Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Allentown Attorney Pleads Guilty to Tax OffenseRead the Press Release
Douglas M. Marinos, 56, a licensed attorney, pled guilty today to one-count of willfully failing to collect, truthfully account for, and pay over to the United States taxes owed by his Allentown law firm, announced United States Attorney Louis D. Lappen. The Criminal Information to which Marinos pled guilty alleges that Marinos failed to pay over to the Internal Revenue Service (“IRS”) money that he withheld from the paychecks of his firm’s employees, ostensibly for the purpose of paying federal payroll taxes (including Social Security and Medicare trust fund contributions).
Marinos will be sentenced at a later date. He could face up to five years in prison, three years of supervised release, a $10,000 fine, and a $100 special assessment. In addition, as part of his plea agreement, Marinos is required to pay approximately $285,000 in restitution to the IRS.
The case was investigated by the IRS Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Sean P. McDonnell.
Philadelphia Man Charged with Illegal Re-entry After DeportationRead the Press Release
Marco Antonio D’Argnt Reategui, a/k/a “Francisco D'Argent,” a/k/a “Jorge Ortiz,” of Philadelphia, 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 December 13, 2017, D’Argnt Reategui, an alien, and native and citizen of Peru, was found in the United States after having been deported from the United States on or about September 4, 2012.
If convicted, the defendant faces a maximum possible sentence of ten years imprisonment.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Timothy M. Stengel.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delaware County Man Sentenced to 90 Years in Federal PrisonRead the Press Release
PHILADELPHIA – Matthew Maffei, aka “Uncle Matt,” of Aston, Delaware County, PA, was sentenced today to 90 years in federal prison for his manufacture of sexually explicit images of the 7-year old daughter of his childhood friend, and the transportation, receipt, and possession of child pornography. The Honorable Mitchell S. Goldberg, United States Disitirct Judge in the Eastern District of Pennsylvania, also imposed lifetime supervised release, a $20,000 assessment pursuant to the Justice for Victims of Trafficking Act, $5,000 in restitution, and a $400 special assessment. Maffei, a first time offender, previously pled guilty to all charges in the federal indictment.
The Government sought the statutory maximum sentence of 90 years based on the defendant’s horrific sexual abuse of the young victim. Maffei sexually abused the 7-year old child in the victim’s own home, as her parents slept in the next bedroom. He also forced the victim’s 5-year old brother to witness his abuse of the 7-year old on one occasion, and threatened to kill both children if they told their parents what Maffei had done. As part of the sexual assaults on this child, the defendant defecated on her face. Calling the sexual assaults “unspeakable,” the District Court imposed a prison sentence of 90 years, asking the parents to assure the victim and her brother that “this defendant will never in this lifetime be released from custody.”
The case was investigated by the FBI in conjunction with the Delaware County District Attorney’s Office and the Internet Crimes Against Children Unit (ICAC), as well as the Middleton Township, DE Police Department. It was prosecuted by Assistant United States Attorney Michelle Rotella.
Doylestown Man to Pay $307,500 to Resolve Civil False Claims Allegations That He Illegally Received Federal Disability Benefits While Concealing Substantial Other IncomeRead the Press Release
PHILADELPHIA – Richard Cundari, of Doylestown, Pennsylvania, has agreed to pay $307,500 to resolve civil fraud claims under the False Claims Act. The government’s claims concern allegations that Cundari applied for and received occupational disability annuities that he was ineligible to receive due to income earnings in excess of the applicable limits. The civil resolution was announced today by United States Attorney Louis D. Lappen.
The Railroad Retirement Act provides benefits, in the form of occupational disability annuities, for railroad workers whose permanent physical or mental condition is such that they are unable to engage in any regular employment. The occupational disability annuity program is administered by the United States Railroad Retirement Board (RRB) and is financed by taxes paid by railroad employees. To qualify for these federal benefits, a worker’s income may not exceed certain limits established by the RRB. Benefits cannot be claimed or paid for any month in which a claimant earns income in excess of these limits. Disabled railroad workers who meet the requirements of the program must disclose to the RRB any employment and income that might affect their entitlement to benefits. Prior to 2007, the monthly earnings limit was $400 after deduction of disability-related work expenses. Beginning in 2007, the monthly earnings cap for disability annuitants increased as follows: 2007 – $700; 2008 – $730; 2009 – $770.
The government alleges that defendant Richard Cundari applied for and received disability benefits for approximately nine years – from 2001 through 2009 – during which time his income vastly exceeded the limit for disability benefit eligibility. For each year during that time period, Cundari received monthly benefit checks and deposited each check into his personal bank account. Due to his substantial other income, the government alleges that Cundari was not eligible to receive disability benefits and that Cundari knew he was not eligible to receive these benefits.
The claims resolved by this settlement agreement are allegations only and there has been no determination of liability.
The allegations arose from an investigation led by Special Agent Stephen Naudasher of the Railroad Retirement Board Office of Inspector General. The case was handled by Assistant United States Attorneys David A. Degnan and Charlene Keller Fullmer
Philadelphia Man Charged with Theft of Government FundsRead the Press Release
William Key, 86, of Philadelphia, 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 retirement benefits under two different names from September 2004 until November 2016. The defendant’s alleged actions resulted in a loss to the government of approximately $57,536.40.
If convicted, the defendant faces a ten-year term of imprisonment, a 3‑year period of supervised release, restitution to the government of $57,536.40, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, Pennsylvania State Police, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
[1] An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Attorney General Jeff Sessions Selects Eastern District of Pennsylvania to Receive New Assistant United States Attorney to Combat Violent CrimeRead the Press Release
Philadelphia - Attorney General Jeff Sessions has selected the Eastern District of Pennsylvania to receive additional resources for the fight against violent crime. The district will receive an additional Assistant U.S. Attorney to focus exclusively on violent crime, one of 40 new federal prosecutors in 27 selected locations throughout the United States.
“Led by our 94 United States Attorney’s Offices, Project Safe Neighborhoods (PSN) task forces are hitting the streets across America to apprehend and bring violent criminals to justice. I have asked Congress for additional PSN funding next year because I believe nothing will be more effective at reducing violent crime,” said Attorney General Sessions. "Under this program, I am asking a great deal of our United States Attorneys. I am both empowering them and holding them accountable for results. To put them in the best position to impact and reduce violent crime, it is my privilege to announce today that through a re-allocation of resources, we will be enlisting and deploying 40 additional violent crime prosecutors across the United States."
“While all of us in law enforcement in the Eastern District of Pennsylvania have made substantial progress in reducing violent crime rates, many of our communities are still facing untenable levels of violent crime,” said United States Attorney Louis D. Lappen. “We must continue to work together to keep our citizens safe, and adding additional resources to this effort will only enhance our commitment to public safety.”
More information on the locations of those 40 Assistant United States Attorneys and violent crime task forces is below:
AUSA Breakdown by District
Northern District of Alabama - 1
Eastern District of Arkansas - 1
Northern District of California - 2
Southern District of California - 1
District of Connecticut - 1
District of Columbia - 1
Central District of Illinois - 1
Northern District of Illinois - 3
Southern District of Indiana - 1
Eastern District of Louisiana - 1
District of Maryland - 3
Western District of Michigan - 1
Eastern District of Missouri - 2
Western District of Missouri - 1
District of Nevada - 2
District of New Mexico - 1
Eastern District of New York - 2
Western District of New York - 1
Northern District of Ohio - 2
Eastern District of Pennsylvania - 1
Middle District of Tennessee - 2
Western District of Tennessee - 2
Eastern District of Texas - 1
Northern District of Texas - 1
Southern District of Texas - 2
Western District of Texas - 1
Eastern District of Wisconsin - 2Wilmington, DE Man Charged with Illegal Re-entry After DeportationRead the Press Release
Sergio Jonathan Caal-Melendez, of Wilmington, DE, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Louis D. Lappen. The indictment alleges that on or about November 27, 2017, Caal-Melendez, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about May 21, 2008.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Sarah M. Wolfe.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Men Convicted of Participating in A Large Heroin and Crack Cocaine Distribution Ring Out of South PhiladelphiaRead the Press Release
PHILADELPHIA – Yesterday a federal jury returned guilty verdicts on all counts against four men from Philadelphia, Basil Bey, 28, Reginald White, 31, Tyrik Upchurch, 30, and Amin Wadley, 26, in connection with their participation in a large heroin and crack cocaine distribution group. Bey, White, Upchurch, and Wadley were each convicted of one count of conspiracy and one count of distribution of a controlled substance. Bey and White were also each convicted of one count of distributing a controlled substance within 1,000 feet of a playground.
As presented at trial, from at least April 2015 through December 2016, Bey was the leader of a narcotics distribution group that sold heroin and crack cocaine nearly 24 hours a day, seven days a week to customers in South Philadelphia. The group, which included White, Upchurch, and Wadley as members, sold its customers narcotics by use of a cellular telephone, which would result in the delivery of narcotics by vehicle. Members of the group worked shifts in order to serve their narcotics customers day or night. Bey, Upchurch, and Wadley also maintained residences around Philadelphia in order to store and package the narcotics for distribution. Due to the dedicated efforts of law enforcement in this case, approximately thirty-five controlled purchases of heroin and/or crack were made from this drug group—all captured on video. Law enforcement also lawfully obtained a wiretap that captured some of the group’s activities on its telephone.
Basil Bey and Amin Wadley each face a mandatory minimum term of 10 years’ imprisonment, with a maximum statutory sentence of life in prison and other penalties. Tyrik Upchurch and Reginald White each face a mandatory minimum of 20 years’ imprisonment, with a maximum statutory sentence of life in prison and other penalties. U.S. District Court Judge Gerald McHugh has not yet scheduled sentencing hearings for the four men.
Five other coconspirators of Bey, White, Upchurch, and Wadley have already pleaded guilty and await sentencing. Jerome Lyles, 33, of Philadelphia, was also indicted* as part of this narcotics distribution group, and a reward is being offered by the Federal Bureau of Investigation for information that leads to his arrest.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorneys Jason Bologna and Kevin Jayne.
* An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lancaster Physican Group Pays over $4 Million to Resolve Kickback Claims Involving HMA HospitalsRead the Press Release
PHILADELPHIA – The Justice Department today announced settlements with Physician’s Alliance Ltd. (PAL), for allegedly receiving illegal remuneration in exchange for patient referrals to hospitals owned by the now-defunct Health Management Associates (HMA).
PAL, headquartered in Lancaster, Pennsylvania, and three of its executives, Lee Meyers, Michael Warren, M.D. and Wallace Longton, M.D., agreed to resolve allegations that, from 2009 until 2012, PAL accepted illegal remuneration from HMA to refer patients to two HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center. Under the settlement, PAL and its executives will pay $4 million plus a percentage of proceeds from the sale of PAL’s interest in a joint venture with HMA.
“These physicians and executives prioritized their own financial interests over the needs of their patients,” said United States Attorney Louis D. Lappen. “Such conduct compromises patient care and undermines the integrity of our nation’s federal health care programs. This settlement should serve as a warning to all providers who allow financial incentives to displace their medical judgment.”
“The Hippocratic oath enjoins physicians to do no harm, not maximize profits by pocketing illegal referral bribes,” said Nicholas DiGiulio, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Physicians that stray from their oath should not be surprised when they come under law enforcement scrutiny.”
Under the qui tam, or whistleblower, provisions of the False Claims Act, private individuals may sue on behalf of the government for false claims and share in any recovery. George E. Miller and Michael J. Metts, former HMA hospital executives, filed suit in the Eastern District of Pennsylvania alleging the scheme between PAL and HMA. Miller’s and Metts’ share of the settlement has not yet been determined.
The settlement was the result of a civil prosecution by the United States Attorney’s Office for the Eastern District of Pennsylvania led by Assistant United States Attorneys Charlene Keller Fullmer and Veronica Finklestein. The investigations were conducted by the Office of Inspector General of the United States Department of Health and Human Services and the Federal Bureau of Investigation.
The case is captioned United States ex rel. Miller & Metts v. HMA, et al, Case No. 14-00339 (D.D.C.).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Duo Charged with Drug Distribution and Related Crimes in BensalemRead the Press Release
James Williams, 30, of Philadelphia, PA, and Aisha Jones, 28, of Bristol, PA, were charged today by Indictment[1] with one count of distribution of heroin, one count of possession of heroin with intent to distribute, one count of possession of a firearm in furtherance of a drug trafficking crime, and, as to Williams only, one count of possession of a firearm as a convicted felon, announced United States Attorney Louis D. Lappen.
If convicted, Williams faces a maximum possible sentence of life imprisonment, a mandatory minimum five years’ imprisonment consecutive to any other sentence imposed, a mandatory minimum three years of supervised release up to lifetime supervised release, a $2,500,000 fine, and a $400 special assessment. Jones, if convicted, faces a maximum possible sentence of life imprisonment, a mandatory minimum five years’ imprisonment consecutive to any other sentence imposed, a mandatory minimum three years of supervised release up to lifetime supervised release, a $2,250,000 fine, and a $300 special assessment.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and the Bensalem Township Police Department, and is being prosecuted by Assistant United States Attorney Andrew J. Schell.
[1]An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Bank RobberyRead the Press Release
Kenneth Reyes, 43, of Philadelphia, PA, was charged today by Indictment with three counts of bank robbery, announced Acting United States Attorney Louis D. Lappen.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Andrea G. Foulkes.
New Garden Township, PA Man Charged with Illegal Re-entry After DeportationRead the Press Release
Miguel Angel Vasquez-Camacho, of New Garden Township, 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 November 29, 2013, Vazquez-Camacho, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about January 5, 1999.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Bea Witzleben.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tax Return Preparer Sentence to 24 MonthsRead the Press Release
Idrissa Koita, 45 of Philadelphia, PA, was sentenced to 24 months in prison, announced Acting United States Attorney for the Eastern District of Pennsylvania Louis D. Lappen.
Koita worked as a tax return preparer for the companies The Ledgerking, Inc. and Medmans Financial Services. Between January 2009 and May 2012, Koita claimed false credits, false deductions and false dependents on federal tax returns for his clients in order to increase their tax refunds. During the same years, Koita also falsified his own personal tax returns by claiming false credits and false dependents.
According to the United States Attorney’s office, Koita pleaded guilty to preparing and filing false tax returns with the Internal Revenue Service. Koita also pleaded guilty to wire fraud and aggravated identity theft stemming from claiming false dependents on tax returns.
Koita’s tax preparation scheme resulted in a tax loss to the federal government in the amount of $2,073,567.54. In addition to Koita’s 24 month prison sentence, he will also be required to serve 3 years’ probation and pay back $60,911 in restitution.
The case was investigation by Internal Revenue Service, Criminal Investigation and Social Security Administration, Office of Inspector General. It was prosecuted by Assistant United States Attorney Anthony Wzorek.
Bar Owner Sentenced to 42 Months in PrisonRead the Press Release
Michael Hoffner, Sr., 52, of Voorhees, New Jersey, was sentenced today to 42 months in prison for wire fraud, announced United States Attorney Louis D. Lappen. The Honorable Mitchell S. Goldberg also imposed a three year term of supervised release and ordered the defendant to pay $87,060 in restitution and to forfeit $82,643 in proceeds.
According to the superseding indictment Hoffner owned the Brown Street Pub in Philadelphia, Pennsylvania. At his guilty plea hearing on July 31, 2017, Hoffner admitted that on 40 occasions between September and December 2012, Hoffner used a stolen credit number to make charges at the pub to credit and debit cards issued by American Express, Navy Federal Credit Union, USAA, ACNB, and the State Employees Credit Union of Maryland. The average fraudulent charge was more than $2,000. The cardholders were not aware of and did not authorize these transactions. The proceeds of these transactions, more than $87,000, went into an account that Hoffner controlled.
The case was investigated by the Federal Deposit Insurance Corporation Office of Inspector General, the Internal Revenue Service-Criminal Investigation Division, and the United States Secret Service, and is being prosecuted by Assistant United States Attorneys David J. Ignall and Christopher J. Mannion.
Woman Charged with Defrauding the School District of PhiladelphiaRead the Press Release
A federal indictment was unsealed last Friday afternoon charging Patricia Cleary with wire fraud, mail fraud, social security fraud, aggravated identity theft and false statements to government agents, announced United States Attorney Louis D. Lappen, FBI Special Agent-in-Charge Michael T. Harpster, USPIS Inspector-In-Charge Daniel B. Brubaker, SSA OIG Special Agent-in-Charge Michael J. McGill, and City of Philadelphia Inspector General Amy Kurland.
According to allegations contained in the indictment, Patricia Cleary falsely and fraudulently presented herself as the tutor for a relative with special needs with the City of Philadelphia School District. Cleary used her maiden name, Patricia Goldstein, as the name for the fictitious tutor. She submitted a false W-9 for the fictitious tutor using the social security number of another person and a retired Pennsylvania teacher’s credentials. She prepared false invoices purportedly for tutoring services provided to a relative and submitted them to the School District from personal email accounts as well as an email account created for the fictitious tutor. After the School District stopped issuing payment on the tutoring invoices and required verification of the tutor’s credentials, Cleary continued to perpetuate the fraud by threatening the School District with a lawsuit, falsely alleging that she hired a tutor, sent the tutor’s IRS form and teaching credentials to the School District, and gave money directly to the tutor for the tutoring services the School District refused to pay. She also submitted false teaching certificates from two different states purportedly in the name of the fictitious tutor and fraudulently created a profile for the fictitious tutor in a system used by the School District to verify credentials, including identifying a stolen social security number of another person as belonging to the fictitious tutor.
As a result of her deceptive tactics, including the submission of false and fraudulent documents to the School District through emails and other documentation, Cleary received approximately $58,940.00 and attempted to receive approximately $33,090 from the School District to which she was not entitled.
“The defendant allegedly stole a victim’s identity and used it to defraud the Philadelphia School District by claiming that she was tutoring her special needs relative,” said United States Attorney Louis D. Lappen. “Our office will continue to prosecute scammers who seek to enrich themselves at the expense of members of our community who are entitled to benefit from valuable public programs that too often are targeted by venal criminals.”
“Stealing money from a cash-strapped school district, money meant to help people with special needs, is outrageous," said FBI Special Agent in Charge Harpster. "As alleged in the indictment, Cleary exploited a vulnerable family member to enrich herself - and when the school district grew suspicious and stopped sending checks, she brashly doubled down and threatened suit. The FBI is committed to investigating and holding responsible anyone fraudulently siphoning off public funds."
"Identify theft is a serious crime that effects millions of Americans each year, " This case is an example of how an identity thief can infiltrate an organization, pose as a legitimate tutor, and cause all of us to pay her an unearned salary,” said Daniel B Brubaker, Inspector in Charge of the Philadelphia Division of the US Postal Inspection Service. “This case illustrates how far reaching the effects of identity theft are, and the depths these criminals will go to receive ill-gotten gains. We take these crimes very seriously and we're dedicated to holding criminals accountable when they use the mail in furtherance of their criminal schemes"
“Patricia Cleary allegedly stole money from the School District that was meant to educate our children, who deserve and need quality education," said Amy Kurland, Inspector General for the School District and City of Philadelphia. "This indictment sends a message that we will not tolerate theft and that we will continue to work to eliminate fraud and ensure integrity in the District.”
Cleary is charged with wire fraud and mail fraud, which carry a maximum sentence of 20 years in prison and a $250,000 fine. Additionally, Cleary is charged with social security fraud, which carries a maximum sentence of 5 years’ imprisonment and a $250,000 fine, and aggravated identity theft, which carries a maximum sentence of 2 years’ imprisonment that must run consecutive to any other sentence and a $250,000 fine. Cleary also is charged with false statements to federal agents, which carries a maximum sentence of 5 years in prison and a $250,000 fine.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Social Security Administration Office of Inspector General, and the School District of Philadelphia Inspector General’s Office. It is being prosecuted by Assistant United States Attorney Tomika N.S. Patterson of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
North Dakota-Based Payment Processor Pleads Guilty to Facilitating Illegal Payday Lending Across the United StatesRead the Press Release
PHILADELPHIA – Intercept Corporation, d/b/a “InterceptEFT” (“Intercept”), a privately held corporation headquartered in Fargo, North Dakota, has pleaded guilty to an Information charging the company with operating an illegal money transmittal business, announced United States Attorney Louis D. Lappen.
Intercept was a “third party payment processor” which processed electronic funds transfers for its clients through the Automated Clearing House (“ACH”) system, an electronic payments network that processed financial transactions without using paper checks. Among Intercept’s clients were numerous business entities that issued, serviced, funded, and collected debt from short-term, high-interest loans, commonly referred to as “payday loans,” because such loans are supposed to be repaid when the borrower received his or her next paycheck or regular income payment. Payday loans are effectively illegal in more than a dozen states, including Pennsylvania, and are highly regulated in many other states.
Various payday loan companies hired Intercept to move large sums of money between the bank accounts of the payday loan companies and their borrowers. These money transfers included the funding of payday loans by the companies to the borrowers, and the collection of loan proceeds from the borrowers to the payday loan companies. Among the payday loan companies that employed Intercept to collect payday loan debt from borrowers who resided in states where such loans were illegal, and in states where there such loans were regulated, were payday companies owned, operated, controlled, and financed by Charles M. Hallinan (recently convicted of illegal payday lending by a federal jury in the Eastern District of Pennsylvania), Scott Tucker (recently convicted of illegal payday lending by a federal jury in the Southern District of New York) and Adrian Rubin (who pleaded guilty to illegal payday lending in the Eastern District of Pennsylvania).
Intercept used the ACH system to transfer funds to and from the bank accounts of borrowers located across the United States, including hundreds of thousands of customers who lived in states that outlawed and/or regulated payday loans. No later than May 2008, Intercept was made specifically aware that one of Intercept’s payday lending clients made a payday loan in violation of Connecticut law. Subsequently, in June 2009, Intercept was again notified that one of its payday lending clients made an illegal payday loan, but this time, the loan was in violation of California law. In 2012, Intercept was instructed by its bank to stop processing payments for payday lending companies for loans made to borrowers in states where such loans were prohibited or restricted. And in August 2012, a payday lending client specifically notified Intercept’s leadership that payday loans were being made in states that outlawed payday lending, including in Pennsylvania. Yet Intercept continued facilitating payday lending operations for its clients in states that outlawed and/or regulated payday loans until at least August 2013.
In total, Intercept processed hundreds of millions of dollars of payments for its payday lending company clients, and earned millions of dollars in profits, as a result of assisting payday lenders in making illegal loans and collecting unlawful debt.
As a result of its criminal conviction, Intercept must pay forfeiture to the United States in the amount of all funds involved in or traceable to the charged offense (and no less than $500,000), a potential corporate fine of up to $500,000, and a $400 corporate assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorneys and Mark B. Dubnoff and James Petkun.
Wayne Man Charged with Mail and Securities FraudRead the Press Release
Paul Smith, of Wayne, Pennsylvania, was charged yesterday by Information with mail fraud and securities fraud, announced United States Attorney Louis D. Lappen. These charges arise from the defendant’s operation of “the Haverford Group,” which the defendant promoted as a stock investment club, but which was actually a Ponzi scheme.
If convicted, Smith faces a maximum possible sentence of 40 years’ imprisonment, a three-year period of supervised release, a $5,250,000 fine, and a $300 special assessment. Full restitution of as much as $886,214 also shall be ordered.
The case was investigated by the Federal Bureau of Investigation with assistance from the Securities and Exchange Commission, and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Political Consultant Pleads Guilty to Lying to the FBI in Connection with Campaign Finance InvestigationRead the Press Release
Political Consultant Pleads Guilty to Lying to the FBI in Connection with Campaign Finance Investigation
A Philadelphia-area political consultant pleaded guilty today to making a false statement to FBI agents in connection with a campaign finance investigation. 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 made the announcement.
Donald Jones, 62, of Willingboro, New Jersey, was charged with this crime and related offenses in an indictment against him and co-defendant Kenneth Smukler returned by a federal grand jury sitting in the Eastern District of Pennsylvania on Oct. 24. Pursuant to the plea agreement, Jones admitted to making a false statement to the FBI arising from his participation in a falsification scheme involving unlawful contributions to Jimmie Moore’s 2012 campaign for the Democratic Party’s nomination for Member of the U.S. House of Representatives. As described in the plea memorandum, the scheme entailed Moore’s agreement to withdraw from the race in exchange for $90,000 in payments from his opponent’s campaign. The payments exceeded the $2,000 limit on contributions from one campaign to another campaign for primary elections. The payments, moreover, were paid to a company created by Moore’s campaign manager, Carolyn Cavaness, for the sole purpose of receiving the funds and repaying Moore’s campaign debts. According to the plea memorandum, the payments to that company were routed through political consulting companies run by Jones and Smukler to conceal the nature and source of the funds.
As set forth in the plea memorandum, the campaign of Moore’s opponent made a $25,000 payment to D. Jones & Associates, a political consulting company run by Jones. On or about August 30, 2012, Jones caused D. Jones & Associates to send a check to the company created by Cavaness in the amount of $25,000. The payment was disguised as a payment for Cavaness’s consulting services, even though Cavaness performed no work for Jones’ company or the campaign of Moore’s opponent. Jones understood that the purpose of the transfers was to conceal the payment of funds from the opposing campaign to Moore’s campaign in exchange for Moore’s withdrawal. According to the plea memorandum, the campaign of Moore’s opponent additionally made $65,000 in payments to Voter Link Data Systems, a political consulting company run by Smukler, and Smukler’s company subsequently sent Cavaness $65,000 in payments to conceal the nature and source of those funds as well.
According to the plea memorandum, on or about May 5, 2017, Jones made a false statement to FBI agents investigating this matter. When questioned about the $25,000 payment from his company to Cavaness’s company, Jones falsely stated to the agents that Cavaness had performed work for his company and the campaign of Moore’s opponent in exchange. According to the plea memorandum, Jones made this false statement knowingly and willfully and for the purpose of concealing from the FBI the fact that the $25,000 payment was an illegal campaign contribution.
Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25. Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2.
The charges against the remaining co-defendant, Smukler, are still pending and a defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.
Political Consultant Pleads Guilty to Lying to the FBI in Connection with Campaign Finance InvestigationRead the Press Release
A Philadelphia-area political consultant pleaded guilty today to making a false statement to FBI agents in connection with a campaign finance investigation. 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 made the announcement.
Donald Jones, 62, of Willingboro, New Jersey, was charged with this crime and related offenses in an indictment against him and co-defendant Kenneth Smukler returned by a federal grand jury sitting in the Eastern District of Pennsylvania on Oct. 24. Pursuant to the plea agreement, Jones admitted to making a false statement to the FBI arising from his participation in a falsification scheme involving unlawful contributions to Jimmie Moore’s 2012 campaign for the Democratic Party’s nomination for Member of the U.S. House of Representatives.
As described in the plea memorandum, the scheme entailed Moore’s agreement to withdraw from the race in exchange for $90,000 in payments from his opponent’s campaign. The payments exceeded the $2,000 limit on contributions from one campaign to another campaign for primary elections. The payments, moreover, were paid to a company created by Moore’s campaign manager, Carolyn Cavaness, for the sole purpose of receiving the funds and repaying Moore’s campaign debts. According to the plea memorandum, the payments to that company were routed through political consulting companies run by Jones and Smukler to conceal the nature and source of the funds.
As set forth in the plea memorandum, the campaign of Moore’s opponent made a $25,000 payment to D. Jones & Associates, a political consulting company run by Jones. On or about August 30, 2012, Jones caused D. Jones & Associates to send a check to the company created by Cavaness in the amount of $25,000. The payment was disguised as a payment for Cavaness’s consulting services, even though Cavaness performed no work for Jones’ company or the campaign of Moore’s opponent. Jones understood that the purpose of the transfers was to conceal the payment of funds from the opposing campaign to Moore’s campaign in exchange for Moore’s withdrawal. According to the plea memorandum, the campaign of Moore’s opponent additionally made $65,000 in payments to Voter Link Data Systems, a political consulting company run by Smukler, and Smukler’s company subsequently sent Cavaness $65,000 in payments to conceal the nature and source of those funds as well.
According to the plea memorandum, on or about May 5, 2017, Jones made a false statement to FBI agents investigating this matter. When questioned about the $25,000 payment from his company to Cavaness’s company, Jones falsely stated to the agents that Cavaness had performed work for his company and the campaign of Moore’s opponent in exchange. According to the plea memorandum, Jones made this false statement knowingly and willfully and for the purpose of concealing from the FBI the fact that the $25,000 payment was an illegal campaign contribution.
Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25. Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2.
The charges against the remaining co-defendant, Smukler, are still pending and a defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.
Delaware County Duo Found Guilty of Drug Distribution and MurderRead the Press Release
Anthony Vetri, 30 of Essington and Michael Vandergrift, 31 of Chester were found guilty by a federal jury of three men and nine women of murder through the use of a firearm and conspiracy to distribute oxycodone. The trial of Vetri and Vandergrift was held from November 29, 2017, through December 7, 2017, before the Honorable Gerald J. Pappert.
Vetri and Vandergrift were convicted of conspiracy to distribute oxycodone from 2008 until June 4, 2013. During the conspiracy, Vetri obtained large sums of oxycodone from a registered pharmacist, Mitesh Patel, who owned and operated three pharmacies in the greater Philadelphia area. Vetri then supplied Vandergrift with oxycodone and both distributed the drugs throughout Delaware and Philadelphia Counties.
During the drug conspiracy, Patel also illegally provided oxycodone to others, including his business partner, Gbolahan Olabode. Beginning in the fall of 2011, Vetri and Vandergrift conspired to eliminate Olabode as a recipient of Patel’s illegally distributed oxycodone in order to increase the volume of oxycodone that they could receive from Patel. Vetri and Vandergrift ultimately decided to murder Olabode. Vandergrift recruited Michael Mangold and Allen Carter to assist in the murder. On January 4, 2012, Vandergrift, Mangold, and Carter went to Olabode’s residence in Lansdowne, Pennsylvania and waited for Olabode to return home. When Olabode returned, Vandergrift and Mangold each used a firearm to fire 27 shots at Olabode as he walked to his home. Olabode was struck approximately 13 times in his head and body. He died from the gunshot wounds. Following Olabode’s murder Vetri continued to illegally distribute oxycodone that he obtained from Patel.
Mitesh Patel, Michael Mangold, and Allen Carter all previously pled guilty to charges for their respective involvement in drug distribution, the murder of Olabode and other offenses, and are currently awaiting sentencing.
Anthony Vetri and Michael Vandergrift each face a sentence of up to life imprisonment. Both defendants are in custody awaiting sentencing. Sentencing is scheduled for Anthony Vetri on March 20, 2017, and for Michael Vandergrift on March 21, 2017.
The case was prosecuted by Assistant United States Attorneys Jonathan B. Ortiz and David. E. Troyer.
The case was investigated by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Department, the Organized Crime Drug Enforcement Task Force, the Lansdowne Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives
Sex Trafficker Sentenced to 100 Years in PrisonRead the Press Release
Kevino Graham, 36, of Philadelphia was sentenced yesterday to 100 years in federal prison for sex trafficking by the Honorable C. Darnell Jones, II, United States District Court Judge, announced United States Attorney Louis D. Lappen. In addition, Judge Jones imposed a fine of $1000, a $300 special assessment, lifetime supervised release, and restitution of $641,900.
According to court documents, the defendant ran a striptease club, known as “Club Passions,” and brothel, known as “Passionate Touch,” at a property he leased in the Cathedral Park section of Philadelphia. 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.
The defendant and co-defendant Raffael Robinson were convicted by a jury on February 5, 2016. Defendant Graham was convicted of two counts of sex trafficking by force and one count of attempted sex trafficking by force. Robinson was convicted of one count of sex trafficking by force, and awaits sentencing. Co-defendant Brian Wright pled guilty and was previously sentenced to 262 months’ incarceration. Co-defendant Renato Teixeira pled guilty and was previously sentenced to 102 months’ incarceration.
The case was investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department Special Victims’ Unit and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Morgan.
Additional Corruption Charges Filed Against Bucks County Public OfficalsRead the Press Release
John I. Waltman, 59, of Trevose, Pennsylvania, Robert P. Hoopes, 70, of Doylestown, Pennsylvania, and Bernard T. Rafferty, 62, of Langhorne, Pennsylvania, were charged in a second superseding indictment[1] with one count of conspiracy to commit money laundering, three counts of money laundering, one count of honest services wire fraud, three counts of honest services mail fraud, and one count of Hobbs Act extortion under color of official right, announced United States Attorney Louis D. Lappen.
Moreover, the second superseding indictment added further corruption charges against Waltman and Hoopes. Specifically, Waltman was charged with five additional counts of Hobbs Act extortion under color of official right, three counts of Travel Act bribery, and two counts of wire fraud. Hoopes was charged with three additional counts of Hobbs Act extortion under color of official right, three counts of Travel Act bribery, and two counts of wire fraud.
Hoopes was also charged with one count of witness tampering. Kevin M. Biederman, 34, was also charged with one count of conspiracy to commit money laundering, three counts of money laundering, and one count of bank bribery.
From October 2010 to December 2016, Waltman was a Magisterial District Judge in Bucks County, Pennsylvania. From February 2016 to December 2016, Hoopes was the Director of Public Safety in Lower Southampton Township, Pennsylvania. In this position, Hoopes had authority over all police, fire, and emergency operations in the township. Hoopes previously operated a legal practice in Doylestown, Pennsylvania. From 1998 to December 2016, Rafferty was a Deputy Constable in Bucks County. Rafferty controlled Raff’s Consulting LLC, a corporation registered with the Pennsylvania Department of State on May 30, 2011. From 2012 to March 2016, Biederman was a business development manager at Philadelphia Federal Credit Union (“PFCU”).
The second superseding indictment alleges that, from 2014 to 2016, Waltman and Hoopes solicited, extorted, and attempted to extort bribes and kickbacks from numerous businesses in exchange for Waltman’s and Hoopes’ influence over Lower Southampton Township’s Board of Supervisors, Solicitor, officers, and employees. In one such alleged scheme, Waltman and Hoopes solicited bribe payments from the salesman of an outdoor advertising company in exchange for offering their influence to reduce lease payments from the company to Lower Southampton Township.
Moreover, in November 2016, Waltman, Hoopes, and Rafferty allegedly accepted a bribe of $1,000, as well as the promise of other fees, in exchange for Waltman, Hoopes, and Rafferty to use their positions as public officials to “fix” a traffic case before Waltman in Bucks County Magisterial District Court. In January 2017, Hoopes allegedly tried to influence a witness to falsely testify before the federal grand jury regarding the disposition of this $1,000 bribe.
In addition, from June 2015 to November 2016, Waltman, Hoopes, Rafferty, and Biedmeran allegedly conspired to launder funds represented to be proceeds from health care fraud, illegal drug trafficking, and bank fraud. From June 2016 to August 2016, Waltman, Hoopes, Rafferty, and Biederman allegedly laundered $400,000 in cash, represented to be proceeds from health care fraud and illegal drug trafficking, and took money laundering fees totaling $80,000 in cash.
Further, in June 2015, Biederman, who was then a PFCU employee, allegedly solicited and accepted a bribe of $1,600 in exchange for agreeing to influence PFCU’s approval of a loan.
If convicted, Waltman faces a maximum possible sentence of 335 years in prison, three years of supervised release, a $4.75 million fine, and a $1,900 special assessment.
If convicted, Hoopes faces a maximum possible sentence of 315 years in prison, three years of supervised release, a $4.5 million fine, and a $1,800 special assessment.
If convicted, Rafferty faces a maximum possible sentence of 180 years in prison, three years of supervised release, a $2.25 million fine, and a $900 special assessment.
If convicted, Biederman faces a maximum possible sentence of 110 years in prison, five years of supervised release, a $2 million fine, and a $500 special assessment.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Vineet Gauri.
[1] An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Several Philadelphia Men Charged with Distributing Heroin, Fentanyl, Cocaine, and Cocaine BaseRead the Press Release
Lesandro Perez (a/k/a “Toast”) 22; Joshua Brown (a/k/a “Jash”) 22; Hugh Wyatt (a/k/a “Hugh Pace”), 43; Jose Lopez (a/k/a “Los”, “Hos” and “Lil Hos”), 23; Dwayne Cooper (a/k/a “Bookie” and “Boop”) 26; Hasan Jones (a/k/a “Tiny”) 36; and Lavar Smith (a/k/a “Var”), 30, each of Philadelphia, PA were arrested today on charges of distributing heroin, fentanyl, cocaine, and cocaine base (“crack”) announced United States Attorney Louis D. Lappen. Lesandro Perez was also arrested on charges of being a felon in possession of firearms and possessing an unregistered firearm.
The defendants are named in three separate, related indictments filed November 14, 2017. The first indictment charges Lesandro Perez with the above-described firearms offenses. The second indictment charges Lesandro Perez, Joshua Brown, Dwayne Cooper, Hasan Jones, and Lavar Smith with one count each of distribution of more than 28 grams of cocaine base (“crack”) and aiding and abetting the distribution of more than 28 grams of cocaine base.
The third indictment contains nine counts charging Lesandro Perez with one count of distributing heroin and cocaine base, two counts of distributing heroin and fentanyl, one count of distributing cocaine and cocaine base, two counts of distributing heroin, three counts of distributing fentanyl, and aiding and abetting. This same indictment charges Hugh Wyatt with the same three counts of distributing and aiding and abetting the distribution of fentanyl. Jose Lopez is charged with two of these counts of distributing and aiding and abetting the distribution of fentanyl. Joshua Brown is charged with one count of distributing and aiding and abetting the distribution of fentanyl and with one count distribution of and aiding and abetting the distribution of heroin and cocaine base.
“The indictments unsealed today represent another example of our office’s commitment to prosecuting serious drug crime and fighting the opioid epidemic,” said United States Attorney Louis D. Lappen. “The defendants in these cases allegedly distributed fentanyl, heroin, cocaine, and cocaine base in our community – contributing to the cycle of overdoses, deaths, and devastation that destroy the lives of so many of our citizens. We remain focused on prosecuting illegal drug distribution and violent crime to help make our communities safer for everyone.”
“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 who prey upon innocent citizens and lessen the quality of life in our neighborhoods,” said ATF Special Agent in Charge Donald Robinson. “Our neighborhoods deserve to exist without fear and intimidation inflicted by all violent drug gangs. We will continue to work with our partners to impact the violent drug related activity that has wreaked havoc throughout Philadelphia.”
If convicted of the charges in the first indictment, Perez faces a maximum 40 years’ imprisonment, 3 years’ supervised release, a $760,000 fine, and a $400 special assessment.
If convicted of the charges in the second indictment, Perez, Brown, Cooper, Jones, and Smith each face a mandatory minimum 5 years’ imprisonment, a maximum 40 years’ imprisonment, 3 years’ supervised release, a $5 million fine, and a $100 special assessment. Perez’s maximum sentence is in addition to the maximum sentence he faces on the first indictment.
If convicted of the charges in the third indictment, Jose Lopez and Joshua Brown face a maximum 40 years’ imprisonment, 3 years’ supervised release, a $2 million fine, and a $200 special assessment. Brown’s maximum sentence is in addition to the maximum sentence he faces on the second indictment.
If convicted, Hugh Wyatt faces a maximum 60 years’ imprisonment, 3 years’ supervised release, a $3 million fine, and a $300 special assessment.
If convicted of the charges in the third indictment, Lesandro Perez faces a maximum 180 years’ imprisonment, 3 years’ supervised release, a $9 million fine, and a $900 special assessment. These maximum terms are in addition to the maximum terms he faces on the first two indictments.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and is being prosecuted by Assistant United States Attorney Sarah T. Damiani.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced to 10 and ½ Years in Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
Steven Ronald Randall, 25, of Philadelphia, Pennsylvania, was sentenced to 126 months incarceration in federal prison following his conviction on 2 counts of bank fraud and 10 counts of aggravated identity theft, announced Acting United States Attorney Louis D. Lappen.
As part of his guilty plea and in connection with his sentencing, Randall admitted that he used social media service Facebook to solicit persons to provide him with their bank ATM cards and PIN numbers so that he could deposit bad checks into their accounts and withdraw the funds before the banks and other financial institutions realized that the checks were bad. Randall admitted that he recruited approximately 30 people in this manner, that he went to numerous ATM machines in Philadelphia and the surrounding area to make the deposits and withdrawals, and also that he used the ATM cards and PIN numbers at various stores, including Walmart, CVS, RiteAid, Wawa, 7-Eleven, Pathmark, and Giant, to purchase goods and obtain cash back prior to the banks discovering that the checks were bad.
In addition to the prison sentence, U.S. District Judge Joseph F. Leeson, Jr. ordered Randall to pay $51,567 restitution to Citizens Bank and $799 restitution to TD Bank.
The case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney Michael S. Lowe.
Philadelphia Duo Charged with Firearms OffensesRead the Press Release
Darrell Wylie, 25, and Namir White, 27, of Philadelphia, Pennsylvania, were charged today by Indictment with interference with interstate commerce by means of robbery, brandishing a firearm during and in relation to a crime of violence, and theft of government funds, announced United States Attorney Louis D. Lappen. Wylie was further charged in the Indictment with unlawfully possessing a firearm, having previously been convicted of a felony.
The Indictment alleges that the offenses were committed in Philadelphia on or about November 2, 2017, when Wylie and White committed the armed robbery of a person working on behalf of federal investigators, after having offered to sell three firearms to the person.
If convicted as charged, Wylie and White each face a maximum possible sentence of life imprisonment, as well as a minimum term of imprisonment of seven years, and supervised release for a maximum of five years. Wylie further faces a maximum fine of $1,000,000 and $400 in special assessments, while White faces a maximum fine of $750,000 and $300 in special assessments.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorneys Joseph A. LaBar and Seth Schlessinger.
Doctor and Receptionist Charged with Running Center City Pill MillRead the Press Release
Martin D. Weaver, M.D, 63, of Sickerville, New Jersey, and Erica LaBoy, 31, of Philadelphia, were charged today by Indictment, unsealed today, with conspiracy to distribute controlled substances outside the scope of professional practice; and Weaver was also charged with 29 counts of distributing controlled substances outside the scope of professional practice, announced Acting United States Attorney Louis D. Lappen.
According to the Indictment,[1] from at least December 2016 through October 2017, Weaver, with the assistance of La Boy, operated medical offices in Center City Philadelphia as a front for drug-dealing. The defendants sold prescriptions for oxycodone, a dangerous and addictive Schedule II controlled substance, to so-called patients, for $300 cash for the first prescription and $200 cash thereafter. Weaver did not examine the patients and often handed out prescriptions for oxycodone from the receptionist desk without providing any medical care.
If convicted, the defendants face significant terms of incarceration, as well as up to a lifetime of supervised release, and substantial fines and special assessments.
The case was investigated by the FBI, and is being prosecuted by Assistant United States Attorneys Amanda R. Reinitz and M. Beth Leahy.
[1] An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Men Found Guilty of Racketeering Conspiracy in Payday Lending CaseRead the Press Release
PHILADELPHIA – Charles M. Hallinan, 76, of Villanova, PA, and Wheeler K. Neff, 69, of Wilmington, DE, were found guilty today by a federal jury of two counts of conspiracy to violate the Racketeering Influenced and Corrupt Organizations Act (“RICO”) relating to “payday lending” businesses, one count of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as two counts of mail fraud and three counts of wire fraud announced United States Attorney Louis D. Lappen. Hallinan was also convicted of nine counts of international money laundering.
Hallinan and Neff participated in a conspiracy that violated the usury laws of Pennsylvania and other states and generated more than $688 million in revenue, between 2008 and 2013, from hundreds of thousands of customers, including residents of Pennsylvania which prohibits such loans. Further, Hallinan and Neff also conspired to defraud nearly 1,400 people, who had sued one of Hallinan’s payday loan companies, into abandoning a lawsuit with damages valued as highly as $10 million.
Hallinan owned, operated, financed, and/or worked for more than a dozen businesses between 1997 and 2013 that issued and collected debt from small, short-term loans that were commonly known as “payday loans” because the customers were supposed to pay them back with their next paychecks. Pennsylvania and more than a dozen other states have passed laws criminalizing such loans as usurious. Hallinan and Neff conspired to evade such laws by, among other things, paying thousands of dollars each month to three Indian tribes to pretend that they were the actual payday lenders and claim that “tribal sovereign immunity” shielded their conduct from state laws and regulations.
Hallinan and Neff are also helped another payday lender, Adrian Rubin, charged elsewhere, evade state anti-usury laws by entering into sham contracts with an Indian tribe that were designed to give the false impression that the tribe was the true lender.
“Pay day lending exploits those who can least afford it, the most financially vulnerable people in our society,” said United States Attorney Louis D. Lappen. “Hallinan’s companies charged customers exorbitant interest rates -- exceeding 700 percent annually. Today’s conviction shows that we will prosecute predatory payday lenders and pursue significant prison sentences for those who financially exploit the economically disadvantaged.”
“These defendants went to astonishing lengths to skirt state usury laws enacted to protect the public,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Their single-minded purpose: to continue draining dry the financially strapped folks who, out of desperation, resort to payday loans. Their greed is galling, their actions are illegal, and their convictions are richly deserved.”
"The role of IRS Criminal Investigation becomes even more important in fraud cases due to the complex financial transactions that can take time to unravel," said Edward Wirth, Acting Special Agent in Charge, Philadelphia Field Office. "Today’s verdict should serve as a reminder that individuals who engage in this type of financial fraud will be held accountable."
Both Hallinan and Neff face a possible advisory sentencing guideline range of at least a decade in prison, forfeiture of illegally obtained assets, three years of supervised release, a possible fine, and a special assessment.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and James Petkun.
Two Men Found Guilty of Racketeering Conspiracy in Payday Lending CaseRead the Press Release
PHILADELPHIA – Charles M. Hallinan, 76, of Villanova, PA, and Wheeler K. Neff, 69, of Wilmington, DE, were found guilty today by a federal jury of two counts of conspiracy to violate the Racketeering Influenced and Corrupt Organizations Act (“RICO”) relating to “payday lending” businesses, one count of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as two counts of mail fraud and three counts of wire fraud announced United States Attorney Louis D. Lappen. Hallinan was also convicted of nine counts of international money laundering.
Hallinan and Neff participated in a conspiracy that violated the usury laws of Pennsylvania and other states and generated more than $688 million in revenue, between 2008 and 2013, from hundreds of thousands of customers, including residents of Pennsylvania which prohibits such loans. Further, Hallinan and Neff also conspired to defraud nearly 1,400 people, who had sued one of Hallinan’s payday loan companies, into abandoning a lawsuit with damages valued as highly as $10 million.
Hallinan owned, operated, financed, and/or worked for more than a dozen businesses between 1997 and 2013 that issued and collected debt from small, short-term loans that were commonly known as “payday loans” because the customers were supposed to pay them back with their next paychecks. Pennsylvania and more than a dozen other states have passed laws criminalizing such loans as usurious. Hallinan and Neff conspired to evade such laws by, among other things, paying thousands of dollars each month to three Indian tribes to pretend that they were the actual payday lenders and claim that “tribal sovereign immunity” shielded their conduct from state laws and regulations.
Hallinan and Neff are also helped another payday lender, Adrian Rubin, charged elsewhere, evade state anti-usury laws by entering into sham contracts with an Indian tribe that were designed to give the false impression that the tribe was the true lender.
“Pay day lending exploits those who can least afford it, the most financially vulnerable people in our society,” said United States Attorney Louis D. Lappen. “Hallinan’s companies charged customers exorbitant interest rates -- exceeding 700 percent annually. Today’s conviction shows that we will prosecute predatory payday lenders and pursue significant prison sentences for those who financially exploit the economically disadvantaged.”
“These defendants went to astonishing lengths to skirt state usury laws enacted to protect the public,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Their single-minded purpose: to continue draining dry the financially strapped folks who, out of desperation, resort to payday loans. Their greed is galling, their actions are illegal, and their convictions are richly deserved.”
"The role of IRS Criminal Investigation becomes even more important in fraud cases due to the complex financial transactions that can take time to unravel," said Edward Wirth, Acting Special Agent in Charge, Philadelphia Field Office. "Today’s verdict should serve as a reminder that individuals who engage in this type of financial fraud will be held accountable."
Both Hallinan and Neff face a possible advisory sentencing guideline range of at least a decade in prison, forfeiture of illegally obtained assets, three years of supervised release, a possible fine, and a special assessment.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and James Petkun.
Easton Man Charged with Receipt and Possession of Child PornographyRead the Press Release
Joseph Marcus, 51, of Easton, Pennsylvania was charged today by Indictment with the receipt and possession of child pornography, announced United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of one hundred years imprisonment, a mandatory minimum fifteen years imprisonment, a mandatory minimum five years supervised release up to lifetime supervised release, a $750,000 fine, a $300 special assessment, and an additional $15,000 special assessment.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Inmate Sentenced to 200 Months in House Theft SchemeRead the Press Release
PHILADELPHIA – Kenneth Hampton, 56, an inmate of a federal prison, was sentenced today to 200 Months, for masterminding a scheme under which he and his coconspirators defrauded the City of Philadelphia, the State of Pennsylvania, and innocent owners and purchasers of Philadelphia real estate. Hampton had been found guilty of one count of conspiracy, eleven counts of wire fraud, and two counts of aggravated identity theft by a federal jury in June.
During the time he was a federal inmate, Hampton led a scheme to file false and fraudulent deeds for residential properties in Philadelphia. Using the prison telephones Hampton would direct other members of the scheme to locate houses, prepare and file false deeds, reside in the properties, and then eventually sell the properties for a profit.
“The defendant in this case is a recidivist criminal who had the audacity, while he was in prison, to steal homes from innocent victims. Real estate frauds such as this have a devastating impact on each victim whose most valuable asset generally is his home,” said United States Attorney Louis L. Lappen. “Today’s sentence of more than 16 years in prison sends the message that our justice system will not tolerate this type of financial fraud, and those who commit these crimes will be punished severely.”
The case was investigated by the United States Secret Service, Department of Homeland Security - Office of the Inspector General, Federal Bureau of Investigation and the Office of the Inspector General, City of Philadelphia. The case was prosecuted by Assistant United States Attorneys Paul G. Shapiro and Lesley S. Bonney.
Southampton Man Charged with Illegal Re-entry After DeportationRead the Press Release
Rogelio Bernal-Pastrana, of Southampton, 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 March 10, 2017, Bernal-Pastrana, 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 December 17, 2010 and November 17, 2016.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Elizabethtown Man Charged with Illegal Re-entry After DeportationRead the Press Release
Raul Francisco Torres-Perez, of Elizabethtown, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about October 13, 2017, Torres-Perez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about October 1, 2011 and January 10, 2012.
If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wayne Man Sentenced to 25 Years for the Sexual Abuse of a Minor and Child PornographyRead the Press Release
On November 14, 2017, the defendant, Joseph P. Totoro, II, 51 of Wayne, PA was sentenced to a term of 25 years of incarceration, 10 years of supervised release, and a $725 special assessment for the sexual abuse of a child over a two year time period. The defendant was convicted in August 2017 of attempted production of child pornography, enticement of a minor, receipt of child pornography, possession of child pornography, transfer of obscene matter to a minor, and blackmail.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Priya T. De Souza.
Texas Man Charged in Fraud SchemeRead the Press Release
Michael Glenn Barnes, 36 years old, of Gun Barrel City, Texas, was charged by an indictment unsealed today with aggravated identity theft, wire fraud and mail fraud charges, announced United States Attorney Louis D. Lappen. The indictment alleges that, from May 2015 through September 2017, Barnes sought to defraud manufacturers of commercial goods by falsely representing that he was various prominent musicians and professional athletes, and requesting free merchandise, which he claimed would provide promotion and publicity for the manufacturers. The indictment further alleges that, as part of this scheme, Barnes targeted at least 36 companies, in 11 states, including Pennsylvania, and four foreign countries.
If convicted of the charges, the defendant faces a maximum sentence of 800 years imprisonment, including a mandatory sentence of two years imprisonment, 3 years supervised release, a $10,250 fine, and a $4,100 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency, Philadelphia Division, and the Gun Barrel City Police Department (Texas), and is being prosecuted by Assistant United States Attorney John Gallagher.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Pennsylvania Man Sentenced to Prison for Identity Theft and Conspiring to File Fraudulent Tax Refund ClaimsRead the Press Release
A Philadelphia, Pennsylvania, man was sentenced to 22 months in prison today for identity theft and conspiring to file fraudulent tax refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Interim U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to documents and information provided to the court, Steeve Zamor, 28, conspired with others to use stolen IDs to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds. Zamor also recruited other individuals to join the scheme. Although he did not have a tax preparation business, Zamor opened up a bank account in the name of “Steeve Zamor Tax Services” to facilitate the crime. Zamor and his co-conspirators directed the IRS to deposit some of the fraudulently obtained refunds into this bank account. Zamor withdrew money from the account to provide to other co-conspirators, and he kept a substantial portion of the illegal proceeds for his own use. He admitted to causing a tax loss of $366,135.53.
In addition to the term of prison imposed, U.S. District Judge John R. Padova of the Eastern District of Pennsylvania ordered Zamor to serve three years of supervised release and to pay $366,135.53 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Interim U.S. Attorney Lappen thanked special agents of IRS Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Eric B. Powers of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Pennsylvania Man Sentenced to Prison for Identity Theft and Conspiring to File Fraudulent Tax Refund ClaimsRead the Press Release
PHILADELPHIA – A Philadelphia, Pennsylvania, man was sentenced to 22 months in prison today for identity theft and conspiring to file fraudulent tax refund claims, announced Interim U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents and information provided to the court, Steeve Zamor, 28, conspired with others to use stolen IDs to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds. Zamor also recruited other individuals to join the scheme. Although he did not have a tax preparation business, Zamor opened up a bank account in the name of “Steeve Zamor Tax Services” to facilitate the crime. Zamor and his co-conspirators directed the IRS to deposit some of the fraudulently obtained refunds into this bank account. Zamor withdrew money from the account to provide to other co-conspirators, and he kept a substantial portion of the illegal proceeds for his own use. He admitted to causing a tax loss of $366,135.53.
In addition to the term of prison imposed, U.S. District Judge John R. Padova of the Eastern District of Pennsylvania ordered Zamor to serve three years of supervised release and to pay $366,135.53 in restitution to the IRS.
Interim U.S. Attorney Lappen and Acting Deputy Assistant Attorney General Goldberg and thanked special agents of IRS Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Eric B. Powers of the Tax Division, who prosecuted the case.
Philadelphia Man Charged with Aggravated Identity Theft.Read the Press Release
Terrence Williams, 31 of Philadelphia, PA, was charged today by Indictment with Aggravated Identity Theft and thirteen counts of Bank Fraud, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that between February and June 2017, Mr. Williams repeatedly stole and altered checks and deposited or attempted to deposit those altered checks into various bank accounts. The indictment additionally alleges that, in the course of perpetuating his bank fraud scheme, Mr. Williams possessed without permission the name and bank account numbers of a victim.
If convicted the defendant faces a potentially significant sentence of incarceration, including a mandatory minimum sentence of two years for the commission of Aggravated Identity Theft.
The case was investigated by the United States Department of State and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Christopher J. Mannion.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Man Sentenced to Prison for Using Stolen IDS to Seek Fraudulent Tax RefundsRead the Press Release
A New Jersey man was sentenced to three months in prison for conspiring to defraud the United States and to aiding and abetting the filing of false claims for tax refunds, announced Acting U.S. Attorney Louis D. Lappen
According to documents filed with the court, Peterson Blanc, 36, engaged in a scheme to fraudulently obtain income tax refunds through the filing of false tax returns using stolen personal identifying information. At least one of Blanc’s co-conspirators electronically filed the returns, which directed that the fraudulently claimed refunds be deposited into bank accounts at TD Bank and Citizens Bank in the name of Peterson Tax Services. Blanc did not have a tax preparation or bookkeeping service, but had opened up the accounts in order to facilitate the crime. He admitted to causing a loss of more than $100,000.
In addition to the term of prison imposed, U.S. District Judge John R. Padova ordered Estelly to serve three years of supervised release and to pay $100,049.10 in restitution to the Internal Revenue Service (IRS).
The case was investigated by Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations and is being prosecuted by Assistant United States Attorney David J. Ignall
Guatemalan National Charged with Illegal Re-entry After DeportationRead the Press Release
Domingo Ajanel-Box, a/k/a “Diego Hernandez-Perez,” of Guatemala, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about May 25, 2017, Ajanel-Box, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about April 12, 2000, June 9, 2000, March 14, 2002, September 16, 2004, August 27, 2005, and December 28, 2011.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Denise S. Wolf.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bucks County Man Sentenced to 18 Months in Federal Prison for Filing False Tax Returns and Structuring Cash Deposits of Marijuana Sales ProceedsRead the Press Release
Bradley Mark Cohen, 61, of Ottsville, PA, with sentenced today to 18 months in prison, following his July 12, 2017 plea of guilty to four counts of filing false tax returns and three counts of structuring cash deposits to avoid a reporting requirement, announced Acting United States Attorney Louis D. Lappen. Cohen was also ordered to pay restitution of over $84,000 in back taxes to the IRS.
In connection with his guilty plea, Cohen admitted that between 2010 and 2014, he failed to report over $950,000 on his tax returns that he earned from his companies, Green Revolution, Inc. and Plug-In Manufacturing, which were involved in the business of selling “green” energy products, such as capacitors, to commercial and residential customers. Cohen admitted that instead of declaring this money as income, he used it to pay the majority of his personal living expenses, including his home mortgage, personal credit cards, golf club membership, and home improvements, and falsely treated these payments as business expenses that he falsely deducted from his income.
Cohen also admitted that between January 1, 2014, and September 18, 2015, he received cash from the illegal sale of marijuana that he had shipped to him from California, and that structured the deposit of over $143,000 of marijuana proceeds into his bank accounts in amounts less than $10,000 each deposit, in order to evade the banks’ currency transaction reporting requirements, of which Cohen was aware.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Easton, PA Man Charged with False Statements to Federal Firearms LicenseesRead the Press Release
Nico Trevorsaya Braden, 28, of Easton, PA, was charged today by indictment with three counts of making false statements to federal firearms licensees announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about various dated between April 16, 2016 and May 5, 2016, Jonathan William Vazquez purchased seven 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 15 years’ imprisonment. He also faces a maximum period of supervised release of 3 years, a $750,000 fine, a $300 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 Sarah T. Damiani.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delaware County Man Sentenced to 10 Years for Running Tax Fraud SchemeRead the Press Release
Acting United States Attorney Louis D. Lappen today announced that yesterday, November 6, 2017, United States District Court Judge Harvey Bartle, III, sentenced Mohamed Mansaray, 41, of Springfield, Pennsylvania, to 120 months’ imprisonment for conspiring to defraud the Internal Revenue Service, aiding and abetting the preparation of false federal income tax returns, wire fraud, and aggravated identity theft. Mansaray, a former social worker, was the owner of Medman’s Financial Services, a tax preparation service with offices in Philadelphia. Medman’s filed numerous false federal income tax returns which generated fraudulent tax refunds, some as large as $9,000. The defendant and his co–conspirators, other tax preparers at Medman’s, obtained stolen personal identity information of foster children and used that information as fraudulent dependents on numerous income tax returns prepared for Philadelphia clients. The stolen identities were purchased from Gebah Kamara, a former Catholic Social Services employee, who was sentenced to a 30-month prison term last week by Judge Bartle. Kamara was paid approximately $200 to $300 for each child’s identity that was included on an income tax return accepted by the IRS for processing. Mansaray charged clients a fee of as much as $800 for fraudulently including a false dependent on an income tax return. Over 300 foster children’s identities were stolen and misused during the scheme.
Mansaray was first charged with conspiring to defraud the Internal Revenue Service and aiding and abetting the preparation of false federal income tax returns in May 2013. Mansaray pled guilty to those charges in July 2014. Additional investigation showed that after he pled guilty Mansaray continued to prepare fraudulent income tax returns for clients. Mansaray’s bail was revoked and he was imprisoned in May 2016, after he was charged again in April 2016 with numerous additional counts of aiding and abetting the preparation of false federal income tax returns, wire fraud, and aggravated identity theft. Mansaray pled guilty to those charges in March 2017.
Mansaray was ordered to pay $5,277.041 restitution for the loss to the Internal Revenue Service on the false income tax returns he prepared. This case was investigated by the Internal Revenue Service, Criminal Investigation Division, the City of Philadelphia Office of the Inspector General, and the Social Security Administration OIG- Office of Investigations, and was prosecuted by Assistant United States Attorney Paul L. Gray and former Assistant United States Attorney Karen M. Klotz.
Allentown Physican Sentenced to Prison for Failure to File Federal Income Tax ReturnsRead the Press Release
PHILADELPHIA – Harry W. “Buck” Buchanan, 63, of Allentown, PA, was sentenced yesterday for willfully failing to file tax returns, announced Acting United States Attorney Louis D. Lappen. Buchanan, who operated Harry Buchanan IV MD PC, failed to file federal tax returns in 2009 and 2010, even though his income substantially exceeded the minimum amount establishing the requirement to file. He was sentenced to a term of 6 months confinement, with a year of supervised release to follow.
Buchanan is an ophthalmologist practicing in the Allentown area. In April of 2017, he pled guilty to two counts of willful failure to file tax returns, admitting that he had failed to file tax returns or pay taxes for the years 2009 and 2010, despite knowing of his obligations. In his plea agreement, he acknowledged that he owed federal income taxes, for those two years that totaled $194,643.
This case was investigated by the IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney Bea Witzleben.
Philadelphia Parking Authority to Address ADA Compliance in Three Parking GaragesRead the Press Release
PHILADELPHIA – The Philadelphia Parking Authority has voluntarily addressed accessibility issues with parking at three of its Philadelphia garages in collaboration with the U.S. Attorney’s Office.
The Americans with Disabilities Act and its accompanying regulations require certain properties, including parking facilities, to have accessibility features. The U.S. Attorney’s Office conducted a review of several Philadelphia Parking Authority garages and identified concerns regarding accessibility at the Autopark at Independence Mall at 5th and Market Streets, the Autopark at Olde City at 2nd and Sansom Streets, and the Philadelphia Gateway Parking Garage at 1540 Vine Street. Once it became aware of the concerns, the Philadelphia Parking Authority cooperated with the U.S. Attorney’s Office to identify the issues, develop a plan to address them, and remediate promptly.
“Enforcing the Americans with Disabilities Act is an important priority of this office,” said Acting United States Attorney Louis D. Lappen. “Ensuring public access to parking facilities so that visitors to Center City can enjoy Philadelphia is a benefit to us all. We were pleased that the PPA agreed with these priorities, and our mutual goal of ensuring access for all was accomplished.”
The U.S. Attorney’s Office for the Eastern District of Pennsylvania is committed to investigating alleged violations of the Americans with Disabilities Act. Those interested in learning more about architectural barriers to access under the Americans with Disabilities Act may access www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm.
The case was handled by Assistant U.S. Attorneys Paul W. Kaufman and Anthony D. Scicchitano in conjunction with the Department of Justice’s Civil Rights Division.
Lancaster Man Charged with Production of Child PornographyRead the Press Release
Orlando Rivera, 29, of Lancaster, Pennsylvania, was charged by Indictment with enticing a minor to engage in sexually explicit conduct, production of child pornography, and transfer of obscene material to a minor, announced Acting United States Attorney Louis D. Lappen.
These charges carry a 15 year mandatory minimum term of imprisonment, and a maximum penalty of life imprisonment.
The case was investigated by the Lancaster Police Department, the Federal Bureau of Investigation and the Capital City Crimes Against Children Task Force. It is being prosecuted by Assistant United States Attorney Denise S. Wolf of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
West Chester Man Sentenced to 30 Months for Defrauding IRSRead the Press Release
Today, United States District Court Judge Harvey Bartle, III sentenced Gebah Kamara, 50, of West Chester, Pennsylvania, to 30 months’ imprisonment for conspiring to defraud the Internal Revenue Service, aiding and abetting the preparation of false federal income tax returns, wire fraud, and aggravated identity theft. The charges arose from the defendant’s participation in a conspiracy to defraud the Internal Revenue Service (“IRS”) by filing false federal income tax returns, which generated large fraudulent refunds. The defendant, a former social worker, stole the personal identity information of foster children from his employer, and sold that information to tax preparers in Philadelphia to use as fraudulent dependents on income tax returns, announced Acting United States Attorney Louis D. Lappen. The defendant pled guilty to the charges on December 3, 2014.
From 2007 through approximately October 2011, defendant Gebah Kamara was employed as a social worker with Catholic Social Services in Philadelphia. During the course of his employment, the defendant had access to the names, dates of birth, and Social Security numbers of foster children and members of the children’s foster families. Beginning In or about 2008, the defendant sold the personal identity information of children for use as false dependents on income tax returns to his codefendants, who operated Medmans Financial Services, a tax preparation business.
Kamara’s codefendants used the children’s personal identity information to create fraudulent dependents on income tax returns, which they prepared for clients and filed with the IRS. By including the false dependents on tax returns, the tax preparers falsely claimed on behalf of their clients a tax exemption for each dependent, and the child tax credit, and often claimed a tax credit for child, dependent care expenses, and the earned income tax credit. These false items generated large fraudulent tax refunds, some in excess of $9,000 per return.
The tax preparers charged clients an additional fee of as much as $800 for fraudulently including a dependent on an income tax return. The defendant was paid approximately $200 to $300 for each child’s identity that was included on an income tax return that was accepted by the IRS for processing.
In addition to providing personal identity information of children to his codefendants to use as false dependents, the defendant also gave them a template that could be used to generate false letters for clients in case of an IRS audit.
For the tax years 2007 through 2010, 283 false tax returns were filed, using 321 foster children's identities that had been provided by Kamara, causing a tax loss of approximately $1,191,093.72.
This case was investigated by the Internal Revenue Service, Criminal Investigation Division, the City of Philadelphia Office of the Inspector General, and the Social Security Administration OIG- Office of Investigations, and was prosecuted by Assistant United States Attorney Frank Costello.
New Jersey Woman Pleaded Guilty to Wire FraudRead the Press Release
Tracey Moses, 48, of Sicklerville, New Jersey entered guilty pleas today to all counts of a ten-count indictment charging her with wire fraud, announced Acting United States Attorney Louis D. Lappen. At the guilty plea hearing, before the Honorable C. Darnell Jones II, defendant Moses admitted that from August 2010 until early December 2013, when she was fired for suspected embezzlement, she worked as an accounting and payroll administrator for a market planning and research firm in Philadelphia, M. Davis & Company. The defendant admitted further that from April 2011 until late October 2013, she schemed to defraud her employer by writing herself unauthorized electronic checks drawn on three of the company’s bank accounts, in the total amount of approximately $117,000. Defendant Moses admitted further that in a separate scheme, she also defrauded the Commonwealth of Pennsylvania Department of Labor by applying for and obtaining unemployment benefits while she was actually working for M. Davis & Company and her next two employers, two temporary agencies.
The district court scheduled sentencing for February 14, 2018. Defendant Moses faces a substantial prison term, restitution to the two victims of approximately $131,000, and a fine. She is also subject to criminal forfeiture proceedings.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Labor - Office of the Inspector General, with assistance from the Pennsylvania Department of Labor and Industry Internal Audit Division, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.
California Woman Charged with Defrauding the United StatesRead the Press Release
Mary Craig Williams, 71, of Fresno, California was charged today by Indictment with major fraud against the United States announced Acting United States Attorney Louis D. Lappen. According to the charges, Williams requested payments under a government contract for costs that Williams’s company had not actually incurred.
If convicted the defendant faces a maximum possible sentence of 10 years’ imprisonment, a 3 year period of supervised release, a $5,000,000 fine, and a $100 special assessment.
The case was investigated by the Department of Veterans Affairs--Office of the Inspector General and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Shillington, PA Man Receives 42 Months Prison for Mail FraudRead the Press Release
Mark Vega, 35, of Shillington, Pennsylvania was sentenced today to 42 months in prison for Mail Fraud, submitting false claims to the United States, and Aggravated Identity Theft, announced Acting United States Attorney Louis D. Lappen. According to the indictment, Vega obtained stolen identities and used the names, dates of birth, and social security numbers of these victims to apply for credit cards. According to the indictment, Vega also had himself added as an authorized user on these credit card accounts. Vega also used stolen identities to file false tax returns claiming refunds in the names of those stolen identities.
In addition to the term of imprisonment, United States District Judge Edward G. Smith sentenced Vega to three years of supervised release and ordered him to pay $162,261.13 in restitution.
The case was investigated by the Internal Revenue Service-Criminal Investigation Division, the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Cumru Township Police Department and is being prosecuted by Assistant United States Attorney David J. Ignall
New York Man Charged with Attempted Sex TraffickingRead the Press Release
Malik Palin, a/k/a “Gambino,” 26, of New York, New York, was charged today by Indictment with attempted sex trafficking of a minor, announced Acting United States Attorney Louis D. Lappen.
If convicted, the defendant faces a mandatory minimum sentence of 10 years in prison, 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.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michelle Morgan.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.