Eastern District of Pennsylvania

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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. 

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., 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 – 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.

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.

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 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.

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.

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.    

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.

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.

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 – 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.

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.

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.

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.

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 – 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.

PHILADELPHIA – A federal indictment was unsealed today charging Nazik Modawi and her husband Abboud Wali with conspiracy and bribery, announced Acting United States Attorney Louis D. Lappen.

According to allegations contained in the indictment, the defendants made two bribe payments in November through December 2016 to Southeastern Pennsylvania Transportation Authority (SEPTA) employees for the purpose of expediting their application for a certification from SEPTA’s disadvantaged business enterprise (DBE) program. SEPTA employees immediately reported the cash payments to authorities.

The charge of conspiracy carry a maximum sentence of 5 years in prison and a $250,000 fine; charges of bribery concerning agencies receiving federal funds carry a maximum sentence of 10 years in prison and a $250,000 fine.

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

The case was investigated by the Federal Bureau of Investigation and the United States Department of Transportation, Office of Inspector General, with assistance from the SEPTA Inspector General. It is being prosecuted by Assistant United States Attorney Denise S. Wolf of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

Jeffrey Keagle, 49 of, Folcroft, PA was sentenced yesterday to 20 years in federal prison for his conviction for distribution, receipt, and possession of a collection of more than 75,000 images and videos of children being sexually assaulted and abused, announced Acting United States Attorney Louis D. Lappen.

This was Keagle’s first arrest. In addition to the 20 year term of incarceration, District Court Judge Eduardo Robreno also imposed a 20 year term of supervised release, $45,000 in restitution payments to the victims, $400 in special assessments, and forfeiture of all of Keagle’s computer and electronic equipment used in these offenses.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The case was investigated by the Delaware County District Attorney’s Office Criminal Investigation Division and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Michelle Rotella.

PHILADELPHIA – A federal indictment was unsealed yesterday charging Philadelphia Police Sergeant Brian Smith with two counts of bribery and two counts of making material false statements to the FBI, announced Acting United States Attorney Louis D. Lappen.

According to allegations contained in the indictment, the defendant accepted weekly bribe payments over the course of approximately 11 months in return for providing confidential law enforcement information on accident locations to certain tow truck drivers, in violation of the Police Department’s rotational tow policy. The policy was instituted in 2008 as a public safety and consumer protection measure, following a series of highly-publicized violent encounters between tow truck operators competing for highly lucrative towing work.

The charges of bribery concerning agencies receiving federal funds carry a maximum sentence of 10 years in prison and a $250,000 fine; the charges of making false statements carry a maximum sentence of 5 years in prison and a $250,000 fine.

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

The case is being prosecuted by Assistant United States Attorney Michelle L. Morgan of the U.S. Attorney’s Office for the Eastern District of Pennsylvania. The case is being investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department Internal Affairs Division.

Koren Jones, a/k/a “Kuron Jones”, 25, of Philadelphia, Pennsylvania was charged today by Indictment[1] with two counts of Hobbs Act robbery, one count of attempted Hobbs Act robbery, and three counts of using, carrying, and brandishing a firearm during a crime of violence, announced Acting United States Attorney Louis D. Lappen. The indictment specifically charges that the defendant Koren Jones committed a gun-point robbery of A & A grocery store, located at 2000 North Gratz Street, on November 4, 2016 and German grocery store, located at 2267 North 16th Street, on November 5, 2016. During the commission of robbery of the A & A grocery store, a customer was shot in the leg. During the commission of the robbery of the German grocery store, a shot was fired at the employee victim, but no injuries were sustained. Jones is also charged with attempted robbery of Fontain deli, located at 2027 North 16th street, on November 5, 2016. Additionally, Jones is charged with using and carrying a firearm during the robberies and attempted robbery charged in the indictment.

If convicted of all counts, Jones faces a maximum sentence of life imprisonment, with a mandatory 60-year minimum sentence, consecutive to any other sentence imposed, a $1,500,000 fine, and a $600 special assessment.

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorney Katherine Driscoll.

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

 PHILADELPHIA – Today, a federal judge sentenced Joseph Mehl, a/k/a “Joseph Montanero” to 180 months in prison for his role in a prescription pill mill that trafficked oxycodone and other dangerous and addictive opioids. In addition, the Honorable Nitza I. Quiñones Alejandro, United States District Judge, ordered the defendant to serve three years of supervised release upon release from prison, and pay a special assessment of $100, as well as entering a judgment of forfeiture.

On July 14, 2015, a grand jury in Philadelphia charged Mehl, along William O’Brien, a former doctor of osteopathic medicine, and members of the Pagans Motorcycle Club (“Pagans”), an outlaw biker gang known for violence and drug dealing, with conspiring to distribute controlled substances. Mehl was a long-time associate of the Pagans. Together with the Pagans, O’Brien operated a “pill mill” out of his medical offices. O’Brien wrote fraudulent prescriptions for oxycodone and other drugs, while the Pagans and their associates recruited “pseudo-patients” to buy the fraudulent prescriptions. O’Brien charged $250 cash for the first appointment to obtain prescriptions for controlled substances and $200 cash for each subsequent visit. Oxycodone (30 mg) was in high demand by drug dealers who could sell each pill on the street for as much as $25 to $30. O’Brien sold prescriptions for these dangerous and addictive drugs to hundreds of “pseudo-patients.” After filling the prescriptions, the Pagans resold the pills on the street. The investigation showed that from March 2012 to January 2015, more than 700,000 pills containing oxycodone and other Schedule II controlled substances were distributed by members of the conspiracy.

On October 5, 2016, O’Brien, who was convicted by a jury in summer 2016, was sentenced to 30 years in prison. Pagans members Joseph Mitchell and Patrick Treacy were sentenced to 9 nine years’ and 20 years’ imprisonment, respectively, for their roles in the conspiracy.

The case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration Office of Criminal Investigations, and the Department of Health and Human Services Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary Beth Leahy and David E. Troyer.

Matthew McAlpin, 41, of Elkins Park, Pennsylvania was charged today by Information with one count of possession of child pornography, announced Acting United States Attorney Louis D. Lappen.

It is alleged that on December 10, 2015, McAlpin possessed over five thousand images or videos of child pornography, or visual depictions of minors engaged in sexually explicit conduct, and that his collection included depictions involving the sexual victimization of minors under the age of 12 years.

If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, a term of supervised release, $250,000 fine, mandatory restitution, forfeiture, a $100 special assessment, and a $5,000 additional special assessment under the Justice for Victims of Trafficking Act.

The case was investigated by Homeland Security Investigations, Abington Township Police Department, and the Montgomery County Detective Bureau. It is being prosecuted by Assistant United States Attorney Priya T. De Souza.

PHILADELPHIA, PA – Since the United States of America’s filing of a civil complaint in federal district court on February 15, 2017 against Philadelphia retail store J & B Poultry Market, Inc., and its president Johnny Wong, the parties have entered into a Consent Decree to resolve allegations that the defendants sold improperly labeled chickens stored under insanitary conditions, in violation of the Poultry Products Inspection Act. Acting United States Attorney Louis D. Lappen today announced the resolution.

The Poultry Products Inspection Act prohibits companies and individuals from selling “misbranded” or “adulterated” poultry. The Complaint alleges that United States Department of Agriculture (“USDA”) inspections of the retail store established that chickens stored by the defendants were misbranded because they lacked safe handling instructions and other information required by law, and were adulterated because they were held under unacceptable conditions, including in the back of a pick-up truck outside, and at ambient temperatures in the store as high as 80 degrees.

The Consent Decree, which is not final until accepted by the United States District Court, resolves the allegations in the Complaint, prohibits defendants from committing future violations of the Act, and calls for monetary penalties, and other appropriate relief, in the event of future violations.

“This resolution furthers the Department of Justice’s and the USDA’s goal of educating individuals and companies on safe food handling practices, and ensuring compliance with those practices,” said Acting United States Attorney Louis D. Lappen.

The case was handled by Assistant United States Attorney Stacey L. B. Smith. The matter was investigated by the United States Food and Drug Administration, with legal assistance provided by Lauren Axley, USDA Attorney Advisor.

Eugene Peter Kenworthy, Jr., age 50, of Ambler, PA, was charged today by Indictment with wire fraud, false statements for the purpose of influencing the Federal Housing Administration, aggravated identity theft, and failure to file a tax return, announced Acting United States Attorney Louis Lappen.

If convicted the defendant faces a maximum possible sentence is 166 years’ imprisonment, five years of supervised release, a $5,050,000 fine, and a $1,000 special assessment

The case was investigated by the United States Department of Housing and Urban Development - Office of Inspector General and the Internal Revenue Service - Criminal Investigation, and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.

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

Norma Ibarra-Gonzalez, age 48, of Houston, Texas, and Marta Ibarra-Castillo, age 36, of Houston, Texas, were charged today by Indictment with possession with intent to distribute 500 grams or more of methamphetamine on July 2, 2017. The case involves the seizure of approximately 13 pounds of methamphetamine announced Acting United States Attorney Louis D. Lappen.

If convicted the defendants face a mandatory minimum sentence of at least 10 years in prison and a maximum of life in prison, a special assessment of $100, at least 5 years of supervised release and a potential fine.

The case was investigated by the Federal Bureau of Investigation, Immigration and Customs Enforcement, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Jonathan B. Ortiz.

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

An Allentown, Pennsylvania, resident was sentenced to 12 months and one day in prison for using stolen IDs to file fraudulent tax returns, 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 filed with the court, Barbara Gonzalez, 32, worked as a return preparer at MJ & Associates, a business located in Allentown that provided tax preparation, check cashing and other services. Gonzalez conspired with others to obtain IDs of Puerto Rico residents and used them to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking approximately $635,594 in refunds. She directed the IRS to deposit the refunds onto pre-paid debit cards and to mail them to addresses she and her co-conspirators controlled. The fraudulently obtained refund checks were cashed by other co-conspirators, including Jessenia Cordero, who operated MJ & Associates. Cordero was recently sentenced to 42 months in prison.

In addition to the term of prison imposed, U.S. District Judge Edward G. Smith ordered Gonzalez to serve three years of supervised release and to pay $319,610.39 in restitution to the IRS.

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Matthew J. Kluge of the Tax Division, who prosecuted the case.

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

An Allentown, Pennsylvania, resident was sentenced to 12 months and one day in prison for using stolen IDs to file fraudulent tax returns, 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 filed with the court, Barbara Gonzalez, 32, worked as a return preparer at MJ & Associates, a business located in Allentown that provided tax preparation, check cashing and other services. Gonzalez conspired with others to obtain IDs of Puerto Rico residents and used them to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking approximately $635,594 in refunds. She directed the IRS to deposit the refunds onto pre-paid debit cards and to mail them to addresses she and her co-conspirators controlled. The fraudulently obtained refund checks were cashed by other co-conspirators, including Jessenia Cordero, who operated MJ & Associates. Cordero was recently sentenced to 42 months in prison.

In addition to the term of prison imposed, U.S. District Judge Edward G. Smith ordered Gonzalez to serve three years of supervised release and to pay $319,610.39 in restitution to the IRS.

Acting U.S. Attorney Lappen and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Matthew J. Kluge of the Tax Division, who prosecuted the case.

Rigoberto Roque-Vazquez, of Norristown, 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 13, 2017, Roque-Vazquez, 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 June 11, 2013, March 21, 2014, and October 2, 2015.

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 Sean P. McDonnell.

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

PHILADELPHIA – Charles Sampson, 61, of Chester, PA, was sentenced today to 87 months in prison attempting to rob a postal employee with a dangerous weapon at the Chester Post Office post offices. Sampson pleaded guilty on March 6, 2017. In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered three years of supervised release and a $100 special assessment.

On November 30, 2016, Sampson entered the United States Post office in Chester, PA, wearing a mask and carrying a long golf style umbrella which was open to conceal his identity. Sampson was carrying a silver firearm or a facsimile firearm which he pointed at the postal clerk and demanded cash. Surveillance video in the area captured Sampson leaving the scene, without the mask and carrying the umbrella. Based on the video, Postal Inspectors created a reward flyer which was distributed to local media and local area residents. In response, law enforcement received several tips which led Postal Inspectors to Sampson.

The case was investigated by the United States Postal Inspection Service and the Chester Police Department. It was prosecuted by Assistant United States Attorney Jessica Natali.