Eastern District of Pennsylvania

Sharif Gray, 25 of Easton, Pennsylvania, was charged today by Indictment with one count of possession with intent to distribute controlled substances, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of convicted felon in possession of a firearm, in violation, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli.

Gray is alleged to have knowingly possessed a loaded Bersa .380 caliber semi-automatic pistol and 30 grams of methamphetamine with intent to distribute on March 1, 2016, in the City of Easton. Gray also possessed the loaded Bersa .380 caliber semi-automatic pistol after having previously been convicted in a court of the Commonwealth of Pennsylvania of a crime punishable by imprisonment for a term exceeding one year.

If convicted, defendant faces a total maximum penalty of life imprisonment, with a mandatory minimum of 10 years’ imprisonment consecutive to any other sentence imposed and up to a lifetime of supervised release, with a mandatory minimum of 4 years’ of supervised release, a $4,500,000 fine, and a $300 special assessment.

The case was investigated by the Federal Bureau of Investigation, Allentown Division, the Northampton County District Attorney’s Office, and the City of Easton Police Department, and is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein and Assistant United States Attorney Kishan Nair.

The following people were charged by Information today with unlawfully entering restricted grounds surrounding the Democratic National Convention while the President was in attendance, in violation of 18 U.S.C. 1752(a)(1), announced United States Attorney Zane David Memeger.

Name Age City and State of Residence Travis G. Martin 29 Houston, TX Lincoln E. Bohn 24 Manteca, CA Jacob J. Van Buskirk 34 Tacoma, WA Danny E. Nguyen 19 Gaithersburg, MD Natalie M. Fraver 27 Portland, OR Megan T. Munk 27 Forks, WA

 If convicted, each defendant faces a maximum possible sentence of one year imprisonment.

The case was investigated by Department of Homeland Security and is being prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.

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

Jeffrey Curtis Drexler, age 27, of Northampton County, Pennsylvania, was charged today by Indictment with one count of Possession of Child Pornography, announced United States Attorney Zane David Memeger.  The defendant was previously convicted in Northampton County Court of Common Pleas of Sexual Abuse of Children, and was registered as a sex offender under Megan’s Law at the time that he is charged with committing these federal offenses.

If convicted the defendant faces a maximum possible sentence of 20 years’ imprisonment with a 10-year minimum mandatory term of incarceration, a $250,000 fine, 5 years up to a lifetime of supervised release, and a $100 special assessment. 

The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Michelle Rotella.

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

Marquise Bell, 25, of Philadelphia, Pennsylvania was charged today by Indictment[1] with possession of ammunition by a convicted felon, announced United States Attorney Zane David Memeger.

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

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

 

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

Kenneth Duffy, 64, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger.  According to the Information[1], the defendant received retirement benefits intended for his mother, after his mother’s death in January 1997 until his fraud was discovered in August 2016.  The defendant’s alleged actions resulted in a loss to the government of approximately $235,995.          

If convicted, the defendant faces a substantial period of incarceration, a 3‑year period of supervised release, restitution to the government of $235,995, a fine of up to $250,000, and a $100 special assessment.

The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.

 

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

PHILADELPHIA – The YMCA of Reading & Berks County has entered into a settlement agreement with the United States to resolve an allegation that a YMCA facility located at 631 Washington Street in Reading, Pennsylvania, contains architectural barriers in violation of the Americans with Disabilities Act.  

The settlement arises out of a complaint that the United States received alleging that the YMCA’s facility on Washington Street is not accessible to individuals who have mobility impairments.  After conducting an investigation, the United States identified architectural barriers to access relating to a parking area, entrance signs, swimming pool lift, and a restroom facility.

To resolve the matter, the YMCA of Reading & Berks County has agreed to modify the facility’s family-friendly restroom in a manner that complies with the applicable standards for accessible design under the Americans with Disabilities Act.  The YMCA of Reading & Berks County has also agreed provide a van accessible parking space located on the shortest accessible route to the facility’s entrance ramp and to install a directional sign indicating the location of an accessible entrance at all inaccessible entrances at the facility.  In addition, the YMCA of Reading & Berks County has agreed to install a vertical sign identifying the accessible parking spaces, and a directional sign indicating the location of the facility’s accessible toilet/bathing room at all inaccessible toilet/bathing rooms.  The YMCA of Reading & Berks County has further agreed to install a new swimming pool lift that complies with the standards for accessible design.

The YMCA of Reading & Berks County agreed to take these actions on a timetable, and the United States reserved its right to review the facility’s compliance at any time.       

The U.S. Attorney’s Office for the Eastern District of Pennsylvania is committed to investigating alleged violations of the Americans with Disabilities Act.  Those interested in learning more about architectural barriers to access under the Americans with Disabilities Act may access www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD).  Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm. 

The case was handled by Assistant U.S. Attorneys Paul W. Kaufman and Michael S. Macko.

PHILADELPHIA – Today, a federal judge sentenced Joseph Mitchell, Sr., 40 to 9 years in prison for his role in a prescription pill mill that trafficked oxycodone and other dangerous and addictive opioids.  United States District Court Judge Nitza I. Quiñones Alejandro also ordered the defendant to serve 3 years of supervised release upon release from prison, and pay a special assessment of $100. The court also entered a judgment of forfeiture.

On July 14, 2015, a grand jury in Philadelphia charged Mitchell, along William O’Brien, a former doctor of osteopathic medicine, and eight codefendants with conspiring to distribute controlled substances.  Mitchell was a member of the Pagans Motorcycle Club (“Pagans”), an outlaw biker gang known for violence and drug dealing.  O’Brien worked together with Pagans, and their associates, to operate 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 $25 to $30. O’Brien sold prescriptions for these dangerous and addictive drugs to hundreds of “pseudo-patients.” After filling the prescriptions, the Pagans and their associates 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.  The remaining codefendants in the case have pleaded guilty and await sentencing.

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.

An Indictment1 was returned today charging Charles Richard Boehm, 46, formerly of Erie, Pennsylvania, with two counts of bank robbery, announced United States Attorney Zane David Memeger.

The indictment alleges that Boehm robbed a TD Bank branch in Philadelphia on August 12, 2016, and later robbed a PNC Bank branch in Philadelphia on September 16, 2016.

Boehm faces a maximum sentence of 40 years’ imprisonment, a three-year period of supervised release, a $500,000 fine, and a $200 special assessment.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

Keith Tostevin, 52, of Breinigsville, Pennslyvania was charged today by Information1 with the transportation and possession of child pornography, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible sentence of forty years imprisonment, a mandatory minimum five years imprisonment, a mandatory minimum five years supervised release up to lifetime supervised release, a $500,000 fine, a $200 special assessment, and an additional $5,000 special assessment.

The case was investigated by the Pennsylvania State Police and the Department of Homeland Security, Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.

1An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

Matthew Simineri, age 21 of Bangor, Pennsylvania, was charged today by Indictment1 with one count of Enticement of a Minor to Engage in Illicit Sexual Conduct, four counts of Manufacturing Child Pornography, four counts of Receipt of Child Pornography, and one count of Transfer of Obscene Material to a Minor, announced United States Attorney Zane David Memeger. The charges arose out of the defendant’s online communications with a 9-year old autistic girl. 

If convicted the defendant faces a maximum possible sentence of life imprisonment with a 15-year minimum mandatory term of incarceration, a $2,000,000 fine, 5 years up to a lifetime of supervised release, and a $2,000 special assessment. 

The case was investigated by the Spokane County Sheriff’s Department in Washington, the Berks County District Attorney’s Office in Pennsylvania, and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michelle Rotella.

1An Indictment, Information or Criminal Complaint is an accusation.  A defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA – Briarleaf Nursing and Convalescent, Inc., a skilled nursing facility in Doylestown, Pennsylvania, has entered into a settlement agreement with the United States to resolve an allegation that the facility violated the Americans with Disabilities Act.  

The settlement arises out of a complaint that the United States received from the son of a deaf prospective resident who communicated using sign language.  The complainant allegedly informed Briarleaf that his mother would need a sign language interpreter 24 hours per day, 7 days per week.  The admissions representative allegedly responded that a sign language interpreter was not in the facility’s budget. 

According to Briarleaf, a nursing home administrator told the complainant during a subsequent call that Briarleaf did not have the current capability to provide sign language interpreter services, but would research their availability.  The complainant’s mother died at a hospital before she transitioned to Briarleaf or any other skilled nursing facility. 

To resolve the matter, Briarleaf has agreed to provide residents who are deaf or hard of hearing with appropriate auxiliary aids and services, including qualified interpreters, when necessary to ensure effective communication.  In addition, the settlement agreement requires Briarleaf to assess residents’ communications needs during the admission process, maintain records of interpreter requests, contract with a third-party interpreter service, post signs at the facility, provide training to personnel, and publish a policy statement about effective communication.  After the United States requested information from Briarleaf during its investigation, Briarleaf voluntarily took steps to train the facility’s personnel, contract with an interpreter service, and establish a communication policy.

The settlement agreement also requires Briarleaf to provide an annual written report to the U.S. Attorney’s office regarding the status of its compliance during the agreement’s two-year term, and to notify the U.S. Attorney’s Office of any complaints that the facility failed to provide auxiliary aids and services to residents or companions who are deaf or hard of hearing.   Briarleaf did not admit liability, and the settled civil claims are allegations only. 

The U.S. Attorney’s Office for the Eastern District of Pennsylvania is committed to investigating alleged violations of the Americans with Disabilities Act.  Those interested in learning more about effective communication obligations under the Americans with Disabilities Act may access www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD).  Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm. 

The case was handled by Assistant U.S. Attorney Michael S. Macko.

PHILADELPHIA - An indictment was returned today charging David T. Shulick, 46, of Gladwyne, Pennsylvania, with embezzling funds from the School District of Philadelphia.  Shulick was also charged in a scheme to defraud PNC Bank, and with filing false tax returns with the Internal Revenue Service. 

The indictment charges that between 2010 and 2012, defendant Shulick, and co-conspirator Chaka Fattah, Jr., embezzled funds from the School District of Philadelphia, in part by misrepresenting the educational services that would be provided to students pursuant to a contract between the School District and Shulick’s company, Unique Educational Experiences, Inc. (“UEE”).  According to the indictment, Shulick and Fattah Jr. hid the true costs of services provided by UEE by submitting false budgets to the School District of Philadelphia.  The indictment alleges that the budgets contained false entries for benefit costs, inflated staff salaries, and salaries for staff positions that were never filled at the school operated by UEE.  The indictment alleges that as a result of this scheme, defendant Shulick fraudulently obtained funds from the School District of Philadelphia that were supposed to be used to educate students.  According to the indictment, defendant Shulick used those funds to enrich himself, including by paying for contractors who performed work at Shulick’s personal residence and vacation homes. 

The indictment also alleges that Shulick and Fattah Jr. devised a scheme to defraud PNC Bank.  According to the indictment, Fattah Jr. had defaulted on a loan made by PNC.  As part of the scheme, Shulick acted as Fattah Jr.’s lawyer and threatened PNC Bank with the possibility that Fattah Jr. might file bankruptcy if he were unable to resolve his outstanding debts, which would result in the bank receiving little or no repayment on the loan. According to the indictment, defendant Shulick sent a letter to PNC Bank, offering to settle PNC Bank’s claim for $2,500.  The letter included a form which represented that Fattah Jr.’s monthly income was $2,500.  According to the indictment, Shulick’s companies were paying Fattah, Jr. a salary of $75,000 per year, and Shulick and Fattah Jr. had entered into an agreement to increase Fattah Jr.’s compensation.

Finally, the indictment charges that Shulick filed false federal income tax returns for tax years 2009, 2010, and 2011.  According to the indictment, Shulick failed to report all of his taxable income in these years, and improperly claimed itemized deductions. 

The charges were announced by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Michael Harpster, IRS Special Agent-in-Charge Akeia Conner, and Department of Education, Office of Inspector General, Special Agent-in-Charge Geoffrey D. Wood.

If convicted of all charges, Shulick, faces a substantial term of imprisonment, restitution to the School District of Philadelphia and PNC Bank, and a fine of up to $3,800,000.

The case was investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Education, with the cooperation of the Philadelphia School District’s Office of Inspector General.   It is being prosecuted by Assistant United States Attorney Michael T. Donovan.

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

PHILADELPHIA – Today, a federal judge sentenced William J. O’Brien III, a former doctor of osteopathic medicine, to 30 years in prison for illegal distribution of controlled substances resulting in death and additional charges arising from O’Brien’s operation of a pill mill.  United States District Court Judge Nitza I. Quiñones Alejandro also ordered the defendant to serve five years of supervised release upon release from prison; pay restitution of $342,504 to the bankruptcy trustee in connection with his conviction for conspiracy to commit bankruptcy fraud; and pay a special assessment of $12,300. The court also entered a judgment of forfeiture.

“We are pleased with the substantial sentence imposed on the defendant in this case,” said United States Attorney Zane David Memeger. “Those doctors who distribute dangerous prescription drugs for no legitimate medical purpose need to be held fully accountable when their irresponsible conduct leads to death and addiction among patients.”

On July 14, 2015, a grand jury in Philadelphia charged O’Brien and nine codefendants in a 139-count Second Superseding Indictment (‘the indictment”) with conspiring to distribute controlled substances and other crimes. O’Brien was also charged with 121 separate counts of distribution of controlled substances, and distribution resulting in death. In addition to O’Brien, the defendants charged in the indictment included members and associates of the Pagans Motorcycle Club (“Pagans”), an outlaw gang known for violence and drug dealing. O’Brien and his paramour Elizabeth Hibbs were charged with conspiracy to engage in money laundering, conspiracy to commit bankruptcy fraud, and making false statements under oath in bankruptcy proceedings. 

On June 28, 2016, after a six-week trial, a jury found O’Brien guilty of all charges in the indictment except for four distribution counts. All codefendants in the case have pleaded guilty and are awaiting sentencing.

The evidence at trial showed that O’Brien worked together with Pagans and their associates to operate a “pill mill” out of O’Brien’s 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 $25 to $30. O’Brien sold prescriptions for these dangerous and addictive drugs to hundreds of “pseudo-patients.” After filling the prescriptions, the Pagans and their associates resold the pills on the street. The trial evidence showed that from March 2012 to January 2015, more than 700,000 pills containing oxycodone and other Schedule II controlled substances were distributed by O’Brien in furtherance of the conspiracy.  O’Brien generated for himself an estimated $2 million in cash proceeds from the drug trafficking conspiracy.

In connection with his operation of the pill mill, and as proven at trial, O’Brien intentionally distributed, for no legitimate medical purpose, oxycodone, methadone, and cyclobenzaprine, a muscle relaxer, to Joseph Ennis, 38, of Bucks County. Mr. Ennis had initially sought treatment from O’Brien following a car accident. On December 17, 2013, O’Brien prescribed oxycodone and methadone without a legitimate medical purpose, which combined with the cyclobenzaprine, led to Mr. Ennis’ death. Mr. Ennis died five days later on December 22, 2013 from the combination of these substances. At sentencing, Mrs. Bridget Shaw, Mr. Ennis’ sister, asked the Court to consider “the countless victims [O’Brien] fooled who are not here to represent themselves. The patients he turned into addicts for his profit and their families who are now left swimming in hospital bills or worse, wondering how this hell came to be . . . Rather than save lives, according to the oath he took, he chose to ruin them.”

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.

Devin Marino, 29, of Philadelphia, PA was charged today by Indictment[1] with charges of cyber stalking, unauthorized access to a protected computer, wrongfully obtaining individually identifiable health care information, and wrongfully disclosing individually identifiable health care information, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible sentence of 175 years’ imprisonment, $250,000 fine, and $100 special assessment.

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael L. Levy.

 

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

Bassem Kuran, 23, of Philadelphia, PA, was sentenced today to ten months in prison for making false statements to Medicare through VIP Ambulance, Inc., an ambulance company that Kuran owned and which he served as President. The Honorable Gerald J. Pappert, United States District Judge, ordered that upon Kuran’s release from prison, he must serve three years of supervised release, and further ordered Kuran to pay restitution to Medicare in the total amount of $66,901.93. 

At his guilty plea hearing, Kuran admitted that through his company, VIP, he submitted false billings for the purported transport of three patients that VIP did not actually transport. He also submitted billings for patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. As a result of the fraudulent scheme at VIP, the Medicare program paid nearly $67,000 for fraudulent claims from VIP for these three patients. 

The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary E. Crawley and Paul W. Kaufman.

Adam Dolceamore, 35 of Philadelphia, PA was charged on September 29, 2016 by Indictment with one count of receiving and one count of distributing child pornography, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible, sentence of up to 40 years’ imprisonment, 5 years supervised release, a $500,000 fine, mandatory forfeiture and a $200 special assessment

The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Priya T. DeSouza.

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

Salvador Ortiz-Uresti, 41 of Reading, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about November 13, 2015, Ortiz-Uresti, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about April 26, 2001.

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 Attorney Jonathan B. Ortiz.

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

Alcides Rosario-Betances, 56, of Philadelphia, Pennsylvania was charged today by Indictment with three counts of passport fraud, announced United States Attorney Zane David Memeger.

If convicted the defendant Alcides Rosario-Betances faces a maximum possible sentence of 30 years imprisonment, three years supervised release, a $750,000 fine, and $300 special assessment.

The case was investigated by the Diplomatic Security Service and Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Christopher Diviny.

Gerson Joel Rivera-Suchite, a/k/a “Jerson Suchite,” 22, of Philadelphia, Pennsylvania, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about April 5, 2016, Rivera-Suchite, 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 July 5, 2012.

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 Robert E. Eckert.

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

William Minson, 49 of Philadelphia was charged today by Indictment[1] with one count of bank robbery and one count of attempted bank robbery, announced U.S. Attorney Zane David Memeger. The indictment charges that Minson robbed the Hyperion Bank, located at 199 West Girard Avenue in Philadelphia, Pennsylvania, on August 19, 2016, and attempted to rob the Wells Fargo Bank, located at 2300 Snyder Avenue in Philadelphia, Pennsylvania on August 22, 2016.

If convicted, Minson faces a maximum sentence of 40 years' imprisonment, a $500,000 fine, three years supervised release, and a $200 special assessment.

This case has been investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. The case has been assigned to Assistant United States Attorney Thomas M. Zaleski.

 

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

Ramon Emilio Alvarez-Monegro, a/k/a “Jose Diaz Contreras,” a/k/a “Pedro Antonio Tejeda-Garcia,” a/k/a “Antonio Tejada,” 49, of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about December 15, 2015, Alvarez-Monegro, 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 November 15, 2000, January 12, 2005 and February 18, 2014.  If convicted the defendant faces a maximum sentence of twenty years in prison.

The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney M. Beth Leahy.

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

Sonja McQuillar, 50, of New Castle, Delaware was charged today by Indictment with two counts of theft from a program that received federal funds and one count of making a material false statement, announced United States Attorney Zane David Memeger and Philadelphia Inspector General Amy Kurland.

McQuillar was the Director of Health and Information Management at Northern Children’s Services (NCS), a nonprofit organization that provides mental and behavioral health treatment services to children. One of her responsibilities at NCS was to verify the accuracy of consultants’ invoices and submit them for payment.

McQuillar allegedly caused to be prepared consulting invoices for relatives and personal friends who were never consultants for NCS, and for individuals who were consultants for NCS, but for work they did not perform.  According to the indictment, she then forged the names of the recipients to cash the checks.  Between roughly December 2002 and April 2014, McQuillar allegedly obtained approximately $607,067 from NCS through embezzlement and theft.

If convicted the defendant faces a maximum possible sentence of 25 years’ imprisonment, a $750,000 fine, three years’ supervised release and $300 special assessment.

 “Every nonprofit that receives taxpayer funding accepts a responsibility to give charitably with integrity. These funds were designated to help some of Philadelphia’s children who are most in need,” said Inspector General Amy L. Kurland. “I'm grateful for our federal law enforcement partners for their close cooperation in this investigation.”

The case was initiated by a tip to the Philadelphia Office of the Inspector General and was also investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michelle Morgan.          

A federal judge today sentenced Yujie Ding to a year and a day in prison for his role in defrauding NASA’s Small Business Innovation Research (SBIR) Program. U.S. District Court Judge Harvey Bartle III also ordered Ding to pay a fine of $3,000 and restitution of $72,000. Last week, Ding's co-defendant and wife, Yuliya Zotova, was sentenced to 3 months in prison, along with a fine and restitution.

In August 2009 and July 2010, Ding and Zotova submitted proposals to NASA, seeking funding for scientific research. The defendants’ proposals claimed they would conduct the research at their business, ArkLight, and would subcontract some of the work to Lehigh University, where Ding was employed as a professor. Instead, the defendants used ArkLight as a front to funnel federal grant money to themselves for research performed by students and others working under Ding’s supervision at his university lab. The defendants sent invoices to NASA, via interstate electronic transmissions, for research in which the jury found that ArkLight had not participated.

The case was investigated by the National Aeronautics and Space Administration's Office of Inspector General, the Defense Criminal Investigative Service, and the United States Air Force Office of Special Investigations.  It was prosecuted by Assistant United States Attorneys Elizabeth F. Abrams and Gregory B. David.

Alicia O'Brien, 34, of Philadelphia, Pennsylvania was charged today by Indictment with obtaining prescription drugs by fraud announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible sentence of four years in prison, a one-year period of supervised release, a $250,000 fine, and a $100 special assessment.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.                                                               

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

PHILADELPHIA - Reuben Jackson, 52, of Philadelphia, Pennsylvania, pleaded guilty to three counts of bank robbery, for three bank robberies that occurred in Center City Philadelphia in April and May 2016, announced United States Attorney Zane David Memeger and FBI Special Agent-in-Charge Michael Harpster.

 

According to the indictment, on April 29, 2016, Jackson robbed the Citizens Bank at 1515 Market Street in Philadelphia; on May 3, 2016, he robbed the Polonia Bank at 2133 Spring Garden Street in Philadelphia; and on May 9, 2016, he robbed the PNC Bank at 400 Market Street in Philadelphia.

 

 

Naheem Stinnett, age 31, of Philadelphia, Pennsylvania, was charged today by Indictment with possessing a firearm on September 13, 2016, after having been convicted of a felony offense, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum of 10 years in prison, a special assessment of $100, a 3-year term of supervised release, and a potential fine. 

The case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation 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

Lamar Sowell, 26, of Philadelphia, PA was charged today by Indictment with five counts of robbery which interferes with interstate commerce and four counts of using and carrying a firearm in those robberies, announced United States Attorney Zane David Memeger.

It is alleged that Sowell committed the following robberies: 7-Eleven, located at 9001 Frankford Avenue, Philadelphia on October 20, 2014; 7-Eleven, located at 250 South Easton Road, Glenside on November 26, 2015; Sunoco, located at 300 South Easton Road, Glenside, on December 2, 2015; and 7-Eleven, located at 2869 Limekiln Pike, Abington, on December 9, 2015 and April 5, 2016. During all but the first robbery, Sowell is accused of brandishing a handgun. During the final robbery on April 5, 2016, Sowell is accused of firing the gun and striking an employee of the 7-Eleven, shattering the victim’s femur.

If convicted the defendant faces a maximum possible sentence of life imprisonment, a mandatory term of 82 years’ imprisonment consecutive to all other sentences, 5 years supervised release, a $2,250,000 fine, and a $ 900 Special Assessment.

The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, the Plymouth Township Police Department, the Abington Township Police Department, and the Cheltenham Township Police Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.                                                           

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

United States Attorney Zane David Memeger announced that Tanika V. Little, 37, of Philadelphia, was charged in an Indictment[1] with loan application fraud.  According to the indictment, at a time when Little was under the supervision of the United States District Court for the Eastern District of Pennsylvania and awaiting sentencing, Little allegedly submitted a loan application to PNC Bank, N.A. and falsely represented that she was employed by Southeastern Pennsylvania Transportation Authority (SEPTA) and also provided PNC Bank with fraudulent pay stubs in order to influence the actions of the bank upon a $50,400 cash-out refinance loan. 

If convicted the defendant faces a maximum possible sentence of 40 years’ imprisonment, five years’ supervised release, a $1,000,000 fine, and a $100 special assessment. 

The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Anita Eve.

 

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

Tracey Moses, 47, of Sicklerville, New Jersey was charged in an indictment1 returned today with ten counts of wire fraud, announced United States Attorney Zane David Memeger. According to the indictment, from August 2010 until early December 2013, when she was fired for suspected embezzlement, defendant Moses worked as an accounting and payroll administrator for a market planning and research firm in Philadelphia. The indictment charges that from April 2011 until October 2013, defendant Moses schemed to defraud that company, identified in the indictment as Company A, by writing herself unauthorized electronic checks drawn on three of Company A’s bank accounts, in the total amount of approximately $117,000. The indictment charges further that defendant Moses also schemed to defraud the Commonwealth of Pennsylvania Department of Labor by applying for and obtaining unemployment benefits while she was actually working for Company A and her next two employers, identified in the indictment as Company B and Company C.

If convicted, defendant Moses faces a substantial prison term, restitution and fines, and is subject to criminal forfeiture proceedings.

The case was investigated by the Federal Bureau of Investigation and the United States Department of Labor - Office of the Inspector General, with assistance from the  Pennsylvania Department of Labor and Industry Internal Audit Division, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.

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

 

Benjamin Lomas, 46, of New Hope, PA, plead guilty today to an Information charging evasion of payment of tax, announced United States Attorney Zane David Memeger.  According to the information, Lomas willfully attempted to evade the full amount of income tax he owed for calendar years 2009 through 2012 by filing false information with the IRS and diverting money from his business for personal expenses.

If convicted, the defendant faces a statutory maximum sentence of five years in prison, a fine, a $100 special assessment, and up to three years of supervised release.

The case was investigated by IRS Criminal Investigations and is being prosecuted by Assistant United States Attorney Tomika N.S. Patterson.

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

PHILADELPHIA- Douglas Rae, 59, plead guilty today to wire fraud, mail fraud and money laundering for defrauding his employer, QVC, a television based retail company, announced United States Attorney Zane David Memeger.

Rae, while employed as a manager in the Lighting Department at QVC, concocted multiple schemes to falsely invoice his employer of approximately $1.8 million.

Rae faces a statutory maximum of 130 years’ imprisonment, a fine of $1.75 million, supervised release and a $700 special assessment.  The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Denise S. Wolf

PHILADELPHIA – Zahar “Alex” Tkach of Bensalem, PA, was sentenced today by U.S. District Court Judge Harvey Bartle III to 60 months’ incarceration, 3 years’ supervised release and $1,250,930 in restitution in connection with a scheme to defraud Medicare by charging for unnecessary ambulance services, obstructing two federal audits and laundering criminal proceeds. The scheme ran from approximately June 2008 through April 2012. 

As described in the 19-count indictment, Zahar Tkach owned two ambulance companies, NovaCare Ambulance Services, Inc. (also called “Novocare Ambulance”) and Cardiac Care Ambulance, Inc. (“Cardiac Care”), operating primarily in Philadelphia and the surrounding counties. The two ambulance companies shared resources, including employees and patients. Tkach managed both companies’ operations, finances and billings. Tkach transported dialysis patients who needed treatments three times per week, thereby allowing him to bill Medicare extensively for those patients, when the ambulance services were not medically necessary for those patients. He also billed Medicare for paratransit services by falsely claiming that the patients were transported by ambulance. When Medicare audited the 2011 billings of Novocare and Cardiac Care, the defendant obstructed the audits by altering, and directed employees to alter, ambulance transport records and he falsified medical authorization forms, all of which he submitted to the Medicare auditors to support the fraudulent billings.

This case was investigated by the FBI and the Department of Health and Human Services-Office of the Inspector General and prosecuted by Assistant U.S. Attorney Andrea Foulkes.

James Walker, 28 of Reading, PA was charged today by Indictment with possession of child pornography, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible sentence of twenty years imprisonment, a mandatory minimum of 10 years, a $250,000 fine, a mandatory minimum 5 years supervised release, a $100 special assessment, and a $5,000 special assessment. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Special Assistant United States Attorney Rosalynda M. Michetti.

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.                                                                

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

Hector Cisneros-Ibarra, a/k/a “Hector Ibarra Cisneros,” 38, of Landenberg, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about October 22, 2014, Cisneros-Ibarra, 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 May 5, 2006, July 6, 2006 and November 4, 2008.

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

The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Mary Kay Costello.

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

            An Information[1] was unsealed today charging Barry Horrow, 68, of Glenn Mills with 4 counts of bank fraud, announced United States Attorney Zane David Memeger.

            The information alleges that Horrow, a Certified Public Accountant who owned and operated his own accounting company, Horrow and Associates, which operated in both Delaware and West Chester Counties, committed bank fraud by helping one of his clients, George Barnard of Newtown Square (who owned Capital Financial Mortgage Corporation (“CFMC”) and who was charged previously in an indictment with various offenses stemming from a $13 million fraud scheme who owned) to defraud lenders into issuing mortgages for 3 multi-million dollar New Jersey Shore beach mansions and a yacht based on false information. Specifically, the information alleges that Horrow repeatedly provided false tax returns for Barnard to submit to lenders on which Horrow inflated Barnard’s income by hundreds of thousands of dollars, when Horrow knew that the lenders were going to be relying upon the inflated income figures in approving Barnard’s loan requests. The information also alleges that Horrow purported to conduct audits of CFMC, when in reality Horrow did not conduct any audits, and that he issued false audit reports that he knew were being submitted to lenders to help secure loans for both CMFC and Barnard.

            Horrow faces a maximum sentence of 120 years’ imprisonment, a five-year period of supervised release, a $4,000,000 fine, a $400 special assessment, and a likely advisory sentencing guideline range of 51 – 63 months’ imprisonment. The information also seeks the forfeiture of over $2,965,000.

            The case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development, Office of Inspector General, and the Internal Revenue Service, Criminal Investigative Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

 

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

Luz Ramos-Correa, 39, of Landisville, PA, Marta Ruiz-Correa, 28, of Penuelas, Puerto Rico, and Julian Ruiz-Acosta, 58, of Penuelas, Puerto Rico, were charged by indictment, unsealed today, with conspiracy and fraudulent transfer of an identification document, and Luz Ramos-Correa was further charged with aggravated identity theft and fraudulent possession of five or more identification documents, announced United States Attorney Zane David Memeger.  According to the indictment, the defendants – all family members – fraudulently obtained birth certificates and U.S. Social Security cards belonging to U.S. citizens residing in Puerto Rico, and then sold these identification documents for profit to buyers in Pennsylvania and Puerto Rico. 

If convicted of all charges, Luz Ramos Correa faces a mandatory minimum term of two years in prison, a maximum statutory sentence of eighty-two years’ incarceration, a fine of up to $1,500,000, a special assessment of $700, and three years of supervised release; Marta Ruiz-Correa and Julian Ruiz-Acosta each face a maximum statutory sentence of twenty years’ incarceration, a fine of up to $500,000, a special assessment of $200, and three years of supervised release.

The case was investigated by Homeland Security Investigations, the Pennsylvania State Police, the United States Postal Inspection Service, the Philadelphia Police Department, and the Pennsylvania Department of Transportation.  It is being prosecuted by Assistant United States Attorney James A. Petkun.

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

                                                                             

Matthew Handy, 24, of Trainer, PA, was charged today by indictment with stalking another person via the Internet, announced United States Attorney Zane David Memeger. Handy is charged with cyberstalking, two counts of interstate use of telecommunications device to willfully convey a threat, and two counts of false statements.

According to the indictment, Handy was involved in a romantic relationship with the victim that ended on January 17, 2014.  From that date until February 24, 2014, Handy allegedly sent anonymous electronic mail messages to law enforcement agencies falsely claiming that the victim was engaging in child exploitation and molestation, was using drugs, was building pipe bombs, and a family member was supplying fertilizer and metal pipes to make the explosives, and the victim intended to use the explosives, all of which he knew was false. For example, on February 10, 2014, Handy allegedly sent an anonymous email to the Atlantic County (NJ) Prosecutor’s Office “Crime Stoppers” website claiming the victim and another individual intended to attack a middle school in New Jersey with guns and a pipe bomb on the morning of February 10, 2014, which he knew was false.  As a result of the threat, the school of 393 students and 58 faculty had to be evacuated while the school was searched by the New Jersey State Police’s K-9 Unit and Bomb Squad.  On February 9, 2014, Handy allegedly sent an anonymous email to the Department of Homeland Security alleging that the victim and the victim’s immediate family were obtaining materials to make explosives, one of the family members was supplying the bomb making materials, and that the victim was going to use the explosives against individuals, all of which he knew was false.

On January 28, 2014, Handy allegedly sent an anonymous email to the Department of Homeland Security alleging that the victim was selling drugs and explosives to people, threatened to use explosives at undisclosed locations, kept explosives somewhere in Atlantic City, New Jersey, and threatened to use an explosive at an unidentified mall in New Jersey, which Handy knew was false.  On January 27, 2014, Handy allegedly sent an anonymous email to the New Jersey Office of Homeland Security and Preparedness stating that the victim intended to use explosive devices against the Salvation Army in Chester, Pennsylvania and the Chester (PA) Police Headquarters, which he knew was false. 

If convicted of all charges, Handy faces a possible advisory sentencing guideline range of 63 to 78 months in prison with a statutory maximum 38 years, a $500 special assessment and up to three years of supervised release.  He could also be ordered to pay restitution to the victim for any physical, psychiatric or psychological care, and possible fines.

The case was investigated by Homeland Security Investigations (HSI), New Jersey State Police, and the FBI.  It is being prosecuted by Assistant United States Attorney Anita Eve.                                                                                                   

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

William Joseph Boyle, 53, of Bala Cynwyd, Pennsylvania, pled guilty today to five counts of mail fraud, three counts of wire fraud, one count of securities fraud, and one count of investment adviser fraud, announced United States Attorney Zane David Memeger.

As part of his guilty plea, Boyle admitted that he defrauded clients, most of whom were elderly, out of over $400,000, convincing them to invest with him and utilize his services as a financial adviser by holding himself out as an investment adviser and promising to invest their money in stocks, Pennsylvania municipal bonds, interest bearing investments, and real estate, while in reality Boyle spent almost all of their money on himself, including giving client money to his wife and ex-wife, paying his children’s Catholic school tuition; and purchasing a liquor license for, and purchasing, renovating, and operate a bar called "The Blarney South Bar and Grille," which Boyle renamed "The Boyler Room," located in Philadelphia, Pennsylvania.

Boyle admitted that he continued to hold himself out as a stock broker and investment adviser and defraud clients even after his licenses were suspended and after he was permanently barred by FINRA from working as a stock broker or otherwise associating with a firm that sold securities to the public, and failed to disclosing to his clients that he had been barred and his licenses suspended.

Sentencing has been set for November 30, 2016. Boyle faces a maximum sentence of 185 years’ imprisonment, a five-year period of supervised release, a $7,010,000 fine, and a $1,000 special assessment, and a likely advisory sentencing guideline range of 41 – 51 months’ imprisonment.

The case was investigated by the Department of Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

Philadelphia - A jury yesterday convicted Dr. Frederick Douglas Burton, 68 of Conshohocken of two counts of mail fraud and attempted mail fraud for lying to help a friend apply for social security disability benefits.

In 2013, Dr. Burton signed two letters which falsely stated that his friend, another doctor named Dennis Erik Fluck Von Kiel, was suffering from post-traumatic stress disorder and could not work as a result.  The letters falsely stated that Dr. Burton had been treating Dr. Von Kiel for PTSD for seven years, and that Dr. Von Kiel's condition had recently worsened to the point where he could no longer work and would not be able to work for at least the next twelve months.  Dr. Burton was charged with mailing the letters to lawyers who specialized in bringing claims for social security disability benefits.

Dr. Von Kiel had previously pleaded guilty to 17 charges, including the same two mail fraud and attempted mail fraud charges for which the jury convicted Dr. Burton. Dr. Von Kiel is serving a 41-month sentence.

Sentencing of Dr. Burton is scheduled for December 5, 2016.

The case was investigated by IRS Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.

 

Christopher Haas, 60 of Wayne, Pennsylvania was charged today by Information with accessing an internet website with the intent to view child pornography, announced United States Attorney Zane David Memeger.  The information charges that Haas accessed an internet webpage on March 21 and 22, 2016, with the intent to view child pornography.     

If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, a $250,000 fine, forfeiture, restitution, at least 5 years of supervised release up to a lifetime of supervised release, and special assessments of $100 and $5,000.

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 Homeland Security Investigations, with the assistance of the Radnor Police Department and the Villanova University Department of Public Safety, and is being prosecuted by Assistant United States Attorney Albert S. Glenn.

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

PHILADELPHIA – Stephen A. Monaco, D.P.M., 59, of Broomall PA pleaded guilty to health care fraud today for perpetrating a $5 million scheme to defraud Medicare, Medicaid and four private victim insurance companies, announced United States Attorney Zane David Memeger. 

In a hearing before United States District Court Judge Juan Sanchez, Monaco admitted that he had committed the fraud using his practice, A Foot Above Podiatry, Inc. (“A Foot Above”), located in Havertown PA.  Between January 2008 and October 31, 2014, Monaco submitted fraudulent claims to Medicare, Medicaid and four private victim insurance companies for podiatric procedures that were not provided, and podiatric procedures that were not performed, including injections, debridement (removal of dead, infected or foreign material to promote wound healing) and nail avulsions (removal of the entire or partial nail plate). 

Monaco faces 10 years in prison, $5,000,000 restitution, substantial fines and criminal forfeiture.  In addition, as a condition of his plea, Monaco surrendered his DEA license.  Sentencing is set for November 30, 2016.

The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of the Inspector General, the Drug Enforcement Administration, the Office of Personnel Management Office of the Inspector General, and the United States Railroad Retirement Board Office of Inspector General, and is being prosecuted by Assistant United States Attorneys M. Beth Leahy and Jennifer B. Jordan.

Christopher Mailloux, 25, of Reading, PA, was sentenced today to 15 years’ imprisonment, following his guilty plea to two counts of production of child pornography and two counts of possession of child pornography, announced United States Attorney Zane David Memeger. The Honorable Lawrence F. Stengel also sentenced the defendant to 15 years’ supervised release, restitution in the amount of $5062, and a $400 special assessment.

            According to court papers, Mailloux, who served in the U.S. Army Reserves in Afghanistan, was apprehended in the course of an investigation of his roommate, Danny Ray Evans, Jr., for the online harassment of minors.  Mailloux’s computer contained thousands of images of child pornography depicting infants and toddlers, and he manufactured images of an infant and toddler who were being babysat in his residence by a female housemate.

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

The case was investigated by the Federal Bureau of Investigation and the Berks County Detectives, with assistance from the Berks County District Attorney's Office, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.

PHILADELPHIA – An indictment was filed today charging a doctor and his office manager in a scheme to sell commonly abused prescription drugs in exchange for cash payments.  Charged in the conspiracy are: Dr. Clarence Verdell, 66, of Voorhees, NJ and Rochelle Williams-Morrow, 37, of Philadelphia, PA.  The indictment includes charges of conspiracy to distribute controlled substances, distribution of controlled substances, health care fraud, and money laundering and was announced by United States Attorney Zane David Memeger, Drug Enforcement Administration Special Agent-in-Charge Gary Tuggle, and Special Agent-in-Charge Nick DiGuilio with Health and Human Services Office of Inspector General.

The indictment alleges that Dr. Verdell formerly worked for Dr. Alan Summers who was also recently indicted for illegally selling prescriptions.  After working for Dr. Summers for approximately six months, Dr. Verdell opened his own clinic in Philadelphia and followed Dr. Summers’s illegal practices of selling prescriptions for cash.  Dr. Verdell attempted to market his clinic to Dr. Summers’s patients by promising them more drugs for less money.  Dr. Verdell also did not require his patients to attend any form of counseling for their substance abuse issues.  Dr. Verdell sold prescriptions for Suboxone and Klonopin in exchange for cash payments. Suboxone is a brand name for a drug used to treat opiate addiction. Dr. Verdell did not conduct medical examinations or mental health examinations as required by law in order to legally prescribe these controlled substances.  Dr. Verdell also assisted his customers in obtaining health insurance benefits for these illegally prescribed controlled substances by providing false information to health insurance companies so that his customers could fill the prescriptions using their health insurance. Many of the customers who frequented this clinic were, in fact, drug dealers or drug addicts who sold the prescribed medications. In addition, Dr. Verdell provided prescription pads to his office manager, Rochelle Williams-Morrow, to use to provide prescriptions to cash paying customers when Dr. Verdell was not present in the office.  During the duration of the conspiracy, Dr. Verdell illegally sold over $1 million worth of controlled substances.

“We have a public health crisis in this county involving prescription drug abuse that is exacerbated by doctors like these defendants,” said Memeger. “Every doctor who abandons his or her ethics to engage in the prescription-for-pay culture is breaking the law. They need to ask themselves whether it is worth the money to put people in danger, to risk the loss of their medical licenses, and to lose their freedom. Our office will continue to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.” 

“These doctors capitalized on the addiction epidemic that is typically responsible for numerous deaths across our region,” said Tuggle.  “The DEA will remain vigilant in pursuing investigations in an effort to combat this serious public health crisis.”

“It is a vicious cycle when doctors we trust to treat addiction actually fuel the epidemic for profit,” said DiGiulio. “In this case it is alleged that the defendants were: selling prescriptions for dangerous controlled substances; pretending to follow established standards of care to treat addicts; and then fraudulently causing government health care programs to pay for the unnecessary prescriptions.  We will continue to work with our partners to dismantle dangerous pill mills, to protect government funds, and to keep the public safe.”

If convicted of all charges, each defendant faces a possible prison term, fines, restitution, special assessments, and a term of supervised release.

The case was investigated by the Drug Enforcement Administration, the Department of Health and Human Services Office of the Inspector General, and the Internal Revenue Service Criminal Investigations, with assistance from the Philadelphia Police Department and the Pennsylvania Bureau of Narcotics Investigations.  It is being prosecuted by Assistant United States Attorney Robert Livermore.

PHILADELPHIA – Dr. Yasin Khan, Dr. Elizabeth Khan, Dr. Dong Ko, Westfield Hospital and affiliated entities including a related pain clinic, Lehigh Valley Pain Management, have agreed to pay $690,441 to the federal government to resolve allegations that they violated the False Claims Act by submitting false health care billings to the Medicare, Federal Employees Health Benefits, and United States Department of Labor-Office of Workers’ Compensation programs. 

The settlement resolves allegations in a complaint filed in federal court in the Eastern District of Pennsylvania by a whistleblower under the qui tam provisions of the False Claims Act.  The qui tam provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery.  The whistleblower, Margaret Reynard, will receive approximately $124,000 of the recovery.

In the qui tam complaint, the whistleblower alleged that the defendants submitted claims to the federal government to receive reimbursement for services performed by non-physicians as “incident to” the services of supervising physicians when, in fact, supervising physicians were away from the office or otherwise incapable of supervising.  Billing services as “incident to” a physician’s supervision commands a higher reimbursement rate than billing those same services without physician supervision.  Because physicians were not available to provide the supervision that the government programs required, the whistleblower alleged that defendants’ “incident to” billing was improper and resulted in false claims during the period from July 1, 2007 through December 31, 2013.  There has been no determination of civil liability.  The settled civil claims are allegations only. 

As part of the settlement agreement, the defendants also agreed that, for the next thirty months, they will not submit claims to federal payors for any services performed by non-physician providers under the rate that applies for services rendered “incident to” the services of a physician, regardless of whether or not the claims could be billed properly in that manner. 

This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the U.S. Office of Personnel Management Office of the Inspector General, the U.S. Postal Service Office of the Inspector General, and the U.S. Department of Labor Office of the Inspector General.  It was handled by Assistant United States Attorneys Gregory B. David and Michael S. Macko.   

 

An Indictment[1] was filed today charging Anthony Poole, 35, of Philadelphia, Pennsylvania with possession of firearm by a convicted felon, announced United States Attorney Zane D. Memeger.

 

If convicted, defendant faces a maximum of ten years imprisonment, three years of supervised release, and a substantial fine.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Ewald Zittlau.

 

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

Miguel Gutierrez, 42, of Bernville, Pennsylvania, was sentenced today to nine months in prison, and ordered to pay restitution in the amount of $7,122.86 and a fine of $4,000, pursuant to his prior guilty plea to three counts of wire fraud, announced United States Attorney Zane David Memeger. The defendant, a former Claims Representative in Social Security Administration’s Reading field office, used his access to Social Security’s computer systems at his job to redirect Social Security benefits payable to others, to a bank account in his own name. Defendant Gutierrez redirected several benefit payments before Social Security’s internal control systems detected his theft. The Honorable Jeffrey Schmehl ordered the defendant to repay the Social Security Administration for all stolen funds, and pay a $4,000 fine in addition to that restitution. In imposing the prison sentence, the court noted that the defendant’s former position as a government employee, entrusted with access to Social Security’s computer system, required a term of imprisonment.

The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.

PHILADELPHIA - Northampton Hospital Company, LLC d/b/a Easton Hospital (“Easton Hospital”) has agreed to resolve allegations relating to improper billing for inpatient procedures performed at Easton Hospital.  Easton Hospital provides inpatient and outpatient healthcare services in Easton, Pennsylvania.  The hospital’s services include cardiovascular, orthopedic, oncology, maternal, child health, pediatric, physical therapy rehabilitation, and mental health services.  In addition, it offers surgical care, emergency care, occupational and speech therapy, wound healing management, imaging, radiology, home health, hospice, and laboratory services. 

            According to the United States, from January 1, 2008 through June 27, 2014 Easton Hospital billed inpatient Medicare Part A claims using particular primary diagnosis codes that did not justify admission to an acute care hospital because the codes correspond primarily to long-term, stable conditions.  According to the United States, these primary diagnosis codes were used to justify inpatient admissions for routine procedures that should have instead been performed on an outpatient basis.  Had these procedures been performed on an outpatient basis, the procedures would have been billed at a lower rate.  Easton Hospital has agreed to pay $325,000 to settle the matter. 

The matter was investigated by the Department of Health Office of the Inspector General and Human Services and Healthcare Analyst George Niedzwicki of the U.S. Attorney’s Office.  The matter was handled by Assistant U.S. Attorney Veronica J. Finkelstein.

The settled civil claims are allegations only.  There has been no determination of civil liability, and Easton Hospital denies any such liability.     

 

PHILADELPHIA - Aaron Dashawn Caple, 23, of Philadelphia, Pennsylvania, was sentenced today by United States District Judge Eduardo C. Robreno to 54 months in federal prison following Caple’s convictions of bank fraud and aggravated identity theft offenses, announced United States Attorney Zane David Memeger.

Caple pled guilty on April 13, 2016 and admitted to using social media services Twitter and Facebook to solicit persons to provide him with their bank ATM cards and PIN numbers so that he could deposit bad checks into their accounts and withdraw the funds before the banks and other financial institutions realized that the checks were bad.  Caple went to numerous ATM machines in Philadelphia and the surrounding area to make the deposits and withdrawals, and also used the ATM cards and PIN numbers at various stores, including Walmart, to purchase goods and obtain cash back prior to the banks discovering that the checks were bad.  Caple received more than $47,000 as a result of the scheme.   In addition to the prison term, he was ordered to pay restitution of $47,000.25 and must serve five years of supervised release.

The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

Steven Rice, 41, of Barrington, NJ, was charged by Indictment, filed August 4, 2016, with four counts of bank robbery, announced United States Attorney Zane David Memeger.  The indictment specifically charges that Rice robbed or attempting to rob: (i) the Beneficial Bank, 1600 Chestnut Street, Philadelphia, PA on July 27, 2015; (ii) the Republic Bank, 1601 Walnut Street, Philadelphia, PA, on October 7, 2015; (iii) the Firstrust Bank, 1515 Market Street, Philadelphia, PA on March 18, 2016; and (iv) the Wells Fargo Bank, 2005 Market Street, Philadelphia, PA, on June 30, 2016.

If convicted, Rice faces a maximum possible sentence of 80 years imprisonment.   

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

                                                                             

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

Julio Stewart, 31 years old of Bethlehem, Pennsylvania, was sentenced today by the Honorable Jeffrey L. Schmehl, Judge, United States District Court, to 84 months’ imprisonment, three years supervised release, a $2000 fine, and $100 special assessment fee, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli.  On May 2, 2016, Stewart pled guilty to one count of possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli.  The Indictment charged that on May 6, 2015, in Bethlehem, the defendant possessed a Ruger, Model P94, 9mm handgun, with an obliterated serial number, loaded with ten live rounds of ammunition, after having previously been convicted in a court of the Commonwealth of Pennsylvania of a crime punishable by imprisonment for a term exceeding one year.

The case was investigated by the Federal Bureau of Investigation, Allentown Field Office, the Northampton County District Attorney’s Office, and the Bethlehem Police Department, and is being prosecuted by Assistant United States Attorney John Gallagher and Special Assistant United States Attorney Kelly Lewis Fallenstein.