Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Two Men Indicted for Conspiring to Cause False Statements to the Federal Election CommissionRead the Press Release
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.
Two Indicted for Conspiring to Cause False Statements to the Federal Election CommissionRead the Press Release
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.
Former Financial Advisor Charged in Scheme to Defraud ClientsRead the Press Release
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.
Thirteen Involved in Rival Mill Creek Drug Distribution Organizations IndictedRead the Press Release
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.
Resolution of ADA Compliance Reviews of Twelve Philadelphia RestaurantsRead the Press Release
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.
Liberian National Found Guilty of Immigration Fraud and PerjuryRead the Press Release
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.
Levittown Man Charged with Illegal Reentry and Social Security FraudRead the Press Release
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.
U.S. Attorney Reaches Settlement for False Claims Act Violations on Project Management Oversight ContractRead the Press Release
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.
Philadelphia Pair Charged in Drug Trafficking ConspiracyRead the Press Release
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.
Philadelphia Man Sentenced in Tax Refund Fraud SchemeRead the Press Release
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.
Slatington, PA Woman Charged with Bank Fraud and EmbezzlementRead the Press Release
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.
Former Bookkeeper Indicted for Embezzling Nearly $1.6 Million from New Jersey Cellular Solutions CompanyRead the Press Release
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.
Former Philadelphia Judge Pleads Guilty to Causing False Statements to the Federal Election CommissionRead the Press Release
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.
Former Philadelphia Judge Pleads Guilty to Causing False Statements to the Federal Election CommissionRead the Press Release
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 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 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.
Jacksonville Woman Charged with Wire FraudRead the Press Release
Marisol Rivera, 57, of Jacksonville, Florida, was charged today by Indictment with wire fraud, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 40 years’ incarceration, $500,000 fine, 3 years of supervised release, and a special assessment of $200, plus restitution and forfeiture.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy Rue.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Announces $3.6 Million Settlement with Bank Accused of Consumer FraudRead the Press Release
PHILADELPHIA - ZB, N.A, formerly known as Zions First National Bank, N.A. (Zions), of Salt Lake City, Utah, settled allegations by the United States Attorney’s Office for the Eastern District of Pennsylvania that Zions and its affiliated payment processor facilitated consumer fraud by providing payment processing services to telemarketing and Internet merchants that were debiting money illegally from consumers’ bank accounts. Under a civil settlement reached between ZB and the government, the bank will pay a civil money penalty of $3.6 million to the United States Treasury, announced Acting United States Attorney Louis D. Lappen.
The government alleges that Zions and its affiliate Modern Payments provided ACH debit processing services to a number of telephone and Internet marketing merchants that were engaged in fraud against consumers. The government further alleges that Zions and Modern Payments knew or were willfully blind to the fact that the marketing merchants were engaged in fraud campaigns against consumers. Modern Payments, through Zions, debited money from consumers’ bank accounts and transferred that money to the marketing merchants.
Banks are a critical key in many consumer fraud schemes. After a fraudulent marketer obtains bank account information from a consumer, the fraudulent marketer still needs to gain access to the banking system in order to take the consumer’s money. Fraudulent marketers have a difficult time opening their own bank accounts because of laws designed to prevent criminals from accessing the banking system. To overcome this obstacle, fraudulent marketers often obtain indirect access to the banking system through a third-party payment processor that can more easily establish a relationship with a bank.
The government alleges that Zions and Modern Payments knew of, or were willfully blind to, ten Modern Payment’s telemarketing and Internet marketing clients using Modern Payments to access the banking system through Zions to engage in consumer fraud schemes. Specifically, the government alleges that Zions and Modern Payments knew of or were willfully blind to indicators of consumer fraud, including high rates of ACH debit transactions returned from consumers’ accounts as unauthorized. The government also alleges that Zions and Modern Payments facilitated the fraud campaigns of two marketers by initiating debits against consumers’ bank accounts despite knowledge or being willfully blind to the fact that the debits violated rules that prohibited both processing payments associated with outbound telemarketing, and recurring payments pursuant only to a voice-authorization. The government also alleges that Modern Payments failed to conduct sufficient due diligence of certain of its marketing clients before providing them with access to consumers’ bank accounts -- despite Zions’ internal skepticism of the marketers’ business practices and acknowledgement that Zions would be at risk for the marketers’ conduct.
The government contends that Zions and Modern Payments’ conduct violated the Financial Institutions Reform, Recovery and Enforcement Act, 12 U.S.C. § 1833a (“FIRREA”). FIRREA authorizes the imposition of civil monetary penalties for violations of enumerated criminal statutes affecting a federally-insured financial institution. These crimes include mail fraud and wire fraud.
Modern Payments received $1.2 million in fee revenue from the fraudulent marketers. In addition to the $3.6 million penalty paid to the United States Treasury in connection with this settlement, pursuant to a separate class action settlement approved by a Federal court, ZB has established a $37.5 million compensation fund for the victims of the frauds.
The case was handled by Assistant United States Attorney Joel M. Sweet and Investigator Jeffrey R. Braun.
Reading Man Charged with Purchasing Firearm for a JuvenileRead the Press Release
Maximo Velez, 26, of Reading, PA., was charged today by indictment with false statements to a federal firearms licensee and transfer of a firearm to a juvenile, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about September 26, 2015, Velez made a false statement to a federal firearm licensee during the purchase of a firearm, wherein he falsely certified that he was the actual transferee/buyer of the firearm when in fact, as he knew at the time that he was making the purchase for a juvenile.
If convicted the defendant faces a maximum sentence of 6 years’ imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Native of Mexico Charged with Illegal Reentry After DeportationRead the Press Release
Abel Montero-Mendoza, 32, of Oxford, 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 November 3, 2014, Montero-Mendoza, 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 September 17, 2005 and June 15, 2010.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, and is being prosecuted by Assistant United States Attorney Bea Witzleben.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Native of Guatemala Charged with Illegal Reentry After DeportationRead the Press Release
Deodoro Suchite-Garcia, a/k/a “Teodoro Susachete-Garcia,” of Philadelphia, 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 August 25, 2017, Suchite-Garcia, 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 February 2, 2011, April 29, 2011, December 17, 2014, March 24, 2015, June 3, 2016, and July 22, 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 Melanie B. Wilmoth.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Native of Dominican Republic Charged with Illegal Reentry After DeportationRead the Press Release
Ricardo Medrano Damas, a/k/a "Ricardo Medrano Damaso," a/k/a "Armando Villalongo-
Reyes," of the Dominican Republic, was charged today by Indictment with illegal reentry after
deportation, announced Acting united states Attomey Louis D. Lappen. The indictment alleges
that on or about August 28,2017, Medrano Damas, an alien, and native and citizen of the
Dominican Republic, was found in the United States after having been deported from the United
States on or about May 30, 2003, December 1, 2010, April 4,2012, and June 21, 2016.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and
Removal Operations ("ERO"), and is being prosecuted by Assistant United States Attomey Paul
Gray.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is
presumed innocent unless and until proven guilty.Lawsuit Filed Against Defense Contractors over Alleged False ClaimRead the Press Release
PHILADELPHIA – The United States filed a civil fraud lawsuit today against Babu (Bob) Metgud and Shubhada (Sue) Kalyani, of Moorestown, New Jersey, and four companies, Shubhada Industries, d/b/a Shubhada, Inc., Metcon Aerospace & Defense, d/b/a Metcon Industries, NRI Capital Corporation, and The Innovation Technology & Enterprise Development Center, Inc. The complaint, announced by Acting United States Attorney Louis D. Lappen, alleges that the defendants engaged in a scheme to overcharge the military for spare vehicle parts.
According to the complaint, Shubhada Industries described itself as a manufacturer to the Defense Logistics Agency and agreed to manufacture two light assemblies, a type of turn signal for munitions vehicles. But instead of manufacturing these assemblies, Shubhada Industries allegedly purchased them from someone else for $1,351.62, charged the military $73,842.00 for the same items—a 5400 percent markup—and pocketed the difference. The complaint alleges that when the government asked Metgud about the price, he made false statements describing Shubhada Industries’ non-existent manufacturing process and encouraged the military to buy more of the items. Kalyani likewise allegedly made false statements to conceal the company’s actual role as a dealer instead of a manufacturer.
The complaint additionally names as defendants Metcon Industries, the entity through which Metgud purchased the light assemblies, and two other alleged alter egos of Shubhada Industries.
“This case is another example of the commitment of our office to hold accountable those who cheat the government by charging excessive fees for their products,” said Acting United States Attorney Louis D. Lappen. “We will continue to use our resources to ensure that those who do business with the government are truthful and transparent in their dealings and treat our taxpayers fairly.”
The United States filed the lawsuit under the False Claims Act. Under the False Claims Act, a person who causes false or fraudulent claims to be submitted to the government for payment is liable for three times the government’s damages, plus civil penalties for each false claim. The complaint contains allegations only, and not findings of liability.
The allegations arose from an investigation led by the United States Department of Defense, Defense Criminal Investigative Service. Assistant United States Attorney Michael S. Macko handles the matter.
Asplundh Tree Experts, Co. Pleads Guilty to Unlawful Employment of AliensRead the Press Release
PHILADELPHIA –Asplundh Tree Experts, Co., one of the largest privately-held companies in the United States, headquartered in Willow Grove, Pennsylvania (“Asplundh”), pleaded guilty today to unlawfully employing aliens, in connection with a scheme in which the highest levels of Asplundh management remained willfully blind while lower level managers hired and rehired employees they knew to be ineligible to work in the United States, announced acting United States Attorney Louis D. Lappen. Following the guilty plea hearing today, the Honorable John R. Padova sentenced the company to pay a forfeiture money judgment in the amount of $80,000,000.00 and abide by an Administrative Compliance Agreement, as set forth by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Philadelphia. Pursuant to a separate Civil Settlement Agreement, Asplundh will pay an additional $15,000,000.00 to satisfy civil claims arising out of their failure to comply with immigration law.
The $95,000,000.00 recovery, including $80,000,000.00 criminal forfeiture money judgment and $15,000,000.00 in civil payment, represents the largest payment ever levied in an immigration case.
According to court documents, from 2010 until December 2014, Asplundh, an industry leader in tree trimming and brush clearance for power and gas lines, hired and rehired employees in many regions in the United States accepting identification documents it knew to be false and fraudulent. A six-year HSI audit and investigation revealed that the company decentralized its hiring so Sponsors (the highest levels of management) could remain willfully blind while Supervisors and General Foremen (2nd and 3rd level supervisors) hired ineligible workers, including unauthorized aliens, in the field. Hiring was by word of mouth referrals rather than through any systematic application process. This manner of hiring enabled Supervisors and General Foremen to hire a work force that was readily available and at their disposal.
This decentralized model tacitly perpetuated fraudulent hiring practices that, in turn, maximized productivity and profit. With a motivated work force, including unauthorized aliens willing to be relocated and respond to weather related events around the nation, Asplundh had crews which were easily mobilized that enabled them to dominate the market. Asplundh provided all the incentives to managers to skirt immigration law.
“Our partners at U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Philadelphia are to be commended for their work on this lengthy audit and investigation, spanning 6 years," said Acting United States Attorney Louis D. Lappen. "Today’s settlement and the compliance agreement makes it clear, that companies must play by the rules and treat everyone fairly.”
“Today marks the end of a lengthy investigation by ICE Homeland Security Investigations into hiring violations committed by the highest levels of Asplundh’s organization,” said ICE Acting Director Thomas Homan. “Today’s judgment sends a strong, clear message to employers who scheme to hire and retain a workforce of illegal immigrants: we will find you and hold you accountable. Violators who manipulate hiring laws are a pull factor for illegal immigration, and we will continue to take action to remove this magnet.”
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Philadelphia and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.
Additional Canadian Citizen Charged in Telemarketing ScamRead the Press Release
Ari Tietolman, 43, of Montreal, Canada, was charged in a Superseding Indictment1 with three counts of wire fraud and four counts of money laundering, announced Acting United States Attorney Louis D. Lappen. In addition, the Superseding Indictment added Adam Harper, 34, of Montreal, Canada, who is also charged with three counts of wire fraud and four counts of money laundering.
According to the Superseding Indictment, between 2005 and March 2014, Tietolman, Harper, and others used Tietolman’s network of telemarketers in Canada and India to target American senior citizens with deceptive telemarketing calls. They sold worthless or non-existent services and then debited the victims’ bank accounts without their informed consent. Using the business names Fraud Watch, Patient Assistance Plus, Legal Eye and Trust One, the worthless or non-existent services these telemarketers sold included purported fraud protection and discounted legal services, as well as a discount prescription card.
During the calls, Tietolman’s telemarketers allegedly made various false representations, such as that they were calling on behalf of, or were affiliated with, the victim’s bank, or insurance company, or the United States government. In addition to misrepresenting the value of the products being marketed, Tietolman’s telemarketers allegedly misrepresented the cost of these products, sometimes telling consumers the products were free, or less expensive than the amount that was ultimately debited from the consumers’ bank accounts. In other instances, Tietolman’s telemarketers allegedly assured consumers they would not debit the consumers’ bank accounts, and then did just that after the consumer provided their bank account information.
According to the Superseding Indictment, Tietolman and Harper attempted to conceal their involvement in the scheme by employing others to run “front” companies and process the fraud money. The sole purpose of these corporations was to process the fraud proceeds generated by the telemarketing scheme. Tietolman and Harper instructed others to open up numerous bank accounts in the United States in the names of the fraud companies that they had incorporated. Tietolman, Harper, and others controlled these United States bank accounts from Canada. Tietolman and Harper instructed others in the United States to deposit victims’ funds in batches of less than $10,000 to avoid federally-mandated reporting requirements. After the funds were deposited, Tietolman and Harper instructed others to wire the majority of the funds to accounts in Canada.
Tietolman and Harper face maximum possible sentences of 170 years in prison; three years of supervised release; a fine of $1.75 million or up to double the amount involved in the money laundering; and a $700 special assessment.
In March 2016, Marc Roy Ferry, 36, of Downingtown, Pennsylvania, pleaded guilty in a related case to his role in running “front” companies in the United States for Tietolman and Harper.
The case was investigated by the FBI, IRS - Criminal Investigations, Homeland Security Investigations, the Federal Trade Commission, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Vineet Gauri.1 An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed
Benin Man Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
A Republic of Benin man unlawfully residing in Philadelphia, Pennsylvania was sentenced today to 48 months in prison, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
Abdou Koudos Adissa was convicted on March 31 of conspiring to commit access device fraud following a jury trial in the Eastern District of Pennsylvania. According to the indictment and evidence presented at trial, from February through June 2014, Adissa was engaged in a conspiracy in which stolen identities were used to file tax returns claiming refunds with the Internal Revenue Service (IRS). Co-conspirators filed fraudulent tax returns seeking more than $800,000 in refunds, which were loaded onto Green Dot prepaid debit cards and sent via Western Union to Nigeria. During a search of the apartment Adissa shared with a co-conspirator, special agents found 106 Green Dot cards in Adissa’s room. Adissa registered the Green Dot cards using stolen IDs and provided his co-conspirators with the direct deposit information related to the cards so that fraudulently obtained refunds could be directed to them. According to the evidence produced at trial, he called Western Union 63 times in three months to facilitate transferring these fraudulent refunds to Nigeria.
In addition to the term of prison imposed, U.S. District Court Judge Gene E. K. Pratter ordered Adissa to serve three years of supervised release and to pay $252,840 in restitution to IRS. Adissa is pending immigration removal proceedings.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney David J. Ignall and Trial Attorney Carl F. Brooker, IV of the Tax Division, who prosecuted the case.
Benin Man Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
WASHINGTON – A Republic of Benin man unlawfully residing in Philadelphia, Pennsylvania was sentenced today to 48 months in prison, announced Acting 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.
Abdou Koudos Adissa was convicted on March 31 of conspiring to commit access device fraud following a jury trial in the Eastern District of Pennsylvania. According to the indictment and evidence presented at trial, from February through June 2014, Adissa was engaged in a conspiracy in which stolen identities were used to file tax returns claiming refunds with the Internal Revenue Service (IRS). Co-conspirators filed fraudulent tax returns seeking more than $800,000 in refunds, which were loaded onto Green Dot prepaid debit cards and sent via Western Union to Nigeria. During a search of the apartment Adissa shared with a co-conspirator, special agents found 106 Green Dot cards in Adissa’s room. Adissa registered the Green Dot cards using stolen IDs and provided his co-conspirators with the direct deposit information related to the cards so that fraudulently obtained refunds could be directed to them. According to the evidence produced at trial, he called Western Union 63 times in three months to facilitate transferring these fraudulent refunds to Nigeria.
In addition to the term of prison imposed, U.S. District Court Judge Gene E. K. Pratter ordered Adissa to serve three years of supervised release and to pay $252,840 in restitution to IRS. Adissa is pending immigration removal proceedings.
Acting U.S. Attorney Lappen and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney David J. Ignall and Trial Attorney Carl F. Brooker, IV of the Tax Division, who prosecuted the case.
Philadelphia Man Charged with Bank FraudRead the Press Release
Jerry Louis, of Philadelphia, PA, was charged today by Indictment with one count of bank fraud and one count of access device fraud, announced Acting United States Attorney Louis D. Lappen. The Indictment alleges that in April 2012, Louis engaged in a scheme to cash checks that were fraudulently issued from a victim’s bank account. The Indictment also alleges that in February 2015, Louis trafficked in counterfeit access devices, selling a fake credit card that was encoded with stolen credit card information.
If convicted the defendant faces a maximum possible sentence of forty years imprisonment.
The case was investigated by the United States Secret Service, the Federal Bureau of Investigation, and the Federal Deposit Insurance Corporation, and is being prosecuted by Assistant United States Attorneys David J. Ignall and Christopher J. Mannion.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Penn Valley Man Charged with Threatening A United States MarshallRead the Press Release
Mehdi Nikparvar-Fard, 46, who is also known as Mehdi Armani, of Penn Valley, Pennsylvania, was charged today by Indictment[1] with threatening a United States Marshal and lying to the United States Marshals announced Acting United States Attorney Louis D. Lappen. Nikparvar-Fard was charged with making these statements on August 29, 2017, when he was arrested by the U.S. Marshals on a federal bench warrant. Nikparvar-Fard faces up to 15 years in prison, up to $500,000 in fines, three years of supervised release, and a $200 special assessment.
The case was investigated by the Drug Enforcement Administration, 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.
Allentown Man Charged in Aiding the Preparation of False Tax ReturnsRead the Press Release
Jose Frias, 57, of Allentown, PA was charged today by Indictment with conspiracy to defraud the United States and with aiding in the preparation of false tax returns, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 32 years’ incarceration, $2,500,000 fine, 3 years of supervised release, and a special assessment of $1,000, plus restitution and forfeiture.
The case was investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Nancy Rue.
Upper Darby Man Charged with Illegal Reentry After DeportationRead the Press Release
Rudy Otoniel Alvarez-Esquivel, a/k/a “Rudy Vasquez,” of Upper Darby, 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 August 15, 2017, Alvarez-Esquivel, an alien, and native and citizen of Honduras, was found in the United States after having been deported from the United States on or about August 30, 2012, January 16, 2013, and November 18, 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 Judy Goldstein Smith.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Bank RobberyRead the Press Release
Scott Wayne Turner, 49, of Philadelphia, Pennsylvania, was charged today by Indictment with one count of bank robbery, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, a $250,000 fine, a $100 special assessment, and a three-year period of supervised release.
The case was investigated by the Federal Bureau of Investigation Violent Crimes Task Force and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Horsham, PA Man Charged with Tax EvasionRead the Press Release
David Foster, 52, of Horsham, PA was charged today by Information with one count of tax evasion and one count of failing to pay federal taxes, announced Acting United States Attorney Louis D. Lappen.
If convicted, Foster faces a maximum possible sentence of 10 years imprisonment, three years supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Paul L. Gray.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Owner of Durable Medical Equipment Supplier to Pay $220,000 to Resolve Civil False Claims AllegationsRead the Press Release
PHILADELPHIA – Victor Saul, of Egg Harbor Township, New Jersey and a former owner of R&V Medical Supplies LLC (R&V), has agreed to pay $220,000 to resolve civil claims under the False Claims Act. The government’s claims concern allegations of fraud in connection with the sale of durable medical equipment. The civil resolution was announced today by Acting United States Attorney Louis D. Lappen.
Victor Saul owned R&V together with his brother, Robert Saul, and Robert’s wife, Sheila Saul. R&V was a supplier of durable medical equipment that provided wheelchairs, braces, scooters, heating pads and other products to the elderly and the infirm. The government alleges that R&V engaged in an extensive scheme to defraud the Medicare program from approximately 2005 through 2008. The United States alleges that through R&V, Victor Saul caused to be submitted – by acting in reckless disregard of R&V’s scheme – false claims for reimbursement for durable medical equipment to Medicare. Specifically, the United States contends that R&V, through its principals:
- directed individuals who worked at doctors’ offices to write prescriptions, to prepare medical authorizations and/or physician orders that were not ordered or authorized by a physician;
- either forged doctors’ signatures or directed other individuals to forge doctors’ signatures on these documents;
- provided equipment to patients that was not ordered by submitting false claims for payment for patients with falsified physician orders or medical authorizations;
- billed for medical equipment and supplies that were never provided to any patient;
- paid remuneration in the form of kickbacks to employees of medical providers and social service agencies in exchange for confidential information, including names, social security numbers, insurance information and other personal information that was used to submit these false claims.
Victor Saul’s brother, Robert Saul, was charged criminally and was sentenced in 2011 to 66 months in prison for Medicare fraud and other related offenses. In addition to the prison term, Robert Saul was ordered to pay $845,000 in restitution, a fine of $10,000, and a special assessment of $10,500. R&V was also charged criminally and was sentenced to five years of probation, a fine of $8,000, and a special assessment of $42,000.
As part of the agreement to resolve the government’s claims under the False Claims Act, Victor Saul did not admit to any liability or wrongdoing.
The allegations arose from an investigation led by the Federal Bureau of Investigation and Department of Health and Human Services Office of Inspector General. The case was handled by Assistant United States Attorney David A. Degnan.
Philadelphia Man Charged with Social Security FraudRead the Press Release
John Robinson, 53, of Philadelphia, Pennsylvania, was charged by Indictment with three counts of wire fraud, one count of theft of government funds, and one count of Social Security fraud, announced Acting United States Attorney Louis D. Lappen. According to the Indictment[1], the defendant received retirement benefits intended for another person after that person’s death in October 1999. The defendant’s alleged actions resulted in a loss to the government of approximately $148,526.
If convicted, the defendant faces a term of imprisonment, a 3‑year period of supervised release, restitution to the government of $148,526, a $1,250,000 fine, and a $500 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
[1] An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Charged with Illegal Gun PossessionRead the Press Release
PHILADELPHIA – Tyrone Phillips, 46, of Philadelphia, was charged today by indictment[1] with possession of a firearm by a convicted felon, announced acting United States Attorney Louis D. Lappen. According to the indictment, on June 14, 2017, Phillips was in possession of a Ruger, Model P97DC, .45 caliber semi-automatic handgun, serial number 66346075, which was loaded with seven live rounds of .45 caliber ammunition.
If convicted, Phillips faces a maximum of 10-years’ imprisonment, up to three-years of supervised release, a fine of $250,000, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney José R. Arteaga.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Asplundh Tree Expert Co. Charged with Recruiting, Hiring, and Employing Unauthorized AliensRead the Press Release
Asplundh Tree Expert, Co., one of the largest privately-held companies in the United States, was charged today by Information[1] with one count of unlawfully employing aliens, in connection with a scheme in which Asplundh accepted and received identification documents knowing those documents to be procured by fraud and illegally obtained, announced acting United States Attorney Louis D. Lappen. Asplundh, headquartered in Willow Grove, Pennsylvania, is an industry leader in tree trimming and brush clearance for power and gas lines. The information alleges that in or about 2010 to on or about December 2014, Asplundh managers, including a Vice-President and Sponsor, directed their personnel to accept false identification from prospective employees. The acceptance of these false documents facilitated the re-hiring of Asplundh employees who had been determined previously by Homeland Security Investigations to be aliens unauthorized to work in the United States.
Asplundh supervisors accepted identification documents, such as legal permanent resident cards (green cards), Social Security Cards, and drivers’ licenses as evidence of authorized status or employment in the United States, knowing that those identification documents were illegitimate. This facilitated the hiring and rehiring of workers that were not eligible to be employed in the United States. Asplundh management delegated the recruitment and hiring of employees to lower level supervisors and decentralized its hiring practices in order to facilitate the hiring of these ineligible workers.
Three individual Asplundh supervisors, including a Vice-President, have already entered pleas of guilty to felony counts of conspiracy to commit fraud and misuse visas and fraud and misuse of visas in connection with this case.
If convicted the defendant faces a maximum sentence of not more than five years’ probation, a fine, with a maximum of $3,000 for each unauthorized alien with respect to whom such violation occurs, and any applicable forfeiture.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Area Restaurateur Guilty on Tax OffensesRead the Press Release
PHILADELPHIA – Giuseppe “Pino” DiMeo, 49, of Eagleville, Pennsylvania pled guilty today to two counts of conspiring to defraud the Internal Revenue Service (“IRS”), and nine counts of filing false tax returns announced Acting United States Attorney Louis D. Lappen. DiMeo admitted that he conspired with his business partners at restaurants in Wilmington, Delaware and in the Philadelphia, Pennsylvania area to defraud the IRS of income taxes and payroll taxes. DiMeo skimmed cash from three of his restaurants and failed to report the cash income to the IRS. DiMeo also paid many of his employees in cash under the table and failed to inform his accountant or the IRS about his businesses’ cash payroll. In total, the government has determined, and alleges that, DiMeo failed to report approximately two million dollars in income to the IRS.
DiMeo’s cash skimming and paying employees under the table occurred at DiMeo’s Pizza in Lafayette Hill, Pennsylvania (now closed), Pizzeria DiMeo’s (Andorra), Philadelphia, Pennsylvania, and DiMeo’s Pizzaiuoli Napulitani in Wilmington, Delaware. DiMeo is also an owner of Arde Osteria in Wayne, Pennsylvania.
The defendant faces a maximum possible sentence of 37 years of imprisonment, three years of supervised release, a $2.75 million fine, and a $1,100 special assessment.
The case was investigated by the Internal Revenue Service, Criminal Investigations,
and is being prosecuted by Assistant United States Attorneys Maria M. Carrillo and Tiwana L. Wright.
Former Trenton Marine Manager Indicted for Scheme to Defraud Boat OwnersRead the Press Release
PHILADELPHIA – Acting United States Attorney Louis D. Lappen today announced an indictment charging Denis Kelliher, 47, of Toms River, NJ, with wire fraud. According to the indictment, between 2013 and 2016, Kelliher was the manager of Trenton Marine’s Toms River, NJ marina and acted as a broker for the sale of boats. During that time, he sold approximately 13 boats without the knowledge of the owners and converted the proceeds from the sale to his personal use, including to pay off debts he owed to his business associates. It is alleged that Kelliher robbed the boat owners of their property valued at more than $2 million.
If convicted, Kelliher faces a statutory maximum penalty of 20 years’ imprisonment, three years’ supervised release, $250,000 fine, and $100 special assessment. Additionally, Kelliher will be subject to restitution and/or forfeiture of money and substitute assets totaling $2,163,000.00.
The case was investigated by the Federal Bureau of Investigation and the Toms River (NJ) Police Department and is being prosecuted by Assistant United States Attorney Anita Eve.
Philadelphia Man Charged with Theft of Government FundsRead the Press Release
Shi Luang Peng, 68, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced Acting United States Attorney Louis D. Lappen. According to the Information[1], the defendant received retirement benefits intended for his mother, after his mother’s death in July 2008 until March 2016. The defendant’s alleged actions resulted in a loss to the government of approximately $94,606.51.
If convicted, the defendant faces a term of imprisonment, a 3‑year period of supervised release, restitution to the government of $94,606.51, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
[1] An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Members of Philadelphia Identity Theft Ring Plead Guilty to Conspiring to File Fraudulent Tax Refund ClaimsRead the Press Release
Four Philadelphia, Pennsylvania men pleaded guilty in the Eastern District of Pennsylvania to conspiring to file fraudulent tax refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to documents and information provided to the court, Philadelphia residents Ronald LaFortune, 40, Jean Celestin, 35, and Douge Francois, 26, conspired to use stolen IDs to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds to which they were not entitled. LaFortune opened a bank account at Citizens Bank in Philadelphia in the name of “Ronald Tax Service,” though he did not actually have a tax service. LaFortune and his co-conspirators directed the IRS to deposit some of the fraudulently obtained tax refunds into this bank account. He then withdrew money from the account to provide to Celestin, Francois and other co-conspirators. Celestin and Francois cashed checks they received from LaFortune and kept a portion of the proceeds. Celestin recruited other individuals to join the conspiracy, and he transported cash proceeds from the scheme from Philadelphia to Miami. The defendants agreed that they caused a tax loss of $118,000.
U.S. District Court Judge John R. Padova set sentencing dates as follows: LaFortune is scheduled to be sentenced on Dec. 18; Celestin is scheduled to be sentenced on Dec. 18; and Francois is scheduled to be sentenced on Dec. 19. All three defendants face a statutory maximum sentence of 10 years in prison, a period of supervised release, restitution and monetary penalties.
In a separate, but related scheme, according to documents and information provided to the court, Daniel Monville, 28, conspired with others to use stolen IDs to file tax returns with the IRS fraudulently seeking refunds to which he was not entitled. Despite not having a tax preparation business, Monville opened up a bank account in the name of “Daniel Tax Services” at Citizens Bank in Philadelphia to facilitate the crime. He admitted to causing a tax loss of $155,789.23.
Monville is scheduled to be sentenced on Dec. 13 also before Judge Padova. He faces a statutory maximum sentence of 10 years in prison on the conspiracy charge and five years in prison for aiding and abetting the filing of fraudulent tax refunds, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended 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 are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Four Members of Philadelphia Identify Theft Ring Plead Guilty to Conspiring to File Fraudulent Tax Refund ClaimsRead the Press Release
WASHINGTON – Four Philadelphia, Pennsylvania men pleaded guilty in the Eastern District of Pennsylvania to conspiring to file fraudulent tax refund claims, announced Acting 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, Philadelphia residents Ronald LaFortune, 40, Jean Celestin, 35, and Douge Francois, 26, conspired to use stolen IDs to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds to which they were not entitled. LaFortune opened a bank account at Citizens Bank in Philadelphia in the name of “Ronald Tax Service,” though he did not actually have a tax service. LaFortune and his co-conspirators directed the IRS to deposit some of the fraudulently obtained tax refunds into this bank account. He then withdrew money from the account to provide to Celestin, Francois and other co-conspirators. Celestin and Francois cashed checks they received from LaFortune and kept a portion of the proceeds. Celestin recruited other individuals to join the conspiracy, and he transported cash proceeds from the scheme from Philadelphia to Miami. The defendants caused a tax loss of $118,000.
District Court Judge John R. Padova set sentencing dates as follows: LaFortune is scheduled to be sentenced on Dec. 18; Celestin is scheduled to be sentenced on Dec.18; and Francois is scheduled to be sentenced on Dec. 19. All three defendants face a statutory maximum sentence of 10 years in prison, a period of supervised release, restitution and monetary penalties.
In a separate, but related scheme, according to documents and information provided to the court, Daniel Monville, 28, conspired with others to use stolen IDs to file tax returns with the IRS fraudulently seeking refunds to which he was not entitled. Despite not having a tax preparation business, Monville opened up a bank account in the name of “Daniel Tax Services” at Citizens Bank in Philadelphia to facilitate the crime. He admitted to causing a tax loss of $155,789.23.
Monville is scheduled to be sentenced on Dec. 13 also before Judge Padova. He faces a statutory maximum sentence of 10 years in prison on the conspiracy charge and five years in prison for aiding and abetting the filing of fraudulent tax refunds, as well as a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney Lappen and Acting Deputy Assistant Attorney General Goldberg commended 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 are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Philadelphia Man Sentenced to 60 Months for Loan and Tax FraudRead the Press Release
Zaki M. Bey, 39, of Philadelphia, PA, was sentenced to 60 months in prison, announced Acting United States Attorney for the Eastern District of Pennsylvania Louis D. Lappen. Zaki Bey previously pleaded guilty to one count of conspiracy to commit loan and bank fraud, one count of conspiracy to defraud the Internal Revenue Service, and one count of conspiracy to commit wire fraud.
According to court documents, Bey conspired with others to prepare and submit fraudulent mortgage applications to banks and lending institutions. In 2007 and 2008, BEY successfully secured more than $2 million in residential loans on at least thirteen properties located in the Germantown section of Philadelphia and in New Jersey. Bey and others created fraudulent loan applications on behalf of straw buyers that contained materially false information as to the straw buyers’ income, assets, and intent to occupy the residences. Bey also furnished fraudulent records such as payroll account documents, paystubs, and financial statements to defraud financial institutions and lenders. Bey’s company at the time, Natural Home Builders, was able to receive a payout for purported construction expenses ranging from $17,864.26 to $60,000 at the closing of each settlement. Bey was not completing any construction on these properties, and obtained total settlement proceeds for construction costs of $435,074.26.
In late 2010 and early 2011, Bey filed fraudulent personal income tax returns for tax years 2007, 2008, 2009 and 2010. Bey filed these tax returns claiming false tax withholding payments and false Forms 1099-OID (“Original Issue Discount”) income for his company, Natural Home Builders. Bey attempted to receive total tax refunds from the IRS in the amount of $1,141,677. Bey was only successful in receiving $148,296 from the IRS based on the fraudulent 2009 tax return he submitted. After assessed a tax deficiency by the IRS, Bey mailed checks to the IRS from a closed bank account in an attempt to repay the fraudulent tax refund.
Beginning in 2010 to 2013, Bey engaged in a wire fraud conspiracy involving the submission of fraudulent auto loan applications. Bey furnished fraudulent records such as payroll account documents, paystubs and financial statements to defraud automobile dealerships located in Philadelphia and New Jersey. The false loan applications and fraudulent records caused the automobile dealerships to electronically submit false information to financial institutions and lenders. Through the use of straw buyers, Bey was able to obtain at least 7 automobiles.
In addition to Bey’s 60 month prison sentence, he will also be required to serve 3 years’ supervised release and pay back $705,528.22 in restitution to multiple financial institutions and the Internal Revenue Service.
This case was investigated by the Internal Revenue Service, Criminal Investigation. It was prosecuted by Assistant United States Attorney James Pavlock.
Lancaster Man Convicted of Robbing Local Credit UnionRead the Press Release
On Friday, September 8, 2017, following a four-day jury trial before the Honorable James F. Leeson, Jr. in the United States District Court in Allentown, Wilson Albert Osorio, Jr., age 30, of Lancaster, was convicted of bank robbery for his involvement in the June 22, 2016 robbery of the Members 1st Federal Credit Union located at 2568 Lititz Pike, in Lancaster. After announcing to one of the victim tellers at the time of the robbery that he was armed with “a shocker,” Osorio, along with codefendant Mario Onell Cedeno-Roman, Jr., stole a total of $11,659 in United States currency.
Osorio faces a maximum possible sentence of 20 years’ imprisonment, 3 years’ supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Manheim Township Police Department and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Mark S. Miller.
Sentencing for Osorio has been scheduled for December 19, 2017 at 4:00 p.m. in Allentown. Sentencing for Mario Onell Cedeno-Roman, Jr., who previously pled guilty, is presently set for November 2, 2017, also in Allentown.
Escapee Sentenced to 27 Months for Stealing Identity of a Deceased ChildRead the Press Release
Jon Vincent, a/k/a “Nathan Laskoski,” 45, of Lansdale, Pennsylvania, was sentenced today to 27 months in prison, announced Acting United States Attorney Louis D. Lappen. Defendant Vincent pled guilty in May 2017 to Social Security fraud and aggravated identity theft crimes for his use of the identity of a deceased child for more than two decades. According to the facts admitted to by the defendant during his guilty plea hearing, after being convicted in the state of Texas, the defendant served a prison term, then escaped from a Texas halfway house in 1996. Shortly after his escape, the defendant stole the name of the deceased Nathan Laskoski after visiting a cemetery and finding that the decedent had a birthdate close to Vincent’s own birthdate, to craft a new identity. Vincent subsequently obtained the birth certificate for Laskoski, which he used to apply for a Social Security number in Laskoski’s name.
The defendant has been living using the deceased victim’s stolen identity since mid-1996, and used this identity for various purposes, including to obtain employment, open bank accounts, apply for loans, and to obtain government identification. His use of the stolen identity was discovered when a relative of the deceased victim discovered information on the ancestral website “Ancestry.com” indicating that someone was impersonating the decedent.
The case was investigated by the Social Security Administration, Office of Inspector General, the United States Postal Inspection Service, and the United States Department of Labor Office of Inspector General, with assistance from the Lansdale Police Department. It is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.
Romanian Man Charged with Identity TheftRead the Press Release
An indictment was filed charging Roman Gridjusko, 28, of the country of Estonia, with one count of bank fraud and four counts of aggravated identity theft, announced Acting United States Attorney Louis D. Lappen.
As alleged in the indictment, Gridjusko arrived in the United States in late 2016 and almost immediately began engaging in a scheme to obtain money by using stolen debit card account numbers and corresponding stolen debit personal identification numbers (“PINs”). This included Gridjusko using fraudulent debit cards to access ATMs in order to withdraw money from victim checking accounts.
If convicted of all charges, Gridjusko faces a statutory maximum sentence of 38 years’ imprisonment, which would include a 2-year mandatory minimum sentence, and other penalties.
The case was investigated by the United States Postal Inspection Service’s Wilmington, Delaware Office and is being prosecuted by Assistant United States Attorney Kevin Jayne.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Intent to Distribute CocaineRead the Press Release
PHILADELPHIA – Luis A. Perez-Santiago 38, of Bingham Street in Philadelphia, Pennsylvania, is charged in a one-count indictment with possession with intent to distribute 5 kilograms or more of cocaine, a Schedule II controlled substance, announced Acting United States Attorney Louis D. Lappen. Perez-Santiago is charged in the single count of the indictment with possession with intent to distribute approximately 28 kilograms of cocaine.
According to the indictment, on August 8, 2017, Perez-Santiago possessed approximately 28 kilograms of cocaine in Philadelphia, Pennsylvania.
If convicted, Perez-Santiago faces a maximum penalty of life imprisonment, a mandatory minimum sentence of 10 years’ imprisonment, lifetime supervised release, at least 5 years supervised release, a fine of $10,000,000, and a $100 special assessment.
This case was investigated by Homeland Security Investigations, Border Enforcement Security Task Force (BEST), the Philadelphia Office of the Drug Enforcement Administration, the Pennsylvania Office of Attorney General, Bureau of Narcotics Investigations, the Delaware State Police and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Doylestown Man Charged with Illegal Reentry After DeportationRead the Press Release
Eleasar Rodriguez-Torres, a/k/a “Rogelio Rodriguez-Martinez,” of Doylestown, 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 July 31, 2017, Rodriguez-Torres, 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 August 13, 2009, February 25, 2012, April 23, 2012, November 14, 2012, February 27, 2013, April 1, 2013, and January 27, 2014.
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 Seth M. Schlessinger.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Charged with Illegal Gun PossessionRead the Press Release
PHILADELPHIA – Garrett Marcus Matthews, 32, of Reading, was charged today by indictment[1] with possession of a firearm by a convicted felon, announced acting United States Attorney Louis D. Lappen. According to the indictment, on March 25, 2017, Matthews was in possession of a Glock GmbH, Model 23, caliber .40 S&W, semi-automatic pistol with serial number PVP005, and a Glock GmbH, Model 27, caliber .40 S&W, semi-automatic pistol with serial number LPH954.
If convicted, Matthews faces a mandatory-minimum term of 15-years’ imprisonment, a maximum term of life imprisonment, up to five-years of supervised release, a maximum fine of $250,000, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Montgomery County Detective Bureau, and the Pennsylvania Attorney General’s Office. It is being prosecuted by Assistant United States Attorney José R. Arteaga.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Charged with Illegal Gun PossessionRead the Press Release
PHILADELPHIA – Gilbert Lemar Bates, 42, of Philadelphia, was charged today by indictment[1] with possession of a firearm by a convicted felon, announced acting United States Attorney Louis D. Lappen. According to the indictment, on May 11, 2017, Bates was in possession of Ruger, Model P345, .45 caliber semi-automatic handgun bearing serial number 665-04763 and loaded with seven live rounds of .45 caliber ammunition, and on May 18, 2017, Bates was in possession of Smith & Wesson, Model 10-7, .38 caliber revolver bearing serial number 53984, which was loaded with six live rounds of .38 caliber ammunition.
If convicted, Bates faces a maximum term of ten-years’ imprisonment, up to three-years of supervised release, a maximum fine of $250,000, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney José R. Arteaga.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Penndot Employee Charged with Issuing Illegal Licenses and BriberyRead the Press Release
A federal indictment was unsealed today charging Henry Gibbs and Bakary Camara with conspiracy, bribery and other charges, announced Acting United States Attorney Louis D. Lappen
According to allegations contained in the indictment, Gibbs, a former driver’s license examiner with the Pennsylvania Department of Transportation (“PennDOT”), accepted cash payments in exchange for the issuance of driver’s licenses to others, including foreign nationals, who failed to take the required tests and to provide acceptable proof of residency. Gibbs accepted falsified documents to establish proof of residence, including utility bills, cellular telephone bills and insurance documents as well as tax letters containing identifying information for other people. Camara provided Gibbs the names, dates of birth, driver’s license numbers and/or social security numbers for the driver’s license recipients and paid Gibbs cash to improperly issue both non-commercial and commercial driver’s licenses
Gibbs and Camara are charged with conspiracy to produce identification documents without lawful authority and bribery concerning agencies receiving federal funds. The charge of conspiracy carries a maximum sentence of 15 years in prison and a $250,000 fine; and the charges of bribery concerning agencies receiving federal funds carry a maximum sentence of 10 years in prison and a $250,000 fine.
Gibbs is also charged with false statements to government agents, which carries a maximum sentence of 5 years in prison and a $250,000 fine. Additionally, Camara is charged with aiding and abetting social security fraud and aggravated identity theft, which carry a maximum sentence of 5 years’ imprisonment and a $250,000 fine. He also faces a 2-year mandatory minimum term of imprisonment that must run consecutive to any other sentence for the aggravated identity theft charge.
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 Department of Homeland Security and the Social Security Administration, Office of Inspector General. 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 Police Officer Pleads Guilty to Drug DistributionRead the Press Release
PHILADELPHIA – Stanley Davis, 50, of Philadelphia pleaded guilty today to one count of distribution of controlled substances.
During the offense conduct, Davis was a Philadelphia Police Officer assigned to work as a task force officer with the Federal Bureau of Investigation working on narcotics investigations. In September or October of 2016, Davis was working in the Kensington section of Philadelphia, an area where illegal drugs were frequently bought and sold. Davis spotted two young women who were in Kensington attempting to buy drugs. Davis approached the women, ostensibly to gain information on drug trafficking activity in the area. Davis exchanged phone numbers with the women and began sending them text messages. The text messages soon turned sexual in nature. Davis entered into a sexual relationship with the first woman and later entered into a sexual relationship with the second woman. During the course of these relationships, Davis provided each woman with controlled substances, including heroin and crack.
Davis is scheduled to be sentenced on December 8, 2017 before the Honorable R. Barclay Surrick in the United States District Court for the Eastern District of Pennsylvania.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Justice, Office of the Inspector General with assistance from the Pennsylvania State Police and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Robert J. Livermore.