Stephen Padnes, M.D., 77, of Glenside, Pennsylvania, a physician formerly licensed in Pennsylvania, was charged by Indictment with illegally distributing controlled substances and filing false tax returns (the “Indictment”). McSwain also announced two civil law suits brought by the United States, one seeking forfeiture of $1,864,545 in cash seized from the defendant’s home (the “Forfeiture Complaint”) and the other seeking penalties and damages against him for alleged improper opioid prescribing under the Controlled Substances Act and False Claims Act (the “Civil Complaint”).
The Indictment charges that Padnes illegally prescribed Schedule II controlled substances, oxycodone and methadone, on seven occasions between December 21, 2015 and June 29, 2016, without any medical necessity and outside the usual course of medical practice. It also charges that the defendant underreported the income earned by his medical practice, the Psychosomatic Medicine and Pain Rehabilitation Center, Inc., to the Internal Revenue Service by more than $700,000 for calendar years 2012, 2013, and 2014. If convicted, Padnes faces a maximum possible sentence of 149 years’ imprisonment and fines up to $7,750,000.
The Forfeiture Complaint seeks forfeiture of $1,864,545 of cash seized from the defendant’s home during the execution of a search warrant in 2016. The cash is alleged to be the cash proceeds from Padnes’ unlawful medical practice from at least 2010 to 2016. The government alleges that, during that time, the vast majority of the defendant’s “patients” paid up to approximately $500 in cash for prescriptions for controlled substances, including Schedule II opioids such as oxycodone and methadone, that he wrote outside the usual course of medical practice and without a legitimate medial purpose. The government also alleges that Padnes, at times, provided the prescriptions for payment without even seeing the supposed “patient.” The cash was discovered in suitcases and a dresser located in a bedroom in the defendant’s home.
The Civil Complaint alleges that Padnes violated the Controlled Substances Act by issuing a large number of prescriptions for Schedule II opioids in 2014, 2015, and 2016 without a legitimate medical purpose. The government alleges numerous instances where the defendant issued prescriptions for high doses of opioids without keeping medical records in the normal course of medical practice, physical exams, reevaluations, and/or monitoring of the effectiveness of the opioids he prescribed. In one example, the government alleges that Padnes issued prescriptions for so many opioids to a patient that the patient would have needed to consume nearly 70 pills, the equivalent of 4,000 milligrams of morphine, every single day. The government also alleges that the defendant violated the False Claims Act because Medicare and Medicaid paid to fill thousands of these prescriptions, causing a loss to these programs exceeding $1 million.
The Controlled Substances Act provides for penalties for each prescription issued without a legitimate medical purpose up to $25,000 for violations on or before November 2, 2015, and up to $64,820 per violation after November 2, 2015. The False Claims Act allows for damages three times the government’s loss and civil penalties between $5,500 and $11,000 for each false claim presented on or before November 2, 2015, and between $11,181 and $22,363 for each false claim presented after November 2, 2015.
“Using every tool available – from criminal charges to civil complaints – is part of my Office’s continued commitment to fighting healthcare fraud and combatting the opioid epidemic ravaging our communities,” said U.S. Attorney McSwain. “We will not allow criminals, whether they stand on a street corner or wear a lab coat, to cheat the system and exploit people in need of help in order to line their own pockets. This defendant will now have to answer for years of alleged misconduct.”
“As charged in this indictment, Dr. Padnes knew that prescribing potentially deadly amounts of opioids without medical necessity could have devastating effects,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services. “Working closely with our law enforcement partners we are committed to protecting the vulnerable patients who rely on government health programs.”
“Failure to report all income is a felony; one that could result in a prison sentence,” said Guy Ficco, IRS Criminal Investigation Special Agent in Charge. “Let the charges brought against Dr. Stephen Padnes serve as a reminder that we, along with our Law enforcement partners, stand ready to investigate and prosecute those who shirk their tax liability.”
The investigation was conducted by the Philadelphia Field Division of the Drug Enforcement Administration, the U.S. Department of Health and Human Services, Office of Inspector General, Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation. For the United States Attorney’s Office, the criminal matter is being prosecuted by Assistant United States Attorney Jerome Maiatico, the civil forfeiture matter is being prosecuted by Assistant United States Attorney Maria M. Carrillo, and the civil Controlled Substances Act and False Claims Act matter is being prosecuted by Assistant United States Attorney John T. Crutchlow.
An Indictment or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty. The civil complaints contain allegations only; there has been no determination of liability.
Prolific Philadelphia Illegal Firearms Trafficker Convicted at TrialRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Kenneth Eugene Cherry, Jr., 31, of Philadelphia was convicted at trial of multiple criminal firearms offenses: dealing in firearms without a license, possession and transfer of a machine gun, possession of an unregistered firearm, possession of a firearm with an obliterated serial number, and multiple counts of possession of a firearm by a convicted felon.
From August 2018 until February 2019, Cherry and other co-conspirators trafficked firearms from Virginia to Philadelphia, where Cherry illegally sold them on the street for profit. During this period, Cherry sold a total of 26 firearms to an undercover ATF operative, including two Glock “Auto Sear” machinegun conversion devices, sixteen semiautomatic handguns, and eight semiautomatic assault rifles, one of which had been cut down for purposes of concealment. Cherry also provided a large amount of ammunition with the firearms he sold.
“The defendant and others in this illegal gun trafficking organization endangered everyone in their midst on a daily basis by putting semiautomatic weapons on the streets illegally,” said U.S. Attorney McSwain. “Thanks to our dedicated partners at ATF and our Office’s trial team, the defendant will now pay for his crimes and will no longer be allowed to menace the Philadelphia streets.”
“The conviction of Mr. Cherry is a victory not only for ATF but for the citizens of Philadelphia as this conviction exhibits a continued and collaborative effort to combat violent crime in our community,” said Donald Robinson, Special Agent in Charge for ATF Philadelphia Field Division. “Together with our partners at the Philadelphia Police Department and the United States Attorney’s Office, we have been successful at dismantling a group dedicated to firearms trafficking in Philadelphia. ATF remains committed to working with our partners to combat violent crime by continuing to target firearms traffickers who are putting illegal guns out on our streets.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms, and is being prosecuted by Assistant United States Attorney Mark S. Miller.
Man Convicted of Attempted Gunpoint Robbery of Trolley Car Diner in Northwest PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Keenan Smith, 29, of Philadelphia was convicted today at trial with attempted robbery which interferes with interstate commerce, and using or carrying, and discharging, a firearm during and in relation to a crime of violence.
On January 31, 2018, the defendant entered the Trolley Car Diner, located in the Mount Airy section of Philadelphia, through a side door before the diner opened for business. He waited outside the manager’s office with a gun. When the manager arrived, the defendant pointed the gun at the manager’s head and told him not to move. The manager attempted to disarm the defendant, who shot himself in the hand before fleeing. The defendant sought medical treatment at nearby Roxborough Memorial Hospital, and was later arrested by the Philadelphia Police Department.
“The complete disregard that Smith had for the safety of others is appalling,” said U.S. Attorney McSwain. “The manager of this restaurant was simply showing up to do his job, and the defendant laid in wait for him and then put a gun to his head. No one should have to deal with this type of violence at their place of business or in their neighborhood. The streets of Philadelphia are safer now that the defendant has been convicted and will be held accountable for his crimes.”
“Keenan Smith attempted a violent armed robbery, terrorizing his victim at gunpoint,” said Michael T. Harpster. “He is a danger to the public, and today’s conviction ensures he’ll remain off the street for quite some time. The FBI and our law enforcement partners are committed to making this community safer by bringing to justice those willing to engage in violent crime.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, with assistance from the Whitemarsh Township Police Department, and is being prosecuted by Assistant United States Attorney Tim Stengel.
Former Vanguard Employee Sentenced to Four Years for Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Scott Capps, 48, of Coatesville, Pennsylvania was sentenced to 48 months’ incarceration, three years’ supervised release, restitution of $2,137,580 and forfeiture of $648,600 by United States District Judge Michael M. Baylson for a fraud scheme perpetrated while he was an employee of Vanguard.
On March 14, 2019, the defendant pleaded guilty to all counts in an indictment charging him with conspiracy to commit mail fraud, money laundering, and filing false tax returns. According to the indictment, between 2011 and 2014, Capps was an employee of Vanguard, an investment management group that managed trillions of dollars in assets for account holders throughout the world. The defendant admitted that through his employment he had access to dormant accounts that were due for escheatment, which is the process of turning over abandoned funds to the state.
The defendant stole the passwords of subordinates and used those passwords to access the system used to issue checks; he then submitted requests to have checks issued on certain dormant accounts to a co-conspirator. After depositing the checks into his own account, the co-conspirator issued to Capps checks drawn on one of his accounts. The total amount of the funds that the defendant stole exceeded $2.1 million. To Vanguard’s credit, all individual accounts were made whole after the defendant’s crimes were detected. At the guilty plea hearing, Capps also admitted that for the tax years 2013 and 2014, he had filed false tax returns that failed to report the income from his scheme.
“My office takes white collar offenses like wire fraud, tax fraud and money laundering very seriously,” said U.S. Attorney McSwain. “The defendant stole more than two million dollars by abusing his position with his former employer. My Office will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by this type of fraud.”
“No matter what the source of income, all income is taxable,” said Guy Ficco, IRS Criminal Investigation Special Agent in Charge. “Scott Capps failed to report the money he stole and that is a violation of the federal tax laws. Today, justice is served and he is being held accountable for his conduct. The IRS is proud to have shared its hallmark expertise in following the money trail in this and other increasingly sophisticated criminal schemes.”
“Scott Capps saw it as easy money,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Amass millions from dormant accounts, launder those funds, and enjoy. But crime truly doesn’t pay and now he’s being held accountable. We and our law enforcement partners would like to thank Vanguard management for their assistance in this matter. Know that the FBI will never let up on those who risk engaging in financial fraud.”
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Internal Revenue Service-Criminal Investigation and is being prosecuted by Assistant United States Attorney David J. Ignall.
Federal Authorities Seek Additional Information in Child Exploitation InvestigationRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain and Special Agent in Charge Michael T. Harpster of the FBI’s Philadelphia Division announced that their offices and law enforcement partners are asking for the public's assistance to identify potential victims of Robert Dean Caesar, 56, most recently of Oxford, Pennsylvania. Caesar, who is currently in federal custody, was charged by indictment on November 15, 2018 with production, receipt, and possession of child pornography. He is expected to go on trial beginning September 30, 2019.
The Indictment alleges that on or about each of two separate dates (September 16, 2017 and December 30, 2017), Caesar manufactured child pornography. The Indictment further alleges that Caesar received child pornography on December 20, 2017, and possessed child pornography on January 18, 2018.
Caesar, who most recently resided in Oxford, Pennsylvania, has also lived in Philadelphia, Norristown, Cranberry Township, and Pittsburgh, Pennsylvania; Richland, New York; and Silverthorne, Colorado.
If you have information regarding the pending prosecution, or you believe you or someone you know may have been victimized by Robert Dean Caesar, the FBI requests that you contact the Philadelphia Division at 215-418-4000 or go to www.fbi.gov/RobertCaesar. Identified victims may be eligible for certain services and rights under federal and/or state law.
If convicted as charged, the defendant faces a maximum possible sentence of 100 years’ imprisonment, a mandatory minimum term of 15 years’ imprisonment, supervised release for a minimum term of five years and a lifetime maximum term, a $1,000,000 dollar fine, mandatory restitution, and up to $20,400 in special assessments.
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 is being investigated by the Pennsylvania State Police – Avondale Barracks, the Cranberry Township Police Department, and the Federal Bureau of Investigation, with assistance from the Chester County District Attorney’s Office and the Butler County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Seth Schlessinger.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced 17+ Years for Manufacturing Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Michael Walpole, 31, of Philadelphia, Pennsylvania, was sentenced to 210 months’ imprisonment (17 ½ years) and 15 years’ supervised release by United States District Judge Paul S. Diamond on child exploitation charges.
In May 2018, the defendant forced the five-year old victim to take off her pants and underwear. The defendant took off his own pants, placed his penis on the victim’s naked buttocks, and photographed this abuse. On April 2, 2019, the defendant pleaded guilty to manufacture and attempted manufacture of child pornography.
“The nature of this defendant’s crime is horrifying and the negative impact on the victim and her family can never be fully understood or appreciated, which is why my Office is committed to working with our law enforcement partners to identify, investigate, and prosecute these dangerous predators,” said U.S. Attorney McSwain.
“Those who sexually exploit children do serious lasting harm,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Walpole involved a child victim in his own depraved fantasy and documented it. He’ll now be held accountable for his actions, locked away where he can’t victimize any more kids.”
This case were 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 (FBI) and is being prosecuted by Assistant United States Attorney Meaghan A. Flannery.
Founder of Mantria Corp. Sentenced to 22 Years for Operating $54 Million Ponzi SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Troy Wragg, 37, of Philadelphia, PA was sentenced today to 22 years in prison and $54 million restitution by United States District Judge Joel H. Slomsky for perpetrating two fraud schemes.
The defendant was the founder of Mantria Corporation, based in Bala Cynwyd, PA. From 2005 until 2009, Wragg received approximately $54 million in funds from investors across the United States with the false promise that they would earn 50% or higher returns on their investments. The defendant told the victim investors that Mantria was a very successful company with investments in real estate and green energy. In reality, however, Mantria was a Ponzi scheme which used new investor funds to pay “earnings” to earlier investors.
Wragg obtained these large investments through co-defendant Wayde McKelvy, who ran unlicensed investment clubs in Colorado. In addition to advising the victims to invest their retirement savings in Mantria, Wragg and McKelvy coached the victims to obtain home equity loans, credit card loans, and other loans to raise even more funds to invest in Mantria. Thus, when the Mantria Ponzi scheme collapsed, many of the victims were left financially devastated.
While on bail pending sentencing for the Mantria fraud, Wragg brazenly committed a second fraud scheme. The defendant solicited an investment in an online video dating service, known as LUVR, with the false representation that the company was about to be purchased by a well-known internet entrepreneur. In reality, no such deal ever existed and the victim lost her entire investment.
“Wragg and his co-conspirators talked a big game about their bogus trash-to-green-energy business, but it was all a lie. And when he was caught in this lie, he just couldn’t help himself and decided to scam yet another innocent investor,” said U.S. Attorney McSwain. “The defendant is clearly a danger to the public and deserves to be in prison for a very long time. My office thanks the Court for delivering an appropriate sentence.”
Wragg pleaded guilty to both fraud schemes. Co-defendant Amanda Knorr also pleaded guilty to her role in the Mantria fraud and was sentenced in April 2019 to 30 months’ in prison. Co-defendant Wayde McKelvy was convicted on all counts at trial in October 2018. The Court has not yet set a sentencing date for McKelvy.
The case was investigated by the Federal Bureau of Investigation with assistance from the U.S. Securities and Exchange Commission, the Colorado Division of Securities, the Arizona Division of Securities, the Tennessee Department of Financial Institutions, and the Upper Darby Township Police Department. The case was prosecuted by Assistant United States Attorneys Robert J. Livermore and Sarah M. Wolfe.
Statement by United States Attorney William M. McSwain on the Shooting of Six Philadelphia Police OfficersRead the Press Release
What I witnessed last night was true heroism by the Philadelphia police. But the crisis was precipitated by a stunning disrespect for law enforcement – a disrespect so flagrant and so reckless that the suspect immediately opened fire on every single officer within shooting distance. Only by the grace of God did they survive.
Where does such disrespect come from?
There is a new culture of disrespect for law enforcement in this City that is promoted and championed by District Attorney Larry Krasner – and I am fed up with it.
It started with chants at the DA’s victory party – chants of “F*** the police” and “No good cops in a racist system.”
We’ve now endured over a year and a half of the worst kinds of slander against law enforcement – the DA routinely calls police and prosecutors corrupt and racist, even “war criminals” that he compares to Nazis.
This vile rhetoric puts our police in danger. It disgraces the Office of the District Attorney. And it harms the good people in the City of Philadelphia and rewards the wicked.
The alleged shooter last night, Maurice Hill, is a previously convicted felon with a long rap sheet. We have plenty of criminal laws in this City – but what we don’t have is robust enforcement by the District Attorney. Instead, among other things, we have diversionary programs for gun offenses, the routine downgrading of charges for violent crime, and entire sections of the criminal code that are ignored.
The criminal laws in this City – and especially the existing gun laws and drug laws – should be aggressively enforced in order to protect the public and the police. My Office is doing all that we can. We have prosecuted 70% more violent crime cases this year than we did last year, in response to the District Attorney’s lawlessness. But it is now time for the District Attorney and his enablers to stop making excuses for criminals. It is time for accountability. It is time to support law enforcement and to put the good people of this City first.
The U.S. Attorney’s Office, in conjunction with the Philadelphia police and our federal partners, is investigating the horrible events of last night and we are considering all options at our disposal. We will do everything that we can to support our brothers and sisters in the Philadelphia Police Department and ensure justice is done.
To the officers involved last night – those who were wounded and those who rushed to defend them – and to their families, I say thank you. The whole City thanks you. We owe you more than we can ever repay.
Real Estate Investor Guilty of Bribing Philadelphia Sheriff’s Office Employee SentencedRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Behzad Sabagh, 37, of Philadelphia, Pennsylvania, was sentenced today to 1 month imprisonment, 9 months house arrest as part of 3 years supervised release, $30,000 fine and $100 special assessment plus costs of prosecution by United States District Judge Wendy Beetlestone. Sabagh pleaded guilty to one count of conspiracy to commit honest services wire fraud in April 2019.
Sabagh was a real estate investor who regularly purchased properties at City of Philadelphia Sheriff’s sales, which are the sales of real property subject to mortgage foreclosure, tax liens, and tax delinquency. From September 2012 to August 2013, Sabagh paid bribes to an employee in the Philadelphia Sheriff’s Office Real Estate Department to assist him with his business of purchasing properties.
The preferential treatment the employee provided Sabagh included sending him the list of properties that were actually going to sale as opposed to the publicly available list that contained properties that had been removed from the sale pool, working to get deeds for Sabagh’s properties faster than other buyers, and removing municipal liens and paying outstanding bills more quickly on Sabagh’s properties than on those of other buyers who were not providing bribes. The employee also granted extensions of the time to pay the balance that Sabagh owed to complete his purchase of properties, beyond the limits applicable to other buyers. Sabagh paid the employee hundreds of dollars in cash five or six times for this preferential treatment.
“The laws of the land apply to everyone – and certainly to public servants who are paid with public dollars and who are supposed to serve everyone equally,” said U.S. Attorney McSwain. “Every person doing business with the government should be on notice that federal law enforcement is watching and we will hold you accountable if you try to gain special favor by paying bribes to public employees.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, and the City of Philadelphia Office of Inspector General, and is being prosecuted by Assistant United States Attorneys Sarah L. Grieb and Christopher Diviny.
South Carolina Man Charged with Filing False Tax ReturnRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Christopher Kauffman, 37, of Summerville, South Carolina was charged in a criminal Information with filing a false tax return.
According to the Information, Kauffman operated an accounting and tax preparation service in South Philadelphia in 2011 and 2012. In 2012, Kauffman deposited fees from his clients into his personal bank account. Some of the receipts included money Kauffman was supposed to use to pay the tax obligations of some of his clients. Instead, Kauffman used the money to pay for his personal expenses. He subsequently failed to report $160,347 in business receipts on his personal income tax return for the year 2012.
“Our tax system requires tax payers to truthfully report their income. Professional accountants and tax preparers know that better than anyone, and yet the defendant here breached that duty,” said U.S. Attorney McSwain. “He compounded his crime by using his clients’ money as his own. My Office will continue to aggressively pursue business people who operate in such an illegal manner.”
If convicted, the defendant faces a maximum possible sentence of three years imprisonment and a $250,000 fine.
The case was investigated by the Internal Revenue Service and the Treasury Inspector General’s Office for Tax Administration, and is being prosecuted by Assistant United States Attorney Richard P. Barrett.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defense Contractor to Pay $3.3M to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Ambu, Inc. (“Ambu”), will pay $3.3 million to resolve False Claims Act allegations that it manufactured products in China and Malaysia for sale to United States government agencies in violation of the Trade Agreements Act (“TAA”).
The settlement resolves allegations that, between December 2011 and March 2015, Ambu, a provider of medical supplies, submitted false claims to the Defense Logistics Agency (“DLA”) and the Department of Veterans’ Affairs (“VA”) for payment relating to Ambu’s sales of medical supplies. The Trade Agreements Act (“TAA”) requires that products sold to government agencies must come only from countries with which the United States has a trade agreement. While many countries qualify as TAA compliant countries, China and Malaysia do not. Ambu began manufacturing its products in these countries and selling them to government agencies in violation of the TAA. Indeed, over 80% of Ambu’s sales to DLA and VA under these contracts were from these non-compliant countries during the years covered by the settlement. Ambu executives certified that its products came from compliant countries despite allegedly knowing that most of the products were manufactured in non-compliant countries.
“Congress passed the Trade Agreements Act as an important part of the United States’ economic, diplomatic, and defense strategy,” said U.S. Attorney McSwain. “Contractors must follow the law and manufacture their products in TAA compliant countries, whether they like it or not. By investigating the allegations and reaching a settlement in this case, we have put all companies doing business with the United States government on notice that the TAA is an important law that must be respected.”
“The Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of the U.S. Defense Department’s (DoD) procurement process and ensuring that defense contractors comply with all applicable laws, such as the Trade Agreements Act (TAA),” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “The settlement agreement announced today is the direct result of a joint effort by the DCIS, Army CID, VA-OIG and the U.S. Attorney’s Office, to guarantee that medical supplies purchased by the DoD for members of the U.S. military and their dependents are manufactured in TAA compliant countries.”
This case was a cooperative effort among the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Defense Criminal Investigative Services, the United States Army Criminal Investigation Division and the Department of Veterans Affairs Office of Inspector General. For the United States Attorney’s Office, Assistant United States Attorney Colin Cherico and Auditor Dawn Wiggins handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
United States Files Suit Against Montgomery County Psychiatrist for Alleged Improper Opioid PrescribingRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that the United States filed a civil lawsuit against Elizabeth N. Kuh, a psychiatrist practicing in Montgomery County, alleging that she wrote improper opioid and benzodiazepine prescriptions for two of her patients. According to the complaint, Kuh wrote 30 opioid and benzodiazepine prescriptions to a husband and wife couple which lacked a legitimate medical purpose, were issued outside the usual course of professional practice, and many of which resulted in false claims to Medicare.
The complaint filed by the United States alleges that Kuh had no specialization or training in pain management, but she repeatedly prescribed the couple 80mg OxyContin and benzodiazepine controlled substances. The prescriptions were allegedly issued to the couple frequently by mail without an in-person physical examination, without urine drug screens or diagnostic testing, frequently not recorded in Kuh’s records, and frequently while the wife’s pain management and other conditions were managed by other providers. Kuh’s improper prescribing continued for years, even after she learned that the wife’s opioids could be harming her mental health and contributing to hallucinations.
The complaint alleges that this prescribing by Kuh only ended shortly after the husband committed suicide. Kuh had allegedly sent multiple prescriptions of OxyContin through the mail to the husband—once again, without physical examination, urine drug screen, diagnostic testing, or attempting less dangerous alternatives. Kuh allegedly responded by mailing additional OxyContin prescriptions to the wife at her request. The United States’ suit seeks damages for the alleged false claims to Medicare, civil penalties for the improper prescriptions, and injunctive relief to restrict Kuh’s controlled substance registration.
The United States and Kuh have entered into a Stipulated Order and Consent Judgment, subject to the Court’s approval, which would resolve the matter without litigation. If approved by the Court, the Judgment would require Kuh to pay $250,000 to the United States, prohibit Kuh from ever writing another opioid prescription, and would treat any future violation as contempt of court.
“While all healthcare providers have a duty to ensure the well-being of their patients, psychiatrists have the responsibility of treating and caring for particularly vulnerable patients,” said U.S. Attorney McSwain. “Psychiatrists who write opioid or benzodiazepine prescriptions to their patients must ensure that the prescriptions are appropriate and comply with federal and state law. My Office’s Affirmative Civil Enforcement Strike Force will continue to aggressively pursue improper opioid and controlled substance prescribing, hold providers accountable, and protect the citizens of the Eastern District of Pennsylvania.”
“All registrants, to include Dr. Kuh, have an obligation to prescribe controlled substances such as opioids and benzodiazepines solely for a legitimate medical purpose and within the course of professional medical practice,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Field Division. “The allegations against Kuh, who repeatedly prescribed these powerful drugs without any training in pain management and without conducting routine physical examinations, are deeply concerning.”
“Civil enforcement is an important tool to recover funds when physicians cause improper claims to the Medicare program,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG will continue to work with the Affirmative Civil Enforcement Strike Force and our other law enforcement partners to ensure the integrity of the Medicare program.”
This investigation was conducted with the Philadelphia Field Division of the Drug Enforcement Administration, the Pennsylvania Department of State’s Bureau of Enforcement and Investigation, and the Department of Health and Human Services Office of Inspector General. For the United States Attorney’s Office, Assistant United States Attorney Anthony D. Scicchitano and Auditors Dawn Wiggins and Denis Cooke handled the matter.
The complaint contains allegations only; there has been no determination of liability.
Large-scale Philadelphia Drug Trafficker Convicted at TrialRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Alan Womack, 44, of Philadelphia, Pennsylvania was convicted today at trial with conspiracy to distribute over 1,000 kilograms of marijuana and conspiracy to commit money laundering.
Between 2005 and 2016, the defendant was an integral part of a drug trafficking organization that arranged for thousands of pounds of marijuana to be shipped on tractor-trailers across the country, from Phoenix to Philadelphia, on a monthly basis. The organization also arranged for truck drivers and people known as “mules” to transport hundreds of thousands of dollars from Philadelphia to Phoenix so they could pay for bulk orders of marijuana supplied by a cartel in Mexico.
The defendant and nine co-defendants were charged in a second superseding indictment in 2017 for their roles in the conspiracy which included illegal acts such as organizing the marijuana shipments, renting storage lockers where bales of marijuana would be held before transport, smuggling large amounts of cash on tractor-trailers and on airplanes, operating stash houses in Philadelphia, and possessing illegal firearms to protect their illicit business. In total, the organization was responsible for smuggling more than 8,000 pounds of marijuana across the country, while making millions of dollars over the course of a decade.
At trial, the government presented evidence in the form of testimony from cooperating witnesses, civilian witnesses and law enforcement agents. The physical evidence included recorded phone calls, video surveillance, phone records, various business records and hundreds of pounds of marijuana seized during the course of the investigation.
“Womack and other members of this drug organization pumped huge quantities of marijuana into our community for years,” said U.S. Attorney McSwain. “Drug trafficking is an inherently dangerous business and the traffickers ultimately deliver destruction to our communities. Our office is determined to investigate and convict these criminals, and put them behind bars.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.