Eastern District of Pennsylvania

PHILADELPHIA – United States Attorney Zane David Memeger announced that the United States Court of Appeals for the Third Circuit, sitting en banc, issued a ruling on Monday, August 1, 2016, concluding that the United States had a right to keep ten 1933 $20 gold coins that have been the subject of years of litigation.  In 2011, a jury had determined that the coins were forfeited to the United States as stolen property from the United States Mint, and District Court Judge Legrome D. Davis additionally declared that the coins had always been the property of the United States.  In 2015, a panel of the Court of Appeals vacated that decision, holding that government employees had violated a deadline for administrative action to obtain adjudication of the coins’ ownership.  Today’s decision asserts that the government did not violate any deadline, and reinstates the decisions of the jury and the district court validating the government’s title to its property. 

The 1933 coins, known as Double Eagles, are twenty dollar gold pieces that were manufactured by the United States Mint in 1933.  The coins were never released to the general public, however, because President Franklin Delano Roosevelt issued Executive Orders taking the United States off the gold standard, prohibiting the Mint from releasing any gold, and requiring all persons to redeem their gold coins for paper currency or non-gold coin. Nevertheless, a number of 1933 Double Eagles gold pieces have surfaced over the ensuing decades.

The Court of Appeals noted in its opinion that the United States Secret Service has investigated this matter since the government first became aware of a 1933 Double Eagle being put up for public auction in 1944.  The United States has recovered every 1933 Double Eagle that it was able to locate, including one coin that the government had inadvertently permitted to be exported to King Farouk in Egypt in 1944.  That coin was brought back to the United States by a London coin dealer in 1996.  It was eventually sold at auction for $7.6 million, with the government and the coin dealer splitting the proceeds.

The Court also noted that the Secret Service investigation determined that all of the recovered pieces were traced back through the Secret Service investigation to Israel Switt, a Philadelphia merchant.  After the sale of the Farouk coin, Mr. Switt’s daughter, Joan Langbord, reported finding ten of the coins in a safe deposit box that had previously belonged to her mother.  

In its decision, the en banc Court of Appeals affirmed that the ten coins are property of the United States, finding that “the evidence at trial demonstrated overwhelmingly that no 1933 Double Eagle ever left the Mint through authorized channels and any that did were either stolen or embezzled.”  The Court noted that the Mint’s records were remarkably detailed, to the level of showing a transaction involving three pennies and their year of minting. 

Zane David Memeger, the United States Attorney, stated: “We are gratified for the Third Circuit’s decision recognizing the United States’ ownership of these rare coins.”  Rhett Jeppson, Principal Deputy Director for the United States Mint, stated:  “We appreciate the Court’s decision confirming that these national treasures are and always have been property of the United States Mint.  Today’s decision is a victory not only for the integrity of government property and the rule of law, but for the integrity of the numismatic hobby.”

The case was investigated by U.S. Secret Service, with the assistance of the U.S. Mint Police, and presented by Assistant United States Attorneys Jacqueline Romero, Nancy Rue, and Joel Sweet.  The appeal was argued by Assistant United States Attorney Robert A. Zauzmer. 

UNITED STATES ATTORNEY'S OFFICE     Contact:     Michele Mucellin

EASTERN DIS­TRICT, PENN­­­­­­SYLVANIA                           Media Contact­

Suite 1250, 615 Chest­nut Street                                             215-861-8218

Philadelphia, PA  19106        

Andrew Heineman, 30, of Philadelphia, PA, was charged yesterday by Information1 with multiple counts of wire fraud, announced United States Attorney Zane David Memeger.  The indictment alleges that in April 2015 through August 2015, Heineman stole money from his employer, Genji Sushi, by issuing unauthorized checks to himself and depositing them into his personal bank account. Some of these ill-gotten funds purchased a Chevrolet Tahoe, which has since been seized by the government.

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

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

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

Daniel Christensen, 42, of Philadelphia, PA was charged today by Information1 with one count of wire fraud in connection with a scheme that defrauded the South Street Headhouse District (“SSHD”) while he was Chairman of the Board, announced United States Attorney Zane David Memeger.

Daniel Christensen, who owned and operated Copabanana and Redwood, illegally withdrew funds from various SSHD accounts to use to float his own business accounts.  During the course of the scheme, from approximately November 2014 to June 2015, Christensen withdrew approximately $1.4 million from SSHD accounts which were subsequently replaced.

If convicted, the defendant faces a statutory maximum sentence of 20 years in prison, restitution, a period of supervised release, a $100 special assessment, and a possible fine.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.

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

             Sean Fager, 51, of Reading, PA, was charged today by Indictment1 with two counts of production of child pornography, one count of transportation of child pornography, and two counts of possession of child pornography, announced United States Attorney Zane David Memeger.

             If convicted, the defendants face a mandatory minimum sentence of fifteen years’ imprisonment and a maximum sentence of thirty years’ imprisonment on each of counts one and two, a mandatory minimum sentence of five years’ imprisonment and a maximum sentence of twenty years imprisonment on count three, a maximum sentence of 20 years’ imprisonment on each of counts four and five, a $1,250,000 fine, a mandatory minimum period of five years up to lifetime period of supervised release, and a $500 special assessment. 

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

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

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

James Parker, 50, of Philadelphia, Pennsylvania was charged today by Indictment1 with robbery which interferes with interstate commerce and using, carrying, and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney Zane David Memeger. The charges arise from the defendant’s violent robbery of the Tavern on Broad restaurant, located at 200 S. Broad Street in Philadelphia, Pennsylvania, during which, the Indictment alleges, the robber held a gun to the back of the victim employee’s neck, beat him repeatedly in the head with a gun, before forcing him to open the business’ safe, from which he stole approximately $8,000.

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

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

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

PHILADELPHIA – John Wesley Herder, 50, of Philadelphia, PA, was sentenced today to 50 months in prison for delivering contraband to inmates at the Curran-Fromhold Correctional Facility (CFCF), in Philadelphia, where he worked at the time.  On October 16, 2013, Herder smuggled past prison security at the CFCF a cellular telephone and 100 pills, represented to contain OxyContin, in exchange for $1,000. Then, on January 15, 2015, Herder again smuggled past prison security at the CFCF 100 pills, represented to contain OxyContin, in exchange for $1,000. When the FBI questioned Herder about his contraband smuggling activities, Herder falsely stated that he had never brought contraband into the CFCF. On January 20, 2016, Herder pleaded guilty to one count of attempted extortion under color of official right, one count of attempted distribution of controlled substances, and one count of making false statements to federal law enforcement officers.

In addition to the prison term, U.S. District Court Mark A. Kearney ordered a $1,000 fine, three years of supervised release, a $1,000 forfeiture money judgment, and a $300 special assessment.

The case was investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Department of Corrections. It is being prosecuted by Assistant United States Attorney Kevin R. Brenner.

Jeffrey Keagle, 48 of, Folcroft, PA was charged today by Indictment1 of distribution, receipt, and possession of a collection of more than 75,000 images and videos of children being sexually abused and in sexually explicit positions on various dates in 2015 and 2016 announced United States Attorney Zane David Memeger. Keagle is currently incarcerated in Delaware County on local charges and will be transported for his initial appearance in Magistrate Court in the Eastern District of Pennsylvania.

If convicted the defendant faces a maximum possible sentence of 80 years’ incarceration, a 5 year mandatory minimum, $1,000,000 in fines, and a $60,000 mandatory special assessment.

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

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

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

Nickaury DeJesus, a/k/a Nickaury DeJesus-Montanez, 22 years old, of Allentown, Pennsylvania, was sentenced late yesterday to 36 months in prison for straw purchasing five firearms in Lehigh County. DeJesus had pleaded guilty to five counts of making false statements to a federalfirearms licensee in connection with the purchase of five semi-automatic pistols. As she admitted in her guilty plea, DeJesus falsely certified when buying each of the pistols that she was the actual purchaser when, in fact, she was buying them for another person or persons.

Over an approximately month-and-a-half period in April and May 2015, DeJesus straw purchased the five handguns at two federal firearms licensees in Breinigsville and Whitehall, Pennsylvania. Two of those firearms were subsequently recovered during arrests of persons in Allentown and Brooklyn, New York. Another two of the firearms straw purchased by DeJesus were charged in a federal indictment, in which DeJesus was not charged, alleging seven armed robberies of commercial establishments in Allentown in May 2015.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Allentown Police Department and was prosecuted by Assistant United States Attorney Eric Boden with assistance provided by the Lehigh County District Attorney’s Office.

Drew Alia, 40, a Philadelphia attorney, was charged today in a Criminal Information[1]  with willfully failing to file federal income tax returns announced United States Attorney Zane David Memeger.  

According to the Information, Drew Alia, was who licensed to practice law in the Commonwealth of Pennsylvania during the period of 2010 through 2013, operated a home mortgage rescue service which offered professional services to home owners who were facing a mortgage foreclosure by obtaining financing to prevent a foreclosure on the home owner’s mortgage.  For these services, Drew Alia received fees which he failed to report as gross income on federal income tax returns that he was required, by law, to file for tax years 2010 through 2013.

If convicted the defendant faces a maximum possible sentence 4 years, a fine of $400,000 and a special assessment of $100.00.

The case was investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Floyd J. Miller.

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

Muadhdhin Bey, age 33, of Philadelphia, Pennsylvania, was charged today by Indictment1 with possessing a firearm and ammunition on March 28, 2016, after having been convicted of a felony offense, announced United States Attorney Zane David Memeger.

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

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

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

Defendant Wilson Bonilla Soliveras, 34 years old, of the City of Lancaster, Pennsylvania, was charged today by Indictment with making a false statement to a federal firearms licensee in the acquisition of a semi-automatic pistol for another person, announced United States Attorney Zane David Memeger.

The indictment1 alleges that on March 4, 2016, defendant Soliveras straw purchased a .40 caliber semi-automatic pistol for another person, who was a convicted felon and therefore prohibited from buying firearms.  In making the straw purchase, the indictment alleges, Soliveras falsified a record required to be maintained by the federally licensed firearm dealer, falsely certifying, after being warned that doing so was a crime punishable as a felony under federal law, that Soliveras was the actual buyer of the pistol when he knew that he was buying it for the other person.  The indictment alleges that on April 1, 2016, the City of Lancaster Police Department recovered the pistol, which was then loaded with one live round of ammunition in the firing chamber and 14 additional live rounds of ammunition in the magazine, from the actual buyer.  After the pistol’s seizure, the indictment alleges, defendant Soliveras falsely reported to police that it had previously been stolen from him.  If convicted the defendant faces a maximum possible sentence of 5 years’ imprisonment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the City of Lancaster Police Department, and the Lancaster County District Attorney’s Office and is being prosecuted by Assistant United States Attorney Eric B. Henson.

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

RAUL RODRIGUEZ, 40 years old of Bethlehem, Pennsylvania, was charged today by Indictment1 with one count of robbery which interferes with interstate commerce, one count of possession of a firearm during a crime of violence, and one count of possession of a firearm by a convicted felon announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli.  The defendant is alleged to have obstructed, delayed and affected commerce and the movement of articles and commodities in commerce by aiding and abetting the robbery of Envios Giraldo, a check-cashing business located at 331 South New Street in the City of Bethlehem, in the Eastern District of Pennsylvania on November 12, 2014.  The defendant and his conspirator possessed a firearm when committing the robbery, and threatened violence against an employee of Envios Giraldo with the firearm, while unlawfully taking $11,140 in United States currency from the business.  The defendant is a convicted felon, who is not permitted to possess a firearm in the United States.

If convicted on the robbery which interferes with interstate commerce, defendant Rodriguez faces a maximum possible sentence of 20 years imprisonment, a 3 year mandatory period of supervised release up to a lifetime of supervised released, a $250,000 fine, and a $100 special assessment.  If convicted on possession of a firearm during a crime of violence, defendant Rodriguez faces a maximum of life imprisonment with a mandatory minimum 7 years’ imprisonment consecutive to any other sentence imposed, a 5 year period of supervised release, a $250,000 fine, and a $100 special assessment.  If convicted on the possession of a firearm by a convicted felon, defendant Rodriguez faces a maximum possible sentence of 10 years imprisonment, a 3 year supervised release, a $250,000 fine, and $100 assessment.

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

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

PHILADELPHIA – A superseding indictment was filed yesterday charging three men with dealing in firearms without a license, announced United States Attorney Zane David Memeger.  Darien Montae Thompson, 22, Omar Tarik Davenport, 24, and Sekou Maliek Davenport, 21, all of Philadelphia, are charged with selling guns that were previously reported stolen from homes and vehicles. Thompson and Omar Davenport are also charged with conspiracy, interstate travel in furtherance of dealing in firearms without a license, and possession of a short-barreled rifle; Omar and Sekou Davenport are also charged with possession of a firearm by a convicted felon.

            According to the indictment, the defendants illegally acquired firearms in the state of Georgia and transported the firearms to Pennsylvania for illegal sale.  Guns that the defendants allegedly sold had been reported stolen from homes in Georgia, Pennsylvania, and South Carolina.  Omar Davenport was on state parole, following a felony conviction, during the time of the alleged conspiracy.

            If convicted of all charges, Thompson faces a maximum statutory sentence of 55 years in prison and a $700 special assessment; Omar Davenport faces a maximum statutory sentence of 80 years in prison and a $800 special assessment; Sekou Davenport faces a maximum statutory sentence of 50 years in prison and a $500 special assessment.  Each defendant also faces supervised release and a possible fine.

            The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Mark Miller.                                                                        

An Indictment, Information or Criminal Complaint is an accusation.  A defendant is presumed

innocent unless and until proven guilty.

An Indictment1 was unsealed today charging George Barnard, 45, of Newtown Square, with 24 counts of wire fraud, four counts of bank fraud, and three counts of filing a false tax return, announced United States Attorney Zane David Memeger.

The indictment alleges that Barnard, who from 2005 to March 2013 was one of the two owners of Capital Financial Mortgage Corporation ("CFMC"), based in Delaware County, Pennsylvania, and also was the owner of several title companies, defrauded banks out of almost $13 million dollars and instead of using the money to fund mortgage loans for borrowers and pay off the borrowers’ existing mortgages, he took the money for his personal benefit, including buying yachts, luxury cars, multi-million dollar beach homes in Avalon, New Jersey, and paying the salary of a yacht captain. The indictment further alleges that in order to continue to have access to a large pool of money to fund his extravagant lifestyle, Barnard orchestrated a massive fraud scheme, which included selling other banks the mortgages that CFMC had written and representing to the lenders who purchasing those mortgages that they were first mortgages, when in reality they were worthless second mortgages.

The indictment alleges that while the tax returns Barnard filed with the IRS showed hundreds of thousands of dollars in losses, in reality Barnard had more than $2,300,000 in unreported income, and in order to convince other banks to issue mortgage loans to him so he could purchase yachts and multi-million dollar beach homes, Barnard gave false tax returns to

the banks with inflated income figures, and on at least one occasion, told the bank that he was buying the beach home for more than $3,000,000 when in reality the sales price was $2,000,000. The indictment alleges that Barnard was able to conceal this deception by using his own title company to handle the closing of that loan and falsifying closing documents.

The indictment alleged that as a result of Barnard’s actions, lenders suffered losses of more than $12,700,000, and more than 25 borrowers who obtained refinance loans from CFMC were stuck with two mortgages on their homes after Barnard’s companies failed to pay off the borrowers’ existing first mortgages.

Barnard faces a maximum sentence of 669 years’ imprisonment, a five-year period of supervised release, a $12,300,000 fine, a $3,300 special assessment, and a likely advisory sentencing guideline range of 135 – 168 months’ imprisonment.

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

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

            Michael Katzin, 35  of Philadelphia was sentenced to 112 months’ imprisonment yesterday by the U.S. District Court Judge Gene E.K. Pratter after having been found guilty by a jury in January 2016 of one count of conspiracy to commit pharmacy burglary, one count of conspiracy to possess with the intent to distribute controlled substances, one count of pharmacy burglary, and one count of possession with the intent to distribute controlled substances, announced United States Attorney Zane David Memeger. 

            The defendant conspired and agreed with his brothers Harry Katzin and Mark Katzin, both convicted previously, and others known and unknown to the grand jury, to enter Rite Aid pharmacies, including the Rite Aid pharmacy located at 1852 Brownsville Rd, Feasterville-Trevose, Pennsylvania on November 18, 2010, and the Rite Aid pharmacy located at 807 S. 4th Street, Hamburg, Pennsylvania on December 16, 2010, with intent to steal materials and compounds containing any quantity of a controlled substance, including amphetamine salts, dextroamphetamine, fentanyl, methylphenidate, dexmethylphenidate, morphine sulfate, meperidine, oxymorphone, tapentadol, codeine sulfate, hydromorphone, hydrocodone, hydrocodone APAP, hydrocodone chlorpheniram, oxycodone, and oxycodone APAP, each a Schedule II controlled substance; and whose replacement value was not less than $500, and to knowingly and intentionally possess these controlled substances with the intent to distribute them.  

                        As part of its verdict, the jury found the defendant guilty of burglarizing the Rite Aid Pharmacy at 807 South 4th Street, Hamburg, Pennsylvania on December 16, 2010, with intent to steal materials and compounds containing any quantity of a controlled substance, including to Schedule II and other controlled substances, including amphetamine salts, dextroamphetamine, fentanyl, methylphenidate, dexmethylphenidate, morphine sulfate, meperidine, oxymorphone, tapentadol, codeine sulfate, hydromorphone, hydrocodone, hydrocodone APAP, hydrocodone chlorpheniram, oxycodone, and oxycodone APAP; all Schedule II controlled substances; and whose replacement value was not less than $500, and possessed these controlled substances with intent to distribute them.

            The case was investigated by agents from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the Southampton Township Police Department, and the Hamburg Borough Police Department, and was prosecuted by Assistant United States Attorney Thomas M. Zaleski.

PHILADELPHIA- Kenneth Nesmith, 31, of Philadelphia, was sentenced today to 110 months in prison for his role in an illegal gun trafficking conspiracy as well as a drug trafficking conspiracy.  

Nesmith sold four dangerous firearms: 1) a fully automatic machine gun; 2) an SKS style semi-automatic rifle; 4) an AR-15 style semi-automatic rifle; and 4) a 9 millimeter carbine rifle and 59.9 grams of crack cocaine to undercover officers.  The operation was brought to a halt by an undercover investigation involving the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Nesmith pleaded guilty to conspiracy, gun trafficking, drug trafficking, and two counts of being a felon in possession of a firearm. 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by Assistant United States Attorney Jessica Natali.

Mikey Phang, 29, of Philadelphia, PA, was charged today by Indictment[1] with bank robbery, announced United States Attorney Zane David Memeger.  The indictment alleges that the defendant robbed the PNC Bank branch located at 1849 Walnut Street, Philadelphia, Pennsylvania on April 29, 2016, and stole approximately $2,411.98 after presenting a note to the teller demanding cash and representing that he was armed with a gun.  The indictment further alleges that the defendant attempted to rob the HSBC Bank branch located at 1027 Arch Street, Philadelphia, Pennsylvania on June 29, 2016, by entering the bank and presenting a note to the teller demanding cash and representing that he was armed with a gun.   

If convicted the defendant faces a maximum possible sentence of 40 years’ imprisonment.

The case was investigated by the FBI, and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.

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

PHILADELPHIA- Ian Ranberg, 50, of Souderton, PA, was sentenced today to 15 years in prison for distribution, receipt and possession of child pornography.   On August 21, 2013, Homeland Security Investigations agents executed search warrants on Ranberg’s email account and at his home in Souderton, PA and recovered hundreds of thousands of images and videos of child pornography on various electronic devices.   On September 23, 2014, Ranberg pleaded guilty to distribution, receipt and possession of child pornography.   In addition to the prison term, U.S. District Court Judge Gene E.K. Pratter ordered 10 years of supervised release, restitution of $25,000, and a $400 special assessment.

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

The case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorney Jessica Natali.

PHILADELPHIA - Thomas Vitanovitz, 32, of Philadelphia, PA, plead guilty today to extortion of an alleged drug dealer while working as a Philadelphia Police Officer, announced United States Attorney Zane David Memeger.

Vitanovotz while employed as a Philadelphia Police Officer assigned to the 24th District, seized 50 pills that Vitanovitz believed to be a controlled substance from an individual identified in the indictment as Person 1, under the color of official right.

Vitanovitz faces a statutory maximum sentence of 20 years in prison, a possible fine, supervised release, and a $100 special assessment.   The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police

Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.

            An Indictment[1] was unsealed today charging Sean Donald Premock, 43, of Ft. Lauderdale, Florida, with nine counts of mail fraud, nine counts of wire fraud, one count of securities fraud, and one count of investment adviser fraud, announced United States Attorney Zane David Memeger.                            

            The indictment alleges that Premock, a Florida stockbroker and investment adviser who started his own investment and financial planning companies after being fired by his previous employer for selling investments that were not approved by his employer, used his companies to defraud clients, most of whom were elderly, convincing the clients to invest with him by promising to invest their money in stocks, bonds, annuities, hedge funds, and “safe” investments, while in reality Premock spent most of their money on himself and used some of the money to pay other clients. The indictment further alleges that Premock continued to hold himself out as a stock broker and investment adviser even after his licenses were suspended and after he was permanently barred by FINRA from working as a stock broker or otherwise associating with a firm that sold securities to the public, and that he failed to disclose the suspension and permanent bar to his clients.     

            Premock faces a maximum sentence of 385 years’ imprisonment, a five-year period of supervised release, a $9,510,000 fine, and a $2,000 special assessment, and a likely advisory sentencing guideline range of 87 – 108 months’ imprisonment.

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

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

            Herbert Franklin Green, a 47-year old lawyer from Washington, DC, pled guilty today before the Honorable Juan R. Sanchez to conspiracy to commit wire fraud and wire fraud. Co-defendant Marc Hubbard, 49 years old from Cornelius, NC, pled guilty last Thursday. The defendants pled guilty to perpetrating a scheme to defraud investors in a purported concert promotion business that Hubbard owned called Sports Dimensions, Inc. (“SDI”). Hubbard lied to investors when he represented that their investments were being used to promote well-known artists like Beyonce, JayZ, and Alicia Keys. Instead, their money was being used to pay off previous investors and for the defendants’ own personal use. Green, formerly with Cozen and O’Connor and who also previously worked at the SEC, prepared the promissory notes for the fraudulent investments and provided legitimacy to the scheme. During the course of the scheme, the defendants provided investors with fraudulent documentation to induce them to invest more money and convince them that their investments were secure.

            Hubbard, who pled guilty to the eight-count indictment, faces a possible statutory maximum sentence of 160 years’ imprisonment, a three-year period of supervised release, and a $2,000,000 fine or twice the gain or loss. Green who pled guilty to two counts faces a possible statutory maximum sentence of 40 years’ imprisonment, a three-year period of supervised release, and a $500,000 fine or twice the gain or loss. Judge Sanchez scheduled Hubbard’s sentencing for September 29, 2016 and Green’s for October 12, 2016.

            This case was investigated by the Postal Inspection Service and Federal Bureau of Investigation and is being prosecuted by Jennifer Chun Barry.

Nathaniel Rodriguez, 41, of Philadelphia, PA pled guilty today to two counts of kidnapping, announced United States Attorney Zane David Memeger. On November 6, 2015, Rodriquez forced victim #1 to accompany him to several ATM machines on South Street in Philadelphia, and to take money from one machine. On November 11, 2015, Rodriguez forced victim #2 to drive him from Center City to ATM machines near Aramingo Avenue and I-95, and attempted to take money from those machines. Rodriguez forced victim #2 to buy him cigarettes before fleeing with the victim’s car and cell phone.

The defendant faces a maximum possible sentence of life imprisonment.

The case was investigated by the Federal Bureau of Investigations and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.

PHILADELPHIA - William Joseph Boyle, 53, of Bala Cynwyd, Pennsylvania, was charged by indictment yesterday with five counts of mail fraud, three counts of wire fraud, one count of securities fraud, and one count of investment adviser fraud, announced United States Attorney Zane David Memeger.

The indictment alleges that Boyle, a Bala Cynwyd-based stockbroker and investment adviser, defrauded clients, most of whom were elderly, out of over $400,000, convincing them to invest with him and utilize his services as a financial adviser by holding himself out as an investment adviser and promising to invest their money in stocks, Pennsylvania municipal bonds, interest bearing investments, and real estate, while in reality Boyle spent almost all of their money on himself, including giving client money to his wife and ex-wife, paying his children’s Catholic school tuition; and purchasing a liquor license for, and purchasing, renovating, and operate a bar called “The Blarney South Bar and Grille,” which Boyle renamed “The Boyler Room,” located in Philadelphia, Pennsylvania. The indictment also alleges that Boyle used some of the client funds to make payments to earlier clients who had invested, thereby inducing those earlier clients to believe that their investments were safe and profitable.

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

Boyle faces a possible advisory sentencing guideline range of 57 to 71 months in prison, restitution, a period of supervised release, a possible fine, and a $1,000 special assessment.

The case was investigated by U.S. Immigration and Customs Enforcement’s  (ICE) Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

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

PHILADELPHIA - Delvin Barnes, 38, of Charles City County, Virginia, was sentenced today to 35 years in prison for kidnapping.  Barnes pleaded guilty to the charge on September 10, 2015.  In addition to the prison term, U.S. District Court Judge J. Curtis Joyner ordered a $100 special assessment.

On November 2, 2014, at approximately 9:40 p.m., in the area of 100 W. Coulter Street in Philadelphia, Barnes violently grabbed a 22-year old woman from a sidewalk as she walked home.  Barnes dragged the victim down the street and forced her into his car.  A video recording capturing the abduction shows the victim struggling with the defendant in her attempt to get away.  The victim struck Barnes in the head with a hammer after he forced her into his car.  The defendant threatened that if she did not stop fighting, he would kill her.   

Barnes drove to Maryland with the victim, bound by her wrists, in the trunk of the car.  On November 5, 2015, federal agents arrested Barnes in Jessup, Maryland, and the victim was rescued.  She identified Barnes as her abductor. 

The case was investigated by the FBI, the Philadelphia Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshal’s Service with assistance from the Charles City County Sheriff’s and Kent County Sheriff’s Offices.  It was prosecuted by Assistant United States Attorney Jeanine Linehan.

PHILADELPHIA - Nelson Rodriguez, 65, of Philadelphia, Pennsylvania, was charged today by information with attempted possession with intent to distribute and aiding and abetting the attempted possession with intent to distribute methamphetamine, announced United States Attorney Zane David Memeger. The charge arises from the defendant’s involvement in the shipment of methamphetamine using the U.S. Postal Service Priority Mail.

If convicted the defendant faces a maximum possible sentence of 20 years in prison.

The case was investigated by United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.

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

PHILADELPHIA – Bassem Kuran, 23, of Philadelphia, PA, pleaded guilty on June 28, 2016 to criminal Information charging him with false statements in a health care matter, announced United States Attorney Zane David Memeger.  The defendant faces a maximum possible sentence of 5 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment.  U.S. District Court Judge Gerald J. Pappert scheduled a sentencing hearing for September 30, 2016.   

            Kuran was the owner and President of VIP Ambulance, a company that provided ambulance services to Medicare beneficiaries seeking dialysis services. Kuran admitted to completing documentation for ambulance runs that did not occur, including documentation for patients who were no longer receiving dialysis or who actually took public transportation to the dialysis clinic.  Kuran submitted bills to Medicare for these purported transports, which Medicare paid, and he personally provided copies of the false documentation supporting those bills to Medicare’s auditors in an attempt to justify the fraudulent bills that VIP had submitted. 

As a result of the defendant’s false statements, the Medicare program paid more than $66,000 in inappropriate bills. 

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

PHILADELPHIA – Today, defendant Ronald Allen, 61, of Lansdale, was sentenced to 18 months imprisonment, which he was ordered by U.S. District Court Judge Paul S. Diamond to start serving immediately, and further ordered to pay a $120,000 fine.

The defendant pleaded guilty to an Information charging one count of subscribing a false income tax return.  The evidence showed that for the years 2008 through 2012, the gross receipts that the defendant reported in his corporate income tax returns were understated by the following amounts: $150,000, $150,000, $256,248, $351,416, and $307,666.  During those same years, the defendant understated the net profits that he reported in his individual returns by precisely the same amounts. Between the years 2008 and 2012, the defendant saved approximately $248,328 in unpaid taxes and collected approximately $36,863 in undeserved tax refunds.

The case was investigated by the IRS-Criminal Investigations, and is being prosecuted by Assistant United States Attorney Kevin Brenner.

PHILADELPHIA - Anthony Guerriero, 41, of Philadelphia, Pennsylvania, was charged by indictment today with one count of importation of a controlled substance analogue, and one count of importation of a List I chemical, announced United States Attorney Zane David Memeger.  According to the indictment, Guerriero illegally imported 8.16 liters of gamma-hydroxybutyric acid (“GBL”), a controlled substance analogue and an illegal List I chemical, into the United States from China

If convicted of all charges, Guerriero faces a maximum statutory sentence of 40 years in prison, a possible fine, a special assessment of $200, and three years of supervised release.

The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations (“HSI”), U.S. Customs and Border Protection, and members of HSI’s Philadelphia Border Enforcement Security Task Force, including the Pennsylvania Attorney General’s Office’s Bureau of Narcotics Investigations, the Delaware County Criminal Investigations Division, and ICE’s Enforcement and Removal Operations.  The case is being prosecuted by Assistant United States Attorney James A. Petkun.

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

PHILADELPHIA – A federal jury, late yesterday, found William J. O’Brien III, a doctor of osteopathic medicine, guilty of causing a death through the illegal distribution of a controlled substance and a number of other charges related to the operation of a “pill mill,” announced United States Attorney Zane David Memeger.

“The illegal prescribing of opioid pain medications has led to an epidemic of overdose deaths and heroin addiction throughout the country,” said Memeger.  We are pleased that the jury saw through Dr. O'Brien's clown act at trial and concluded that for the sake of profit he distributed opioid pain killers for no legitimate medical purpose, and that he caused the death of a patient through his illegal prescribing practices.”

"We are thankful the jury saw the obvious - that the defendant is a dangerous person exploiting his medical license to operate as a drug dealer," said Special Agent-in-Charge Nick DiGiulio, with HHS-OIG. "We look forward to the day he receives a long prison term.  The Department of Health and Human Services Office of Inspector General will continue to work with our partners to protect HHS programs and the beneficiaries from harm."

"The defendant’s behavior and the resulting harm inflicted on our communities is nothing short of disgraceful," said FBI Special Agent-in-Charge William Sweeney. "Our communities are facing a crisis involving prescription and opioid abuse which is only made worse by insiders, like the defendant, who used his degree and position of trust to benefit himself by victimizing vulnerable individuals. He was an integral player in this drug distribution conspiracy. Amid an unprecedented opioid epidemic, the defendant deliberately breached his solemn oath to ‘do no harm,’ and instead dispensed oxycodone and methadone like candy – which he knew would end up on the street – even contributing to a death. I am grateful for the hard work and professionalism demonstrated by the agents and prosecutors who conducted this investigation, and I encourage the public to report any concerns regarding prescription abuse to law enforcement.”

Specifically, the jury returned guilty verdicts on two counts of conspiracy to distribute controlled substances; one count of distribution of controlled substances resulting in death; 117 counts of distribution of controlled substances, that is, oxycodone, methadone, and amphetamines; money laundering conspiracy; conspiracy to commit bankruptcy fraud; and making false statements under oath in a bankruptcy proceeding.  The defendant was acquitted of four counts of distribution of controlled substances. A sentencing hearing is scheduled for October 5, 2016.  Defendant O’Brien faces a mandatory minimum sentence of 20 years in prison with a maximum sentence of life.  The co-conspirators, all of whom pleaded guilty, face substantial prison terms and fines, and are subject to criminal forfeiture proceedings.

Charged in the conspiracy with O’Brien were members of the Pagans Motorcycle Club.  The trial evidence showed that between March 2012 and January 2015, O’Brien dispensed, and his coconspirators unlawfully obtained for resale, approximately 378,914 pills which contained 10 mg, 15 mg or 30 mg of oxycodone; and approximately 160,492 methadone pills. The estimated street value of the controlled substances sold by the conspiracy was estimated at approximately $5 million. O’Brien generated for himself an estimated $2 million in cash proceeds from the drug trafficking conspiracy.

As proven at trial, O’Brien conspired with members or associates of the Pagans to distribute large quantities of dangerous and addictive controlled substances for profit.  O’Brien and his co-conspirators developed a scheme whereby so-called “patients” were recruited, would pay O’Brien $200 cash, and would receive medically unnecessary prescriptions for controlled substances for resale. With cash-paying “patients,” O’Brien could conceal money from creditors and the United States Bankruptcy Court where he had filed for Chapter 11 protection for his company WJO, Inc., a group of medical practices which he owned. After filling the prescriptions they got from O’Brien, the “patients” would turn the pills over to the co-conspirators who would sell the pills to drug dealers. Certain controlled substances, such as oxycodone (30 mg), were in high demand. One oxycodone 30 mg pill could sell for $25 on the street.

Distribution of Controlled Substances Resulting in Death

The jury found O’Brien guilty of intentionally distributing, outside the usual course of professional practice and for no legitimate medical purpose, controlled substances to a particular individual that resulted in that individual’s death.  Defendant O’Brien wrote prescriptions for oxycodone, methadone, and cyclobenzaprine, a muscle relaxer, to Joseph Ennis, 36, of Bucks County, after Mr. Ennis had initially sought treatment from the defendant following a car accident.  On December 17, 2013, O’Brien prescribed oxycodone and methadone without a legitimate medical purpose, which combined with the cyclobenzaprine, led to Mr. Ennis’ death.  Mr. Ennis died five days later on December 22, 2013 from the combination of these substances.

Conspiracy to Engage in Money Laundering and Bankruptcy Fraud

The trial evidence showed that O’Brien generated at least approximately $20,000 per week in illegal cash proceeds from his drug dealing activities.  He did not record the cash receipts in his bank account or in the books of his company “Bill O’Brien LLC.”  O’Brien directed employees to shred the “cash slips” at the end of each business day.  On a daily basis, O’Brien transported thousands of dollars in cash in his briefcase from his office to the residence that he shared with codefendant Elizabeth Hibbs, who was his former wife. O’Brien and Hibbs, who were married in January 2010, officially divorced on October 15, 2012.  The decree and order of divorce filed in the Court of Common Pleas for Philadelphia County cited “irretrievable breakdown” as the cause for the dissolution of the marriage.  Notwithstanding an “irretrievable breakdown” in their relationship, defendants O’Brien and Hibbs lived together, worked together, and by all outward appearances, appeared to continue to act as husband and wife.

Hibbs, who pleaded guilty, deposited the illicit cash proceeds into various bank accounts, at different banks, and into safety deposit boxes titled in her name or held jointly with one of her daughters.  This elaborate mechanism concealed the fact that the source of the cash was O’Brien’s illegal drug distribution operation.

As the trial evidence showed, O’Brien filed for bankruptcy protection for WJO, Inc. in November 2010.  Hibbs, who was married to O’Brien when the bankruptcy petition was filed, was, at various times, the Chief Operating Officer and the Chief Executive Officer for WJO, Inc. In July of 2012, O’Brien and Hibbs were fired from WJO, Inc., by the Trustee appointed by the United States Bankruptcy Court. O’Brien and Hibbs diverted assets from WJO, Inc. to their personal accounts and to accounts controlled by them. In addition, O’Brien and Hibbs concealed other assets from the Trustee and from creditors of WJO, Inc. Both also knowingly made a false statement under oath during the bankruptcy proceedings.

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

Steven Hameed, 57, and Darnell Young, 48, both of Chester PA, pleaded guilty today to all charges against them relating to a multi-year conspiracy to file false deeds on homes throughout Delaware County and file false tax forms against judges, law enforcement, and other government employees to try to intimidate and harass them in the course of their official duties, announced United States Attorney Zane David Memeger. 

According to the Indictment, the defendants filed false land deeds with the Delaware County Recorder of Deeds Office in an attempt to claim ownership of homes owned by the government or by banks, and then to live in the homes, or rent/sell the homes to unsuspecting persons, for their own financial gain.  The Indictment further charges that the defendants filed hundreds of false tax forms against police officers, judges, and other government employees to try to harass and intimidate them in the course of their duties.  Defendants Hameed and Young also pleaded guilty to creating a false financial bond, which they mailed to a realtor in an attempt to purchase property.  

The defendants face substantial periods of incarceration, five-year periods of supervised release, restitution and substantial fines.  U.S. District Judge Timothy J. Savage has scheduled sentencing for September 28, 2016.

The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Treasury Inspector General for Tax Administration, the Federal Housing Finance Agency – Office of Inspector General, the Federal Deposit Insurance Corporation – Office of Inspector General, the Social Security Administration - Office of Inspector General, the Philadelphia Police Department, the Delaware County Detectives, the Aston Police Department, and the Upper Darby Police Department, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz and Assistant United States Attorney Vineet Gauri.

PHILADELPHIA - Annemarie Scott, 21, of Philadelphia, PA, was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about April 1, 2016, Scott, who has several prior felony convictions, possessed a loaded Glock, 9mm, semi-automatic firearm.

If convicted the defendant faces a mandatory minimum of 15 years imprisonment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Virgil B. Walker.

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

Ferdinand Javier Ruiz, 32, of Philadelphia, Pennsylvania was charged today by information with attempted possession with intent to distribute 50 grams or more of methamphetamine; possession with intent to distribute 50 grams or more of methamphetamine; and attempted possession with intent to distribute 500 grams or more of cocaine, announced United States Attorney Zane David Memeger. The charges arise from the defendant’s involvement in the shipment of methamphetamine and cocaine using the U.S. Postal Service Priority Mail.

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

The case was investigated by United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.

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

PHILADELPHIA - Tyree Mansell, 40, of Philadelphia, PA, Sterling Wallace, 27, and Jamain Wallace, 26, of Philadelphia and Yeadon, PA, were charged today by indictment with conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, attempted Hobbs Act robbery, and carrying a firearm during and in relation to a crime of violence. 

The indictment charges that on June 15, 2015, the defendants conspired in a home invasion robbery in Broomall, Pennsylvania, in an attempt to steal business proceeds from the victim. The indictment alleges that all three defendants went to a home in the 2600 block of Old Cedar Grove Road in Broomall; that Mansell and Sterling Wallace rang the doorbell and when a young child (“Victim #1”), answered the door, they pointed their firearms at the child, forced their way into the home, and Wallace struck the child in the face and head with his gun causing a severe laceration and bleeding. Mansell confronted another person (“Victim #2”) on the second floor of the home, pointed his firearm at Victim #2 and him/her into a bedroom as defendant Sterling Wallace forced Victim #1 to the second floor at gunpoint. Defendant Jamain Wallace joined the other two defendants, took Sterling Wallace’s gun and stood guard over the victims Victim #1 and Victim #2 as his co-defendants searched the home for cash and other items to steal. The defendants took money and jewelry from a safe in the home.

If convicted of all charges, each defendant faces a mandatory minimum sentence of seven years in prison with a maximum sentence of life, up to five years of supervised release, a possible fine, and a $300 special assessment.

This case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.

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

Filimon Mendez-Perez,” a/k/a “Alfredo Lopez-Perez,” 34, of Lancaster, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about February 25, 2016, Mendez-Perez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about December 7, 2009, June 2, 2010, and July 30, 2011.

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

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

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

Vernon Jones, 24, of Philadelphia, Pennsylvania was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.  According to the indictment, on or about April 12, 2016, in Philadelphia, Jones possessed a Beretta, Model BU9 Nano, 9mm pistol, and empty magazine that fit the pistol, and 14 spent 9mm cartridge casings, which had been ejected immediately outside of the residence from where the pistol was recovered.

If convicted the defendant faces a mandatory minimum sentence of 15 years in prison.

The case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Yvonne Osirim.

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

PHILADELPHIA – Stephen A. Monaco, D.P.M., 59, of Broomall PA was charged by criminal information, unsealed today, in connection with a $5 million scheme to defraud Medicare, Medicaid and four private victim insurance companies, announced United States Attorney Zane David Memeger.  The information alleges that Dr. Monaco committed the fraud through his practice, A Foot Above Podiatry, Inc. (“A Foot Above”), located in Havertown PA.

According to the information, between January 2008 and October 31, 2014, Dr. Monaco submitted fraudulent claims to Medicare, Medicaid and four private victim insurance companies for podiatric procedures that were not provided, and podiatric procedures that were not performed, including injections, debridement (removal of dead, infected or foreign material to promote wound healing) and nail avulsions (removal of the entire or partial nail plate).  In addition, according to the information, Dr. Monaco submitted fraudulent claims to Medicare, Medicaid and four private victim insurance companies for medically unnecessary procedures and services that were not reimbursable by Medicare or the other insurance carriers. In total, it is alleged that the defendant caused the submission of fraudulent claims to Medicare, Medicaid and the four private victim insurance companies that resulted in payments by the victim insurers to the defendant’s practice totaling approximately $5 million.

If convicted, defendant Monaco faces up to 10 years in prison, $5 million restitution, substantial fines, and criminal forfeiture.

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

PHILADELPHIA - James Spears, 33, of Philadelphia, PA, was charged today by indictment with possession with intent to distribute cocaine base (“crack”) and cocaine, and possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Zane David Memeger.  The indictment charges that the defendant committed these offenses in Philadelphia between December 28, 2012 and January 3, 2013.

If convicted of all charges, the defendant faces a mandatory minimum sentence of five years in prison with a maximum sentence of life, five years of supervised release, a possible fine, and a $300 special assessment.

This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.

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

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.                                                                             

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 – 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.

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.

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 - 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. 

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.

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.

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 - 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 - 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 - 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 - 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.