Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Philadelphia Bar Owner and Former Investment Advisor Plead Guilty to Defrauding Clients of over $400,000 in Order to Purchase A South Street BarRead the Press Release
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 Doctor Convicted in Scheme to Defraud Social SecurityRead the Press Release
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.
Wayne Man Charged with Intent to View Child PornographyRead the Press Release
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.
Delaware County Podiatrist Pleads Guilty to $5 Million Health Care FraudRead the Press Release
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.
Former U.S. Army Reservist Sentenced for Production of Child PornographyRead the Press Release
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.
Fourth Suboxone Doctor and Office Manager Indicted for Illegally Selling Prescriptions of Suboxone and KlonopinRead the Press Release
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.
Doctors and Medical Facilities in Lehigh Valley Pay $690,441 to Resolve Healthcare Fraud AllegationsRead the Press Release
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.
Philadelphia Man Charged with Possession by A Convicted FelonRead the Press Release
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.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Social Security Employee Sentenced to Nine Months in Prison for Theft of BenefitsRead the Press Release
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.
Healthcare Settlement Announced with Easton HospitalRead the Press Release
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.
Judge Sentences Philadelphia Man Who Used Twitter and Facebook for Bank Fraud and Identity TheftRead the Press Release
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.
Indictment Charges New Jersey Man in Center City Philadelphia Bank RobberiesRead the Press Release
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.
Bethlehem Felon in Possession of A Firearm Sentenced to 84 MonthsRead the Press Release
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.
Third Circuit Affirms United States’ Forfeiture and Ownership of Double Eagle CoinsRead the Press Release
PHILADELPHIA – United States Attorney Zane David Memeger announced that the United States Court of Appeals for the Third Circuit, sitting en banc, issued a ruling on Monday, August 1, 2016, concluding that the United States had a right to keep ten 1933 $20 gold coins that have been the subject of years of litigation. In 2011, a jury had determined that the coins were forfeited to the United States as stolen property from the United States Mint, and District Court Judge Legrome D. Davis additionally declared that the coins had always been the property of the United States. In 2015, a panel of the Court of Appeals vacated that decision, holding that government employees had violated a deadline for administrative action to obtain adjudication of the coins’ ownership. Today’s decision asserts that the government did not violate any deadline, and reinstates the decisions of the jury and the district court validating the government’s title to its property.
The 1933 coins, known as Double Eagles, are twenty dollar gold pieces that were manufactured by the United States Mint in 1933. The coins were never released to the general public, however, because President Franklin Delano Roosevelt issued Executive Orders taking the United States off the gold standard, prohibiting the Mint from releasing any gold, and requiring all persons to redeem their gold coins for paper currency or non-gold coin. Nevertheless, a number of 1933 Double Eagles gold pieces have surfaced over the ensuing decades.
The Court of Appeals noted in its opinion that the United States Secret Service has investigated this matter since the government first became aware of a 1933 Double Eagle being put up for public auction in 1944. The United States has recovered every 1933 Double Eagle that it was able to locate, including one coin that the government had inadvertently permitted to be exported to King Farouk in Egypt in 1944. That coin was brought back to the United States by a London coin dealer in 1996. It was eventually sold at auction for $7.6 million, with the government and the coin dealer splitting the proceeds.
The Court also noted that the Secret Service investigation determined that all of the recovered pieces were traced back through the Secret Service investigation to Israel Switt, a Philadelphia merchant. After the sale of the Farouk coin, Mr. Switt’s daughter, Joan Langbord, reported finding ten of the coins in a safe deposit box that had previously belonged to her mother.
In its decision, the en banc Court of Appeals affirmed that the ten coins are property of the United States, finding that “the evidence at trial demonstrated overwhelmingly that no 1933 Double Eagle ever left the Mint through authorized channels and any that did were either stolen or embezzled.” The Court noted that the Mint’s records were remarkably detailed, to the level of showing a transaction involving three pennies and their year of minting.
Zane David Memeger, the United States Attorney, stated: “We are gratified for the Third Circuit’s decision recognizing the United States’ ownership of these rare coins.” Rhett Jeppson, Principal Deputy Director for the United States Mint, stated: “We appreciate the Court’s decision confirming that these national treasures are and always have been property of the United States Mint. Today’s decision is a victory not only for the integrity of government property and the rule of law, but for the integrity of the numismatic hobby.”
The case was investigated by U.S. Secret Service, with the assistance of the U.S. Mint Police, and presented by Assistant United States Attorneys Jacqueline Romero, Nancy Rue, and Joel Sweet. The appeal was argued by Assistant United States Attorney Robert A. Zauzmer.
UNITED STATES ATTORNEY'S OFFICE Contact: Michele Mucellin
EASTERN DISTRICT, PENNSYLVANIA Media Contact
Suite 1250, 615 Chestnut Street 215-861-8218
Philadelphia, PA 19106
Philadelphia Man Charged with Wire FraudRead the Press Release
Andrew Heineman, 30, of Philadelphia, PA, was charged yesterday by Information1 with multiple counts of wire fraud, announced United States Attorney Zane David Memeger. The indictment alleges that in April 2015 through August 2015, Heineman stole money from his employer, Genji Sushi, by issuing unauthorized checks to himself and depositing them into his personal bank account. Some of these ill-gotten funds purchased a Chevrolet Tahoe, which has since been seized by the government.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Denise S. Wolf.
1An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former South Street Headhouse District Board Chairman Charged with Illegally Using District FundsRead the Press Release
Daniel Christensen, 42, of Philadelphia, PA was charged today by Information1 with one count of wire fraud in connection with a scheme that defrauded the South Street Headhouse District (“SSHD”) while he was Chairman of the Board, announced United States Attorney Zane David Memeger.
Daniel Christensen, who owned and operated Copabanana and Redwood, illegally withdrew funds from various SSHD accounts to use to float his own business accounts. During the course of the scheme, from approximately November 2014 to June 2015, Christensen withdrew approximately $1.4 million from SSHD accounts which were subsequently replaced.
If convicted, the defendant faces a statutory maximum sentence of 20 years in prison, restitution, a period of supervised release, a $100 special assessment, and a possible fine.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
1An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Reading Man Charged with Production of Child PornographyRead the Press Release
Sean Fager, 51, of Reading, PA, was charged today by Indictment1 with two counts of production of child pornography, one count of transportation of child pornography, and two counts of possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted, the defendants face a mandatory minimum sentence of fifteen years’ imprisonment and a maximum sentence of thirty years’ imprisonment on each of counts one and two, a mandatory minimum sentence of five years’ imprisonment and a maximum sentence of twenty years imprisonment on count three, a maximum sentence of 20 years’ imprisonment on each of counts four and five, a $1,250,000 fine, a mandatory minimum period of five years up to lifetime period of supervised release, and a $500 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The case was investigated by the Federal Bureau of Investigation, the 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.
[1] An Information, Indictment or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Charged with Robbery of Center City Philadelphia RestaurantRead the Press Release
James Parker, 50, of Philadelphia, Pennsylvania was charged today by Indictment1 with robbery which interferes with interstate commerce and using, carrying, and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney Zane David Memeger. The charges arise from the defendant’s violent robbery of the Tavern on Broad restaurant, located at 200 S. Broad Street in Philadelphia, Pennsylvania, during which, the Indictment alleges, the robber held a gun to the back of the victim employee’s neck, beat him repeatedly in the head with a gun, before forcing him to open the business’ safe, from which he stole approximately $8,000.
If convicted the defendant faces a maximum possible sentence of life imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
[1] An Information, Indictment or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Prison Guard Sentenced to 50 Months for Contraband SmugglingRead the Press Release
PHILADELPHIA – John Wesley Herder, 50, of Philadelphia, PA, was sentenced today to 50 months in prison for delivering contraband to inmates at the Curran-Fromhold Correctional Facility (CFCF), in Philadelphia, where he worked at the time. On October 16, 2013, Herder smuggled past prison security at the CFCF a cellular telephone and 100 pills, represented to contain OxyContin, in exchange for $1,000. Then, on January 15, 2015, Herder again smuggled past prison security at the CFCF 100 pills, represented to contain OxyContin, in exchange for $1,000. When the FBI questioned Herder about his contraband smuggling activities, Herder falsely stated that he had never brought contraband into the CFCF. On January 20, 2016, Herder pleaded guilty to one count of attempted extortion under color of official right, one count of attempted distribution of controlled substances, and one count of making false statements to federal law enforcement officers.
In addition to the prison term, U.S. District Court Mark A. Kearney ordered a $1,000 fine, three years of supervised release, a $1,000 forfeiture money judgment, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Department of Corrections. It is being prosecuted by Assistant United States Attorney Kevin R. Brenner.
Folcroft Man Charged with Child PornographyRead the Press Release
Jeffrey Keagle, 48 of, Folcroft, PA was charged today by Indictment1 of distribution, receipt, and possession of a collection of more than 75,000 images and videos of children being sexually abused and in sexually explicit positions on various dates in 2015 and 2016 announced United States Attorney Zane David Memeger. Keagle is currently incarcerated in Delaware County on local charges and will be transported for his initial appearance in Magistrate Court in the Eastern District of Pennsylvania.
If convicted the defendant faces a maximum possible sentence of 80 years’ incarceration, a 5 year mandatory minimum, $1,000,000 in fines, and a $60,000 mandatory special assessment.
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 is being prosecuted by Assistant United States Attorney Michelle Rotella.
[1] An Information, Indictment or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Allentown Woman Sentenced to Three Years Prison for Straw PurchasesRead the Press Release
Nickaury DeJesus, a/k/a Nickaury DeJesus-Montanez, 22 years old, of Allentown, Pennsylvania, was sentenced late yesterday to 36 months in prison for straw purchasing five firearms in Lehigh County. DeJesus had pleaded guilty to five counts of making false statements to a federalfirearms licensee in connection with the purchase of five semi-automatic pistols. As she admitted in her guilty plea, DeJesus falsely certified when buying each of the pistols that she was the actual purchaser when, in fact, she was buying them for another person or persons.
Over an approximately month-and-a-half period in April and May 2015, DeJesus straw purchased the five handguns at two federal firearms licensees in Breinigsville and Whitehall, Pennsylvania. Two of those firearms were subsequently recovered during arrests of persons in Allentown and Brooklyn, New York. Another two of the firearms straw purchased by DeJesus were charged in a federal indictment, in which DeJesus was not charged, alleging seven armed robberies of commercial establishments in Allentown in May 2015.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Allentown Police Department and was prosecuted by Assistant United States Attorney Eric Boden with assistance provided by the Lehigh County District Attorney’s Office.
Philadelphia Foreclosure Attorney Charged with Federal Tax FraudRead the Press Release
Drew Alia, 40, a Philadelphia attorney, was charged today in a Criminal Information[1] with willfully failing to file federal income tax returns announced United States Attorney Zane David Memeger.
According to the Information, Drew Alia, was who licensed to practice law in the Commonwealth of Pennsylvania during the period of 2010 through 2013, operated a home mortgage rescue service which offered professional services to home owners who were facing a mortgage foreclosure by obtaining financing to prevent a foreclosure on the home owner’s mortgage. For these services, Drew Alia received fees which he failed to report as gross income on federal income tax returns that he was required, by law, to file for tax years 2010 through 2013.
If convicted the defendant faces a maximum possible sentence 4 years, a fine of $400,000 and a special assessment of $100.00.
The case was investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
[1] An Information, Indictment or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Felon Charged with Possessing Firearm and AmmunitionRead the Press Release
Muadhdhin Bey, age 33, of Philadelphia, Pennsylvania, was charged today by Indictment1 with possessing a firearm and ammunition on March 28, 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.
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lancaster Man Charged in Straw Purchase of FirearmRead the Press Release
Defendant Wilson Bonilla Soliveras, 34 years old, of the City of Lancaster, Pennsylvania, was charged today by Indictment with making a false statement to a federal firearms licensee in the acquisition of a semi-automatic pistol for another person, announced United States Attorney Zane David Memeger.
The indictment1 alleges that on March 4, 2016, defendant Soliveras straw purchased a .40 caliber semi-automatic pistol for another person, who was a convicted felon and therefore prohibited from buying firearms. In making the straw purchase, the indictment alleges, Soliveras falsified a record required to be maintained by the federally licensed firearm dealer, falsely certifying, after being warned that doing so was a crime punishable as a felony under federal law, that Soliveras was the actual buyer of the pistol when he knew that he was buying it for the other person. The indictment alleges that on April 1, 2016, the City of Lancaster Police Department recovered the pistol, which was then loaded with one live round of ammunition in the firing chamber and 14 additional live rounds of ammunition in the magazine, from the actual buyer. After the pistol’s seizure, the indictment alleges, defendant Soliveras falsely reported to police that it had previously been stolen from him. If convicted the defendant faces a maximum possible sentence of 5 years’ imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the City of Lancaster Police Department, and the Lancaster County District Attorney’s Office and is being prosecuted by Assistant United States Attorney Eric B. Henson.
1An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bethlehem Man Charged with Robbery of Check Cashing BusinessRead the Press Release
RAUL RODRIGUEZ, 40 years old of Bethlehem, Pennsylvania, was charged today by Indictment1 with one count of robbery which interferes with interstate commerce, one count of possession of a firearm during a crime of violence, and 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 defendant is alleged to have obstructed, delayed and affected commerce and the movement of articles and commodities in commerce by aiding and abetting the robbery of Envios Giraldo, a check-cashing business located at 331 South New Street in the City of Bethlehem, in the Eastern District of Pennsylvania on November 12, 2014. The defendant and his conspirator possessed a firearm when committing the robbery, and threatened violence against an employee of Envios Giraldo with the firearm, while unlawfully taking $11,140 in United States currency from the business. The defendant is a convicted felon, who is not permitted to possess a firearm in the United States.
If convicted on the robbery which interferes with interstate commerce, defendant Rodriguez faces a maximum possible sentence of 20 years imprisonment, a 3 year mandatory period of supervised release up to a lifetime of supervised released, a $250,000 fine, and a $100 special assessment. If convicted on possession of a firearm during a crime of violence, defendant Rodriguez faces a maximum of life imprisonment with a mandatory minimum 7 years’ imprisonment consecutive to any other sentence imposed, a 5 year period of supervised release, a $250,000 fine, and a $100 special assessment. If convicted on the possession of a firearm by a convicted felon, defendant Rodriguez faces a maximum possible sentence of 10 years imprisonment, a 3 year supervised release, a $250,000 fine, and $100 assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Division, the Northampton County District Attorney’s Office, and the City of Bethlehem Police Department, and is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein and Assistant United States Attorney John Gallagher.
1An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Trio Charged by Superseding Indictment in 30 Illegal Gun SalesRead the Press Release
PHILADELPHIA – A superseding indictment was filed yesterday charging three men with dealing in firearms without a license, announced United States Attorney Zane David Memeger. Darien Montae Thompson, 22, Omar Tarik Davenport, 24, and Sekou Maliek Davenport, 21, all of Philadelphia, are charged with selling guns that were previously reported stolen from homes and vehicles. Thompson and Omar Davenport are also charged with conspiracy, interstate travel in furtherance of dealing in firearms without a license, and possession of a short-barreled rifle; Omar and Sekou Davenport are also charged with possession of a firearm by a convicted felon.
According to the indictment, the defendants illegally acquired firearms in the state of Georgia and transported the firearms to Pennsylvania for illegal sale. Guns that the defendants allegedly sold had been reported stolen from homes in Georgia, Pennsylvania, and South Carolina. Omar Davenport was on state parole, following a felony conviction, during the time of the alleged conspiracy.
If convicted of all charges, Thompson faces a maximum statutory sentence of 55 years in prison and a $700 special assessment; Omar Davenport faces a maximum statutory sentence of 80 years in prison and a $800 special assessment; Sekou Davenport faces a maximum statutory sentence of 50 years in prison and a $500 special assessment. Each defendant also faces supervised release and a possible fine.
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 Mark Miller.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Newtown Square Owner of Mortgage and Title Comapnies Charged with Defrauding Lenders of Almost $13,000,000Read the Press Release
An Indictment1 was unsealed today charging George Barnard, 45, of Newtown Square, with 24 counts of wire fraud, four counts of bank fraud, and three counts of filing a false tax return, announced United States Attorney Zane David Memeger.
The indictment alleges that Barnard, who from 2005 to March 2013 was one of the two owners of Capital Financial Mortgage Corporation ("CFMC"), based in Delaware County, Pennsylvania, and also was the owner of several title companies, defrauded banks out of almost $13 million dollars and instead of using the money to fund mortgage loans for borrowers and pay off the borrowers’ existing mortgages, he took the money for his personal benefit, including buying yachts, luxury cars, multi-million dollar beach homes in Avalon, New Jersey, and paying the salary of a yacht captain. The indictment further alleges that in order to continue to have access to a large pool of money to fund his extravagant lifestyle, Barnard orchestrated a massive fraud scheme, which included selling other banks the mortgages that CFMC had written and representing to the lenders who purchasing those mortgages that they were first mortgages, when in reality they were worthless second mortgages.
The indictment alleges that while the tax returns Barnard filed with the IRS showed hundreds of thousands of dollars in losses, in reality Barnard had more than $2,300,000 in unreported income, and in order to convince other banks to issue mortgage loans to him so he could purchase yachts and multi-million dollar beach homes, Barnard gave false tax returns to
the banks with inflated income figures, and on at least one occasion, told the bank that he was buying the beach home for more than $3,000,000 when in reality the sales price was $2,000,000. The indictment alleges that Barnard was able to conceal this deception by using his own title company to handle the closing of that loan and falsifying closing documents.
The indictment alleged that as a result of Barnard’s actions, lenders suffered losses of more than $12,700,000, and more than 25 borrowers who obtained refinance loans from CFMC were stuck with two mortgages on their homes after Barnard’s companies failed to pay off the borrowers’ existing first mortgages.
Barnard faces a maximum sentence of 669 years’ imprisonment, a five-year period of supervised release, a $12,300,000 fine, a $3,300 special assessment, and a likely advisory sentencing guideline range of 135 – 168 months’ imprisonment.
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.
1 An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Pharmacy Burglar Sentenced to 112 Months ImprisonmentRead the Press Release
Michael Katzin, 35 of Philadelphia was sentenced to 112 months’ imprisonment yesterday by the U.S. District Court Judge Gene E.K. Pratter after having been found guilty by a jury in January 2016 of one count of conspiracy to commit pharmacy burglary, one count of conspiracy to possess with the intent to distribute controlled substances, one count of pharmacy burglary, and one count of possession with the intent to distribute controlled substances, announced United States Attorney Zane David Memeger.
The defendant conspired and agreed with his brothers Harry Katzin and Mark Katzin, both convicted previously, and others known and unknown to the grand jury, to enter Rite Aid pharmacies, including the Rite Aid pharmacy located at 1852 Brownsville Rd, Feasterville-Trevose, Pennsylvania on November 18, 2010, and the Rite Aid pharmacy located at 807 S. 4th Street, Hamburg, Pennsylvania on December 16, 2010, with intent to steal materials and compounds containing any quantity of a controlled substance, including amphetamine salts, dextroamphetamine, fentanyl, methylphenidate, dexmethylphenidate, morphine sulfate, meperidine, oxymorphone, tapentadol, codeine sulfate, hydromorphone, hydrocodone, hydrocodone APAP, hydrocodone chlorpheniram, oxycodone, and oxycodone APAP, each a Schedule II controlled substance; and whose replacement value was not less than $500, and to knowingly and intentionally possess these controlled substances with the intent to distribute them.
As part of its verdict, the jury found the defendant guilty of burglarizing the Rite Aid Pharmacy at 807 South 4th Street, Hamburg, Pennsylvania on December 16, 2010, with intent to steal materials and compounds containing any quantity of a controlled substance, including to Schedule II and other controlled substances, including amphetamine salts, dextroamphetamine, fentanyl, methylphenidate, dexmethylphenidate, morphine sulfate, meperidine, oxymorphone, tapentadol, codeine sulfate, hydromorphone, hydrocodone, hydrocodone APAP, hydrocodone chlorpheniram, oxycodone, and oxycodone APAP; all Schedule II controlled substances; and whose replacement value was not less than $500, and possessed these controlled substances with intent to distribute them.
The case was investigated by agents from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the Southampton Township Police Department, and the Hamburg Borough Police Department, and was prosecuted by Assistant United States Attorney Thomas M. Zaleski.
Nine Year Sentence for Drug and Gun RunnerRead the Press Release
PHILADELPHIA- Kenneth Nesmith, 31, of Philadelphia, was sentenced today to 110 months in prison for his role in an illegal gun trafficking conspiracy as well as a drug trafficking conspiracy.
Nesmith sold four dangerous firearms: 1) a fully automatic machine gun; 2) an SKS style semi-automatic rifle; 4) an AR-15 style semi-automatic rifle; and 4) a 9 millimeter carbine rifle and 59.9 grams of crack cocaine to undercover officers. The operation was brought to a halt by an undercover investigation involving the Bureau of Alcohol, Tobacco, Firearms and Explosives. Nesmith pleaded guilty to conspiracy, gun trafficking, drug trafficking, and two counts of being a felon in possession of a firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by Assistant United States Attorney Jessica Natali.
Man Charged with Robbery of Center City Philadelphia BanksRead the Press Release
Mikey Phang, 29, of Philadelphia, PA, was charged today by Indictment[1] with bank robbery, announced United States Attorney Zane David Memeger. The indictment alleges that the defendant robbed the PNC Bank branch located at 1849 Walnut Street, Philadelphia, Pennsylvania on April 29, 2016, and stole approximately $2,411.98 after presenting a note to the teller demanding cash and representing that he was armed with a gun. The indictment further alleges that the defendant attempted to rob the HSBC Bank branch located at 1027 Arch Street, Philadelphia, Pennsylvania on June 29, 2016, by entering the bank and presenting a note to the teller demanding cash and representing that he was armed with a gun.
If convicted the defendant faces a maximum possible sentence of 40 years’ imprisonment.
The case was investigated by the FBI, and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
[1]An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Souderton Man Sentenced to 15 years for Child PornographyRead the Press Release
PHILADELPHIA- Ian Ranberg, 50, of Souderton, PA, was sentenced today to 15 years in prison for distribution, receipt and possession of child pornography. On August 21, 2013, Homeland Security Investigations agents executed search warrants on Ranberg’s email account and at his home in Souderton, PA and recovered hundreds of thousands of images and videos of child pornography on various electronic devices. On September 23, 2014, Ranberg pleaded guilty to distribution, receipt and possession of child pornography. In addition to the prison term, U.S. District Court Judge Gene E.K. Pratter ordered 10 years of supervised release, restitution of $25,000, and a $400 special assessment.
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 and was prosecuted by Assistant United States Attorney Jessica Natali.
Former Philadelphia Police Officer Pleads Guilty to ExtortionRead the Press Release
PHILADELPHIA - Thomas Vitanovitz, 32, of Philadelphia, PA, plead guilty today to extortion of an alleged drug dealer while working as a Philadelphia Police Officer, announced United States Attorney Zane David Memeger.
Vitanovotz while employed as a Philadelphia Police Officer assigned to the 24th District, seized 50 pills that Vitanovitz believed to be a controlled substance from an individual identified in the indictment as Person 1, under the color of official right.
Vitanovitz faces a statutory maximum sentence of 20 years in prison, a possible fine, supervised release, and a $100 special assessment. The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police
Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.
Florida Investment Adviser Charged with Defrauding Clients of Almost $800,000Read the Press Release
An Indictment[1] was unsealed today charging Sean Donald Premock, 43, of Ft. Lauderdale, Florida, with nine counts of mail fraud, nine counts of wire fraud, one count of securities fraud, and one count of investment adviser fraud, announced United States Attorney Zane David Memeger.
The indictment alleges that Premock, a Florida stockbroker and investment adviser who started his own investment and financial planning companies after being fired by his previous employer for selling investments that were not approved by his employer, used his companies to defraud clients, most of whom were elderly, convincing the clients to invest with him by promising to invest their money in stocks, bonds, annuities, hedge funds, and “safe” investments, while in reality Premock spent most of their money on himself and used some of the money to pay other clients. The indictment further alleges that Premock continued to hold himself out as a stock broker and investment adviser 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 that he failed to disclose the suspension and permanent bar to his clients.
Premock faces a maximum sentence of 385 years’ imprisonment, a five-year period of supervised release, a $9,510,000 fine, and a $2,000 special assessment, and a likely advisory sentencing guideline range of 87 – 108 months’ imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Alleged Concert Promoter and Attorney Plead Guilty to FraudRead the Press Release
Herbert Franklin Green, a 47-year old lawyer from Washington, DC, pled guilty today before the Honorable Juan R. Sanchez to conspiracy to commit wire fraud and wire fraud. Co-defendant Marc Hubbard, 49 years old from Cornelius, NC, pled guilty last Thursday. The defendants pled guilty to perpetrating a scheme to defraud investors in a purported concert promotion business that Hubbard owned called Sports Dimensions, Inc. (“SDI”). Hubbard lied to investors when he represented that their investments were being used to promote well-known artists like Beyonce, JayZ, and Alicia Keys. Instead, their money was being used to pay off previous investors and for the defendants’ own personal use. Green, formerly with Cozen and O’Connor and who also previously worked at the SEC, prepared the promissory notes for the fraudulent investments and provided legitimacy to the scheme. During the course of the scheme, the defendants provided investors with fraudulent documentation to induce them to invest more money and convince them that their investments were secure.
Hubbard, who pled guilty to the eight-count indictment, faces a possible statutory maximum sentence of 160 years’ imprisonment, a three-year period of supervised release, and a $2,000,000 fine or twice the gain or loss. Green who pled guilty to two counts faces a possible statutory maximum sentence of 40 years’ imprisonment, a three-year period of supervised release, and a $500,000 fine or twice the gain or loss. Judge Sanchez scheduled Hubbard’s sentencing for September 29, 2016 and Green’s for October 12, 2016.
This case was investigated by the Postal Inspection Service and Federal Bureau of Investigation and is being prosecuted by Jennifer Chun Barry.
Philadelphia Man Pleads Guilty to KidnappingRead the Press Release
Nathaniel Rodriguez, 41, of Philadelphia, PA pled guilty today to two counts of kidnapping, announced United States Attorney Zane David Memeger. On November 6, 2015, Rodriquez forced victim #1 to accompany him to several ATM machines on South Street in Philadelphia, and to take money from one machine. On November 11, 2015, Rodriguez forced victim #2 to drive him from Center City to ATM machines near Aramingo Avenue and I-95, and attempted to take money from those machines. Rodriguez forced victim #2 to buy him cigarettes before fleeing with the victim’s car and cell phone.
The defendant faces a maximum possible sentence of life imprisonment.
The case was investigated by the Federal Bureau of Investigations and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.
Investment Advisor Charged with Numerous Counts of FraudRead the Press Release
PHILADELPHIA - William Joseph Boyle, 53, of Bala Cynwyd, Pennsylvania, was charged by indictment yesterday with 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.
The indictment alleges that Boyle, a Bala Cynwyd-based stockbroker and investment adviser, 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. The indictment also alleges that Boyle used some of the client funds to make payments to earlier clients who had invested, thereby inducing those earlier clients to believe that their investments were safe and profitable.
The indictment further alleges that Boyle 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.
Boyle faces a possible advisory sentencing guideline range of 57 to 71 months in prison, restitution, a period of supervised release, a possible fine, and a $1,000 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Virginia Man Sentenced to 35 Years in Prison for Kidnapping A Philadelphia Woman Off A City StreetRead the Press Release
PHILADELPHIA - Delvin Barnes, 38, of Charles City County, Virginia, was sentenced today to 35 years in prison for kidnapping. Barnes pleaded guilty to the charge on September 10, 2015. In addition to the prison term, U.S. District Court Judge J. Curtis Joyner ordered a $100 special assessment.
On November 2, 2014, at approximately 9:40 p.m., in the area of 100 W. Coulter Street in Philadelphia, Barnes violently grabbed a 22-year old woman from a sidewalk as she walked home. Barnes dragged the victim down the street and forced her into his car. A video recording capturing the abduction shows the victim struggling with the defendant in her attempt to get away. The victim struck Barnes in the head with a hammer after he forced her into his car. The defendant threatened that if she did not stop fighting, he would kill her.
Barnes drove to Maryland with the victim, bound by her wrists, in the trunk of the car. On November 5, 2015, federal agents arrested Barnes in Jessup, Maryland, and the victim was rescued. She identified Barnes as her abductor.
The case was investigated by the FBI, the Philadelphia Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshal’s Service with assistance from the Charles City County Sheriff’s and Kent County Sheriff’s Offices. It was prosecuted by Assistant United States Attorney Jeanine Linehan.
Philadelphia Man Charged with Trying to Ship Methamphetamine Thru the U.S. MailRead the Press Release
PHILADELPHIA - Nelson Rodriguez, 65, of Philadelphia, Pennsylvania, was charged today by information with attempted possession with intent to distribute and aiding and abetting the attempted possession with intent to distribute methamphetamine, announced United States Attorney Zane David Memeger. The charge arises from the defendant’s involvement in the shipment of methamphetamine using the U.S. Postal Service Priority Mail.
If convicted the defendant faces a maximum possible sentence of 20 years in prison.
The case was investigated by United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
VIP Ambulance Owner Pleads Guilty to False StatementsRead the Press Release
PHILADELPHIA – Bassem Kuran, 23, of Philadelphia, PA, pleaded guilty on June 28, 2016 to criminal Information charging him with false statements in a health care matter, announced United States Attorney Zane David Memeger. The defendant faces a maximum possible sentence of 5 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment. U.S. District Court Judge Gerald J. Pappert scheduled a sentencing hearing for September 30, 2016.
Kuran was the owner and President of VIP Ambulance, a company that provided ambulance services to Medicare beneficiaries seeking dialysis services. Kuran admitted to completing documentation for ambulance runs that did not occur, including documentation for patients who were no longer receiving dialysis or who actually took public transportation to the dialysis clinic. Kuran submitted bills to Medicare for these purported transports, which Medicare paid, and he personally provided copies of the false documentation supporting those bills to Medicare’s auditors in an attempt to justify the fraudulent bills that VIP had submitted.
As a result of the defendant’s false statements, the Medicare program paid more than $66,000 in inappropriate bills.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, 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.
Tax Fraudster Sentenced to PrisonRead the Press Release
PHILADELPHIA – Today, defendant Ronald Allen, 61, of Lansdale, was sentenced to 18 months imprisonment, which he was ordered by U.S. District Court Judge Paul S. Diamond to start serving immediately, and further ordered to pay a $120,000 fine.
The defendant pleaded guilty to an Information charging one count of subscribing a false income tax return. The evidence showed that for the years 2008 through 2012, the gross receipts that the defendant reported in his corporate income tax returns were understated by the following amounts: $150,000, $150,000, $256,248, $351,416, and $307,666. During those same years, the defendant understated the net profits that he reported in his individual returns by precisely the same amounts. Between the years 2008 and 2012, the defendant saved approximately $248,328 in unpaid taxes and collected approximately $36,863 in undeserved tax refunds.
The case was investigated by the IRS-Criminal Investigations, and is being prosecuted by Assistant United States Attorney Kevin Brenner.
Philadelphia Man Charged with Importing GBL from ChinaRead the Press Release
PHILADELPHIA - Anthony Guerriero, 41, of Philadelphia, Pennsylvania, was charged by indictment today with one count of importation of a controlled substance analogue, and one count of importation of a List I chemical, announced United States Attorney Zane David Memeger. According to the indictment, Guerriero illegally imported 8.16 liters of gamma-hydroxybutyric acid (“GBL”), a controlled substance analogue and an illegal List I chemical, into the United States from China
If convicted of all charges, Guerriero faces a maximum statutory sentence of 40 years in prison, a possible fine, a special assessment of $200, and three years of supervised release.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations (“HSI”), U.S. Customs and Border Protection, and members of HSI’s Philadelphia Border Enforcement Security Task Force, including the Pennsylvania Attorney General’s Office’s Bureau of Narcotics Investigations, the Delaware County Criminal Investigations Division, and ICE’s Enforcement and Removal Operations. The case 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.
Jury Finds Philadelphia Doctor Guilty of Running Pill Mill and Causing A Death Through Illegal DistributionRead the Press Release
PHILADELPHIA – A federal jury, late yesterday, found William J. O’Brien III, a doctor of osteopathic medicine, guilty of causing a death through the illegal distribution of a controlled substance and a number of other charges related to the operation of a “pill mill,” announced United States Attorney Zane David Memeger.
“The illegal prescribing of opioid pain medications has led to an epidemic of overdose deaths and heroin addiction throughout the country,” said Memeger. We are pleased that the jury saw through Dr. O'Brien's clown act at trial and concluded that for the sake of profit he distributed opioid pain killers for no legitimate medical purpose, and that he caused the death of a patient through his illegal prescribing practices.”
"We are thankful the jury saw the obvious - that the defendant is a dangerous person exploiting his medical license to operate as a drug dealer," said Special Agent-in-Charge Nick DiGiulio, with HHS-OIG. "We look forward to the day he receives a long prison term. The Department of Health and Human Services Office of Inspector General will continue to work with our partners to protect HHS programs and the beneficiaries from harm."
"The defendant’s behavior and the resulting harm inflicted on our communities is nothing short of disgraceful," said FBI Special Agent-in-Charge William Sweeney. "Our communities are facing a crisis involving prescription and opioid abuse which is only made worse by insiders, like the defendant, who used his degree and position of trust to benefit himself by victimizing vulnerable individuals. He was an integral player in this drug distribution conspiracy. Amid an unprecedented opioid epidemic, the defendant deliberately breached his solemn oath to ‘do no harm,’ and instead dispensed oxycodone and methadone like candy – which he knew would end up on the street – even contributing to a death. I am grateful for the hard work and professionalism demonstrated by the agents and prosecutors who conducted this investigation, and I encourage the public to report any concerns regarding prescription abuse to law enforcement.”
Specifically, the jury returned guilty verdicts on two counts of conspiracy to distribute controlled substances; one count of distribution of controlled substances resulting in death; 117 counts of distribution of controlled substances, that is, oxycodone, methadone, and amphetamines; money laundering conspiracy; conspiracy to commit bankruptcy fraud; and making false statements under oath in a bankruptcy proceeding. The defendant was acquitted of four counts of distribution of controlled substances. A sentencing hearing is scheduled for October 5, 2016. Defendant O’Brien faces a mandatory minimum sentence of 20 years in prison with a maximum sentence of life. The co-conspirators, all of whom pleaded guilty, face substantial prison terms and fines, and are subject to criminal forfeiture proceedings.
Charged in the conspiracy with O’Brien were members of the Pagans Motorcycle Club. The trial evidence showed that between March 2012 and January 2015, O’Brien dispensed, and his coconspirators unlawfully obtained for resale, approximately 378,914 pills which contained 10 mg, 15 mg or 30 mg of oxycodone; and approximately 160,492 methadone pills. The estimated street value of the controlled substances sold by the conspiracy was estimated at approximately $5 million. O’Brien generated for himself an estimated $2 million in cash proceeds from the drug trafficking conspiracy.
As proven at trial, O’Brien conspired with members or associates of the Pagans to distribute large quantities of dangerous and addictive controlled substances for profit. O’Brien and his co-conspirators developed a scheme whereby so-called “patients” were recruited, would pay O’Brien $200 cash, and would receive medically unnecessary prescriptions for controlled substances for resale. With cash-paying “patients,” O’Brien could conceal money from creditors and the United States Bankruptcy Court where he had filed for Chapter 11 protection for his company WJO, Inc., a group of medical practices which he owned. After filling the prescriptions they got from O’Brien, the “patients” would turn the pills over to the co-conspirators who would sell the pills to drug dealers. Certain controlled substances, such as oxycodone (30 mg), were in high demand. One oxycodone 30 mg pill could sell for $25 on the street.
Distribution of Controlled Substances Resulting in Death
The jury found O’Brien guilty of intentionally distributing, outside the usual course of professional practice and for no legitimate medical purpose, controlled substances to a particular individual that resulted in that individual’s death. Defendant O’Brien wrote prescriptions for oxycodone, methadone, and cyclobenzaprine, a muscle relaxer, to Joseph Ennis, 36, of Bucks County, after Mr. Ennis had initially sought treatment from the defendant 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.
Conspiracy to Engage in Money Laundering and Bankruptcy Fraud
The trial evidence showed that O’Brien generated at least approximately $20,000 per week in illegal cash proceeds from his drug dealing activities. He did not record the cash receipts in his bank account or in the books of his company “Bill O’Brien LLC.” O’Brien directed employees to shred the “cash slips” at the end of each business day. On a daily basis, O’Brien transported thousands of dollars in cash in his briefcase from his office to the residence that he shared with codefendant Elizabeth Hibbs, who was his former wife. O’Brien and Hibbs, who were married in January 2010, officially divorced on October 15, 2012. The decree and order of divorce filed in the Court of Common Pleas for Philadelphia County cited “irretrievable breakdown” as the cause for the dissolution of the marriage. Notwithstanding an “irretrievable breakdown” in their relationship, defendants O’Brien and Hibbs lived together, worked together, and by all outward appearances, appeared to continue to act as husband and wife.
Hibbs, who pleaded guilty, deposited the illicit cash proceeds into various bank accounts, at different banks, and into safety deposit boxes titled in her name or held jointly with one of her daughters. This elaborate mechanism concealed the fact that the source of the cash was O’Brien’s illegal drug distribution operation.
As the trial evidence showed, O’Brien filed for bankruptcy protection for WJO, Inc. in November 2010. Hibbs, who was married to O’Brien when the bankruptcy petition was filed, was, at various times, the Chief Operating Officer and the Chief Executive Officer for WJO, Inc. In July of 2012, O’Brien and Hibbs were fired from WJO, Inc., by the Trustee appointed by the United States Bankruptcy Court. O’Brien and Hibbs diverted assets from WJO, Inc. to their personal accounts and to accounts controlled by them. In addition, O’Brien and Hibbs concealed other assets from the Trustee and from creditors of WJO, Inc. Both also knowingly made a false statement under oath during the bankruptcy proceedings.
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.
Chester Duo Pleads Guilty to Conspiracy and Other ChargesRead the Press Release
Steven Hameed, 57, and Darnell Young, 48, both of Chester PA, pleaded guilty today to all charges against them relating to a multi-year conspiracy to file false deeds on homes throughout Delaware County and file false tax forms against judges, law enforcement, and other government employees to try to intimidate and harass them in the course of their official duties, announced United States Attorney Zane David Memeger.
According to the Indictment, the defendants filed false land deeds with the Delaware County Recorder of Deeds Office in an attempt to claim ownership of homes owned by the government or by banks, and then to live in the homes, or rent/sell the homes to unsuspecting persons, for their own financial gain. The Indictment further charges that the defendants filed hundreds of false tax forms against police officers, judges, and other government employees to try to harass and intimidate them in the course of their duties. Defendants Hameed and Young also pleaded guilty to creating a false financial bond, which they mailed to a realtor in an attempt to purchase property.
The defendants face substantial periods of incarceration, five-year periods of supervised release, restitution and substantial fines. U.S. District Judge Timothy J. Savage has scheduled sentencing for September 28, 2016.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Treasury Inspector General for Tax Administration, the Federal Housing Finance Agency – Office of Inspector General, the Federal Deposit Insurance Corporation – Office of Inspector General, the Social Security Administration - Office of Inspector General, the Philadelphia Police Department, the Delaware County Detectives, the Aston Police Department, and the Upper Darby Police Department, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz and Assistant United States Attorney Vineet Gauri.
Philadelphia Woman Indicted on Charge She Was A Convicted Felon with A GunRead the Press Release
PHILADELPHIA - Annemarie Scott, 21, of Philadelphia, PA, was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. The indictment alleges that on or about April 1, 2016, Scott, who has several prior felony convictions, possessed a loaded Glock, 9mm, semi-automatic firearm.
If convicted the defendant faces a mandatory minimum of 15 years imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Virgil B. Walker.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Intent to Distribute via U.S. MailRead the Press Release
Ferdinand Javier Ruiz, 32, of Philadelphia, Pennsylvania was charged today by information with attempted possession with intent to distribute 50 grams or more of methamphetamine; possession with intent to distribute 50 grams or more of methamphetamine; and attempted possession with intent to distribute 500 grams or more of cocaine, announced United States Attorney Zane David Memeger. The charges arise from the defendant’s involvement in the shipment of methamphetamine and cocaine using the U.S. Postal Service Priority Mail.
If convicted the defendant faces a maximum possible sentence of life imprisonment.
The case was investigated by United States Postal Inspection Service 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.
Three Charged in Violent Home Invasion RobberyRead the Press Release
PHILADELPHIA - Tyree Mansell, 40, of Philadelphia, PA, Sterling Wallace, 27, and Jamain Wallace, 26, of Philadelphia and Yeadon, PA, were charged today by indictment with conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, attempted Hobbs Act robbery, and carrying a firearm during and in relation to a crime of violence.
The indictment charges that on June 15, 2015, the defendants conspired in a home invasion robbery in Broomall, Pennsylvania, in an attempt to steal business proceeds from the victim. The indictment alleges that all three defendants went to a home in the 2600 block of Old Cedar Grove Road in Broomall; that Mansell and Sterling Wallace rang the doorbell and when a young child (“Victim #1”), answered the door, they pointed their firearms at the child, forced their way into the home, and Wallace struck the child in the face and head with his gun causing a severe laceration and bleeding. Mansell confronted another person (“Victim #2”) on the second floor of the home, pointed his firearm at Victim #2 and him/her into a bedroom as defendant Sterling Wallace forced Victim #1 to the second floor at gunpoint. Defendant Jamain Wallace joined the other two defendants, took Sterling Wallace’s gun and stood guard over the victims Victim #1 and Victim #2 as his co-defendants searched the home for cash and other items to steal. The defendants took money and jewelry from a safe in the home.
If convicted of all charges, each defendant faces a mandatory minimum sentence of seven years in prison with a maximum sentence of life, up to five years of supervised release, a possible fine, and a $300 special assessment.
This case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lancaster Resident Charged with Illegal ReentryRead the Press Release
Filimon Mendez-Perez,” a/k/a “Alfredo Lopez-Perez,” 34, of Lancaster, 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 February 25, 2016, Mendez-Perez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about December 7, 2009, June 2, 2010, and July 30, 2011.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Indicted on Gun ChargeRead the Press Release
Vernon Jones, 24, of Philadelphia, Pennsylvania was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. According to the indictment, on or about April 12, 2016, in Philadelphia, Jones possessed a Beretta, Model BU9 Nano, 9mm pistol, and empty magazine that fit the pistol, and 14 spent 9mm cartridge casings, which had been ejected immediately outside of the residence from where the pistol was recovered.
If convicted the defendant faces a mandatory minimum sentence of 15 years in prison.
The case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delaware County Podiatrist Charged with $5 Million Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – Stephen A. Monaco, D.P.M., 59, of Broomall PA was charged by criminal information, unsealed today, in connection with a $5 million scheme to defraud Medicare, Medicaid and four private victim insurance companies, announced United States Attorney Zane David Memeger. The information alleges that Dr. Monaco committed the fraud through his practice, A Foot Above Podiatry, Inc. (“A Foot Above”), located in Havertown PA.
According to the information, between January 2008 and October 31, 2014, Dr. 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). In addition, according to the information, Dr. Monaco submitted fraudulent claims to Medicare, Medicaid and four private victim insurance companies for medically unnecessary procedures and services that were not reimbursable by Medicare or the other insurance carriers. In total, it is alleged that the defendant caused the submission of fraudulent claims to Medicare, Medicaid and the four private victim insurance companies that resulted in payments by the victim insurers to the defendant’s practice totaling approximately $5 million.
If convicted, defendant Monaco faces up to 10 years in prison, $5 million restitution, substantial fines, and criminal forfeiture.
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. It is being prosecuted by Assistant United States Attorneys M. Beth Leahy and Jennifer B. Jordan.
Philadelphia Man Indicted on Gun and Drug ChargesRead the Press Release
PHILADELPHIA - James Spears, 33, of Philadelphia, PA, was charged today by indictment with possession with intent to distribute cocaine base (“crack”) and cocaine, and possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Zane David Memeger. The indictment charges that the defendant committed these offenses in Philadelphia between December 28, 2012 and January 3, 2013.
If convicted of all charges, the defendant faces a mandatory minimum sentence of five years in prison with a maximum sentence of life, five years of supervised release, a possible fine, and a $300 special assessment.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.