Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Assistant Bank Manager and Wife Charged in Bank Fraud SchemeRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a former assistant manager at Citizens Bank in South Philadelphia was charged, along with his wife, in connection with a bank fraud scheme.
Defendants Craig Green, 53, and Bridgette Green, 38, both of Philadelphia, Pennsylvania, were charged this week by indictment with one count of conspiracy to commit bank fraud, one count of bank fraud, one count of aggravated identity theft, and 26 counts of money laundering.
According to the indictment, Craig Green used his position at Citizens Bank to improperly access the bank account information of an unsuspecting Citizens Bank customer and created a second, fraudulent account in the name of that same customer. Thereafter, Craig Green allegedly transferred funds from the bank customer’s legitimate account into the fraudulent account he had created. The indictment alleges that Craig Green and Bridgette Green would write checks drawing from the fraudulent account to a co-conspirator, and the co-conspirator would then deposit the checks and provide the money to the defendants. As the indictment indicates, the Greens were able to fraudulently withdraw approximately $165,498 during this scheme.
If convicted, the defendants face a maximum possible sentence of 557 years imprisonment and a $14,500,000 fine.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney K.T. Newton.
An indictment, information or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Bribing Sheriff’s Office EmployeeRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging a Philadelphia man with bribing a Philadelphia Sheriff’s Office employee in exchange for inside information about Sheriff’s sales, announced U.S. Attorney William M. McSwain.
Behzad Sabagh was charged by indictment with one count of conspiracy to commit honest services wire fraud and six counts of honest services wire fraud. The indictment alleges that from September 2012 to August 2013, Sabagh and others paid bribes to a Philadelphia Sheriff’s Office employee in exchange for assistance with their business of purchasing properties at Sheriff’s sales. Specifically, in exchange for bribes, the defendant received an updated Sheriff=s sale auction list which showed whether property sales had been stayed or postponed, allowing the defendant to avoid spending time evaluating properties that would not be sold.
“When the services of a public employee are purchased for personal gain, it is our duty to hold accountable those who attempted to game the system,” said U.S. Attorney McSwain.
If convicted, Sabagh faces a maximum possible sentence of 140 years’ imprisonment, 3 years of supervised release, and a $1,750,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys Sarah Grieb and Christopher Diviny.
Statement by United States Attorney William M. McSwain Regarding the Federal Charges Filed Against Taiwanese Teenager Who Allegedly Amassed an Arsenal and Threatened to “Shoot up” Local High SchoolRead the Press Release
“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 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.
Law enforcement and the U.S. Attorney’s Office in the Eastern District of Pennsylvania take seriously every threat of gun violence in our community and will do everything in our power to prevent tragedy from occurring. The federal complaint charging An-Tso Sun (a/k/a “Edward”) shows that we are doing just that. Mr. Sun may have said he was “just kidding” after he made the threat, but his alleged threat is no laughing matter. Regardless of race, gender, or immigration status, if an individual threatens to “shoot up” a school, or any other location, law enforcement will act swiftly upon that threat to ensure the safety of our community. I would also like to point out that if Sun is convicted of the current charge against him – possessing ammunition while being in the United States on a nonimmigrant visa – this is an aggravated felony that will operate as a permanent bar to his reentry into this country.
I want to take this opportunity to thank the hard-working and dedicated law enforcement personnel and prosecutors who responded so quickly in this matter. Thank you to the involved school officials, the Upper Darby Police Department, Delaware County District Attorney Katayoun M. Copeland, and her team of prosecutors and investigators, including Deputy District Attorney Daniel McDevitt, and our partners at the Department of Homeland Security, Homeland Security Investigations, including Special Agent in Charge Marlon V. Miller, Assistant Special Agent in Charge Jamie Holt, and Special Agent Zachary Kuzowsky, who helped avert a potential tragedy. And thank you to First Assistant U.S. Attorney Jennifer Arbittier Williams, Acting Chief of National Security Tay Aspinwall, and Assistant U.S. Attorney Sarah Wolfe for prosecuting this case on behalf of the United States Attorney’s Office.
To the student who heard the alleged threat and reported the incident to school officials – thank you. Thank you for being a good citizen and reporting it. It cannot be said too often: if you see something or hear something, you need to say something. Countless incidents have been averted because of vigilant people like you.
Finally, I would like to address parents, guardians, and all other adults who are responsible for children in their lives. It is your responsibility to know what your children are up to. No child should have access to firearms or other dangerous weapons without their parents’ or guardians’ knowledge. No child should be amassing an arsenal under the nose of the adults in their lives without the adults knowing about it. And when the adults know about it, they should do something about it. Ask questions. Go into your children’s bedrooms and look around. Pay attention to their online behavior and social media accounts. Wake up and do your job. Being a responsible parent means that your children’s business is your business.
We have a sacred duty, not only to our own children, but to all children in our community to make sure that they remain safe. To make sure that they can enjoy being children without fear or threat of violence. Thus, I am putting all parents and guardians in our community on notice. Law enforcement is not the first line of defense in these matters – you are. I ask that you take that responsibility seriously. Our children’s lives depend on it. And if you don’t fulfill that responsibility and then tragedy strikes, I will do everything in my power to hold you personally responsible, when the law allows it.”
Philadelphia Attorney Sentenced to 84 Months in Prison for Receiving and Possessing Child PornographyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Philadelphia lawyer Devon Edward Sanders, 48, of Glenside, was sentenced on June 4 to 84 months in federal prison for downloading and possessing more than 94,000 images and videos of child pornography.
Chief U.S. District Judge Lawrence F. Stengel called the defendant’s collection “massive” and described the images and videos of children being sexually assaulted “dehumanizing, horrendous, and disgusting.” In rejecting the defendant’s request for probation, the court ruled that a significant sentence of incarceration was warranted based on the defendant’s “disturbing” crimes over a 10-year period. The court further ruled that a restitution hearing for the 25 victims seeking mandatory restitution will be held within the next 90 days.
“We agree wholeheartedly with Chief Judge Stengel’s assessment,” said U.S. Attorney McSwain. “By possessing these horrific images, this defendant victimized innocent children for more than a decade. A significant prison term was not only warranted but necessary.”
In addition to the term of imprisonment, the court imposed a 10-year term of supervised release and ordered that the defendant undergo a sex offender evaluation and treatment after his release from federal prison.
The case was investigated by Department of Homeland Security and was prosecuted by Assistant United States Attorney Michelle Rotella.
Former Philadelphia Police Officer Found Guilty of Bribing DetectiveRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that retired Philadelphia Police Officer Victor Gates was found guilty today by a federal jury of honest services mail fraud conspiracy, honest services mail fraud, and making false statements. The jury deliberated for less than two hours before finding the defendant guilty.
Gates bribed his friend Patrick Pelosi, a Philadelphia Police detective, to misuse his official position and access a law enforcement database of stolen cars in exchange for corrupt monthly payments.
Gates owned a company called Auto Recovery Services LLC, and one of his clients was Avis. Gates would have Pelosi remove certain stolen cars from the National Crime Information Center database so that Avis could rent them out to its customers. The defendant initially lied to police by denying that he made payments of any kind to Pelosi, although he later stated that he had made payments for “help” with the actual physical work of locating cars. Pelosi previously pled guilty and resigned from the Philadelphia Police Department in January 2017.
Between May 2008 and April 2013, Gates mailed a $300.00 check on a monthly basis to Pelosi’s home. Those payments increased to $400.00 per month between May 2013 and October 2014.
“This was a long-running, corrupt money-making scheme that is all the more egregious because the defendant has a law enforcement background,” said U.S. Attorney McSwain. “I want to thank the jury for its swift condemnation of Gates’ actions.”
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, Internal Affairs Division, and is being prosecuted by Assistant U.S. Attorney Eric Gibson.
Federal Charges Filed Against Taiwanese Teenager Who AllegedlyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a Taiwanese teenager accused of threatening an attack on a high school in Upper Darby, Pennsylvania has been charged federally.
An-Tso Sun (a/k/a “Edward”), 18, was charged yesterday by federal complaint with possessing ammunition while being in the United States on a nonimmigrant visa, which is a felony under federal law.
Sun is a Taiwanese national who came to the United States to live with an American host family and study at a high school in Upper Darby, Pennsylvania. According to the complaint, on or about March 26, 2018, Sun told another student (identified in the Complaint as “Student 1”), “Hey, don’t come to school on May 1st . . . I’m going to come here armed and shoot up the school. Just kidding.”
“When someone makes an alleged threat of this kind, law enforcement must take it seriously and investigate all leads,” U.S. Attorney McSwain said. “Law enforcement is committed to doing everything in our power to stop an attack before it happens. We must keep our children and our community safe from harm.”
Student 1 reported the incident to school officials, who then alerted law enforcement. According to the complaint, after the report of the threat, school officials and the Upper Darby Police called Sun’s host family to inform them of the alleged threat. Thereafter, Sun’s host-mother told police that she hired an attorney for Sun, returned home from work, and removed numerous items from Sun’s bedroom, placing them into a black duffel bag. She then allegedly brought this duffel bag to the attorney she had spoken with earlier in the day. According to the complaint, the duffel bag was later given to law enforcement and was found to contain the following:
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- One semiautomatic pistol, comprised of a Glock 19 9mm upper component (slide, recoil spring, and barrel) bearing serial number BESE280, and a Polymer80 brand lower component (frame) with no serial number;
- 44 rounds of 9mm Aguila ammunition;
- 615 rounds of 9mm Blazer Brass ammunition;
- 225 rounds of 12 gauge Federal shotgun ammunition;
- 280 rounds of 5.56mm IMI Systems ammunition; and
- 423 rounds of 7.62 x 39mm TulAmmo ammunition.
Upper Darby Police officers also executed a search warrant at Sun’s residence and seized from Sun’s bedroom: 20 rounds of 9mm Blazer Brass ammunition; one ballistic suit, including a vest, jacket and pants; one cross bow; seven arrows; and various firearm accessories and shooting equipment. Sun has been in custody in Delaware County since his arrest by Upper Darby police in March.
If convicted, the defendant faces a maximum possible sentence of ten years’ imprisonment, a $250,000 fine, and three years’ supervised release.
“Thanks to the tremendous work of our local, state, and federal partners, a potential school tragedy was prevented,” said Special Agent in Charge Marlon V. Miller, Homeland Security Investigations Philadelphia Field Office. “Homeland Security Investigations will continue to support all of our law enforcement partners to ensure the safety and security of our communities.”
The case was investigated by Homeland Security Investigations, the Upper Darby Police Department and the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Sarah M. Wolfe.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
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Delaware County Convicted Murderer and Opioid Dealer Sentenced to Life in PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that his office secured a life sentence today in a case involving a Delaware County man convicted of murder through the use of a firearm and conspiracy to distribute oxycodone. Anthony Vetri, 30, of Essington, was sentenced by U.S. District Judge Gerald J. Pappert. Vetri and Michael Vandergrift, 31, of Chester, were convicted of conspiracy to distribute oxycodone from 2008 until June 4, 2013. During the conspiracy, Vetri obtained large sums of oxycodone from a registered pharmacist, Mitesh Patel, who owned and operated three pharmacies in the greater Philadelphia area. Vetri then supplied Vandergrift with oxycodone, and both distributed the drugs throughout Delaware and Philadelphia Counties. During the course of the conspiracy, Vetri received and distributed in excess of 100,000 oxycodone tablets, earning him hundreds of thousands of dollars in drug proceeds.
During the drug conspiracy, Patel illegally provided oxycodone to others, including his business partner, Gbolahan Olabode. Beginning in the fall of 2011, Vetri and Vandergrift conspired to eliminate Olabode as a competitor to boost Vetri and Vandergrift’s oxycodone supply from Patel. Vetri and Vandergrift ultimately decided to murder Olabode, and Vandergrift recruited Michael Mangold and Allen Carter to assist. On January 4, 2012, Vandergrift, Mangold, and Carter went to Olabode’s residence in Lansdowne, Pennsylvania and waited for Olabode to return home. When Olabode returned, Vandergrift and Mangold each used a firearm to fire 27 shots at Olabode as he carried groceries into his home. The assailants struck the victim 13 times in his head and body, causing Olabode’s death. Following Olabode’s murder, Vetri celebrated Olabode’s death and continued to illegally distribute oxycodone that he obtained from Patel.
“The depravity of Vetri’s crimes knows no bounds. For years, the defendant poisoned his own community by fueling the opioid crisis in the Eastern District of Pennsylvania. Vetri’s distribution of over 100,000 oxycodone pills helped ruin people’s lives, and I have no doubt that many of Vetri’s customers continue to battle opioid abuse and addiction,” said U.S. Attorney McSwain. “The defendant is a violent drug trafficker who brought terror to the streets when he senselessly plotted the ambush and brutal murder of one of his rivals. Vetri has no respect for the law and no respect for human life. The defendant has never expressed remorse, nor has he accepted any responsibility for his actions. We are grateful that the Court held the defendant accountable for his violent and destructive conduct.”
Patel, Mangold, and Carter all previously pleaded guilty to charges for their respective involvement in drug distribution, the murder of Olabode, and other offenses, and are currently awaiting sentencing.
"For years, this defendant took advantage of addicts' misery, flooding the streets with pills and fueling the opioid crisis in our community," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "As he and his co-conspirator cashed in, they devised a brutal business plan: get more drugs and make more money by murdering the competition. Vetri is a danger to society on many levels, and this sentence is richly deserved."
The case was investigated by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Department, the Organized Crime Drug Enforcement Task Force, the Lansdowne Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Jonathan B. Ortiz and David. E. Troyer are prosecuting the case.
Defendant in Tax Fraud Scheme Involving Stolen Identities of Children Sentenced to 120 Months in PrisonRead the Press Release
PHILADELPHIA – A Darby, PA tax preparer, who used the identities of disabled children and children in foster care to file false federal income tax returns, was sentenced in federal court today to 120 months in prison and $83,870 restitution, announced U.S. Attorney William M. McSwain. Musa Turay, 44, was sentenced by U.S. District Judge Harvey Bartle III.
Turay was a partner at Medmans Financial Services, a tax preparation business which operated two offices in Philadelphia. Turay and defendant Mohamed Mansaray, the other partner of the illegal business, ran the tax preparation business at 1869 S. 65th Street in Philadelphia.
Turay conspired to defraud the Internal Revenue Service by falsifying information on income tax returns to generate fraudulent refunds. The defendant prepared and filed federal income tax returns for clients of his tax preparation business. These returns included intentional false deductions, fake credits, and fictitious dependents using the names and Social Security numbers of children who were unrelated to the taxpayers, some of whom were in the foster care system.
Turay prepared over 1,000 fraudulent tax returns, and the IRS estimated that the loss caused by the returns prepared by the defendant was approximately $8,000,000. The defendant also falsified his own personal income tax returns by falsely adding dependents to the returns. Additionally, he fled the country after the government filed a motion to revoke his bail. The defendant absconded for nine months, until he was ultimately apprehended and is currently being held in jail.
“As U.S. Supreme Court Justice Oliver Wendell Holmes, Jr., noted, ‘Taxes are what we pay for civilized society,’” said U.S. Attorney McSwain. “Our tax laws are in place for a reason. When they are ignored, especially to this extent, we all lose. The defendant not only violated the tax laws, but he victimized innocent children by using their information to further his criminal scheme. This was a long-running conspiracy, and our investigators and prosecutors were determined to ensure that the defendant was held accountable for his actions. This sentence should send a message to anyone who thinks he can flout the law and target vulnerable victims without consequence.”
Turay is the last of 11 defendants prosecuted in this investigation to be sentenced for their roles in the preparation of thousands of false tax returns. The total loss to the government caused by all the tax preparers who worked at Medmans Financial Services was more than $30,000,000. The harm done to the children who were the victims of the tax fraud, however, cannot be quantified. These children will forever be at risk for the improper use of their identity information. Many of the parents and legal guardians of the children who were victimized in this case found themselves unable to file their own tax returns and claim their own children as dependents, because their children already had been falsely claimed as dependents on fraudulent returns.
“Today's sentence exemplifies IRS Special Agents' intense focus on the rigorous pursuit of identity theft and refund fraud,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Musa Turay and his co-conspirators perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. Be assured that IRS Criminal Investigation, together with our partners at the U.S. Attorney's Office, will hold those who engage in similar behavior fully accountable.”
The case was investigated by the Internal Revenue Service Criminal Investigation, the City of Philadelphia Office of Inspector General, and the Social Security Administration Office of Inspector General Office of Investigations. It is being prosecuted by Assistant United States Attorney Frank Costello.
Coatesville Man Charged with Wire Fraud in Gift Card ScamRead the Press Release
PHILADELPHIA – A Coatesville, PA man was charged today in connection with a scheme to over-redeem gift cards, U.S. Attorney William M. McSwain announced.
Chad Douglas Broudy, 23, was charged by criminal information with wire fraud.
The information alleges Broudy defrauded an internet e-commerce company by exploiting a software glitch that permitted repeated uses of the same gift card. The information alleges that between October 29, 2016, and January 10, 2017, Broudy intentionally conducted approximately 1100 fraudulent transactions triggering this glitch, and in the process over-redeemed approximately $320,582 from the company’s gift cards.
“The defendant had a choice. He could have reported the glitch. But he chose greed and crime over honesty. He took full advantage of the glitch and exploited it not once or twice, but more than 1100 times, obtaining more than 3,000 items through fraud.”
If convicted the defendant faces a maximum possible sentence of 40 years imprisonment, 3 years of supervised release, a fine of $500,000, and full restitution.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
West Chester University Student Indicted on Child Pornography ChargesRead the Press Release
PHILADELPHIA – A West Chester University student has been charged with transporting, receiving and possessing child pornography, announced U.S. Attorney William M. McSwain. The defendant was arrested this morning
Ryan Davis, 21, of Thornbury, PA, formerly a resident of Glen Mills, was charged by indictment May 31 with transporting, 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 2016 and 2017. The indictment was unsealed today.
The charges arose out of an investigation into Davis’ online criminal activities involving his use of his Dropbox and other online accounts to sexually exploit children.
“Child exploitation is a horrendous crime, and we have to do everything in our power to stop it,” said U.S. Attorney McSwain. “That’s why these cases are a priority, as is ensuring that the offenders are held fully accountable.”
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, and $750,000 in fines.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Attorney William M. McSwain Names Final Two Members of his Executive Management TeamRead the Press Release
Alison Kehner, who once clerked alongside U.S. Attorney McSwain for the Honorable Marjorie O. Rendell of the U.S. Court of Appeals for the Third Circuit, has joined the Office as Counsel to the U.S. Attorney. Kehner will report directly to the U.S. Attorney and will lead the Office’s effort to disseminate written material to the media and public. Kehner will also advise U.S. Attorney McSwain in a variety of areas and will be doing criminal case work.
“I am privileged to join the ranks of the dedicated and talented public servants in the U.S. Attorney’s Office for the Eastern District of Pennsylvania,” said Kehner. “The threats to our community are many, and I share U.S. Attorney McSwain’s commitment to always seeking justice for the people of the Eastern District.”
Most recently, Kehner was a senior lecturer in legal practice skills at the University of Pennsylvania. Prior to that, she was an assistant professor of legal methods at Widener University. Kehner has also served as a litigation associate at Dechert LLP. Prior to her clerkship for Judge Rendell, she clerked for the Honorable Morton I. Greenberg of the U.S. Court of Appeals for the Third Circuit, and for the Honorable Mary Cooper of the District of New Jersey. She graduated first in her class from Villanova University School of Law and received her undergraduate degree from the University of Delaware.
U.S. Attorney McSwain has also welcomed Clare Pozos back to the Office. Pozos, who has previously served as an Assistant U.S. Attorney in both Philadelphia and Washington D.C., will now serve as Senior Advisor to the U.S. Attorney. Pozos will advise the U.S. Attorney on new office initiatives and focus on strengthening Office relationships with law enforcement and community partners. Pozos will also assist the U.S. Attorney in his communications with the public and the media. In addition to her strategic role, she will also prosecute cases for the Criminal Division.
“The U.S. Attorney’s Office in the Eastern District of Pennsylvania is a national leader within the Department of Justice,” said Pozos. “From the devastating effects of the opioid crisis to the debilitating toll of public corruption, this Office is at the forefront of the most pressing issues facing our country. It is an honor to work with U.S. Attorney Bill McSwain, this entire Office, and our law enforcement partners to confront these challenges, and to protect our community here in the Eastern District.”
Pozos graduated from the University of Pennsylvania Law School after earning her undergraduate degree from Harvard College. After law school, Pozos clerked for the Honorable Michael M. Baylson of the Eastern District of Pennsylvania, and worked at Skadden, Arps, Slate, Meagher & Flom in Washington D.C.
Kehner and Pozos now join the other members of the executive management team: First Assistant U.S. Attorney Jennifer Williams, Deputy U.S. Attorney Louis Lappen, Criminal Chief Denise Wolf and Civil Chief Gregory David.
"I'm delighted that Clare and Alison have joined my leadership team,” said U.S. Attorney McSwain. “I have known them both for over a decade, and they are immensely talented lawyers with excellent judgment. They share my commitment to public safety, and I look forward to working with them on a daily basis. They will strengthen our Office and help us to better serve the citizens of this District."
Son of House-stealing Scheme Mastermind Sentenced to 119 Months in Federal PrisonRead the Press Release
PHILADELPHIA – Terrell Hampton who, along with his father and several other family members, defrauded the City of Philadelphia, the Commonwealth of Pennsylvania, and innocent owners and purchasers of Philadelphia real estate, was sentenced to 119 months in prison today, announced U.S. Attorney William M. McSwain.
Hampton, 37, along with his father Kenneth and other family members, stole vacant homes in Philadelphia that belonged to people who could not afford to defend their properties. Kenneth Hampton was convicted and sentenced to 200 months in prison in November.
At the direction of his father, who was in prison at the time, Terrell looked for vacant properties to target, created and filed fraudulent deeds, sought buyers for the stolen properties, and kept Kenneth apprised of scheme developments. They communicated through phone calls, emails, and letters, as well as through Kenneth’s fiancée, co-conspirator Roxanne Mason.
The participants in the scheme moved into the stolen properties under the cover of fake leases that purported to grant them the right to occupancy. They then found ways to profit from the stolen properties, either by selling the homes to good faith purchasers, by saddling them with debt, or by taking advantage of government programs designed to aid legitimate homeowners.
“This defendant stole from people who didn’t have the resources to fight back, often resulting in victim battling against victim, homeowner against good faith purchaser,” said U.S. Attorney McSwain. “He lived up to the low example set by his father, and I am proud that the talented case team has put both of them behind bars.”
The case was investigated by the United States Secret Service, Department of Homeland Security - Office of the Inspector General, Federal Bureau of Investigation, and the Office of the Inspector General, City of Philadelphia. The case was prosecuted by Assistant United States Attorneys Paul G. Shapiro and Sarah M. Wolfe
Pharmacy Owners Agree to Pay $3.2 Million to Resolve False Claims CaseRead the Press Release
PHILADELPHIA – The owners of I&L Express Pharmacy in Philadelphia have agreed to pay millions to resolve a False Claims Act case against them, U.S. Attorney William M. McSwain announced today.
Irina Minkovich and Yelena Babchinetskya have agreed to pay $3.2 million to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare for prescription medications that were not actually dispensed during the period January 1, 2009, through December 31, 2015.
These medications included such drugs as Lidoderm, Advair Diskus, Nexium, Plavix, Solaraze, Zeita, Ranexa, Celebrex, Spiriva Handihaler, Nasonex, Lovaza, Singulair, Prevacid, Valsartan, Aricept, and Lidocaine. I&L Express Pharmacy, Irina Minkovich, who is also I&L Express’ pharmacist, and Yelena Babchinetskya also agreed with the Department of Health and Human Services, Office of the Inspector General to enter into an integrity agreement. The integrity agreement requires them to undertake substantial compliance obligations and to contract with an Independent Review Organization that will conduct quarterly third-party audits of their Medicare and Medicaid claims and drug inventory.
“Pharmacies and pharmacists have a responsibility to serve as gatekeepers of a closed system of prescription drug distribution. That responsibility was abused for profit here,” said U.S. Attorney McSwain. “Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse.”
“Pharmacies are an integral partner in patient care, and they are expected to act with integrity,” said Maureen Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “We take allegations of pharmacy fraud seriously, as evidenced by today’s $3.2 million settlement, and we will continue to work with our partners to ensure taxpayer dollars are spent in an appropriate manner.”
The settled civil claims are allegations only. There has been no determination of civil liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Civil Chief Gregory B. David and Auditor George Niedzwicki.
Man Charged with Defrauding Fulton BankRead the Press Release
PHILADELPHIA – An indictment was unsealed May 29 charging Thomas Harris, 60, with one count of bank fraud, announced United States Attorney William M. McSwain.
The indictment alleges that from September to October of 2016, Harris defrauded Fulton Bank in Harrisburg, Pennsylvania, by opening a bank account, depositing fraudulent checks, and withdrawing funds from the account.
If convicted the defendant faces a maximum possible sentence of 30 years’ imprisonment.
The case was investigated by the Postal Inspection Service and is being prosecuted by Assistant United States Attorney Laurie Magid.
Bethlehem Man Charged with Making False StatementsRead the Press Release
PHILADELPHIA – Francisco Santos, also known as “F.S.S.,” “A.C.M.,” and “Luis Colon,” was charged by indictment May 29 with making a false statement in an application for a passport, and with making a false statement to a federal agent, announced United States Attorney William M. McSwain.
The indictment alleges that on May 16, 2017, Santos, of Bethlehem, applied for a passport in Northampton County, Pennsylvania, in the name of A.C.M. The indictment also alleges that on August 21, 2017, in Bethlehem, Pennsylvania, Santos made a false statement to a Special Agent of the Department of State.
If convicted, the defendant faces a maximum statutory sentence of 15 years’ imprisonment.
The case was investigated by the Department of State and is being prosecuted by Assistant United States Attorney Laurie Magid.
Statement by United States Attorney William M. McSwain Regarding the Sentencing of Wheeler Neff to 8 Years’ Imprisonment in “Payday Lending” CaseRead the Press Release
“We see few cases in which a defendant has victimized so many that the number of those impacted is too high to count. This is one such case.
Wheeler K. Neff used his law license to help clients prey on the financial desperation of people all across the country. He helped so-called payday lenders evade the law and, in the process, collected hundreds of millions of dollars in debt on loans with interest rates that would make Tony Soprano blush – typically exceeding 780 percent.
The defendant drafted sham contracts for payday lenders like Charles M. Hallinan and Adrian Rubin – each of whom were convicted and are awaiting sentencing. These contracts were designed to give the false impression that Hallinan and Rubin’s companies were owned by Indian tribes that could claim ‘sovereign immunity’ from laws the defendants wanted to evade.
As an attorney, Mr. Neff should realize that a civilized society requires obedience to the law, including those laws he didn’t happen to like.
Neff drafted these contracts to help clients collect unlawful debt for as long as possible without getting caught. In return, Neff received hundreds of thousands of dollars a year in legal fees.
The defendant’s schemes pushed the limits of creative deception.
For example, he helped Hallinan defraud some 1,400 people who had brought a class action lawsuit in Indiana against one of Hallinan’s companies, Apex 1 Processing, Inc. Fearing that Hallinan could face personal exposure of $8 to $10 million if the plaintiffs could prove that Hallinan owned Apex 1, Neff conspired with Hallinan to make it appear that Apex 1 had no assets, employees, or officers, and was owned by an Indian chief living in Canada in order to entice the plaintiffs to accept a discounted settlement on their claims. To further this scheme, Neff told Hallinan to change his tax returns and retroactively transfer business activity from Apex 1 to another of Hallinan’s companies. Neff also directed people to transfer all documents relating to Apex 1 to tribal lands in Canada, where they would never be found by the plaintiffs.
The defendant preyed on the vulnerable -- those who were desperate and struggling. Consider, for example, the story of one of Neff’s victims, Dawn Schmitt, the Nebraska school teacher who testified that she turned in desperation to payday loans after her abusive partner left her broke and without credit. Schmitt testified that she wound up taking out about five payday loans, including one from a Hallinan company, and fully intended to pay them all back. But she could not do so, despite her best efforts, because she was trapped in a cycle of debt caused by Neff and his co-conspirators. As a result, she was forced to declare bankruptcy and move home to North Dakota.
But rather than an apologize to Schmitt and his other victims, the defendant doubled down on the kind of treachery that helped collect more than $490 million in debt, between 2008 and 2013, from hundreds of thousands of customers, including residents of Pennsylvania, a state which prohibits payday loans.
Over four days of trial testimony, Neff lied over and over again under oath. But to its great credit, the jury saw through Neff’s perjury. We hope that the verdict and today’s sentencing of 8 years in a federal prison provide some measure of justice to the victims.
And it was only through the hard work and dedication of our partners with the FBI, United States Postal Inspection Service, and Internal Revenue Service Criminal Investigations that we were able to unravel this complicated scheme and bring this defendant, and others charged in connection with this case, to justice. All involved in this exhaustive investigation should be congratulated.
And I would especially like to thank our trial team of Assistant United States Attorneys Mark B. Dubnoff and James Petkun who not only expertly and successfully prosecuted a very complex case, but who also saw and brought to light, in human terms, the damage the defendant has done to the lives of those who reached out in desperation, and found only more heartache.”
Philadelphia Woman Charged with Theft of Government FundsRead the Press Release
PHILADELPHIA – A Philadelphia woman was charged May 24 by indictment with five counts of wire fraud, one count of theft of government funds, and one count of social security fraud, announced United States Attorney William M. McSwain.
According to the indictment[1], Cassandra Boone, 67, created a second identity to continue working while she simultaneously received disability benefits under her real name. The defendant’s alleged actions resulted in government losses totaling approximately $121,690.
“When someone defrauds the system, we’re all victims,” said U.S. Attorney McSwain. “We have to preserve the integrity of our Social Security system, and one way we do that is stopping those who are gaming the system for their own benefit.”
If convicted, defendant Cassandra Boone faces a maximum sentence of 115 years’ incarceration, a period of supervised release, full restitution to the government, and a fine.
The case was investigated by the Social Security Administration, Office of Inspector General, and the Pennsylvania State Police, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
[1] An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Using Multiple Identities to Apply for Social Security BenefitsRead the Press Release
PHILADELPHIA – Julian Washington, 71, of Philadelphia, Pennsylvania, was charged May 24 by superseding indictment with four counts of wire fraud, one count of theft of government funds, and one count of social security fraud, announced United States Attorney William M. McSwain.
According to the superseding indictment[1], the defendant used multiple identities to apply for Social Security benefits. The defendant’s alleged actions resulted in a loss to the government of approximately $20,310.
If convicted, defendant Julian Washington faces a maximum sentence of 95 years’ incarceration, a period of supervised release, full restitution to the government, and a fine.
The case was investigated by the Social Security Administration, Office of Inspector General, and the Pennsylvania State Police, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
[1] An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged in Connection with Convenience Store RobberiesRead the Press Release
PHILADELPHIA – A Philadelphia man was charged May 24 in connection with armed robberies of convenience stories, announced U.S. Attorney William M. McSwain.
Tyrone Evans, 24, of Philadelphia, Pennsylvania, was charged by indictment with three counts of Hobbs Act robbery and three counts of the use and carrying of a firearm during a crime of violence. According to the indictment[1], the defendant, along with codefendants who were charged separately, committed three gunpoint robberies of convenience stores in Philadelphia in June of 2017.
“We work very hard to reduce violent crimes like these,” said U.S. Attorney McSwain. “And we have to make sure that those who use firearms when committing crimes pay a severe penalty. The safety of our communities depends on it.”
If convicted, defendant Tyrone Evans faces a maximum sentence of life imprisonment, including a mandatory minimum sentence of 57 years, as well as full restitution.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Philadelphia Police Department and Federal Bureau of Investigation, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
[1] An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lawyer Who Helped Payday Lenders Collect Hundreds of Millions of Dollars in Unlawful Debt Sentenced to 8 Years’ Imprisonment and Fined $50,000Read the Press Release
PHILADELPHIA – A Delaware attorney who spent nearly a decade helping clients collect hundreds of millions of dollars in illegal payday loans was sentenced Friday to eight years in federal prison, fined $50,000 and ordered to forfeit more than $356,000 in criminal proceeds
Wheeler K. Neff, 69, of Wilmington, was convicted in November of racketeering, conspiracy, and fraud charges. A jury found that Neff and his co-defendant, Charles M. Hallinan, 77, of Villanova, conspired to collect more than $490 million in debt from small short-term loans that were commonly known as “payday loans,” because the customers were supposed to pay them back with their next paychecks.
U.S. District Judge Eduardo C. Robreno ordered Neff to report to prison in 45 days. Hallinan is scheduled to be sentenced on July 6, 2018.
Between 1997 and 2013, Hallinan owned, operated, and financed numerous companies that issued and collected debt from loans that had annual interest rates typically exceeding 780 percent. In Pennsylvania, it is a crime to charge more than 25 percent annual interest on such loans, and more than a dozen other states have interest rate limits of 36 percent or less.
“Payday loans prey on those who can least afford it. That’s why they are illegal in Pennsylvania and many other states,” said U.S. Attorney William M. McSwain. “This defendant has never shown a hint of remorse for his actions nor sympathy for his victims, and during trial he told one lie after another. Perhaps a sentence like this will give him time to seriously consider the lives he has impacted.”
Neff drafted sham contracts designed to give the false impression that Hallinan’s companies were owned by Indian tribes that could claim “sovereign immunity” from laws they did not like. In 2011 and 2012, Neff engaged in a similar scheme with another payday lender, Adrian Rubin, 61, of Jenkintown. In return, Neff received hundreds of thousands of dollars a year in legal fees.
“As an attorney, Mr. Neff should realize that a civilized society requires obedience to the law, including those laws he didn’t happen to like,” said U.S. Attorney McSwain.
Neff also helped Hallinan defraud nearly 1,400 people who had brought a class action lawsuit in Indiana against one of Hallinan’s companies. Neff conspired with Hallinan to make it appear that his company had no assets, employees, or officers, and was owned by an Indian chief living in Canada in order to entice the plaintiffs to accept a discounted settlement on their claims.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and James Petkun.
Bucks County Real Estate Investor Guilty on All Counts in Fraud CaseRead the Press Release
PHILADELPHIA – A federal jury found Dean Rossi, 49, of Warrington, Pennsylvania, guilty yesterday of bank, mail and loan fraud in connection with a mortgage scheme, announced U.S. Attorney William M. McSwain.
Rossi, who owned numerous low-income properties throughout the Philadelphia area, misappropriated more than $643,000 from real estate closings. Specifically, after obtaining bank loans to purchase or refinance residential properties, Rossi teamed up with corrupt title/closing agents to divert a substantial portion of the loan proceeds, and then he pocketed cash from the settlements which should have been used to pay off prior mortgages and tax liens. In addition, to prevent the scheme from being detected, Rossi continued to cause payments to be made on the prior existing mortgages years after those loans were supposed to have been paid in full.
“Our investigators and trial team did a phenomenal job of following a trail of evidence that goes back more than a decade,” said U.S. Attorney McSwain. “The defendant went to great lengths to cover his tracks, but due to the hard work of our agents and prosecutors, his long-running scheme was exposed.”
The defendant faces a maximum possible sentence of 120 years’ imprisonment, five years of supervised release, and a $4 million fine.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joel Goldstein.
Two Charged with Sex Trafficking by Force – One Defendant Remains at LargeRead the Press Release
PHILADELPHIA – Two men, one from Georgia, the other from California, were charged today with sex trafficking and related crimes, announced U.S. Attorney William M. McSwain.
Kashamba John, 30, of Atlanta, and Tyler Robert Bachtel, 34, of Montclair, California, were charged today by indictment with one count of sex trafficking by means of force, threats of force, fraud and coercion (Count One). John was additionally charged with one count of transporting an individual in interstate commerce with the intent that the individual engage in prostitution (Count Two).
Bachtel remains at large. Anyone with information on his whereabouts should contact local law enforcement or the ICE tip line at 866-DHS-2-ICE.
“The victims of sex trafficking pay a price that lasts a lifetime,” said U.S. Attorney McSwain. “We have to do everything possible to find the offenders and bring them to justice.”
If convicted of sex trafficking, each defendant faces a mandatory minimum term of 15 years’ imprisonment up to a possible sentence of life imprisonment, a minimum of five years up to lifetime of supervised release, and a $250,000 fine. In addition, on Count Two, John faces a maximum of 10 years’ imprisonment as well as up to three years supervised release and a $250,000 fine.
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement - Homeland Security Investigations, the Pennsylvania State Police, and the Office of the Attorney General for the Commonwealth of Pennsylvania, and is being prosecuted by Assistant United States Attorneys Melanie Babb Wilmoth and Michelle Morgan.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Sixth Member of Reading Area Bank Fraud Ring Charged – Ringleader Transferred Funds to InmatesRead the Press Release
PHILADELPHIA – A Reading man, and sixth member of a Reading area bank fraud ring, was charged with fraud today, announced U.S. Attorney William M. McSwain.
A criminal information[1] was filed charging, Angel Ocasio, Jr., 20, of Reading, Pennsylvania, with one count of bank fraud. Ocasio is alleged to be a member of a bank fraud ring operated by Steven Ronald Randall of Philadelphia.
Randall previously pled 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 and used persons to open bank accounts and obtain ATM debit cards so that their bank accounts could be used to deposit fraudulent checks and withdraw cash before FNB determined that the checks were fraudulent. Randall had also admitted that FNB sustained actual losses in excess of $76,519, with intended losses of in excess of $115,782, as a result of this scheme. Randall had also admitted that he transferred funds from the accounts opened by his co-schemers to inmates incarcerated within the Pennsylvania Department of Corrections.
The information filed today alleges that Ocasio opened an account at FNB that he knew would be used to deposit fraudulent checks and withdraw cash before the bank discovered that the checks were fraudulent, in return for a share of the fraud proceeds.
“This was a sophisticated scheme that took excellent investigative work to unravel,” said U.S. Attorney McSwain. “Punishing financial fraud – as well as identity theft – is and will continue to be a top priority of my office.”
Ocasio faces a maximum sentence of 30 years’ incarceration, a five-year period of supervised release, and a fine of $1,000,000.
Ocasio is the sixth member charged as part of this group. In addition to Ocasio 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, and Linda Pacheco, 40, of Reading.
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.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Former Roman Catholic High School Intern Sentenced to 5 Years in Prison for Transporting Child PornographyRead the Press Release
PHILADELPHIA - Kevin Budianto, 24, of Philadelphia, PA, was sentenced today by U.S. District Judge Gerald A. McHugh to five years imprisonment, following his guilty plea to one count of transportation and one count of possession of child pornography, announced United States Attorney William M. McSwain. In addition, the defendant was sentenced to 10 years’ supervised release and fined $25,000.
According to court papers, Budianto, who worked at a Roman Catholic High School as an intern in 2013 after having graduated from the school in 2012, was apprehended based on two tips from Instagram, a social media platform on which Budianto posted child pornography images. Investigators thereafter determined that Budianto’s computer contained hundreds of images and videos of child pornography depicting prepubescent children, including images of sadistic and masochistic abuse.
“The images in the defendant’s possession were horrific,” said U.S. Attorney McSwain. “There simply can be no tolerance or leniency for those who exploit children. In this case, and in others like it, a significant term of incarceration is appropriate and necessary.”
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, the Pennsylvania Office of the Attorney General, and the Delaware County Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Darby Man Charged with Violating Gun Free School Zones Act for Possessing Firearm Near Philadelphia Elementary SchoolRead the Press Release
PHILADELPHIA – A federal grand jury today returned a superseding indictment against Kareem Murphy, 36, of Darby, PA, for possessing a firearm in a school zone in Philadelphia, announced United States Attorney William M. McSwain. Murphy had previously been charged with being a felon in possession of a firearm.
The charges brought today under the Gun Free School Zones Act carry a maximum sentence of five years imprisonment, and this sentence must be served consecutively to any sentence for illegally possessing the firearm. Murphy had already faced a minimum sentence of 15 years and a maximum sentence of life imprisonment for the charge of being a felon in possession of a firearm.
"Congress has mandated in the Gun Free School Zones Act that people who illegally possess firearms near schools suffer a greater penalty in order to help keep our school children safe,” said U.S. Attorney McSwain. “Anyone illegally possessing a firearm near a school can expect that we will prosecute and seek that greater penalty as part of our commitment to protect our children.”
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Nancy Rue.
Medical Office Manager Sentenced to 14 Years in Federal Prison for Leading Oxycodone Distribution RingRead the Press Release
PHILADELPHIA – A Bucks County medical office manager was sentenced yesterday to 14 years in prison by U.S. District Judge Gerald Pappert for his role in a conspiracy to distribute oxycodone and for health care fraud, announced U.S. Attorney William M. McSwain.
Michael Milchin, 37, of Philadelphia, the manager of Central Bucks Health Associates, was charged in 2017 with conspiring with 13 other defendants to fill hundreds of fraudulent prescriptions for oxycodone at various pharmacies in and around Philadelphia. Milchin then sold the fraudulently obtained pills to others. While the fraudulent prescriptions purported to be written by a physician with Central Bucks Health Associates, the physician in question had no affiliation with Central Bucks Health Associates and never authorized any of the prescriptions
“It is crimes like this that are perpetuating the opioid epidemic,” said U.S. Attorney McSwain. “Opioid abuse is killing people. It’s tearing apart families and ruining lives. As the court found, the defendant was driven only by greed, without regard to the public health hazard he was creating. My office will continue to aggressively investigate and prosecute any criminal scheme that contributes to the opioid epidemic.”
Milchin also worked with a chiropractor to defraud private insurance companies, Independence Blue Cross and Aetna, by billing those insurers more than $700,000 for chiropractic services that were never provided.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Postal Carrier Sentenced to 10 Months in Prison for Delivering Marijuana Packages to Drug DealersRead the Press Release
PHILADELPHIA — Felicia Charleston, 36, of Philadelphia, was sentenced on May 16 to 10 months in federal prison for using her position as a postal carrier to deliver packages containing marijuana to drug dealers in West Philadelphia, announced United States Attorney William M. McSwain. Charleston was sentenced by U.S. District Judge R. Barclay Surrick.
Charleston pled guilty to two separate indictments, both charging her with conspiracy to distribute at least 1,000 kilograms of marijuana, as well as one count of attempted possession with the intent to distribute 158 pounds of marijuana.
“The defendant exploited her position with the United States Postal Service by conspiring with drug dealers in order to line her own pockets,” said U.S. Attorney McSwain. “Her prison sentence is a reflection of the seriousness of her crimes.”
Charleston was a postal carrier at the West Market Post Office in Philadelphia and was responsible for delivering packages to addresses in West Philadelphia. As charged in this case, Charleston agreed to divert postal packages containing marijuana (which listed fictitious delivery addresses) and deliver them to drug dealers. Specifically, Charleston left her postal route in order to deliver the packages to two drug organizations. For one drug organization, Charleston delivered packages to members outside of 48 N. Hobart Street in West Philadelphia and even carried packages inside the residence. Charleston also routed packages to another drug dealer by hand-delivering the packages at various locations in West Philadelphia.
“The vast majority of the Postal Service’s 600,000 employees nationwide are dedicated, hard-working individuals worthy of America’s trust," said Monica Weyler, U.S. Postal Service Office of Inspector General Special Agent in Charge, Philadelphia. "However, a very small number of them choose to violate that trust by engaging in misconduct or criminal activity. Special agents with the U.S. Postal Service Office of Inspector General work with other law enforcement agencies to find those employees, investigate them, and seek their criminal prosecution and removal from the Postal Service, as we did in this case. To report criminal activity or serious misconduct by postal employees, contact USPS OIG special agents at 888-USPS-OIG or www.uspsoig.gov.”
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.
Jamaican Citizen Sentenced to 26 Months in Prison for Re-entering U.S. after being Deported Three TimesRead the Press Release
PHILADELPHIA – Vivian George Stewart, 49, who has used five aliases in his attempts to enter or remain in the United States, was sentenced May 16 to 26 months in prison for re-entering the country illegally, announced United States Attorney William M. McSwain. Stewart pled guilty in February.
Stewart had previously been convicted in 2006 of participating in a drug-trafficking conspiracy, and in 2009 of illegal reentry after deportation. In addition, Stewart has been deported on three separate occasions.
Most recently, Stewart was convicted of illegal reentry after deportation in the Southern District of Florida. Stewart was removed to Jamaica after serving his sentence, but he returned to the United States once again. In November 2017, the defendant was encountered in Philadelphia and identified from fingerprint analysis performed by agents with the Department of Homeland Security, Homeland Security Investigations, who concluded that Stewart had once again returned to this country unlawfully.
“This defendant has shown no regard for U.S. immigration laws and has been undeterred by prior criminal prosecution,” said U.S. Attorney McSwain. “This is a significant sentence and one that we hope will deter this kind of brazen disregard for U.S. law.”
The case was investigated by the Department of Homeland Security, Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Jennifer Jordan.
Two Delaware Residents Charged with Sex Trafficking of MinorsRead the Press Release
Dkyle Jamal Bridges, 32, and Kristian Jones, 24, both of Claymont, Delaware, have been charged with multiple counts of sex trafficking of minors in an indictment unsealed May 11, announced United States Attorney William M. McSwain.
Specifically, the defendants are charged with conspiracy to engage in forcible sex trafficking of minors, two counts of forcible sex trafficking, and three counts of forcible sex trafficking of minors. According to the indictment, Bridges and Jones committed the various sex trafficking offenses between 2012 and 2017.
“The indictment alleges that the defendants and their associates operated a violent sex-trafficking enterprise in which women and several minor children were sold for commercial sex,” said U.S. Attorney McSwain. “Stopping human exploitation, and particularly child exploitation, is a priority for the Department of Justice, and we are working very hard with our law enforcement partners to find and prosecute all such offenders. In this case, we worked with the FBI and local police in both Pennsylvania and Delaware. That’s what it’s going to take to stop the unconscionable exploitation of these young victims.”
If convicted as charged, each defendant faces a maximum possible sentence of 1life imprisonment, a mandatory minimum term of fifteen years’ imprisonment, supervised release for a minimum term of five years and a lifetime maximum term, a $1,500,000 dollar fine, mandatory restitution, and a maximum $30,600 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, the Philadelphia Police Department, the Tinicum Township Police Department, and the Newark (DE) Police Department. The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.
South Carolina Couple Sentenced to a Total of 138 Months in Prison for Trafficking Counterfeit Goods, Including Misbranded Pet MedicineRead the Press Release
David Haisten, 51, and Judy Haisten, 51, both of Irmo, South Carolina, were sentenced yesterday to 78 and 60 months of incarceration, respectively, by U.S. District Judge Gerald J. Pappert, announced United States Attorney William M. McSwain. A jury found the Haistens guilty in October 2017 of conspiracy as well as six counts of violating the Federal Insecticide, Fungicide, and Rodenticide Act, five counts of distributing misbranded animal drugs, and two counts of trafficking in counterfeit goods.
For about six years, and despite repeated warnings from numerous companies and government agencies, the defendants sold counterfeit DVDs, unregistered and misbranded pesticides, and misbranded animal drugs to customers online across the United States.
The defendants’ products, including pesticides that are extremely toxic in the wrong dose, posed a serious risk to animals and humans. Further, as detailed at trial, the defendants’ packaging and instructions for use increased the likelihood that an injury would occur.
“This joint venture generated millions of dollars in illegal income,” said U.S. Attorney McSwain. “Despite multiple warnings and cease and desist letters, the defendants continued to reinvent themselves and flout the law. Ultimately, it took federal arrests to stop them. Given their disdain for the law, the defendants deserved a substantial prison term.”
“To ensure that consumers know what they are purchasing and how to safely use these products, pesticides must be registered and properly labeled," said Susan Bodine, Assistant Administrator for the Environmental Protection Agency’s Office of Enforcement and Compliance Assurance. "Today's sentencing sends a strong signal that EPA and its law enforcement partners will hold responsible those who put consumers at risk for competitive advantage."
“The FDA is committed to working with our federal partners to bring criminals to justice who endanger our pets by distributing unapproved and unsafe drugs,” said Mark S. McCormack, Special Agent in Charge, Food and Drug Administration Office of Criminal Investigations’ Metro Washington Field Office.
“The uncontrolled distribution of unregistered and misbranded pesticides, and misbranded animal drugs pose a serious threat to public safety,” said Special Agent in Charge Marlon V. Miller, Homeland Security Investigations Philadelphia Field Office. “Let David and Judy Haisten’s sentencing serve as a reminder that our local, state and, federal partners will use all available means to investigate and prosecute individuals who disregard the rule of law.”
The case was investigated by the Environmental Protection, Criminal Investigative Division, the Food and Drug Administration Office of Criminal Investigations, and the Department of Homeland Security, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
Statement by United States Attorney William M. McSwain Regarding the Guilty Verdict in U.S. v. ShulickRead the Press Release
“I would like to commend the jury for its careful review of the evidence presented in this case. For the past three weeks, the members of the jury patiently listened to many hours of testimony about the fraud perpetrated by David Shulick on the Philadelphia School District and, by extension, the students of Delaware Valley High School’s Southwest School.
Shulick secured funding from the School District by promising to provide at-risk students with a level of guidance counseling appropriate for their needs, psychological support services, and school security. He also promised to pay teachers a decent wage. He flagrantly broke all of these promises. Instead, he took money specifically allocated for these laudable purposes and spent it selfishly on himself. The evidence presented to the jury showed that he intentionally cheated the School District, the students, and the public.
The jury found Shulick guilty of embezzling over $800,000 in federal funds allocated for use in educating at-risk high school students. In addition, the jury found Shulick guilty of conspiring with Chaka Fattah, Jr. to embezzle funds from the School District of Philadelphia, as well as bank fraud, making a false statement to PNC Bank, and filing false tax returns over multiple years. This verdict serves as a reminder that when it comes to education, my office has zero tolerance for fraud.
Moreover, the evidence at trial highlighted the breadth of Shulick’s fraud, which extended well beyond lies to the School District. In operating his school business, he lied to his accountants, lied to a bank, lied to employees, and lied to the IRS. He used his business like a personal piggy bank and a pass- through to hide his income and expenses from the IRS. He fabricated his business expenses to avoid his tax obligations and support an extravagant lifestyle, which included five-figure renovations on his vacation home at the Jersey shore, the installation of high-end speakers at his mansion in Gladwyne, and dance lessons for his children. He even disguised his housekeepers and nannies as employees of his business in order to cheat on his taxes.
I want to congratulate the trial team of Assistant United States Attorneys Michael T. Donovan, Christopher J. Mannion, Paul Gray, and Eric L. Gibson, as well as this Office’s Chief of Corruption Richard P. Barrett, and the highly skilled team of agents and analysts from the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, and the Department of Education, who worked together to expose Shulick’s shameful criminal activity and presented the evidence to the jury that resulted in his conviction. I am very proud of their dedication and service to the public.”
Pottstown Man Sentenced to 10 Years of Imprisonment for Child PornographyRead the Press Release
Shawn Kosinski, 34, of Pottstown, PA, was sentenced yesterday by U.S. District Judge Wendy Beetlestone to 10 years of imprisonment followed by 15 years of supervised release, announced U.S. Attorney William M. McSwain. Kosinski pled guilty in January to distribution, possession, and receipt of child pornography.
During the course of this investigation, law enforcement officers determined that the defendant used an internet file sharing network called GigaTribe to distribute and receive child exploitation images and videos. Investigators uncovered 235 videos and 920 images on Kosinski’s computer equipment, including some depicting prepubescent children, bondage, and bestiality. Also uncovered were extensive online “chats” with other GigaTribe users with whom Kosinski communicated in order to distribute and receive child exploitation images and videos.
“My Office and the Department of Justice are committed to identifying the criminals who commit child sexual exploitation and making sure each pays a severe penalty,” said U.S. Attorney McSwain. “Given the horrific nature of the offenses in this case, we believe the long prison sentence is absolutely justified and appropriate.”
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.
This case was investigated by the Department of Homeland Security/Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Jennifer B. Jordan.
Delaware County Man Sentenced to 30 Years in Federal Prison for Manufacturing and Possessing Child PornographyRead the Press Release
PHILADELPHIA – Kristopher Pylant, of Upper Darby, PA, was sentenced on May 3, 2018, to 30 years in federal prison for manufacturing thousands of sexually explicit images of his minor stepdaughter and for his possession of child pornography, announced U.S. Attorney William M. McSwain.
“This was a horrific crime in which a young victim endured an unimaginable ordeal for over three years,” said U.S Attorney McSwain. “The defendant victimized and sexually assaulted his stepdaughter beginning when she was just 13 years old, and he cruelly videotaped his assaults.”
U.S. District Judge Cynthia M. Rufe called the sexual assaults “sordid” and the defendant “dangerous and controlling.” Judge Rufe further characterized the defendant’s absolute control over his stepdaughter by noting, “You don’t need chains and whips to put someone in bondage.”
In addition to the term of imprisonment, the court imposed a lifetime of supervised release and ordered that the defendant have no contact with the victim or her family for the rest of his life.
The case was investigated by the FBI in conjunction with the Delaware County District Attorney’s Office and the Upper Darby Police Department. It was prosecuted by Assistant United States Attorney Michelle Rotella.
Philadelphia Man Charged with Failing to Register as a Sex OffenderRead the Press Release
James Samuel McKethan, 51, of Philadelphia, and formerly of Baltimore, Maryland, was charged today by indictment with failure to register as a sex offender, announced U.S. Attorney William M. McSwain.
McKethan was previously convicted of 4th degree sexual contact in Maryland and, as a result of his conviction, is required to register as a sex offender. When he failed to update his sex offender registration as required, a warrant was issued for his arrest. The U.S. Marshal Service located him in Philadelphia after it was discovered that he had been residing and working in Pennsylvania for all four quarters of 2017, but had failed to register his sex offender status with the Pennsylvania State Police.
If convicted, the defendant faces 10 years’ imprisonment, 3 years’ supervised release, a $250,000 fine, and $100 special assessment.
The case was investigated by the U.S. Marshal Service and is being prosecuted by Assistant U.S. Attorney Michelle Rotella.
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.
Connecticut Man Charged with CyberstalkingRead the Press Release
Jacob Waitze, 22, of Southbury, Connecticut, was charged today by criminal information with cyber-stalking, announced United States Attorney William M. McSwain.
The information alleges that, from October 23, 2015, through February 16, 2016, Waitze used an interactive computer service and an electronic communication system to engage in a course of cyber-stalking that caused substantial emotional distress to another individual.
If convicted as charged, the defendant faces a maximum possible sentence of five years’ imprisonment, supervised release for a maximum term of three years, a $250,000 dollar fine, full restitution of as much as $10,000, and a mandatory $100 special assessment.
The case was investigated by Homeland Security Investigations, the Philadelphia Police Department, and the Drexel University Police Department. The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Allentown Man who Bribed Allentown Mayor and Reading School Board President Sentenced to 18 Months in PrisonRead the Press Release
James Hickey, 54, of Allentown, was sentenced today to 18 months in federal prison by U.S. District Judge Juan Sanchez, announced U.S. Attorney William M. McSwain.
Today’s sentencing stemmed from Hickey’s guilty plea in December 2017 to two sets of criminal charges. First, Hickey pled guilty to bribing the Reading school board president in exchange for confidential information about a company’s bid on an energy contract with the school district; Hickey admitted that he wanted this confidential information so that his client could submit a lower bid. Second, Hickey pled guilty to giving campaign contributions to Allentown Mayor Ed Pawlowski so the mayor would steer the city’s street lights contract (worth about $3 million) to a company called The Efficiency Network, for which Hickey worked as a consultant. As stated in the government’s sentencing memo, Hickey said he would provide a steady stream of contributions to Pawlowski but that Pawlowski “has got to perform.” Following a six-week trial that ended in February, a jury found Pawlowski guilty for his part in the pay-to-play scheme.
“This was textbook pay-to-play, and this defendant played it brazenly,” U.S. Attorney McSwain said. “He corrupted the contracting process of each city and left no room for an honest evaluation of contracts for the benefit of the citizens. Under these circumstances, we believe the prison sentence was absolutely justified.”
The case 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. The case is being investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation and Pennsylvania State Police.
Missouri Man Charged with Production and Possession of Child PornographyRead the Press Release
Joseph Michael Willard, 54, of Missouri, was indicted April 26 for the production and possession of child pornography, announced United States Attorney William M. McSwain. The indictment alleges that Willard produced and possessed images of minors – including one under age 12 – engaged in sexually explicit conduct.
“The young victims in cases like these are victimized over and over again because the horrific images stay in circulation forever,” U.S. Attorney McSwain said. “We are working diligently with our law enforcement partners to stop child exploitation, which is a national problem.”
If convicted the defendant faces a maximum possible sentence of lifetime incarceration, a mandatory minimum twenty-five years imprisonment, a mandatory minimum five years supervised release up to lifetime supervised release, a $1,750,000 fine, a $35,700 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.
Connecticut Woman Charged with Enticing a Minor and Traveling to Pennsylvania for a Sexual EncounterRead the Press Release
Sarah Norton, 38, of Jewett City, Connecticut, was charged by indictment April 26 with enticing a minor and traveling to engage in illicit sexual conduct with a minor, announced United States Attorney William M. McSwain.
The indictment alleges that, via the internet, the defendant tried to persuade an individual whom she believed was 14 years old to engage in sexual activity, and that she traveled to Pennsylvania to pursue a sexual encounter.
If convicted the defendant faces a maximum possible sentence of lifetime incarceration, a mandatory minimum ten years imprisonment, a mandatory minimum five years supervised release up to lifetime supervised release, a $500,000 fine, a $10,200 in special assessments.
The case was investigated by the Upper Macungie 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 with Sending Harassing TextsRead the Press Release
Bryan McGraw, 49, of Philadelphia, was charged today by criminal information with sending harassing text messages over a four-year period, announced United States Attorney William M. McSwain.
The information alleges that McGraw repeatedly sent communications between February of 2014 and March of 2018, via a telecommunications device, solely for the purpose of harassing a specific individual.
If convicted the defendant faces a maximum possible sentence of 2 years imprisonment, 1 year of supervised release, a fine of $250,000, restitution, forfeiture, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florida man charged with traveling across state lines for sex with minorRead the Press Release
Liam Heim, 22, of St. Petersburg, Florida, was charged today by indictment with traveling in interstate commerce to engage in illicit sexual conduct with a minor, and transportation of a minor in interstate commerce with intent to engage in unlawful sexual activity, announced United States Attorney William M. McSwain. The indictment alleges that Heim committed each offense on March 29, 2018.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If convicted as charged, the defendant faces a maximum possible sentence of 1ife imprisonment, a mandatory minimum term of ten years’ imprisonment, supervised release for a minimum term of five years and a lifetime maximum term, a $500,000 dollar fine, mandatory restitution, and a maximum $10,200 special assessment.
The case was investigated by Homeland Security Investigations, the Philadelphia Police Department, Philadelphia Airport Police, the Camden County Prosecutor’s Office, and Collingswood Police Department. The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Darby Man Charged with being a Felon in Possession of a FirearmRead the Press Release
Kareem Murphy, 36, of Darby, was charged today by indictment with being a felon in possession of a firearm, announced United States Attorney William M. McSwain.
If convicted, the defendant faces a minimum sentence of 15 years and a maximum sentence of life imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Nancy Rue.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Remarks of United States Attorney McSwain Addressing the Philadelphia Police DepartmentRead the Press Release
Remarks as prepared for delivery
Thank you very much, Deputy Commissioner Coulter, for that kind introduction. It is truly an honor to be here with all of you. And it is the honor of my lifetime to serve as your United States Attorney.
I’m going to talk to you today for a while, but before I get into the details of my speech, I have a message for you. It’s an important message, a serious message – it’s a message you need to hear. I’m going to keep it real simple. Are you listening? I want everyone in this room to look at me right now and hear this message.
I love what you do. I love what you stand for. When you put on your uniform, you are telling the world that you have dedicated your life to public service, dedicated your life to keeping our communities safe – and that you’re even willing to risk your own life to do it. I respect you, I admire you, and I thank you. Everybody in this room is a hero to me. That’s what I think, and now you know exactly where I stand.
I am blessed to be leading a U.S. Attorney’s Office that is filled with good, honorable, dedicated prosecutors who want nothing more than to serve the public and do justice. And they are very, very good at what they do. But no prosecutor has ever prosecuted any case without the help of an outstanding law enforcement partner, like our partners in the Philadelphia Police Department.
Throughout my life, I have always been interested in how others define their core values. After all, those who spend the time considering and publicly stating their values are more likely to follow through and live their lives based on those values. The Philadelphia Police Department memorializes its values in the Department motto on its official shield: “Honor, Service, Integrity.” You believe in these values so strongly that you literally wear them on your uniform sleeve every single day. The Department’s stated mission is to be the model of excellence in policing by partnering with the community to fight crime, enforcing laws while safeguarding the constitutional rights of all people, and providing quality service to all of Philadelphia’s residents and visitors. The Department also strives to recruit, train, and develop exceptional individuals within its ranks.
When I consider the Department’s values, they make me thankful, and they make me proud. I see many of my own core values mirrored in those of this Department. This should come as no surprise. After all, the missions of the U.S. Attorney’s Office and the Philadelphia Police Department are rooted in the same foundation: to serve and protect the community, and to do justice. Earlier this month, in my first few days as the U.S. Attorney, I met with all of my prosecutors to explain my core values to them. These values help us to pursue justice and serve our community in every situation, no matter the individual, location, or circumstance. My core values are these: accountability, bravery, integrity, respect, determination and excellence. These are values that are also embraced by Commissioner Ross and this Department.
And living by these values has allowed the U.S. Attorney’s Office and the Philadelphia Police Department to achieve great success in the pursuit of justice. For example, together, we continue to fight the war against the opioid epidemic. In late December, four Philadelphia men (Basil Bey, Reginald White, Tyrik Upchurch, and Amin Wadley) were convicted by a federal jury on all counts in connection with their participation in a large heroin and crack cocaine distribution ring. For over a year and a half, this group worked in shifts to sell these deadly narcotics nearly 24 hours a day, seven days a week to customers in South Philadelphia. Some of these drug deals were within 1,000 feet of a playground. Due to the dedicated efforts of this Department and other law enforcement, we were able to obtain a wiretap in the case, and law enforcement made approximately thirty-five controlled purchases of heroin and/or crack from this drug group, with all purchases being captured on video. It is this kind of extensive and dedicated police work that allowed a jury to return a verdict of guilty on all counts. Congratulations to the 1st, 3rd and 17th Police Districts – over a dozen Task Force Officers and police officers testified at trial and assisted in the investigation.
We also know that drug-trafficking is not just happening in the streets, but also in doctor’s offices across our jurisdiction. Just this month, in another joint effort with your Department, Dr. Azad Khan was sentenced to two years in prison for conspiracy to distribute controlled substances and two counts of distribution of controlled substances. Khan and his doctor co-defendants held themselves out as professional addiction treatment specialists, but instead preyed on the very people they should have been helping. They abandoned their ethics to engage in the prescription-for-pay criminal world, recklessly selling preprinted prescriptions for cash and choosing greed over their duty to heal. Dr. Khan would not have been indicted and convicted at trial without the determination and dedication of this Department. Congratulations to the Department’s Intensive Drug Investigation Squad for its undercover work during this investigation.
And we do not only pursue resolutions in the courtroom, but outside of the courtroom as well. In February, the U.S. Attorney’s Office announced that it had joined with the Philadelphia Police Department and other federal, state, and local law enforcement partners to form an Opioid Law Enforcement Task Force. The Task Force will be responsible for developing, implementing, and coordinating a robust prosecution response to this national health emergency, and the Task Force could not be successful without your partnership.
Our work together does not only involve the drug epidemic. For example, in January, a federal grand jury returned a five-count indictment, charging defendant Kenneth Lewis with wire fraud. The indictment alleges that the defendant committed wire fraud by applying for credit cards using information of several non-profit organizations and an individual, and used the cards to purchase gold coins, precious metals, and diamond earrings. In this case, your Department partnered with the U.S. Postal Service in its investigation. Kudos to detectives in the Northeast Division for helping to put this case together.
And just last month, a grand jury returned a federal indictment charging Shyniquah Lightner and Malik Hudson with sex trafficking of a minor. According to the Indictment, the defendants used force, threats of force, fraud, and coercion to make multiple women engage in commercial sex acts, with two of those females being under 18 years of age. If convicted, each defendant faces a mandatory minimum of 15 years of incarceration, up to a lifetime sentence. It was this Department’s hard work and collaboration with the U.S. Attorney’s Office and other partners on the Philadelphia Anti-Human Trafficking Task Force that made this investigation successful and furthered our collective goal to keep our children safe from exploitation. Congratulations to your Special Victims Unit – Anti Human Trafficking Task Force for its work on that case.
I could go on and on about our successful pursuits together. It is by living this Department’s values – Honor, Service, Integrity – that allows everyone in this room and on this force to pursue challenging investigations, succeed in stopping crimes, and hold the responsible parties accountable. And you have had many successes, and I know that you will continue to do so. But that does not mean that this will always be an easy road.
Indeed, it is harder today than perhaps in any time in American history to be serving in law enforcement. It has become somewhat fashionable in certain segments of the population to come out against the police and law enforcement. To his great credit, Commissioner Ross has not shied away from having an open dialogue about this criticism. Commissioner Ross has embraced this challenge, to make sure that every individual in every community knows that this Department is here for them, to serve and protect them. He has stressed building partnerships across this city, and under his leadership, this Department has made great strides.
But even with such strides, we all know that each and every one of you lives your life under a microscope. And not only are the police under scrutiny like never before, the tools of that heightened scrutiny are ever-present. Everything that you do and everything that you say can be posted on Facebook, tweeted, and made into a national news story in a matter of seconds. For those of you with family members who have previously served in law enforcement, this is one of those times where you can tell them at the Thanksgiving table that you do, in fact, have it much harder than they ever did.
You need to be aware of this constant drumbeat of attention. But I encourage you not to shy away from it. I want you to embrace it. Because when the media and the citizens of our community actually get the opportunity to look more closely, they get to see hard-working police officers who are keeping our communities safe every single day. Some agenda-driven individuals may want to highlight a more critical viewpoint for their own purposes. But I prefer to deal with the truth that can be found in statistics and facts, rather than in anti-factual ideology.
The fact is that officer-involved shootings have decreased significantly over the past few years. In 2012, there were 59 officer-involved shootings in Philadelphia. In 2017, there were 14, which is a 76% decrease from 2012 and over a 41% decrease from only the year before. I know that this is not by happenstance or good fortune, but by Commissioner Ross’s and the Department’s focus on improved training, internal accountability, and an ever-present commitment to public safety. These are not the only numbers that are down. Compared to this time last year, homicide is down by approximately 15%. This is due to many factors, including your ability to build better and lasting relationships between different Philadelphia communities and law enforcement. This Department has made foot patrols a staple of its strategy. Every new police officer walks a foot beat, and this makes a real difference in this city. It helps the community see you, and it shows our citizens that you are responsive and available for developing meaningful relationships and for having conversations with them, not just in an emergency, but in everyday life.
This Department has seen many successes under Commissioner Ross’s leadership. Not only do the statistics prove that, but so does the fact that I easily found those statistics (and many more) on the Internet, right on the website of the Philadelphia Police Department. And the free-flowing information does not end there. This Department now uses social media to connect with the world, providing testimonials by and for current and future police officers, while also trying to entice the public to learn more in order to have a greater understanding of who you are and what you do. Under the Commissioner’s leadership, this Department has embraced transparency more than ever before. There are real benefits of such openness with the community. First, this kind of transparency is one of many tools that can be used in crime prevention, and it may help spark community ideas as to how to solve some of our problems. Second, the community deserves to have access to information detailing where crime is occurring. Finally, when the community sees this hard data, our residents understand the determination and successes that you have on a daily basis, and can rest assured that their trust and faith in you is deserved.
Two and a half years ago, when Mayor Kenney first announced that Commissioner Ross would lead the Department, the Commissioner answered questions from the press. I was struck at the time, and I still am, that he stated that he wanted everyone at the table and wanted to hear everyone’s input. Commissioner Ross encouraged everyone to roll up his or her sleeves and get in there. In committing both himself and this Department to improving the quality of life in Philadelphia, Commissioner Ross hoped that everyone would “take something and make it a little better than the way you found it.”
There will always be opportunities to make things better. This Department, the U.S. Attorney’s Office, and the City of Philadelphia will continue to face challenges. Philadelphia has a population of over 1.5 million people, making it the sixth most populous city in the country. This Department is the nation’s fourth largest police department, with over 6,300 sworn members and 800 civilian personnel. And while this entire Department works tirelessly to keep crime down, none of us will ever be able to eradicate crime entirely. While homicides are down in 2018, there were more homicides in the city in 2017 than there had been in any year since 2012.
One of Philadelphia’s greatest challenges right now continues to be the struggle against gun violence. I know that this Department is battling against the gun violence epidemic every single day, in part by sending officers to the most violent parts of the city at the most violent times of day. It is your determination, your hard work, and your bravery that will continue to chip away at the violence that threatens this city.
Philadelphia needs you now more than ever. We know what happens if the officers in a police department become demoralized and let it affect their work. All we have to do is look to our neighbor to the south, the City of Baltimore, which is now described as the most dangerous city in America, with an alarmingly high rate of violence and the highest per capita murder rate in the country. We’ve come too far in Philadelphia to go backwards now. We can’t become the next Baltimore. The law-abiding citizens of this City deserve better – they deserve safe neighborhoods where they can work and play without fear. They deserve your best efforts. They are counting on you, and so am I.
I know there are many leaders within the Department here today, and I want to salute your continued stewardship of this force over all of these years. You have led this Department proudly to where it stands today. And just as importantly, we have the most recent recruits in the Police Academy. To the newest members of the Department, I want to congratulate you on your success in getting here and on your willingness to devote yourselves to public service.
If you only remember one thing that I say today, I want you to remember this: thank you. Thank you for your partnership with the U.S. Attorney’s Office in pursuing justice. Thank you for your leadership in the community and for keeping all of us safe. Thank you for the sacrifices that you and your loved ones make on a daily basis. While I have never had the honor of serving as a police officer, I did serve as a Marine prior to my legal career. I know that the hours are long, that the danger is real, and that the salary will never match what you deserve and what you could earn in the private sector. But we do not serve for the pay or the glory. We serve because there is no greater purpose in this life than to serve others.
So on your longest, hardest, most challenging days, do not give up. Remember that the U.S. Attorney’s Office stands beside you; we could not do our work without you. We see your service and we know your sacrifice. Remain determined in your pursuit of Honor, Service, and Integrity. In the words of the Apostle Paul in the New Testament: “Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up.”
Thank you, and God Bless you all.
Levittown Man Sentenced to 10 Years in Prison for Possession and Transportation of Child PornographyRead the Press Release
David Fetterolf, 54, was sentenced on April 25 to 10 years in prison for possessing more than 600 images and 29 videos of children being sexually abused, and for sharing the images and videos via the internet, announced United States Attorney William M. McSwain. Fetterolf pled guilty in November. Following his prison term, Fetterolf will be subject to a 10-year period of supervised release. He also received a $100,000 fine.
“This is a horrifying crime committed by a defendant who exploited children for his own sexual gratification,” U.S. Attorney McSwain said. “Fetterolf is part of a community of deviant individuals who enjoy watching the innocence of young children shattered, their intimate privacy destroyed, and the worst moments of their young lives documented forever for others.”
Fetterolf had a collection of child pornography images that included those depicting bondage and sadistic conduct.
“In a case like this, it’s important to remember his many young victims,” continued U.S. Attorney McSwain. “Each image downloaded by the defendant depicts a horrifying, life-changing moment for a child.”
The case was investigated by Homeland Security Investigations and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorney Sherri Stephan.
In His First Public Address to Law Enforcement, U.S. Attorney William M. McSwain Offers Words of Encouragement to Philadelphia PoliceRead the Press Release
PHILADELPHIA, Pa. — In his first public address to law enforcement since being sworn in as U.S. Attorney, William M. McSwain told Philadelphia police commanders, and this year’s class of recruits, that he wants them to know exactly where he stands.
“I love what you do,” U.S. Attorney McSwain said. “I love what you stand for. When you put on your uniform, you are telling the world that you have dedicated your life to public service, dedicated your life to keeping our communities safe - and that you’re even willing to risk your own life to do it. I respect you, I admire you, and I thank you. Everybody in this room is a hero to me.”
U.S. Attorney McSwain told the officers he’s well aware that they are living and working under a microscope and that this might be the most difficult time in history to be a police officer.
“And not only are the police under scrutiny like never before,” he said, “but also the tools of that heightened scrutiny are ever-present. Everything that you do and everything that you say can be posted on Facebook, tweeted, and made into a national news story in a matter of seconds. For those of you with family members who have previously served in law enforcement, this is one of those times where you can tell them at the Thanksgiving table that you do, in fact, have it much harder than they ever did.”
U.S. Attorney McSwain encouraged officers not to become discouraged by this increased scrutiny but, instead, to embrace it. “Because when the media and the citizens of our community actually get the opportunity to look more closely, they get to see hard-working police officers who are keeping our communities safe every single day.”
“If you only remember one thing that I say today, I want you to remember this: thank you. Thank you for your partnership with the U.S. Attorney’s Office in pursuing justice. Thank you for your leadership in the community and for keeping all of us safe. Thank you for the sacrifices that you and your loved ones make on a daily basis.”
Philadelphia Bank Teller Charged with Stealing Customer IdentitiesRead the Press Release
Elizabet Tskhadiashvili of Philadelphia, was charged April 20 by criminal information* with bank fraud and aggravated identity theft, announced United States Attorney William M. McSwain.
The information alleges that Tskhadiashvili, a teller at a Philadelphia branch of TD Bank, obtained bank customers’ personal identifying and account information from approximately January through March 2017, which she then provided to two other individuals who used the information to make withdrawals from the accounts of those customers.
“Thousands of dollars in withdrawals were made,” said U.S. Attorney McSwain. “Personal and account information of bank customers must be protected, first and foremost by bank employees themselves.”
If convicted the defendant faces a maximum possible sentence of 32 years.
The case was investigated by Homeland Securities Investigations, and is being prosecuted by Assistant United States Attorney Judy Smith.
H-1B Tech Staffing Company Owner Sentenced to Prison for Collecting Illegal Filing Fees from Visa RecipientsRead the Press Release
Ramesh Venkata Pothuru, who collected over $450,000 in illegal filing fees and related expenses from more than 100 fraudulent visas and employer-sponsored green cards for nonimmigrant workers from his native India, was sentenced Thursday to one year and one day in prison by U.S District Judge John R. Padova.
On January 9, Pothuru, former owner and operator of Virgo Inc. and Isync Solutions, Inc., pled guilty to wire fraud and visa fraud for his role in the scheme.
The investigation disclosed that between 2010 and 2013, Pothuru collected hundreds of thousands of dollars in filing fees from workers he was sponsoring under the H-1B nonimmigrant worker visa program. Federal regulations prohibit employers from soliciting payments from H-1B nonimmigrant workers to cover the costs associated with filing fees, which fees are required by law to be borne by the sponsoring U.S. employer. In addition, many of the H-1B nonimmigrant workers were also recipients of employer-sponsored permanent foreign labor certification applications filed by Pothuru with the Department of Labor. Permanent foreign labor certification filings typically involve costs of over several thousand dollars in addition to the filing fees; Pothuru unlawfully collected both from the employees.
Pothuru collected these illegal fees and expenses from the employees he sponsored for H-1B visas and green cards through direct payments to his personal bank accounts. He subsequently submitted false applications in which he did not identify the fees that he collected from the nonimmigrant workers and swore that he did not collect.
“The defendant not only collected hundreds of thousands of dollars from these nonimmigrant workers, but he also made millions by operating his fraudulent business based on workers who received these visas,” said U.S. Attorney William M. McSwain. “The defendant took advantage of these workers from his home country and also undermined the integrity of the H-1B visa and green card programs. This sentence serves both as a deterrent and as protection from a defendant who has already demonstrated a stunning disregard for the law.”
“The Diplomatic Security Service is firmly committed to making sure that those who commit visa fraud face consequences for their criminal actions,” said Joseph S. Ugarte, Acting Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service, New York Field Office (“DSS”). “The strong relationship we enjoy with the U.S. Attorney’s Office and other law enforcement agencies around the world is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests.”
This is a joint investigation with U.S. Department of State’s Diplomatic Security Service, Department of Homeland Security, and Department of Labor, Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorney Jennifer Jordan.
Former Liberian War Lord Known as “Jungle Jabbah” Sentenced to 30 Years in Prison for Immigration Fraud and PerjuryRead the Press Release
Mohammed Jabbateh, a violent and ruthless Liberian war lord also known as “Jungle Jabbah,” who had been living in East Lansdowne, Pennsylvania was sentenced today to 30 years in prison by U.S. District Judge Paul S. Diamond. Jabbateh, 51, was found guilty in October of two counts of fraud in immigration documents and two counts of perjury.
During the height of Liberia’s first civil war from 1992 to 1995, Jabbateh, while serving as commander of a warring faction known as the United Liberation Movement of Liberia for Democracy (ULIMO), committed various acts of shocking brutality including rapes, sexual enslavement, slave labor, murder, mutilation and ritual cannibalism. He also used children as soldiers.
“This defendant committed acts of such violence and depravity that they are almost beyond belief,” said U.S. Attorney William M. McSwain. “This man is responsible for atrocities that will ripple for generations in Liberia. He thought he could hide here but thanks to the determination and creativity of our prosecutors and investigators, he couldn’t. This prosecution was our only option under the law and his sentence achieves at least some measure of justice for his victims.”
According to trial testimony, in one instance Jabbateh ordered the heart of a captive be cooked and fed to his fighters. In another, fighters under the defendant’s command murdered a villager, removed his heart and ordered the town chief’s wife to cook it. Jabbateh later had the town chief himself murdered and ordered his widow to cook her husband’s heart.
In December 1998, when making application for asylum, and later for permanent legal residency, the defendant was not truthful about his activities during Liberia’s first civil war while he was a member of the ULIMO and later ULIMO-K rebel groups that battled for control of Liberia.
At Jabbateh’s trial, during two weeks of testimony from some two dozen witnesses, including 17 Liberian victims, the jury heard evidence that Jabbateh, as a ULIMO commander, either personally committed or ordered ULIMO fighters under his command to commit the following offenses: the murder of civilian noncombatants; the sexual enslavement of women; the maiming of civilian noncombatants; the torturing of civilian noncombatants; the enslavement of civilian noncombatants; the conscription of child soldiers; the execution of prisoners of war; the desecration of corpses and ritual consumption of human flesh; and the killing of persons because of race, religion, nationality, ethnic origin or political opinion.
“Let today’s sentencing serve as an example of Homeland Security Investigations (HSI) commitment to bring to justice individuals such as Mr. Jabbateh,” said Marlon Miller, special agent in charge of HSI’s Philadelphia office. “Human rights violators will not evade justice and will be held accountable for their crimes committed abroad, nor will they find refuge here in the United States.”
The case was investigated by Homeland Security Investigations (HSI) special agents Mark Gilland, Tom Eyre and Al Cabrelli, along with HSI Supervisory Special Agent Brian Jones. Also aiding in the investigation were Africa research specialist Marian Drake and victim assistance specialist Jackie Goldstein.
This case is being prosecuted by Assistant U.S. Attorneys Linwood C. Wright, Jr. and Nelson S.T. Thayer, Jr.
A Cautionary Tale on Tax Day: Penn Valley Accountant Sentenced to Prison for Tax EvasionRead the Press Release
Craig Rosen, 61, a wealthy businessman who, for four years, failed to file federal income tax returns or pay taxes, was sentenced Monday to one year and one day in prison by U.S. District Judge Berle M. Schiller. Rosen pleaded guilty in November to four counts of tax evasion.
The defendant, who has a degree in accounting, owned and operated several successful businesses associated with medical treatment and pain relief. In each of the years 2009 through 2012, he earned income ranging from $175,000 and $432,000, but failed to file tax returns, report income or pay taxes for any of those years. He also took steps to conceal his true income, including paying personal debts from accounts that were not in his name.
“It’s our responsibility as Americans to comply with our tax laws,” said U.S. Attorney William M. McSwain. “This was a particularly brazen disregard of that responsibility, especially when you consider the defendant is an accountant. A prison sentence will serve as a deterrent to those who believe they can ignore the law and escape accountability.”
The explanation Rosen gave to investigators for his decision to stop paying taxes was his desire to avoid having to pay a large civil judgment owed to a former business partner. But, as prosecutors wrote in the government’s sentencing memo, “a desire to avoid paying a private creditor neither explains nor excuses a decision not to pay taxes.”
The case was investigated by the Internal Revenue Service and was prosecuted by Assistant U.S. Attorney Bea Witzleben.
Philadelphia Woman Charged with Conspiracy to Defraud the United StatesRead the Press Release
Margaret Ortiz, 35, of Philadelphia, Pennsylvania pleaded guilty today to an Indictment charging her with Conspiracy to defraud the United States through claims, announced United States Attorney William M. McSwain.
According to the indictment and her admissions to the Court, Margaret Ortiz and others engaged in a scheme to deposit and cash federal income tax refund checks that were obtained by the filing of false federal income tax returns. The returns were filed in the names of stolen identities and, in the majority of cases, falsely claimed refunds of taxes that were never withheld. The total of the fraudulently obtained refund checks deposited into accounts Ortiz controlled exceeded $80,000.
As a result of her guilty plea, the defendant faces a maximum possible sentence of 10 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment. United States District Judge Paul S. Diamond set sentencing for July 26, 2018.
The case was investigated by Internal Revenue Service-Criminal Investigation and is being prosecuted by Assistant United States Attorney David J. Ignall.
South Jersey Business Owner Charged with Tax FraudRead the Press Release
Chung Lam, age 39, of Sicklerville, New Jersey, was charged today by Information with 12 counts of failure to collect and pay taxes, in violation of 26 U.S.C. § 7202, announced United States Attorney William M. McSwain. Lam owned a C&L Labor, a company that provided temporary workers to other companies. Lam paid hundreds of its employees in cash, as “under the table” wages on which no employment taxes were withheld.
If convicted the defendant faces a maximum possible sentence of 60 years imprisonment, a fine of $3,000,000, a special assessment of $1,200, and three years of supervised release.
The case was investigated by the Internal Revenue Service 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.