Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Three More Defendants Guilty of Participating in Multi-State Drug Trafficking OperationRead the Press Release
PHILADELPHIA – Angel Mascorro, 52, of Aurora, Illinois pleaded guilty yesterday to conspiracy to commit money laundering and seven counts of money laundering. The guilty plea follows the trial of two of his co-defendants – Alejandro Sotelo, 43, of Chicago, IL, and Francisco Gonzalez Jose, 44, of Philadelphia, PA, who were found guilty late last Friday night by a federal jury, of taking part in a continuing criminal enterprise and other charges. The jury also found Sotelo and Gonzalez Jose guilty of conspiracy to distribute one kilogram or more of heroin, conspiracy to import heroin, conspiracy to commit money laundering, and, as to Gonzalez Jose, possession with intent to distribute one kilogram or more of heroin; and as to Sotelo distribution of 14 kilograms of heroin. All three were members of the Laredo Drug Trafficking Organization (DTO). Sentencing hearings are scheduled for August of 2016. Sotelo and Gonzalez Jose each face a mandatory minimum of 10 years up to life in prison; Mascorro faces a significant term of imprisonment. To date, 18 defendants (including Mascorro) have pleaded guilty; four defendants, including alleged kingpins Antonio Laredo and Ismael Laredo and their wives, are in Mexico. Another five defendants are awaiting trial.
Brothers Antonio and Ismael Laredo, the alleged leaders of the Laredo DTO, supervised 21 defendants in an operation that imported multiple kilos of heroin from Mexico into the United States and distributed it to other drug traffickers in Philadelphia, Camden, NJ, Chicago, IL, Atlanta, GA, and New York, NY. According to court documents, the Laredo DTO smuggled-in approximately 1,000 kilograms of heroin using various concealment techniques such as placing kilogram quantities of heroin in car batteries, car bumpers, concealed vehicle traps, and sealed fruit and vegetable cans. Alejandro Sotelo served as a DTO cell head in Chicago where he oversaw the stash house operation and the movement of multi kilogram quantities of heroin from Mexico into Chicago. Sotelo also arranged the trans-shipment of multi-kilogram quantities of heroin to Philadelphia, New Jersey and New York.
Members of the DTO used violence, such as assaults and kidnapping, threats of violence, including murder and arson, and firearms, to protect their product and proceeds and to prevent members from withdrawing from the organization. The DTO supplied multi-kilogram quantities of heroin to drug traffickers in the Philadelphia area, including the (Christian) Serrano DTO, the (Darbin and Gabriel) Vargas DTO, and the Camden, New Jersey based (Confesor) Montalvo organization, among others.
According to the indictment, members of the Laredo DTO would transport heroin shipments by various means, including car and train. The Laredo brothers had special car batteries manufactured for the purpose of concealing the loads of heroin and, in 2012, a courier used that method to deliver three kilograms of heroin to Philadelphia. A shipment of four kilograms was concealed inside a car speaker box. A shipment of 7.6 kilograms of heroin was concealed in sealed fruit and vegetable cans in Texas, and the couriers were directed to deliver the heroin to defendants Darbin Vargas and Gabriel Vargas, of the Vargas DTO in Philadelphia.
The DTO consisted of numerous relatives and associates who set up “funnel accounts” that were used for the purpose of laundering the proceeds of the drug operation back to Mexico. The Laredo brothers, it is alleged, used a variety of money laundering techniques, including the use of the funnel accounts, wire transfers of funds, and Western Union money grams, to launder at least $5 million of the heroin proceeds back to Mexico, where the Laredo brothers currently reside.
In addition to the prison terms, each defendant in the case faces possible fines, periods of supervised release, a criminal forfeiture judgment to the United States of up to $60 million, and special assessments.
The case was investigated by the Drug Enforcement Administration’s offices in Philadelphia, PA, Allentown, PA, Camden, NJ, Mexico City, Mexico, Chicago and Rockford, IL, Newark, NJ, New York, NY, Tyler, TX, Raleigh, NC, Jefferson City and St. Louis, MS, Richmond, VA, and the DEA Special Operations Division; FBI, Philadelphia; U.S. Marshals Service; Homeland Security Investigations in Philadelphia, PA and Richmond, VA; Immigration and Customs Enforcement; the Philadelphia Police Department; Darby Borough Police Department; SEPTA Transit Police Department; Berks County District Attorney’s Office; Bucks County District Attorney’s Office; Philadelphia/Camden HIDTA in New Jersey: the N.J. Attorney General’s Office, N.J. Parole Board, Cherry Hill Police Department, Delaware River Port Authority Police, Camden County Prosecutor’s Office, Camden County Sheriff’s Office; in Illinois: Rockford Police Department, Will County Sheriff's Department, Skokie Police Department, Aurora Police Department, Oak Lawn Police Department, Addison Police Department, Prospect Heights Police Department, Chicago Police Department, Arlington Heights Police Department, West Chicago Police Department, Cook County Sheriff's Department, and McHenry County Narcotics Task Force; in Texas: Texas Department of Public Safety, CID Mt. Pleasant, Mt. Pleasant Police Department; in Missouri: Missouri State Highway Patrol, Audrain County Sheriff’s Department, East Central Drug Task Force; in Virginia: the Mecklenberg County Commonwealth Attorney’s Office and the Virginia State Police; and the Orange County Sheriff’s Office in North Carolina. Support was provided by the U.S. Bureau of Prisons in Philadelphia, Pennsylvania State Police, the U
Assistance was provided by the U.S. Attorney’s Offices in the Northern District of Illinois, the Eastern District of Virginia, and the Middle District of Pennsylvania. The case is being prosecuted by Assistant United States Attorneys Joseph T. Labrum, III, Nelson S.T. Thayer, Jr., and Special Assistant United States Attorney Jordan Strauss, of the Justice Department's National Security Division.
Lawsuit Filed Against South Philadelphia Tap Room Owners for Violating Americans with Disabilities ActRead the Press Release
PHILADELPHIA – A lawsuit was filed yesterday against John Longacre, his companies, and the South Philadelphia Tap Room at 1509 Mifflin Street, which he owns, for violations of the Americans with Disabilities Act of 1990 (“ADA”), announced United States Attorney Zane David Memeger. The lawsuit is the first to be brought as a result of the Philadelphia Restaurants ADA Compliance Review that was undertaken by the U.S. Attorney’s Office in March 2015, in an effort to evaluate the ADA compliance of 25 of the most popular and frequented restaurants in Philadelphia. The lawsuit also names Longacre Holdings, LLC, LPMG Management Company, LPMG Construction Management, LPMG Financial, Longacre Property Management Group, and Citywide Properties One.
The Complaint alleges that the South Philadelphia Tap Room is engaging in a pattern or practice of discrimination due to numerous alleged violations of the ADA. These violations pertain to the restaurant’s entrance and restrooms. The owners and operators of the South Philadelphia Tap Room did not respond to multiple communications from the U.S. Attorney’s Office informing them of the accessibility barriers that exist in the restaurant.
“The purpose of the Compliance Review was to ensure that individuals with disabilities have equal access to area restaurants,” said Memeger. “Such an initiative is important in a city like Philadelphia that is widely known for its vibrant restaurant scene. As alleged, neither the ADA, nor the warnings from this Office were enough to convince the South Philadelphia Tap Room to comply with the law, and the goal of this lawsuit is to see that they finally do.”
The Philadelphia Restaurant ADA Compliance Review is being handled by the Office’s Civil Rights Coordinator, Assistant U.S. Attorney Jacqueline C. Romero, and by Assistant U.S. Attorney John T. Crutchlow.
Lancaster County Man Charged in Tax Fraud IndictmentRead the Press Release
PHILADELPHIA - James Kerr Schlosser, 59, of Bird-in-Hand, Pennsylvania, was charged today by Indictment with engaging in corrupt endeavors to impede the due administration of the Internal Revenue Code, announced United States Attorney Zane David Memeger. Schlosser is also charged with willfully failing to file federal income tax returns and to prevent the Internal Revenue Service from learning that he had earned income which should have reported to the United States Treasury.
The indictment alleges since 1995, Schlosser, a manufacturer’s representative for companies that sold medical equipment and surgical devices to various health care providers, stopped filing federal income tax returns. Along with attempting to revoke his American citizenship and social security number, Schlosser also declared himself to be a Sovereign Human Being thus making himself not subject to federal income taxation even though he earned income.
To conceal the income that he had earned, Schlosser attempted to assign his income to multiple foreign business trusts and corporate soles which he created and registered with the Nevada Secretary of State. In order to obtain possession of the income, Schlosser entered into contracts with Nevada-based mailing forwarding services who caused the income, that had been sent to the foreign trusts and corporate soles, to be forwarded to Schlosser in Pennsylvania or other individuals who Schlosser had convinced to serve as trustees for one or more of the foreign business trusts.
Upon receipt of the income, Schlosser and the trustees deposited the money into non-interest earning investment accounts that Schlosser had established at two investment companies in an effort to keep the investment companies from issuing IRS Form 1099-INT to the Internal Revenue Service. To further conceal his receipt of income, Schlosser purchased gold coins from at least four coin dealers which he then reconverted into cash through multiple purchases and sold in furtherance of his scheme to conceal the income that he had received.
If convicted, Schlosser faces a substantial period of incarceration, a fine, and a special assessment. The case was investigated by Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Maryland Man Charged with Simple AssaultRead the Press Release
William Taylor, 61, of Havre de Grace, Maryland, was charged by Information, filed on April 22, 2016, with three counts of simple assault, announced United States Attorney Zane David Memeger. The Information alleges that on or about February 4, 2016, at the Philadelphia Navy Yard, Taylor assaulted Victim No. 1 at three different times. These assaults occurred between 2:30 PM and 3:00 PM in the afternoon. Taylor was then employed as a construction superintendent on a project at the Navy Yard.
If convicted the defendant faces a maximum possible sentence of six months on each count.
The case was investigated by the Navy Criminal Investigative Service 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.
Drexel Hill Man Gets 12 Years for Running Identity Theft RingRead the Press Release
PHILADELPHIA - Benjamin Easley, 38, of Drexel Hill, Pennsylvania, was sentenced today to 144 months in prison in connection with a fraud and identity theft ring in which the conspirators stole and attempted to steal approximately $1.1 million from the banks they targeted. Easley pleaded guilty in November 2014 to seven counts of bank fraud, 15 counts of aggravated identity theft and one count of conspiracy. Easley also pleaded guilty to two counts of bank fraud and one count of aggravated identity theft in a separate case against him. The cases were consolidated for sentencing.
Easley obtained the personal and bank account information of victims, recruited people to pose as those victims to make fraudulent withdrawals and wire transfers from the victims’ accounts, and provided false identity documents to use to access the victims’ accounts. In addition to the prison term, U.S. District Court Judge Rufe ordered restitution of $595,289, five years of supervised release, and a $2600 special assessment.
The cases were investigated by the Federal Bureau of Investigation and the United States Secret Service and were prosecuted by Assistant United States Attorneys KT Newton and Michael Lowe.
Smash and Grab Robbers Sentenced to 20 Years in PrisonRead the Press Release
PHILADELPHIA - Darrell Williams, 45, and David Story, 47, both of Philadelphia, were each sentenced today to 240 months in prison for their roles in a robbery conspiracy that targeted jewelry stores. In addition to the prison terms, U.S. District Court Judge Lawrence F. Stengel ordered five years of supervised release, a $1,100 special assessment for Story, and a $900 special assessment for Williams. In addition to the conspiracy, Williams and Story were charged with using and carrying a firearm during a crime of violence. Both pleaded guilty – Williams on April 9, 2015; Story on April 20, 2015. The Court imposed restitution in the amount $5,219,205.84 on Story and Williams.
On three separate occasions - July 13, 2011, April 13, 2012 and August 22, 2012 - Story committed an armed robbery of the Tourneau store in King of Prussia, Pennsylvania. Williams participated in the robberies on July 13, 2011 and April 13, 2012. On January 9, 2012, the pair, along with co-conspirators Rufus Lawson, Anthony Lockwood, and Kenneth L. Williams, committed a robbery of Govberg Jewelers, located at 292 Montgomery Avenue in Ardmore, Pennsylvania. On February 22, 2012, Williams and Story, along with Rufus Lawson and Kenneth L. Williams, robbed the Bernie Robbins Jewelers, located at 595 E. Lancaster Avenue in Saint Davids, Pennsylvania. Earlier, on November 1, 2011, Williams and Story, along with Rufus Lawson, Jackie Howard and Willie Hawkins Smith, robbed the Kingston Jewelers located at 2010 Pennsylvania Avenue in Wilmington, Delaware.
This case has been investigated by the Federal Bureau of Investigation, Radnor Township Police Department, the Lower Merion Township Police Department, the Upper Merion Township Police Department, the Limerick Township Police Department, the Lower Pottsgrove Township Police Department, the Upper Providence Township Police Department, the Royersford Police Department, Evesham Township (New Jersey) Police Department, the Lawrence Township (New Jersey) Police Department, the Pennsylvania State Police, the Wilmington Police Department (Delaware), the Delaware State Police and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorney Thomas M. Zaleski and Assistant United States Attorney Jamie M. McCall, from the U.S. Attorney’s Office in Delaware.
Political Consultant and Former Easton City Councilman Admits to Bribing Allentown and Reading OfficialsRead the Press Release
PHILADELPHIA – Michael Fleck, 40, formerly of Allentown, PA, pleaded guilty today to one count of conspiracy to commit extortion and bribery offenses and one count of tax evasion, announced United States Attorney Zane David Memeger. Fleck is a former member of Easton’s City Council. U.S. District Court Judge Juan R. Sanchez scheduled a sentencing hearing for July 25, 2016.
According to court documents, Fleck was a principal and co-owner of an Allentown-based consulting company that a) conducted fundraising and other campaign-related services for certain elected officials in Pennsylvania (“the political clients”) and b) lobbied these same political clients on behalf of individuals and companies who sought contracts and other favorable treatment from local governments (“the business clients”). Public Official #1 of Reading and Public Official #3 and Mary Ellen Koval of Allentown were each elected officials in their respective cities as well as political clients of Fleck’s. Public Official #1 and Koval sought re-election to the offices that they held, while Public Official #3 aspired to win higher office through statewide election. Each of these three elected officials attempted to leverage their respective public offices – which gave them actual and perceived authority over the awarding of municipal contracts – for items of value, including campaign contributions.
Ramzi Haddad, charged separately, and the parties identified as Donor #1, Donor #2, Donor #3, Donor #4, Law Firm #4, Donor #5, and “the Partnership” all sought city contracts and/or other favorable treatment from local governments in the Eastern District of Pennsylvania, including Allentown and/or Reading. Public Official #1, Public Official #3, and Koval each exploited their official positions in order to obtain thousands of dollars’ worth of campaign contributions from one or more of these individuals and organizations. According to court documents, in each of instances, a public official and/or a donor reached or attempted to reach an explicit exchange of campaign contributions and official action. Fleck admitted that as part of his “consulting” services, he helped facilitate such quid pro quo solicitations, offers, and agreements and obtained tens of thousands of dollars of campaign contributions through the use of extortion, bribery, and/or fraud.
In Allentown, for example, once the Partnership began making large campaign contributions for Public Official #3, Fleck helped manipulate a purportedly fair and confidential contract award process to the Partnership’s advantage. Once Public Official #3 communicated his wishes to them, Fleck and Finance Director Gary Strathearn, with the help of Assistant City Solicitor Dale Wiles, both charged separately, sabotaged the award process to ensure that the Partnership prevailed over its competitors. Similarly, City Controller Mary Ellen Koval agreed to help Public Official #3 and Fleck by attempting to steer Allentown city contracts to certain of Public Official #3’s donors, including Donor #1. In Reading, Fleck, Reading public official Eron Lloyd, and others helped Public Official #1 obtain campaign contributions from companies that relied heavily on government contracts, such as the companies represented by Donor #2 and Donor #3, as consideration for Public Official #1’s efforts to steer Reading city contracts to them.
Public Official #1 and Public Official # 3 allegedly limited their direct interactions with certain donors. When donors and officials in Allentown and Reading raised concerns about having to interact with Fleck and/or his employees in connection with official city business, Public Official #1 and Public Official #3 rebuffed their concerns and insisted that they interact with Fleck and/or his employees.
To conceal and continue the conspiracy, Public Official #1, Eron Lloyd, Public Official #3, Mary Ellen Koval, Garret Strathearn, Dale Wiles, and Fleck employed counter-surveillance maneuvers and obstructed justice by, among other things, making false statements to FBI agents conducting a federal criminal investigation. For example, on March 11, 2015, Fleck falsely stated to FBI agents that he had not told anyone that the agents had confronted him earlier that day when, in fact, as Fleck well knew, he had disclosed the encounter to several others with the intention of warning Public Official #3 about the FBI’s investigation into a bribery, kickback, and extortion scheme.
Fleck also filed false and fraudulent joint U.S. individual income tax returns for tax years 2011, 2012, and 2013, in which he concealed income from his consulting company of approximately $130,897.41, overstated certain deductions, and failed to remit approximately $43,467 in payroll taxes, causing a tax loss of approximately $77,738.
Fleck faces a maximum possible sentence of 10 years in prison, a possible fine, supervised release, and a $200 assessment. Koval, Strathearn, Wiles, Haddad and Lloyd have pleaded guilty and are awaiting sentencing. (Wiles: June 6, 2016; Lloyd: June 7, 2016; Koval: July 26, 2016; Strathearn: July 27, 2016; Haddad: July 28, 2016.)
This case is being investigated by the Federal Bureau of Investigation-Allentown Resident Agency, the Internal Revenue Service Criminal Investigations, and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorneys Joe Khan and Anthony Wzorek.
Detainee Charged with Attempting to EscapeRead the Press Release
PHILADELPHIA – Cory Foster, 28, a detainee at the Federal Detention Center (FDC) in Philadelphia, was charged today by indictment with attempted escape, announced United States Attorney Zane David Memeger. According to the indictment, on October 14, 2015, Foster, who had been indicted and was being detained at the FDC, attempted to escape.
If convicted, the defendant faces a maximum possible sentence of five years in prison, a possible fine, up to three years of supervised release, and a $100 special assessment.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jose Arteaga.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Owner and President of Pennsylvania Consulting Companies Pleads Guilty to Bribing Official at European Bank for Reconstruction and DevelopmentRead the Press Release
The former owner and president of Chestnut Consulting Group Inc. and Chestnut Consulting Group Co. (the Chestnut Group) pleaded guilty today to bribing an official at the European Bank for Reconstruction and Development (EBRD) in violation of the Foreign Corrupt Practices Act (FCPA).
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 and Special Agent in Charge William F. Sweeney of the FBI’s Philadelphia Division made the announcement.
Dmitrij Harder, 43, of Huntingdon Valley, Pennsylvania, a U.S. legal permanent resident, pleaded guilty to two counts of violating the FCPA before U.S. District Judge Paul S. Diamond of the Eastern District of Pennsylvania. Sentencing is scheduled for July 21, 2016.
According to admissions made in connection with Harder’s plea, the EBRD was a multilateral development bank headquartered in London that was owned by more than 60 sovereign nations and provided financing for development projects in emerging economies, primarily in Eastern Europe. Harder admitted that between 2007 and 2009, he engaged in a scheme to pay approximately $3.5 million in bribes to an EBRD official to corruptly influence the official’s actions on applications for EBRD financing submitted by the Chestnut Group’s clients and to influence the official to direct business to the Chestnut Group.
The EBRD ultimately approved applications for financing from two of the Chestnut Group’s corporate clients; the first resulted in the EBRD providing an $85 million investment and a 90 million Euro loan, while the second resulted in a $40 million investment and a $60 million convertible loan, according to the plea. Harder admitted that the Chestnut Group earned approximately $8 million in “success fees” as a result of the EBRD’s approval of these two applications.
In a related action, the EBRD official, Andrey Ryjenko, and his sister, Tatjana Sanderson, have been charged by the United Kingdom’s Crown Prosecution Service and are pending trial. A status conference in that matter is set for June 8, 2016.
The FBI’s Philadelphia Division is investigating the case. Assistant U.S. Attorney Michelle Morgan of the Eastern District of Pennsylvania and Senior Trial Attorney Jason Linder of the Criminal Division’s Fraud Section are prosecuting the case. The City of London Police’s Overseas Anti Corruption Unit and the Criminal Division’s Office of International Affairs provided assistance. Germany, Jersey and Guernsey also provided assistance in this matter.
Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Consulting Group Owner Pleads Guilty to Bribing Official at European Bank for Reconstruction and DevelopmentRead the Press Release
PHILADELPHIA – Dmitrij Harder, 43, of Huntingdon Valley, Pennsylvania, the former owner and President of Chestnut Consulting Group Inc. and Chestnut Consulting Group Co. (the “Chestnut Group”), pleaded guilty today to bribing an official at the European Bank for Reconstruction and Development (EBRD) in violation of the Foreign Corrupt Practices Act (FCPA). Harder is a legal permanent resident of United States. U.S. District Court Judge Paul S. Diamond scheduled a sentencing hearing for July 21, 2016.
The EBRD was a multilateral development bank headquartered in London, England, and was owned by more than 60 sovereign nations and provided financing for development projects in emerging economies, primarily in Eastern Europe. Between 2007 and 2009, Harder engaged in a scheme to pay approximately $3.5 million in bribes to an EBRD official to corruptly influence the official’s actions on applications for EBRD financing submitted by the Chestnut Group’s clients and to influence the official to direct business to the Chestnut Group.
The EBRD ultimately approved applications for financing from two of the Chestnut Group’s corporate clients; the first resulted in the EBRD providing an $85 million investment and a 90 million Euro loan, while the second resulted in a $40 million investment and a $60 million convertible loan. Harder also admitted that the Chestnut Group earned approximately $8 million in “success fees” as a result of the EBRD’s approval of these two applications.
The case is being investigated by the FBI’s Philadelphia Division. It is being prosecuted by Assistant United States Attorney Michelle Morgan and Senior Trial Attorney Jason Linder of the Criminal Division’s Fraud Section. The Overseas Anti-Corruption Unit of the City of London Police and the Criminal Division’s Office of International Affairs also provided assistance. Germany, Jersey and Guernsey also provided assistance in this matter.
Additional Charges, Additional Defendants in Allentown Armed RobberiesRead the Press Release
PHILADELPHIA – A superseding indictment was unsealed today charging six people in a robbery conspiracy that took place in Allentown, PA, and included seven robberies over a month-long period. Jacob Pabon, 19, and Lytic Fauntleroy, 19, were charged in December 2015 with robbery which interferes with interstate commerce, and using and carrying a firearm during a crime of violence in connection with two of the charged robberies. The superseding indictment adds conspiracy to commit Hobbs Act robbery, five additional counts of Hobbs Act robbery, five additional counts of use of a firearm in relation to a violent crime, and one count of felon in possession of a firearm. The superseding indictment also adds four defendants to the case.
Charged with Pabon and Fauntleroy in the conspiracy count are: Victor Morales, 21, Ruben Tarrats, 23, of Allentown, PA, Adrian Tosado, 22, also of Allentown, PA, and Jose Rapalo, 20, of Bethlehem, PA. A fifth defendant, Kairashaad Johnson, 21, of Allentown, PA, is charged in one of the robberies.
According to the indictment, the defendants robbed seven businesses, in May of 2015 in the city of Allentown, PA. Those robberies include: the May 7, 2015 robbery of Sun’s Deli at 1341 Union Street (Pabon, Tarrats, Tosado) and of North 7th Market and Bakery (Morales, Fauntleroy, Pabon, Tosado); the May 14, 2015 robbery of Betty Mini Market at 922 Chew Street (Morales, Tarrats, Rapalo); the May 21, 2015 robbery at 10th Street Market (Pabon, Rapalo, Johnson); the May 26, 2015 robbery of M&J Market at 448 North 2nd Street (Morale, Fauntleroy, Tarrats, Rapalo) and the Dominguez Food Market at 517 West Gordon Street (Morales, Fauntleroy, Tarrats); and the May 29, 2015 robbery of Speedway at 1043 Lehigh Street, (Fauntleroy, Pabon, Tarrats). In each robbery, the alleged robbers are also charged with using and carrying a firearm during a crime of violence. Morales is charged as a convicted felon in possession of a firearm. According to the indictment, the defendants used some of the robbery proceeds to pay rent on a house at 324 North Law Street, in Allentown, which they used as a stash house for their firearms.
“Thanks to the diligent work of the Allentown Police Department and ATF agents, a violent robbery crew has been dismantled,” said U.S. Attorney Zane David Memeger. “My office will continue to work closely with our law enforcement partners to keep the citizens of this district safe.”
“Dangerous people who commit dangerous crimes with firearms will be dealt with and brought to justice,” said ATF Special Agent-in-Charge Sam Rabadi. “ATF will work together with our State and local partners to target and arrest armed robbery gangs who threaten the safety of our homes, our businesses, and our neighborhoods.”
“I would like to thank the officers and detectives who spent countless hours investigating these robberies and for the assistance from the ATF,” said Allentown Police Chief Keith Morris. “Their diligence paid off and we were able to take some very violent individuals off the streets.”
If convicted of all counts, Tarrats faces a mandatory minimum sentence of 107 years in prison; Fauntleroy, Pabon, and Morales each face a mandatory minimum sentence of 82 years in prison; Rapalo faces a mandatory minimum sentence of 57 years in prison; Tosado faces a mandatory minimum sentence of 32 years in prison; and Johnson faces a mandatory minimum sentence of seven years in prison; each faces a maximum sentence of life, plus possible fines, supervised release, and special assessments.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allentown Police Department and the Lehigh County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Eric A. Boden.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Woman Charged with Stealing Dead Relative's BenefitsRead the Press Release
PHILADELPHIA - Martha Stanley, 47, of Philadelphia, Pennsylvania, was charged by indictment, unsealed today, with three counts of wire fraud, one count of theft of government funds, and one count of social security fraud, announced United States Attorney Zane David Memeger. According to the indictment, the defendant received retirement benefits intended for a deceased relative after her relative’s death in June 2005. The defendant’s alleged actions resulted in a loss to the government of approximately $102,126.
If convicted, defendant Martha Stanley faces a statutory maximum sentence of up to 75 years in prison, up to three years of supervised release, restitution to the government of $102,126, a possible fine, and a $500 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican Drug Trafficker Sentenced to Eight Years in PrisonRead the Press Release
PHILADELPHIA – Cesar Vega-Castro, 34, a Mexican national formerly residing in Tuscon, Arizona, was sentenced today to 96 months in prison for drug trafficking and money laundering. Vega-Castro was an essential member of an international drug trafficking organization which brought thousands of kilograms of marijuana to the United States from Mexico and laundered millions of dollars of drug proceeds. Vega-Castro pleaded guilty on May 18, 2014 to conspiracy to distribute 1,000 kilograms or more of marijuana, conspiracy to commit money laundering, and one count of money laundering.
In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered a $300 special assessment and five years of supervised release.
As a result of the investigation, 11 members or associates of this organization were federally prosecuted. Of those, seven were convicted in the Eastern District of Pennsylvania; two were convicted by the Middle District of North Carolina; and one was convicted in the District of New Jersey.
The case was prosecuted by Assistant United States Attorney Maria M. Carrillo.
Two Men from Delaware County Indicted on Child Exploitation ChargesRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Daniel Mattson, 34, of Springfield, PA, and Anthony Lembo, 33, of Newtown Square, PA, with numerous counts involving child exploitation, United States Attorney Zane David Memeger. Both defendants were arrested this morning by FBI agents. Following an initial appearance they were ordered detained pending a formal detention hearing on April 20, 2016.
According to the indictment, on various dates between 2009 and April of 2015, Mattson and Lembo distributed, received, and maintained a collection of thousands of images and videos of children being sexually abused and in sexually explicit positions. It is further alleged that Lembo received the same type of sexually explicit images of children that he downloaded from the Internet and received from other users on the Internet.
If convicted of all charges, each defendant faces a mandatory minimum sentence of five years in prison with a maximum sentence, per count, of 20 years in prison, a possible fine, a period of supervised release, and a special assessment.
This case was investigated by Delaware County Detectives in the Office of District Attorney and the FBI. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
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.
Philadelphia Woman Charged for Role in Bank Fraud SchemeRead the Press Release
PHILADELPHIA – Charlene Leak, 46, of Philadelphia, Pennsylvania, was charged today by indictment with conspiracy and bank fraud, announced United States Attorney Zane David Memeger. The indictment alleges that in 2009, Leak worked as a check runner in a $1.2 million check fraud conspiracy run by Phillip Eric Weems, who has since pleaded guilty for his role in leading the conspiracy, and who was sentenced in February 2014 by U.S. District Judge Juan R. Sanchez to 121 months’ incarceration.
According to the indictment, in her role assisting Weems in running bad checks, Leak, along with other co-conspirators, opened personal and corporate bank accounts at various financial institutions, incorporated sham corporations to further the conspiracy, and caused counterfeit and forged securities to be created and drawn on the accounts of the sham corporations. Leak and her co-conspirators then used the counterfeit and forged securities to pay for goods and property knowing that the various bank accounts had no or insufficient funds in the accounts. According to the indictment, Leak was responsible for an intended loss of $317,890.61.
If convicted of all charges, the defendant faces a statutory maximum sentence of 35 years in prison, up to $500,000 in fines, three years of supervised release, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys James A. Petkun and Ashley K. Lunkenheimer.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment Charges Philadelphia Man with Robbing Three BanksRead the Press Release
PHILADELPHIA - Ellwood Quillen, Jr., 66, of Philadelphia, Pennsylvania was charged today by Indictment with three counts of bank robbery, announced United States Attorney Zane David Memeger. The charges arise from the October 26, 2015 robbery of the TD Bank, located at 401 W Lancaster Avenue, in Haverford, Pennsylvania, the November 13, 2015 robbery of the TD Bank, located at 4020 City Line Avenue, in Philadelphia Pennsylvania, and the November 20, 2015 robbery of the WSFS bank, located at 9 East Baltimore Pike, in Lansdowne, Pennsylvania.
If convicted the defendant faces a maximum possible sentence of 60 years in prison, a possible fine, a $300 special assessment and a period of supervised release.
The case was investigated by the Lansdowne Police Department, the Lower Merion Police Department, the Philadelphia Police Department, and the Federal Bureau of Investigation 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.
Indictment Charges Philadelphia Man in Identity Theft and Credit Card SchemeRead the Press Release
PHILADELPHIA - Carl Pierre-Charles, 27, of Philadelphia, Pennsylvania was charged today by indictment with conspiracy, access device fraud and aggravated identity theft, announced United States Attorney Zane David Memeger. According to the indictment, the defendant used counterfeit credit, debit or gift cards, encoded with stolen credit account numbers, to purchase cartons of cigarettes and other items.
If convicted. Carl Pierre-Charles faces a maximum possible sentence of 19 years in prison, a $400 special assessment, a possible fine, and a period of supervised release.
The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attomey K.T. Newton.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
California Woman Charged with Interference with A Flight CrewRead the Press Release
PHILADELPHIA - Jamie Lynne Combs, 35, of McKinleyville, California, was charged today by Indictment with interference with flight crew members and attendants and possession of a controlled substance, announced United States Attorney Zane David Memeger. According to the indictment, on March 18, 2016 while flying on United Airlines Flight Number 384, traveling from San Francisco California to Philadelphia, Combs assaulted and intimidated several United Airlines flight attendants and interfered with their performance and duties. It is further alleged that following her arrest at the Philadelphia International Airport, Combs was found to be in possession of marijuana, a Schedule I controlled substance.
If convicted, Combs faces a substantial period of imprisonment, a possible fine, a special assessment and a period of supervised release.
The case was investigated by Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tax Charges Filed Against Montgomery County ManRead the Press Release
PHILADELPHIA - Francis J. Bass, 61, of Montgomery County, PA was charged today by Information with four counts of subscribing a false federal income tax return, announced United States Attorney Zane David Memeger. According to the Information, Bass willfully failed to report a substantial amount of income on his 2009 through 2012 tax returns.
If convicted the defendant faces a maximum possible sentence of 12 years in prison, one year of supervised release, a possible fine, restitution to the IRS, and a $400 special assessment.
The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Terri A. Marinari and David J. Ignall.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Stealing Dead Mother's Retirement BenefitsRead the Press Release
PHILADELPHIA - Daryl McCall, 60, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for his mother, after his mother’s death in March 2009 until August 2013. The defendant’s alleged actions resulted in a loss to the government of approximately $52,314.
If convicted, the defendant faces a statutory maximum sentence of 10 years in prison, up to three years of supervised release, restitution to the government of $52,314, 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.
Philadelphia Man Charged with Lying on Gun FormsRead the Press Release
PHILADELPHIA - Somath Hom, 24, of Philadelphia, PA was charged today by Indictment with two counts of making false statements to a federal firearms licensee regarding guns he purchased on November 3 and November 9, 2015 from federal firearms licensees, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 10 years in prison, three years of supervised release, a possible fine and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Arlene Fisk.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Immigration Charges Unsealed Against Liberian NationalRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Mohammed Jabbateh, 49, a citizen of Liberia residing in East Lansdowne, PA, with immigration fraud and perjury, announced United States Attorney Zane David Memeger and Acting Special Agent-in-Charge Jack Staton, Homeland Security Investigations. Jabbateh, a/k/a “Jungle Jabbah,” is charged with two counts of fraud in immigration documents and two counts of perjury.
According to the indictment, in December of 1998, when making application for asylum and later for permanent legal residency, the defendant was not truthful about his activities during Liberia’s first civil war while he was a member of The United Liberation Movement for Democracy in Liberia (ULIMO) and later ULIMO-K, a rebel group that battled for control of Liberia. Jabbateh was a commander or higher ranking officer in ULIMO and ULIMO-K. According to the indictment, Jabbateh, during his overall time as a ULIMO commander or higher ranking officer, either personally committed, or ordered ULIMO troops under his command to commit the following nonexclusive list of acts: 1) the murder of civilian noncombatants; 2) the sexual enslavement of women; 3) the public raping of women; 4) the maiming of civilian noncombatants; 5) the torturing of civilian noncombatants 6) the enslavement of civilian noncombatants; 7) the conscription of child soldiers; 8) the execution of prisoners of war; 9) the desecration and mutilation of corpses; and 10) the killing persons because of race, religion, nationality, ethnic origin or political opinion.
In January of 1999, during the asylum seeking process, Jabbateh was interviewed by an immigration asylum officer for purposes of determining whether his application should be granted. To this end, it is alleged that Jabbateh falsely responded "no" to the following two queries: 1) "[H]ave you ever committed a crime?"; and 2) "[H]ave you ever harmed anyone else?" On or about December 23, 1999, Jabbateh, largely based upon his answers to questions posed on his Form I-589 asylum application and his answers to questions posed during his asylum application interview, received asylum.
It is alleged that when Jabbateh applied for legal permanent residency by filing a Form I-485 with United States immigration authorities, he falsely responded "No" to the following two questions:
Have you ever engaged in genocide, or otherwise ordered, incited, assisted or otherwise participated in the killing of any person because of race, religion, nationality, ethnic origin or political opinion?
Are you under a final order of civil penalty for violating section 274C of the Immigration and Nationality Act for use of fraudulent documents or have you, by fraud or willful misrepresentation of a material fact, ever sought to procure, procured, or procured, a visa, other documentation, or entry into the U.S. or any immigration benefit?
According to the indictment, the defendant knew his answer was false in that he had ordered, incited, assisted, and otherwise participated in the killing of any person because of religion, nationality, ethnic origin, and political opinion; and knew that he had procured asylum in the United States by fraud and willful misrepresentation of material fact.
“This defendant allegedly committed unspeakable crimes in his home country, brutalizing numerous innocent victims,” said Memeger. “He then sought to escape to the United States where he lied about his criminal background on federal immigration forms. This office will use whatever tools are available to bring to justice serious criminals who abuse our immigration process by concealing their background and history.”
“The United States has always welcomed refugees and those fleeing oppression, but we will not be a safe haven for alleged human rights violators and war criminals,” said Staton.
If convicted, Jabbateh faces a maximum possible sentence of 30 years in prison, a possible fine, a $400 special assessment, and a period of supervised release.
The case was investigated by U.S. Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
To support the victims in this case and others in the community that may have been victimized by Jabbateh but have not yet reported, Homeland Security Investigations has established a Victim Assistance Hotline. Impacted individuals are encouraged to call (215) 717-4987 to speak with a Victim Assistance Specialist.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florida Man Charged with Insurance Fraud ViolationsRead the Press Release
PHILADELPHIA – Samuel Mangel, 53, of Boca Raton, Florida, was charged by indictment, unsealed today, in an insurance fraud scheme, announced United States Attorney Zane David Memeger. Mangel is charged with wire fraud relating to the sale of life insurance policies and engaging in the business of insurance after having been convicted of a felony involving dishonesty.
The indictment alleges that Mangel ran businesses in Jenkintown, Pennsylvania, that brokered the sale of life insurance policies and that were involved in the business of issuing insurance policies. The indictment alleges that, in brokering the sale of the life insurance policies, Mangel falsely represented to the sellers of the policies the full commissions and full amounts that the buyers agreed to pay and that Mangel falsified records to hide the additional payments by the buyers. As the broker, Mangel received the full commission payments, which were supposed to be used, in part, to pay the other agents. The indictment also alleges that Mangel, after having been convicted of a criminal felony involving dishonesty, illegally engaged in the business of insurance in the issuance of $7.5 million of life insurance policies.
If convicted of all charges, Mangel faces a statutory maximum term of 85 years in prison, mandatory restitution, a possible fine, a period of supervised release, and forfeiture may be ordered.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Sarah L. Grieb.
Indictments are accusations. A defendant is presumed innocent unless and until proven guilty.
Investment Advisor Sentenced for Near $2 Million FraudRead the Press Release
PHILADELPHIA - Michael Donnelly, 47, of Lecanto, Florida, was sentenced today to 99 months in prison for an investment scheme that bilked his friends and clients of nearly $2 million. Donnelly pleaded guilty on December 21, 2015, to one count of wire fraud and with one count of securities fraud. In addition to the prison term, U.S. District Court Judge Edward G. Smith ordered restitution in the amount of $1,990,150.24, three years of supervised release, and a $200 special assessment.
Donnelly was an investment advisor and registered representative who served as president of Donnelly, Steen & Company, doing business as Coastal Investment Advisors, Inc., Coastal Equities, Inc., and Donnelly Advisors Group, which he also owned. Between November 2007 and August of 2014, Donnelly persuaded about a dozen investors, many of whom were senior citizens, to allow him to invest their money in securities or certificates of deposit. But instead of investing his clients’ money, Donnelly appropriated the investment funds for his own use.
Donnelly provided at least one client with brokerage account statements belonging to another client who held dozens of large cap stocks, in an effort to conceal that he had appropriated the monies for his own use. When an investing couple asked Donnelly for their funds, he persuaded another investor to partially liquidate an annuity under the guise that there was an opportunity to buy out another investor. His plan was to use those funds to pay the investing couple rather than buying out an investment held by another client.
The case was investigated by the FBI with assistance from the Securities and Exchange Commission Division of Enforcement. It was prosecuted by Assistant U.S. Attorney Linwood C. Wright, Jr.
Mother Daughter Duo Charged in Theft SchemeRead the Press Release
PHILADELPHIA – Madeline Rosario, 25, and Maribel Nunez, 58, both of Philadelphia, PA, were charged by indictment, unsealed today, in an aggravated identity theft scheme to defraud the IRS, announced United States Attorney Zane David Memeger. Rosario is charged with conspiracy, theft of government property and aggravated identity theft. Her mother is charged with conspiracy and theft of government property.
According to the indictment, between November of 2010 and March of 2014, the defendants controlled five business accounts at Wachovia/Wells Fargo bank for the purpose of depositing fraudulently obtained United States Treasury refund checks and 3rd party refund checks. It is alleged that they conspired with others, to commit theft of government funds and knowingly converted to their own approximately 84 fraudulent tax refund U.S. Treasury checks totaling approximately $439,843.69. Rosario and Nunez allegedly opened and controlled the five business accounts at Wachovia/Wells Fargo Bank. The accounts were then used for depositing the fraudulently obtained tax refund checks.
If convicted, Rosario faces a two year mandatory minimum sentence with a statutory maximum sentence of 15 years and a $300 special assessment; Nunez faces a maximum statutory sentence of 15 years and a $200 special assessment. Both defendants could also face fines and a period of supervised release.
The case was investigated by IRS Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Maureen McCartney.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tax Fraudsters Sentenced in $200 Million SchemeRead the Press Release
PHILADELPHIA – Andrew Ahn, 41, of Columbia, Missouri, was sentenced today to 30 months in prison while his co-conspirator, Aviel Faliks, 41, of New York, New York, was sentenced to a year and a day for a multi-million dollar tax fraud scheme. In addition to the prison terms, U.S. District Court Judge Berle M. Schiller ordered Faliks to sell his apartment worth approximately $6.5 million and use half of the proceeds to pay restitution in the amount of $48,457,370 to the IRS. Judge Schiller also ordered Ahn to pay restitution of $113,537,679.
Between at least 2003 and 2011, the defendants, with several co-conspirators, designed and implemented a scheme to evade more than $200 million in corporate taxes by purchasing companies with taxable gains and using fraudulent losses to wipe out the gains. The conspirators then pocketed the corporations’ cash, filed fraudulent returns, and, in some instances, fraudulently sought and obtained refunds from the IRS for prior years. The defendants implemented their fraud scheme through four basic steps: (1) initial purchasers---including MidCoast Financial Inc., a company owned by defendant Chandrakant Shah and operated by defendant Samyak Veera---purchased target corporations with cash assets and large anticipated corporate income tax liabilities; (2) the initial purchasers next transferred these target corporations to “straw buyers” controlled on paper by Andrew Ahn and Aviel Faliks for the benefit of Veera; (3) the defendants then evaded the corporations’ income taxes through the use of fraudulent transactions designed to create the illusion that the corporations had incurred capital and ordinary losses; and (4) finally, the defendants distributed proceeds of the scheme through disguised means.
During the course of the conspiracy, Ahn and Faliks took various actions in furtherance of the conspiracy. For example, both Ahn and Faliks signed false and misleading documentation regarding the transactions, caused fraudulent corporate income tax returns to be filed, and made misrepresentations to the IRS regarding the scheme. In addition, both defendants held themselves out as independent, arms-length participants in the transactions and hid Veera’s role as the architect of the scheme from the IRS and others.
Faliks pleaded guilty on July 27, 2015, to one count of conspiracy and one count of corruptly endeavoring to obstruct and impede the Internal Revenue laws; Ahn pleaded guilty on August 30, 2012, to one count of corruptly endeavoring to obstruct and impede the Internal Revenue laws and one count of structuring transactions. Co-defendant Eric Merl, the in-house counsel for MidCoast Financial, pleaded guilty on October 31, 2013, to one count of conspiracy and one count of making a false statement. Merl was sentenced to 24 months in prison on February 22, 2016 by Judge Schiller.
The case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Patrick J. Murray and James Petkun.
Racketeering Conspiracy Charged in Payday Lending CaseRead the Press Release
PHILADELPHIA – Charles M. Hallinan, 75, of Villanova, PA, and Wheeler K. Neff, 67, of Wilmington, DE, were charged by indictment, unsealed today, with two counts of conspiracy to violate the Racketeering Influenced and Corrupt Organizations Act (“RICO”) relating to “payday lending” businesses, announced United States Attorney Zane David Memeger. A third defendant, Randall Ginger, 66, a Canadian citizen, was charged with Hallinan and Neff in one count of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as two counts of mail fraud and three counts of wire fraud. Hallinan and Ginger were also charged with nine counts of international money laundering.
According to the indictment, Hallinan and Neff participated in a conspiracy that violated the usury laws of Pennsylvania and other states and generated more than $688 million in revenues, between 2008 and 2013, from hundreds of thousands of customers, including residents of Pennsylvania which prohibits such loans. It is further alleged that Hallinan, Neff, and Ginger conspired to defraud nearly 1,400 people, who had sued one of Hallinan’s payday loan companies, into abandoning a lawsuit valued as high as $10 million.
Hallinan owned, operated, financed, and/or worked for more than a dozen businesses between 1997 and 2013 that issued and collected debt from small, short-term loans that were commonly known as “payday loans” because the customers were supposed to pay them back with their next paychecks. Hallinan’s companies allegedly charged customers about $30 for every $100 they borrowed, which meant that the annual interest rates on the loans often exceeded 700 percent. Pennsylvania and more than a dozen other states have passed laws criminalizing such loans as usurious. The indictment alleges that Hallinan and Neff conspired to evade such laws by, among other things, paying thousands of dollars each month to three Indian tribes to pretend that they were the actual payday lenders and claim that “tribal sovereign immunity” shielded their conduct from state laws and regulations.
Hallinan and Neff are also charged with helping another payday lender, Adrian Rubin, charged elsewhere, evade state anti-usury laws by entering into sham contracts with an Indian tribe that were designed to give the false impression that the tribe was the true lender.
Ginger, it is alleged, claimed to be a “hereditary chief” of one of the tribes that Hallinan and Neff used to try to hide Hallinan’s payday lending activity from state law enforcement officers and regulators. In 2010, a class action lawsuit was filed in Indiana against Apex 1 Processing, a payday lending company that Hallinan ran out of offices in Bala Cynwyd, Pennsylvania. According to the indictment, Hallinan offered to pay Ginger $10,000 every month to pretend that he owned Apex 1 and that Apex 1 had no assets, so the plaintiffs would settle their lawsuit for pennies on the dollar. Neff allegedly facilitated that scheme.
If convicted of all charges, Hallinan faces a possible advisory sentencing guideline range of at least 12 years in prison, three years of supervised release, a possible fine, and a $1,700 special assessment. Neff and Ginger both face sentencing guideline ranges of at least eight years in prison. Restitution may also be ordered.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Joel M. Sweet.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Quakertown Man Charged with Defrauding Lehigh University Fraternities and SororitiesRead the Press Release
PHILADELPHIA – An indictment was filed today charging Albert Fisher, 76, of Quakertown, PA, with conspiring to defraud fraternities, sororities and fraternity alumni associations at Lehigh University, announced United States Attorney Zane David Memeger. The defendant is charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and five counts of subscribing to false tax returns.
Fisher and Person #1 operated Fraternity Management Association (“FMA”), located in Bethlehem, PA, and allegedly created a fictitious consulting company, “Fisher and Associates,” which had FMA as its sole client. During the period charged, Person #1 was the Executive Director of FMA while Fisher was employed by FMA as both a full-time employee and as an independent contractor for Fisher and Associates. According to the indictment, between 2009 and 2013, Fisher and FMA’s Executive Director conspired to take money, as payment for future services, that was intended to pay for the operations and upkeep of the fraternities and sororities which included food services and the financial management of expenses. Instead of paying for future services, Fisher and the Executive Director allegedly misappropriated at least $1,461,777.96 in funds from FMA and the victim fraternities which he and the Executive Director used for their own personal purposes, including purchases of goods and services, vacation expenses, home furnishings, and designer clothing. Fisher allegedly lied to the victims about the money that was entrusted to FMA. When FMA ceased operations during the Spring of 2014, Fisher and the Executive Director caused an additional $990,157.41 in expenses for the fraternities, sororities and other victims, including Lehigh University, when the victims had to pay for operations and upkeep of the fraternities.
It is further alleged that Fisher filed tax returns for tax years 2009 to 2013 which failed to report $614,398 in income, which included the defendant’s personal expenses that were paid by FMA and consulting fees authorized by the Executive Director and paid on behalf of FMA.
If convicted, Fisher faces a maximum possible sentence of 50 years in prison, up to three years of supervised release, restitution, a possible fine, and a $700 special assessment.
The case was investigated by Internal Revenue Service Criminal Investigations and the FBI Allentown Resident Agency. It is being prosecuted by Assistant United States Attorney John Gallagher.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged in Two Bank RobberiesRead the Press Release
PHILADELPHIA - David Robinson, 42, of Philadelphia, PA, was charged today by indictment with two counts of bank robbery, announced United States Attorney Zane David Memeger.
According to the indictment, on March 19, 2016, Robinson robbed the PNC Bank at 4753 N. Broad Street in Philadelphia, of approximately $3,020. It is further alleged that on March 21, 2016, Robinson robbed the PNC Bank at 3244 N. Broad Street in Philadelphia, of $1,190.
If convicted of all charges, Robinson faces a maximum sentence of 40 years in prison, a possible fine, up to three years of supervised release, and a $200 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.
Former Traffic Court Judge Gets Prison Term for Tax ChargeRead the Press Release
PHILADELPHIA - Michael Sullivan, 51, of Philadelphia, was sentenced today to 10 months in prison for one count of failure to report and pay payroll taxes. Sullivan had failed to report and pay payroll taxes for employees of the Fireside Tavern, South Marshall Street, Philadelphia. Sullivan was an owner and operator of the Tavern. Sullivan was a judge for the former Philadelphia Traffic Court.
Sullivan pleaded guilty to the charge on October 20, 2015. In addition to the prison term, U.S. District Court Judge Eduardo Robreno ordered restitution in the amount of $58,314, one year of supervised release, and a $25 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service is being prosecuted by Assistant United States Attorney Paul L. Gray.
Drug Conspiracy Indictment UnsealedRead the Press Release
PHILADELPHIA - Donti Hunter, a/k/a Donte Hunter, a/k/a Pumpkin, a/k/a P, 37, and Jaekhon Cook, a/k/a Jae Khahn Cook, 23, both of Philadelphia, PA, were charged by Indictment, unsealed today, in a drug conspiracy, announced United States Attorney Zane David Memeger. The charges include conspiracy to distribute 28 grams or more of cocaine base, distribution of 28 grams or more of cocaine base, distribution of 28 grams or more of cocaine base within 1,000 feet of a public school, and aiding and abetting, in relation to distribution of more than 28 grams of cocaine base (“crack”). The case also involves the seizure of approximately 21 grams of cocaine base (“crack”), cash and narcotics packaging and paraphernalia from a home on the 800 block of Preston Street in Philadelphia.
If convicted, Hunter faces a mandatory minimum of 10 years in prison with a maximum possible sentence of life, at least 16 years of supervised release, a possible fine, and a $700 special assessment; Cook faces a mandatory minimum of five years in prison with a maximum possible sentence of life, at least eight years of supervised release, a possible fine, and a $700 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Arlene Fisk.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lancaster County Man Indicted on Child Pornography ChargesRead the Press Release
PHILADELPHIA - Jeremy Hachey, 23, of Lititz, PA, was charged today by Indictment with receipt and possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a mandatory minimum sentence of five years in prison, with a maximum possible sentence of 40 years, mandatory minimum of five years of supervised release, a possible fine, and $10,200 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 is being prosecuted by Assistant United States Attorney Jennifer B. Jordan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fugitive Extradited from Lebanon to Face Money Laundering ChargesRead the Press Release
PHILADELPHIA – Karim Messaoud, 47, a foreign national of Senegal and Morocco, made his initial appearance today after being extradited from Lebanon to the United States, announced United States Attorney Zane David Memeger.
In 2005, a federal grand jury handed up a 36-count indictment charging Messaoud with one count of conspiracy to launder monetary instruments, and 35 counts of laundering of monetary instruments. Messaoud fled the United States shortly after his indictment. U.S. District Court Judge Paul S. Diamond will preside over the trial. No date has yet been set.
According to the indictment, from April 2000 through September 2002 Messaoud illegally transferred monies through Western Union and other sources. At the time he committed these acts, Messaoud believed he was doing so for drug dealers, and that the funds were the proceeds of their drug trafficking. Messaoud structured the transfers in smaller amounts and in ficitious names to evade United States reporting requirements and to conceal the true source of the funds, and directed his co-conspirator to do the same. There were 24 illegal transactions by Messaoud totalling $337,500, and between Messaoud and his co-conspirator, a grand total of $407,500 in funds that were illegally transferred.
The extradition of this fugitive was a complex process that involved collaboration between the United States Attorney’s Office in the Eastern District of Pennsylvania and the Department of Justice, Office of International Affairs in Washington D.C., the Federal Bureau of Investigation, the United States Marshal Service, and the Lebanese government.
This case was investigated by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
Delaware County Man Convicted in Tax SchemeRead the Press Release
PHILADELPHIA – A federal jury, today, returned guilty verdicts against Jean Baptiste Alvarez, a/k/a “Alex,” 43, of Aldan, PA, on charges related to a tax fraud scheme. Alvarez was found guilty of conspiracy to defraud the United States with respect to false claims, aggravated identity theft, and misuse of Social Security numbers. U.S. District Court Judge Michael Baylson scheduled a sentencing hearing for July 26, 2016. Alvarez faces a mandatory minimum sentence of at least two years in prison with a maximum possible sentence of 24 years in prison, up to three years of supervised release, a possible fine, and a $500 special assessment.
According to evidence presented at trial, Alvarez unlawfully provided to Peterson Rene, charged elsewhere, the personal identifying information (PII) of hundreds of real persons. Specifically, the defendant sold Rene patient information labeled “census sheets” that were created by, and kept in the normal course of business, at the Kirkbride Center health care facility where the defendant worked. These “census sheets” list personal identifying information of patients, including names, social security numbers, and dates of birth. From 2012 through 2015, Alvarez and Rene conspired with others to use the stolen identifying information on tax returns for the purpose of obtaining payment of false, fictitious, and fraudulent refunds.
The case was investigated by IRS Criminal Investigations, the Federal Bureau of Investigation, and the Social Security Administration Office of Inspector General. It is being prosecuted by Assistant United States Attorney Terri A. Marinari and DOJ Tax Division Trial Attorney Ann M. Cherry.
Philadelphia Man Charged in Heroin ConspiracyRead the Press Release
PHILADELPHIA – An indictment was filed today charging Jose Ramon Liriano-Compres, 53, of Philadelphia, PA, with one count of conspiracy to distribute heroin and three counts of distribution of heroin, announced United States Attorney Zane David Memeger.
Liriano-Compres and another individual, charged elsewhere, were allegedly part of a heroin conspiracy. According to the indictment, on three separate occasions in June of 2015, Liriano-Compres distributed over 300 grams of heroin in Philadelphia.
If convicted, Liriano-Compres faces a mandatory minimum of 10 years in prison with a maximum possible sentence of life, a $400 special assessment, up to eight years of supervised release, and a potential fine.
This case was investigated by the FBI and the Department of Homeland Security. It is being prosecuted by Assistant United States Attorney Clare Putnam Pozos.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Man Sentenced for Damaging Employer's ComputersRead the Press Release
PHILADELPHIA - Lars Jepsen, 38, formerly of Deptford, NJ, was sentenced yesterday to five months in prison for hacking his former employer’s computers. He pleaded guilty on October 29, 2015, to knowingly causing damage to a protected computer and knowingly using the means of identification of another person with intent to commit a crime. In addition to the prison term, U.S. District Court Judge Joseph F. Leeson, Jr., ordered three years of supervised release, with the first six months in home confinement, a $3,000 fine, a $200 special assessment, and restitution of $9,500.
Jepsen damaged the computers of his former employer, after he had been fired. He did this using the username and password of another employee that he had acquired while working on that employee’s company computer. Jepsen drove from his New Jersey home to Allentown, PA, where he found an open Internet access point. He used that location to log into the employer’s network with the other employee’s credentials and then disabled the company’s Voice over Internet Protocol (VOIP) telephone network. The company lost its telephone service for several hours.
The case was investigated by the United States Secret Service, and is being prosecuted by Assistant United States Attorney Michael L. Levy.
Easton Man Charged with Possessing Destructive DevicesRead the Press Release
PHILADELPHIA – Donald Frey, 31, of Easton, Pennsylvania, was charged yesterday by Indictment with one count of possession of destructive devices, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli. The defendant is alleged to have knowingly possessed two destructive devices, specifically two pipe bombs, on January 10, 2014, in Lower Saucon Township, in the Eastern District of Pennsylvania.
If convicted, defendant Frey faces a maximum possible sentence of 10 years in prison, three years of supervised release, a possible fine, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives,, the Northampton County District Attorney’s Office, and the Lower Saucon Township Police Department. It is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eastern District of Pennsylvania Forms Regional Elder Justice Task ForceRead the Press Release
PHILADELPHIA – Today, the Department of Justice announced the launch of 10 regional Elder Justice Task Forces, including one in the Eastern District of Pennsylvania. These teams will bring together federal, state and local prosecutors, law enforcement, and agencies that provide services to the elderly, to coordinate and enhance efforts to pursue nursing homes that provide grossly substandard care to their residents.
The Elder Justice Task Forces will include representatives from the U.S. Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, the Department of Health and Human Services, state Adult Protective Services agencies, Long-Term Care Ombudsman programs and law enforcement.
“When our seniors enter a nursing home or long-term care facility there is a valid expectation that they will receive reasonable, appropriate and adequate care,” said United States Attorney Zane David Memeger. “Unfortunately, my office has handled far too many cases in recent years where elderly citizens and their families were victimized by care facilities that put profits ahead of serving those expectations. The Elder Care Task Force will allow us to more effectively hold those who are providing substandard care accountable for their reprehensible conduct.”
“Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents. These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”
In addition to the Eastern District of Pennsylvania, Elder Justice Task Forces are being launched in: District of Maryland, Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, Southern District of Ohio, Middle District of Tennessee and the Western District of Washington.
“Too often, our elderly citizens are exploited, many times without their knowledge,” said Special Agent-in-Charge Nick DiGiulio, of Health and Human Services Office of Inspector General. “The formation of this task force brings additional resources to uncover abuses, bring justice to more vulnerable victims, and raise awareness about the repercussions that exist for providing substandard care to the elderly.”
“Pennsylvania’s Medicaid fraud Control Section fully supports this federal undertaking to protect and serve the most vulnerable of citizens,” said Andrew Demarest, Pennsylvania Chief Deputy AG, Medicaid Fraud Control Section.
The Elder Justice Task Forces reflect the Department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the Department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the Department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
Drug and Gun Charges Filed Against Bethlehem ManRead the Press Release
PHILADELPHIA – Steven Kitchell, a/k/a “Lotti,” 37, of Bethlehem, Pennsylvania, was charged by Information, filed yesterday, with one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli.
According to the information, Kitchell knowingly possessed a .40 caliber Sig Sauer semiautomatic pistol and a variety of controlled substances with intent to distribute them on April 20, 2015, in the City of Bethlehem, in the Eastern District of Pennsylvania.
If convicted of all charges, Kitchell faces a mandatory minimum sentence of five years in prison with a statutory maximum sentence of life in prison, up to a lifetime of supervised release, a possible fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Division, the Northampton County District Attorney’s Office, and the City of Bethlehem Police Department, and is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein and Assistant United States Attorney Kishan Nair.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Roofing Company Owner Sentenced for Charges Connected to Employee's Fatal FallRead the Press Release
PHILADELPHIA - James J. McCullagh, 60, of Meadowbrook, PA, was sentenced today to 10 months in prison for charges related to the fatal fall of an employee. McCullagh, who owns James J. McCullagh Roofing, pleaded guilty on December 9, 2015, to four counts of making false statements, one count of obstruction of justice, and one count of willfully violating an Occupational Safety and Health Administration (OSHA) regulation causing death to an employee. In addition to the prison term, U.S. District Court Judge Nitza I. Quinones Alejandro ordered one year of supervised release, and a $510 special assessment.
On June 21, 2013, one of McCullagh’s employees was killed after falling approximately 45 feet from a roof bracket scaffold while performing roofing work for McCullagh. McCullagh, failed to provide fall protection equipment to his employees. In connection with the OSHA investigation of the fatality, McCullagh attempted to cover up his failure to provide fall protection by falsely stating, on four occasions, that he had provided fall protection equipment, including safety harnesses, to his employees. McCullagh knew that he had not provided fall protection to his employees and none of his employees had safety harnesses or any other form of fall protection. McCullagh told an OSHA Compliance Safety and Health Officer that his employees had been wearing safety harnesses tied off to an anchor point when he saw them earlier in the day prior to the fall. McCullagh also directed other employees to falsely state that they had fall protection, including safety harnesses, on the day of the fall.
The case was investigated by the United States Department of Labor-Office of Inspector General Labor Racketeering and Fraud Investigations and the Occupational Safety and Health Administration, with assistance from the U.S. Department of Labor's Occupational Safety and Health Administration and Office of Inspector General. It is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Lehigh County Man Indicted on Child Exploitation ChargesRead the Press Release
PHILADELPHIA - Michael Lees, a/k/a “Michael Lewis,” a/k/a “Michael Dontask,” 39, of Catasaqua, PA, was charged yesterday by indictment with the enticement of a minor, production of child pornography, attempted production of child pornography and possession of child pornography, announced United States Attorney Zane David Memeger.
According to the indictment, between October and December of 2015, Lees contacted, via Internet, a person that he believed was a 12-year old child and enticed that person to engage in sexual activity and to create a visual depiction of that activity. It is further alleged that Lees possessed a cell phone containing child pornography.
If convicted the defendant faces a mandatory minimum term of 15 years in prison up to life, a mandatory minimum of five years of supervised release, a $500 special assessment, and an additional $25,000 special assessment, and a possible fine.
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 Office of the Pennsylvania Attorney General. It is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Men Charged in $1.2M Corporate Embezzlement SchemeRead the Press Release
PHILADELPHIA – An indictment was filed today charging Daryl Stevens, 45, of Bethlehem, PA, with four counts of mail fraud, and an information was filed charging Justin Jordan, 34, of East Brunswick, NJ, and Christopher Cook, 40, of Ocean Township, NJ, with multiple counts of mail fraud, in connection with a million-dollar fraud scheme, announced United States Attorney Zane David Memeger.
Jordan and Stevens were employees of “Company A,” which was located in Radnor, Pennsylvania, and provided storeroom management services for industrial, commercial, and educational facilities throughout the United States. Cook was employed by “Company B,” which was international pharmaceutical company based in New York City, New York, with offices in New Brunswick, New Jersey. Company B hired Company A to provide inventory management and purchasing services for Company B’s New Brunswick, New Jersey offices. Jordan and Stevens were working on-site at Company B in their employment with Company A. It is alleged that they, along with Cook, created, registered, and incorporated a total of seven sham vendor companies, obtained mailing addresses for their respective sham vendor companies, and set up and controlled bank accounts for their respective sham vendor companies. Jordan allegedly controlled four of the sham vendor companies; Stevens allegedly controlled two of the sham vendor companies; and Cook allegedly controlled one of the sham vendor companies.
According to the charging documents, between July 2008 and December 2014, Jordan, Stevens, and Cook caused Company A to purchase bogus and non-existent products on behalf of Company B from the seven sham vendor companies that they controlled. Invoices were submitted by the sham vendor companies to Company A, which caused Company A to pay the sham vendor companies by mailing checks or wiring funds into the bank accounts controlled by the defendants. Additionally, the defendants allegedly caused Company A to “sell” approximately $1.2 million of bogus product purchased from the defendants’ sham vendor companies to Company B.
If convicted, each defendant faces a maximum statutory sentence of 20 years in prison per charged count, a special assessment, up to three years of supervised release, and a potential fine.
This case was investigated by the FBI. It is being prosecuted by Assistant United States Attorney James Petkun.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Reading Resident Charged with Illegal Reentry After DeportationRead the Press Release
PHILADELPHIA - Marcos Arana, 44, of Reading, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about February 29, 2016, Arana, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about September 5, 2000.
If convicted the defendant faces a maximum possible sentence of 20 years in prison.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Nelson S.T. Thayer, Jr.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Prison Guard Admits Smuggling Contraband into Philadelphia PrisonRead the Press Release
PHILADELPHIA – Dupree Myers, 27, previously employed at Curran-Fromhold Correctional Facility (“CFCF”), pleaded guilty today to attempted extortion which interfered with interstate commerce and attempted distribution of controlled substances. Myers agreed to deliver OxyContin pills and a cellphone to a prisoner in exchange for $1,000. U.S. District Court Judge Wendy Beetlestone scheduled a sentencing hearing for June 23, 2016. Myers faces a statutory maximum sentence of 40 years, plus supervised release, a special assessment, and a possible fine.
To obtain the contraband and payment, Myers arranged a meeting with the inmate’s purported associate at a location in Philadelphia. During the ensuing meeting, the inmate’s purported associate handed the contraband and cash payment to Myers, and Myers subsequently smuggled the contraband past prison security and delivered it to an inmate.
Myers was one of six prison guards charged by separate, unrelated indictments. Each of the officers from within the Philadelphia Prison System was charged with smuggling drugs and/or cell phones to inmates in exchange for money. To date, in addition to Myers, guilty pleas have been entered in separate, related cases by: George Kindle, a former correctional officer at The House of Corrections; Marc Thompson, a former correctional officer at The House of Corrections; John Wesley Herder, a former correctional officer at the Curran-Fromhold Correctional Facility; Joseph Romano, a former correctional officer at The Philadelphia Industrial Correctional Center. Defendant Bryant Fields, a former correctional officer at The Detention Center, is awaiting trial.
The case was investigated by the FBI and the Philadelphia Department of Corrections with assistance from the Philadelphia Police Department’s Prison Intelligence Group. It is being prosecuted by Assistant United States Attorney Kevin Brenner.
Chester County Man Pleads Guilty to Telemarketing ScamRead the Press Release
PHILADELPHIA - Marc Roy Ferry, 35, of Downingtown, PA, pleaded guilty today to one count of wire fraud and two counts of money laundering in connection with a telemarketing scheme that bilked tens of thousands of senior citizens out of more than $13 million. U.S. District Court Judge Gerald A. McHugh, Jr. scheduled a sentencing hearing for June 22, 2016.
According to court documents, between 2009 and March 2014, Ferry and Ari Tietolman, charged elsewhere, and others, used Tietolman’s network of telemarketers in Canada and India to target American senior citizens with deceptive telemarketing calls. They sold worthless or non-existent services and then debited the victims’ bank accounts without their informed consent. Using the business names Fraud Watch, Patient Assistance Plus, Legal Eye and Trust One, the worthless or non-existent services these telemarketers sold included purported fraud protection and discounted legal services, as well as a discount prescription card. Tietolman and others, it is alleged, had been running the scheme since at least 2005.
During the calls, Tietolman’s telemarketers made various false representations, such as that they were calling on behalf of, or were affiliated with, the victim’s bank, or insurance company, or the United States government. In addition to misrepresenting the value of the products being marketed, Tietolman’s telemarketers also misrepresented the cost of these products, sometimes telling consumers the products were free, or less expensive than the amount that was ultimately debited from the consumers’ bank accounts. In other instances, Tietolman’s telemarketers assured consumers they would not debit the consumers’ bank accounts, and then did just that after the consumer provided their bank account information.
Tietolman allegedly attempted to conceal his involvement in the scheme by employing defendant Marc Roy Ferry and others to run “front” companies - including First Consumers, LLC - and process the fraud money. Ferry admitted that Tietolman paid him and others to form corporations in the United States. The sole purpose of these corporations was to process the fraud proceeds generated by the telemarketing scheme. Tietolman, according to court documents, instructed Ferry and others to open up numerous bank accounts in the United States in the names of the fraud companies that they had incorporated. Ferry sent Tietolman online logins and passwords so Tietolman and others could control these United States bank accounts from Canada.
Tietolman allegedly sent Ferry and others bank account information for the victims in the United States. Using computer programs and printers allegedly provided by Tietolman, Ferry and others used the victims’ bank account information to print remotely created checks (“RCCs”), in the United States. The RCCs were all made payable to the fraud companies and did not require a signature by the account holder. Because these RCCs did not require the account holder’s consent each time a check was created and submitted to the bank for payment, the account holder-victim had no opportunity to object or prevent the debit from occurring. Ferry and others deposited the RCCs in bank accounts held by the fraud companies, allegedly per Tietolman’s instructions. Tietolman, according to court documents, instructed Ferry and others to deposit the RCCs in batches of less than $10,000 to avoid federally-mandated reporting requirements. After the checks were deposited, Tietolman instructed Ferry and others to wire the majority of the funds to accounts in Canada.
Ferry faces a maximum possible sentence of 70 years in prison; three years of supervised release; a fine of $750,000 or up to double the amount involved in the money laundering; and a $300 special assessment. Ferry will also be ordered to pay restitution to the victims.
The case was investigated by the FBI, IRS Criminal Investigations, U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Federal Trade Commission, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Vineet Gauri.
Superseding Indictment Charges Owner of Trucking Business with FraudRead the Press Release
PHILADELPHIA - A superseding indictment was filed today charging Volodymyr Kurylo, a/k/a “Volodya” a/k/a “Vova,” 35, of Richboro, PA, and Vitalii Vitiuk, 28, of Philadelphia, PA, with one count of conspiracy to defraud the United States and one count of conspiracy to produce an identification document without lawful authority, announced United States Attorney Zane David Memeger.
Volodymyr Kurylo operated VN Trucking, which, among other things, provided truck driver training. Vitalii Vitiuk worked for Kurylo. PennDOT requires that applicants for a Pennsylvania Commercial Driver’s License (CDL) provide proof of residency. According to the indictment, between June 2014 and September 2015, the defendants conspired to provide false residency documents to VN Trucking students who resided outside of Pennsylvania. For example, it is alleged that Kurylo obtained genuine utility bills and then had those bills falsified to indicate that the bill was in the student’s name and that the student resided at the Pennsylvania address. Kurylo also allegedly fabricated a false lease document for two CDL students who did not reside in Pennsylvania.
It is further alleged that between February 2015 and December 2015, Kurylo operated VN Trucking in violation of a January 2015 Federal Motor Carrier Safety Administration order that VN Trucking cease operations. Kurylo, it is alleged, continued to dispatch trucks and drivers to transport property using VN trucks, conducting the business of VN Trucking at its offices in Bensalem, Pennsylvania, and by using other motor carriers to conceal the operations of VN Trucking.
If convicted, defendant Kurylo faces a maximum sentence of 20 years in prison and defendant Vitiuk faces a maximum sentence of 15 years in prison.
The case was investigated by the U.S. Department of Transportation, Office of Inspector General and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Frank A. Labor III and Michael T. Donovan.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Pair Indicted on Drug and Gun ChargesRead the Press Release
PHILADELPHIA - William Upson, a/k/a Jamal, 34, and Todd Smith, a/k/a Tyrone Smith, 37, both of Philadelphia, PA, were charged today by Indictment with drug trafficking and weapons charges, announced United States Attorney Zane David Memeger. The charges include possession with intent to distribute controlled substances, possession with intent to distribute controlled substances within 1,000 feet of a school, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon.
If convicted of all charges, Smith faces a mandatory minimum sentence of 20 years in prison with a maximum sentence of life, at least six years and up to lifetime supervised release, a possible fine, and a $400 special assessment. Upson faces a mandatory minimum sentence of six years in prison with a maximum sentence of life, at least six years and up to lifetime of supervised release, a possible fine, and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Arlene Fisk.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Woman Charged with Straw Purchasing FirearmsRead the Press Release
PHILADELPHIA - Sabrina Brooks, 34, of Philadelphia, PA, was charged by indictment, filed yesterday, with making false statements to a federal firearms licensee and aiding and abetting possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. According to the indictment, on October 13, 2015, Brooks purchased two firearms for Nathan Manning, a convicted felon who is charged elsewhere. Brooks also made false statements to a federal firearms licensee in purchasing the firearms: a .380 caliber Magnum Research, Micro Desert Eagle, semi-automatic handgun and a nine-millimeter Ruger, Model SR9, semi-automatic handgun.
If convicted, Brooks faces a maximum statutory sentence of 15-years in prison, up to three years of supervised release, a fine of up to $500,000, and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney José Arteaga.
Pair of Friends Charged in Scheme to Defraud Distressed HomeownersRead the Press Release
PHILADELPHIA – An indictment, unsealed today, charges two friends, Daniel Sheehan, 41, of Gloucester City, NJ, and John Hoban, 42, of Bellmawr, NJ, in a scheme to defraud distressed homeowners seeking help out of more than $400,000, announced United States Attorney Zane David Memeger. The pair is charged with wire fraud conspiracy and eight counts of wire fraud. Sheehan is additionally charged with 18 wire fraud counts and one count of interstate transport of stolen property. As a result of the alleged scheme, more than 110 people were defrauded, several of whom lost their homes.
According to the indictment, between September 2012 and February 2015, Sheehan, a mortgage modification professional, represented to a dozen clients that he could help them modify their mortgages through the Home Affordable Mortgage Program (“HAMP”) or the Home Affordable Refinance Program (“HARP”). Instead, it is alleged, Sheehan: took fees from his clients without ever submitting the loan modification paperwork he promised; deceived his clients by representing to them that he had secured a new mortgage for them; directed many of his clients to make their mortgage payments to him until their new loan paper work arrived; had Hoban pretend to be a bank representative to lull the client into a false sense of security; and used his clients’ mortgage payments for his own purposes rather than that for which those payments were intended. Several of Sheehan’s clients’ homes went into foreclosure and at least two went to Sheriff’s sale.
According to the indictment, LS, who owned a home in Northfield, NJ, contacted Sheehan after he lost his job and couldn’t make his mortgage payments. LS and his wife had lived in the home for years and had raised their children there. In August of 2013, Sheehan told LS that he could get him a loan modification that would reduce both his principal and his interest rate. LS paid Sheehan his requested fee of $1,700. In February of 2014, Sheehan informed LS that he saw LS’s offer and that LS should have it in his hands in the next 24 to 48 hours. Although LS’s house was scheduled to be sold as a Sherriff’s sale on several occasions, Sheehan allegedly reassured LS that he would take care of it. In May of 2014, a man came to LS’s and told LS that he was going to purchase the house at Sherriff’s sale. When LS told Sheehan, Sheehan instructed LS to ignore the man. On July 1, 2014, Sheehan told LS that the modification had been approved, that his house had not been sold, and presented him with an agreement to sign. He told LS that he would have to make trial payments of $1,525.55 for the next three months and he instructed LS to make the payments out to him and that he would place the payments in an escrow account. In September of 2014, Sheehan allegedly gave LS a document that purported to be an order from a judge allowing LS to stay in his home until September 23, 2105. On November 5, 2014, LS appeared in court where he learned from the judge that the document provided to him by Sheehan was a forgery. On November 5, 2014, LS and his family were physically evicted from their home.
In another instance, according to the indictment, when a client of Sheehan’s started receiving foreclosure notices from her bank, Sheehan told her that a representative with the new mortgagor would resolve the issue. Sheehan then, it is alleged, had Hoban pose as that bank representative, convincing the homeowner that the foreclosure notice would be “frozen” and that she would receive a packet from the new bank in 30 days. Meanwhile, no application for a loan modification had ever been filed on that homeowner’s behalf.
“This type of mortgage fraud is very personal. The defendants cheated their homeowner victims out of hundreds of thousands of dollars by preying on their emotional and financial vulnerabilities,” said Memeger. “The financially struggling victims viewed the defendants as life savers who would help them preserve their most valuable investment -- their homes. Instead, the defendants betrayed their victims, sank them into deeper debt, and, in some cases, left them homeless.”
“It’s hard to overstate the cruelty displayed by these defendants,” said FBI Special Agent-in-Charge William F. Sweeney, Jr. “Portraying themselves as white knights who would help families keep their homes, pocketing their money – knowing, all the while, their unsuspecting victims would soon be homeless. Their actions are unconscionable.”
It is further alleged that between April 2014 and February 2015, Sheehan transported, transmitted, and transferred in interstate and foreign commerce, goods, wares, securities, and money of the value of $5,000 or more, taken by fraud.
If convicted, each defendant faces a maximum statutory sentence of 20 years in prison, possible fines, and up to three years of supervised release. Sheehan would be required to pay a $2,900 special assessment; Hoban, a $900 special assessment. A notice of forfeiture for $470,000 is also attached.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Paul Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Members of Chester Drug Trafficking Organization ConvictedRead the Press Release
PHILADELPHIA – A federal jury, today, returned guilty verdicts against members of a violent drug trafficking gang that operated in and around Chester, PA. The jury found Donald Womack, Sr., Paris Church, Ronell Whitehead, Breon Burton, Spencer Payne, guilty of operating a drug market within the Rose and Upland neighborhood on the east side of Chester City. Womack, Church, Whitehead, Burton, and Payne were convicted of conspiracy. All of the defendants face a maximum possible sentence of life in prison; Womack faces a mandatory term of life in prison; the remaining defendants, except Payne, face a mandatory term of 20 years in prison; Payne faces a mandatory term of 10 years in prison. Sentencing hearings have not yet been scheduled.
Among the charges that these defendants and their 17 co-defendants were convicted of: distributing cocaine, crack cocaine, and heroin to customers in their territory and elsewhere between August of 2012 and September of 2014; maintaining a drug house; possessing firearms in furtherance of drug trafficking crimes; and distributing cocaine, crack and heroin within 1,000 feet of area schools and a playground. Burton was previously convicted of being a felon in possession of firearms and use of a firearm in furtherance of drug trafficking. One of the group’s largest alleged cocaine and heroin suppliers, Paris Church, was convicted of conspiracy to distribute 280 or more of cocaine base (“crack”), 500 grams or more of cocaine, and 100 or more grams of heroin for re-distribution. The leader of the drug trafficking group, William Dorsey, and 16 other co-defendants pleaded guilty to their roles in the organization.
The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Chester Police Department, the Pennsylvania State Police, and the Delaware County Office of the District Attorney’s Criminal Investigation Division. Also providing substantial manpower and assistance in the arrests were agents from the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Ashley K. Lunkenheimer, A. Nicole Phillips, and Faithe Moore Taylor.