Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Philadelphia Man Charged in Two Bank RobberiesRead the Press Release
PHILADELPHIA - Ryan J. McAteer, 35, of Philadelphia, PA, was charged today by indictment with two counts of bank robbery, announced United States Attorney Zane David Memeger. The indictment charges that McAteer robbed the Republic Bank, located at 1601 Walnut Street in Philadelphia, Pennsylvania, on May 2, 2016, and Citizens Bank, located at 123 Chestnut Street in Philadelphia, Pennsylvania on May 3, 2016.
If convicted, McAteer faces a maximum sentence of 40 years in prison, a possible fine, three years of supervised release, and a $200 special assessment.
This case has been investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, the Haddon Township (New Jersey) Police Department, the Haddon Heights (New Jersey) Police Department. The case is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Congressman and Associates Convicted in Corruption CaseRead the Press Release
A federal jury sitting in Philadelphia found Congressman Chaka Fattah Sr., 59, guilty of all charges against him. Fattah and three of his four associates were found guilty of taking part in a racketeering conspiracy involving several schemes that were intended to further their political and financial interests by misappropriating federal, charitable and campaign funds, among other schemes.
Fattah, Robert Brand, 70, of Philadelphia; Karen Nicholas, 58, of Williamstown, New Jersey; and Herbert Vederman, 70, of Palm Beach, Florida, were found guilty of participating in a racketeering conspiracy. Fattah was also found guilty of conspiracy to commit bribery, bribery, conspiracy to commit wire fraud, conspiracy to commit honest services fraud, mail fraud, money laundering conspiracy, money laundering, bank fraud, false statements to a financial institution, six counts of mail fraud and five counts of falsification of records.
Vederman was also convicted of conspiracy to commit bribery, bribery, bank fraud, making false statements to the Credit Union Mortgage Association, falsification of records and two counts of money laundering.
Brand was also convicted of conspiracy to commit wire fraud.
Nicholas was also convicted of conspiracy to commit wire fraud, two counts of wire fraud and two counts of falsification of records.
Bonnie Bowser, 60, of Philadelphia, was acquitted of racketeering conspiracy but convicted of conspiracy to commit bribery, bank fraud, making false statements to the Credit Union Mortgage Association, falsification of records and money laundering.
U.S. District Court Judge Harvey Bartle III of the Eastern District of Pennsylvania scheduled sentencing hearings for Oct. 4, 2016, for Fattah, Vederman and Brand; and Oct. 5, 2016, for Nicholas and Bowser.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Special Agent in Charge William F. Sweeney Jr. of the FBI’s Philadelphia Division and Special Agent in Charge Akeia Conner of the Internal Revenue Service-Criminal Investigation (IRS-CI) Philadelphia Field Office announced today’s verdict.
“Congressman Fattah corruptly abused his office for his own personal and political gain,” said Assistant Attorney General Caldwell. “He took bribes, committed fraud and even stole money from his own campaigns. In short, Congressman Fattah and his co-defendants deprived the people of eastern Pennsylvania of their right to the honest services of their elected representative. Today’s convictions should send a message that the Justice Department will vigorously investigate and prosecute political corruption wherever it takes place, and uphold the principles of honesty and integrity that are the foundation of our government.”
“Chaka Fattah Sr. and his co-defendants betrayed the public trust and undermined our faith in government,” said U.S. Attorney Memeger. “Today’s verdict makes clear that the citizens of the Eastern District of Pennsylvania expect their public officials to act with honesty and integrity, and to not sell their office for personal gain. Hopefully, our elected officials in Philadelphia and elsewhere hear today’s message loud and clear.”
“The corruption demonstrated by Congressman Fattah and his co-defendants is yet another sad example of the type of behavior that corrodes citizens’ faith in their government,” said Special Agent in Charge Sweeney. “The FBI is firmly committed to ensuring that public officials and their co-conspirators who choose to use their positions for personal gain rather than provide the honest services the community rightly expects will be investigated and brought to justice. The community deserves nothing less.”
“Convictions, like the one returned against these five defendants today, send a loud and clear message that people who willfully defy the law will be fully investigated, prosecuted and subjected to the full punishment of the law for their actions,” said Special Agent in Charge Conner.
According to the evidence presented at trial, Fattah and certain associates borrowed $1 million from a wealthy supporter for his failed 2007 campaign for mayor of Philadelphia, and disguised the funds as a loan to a consulting company. After he lost the election, Fattah returned to the donor $400,000 that the campaign had not used and arranged for Educational Advancement Alliance (EAA), a non-profit entity that Fattah founded and controlled, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by Brand. To conceal the contribution and repayment scheme, the defendants and others created sham contracts and made false entries in accounting records, tax returns and campaign finance disclosure statements.
Following his defeat, Fattah also sought to extinguish approximately $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant. Fattah directed the consultant to apply for a $15 million grant (which ultimately he did not receive) on behalf of a then-non-existent non-profit entity. In exchange for Fattah’s efforts to arrange the award, the consultant agreed to forgive the campaign debt.
In addition, Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son’s student loan debt. To execute the scheme, Fattah arranged for his campaigns to make payments to a political consulting company, which funds the company then used to lessen Fattah’s son’s student loan debt. Between 2007 and 2011, the consultant made 34 successful loan payments on behalf of Fattah’s son, totaling approximately $23,000.
Beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for Vederman an ambassadorship or an appointment to the U.S. Trade Commission. In exchange, Vederman provided money and other items of value to Fattah. As part of this scheme, the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a sham car sale.
Nicholas was found guilty of obtaining $50,000 in federal grant funds that she falsely claimed would be used by EAA to support a conference on higher education. Instead, Nicholas used the grant funds to pay $20,000 to a political consultant, $10,000 to her attorney and write several checks to herself from EAA’s operating account.
The FBI and IRS-CI investigated the case. The Justice Department’s Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerce’s Office of Inspector General. Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania and Trial Attorneys Eric L. Gibson and Jonathan Kravis of the Criminal Division’s Public Integrity Section are prosecuting the case.
Philadelphia Congressman and Associates Convicted of RICO Conspiracy in Public Corruption CaseRead the Press Release
PHILADELPHIA – A federal jury today found Congressman Chaka Fattah Sr., 59, guilty of all charges against him. He and three of his four associates were found guilty of taking part in a racketeering conspiracy involving several schemes that were intended to further their political and financial interests by misappropriating federal, charitable and campaign funds, among other schemes. The verdicts were announced today by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge William Sweeney, and IRS Criminal Investigation Special Agent-in-Charge Akeia Conner.
Fattah, Robert Brand, 70, of Philadelphia, Karen Nicholas, 58, of Williamstown, NJ, and Herbert Vederman, 70, of Palm Beach, Florida were found guilty of participating in a racketeering conspiracy. Fattah was also found guilty of conspiracy to commit bribery, bribery, conspiracy to commit wire fraud, conspiracy to commit honest services fraud, mail fraud, money laundering conspiracy, money laundering, bank fraud, false statements to a financial institution, six counts of mail fraud, and five counts of falsification of records.
Herbert Vederman was also convicted of conspiracy to commit bribery, bribery, bank fraud, making false statements to the Credit Union Mortgage Association, falsification of records, and two counts of money laundering.
Robert Brand was also convicted of conspiracy to commit wire fraud.
Karen Nicholas was also convicted of conspiracy to commit wire fraud, two counts of wire fraud, and two counts of falsification of records.
Bonnie Bowser, 60, of Philadelphia, was acquitted of RICO conspiracy but convicted of conspiracy to commit bribery, bank fraud, making false statements to the Credit Union Mortgage Association, falsification of records, and money laundering.
U.S. District Court Judge Harvey Bartle III scheduled sentencing hearings for October 4, 2016 for Fattah, Vederman and Brand; and October 5, 2016 for Nicholas and Bowser.
In connection with his failed 2007 campaign to serve as mayor of Philadelphia, Fattah and certain associates borrowed $1 million from a wealthy supporter, and disguised the funds as a loan to a consulting company. After he lost the election, Fattah returned to the donor $400,000 that the campaign had not used, and arranged for Educational Advancement Alliance (EAA), a non-profit entity that he founded and controlled, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by Brand. To conceal the contribution and repayment scheme, the defendants and others created sham contracts and made false entries in accounting records, tax returns and campaign finance disclosure statements.
Following his defeat in the mayoral election, Fattah sought to extinguish approximately $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant. Fattah directed the consultant to apply for a $15 million grant (which ultimately he did not receive) on behalf of a then non-existent non-profit entity. In exchange for Fattah’s efforts to arrange the award of the funds to the non-profit, the consultant agreed to forgive the debt owed by the campaign.
Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son’s student loan debt. To execute the scheme, Fattah arranged for his campaigns to make payments to a political consulting company, which funds the company then used to lessen Fattah’s son’s student loan debt. Between 2007 and 2011, the consultant made 34 successful loan payments on behalf of Fattah’s son, totaling approximately $23,000.
Beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for Vederman an ambassadorship or an appointment to the United States Trade Commission. In exchange, Vederman provided money and other items of value to Fattah. As part of this scheme, the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a sham car sale.
Karen Nicholas was found guilty of obtaining $50,000 in federal grant funds that she falsely claimed would be used by EAA to support a conference on higher education. The conference never took place. Instead, Nicholas used the grant funds to pay $20,000 to a political consultant, $10,000 to her attorney, and also wrote several checks to herself from EAA's operating account.
“Chaka Fattah Sr. and his co-defendants betrayed the public trust and undermined our faith in government,” said Memeger. “Today’s verdict makes clear that the citizens of the Eastern District of Pennsylvania expect their public officials to act with honesty and integrity, and to not sell their office for personal gain. Hopefully, our elected officials in Philadelphia and elsewhere hear today’s message loud and clear.”
“The corruption demonstrated by Congressman Fattah and his co-defendants is yet another sad example of the type of behavior that corrodes citizens' faith in their government,” said FBI Special Agent- in-Charge William Sweeney. “The FBI is firmly committed to ensuring that public officials and their co-conspirators who choose to use their positions for personal gain rather than provide the honest services the community rightly expects will be investigated and brought to justice. The community deserves nothing less.”
“Convictions, like the one returned against these five defendants today, send a loud and clear message that people who willfully defy the law will be fully investigated, prosecuted, and subjected to the full punishment of the law for their actions,” said Special Agent-in-Charge Akeia Conner, IRS Criminal Investigation.
“Congressman Fattah corruptly abused his office for his own personal and political gain,” said Assistant Attorney General Caldwell. “He took bribes, committed fraud and even stole money from his own campaigns. In short, Congressman Fattah and his codefendants deprived the people of eastern Pennsylvania of their right to the honest services of their elected representative. Today’s convictions should send a message that the Justice Department will vigorously investigate and prosecute political corruption wherever it takes place, and uphold the principles of honesty and integrity that are the foundation of our government.”
This case was investigated by the FBI and IRS-Criminal Investigation. Assistance was provided by the Department of Justice Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerce Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Paul L. Gray, Trial Attorneys Eric L. Gibson, and Jonathan Kravis of the Criminal Division’s Public Integrity Section.
Bucks County Settlement Agent Charged with Stealing FundsRead the Press Release
PHILADELPHIA – Alfred Drechsel, 47, of Voorhees, NJ was charged by Information with one count of wire fraud in connection with a scheme that defrauded borrowers and title insurance companies, announced United States Attorney Zane David Memeger.
Drechsel was an owner of Lenders Edge Settlement Services, LLC, (“Lenders Edge”) and Integrity Assurance Inc. (“Integrity Assurance”), located in Feasterville, PA. The information alleges that Drechsel, who was responsible for making the loan disbursements, diverted settlement funds into various Lenders Edge and Integrity Assurance bank accounts and used the diverted loan proceeds to pay off other unrelated mortgages, to pay other business expenses, and for personal expenditures. According to the information, the total amount of mortgages that the defendant failed to pay off as required by the settlement statements was approximately $2,919,186.61.
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 FBI and is being prosecuted by Assistant United States Attorney Jennifer Barry.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Illegal Reentry After DeportationRead the Press Release
Nicolas Herrera, 55, 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 May 19, 2016, Herrera, 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 July 7, 2004 and July 22, 2009.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and 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.
Philadelphia Man Charged with Possession of Firearm by A Convicted FelonRead the Press Release
PHILADELPHIA - Dennis Burgos, 48, of Philadelphia, Pennsylvania, was charged by indictment with one count of possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. According to the indictment, on April 7, 2016, the defendant was found in Philadelphia in possession of a loaded Glock 23 semi-automatic handgun.
If convicted, the defendant faces a maximum possible sentence of life in prison, up to three years of supervised release, a possible fine, and a $100 special assessment.
This case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Trio Charged in Conspiracy to Illegally Sell Authentic Driver's Licenses to Undocumented IndividualsRead the Press Release
PHILADELPHIA - An indictment was filed today charging three people in a conspiracy to sell illegally obtained driver’s licenses to undocumented aliens, announced United States Attorney Zane David Memeger. Jose Altagracia Morales Santiago, 57, of Philadelphia, PA, Jose Jhonkellyn Castillo-Henriquez, 28, of New York, NY, and Hiram Mojica, 49, of Philadelphia, PA, are each charged with one count of conspiracy, aggravated identity theft, and producing an identification document.
According to the indictment, between February and May of 2016, the defendants obtained the identifying information of Puerto Rican citizens, which they then sold to undocumented aliens. The defendants allegedly obtained through unlawful means both learner’s permits and driver’s licenses from Pennsylvania Department of Transportation (PennDOT) Department of Motor Vehicles (DMV) locations in and around Philadelphia, which defendants Morales Santiago and Castillo-Hernandez sold to undocumented aliens. It is further alleged that defendant Morales Santiago paid individuals to take the written knowledge test portion of the driving test using Puerto Rican identities, fraudulent utility bills, and fraudulent medical reports, all of which defendant Morales Santiago provided. Defendant Mojica allegedly instructed undocumented aliens how to use and drive an automobile, provided undocumented aliens with a car to use during driving tests, drove undocumented aliens to DMVs located in and around Philadelphia, chaperoned undocumented aliens through the DMV procedures, and directed undocumented aliens to falsify documentation supporting their driver’s license applications
If convicted, each defendant faces a mandatory minimum term of two years in prison with a statutory maximum sentence of 22 years, a possible fine, a period of supervised release, and a $300 special assessment. The indictment also contains a notice of forfeiture.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Kevin Brenner.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Resident Charged with Illegal ReentryRead the Press Release
Jose Alberto Rosario-Morales, a/k/a Miguel Hidalgo-Santos,” a/k/a “Luis Santos,” 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 May 11, 2016, Rosario-Morales, 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 17, 2010.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a possible fine, a $100 special assessment, and a period of supervised release.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Andrew J. Schell.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Stockbroker Pleads Guilty to Fraud ChargesRead the Press Release
PHILADELPHIA - William Bucci, 59, of Philadelphia, PA, pleaded guilty today to one count of securities fraud, four counts of mail fraud, one count of mortgage fraud, and pleaded nolo contendere to five counts of subscribing a false tax return. U.S. District Court Judge Joel H. Slomsky scheduled a sentencing hearing for November 17, 2016.
Beginning as early as 2004, Bucci, a licensed stockbroker at the time, falsely represented to several brokerage clients that he was starting a business to import high end olive oil and wine from Italy. As a result of defendant’s representations, the clients and others invested approximately $1,284,000. Bucci never had an olive oil and wine business. Instead of investing the money, Bucci spent it on his own expenses.
Between 2004 and 2012, the defendant induced others to loan him money based on representations that he would put it toward a down payment on the purchase of real estate on the New Jersey shore and would repay it with significant interest. Instead, Bucci used the victims’ money for his own purposes, including to pay off his extensive credit card debt and to pay earlier victims.
Bucci obtained a $480,000 loan in 2011 from Beneficial Mutual Savings Bank, an FDIC insured institution, to purchase real estate in Brigantine, New Jersey. After obtaining the loan, the defendant fell behind on his payments. In negotiations with the bank, the defendant provided Beneficial with a false financial statement omitting significant liabilities. The defendant provided the document to bank employees in an attempt to deceive them about his ability to pay back the loan and thereby increase the chance that the bank would enter into a forbearance agreement with him.
As a result of his fraud schemes, Bucci obtained approximately $2.9 million between 2007 and 2011. Bucci did not report any of the money he took from the scheme on his tax returns for those tax years.
Bucci faces a statutory maximum sentence of 145 years in prison, restitution of up to $3.2 million, a possible fine, and up to three years of supervised release, and a $1,100 special assessment when sentenced.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David J. Ignall and Trial Attorney Derek J. Ettinger with the Fraud Section of the Department of Justice’s Criminal Division.
Philadelphia Woman Charged with Stealing Dead Friend's PensionRead the Press Release
PHILADELPHIA - Melba Wilson, 76, of Philadelphia, Pennsylvania, was charged by Information, filed May 25, 2016, with one count of theft of government funds and one count of theft from an employee pension plan, announced United States Attorney Zane David Memeger. According to the Information, the defendant received Social Security and pension benefits intended for a deceased friend, after the friend’s death in March 2007 until her fraud was discovered in the spring of 2015. The defendant’s alleged actions resulted in a loss to the Social Security Administration in the amount of $134,389, and to the Department of Labor in the amount of $39,750, for a total loss to the government of approximately $174,139.
If convicted, the defendant faces a statutory maximum sentence of 15 years in prison, a three‑year period of supervised release, restitution to the government of $174,139, a possible fine, and a $200 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and the Department of Labor Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged in Trio of Bank RobberiesRead the Press Release
PHILADELPHIA - Reuben Jackson, 52, of Philadelphia, Pennsylvania, was charged today by Indictment with 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 William F. Sweeney.
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.
If convicted, the defendant faces a statutory maximum sentence of 60 years in prison, a possible fine, a period of supervised release, and a $300 special assessment.
The case was investigated by the FBI and Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Jeanine Linehan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Police Officer Charged with Attempted ExtortionRead the Press Release
PHILADELPHIA - Thomas Vitanovitz, 32, of Philadelphia, PA, was charged by information today, with attempted extortion of an alleged drug dealer while working as a Philadelphia Police Officer, announced United States Attorney Zane David Memeger.
According to the information, on July 21, 2015, while employed as a Philadelphia Police Officer assigned to the 24th District, Vitanovitz 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.
If convicted of all charges, 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.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced for Sex TraffickingRead the Press Release
PHILADELPHIA - Jerel Jackson, 30, of Philadelphia, PA, was sentenced today to 30 years in prison for five counts of sex trafficking of minors and adults by force. On March 18, 2015, Jackson pleaded guilty to the charges. In addition to the prison term, U.S. District Court Judge C. Darnell Jones ordered a $500 special assessment and five years of supervised release. A separate restitution hearing will be held at a later date.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Philadelphia Police Department Special Victims Unit, the Tinicum Township Police Department, and the Dover (Delaware) Police Department, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Additional Charges, Additional Defendants in Case of Robbers Who Disguised Themselves as PoliceRead the Press Release
PHILADELPHIA – A superseding indictment was unsealed today in a case involving a violent robbery conspiracy that included armed robbery, kidnapping, carjacking, and drug trafficking, announced United States Attorney Zane David Memeger and Special Agent-in-Charge Sam Rabadi with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The superseding indictment adds four defendants and 13 charges, including two counts of kidnapping, armed robbery, and six more firearms counts.
The defendants allegedly conspired in a scheme to commit armed robberies dressed in disguises that included police uniforms, badges, bulletproof vests, masks, gloves, and wigs. The indictment alleges that the robbers also tracked targeted victims with GPS devices to rob them in their homes. Various defendants are charged in violent home invasion robberies or attempted robberies that included shooting one victim, water boarding and pouring boiling water on others, and, in one incident, assisting the scheme by playing the role of a robbery victim.
Added to the superseding indictment are: Sei Stone, 42, Edwin Robinson, 42, Louis Miller, 38, James Haines, 25, all of Philadelphia, PA. Also charged (in the original indictment) are: Khalil Smith, Mark Woods, Terrace Munden, Robert Hartley, Hasan Chaney, Levern Jackson, Braheim Ballard, William Jefferson, Romel Anthony, Brandon Segers, Michael Queen, Jeffrey Bellamy, Eric Scott, Daniel Hayes, Marcus Bowens, all of Philadelphia, PA, and Jamal Doggett, of Willingboro, NJ.
Among the charges added to the original indictment, on October 18 and 19, 2013, defendants Mark Woods, Terrance Munden, Hasan Chaney, Robert Hartley, and Louis Miller went to the 3000 block of Master Street to find the victim, a drug dealer that Woods had been following. When the victim tried to get in his car, the defendants, wearing police paraphernalia, identified themselves as officers, assaulted and restrained the victim, covered his head, and drove him from the area against his will and forced him to call a second victim so the defendants could gain access to that victim’s apartment. Once inside the home, the defendants held the second victim, his girlfriend, and a child at gunpoint while they demanded money and drugs. They stole cocaine, cash, and other items.
On March 19, 2014, the superseding indictment alleges that Khalil Smith, Mark Woods, Terrance Munden, Robert Hartley, Hasan Chaney, Levern Jackson, and others, planned a kidnapping for ransom. The defendants approached the victim, assaulted, restrained and kidnapped him. They forced him to strip, threatened and assaulted him, and poured boiling water on him while demanding to know where his drugs and drug money were. The defendants forced the victim to call a family member and instruct that person on where to get $50,000 in ransom money to pay for his release. After Khalil Smith retrieved the ransom money from the drop off point, the victim was released.
If convicted of all charges, each defendant is facing a statutory maximum sentence of life in prison with mandatory minimum terms of imprisonment.
The investigation was led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Philadelphia Police Department, the Hatfield Township Police Department, the Whitpain Township Police Department, and the Cherry Hill Police Deparment. It is being prosecuted by Assistant United States Attorneys Salvatore Astolfi and Jeanine Linehan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bucks County Man Charged with Theft of Government FundsRead the Press Release
PHILADELPHIA - Brian Randall, 65, of Levittown, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received Social Security benefits intended for his mother, after his mother’s death in February 1988 until October 2015. The defendant’s alleged actions resulted in a loss to the government of approximately $295,223.
If convicted, the defendant faces a maximum penalty of 10 years in prison, a three‑year period of supervised release, restitution to the government of $295,223, a possible fine, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Honored by Department of Justice at Awards CeremonyRead the Press Release
PHILADELPHIA – Assistant U.S. Attorney Robert J. Livermore, of the U.S. Attorney’s Office in the Eastern District of Pennsylvania, was one of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C. The award is being announced by United States Attorney Zane David Memeger.
Livermore was recognized for his outstanding work in prosecuting one of the largest labor racketeering cases in the Eastern District of Pennsylvania. In 2015, a jury convicted Joseph Dougherty, former Business Manager of Ironworkers Local 401, of leading a RICO conspiracy that involved more than a dozen union members. In a systematic pattern of extortion, arson, and assault designed to force non-union companies to hire union Ironworkers, Dougherty and union members committed 25 racketeering acts, including arsons at major construction sites in and around Philadelphia. Dougherty was sentenced to 230 months in prison for his leadership role in the racketeering conspiracy. Eleven members of Local 401 pled guilty before trial. The work of Mr. Livermore sent a strong message in the Philadelphia area that corrupt union practices, violence, and threats of violence in labor activities will be met with severe punishment.
“This office is fortunate to have a rich pool of talented prosecutors and staff members who are dedicated to public service,” said Memeger. “Rob’s hard work and determination in this complex racketeering case exemplifies the commitment that members of my office have towards the pursuit of justice. Rob's efforts resulted in the dismantling of a dangerous conspiracy and long prison terms for the individuals who had resorted to extortion and violence as a way of doing business.”
In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.
The Eastern District of Pennsylvania was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Lancaster Man Charged with Robbing MarketRead the Press Release
PHILADELPHIA - Joshua Matthew Ortiz, 24, of Lancaster, PA, was charged today by Indictment with robbery which interferes with interstate commerce, using and carrying a firearm during a crime of violence, and with being a convicted felon in possession of a firearm, announced U.S. Attorney Zane David Memeger.
According to the indictment, on January 29, 2016, Ortiz committed a gun-point robbery of the Turkey Hill Minit Market, located at 410 East Chestnut Street, in Lancaster, Pennsylvania.
If convicted of all counts, Ortiz faces a maximum sentence of life in prison, with a mandatory seven-year minimum sentence, a possible fine, five years of supervised release, and a $300 special assessment.
This case has been investigated by the Federal Bureau of Investigation and the Lancaster City Bureau of Police. It is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Municipal Court Judge Pleads Guilty in Corruption SchemeRead the Press Release
PHILADELPHIA – Joseph O’Neill, 65, of Philadelphia, Pennsylvania, pleaded guilty today to making false statements to the FBI during an investigation of potential wrongdoing in the Philadelphia Municipal Court. O’Neill is a judge on the Philadelphia Municipal Court. U.S. District Court Judge Juan R. Sanchez scheduled a sentencing hearing for September 7, 2016.
O’Neill received a phone call from then-Municipal Court Judge Joseph Waters about a civil small claims case that was scheduled for a hearing before O’Neill. In an ex parte conversation, Waters told O’Neill that the defendant in the small claims case was a friend and asked O’Neill to “take a hard look at it.” When the FBI later interviewed O’Neill about the ex parte conversation, O’Neill denied having been contacted by anyone in advance of the hearing on the small claims case to ask for a favor. In a follow-up interview, O’Neill denied that anyone had contacted him in advance of the hearing and told him the defendant in the small claims case was a friend of the caller. Waters pleaded guilty in September of 2014, to mail fraud and wire services fraud in connection with the corruption scheme.
The case was investigated by the FBI and is being prosecuted by Chief of the Public Corruption Unit Richard P. Barrett and Assistant United States Attorney Michelle L. Morgan.
Child Pornography Charge Brought Against Philadelphia ManRead the Press Release
PHILADELPHIA - Thomas C. Rambo, 37, of Philadelphia, PA, was charged today by Indictment with accessing child pornography with intent to view, announced United States Attorney Zane David Memeger. According to the indictment, on May 31, 2015, Rambo viewed images of child pornography on an internet website.
If convicted the defendant faces a maximum possible sentence of 100 years’ incarceration, a minimum of five years of supervised release up to a lifetime of supervised release, a $1,250,000 fine 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 DHS Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Andrew J. Schell.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Warlock Motorcycle Gang Member Convicted of Drug TraffickingRead the Press Release
PHILADELPHIA – A federal jury, yesterday, returned a guilty verdict against Andrew Carr, 59, of Upper Darby, PA, on the charge of conspiracy to distribute 50 grams or more of methamphetamine. Carr served as the “muscle” and collector of drug debts in a methamphetamine trafficking business which sold approximately $40,000 of methamphetamine monthly in the Philadelphia and Delaware County area. He also sold methamphetamine to his own customers. Carr was a member of the Chester chapter of the Warlocks outlaw motorcycle gang. A sentencing hearing is scheduled for August 17, 2016.
As a result of the investigation, eight members or associates of the drug trafficking business have been convicted. Carr is facing a mandatory minimum sentence of five years in prison with a maximum sentence of 40 years, a possible fine, and up to a lifetime of supervised release.
The case was investigated by the Federal Bureau of Investigations and was prosecuted by Assistant United States Attorney Maria M. Carrillo.
Lehigh County Woman Charged with Theft of Government FundsRead the Press Release
PHILADELPHIA - Dorothea Terfinko, 56, of Laury’s Station, Pennsylvania, was charged by Information, filed yesterday, with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant improperly received Social Security disability payments after she concealed her marriage in her application for benefits. The defendant’s alleged actions resulted in a loss to the government of approximately $48,435.13.
If convicted, the defendant faces a term of imprisonment, a three‑year period of supervised release, restitution to the government of $48,435.13, a possible fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Construction Company Owner Charged with FraudRead the Press Release
PHILADELPHIA - Yong Quan Zheng, 61, of Philadelphia, PA, was charged today by Information with mail fraud, tax fraud, and transporting illegal aliens, announced United States Attorney Zane David Memeger. Zheng was the owner of Hong Fai General Contractors, a construction company which performed general construction and remodeling work in the greater Philadelphia area. In addition to his ownership of a construction company, Zheng also owned a money service business which he operated at the same address as well as multiple residential and commercial properties in the Philadelphia area.
The Information alleges that Zheng employed workers and independent contractors at his businesses, many of whom he paid in cash, and that he failed to collect and pay over to the Internal Revenue Service employment and income taxes based on the wages paid to his workers. Some of the workers had entered or remained in the United States in violation of United States immigration laws. The Information further alleges that Zheng used the United States mail to send materially false information to the Pennsylvania Department of Labor and Industry regarding the number of individuals that he employed and the wages paid to the worker, in furtherance of a scheme to defraud the Pennsylvania Department of Labor and Industry out of unemployment compensation insurance premiums.
If convicted, Zheng faces a substantial period of incarceration, a $400 special assessment, a possible fine, and a period of supervised release.
The case was investigated by Homeland Security Investigations, the Federal Reserve Board Office of Inspector General, the Department of Labor Office of Inspector General, and IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Judy Smith and Floyd J. Miller.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Royersford Man Sentenced for Child Pornography Images Taken with Hidden CameraRead the Press Release
PHILADELPHIA – Kevin Rebbie, 57, of Royersford, PA, was sentenced yesterday to 240 months in prison for manufacturing child pornography, of which 180 months is a mandatory term. On December 22, 2015, Rebbie pleaded guilty to 19 counts of manufacturing child pornography, and one count of possession of child pornography. In addition to the prison term, U.S. District Court Judge Nitza I. Quinones Alejandro ordered a $2,000 special assessment and 20 years of supervised release.
Rebbie admitted that he had hidden a video camera under a sink in his bathroom for the purpose of videotaping children. After a 15-year old discovered the camera in February of 2015, the Limerick Township Police Department was contacted, and a search warrant was executed on Rebbie’s home. Seized were a total of 80 videos taken by Rebbie with a camera hidden in the bathroom, 19 of which captured minor boys and girls as they undressed, showered, and used the toilet. Rebbie saved the videos to his computer. He ultimately confessed to Limerick Township Police, was arrested in Montgomery County, and was charged federally.
“This afternoon a dangerous child predator was given a very long and appropriate sentence that will protect society for a long time,” said Memeger.
“Today’s lengthy prison sentence will hopefully begin the healing for the children robbed of their innocence at the hands of this predator,” said John Kelleghan, special agent in charge of HSI Philadelphia. “We will continue to aggressively target those who prey upon and sexually exploit our children. We owe it to the young victims in these cases, who will carry the emotional and physical scars of these crimes with them for the rest of their lives.”
Rebbie is awaiting trial in Montgomery County and Bucks County on child molestation charges.
The case was investigated by the Limerick Township Police Department in conjunction with Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Michelle Rotella.
Northampton County Woman Charged with Possession of SteroidsRead the Press Release
PHILADELPHIA - Kathleen Fields, 43, of Bethlehem, Pennsylvania was charged by Information, filed on May 16, 2016, with one count of possession with intent to distribute anabolic steroids, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 10 years in prison, a possible fine, supervised release, and a $100 special assessment.
The case was investigated by U.S. Postal Inspection Service and is being prosecuted by Assistant United States Attorney Andrea G. Foulkes.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Montgomery County Man Pleads Guilty to Tax ChargesRead the Press Release
PHILADELPHIA - Francis J. Bass, 61, of Montgomery County, PA, a former employee of Lundy Law in Philadelphia, pleaded guilty today to four counts of subscribing a false federal income tax return. As the Intake Coordinator for the law firm, he referred personal injury clients to medical providers and hired private investigators. In exchange for these referrals, Bass received payments directly from the medical providers and investigators selected by him. He received approximately $500 per client.
During tax years 2009 through 2013, Bass understated the income on his tax returns by failing to report the majority of the funds he received from these medical providers. To conceal the source of the funds he received for his referrals, Bass created a fictitious Schedule C “investigation” business, on which he reported a minimal amount of the referral payments.
For tax years 2009 through 2012, Bass failed to report approximately $483,901 in income and owed additional taxes of approximately $126,104. As part of his plea agreement, Bass agreed that he owed an additional $77,360 in taxes for approximately $341,264 in income for tax year 2013. The total amount of taxes owed to the IRS for 2009 through 2013 is approximately $203,464.
A sentencing hearing is scheduled for September 13, 2016. The defendant faces a maximum possible sentence of 12 years in prison, one year of supervised release, a possible fine, and a $400 special assessment
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Terri A. Marinari and David J. Ignall.
Bronx, New York Man Charged in Identity Theft SchemeRead the Press Release
PHILADELPHIA - Edward Terrell Providence, 51, of the Bronx, New York, was charged by Indictment, unsealed today, with one count of bank fraud and six counts of aggravated identity theft, announced United States Attorney Zane David Memeger. Providence was arrested this morning.
According to the indictment, Providence posed as legitimate PNC Bank account holders to obtain ATM cards for their accounts. Other co-schemers then used the cards to withdraw more than $388,000 by purchasing goods at various merchants and withdrawing cash from ATM machines.
If convicted, Providence faces a mandatory term of two years in prison with a maximum possible sentence of 42 years, up to five years of supervised release, a possible fine, and a $700 special assessment.
The case was investigated by the Homeland Security Investigations 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.
United States Reaches Settlement with Defense Contractor over Yacht ExpensesRead the Press Release
PHILADELPHIA - Materials Sciences Corporation, a government contractor headquartered in Horsham, Pennsylvania, has agreed to pay the United States $219,909 to resolve allegations that the company unreasonably billed federal agencies to cover depreciation and other expenses associated with a 58-foot-long Hatteras Yacht Fisherman. The settlement was announced by United States Attorney Zane David Memeger.
Specifically, the United States contended that between 2006 and 2015, Materials Sciences Corporation described the yacht as the company’s Mississippi office and incorporated yacht-related expenses into the company’s indirect cost rate submissions to receive payment under government contracts, primarily with the United States Navy. The United States contended that the yacht-related costs were unreasonable and therefore unallowable.
Materials Sciences Corporation also agreed not to use the yacht for any purpose and to dispose of the vessel within a specified period of time. The agreement therefore ensures that the company’s billing practice will not repeat itself in the future.
As part of this settlement, Materials Sciences Corporation did not admit liability or wrongdoing.
This investigation was led by the United States Naval Criminal Investigative Service and the United States Department of Defense Criminal Investigative Service. The case was handled by Assistant United States Attorneys Michael S. Macko and Virginia Powel.
Ambulance Company Owner Charged with Making False Statements in A Health Care MatterRead the Press Release
PHILADELPHIA – Bassem Kuran, 23, of Philadelphia, formerly the owner of VIP Ambulance, Inc., (“VIP”) now defunct, was charged by information with making false statements in a health care matter, announced United States Attorney Zane David Memeger.
The information, filed May 13, 2016, alleges that when defendant Bassem Kuran owned VIP, the company transported patients who were able to walk and could travel safely by means other than ambulance and were, therefore, not eligible for ambulance transportation under Medicare requirements. It is alleged that the defendant, or others acting on his behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendant knew that the patients could be transported safely by other means and that many of them were able to walk. The defendant allegedly billed for the ambulance services as if those services were medically necessary and, as a result, the Medicare program paid more than $66,000 for the inappropriate method of transportation.
If convicted, the defendant faces a substantial term of imprisonment, three years of supervised release, a possible fine, mandatory restitution, forfeiture of assets, and a special assessment. The defendant could also be excluded from participating in federal health care programs.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul W. Kaufman and Mary E. Crawley.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment Charges Allentown Man with Producing Child PornographyRead the Press Release
PHILADELPHIA - Ruben Cotto, Jr., 28, of Allentown, PA, was charged yesterday by Indictment with the production and attempted production of child pornography as well as the distribution and possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life, a possible fine, up to a lifetime of supervised release, a $300 special assessment, and an additional $15,000 special assessment.
The case was investigated by the Office of the Pennsylvania Attorney General, the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
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 is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lehigh County Man Charged with Enticing A MinorRead the Press Release
PHILADELPHIA - George William Schantz, 42, of Lynn Township, PA, was charged today by Indictment with the enticement of a minor, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a mandatory minimum sentence of 10 years in prison with a maximum possible sentence of life, up to a lifetime of supervised release, a possible fine, a $100 special assessment, and a $5,000 additional special assessment.
The case was investigated by the Pennsylvania State Police, and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
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. Anyone with additional information about this case can call the FBI at 215-418-4000.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Felon Convicted of Illegal Gun PossessionRead the Press Release
PHILADELPHIA - Anthony Andrews, 35, of Philadelphia, PA, was convicted today on the charge of felon in possession of a firearm. A sentencing date is scheduled for July 15, 2016. Andrews faces a mandatory minimum sentence of 15 years in prison.
On June 17, 2014, Andrews knowingly possessed four firearms and ammunition that included an MPA (Masterpiece Arms) 5.7x28 caliber pistol; an MPA (Masterpiece Arms), 9 millimeter pistol; a CAI (Century Arms International/Zastava Arms) 7.62x39 caliber pistol; and a Phoenix Arms, .25 ACP caliber pistol.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Jose Arteaga.
Three Doctors Indicted for Illegally Selling Prescriptions of Suboxone and KlonopinRead the Press Release
PHILADELPHIA – An indictment was filed today charging three doctors in a scheme to sell commonly abused prescription drugs in exchange for cash payments. Charged in the conspiracy are: Dr. Alan Summers, 78, of Ambler, PA; Dr. Azad Khan, 63, of Villanova, PA; and Dr. Keyhosrow Parsia, 79, of Ridley Park, 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. Summers operated a medical clinic on South Broad Street in Philadelphia, and sometimes operated under the business name “NASAPT” (National Association for Substance Abuse-Prevention & Treatment). Dr. Summers employed numerous other doctors, including Dr. Azad Khan and Dr. Keyhosrow Parsia. The defendants sold prescriptions for Suboxone and Klonopin in exchange for cash payments. Suboxone is a brand name for a drug used to treat opiate addiction. None of the defendants conducted medical examinations or mental health examinations as required by law in order to legally prescribe these controlled substances. Dr. Summers 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. During the duration of the conspiracy, Dr. Summers illegally sold over $5 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.”
“Doctors who enable addicts betray their profession,” said DiGiulio. “In this case it is alleged the defendants were illegally prescribing dangerous controlled drugs and causing government health care programs to pay for the unnecessary prescriptions, which is health care fraud. We will continue to work with our partners to dismantle dangerous pill mills, protect government funds, and 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.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Child Pornography Charges Filed Against Philadelphia ManRead the Press Release
PHILADELPHIA – An information was filed today charging Ulric Miller, 34, of Philadelphia, PA, with possession of child pornography, announced United States Attorney Zane David Memeger. The indictment charges Miller with one count of possession of child pornography on July 17, 2015.
If convicted the defendant faces a maximum statutory sentence of 20 years in prison, a possible fine, forfeiture, restitution, at least five years of supervised release, a special assessment of $100 and, if not indigent, an additional $5,000.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
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 Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
President of Engineering Firm Admits to Bribing Elected Officials in Allentown and ReadingRead the Press Release
PHILADELPHIA – Court documents were unsealed today in relation to the guilty plea entered by Matthew McTish, 57, of Orefield, PA. McTish pleaded guilty on April 28, 2016 to one count of conspiracy to commit bribery offenses, announced United States Attorney Zane David Memeger. McTish faces a maximum possible sentence of five years in prison, a possible fine, three years of supervised release, and a $100 special assessment. U.S. District Judge Juan R. Sanchez scheduled a sentencing hearing for August 2, 2016.
McTish[1] was the president of an engineering firm which heavily relied on contracts with governmental organizations in Pennsylvania, including the cities of Allentown and Reading. Public Official #1, of Reading, PA, and Public Official # 3, of Allentown, PA, made clear to subordinates and donors that favorable official action would be withheld from certain donors who failed to provide satisfactory campaign contributions. By the same token, these elected officials directly and indirectly communicated to certain donors that they were expected to provide items of value, including campaign contributions, in return for certain past or prospective official actions in Reading and Allentown.
Public Official #1 and Public Official #3 identified certain engineering firms, including McTish’s, as promising targets for their pay to play schemes. Public Official #1 and Public Official #3 believed that these firms were particularly vulnerable to fundraising solicitations by elected city officials because of the firms’ reliance on municipal contracts and their desire to win such contracts in Reading and Allentown. Public Official #1 and Public Official #3 believed that for these firms, losing thousands of dollars to campaign treasuries was more acceptable than being shut out of consideration for millions of dollars’ worth of contracts. McTish admitted that under pressure from Public Official #1, Public Official #3 and their subordinates, he agreed to remit thousands of dollars of campaign contributions in order to keep his company viable for consideration for municipal contracts in Reading and Allentown. McTish agreed to continue raising such contributions for Public Official #1 even after he had lost re-election so that Public Official #1 could help McTish’s firm before leaving office. McTish also agreed to reward Mary Ellen Koval with a campaign contribution for her efforts in helping Public Official #3 trying to steer a contract to his company.
After paying campaign contributions to reward Koval and Public Official #3 for their efforts to steer an Allentown city contract to his company, McTish learned that the city had cancelled its plans for the contract. When McTish met with Public Official #3 to discuss the prospects of future engineering contracts with the City of Allentown, Public Official #3 asked for even more money – this time asking McTish to raise at least $21,600 before a federal campaign reporting deadline of June 30, 2015. Public Official #3 claimed that winning the federal campaign would allow him to provide greater assistance to McTish’s company. McTish was unhappy with Public Official #3’s demand but gave a $2,500 contribution in order to maintain his company’s viability for future contracts from the City of Allentown.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorneys Joe Khan, Michelle Morgan, and Anthony Wzorek.
[1] McTish was identified in pleadings in related cases (and in paragraph 15 of his own Information) as “Donor #2.”
Philadelphia Bank Employee Charged in Fraud and Identity Theft CaseRead the Press Release
PHILADELPHIA - Michael Tuffour, 27, of Philadelphia a was charged by Indictment, unsealed May 6, 2016, with one count of bank fraud and three counts of aggravated identity theft, announced United States Attorney Zane David Memeger.
The indictment alleges that while he was working as a customer service representative for TD Bank, Tuffour abused his position of trust in numerous ways including: opening fraudulent accounts for co-conspirators so that they could deposit counterfeit checks into those accounts; helping the co-conspirators withdraw the cash before TD Bank discovered that the checks were fraudulent; wiring money from the fraudulent accounts before TD Bank discovered that the checks were fraudulent; and secretly stealing customer information that he sold to co-conspirators, who used it to manufacture false IDs and counterfeit checks that they then used to unlawfully access the customers’ accounts.
Tuffour faces a mandatory minimum term of two years in prison with a statutory maximum sentence of 36 years, a period of supervised release, a possible fine, and a $400 special assessment.
The case was investigated by the United States Secret Service and the Federal Bureau of Investigation 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.
Pennsylvania Man Charged with Hacking Gas Company's ComputersRead the Press Release
PHILADELPHIA - Marc Fox, 44, of Shoemakersville, Pennsylvania, was charged today by Information with one count of intentionally causing damage to a computer, announced United States Attorney Zane David Memeger. The Information alleges that between September 11, 2015 and October 2, 2015, Fox sent unauthorized commands to a computer owned by UGI Utilities, Inc., a company that supplies natural gas to customers in Pennsylvania. The Information alleges that by sending these unauthorized commands, Fox intentionally changed the passwords and permissions for certain accounts on UGI’s computers. It is further alleged that Fox then sent commands to a UGI computer that caused the rerouting of emergency calls to UGI during certain time periods so that these emergency calls were not directed to the proper UGI telephone representatives, thus delaying the response to these high priority calls. The Information alleges that Fox’s computer intrusions caused more than $5,000 in damage and caused a threat to public safety.
If convicted the defendant faces a statutory maximum sentence of 10 years in prison, a possible fine, restitution to UGI, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Philadelphia 311 Employee Pleads Guilty to Counterfeiting SEPTA TransPassesRead the Press Release
PHILADELPHIA – Mark Cooper, 35, of Philadelphia, PA, entered a guilty plea today to a conspiracy involving more than 2,000 counterfeit monthly passes for Southeastern Pennsylvania Transportation Authority (SEPTA), and possession of access device making equipment announced United States Attorney Zane David Memeger. U.S. District Court Judge Berle M. Schiller scheduled sentencing for August 4, 2016.
Between August 2013 and June 2015, Cooper conspired with Kimberly Adams to produce and sell counterfeit SEPTA monthly TransPasses, which allow passengers to board SEPTA buses, trolleys and subway trains. Once Cooper created the counterfeit passes, he gave them to Adams. Adams met customers, predominately City of Philadelphia employees inside and outside of City Hall, and sold the counterfeit passes for approximately $50. A genuine monthly TransPass normally sells for $91. The defendants counterfeited and sold in excess of 2,000 monthly passes and split the proceeds.
Cooper faces a statutory maximum possible sentence of 20 years in prison, a fine of up to $500,000, four years of supervised release, and a $200 special assessment. Adams pleaded guilty on August 11, 2015 and is scheduled to be sentenced May 18, 2016.
The case was initiated by the City of Philadelphia Office of the Inspector General, jointly investigated with the FBI and the SEPTA Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Karen Marston.
Settlement Reached over University's Home Health Care BillingRead the Press Release
PHILADELPHIA – The United States has reached a settlement agreement with the Trustees of the University of Pennsylvania, on behalf of its operating divisions, including the University of Pennsylvania Health System (UPHS), for the alleged submission of false home health care billings to the Medicare program. The settlement includes $75,787 to resolve allegations that Penn Care at Home violated the False Claims Act by submitting claims to Medicare for services not rendered and for services that were not reasonable or necessary. As part of the settlement agreement, UPHS has also agreed to implement new compliance oversight measures for its home health entities and will annually submit certified compliance reports pertaining to its home health entities to the United States Attorney’s Office through 2019. The settlement releases UPHS from liability for conduct pertaining to a specific limited number of episodes of patient care.
The settlement resolves a lawsuit pending in federal court in the Eastern District of Pennsylvania that was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and U.S. Office of Personnel Management Office of the Inspector General. It was handled by Assistant United States Attorneys John T. Crutchlow and Gregory B. David.
Former Bank Manager Sentenced to Prison Term for EmbezzlementRead the Press Release
PHILADELPHIA - Fernando Sanchez, 42, of Lancaster, Pennsylvania, was sentenced on April 29, 2016 to 15 months of in prison for embezzling approximately $99,106 from a bank in Lancaster where he was employed as a manager. In addition to the prison term, U.S. District Court Judge Edward G. Smith ordered 24 months of supervised release and a $300 special assessment.
Sanchez perpetrated the thefts by making a series of electronic wire transfers to another financial institution where he maintained an account without the knowledge or approval of the account holder. Sanchez used a portion of the money that he had embezzled from his employer’s bank client, to pay personal expenses, such as credit card bills, and to give money to his relatives. After the wire fraud was discovered and Sanchez was confronted with evidence of his crimes, Sanchez repaid the money that he had stolen and admitted his guilt.
The case was investigated by Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Laurie Magid and Floyd J. Miller.
Defense Contractor Agrees to Pay $2.1 Million to Resolve Allegations of False Claims and OverchargesRead the Press Release
PHILADELPHIA – The United States has reached a settlement agreement with Hesco Bastion Limited (Hesco), based in Leeds, England, in which the company has agreed to pay $2.1 million to resolve allegations of false claims and overcharges, announced United States Attorney Zane David Memeger. The allegations stem from the international transportation of blast walls that Hesco manufactured and sold to the U.S. government. Hesco is a privately held company.
Hesco contracted with the Department of Defense to provide blast walls, also known as Concertainer Units, and to ship them from England to a U.S. military base in Germany. The government and Hesco agreed that the price for the transportation of the Concertainer Units would not exceed £650 per truckload of Concertainer Units. From 2002 until 2011, Hesco transported the Concertainer Units using a third-party freight forwarder. During that period, Hesco charged the government a fixed price of £650 per truckload, while paying its transportation subcontractor less than £650 per truckload, which the government contends violated the parties’ contracts.
In 2009, the government requested that Hesco provide documentation concerning the amount Hesco had been paying its transportation subcontractor for the transportation of the Concertainer Units. In response, the government alleged, Hesco knowingly provided the government false information concerning the amount that Hesco had been paying to its transportation subcontractor. The government further alleged that Hesco also knowingly misled the government by submitting 47 false invoices that were made to appear to be authentic invoices from the transportation subcontractor, and that Hesco engaged in a kickback scheme by which it received undisclosed off-invoice credits from its transportation subcontractor. The government contends that the submission of false invoices and the kickback scheme violated the False Claims Act.
The investigation was conducted by the Defense Criminal Investigative Service and the Defense Contract Audit Agency. The case was prosecuted by Assistant United States Attorneys Joel M. Sweet and Colin M. Cherico.
The claims resolved by this settlement are allegations only; there has been no determination of liability.
United States Settles Dispute with Grant Recipient over Its Use and Accounting of Federal FundsRead the Press Release
PHILADELPHIA - The United States reached a civil settlement today with Drakontas LLC, a for-profit technology company with offices in Glenside, Pennsylvania and Camden, New Jersey, that provides software and communications technology to various markets, including to law enforcement and public safety personnel. Under the settlement agreement, Drakontas LLC agreed to pay $155,322 to resolve allegations that it improperly spent federal grant funds that it received under cooperative agreements with the United States Department of Justice Office of Justice Programs.
Specifically, the United States contended that during the year 2010, Drakontas LLC’s accounting system lacked sufficient detail and did not comply fully with the requirements of the cooperative agreements and, as a result, the company did not accurately record and support all drawdowns of grant funds during that year. In addition, the United States contended that during years 2009 and 2010, Drakontas LLC was reimbursed for certain compensation of high-level company executives that exceeded the amounts permitted under the cooperative agreements.
Drakontas LLC’s payment of the settlement amount resolves those accounting problems during year 2010 and the company’s payment of excess compensation during years 2009 and 2010.
In addition to the payment of $155,322, Drakontas LLC agreed to undertake a broad compliance program to ensure proper use and accounting of federal grant funds in the future. For example, for each year in which Drakontas LLC receives federal funds, the company agreed to retain an independent auditing firm to review the company’s financial systems, internal controls, grant accounting, and compliance. Drakontas LLC also agreed to designate a Grant Compliance and Quality Assurance Coordinator, report credible evidence of misuse of federal funds, and undergo training on federal grant reporting and the use of federal funds. The settlement agreement requires Drakontas LLC to maintain records of the training and to submit compliance-related documents with any applications for federal grant funds.
The investigation and resulting settlement underscore the need for federal grant recipients to follow the rules for using and tracking grant funds — and, in particular, any rules that limit employee compensation — because grant recipients will be held accountable for mishandling funds. As part of this settlement, Drakontas LLC did not admit to liability or wrongdoing.
The allegations arose from an investigation led by the United States Department of Justice Office of Inspector General. The case was handled by Assistant United States Attorney Michael S. Macko.
Philadelphia Man Charged with Robbing BankRead the Press Release
PHILADELPHIA - Michael A. Dunn, 56, of Philadelphia, was charged today by indictment with one count of bank robbery, announced United States Attorney Zane David Memeger. The indictment charges that, on April 20, 2016, Robinson robbed the TD Bank at 1500 JFK Boulevard in Philadelphia.
If convicted of all charges, Dunn faces a statutory maximum sentence of 20 years in prison, a possible fine, a period of supervised release, and a $100 special assessment.
This case was investigated by the FBI, and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Man Charged with Illegal ReentryRead the Press Release
PHILADELPHIA - Gokhan Ayaz, 34, of Maple Shade, New Jersey, 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 4, 2016, Ayaz, an alien, and native and citizen of Turkey, was found in the United States after having been deported from the United States on or about March 11, 2013.
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 United States Customs and Border Protection (“CBP”), and is being prosecuted by Assistant United States Attorney Andrea Foulkes.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Montgomery County Resident Charged with Illegal ReentryRead the Press Release
Melkin Andeldo Estrada-Hernandez, a/k/a “Melkin Aneldo Estrada,” 30, of Oreland, 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 March 28, 2016, Estrada-Hernandez, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about June 28, 2012.
If convicted the defendant faces a statutory maximum sentence of 20 years in prison, a possible fine, a period of supervised release, and a $100 special assessment.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Judge Sends Armed Carjacker to Prison for More Than 40 YearsRead the Press Release
PHILADELPHIA - Desmond Janqdhari, 29, of Philadelphia, was sentenced on May 2, 2016, to 481 months in prison for armed carjacking, robbery, and firearms crimes. On January 28, 2016, a federal jury found Janqdhari guilty of robbery which interfered with interstate commerce (Hobbs Act robbery), armed carjacking, and two counts of using and carrying a firearm during a crime of violence.
On January 6, 2014, Janqdhari stole a 2005 Toyota Corolla by forcing the car’s owner to surrender her keys at gunpoint. On January 11, 2014, Janqdhari and co-defendant Keith Williams robbed the Wireless Factory Store at 5618 Germantown Avenue in Philadelphia. They stole $300 from the store while holding employees at gunpoint. Williams pleaded guilty and is awaiting sentencing.
In addition to the prison term, U.S. District Court Judge Michael M. Baylson ordered restitution to the victims in the amount of $440, five years of supervised release, and a $400 special assessment.
The case was investigated by the FBI and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Jose Arteaga.
Indictment Charges Philadelphia Man in Fraud Conspiracy Involving Tax and Other Financial CrimesRead the Press Release
PHILADELPHIA - A multi-count superseding indictment, unsealed Monday, charges Zaki M. Bey, 38, of Philadelphia, PA, with conspiracy to file false claims with the IRS, conspiracy to commit loan fraud and bank fraud, conspiracy to commit wire fraud and related charges, announced United States Attorney Zane David Memeger. According to the indictment, Bey conspired to file false federal income tax returns for tax years 2007, 2008, 2009 and 2010. Bey allegedly filed these tax returns claiming false withholding payments and Form 1099-OID (“Original Issue Discount”) income for his company, Natural Home Builders. Bey also allegedly assisted another individual in filing a false amended tax return with the IRS that included false withholding and Form 1099-OID income.
It is further alleged that beginning in 2007, Bey conspired with other individuals to submit false information in mortgage applications for at least 13 properties in the Germantown section of Philadelphia and in New Jersey. Bey was responsible in securing more than $2 million in residential mortgage loans on these properties, which were allegedly purchased by straw purchasers acting on Bey’s behalf. With the assistance of a co-conspirator who was a mortgage broker, Bey submitted loan applications to lenders containing false information about the straw buyers’ income, assets, extent of pre-existing liabilities and the intent to occupy the properties as primary residences. Bey and the co-conspirators also created and submitted altered payroll, wage and tax documents to lenders to support the fraudulent loan applications.
It is further alleged that beginning in 2010, Bey conspired with others to create false employment and payroll documents and make fraudulent loan applications made to lenders through auto dealerships in Philadelphia and New Jersey. Bey was able to obtain at least six automobiles purchased through straw buyers by submitting false loan applications based on income used from the fraudulent payroll documents.
If convicted, Bey faces a statutory maximum sentence of 253 years in prison, a possible fine, a period of supervised release, and a $1,500 special assessment.
This case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney James Pavlock.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged in Disability FraudRead the Press Release
PHILADELPHIA - Sheikh Mohammed Khurshan, 55, of Philadelphia, PA, was charged by indictment, unsealed today, in a disability benefits fraud, announced United States Attorney Zane David Memeger. Khurshan is charged with 11 counts of wire fraud, 16 counts of health care fraud, one count of Social Security fraud, one count of false statements, and one count of false statements in connection with an application for a passport. According to the indictment, the defendant applied for and received disability benefits from the Social Security Administration while lying and concealing his work activity.
As a result of this allegedly fraudulent application for disability benefits, the defendant also received health care services and treatment under Medicare and Medicaid. The defendant also applied for a replacement passport, allegedly lying that his passport had been lost. The defendant’s alleged actions resulted in a loss to the Social Security Administration of $145,166.24, and a loss to the U.S. Department of Health and Human Services of $181,851.86.
If convicted, the defendant faces a substantial period of incarceration, a period of supervised release, forfeiture, a possible fine, restitution of $327,018.10, and a $3,000 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General, the U.S. Department of Health and Human Services Office of Inspector General, and the Diplomatic Security Service. Assistance was provided by the FBI and the U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Judge Sentences Philadelphia Man to Nine Years for Child ExploitationRead the Press Release
PHILADELPHIA - Tony Myers, 30, of Philadelphia, PA, was sentenced today to 108 months in prison for two counts of receipt of child pornography and one count of possession of child pornography. Myers pleaded guilty, on September 21, 2015, to receiving and possessing images of child pornography between August of 2013 and April of 2014. In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered restitution of $5,000, 20 years of supervised release, and a $300 special assessment.
In May of 2013, the National Center for Missing and Exploited Children (NCMEC) sent a lead to Homeland Security Investigations (HSI) that on April 26, 2013, an individual operating a particular Dropbox account uploaded five files that contained child pornography.
On April 2, 2014, a search warrant was executed at the defendant’s residence. Myers made a number of admissions during the course of an interview with HSI agents. He stated that he watched and downloaded child pornography and preferred images of children between the ages of 12 and 14. He admitted to a pattern of binging on child pornography for three to four days and then breaking his addiction for months. Agents seized 16 forms of electronic media from Myers’ home and, through analysis, found approximately 500 images and more than 50 videos of child pornography.
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 U.S. Immigration and Customs Enforcement Homeland Security Investigations (“HSI”) and was prosecuted by Special Assistant United States Attorney Josh A. Davison.
Jury Delivers Guilty Verdicts in Fraud Scheme to Secure Bailout FundsRead the Press Release
PHILADELPHIA – A federal jury today returned verdicts of guilty against Brian Hartline, 51, of Collegeville, PA, and Barry Bekkedam, 48, of Hobe Sound, FL, in a fraud conspiracy involving NOVA Bank. Hartline had served as President and Chief Executive Officer of the bank and Bekkedam had served as Board Chairman. Their scheme involved the Troubled Asset Relief Program (TARP) and was devised to defraud the government of more than $13 million. Both defendants were found guilty of conspiracy to defraud the United States, TARP fraud, and two counts of false statements to the federal government. U.S. District Court Judge C. Darnell Jones scheduled a sentencing date for July 21, 2016.
Bekkedam and Hartline, with others, formed NOVA Bank in 2002. Bekkedam also owned and operated a financial advisory company, Ballamor Capital Management, and advised Ballamor clients to invest in NOVA. But in 2008, NOVA faced risk of failure because of bad loans and investments. In October 2008, NOVA Financial Holdings, Inc., of Berwyn, Penn., the parent company of NOVA Bank, applied for approximately $13.5 million through the U.S. Department of the Treasury Troubled Asset Relief Program. In June 2009, NOVA Bank was approved to receive the TARP funds on the condition that the bank raised $15 million in additional, private capital.
Bekkedam and Hartline devised a scheme to make NOVA bank appear more financially sound than it was – that new money was being inevested in the bank. As part of the scheme, the defendants arranged for NOVA Bank to loan money to G.L., a Florida businessman, for G.L. to transfer to NOVA’s parent company so it would appear as though the bank had new capital from an outside investor. In fact, the “new money” investment was the bank’s own money.
On June 30, 2009, NOVA wired $5 million to G.L.’s bank account in Florida and, approximately two hours later, G.L. wired $5 million to an account used for investments in NOVA Financial Holdings, Inc. In October and December 2009, Bekkedam and Hartline convinced two others to make similar “investments” using loans from NOVA, in efforts to make NOVA appear more financially sound than it actually was. The defendants also told and directed employees to tell the U.S. Department of Treasury that NOVA had raised new capital when it had not. The defendants concealed the true purpose of the loan to G.L. and falsely stated the purposes of the other two loans.
The bank ultimately did not receive TARP funds and in October 2012, the bank failed and was closed by state and federal banking regulators.
The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service Criminal Investigations, the Federal Deposit Insurance Corporation Office of Inspector General, the Office of Inspector General of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. It is being prosecuted by Assistant United States Attorneys David Ignall and Jennifer Barry.
Bucks County Man Indicted on Child Pornography and Obstruction of Justice ChargesRead the Press Release
PHILADELPHIA – Norman Ridgeway, 26, of Croydon, Pennsylvania, was charged by Indictment today with production of child pornography, distribution of child pornography, and possession of child pornography, announced United States Attorney Zane David Memeger.
Additionally, Ridgeway was charged with one count each of obstruction of justice and destruction of evidence. According to the indictment, while law enforcement was in pursuit of Ridgeway, Ridgeway “wiped” his cell phone by resetting it to factory settings in an effort to alter, destroy, and conceal evidence of child pornography. Further, Ridgeway allegedly made a telephone call in which he instructed and commanded another person to locate, obtain, and destroy an SD memory card he kept in his wallet which contained child pornography.
If convicted, the defendant faces a mandatory minimum sentence of 15 years in prison, with a maximum possible sentence of 100 years in prison, a possible fine, three years of supervised release, and a $700 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 FBI and the Washington, D.C. Metropolitan Police Department, with assistance provided by the Bensalem Township Police Department, the Warminster Township Police Department, the Middletown Township Police Department, and the Bristol Township Police Department. 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.