Eastern District of Pennsylvania

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.

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.

 

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.

 

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 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.

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.

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

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.

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.

 

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.

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.

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.

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. 

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.

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.

 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.

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.

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.

 

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.

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.

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.

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.

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.

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.

 

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

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.

 

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.

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.

 

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.

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 – 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.

 

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.

 

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.

 

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.

 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.

 

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

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.

A federal grand jury sitting in the Eastern District of Pennsylvania returned an indictment today charging two Philadelphia-area political consultants with a scheme to use a political candidate’s campaign funds to make illegal contributions to his opponent’s campaign to secure the opponent’s agreement to drop out of a 2012 congressional primary race. 

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania made the announcement.

 

According to the indictment, Donald “D.A.” Jones, 62, of Willingboro, New Jersey, and Kenneth Smukler, 57, of Villanova, Pennsylvania, were charged with conspiracy, causing unlawful campaign contributions and causing the filing of false reports to the Federal Election Commission (FEC), and Jones was charged with making false statements to the FBI, in connection with a falsification scheme involving unlawful contributions to the campaign of former Municipal Court Judge Jimmie Moore, a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives in the 2012 Democratic race for Pennsylvania’s First Congressional District.  According to the indictment, those payments came from the campaign committee of Moore’s opponent for the purpose of removing Moore from the race.  Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2.

 

As alleged in the indictment, in or about February 2012, Moore withdrew from the primary election pursuant to an agreement with his opponent, who promised $90,000 in campaign funds to be used to repay Moore’s campaign debts.  Under the applicable law, a contribution from one authorized campaign to another could not exceed $2,000 for the primary election.  Therefore, the $90,000 payment from Moore’s opponent’s campaign to pay Moore’s campaign debts constituted an unlawful campaign contribution. 

 

According to the indictment, the FEC requires campaigns to file periodic reports itemizing the campaign’s contributions and expenditures during the reporting period.  However, in order to conceal the unlawful contribution and its source, Moore instructed his campaign manager, Carolyn Cavaness, to create a company whose sole purpose would be to receive the funds from his opponent’s political campaign and repay Moore’s campaign debts.  As described in the indictment, those payments were routed through Voter Link Data Systems (Voter Link) and D. Jones & Associates, political consulting companies run by Smukler and Jones.

 

According to the indictment, the defendants used false invoices to generate a paper trail intended to justify the payments from Moore’s opponent’s campaign committee, and Cavaness, acting at Moore’s direction, used a portion of the money from the opponent’s campaign committee to repay Moore’s campaign debts, including debts to Moore and Cavaness themselves.  Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25.

 

According to the indictment, to further conceal the scheme, the defendants willfully caused Moore’s campaign committee to file false reports with the FEC that did not disclose or reference the funds received from his opponent’s campaign committee; did not mention Voter Link or D. Jones & Associates, the companies through which the payments were routed; and falsely listed the same debts owed by Moore’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds from Moore’s opponent’s campaign committee.  Likewise, the defendants willfully caused the opponent’s campaign committee to file false reports with the FEC that did not mention the use of campaign funds to repay Moore’s campaign debts.  Finally, the indictment alleges that Jones made material false statements to FBI agents investigating this matter, telling them that Cavaness had performed work in exchange for the opponent’s campaign funds that were routed through D. Jones & Associates, when in fact Cavaness never performed any such work.

 

An indictment is not a finding of guilt.  It merely alleges that crimes have been committed.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt.

 

The FBI conducted the investigation, and Assistant U.S. Attorney Eric Gibson Eric Gibson of the Eastern District of Pennsylvania and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section are prosecuting the case.

Philadelphia – A federal grand jury returned an indictment today charging two Philadelphia-area political consultants with conspiracy, causing unlawful campaign contributions, causing the filing of false reports to the Federal Election Commission, causing false statements to the Federal Election Commission and making false statements to the FBI. 

 

Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.

 

According to the indictment, Donald Jones, 62, and Kenneth Smukler, 57, caused unlawful campaign contributions and engaged in a falsification scheme involving those contributions to the campaign of a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives.  According to the indictment, those payments came from the campaign committee of a candidate for the purpose of removing that candidate’s opponent, former Municipal Court Judge Jimmie Moore, from the 2012 Democratic race for Pennsylvania’s First Congressional District.  Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2.

 

As alleged in the indictment, in or about February 2012, Moore withdrew from the primary election pursuant to an agreement with his opponent, who promised $90,000 in campaign funds to be used to repay Moore’s campaign debts.  Under the applicable law, a contribution from one authorized campaign to another could not exceed $2,000 for the primary election.  Therefore, a $90,000 payment from Moore’s opponent’s campaign to pay Moore’s campaign debts would constitute an unlawful campaign contribution.  Moreover, because the FEC requires campaigns to file periodic reports itemizing the campaign’s contributions and expenditures during the reporting period, that unlawful campaign contribution should appear on the FEC reports filed by both campaigns.

 

According to the indictment, in order to conceal the unlawful contribution, as well as the fact that his opponent’s campaign committee paid his campaign debts, Moore instructed his campaign manager, Carolyn Cavaness, to create a company whose sole purpose would be to receive the funds from his opponent’s political campaign and repay Moore’s campaign debts.  As described in the indictment, those payments were routed through Voter Link Data Systems and D. Jones & Associates, political consulting companies run by Smukler and Jones.  According to the indictment, the defendants used false invoices to generate a paper trail intended to justify the payments from Moore’s opponent’s campaign committee.  Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25.

 

According to the indictment, Cavaness, acting at Moore’s direction, used a portion of the money from the opponent’s campaign committee to repay Moore’s campaign debts, including debts to Moore and Cavaness themselves.  According to the indictment, by causing Moore’s opponent’s campaign to make these payments, the defendants willfully caused the opponent’s campaign to make unlawful campaign contributions. 

 

In addition, true and accurate information about the payments was never disclosed to the FEC.  Instead, according to the indictment, the defendants willfully caused Moore’s campaign committee to file false reports with the FEC that did not disclose or reference the funds received from his opponent’s campaign committee, did not mention the companies of the political consultants through which the payments were routed, Voter Link and D. Jones & Associates, and falsely listed the same debts owed by Moore’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds from Moore’s opponent’s campaign committee.  According to the indictment, the defendants also willfully caused the opponent’s campaign committee to file false reports with the FEC that did not mention the use of campaign funds to repay Moore’s campaign debts.  Finally, the indictment alleges that Jones made material false statements to FBI agents investigating this matter, telling them that Cavaness had performed work in exchange for the opponent’s campaign funds that were routed through D. Jones & Associates, when in fact Cavaness never performed any such work.

 

An indictment is not a finding of guilt.  It merely alleges that crimes have been committed.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt.

 

Acting U.S. Attorney Lappen and Acting Assistant Attorney General Blanco commended special agents of the FBI, who conducted the investigation, and Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section, who are prosecuting the case.

PHILADELPHIA – An indictment, unsealed today, charges Jason C. Weigand, 47, of Denver, PA, in a scheme to defraud clients of his financial advising businesses, Nations First Financial Group (“Nations First”) and First Financial Princeton LLC (“First Princeton”), announced Acting United States Attorney Louis D. Lappen.  Weigand is charged with (i) three counts of bank fraud; (ii) four counts of wire fraud; (iii) two counts of mail fraud; (iv) three counts of aggravated identity theft; (v) four counts of accessing a protected computer without authorization; and (vi) four counts of money laundering.  According to the indictment, as a result of the alleged scheme, Weigand’s clients lost more than $290,000.

 

According to the indictment, Weigand was a registered investment advisor in Pennsylvania between 2009 and 2014 and in New Jersey between 2011 and 2014.  During this period, Weigand held himself to clients as a knowledgeable and reputable source of investment advice, recommending investments in both securities and insurance products.  However, notwithstanding his obligation to act primarily for the benefit of his clients and to observe high standards of commercial honor, the indictment alleges that he diverted the funds of his clients, using it for personal, business, and other purposes unrelated to the investment objective of those clients. 

 

According to the indictment, AR met Weigand when he became the homeowners’ insurance agent for AR and her husband.  In April, 2005, Weigand attended AR’s husband’s funeral and, around that time, suggested that he become AR’s investment advisor.  Feeling vulnerable, AR agreed. She directed Weigand to keep her money safe for retirement and not to invest it in any high risk assets.  Instead, however, Weigand used $60,000 of AR’s money to fund accounts in the name of another client and then Weigand withdrew that money for his own personal and business purposes.  Further, according to the indictment, Weigand used forged documents to open a different account in AR’s name at a brokerage, and induced AR to fund that account with almost $200,000 of her own funds.  Unbeknownst to AR, that account had check writing privileges, which Weigand used to write checks of at least $98,000 for his own benefit. 

 

Later, according to the indictment, AR started to become suspicious of Weigand’s management of her funds.  In an effort to cover up his own misconduct, the indictment alleges that Weigand hacked into AR’s email, used forged documents to open an account in AR’s name at another brokerage, and funded that account with money stolen from other clients.  Weigand then impersonated that client in telephone calls and emails with that brokerage. 

 

If convicted, Weigand faces a maximum statutory sentence of more than 20 years in prison, possible fines, a minimum sentence of 2 years, and up to three years of supervised release. Weigand would be required to pay a $2,000 special assessment.  A notice of forfeiture for $290,000 is also attached.

 

The case was investigated by the United States Postal Inspection Service, the Pennsylvania Department of Banking and Securities, and the Pennsylvania Insurance Department, Enforcement Division and is being prosecuted by Assistant United States Attorney Paul Shapiro.

                                                                             

An Indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty.

Acting United States Attorney Louis D. Lappen announced today the indictment of thirteen individuals on charges including murder, drug trafficking, and unlawful possession and use of firearms.

 

For several years two drug distribution groups operated within the Mill Creek neighborhood of West Philadelphia to sell crack cocaine in and around two playgrounds.  One organization sold crack in a playground, commonly referred to as “the Grounds,” located near to the intersection of 52nd Street and Westminster Avenue.  The second organization sold crack in a playground, commonly referred to as “the Pit,” located near to the intersection of 51st Street and Reno Street. These two areas are within close proximity to each other (merely a few blocks away) and are separated by a baseball field on Westminster Avenue, the lower boundary of “the Grounds.” “The Grounds” organization involved Robert Mack, a/k/a “Tweet,” Kenneth Riley, a/k/a “Kenny,” James Wilson, a/k/a “JT,” Clayton Roberts, a/k/a “Water,” Mark Samuel, Xavier Towel, a/k/a “Zay,” Sir Robert Keen, a/k/a “Brock,” and others.  “The Pit” organization involved, Sean Gilliam, a/k/a “Shizzy-Ones,” Bryant Calloway, a/k/a “Bigs,” Sean Wilson, a/k/a “Lil Shizz,” Tonie Henderson, a/k/a “Tone,” Tyree Johnson, a/k/a “Riq,” and others. 

 

In the summer of 2013, Bryant Calloway, a convicted felon and member of “the Pit” organization, attempted to overtake a portion of the crack sales that were occurring in “the Grounds” area.  In furtherance of that effort on August 5, 2013, Bryant Calloway, and others, entered into “the Grounds” and shot and killed Brian Littles, a/k/a “BL,” who at the time was selling crack for “the Grounds” organization.  Calloway killed Littles in order to attempt to expand the drug distribution area of his organization. 

 

In response to the murder of Littles, members of “the Grounds” organization conspired to shoot Calloway.  On November 22, 2013, James Wilson, a convicted felon and member of “the Grounds’” organization, shot Calloway approximately 10 times.  Calloway survived the murder attempt.  Within 24 hours of the shooting of Calloway, Sean Wilson, a convicted felon and member of “the Pit” organization, fired multiple shots from a firearm down a residential street near to “the Grounds.”   “D.F.”, an innocent bystander who happened to be present in the area was shot and injured.   

 

            Three indictments were unsealed today in the United States District Court for the Eastern District of Pennsylvania.

 

Seven members of “the Grounds” organization were charged in a 16 count indictment.  That indictment charges, among other offenses, a multi-year long crack distribution conspiracy, the shooting of Bryant Calloway, possession, use and discharge of a firearm in relation to a drug trafficking crime, felon in possession of a firearm, and multiple counts of crack distribution and distribution of crack within a protected zone.

 

Five members of “the Pit” organization were charged in a 31 count indictment.  That indictment charges, among other offenses, a multi-year long crack distribution conspiracy, the murder of Brian Littles, the shooting of D.F., possession, use and discharge of a firearm in relation to a drug trafficking crime, felon in possession of a firearm, and multiple counts of crack distribution and distribution of crack within a protected zone. 

 

Also, a two count indictment was filed against Marcus Royster who, during the ATF investigation, sold over 28 grams of crack cocaine to a confidential informant within a protected zone.

 

“The alleged acts of those charged here illustrate the threat to our communities posed by the violent crime that goes hand in hand with drug distribution,” said Acting United States Attorney Louis D. Lappen. ”The violence knows no boundaries, nor does it respect protected zones, like community playgrounds, that should be safe spaces.  Through the cooperation between federal and local officials in cases like this, we remain committed to significant prosecutions that will make our communities safer.”

 

“The ATF is committed to working with our federal, state and local law enforcement partners to target violent drug trafficking organizations that are responsible for drug trafficking and related gun violence in our communities,” said Acting Special Agent in Charge Robert Cekada. “These indictments are a perfect example of the collaborative effort between the ATF and the Philadelphia Police Department to target violent offenders.”

 

“This investigation, along with the resultant arrests, is a fine example of great collaborative effort among law enforcement agencies,” said Philadelphia Police Commissioner Richard Ross, Jr. “We appreciate all of our law enforcement partners in our collective effort to keep our city safe.”

 

If convicted the defendants face lengthy terms of imprisonment.  Bryant Calloway, Kenneth Riley, and James Wilson, each face a mandatory minimum term of 30 years imprisonment and a maximum of life.  Sean Gilliam and Robert Mack each face a mandatory minimum term of 25 years imprisonment and a maximum of life.  Sean Wilson, Tyree Johnson, Clayton Roberts, Xavier Towel, Sir Robert Keen, and Marcus Royster each face a mandatory minimum term of 20 years imprisonment and a maximum of life.  Tonie Henderson and Mark Samuel each face a mandatory minimum term of 10 years imprisonment and a maximum of life.  Each defendant also faces multiple years of post-release supervision, potential fines and special assessments. 

 

The Bureau of Alcohol, Tobacco and Firearms, with the assistance of the Philadelphia Police Department, investigated the case.  It is being prosecuted by Assistant United States Attorneys Jonathan Ortiz and Seth Schlessinger.

Louis D. Lappen, Acting United States Attorney for the Eastern District of Pennsylvania, announced a series of agreements to resolve the U.S. Attorney’s Office Americans With Disabilities Act (ADA) compliance review of twelve Philadelphia restaurants. The restaurants are operated by Garces Restaurant Group (“Garces”), Starr Restaurant Organization (“Starr”), Restaurant 13 and Longacre Holdings (“Longacre”). The government inspected these restaurants for ADA compliance as part of the ADA Compliance Review of 25 Philadelphia restaurants launched by the United States Attorney’s Office in 2015. These restaurants were not reviewed in response to any specific complaint.

Garces entered into a Voluntary Compliance Agreement to resolve the government’s ADA compliance review of Amada, Tinto, and Village Whiskey. Starr and affiliated entities entered into Voluntary Compliance Agreements to resolve the government’s ADA compliance review of Buddakan, Butcher & Singer, Dandelion, El Vez, Morimoto, Parc, and Talula’s Garden. Restaurant 13 entered into a Voluntary Compliance Agreement to resolve the government’s ADA compliance review of Barbuzzo.

Longacre entered into a settlement agreement to resolve the government’s 2016 lawsuit filed in federal court arising from Longacre’s failure to cooperate with the ADA Compliance Review of South Philadelphia Tap Room.

The agreements announced today require the restaurant operators to take steps to remove specific barriers to accessibility identified by the Department of Justice during inspections of these twelve restaurants. These agreements also require each operator to identify and correct violations of the ADA that may exist in affiliated restaurants and to implement new or revised ADA policies. Collectively, these agreements will impact accessibility at dozens of restaurants.

“The U.S. Attorney’s Office initiated this compliance review to ensure that individuals with disabilities have equal access to area restaurants to the full extent guaranteed by the Americans With Disabilities Act. The agreements announced today further that important goal,” said Lappen. “Restaurants must comply with the accessibility provisions of the ADA. If they do not we, will continue to take all reasonable steps within our power to enforce compliance, including litigation if necessary.”

The ADA compliance review of these restaurants was handled by the office’s Civil Rights Coordinator, Assistant U.S. Attorney Jacqueline C. Romero, and Assistant U.S. Attorney John T. Crutchlow.

PHILADELPHIA –Mohammed Jabbateh, a/k/a “Jungle Jabbah,”51, a citizen of Liberia residing in East Lansdowne, PA, was found guilty of two counts of fraud in immigration documents and two counts of perjury, announced Acting United States Attorney Louis D. Lappen and Special Agent-in-Charge Marlon Miller, Homeland Security Investigations. In December of 1998, when making application for asylum and later for permanent legal residency, the defendant was not truthful about his activities during Liberia’s first civil war while he was a member of the United Liberation Movement of Liberia for Democracy (ULIMO) and later ULIMO-K, rebel groups that battled for control of Liberia. Jabbateh was a battalion commander in ULIMO and ULIMO-K.

In January of 1999, during the asylum seeking process, Jabbateh was interviewed by a United States asylum officer for purposes of determining whether his application should be granted. To this end, he jury heard evidence that Jabbateh falsely responded "no" to the following two queries: 1) "[H]ave you ever committed a crime?"; and 2) "[H]ave you ever harmed anyone else?" On or about December 23, 1999, Jabbateh, largely based upon his answers to these and other questions posed on his Form I-589 asylum application and his answers to questions posed during his asylum application interview, received asylum.

Later, when Jabbateh applied for legal permanent residency by filing a Form I-485 with United States immigration authorities, he falsely responded "No" to the following two questions:

“Have you ever engaged in genocide, or otherwise ordered, incited, assisted or otherwise participated in the killing of any person because of race, religion, nationality, ethnic origin or political opinion?” and

“Are you under a final order of civil penalty for violating section 274C of the Immigration and Nationality Act for use of fraudulent documents or have you, by fraud or willful misrepresentation of a material fact, ever sought to procure, procured, or procured, a visa, other documentation, or entry into the U.S. or any immigration benefit?”

The jury found that the defendant knew his answers to these two questions were false in that he had ordered, incited, assisted, and otherwise participated in the killing of any person because of religion, nationality, ethnic origin, and political opinion; and knew that he had procured asylum in the United States by fraud and willful misrepresentation of material fact.

During the course of two weeks of testimony from over two dozen witnesses that included 17 Liberian victims and eyewitnesses, the jury heard evidence that Jabbateh, as a ULIMO commander from approximately 1992 through 1995, either personally committed, or ordered ULIMO fighters under his command to commit the following nonexclusive list of acts: 1) the murder of civilian noncombatants; 2) the sexual enslavement of women; 3) the public raping of women; 4) the maiming of civilian noncombatants; 5) the torturing of civilian noncombatants 6) the enslavement of civilian noncombatants; 7) the conscription of child soldiers; 8) the execution of prisoners of war; 9) the desecration and mutilation of corpses and ritual consumption of human flesh, including human hearts; and 10) the killing persons because of race, religion, nationality, ethnic origin or political opinion.

“Jabbateh sought to escape to the United States and start anew, where he lied about his extensive and horrific criminal background on federal immigration forms and to the faces of U.S. immigration officers,” said Acting United States Attorney Louis D. Lappen. “Jabbateh committed atrocities in Liberia that ravaged communities in ways that will be felt for generations.  This office has rarely if ever seen such an abuse of our immigration process, and we are incredibly proud of the efforts of law enforcement and the victim witnesses who helped bring this man to justice.  We thank the jury for its just and proper verdict of guilty on all counts.”

"The United States will not be a safe haven for human rights violators and war criminals,” said Marlon Miller, special agent in charge of HSI’s Philadelphia office. “Today’s verdict will help bring justice to the victims of Mr. Jabbateh's atrocities, for having survived the suffering he inflicted during the Liberian Civil War.  HSI will continue to use every tool at our disposal to ensure that those who have committed such acts abroad never evade justice and accountability for their crimes by hiding among their victims in the United States.”

 

At sentencing, Jabbateh faces a maximum possible sentence of 30 years in prison, a possible fine, a $400 special assessment, and a period of supervised release.

The case was investigated by U.S. Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr. and Nelson S.T. Thayer, Jr.

Hakan Yildiz, of Levittown, PA, was charged today by Indictment with illegal reentry after deportation, and Social Security fraud, announced Acting United States Attorney Louis D. Lappen.  The indictment alleges that on or about September 7, 2017, Yildiz, an alien, and native and citizen of Turkey, was found in the United States after having been deported from the United States on or about August 15, 2000.  He is also alleged to have obtained a Social Security Number after falsely representing to the Commissioner of Social Security that he had work status.  According to the indictment, Yildiz then utilized this Social Security Number to obtain a Pennsylvania Identification Card.

 

If convicted the defendant faces a maximum possible sentence of seven years.

 

The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), the Social Security Administration – Office of Inspector General, and is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.

 

An Indictment, Information or Criminal Complaint is an accusation.  A defendant is presumed innocent unless and until proven guilty.

 

PHILADELPHIA – Louis D. Lappen, Acting United States Attorney for the Eastern District of Pennsylvania, announced today that the United States had reached a civil settlement with URS Corporation (“URS”) resolving civil claims concerning URS’ improperly billing under a Joint Venture Project Management Oversight Agreement (“PMO”) with Amtrak.  To resolve the government’s civil claims against it, URS has agreed to pay the United States $900,000.00 pursuant to the settlement agreement.      

 

URS and its joint venture partner performed project management functions on several Amtrak construction projects throughout the eastern United States.  The PMO contract required that URS bill actual labor and overhead rates for the employees working the various projects.   The United States contends that it has certain civil claims against URS arising from URS’ billing under the PMO contract during the period January 1, 2011 through December 31, 2014.  This conduct included: a) continuing to bill overhead at a maximum rate listed in the Joint Venture PMO Contract without adjusting the overhead rate to actual costs incurred; and  b) billing employees at home overhead rates although they were considered as field employees’ in URS’ general ledger.   

 

The case arose when an audit of URS’ billing showed discrepancies.  Amtrak and the Department of Transportation’s Offices of Inspector General investigated this case.  For the United States Attorney’s Office for the Eastern District of Pennsylvania, Assistant United States Attorney Colin Cherico and Auditor Dawn Wiggins handled the investigation and settlement.  

 

The claims resolved by this settlement agreement are allegations only and there has been no determination of liability. 

 

Herman Rosario, 34, of Philadelphia, Pennsylvania, and Yatska Melendez, 22, of Philadelphia, Pennsylvania, were charged today by Indictment[1] with one count of conspiring to distributed one kilogram or more of heroin, and 28 grams of more of crack cocaine, announced Acting United States Attorney Louis D. Lappen.  Rosario was also charged with possessing with the intent to distribute one kilogram or more of heroin, and 28 grams of more of crack cocaine, possessing a firearm in furtherance of drug trafficking crime, and being a felon in possession of a firearm.  On July 14, 2017, Rosario and Melendez were arrested in South Philadelphia after a month-long investigation by the Philadelphia Police Department.  Rosario faces a maximum sentence of life in prison, mandatory minimum prison sentences of 10 and 5 years, a $20,500,000 fine, a lifetime of supervised release, and a $400 special assessment.  Melendez faces a maximum sentence of life in prison, a mandatory minimum prison sentence of 10 years, a $10,000,000 fine, a lifetime of supervised release, and a $100 special assessment.

 

The case was investigated by the Drug Enforcement Administration and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Jason P. Bologna.

 

---

[1]An Indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty.

Jose Perez, 52, of Philadelphia, PA was sentenced today after pleading guilty to one count of conspiracy to defraud the United States announced Acting United States Attorney Louis D. Lappen.  Perez was sentenced to 51 months’ imprisonment and ordered to pay $814,981 in restitution.

 

Perez admitted that he participated in a scheme that defrauded the United States by filing false income tax returns using stolen identities of Puerto Rico residents.  Perez collected the tax refund checks from addresses he and others controlled and then he gave the checks to another member of the scheme to be cashed.  Between April 2009 and June 2009, Perez and others in the scheme cashed over $800,000 of fraudulently obtained United States Treasury tax refund checks.

 

The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant United States Attorney David Ignall.

Julie Ann Turk 46, of Slatington, Pennsylvania was charged in an indictment[1] unsealed this week with one count of bank fraud, one count of bank embezzlement, and three counts of money laundering, announced acting United States Attorney Louis D. Lappen. The indictment alleges that between January of 2009 and April of 2016, Turk, an employee of Allentown Federal Credit Union, defrauded the credit union and its customers out of approximately $641,637 and further conducted monetary transactions with the proceeds of the bank fraud and bank embezzlement in amounts greater than $10,000.

 

If convicted, the defendants face a maximum sentence of 90 years= imprisonment, a five-year term of supervised release, a $2,500,000 fine, and a $500 special assessment.

 

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.

 

---

[1]An Indictment or Information is an accusation.  A defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA – Acting United States Attorney Louis D. Lappen today announced an indictment charging Peter Goodchild, 54, of Philadelphia, PA, former bookkeeper for QwikSource LLC of Florham Park, NJ, with embezzling almost $1.6 million from QwikSource from at least 2005 through 2015.  Goodchild is also charged with money laundering, aggravated identity theft, and filing false income tax returns during this period. 

 

According to the indictment, the embezzlement scheme involved a variety of frauds.  Goodchild opened a PayPal account using his employer’s name, transferred funds from QwikSource’s bank account to that PayPal account, from that PayPal account to another PayPal account belonging to his girlfriend, and from his girlfriend’s PayPal account to one or more of his personal bank accounts.  Goodchild further concealed the embezzlement by making financial entries on files he maintained for QwikSource that increased the cost of goods sold by the same amount of the money he wired from QwikSource’s account to the PayPal accounts and his personal bank accounts. 

 

Goodchild failed to pay taxes on his wealth.  Between 2010 and 2015, he embezzled at least $854,800 and had unreported income of $231,100 in 2010, $215,100 in 2011, $83,600 in 2012, $125,000 in 2013, $152,000 in 2014, and $48,000 in 2015.  His actions created a tax loss of  approximately $240,648. 

 

The indictment charges 48 counts of wire fraud, 10 counts of money laundering, six counts of filing a false income tax return, and one count of aggravated identity theft.  Wire fraud and money laundering are punishable by up to 20 years in prison.  Filing a false tax return is punishable by up to three years.  Aggravated identity theft is punishable by a mandatory two years of prison that must follow any term imposed on the other counts.  Additionally, Goodchild will be subject to restitution and/or forfeiture of money and substitute assets totaling $1,589,315. 

 

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Anita Eve.

A former Municipal Court Senior Judge pleaded guilty to a criminal information unsealed yesterday charging him with causing false statements to the Federal Election Commission (FEC) in connection with a 2012 congressional primary election.  Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania made the announcement.

According to the plea memorandum filed today, Jimmie Moore, 66, of Philadelphia, engaged in a falsification scheme involving payments to his 2012 campaign for the Democratic Party’s nomination for member of the U.S. House of Representatives.  According to the plea memorandum, those payments came from the campaign committee of Moore’s political opponent for the purpose of removing Moore from the Democratic primary for Pennsylvania’s First Congressional District.

As set forth in the criminal information and the government’s plea memorandum, Moore admitted that in or about February 2012, he withdrew from the primary election pursuant to an agreement with his opponent, who promised to pay Moore $90,000 from his campaign funds to be used to repay Moore’s campaign debts.  According to the plea memorandum, those payments were made to Moore’s campaign manager, Carolyn Cavaness, 34, of Philadelphia, and to an entity created for the purpose of repaying the Moore campaign’s outstanding debts to its vendors.  Those payments were routed through consulting companies to conceal their true source.

According to the plea memorandum, Cavaness, acting at Moore’s direction, used the money from Moore’s opponent’s campaign committee to repay the campaign vendors and to reimburse Moore for loans he had made to his own campaign.  However, Moore’s campaign failed to disclose this information to the FEC.  Instead, Moore knowingly and intentionally caused his campaign committee to file false reports with the FEC which did not disclose or reference the funds received from his opponent’s campaign committee, did not mention the companies of the political consultants through which the payments were routed, and falsely listed the same debts owed by Moore’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds paid to Moore by his opponent’s campaign committee.  According to the plea memorandum, Moore and Cavaness knowingly and intentionally caused his campaign to file these false reports in order to conceal from the FEC the fact that Moore’s opponent’s campaign committee had made the payments to Moore’s campaign in excess of the statutory contribution limit in exchange for the defendant’s agreement to withdraw from the primary election.

Cavaness previously pleaded guilty to a criminal information charging her with causing false statements to the FEC in connection with this scheme. 

The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson of the Eastern District of Pennsylvania and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.