Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
City Hall Officials in Allentown and Reading Plead Guilty in Public Corruption CaseRead the Press Release
PHILADELPHIA – Dale Wiles, 48, of Allentown, PA and Eron Lloyd, 35, of Reading, PA, both pleaded guilty today to conspiracy charges, announced United States Attorney Zane David Memeger. At the time of their respective offenses and until earlier this month, Wiles and Lloyd were public officials in Allentown and Reading, respectively.
During his guilty plea hearing, defendant Dale Wiles admitted the following:
Wiles was an attorney and an Assistant City Solicitor for the City of Allentown whose duties included the coordinating of certain Allentown municipal projects to attorneys in the private sector. One of these projects was the City of Allentown’s 2014 contract for the collection of delinquent real estate taxes and municipal claims (“the revenue collection”). Wiles was tasked with recommending a law firm to the City of Allentown’s Purchasing Agent. Wiles then formed a committee, comprised of himself and two other officials (“the revenue committee”).
In response to a request for proposals (RFP) created by the revenue committee, several competitors submitted proposals for the revenue collection contract, including entities identified here as Law Firm #1, Law Firm #2, and a partnership between a revenue collection company and Law Firm #3 (“the Partnership”). Wiles and the other revenue committee members graded each of these proposals using pre-established criteria which were consistent with the representations in the RFP and memorialized these scores on preprinted government forms (“the score sheets”). The original three score sheets reflected that the committee members had given the highest aggregate scores to Law Firm #2 and Law Firm #1, and that none of the committee members had concluded that the Partnership’s proposal would be the most advantageous to the City. The committee members discussed the proposal and agreed that Law Firm #2’s proposal would be the most advantageous to the City.
Before the committee could recommend Law Firm #2’s proposal to the Purchasing Agent, however, another Allentown official, identified here as Public Official #4, intervened in order to steer the contract to the Partnership so that the Partnership and its affiliates would then provide money, including campaign contributions, to Public Official #3 and his campaign operatives. Public Official #3 was an elected official in Allentown who had authority over Public Official #4 and Wiles. Wiles learned from Public Official #4 that the contracting process was being corruptly manipulated in order to steer the 2014 revenue collection contract to the Partnership. Wiles understood that Public Official #4 was acting with the approval of, and for the benefit of, Public Official #3, and that Wiles was expected to help create the false impression that the Partnership had won the contract on the merits. Thus, rather than quit or risk termination, Wiles joined and assisted the conspiracy, taking certain overt acts to help achieve its objectives.
For example, to help Public Official #4 create the false impression that the Partnership’s proposal was advancing on the merits, Wiles created a new version of the score sheet on which he had documented his actual evaluation of the proposals submitted in response to the RFP. The false score sheet contained, among other things, artificially inflated scores for the Partnership which did not reflect Wiles’ actual evaluation but were created to help the corrupted award process withstand future scrutiny. And like other members of the conspiracy, Wiles engaged in repeated acts of obstruction of justice in order to help conceal the conspiracy. In 2014, and then again in 2015, Wiles concealed certain score sheets and other records from a federal grand jury after learning that these documents would be responsive to federal grand jury subpoenas. Wiles also lied to FBI agents in order to conceal material facts about the award of the revenue collection contract to the Partnership, including the steps that he and Public Official #4 took to ensure that the Partnership was awarded the 2014 revenue collection contract.
During his guilty plea hearing, defendant Eron Lloyd admitted the following:
Public Official #1 was a Reading public official who had the power to sign into law ordinances that had been passed by City Council. Public Official #1 was also a candidate in the Democratic Party’s primary election, scheduled for May 19, 2015. Lloyd reported to Public Official #1, as both a public official and as a member of Public Official #1’s campaign team.
On numerous occasions, Public Official #1 solicited, demanded, and received campaign contributions from parties who sought to receive or had previously received, favorable official action, including the awarding of contracts, from the City of Reading (“the vendors”). Public Official #1, directly and through Lloyd and others, communicated to certain vendors that they were expected to provide him with campaign contributions in return for past or prospective official action by the City of Reading. Public Official #1 caused and attempted to cause certain municipal staff, including Lloyd, to take official action favorable to certain vendors who had provided, or were expected to provide, campaign contributions benefiting Public Official #1.
To limit the influence of money on candidates seeking public office, Section 1012 of Reading’s Code of Ethics established limits on campaign contributions to, and certain reporting requirements for, certain political candidates. To limit the influence of money on public officials in Reading, Section 1006(H) of the Code of Ethics prohibits the awarding of “no-bid contracts” to donors who have given campaign contributions in excess of those limits. Prior to the 2015 Democratic primary, Public Official #1 believed that he had received contributions which were prohibited by the Code of Ethics, and that his best chance of winning re-election would require keeping these contributions and raising additional funds which would also be prohibited by the Code of Ethics. Public Official #1 decided to engineer a repeal of the relevant sections of the Code by bribing the President of City Council, Francisco Acosta, in violation of federal criminal law. Lloyd assisted Public Official #1 with this scheme and helped devise and implement it.
Public Official #1 and Lloyd decided to offer Acosta an $1,800 “loan” to the campaign committee of Acosta’s ally ( “Public Official #2”), which would be “forgiven” upon Acosta successfully orchestrating a repeal of Sections 1012 and 1006(H). Acosta accepted the payment on April 10, 2015 and then, three days later, introduced legislation to eliminate certain restrictions in the Code of Ethics in accordance with Public Official #1’s wishes (“the repeal bill”). As agreed to by Public Official #1, Acosta, and Lloyd, the repeal bill would have repealed Section 1012 in its entirety, thereby eliminating the restrictions on campaign contributions and nullifying Section 1006(H)’s prohibition on awarding “no-bid contracts” to certain donors.
To conceal his participation in the scheme, Public Official #1 sought to finance any campaign contributions to Public Official #2 with funding from third parties. Public Official #1 also sought to offer Acosta additional funding for the campaign committee of Public Official #2 as a reward for Acosta successfully orchestrating the passage of the repeal bill, although only a single payment – an $1,800 check payable to the campaign of Public Official #2 (“the bribe check”) – was ever provided to Acosta. When Acosta took possession of the bribe check, he agreed that, in order to avoid scrutiny of his agreement with Public Official #1 and Lloyd, neither Acosta nor Public Official #2 would deposit the bribe check until a later date. Acosta then attempted to persuade other members of City Council to pass the repeal bill before the primary election by falsely asserting that he was motivated solely by the best financial interests of Reading and by concealing that he had received the bribe check.
After the FBI confronted Acosta, Acosta withdrew from the conspiracy and absented himself from the vote on the repeal bill. The repeal bill was unanimously defeated and Public Official #1 was defeated in the Democratic primary election. After the election, Public Official #1 believed that his best chance of retiring his campaign debt was to obtain additional campaign contributions from parties who sought favorable official action, including the awarding of contracts, from the City of Reading before the expiration of Public Official #1’s term in office. Public Official #1 and Lloyd conspired to retire Public Official #1’s campaign debt by causing city contracts, collectively worth millions of dollars, to be awarded to vendors who would be willing to provide Public Official #1 with sufficiently large campaign contributions, all in violation of federal criminal law. Lloyd took numerous steps to help Public Official #1 accomplish this goal.
After accepting the guilty pleas, United States District Judge Juan R. Sanchez scheduled a sentencing hearing on March 2, 2016 for Wiles, and on March 3, 2016 for Lloyd. Wiles faces a maximum possible sentence of 20 years in prison, a fine, three years of supervised release, and a $100 special assessment. Lloyd faces a maximum possible sentence of five years in prison, a fine, three years of supervised release, and a $100 special assessment. For his role in conspiring with Public Official #1 to repeal the Code of Ethics, Acosta pleaded guilty on August 5, 2015 and is awaiting sentencing.
These cases are being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Pennsylvania State Police. They are being prosecuted by Assistant United States Attorneys Joe Khan and Nancy Beam Winter.
Romanian Citizens Charged in Skimming SchemeRead the Press Release
PHILADELPHIA - Aura Voicu, 24, and Silviu Serban, 30, both of Bucharest, Romania, were charged today by Indictment with conspiracy to commit bank fraud, attempted bank fraud, and aiding and abetting, announced United States Attorney Zane David Memeger.
According to the indictment, between at least May 25, 2015 and mid-June 2015, the defendants engaged in a skimming scheme involving Automated Teller Machines (ATMs) belonging to various banks that the defendants targeted. The defendants allegedly installed devices on various Philadelphia bank ATMs to capture Personal Identification Numbers (PINs) used by bank customers.
If convicted, the defendants face a maximum possible sentence of 35 years in prison, a five year term of supervised release, a possible fine and a $200 special assessment.
The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged in Fraud Scheme Involving Counterfeit Credit CardsRead the Press Release
PHILADELPHIA - Christopher Castillo, 22, of Philadelphia, was charged in an Indictment with producing and selling counterfeit credit cards, possessing credit card making equipment, and aggravated identity theft of a Scotiabank credit card account holder, announced United States Attorney Zane David Memeger. According to the indictment, among the items found in Castillo’s possession were over 150 white plastic credit card templates, multiple partially manufactured credit cards, multiple sheets of holographic stickers resembling the holograms found on Visa and MasterCard cards, documents containing personally identifiable information, and a desktop credit card printer.
If convicted the defendant faces a mandatory minimum sentence of two years in prison with a maximum possible sentence of 35 years in prison, three years supervised release, a fine, and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Anita Eve.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lehigh County Couple Convicted in Scheme to Defraud NASARead the Press Release
A federal jury today convicted Yujie Ding, 53, and Yuliya Zotova, 41, of Center Valley, Pennsylvania, of six counts of wire fraud for defrauding NASA’s Small Business Innovation Research (SBIR) Program. U.S. District Court Judge Harvey Bartle III scheduled sentencing hearings for March 2, 2016.
In August 2009 and July 2010, Ding and Zotova submitted proposals to NASA, seeking funding for scientific research. The defendants’ proposals claimed that Zotova would serve as principal investigator for research that would be conducted at their business, ArkLight. The defendants’ proposals claimed further that Arklight would subcontract some of the work to Lehigh University, where Ding was employed. Instead, the defendants used ArkLight as a front to funnel federal grant money to themselves for research performed by students and others working in Ding’s university lab who were not supervised by Zotova. The defendants sent invoices to NASA, via interstate electronic transmissions, for research in which the jury found that ArkLight had not participated.
The case was investigated by the National Aeronautics and Space Administration's Office of Inspector General, the Defense Criminal Investigative Service, and the United States Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorneys Elizabeth F. Abrams and Gregory B. David.
Allentown Company Sentenced for Violating Procedures Related to Chemical ShipmentsRead the Press Release
Taminco US, Inc. (“Taminco”), today, pleaded guilty to and was sentenced for six counts related to shipping monomethylamine (MMA) to customers in Mexico for whom required identification had not been obtained and failing to report the disappearance of shipments of MMA. Taminco is a chemical company headquartered in Allentown, PA. United States District Court Judge Edward G. Smith ordered the company to pay a criminal penalty of $860,374, which comprises a criminal fine of $650,000 and forfeiture of $210,374. The company also reached a civil settlement with the United States concerning the same conduct and agreed to pay a civil fine of $475,000.
Taminco manufactured, distributed, sold and exported MMA. MMA is classified as a “List I” chemical and regulated by the Drug Enforcement Administration (DEA) because it is a necessary chemical for one method of manufacturing methamphetamine, a controlled substance. Due to its List I chemical classification, a manufacturer is required to confirm the identity and verify the legitimacy of any customer to whom it ships the product. The manufacturer is also required to immediately report to the DEA any unusual or excessive loss or disappearance of the product. Taminco manufactured MMA at its plant in Pace, Florida, and had the MMA packaged in 55 gallon drums before shipping it to the border at Laredo, Texas.
Between February and June of 2010, Taminco shipped six loads of MMA to two different customers in Mexico for whom Taminco had not obtained required identification. Each load was approximately 16,800 kilograms of MMA. Some shipments of MMA disappeared and Taminco failed to promptly report the disappearances to the DEA as required by statute.
DEA discovered evidence of some barrels from missing shipments in August 2011, and discovered some of the missing barrels of MMA in December 2011 and April 2012. In August 2011, DEA agents located wrappers from the June 2010 shipment of MMA drums in an abandoned residence in San Luis, Arizona. In December of 2011, Customs and Border Protection officers intercepted five Taminco drums of MMA when an individual (not associated with Taminco) attempted to transport them by truck into Mexico at Nogales, Arizona. In April of 2012, DEA agents found and seized six additional Taminco drums of MMA at a self-storage unit in Nogales, Arizona. The drums that DEA seized were from March 2010 shipments to the unverified Mexican customer.
Taminco’s civil settlement with the United States resolves civil claims arising from 19 shipments of MMA in early and mid-2010 that were authorized by Taminco without proper verification of the existence and validity of the foreign business entities ordering the List I chemicals. According to the civil claims, Taminco also could not verify that certain of the MMA shipments reached their intended recipient in Mexico, and Taminco failed to report to DEA that those shipments were missing or that delivery could not be verified.
As part of the civil settlement, Taminco has entered into a Memorandum of Agreement (MOA) with the DEA under which Taminco has agreed to comply with certain heightened compliance requirements regarding the manufacture, sale and shipment of listed chemicals. DEA has agreed to forego administrative action against Taminco’s DEA registrations, subject to Taminco’s compliance with the terms of the MOA.
The case was investigated by the Yuma, AZ Resident Office and Scranton Resident Office of the Drug Enforcement Administration with assistance from Customs and Border Protection. It was prosecuted by Assistant United States Attorneys Albert S. Glenn and Charlene Keller Fullmer.
Philadelphia Man Charged with Illegally Receiving Dead Mother's BenefitsRead the Press Release
PHILADELPHIA - Rannie Henley, Sr., 78, 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 January 2011 until his fraud was discovered in February 2015. The defendant’s alleged actions resulted in a loss to the government of approximately $60,567.
If convicted, the defendant faces a substantial period of incarceration, a three‑year period of supervised release, restitution to the government of $60,567, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged in Pizzeria RobberiesRead the Press Release
PHILADELPHIA - George Smith, 26, of Philadelphia, PA, was charged today by Indictment with Hobbs Act robberies and attempted Hobbs Act robbery, announced United States Attorney Zane David Memeger.
According to the indictment, on August 20, 2015, Smith robbed the Pizza Hut restaurant at 2916 N. Broad Street, in Philadelphia and, a day later, robbed the Domino’s Pizza at 2628 N. Broad Street. It is further alleged that on August 24, 2015, Smith robbed the 7-Eleven at 2042 N. Broad Street. If convicted of all charges, Smith defendant faces a maximum possible sentence of 60 years in prison, a fine, up to three years of supervised release, a $300 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.
Delaware County Businessman Sentenced for Selling Counterfeit GoodsRead the Press Release
Stephen Voudouris, Sr., 60, of Newtown Square, PA was sentenced today to a year and a day in prison and six months home detention pursuant to his prior guilty plea to conspiracy, trafficking in counterfeit goods, smuggling counterfeit goods into the United States and wire fraud, announced United States Attorney Zane David Memeger.
The defendant owned and operated Misikko.com, headquartered in Newtown Square, Pennsylvania, an online retailer of luxury hair care appliances, including flat irons and blow dryers. Misikko.com was not an authorized dealer of brands such as CHI, T3 and Babyliss. As he admitted at his guilty plea, Voudouris, Sr. sought out Chinese manufacturing companies from which he and his employees could purchase cheap goods bearing counterfeit trademarks of CHI, T3 and Babyliss. Through Misikko.com, the defendant then resold the counterfeit goods as authentic, for top dollar, to the American public.
In addition, at the direction of Voudouris, Sr., in a scheme to drive consumers to their website and maximize profits, Misikko.com also purported to sell "Breast Cancer Awareness" products. The Misikko.com website was designed to make consumers believe that breast cancer charities would benefit from the purchase of certain pink products. For some products, Misikko.com represented that $25 from every purchase would benefit a prominent breast cancer foundation, but no donations were ever made to a breast cancer charity.
In addition to the prison sentence, the Honorable John R. Padova ordered the defendant to pay $150,346 in restitution to the victim companies and individuals, as well as a fine of $10,000.
The case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorneys Alicia M. Freind and Mary E. Crawley.
Bucks County Man Charged in Bank RobberyRead the Press Release
PHILADELPHIA - Jeffrey Chernoff, 35, of Richboro, PA was charged today by Indictment with bank robbery and attempted bank robbery, announced United States Attorney Zane David Memeger.
According to the indictment, on October 26, 2015, Chernoff robbed the Bank of America branch at 1801 E. Allegheny Avenue in Philadelphia, and the PNC Bank branch at 1001 E. Erie Avenue. If convicted the defendant faces a maximum possible sentence of 40 years in prison, up to three years of supervised release, a possible fine, and a $200 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.
Two Men Charged with Distribution of HeroinRead the Press Release
Michael Hernandez, a/k/a “Jimmy,” 31, and Santo Rondo, 45, both citizens of the Dominican Republic, were charged today by indictment with distribution of 100 grams or more of heroin in Philadelphia, announced United States Attorney Zane David Memeger. Hernandez and Rondo are charged with distributing more than 100 grams of heroin. Hernandez is also charged with distribution of more than 100 grams of heroin, possession with intent to distribute more than 100 grams of heroin, possession of a firearm in furtherance of a drug trafficking felony and possession of a firearm by a convicted felon.
According to the indictment, on July 30, 2015, Michael Hernandez distributed approximately 157 grams of heroin in Philadelphia, Pennsylvania. It is further charged that on August 12, 2015, Hernandez and Santo Rondo distributed approximately 200 grams of heroin in Philadelphia. The indictment further charges that on August 13, 2015, Michael Hernandez possessed with intent to distribute approximately 600 grams of heroin in Philadelphia, and that he also possessed a loaded .40 caliber Smith & Wesson semi-automatic pistol in furtherance of a drug trafficking offense for which he could be charged federally, as well as for possession of a firearm by a convicted felon.
If convicted, Michael Hernandez faces a statutory maximum sentence of life in prison with a mandatory minimum term of 10 years, up to a lifetime of supervised release, a possible fine, and a $500 special assessment. Santo Rondo faces a statutory maximum sentence of 40 years in prison with a mandatory minimum term of five years, up to a lifetime of supervised release, a possible fine, and a $100 special assessment.
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
Nottingham Woman Sentenced to Three Years in Prison for Workers’ Compensation FraudRead the Press Release
Barbara Stanley, 62, of Nottingham, PA, was sentenced yesterday to three years in prison after conviction at trial of five counts of wire fraud, two counts of theft of government funds, one count of making false statements, and two counts of making false statements regarding workers' compensation benefits, announced United States Attorney Zane David Memeger.
At trial, in August 2015, the defendant had been convicted of scheming to defraud the Department of Labor out of workers’ compensation benefits between July 2006 and December 2010 by concealing the fact that she had recovered from her work-related injury. She was also convicted of stealing the approximately $164,000 in workers’ compensation benefits that she received during that time period, and making false statements about her medical condition to the Department of Labor. The defendant was further convicted of stealing approximately $35,000 in Office of Personnel Management (OPM) disability retirement benefits that she received at the same time that she was receiving workers’ compensation benefits, and falsely denying her receipt of the OPM disability retirement benefits, resulting in total losses to the government of approximately $199,000.
In addition to the prison sentence, the Honorable Paul S. Diamond also imposed three years of supervised release to follow incarceration. A hearing to determine the exact amount of restitution is scheduled to take place on December 1, 2015.
The case was investigated by the United States Postal Service Office of the Inspector General, the Department of Labor Office of the Inspector General, and the Office of Personnel Management Office of the Inspector General and was prosecuted by Assistant United States Attorneys MaryTeresa Soltis and Mary E. Crawley.
Former Doctor Charged with Conspiring to Defraud the FDA and Health Care FraudRead the Press Release
William J. O’Brien III, 50, of Philadelphia, Pennsylvania was charged in a superseding indictment, unsealed today, with conspiring to defraud the Food and Drug Administration (‘FDA”) and a separate conspiracy to commit health care fraud, announced United States Attorney Zane David Memeger. O’Brien, a former doctor of osteopathic medicine, was previously charged in July 2015 with operating a “pill mill” from his medical offices. The defendant awaits trial on those earlier charges.
Today’s indictment alleges that defendant O’Brien and others made misrepresentations to the FDA in order to obtain clearance for a so-called hyperbaric chamber that O’Brien marketed under the name Hyperox 101. A hyperbaric chamber is a sophisticated medical device in which patients breathe 100% pure oxygen for a prolonged period in a pressurized environment. To achieve a therapeutic effect, the chamber is pressurized to at least 1.4 atmospheres below sea level. The pressure creates a biochemical reaction that increases oxygen absorption into the blood. A hyperbaric chamber for treating patients must be constructed using pedigree steel and certified as a pressure vessel for human occupancy.
According to the indictment, Hyperox 101 as constructed did not meet these standards; rather, it was built by welding together pieces of a used propane tank. The indictment charges that defendant O’Brien knew of the deficiencies in Hyperox 101, but passed it off as a medical device by submitting false documentation to the FDA. The indictment alleges that, due to its substandard construction, Hyperox 101 did not provide patients with the therapeutic benefits associated with hyperbaric oxygen treatment, but instead posed potential risks to patients.
The indictment charges that defendant O’Brien used the unapproved device to defraud Medicare and other health benefit programs. From in or around March 2007 through in or around August 2011, O’Brien obtained millions of dollars based on fraudulent claims that he caused to be submitted to Medicare and IBC, among other health care benefit programs. O’Brien caused fraudulent claims to be submitted of approximately $15 million for medically unnecessary and potentially unsafe treatments. O’Brien obtained reimbursement from Medicare and other insurers of approximately at least $4.2 million based on the fraudulent claims.
If convicted, defendant O’Brien faces substantial prison terms and fines, and is subject to criminal forfeiture proceedings.
The case was investigated by the Federal Bureau of Investigation, FDA Office of Criminal Investigations, and the Department of Health and Human Services - Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.
Philadelphia Man Charged with Theft of Government FundsRead the Press Release
Rannie Henley, Sr., 78, 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 January 2011 until his fraud was discovered in February 2015. The defendant’s alleged actions resulted in a loss to the government of approximately $60,567.
If convicted, the defendant faces a substantial period of incarceration, up to three years of supervised release, restitution to the government of $60,567, 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 Amanda R. Reinitz.
Coastesville Woman Sentenced for Using Fake Retirment Accounts to Defraud ComcastRead the Press Release
PHILADELPHIA - Laura Wayne, 38, of Coatesville, Pennsylvania, was sentenced today to 36 months in prison for seven counts of wire fraud in connection with her embezzlement from Comcast employee retirement accounts. Wayne was an administrator of the employee retirement accounts at the Comcast Corporation when she created dummy retirement accounts and used those accounts to defraud Comcast of approximately $124,876.
From April of 2013 through January of 2014, Wayne used the names, dates of birth, and social security numbers of her family and relatives, to create what appeared to be 401(k) retirement accounts managed by Fidelity Company for the benefit of Comcast employees. She used her access to Comcast records to fraudulently fund each account for the maximum amount allowed by law and to obtain the matching funds from Comcast. She then created fake user names and passwords to transfer all of the money in the dummy Fidelity accounts to her personal bank accounts. When she was caught, she lied to both Comcast and an FBI agent and falsely claimed that she had paid the money back.
In addition to the prison term, U.S. District Court Judge Wendy Beetlestone ordered restitution in the amount of $124,876, three years of supervised release, restitution, and a $700 special assessment.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Laurie Magid.
Photographer Charged with Manufacturing Child PornographyRead the Press Release
PHILADELPHIA - Mark Wilkens, 57, of Philadelphia, PA, was charged by indictment, unsealed today, with manufacturing child pornography and possession of child pornography, United States Attorney Zane David Memeger. According to the indictment, Wilkens was working as a volunteer photographer for WXPN radio station when, on various dates from August 2010 through July 4th, he photographed prepubescent children at public events to capture and attempt to capture sexually explicit images. Wilkens was arrested this morning.
The indictment charges five counts of manufacturing and attempting to manufacture child pornography and one count of possession of child pornography which Wilkens allegedly downloaded from the Internet. If convicted of all charges, Wilkens faces a mandatory minimum sentence of 15 years with a possible advisory sentencing guideline range 210 to 262 months in prison.
This case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation, and 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 until proven guilty.
Montgomery County Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
PHILADELPHIA - Terence Wyatt, 58, of King of Prussia, PA, was sentenced yesterday to 10 years in prison for possession of child pornography. Wyatt pleaded guilty on April 22, 2015, to possessing in excess of 600 images and videos from the Internet that depicted children being sexually abused by adults as well as videos that depicted sadistic and masochistic images of prepubescent children.
This investigation began as part of an ongoing undercover Internet investigation of child exploitation violations relating to the use of peer to peer (“P2P”) file sharing networks being conducted by the Abington Township Police Department. The purpose of the investigation was to identify those individuals possessing and sharing child pornography using P2P networks. An Abington Police Department detective located a computer on a P2P Network sharing files of interest in child pornographic investigations. The user of this file-sharing program was Wyatt. The detective was able to download images and movies from Wyatt’s files that depicted children under the age of 18 years old engaged in sexually explicit conduct including sexual abuse by adults. Following execution of a search warrant, detectives arrested Wyatt on May 16, 2013.
The images were then reviewed by a special agent with Homeland Security Investigations (HSI) who verified that over 2005 images contained child pornography, approximately 95% of which were of prepubescent child pornography. When HSI agents reviewed Wyatt’s electronic media they determined that it contained over 150,000 images, the majority of which were child erotica and child pornography.
In addition to the 10 year prison term, U.S. District Court Judge Gene E.K. Pratter ordered 10 years of supervised release, $1,000 restitution, and a $100 special assessment.
The case was investigated by the Detective Division of the Abington Township Police Department, the Montgomery County District Attorney’s Office, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Jeffery W. Whitt.
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, 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.
Chester County Man Charged with Theft of Government FundsRead the Press Release
PHILADELPHIA - Wayne Tiffany, 57, of Downingtown, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant received Social Security benefits intended for his deceased paramour, after her death in April 2010 until his fraud was discovered in February 2015. The defendant’s alleged actions resulted in a loss to the government of approximately $39,028.
If convicted, the defendant faces a substantial period of incarceration, a 3‑year period of supervised release, restitution to the government of $39,028, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delaware Port Employee Admits to Drug ChargesRead the Press Release
PHILADELPHIA - Ronald Mays, 63, of Wilmington, Delaware, pleaded guilty today to three counts of attempted possession of cocaine with intent to distribute. Mays worked for the Port of Wilmington in Delaware at the time. U.S. District Court Judge Michael Baylson scheduled a sentencing hearing for February 11, 2016. Mays faces a possible advisory sentencing guideline range of 57 to 71 months in prison.
Mays was working at the Port of Wilmington in Delaware and had access to the ships that came into the port. In October of 2013, agents with Homeland Security Investigations were investigating possible drug smuggling involving ships that traveled to the port from countries in Central and South America. After a cooperating defendant contacted Mays and told Mays that a group of traffickers that they both knew would resume running drugs out of the port, Mays agreed to look in to security at the port. Mays and the cooperating defendant had several meetings about unloading the drugs from a ship and also conducted a dry run. On December 29, 2013, an HSI special agent placed sham cocaine in a container on a ship docked at the Port of Wilmington. On January 6, 2014, Mays told the cooperating defendant that he had the drugs and the two met for Mays to deliver the package. Similar transactions were completed in February and March of 2014, with Mays receiving a total of $24,000 to retrieve 12 kilos of what he believed was cocaine from ships docked at the port. After the March transaction, officers followed Mays and pulled him over on I-95.
In addition to the prison term, Mays faces possible fines, at least four years of supervised release, and a special assessment of $300.
The case was investigated by Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Sozi Pedro Tulante.
Woman Who Held Disabled Adults Captive in Subhuman Conditions Sentenced to Life Plus 80 Years in PrisonRead the Press Release
Linda Weston, 55, of Philadelphia, was sentenced today to life plus 80 years in prison. Weston pleaded guilty on Sept. 15, 2015, to all charges in a racketeering and hate crimes case that involved holding disabled adults captive in locked closets, basements and attics in Philadelphia’s Tacony section and in other states.
Weston pleaded guilty to racketeering conspiracy, kidnapping resulting in the death of the victim, forced human labor, involuntary servitude, multiple counts of murder in aid of racketeering, hate crime, violent crime in aid of racketeering, sex trafficking, kidnapping, theft of government funds, wire fraud, mail fraud, use of a firearm in furtherance of a violent crime and false statements. In addition to the prison term, U.S. District Court Judge Cynthia M. Rufe of the Eastern District of Pennsylvania ordered restitution of $273,463 to the Social Security Administration and a $19,600 special assessment.
From approximately 2001 through October 2011, Weston and her co-conspirators lured mentally handicapped individuals into locations rented by Weston, Jean McIntosh, Eddie Wright and others in Philadelphia; Killeen, Texas; Norfolk, Virginia; and West Palm Beach, Florida. The group targeted mentally challenged individuals who were estranged from their families. Once Weston convinced them to move in, she became their representative payee with social security and began to receive their disability benefits and in some instances, their state benefits. On one occasion, Weston and one of her co-defendants took the social security and identification documents from a victim by force and then used the funds for her own and family purposes.
Weston, Jean McIntosh, Eddie Wright and others confined their victims to locked rooms, basements, closets, attics and apartments. While confined, the captives were often isolated in the dark and sedated with drugs that Weston and other defendants placed in their food and drink. When the individuals tried to escape, stole food or otherwise protested their treatment, Weston and others punished them by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats and hammers or other objects, including the butt of a pistol. Some victims endured the abuse for years, until Oct. 15, 2011, when Philadelphia Police Department officers rescued them from the sub-basement of an apartment building in the Tacony section. The enterprise victimized six disabled adults and four children.
In April 2005, Weston and a co-defendant targeted victim D.S. They brought D.S. to a home at 2211 Glenview Avenue in Philadelphia. D.S. was kept in the basement with the other victims, fed a substandard diet and not allowed to use the bathroom. On June 26, 2005, D.S. was found dead in the basement. Weston ordered other members of the household to move D.S.’s body to a different location before calling law enforcement.
In 2008, victim M.L. was living with the family. M.L. was beaten when she tried to escape or when she begged for food and never received medical attention for any of her injuries. After Weston moved the enterprise to Virginia in 2008, Weston confined M.L. inside a kitchen cabinet and an attic for several months. M.L. subsequently died of bacterial meningitis and starvation in November 2008. Weston ordered other members of the household to move M.L.’s body to a bedroom and stage the scene before calling law enforcement. The next day the family left for Philadelphia.
Weston’s daughter, Jean McIntosh, and co-defendant Eddie Wright have already pleaded guilty. Co-defendants Gregory Thomas Sr. and Nicklaus Woodard are awaiting trial.
The case was investigated by the FBI, the Social Security Administration Office of Inspector General, Internal Revenue Service-Criminal Investigations, the Philadelphia Police Department and the Philadelphia District Attorney’s Office with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ West Palm Beach Field Office. The case is being prosecuted by Assistant U.S. Attorneys Richard P. Barrett and Faithe Moore Taylor of the Eastern District of Pennsylvania.
Woman Who Held Disabled Adults Captive in Subhuman Conditions Sentenced to Life Plus 80 YearsRead the Press Release
PHILADELPHIA - Linda Weston, 55, of Philadelphia, PA, was sentenced today to life plus 80 years in prison. Weston pleaded guilty on September 15, 2015 to all charges in a racketeering and hate crimes case that involved holding disabled adults captive in locked closets, basements, and attics in Philadelphia’s Tacony section and in other states. Weston pleaded guilty to racketeering conspiracy, kidnapping resulting in the death of the victim, forced human labor, involuntary servitude, multiple counts of murder in aid of racketeering, hate crime, violent crime in aid of racketeering, sex trafficking, kidnapping, theft of government funds, wire fraud, mail fraud, use of a firearm in furtherance of a violent crime, and false statements. In addition to the prison term, U.S. District Court Judge Cynthia M. Rufe ordered restitution to the Social Security Administration of $273,463, and a $19,600 special assessment.
From approximately 2001 through October 2011, Linda Weston and her co-conspirators lured mentally disabled individuals into locations rented by Weston, Jean McIntosh, Eddie Wright and others in Philadelphia, Pennsylvania, Killeen, Texas, Norfolk, Virginia, and West Palm Beach, Florida. Weston and the co-conspirators targeted mentally challenged individuals who were estranged from their families. Once Linda Weston convinced them to move in, she became their representative payee with Social Security and began to receive their disability benefits and in some instances, their state benefits. On one occasion, Weston and one of her co-defendants took the social security and identification documents from a victim by force and then used the funds for her own and Weston Family purposes.
Weston, Jean McIntosh, Eddie Wright and others confined their victims to locked rooms, basements, closets, attics, and apartments. While confined, the captives were often isolated, in the dark, and sedated with drugs placed in their food and drink by Weston and other defendants. When the individuals tried to escape, stole food, or otherwise protested their treatment, Weston and others punished them by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats, and hammers or other objects, including the butt of a pistol. Some victims endured the abuse for years, until October 15, 2011, when Philadelphia Police officers rescued them from the sub-basement of an apartment building in the city's Tacony section. The enterprise victimized six disabled adults and four children.
In April 2005, Weston and a co-defendant targeted victim Donna Spadea. They brought Donna Spadea to a home at 2211 Glenview Avenue, in Philadelphia. Donna Spadea was kept in the basement with the other victims, fed a substandard diet, and not allowed to use the bathroom. On June 26, 2005, Donna Spadea was found dead in the basement. Weston ordered other members of the household to move Donna Spadea's body to a different location before calling law enforcement.
In 2008, victim Maxine Lee was living with the family. Maxine Lee was beaten when she tried to escape or when she begged for food and never received medical attention for any of her injuries. After Weston moved the enterprise to Virginia in 2008, Weston confined Maxine Lee inside a kitchen cabinet and an attic for several months. Maxine Lee subsequently died of bacterial meningitis and starvation in November of 2008. Weston ordered other members of the household to move Maxine Lee's body to a bedroom and stage the scene before calling law enforcement. The next day the family left for Philadelphia.
Weston’s daughter, Jean McIntosh, and co-defendant Eddie Wright have already pleaded guilty. Co-defendants Gregory Thomas, Sr., and Nicklaus Woodard are awaiting trial.
The case was investigated by the FBI, the Social Security Administration Office of Inspector General, IRS Criminal Investigations, the Philadelphia Police Department, and the Philadelphia District Attorney’s Office with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ West Palm Beach Field Office. It is being prosecuted by Assistant United States Attorneys Richard P. Barrett and Faithe Moore Taylor.
Philadelphia Man Arraigned on Robbery and Carjacking ChargesRead the Press Release
PHILADELPHIA - Cory D. Foster, 27, of Philadelphia, Pennsylvania was arraigned today on an Indictment, charging him with three counts of robbery which interferes with interstate commerce, one count of carjacking, and four counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney Zane David Memeger and Montgomery County District Attorney Risa Vetri Ferman.
The indictment charges that on November 18, 2014, Foster and an accomplice robbed a service station and convenience store in Trevose, Bucks County, Pennsylvania at gunpoint, stealing cash and merchandise worth about $1,000 and cash and a wallet from an employee, before escaping in a getaway car operated by an unknown driver; on December 2, 2014, Foster and an accomplice robbed a service station and convenience store in Plymouth Meeting, Montgomery County, Pennsylvania at gunpoint, stealing about $700 cash and about $2,400 worth of cigarettes and case from an elderly employee, before escaping in a getaway car operated by an unknown driver; and on December 7, 2014, Foster and an accomplice robbed a gas station and convenience store in Phoenixville, Chester County, Pennsylvania at gunpoint, stealing about $984 Pennsylvania Lottery cash, about $790 cash, and more than $4,000 worth of cigarettes and cigars. Foster then smashed a victim employee in the face, breaking his orbital eye socket, before stealing the customer’s car at gun point. Foster and his accomplice then fled the scene, one robber in the customer’s car and the second in a getaway car. The indictment alleges that in early February 2015, the handgun used in these crimes of violence was seized by law enforcement from Foster in the state of Delaware and that on the same date the stolen car was recovered from another person and Foster in Delaware.
If convicted the defendant faces a maximum possible sentence of life imprisonment, including a total mandatory minimum prison sentence of 82 years’ imprisonment consecutive to any other sentence imposed.
The case was investigated by the Federal Bureau of Investigation, Plymouth Township Police Department, Bensalem Township Police Department, Schuylkill Township Police Department, the Delaware State Police, and the Montgomery County District Attorney’s Office. The case will be prosecuted by Special Assistant United States Attorney and Montgomery County Assistant District Attorney Gabriel C. Magee.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delaware County Man Charged with Running Second Tax Fraud SchemeRead the Press Release
PHILADELPHIA - Mohamed Mansaray, 39, of Springfield, Pennsylvania, was charged by indictment, unsealed today, in an identity theft and tax fraud scheme, announced United States Attorney Zane David Memeger. The indictment includes 10 counts of wire fraud, nine counts of aggravated identity theft, and 10 counts of aiding or assisting in preparation or filing of false income tax returns. Mansaray was arrested this morning.
According to the indictment, defendant Mansaray defrauded the Internal Revenue Service by preparing and filing fictitious federal income tax returns that used the names and Social Security numbers of children as false dependents. The indictment alleges that Mansaray charged clients $800 to $1,000 to falsely include a dependent on their income tax return. By falsely adding dependents to the returns, Mansaray wrongfully claimed for clients a tax exemption for each false dependent, the child tax credit, the child and dependent care credit, and the earned income tax credit.
On July 2, 2014, Mansaray pleaded guilty to an information that charged him with conspiracy and 13 counts of aiding or assisting in preparation or filing of false income tax returns in a similar scheme. Mansaray admitted falsifying federal income tax returns for clients by fraudulently adding dependents to returns for the tax years 2008 through 2012. He is awaiting sentencing for those charges.
If convicted, the defendant faces a possible advisory sentencing guideline range of 51 to 57 months in prison for the new charges, including a mandatory minimum terms of 24 months in prison for aggravated identity theft, possible fines, up to three years of supervised release, and a $3,000 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.
An indictment is an accusation. A defendant is presume innocent unless and until proven guilty.
Chaka Fattah Jr. Convicted of Fraud and Tax ChargesRead the Press Release
A federal jury today convicted Chaka Fattah Jr., 32, of Philadelphia, of 22 of 23 counts in connection with a scheme to defraud banks, the Internal Revenue Service (IRS) and the Philadelphia School District of hundreds of thousands of dollars. Senior U.S. District Judge Harvey Bartle III of the Eastern District of Pennsylvania scheduled a sentencing hearing for Feb. 3, 2015. The defendant faces a substantial term of imprisonment, restitution to the IRS, fines, a special assessment and supervised release.
Between 2005 and 2012, Fattah Jr.: made false statements to banks to obtain loans; made false statements to banks and the Small Business Administration (SBA) to settle loans for less than what was owed; filed false federal income tax returns; failed to pay federal taxes; and stole from the Philadelphia School District, which had received federal funds for its operations.
The evidence at trial showed that Fattah Jr. obtained numerous business lines of credit through false and fraudulent statements to local banks and used the funds primarily for personal expenses – including car payments, gambling debts, restaurant and club expenses, utilities, clothing, electronics, retail purchases, charitable donations, jewelry, legal fees and personal credit card expenses – rather than business expenses, as the loan terms required. These false statements involved fictitious earnings information that Fattah Jr. supplied for entrepreneurial companies which he claimed that he operated, including 259 Strategies LLC (259 Strategies) and Chaka Fattah Jr. & Associates. Fattah Jr. claimed that 259 Strategies provided educational consulting, diversity consulting and audit services, technical assistance, community relations and organizational development services to a select group of clients. He claimed that Chaka Fattah Jr. & Associates performed research and consulting concerning the development of computer centers.
In 2011, Fattah Jr. received a loan from United Bank for $50,000 intended for “working capital to support business operations.” Instead, he used the funds to make car payments, to pay down more than $15,000 in personal credit card debt and to pay more than $33,000 in gambling debts at area casinos. The charges total approximately $206,000 in bank loans received through false misrepresentations or fraud.
Fattah Jr. defaulted on several lines of credit and provided false information to two banks, to the SBA, which had insured the bank loans, and to an SBA investigator in order to attempt to settle the debts for less than what was owed. Fattah Jr. falsely claimed that 259 Strategies was out of business at the time he was attempting to settle his debts in 2010, and that he was earning only $2,500 per month. In fact, during 2010, 259 Strategies was intact and, through this company, Fattah Jr. was earning between $6,250 and approximately $37,500 per month.
Fattah Jr. also stole funds supplied by the federal government to the Philadelphia School District, while acting as the chief operating officer of a Philadelphia company that provided educational services to “at risk” and other students through contracts with the school district. Fattah Jr. provided false expense information and inflated salary figures for teachers and administrative staff on budgets submitted to the school district, which made payments consistent with the budgets provided and concealed the theft of the funds from the school district.
For tax years 2005, 2006 and 2008, Fattah Jr. filed false federal income tax returns and failed to pay federal income tax on a timely basis of approximately $51,141 on more than $150,000 in reported income during 2010.
The case was investigated by the FBI, IRS-Criminal Investigation and the U.S. Department of Education, with the cooperation of the Philadelphia School District’s Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Paul L. Gray and Trial Attorney Eric Gibson of the Criminal Division’s Public Integrity Section.
Chaka Fattah Jr. Convicted of Fraud and Tax ChargesRead the Press Release
PHILADELPHIA – A federal jury today convicted Chaka Fattah, Jr., 32, of Philadelphia, of 22 of 23 counts in connection with a scheme to defraud banks, the Internal Revenue Service, and the Philadelphia School District of hundreds of thousands of dollars. U.S. District Court Judge Harvey Bartle III scheduled a sentencing hearing for February 2, 2015. The defendant faces a substantial term of imprisonment, restitution to the IRS, fines, a special assessment, and supervised release.
Between 2005 and 2012, Fattah, Jr. made false statements to banks to obtain loans; made false statements to banks and the Small Business Administration to settle loans for less than what was owed; filed false federal income tax returns; failed to pay federal taxes; and stole from the Philadelphia School District, which had received federal funds for its operations.
Fattah, Jr., obtained numerous business lines of credit through false and fraudulent statements to local banks and used the funds primarily for personal expenses - including car payments, gambling debts, restaurant and club expenses, utilities, clothing, electronics, retail purchases, charitable donations, jewelry, legal fees, and personal credit card expenses - rather than business expenses, as the loan terms required. These false statements involved fictitious earnings information that Fattah, Jr., supplied for entrepreneurial companies which Fattah claimed he operated, including 259 Strategies, LLC (“259 Strategies”) and Chaka Fattah, Jr. & Associates. Fattah, Jr., claimed that 259 Strategies provided educational consulting, diversity consulting & audit services, technical assistance, and community relations, and organizational development services to a select group of clients. He claimed that Chaka Fattah, Jr. & Associates performed research and consulting concerning the development of computer centers.
In 2011, Fattah, Jr., received a loan from United Bank for $50,000 intended for "working capital to support business operations." Instead, he used the funds to make car payments, to pay down over $15,000 in personal credit card debt, and to pay in excess of $33,000 in gambling debts at area casinos. The charges total approximately $206,000 in bank loans received through false misrepresentations or fraud.
Fattah, Jr., defaulted on several lines of credit and provided false information to two banks, to the United States Small Business Administration, which had insured the bank loans, and to a Small Business Administration investigator, to attempt to settle the debts for less than what was owed. Fattah, Jr., falsely claimed that 259 Strategies was out of business at the time he was attempting to settle his debts in 2010, and that he was earning only $2,500 per month. In fact, during 2010, Fattah, Jr.’s 259 Strategies was intact and, through this company, he was earning between $6,250 per month and approximately $37,500 per month.
Fattah, Jr., also stole funds supplied by the federal government to the Philadelphia School District, while acting as Chief Operating Officer of a Philadelphia company which provided educational services to "at risk" and other students through contracts with the school district. Fattah, Jr. provided false expense information and inflated salary figures for teachers and administrative staff on budgets submitted to the school district, which made payments consistent with the budgets provided and concealed the theft of the funds from the school district.
For tax years 2005, 2006, and 2008 Fattah, Jr., filed false federal income tax returns and he failed to timely pay federal income tax of approximately $51,141 on reported income in excess of $150,000 during 2010.
The case was investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Education, with the cooperation of the Philadelphia School District’s Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania and Trial Attorney Eric Gibson of the Criminal Division’s Public Integrity Section.
Philadelphia Man Charged in Fraud Involving Dead Sister's AnnuityRead the Press Release
PHILADELPHIA – Charles Spencer, 81, of Philadelphia, PA, was charged today by information with mail fraud in connection with the theft of approximately $230,400 from an annuity, announced United States Attorney Zane David Memeger.
According to the information, Spencer became the guardian of his sister, V.R., and her affairs when V.R. became infirmed. V.R. was receiving monthly payments of $1,600 from an annuity. She died on January 22, 2001 but Spencer, it is alleged, did not inform Lincoln National Insurance Company (LNIC), which disbursed the annuity payments. LNIC continued to send monthly annuity checks payable to V.R. which defendant Spencer allegedly received, countersigned, and deposited into his bank account. It is alleged that Spencer received approximately 144 annuity checks, totaling approximately $230,400.
If convicted the defendant faces a statutory maximum sentence of 20 years in prison, possible restitution, a fine of up to $250,000, up to three years of supervised release, and a $100 special assessment.
The case was investigated by United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged in Two Bank RobberiesRead the Press Release
PHILADELPHIA - Harry Dallas, 54, 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 September 16, 2015, Dallas robbed the Citizens Bank at 7327 Frankford Avenue and, on September 20, 2015, robbed the TD Bank at 6635 Frankford Avenue.
If convicted of all charges, Dallas faces a statutory maximum sentence of 40 years in prison.
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.
Company Operator Pleads Guilty to Falsifying Records to United States Department of TransportationRead the Press Release
PHILADELPHIA - Frank Menichini, 73, of Newtown Square, Pennsylvania, pleaded guilty today to a criminal information charging him with one count of falsifying records with the intent to obstruct an investigation by the United States Department of Transportation (“DOT”). U.S. District Court Judge Gerald J. Pappert scheduled a sentencing hearing for February 3, 2016. The defendant faces a maximum sentence of 20 years in prison, up to three years of supervised release, a $250,000 fine and a $100 special assessment.
During his guilty plea, the defendant admitted that he controlled DVG Packaging, Inc. (“DVG”), which marketed and sold plastic bags that the defendant claimed had been tested and certified to meet a pressure test required by the DOT for transporting certain hazardous substances. The defendant falsified a laboratory test report to make it appear as though the bags were certified, even though he knew that they were not. When inspectors from the Pipeline and Hazardous Materials Safety Administration of the DOT requested papers related to the purported certification of the bags, the defendant provided them with the falsified test report.
The case was investigated by the United States Department of Transportation Office of Inspector General, and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
United States Sues Railroad Worker for Submitting False Compensation ClaimsRead the Press Release
PHILADELPHIA - The United States filed a civil fraud lawsuit today against Wilbert D. McKinzie, an Amtrak employee, of Chester, Pennsylvania, alleging that he submitted claims for sickness compensation to which he was not entitled, announced United States Attorney Zane David Memeger. According to the complaint, McKinzie was working another job as a home health aide while submitting claims for sickness compensation from the United States Railroad Retirement Board. McKinzie collected $9,517.60 that he was not eligible to receive.
The United States filed the lawsuit under the False Claims Act. Under the False Claims Act, a person who causes false or fraudulent claims to be submitted to the government for payment is liable for three times the government’s damages, plus civil penalties for each false claim. The allegations against McKinzie are allegations only and not findings of liability. To resolve the matter, McKinzie has agreed to enter into a consent judgment.
The allegations arose from an investigation led by the United States Railroad Retirement Board Office of Inspector General. The case was handled by Assistant United States Attorneys Richard M. Bernstein and Michael S. Macko.
Pennsylvania Man Pleads Guilty to Running Sex Trafficking Operation to Compel Multiple Women and One Minor into Prostitution in Pennsylvania, Maryland and ElsewhereRead the Press Release
Corderro Cody, 27, of Allentown, Pennsylvania, pleaded guilty today to charges arising from his operation of a sex trafficking enterprise that compelled multiple victims to prostitute for the defendant’s profit. Cody pleaded guilty to conspiracy to commit sex trafficking by force, fraud or coercion, conspiracy to transport individuals both intrastate and interstate for the purpose of prostitution, one count of sex trafficking of a minor and 12 counts of sex trafficking by force, fraud and coercion.
According to documents filed in the case and evidence presented in court during the plea hearing, from 2009 until the time of his arrest in 2014, the defendant, conspiring at various times with others, used false promises to recruit his victims into relationships with him, then used psychological manipulation, addictive drugs, sexual assaults and brutal violence to control and coerce them for purposes of prostituting them for his profit. Cody also denied a victim access to her child as another form of coercion and control.
As set forth in documents filed in the case, Cody recruited multiple women to prostitution, referring to his prostitution enterprise as the “program,” and advertised the women for commercial sex acts on Backpage.com. Cody transported them both within Pensnylvania and to other states to prostitute, and he controlled and retained virtually all of the prostitution proceeds. Cody also used physical force and violent beatings when the women did not adhere to the “program,” in order to maintain the women for continued commercial sexual acts at his direction.
“Human trafficking is a crime that deprives vulnerable individuals of their freedom and dignity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “This defendant engaged in a concerted scheme of cruelty and brutality to compel and coerce his victims to sell their bodies for his profit. This disregard for their humanity is an affront to our values as a nation, and the Civil Rights Division is deeply committed to bringing traffickers to justice to vindicate the rights and dignity of survivors of human trafficking in all its forms.”
“A dozen victims of this sex trafficker have the opportunity to rebuild their lives and countless other potential victims will no longer fall prey to his abuse,” said Special Agent in Charge John Kelleghan of U.S Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) in Philadelphia. “This case is a result of the excellent relationship between HSI special agents and local police officers who continuously work together to root out this type of violent activity to keep communities safe."
U.S. District Court Judge Edward G. Smith of the Eastern District of Pennsylvania scheduled a sentencing hearing for Jan. 29, 2016. Cody faces a mandatory minimum prison term of 15 years and a maximum of life, a fine of up to $3.75 million, a mandatory minimum of five years of supervised release and up to a lifetime of supervised release and a $1,500 special assessment.
The case was investigated by ICE-HSI and the Allentown Police Department. The case is being prosecuted by Assistant U.S. Attorney Sherri A. Stephan of the Eastern District of Pennsylvania and Trial Attorney Anita Channapati of the Civil Rights Division’s Human Trafficking Prosecution Unit.
New Jersey Woman and Her Parents Convicted in Multi-Million Dollar Mortgage FraudRead the Press Release
PHILADELPHIA – A federal jury, yesterday, returned guilty verdicts against a Cherry Hill, NJ woman and her parents for a mortgage fraud scheme that stripped the equity from the homes of desperate homeowners facing foreclosure. Silver Buckman, 37, of Cherry Hill, NJ, her parents, Vincent Foxworth, 70, and Cynthia Foxworth, 64, of Turnersville, NJ, were found guilty of bank fraud, wire fraud, and conspiracy to commit bank fraud and wire fraud. Their scheme caused losses to mortgage lenders of approximately $3.8 million. U.S. District Court Judge R. Barclay Surrick scheduled a sentencing hearing for January 29, 2016.
The defendants offered to help financially-vulnerable individuals save their homes from foreclosure or obtain money from the equity in their homes but, instead, defrauded the homeowners and mortgage lenders. Buckman owned and operated Fresh Start Financial Services (“FSFS”), in Mount Laurel, NJ and was an employee of American Home Lending as well as a mortgage broker for American One Mortgage (“AOM”). Her father is an experienced Realtor.
Between October 2006 and November 2009, Buckman and her co-defendants allegedly targeted financially vulnerable homeowners and represented to them that they could improve their credit, save their homes from foreclosure, or provide them with money through Buckman’s lease buyback program. The homeowners were told that “investors” would be used to temporarily refinance their homes and that they could repurchase the homes in one year, or once they regained their financial footing. The defendants also allegedly induced the homeowners into signing documents related to the sale and lease of their homes by their representations that the homeowners would remain on the title to their homes, that the equity from their homes would be placed into an individual escrow account in their names, and that new mortgages would be paid from the escrow accounts to establish their timely payment histories.
In order to carry out the scheme, Buckman recruited Vincent Foxworth and Cynthia Foxworth and others to be straw borrowers. Buckman submitted false financial and employment information about the straw borrowers to mortgage lenders. Once lenders agreed to fund the mortgage loans, Buckman prevented the homeowners from receiving the settlement proceeds and did not put money into escrow accounts for the homeowners. Instead, the defendants distributed the proceeds amongst themselves. Buckman used only a fraction of the homeowners’ monies toward the payment of the mortgages obtained by the straw borrowers for the homeowners’ homes and thereby caused the loans to go into default.
The defendants each face a potential advisory sentencing guideline range of approximately 87 to 108 months in prison plus restitution.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service and IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney Anita Eve.
Allentown Man Pleads Guilty in Sex Trafficking CaseRead the Press Release
PHILADELPHIA - Corderro Cody, 28, of Allentown, PA, pleaded guilty today to charges related to his running of a sex trafficking operation. Cody pleaded guilty to conspiracy to commit sex trafficking by force, fraud or coercion, 12 counts of sex trafficking, conspiracy to transport individuals across state lines for the purpose of prostitution, and one count of sex trafficking of a minor.
Cody recruited women to work as prostitutes, referred to his prostitution business as the “program,” and advertised the women on Backpage.com. The women were sometimes driven to other states and forced to perform sexual acts. Cody recovered and kept most, if not all, of the money generated by the sexual acts, and used physical force in the form of beatings when the women did not adhere to the “program,” and to maintain the women performing commercial sexual acts.
United States District Court Judge Edward G. Smith scheduled a sentencing hearing for January 29, 2016. Cody faces a mandatory minimum prison term of 15 years up to a maximum of life, a fine of up to $3.75 million, a mandatory minimum of five years of supervised release up to lifetime supervised release, and a $1,500 special assessment.
The case was investigated by Homeland Security Investigations and the Allentown Police Department. It is being prosecuted by Assistant United States Attorney Sherri A. Stephan, and Trial Attorney Anita Channapati of the Civil Rights Division of the Department of Justice.
Philadelphia Man Charged with Setting Fire That Damaged Apartment Buildings and Construction SiteRead the Press Release
PHILADELPHIA – Stephen Gregory Pettiway, 50, of Philadelphia, PA, was charged today by indictment with setting a fire on September 15, 2015, that damaged three properties in Philadelphia, announced United States Attorney Zane David Memeger. According to the indictment, Pettiway started a fire that caused damage to equipment and buildings that included Chancellor Apartments at 206 South 13th Street, a construction site at 208 South 13th Street owned by Maze Hospitality Group, and Gramercy Building at 210 South 13th Street. He is charged with one count of malicious damage by means of fire of a building used in interstate commerce.
If convicted the defendant faces a mandatory-minimum term of 60 months in prison with a possible guideline sentencing range of up to 71 months in prison without the possibility of parole, a fine of up to $250,000, a $100 special assessment, and up to three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Fire Department. It is being prosecuted by Assistant United States Attorneys José R. Arteaga and Thomas M. Zaleski.
Norristown Man Charged with Bank RobberyRead the Press Release
PHILADELPHIA – Shawn LaSalle Harris, 37, of Norristown, PA, was charged today by Indictment with armed bank robbery and a weapons offense, announced United States Attorney Zane David Memeger. According to the indictment, on June 3, 2015, Harris held up the Bank of America branch at 420 Plymouth Road, in Plymouth Meeting, PA. He allegedly brandished and discharged a .380 caliber Ruger handgun.
If convicted, Harris faces a mandatory minimum term of 10 years in prison with a statutory maximum sentence of life, up to five years of supervised release, a $200 special assessment and a possible fine.
The case was investigated by the FBI and the Plymouth Township Police Department. It is being prosecuted by Assistant United States Attorney José R. Arteaga.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Allentown Company Agrees to Pay Fines and Penalties Totaling $1.3 Million for Violating Procedures Related to Chemical ShipmentsRead the Press Release
PHILADELPHIA – A chemical company headquartered in Allentown, PA, has agreed to plead guilty to a six count information charging it with shipping monomethylamine (MMA) to customers in Mexico for whom required identification had not been obtained and failing to report the disappearance of shipments of MMA. Taminco US, Inc. (“Taminco”), has also reached a settlement with the United States of civil claims concerning the same conduct and has agreed to pay a civil fine of $475,000. Taminco has agreed to a criminal penalty of $860,374, which comprises a criminal fine of $650,000 and forfeiture of $210,374. The agreements must be accepted and approved by United States District Court Judge Edward G. Smith. The case was announced today by First Assistant United States Attorney Louis D. Lappen.
Taminco manufactured, distributed, sold and exported MMA. MMA is classified as a “List I” chemical and regulated by the Drug Enforcement Administration (DEA) because it is a necessary chemical for one method of manufacturing methamphetamine, a controlled substance. Due to its List I chemical classification, a manufacturer is required to confirm the identity and verify the legitimacy of any customer to whom it ships the product. The manufacturer is also required to immediately report to the DEA any unusual or excessive loss or disappearance of the product. Taminco manufactured MMA at its plant in Pace, Florida, and had the MMA packaged in 55 gallon drums before shipping it to the border at Laredo, Texas.
According to court documents filed today, between February and June of 2010, Taminco shipped six loads of MMA to two different customers in Mexico for whom Taminco had not obtained required identification. Each load was approximately 16,800 kilograms of MMA. According to court documents, some shipments of MMA disappeared and Taminco failed to promptly report the disappearances to the DEA as required by statute.
DEA discovered evidence of some barrels from missing shipments in August 2011, and discovered some of the missing barrels of MMA in December 2011 and April 2012. In August 2011, DEA agents located wrappers from the June 2010 shipment of MMA drums in an abandoned residence in San Luis, Arizona. In December of 2011, Customs and Border Protection officers intercepted five Taminco drums of MMA when an individual (not associated with Taminco) attempted to transport them by truck into Mexico at Nogales, Arizona. In April of 2012, DEA agents found and seized six additional Taminco drums of MMA at a self-storage unit in Nogales, Arizona. The drums that DEA seized were from March 2010 shipments to the unverified Mexican customer.
Taminco’s civil settlement with the United States resolves civil claims arising from 19 shipments of MMA in early and mid-2010 that were authorized by Taminco without proper verification of the existence and validity of the foreign business entities ordering the List I chemicals. According to the civil claims, Taminco also could not verify that certain of the MMA shipments reached their intended recipient in Mexico, and Taminco failed to report to DEA that those shipments were missing or that delivery could not be verified.
As part of the civil settlement, Taminco has entered into a Memorandum of Agreement (MOA) with the DEA under which Taminco has agreed to comply with certain heightened compliance requirements regarding the manufacture, sale and shipment of listed chemicals. DEA has agreed to forego administrative action against Taminco’s DEA registrations, subject to Taminco’s compliance with the terms of the MOA.
“The defendant in this case violated the law when it chose to ship DEA regulated precursor chemicals, which it knew could be used to manufacture methamphetamine, without following procedures designed to ensure that these chemicals do not end up in the hands of drug dealers,” said Lappen. “As part of our continuing responsibility to help protect the public from dangerous drugs, this office will continue to use both criminal and civil penalties to ensure that companies properly handle List I chemicals.”
“A primary function of the DEA’s Office of Diversion Control is to prevent, detect, and investigate the diversion of listed chemicals such as MMA from chemical supply companies. This chemical is often used by drug-trafficking organizations to manufacture methamphetamine, which is a highly addictive drug,” said Special Agent-in-Charge Gary Tuggle, DEA Philadelphia. “DEA Diversion Investigators play a pivotal role in the agency’s mission of combating the diversion of listed chemicals for illegal purposes. The DEA will remain aggressive in pursuing criminal violations of this nature.”
“DEA in Arizona and Philadelphia worked closely with other members of law enforcement in an effort to determine what became of these chemicals which have the potential to become harmful drugs,” said Special Agent-in-Charge Doug Coleman, DEA Arizona. “DEA is responsible for protecting our citizens from the dangers of drugs and will pursue all responsible parties who play a role in the manufacture and distribution of illicit drugs and their precursors.”
The case was investigated by the Yuma, AZ Resident Office and Scranton Resident Office of the Drug Enforcement Administration with assistance from Customs and Border Protection. It is being prosecuted by Assistant United States Attorneys Albert S. Glenn and Charlene Keller Fullmer.
Philadelphia Woman Charged with Receiving Benefits Intended for Her Dead MotherRead the Press Release
PHILADELPHIA - Beverly Smyre, 72, 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, Smyre’s mother died in November 1989 but Smyre received the Social Security benefits intended for her mother until August 2015 when the fraud was discovered. The defendant’s alleged actions resulted in a loss to the government of approximately $111,273.10.
If convicted, Smyre faces a substantial period of incarceration, a three‑year period of supervised release, restitution to the government of $111,273.10, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ambulance Driver Admits Role in Health Care Fraud ConspiracyRead the Press Release
PHILADELPHIA – Thael Kuran, 23, of Philadelphia, PA, pleaded guilty today to conspiracy to commit health care fraud and making false statements in a health care matter. The charges stem from a fraud scheme involving Brotherly Love Ambulance, Inc. U.S. District Court Judge Gerald J. Pappert scheduled a sentencing hearing for January 19, 2016. Kuran faces a maximum possible sentence of 15 years in prison, three years of supervised release, a $500,000 fine, and a $200 special assessment.
In July 2010, the defendant’s mother, Feda Kuran, who was charged and convicted separately, began operating Brotherly Love Ambulance a co-schemer. From approximately July 2010 through approximately October 2011, Thael Kuran transported patients for Brotherly Love even though those patients could walk and could have been transported safely by means other than ambulance and were, therefore, not eligible for ambulance service under Medicare and Medicaid requirements. Thael Kuran also transported patients in his personal vehicle and in a minivan owned by Brotherly Love, both of which lacked the lifesaving equipment found in an ambulance. Even when he transported patients in his personal vehicle, Kuran completed ambulance “run sheets” for the trips and certified those sheets with his signature. In order to make the transports appear as though they had been done via ambulance, those run sheets misstated the medical condition of the patients and the care provided to the patients during the transports. After Brotherly Love ceased operations, Thael Kuran completed run sheets at a successor company, VIP Ambulance, that were false in that they were inconsistent with one another and contained no legitimate signature by an Emergency Medical Technician (EMT).
As a result of the overall scheme at Brotherly Love, the Medicare program was billed for more than $4.9 million and paid more than $2 million in inappropriate claims.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary E. Crawley and Paul W. Kaufman.
Store Owner Sentenced for Defrauding Government Food Assistance ProgramRead the Press Release
PHILADELPHIA – Farhan Ali Abu Siam, 42, of Philadelphia, was sentenced today to 30 months in prison for defrauding the United States Department of Agriculture (USDA)’s Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. The defendant pleaded guilty to conspiring to traffic in SNAP benefits and commit wire fraud; wire fraud; and aiding and abetting trafficking in SNAP benefits.
The defendant owned and operated S&S Farmer’s Market, a retail grocery store, now defunct, that was located at 2722 Germantown Avenue in Philadelphia. At his guilty plea hearing, the defendant admitted that he knowingly trafficked in SNAP benefits, and directed his employees to traffic in SNAP benefits, by purchasing those benefits from customers of S&S, which is illegal. The defendant admitted that within a 15-month period, he was responsible for a program loss of $1,390,482.
In addition to the prison term, Senior U.S. District Court Judge John R. Padova ordered restitution of $1,390,482 to USDA, three years of supervised release to follow imprisonment, and directed that the defendant not own or operate any company that accepts SNAP benefits while on supervised release.
The case was investigated by the U.S. Department of Agriculture Office of Inspector General and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Mary E. Crawley.
Philadelphia Woman Sentenced to 25 Years for Exploiting Six Year Old and InfantRead the Press Release
PHILADELPHIA - Christine Yoder, 33, of Philadelphia, PA, was sentenced today to 300 months in prison for charges of child exploitation that involved the sexual abuse of a 6-year old child and a 16-month old infant. Yoder pleaded guilty on March 9, 2015, to two counts of employing a child to produce images of the child engaged in sexually explicit conduct and two counts of distributing material involving the sexual exploitation of children.
In May of 2014, Yoder sent a photograph to an undercover FBI agent of a 6-year-old (“Minor #1”), which depicted that child engaging in sexually explicit conduct. Thereafter, Yoder offered to fly Minor #1 to Detroit for sexual activity. Yoder also produced pornographic photographs of a 16-month old.
In addition to the prison term, U.S. District Court Chief Judge Petrese B. Tucker ordered 10 years of supervised release, and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by First Assistant United States Attorney Louis D. Lappen.
Delaware County Woman Charged with Defrauding GovernmentRead the Press Release
Denise Walls Ama, 64, of Haverford, Pennsylvania, was charged today by information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant’s mother died in May 2006 yet she continued to receive retirement benefits intended for her mother until January 2015. The defendant’s alleged actions resulted in a loss to the government of approximately $108,306.
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, up to three‑years of supervised release, restitution to the government of $108,306, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Investment Advisor Charged with Bilking Clients Out of Nearly $2 MillionRead the Press Release
PHILADELPHIA - Michael Donnelly, 47, of Lecanto, Florida was charged today by information in an investment scheme that bilked his friends and clients of nearly $2 million, announced United States Attorney Zane David Memeger. Donnelly is charged with one count of wire fraud and with one count of securities fraud.
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. According to the information, 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. It is alleged that instead of investing his clients’ money, Donnelly appropriated the investment funds for his own use.
The information further alleges that 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 allegedly persuaded another investor to partially liquidate an annuity under the guise that there was an opportunity to buy out another investor. He then allegedly intended to use those funds to pay the investing couple rather than buying out an investment held by another client.
In a parallel action, the Securities and Exchange Commission today announced a civil settlement with Donnelly relating to the same conduct.
If convicted the defendant faces a maximum possible sentence of 40 years in prison, not more than three years of supervised release, a $5.25 million fine and a $200 special assessment.
The case was investigated by the FBI with assistance from the Securities and Exchange Commission Division of Enforcement. It is being prosecuted by Assistant U.S. Attorney Linwood C. Wright, Jr.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Corporation Pleads Guilty to Conspiring to Smuggle Goods into the United StatesRead the Press Release
PHILADELPHIA – ECL Solutions Limited, Inc., doing business as Ban-Air Storage Systems, a wholly-owned subsidiary of a privately-held British company (“ECL”), pleaded guilty today to conspiring to smuggle goods into the United States, in connection with a scheme to conceal the country of origin of its merchandise. U.S District Court Judge C. Darnell Jones II immediately ordered the company to pay a forfeiture money judgment in the amount of $1,066,132.10.
ECL sold, among other things, large scale steel racking systems. According to court documents, between November 2011 and September 2013, ECL intentionally failed to accurately mark its merchandise “Made in China,” in an effort to deceive the end-users, including the United States military, as to where these products were manufactured. In order to maximize its profit and gain a commercial advantage, ECL deceived the United States Customs and Border Protection (CBP), the United States Military, and private customers when it failed to mark its racking components “Made in China.” The conspiracy enabled ECL to pass off its shelving product as compliant with the Buy American Act (BAA) and Trade Agreements Act (TAA) when, in fact, it was using prohibited Chinese steel.
The case was investigated by Homeland Security Investigations (HSI) and the Defense Criminal Investigative Service (DCIS). It was prosecuted by Special Assistant United States Attorney Josh A. Davison.
Two Charged with Hobbs Act RobberyRead the Press Release
David Murray, 32, and Terrell Lang 23, of Philadelphia, Pennsylvania were charged today by indictment for their roles in the commission of two Hobbs Act robberies of pharmacies in Montgomery County, Pennsylvania. The charges arise from the defendants’ June 28, 2015 robbery of over $7,000 from the CVS Pharmacy, located at 2622 Jenkintown Avenue in Glenside, Pennsylvania, and David Murray’s September 15, 2015 robbery of over $4,000 from the Walgreens Pharmacy located at 1 Yorktown Plaza in Elkins Park, Pennsylvania.
If convicted the defendant David Murray faces a maximum possible sentence of 40 years’ imprisonment and co-defendant, Terrell Lang, faces a maximum possible sentence of 20 years’ imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lancaster County Woman Gets 12 Years for Exploiting Her Own ChildRead the Press Release
PHILADELPHIA - Lori Hilbourn, 30, of East Lampeter Township, PA, was sentenced today to 12 years in prison for manufacturing child pornography and distribution and possession of pornographic images that depicted her own child. In addition to the prison term, U.S. District Court Judge Jeffrey L. Schmehl ordered 15 years of supervised release and a $400 special assessment.
Hilbourn pleaded guilty, on February 27, 2015, to two counts of manufacturing and one count each of distributing and possessing child pornography. Hilbourn admitted that, beginning in December 2013 and continuing for several months, she took sexually explicit photographs of her child at the request of her then-boyfriend, George Wakeley, Jr. Using her cell phone, Hilbourn then texted the photos to Wakeley, who posted them on the Internet to his Flickr account to share with other users who wanted child pornography. On April 1, 2014, a search of Hilbourn’s cell phone pursuant to a search warrant revealed that she still possessed 15 nude and sexually explicit images of her 10-year old child.
Hilbourn must register as a sex offender. Wakely pleaded guilty to charges of receipt; distribution; and possession of child pornography. He was sentenced on September 2, 2015 to six years in prison.
The case was investigated by the East Lampeter Township Police Department with assistance from the FBI. It was 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.
Kennett Square Resident Charged with Illegal ReentryRead the Press Release
PHILADELPHIA - Rigoberto Zavala-Cerrato, 28, of Kennett Square, 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 September 15, 2015, Zavala-Cerrato, 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 February 4, 2010.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Homeland Security Investigations (“HSI”), and is being prosecuted by Assistant United States Attorney Frank R. Costello, Jr.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Theft of Government FundsRead the Press Release
William Young, Jr., 71, 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 father, after his father’s death in May 2008 until April 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $36,189.
If convicted, the defendant faces a term of in prison, a three‑year period of supervised release, restitution to the government of $36,189, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cancer Research Doctor Sentenced for TheftRead the Press Release
PHILADELPHIA - Steven W. Johnson, Ph.D., 50, of Elkins Park, PA, was sentenced today to 12 months and one day in prison for theft from a program receiving federal funds. Johnson pleaded guilty on April 30, 2015 to one count of misusing federal funds for cancer research to conduct a for-profit business. In addition to the prison term, U.S. District Court Judge Paul S. Diamond also ordered Dr. Johnson to pay restitution of $69,379.02 and a $100 special assessment.
Dr. Johnson was an employee of the University of Pennsylvania, in its School of Medicine, from approximately October 1998 to February 2010. Dr. Johnson conducted cancer research. For some of his research activities, Dr. Johnson would need to test or “validate” (or to have another University of Pennsylvania employee validate for him) presumptive oligonucleotide “primers,” which are used to identify gene expression patterns. The process of validating oligonucleotide primers requires expertise, time, effort, and specialized equipment, including a polymerase chain reaction (“PCR”) machine. In approximately August 2005, while an employee of the University of Pennsylvania, Dr. Johnson started a for-profit company, which advertised human, mouse, and rat validated primers for sale. (The University had no knowledge of Dr. Johnson’s for-profit company.) In approximately 2006, while an employee of the University of Pennsylvania, Dr. Johnson applied for a federal grant from the Department of Defense (“DOD”) to study a new approach to treating ovarian cancer. Between 2007 and 2009, Dr. Johnson purchased thousands of unvalidated oligonucleotide primers, which were charged to the federal grant. Dr. Johnson used the University of Pennsylvania’s laboratory equipment, including a polymerase chain reaction (“PCR”) machine, which also had been purchased with federal grant funds, to test, or “validate,” the primers. Johnson then sold the validated primers to customers of his for-profit company.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Karen L. Grigsby.
Alleged Philadelphia Drug Dealer IndictedRead the Press Release
PHILADELPHIA - Jerome Walker, 30, of Philadelphia, PA, was charged today by indictment with distribution of cocaine base “crack,” possession with intent to distribute cocaine base “crack,” and cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. The indictment alleges that in April 2015, Walker distributed “crack” cocaine on three occasions, possessed more than 280 grams of “crack” cocaine with intent to distribute, and possessed a loaded semi-automatic pistol and a loaded assault rifle.
If convicted the defendant faces a mandatory minimum sentence of 25 years in prison with a statutory maximum sentence of life, a $700 special assessment, supervised release and a possible fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Supplier to Drug Traffickers Gets Long Prison TermRead the Press Release
PHILADELPHIA – Arthur Office, 45, of Houston, TX, was sentenced today to 144 months in prison for his role in a drug trafficking conspiracy. Office pleaded guilty on April 1, 2015, to conspiracy to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base.
During an undercover investigation of co-conspirator Omar Vasquez in March of 2008, Vasquez was stopped by police while driving in Lancaster, PA. He and a passenger fled and, with police in pursuit, they began throwing crack cocaine from the windows of their vehicle. Police recovered approximately 128 grams of cocaine from the highway. Agents with Homeland Security Investigations subsequently searched Vasquez’s car and home, recovering more drugs and money, and were able to trace the source of the cocaine to Arthur Office of Houston, Texas.
An investigation revealed that Office had been supplying cocaine to other drug dealers in Chester County since the late 1990s to 2009. For several years, Office regularly flew from Texas to Philadelphia personally carrying several kilograms of cocaine strapped to his body. On two occasions in 2008 and 2009, on his way back to Texas from Philadelphia International Airport, HSI agents seized over $80,000 in U.S. currency from Office.
In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered 5 years of supervised release, a $100 special assessment, and a fine of $2500.
The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, the Lancaster Police Department and the Pennsylvania State Police. It was prosecuted by Assistant United States Attorney James R. Pavlock.
Alleged Dollar Store Robber ChargedRead the Press Release
PHILADELPHIA - Terrence Harper, 41, of Philadelphia, PA, was charged today by indictment with two robberies and an attempted robbery at businesses in Philadelphia, announced United States Attorney Zane David Memeger. According to the indictment, on December 13, 2013, Harper attempted to rob the Family Dollar Store, located at 6337 North Broad Street, and carried out a robbery at that same Family Dollar Store on December 15, 2013. Harper also allegedly robbed the Whisper Inn, at 7610 Ogontz Avenue, on December 18, 2013. The indictment also charges Harper with related firearms offenses.
If convicted of all charges, the defendant faces a mandatory minimum sentence of 32 years in prison with a statutory maximum sentence of life, up to five years of supervised release, a $500 special assessment, possible fines, and restitution.
This case was investigated by the Federal Bureau of Investigation, Philadelphia Police Department, and the Philadelphia District Attorney=s Office. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Remaining Defendants Admit to Kidnapping of Jewelry Store EmployeeRead the Press Release
PHILADELPHIA - Salahudin Shaheed, 35, and Basil Buie, 24, both of Philadelphia, PA, pleaded guilty today to their roles in a botched robbery and kidnapping that involved a jewelry store employee. Both defendants pleaded guilty today to conspiracy, kidnapping, and attempted Hobbs Act robbery. A third defendant, Khayree Gay, pleaded guilty earlier. A sentencing hearing for Buie and Shaheed is scheduled for January 2016.
Shaheed recruited defendants Gay and Buie, a/k/a “Basil Tucker,” to rob National Watch and Diamond Exchange, at 101 S. 8th Street in Philadelphia to obtain luxury watches, jewelry, and money which Shaheed said could be found there. The defendants conducted surveillance of National Watch and its employees from a parking lot at 733 Chestnut Street, to identify and then, in disguise, abduct an employee from whom they would forcibly obtain keys, security codes, and the code to the company’s safe from which the robbers would steal luxury watches, jewelry, and money.
On April 4, 2015, the defendants watched an employee that Shaheed had targeted. When the employee entered the garage and approached her car, Shaheed and Buie, wearing masks, gloves, and sunglasses, confronted the victim, Shaheed assaulted her with a Taser, and they kidnapped her.
Each defendant faces a maximum possible statutory sentence of life in prison, five years of supervised release, a fine of up to $750,000, and a $300 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorneys Jeanine Linehan and Maureen McCartney.