Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Delaware County Owner of Mortgage and Title Companies Sentenced to Five Years in Prison for Defrauding LendersRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that George Barnard, of Newtown Square, was sentenced today to five years in federal prison for defrauding lenders of almost $13 million. Barnard, 47, pleaded guilty to multiple fraud counts in April. He was also ordered to pay restitution in the amount of $12,774,941.89 and to forfeit $4,262,279.38 in proceeds he obtained through his commission of the offense.
From 2005 to March 2013, Barnard, who was one of the two owners of Capital Financial Mortgage Corporation ("CFMC") and also the owner of several title companies, defrauded banks out of almost $13 million dollars. Instead of using the money to fund mortgage loans for borrowers and pay off the borrowers’ existing mortgages, Barnard took the money for his personal benefit, including buying yachts, luxury cars, multi-million dollar beach homes in Avalon, New Jersey, and even paying the salary of a yacht captain.
“The defendant’s life of luxury came at the expense of those he defrauded,” said U.S. Attorney McSwain. “This was a sophisticated scheme that went on for almost a decade. The defendant will no longer need his personal yacht captain while he spends the next five years in a federal prison.”
There were numerous victims in this case. The defendant defrauded numerous lenders – lenders who loaned money to CFMC, lenders who bought mortgages written by CFMC, and lenders who loaned the defendant himself millions of dollars to buy his luxury beach homes and yachts. In addition to defrauding all of these lenders, the defendant also defrauded the IRS when he filed blatantly false tax returns that failed to declare millions of dollars in income and resulted in a total tax loss of at least $954,633. Finally, the defendant harmed over two dozen individual borrowers who turned to CFMC to obtain a refinance mortgage and who suddenly found their homes encumbered by not one but two separate mortgages – after the defendant failed to pay off their existing mortgages and then sold their new mortgages to other lenders.
The case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development, Office of Inspector General, and the Internal Revenue Service, Criminal Investigative Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Bucks County Stock Broker Sentenced to 10 Months in Federal Prison for Insider TradingRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Kevin Hamilton, 61, of Wyncombe, PA was sentenced today to 10 months in prison. He was also ordered to pay $635,000 in restitution and to forfeit $656,421.11 in proceeds resulting from his criminal activity.
Hamilton misused an investment banking client’s non-public information for the benefit of himself, his company, and other clients. Hamilton pleaded guilty in September, 2017 to two counts of securities fraud.
“The defendant was guided by pure greed,” said U.S. Attorney McSwain. “We should never lose sight of the fact that there are real victims in this case. The defendant’s schemes undermined the integrity of the securities markets and resulted in hundreds of thousands of dollars in losses to investors. This is textbook insider trading and a clear violation of the law. For this defendant and others like him, a prison sentence is the necessary consequence.”
First, in 2009 and 2010, Hamilton abused his position as a principal of the Philadelphia Brokerage Corporation (“PBC”) to engage in illegal insider trading in connection with the stock of BMP Sunstone Corporation. As one of three principals of PBC, Hamilton provided brokerage services to PBC’s clients while another principal was responsible for PBC’s investment banking business. In his role, Hamilton obtained access to material, non-public information about BMP Sunstone’s potential sale from the investment banking side of PBC’s business and then provided this inside information to some of his brokerage clients. In addition, Hamilton used this information to trade in his clients’ discretionary accounts with PBC and to make trades in his personal account. These activities breached PBC’s clear policies against insider trading and PBC’s duty to BMP Sunstone to keep this information confidential. As a result of this activity, Hamilton, his clients, and tippees reaped over $2.3 million in illegal profits.
The case was investigated by the Federal Bureau of Investigations, the Securities and Exchange Commission, and is being prosecuted by Assistant U.S. Attorneys Judy G. Smith and Patrick J. Murray.
Algerian Man Pleads Guilty to Conspiring with Pennsylvania Woman and Others to Provide Material Support to TerroristsRead the Press Release
Ali Charaf Damache, 53, a national of Algeria and citizen of Ireland, aka Theblackflag, pleaded guilty today to conspiracy to provide material support and resources to terrorists. Damache was indicted in 2011 in the Eastern District of Pennsylvania on one count of conspiracy to provide material support to terrorists and one count of attempted identity theft to facilitate an act of international terrorism. U.S. authorities extradited Damache from Spain in July 2017. Sentencing is scheduled for Oct. 30 before U.S. District Judge Petrese B. Tucker.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office.
“At a time when radical terrorist groups use the Internet to recruit new members and coordinate attacks against innocent people, the National Security Division remains committed to investigating all possible threats to our country aggressively — including those that take place online,” said Assistant Attorney General Demers. “Through close cooperation with our international law enforcement partners and the dedicated work of our agents and prosecutors, we have brought Damache to justice. This successful outcome has made the United States safer, and I applaud the women and men throughout the law enforcement community who made it happen.”
“Counterterrorism remains my office’s highest priority, and we will continue to prevent, disrupt, and defeat violent extremism at home and abroad,” said U.S. Attorney McSwain. The prosecutors and law enforcement agencies who brought Damache to justice in the United States work shoulder-to-shoulder, every day, to do just that. As this case shows, our resolve to dismantle clear and present dangers to our national security is stronger than ever.”
“Damache knowingly and willingly conspired with others to wage a violent jihad overseas, actively supporting the very ideals that allow terrorism to thrive worldwide,” said Assistant Director in Charge Sweeney. “For as long as there are those who commit to carrying out these intolerable acts, the FBI will resolutely continue to address counterterrorism as our number one priority. The JTTF, composed of all of our local and international partners, will continue to remain dedicated to mitigating the terrorist threat, both here and abroad.”
According to the indictment, Damache, his co-defendant Mohammad Hassan Khalid, and others conspired to support, recruit, and coordinate a terrorist cell, consisting of men and women from Europe and the United States, to wage violent jihad in and around Europe. Among those with whom Damache conspired is Colleen R. LaRose, who was a resident of the Eastern District of Pennsylvania at the time of the acts alleged in the indictment. LaRose, aka Fatima LaRose, aka JihadJane, was sentenced to 10 years in prison for her involvement in this conspiracy.
The indictment alleges that Damache, Khalid, LaRose, and others recruited men online to wage violent jihad in South Asia and Europe and recruited women who had passports and the ability to travel to and around Europe in support of violent jihad.
As part of his guilty plea, Damache has agreed to be sentenced to a 180-month term of imprisonment and has waived his right to appeal his sentence. Damache has further agreed that upon completing his prison sentence, he will be removed from the United States and returned to Ireland or, in the alternative, Algeria.
This case was investigated by the FBI’s Joint Terrorism Task Force in Philadelphia and the FBI Field Divisions in New York, Denver, Baltimore and Washington, D.C., and the IRS. The Justice Department’s Office of International Affairs and authorities in Spain provided substantial assistance. Authorities in Ireland also provided assistance in this matter.
The case is being prosecuted by First Assistant U.S. Attorney Jennifer Arbittier Williams and Assistant U.S. Attorney Sarah M. Wolfe of the Eastern District of Pennsylvania, and Trial Attorneys Matthew F. Blue and C. Alexandria Bogle of the National Security Division’s Counterterrorism Section.
Algerian Man Pleads Guilty to Conspiring with Pennsylvania Woman and Others to Provide Material Support to TerroristsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain, Assistant Attorney General for National Security John C. Demers, and Assistant Director in Charge of the FBI’s New York Field Office William F. Sweeney Jr. announced that an Algerian man pleaded guilty today to conspiracy to provide material support and resources to terrorists. United States District Judge Petrese B. Tucker presided over the proceeding.
Ali Charaf Damache, 53, also known as Theblackflag, was indicted in 2011 in the Eastern District of Pennsylvania on one count of conspiracy to provide material support to terrorists and one count of attempted identity theft to facilitate an act of international terrorism. United States authorities extradited Damache from Spain in 2017.
According to the indictment, Damache, his co-defendant Mohammad Hassan Khalid, and others conspired to support, recruit, and coordinate a terrorist cell, consisting of men and women from Europe and the United States, to wage violent jihad in and around Europe. Among those with whom Damache conspired is Colleen R. LaRose, who was a resident of the Eastern District of Pennsylvania at the time of the acts alleged in the indictment. LaRose, a/k/a Fatima LaRose, a/k/a Jihad Jane, was sentenced to 10 years in prison for her involvement in this conspiracy. The indictment alleges that Damache, Khalid, LaRose, and others recruited men online to wage violent jihad in South Asia and Europe and recruited women who had passports and the ability to travel to and around Europe in support of violent jihad.
As part of his guilty plea, Damache has agreed to be sentenced to a 180-month term of imprisonment and has waived his right to appeal his sentence. Damache has further agreed that upon completing his prison sentence, he will be removed from the United States and returned to Ireland or, in the alternative, Algeria, as Damache is a citizen of both countries.
“Counterterrorism remains my office’s highest priority, and we will continue to prevent, disrupt, and defeat violent extremism at home and abroad,” said U.S. Attorney William M. McSwain. The prosecutors and law enforcement agencies who brought Damache to justice in the United States work shoulder-to-shoulder, every day, to do just that. As this case shows, our resolve to dismantle clear and present dangers to our national security is stronger than ever.”
This case was investigated by the FBI's Joint Terrorism Task Force in New York and the FBI Field Divisions in Philadelphia, Denver, Baltimore and Washington, D.C., and the IRS. The Justice Department’s Office of International Affairs and authorities in Spain provided substantial assistance. Authorities in Ireland also provided assistance in this matter.
The case is being prosecuted by First Assistant U.S. Attorney Jennifer Arbittier Williams and Assistant U.S. Attorney Sarah M. Wolfe of the Eastern District of Pennsylvania, and Trial Attorneys Matthew F. Blue and C. Alexandria Bogle of the National Security Division’s Counterterrorism Section.
Bala Cynwyd, PA Man Sentenced to 87 Months in Federal Prison for Bribing Postal Workers to Deliver MarijuanaRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Tafari Riley, of Bala Cynwyd, was sentenced today to 87 months in federal prison for bribing two U.S. mail carriers to deliver packages containing marijuana to various locations in West Philadelphia.
From April through December 2016, Riley, 26, corruptly paid two United States mail carriers, co-defendants Steven C. Williams and Felicia Charleston, to deliver packages to Riley which were addressed to fictitious individuals and contained large amounts of marijuana. Through this scheme, Riley possessed and distributed a staggering 2,732 kilograms of marijuana. Charleston was sentenced in May to 10 months in prison. Williams is scheduled to be sentenced on August 1.
Law enforcement twice blocked Riley’s drug trafficking efforts. On Oct. 29, 2016, law enforcement intercepted and seized 158 pounds of marijuana at the post office before it had been delivered to Riley. Then, on September 15, 2017, agents seized 114 pounds of marijuana after it was delivered to Riley for distribution.
“The defendant bribed two federal employees to cultivate a booming marijuana business with no regard for the consequences of his actions,” said U.S. Attorney McSwain. “He abused the postal system, endangered those who lawfully use it, and corrupted two people entrusted with protecting it. Now he has received the punishment he deserves.”
The case was investigated by the United States Postal Service, Office of Inspector General (USPS-OIG), Homeland Security Investigations (HSI) Border Enforcement Security Taskforce (BEST), and the Pennsylvania Office of Attorney General, Bureau of Narcotics Investigations (BNI) and is being prosecuted by Assistant United States Attorneys Anita Eve and Tomika N.S. Patterson.
Convicted Armed Robber Sentenced to over 36 Years in PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that a Philadelphia man, convicted in March of multiple armed robberies and related offenses, was sentenced today to 441 months in prison.
On March 26, 2018, Nasir Thompas, 21, was convicted by a federal jury of two counts of Hobbs Act robbery and two counts of the use, carrying, and brandishing of a firearm during a crime of violence.
At trial, a 7-Eleven clerk testified that during one robbery, the defendant placed a pistol against the clerk’s forehead and threatened to kill him. A video from the Godfrey Food Mart showed the defendant pistol whipping a cashier when he failed to surrender cash as quickly as the defendant demanded. The robbery of the food mart took place in broad daylight in a store packed with people, including young children. The defendant's public assaults have left his victims shaken to this day.
“Time and again, this defendant used a gun to get what he wanted—terrorizing men, women, and children with zero regard for the havoc he wreaked,” said USA McSwain. “The steep sentence he received reflects this unfortunate reality. It also shows that if you menace a community, my office is coming for you and you will be in prison for a very long time.”
This case was investigated by the FBI and the Philadelphia Police Department. It is being prosecuted by Special Assistant U.S. Attorney Christopher Parisi.
Renee Tartaglione Sentenced to 82 Months in Federal Prison for Fraud Scheme that Looted Millions of Dollars from Nonprofit ClinicRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that the former president of a mental health clinic was sentenced today to 82 months in federal prison for perpetrating a multiyear fraud scheme through which the defendant stole over two million dollars that was supposed to be spent to help some of the most at-risk individuals in her community.
Over a year ago, on June 23rd, 2017, a jury found Renee Tartaglione, 62, of Philadelphia, PA, guilty on 53 counts of conspiracy, fraud, theft, and tax crimes. In addition to today’s sentence, U.S. District Court Judge Joel H. Slomsky previously ordered Tartaglione to forfeit $2.4 million in proceeds from her scheme and today ordered her to pay $2,076,024 in restitution to the Pennsylvania Attorney General’s Office, which will hold that money in trust until a successor charitable organization can be identified.
“The defendant funneled millions of dollars, meant to help economically disadvantaged people with mental health issues, into her own pockets for her own pleasure,” said U.S. Attorney McSwain. “Nonprofit organizations – especially those that provide important services to the disadvantaged – exist for the people they serve and not for the personal enrichment of their leaders. Tartaglione can contemplate that fact while she sits in prison, where she belongs.”
According to the evidence presented at trial, between 2007 and 2015, Tartaglione, as President of the Board of Directors of the Juniata Community Mental Health Clinic (“JCMHC”), defrauded and stole money from JCMHC through a series of actions designed to benefit her personally at the expense of the clinic. For example, Tartaglione purchased the building on 3rd Street in Philadelphia that housed the clinic and then proceeded to raise the rent repeatedly, causing the clinic’s rent for the 3rd Street building to increase from $4,500 per month to $25,000 per month.
Additionally, as of 2010, Tartaglione’s company, Norris Hancock LLC, acquired an interest in a building on 5th Street in Philadelphia, and Tartaglione caused the clinic to spend money to fix up that building. In December 2012, Tartaglione leased that building to JCMHC under a lease that called for rent of $35,000 per month for the first two years, and $75,000 per month for the next three years. The rent Tartaglione charged the nonprofit clinic at both buildings was wildly in excess of the market rent.
None of the JCMHC rent increases or the lease agreements were approved by JCMHC’s Board of Directors. Tartaglione and her co-conspirators created false and fictitious documents in an attempt to make the transactions appear legitimate.
In previously ordering the forfeiture of proceeds in April 2018, Judge Slomsky ordered the forfeiture to be paid from the proceeds of the sale of Tartaglione’s properties on 3rd Street and 5th Street in Philadelphia, as well as other properties, including two homes at the New Jersey shore.
"Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money as well as skirt their tax obligations," said Guy Ficco, Special Agent in Charge, IRS-Criminal Investigation. “It is time for Renee Tartaglione to face the consequences of her actions, which includes going to prison and being branded a convicted felon for the rest of her life.”
“I am pleased to partner with U.S. Attorney Bill McSwain to investigate, prosecute and root out public corruption wherever we find it,” said Pennsylvania Attorney General Josh Shapiro. “In this case, one of our legal experts provided testimony and will assist in the restitution process. This type of collaboration is key to protecting our democracy and ensuring honest government. I commend U.S. Attorney McSwain for his fine leadership.”
This case was investigated by the FBI, IRS Criminal Investigation, and the Philadelphia Office of the Inspector General, with additional assistance from the Pennsylvania Attorney General’s Office. The case was prosecuted by Assistant U.S. Attorney Bea L. Witzleben and Department of Justice Trial Attorney Peter Halpern.
Phony “Prince” Charged with Committing Child Sex OffensesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that a Philadelphia man was charged by indictment today with 16 counts of child sex offenses.
David Milliner, 49, was charged with four counts of enticement of a minor to engage in illicit sexual conduct, six counts of manufacture and attempted manufacture of child pornography, one count of transfer of obscene material to a minor, four counts of receipt of child pornography, and one count of possession of child pornography.
The indictment stems from Milliner’s alleged online sexual communications with at least four minor boys, and his inducing the boys to manufacture sexually explicit images of themselves and send them to Milliner. According to the indictment, as part of his scheme to sexually exploit the boys, Milliner allegedly falsely represented himself to be a wealthy prince by the name of Daniel David De’Rothschild, and claimed to be living in Beverly Hills, California. In reality, Milliner was unemployed and living in Philadelphia. Some of Milliner’s victims were as young as eight years of age.
If convicted, Milliner faces a statutory maximum sentence of life imprisonment, a 15-year mandatory minimum term of incarceration, 5 years up to a lifetime of supervised release, a $4,000,000 fine, mandatory restitution to his victims, and $76,600 in special assessments.
The case was investigated by the FBI, the Philadelphia Police Department, and the Wayland, Michigan Police Department. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
Remarks by U.S. Attorney William M. McSwain at the Philadelphia Inquirer Influencers of Law EventRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain was honored to be the keynote speaker today at The Philadelphia Inquirer Influencers of Law celebration. The event honored some of Philadelphia’s leading lawyers, recognizing their accomplishments in specialized practice as well as civic engagement and community service. U.S. Attorney McSwain’s remarks are below.
*****
Thank you very much for inviting me to speak here today. It is an honor to be with you. Thank you to the organizers of this event: The Philadelphia Inquirer, The Philadelphia Daily News, and Philly.com; Terrence C.Z. Egger, the Publisher & CEO of The Philadelphia Inquirer; and Jennifer Wolf, Director of Special Events. And thank you to reporter Jeremy Roebuck for that kind introduction.
The title of today’s event is: “Inquirer Influencers of Law: Celebrating Lawyers Who Set the Bar High.” In reviewing the list of honorees today, there is no doubt that these words are true. Whether in the fields of litigation or corporate law, real estate or bankruptcy, civil rights or government, each of you has left a significant mark, both on the profession of law and on the City of Philadelphia. You all have made a meaningful impact in your field of practice, as well as in the business community and as part of the civic fabric of our society. Philadelphia is a thriving business and legal community because of the people in this room. So please join me in giving all of the honorees a round of applause.
The City of Philadelphia has long been known for the civic engagement of its citizens. There are countless examples, but let me focus here on a few. First, this country was founded right here in our backyard by people who were committed to public discourse and using their resources and ideas to improve their community. As one of the Founding Fathers of the United States, Ben Franklin (1706-1790) was not only a politician, but an author, scientist, inventor, diplomat, philosopher, and printer. And that is not an exhaustive list of the many hats that he wore throughout his life. Today, he may be best known for signing both the Declaration of Independence and the Constitution, and perhaps his placement on the $100 bill. But Franklin was also responsible for laying much of the groundwork of what we think of as philanthropy and civic engagement today, founding numerous societies and public institutions, including the University of Pennsylvania, Franklin and Marshall College, the American Philosophical Society, and Pennsylvania Hospital, among others.
This tradition of giving back to the Philadelphia community has been carried throughout the past centuries. We celebrate today in a building named for John Wanamaker (1838-1922), who started what is considered to be the first department store in Philadelphia. But Wanamaker was not simply a successful businessman. He also served as the U.S. Postmaster General under President Benjamin Harrison, he was active in the arts, and he co-founded the Sunday Breakfast Rescue Mission, a homeless shelter and soup kitchen. The Sunday Breakfast Rescue Mission still stands today and has since expanded in the last century to include more services for the homeless. It is the third oldest running rescue mission in the United States and currently the largest emergency homeless shelter in Philadelphia.
And in a more modern day example, there is Kenneth Frazier, a former partner at Drinker Biddle & Reath, my old law firm, who is now the chairman and CEO of Merck. But Frazier has not limited his focus to the success of his law firm and later his company. Throughout his career, he has given considerable time, energy, and resources to representing and working for individuals all over the world. For example, he has taken four summer sabbaticals to teach trial advocacy in South Africa. He also represented, pro bono, an inmate on death row, James Willie “Bo” Cochran. Based on this representation, Cochran’s conviction was overturned after he spent 19 years on death row; he was then retried and found not guilty. There is no greater civic engagement than work such as this.
Recently, however, I worry that civic engagement has started to fundamentally change. Perhaps it is because we have so many options in our lives, or perhaps it is due to the rise in the dependence on technology, but civic engagement is sometimes not what it used to be. At times, it seems that people are more inclined to “like” a photo of an event on Facebook from the comfort of their own living room than they are to actually attend the event. There is simply no substitute for showing up and donating our time and energy to the causes and the people who need us, especially those who may feel powerless.
On that topic, I want to share a story with you about a case that helped to shape me as a lawyer and a person. During law school, I heard a news report about a case involving an Iranian man who was a former Intel employee who was being sued by Intel for sending six mass email messages to Intel’s employees at their place of work. In these emails, the individual, Kourosh Kenneth Hamidi, noted what he considered to be some of Intel’s abusive employment practices and invited Intel employees to visit his website. Intel sued Mr. Hamidi under a novel theory – arguing that the emails had “trespassed” on Intel’s servers and therefore Intel had an absolute right to censor his speech as soon as the electrons from his emails touched Intel’s private computers. It doesn’t take much imagination to see how dangerous that sort of precedent could be, given that the Internet is largely a collection of private computers.
I became interested in the lawsuit and wrote an article about it for a law journal while I was a second year law student. By the time the article was published, however, California’s Superior Court had already sided with Intel.
By the time of Mr. Hamidi’s appeal, I was interning for a nonprofit civil liberties group as a third year law student, and I wrote the substance of a brief filed by the nonprofit on behalf of Mr. Hamidi. Nevertheless, the California Court of Appeals did not agree with us, and Mr. Hamidi lost again.
After clerking for a year, I went into private practice here in Philadelphia. Mr. Hamidi needed a lawyer for a possible appeal to the California Supreme Court. I volunteered to work on the case, pro bono, and I poured myself into it. We successfully petitioned the California Supreme Court to take the case and, as a very junior lawyer, I had the privilege of arguing it. Fortunately, Mr. Hamidi finally won. The case established a national precedent for the rules for electronic trespass on the Internet. In my opinion, it was a victory for free speech and, even more importantly, a victory for the continued development of the Internet.
And it really did feel like a David v. Goliath battle. On the one side, there was Intel, a massive corporation, represented by an army of lawyers at Morrison & Foerster in San Francisco. On the other side, there was Mr. Hamidi, the fired and broke Iranian immigrant, represented pro bono by two baby lawyers, myself and my good friend, the late Greg Lastowka. Intel had already won two rounds of the fight and had every reason to believe that it would continue to steamroll through the courts.
When we first met with Mr. Hamidi, we found him to be a man who was standing up for his principles. But to Intel, he was just some weirdo loser from a far-off country. I certainly did not think that was true, and I still do not think it is true to this day. But even if it were true, so-called weirdos and losers need representation, too. And sometimes, with some help, they can accomplish incredible things that benefit us all in the long run. Even if, at the time, they aren’t very popular – and they certainly aren’t powerful. But as Albert Einstein once remarked, “What is right is not always popular and what is popular is not always right.”
As leaders of the legal community, hopefully we can leave a project, or a case, an office or a community, or anything we encounter, better off than we found it. As U.S. Attorney, I am blessed to lead an office of extraordinary individuals; prosecutors who are investigating complex cases and holding individuals and companies accountable for their conduct. Our Office pursues justice on a daily basis for everyone in our society, and particularly for victims who are often the most powerless and vulnerable among us.
But I am also challenging myself to aim higher and make improvements in the Office as best that I can. For example, I am committed to hiring more prosecutors. I am committed to bringing a greater number of cases in all areas that we prosecute. I am committed to strengthening the Office’s partnerships with law enforcement agencies throughout the Eastern District of Pennsylvania. I am committed to greater involvement and greater transparency with the community. I am committed to upholding the rule of law.
This kind of engagement with the community has a personal benefit as well. Yes, civic engagement should be expected, and it is what is best for our society. But it also benefits us as individuals. When interviewed earlier this year by The New York Times, Kenny Frazier spoke about his legal career. When asked about his representation of Cochran, the inmate on death row, Frazier said this: that his first impression of the case was that he was “much too busy to take on another piece of pro bono litigation.” But younger colleagues convinced him to take it on. And Frazier – the Harvard Law School graduate, the successful Drinker partner, and the current chairman and CEO of one of the world’s largest pharmaceutical companies – noted that winning Cochran’s freedom has been the high point of his entire professional career. The Cochran case is a cornerstone in Frazier’s life, just as the Hamidi case is in mine.
There is no doubt that you have all set the bar high – and you should be commended for that. But I also hope that you will not rest on your laurels. Who better to begin writing the next chapter of our City’s history than the people here today? You are the best of our profession and the City is counting on you.
To those of you who are honored here today, especially those who are receiving Lifetime Achievement Awards, I congratulate you. The recognition here today is based on outstanding work and is richly deserved. But later today, or perhaps later this week, when you go back to your firm, or back to your office, or back to your family, I encourage you to ask yourself: What more can I do? Is there a project, a cause, a case, that could use my help?
I say that knowing that everyone here is very busy. But I sincerely hope that you ask yourself that question and that you act on it. We are all depending on each other to accept that challenge and create a better tomorrow.
God Bless you, and God Bless the City of Philadelphia. Thank you.
Phony Attorney Who Operated Fraudulent Multi-State Law Practice Sentenced to 12 Years in Federal PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Leaford George Cameron, 65, of Burlington, New Jersey, was sentenced today to 12 years in federal prison followed by three years of supervised release in connection with his operation of a fraudulent multi-state law practice. Cameron was convicted in February 2018, of one count of mail fraud, two counts of wire fraud, and three counts of making false statements.
The government sought and obtained a substantial prison sentence to account for Cameron’s repeated and brazen behavior in posing, for decades, as a licensed attorney in numerous legal cases pending in federal and state courts across the United States. Cameron is not a lawyer and has never been a lawyer, but today’s sentence marks the third time he was caught impersonating one. In this most recent instance, Cameron operated his phony law firm while on probation for his 2014 conviction. He defrauded over 100 victims from several states and foreign countries and pocketed upwards of $200,000 in bogus attorney’s fees.
Cameron went to great lengths to trick his victims, courts, and opposing counsel into believing that he was a real lawyer operating a real law firm. He made up a law firm name, referring to the firm at different times as “The Law Offices of Cameron, Hamilton and Associates” and “The Law Offices of Bernstein, Cameron, Hamilton and Associates.” He used business cards, letters, and envelopes printed with the firm’s name and the names of make-believe lawyers in the firm, and he even filed court papers purportedly signed by make-believe lawyers. And, to establish his bona fides in court filings, Cameron used Attorney Identification Numbers stolen from licensed Pennsylvania attorneys and repeatedly stated, often under the penalty of perjury, that he was licensed to practice law. But when it came time to file state and federal tax returns, Cameron referred to himself as a “consultant,” “litigation specialist,” or “legal consultant,” not a lawyer, to avoid getting caught.
The government also presented evidence that Cameron provided sub-standard legal services to his victims, many of whom were immigrants and low-income people. Examples of his botched cases include one in which his client’s home was foreclosed and another in which a National Honor Society student was wrongfully deported.
“The evidence presented at trial proved, beyond a reasonable doubt, that this defendant was not only a phony lawyer, but also an incompetent phony lawyer,” said U.S. Attorney McSwain. “Lawyers take an oath to uphold and promote the rule of law, not subvert it. Far from a guardian of the law, Cameron is a crook whose fraud caused serious harm to his victims and the public’s trust in our legal institutions. For justice to prevail, people must be able to trust that their lawyer is, in fact, a lawyer; that the judge assigned to their case is, in fact, a judge; and that the legal system is, in fact, fair. Today’s sentence reflects the seriousness of Cameron’s conduct and the decades of disrespect he showed towards our legal system.”
“In betraying the trust of his clients through his rampant fraud schemes, Mr. Cameron ruthlessly exploited his victims for his own personal financial gain,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “HSI special agents and our law enforcement partners will continue to prioritize investigations of fraudsters like Mr. Cameron who undermine the integrity of our legal system and cause significant and long-lasting legal and financial complications for their victims. HSI Philadelphia would also like to recognize the support provided by U.S. Citizenship and Immigration Services in bringing this important case to a successful conclusion.”
The case was investigated by Special Agent Thomas Eyre of Homeland Security Investigations (HSI), within the U.S. Department of Homeland Security, with assistance provided by U.S. Citizenship and Immigration Services. The government was represented by former Assistant United States Attorney James Petkun at trial and Assistant United States Attorney Daniel Velez at sentencing.
Stock Defrauder Sentenced for His Role in “Pump and Dump” SchemeRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Colorado resident Frank J. Morelli, III, 62, was sentenced today to 84 months in federal prison, followed by three years of supervised release. Morelli previously pleaded guilty in federal court to conspiracy, wire fraud, and securities fraud charges.
Morelli was a significant player in a scheme involving six others to defraud investors and the Securities and Exchange Commission (SEC). As part of this scheme, Morelli and his fellow fraudsters took control of the majority of the stock in Supernova Resources, Inc. (ticker symbol SNRR), a publicly traded company that purported to manufacture interactive kiosks for, among other things, operation in national retail stores, when in reality no functioning kiosks had been placed in any well-known retail stores.
In order to be able to manipulate Supernova stock, Morelli and his fellow fraudsters filed false documents, used nominees, and put stock in offshore accounts to hide their stock ownership, all in an effort to deceive the SEC that SNRR stock was eligible to be traded when it was not. They also caused Supernova to issue false and misleading press releases and timed the issuance of these press releases with trades organized amongst themselves. This gave potential investors the false impression that the stock was increasing in value based on legitimate market activity when it was not. The fraudsters also agreed to bribe brokers in order to help carry out their scheme. The schemers had made several million dollars from the scheme and would have continued with their plans to manipulate the stock had the SEC not halted trading in SNRR.
“Hard working, innocent individuals who try to save money for the future are the ones who lose big when crooks like Morelli manipulate the markets with pump and dump stock schemes,” said U.S. Attorney McSwain. “Market manipulation also causes our economy to take a hit because the public cannot trust that the markets are free and fair. Thanks to the excellent work of the FBI, SEC, and prosecutors from this Office, Morelli’s days of profiting off of others’ misfortune, created by his own handiwork, are over.”
"All of the machinations that went into perpetuating this 'pump and dump' scheme show a clear disregard for the free market, and a willful disregard for the law," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "Mr. Morelli and his accomplices were scam artists, plain and simple, cashing in at the expense of unwitting investors without a second thought. The FBI is firmly committed to finding fraudsters who are selling a false bill of goods, and holding them accountable."
Morelli is the fifth of seven fraudsters to be sentenced in connection with this scheme. James Wheeler, the CEO and President of Supernova who controlled the company on behalf of the schemers, was sentenced to 63 months’ imprisonment. Daniel Starczewski, Morelli’s longtime partner, was sentenced to 30 months’ imprisonment. Carl Marciniak and Jeffrey Weinfurter, stock manipulators whom Morelli recruited early in the scheme, received sentences of 24 months’ and 36 months’ incarceration, respectively. The final two schemers, Louis Buonocore and Danny Colon, are scheduled to be sentenced later in 2018.
The case is being investigated by the Federal Bureau of Investigation, with the assistance of the SEC. It is being prosecuted by Assistant United States Attorneys Patrick J. Murray and Judy Smith.
Pennsylvania Man Indicted for Trafficking TurtlesRead the Press Release
A federal grand jury sitting in Philadelphia indicted David Sommers, 62, of Levittown, Pennsylvania for trafficking in protected diamondback terrapins. The indictment charges Sommers with smuggling turtles and submitting false records for a package shipped to Canada and four violations of the Lacey Act for trafficking over 3,500 turtles in interstate commerce.
The USFWS seized over 3,400 diamondback terrapin hatchlings from Sommers’ house in October while executing a search warrant. They were able to coordinate with biologists and return the hatchlings back into their New Jersey native habitat.
Photo Credit: U.S. Fish and Wildlife ServiceThe indictment alleges that throughout 2017 Sommers poached diamondback terrapins and their eggs from coastal marshes in New Jersey. He would then illegally sell the turtles in violation of the Lacey Act. The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits the sale of wildlife that had been taken in violation of law. The indictment also charges that in 2014, Sommers smuggled turtles to Canada and falsely labeled the package by claiming it contained a book.
Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, U.S. Attorney for the Eastern District of Pennsylvania William M. McSwain, and Acting Assistant Director Edward Grace of the Office of Law Enforcement for the U.S. Fish and Wildlife Service (USFWS) announced the indictment today.
“The distinctive coloration and pattern of the diamondback terrapin make it highly susceptible to illegal poaching and smuggling,” said Acting Assistant Attorney General Wood. “The Department of Justice will continue to work with its law enforcement partners to prosecute those who break our nation’s wildlife protection statutes for the sake of illegal profit.”
“Wildlife trafficking decimates many species worldwide and undermines the rule of law,” said U.S. Attorney William M. McSwain. “Through the ongoing collaboration between ENRD, USFWS, and my Office, we have worked hard to stop wildlife trafficking dead in its tracks. Today’s indictment reaffirms our commitment to ending this destructive practice.”
"It is one of the highest priorities for special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement to investigate transnational criminal organizations targeting our native wildlife species. 3,400 protected turtles, native to the United States were interdicted and returned to the wild with cooperation from other federal, state and local agencies to support imperiled wild populations,” said Acting Assistant Director Edward Grace of USFWS’s Office of Law Enforcement.
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, 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.
If convicted, Sommers faces a maximum sentence of 10 years incarceration on the smuggling charge and five years for the Lacey Act violations. The indictment also seeks to forfeit from Sommers all the turtles involved in the investigation.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The USFWS conducted the investigation with assistance from the New Jersey Division of Fish and Wildlife. The government is represented by Trial Attorney Ryan Connors of the Environmental Crimes Section and Assistant U.S. Attorney Joan Burnes of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Owner of Philadelphia Pain Management Clinic Pleads Guilty to Illegal Distribution of Oxycodone and XanaxRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Arthur Miriana, the owner of a Philadelphia pain management clinic, pled guilty today to conspiracy to distribute and distribution of oxycodone and alprazolam, commonly known as Xanax.
“This defendant significantly contributed to our region’s crippling opioid epidemic,” said U.S. Attorney McSwain. “The misuse of opioids is killing our citizens, and we have to do everything possible to stop the illegal distribution of these deadly drugs under the guise of ‘pain management.’ This defendant was operating nothing more than a corrupt pill mill.”
Miriana, 52, formerly of Medford, New Jersey, owned and operated Life-Line Health and Wellness, purportedly a pain management clinic located at 1341 North Delaware Avenue, in Philadelphia, Pennsylvania. Miriana recruited drug dealers and drug addicts to visit his pain management clinic.
These drug dealers and drug addicts paid $260 to $360 in cash for prescriptions for commonly abused controlled substances such as oxycodone and Xanax. Miriana was not a physician, so he hired Dr. Barbara Schneider to sign these prescriptions. Dr. Schneider did not perform medical examinations as required to lawfully prescribe controlled substances. She typically met with “patients” only as long as it took for her to sign the prescriptions. Additionally, Dr. Schneider gave pre-signed blank prescriptions to Miriana for use when she was not in the office.
Dr. Schneider previously pled guilty to conspiracy to distribute oxycodone and alprazolam, and she is scheduled to be sentenced on September 21, 2018.
The case was investigated by the Drug Enforcement Administration and the Department of Health and Human Services Office of the Inspector General, with assistance from the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Robert J. Livermore and Timothy M. Stengel.
Levittown Man Indicted for Trafficking Protected TurtlesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that a Levittown, PA man was indicted today for trafficking in protected diamondback terrapins. David Sommers, 62, was charged with smuggling turtles and submitting false records for a package shipped to Canada. He was also indicted for four violations of the Lacey Act for trafficking over 3,500 turtles in interstate commerce.
The indictment alleges that throughout 2017, Sommers poached diamondback terrapins and their eggs from coastal marshes in New Jersey. He would then illegally sell the turtles in violation of the Lacey Act, the nation’s oldest wildlife trafficking statute. The Lacey Act makes it a federal crime to break the wildlife laws of any state, tribe, or foreign country and then move or trade the wildlife across U.S. borders. The indictment also charges that in 2014, Sommers smuggled turtles to Canada and falsely labeled the package by claiming it contained a book.
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 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.
Along with U.S. Attorney McSwain, today’s indictment was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, and Acting Assistant Director Edward Grace of the Office of Law Enforcement for the U.S. Fish and Wildlife Service (“USFWS”).
If convicted, Sommers faces a maximum sentence of 10 years’ imprisonment on the smuggling charge and five years’ imprisonment for each of the Lacey Act violations (for a total of 35 years). The indictment also seeks to forfeit from Sommers all the turtles involved in the investigation.
This case was investigated by the USFWS 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.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former QVC Director Sentenced to 30 Months in Federal Prison for Million-Dollar Fraud SchemeRead the Press Release
PHILADELPHIA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced that James D. Falkowski, 42, of Buffalo, New York, was sentenced today to 30 months in federal prison.
Falkowski operated a multi-faceted fraud scheme while working as a director at QVC, Inc., an American cable, satellite, and broadcast television network and multinational corporation specializing in televised and internet home shopping based in West Chester, Pennsylvania. Falkowski previously pled guilty on March 20, 2018 to 11 counts of wire fraud and one count of conspiracy. At the sentencing hearing today, United States District Judge Michael M. Baylson also ordered that the defendant pay $832,138.55 in restitution.
“This defendant used his position, his access, and his employer to fund a lifestyle that would have otherwise been beyond his reach,” said First Assistant U.S. Attorney Williams. “Today’s sentence should serve as a deterrent to anyone who believes he can steal from his employer and successfully cover his tracks.”
Falkowski – a director from 2008 until his termination in 2013 – was responsible for enhancing QVC’s brand and reputation in the entertainment and fashion industries. Falkowski used his position at QVC to embezzle and fraudulently obtain from QVC over $1,000,000 worth of money, goods, and services, all without QVC’s knowledge or approval. These luxuries included hundreds of thousands of dollars of first-class travel, hotel and resort stays, spa treatments, dining at upscale restaurants, luxury clothing and accessories, and personal medical treatments, such as Botox treatment.
To hide his actions from QVC, Falkowski created fake invoices purporting to be from The Four Seasons Hotels, luxury car service companies, and other vendors in order to deceive QVC into paying for Falkowski’s fraud. Falkowski also enlisted the assistance of two QVC vendors to help him defraud QVC. Those two vendors – Los Angeles-based public relations agency “The Steinberg Group,” doing business as “dOMAIN,” and a New York City-based production management company – agreed to submit fraudulently altered invoices and bills to QVC in order to hide Falkowski’s embezzlement.
Additionally, Falkowski caused QVC to pay over $200,000 in private luxury chauffeur rides for himself and his associates, approximately $70,000 in payments to his personal creditors, as well as $59,500 in gift cards from American Express, Tom Ford, and Barney’s New York that Falkowski claimed were for distribution to talent, but which he instead used for himself.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Christopher J. Mannion.
Reputed Godfather of Payday Lending Sentenced to 168 months in Federal PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Charles Hallinan, 77, of Villanova, Pennsylvania, was sentenced today to 168 months in federal prison and ordered to pay a $2.5 million fine in connection with a scheme to collect hundreds of millions of dollars in unlawful debt obtained from high-interest loans. In November 2017, a federal jury convicted Hallinan of all 17 counts of criminal conduct the government charged in its superseding indictment: two counts of conspiracy to violate the Racketeer Influenced and Corrupt Organization Act (“RICO”); one count of conspiracy to commit mail fraud, wire fraud, and money laundering; two counts of mail fraud and aiding and abetting; three counts of wire fraud and aiding and abetting; and nine counts of international money laundering and aiding and abetting.
Hallinan, a former investment banker, was in the payday lending business from at least 1997 to 2013. Dubbed “the Godfather of payday lending” by the media during his trial, Hallinan owned, operated, and financed companies that issued small-amount, fixed-fee loans and collected debts on these loans in excess of $690 million. The loans were known in the industry as “payday loans” because borrowers often took them out to cover expenses and then paid back the principal, plus fees and interest, with their next paychecks or other steady income, such as social security payments. Hallinan made his illegal fortune by charging fixed fees and high interest rates far in excess of what was permitted under states’ usury laws.
“Charles Hallinan, a sophisticated, highly educated business person, was nothing more than a loan shark whose entire business model was built on trapping his victims in an endless debt cycle,” said U.S. Attorney McSwain. “For years, this defendant unabashedly preyed on those who could least afford it—struggling borrowers who made these loans oftentimes to pay for life’s necessities. He bet his lifestyle on the fact that we would not catch him. He lost that bet,” McSwain commented. “Now, it’s time for Hallinan to repay his debt with the only currency we will accept: his freedom and his fortune, amassed at his victims’ expense.”
The government proved at trial that Hallinan knew these loans violated state law, so he hid his personal involvement behind a series of “straw” lenders, including a federally-insured bank and three Indian tribes. Hallinan’s co-defendant, Delaware attorney Wheeler K. Neff, assisted Hallinan in structuring the scam and hiding Hallinan’s involvement. Neff was sentenced in May 2018 to eight years’ imprisonment for his part in the scheme.
“Charles Hallinan devised an ugly way to make a pretty penny,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “This multimillionaire lived large on the proceeds of his sleazy payday lending empire, built on the backs of people literally living paycheck to paycheck. Exorbitant fees and usurious interest rates were the name of the game, and Hallinan always walked away the winner. Well, not this time. Now he’s walking away in handcuffs, headed to federal prison.”
As part of the sentence imposed today, the government sought and obtained a significant forfeiture judgment against Hallinan, which will strip him of the trappings of success he acquired as a result of his unlawful conduct. The district court ordered the defendant to pay a forfeiture money judgment of just over $64 million as proceeds of the RICO conspiracy, and also ordered him to forfeit his interest in approximately $1.2 million in funds in 18 bank accounts; two Mercedes Benz vehicles; one Bentley vehicle; and his Villanova mansion.
“IRS Criminal Investigation is committed to using our forensic accounting skills to help unravel complex financial fraud and money laundering schemes,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means. Charles Hallinan’s prison sentence is a reminder that there are detrimental consequences for this type of criminal behavior.”
Daniel Brubaker, Inspector in Charge of the United States Postal Inspection Service, Philadelphia Division, praised the investigatory work behind the conviction: “This Office prides itself on investigating this type of criminal behavior. We too are proud to have worked with our law enforcement partners to aggressively investigate those who scheme to prosper at the expense of others.”
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Maria Carrillo.
The Meaning of America: Excerpts from U.S. Attorney McSwain’s Investiture RemarksRead the Press Release
PHILADELPHIA – On June 29, 2018, U.S. Attorney William M. McSwain took the Oath of Office as the 39th United States Attorney for the Eastern District of Pennsylvania in a public swearing-in ceremony at the United States Courthouse. The following is an excerpt of the remarks he delivered, published today in observance of the Independence Day national holiday.
May it please the Court, Chief Judge Stengel, family, friends, honored guests, thank you very much for sharing this day with me and for making it so special.
When I was going through the process of trying to become U.S. Attorney, sometimes casual acquaintances would ask me, with a certain puzzlement in their voice: why would you want to do that? You already have a really good job – why would you want all that work and scrutiny, on a government salary? What’s that going to do for you? I used to get the same type of question when I joined the Marines soon after I graduated from college. Why do you want to do that? You can do anything – why the Marine Corps?
My initial internal reaction to these types of questions would always be: Are you kidding me? Do I really have to explain that to you? Don’t you get it?
I can feel it right here in my heart. That’s why I joined the Marines. That’s why I became an Assistant U.S. Attorney. That’s why I wanted to be U.S. Attorney.
And when I walked into my new office for the first time on April 6, 2018, I knew I was in the right place. I sat down at my desk and I looked to my right, and I took in the sweeping view of Independence National Park, and in particular, Independence Hall and the Liberty Bell. That was a powerful moment – and I invite all of you here today, when you have the time, to come visit me in my office and experience that view for yourselves. It is remarkable. This country was founded literally steps from where I’m blessed to work every day.
But I should be able to do more than just feel why I wanted to serve as U.S. Attorney. I should be able to explain it – to anybody who asks, and particularly, to my family.
So here goes: I love this country. I love what she stands for. The history of the world is largely a history of tribal warfare, monarchy, grinding poverty and misery. And then . . . there’s America. America is the greatest force for good in the history of the world. It is a country founded on ideas. And not just any ideas, but the right ideas – ideas that have unlocked human potential and enabled human flourishing. Self-government, freedom, liberty, individual rights, freedom of speech, freedom of thought, freedom of religion, free markets, capitalism, economic opportunity, and equality under the law.
It is our legal system that protects these ideas and makes them more than just words on a piece of paper. It is our legal system that is the foundation and protector of everything that we hold dear in this country. I want to do my part to serve that system and thereby honor the ideals that make America what she is. So how do I do that? What is “my part”?
My part is to enforce the law – not to make the law (that is the job of the legislative branch) and not to interpret the law (that is the province of the judiciary), but to enforce the law. And to do so fairly and consistently and in a nonpartisan manner. My part is to respect and promote the rule of law, and in the process, to keep our community safe.
There is no shortage of opportunities to do this. The challenges are everywhere: international terrorism, domestic terrorism, cybercrime, violent crime, the opioid epidemic, violent drug organizations, gangs, organized crime, child exploitation, human trafficking, political corruption, securities fraud, financial fraud, fraud against the government, tax fraud, protecting the public fisc, protecting civil rights – and the list goes on and on. So the question for me, really, is this: How much energy can I summon to attack these problems? How much commitment do I have? How dedicated can I be? How much am I willing to sacrifice?
My chance to make a meaningful impact on these problems isn’t going to last forever. I’m very aware of that. I have a limited amount of time in this position. When I sit at that desk for the last time and look over Independence National Park, and Independence Hall, and the Liberty Bell, and I think about the meaning of America – I don’t want to have any regrets. I don’t want to think to myself: I could have done more, or I should have done more.
It is the work of my life to earn the respect of the people in this room. I will do everything in my power to be worthy of that respect. I promise that I will not let you down.
God bless you, and God bless the United States of America.
Liberian War Criminal Living in Delaware County Convicted of Immigration Fraud and PerjuryRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Jucontee Thomas Woewiyu, 72, of Collingdale, Pennsylvania, was found guilty by a federal jury today of immigration fraud and perjury charges. Woewiyu lied on his application for U.S. citizenship by denying that he advocated the overthrow of any government by force or violence and by denying that he ever persecuted any person because of membership in a social group or their political opinion.
Woewiyu is a founder and the former Minister of Defense, chief spokesperson, and negotiator for the National Patriotic Front of Liberia (NPFL), which was an armed rebel group led by Charles Taylor and committed to removing the Samuel Doe government forcibly from power in Liberia in the late 1980s and 1990s. On numerous occasions over the years, Woewiyu publicly confirmed his prominent position in the NPFL and advocated the overthrow of the Doe government by force or violence.
During the defendant’s tenure, the NPFL conducted a particularly heinous and brutal military campaign, characterized by torture, rape, forced sexual slavery, conscription of child soldiers, and murder. The jury heard evidence from almost twenty Liberians who lived through Liberia’s notoriously brutal first civil war, from 1989 through 1995. At trial, multiple individuals testified about being forced to become child soldiers under Woewiyu and the NPFL. Additionally, the jury heard testimony about NPFL soldiers cutting off victims’ body parts in front of Woewiyu, while others described checkpoints with skulls and severed heads on stakes (some still dripping with blood) and intestines for ropes, as well as the ethnically based massacre of a village at the hands of the NPFL.
“The defendant’s tenure as Minister of Defense for the NPFL was marked by almost unimaginable violence and brutality,” said U.S. Attorney McSwain. “He attempted to evade all accountability for his gruesome and horrific crimes by fraudulently obtaining U.S. citizenship. Due to the hard work and perseverance of our prosecutors and law enforcement partners, he has nowhere left to hide. Finally, this defendant has been brought to justice. I hope the conviction today can provide some comfort, however belated, to all of his victims and their families.”
Since approximately January 13, 1972, Woewiyu has had Legal Permanent Resident status in the United States. On January 23, 2006, Woewiyu applied for U.S. citizenship by submitting a Form N-400. On that form, and in his immigration in-person interview, Woewiyu swore and certified under the penalty of perjury that, among other things, he had never advocated (either directly or indirectly) the overthrow of any government by force or violence, and that he had never persecuted (either directly or indirectly) any person because of race, religion, national origin, membership in a particular social group, or political opinion.
After a three week trial, the jury began its deliberations on Monday, July 2. The jury returned a verdict today, finding the defendant guilty of two counts of fraudulently attempting to obtain citizenship, two counts of fraud in immigration documents, two counts of false statements in relation to naturalization, and five counts of perjury.
"Today’s verdict clearly demonstrates that this nation will never be a safe haven for human rights violators and war criminals," said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “HSI will not allow our country to be a place where individuals seeking to distance themselves from their pasts can hide or evade detection.”
The case was investigated by Homeland Security Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Linwood C. Wright, Jr. and Nelson S. T. Thayer, Jr.
Federal and Local Law Enforcement Working Together as Cleveland Terrorist Suspect Identified Philadelphia as Next “Big Target”Read the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that his Office is working together with the Federal Bureau of Investigation’s Philadelphia Field Office and the Philadelphia Police Department in connection with a criminal complaint filed today in Cleveland, Ohio, against Demetrius N. Pitts, aka Abdur Raheem Rahfeeq, aka Salahadeen Osama Waleed, 48, of Maple Heights, Ohio. Pitts was arrested Sunday by members of FBI’s Joint Terrorism Task Force and charged with one count of attempting to provide material support to al Qaeda, a designated foreign terrorist organization.
The complaint and supporting affidavit filed today in federal court in Cleveland, Ohio allege that Pitts spoke to an undercover FBI agent about planning an attack in downtown Cleveland on July 4 on behalf of al Qaeda. The supporting affidavit, also part of the public record, further alleged that Pitts told the same undercover FBI agent—in text message exchanges and during secretly recorded meetings—that he intended to travel to Philadelphia to conduct reconnaissance in furtherance of the next al Qaeda terrorist attack.
According to the supporting affidavit, Pitts told the undercover FBI agent that he knows Philadelphia best because it is his hometown; that Philadelphia would be the “big target”; and that the attack “will be done” on Labor Day. In a meeting on July 1, 2018, Pitts allegedly showed the FBI agent a map of Philadelphia; pointed out multiple landmarks as worthy targets, including the Federal Building and City Hall; and stated a truck bomb like the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage. When the undercover FBI agent commented to Pitts that people would die and body parts would be flying around, Pitts signaled no remorse, stating “I don’t care,” and “would be able to go to sleep.”
The U.S. Attorney’s Office in Philadelphia has been coordinating with both the FBI, Philadelphia Field Office and the Philadelphia Police Department to share all available information and assess any imminent threats. All law enforcement partners remain in constant communication about the case and will work together to determine what next steps will be taken in connection with the information gathered.
“Protecting this country from terror attacks is the first priority of the Department of Justice and the U.S. Attorney’s Office,” said U.S. Attorney McSwain. “This case is another stellar example of different agencies and prosecutors working together to keep our citizens safe. Our Office has been in constant communication with authorities in Cleveland, as well as the FBI and the Philadelphia Police Department. I want to particularly commend the FBI for its fast-paced and thorough investigation of this matter. The public can rest assured that authorities across this great country work every day, around the clock, to protect America and her residents from terrorism.”
“All across the country, each and every day, the FBI’s Joint Terrorism Task Forces are working fervently to detect and deter disturbing plots like this. Our Cleveland JTTF is to be highly commended for this important investigation and arrest,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The details of Pitts’ alleged plan of attack here are chilling. He saw this city, his hometown, as an attractive symbol—and the perfect target—because of Philadelphia’s central role in this nation’s founding. Philadelphia stands for freedom, for life, liberty, and the pursuit of happiness; ideals that are anathema to extremists like al Qaeda, and, it appears, Demetrius Pitts.”
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Investiture Ceremony Held for United States Attorney William M. McSwainRead the Press Release
PHILADELPHIA – At a formal investiture ceremony held today at the James A. Byrne United States Courthouse, U.S. Attorney William M. McSwain took the Oath of Office as the 39th United States Attorney for the Eastern District of Pennsylvania. Mr. McSwain was nominated by President Donald Trump on December 20, 2017, and unanimously confirmed by the United States Senate on March 20, 2018; he assumed office on April 6, 2018.
The Ceremonial Courtroom was filled to capacity with Mr. McSwain’s family, friends, and colleagues, as well as dignitaries from federal, state, and local government. Chief U.S. District Judge Lawrence F. Stengel presided over the proceedings. Guest speakers included Senator Patrick J. Toomey and Senator Robert P. Casey, Jr., both having recommended Mr. McSwain for the post; John J. Soroko, Esq., Chairman Emeritus, Duane Morris, LLP; Samuel G. Williamson, Esq., of Quinn Emanuel Urquhart & Sullivan, LLP; and the Honorable Marjorie O. Rendell, Senior United States Circuit Judge, U.S. Court of Appeals for the Third Circuit. Reverend William Golderer, President and CEO of the United Way of Greater Philadelphia, provided the invocation. After the guests provided remarks, Judge Rendell administered the Oath of Office to her former law clerk Mr. McSwain, who gave concluding remarks.
The speakers highlighted the solemnity of the Office Mr. McSwain has undertaken and the wealth of experience he brings to bear as he assumes the role of the region’s top prosecutor for one of the nation’s largest districts. As Senator Toomey observed, “Bill McSwain will make an outstanding U.S. Attorney for the Eastern District of Pennsylvania. In addition to his vast experience in both the private and public sectors, he is committed to the rule of law and dedicated to ensuring everyone is treated fairly under it.”
“I congratulate Mr. McSwain and his family on his investiture, and I commend him for his willingness to serve,” remarked Senator Casey. “U.S. Attorneys play a vital role in the fair, independent administration of justice in this country, and Pennsylvania will benefit from Mr. McSwain’s extensive legal and prosecutorial experience.”
As Mr. Soroko remarked, “How fortunate for the cause of justice and the rule of law that the arc of Bill McSwain’s career has now brought him back to the Office.”
Over the last 18 years, Mr. McSwain has built a diverse trial practice. Most recently, Mr. McSwain was a partner at the law firm of Drinker Biddle & Reath in its Philadelphia office, specializing in white collar criminal matters and complex business litigation. He previously served as an Assistant U.S. Attorney in the Criminal Division in the Office he now leads; while there, he was specially assigned to the Department of Defense in 2004 to be the lead staff investigator and Executive Editor of the “Church Report,” a worldwide examination of military interrogation techniques in the Global War on Terror, commissioned by Secretary of Defense Donald Rumsfeld and chaired by Vice Admiral Albert Church. Before his first tour of duty in the U.S. Attorney’s Office, Mr. McSwain began his legal career as a law clerk to Judge Rendell.
During his time in private practice, Mr. McSwain frequently volunteered his services in support of constitutional rights, often winning long-shot cases of national significance. For example, in Intel Corporation v. Hamidi, the California Supreme Court established the legal rules for trespass liability on the Internet, ruling in favor of Mr. McSwain’s client, Mr. Kenneth Hamidi. In Freethought Society v. County of Chester, PA, the U.S. Court of Appeals for the Third Circuit ruled that an historic plaque of the Ten Commandments could remain on the façade of the Chester County Courthouse, finding in favor of the County, Mr. McSwain’s client. And in Cradle of Liberty, Boy Scouts of America v. City of Philadelphia, the jury returned a verdict in favor of Mr. McSwain’s client, the Boy Scouts, which allowed the Scouts to remain in their historic headquarters building in Philadelphia.
Having worked with Mr. McSwain at the outset of his legal career, Judge Rendell offered a unique perspective on his capabilities to lead the Office: “I know Bill McSwain will lead the U.S. Attorney’s Office with same brilliance, balance, and professionalism that he has shown in his legal career to date. Once a terrific law clerk for me, he will surely be a terrific United States attorney for the people of our region.”
Prior to becoming an attorney, Mr. McSwain served as an infantry officer and scout/sniper platoon commander in the United States Marine Corps. In 1996, he deployed to the Persian Gulf region with the 13th Marine Expeditionary Unit (Special Operations Capable). While on deployment, he received the Navy Achievement Medal for joint operations with snipers from the Royal Jordanian Army. Mr. McSwain received the General William E. Potts award as the class honor graduate of the intelligence officer course at Fort Huachuca, AZ and was also an honor graduate of USMC Officer Candidates School and The Basic School in Quantico, VA.
Mr. McSwain was the 1987 class valedictorian of Henderson High School in West Chester, PA. He earned a B.A. in Economics, with honors, from Yale University in 1991. He earned his J.D. from the Harvard Law School in 2000, where he served as an editor of the Harvard Law Review. While at Harvard, he was a member of the winning team in the Ames Moot Court competition and received the George S. Leisure award as the Best Oralist in the Ames competition.
Mr. McSwain was raised in West Chester and resides there today with his wife, Stephanie, and their four children, Connor, Brady, Nancy, and Billy. He is the first Chester County native to hold the position of U.S. Attorney for the Eastern District of Pennsylvania.
“The Oath I took today reaffirms my commitment to the cause of justice for the people in the Eastern District,” McSwain commented. “It is the same Oath every Assistant United States Attorney in my Office takes on the first day on the job. And in that sense, we fully commit ourselves together to keep our communities safe.”
Allentown Lawyer Sentenced for His Role in Pay-to-Play Scheme with Allentown MayorRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Allentown attorney Scott Allinson, 55, was sentenced today to 27 months in federal prison. In March, a federal jury convicted Allinson on conspiracy and bribery charges. Evidence presented at trial showed that Allinson and others engaged in a pay-to-play scheme with Allentown Mayor Ed Pawlowski to trade campaign contributions for the City of Allentown’s legal work. United States District Judge Juan Sanchez accepted the government’s recommendation and ordered that Allinson be taken into the custody of the U.S. Marshals immediately following the sentencing proceeding.
The jury heard numerous recorded conversations in which Allinson revealed his personal financial stake in the conspiracy. One particularly telling conversation occurred on February 3, 2015, and involved Allinson, Michael Fleck, and Sam Ruchlewicz, two of Pawlowski’s political consultants at the time. In that meeting, Allinson pitched the idea that his firm would get legal work from the City and Allinson would receive billing credit for it, and in return, Allinson would ensure political contributions flowed to Mayor Pawlowski. Through secretly recorded tapes, the jury heard Allinson’s own words—unvarnished, raw, and explicit—and the jury found his guilt beyond a reasonable doubt:
“If I get a hundred percent of the [billing] credit that turns into money, [and] that goes out of my checkbook where you want it to go. So, if it [work] comes to me and I get billing credit, then I get the full stack of cash . . . to do with it what I need to do, annually. Do you know what I’m saying to you? If it goes to anyone else but me, it will get [expletive].”
Later in that conversation, Ruchlewicz and Allinson further nailed down the quid pro quo: Ruchlewicz advised that Mayor Pawlowski wanted a $10,000 contribution from Allinson for the year, and Allinson responded, “That’s easy.” Ruchlewicz then assured Allinson, “All the work will come to you. The work will be yours.” In several other recorded conversations, the jury heard further evidence that Pawlowski, Ruchlewicz, and Allinson understood what was at stake and understood the link between political contributions and legal work.
“This particular brand of criminal behavior is a cancer on our system of laws. Political corruption erodes the public’s trust in government and elected officials,” said U.S. Attorney McSwain. “It is our job to find it and stop it, which is exactly what we did in this case. This defendant cast aside the virtues of hard work and honest pay in favor of an easy buck, and it earned him a well-deserved spot in a prison cell.”
"Scott Allinson saw no problem scoring legal work through blatantly illegal means," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "Every dirty dollar that he funneled to Edwin Pawlowski as a quid pro quo deepened the culture of corruption in Allentown City Hall, and cheapened the role of the mayor's office. Cases like this only fuel the FBI's commitment to tackling public corruption."
The case is being investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation and Pennsylvania State Police. It is being prosecuted by Assistant United States Attorneys Michelle Morgan and Anthony Wzorek of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Two Healthcare Providers Agree to Pay over $100,000 to Settle Civil Claims of Improper Opioid PrescribingRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Stephen Humbert, D.O. and Raymond Ferraro, P.A., who both work in Havertown, Pennsylvania, have agreed to pay the United States a total of $112,500 to resolve allegations that they improperly prescribed opioids to one of their former patients.
The Drug Enforcement Administration (DEA) conducted an investigation regarding oxycodone and fentanyl that were prescribed to a deceased patient. The investigation revealed that Humbert and Ferraro collectively prescribed approximately 4,000 pills of oxycodone and over 200 patches of fentanyl to the deceased patient for over a year.
After the DEA launched the investigation, Humbert and Ferraro cooperated with federal investigators. In addition to the monetary settlement, Humbert and Ferraro have agreed to an administrative agreement with the DEA that requires regular reporting of their prescriptions for controlled substances and new policies for their opioid patients.
“Given the opioid epidemic that our society is facing, it is critical for practitioners to prescribe opioids with caution and discretion,” said U.S. Attorney McSwain. “While our Office appreciates the cooperation that these two healthcare providers gave in the midst of the investigation, this resolution serves as an important reminder to all healthcare providers that they must exercise caution and judgment in prescribing these dangerous substances.”
“The DEA will continue to investigate any report of a doctor or other registrant misusing or abusing their privilege to prescribe controlled substances,” said Jon Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “In addition to criminal sanctions, the DEA can impose administrative restrictions and pursue civil fines against registrants that are involved in the improper prescription of controlled substances as was done in this investigation.”
The case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Anthony D. Scicchitano handled the matter.
Philadelphia Pharmacy Employee Charged with Conspiring to Distribute Thousands of Oxycodone TabletsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that an indictment was unsealed today charging a Philadelphia pharmacy employee with conspiring to distribute controlled substances, including opioid painkillers.
Anmol Singh Kamra, 25, of Newtown Square, is charged with one count of conspiring with a doctor and another individual to distribute tens of thousands of tablets of oxycodone, a Schedule II controlled substance, in violation of federal drug law. Schedule II controlled substances have a high potential for abuse and may lead to severe psychological and physical dependence.
This case is part of a nationwide Department of Justice initiative targeting individuals who contribute to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics. According to the Centers for Disease Control and Prevention, approximately 91 Americans die every day of an opioid related overdose.
“We have to do everything in our power to make sure those who contribute to the destructive and deadly opioid crisis are held accountable,” said U.S. Attorney McSwain. “Too many Americans are dying. That’s why prosecuting those who traffic in opioids is a priority for the Department of Justice and for our Office.”
The indictment alleges the following:
Kamra worked at Campus Pharmacy at 4027 Market Street in Philadelphia, Pennsylvania. From about December 2012 through March 2016, Kamra filled hundreds of prescriptions for oxycodone knowing that the prescriptions were fraudulent.
Frank D. Brown, charged elsewhere, frequented a doctor’s office to obtain multiple sham prescriptions for controlled substances, including oxycodone, under both his own name and the names of others. Brown paid cash for these sham prescriptions. In December 2012, after purchasing the sham prescriptions, Brown began going to Campus Pharmacy, where Kamra would fill these sham prescriptions in exchange for cash.
Kamra, Brown, and the doctor used over 30 different names when filling and dispensing prescriptions at Campus Pharmacy. After obtaining the oxycodone tablets from Kamra, Brown sold the pills on the street to drug users in exchange for cash. Over time, Kamra provided oxycodone pills even when Brown failed to provide any prescription for those pills.
If convicted, Kamra faces a maximum possible sentence of 20 years’ imprisonment, a minimum of 3 years up to a lifetime of supervised release, a $1,000,000 fine, and a $100 special assessment.
The unsealing of today’s indictment was coordinated with the Criminal Division, Fraud Section’s Health Care Fraud Unit as part of its National Health Care Fraud Takedown. The case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration Diversion Unit. It is being prosecuted by Assistant United States Attorney Jessica Natali.
Leslie Acosta Sentenced to 7 Months in Federal Prison for Participation in Conspiracy that Looted Money from NonprofitRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Leslie Acosta, former Pennsylvania State Representative and former employee of the Juniata Community Mental Health Clinic, was sentenced today to seven months in federal prison by U.S. District Court Judge Joel H. Slomsky. Acosta was also ordered to pay $623,000 in restitution.
Acosta had previously pled guilty to conspiracy to commit money laundering. The charge arose out of Acosta’s agreement to cash unearned checks from the Clinic and give the cash to Renee Tartaglione, who at the time was President of the Board of Directors of the Clinic. Acosta agreed to cooperate with the government in its investigation of Tartaglione and testified at Tartaglione’s federal criminal trial in 2017.
“Today’s sentence recognizes the need to punish those who help others steal money from nonprofit corporations,” said U.S. Attorney McSwain. “It reinforces the important principle that nonprofit organizations, especially those that provide services to the disadvantaged, exist for the people they serve and not for the personal enrichment of their leaders. Our office will continue to aggressively pursue those who participate in schemes to steal from nonprofits.”
The case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service. It is being prosecuted by Assistant U.S. Attorney Bea L. Witzleben and Department of Justice Trial Attorney Peter Halpern.
Former Philadelphia Police Sergeant Sentenced for Soliciting BribesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that former Philadelphia Police Department Sergeant Brian Smith, 35, of Philadelphia, PA, was sentenced today to 15 months’ imprisonment, three years’ supervised release, a $10,000 fine, and a $200 special assessment. U.S. District Judge Gerald Pappert imposed the sentence. Smith previously pled guilty to two counts of soliciting a bribe.
According to court papers, Smith joined the Philadelphia Police Department (PPD) as an officer in June 2005, and was promoted to the rank of Sergeant in March 2016. Between December 2015 and November 2016, Smith solicited and accepted weekly bribe payments of $200 from a tow truck operator in exchange for lucrative accident location information. Smith would obtain this confidential law enforcement information from his PPD mobile data terminal and immediately send it by text messages to the tow truck operator in exchange for the corrupt payments. Smith also accepted monthly bribe payments of $800 per month from a second tow truck operator for such information.
Smith’s conduct unlawfully circumvented the PPD’s rotational towing policy. In 2008, the PPD instituted the policy, which requires patrol officers to notify Police Radio of any accident that requires vehicle towing. Police Radio maintains an accurate list of towing companies for an equitable rotation and distribution of towing assignments and calls a tow truck operator directly off the list. The City of Philadelphia instituted this rotational program as a public safety and consumer protection measure to stop wreck-chasing and to prevent accident victims from being taken advantage of by price-gauging tow truck operators. The program came in response to a series of highly publicized, violent encounters between tow truck operators who competed for the potentially lucrative work of towing cars damaged in accidents.
“Our efforts in this case illustrate that my Office is committed to stamping out corruption wherever it takes place,” said U.S. Attorney McSwain. “As a Sergeant in the Philadelphia Police Department, Smith repeatedly abused his position of trust. Today’s sentence makes plain that public officials who subvert the rule of law like this to line their own pockets will pay the price—and the only currency we accept will be their freedom.”
"It's grimly ironic, and beyond disappointing, that Brian Smith chose to game a system instituted in the interests of public safety and fair play," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "What he saw as an easy way to pad his paycheck on the sly, federal law deems clear corruption. Public servants, particularly in law enforcement, must be held to the highest of ethical standards. Those falling short, like former Sergeant Smith, must be rooted out—and firmly held to account."
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, Internal Affairs Division, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Re-entry Simulation Will Highlight Challenges Facing Those Returning Home from PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William McSwain announced today that his Office is co-hosting an outreach event aimed at educating criminal justice professionals and the public about the obstacles and challenges ex-offenders face when returning home from prison.
On Friday, June 29 at 9:00 a.m., as part of Re-entry Awareness Month in Philadelphia, several agencies are joining forces to host a prisoner re-entry simulation at the Strawbridge Building in Philadelphia. The event is hosted by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, U.S. Department of Health and Human Services Administration for Children & Families, Office of Child Support Enforcement, The MENTOR Program, and the National Workforce Opportunity Network. The simulation is intended to educate the public and criminal justice system professionals who assist with re-entry transition about the complex challenges prisoners face when they return home from prison. The simulation will provide a way for participants to stand in the shoes of individuals just released from prison, which in turn will help them better anticipate and meet their needs.
Titled Get Ready, Get Set, Get Out: A Day in the Life of a Returning Citizen, the program will ask participants to assume identities of ex-offenders and to participate in activities designed to simulate the first month of an individual’s release. Throughout the course of two hours, participants complete various tasks such as getting a driver’s license, reporting to probation, attending drug treatment and counseling, and attending to other basic life requirements to become a productive citizen and avoid re-incarceration.
The simulation is open to the public, and the details are provided below:
WHEN: Friday, June 29, 2018, from 9:00 a.m. to 12:00 p.m.
WHERE: The Strawbridge Building, Ben Franklin Conference Center, 801 Market Street, Suite 9101-9102, Philadelphia, PA 19107
Registration is required.
To register visit: https://www.eventbrite.com/e/get-ready-get-set-get-out-a-day-in-the-life-of-a-returning-citizen-tickets-46985480838.
Bucks County Couple and Telemarketing Firm Agree to Pay Penalty to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA - U.S. Attorney William M. McSwain announced today that the United States filed a civil complaint against John Paul Ryan and Mary Motz Ryan, a married couple in Bucks County, Pennsylvania, and a telemarketing company that they operate together, Scholars in Print. The civil complaint alleges that they violated the False Claims Act by shipping unordered textbooks to the Federal Bureau of Prisons and demanding payment. Also today, the government filed a joint motion asking the court to enter a stipulated order and consent judgment to resolve the matter. The proposed resolution will require the court’s approval before it takes effect.
The government’s complaint alleges that Scholars and Print, acting through the Ryans, made unsolicited telemarketing calls to Bureau of Prisons facilities throughout the country in an attempt to sell textbooks for use in prison libraries. According to the complaint, most facilities said no, but Scholars in Print shipped textbooks anyway and then sent unpaid bills to collection agencies. When confronted, Scholars in Print allegedly stated that the facilities had ordered the textbooks during the telemarketing calls. The complaint alleges that those assertions were false. Other times, Scholars in Print allegedly offered to send the facilities a free sample, and then invoiced them—a classic bait and switch.
The complaint contains several examples of false claims. In one of them, a Bureau of Prisons official allegedly refused to purchase textbooks from Scholars in Print during an unsolicited telemarketing call. John Ryan allegedly hung up on him, prompting the official to email the company to confirm his refusal to order textbooks. A few weeks later, the company allegedly sent textbooks to the same official. During a subsequent call to report the delivery, Ryan allegedly described himself, falsely, as “Dr. Ryan, one of the volunteers here,” and falsely claimed to be “reading from a conversation” presumably documenting that the official had ordered the textbooks.
On another occasion, Ryan allegedly identified himself as Edward Teach—more famously known as Blackbeard, the eighteenth century pirate—and offered a free sample of textbooks to a prison psychologist. The complaint alleges that Ryan then invoiced the prison $331 for these “free” textbooks. According to the complaint, Ryan told investigators that he sometimes identified himself as Edward Teach during telemarketing calls because “you don’t want people to know your name.”
On still another occasion, Scholars in Print demanded that a prison facility pay $680.90 for textbooks that the facility did not order. This demand prompted the facility to send a letter asking the company to stop shipping books for review. Scholars in Print then sent the same facility additional books and an invoice demanding another $435.00.
If approved by the court, defendants will pay a civil penalty of $75,689 for submitting false claims. They will also refrain from marketing products to any federal agency through unsolicited communications or telemarketing.
“The False Claims Act is a powerful tool to stem the tide of fraud against the government, and the allegations in this complaint fall squarely in that category,” said U.S. Attorney William M. McSwain. “Those who try to cheat a federal agency out of taxpayer money will not get away with it, and this case demonstrates our Office is ready, willing, and able to put a stop to this kind of behavior.”
“The OIG is committed to investigating individuals who attempt to defraud taxpayers and the Bureau of Prisons. We will work tirelessly with our law enforcement partners to ensure those who try to cheat the system are held accountable,” stated Lewe F. Sessions, Special Agent-in-Charge of the U.S. Department of Justice Office of the Inspector General’s Fraud Detection Office.
Assistant U.S. Attorney Michael S. Macko handled the case, which arose from an investigation led by the U.S. Department of Justice, Office of the Inspector General.
The allegations against the Ryans and Scholars in Print are allegations only and not findings of liability.
Allentown Lawyer Sentenced to Prison for Tax FraudRead the Press Release
Reading, PA – U.S. Attorney William M. McSwain announced that Douglas M. Marinos, 56, a licensed attorney, was sentenced on June 22 to serve one year in federal prison for tax fraud.
On January 18, 2018, Marinos pled guilty to one count of willfully failing to collect, truthfully account for, and pay over to the United States taxes owed by his Allentown law firm. He was sentenced by U.S. District Judge Jeffrey L. Schmehl.
From 2008 to 2015, Marinos misrepresented to his firm’s employees that money he had withheld from their paychecks had been paid to the IRS to fund their Social Security and Medicare contributions.
In total, Marinos failed to pay $229,548.92 in required payroll taxes on behalf of his firm.
“When he entered the practice of law, the defendant swore to ‘obey and defend’ the laws of Pennsylvania and the United States,” said U.S. Attorney McSwain. “Instead, the defendant abused the trust placed in him by his employees and broke the law by using this money to pay his own creditors.”
The case was investigated by the IRS Criminal Investigation Division and prosecuted by Assistant United States Attorney Sean P. McDonnell.
Three Charged in Separate Illegal Re-Entry CasesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced three separate indictments charging individuals with illegally re-entering the United States.
Efrain Tellez-Perez, a/k/a “Efrain Tellez,” of Philadelphia, PA, was charged by indictment yesterday with illegal reentry after deportation. The indictment alleges that on or about May 14, 2018, Tellez-Perez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about January 29, 2010, March 6, 2011, and March 11, 2011.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Wilken Rahames Antigua-Diaz, a/k/a “Christopher Serrano,” of Philadelphia, PA, was charged by indictment yesterday with illegal reentry after deportation. The indictment alleges that on or about May 11, 2018, Antigua-Diaz, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported and removed from the United States on or about February 23, 2011 and May 29, 2013.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
Antonio Frutos-Zavala, of Reading, PA, was charged by indictment yesterday with illegal reentry after deportation. The indictment alleges that in March, 2018, Frutos-Zavala, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about November 15, 1998, March 28, 2008, March 26, 2008, and November 8, 2017.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Josh A. Davison.
If convicted, each defendant faces a maximum possible sentence of two years.
Remarks by U.S. Attorney William M. McSwain at the Delaware Valley Intelligence Center Regional RoundtableRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain was honored to speak today at the Delaware Valley Intelligence Center Regional Roundtable in Philadelphia, PA. The Delaware Valley Intelligence Center (DVIC) was established to create cross-jurisdictional partnerships between agencies and serves as the informational fusion center for the Delaware Valley region. U.S. Attorney McSwain’s remarks are below.
*****
Thank you all for gathering here today. I would especially like to thank Inspector Walter Smith, Executive Director of the Delaware Valley Intelligence Center, Philadelphia Police Department, and Stacy Irving, Senior Advisor, Homeland Security Planning & Strategic Partnerships, Delaware Valley Intelligence Center, Philadelphia Police Department, for inviting me to speak. It was not too long ago that many of us were gathered in this same place for the 2018 Anti-Terrorism Advisory Council Conference, which was an in-depth and highly educational program that helped all of us to further our collective mission of keeping our country safe.
Safeguarding our national security is critically important to the U.S. Attorney’s Office, just as it is for everyone here today. It is also, without question, the number one priority of the U.S. Department of Justice. The Department of Homeland Security has prioritized state and major urban area fusion centers such as this one, because they know that intelligence collection and information sharing are critical in this fight. That is why the Delaware Valley Intelligence Center is so important. This cross-jurisdictional partnership between local, state, and federal agencies, as well as private sector participants, ensures that the Delaware Valley region has a community-focused public safety strategy. Everyone benefits from a continuous flow of intelligence and information to assist public safety field operations.
Our region has already seen firsthand how these relationships can help. For example, on May 12, 2015, an Amtrak Northeast Regional Train derailed after departing Philadelphia on its way to New York, which was the worst train disaster that our area has experienced in decades. Moments after the crash, emergency calls went out across the area, and scores of first responders from federal, state, and local law enforcement authorities responded. There is no doubt that authorities knew who to call that day because of relationships built through groups like this one.
We can only succeed with the collaboration and partnership of each of you. And those partnerships cannot be built in a day. We all need to work together when times are good so that we know what to do and who to call when they are not. To this end, one of my first initiatives after I became U.S. Attorney in April was to visit the nine counties that make up the Eastern District of Pennsylvania and meet with their district attorneys and local law enforcement leaders. It is a priority of my Office to continue to foster these relationships and always keep our lines of communication open. These personal connections are crucial to successful prosecutions everywhere across this region.
Additionally, I want law enforcement to know how much my Office appreciates them. The first public speech that I gave after becoming U.S. Attorney was to the Philadelphia Police Department leadership and to recruits at the Police Academy. As I said to them, no prosecutor has ever prosecuted any case without the help of an outstanding law enforcement partner, whether that is at the federal, state, or local level. There are no greater heroes than those in law enforcement who have dedicated their lives to keeping our communities safe – to the point that they’re willing to risk their own lives to do it. And there is no better way to support law enforcement than to make sure that they have the assistance needed to protect our community from terrorism.
I am aware of some of the difficulties in prosecuting national security cases. There are many law enforcement partners to consult and so many levels of review in the Department of Justice that it often may feel difficult to see a prosecution through to its natural conclusion. I want to share with you that the Department of Justice is working to eliminate some of those hurdles. DOJ has put new procedures in place to streamline the review process to make sure that if a national security prosecution is the correct approach, DOJ will have the most efficient process in place to pursue these significant cases.
My Office has had great success in the past few years in our efforts to prosecute national security cases and hold people accountable for terrorism, violations of the Armed Export Control Act, and cybercrime. For example, Keonna Thomas, a Philadelphia woman who was charged and pled guilty to one count of attempting to provide material support to a terrorist organization, was sentenced to eight years in federal prison. Thomas plotted to travel to Syria to join the Islamic State and told another individual that taking part in a martyrdom operation “would be amazing.” This case, prosecuted by First Assistant U.S. Attorney Jennifer Williams and a colleague from the Counterterrorism Section in the Justice Department’s National Security Division, was investigated by the FBI’s Joint Terrorism Task Force and the Philadelphia Police Department.
And many terrorism cases involve agency partnerships not only at home, but also abroad. Ali Charaf Damache, also known as “Theblackflag,” was indicted in the Eastern District of Pennsylvania in 2011 and extradited from Spain last year for his involvement in conspiring to provide material support and resources to terrorists. He is currently awaiting trial. Two of his co-conspirators, Colleen LaRose (also known as “Jihad Jane”) and Jamie Paulin Ramirez (also known as “Jihad Jamie”), have previously pled guilty and are serving ten years and eight years in prison, respectively. Again, First Assistant U.S. Attorney Williams prosecuted these cases in conjunction with the Counterterrorism Section of the Justice Department’s National Security Division, the Office of International Affairs in the Justice Department’s Criminal Division, the FBI’s Joint Terrorism Task Force in Philadelphia, the FBI Field Divisions in New York, Baltimore, Washington D.C., and authorities in Ireland and Spain. Sometimes it takes many hands and many minds across the globe to get the job done right.
Our National Security section in the U.S. Attorney’s Office does not only focus only on traditional terrorism cases. For example, we uphold the Arms Export Control Act, which prohibits the export of high tech military technology that is critical to the national security and foreign policy interests of the United States. We must keep important technology out of the hands of potential adversaries. In United States v. Baltutski, we charged a group of individuals who conspired to purchase and unlawfully export night vision devices to Belarus. Baltutski arranged for hundreds of thousands of dollars to be secretly wired, via offshore shell companies, to purchase these items, pay for shipping, and pay his network of buyers. For his efforts, Baltutski received a sentence of 15 years’ incarceration, which is one of the longest sentences under the Armed Export Control Act in U.S. history. This case was prosecuted by Assistant U.S. Attorney Robert Livermore and colleagues from DOJ’s Organized Crime and Gang Section, and the National Security Division, and was investigated by the U.S. Immigration and Customs Enforcement, Homeland Security Investigations and the FBI. That case took extensive and dedicated investigative work to result in such a significant sentence.
We also continue to defend ourselves from cybercrime attacks. More and more criminals are exploiting the convenience and anonymity of the Internet to commit crimes and cause serious interruptions and destruction across the United States and around the world. It is my belief that cybercrime will only become more sophisticated, as technology advances and criminals seek to invade and destroy our financial markets, electrical power grids, emergency response systems, and nuclear plants, often from the comfort of their own homes. In the last few years, the U.S. Attorney’s Office has successfully prosecuted numerous cybercrimes, including individuals who hacked into everything from a gas company’s computers, to systems that read utility meters remotely, to Comcast’s server. We are dedicated to continuing our efforts in this field.
And this really just scratches the surface. As you all know, so many of our cases and investigations are not currently public. And many matters do not end in prosecution, but instead produce new investigative leads and sources of information that can be equally (if not more) valuable than a case in the court system.
As we have been sadly reminded by recent events, not all terrorism is international. Far too often in this country, we as a nation have grieved the brutal murders of innocent people as a result of mass shootings and domestic terrorism. Americans should be safe from such terror, no matter who or where they are. Studying in school or going to work, worshiping at church or cheering for friends at a marathon, relaxing at a movie theater or enjoying an evening at a night club – all of these activities should be safe-havens for every American. But as we know, places like these have turned into horrific crime scenes over the past few years where innocent lives have been lost. One more mass shooting is one too many.
The U.S. Attorney’s Office takes seriously every threat of gun violence in our community and will do everything in our power to prevent tragedy from occurring. As but one example, we recently charged An-Tso Sun by federal complaint with possessing ammunition while being in the United States on a nonimmigrant visa, which is a felony under federal law. According to the complaint, on or about March 26, 2018, Sun told a fellow student, “Hey, don’t come to school on May 1st . . . I’m going to come here armed and shoot up the school.” Then he added: “Just kidding.” But this was no laughing matter, as the complaint alleges that multiple items were recovered from Sun’s bedroom, including stockpiles of ammunition, and various firearm accessories and shooting equipment. This case is on-going.
I am proud to say that this was another example of numerous investigative and operational bodies working together. From the student who first reported the alleged threat, to the Upper Darby Police Department and the Delaware County District Attorney’s Office, to the Department of Homeland Security, Homeland Security Investigations and my Office, we worked together to successfully prevent a potential school tragedy.
But we cannot do it alone. I recently addressed the media about the An-Tso Sun case and I urged all parents and citizens to take notice of what is going on around them. We need to remind people that law enforcement is not the first line of defense. That duty belongs to our citizens. They are the ones who will see the first clues that something is amiss in their everyday lives. They are the ones who might get a bad feeling about something at their schools, in their offices, during their social activities, and who will need to pick up the phone. As a group, we need to continue to encourage people to make that call. There are too many stories of parents, of teachers, of neighbors, who belatedly say they “always knew something was wrong” about someone in their lives, but they didn’t sound the alarm and instead chose to stick their heads in the sand. We need them to make the call.
When they do make the call, they will call one of us. And because of the partnerships built through cooperative intelligence centers like DVIC, we will be ready.
Thank you for your partnership with my Office, thank you for all that you do for our community, and God Bless you.
Camden, New Jersey Woman Charged with Theft of Public FundsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced than an indictment was unsealed today charging Concepcion Cedano, 48, of Camden, New Jersey with one count of criminal conspiracy to commit theft of public funds and one count of theft of public funds.
According to the indictment, Cedano and her co-conspirators engaged in a scheme to steal public money by obtaining federal refund checks fraudulently caused to be issued by the United States Treasury. Cedano deposited at least 60 fraudulent refund checks into five bank accounts under her control, resulting in a theft of $298,779.52 from the United States government.
If convicted, the defendant faces a maximum possible sentence of 15 years of imprisonment, two years of supervised release, a fine of $500,000, and a special assessment of $200.
The case was investigated by Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorney Priya De Souza.
Philadelphia Man Indicted on Firearms and Drug ChargesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Salim Davis, 33, of Philadelphia, was charged today by indictment with one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute a controlled substance, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to the indictment, on December 29, 2017, Davis was in possession of a Smith & Wesson, Model SD40VE, .40 caliber pistol, loaded with 10 live rounds of ammunition, as well as Alprazolam, a Schedule IV controlled substance. The indictment alleges that the defendant possessed the Alprazolam, also known as Xanax, with the intent to distribute it, and that he possessed the firearm in furtherance of the drug trafficking crime.
If convicted, Davis faces a maximum term of life imprisonment in prison, with a mandatory minimum of five years’ imprisonment, up to five years of supervised release, a $750,000 fine, forfeiture, and a $300 special assessment.
The case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Man Charged in ‘Bait-and-Switch’ Scheme with Canadian CoinsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that James Franklin Hill, 55, of South Orange, New Jersey, was charged today by indictment with one count of wire fraud in connection with a scheme that involved a classic “bait-and-switch” scam with a set of 24 Canadian Gold Maple Leaf coins.
According to the indictment, Hill allegedly responded to Craigslist advertisements posted by coin dealers and collectors located in Pennsylvania, Delaware, New Jersey, New York, North Carolina, Florida, Tennessee, Ohio, Illinois, Wisconsin, Arizona, and California. The indictment alleges that Hill presented the coin dealers and collectors with the opportunity to purchase a set of 24 Canadian Gold Maple Leaf coins at prices ranging from $19,000 to $30,000. Hill allegedly showed a genuine set of coins to the purchasers, and then switched the genuine set of coins with a fake set before the transactions were concluded. In November 2016, Hill allegedly sent text and electronic messages to a purchaser in Oxford, Pennsylvania before selling the fraudulent coins to the purchaser. The indictment alleges that between 2010 and 2017, Hill allegedly defrauded his coin purchasers of more than $250,000.
If convicted, the defendant faces a maximum possible sentence of 20 years’ imprisonment, three years of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Oxford Borough (Pennsylvania) Police Department, and other law enforcement agencies in Delaware, New Jersey, New York, North Carolina, Florida, Tennessee, Ohio, Illinois, Wisconsin, Arizona, and California. Based on the evidence, authorities believe there may be additional victims who have not yet been identified. Anyone with information about this matter is encouraged to contact the Federal Bureau of Investigation in Newtown Square, PA at (610) 353-4500. Callers may remain anonymous.
The case is being prosecuted by Assistant United States Attorney Anita Eve.
Pottstown Man Charged with Distributing Child PornographyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that an indictment has been unsealed today charging Calvin Roeder, 31, of Pottstown, Pennsylvania, with two counts of distribution of child pornography and one count of possession of child pornography.
The indictment alleges that between June 2, 2017 and June 23, 2017, Roeder distributed images of child pornography, and on August 24, 2017, he possessed images of child pornography.
If convicted, the defendant faces a maximum possible sentence of fifty years in prison and a mandatory minimum sentence of five years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”), and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Deputy Attorney General Rosenstein Recognizes Four Eastern District of Pennsylvania Employees at Awards CeremonyRead the Press Release
WASHINGTON, DC—United States Attorney William M. McSwain announced today that three Assistant United States Attorneys and a forensic analyst from the Eastern District of Pennsylvania were recognized for their distinguished public service at the 34th Annual Director’s Awards Ceremony. U.S. Attorney McSwain, along with honorees Assistant United States Attorneys David Ignall, Mary Beth Leahy, David Troyer, and forensic analyst Cyndi Fusco, were invited to Washington D.C. for the event held on June 15 in the Great Hall at the Robert F. Kennedy Department of Justice Building. Deputy Attorney General Rod Rosenstein and Director James Crowell, IV, of the Executive Office of the U.S. Attorneys (EOUSA), presented the awards.
“Every day, Dave, Mary Beth, Dave, and Cyndi serve the people of our District by bringing to bear their superior abilities and steadfast dedication in pursuing justice. I was gratified that EOUSA spotlighted my colleagues’ work in this meaningful way, and I know I speak for everyone when I say this office is very proud of their achievements.”
These AUSAs were recognized for their significant contributions on two specific cases, and Ms. Fusco was honored for her outstanding work as a forensic analyst in the Criminal Division, as follows:
United States v. Brian Hartline and Barry Bekkedam – AUSA David Ignall
AUSA Ignall successfully prosecuted this fraud conspiracy case culminating in a nationally significant four-week trial of Brian Hartline and Barry Bekkedam, co-founders of NOVA Bank. Hartline and Bekkedam were convicted for attempting to defraud the Troubled Asset Relief Program (TARP) established to bring the country out of the 2008-09 fiscal crisis.
During the relevant time period, Hartline served as the Chief Executive Officer and President of NOVA Bank, and Barry Bekkedam served as NOVA Bank Board Chairman. Bekkedam also owned and operated a financial advisory company, Ballamour Capital Management, and advised Ballamour clients to invest in NOVA Bank. This complex case involved an attempt to defraud the TARP out of more than $13 million through a scheme to make NOVA bank appear more financially sound than it was so that NOVA would be eligible to receive the TARP funds. Both defendants were convicted of conspiracy to defraud the United States, major fraud against the United States, and making false statements to government regulators and were sentenced to prison.
United States v. William O’Brien et al. – AUSA Mary Beth Leahy and AUSA David Troyer
AUSA Leahy and AUSA Troyer successfully prosecuted William O’Brien, III, a doctor of osteopathic medicine who operated a “pill mill” through multiple medical practices in the Philadelphia area. O’Brien used members of the Pagans Outlaw Motorcycle Gang to run his offices, recruit fake customers, enforce collections, and distribute large quantities of oxycodone, methadone, and other drugs to drug dealers and drug addicts. The scheme was one of the largest in the Philadelphia area, generating millions of dollars in illegal drug revenues laundered via various means and resulting in the death of at least one 30-year-old patient who overdosed from a lethal combination of oxycodone and methadone.
Financial Analyst – Cyndi Fusco
In her fourteen years with the office, Ms. Fusco has spearheaded financial investigations of our most complex cases. She has investigated fraud, public corruption, embezzlement, money laundering, extortion and tax evasion. Ms. Fusco has created detailed analyses of financial facts, prepared summary charts, prepared witnesses for testimony, testified as the financial investigator, and directed interviews involving financial accountants and experts. She also developed a protocol to monitor social media of targets to locate hidden assets. Her cases have resulted in lengthy sentences, large forfeitures, and restitution.
Upper Darby Man Charged with Illegal Re-entryRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Romeo Lucas-Lopez, a/k/a “Romeo Lopez,” of Upper Darby, PA, was charged by indictment with illegal reentry after deportation.
The indictment alleges that on or about May 17, 2018, Lucas-Lopez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about November 7, 2010 and November 15, 2010. If convicted, the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Laurie Magid.
An indictment, information or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Retired Federal Air Marshal Charged with Threatening Former CoworkersRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a former federal air marshal with the Newark, New Jersey field office has been charged by indictment with making various threats against his former colleagues.
An indictment was unsealed today charging Julian Terrell Turk, 47, of Levittown, PA, with interstate communication of threats. Turk, who filed multiple Equal Employment Opportunity complaints against the Federal Air Marshal Service, and more specifically against FAM Executive Management of the Newark Field Office, allegedly contacted a retired Navy SEAL for information on how to make and use explosives and also to provide a list of books and resources on long range rifle shooting.
In an April 13 email to a former coworker, Turk wrote:
“There comes a time in one's life that he has to take a stand against what's ‘right’ and not ‘white’ here, now, is my chance to do that. These (expletive) have gone out of their way to (expletive) with me in the worst way possible. And frankly, I've had a Got Damn nuff of it. So, I've decided to (expletive) with them. I'm going to take the fight to these (expletive)!”… “I'd never ask one of yall to take-on something that would get any of you in trouble. But sometimes enough is enough and you have to take a stand. These (expletive) think they're untouchable and that they can't be gotten to. I'm going to show them how to (expletive) with someone.” . . . “As I've said, I'm taking the fight to these (expletive) now. Know that, I'd never take my own life, my children are always a for-thought on my mind. But what kind of man would I be if I didn't live up to my motto and creed of ‘Being a Man for Others!’ So I've come up with a plan to get them for what they've done to me.”
Turk also sent a series of emails to a former marshal in which he said, among other things, “I've come up with a plan to get them for what they've done to me. In the event that something happens to me, please make sure to look after my children.”
If convicted, the defendant faces a maximum possible sentence of five years in prison, three years’ supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by FBI and is being prosecuted by Assistant United States Attorney Joseph A. LaBar.
Philadelphia Personal Injury Law Firm Agrees to Start Compliance Program and Reimburse the United States for Clients’ Medicare DebtsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a Philadelphia personal injury law firm, Rosenbaum & Associates, and its principal, Jeffrey Rosenbaum, Esq., have entered into a settlement agreement with the United States to resolve allegations that they failed to reimburse the United States for certain Medicare payments the government had previously made to medical providers on behalf of firm clients who sought medical care.
The government’s investigation arose under the Medicare Secondary Payer provisions of the Social Security Act, which authorizes Medicare, as a secondary payer, to make conditional payments for medical items or services under certain circumstances. When an injured person receives a settlement or judgment, Medicare regulations require entities who receive the settlement or judgment proceeds, such as the injured person’s attorney, to repay Medicare within 60 days for its conditional payments. If Medicare does not receive timely repayment, these same regulations permit the government to recover the conditional payments from the injured person’s attorney and others who received the settlement or judgment proceeds.
At various points before March 2017, Medicare made conditional payments to healthcare providers to satisfy medical bills of nine of the firm’s clients, at least one of whom had declared bankruptcy. Between May 2011 and March 2017, Medicare demanded repayment of the Medicare debts incurred from those conditional payments.
Under the terms of the settlement agreement, Rosenbaum agreed to pay a lump sum of $28,000. Rosenbaum also agreed to (1) designate a person at the firm responsible for paying Medicare secondary payer debts; (2) train the designated employee to ensure that the firm pays these debts on a timely basis; and (3) review any outstanding debts with the designated employee at least every six months to ensure compliance. In addition, Rosenbaum acknowledged that any failure to submit timely repayment of Medicare secondary payer debt may result in liability for the wrongful retention of a government overpayment under the False Claims Act.
This settlement agreement should remind personal injury lawyers and others of their obligation to reimburse Medicare for conditional payments after receiving settlement or judgment proceeds for their clients. “When an attorney fails to reimburse Medicare, the United States can recover from the attorney—even if the attorney already transmitted the proceeds to the client,” said U.S. Attorney William M. McSwain. “Congress enacted these rules to ensure timely repayment from responsible parties, and we intend to hold attorneys accountable for failing to make good on their obligations.”
The case was handled by Assistant U.S. Attorney Michael S. Macko, with assistance from the United States Department of Health and Human Services, Office of the General Counsel, Region III.
Eighth Member of Reading-Area Bank Fraud Ring ChargedRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a Reading, Pennsylvania woman—the eighth member of a Reading-area bank fraud ring—has been charged with fraud.
A criminal information has been filed charging, Xavanna Olivera, 19, with one count of bank fraud. Olivera is alleged to be a member of a bank fraud ring operated by Steven Ronald Randall of Philadelphia.
Randall previously pleaded guilty on March 15, 2018, to one count of bank fraud and five counts of aggravated identity theft before U.S. District Judge Joseph F. Leeson, Jr. As part of his guilty plea, Randall admitted that he was a leader of a scheme to defraud First National Bank. Randall further admitted that as a result of this scheme, FNB sustained actual losses in excess of $76,519, with intended losses of in excess of $115,782. Randall also admitted that he transferred funds to inmates incarcerated within the Pennsylvania Department of Corrections via accounts opened by others involved in the scheme.
The information alleges that in return for a share of the fraud proceeds, Olivera opened an account at FNB that she knew would be used to deposit fraudulent checks and to withdraw cash before the bank discovered that the checks were fraudulent.
Olivera faces a maximum sentence of 30 years’ incarceration, a five-year period of supervised release, and a fine of $1,000,000.
Olivera is the eighth member charged as part of this group. In addition to Olivera and Randall, the other members of the bank fraud ring previously charged are Jaylen Jefferson, 19, of Reading, Dawson Thomas, 19, of Mohnton, Rebecca Ilie, 25, of Reading, Linda Pacheco, 40, of Reading, Angel Ocasio, Jr., 20, of Reading, and Jair Peralta, 19, of Kenhorst.
The case was investigated by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Cumru Township Police Department and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Indicted on Child Pornography ChargesRead the Press Release
PHILADELPHIA –U.S. Attorney William M. McSwain announced today that a Philadelphia man was charged with receiving and possessing child pornography.
Anthony Chiccini, 70, of Philadelphia, PA, was charged today by indictment with receiving and possessing a collection of more than 600 images and videos of children being sexually assaulted and depicted in sexually explicit positions on various dates in 2013 through 2018.
If convicted, the defendant faces a maximum possible sentence of 60 years’ incarceration, which includes a 5-year mandatory minimum term of imprisonment, five years up to a lifetime of supervised release, $750,000 in fines, and a $300 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michelle Rotella.
An indictment, information or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Easton, PA Man Charged with Distributing and Possessing Child PornographyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Scott Wayne, 58, of Easton, was charged this week by indictment with the distribution and possession of child pornography.
According to the indictment, Wayne possessed a computer hard drive which contained visual depictions that had been produced using materials that had been mailed, shipped, and transported in interstate and foreign commerce. The indictment alleges that the production of these visual depictions involved the use of a minor, including a prepubescent minor who had not attained 12 years of age, engaging in sexually explicit conduct, and the visual depictions were of minors engaging in sexually explicit conduct.
If convicted, the defendant faces a maximum possible sentence of forty years imprisonment, a mandatory minimum of five years imprisonment, a mandatory minimum of five years supervised release up to lifetime supervised release, a $500,000 fine, and $10,200 in special assessments.
The case was investigated by the Bethlehem Police Department and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged Federally for Armed Robbery of PharmacyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that a Philadelphia man was charged today with an armed robbery of a Philadelphia pharmacy.
Ronald Hanible, 47, was charged by indictment with the armed robbery of Aspire Pharmacy at 4307 Locust Street.
According to the indictment, on April 27, 2018, Hanible robbed Aspire Pharmacy at gunpoint and stole approximately $200 and quantities of Oxycodone and Xanax pills. It is further alleged that the defendant brandished the handgun at a store employee during the armed robbery.
Hanible is charged with one count of robbery which interfered with interstate commerce, one count of using, carrying and brandishing a firearm during and in relation to a crime of violence, and two counts of possessing with intent to distribute a controlled substance.
If convicted of all charges, Hanible faces a maximum of life imprisonment, a mandatory-minimum imprisonment of seven years, which must be served consecutively to any other sentence imposed by the Court, six years up to lifetime supervised release, a $3,000,000 fine, and a $400 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney José R. Arteaga.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Investment Adviser Pleads Guilty to Running Ponzi SchemeRead the Press Release
PHILADELPHIA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced today that a Philadelphia investment adviser who bilked clients out of $1.6 million has pled guilty.
Carl Frederic Sealey, 43, chairman of Global Standard Industries Inc. (GSI) and SEK Industries Inc., pled guilty to fraud charges this week in connection with a scheme in which Sealey used his investors’ money to fund his own lavish lifestyle instead of using it to finance real estate deals.
Sealey claimed his company had more than $15 billion in managed domestic assets and another $33 billion offshore. Investors were led to believe that their investment was risk-free and that they would receive their monies back with interest within 90 days. Sealey would then represent to investors that their “deal” had been delayed and that they could get their money back more quickly if they invested additional monies for other “deals” that GSI had underway.
In reality, there were never any real estate closings or business takeovers underway by anyone at GSI. When investors wired monies to accounts exclusively maintained by Sealey, he used a fraction of the monies to pay rent for GSI’s Philadelphia and New York offices and the salaries of GSI staff members, most of whom were retained from a temporary employment agency. Sealey used the majority of the monies received from investors to support his extravagant lifestyle, including hotel accommodations, restaurants, spa services, retail shopping, and other personal expenditures.
“Individuals trust investment advisors with their life savings and thus their families’ economic well-being,” said First Assistant U.S. Attorney Williams. “The defendant blatantly betrayed that trust by making empty promises to investors with the ultimate goal of stealing their money and enriching himself.”
The investigation was led by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Anita Eve.
Philadelphia Man Charged with Possession of Firearm by a Convicted FelonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Nafis Mullins, 26, of Philadelphia, has been charged by indictment with possession of a firearm by a convicted felon.
According to the indictment, on May 1, 2018, Mullins was in possession of a Glock, Inc., Model 22, .40 caliber semiautomatic pistol, s/n YC689US, loaded with 16 live rounds of ammunition.
If convicted, Mullins faces a minimum term of fifteen years in prison, up to five years of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.
U-Haul and Employee Charged with Violations of Hazardous Materials Regulations in Fatal ExplosionRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams today announced that U-Haul Company of Pennsylvania and Miguel Rivera, the general manager of U-Haul’s Hunting Park location, were charged today with violating hazardous materials regulations. One of the alleged violations led to two fatalities.
The six-count indictment alleges the defendants violated United States Department of Transportation regulations related to classifying, handling, and packaging hazardous materials. The indictment further alleges that defendants filled two propane cylinders on June 29, 2014, and that one of those cylinders ruptured on July 1, 2014 while attached to a food truck parked on a Philadelphia public street. The indictment alleges the escaping propane ignited and briefly enveloped the food truck in a fireball, leading to the deaths of two people and grave injury to others nearby.
If convicted, U-Haul Company of Pennsylvania faces a maximum possible sentence of 5 years of probation, with a mandatory minimum term of 1 year of probation, a $3,000,000 fine, and a special assessment of $2,400. Miguel Rivera faces 15 years in prison, a 3-year period of supervised release, a $500,000 fine and a $200 special assessment.
The case was investigated by the Department of Transportation Office of Inspector General, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Philadelphia Police and the Philadelphia Fire Department. It is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tax Return Preparers Charged with Filing False Tax ReturnsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that the owners of a Yeadon, PA, tax preparation business were charged today in connection with a scheme to prepare fraudulent tax returns in order to generate unwarranted refunds.
Deron Joe and Edmund Dassin, the owners of Edron Tax Preparation Services, were charged today by superseding indictment with one count of conspiracy to defraud the United States and 15 counts of aiding and assisting in the preparation and filing of a false tax return.
According to the superseding indictment, Joe and Dassin prepared certain tax returns for clients for tax years 2008 to 2010 and falsely claimed on these returns that these clients had incurred unreimbursed employee business expenses. The indictment alleges the defendants knew their clients were not entitled to such refunds, as the clients had neither reported these expenses to the defendants nor provided any documentation to support such deductions. One of their clients was an IRS agent acting in an undercover capacity.
If convicted, the defendants face a maximum possible sentence of 47 years of imprisonment and a fine of $3.75 million.
The case was investigated by Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Department of Justice Tax Division Attorneys Chris O’Donnell and Kathryn Sparks and Assistant U.S. Attorney Tomika N.S. Patterson.
Guilty Verdict for Last of 19 Charged Defendants from Violent Drug OrganizationRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a federal jury has convicted Romel Anthony, the last of the 19 defendants charged in the Khalil Smith indictment. Anthony was part of a violent drug gang that was responsible for, among other things, waterboarding, pistol-whipping, and torturing its victims with boiling water. Anthony was found guilty of one count of Attempted Possession with Intent to Distribute Cocaine. The other members of the drug gang either pleaded guilty or were previously convicted at earlier trials.
“This was an extremely violent drug organization and it’s a credit to our prosecutors and the investigators involved that every single member of this gang has now been convicted and taken off the streets,” said U.S. Attorney McSwain. “Gangs like this terrorize communities and hold neighborhoods hostage and this particular group is an example of why violent crime is a priority for both the Department of Justice and our office.”
“This conviction of the last member of the Khalil Smith home invasion robbery crew represents conclusive justice for the involved victims and their families and for the citizens of Philadelphia," said Special Agent in Charge Donald Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. “This conviction is the culmination of nearly four years of relentless investigation by the men and women of ATF Philadelphia, local law enforcement, and our outstanding partnership with the United States Attorney’s Office.”
The investigation was led by the ATF, with assistance from the Philadelphia Police Department, the Hatfield Township Police Department, the Whitpain Township Police Department, and the Cherry Hill Police Department. It is being prosecuted by Assistant United States Attorneys Salvatore Astolfi and Jeanine Linehan.
Philadelphia Personal Injury Attorney Indicted on Fraud ChargesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain today announced that a Philadelphia attorney who struggled to pay his law firm’s expenses was indicted on fraud charges.
Donald F. Manchel, 84, of Bryn Mawr, PA, was charged with wire and mail fraud.
The indictment alleges that on multiple occasions, Manchel used settlement funds due to clients to instead pay his firm’s business expenses, including payroll and employee insurance premiums. Additionally, he used the settlement funds due to one client to pay another client. According to the indictment, Manchel made false statements and engaged in acts of deception in an effort to hide the fact that he already had spent his clients’ settlement funds, and to avoid having to issue payment to clients of the settlement funds due to them.
“Under the law, attorneys are required to keep settlement funds separate from other money,” said U.S. Attorney McSwain. “And when an attorney deliberately deceives his clients, he must be held accountable.”
If convicted, the defendant faces a maximum possible sentence of 220 years’ imprisonment, three years of supervised release, a $2.5 million fine, and a $2,000 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty
Philadelphia Heroin Dealer with Connections to Mexican Drug Ring Sentenced to 57 Months’ ImprisonmentRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Marcos Callejas-Nava, a citizen of Mexico and convicted heroin dealer, was sentenced this week to 57 months’ imprisonment.
Callejas-Nava had pleaded guilty to one count of conspiracy to distribute two kilograms of heroin and one count of possession with intent to distribute two kilograms of heroin. He is also facing deportation proceedings upon completion of his federal sentence. At the sentencing hearing, Judge Joel H. Slomsky noted his concern about the seriousness of the offense and the dangerousness of heroin in the community.
“The defendant was an active and eager participant in a cross-border conspiracy to import and distribute heroin in a region that has been ravaged by the deadly effects of heroin addiction and overdose. We are in the midst of an epidemic and we have to stop those who are bringing this poison into our communities,” U.S. Attorney McSwain stated.
The case arose out of an investigation by Montgomery County Detective Bureau (MCDB) Narcotics Enforcement Team (NET), the Drug Enforcement Administration (DEA) and the Montgomery County District Attorney’s Office Local Drug Task Force into a Mexican drug trafficking organization distributing kilogram quantities of heroin in the Philadelphia area. The case is being prosecuted by Assistant U.S. Attorney Jennifer Jordan.
Court Enters Judgment Against New Jersey Couple for Overcharging the Military for Spare Vehicle PartsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that a New Jersey couple has been ordered to pay $232,891.37 to the United States for overcharging the military for light assemblies. The defendants, Moorestown, New Jersey residents Babu Metgud and Shubhada Kalyani, operated Shubhada Industries, a defense contractor. The United States, as the plaintiff, moved for summary judgment against Metgud and Kalyani. In granting the United States’ motion, the district court entered judgment against the individual defendants, awarding damages and imposing the maximum penalty allowable under the False Claims Act.
The case arose from a contract in which Shubhada Industries agreed to manufacture light assemblies for munitions vehicles for the Defense Logistics Agency. Instead of actually manufacturing those parts, Shubhada purchased them from a third party and charged the government a total purchase price of $73,842—which amounted to a 5,400 percent mark-up of the cost price, according to the court’s opinion. When the government questioned the cost, Metgud justified it by explaining that costs sometimes seem very high “to untrained eyes.”
Under the False Claims Act, a person who causes false or fraudulent claims to be submitted to the government for payment is liable for three times the government’s damages, plus civil penalties for each false claim. The court’s judgment consists of three times the amount the Defense Logistics Agency paid, plus a civil penalty of $11,000, which the court noted was “at the top of the statutory range.”
In imposing this maximum penalty, the court explained that Metgud and Kalyani did not disclose to the agency their purchase of the light assemblies from someone else. In addition, the court opined the individuals “have not been forthright or cooperative in the Government’s investigation of the claims alleged in the amended complaint,” and seemed to “shrug off” the investigation and the court proceeding.
“Those who do business with the government must treat taxpayers fairly,” said U.S. Attorney McSwain. “This case demonstrates my Office’s commitment to holding accountable defense contractors and others who try to game the system for personal profit at the military’s expense.”
The case is significant because the government, as the plaintiff and moving party at summary judgment, obtained a judgment on the merits and without a trial. It is also significant because the district court’s judgment was based in part on its conclusion that it could draw an adverse inference against the individual defendants who invoked their Fifth Amendment right against self-incrimination.
Assistant U.S. Attorney Michael S. Macko handled the case, which arose from an investigation led by the United States Department of Defense, Defense Criminal Investigative Service.