Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Charges Filed Against Nine Members of Kensington Area “TRUHITTAZ” Drug Trafficking GroupRead the Press Release
PHILADELPHIA – A 44-count Second Superseding Indictment, unsealed today, charges nine people with conspiring to distribute phencyclidine (“PCP”) and cocaine base (“crack”) in the Kensington section of Philadelphia, announced United States Attorney William M. McSwain.
Charged are: James Grimes, a/k/a “Speedy,” “Dink,” “HM,” 27, Hassain Griffin, a/k/a “Glizzy,” “Frizzy,” “ODOG,” “GlizzytheHitta,” 23, Andrew Gault, a/k/a “Fly,” “Butterknife King,” “BKK,” 26, Katina Grimes, a/k/a “Snoop,” “SnoopdaHitta,” 29, Tyreeq Lenair, a/k/a “Bear,” 26, Quran Justice, a/k/a “Skee,” 21, Wayne Brunson, a/k/a “Weez,” 23, Unterrio Parris, a/k/a “Dudda,” “Didda,” 24, Anthony Hill, a/k/a “Turk,” “Turt,” 27, all living in Philadelphia.
In addition to the conspiracy count, the defendants are charged in multiple counts of distribution of phencyclidine, distribution of cocaine base, possession with the intent to distribute phencyclidine, possession with the intent to distribute cocaine base, distribution of controlled substances within 1000 feet of a school, possession with intent to distribute controlled substances within 1000 feet of a school, maintaining a drug house, unlawful use of a communication facility in furtherance of a drug trafficking crime, possession of a firearm in furtherance of a drug trafficking crime, use and carrying of a firearm in furtherance of a drug trafficking crime (see attached chart).
“This was an organized, methodical and violent group of drug dealers who used force to protect their business and their turf,” said U.S. Attorney McSwain. “This organization and others like it effectively hold neighborhoods hostage. If law abiding citizens are going to live without fear, we have to do everything possible to shut these organizations down.”
According to the Second Superseding Indictment, the conspiracy existed from approximately June 2014 to November 2016. Defendants James Grimes and Hassain Griffin led and organized the drug trafficking group that referred to itself as the “TruHittaz” (hereinafter, “the TruHittaz DTG”). The TruHittaz DTG conducted their drug trafficking activities on and around the 700 and 800 blocks of East Willard and East Madison Streets in Philadelphia, PA. The TruHittaz DTG obtained quantities of phencyclidine, cocaine base, heroin, marijuana, and other controlled substances from suppliers, both outside and within the Eastern District of Pennsylvania. The TruHittaz DTG then distributed in excess of 1 kilogram of phencyclidine, 280 grams of cocaine base, and quantities of heroin, marijuana, and other controlled substances in and around their drug territory.
"This investigation is an example of ATF’s dedication to working with our state, local and federal partners in identifying, targeting, and investigating violent criminals who are involved in selling narcotics and firearms. These offenders prey upon innocent citizens and lessen the quality of life in our neighborhoods,” said Special Agent in Charge Donald Robinson. “Our neighborhoods deserve to exist without fear and intimidation inflicted by these violent gangs. These arrests should significantly impact the violent drug related violence that has wreaked havoc throughout Philadelphia.”
The TruHittaz DTG separated and packaged bulk quantities of liquid phencyclidine and cocaine base into different distribution quantities, and then distributed and sold the drugs to customers in and around their drug territory. A large part of the area in which the TruHittaz distributed and possessed with the intent to distribute drugs was located within 1,000 feet of several area schools.
The TruHittaz DTG classified themselves and each other as “bosses” or “shot callers,” “caseworkers,” “trappers,” and “lookouts,” delineating their role(s) in the organization. “Lookouts” watched for and alerted other members of the TruHittaz DTG to the presence of law enforcement in the area. “Trappers” sold drugs on the block, and “caseworkers” oversaw and supervised those sales. The “bosses” (also referred to as “shot callers” and “top callers”) of the TruHittaz DTG supplied controlled substances to the block and set the prices of, and received payments for, the controlled substances sold on the block. The TruHittaz DTG sold drugs in and around their drug territory 7 days a week and 24 hours per day. The TruHittaz DTG divided drug sales into day and night shifts, with the day shift running approximately 10:00 a.m. to 10:00 p.m. and the night shift running from 10:00 p.m. to 10:00 a.m. The TruHittaz DTG staffed these shifts with lookouts, one to two caseworkers, and at least two trappers –one of whom sold phencyclidine and the other of whom sold cocaine base. When one member of the TruHittaz DTG – at any level of the group – was unavailable, another member stepped into that role.
Members of the TruHittaz DTG had specific hand signals and logos to denote their membership in the TruHittaz including a hand signal that formed an “H” for “Hittaz.” Members of the TruHittaz DTG used coded language to refer to the type and amount of phencyclidine, cocaine base, and other controlled substances for sale, such as, “hard” and “the ball game” (to refer to crack), “dime” and “basketball” (to refer to a packet/bundle of crack), “oranges” (to refer to larger quantities of crack) “dippers” or “dips” (to refer to cigarettes dipped in liquid PCP), “wet,” and “water” (to refer to liquid PCP), “fat bitches,” “a hizzy,” and a “soda” (to refer to various quantities of liquid PCP), “soccer balls” (to refer to marijuana), and “footballs” (to refer to heroin). Members of the TruHittaz DTG also used the phrases “the jungle” and “the block” to refer to their territory at or around the 700 and 800 blocks of East Willard and East Madison Streets and the term “trapping” to refer to selling controlled substances. The TruHittaz also used coded language to warn each other of the presence of law enforcement, such as, “Mayback” to refer to the presence of police officers in vehicles, “Rollers” to refer to the presence of police officers on bicycles, and “Phantoms” to refer to the presence of police officers on foot.
Members of the TruHittaz DTG tried to get customers to buy from them individually, and sold drugs in concert with each other, with members providing Adippers@ B cigarettes dipped in liquid phencyclidine and small bags of crack cocaine that were sold for $10 with increased dollar value correlating to an increased quantity of drugs. Members of the TruHittaz DTG also sold controlled substances in larger amounts, including a half-ounce, an ounce, and up to sixteen ounces of PCP and/or ounce or bulk quantities of crack cocaine. When multiple members sold drugs in concert with each other, each participating member received a portion of the profits from the sale relative to his/her contribution. Individuals acting as “lookouts” for the TruHittaz DTG also received a portion of the profits of drug sales for the shift worked by the lookout. All members of the TruHittaz DTG, regardless of their role at a given time, were paid in proportion to the amount of drugs sold on a given shift, so that the higher the quantity of drugs sold, the higher the profit each member received.
The TruHittaz DTG used residences in Philadelphia as “stash houses” and “trap houses” to store and package bulk quantities of PCP, crack cocaine, and other controlled substances for distribution and to collect and store the proceeds from their drug sales. These houses included 7606 Castor Avenue, Apartment B (also referred to as “the AP”), 763 East Willard Street, 744 East Madison Street, 755 East Madison Street (also referred to as “the trap house”), 810 East Willard Street, as well as vacant lots on both 800 East Willard and East Madison Streets, and abandoned properties.
The TruHittaz DTG used several vehicles to transport controlled substances to the block, to store controlled substances for the block, to transport controlled substances to drug customers at various locations, and to pick up proceeds of drug sales. These vehicles included: a black GMC Yukon Denali; a dark blue Dodge Charger; a maroon Pontiac Montana van; a silver Lincoln MKS; and a silver Chrysler 300.
Members of the TruHittaz DTG did not permit non-DTG members to sell drugs in their territory. To protect their territory, drug trafficking activities, drug customers, and drug proceeds, members of the TruHittaz DTG purchased, routinely carried, and sometimes used loaded firearms, and also kept firearms in hidden locations, including the “stash” house at 744 East Madison Street and at or around vacant lots at both 800 East Willard and East Madison Streets. Members of the TruHittaz DTG referred to these firearms as “gats,” “ratchets,” “tools,” and/or “block guns.” Members of the TruHittaz DTG used juveniles, to carry firearms and sell controlled substances to customers of the TruHittaz DTG. The “bosses” and “upper management” of the TruHittaz DTG threatened and/or used force against other TruHittaz members and “taxed” other members (by requiring them to pay money to the bosses and upper management) to ensure the quality of the drugs sold on the block and/or that drug sales were conducted in accordance with their wishes.
Members of the TruHittaz DTG routinely warned each other of the presence of law enforcement in the area and used counter-surveillance tactics to prevent detection of their drug trafficking activities by law enforcement. Members of the TruHittaz DTG used cellular telephones (“main phones”), disposable telephones (“burners” or “burner phones”), and social media to arrange for and facilitate the distribution and purchase of phencyclidine, cocaine base, and other controlled substances, and discarded or otherwise changed their burner phones every fourteen-to-thirty days to avoid detection by law enforcement.
If convicted of all counts, each defendant faces lengthy prison terms (see chart).
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorneys MaryTeresa Soltis and Kelly A. Lewis Fallenstein.
Amtrak Employee Charged with Accepting BribesRead the Press Release
Timothy Miller, 36, of Philadelphia, Pennsylvania was charged today by Information with one count of federal program bribery, announced United States Attorney William M. McSwain.
According to the Information, Miller worked for the National Railroad Passenger Corporation (“Amtrak”) Procurement & Logistics Department as its Lead Contract Administrator responsible for procuring equipment and services and for managing the account for Amtrak diesel and locomotive seat cushion vendors. Amtrak is a recipient of federal grant funds from the United States Department of Transportation.
“The defendant in the case was responsible for millions of dollars in contracts in what was supposed to be a fair bidding process. As the filing alleges, he simply sold out his position,” U.S. Attorney McSwain said.
The Information charges that, from about August of 2015 through June of 2017, Miller awarded more than $7.6 million in contracts to a small manufacturing firm, in exchange for bribes of approximately $20,000 and other things of value, including trips to Rehoboth Beach arranged by two executives at the firm.
“We’re very proud of our joint efforts with the cross-agency team of investigators who helped bring this case to light,” said George Dorsett, assistant Inspector General for Investigations with Amtrak’s Office of Inspector General. “We commend their continued dedication, and we remain dedicated to supporting the U.S. Attorney’s Office as this case progresses.”
If convicted, the defendant faces a maximum possible sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years’ supervised release.
The case was investigated by the Amtrak Office of Inspector General, the Federal Bureau of Investigation, U. S. Department of Transportation Office of Inspector General, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Eric L. Gibson.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney McSwain Names New Leadership TeamRead the Press Release
PHILADELPHIA – William M. McSwain, U.S. Attorney for the Eastern District of Pennsylvania, has named the office’s new senior executive leadership team.
McSwain, who was sworn in last week, named Assistant U.S. Attorney Jennifer Arbittier Williams to be his First Assistant U.S. Attorney, effective immediately. Williams is currently the office’s Chief of National Security and Cybercrime. For her work as a prosecutor, she was given the Anti-Defamation League’s SHIELD award which recognizes law enforcement success in the fight against hate crime and extremism. She also successfully prosecuted the first case charging material support of terrorists in the history of the district – the so-called “Jihad Jane” case. “It will be an honor to serve as First Assistant,” said Williams. “After serving for 16 years as a prosecutor in this office, I look forward to bringing my experience in fighting terrorism and cybercrime to a new leadership role.”
McSwain named former U.S. Attorney Louis Lappen as Deputy U.S. Attorney. Lappen had served as the U.S. Attorney since November 2017 and as the Acting U.S. Attorney since 2016. As First Assistant U.S. Attorney from 2010 until 2016, he supervised the Criminal, Civil, and Administrative divisions of the office. He has served as an Assistant United States Attorney in the Eastern District since 1997, investigating and prosecuting a variety of cases, including white collar crime, corruption, child exploitation, violent crime, and narcotics distribution. Lappen successfully prosecuted a high-ranking police officer for corruption and securities fraud matters involving hundreds of millions of dollars in losses. He has received numerous awards and commendations including the American Bar Association’s Norm Maleng Minister of Justice Award. “This office has a history of success and stability,” said Lappen. “I’m looking forward to working closely with the U.S. Attorney in maintaining our culture of excellence.”
Denise Wolf, an Assistant U.S. Attorney in the Criminal Division since 2003, has been named Chief of the Criminal Division, effective April 24, 2018. Wolf has served in the white collar/economic crimes unit of the Criminal Division, along with the firearms and corruption units. She has handled a wide variety of cases, including the prosecution Philadelphia Traffic Court judges and court administrators for ticket-fixing, which led to the Pennsylvania legislature abolishing the Traffic Court. In addition, in 2006, Wolf received the Attorney General Award and other commendations for her role in the prosecution of Eli Lily pharmaceutical. “It’s very humbling to be named Chief of the Criminal Division, and I am looking forward to the challenge,” said Wolf. “I’ll be working with some of the most talented prosecutors in the country.”
McSwain has named Gregory David, an Assistant U.S. Attorney in the Civil Division since 2010, as Chief of the Civil Division, also effective April 24, 2018. David has played a key role in several significant civil cases, including a multi-district False Claims Act investigation that led to a $150 million settlement against the largest home health care company in the country. For his work, David received the Department of Justice Civil Division’s Special Commendation. He will supervise all civil matters including affirmative civil enforcement actions and defense of the federal government in civil litigation. “This is one of the most successful and trailblazing civil divisions in the country,” David said. “I look forward to working with and leading a deep bench of talented Assistant U.S. Attorneys.”
“We have an amazing group of talented and dedicated public servants in this office,” said McSwain. “I’m excited about our new leadership team. I look forward to working with them and supporting them in every way possible.”
Tartaglione Ordered to Forfeit More Than $2.4 Million from Fraud SchemeRead the Press Release
United States District Court Judge Joel H. Slomsky on Wednesday ordered Renee Tartaglione to forfeit $2.4 million in proceeds from her scheme to defraud the Juniata Community Mental Health Clinic. Tartaglione was convicted in June 2017, on all 53 counts of conspiracy, theft, fraud and tax evasion. Tartaglione siphoned some $2 million from the clinic of which she was president, and used some of that money to improve a building she owned that then appreciated in value.
“There’s a long list of victims in this case,” said U.S. Attorney William M. McSwain. “The economically disadvantaged served by the clinic deserved better. The guilty verdict, and now the Judge’s forfeiture order, bring a measure of justice for those victims.”
Judge Slomsky ordered the forfeiture to be paid from the proceeds from the sale of Tartaglione’s properties on 3rd Street and 5th Street in Philadelphia, as well as two homes at the New Jersey shore.
The case was prosecuted by Assistant U.S. Attorney Bea L. Witzleben and Department of Justice Trial Attorney Peter Halpern.
The 2016 indictment charged that Tartaglione purchased the building on 3rd Street in Philadelphia, which housed the clinic, and then raised the rent, repeatedly, causing the clinic’s rent for the building to increase from $4,500 per month to $25,000 per month.
Tartaglione’s company, Norris Hancock LLC, also purchased the building on 5th Street and, in December 2012, leased it to the clinic under a lease that called for rent of $35,000 per month for the first two years, and $75,000 per month for the next three years. The market rent for that building was $23,000 per month.
Philadelphia Woman Pleads Guilty to Defrauding Blind ManRead the Press Release
PHILADELPHIA – Tania Thompson-Rapley, 57, of Philadelphia, PA, pleaded guilty to stealing $50,000 from a legally blind Philadelphia homeowner. Thompson-Rapley falsely pretended to be a lawyer to help the victim pay the real estate taxes on his home. Thompson-Rapley then assisted the victim secure a bank loan for $50,000. However, rather than use that money to pay the victim’s real estate taxes, Thompson-Rapley used that money for her own personal expenses. Thompson-Rapley then sent forged documents to the victim and to the attorneys working for the City of Philadelphia which falsely reported that the taxes had been paid. Thompson-Rapley is scheduled to be sentenced on July 24, 2018 before the Honorable Mitchell S. Goldberg.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Robert Livermore.
Philadelphia Police Officer Sentenced for Drug DistributionRead the Press Release
PHILADELPHIA – Stanley Davis, 50, of Philadelphia was sentenced today to 18 months in prison by the Honorable R. Barclay Surrick for distribution of controlled substances.
Davis was a Philadelphia Police Officer assigned as a task force officer with the Federal Bureau of Investigation, working on narcotics investigations. In September or October of 2016, Davis was working in the Kensington section of Philadelphia, an area where illegal drugs were frequently bought and sold. Davis spotted two young woman who were in Kensington attempting to buy drugs. He approached the women, ostensibly to gain information on drug trafficking activity in the area. He exchanged phone numbers with the women and began sending them text messages, which soon turned sexual in nature. Davis entered into a sexual relationship with the first woman and later entered into a sexual relationship with the second woman. During the course of these relationships, Davis provided each woman with controlled substances, including heroin and crack.
“The conduct of former Philadelphia Police Officer Stan Davis is reprehensible” said United States Attorney William M. McSwain. “The Kensington area of Philadelphia has long been ravaged by the impact of the drug trade, and Davis served his own agenda by preying on the vulnerability of women struggling with drug use. Unlike Davis, the overwhelming majority of the men and women of the Philadelphia Police Department are dedicated servants to the community whose fine reputations should not be tarnished by the outrageous conduct of this one police officer.”
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Justice, Office of the Inspector General with assistance from the Pennsylvania State Police and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Robert J. Livermore
Philadelphia Man Charged with Passing Counterfeit CurrencyRead the Press Release
Abel Helb, 28, of Philadelphia, Pennsylvania was charged today by Information with one count of conspiring to possess and pass counterfeit currency and three counts of passing counterfeit currency announced United States Attorney William M. McSwain. According to the Information, Helb conspired with others to pass counterfeit one hundred dollar bills to purchase prepaid debit cards and other merchandise from pharmacy drug stores and dollar stores. Helb and his co-conspirators used counterfeit currency at stores in Pennsylvania, New Jersey, and Tennessee to commit the fraud.
The defendant faces a maximum possible sentence of five years’ imprisonment if convicted of conspiracy and 20 years’ imprisonment for each count charging him with passing counterfeit currency. He also faces a maximum fine of $1,000,000, a $400 assessment, and three years of supervised release.
The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attorney Tiwana Wright.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Doctor Sentenced to 24 Months in Prison for Selling Prescriptions of Suboxone and KlonopinRead the Press Release
PHILADELPHIA – Dr. Azad Khan, 64, of Villanova, PA, was sentenced to 24 months in prison by the Honorable Lawrence F. Stengel in the United States District Court for the Eastern District of Pennsylvania. A federal jury found Khan guilty on July 25, 2017 of conspiracy to distribute controlled substances and two counts of distribution of controlled substances, all arising from Khan’s employment at a clinic run by co-defendant Dr. Alan Summers.
Dr. Khan worked at a medical clinic operated by Dr. Summers on South Broad Street in Philadelphia that sometimes operated under the business name “NASAPT” (National Association for Substance Abuse-Prevention & Treatment). As proven at trial, Summers, Khan, and the other doctors employed at the clinic prescribed large doses of Suboxone and Klonopin in exchange for large cash payments. Suboxone is a brand name for a drug used to treat opiate addiction. The government’s experts and the defendant’s own expert testified at trial that Suboxone and Klonopin should never be prescribed together, except in rare cases when absolutely necessary. At Dr. Summers’s clinic, virtually all customers received prescriptions for both Suboxone and Klonopin, regardless of their medical need. During the duration of the conspiracy, Dr. Summers, Dr. Khan, and other doctors at the clinic illegally sold over $5 million worth of these controlled substances.
Almost all of the prescriptions for Suboxone and Klonopin were pre-printed before the customer met with a doctor. Summers, Khan and the other doctors working at the clinic failed to conduct medical examinations or mental health examinations as required by law in order to legally prescribe these controlled substances. The amount of Suboxone and Klonopin which Khan and the other doctors prescribed depended on the amount of cash the customer paid rather than any medical reason. For $200, the customers received a month’s supply of Suboxone and Klonopin. For $50, the customers received a week’s supply. Evidence at trial demonstrated a stunning lack of medicine being performed at Summers’s clinic by Khan and many of the other doctors at the clinic.
Several customers who frequented this clinic testified that they were, in fact, drug dealers or drug addicts who sold the prescribed medications. Khan’s own records showed that his customers tested positive for illicit drugs and negative for Suboxone and Klonopin. Khan ignored the drug tests which showed that some of his customers were not taking the prescribed medications and he continued to prescribe them large doses of Suboxone and Klonopin.
Dr. Summers, as well as two other doctors involved in this scheme, Dr. Keyhosrow Parsia and Dr. Clarence Verdell, have pleaded guilty and have either already been sentenced or await sentencing.
“Every doctor who abandons his or her ethics to engage in the prescription-for-pay culture is breaking the law,” said United States Attorney William M. McSwain. “It is ironic that these defendants, while holding themselves out as professional addiction treatment specialists, preyed on the very people they should have been helping. By recklessly selling preprinted prescriptions for cash, they chose greed over their duty to heal. Our office will continue to investigate and prosecute drug organizations on the street and in doctors’ offices when their unscrupulous and illegal conduct contributes to this deadly opioid epidemic.”
“Dr. Khan’s flagrant disregard for his oath as a doctor and total lack of concern for the well-being of his customers led to the illegal distribution of $5 million worth of controlled substances,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA is responsible for the prevention, detection, and investigation of the diversion of controlled pharmaceuticals; we will continue to aggressively pursue the rogue doctors that choose to engage in this criminal activity.”
“Today’s sentencing sends a clear message that health care fraud and drug diversion will not be tolerated,” said Special Agent in Charge Maureen R. Dixon, of the Office of Inspector General for the Department of Health and Human Services. “We will continue to work with our law enforcement partners to protect government funds and keep the public safe from dangerous drugs.”
The case was investigated by the Drug Enforcement Administration, the Department of Health and Human Services Office of the Inspector General, and the Internal Revenue Service Criminal Investigations, with assistance from the Philadelphia Police Department and the Pennsylvania Bureau of Narcotics Investigations. It was prosecuted by Assistant United States Attorneys Robert Livermore and Katherine Driscoll.
William M. McSwain Sworn in as United States AttorneyRead the Press Release
William M. McSwain, who served as a federal prosecutor in Philadelphia before entering private law practice, returned to government service today as the United States Attorney for the Eastern District of Pennsylvania.
The Chief Judge of the United States District Court for the Eastern District of Pennsylvania, Lawrence F. Stengel, administered the oath of office to Mr. McSwain, who was nominated by President Trump to serve as U.S. Attorney on December 20, 2017 and unanimously confirmed by the U.S. Senate on March 20, 2018. A public investiture ceremony will be held at a later date.
“It is a privilege to serve as the Eastern District of Pennsylvania’s U.S. Attorney, and I am deeply grateful to all who have supported my nomination,” said U.S. Attorney McSwain. “I look forward to working with the dedicated public servants in the U.S. Attorney’s Office and the brave men and women of our law enforcement partners in the pursuit of justice for the people of our District and nation.”
Louis D. Lappen, who for the past 15 months served as Acting U.S. Attorney, will remain with the Office as the Deputy United States Attorney, a senior advisor to U.S. Attorney McSwain.
Prior to his appointment as U.S. Attorney, Mr. McSwain was a partner at the law firm of Drinker Biddle & Reath in the firm’s Philadelphia office. He served as an Assistant U.S. Attorney in the Criminal Division of the U.S. Attorney’s Office for the Eastern District of Pennsylvania from 2003 to 2006. Mr. McSwain graduated with honors from Yale University in 1991 and from the Harvard Law School in 2000, where he served as an editor of the Harvard Law Review. He clerked for the Honorable Marjorie O. Rendell, United States Circuit Judge of the United States Court of Appeals for the Third Circuit. Prior to law school, Mr. McSwain served as a U.S. Marine Corps infantry officer and scout/sniper platoon commander.
As U.S. Attorney, Mr. McSwain is the chief federal law enforcement officer responsible for all federal criminal prosecutions and civil litigation involving the United States in the Eastern District of Pennsylvania, which is one of the nation’s most populous districts with over 5 million people residing within its nine counties (Berks, Bucks, Chester, Delaware, Lancaster, Lehigh, Montgomery, Northampton, and Philadelphia counties), covering about 4,700 square miles. Mr. McSwain supervises a staff of approximately 130 Assistant U.S. Attorneys and a similar number of non-attorney support personnel at offices in Philadelphia and Allentown.
Mr. McSwain is the 39th U.S. Attorney for the Eastern District of Pennsylvania, an office that was established in 1789. He resides in Chester County, PA and is the first Chester County native to hold the position.
United States Attorneys Offices and PATCO Resolve ADA ConcernsRead the Press Release
United States Attorneys Louis D. Lappen of the Eastern District of Pennsylvania announced that the Delaware River Port Authority (DRPA) has agreed with the Department of Justice to take action relating to the accessibility of DRPA’s PATCO train line for individuals with mobility assistance issues.
Following a government investigation, DRPA has agreed to post signs advising individuals with mobility assistance issues how to request alternate transportation in the event of an elevator outage at one of PATCO’s elevator-equipped stations. DRPA has for several years provided alternate transportation for such individuals in the event of an elevator outage. The additional signs will inform mobility-impaired patrons at the elevators of how to utilize this alternate transportation.
“It is in everyone’s interest that individuals with mobility impairments have full access to public transportation,” said U.S. Attorney Lappen of the Eastern District of Pennsylvania, “and it is critical that those individuals know how to access the programs in place for them. We commend DRPA for its cooperation in the investigation and for agreeing to a common sense approach to this situation.”
The case was handled by Assistant United States Attorneys Paul W. Kaufman and Anthony Scicchitano of the United States Attorney’s Office for the Eastern District of Pennsylvania and Assistant United States Attorney Jessica O’Neill of the United States Attorney’s Office for the District of New Jersey, in conjunction with David Knight of the Civil Rights Division of the United States Department of Justice.
Trenton Man Charged with Illegally Transporting FirearmsRead the Press Release
Clifford Riheem Elisah Bright, 29, of Trenton, New Jersey, was charged yesterday by indictment with transporting firearms from the Eastern District of Pennsylvania to New Jersey while engaged in the business of dealing in firearms without a license announced United States Attorney Louis D. Lappen. Bright was also charged with 11 counts of interstate travel to acquire firearms for the purposes of unlicensed dealing in firearms and 15 counts of making false statements to a federal firearms licensee. The indictment alleges that from December 30, 2017 through February 24, 2018, while engaged in the business of dealing firearms without a license, Bright traveled from the State of New Jersey to the Eastern District of Pennsylvania to acquire the firearms and then transported them back to the State of New Jersey. The indictment also alleges that on or about November 18, 2017 through March 1, 2018, Bright purchased 24 firearms from three different federal firearms licensees, and in doing so, knowingly made false statements pertaining to information that the law requires the licensees keep.
If convicted of the charges, defendant faces a maximum sentence of 190 years’ imprisonment, 3 years’ supervised release, a $6,750,000 fine, and a $2,700 special assessment, restitution, and forfeiture of the firearms involved.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Chester Man Charged in Overdose DeathRead the Press Release
PHILADELPHIA – Robert Atkins, 28, of Chester, PA, has been charged by indictment with distribution of fentanyl resulting in death, announced United States Attorney Louis D. Lappen and Delaware County District Attorney Katayoun Copeland. Atkins has also been charged with five counts of distributing fentanyl and one count of distributing fentanyl within 1,000 feet of a school. The death charge results from the September 9, 2017 fatal overdose of an Upper Darby Township resident from fentanyl that was allegedly sold to him by Atkins.
“We have a public health crisis in this country involving opioid abuse that is exacerbated by individuals who continue to distribute these deadly substances,” said Lappen. “The impact on our community is immeasurable and tragic. Our office will continue to work with our federal and local partners through the Eastern District of Pennsylvania’s Opioid Law Enforcement Task Force to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.”
“The defendant had no regard for the people to whom he peddled his poison, and continued to distribute this deadly venom on our streets even after causing the death of one of our Delaware County residents,” said Copeland. “Any drug trafficker who distributes these lethal drugs on our streets shall be on notice that we will hold you accountable for the devastation of our communities.”
The case was investigated by the Drug Enforcement Administration, the Delaware County Drug Task Force, and the Folcroft Borough and Upper Darby Police Departments. It is being prosecuted by Assistant United States Attorney Faithe Moore Taylor and, from the Delaware County District Attorney’s Office, Special Assistant United States Attorney Sharon H. McKenna.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Charges Allege Two Individuals and Their Companies Exploited the USDOT Disadvantaged Business ProgramRead the Press Release
PHILADELPHIA - Stamatios “Tom” Kousisis, 60 of Downingtown, PA and Emanouel “Manny” Frangos, 41, of Campbell, OH, along with Alpha Painting & Construction Co., Inc., of Baltimore MD, and Liberty Maintenance, Inc., of Youngstown, OH were charged today by Indictment with conspiracy to commit wire fraud, wire fraud, and making false statements in a scheme involving the USDOT Disadvantaged Business Program and work performed on the federally funded Girard Point Bridge project and the federally funded 30th Street Station, announced United States Attorney Louis D. Lappen.
Kousisis is the Project Manager of Alpha and Frangos is an owner of Liberty Maintenance, which are both bridge painting contractors, although neither is a certified Disadvantaged Business in Pennsylvania. The alleged scheme involved Alpha-Liberty JV, a joint venture between defendants Liberty Maintenance and Alpha Painting, and Markias, Inc., a now-defunct certified Disadvantaged Business.
In September 2009, PENNDOT awarded a contract for approximately $70.3M to a triventure that included the Alpha-Liberty JV to perform structural steel painting and repairs, and concrete repairs, on the Girard Point Bridge in Philadelphia. As part of that award, the triventure made a commitment to PENNDOT to subcontract approximately $4.7M in Disadvantaged Business work to Markias to supply materials to be used in performing the contract. Under governing law, the Alpha-Liberty JV was only entitled to Disadvantaged Business credit for worked performed by a Disadvantaged Business that was performing a commercially useful function. Instead, according to the indictment, the Alpha-Liberty JV and Kousisis ordered materials needed for their work on the Girard Point Project directly from suppliers that were not Disadvantaged Businesses, and used Markias as a mere pass-through or front, to make it falsely appear that disadvantaged business enterprise requirements had been met on the Girard Point Project when those requirements had in fact not been met. Markias did not perform a commercially useful function.
In December 2010, PENNDOT awarded a contract for approximately $50.8 million to a joint venture of two companies referred to in the indictment as Company C and Company F, to perform structural steel painting and repairs and roadway reconstruction beneath and around AMTRAK’s 30th Street Train Station in Philadelphia. Company C and Company F entered into a subcontract, for approximately $15 million, for the Alpha-Liberty JV to perform the structural steel painting beneath 30th Street Station. As part of the bid process, Company C and Company F committed to subcontract approximately $1.7M in Disadvantaged Business work to Markias to supply paint materials for the 30th Street Project. Instead, according to the indictment, the Alpha-Liberty JV and Kousisis ordered materials needed for their work on the 30th Station Project directly from suppliers that were not Disadvantaged Businesses, and used Markias as a mere pass-through or front, to make it falsely appear that disadvantaged business enterprise requirements had been met on the 30th Station Project when those requirements had in fact not been met. Markias did not perform a commercially useful function.
In addition, the indictment alleges that the Alpha-Liberty JV and Kousisis, and Frangos ordered materials to be delivered to and used on out-of-state projects while directing that the purchase invoices be sent to Markias in New Jersey. Then, allegedly at the direction of Alpha-Liberty JV and Kousisis, and Frangos, Markias issued invoices that made it falsely appear that those supplies had been used on the Girard Point and 30th Street Projects in Pennsylvania. Alpha-Liberty JV and Kousisis, and Frangos allegedly caused Company C to falsely report to PENNDOT that the supplies delivered to and used on the out-of-state projects qualified for Disadvantaged Business credit in Pennsylvania when those purchases did not so qualify. PENNDOT awarded approximately $3.26 million in DBE credit to for the Girard Point Project and approximately $1.275 million in Disadvantaged Business credit for the 30th Street Station Project based on Disadvantaged Business work supposedly performed by a disadvantaged business (Markias). Alpha-Liberty JV paid Markias 2.25% of the face value of the invoices processed by Markias allegedly to act as a pass-through.
If convicted the defendants face a statutory maximum sentence of 170 years in prison, a possible fine, supervised release, and a $1600 special assessment.
The case was investigated by the U.S. Department of Transportation Office of Inspector General, the FBI, the Department of Labor Office of Inspector General, and Amtrak Office of Inspector General. It is being prosecuted by Assistant United States Attorney Paul Shapiro.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Duo Charged with Sex Trafficking of a MinorRead the Press Release
Shyniquah Lightner, 26, and Malik Hudson, 21, both of Philadelphia, were charged today by Indictment[1] with sex trafficking of a minor, announced United States Attorney Louis D. Lappen.
The indictment alleges that between July 2017 and September 2017, defendant Shyniquah Lightner was the operator of a prostitution venture in Philadelphia, Pennsylvania, and defendant Malik Hudson assisted Lightner in the operation. As part of the venture, Lightner recruited young females to work as prostitutes in her business, and she created Internet advertisements in which she marketed various females as available for purchase for purposes of prostitution. These advertisements featured pictures of the females, either scantily clad or partially nude, a description of each female, and a phone number to call to arrange a meeting. Defendants Lightner and Hudson used force, threats of force, fraud, and coercion to cause the females who worked for them to engage in commercial sex acts. Two of the females Lightner recruited and advertised were under 18 years of age. Lightner and Hudson are charged with sex trafficking of Minor 1. Additionally, Lightner is charged in a second count with sex trafficking of Minor 2.
If convicted, Lightner faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison, a minimum of 5 years up to lifetime-supervised release, a $500,000 fine, and a $200 special assessment.
If convicted, Hudson faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison, a minimum of 5 years up to lifetime-supervised release, a $250,000 fine, and a $100 special assessment.
"We are privileged to have collaborated with our Human Trafficking Task Force partners in the investigation and attendant arrests," said Philadelphia Police Comissioner Ricard Ross. "Our collective efforts resulted in the arrests of two dangerous predators, and furthered our overarching mission to keep our children safe from exploitation."
"The task force brings together the expertise, training, experience, and law enforcement authorities of the partnered agencies to help identify human traffickers, and prosecute them while also protecting and aiding survivors. “HSI Philadelphia is pleased that the newly formed multiagency Anti-Trafficking Coalition worked jointly on this investigation, and we look forward to expanding our partnerships with private and public entities to combat human trafficking,” said Marlon V. Miller, special agent in charge of HSI Philadelphia.
The case was investigated by the Homeland Security Investigations (HSI), the Philadelphia Police Department Special Victim’s Unit (SVU) and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Jessica Natali. This case is part of the Philadelphia Anti-Human Trafficking Task Force. Members of the joint task force include the HSI Philadelphia, the Philadelphia Police Department’s SVU, the Philadelphia District Attorney’s Office Family Violence & Sexual Assault Unit, the Federal Bureau of Investigation, the Salvation Army and the United States Attorney’s Office for the Eastern District of Pennsylvania.
[1] An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Trio Charged with Intent to Distribute HeroinRead the Press Release
Edward Torres, 30, of Philadelphia, Pennsylvania and Alejantro Levya-Granados, 47 and Sergio Arturo Maciel-Landeros, 28, both of Mexico, were charged today by Indictment[1] with conspiracy to possess with intent to distribute six kilograms of heroin and possession with intent to distribute six kilograms of heroin, and aiding and abetting the same; announced United States Attorney Louis D. Lappen. The charges arise from the defendants’ possession of approximately six kilograms of heroin inside of a hidden compartment in the car in which they were travelling in order to facilitate the sale of those drugs for $52,000 per kilogram.
If convicted the defendants face maximum possible sentences of life imprisonment.
The case was investigated by the Drug Enforcement Administration and the Bensalem Township Police Department and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Possession of an Illegal FirearmRead the Press Release
Andre Pereira-Lopes, a/k/a “Davi Da Silva,” of Philadelphia, Pennsylvania, was charged today by Indictment with possession of a firearm by an illegal alien, announced United States Attorney Louis D. Lappen. The indictment alleges that on or about February 24, 2018, Pereira-Lopes, an illegal alien, knowingly possessed a .38 caliber Colt Detective Special revolver, which was loaded with six rounds of ammunition.
If convicted the defendant faces a maximum possible sentence of ten years and other penalties.
The case was investigated by Immigration and Customs Enforcement and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Kevin Jayne.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Brooklyn Man Sentenced to 80 Months’ Incareration for Bank Fraud and Aggravated Identity TheftRead the Press Release
Bright Ogodo, 43, of Brooklyn, New York, was sentenced today to 80 months in prison following his conviction of bank fraud and aggravated identity theft, announced United States Attorney Louis D. Lappen.
In sentencing Ogodo, the court found that Ogodo was a leader of a bank fraud and aggravated identity theft ring that used “runners,” to pose as TD Bank customers by using false drivers’ licenses and other means of identification of the TD Bank customers, including their names, social security numbers, and dates of birth. As part of his guilty plea, Ogodo had admitted that he recruited the runners, drove the runners to TD Bank branches in the Philadelphia area, as well as in New York, New Jersey, Connecticut, and Delaware, gave the runners the false drivers’ licenses and other means of identification, and instructed them how to access the TD Bank customers’ accounts. Ogodo had also admitted that he and the runners deposited large-dollar counterfeit checks and small amounts of cash and money orders into the bank accounts, thereby learning the account numbers (if they were not already known) and also as a way of being able to know the exact date, location, and amount of the last deposit into the account, which co-schemers then used to set up on-line access to the accounts. Ogodo admitted that the runners, posing as the true account holders, obtained new ATM cards tied to the TD Bank customers’ checking accounts, and then one or more co-schemers, including defendant Ogodo himself, began to deplete the funds in that checking account by using the newly-obtained ATM cards to withdraw cash and purchase merchandise and money orders. Ogodo also admitted that he transferred funds from the TD Bank customers’ existing home equity lines of credit (HELOC) into the checking accounts that were tied to the ATM cards in the possession of defendant Ogodo and other co-schemers, which allowed defendant Ogodo and other co-schemers to obtain over $523,000 from the TD Bank accounts. Ogodo admitted that he intended to cause TD Bank to sustain more than $785,000 in losses, as that is the amount of counterfeit checks and HELOC and other transfers made into the checking accounts tied to the ATM cards in the co-schemers’ possession.
The case was investigated by the Bureau of Immigration and Customs Enforcement, Homeland Security Investigations, and was prosecuted by Assistant United States Attorney Michael S. Lowe.
Mexican National Charged with Illegal Re-entry After DeportationRead the Press Release
Fernando Salinas-Palma, a/k/a “Fernando Gutierrez-Palma,” of Norristown, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Louis D. Lappen. The indictment alleges that on or about February 21, 2018, Salinas-Palma, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about April 6, 2012, April 24, 2012, and June 30, 2012. If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”), and is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Files Suit Against Reading-Area Physician for Opioid PrescribingRead the Press Release
The United States filed a civil lawsuit today against Stephen Latman, a physician in the Reading, Pennsylvania area, alleging that he wrote improper opioid prescriptions for several of his patients, announced United States Attorney Louis D. Lappen. According to the complaint, Latman issued 343 opioid prescriptions to three of his patients that lacked a legitimate medical purpose and were issued outside of the usual course of his professional practice.
The United States and Dr. Latman have also entered into a Stipulated Order and Consent Judgment, subject to the Court’s approval that would resolve the matter without litigation. If approved by the Court, the Judgment would require Latman to pay $400,000 to the United States, prohibit Latman from ever seeking a future DEA controlled substance license, require Latman to voluntarily relinquish his license to practice medicine, and require Latman to execute an agreement with the U.S. Department of Health and Human Services to be excluded from Medicare, Medicaid, and all other Federal health care programs.
The complaint filed by the United States alleges that Latman, for these three patients, prescribed approximately 123,660 opioid pills from 2014 through 2016. Those prescriptions were often written for oxycodone 30mg, one of the most heavily abused and most lucrative oxycodone prescriptions on the black market. An expert review of these prescriptions indicated that the prescriptions were dangerous, inappropriate, and susceptible to illicit use.
“The opioid crisis in our communities has had a devastating impact,” said United States Attorney Louis D. Lappen. “Physicians have the vital responsibility to write prescriptions that are in the best interest of the patient, particularly for opioids. Our office will continue to hold physicians accountable when they violate that responsibility.”
The United States filed this lawsuit under the Controlled Substances Act. The complaint contains allegations only, and not findings of liability.
The investigation was conducted by the Drug Enforcement Administration and assisted by the Department of Health and Human Services Office of Inspector General. Assistant United States Attorney Anthony D. Scicchitano handled the matter.
U.S. Reaches Agreement with Healthcare Provider on Communication with Deaf IndividualsRead the Press Release
United States Attorney Louis D. Lappen today announced that the Government has reached a settlement with Allergy & Asthma Specialists, P.C. (“A&A”) to resolve alleged violations of title III of the Americans with Disabilities Act (“ADA”) for failure to provide a deaf patient with effective communication.
Under title III of the ADA, no person who owns, leases (or leases to), or operates a place of public accommodation may discriminate against an individual on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of a place of public accommodation. Discrimination includes failing to take such steps as necessary to ensure that no individual with a disability is excluded, denied services, segregated, or otherwise treated differently than any other individual because of the absence of auxiliary aids and services.
According to the United States= allegations, in 2017, a deaf patient had difficulty effectively communicating with A&A staff during a visit to an A&A facility in Jenkintown, Pennsylvania. Although A&A provided an interpreter who could speak some sign language, the interpreter was not a certified sign language interpreter, and the patient had difficulty understanding the interpreter.
As a result of the United States’ investigation and the full cooperation of A&A, A&A has agreed to implement an effective communication policy and to annually train its staff regarding that policy.
This case was investigated by Assistant United States Attorney Jacqueline C. Romero.
Sinking Spring, PA Man Sentenced 5 Years for Fraudulent ClaimsRead the Press Release
Rafael Christopher Cirino, 36, of Sinking Spring, Pennsylvania, was sentenced on Friday by the Hon. Edward G. Smith, United States District Judge, to a term of 60 months’ imprisonment, to be followed by supervised release for a period of 5 years, as well as a $1,700 special assessment, announced United States Attorney Louis D. Lappen. This conviction was the result of a collaboration of federal, state and local law enforcement agencies in order to halt fraudulent claims for state benefits, mortgage fraud, and insurance fraud.
According to the indictment and guilty plea, between October 2016 and March 2017, Cirino submitted fraudulent claims for unemployment compensation benefits with the State of Pennsylvania using fictitious identities. Cirino also submitted multiple fraudulent claims under insurance policies regarding business property that had allegedly been stolen. Cirino further used the fictitious identity of one phantom employee of the business to submit multiple residential mortgage loan applications containing materially false information. Last, Cirino possessed numerous hologram images depicting the seals of various States, in conjunction with blank plastic cards containing magnetic stripes and clear laminating film, suitable for fabricating false identification documents.
The sentence follows Cirino’s plea of guilty on October 18, 2017 to each of the counts contained in a pending Indictment charging him with four counts of mail fraud, two counts of fraudulent misrepresentation of a Social Security number, four counts of wire fraud, two counts of making false statements in a mortgage loan application, and a single count possession of an authentication feature, intending that the authentication feature be used in a false identification document.
“Rafael Cirino misused the identities of others to fraudulently obtain unemployment compensation benefits by engaging in a scheme to defraud the Pennsylvania Department of Labor and Industry,” said Richard Deer, Special Agent-in-Charge, Philadelphia Region, and U.S. Department of Labor Office of Inspector General. “We will continue to work with our federal, state, and local law enforcement partners to safeguard unemployment compensation benefits programs.”
The case was investigated by the Department of Labor’s Office of Inspector General, the United States Postal Inspection Service, the Pennsylvania State Police, the Spring Township Police Department, and the Pennsylvania Department of Labor and Industry, Internal Audits Division. The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.
Philadelphia-Area Political Consultant Charged in Superseding Indictment with Obstructing Investigation of Federal Election CommissionRead the Press Release
WASHINGTON – A federal grand jury sitting in the Eastern District of Pennsylvania returned a superseding indictment today adding charges in a pending criminal case against a Philadelphia-area political consultant, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
The original indictmenz, returned on Oct. 24, 2017, charged Kenneth Smukler, 57, of Villanova, Pennsylvania, with causing unlawful campaign contributions, causing the filing of false reports to the Federal Election Commission (FEC), and causing false statements to the Federal Election Commission in connection with a 2012 congressional campaign. The superseding indictment charges Smukler with these same offenses, as well as making conduit contributions to a federal campaign committee and obstructing an FEC investigation in connection with the 2014 congressional campaign of a different candidate.
According to the indictment, Smukler made and caused to be made excess and conduit contributions and engaged in a falsification and obstruction scheme involving a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives in 2014. According to the indictment, the excess contributions came from associates of Smukler and were funneled through two of Smukler’s consulting companies. The conduit contributions were routed through another political consultant and the candidate.
As alleged in the indictment, in or about April 2014, Smukler became aware that the campaign was running out of funds that it could spend on primary election expenses. According to the indictment, Smukler nevertheless directed the campaign to continue paying for goods and services associated with the primary election. According to the indictment, in or about May 2014, one of Smukler’s companies made a $78,750 payment to the campaign that was used to pay for primary election expenses. Smukler falsely told the campaign that this money came from a segregated media account, when in fact the payment was funded by an associate of Smukler’s and therefore constituted an illegal campaign contribution.
As alleged in the indictment, after the campaign lost the primary election, the campaign did not have sufficient funds to repay the contributions that the campaign had received for the general election. As alleged in the indictment, in order to conceal this shortfall, Smukler funneled illegal contributions totaling $150,000 from an associate to the campaign through two of Smukler’s consulting companies. As alleged in the indictment, Smukler falsely told the campaign that these payments were refunds of money that had been escrowed in Smukler’s companies for general election expenses, when, in fact, the money had come not from escrow accounts but from Smukler’s associate, and the money could not have been escrowed campaign funds because Smukler’s companies had already spent a significant portion of the funds they had received from the campaign.
According to the indictment, Smukler caused the campaign to falsely characterize the payments from his companies as refunds in FEC reports and in a letter to the FEC, which led the FEC to dismiss a pending complaint against the campaign.
In addition, the indictment alleges that Smukler made an unlawful conduit contribution to the campaign in excess of $2,000 through another political consultant. And, according to the indictment, in or about June 2015, Smukler made another unlawful conduit contribution to the campaign, this time in excess of $10,000, through the candidate.
An indictment is not a finding of guilt. An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Eric Gibson of the Eastern District of Pennsylvania are prosecuting the case.
Philadelphia-Area Political Consultant Charged in Superseding Indictment with Obstructing Investigating of Federal Election CommissionRead the Press Release
PHILADELPHIA – A federal grand jury sitting in the Eastern District of Pennsylvania returned a superseding indictment today adding charges in a pending criminal case against a Philadelphia-area political consultant announced U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
The original indictment, returned on Oct. 24, 2017, charged Kenneth Smukler, 57, with causing unlawful campaign contributions, causing the filing of false reports to the Federal Election Commission (FEC), and causing false statements to the Federal Election Commission in connection with a 2012 congressional campaign. The superseding indictment charges Smukler with these same offenses, as well as making conduit contributions to a federal campaign committee and obstructing an FEC investigation in connection with the 2014 congressional campaign of a different candidate.
According to the indictment, Smukler made and caused to be made excess and conduit contributions and engaged in a falsification and obstruction scheme involving a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives in 2014. According to the indictment, the excess contributions came from associates of Smukler and were funneled through two of Smukler’s consulting companies. The conduit contributions were routed through another political consultant and the candidate.
As alleged in the indictment, in or about April 2014, Smukler became aware that the campaign was running out of funds that it could spend on primary election expenses. According to the indictment, Smukler nevertheless directed the campaign to continue paying for goods and services associated with the primary election. According to the indictment, in or about May 2014, one of Smukler’s companies made a $78,750 payment to the campaign that was used to pay for primary election expenses. Smukler falsely told the campaign that this money came from a segregated media account, when in fact the payment was funded by an associate of Smukler’s and therefore constituted an illegal campaign contribution.
As alleged in the indictment, after the campaign lost the primary election, the campaign did not have sufficient funds to repay the contributions that the campaign had received for the general election. As alleged in the indictment, in order to conceal this shortfall, Smukler funneled illegal contributions totaling $150,000 from an associate to the campaign through two of Smukler’s consulting companies. As alleged in the indictment, Smukler falsely told the campaign that these payments were refunds of money that had been escrowed in Smukler’s companies for general election expenses, when, in fact, the money had come not from escrow accounts but from Smukler’s associate, and the money could not have been escrowed campaign funds because Smukler’s companies had already spent a significant portion of the funds they had received from the campaign.
According to the indictment, Smukler caused the campaign to falsely characterize the payments from his companies as refunds in FEC reports and in a letter to the FEC, which led the FEC to dismiss a pending complaint against the campaign.
In addition, the indictment alleges that Smukler made an unlawful conduit contribution to the campaign in excess of $2,000 through another political consultant. And, according to the indictment, in or about June 2015, Smukler made another unlawful conduit contribution to the campaign, this time in excess of $10,000, through the candidate.
An indictment is not a finding of guilt. An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Eric Gibson of the Eastern District of Pennsylvania are prosecuting the case.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former QVC Director Pleads Guilty to Million-Dollar Fraud Scheme Involving Hollywood PR Agency and NYC Production CompanyRead the Press Release
PHILADELPHIA – James D. Falkowski, a/k/a “Jamie Falkowski,” 42, of Buffalo, New York, pleaded guilty on March 20, 2018 in federal court to criminal charges for which he was indicted including eleven counts of wire fraud, and one count of conspiracy, announced United States Attorney Louis D. Lappen.
Falkowski pleaded guilty to operating a multi-faceted fraud scheme while working as a director at QVC, Inc., an American cable, satellite and broadcast television network and multinational corporation specializing in televised and internet home shopping based in West Chester, Pennsylvania. Falkowski – a QVC Director from 2008 until his termination in 2013 – was responsible for enhancing QVC’s brand and reputation in the entertainment and fashion industries. Falkowski used his position at QVC to embezzle and fraudulently obtain from QVC over $1,000,000 worth of money, goods and services, all without QVC’s knowledge or approval, including hundreds of thousands of dollars of first-class travel, luxury hotel and resort stays, spa treatments, upscale restaurants, luxury clothing, luxury accessories, and personal medical treatments such as botox treatment. To hide his actions from QVC, Falkowski created fake invoices purporting to be from The Four Seasons Hotels, luxury car service companies, and other vendors in order to deceive QVC into paying for Falkowski’s fraud. Falkowski also enlisted the assistance of two QVC vendors to help him defraud QVC: those two vendors – including Los Angeles-based public relations agency “The Steinberg Group,” doing business as “dOMAIN,” and a New York City-based production management company – agreed to submit to QVC fraudulently altered invoices and bills to hide Falkowski’s embezzlement.
Falkowski also pleaded guilty to crimes involving fraudulently causing QVC to pay over $200,000 in private luxury chauffeur rides for himself and his associates, approximately $70,000 in payments to his personal creditors – including by causing QVC to pay more than $28,000 for a coffee table and credenza table for Falkowski’s Philadelphia apartment – as well as $59,500 in gift cards from American Express, Tom Ford, and Barney’s New York that Falkowski claimed were for distribution to talent, but which he used for himself.
Falkowski also pleaded guilty to participating in illegal kickback deals with two separate QVC vendors – both of whom Falkowksi had caused QVC to hire, and both of whose relationships with QVC Falkowski controlled. First, Falkowski caused QVC to hire The Steinberg Group, doing business as dOMAIN; Falkowski thereafter instructed The Steinberg Group’s leadership to become a QVC “vendor representative” and earn royalties from QVC. Falkowski then covertly assisted The Steinberg Group’s leadership in negotiating against QVC by providing The Steinberg Group with QVC’s confidential, proprietary contractual information, which enabled The Steinberg Group to illicitly negotiate for – and fraudulently obtain – a larger royalty percentage over a longer period of time from QVC. In return for his fraudulent assistance, The Steinberg Group secretly cut Falkowski into their deal, agreeing to pay Falkowski a kickback of fifty percent (50%) on all royalty payments received from QVC. Falkowski and The Steinberg Group’s leadership also secretly entered into a separate kickback deal relating to products sold by a QVC competitor – all while Falkowski was an executive at QVC. Ultimately, The Steinberg Group/dOMAIN and Falkowski brought in $312,488.32 pursuant to their fraudulent kickback deal. After Falkowski was terminated by QVC in December 2013, Falkowski sent an email to The Steinberg Group’s leadership, stating: “Let’s be clear . . . You have a better deal than any other rep because of me solely. [W]e do not have any contract between us of our deal JUST [The Steinberg Group’s/dOMAIN’s President’s] word that we split things 50/50 always. This was because of the complications while I was at QVC.” Separately, also entered into a fraudulent kickback arrangement with the New York City-based production management company, pursuant to which he instructed the company’s leadership to become a QVC vendor representative, and in turn was secretly cut into that deal as a one-third (33%) partner. Falkowski and the New York City-based production management company brought in $314,768.92 pursuant to their fraudulent kickback arrangement.
The case was investigated by the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney James Petkun.
Sentencing was set for July 10, 2018, before U.S. District Judge Michael M. Baylson.
Delaware Woman Charged with Wire Fraud and Aggravated Identity TheftRead the Press Release
Rasheeda Overton, 38, of Dover, DE was charged in an indictment unsealed today with 23 counts of wire fraud and 4 counts of aggravated identity theft, announced United States Attorney Louis D. Lappen.
According to the indictment, Overton was a payroll manager of a Philadelphia-based non-profit entity that translates, publishes, and distributes copies of the Christian Bible to recipients around the world. Overton allegedly altered the bank account information of former employees that had been on file with the company so that any future payments to those former employees would be diverted into bank accounts that she controlled. Overton then allegedly arranged for her employer to pay more than $100,000 in wages to those former employees, all of which wound up in her bank accounts.
If convicted of all charges, the defendant faces a maximum possible sentence of at least two years’ imprisonment and a statutory maximum sentence of 468 years’ imprisonment, a $6.75 million fine, three years supervised release, and a $2,700 special assessment.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Mark B. Dubnoff
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Resolves Claims That Philadelphia Cardiologist Billed Medicare for Unnecessary Stent ProceduresRead the Press Release
PHILADELPHIA – Vidya Banka, M.D., a cardiologist and former director of Pennsylvania Hospital’s cardiac catheterization lab, has entered into a settlement agreement with the United States to resolve allegations that he improperly submitted Medicare claims for unnecessary cardiac stent procedures.
The University of Pennsylvania Health System (“UPHS”), which owns Pennsylvania Hospital, brought the matter to the United States’ attention through a voluntary self-disclosure. In January 2017, UPHS reached a separate settlement with the United States. The United States then continued to investigate Dr. Banka.
Dr. Banka had privileges to admit patients to Pennsylvania Hospital and ceased working there in September 2012.
The United States alleged that between May 5, 2010 and September 7, 2012, Dr. Banka performed cardiac stent procedures at Pennsylvania Hospital that were not medically necessary. According to the United States, claims were then submitted to Medicare for stent procedures that Dr. Banka performed.
To resolve the matter, Dr. Banka has agreed to pay a civil penalty of $126,617. He has also agreed to a five-year term of exclusion from Medicare, Medicaid, and all other Federal health care programs. Dr. Banka admitted no liability as part of the agreement.
“We encourage health care organizations to make voluntary disclosures to the government when they identify false claims,” said United States Attorney Louis D. Lappen. “This agreement with Dr. Banka shows that we will and must hold individuals accountable. Voluntary disclosure by an institution is not a free pass from accountability for the individual directly responsible for the false claims.”
Assistant U.S. Attorney Michael S. Macko handled the matter. The matter was investigated by the Office of the Inspector General of the Department of Health and Human Services, and by Auditor Dawn Wiggins of the U.S. Attorney’s Office.
Philadelphia Man Charged with Possession of a Firearm by a Convicted FelonRead the Press Release
PHILADELPHIA – Keith Freeman, 23, of Philadelphia, Pennsylvania was charged today by Indictment with one count of possession of a firearm by a convicted felon, announced United States Attorney Louis D. Lappen.
If convicted, the defendant faces a maximum sentence of ten years in prison, plus a possible fine, supervised release, and a special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Timothy M. Stengel.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Drug TraffickingRead the Press Release
Shawn Gilbert, 46, of Philadelphia, was charged today by indictment[1] with possession with intent to distribute marijuana and Xanax, possession of a firearm in furtherance of a drug trafficking crime, possession of a firearm by a convicted felon, announced United States Attorney Louis D. Lappen.
The indictment alleges that on about September 1, 2017, Gilbert possessed with intent to distribute marijuana and Xanax, and was found in possession of a firearm along with the marijuana and Xanax.
If convicted, Gilbert faces lifetime imprisonment, including a 20 year mandatory minimum term of imprisonment, at least 4 years up to lifetime supervised release, a $1,250,000 fine, and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and has been assigned to Assistant United States Attorney Salvatore L. Astolfi.
[1] An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Men Sentenced to Prison for Running Fraudulent Tax Return RingRead the Press Release
Two Philadelphia men were sentenced to prison for conspiring to file fraudulent tax refund claims, announced U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Moise Olivier, 28, a member of the conspiracy, was sentenced today to serve three months in prison, followed by three years of supervised release, and was ordered to pay $181,805.10 in restitution and a $100 special assessment. Hans Pierre, another member of the conspiracy, was sentenced last month to serve three months in prison. Pierre, 29, was also sentenced to three years of supervised release following his prison sentence and ordered to pay $95,157.41 in restitution and a $100 special assessment.
According to documents and information provided to the court, Olivier and Pierre conspired with others to use stolen IDs to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds. Although neither man had a tax preparation business, Olivier opened up a bank account in the name of “Moise Olivier Tax Service” and Pierre opened up two bank accounts in the name of “Hans Pierre Tax Service” to facilitate the crime. Their co-conspirators directed the IRS to deposit some of the fraudulently obtained refunds into these bank accounts. Olivier and Pierre withdrew money from their bank accounts to provide to other co-conspirators, and they kept a substantial portion of the illegal proceeds for their own use. Olivier admitted to causing a tax loss of $181,805.10. Pierre admitted to causing a tax loss of $95,157.41.
In addition to these sentences, U.S. District Judge John R. Padova sentenced the other defendants as follows:
- Steeve Zamor, who recruited other individuals to join the scheme, was sentenced to 22 months in prison and three years of supervised release, and ordered to pay $366,135.53 in restitution and a $100 special assessment.
- Shamback Francois was sentenced to eight months in prison and three years of supervised release, and ordered to pay $425,841.14 in restitution and a $200 special assessment.
- Douge Francois was sentenced to four months in prison in prison and three years of supervised release, and ordered to pay $32,300 in restitution and a $100 special assessment.
- Daniel Monville was sentenced to three months in prison and three years of supervised release, and ordered to pay $155,789.23 in restitution and a $400 special assessment.
- Peterson Blanc was sentenced to three months in prison and three years of supervised release, and ordered to pay $100,049.10 in restitution and a $700 special assessment.
- Stanley Jean was sentenced to three months in a halfway house and five years of probation, and ordered to pay $129,000 in restitution and a $200 special assessment.
- Jean Celestin was sentenced to two months in prison and three years of supervised release, and ordered to pay $118,000 in restitution and a $100 special assessment.
- Ronald LaFortune was sentenced to two months of home confinement and three years of probation, and ordered to pay $118,000 in restitution and a $100 special assessment.
Zamor, Douge Francois, Blanc, Monville, and LaFortune all face potential immigration proceedings as a result of their felony convictions.
U.S. Attorney Lappen and Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and the FBI, who conducted the investigation, and Trial Attorney Eric B. Powers of the Tax Division and Assistant U.S. Attorney David Ignall, who prosecuted the case.
- Steeve Zamor, who recruited other individuals to join the scheme, was sentenced to 22 months in prison and three years of supervised release, and ordered to pay $366,135.53 in restitution and a $100 special assessment.
Delaware Man Charged in Artifact TheftRead the Press Release
PHILADELPHIA – Michael Rohana, 23, of Bear, DE, was charged today by indictment[1] of theft of major artwork from a museum, concealment of major artwork stolen from museum and interstate transportation of stolen property. According to the indictment, on, December 21, 2017, Rohana stole from the Franklin Institute, a piece (“the Thumb”) from one of the terracotta sculptures dating from 210 to 209 B.C. Rohana then transported the Thumb from Philadelphia to his home in Bear, Delaware.
If convicted, Rohana faces a maximum term of thirty years in prison, up to three years of supervised release, and a $750,000 fine.
This case was brought to the immediate attention of authorities by the Franklin Institute. It was investigated by the Federal Bureau of Investigation’s Art Crime Team and is being prosecuted by Assistant United States Attorney KT Newtown.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged as Convicted Felon in Possession of a FirearmRead the Press Release
PHILADELPHIA – Timothy Smith, 37, of Philadelphia, was charged today by indictment[1] with possession of a firearm by a convicted felon, announced United States Attorney Louis D. Lappen. According to the indictment, on November 25, 2017, Smith was in possession of a Hi-Point, Model C-9, 9mm pistol, with obliterated serial number raised to read P1650136, loaded with 6 live rounds.
If convicted, Smith faces a minimum term of fifteen years in prison, up to three years of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Intra-Operative Monitoring Company Agrees to Pay $550,000 to Settle False Claims Act ClaimsRead the Press Release
PHILADELPHIA – Marshfield Medical, Inc., formerly known as Bromedicon, Inc. (“Bromedicon”), has agreed to pay $550,000 to settle allegations under the False Claims Act that it submitted false claims to Medicare and other federal health care programs for failing to provide a qualified interpreting physician to monitor each surgery for which it purportedly provided remote Intraoperative Neurophysiological Monitoring (“IONM”).
Bromedicon was in the business of providing real-time remote IONM during certain surgeries, such as brain and spinal surgeries. In IONM, a qualified interpreting physician in a remote location monitors the integrity of neural structures during surgery via a live data stream transmitted from electrodes on the patient. IONM is intended to reduce the likelihood of unintended damage to those structures and provide guidance to the surgeon during surgery. The qualified interpreting physician is in live contact with a technician in the operating room throughout the surgery so that relevant findings can be communicated to the surgeon in real time. Medicare rules require that the qualified interpreting physician is licensed to practice medicine.
In numerous cases between 2011 and 2015, Bromedicon failed to provide a qualified interpreting physician to monitor surgeries for which it purportedly provided remote IONM services. In some of those cases, no one monitored the data stream from the surgeries. In others, Bromedicon’s medical director, a foreign medical school graduate with no license to practice medicine in the United States, was the only monitor. Bromedicon violated the False Claims Act by submitting claims for reimbursement for these IONM services as though one of the licensed physicians employed by Bromedicon performed them.
The settlement resolves a lawsuit pending in federal court in the Eastern District of Pennsylvania that was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. “We thank the whistleblower in this case. Information from citizens can be invaluable in detecting and combatting fraud,” said U.S. Attorney Louis D. Lappen.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and U.S. Office of Personnel Management Office of the Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant U.S. Attorney John T. Crutchlow and Auditor Dawn Wiggins.
Statement by United States Attorney Louis D. Lappen Regarding U.S. vs. PawlowskiRead the Press Release
“Today’s guilty verdicts send the message again to corrupt politicians that they are not above the law,” said United States Attorney Louis D. Lappen. “The jury has held Mayor Pawlowski accountable for selling his office to the highest bidder to fund his personal ambitions. Thinking only of himself, he deprived Allentown residents of their right to receive honest and faithful services from their municipal government. The mayor then tried to cover up his crimes by destroying evidence, lying to the FBI agents who were investigating him, and lying to the federal jurors who heard his case. Our prosecutors and law enforcement partners worked extremely hard to investigate this case, which also resulted in 10 guilty pleas. We hope that those in public office receive the clear message that justice system will not tolerate these abuses of the public trust.”
Duo Charged with Conspiracy to Commit Health Care Fraud and Conspiracy to Solicit and Pay KickbacksRead the Press Release
John Montgomery, 58, of Exton, PA and Alfredo Lopez, M.D., 47, of Indianapolis, Indiana, were indicted on charges of Conspiracy to Commit Health Care Fraud and Conspiracy to Solicit and Pay Kickbacks, announced United States Attorney Louis D. Lappen. As alleged in the indictment, the defendants contracted with primary care physicians, chiropractors and podiatrists across the United States to provide nerve conduction testing in the provider’s office. Defendants Montgomery and Lopez offered the providers financial incentives to induce them to order nerve conduction tests for patients in their practice, which the defendants provided, and for which they obtained payments from Medicare. According to the indictment, from January 2006 through January 2013, the defendants caused the submission of least approximately $4.1 million of fraudulent claims to Medicare for nerve conduction tests that did not meet Medicare’s coverage criteria and established standards of care for such testing. The defendants are alleged to have caused Medicare to incur losses of at least approximately $ 679,214 during the period charged in the indictment.
If convicted the defendants face a maximum possible sentence of 15 years imprisonment; three years of supervision after release from prison; fines of 500,000; and a special assessment of $200.
The case was investigated by Health and Human Services – Office of Inspector General and is being prosecuted by Assistant United States Attorneys M. Beth Leahy and Jennifer B. Jordan.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Doctor Sentenced to 48 Months in Prison for Selling Prescriptions of Suboxone and KlonopinRead the Press Release
PHILADELPHIA – Dr. Alan Summers, 79, of Ambler, PA, was sentenced today in the United States District Court for the Eastern District of Pennsylvania by the Honorable Lawrence F. Stengel to 48 months in prison, followed by 2 years supervised release. Summers was also ordered to pay $14,000 in restitution, $4.6 million in restitution and a $1700 special assessment.
Dr. Summers sold commonly abused prescription drugs in exchange for cash payments. Dr. Summers previously pleaded guilty to conspiracy to distribute controlled substances, distribution of controlled substances, health care fraud, and money laundering, and was announced by United States Attorney Louis D. Lappen, Special Agent-in-Charge Jonathan A. Wilson of the Drug Enforcement Administration and Special Agent-in-Charge, Maureen Dixon with Health and Human Services Office of Inspector General.
Dr. Summers operated a medical clinic on South Broad Street in Philadelphia, and sometimes operated under the business name “NASAPT” (National Association for Substance Abuse-Prevention & Treatment). Dr. Summers employed numerous other doctors, including co-defendants Dr. Azad Khan and Dr. Keyhosrow Parsia. The defendants sold prescriptions for Suboxone and Klonopin in exchange for cash payments. Suboxone is a brand name for a drug used to treat opiate addiction. None of the defendants conducted medical examinations or mental health examinations as required by law in order to legally prescribe these controlled substances. Dr. Summers also assisted his customers in obtaining health insurance benefits for these illegally prescribed controlled substances by providing false information to health insurance companies so that his customers could fill the prescriptions using their health insurance. Many of the customers who frequented this clinic were, in fact, drug dealers or drug addicts who sold the prescribed medications. During the duration of the conspiracy, Dr. Summers illegally sold over $5 million worth of controlled substances.
“Dr. Alan Summers cared more for his financial gain, than his oath as a doctor,” said United States Attorney Louis D. Lappen. “His actions helped fuel the opioid epidemic and the illegal distribution of prescription drugs. Today’s sentence should serve as a powerful deterrent to those medical professionals who might consider risking their careers and liberty for illegally profiting on the drug trade. Our office along with our local, state and federal law enforcement partners will continue to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.”
“Dr. Summers was responsible for the illegal distribution of millions of dollars of prescription drugs that are commonly used to treat opioid addiction, and did so solely for profit,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “As part of the U.S. Attorney’s Office new law enforcement opioid task force, the DEA will aggressively continue to identify and investigate the doctors that are contributing to the opioid crisis affecting our region through their criminal acts.”
The case was investigated by the Drug Enforcement Administration, the Department of Health and Human Services Office of the Inspector General, and the Internal Revenue Service Criminal Investigations, with assistance from the Philadelphia Police Department and the Pennsylvania Bureau of Narcotics Investigations. It is being prosecuted by Assistant United States Attorney Robert Livermore.
Hammonton Man Charged with Enticement of A MinorRead the Press Release
Joseph Picchi, 49, of Hammonton, NJ, was charged today by Indictment[1] with one count of enticement of a minor announced United States Attorney Louis D. Lappen. The indictment alleges that on or about July 20-21, 2017, attempted to entice a minor online, who he believed had not attained the age of 18 years, to engage in sexual activity, for which any person could be charged with a criminal offense.
If convicted the defendant faces a maximum possible sentence of lifetime imprisonment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”), the Borough of Conshohocken Police Department, and the East Norriton Police Department and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Radnor Township Board of Commissioners President IndictedRead the Press Release
PHILADELPHIA – The federal indictment against Philip Ahr, a/k/a “DaddyX” and “DaddyXX,” of Radnor, Delaware County, PA, was unsealed today in federal court. The indictment charges Ahr with two counts of distribution of child pornography, two counts of receipt of child pornography, and one count of possession of child pornography, all stemming from his trafficking in hundreds of images and videos of child pornography on the Internet. The indictment charges Ahr with committing these crimes for almost three years, beginning in 2013.
Ahr’s initial appearance in federal court was held today. The Honorable Lynne A. Sitarski detained him on the Government’s request pending a detention hearing scheduled for February 26, 2018.
If convicted, Ahr faces a statutory maximum sentence of 100 years’ incarceration, a 5-year mandatory minimum sentence of imprisonment, 5 years up to a lifetime of supervised release, a $1,250,000 fine, and $10,500 in special assessments.
The case was investigated by the FBI, Task Force Officer Kenneth Bellis and Special Agent Jennifer Morrow, in conjunction with the Delaware County District Attorney’s Office and the Internet Crimes Against Children Unit (ICAC). It is being prosecuted by Assistant United States Attorney Michelle Rotella.
Bucks County Man Charged with Receipt and Possession of Child PornRead the Press Release
Brian High, 45, of Bucks County, Pennsylvania, was charged today by Indictment with receipt and possession of child pornography, announced United States Attorney Louis D. Lappen. The Indictment alleges that High received child pornography on or about April 8, 2013, August 10, 2015, September 29, 2016, and further that High possessed child pornography on October 27, 2016.
If convicted as charged, the defendant faces a maximum possible sentence of 80 years’ imprisonment, a mandatory minimum term of 5 years’ imprisonment, supervised release for a minimum term of five years and a lifetime maximum term, a $1,000,000 dollar fine, mandatory restitution, and a $400 special assessment, except if High is found not to be indigent, which would result in an additional $15,000 mandatory special assessment, for a total of $15,400.
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 New Britain Township Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Katherine Driscoll.
Owners of Pennsylvania Based Internet Florist Convicted of Tax CrimesRead the Press Release
A Pennsylvania couple that owned and operated an internet floral business was convicted yesterday of failing to pay over employment taxes to the Internal Revenue Service (IRS) and of filing fraudulent personal and corporate tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting United States Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to the evidence introduced at trial, Andrew Bassaner (aka Andrew Bunchuk), 45, and his wife and business partner, Vicki Bunchuk, 44, owned and operated Florist Concierge Inc. (FCI). For tax years 2010 through 2012, Bunchuk, aided and assisted by Bassaner, filed fraudulent corporate and personal income tax returns with the IRS. They diverted funds from FCI, which they deducted as business expenses on FCI’s corporate returns and did not report as income on their personal returns. They spent the money on personal luxuries, including a monthly rent of $17,000 for a home in Windemere, Florida. In addition, from 2011 through 2014, Bassaner and Bunchuk filed fraudulent employment tax returns for FCI that falsely classified its employees as independent contractors. Based on this fraudulent classification, Bassaner and Bunchuk claimed not to owe employment taxes on the wages paid to those individuals.
Sentencing is scheduled for June 27 before U.S. District Court Judge Michael M. Baylson. The defendants face a statutory maximum sentence of five years in prison for each employment tax count and three years in prison for each count of filing a fraudulent return. They also face a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Lappen thanked special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney David Ignall and Trial Attorneys Christopher O’Donnell and Jack Morgan of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
U.S. Attorney for the Eastern District of Pennsylvania Announces Opioid Law Enforcement Task ForceRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Pennsylvania has formed an Opioid Law Enforcement Task Force to combat the serious opioid, heroin, and fentanyl crisis. The Task Force includes federal, state, and local, law enforcement officers and prosecutors, and will be managed by the Eastern District’s Opioid Coordinator. It will be responsible for developing, implementing, and coordinating a robust prosecution response to this crisis. The office has already assembled committees of experienced federal and state prosecutors to assist law enforcement with the prosecution of transnational criminal organizations that smuggle heroin and opioids into the United States, medical professionals who unlawfully prescribe or divert highly addictive opioids, cyber criminals who distribute heroin and illicit opioids through the dark net, and drug traffickers or persons who are criminally responsible for opioid overdose deaths.
“This isn’t a crisis any one of us can tackle alone,” said United States Attorney Louis D. Lappen. “We have already been collaborating on these issues, but it is so critical we continue to work together in even more effective ways. This is the crisis of our time, and we need all hands on deck in an unprecedented way. As this crisis continues, it evolves and adapts. We also need to continue to evolve and adapt.”
The USAO’s Opioid Law Enforcement Task Force was created in response to the designation of the opioid epidemic as a “national health emergency” and to directives from Attorney General Jefferson B. Sessions, who has made combating the opioid epidemic a top priority for the Department of Justice. The Eastern District of Pennsylvania has had a successful record of identifying and prosecuting pill mill doctors with distribution causing death, among numerous other charges. Last year, Attorney General Sessions formed an Opioid Fraud and Abuse Detection Unit to focus on identifying and prosecuting health care fraud related to prescription opioids.
Jury Convicts Attorney-Imposter Who Operated Fraudulent Nationwide Law PracticeRead the Press Release
PHILADELPHIA – A federal jury yesterday returned guilty verdicts on all counts against Leaford George Cameron, 65, of Burlington, New Jersey, in connection with his operation of a fraudulent nationwide law practice. Cameron was convicted of one count of mail fraud, two counts of wire fraud, and three counts of making false statements.
The government’s trial evidence proved that for over a decade, Cameron posed as an attorney in numerous legal cases pending in federal and state courts around the United States, defrauding over 100 victim “clients” who paid Cameron for what they believed were legitimate legal services. Cameron’s victim “clients” resided around the country and world, including in Pennsylvania, New York, New Jersey, Connecticut, Florida, Illinois, Jamaica, and India.
To gain access to the legal system, and to deceive victims, courts, judges, and opposing lawyers, Cameron repeatedly stated in his legal motions, forms, and filings – often under the penalty of perjury – that he was an attorney with a law license issued by the Pennsylvania Supreme Court. Cameron, who is not a lawyer and has never been a lawyer, used multiple stolen Attorney Identification Numbers belonging to real lawyers, including an Administrative Law Judge in Washington, D.C., when filing his legal forms and motions.
To deceive the world into believing that he was a real lawyer, Cameron devised a fake law firm complete with fake lawyers and fake administrative/support staff. Cameron, who called his fraudulent firm “The Law Offices of Cameron, Hamilton and Associates” or “The Law Offices of Bernstein, Cameron, Hamilton and Associates,” invented the identities of fake lawyers with the last names “Hamilton” and “Bernstein,” neither of whom were real lawyers working at the firm. Cameron obtained and used business cards, letters, and envelopes which contained images of the scales of justice and that listed the name of his fake law firm and the other fake lawyers in the firm. Cameron submitted legal filings to courts in which he forged the name of one of the fake lawyers at his fake firm, and also communicated with victims by writing letters that he signed using different versions of a fake staff worker who Cameron called, at various times, either “Ann Marie Hyde,” “Ann Marie Hall,” or “Ann Marie Hinds.” In one letter Cameron wrote to a victim using the “Ann Marie” identity, Cameron threatened the victim that failing to pay Cameron’s legal bill would cause adverse consequences for the victim’s immigration status in the United States.
Cameron, who ran his fraudulent law practice from his house in Burlington, NJ, created fake identifiers for his home address to deceive his victims and the courts into believing that he had a real commercial office. Specifically, Cameron added the words “Suite B-1,” “Suite B-2,” “PO Box 399,” and/or “PO Box 1399” to his letters and filings to give the impression that his house was a commercial setting. Cameron, however, knew that he could not tell the IRS or the New Jersey government that he was a lawyer in his tax returns, and risk being caught; Cameron thus stated in his tax returns that he either was a “consultant,” “litigation specialist,” or “legal consultant.”
Cameron, who claimed to have earned various degrees including a BSC, MBA, LLB and LLM, had little idea what he was doing in his victims’ legal matters, causing significant harm to his victims and their cases. In one home foreclosure case pending in the Delaware County, Pennsylvania Court of Common Pleas, Cameron’s victim “client” lost her home as a result of the lawsuit; the same victim “client” later hired Cameron for a guardianship matter pending in the Probate Court of Gwinnett County, Georgia, which also resulted in a loss. Cameron also posed as a lawyer in other types of cases, including in an automobile accident case and a divorce case. Cameron also represented dozens of victim “clients” in their immigration matters pending in immigration courts around the country, including in Chicago, IL, New York City, NY, Philadelphia, PA, and Hartford, CT. Cameron’s fraudulent legal work in those cases resulted in his victim “clients” suffering serious adverse consequences, including being ordered removed from the United States.
Cameron’s sentencing was set for Thursday, May 31, 2018, before U.S. District Judge Gene E.K. Pratter. Cameron faces a statutory maximum sentence of 75 years in prison, up to $1.5 million in fines, three years of supervised release, and a $600 special assessment.
The case was investigated by Homeland Security Investigations (HSI), within the U.S. Department of Homeland Security, with assistance provided by U.S. Citizenship and Immigration Services. It was prosecuted by Assistant United States Attorney James Petkun.
Lancaster Man Charged with Theft of Government FundsRead the Press Release
Jaritza Torres, 32, of Lancaster, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Louis D. Lappen. According to the Information[1], the defendant received Social Security benefits intended for her minor child, after the child began living with another relative. The defendant is also alleged to have falsely reported to the Social Security Administration that her child remained in her care after the child had moved. The defendant’s alleged actions resulted in a loss to the government of approximately $26,885.
If convicted, the defendant faces a substantial period of incarceration, a 3‑year period of supervised release, restitution to the government of $26,885, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.
[1] An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Group Indicted for Long Running Scheme to Defraud the GovernmentRead the Press Release
Anthony Horton, 37, of Philadelphia; Aaron Horton, Jr., 39, formerly of Philadelphia; Thomas Gillis, 39, of Philadelphia; Faith Charlton, 34, of Philadelphia; Lynda Slaughter, 36, of Sharon Hill; and Marie “Kellie” Slaughter, 32, of Philadelphia, were all charged today with conspiracy against the United States, announced United States Attorney Louis D. Lappen. According to the Indictment,[1] the co-conspirators engaged in a long-running scheme to defraud the federal government. Their schemes included creating false and fictitious businesses in order to use stolen identity information to collect unemployment benefits; and filing false tax returns to get refunds not due to the co-conspirators. Substantive mail fraud, false returns, aggravated identity theft, and false statement charges are also included in the indictment.
If convicted, all defendants face substantial prison terms, as well as full restitution to the government.
The case was investigated by the United States Department of Labor – Office of Inspector General; the United States Postal Inspection Service; the Social Security Administration – Office of Inspector General; the Internal Revenue Service – Criminal Investigations Division; and the Pennsylvania Department of Labor; and is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.
[1] An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Couple Sentenced for Unsuccessful Bribing of SEPTA OfficialsRead the Press Release
PHILADELPHIA – Nazik Modawi and Abboud Wali were sentenced to prison for their conspiring to bribe a SEPTA employee. Modawi, who bribed SEPTA employees on two occasions, earned a sentence of one-year imprisonment. Wali, who was involved with one of those bribes, was given a sentence of 6 months’ imprisonment. The Honorable Harvey Bartle III, United States District Judge in the Eastern District of Pennsylvania, remarked that bribing public officials “strikes at the heart of our democracy.”
Modawi and Wali owned and operated companies, called Rides, Inc. and Safe Rides, LLC, that provided transportation services for children and adults with special needs. Modawi and Wali sought a “Disadvantaged Business Enterprise” (DBE) certification from SEPTA in order to obtain various government contracts. To expedite their application, Modawi and Wali gave cash payments to the SEPTA employee. The total amount of the bribes given to Septa employees were $10,000. The SEPTA employee immediately alerted authorities.
The case was investigated by the Federal Bureau of Investigation, the United States Department of Transportation, Office of Inspector General, and SEPTA Office of the Inspector General. It was prosecuted by Assistant United States Attorney Denise S. Wolf.
CEO of Mortgage Lender Charged with Making False Statements to HUDRead the Press Release
John Seckel, of Newtown, Pennsylvania, was charged by information with four counts of making false statements to the Department of Housing and Urban Development. Seckel had been the CEO of Seckel Capital, LLC, an FHA-approved mortgage lender in Bucks County, Pennsylvania.
For the years 2012 to 2015, Seckel Capital, LLC, was a mortgage lender in Bucks County that was approved by the Federal Housing Administration to originate mortgage loans that would be insured by the FHA. John Seckel maintained the status of Seckel Capital as an FHA-approved lender during this time period by making false statements to the Department of Housing and Urban Development. In particular, on four occasions from 2013 to 2016, Seckel filed audited financial statements for Seckel Capital that Seckel had forged. Seckel also, four times, filed certifications falsely claiming that he had met the net worth and other requirements to be approved as an FHA lender.
If convicted the defendant faces a maximum statutory sentence of eight years’ imprisonment.
The case was investigated by the United States Department of Housing and Urban Development, Office of Inspector General, 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.
Wilmington, Delaware Man Charged with Attempting to Defraud Cisco and Microsoft out of over $4.5 Million Worth of Computer HardwareRead the Press Release
An Indictment[1] was returned today charging Justin David May, 28, of Wilmington, Delaware, with 24 counts of mail fraud, 16 counts of money laundering, 3 counts of interstate transportation of goods obtained by fraud, and 2 counts of tax evasion, announced Interim United States Attorney Louis D. Lappen.
The Indictment alleges that May perpetrated two separate schemes to defraud Cisco Systems Inc. and Microsoft. The Indictment alleges that in each scheme, May obtained serial numbers to valuable computer hardware, registered false domain names, obtained false email addresses, and submitted false warranty claims, pretending to own computer hardware that he did not to own and claiming that it was not working. The Indictment alleges that May provided the customer service representatives with descriptions of the non-existent defects that he knew they could not solve by troubleshooting and would require have to be replaced with new computer hardware. The Indictment alleges that May travelled from his home in Wilmington, Delaware, the FedEx stores in the Philadelphia area, as well as out of state in places such as Reno, Nevada, to pick up the fraudulently-obtained computer hardware, then travelled with it across state lines and sold it. The Indictment alleges that May laundered the fraud proceeds by cashing the checks at a check cashing business rather than depositing them in his bank account. The Indictment alleges that May attempted to obtain over $4,000,000 worth of Cisco products and successfully obtained well over $2,000,000 worth of Cisco products as a result of the scheme. The Indictment also alleges that May attempted to obtain over $600,000 worth of Microsoft hardware and successfully obtained over $300,000 of Microsoft hardware as a result of the scheme.
May faces a maximum sentence of 1,029 years’ incarceration, a five-year period of supervised release, a fine of $7,153,400, and restitution of at least $2,506,196. He also faces a likely advisory sentencing guideline range of somewhere between 135 and 168 months’ imprisonment.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Bethlehem Man Charged with Six Counts of RobberyRead the Press Release
PHILADELPHIA – Herik A. Jaramillo, 29, of Bethlehem, Pennsylvania was charged today by Indictment with six counts of robbery which interferes with interstate commerce in violation of the Hobbs Act, announced United States Attorney Louis D. Lappen.
If convicted on all counts, the defendant faces a maximum sentence of 120 years in prison, plus possible fines, supervised release, and special assessments.
This case was investigated by the Bethlehem Police Department, the Lehigh Valley Violent Gang Task Force, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Timothy M. Stengel.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.
Philadelphia Man Charged with Wire FraudRead the Press Release
PHILADELPHIA – Kenneth W. Lewis 41, of Philadelphia, PA, was charged today by Grand Jury Indictment with five counts of wire fraud announced United States Attorney Louis D. Lappen. The indictment alleges the defendant committed wire fraud by applying for credit cards using information for several non-profit organizations and an individual and used the cards to purchase gold coins, precious metals, and diamond earrings.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment for each count of conviction for wire fraud. A conviction for aggravated identity theft carries a mandatory 2-year sentence, 1 year supervised release, a $250,000 fine, and a $100 statutory assessment per count.
The case was investigated by the United States Postal Inspection Service and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Tiwana Wright.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Intent to DistributeRead the Press Release
Joseph Massimino, Jr., of the 700 block of Mountain Street in Philadelphia, was charged today by Indictment with one count of possession with the intent to distribution an array of controlled substances - methamphetamine (actual), fentanyl, heroin, marijuana, and methadone - in violation of 21 U.S.C. § 841(a)(1), as well as with one count of possession of firearms in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c), and one count of possession of a firearm by a convicted felon, in violation of 18 U.S.C. § 922(g)(1), announced United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of life imprisonment, and a mandatory term of imprisonment of fifteen years.
The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Nancy B. Winter.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sex Traffickers to Prey on Philadelphia during NFC ChampionshipRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Pennsylvania encourages the public to be aware of the possibility of sex trafficking during the NFC Championship game weekend in and around the Philadelphia area.
“We need members of the public to help law enforcement identify predators and victims of sex trafficking, especially this weekend,” said United States Attorney Louis D. Lappen. “Tragically, large events like the NFC Championship football game that draw out-of-town crowds also lure sex traffickers, who prey on the most vulnerable members of our community. We must all work together to prevent these crimes and bring perpetrators to justice.”
In recognition of January as National Human Trafficking Prevention Month, the Department of Justice has been encouraging everyone to familiarize themselves with the warning signs of human trafficking. Human trafficking is a federal crime involving the use of force, fraud, or coercion to exploit someone for labor, services, or commercial sex, or the use of juveniles to engage in prostitution. Victims are commonly Americans, but may also be foreign nationals.
Be aware of signs that may indicate someone is being held against her or his will and trafficked for sex:
- They do not hold their own identity or travel documents;
- They appear to suffer from verbal or psychological abuse designed to intimidate, degrade, or frighten;
- They are not permitted to speak for themselves;
- They are extremely nervous, especially if the victim’s “translator” is their trafficker; and
- They are not allowed to move about by themselves and seem to have little understanding of where they are.
The Eastern District of Pennsylvania has aggressively pursued sex trafficking prosecutions with great success. As recently as December 6, 2017, Kevino Graham, 36, of Philadelphia was sentenced to 100 years in federal prison for sex trafficking. Along with his three co-defendants, the defendant engaged in acts of force, threats, fraud and coercion to cause young women to engage in prostitution, including subjecting them to repeated acts of sadistic sexual torture.
Please report a potential sex-trafficking incident please contact the National Human Trafficking Hotline at 1-888-3737-888.