Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Financial Advisor Charged with Fraud Scheme Totaling More Than $3 MillionRead the Press Release
PHILADELPHIA - An indictment was unsealed today charging Malcolm Segal, 69, of Langhorne, PA, with six counts of mail fraud, and three counts of wire fraud, announced United States Attorney Zane David Memeger. Segal was a financial advisor with Aegis Capital Corporation at the time of the alleged scheme to steal funds from individuals who thought they were investing their money in Certificates of Deposit, and from investors who held funds in brokerage accounts at Aegis.
According to the indictment, between July 2011 and July 2014, Segal told client B.P. that Mercantile Bank and Bear Stearns were offering Certificates of Deposit (CDs) that were paying an annual interest rate of up to 12% with a minimum two-year investment of $100,000. Segal allegedly told individuals that he could sell them these CDs through Aegis. The indictment alleges that Segal accepted at least $100,000 from each of six victims, represented that he had purchased CDs on their behalf when he had not, mailed fraudulent deposit confirmations from National CD Sales Inc. to the victims, and mailed the victims checks which he represented as interest payments. According to the indictment, Segal used his victims’ money to pay personal expenses and to pay off other investors instead of purchasing CDs on behalf of the victims as promised. Segal allegedly stole an aggregate total of approximately $1,885,067.10 from the victims, representing the purchase price of the CDs less the purported interest payments. The indictment also alleges that Segal stole approximately $1,218,183.60 from the brokerage accounts of three of his clients at Aegis by making unauthorized wire transfers of funds from those brokerage accounts to a bank account controlled by Segal.
If convicted of all charges, Segal faces a potential advisory guideline sentencing range of 57 to 71 months in prison with a statutory maximum sentence of 180 years in prison.
The case was investigated by FBI and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three People Charged in Conspiracy to Sell Counterfeit Hair Care ProductsRead the Press Release
PHILADELPHIA – Three people were charged by information, filed or unsealed today, in a conspiracy to import and sell counterfeit goods, announced United States Attorney Zane David Memeger. Stephen Voudouris, Sr., 59, of Newtown Square, PA, Yung Chung, 31, of West Chester, PA, and Jaimmy Chun, 30, of Philadelphia, PA, are charged with conspiracy, trafficking in counterfeit goods and wire fraud. Voudouris, Sr. is also charged with smuggling counterfeit goods into the United States.
Stephen Voudouris, Sr. and Yung Chung were partners and owners of 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. According to the charging documents, in an effort to maximize profits, Voudouris, Sr., Chung and an employee, Chun, sought out Chinese manufacturing companies from which they could purchase cheap goods bearing counterfeit trademarks of CHI, T3 and Babyliss. It is further alleged that the defendants then resold the counterfeit goods as authentic, for top dollar, to the American public.
Allegedly 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. It is alleged, however, that no donations were ever made to a breast cancer charity.
If convicted of all charges, Stephen Voudouris, Sr. faces a potential advisory guideline sentencing range of 33 to 41 months in prison, a three-year period of supervised release, a fine of up to $1 million, and a $400 special assessment; Yung Chung and Jaimmy Chun each face a potential advisory sentencing guideline range of 24 to 30 months in prison, a three-year period of supervised release, a fine of up to $750,000, and a $300 special assessment. Each defendant is also responsible jointly and severally for full restitution of approximately $150,346.
The case was investigated by Homeland Security Investigations with the assistance of the Federal Reserve Board Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Alicia M. Freind and Mary E. Crawley.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Brotherly Love Ambulance Company Employee Pleads Guilty to Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – Fritzroy Brown, 38, of Philadelphia, PA, pleaded guilty today to conspiracy to commit health care fraud, false statements in a health care matter, and theft of government property. He faces a maximum possible statutory sentence of 25 years in prison, three years of supervised release, a $750,000 fine, and a $300 special assessment. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for September 10, 2015.
In July 2010, Feda Kuran, charged elsewhere, began operating Brotherly Love Ambulance, Inc. with a co-schemer. From approximately October 2010 through approximately October 2011, Fritzroy Brown, a licensed Emergency Medical Technician (EMT), 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. Brown also transported patients in his personal vehicles 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, Brown completed ambulance “run sheets” for the trips and certified those sheets with his signature and EMT identification number. In order to make the transport appear as though it had been conducted by ambulance, those run sheets misstated the medical condition of the patient and the care provided to the patient during the transport. In addition, for a period of nearly six months during which he was working full time at Brotherly Love, Fritzroy Brown applied for and received unemployment benefits, repeatedly lying to the Pennsylvania Department of Labor by claiming that he was not working.
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 bills. As a result of Fritzroy Brown’s theft from the unemployment insurance program, the Commonwealth of Pennsylvania paid over $14,000 in improper benefits to him. Feda Kuran was sentenced in November 2014 to 64 months in prison.
The 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.
Philadelphia Pub Owner Charged in Fraud SchemeRead the Press Release
PHILADELPHIA - Michael Hoffner, Sr., 50, of Voorhees, New Jersey was charged by indictment, unsealed today, with 23 counts of wire fraud in connection with a scheme to defraud Navy Federal Credit Union and American Express, announced United States Attorney Zane David Memeger.
According to the indictment, Hoffner owned the Brown Street Pub in Philadelphia, Pennsylvania. The indictment alleges that on 23 occasions, between September and November 2012, Hoffner used a stolen credit number to make charges to either Visa or American Express. The cardholders were not aware of and did not authorize these transactions. The proceeds of these transactions went into accounts that Hoffner controlled.
If convicted the defendant faces a potential advisory sentencing guideline range of at least 18 to 24 months in prison, a $5.75 million fine, and three years of supervised release. The indictment also seeks forfeiture in the amount of $47,209.
The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attorney David J. Ignall.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of California Payment Processing Company Charged with FraudRead the Press Release
PHILADELPHIA – The Justice Department announced today that the owner and operator of a payment processing company that was involved in the unauthorized withdrawal of millions of dollars from consumers’ bank accounts was charged with fraud. Neil Godfrey, 76, of Santa Ana, California, was charged, by information, with one count of wire fraud. Godfrey owned and operated Check Site Inc., based in Santa Ana, CA.
According to the information, between 2006 and 2010, Check Site enabled fraudulent merchants to withdraw money from consumers’ bank accounts without the consumers’ knowledge or consent. Godfrey allegedly worked with at least two fraudulent merchants who operated websites that purportedly offered payday loans. It is alleged that the websites were simply a ruse to harvest consumers’ bank account information. Instead of providing consumers with payday loans, the merchants operating the websites used the information provided by the consumers in loan applications to withdraw money from the consumers’ bank accounts. It is alleged that using Check Site, Godfrey knowingly processed the merchants’ fraudulent withdrawals and provided the merchants access to the banking system.
“The defendant in this case exploited his knowledge of the banking system and exposed hundreds of consumers to fraud,” said Memeger. “Those who circumvent our banking laws in order to enrich themselves by preying on unsuspecting consumers need to be investigated and vigorously prosecuted.”
The information alleged that once the fraudulent merchant had obtained the consumer’s name and bank account information, the merchants involved in the scheme created a demand draft, also known as a remotely controlled check (RCC). Unlike an ordinary check, an RCC is generally honored without the signature of the account holder. Check Site submitted the RCC to the consumer’s bank. When the RCC was processed, Check Site kept a fee and transferred the remainder of the withdrawal to the merchant.
It is further alleged that Godfrey was an expert in finding banks that were willing to facilitate these transactions and ignore the red flags raised by these transactions. Such banks included one located in Irvine, California, and one located in Philadelphia. Godfrey allegedly helped the fraudulent merchants stay off the radar of other banks and regulators so that the fraud could continue. For example, Godfrey allegedly advised merchants how to change the names of their companies and set up the facade of a legitimate company to defeat banks’ attempts at due diligence.
In an email message quoted in the information, Godfrey advised a fraudulent merchant that “the lesson we have learned is that we must trick the [bank] folk. It means you need to set up some type of web site front. What we need to do is set up a legitimate website selling anything you can think of – that is what you get approved on. It is irrelevant if anything is ever sold there – just so it exists. . . . In the mean time we set up false credit card approval etcetera. It is this we use to run the transactions. Yes, there will be a lot of returns, but what we do is send through transactions over the next few weeks that don’t have high returns. They stop looking and then we can run the regular stuff. . . . [A]fter several months we junk that company and go to another company.”
Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division said, “Neil Godfrey used his understanding of the banking system to help his partners in crime steal money from hard-working, often low-income Americans. The amounts that were illegally withdrawn generally did not exceed a few hundred dollars per victim, but the scheme was so massive and went on so long that altogether it added up to millions of dollars in fraudulent withdrawals. As this prosecution demonstrates, the Department of Justice will continue to prosecute individuals and corporations involved in this kind of fraud.”
The case was investigated by the FBI. It is being prosecuted by Assistant U.S. Attorney Patrick J. Murray of the Eastern District of Pennsylvania and Trial Attorney Patrick Jasperse of the Civil Division’s Consumer Protection Branch with assistance from Special Assistant U.S. Attorney Michelle Chua with the Federal Trade Commission.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Native of Guatemala Charged with Illegal ReentryRead the Press Release
PHILADELPHIA – Edgar Rolando Lopez, 45, a native of Guatemala, was charged today by indictment with reentry after deportation. According to the indictment, on or about January 20, 2011, Lopez, an alien and native and citizen of Guatemala, was deported and removed from the United States. On June 2, 2015, Lopez was found in the United States, having knowingly and unlawfully reentered without first applying to the Attorney General of the United States or his successor, the Secretary for Homeland Security for permission to reapply for admission, and without receiving in response the express consent of the Attorney General or his successor to reapply for admission.
If convicted, the defendant faces a maximum possible statutory sentence of 20 years in prison, a three year period of supervised release, a fine of up to $250,000 and a $100 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Joel Goldstein.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cumberland County Man Sentenced for Illegally Importing Counterfeit Sports JerseysRead the Press Release
PHILADELPHIA - Shawn Robinson, 31, of Enola, Pennsylvania, was sentenced today to 12 months and one day in prison for a counterfeiting scheme involving sports jerseys. Robinson and his father, Neil Robinson, of Bensalem, PA, conspired to traffic in and illegally import counterfeit sports jerseys. Both pleaded guilty. In addition to the prison term, U.S. District Court Judge Eduardo Robreno ordered restitution in the amount of $30,000, forfeiture of $89,895.57 and all seized jerseys, three years of supervised release, and a $100 special assessment.
Between July of 2007 and March of 2012, Robinson imported and sold counterfeit sports jerseys that he bought from unauthorized manufacturers in China. These included baseball, football, hockey, and basketball jerseys, and each had a counterfeit trademark of the sports league on the jersey. Robinson imported more than 8,500 counterfeit sports jerseys and grossed an estimated $231,000 in sales for these products.
Shawn Robinson pleaded guilty on January 22, 2015; his father pleaded guilty on November 12, 2014.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Albert S. Glenn.
Convicted Felon Sentenced to 15 Years for Attempting to Shoot PoliceRead the Press Release
PHILADELPHIA – Shamarr Pitts, 26, of Lansdowne, PA, was sentenced today to 180 months in prison for assault on a federal agent, using and carrying a firearm during a crime of violence, and being a convicted felon in possession of a firearm and ammunition. In addition to the prison term, U.S. District Court Judge Joel H. Slomsky ordered a $1,000 fine, three years of supervised release, and a $300 special assessment.
On June 4, 2013, the FBI Violent Crimes Task Force arrived at 43 Schappet Terrace in Lansdowne, PA, to arrest Pitts on charges related to a shooting at the Purple Orchid nightclub in Southwest Philadelphia that had occurred weeks earlier. Uniformed Lansdowne Police had the residence surrounded when the Task Force arrived. Task Force agents and officers initially knocked on the front door of the house and announced their presence. When no one answered, agents and officers breached the back door, and entered the house. A Philadelphia Police detective discovered Pitts hiding behind a closed bedroom door. When the detective pushed the door open, Pitts pointed a silver pistol directly at the detective’s head, pulled the trigger twice generating a clicking sound, but his gun did not discharge. Pitts also attempted to clear and shoot the weapon again, by pulling the slide back, thus generating more noise.
After being ordered to surrender for several minutes, Pitts eventually complied. On February 3, 2015, a federal jury found Pitts guilty of all three counts of the indictment.
The case was investigated by the FBI Violent Crimes Task Force, the Darby Borough Police Department, the Lansdowne Police Department, and the Delaware County District Attorney’s Office, and was prosecuted by Assistant United States Attorney Thomas Zaleski.
Philadelphia Man Indicted on Drug and Gun ChargesRead the Press Release
PHILADELPHIA - An Indictment was filed today charging Tellas Kenyatta Dockery, 40, of Philadelphia, PA, with possession with intent to distribute 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.
If convicted of all charges, the defendant faces a mandatory minimum sentence of 20 years in prison up to life, at least six years of supervised release, a possible fine of up to $2.5 million, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation, and the Bensalem Township Police Department, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Possession of A Firearm by A Convicted FelonRead the Press Release
Edward Dollson, 27, of Philadelphia, Pennsylvania was charged today by indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, up to three years of supervised release, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the University of Pennsylvania Police Department, the Philadelphia Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
RICO Conspiracy Charged in Payday Lending CaseRead the Press Release
PHILADELPHIA - Adrian Rubin, 58, of Jenkintown, PA, has been charged with participation in a racketeering conspiracy for the operation of a “payday lending” business that allegedly violated the usury laws of Pennsylvania and other states, announced United States Attorney Zane David Memeger. Rubin is charged with one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (“RICO”), one count of conspiracy to commit mail fraud and wire fraud, and two counts of mail fraud and aiding and abetting mail fraud. It was investigated by the FBI, the United States Postal Inspection Service, and IRS Criminal Investigations.
According to the information unsealed today, between 1998 and 2012, Rubin owned, controlled, financed, and/or worked for multiple businesses that issued short-term loans, commonly known as “payday loans.” Rubin allegedly conspired with other people to evade state usury laws and other restrictions on payday loans by engaging in a series of deceptive business practices that included: (a) paying a federally-insured bank, which was not subject to state laws, to pretend that it was the payday lender; (b) relocating his operations to a state considered “usury friendly;” and (c) paying an Indian tribe to pretend that it was the actual payday lender as part of a scheme to have the tribe claim that “sovereign immunity” prevent application of state usury laws and other regulations.
Rubin and his co-conspirators also allegedly went to great lengths to hide Rubin’s personal involvement in the payday lending business because he had a criminal record. It is further alleged that Rubin, with the knowledge of his co-conspirators, incorporated his payday businesses in the names of his father-in-law and a family friend and then forged the signatures of those people on company documents. In total, it is alleged that Rubin and his co-conspirators reaped tens of millions of dollars from the defendant’s payday lending activities, much of which stemmed from the collection of fees that were usurious in Pennsylvania and elsewhere.
Pennsylvania law makes it a crime to collect interest, fees, and other charges associated with a loan at a rate in excess of 36 percent per year. Payday loans are short-term loans of relatively small amounts of money, usually a few hundred dollars, which borrowers promise to repay out of their next paycheck or regular income payment, such as a social security check. Some loans have finance charges or fees of between 10 and 30 percent of the amount borrowed. Given the short-term nature of these loans, those charges can translate to annual percentage rates of interest (“APR”s) of 260 to 780 percent.
Rubin also was charged with helping his two sons with their own multi-million-dollar telemarketing scam that duped more than 70,000 people into buying a credit card http:/www.justice.gov/usao-edpa/pr/trio-charged-selling-worthless-credit-cards. The Platinum Trust card was falsely marketed as a general-purpose credit card that customers could use to buy merchandise over the Internet and improve their credit. Blake and Chase Rubin pleaded guilty and are awaiting sentencing.
If convicted of all charges, Adrian Rubin faces a possible advisory sentencing guideline range of at least 10 years in prison with a statutory maximum sentence of 65 years in prison, three years of supervised release, a fine of up to $1 million, and a $400 special assessment.
The case is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Joel M. Sweet.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two More Sentenced for Racketeering in Case Involving Ironworkers Local 401Read the Press Release
TWO MORE SENTENCED FOR RACKETEERING IN CASE INVOLVING IRONWORKERS LOCAL 401
PHILADELPHIA- Christopher Prophet, 44, of Richboro, PA, was sentenced today to 63 months in prison for his role in the corruption case involving Ironworkers Local 401. In addition to the prison term, U.S. District Court Judge Michael Baylson ordered three years of supervised release, $138,000 restitution, and a $200 special assessment. In December 2014, Prophet pleaded guilty to RICO conspiracy and attempted extortion which interferes with interstate commerce. Co-defendant Richard Ritchie, 45, of Philadelphia, was sentenced yesterday to four years in prison, three years of supervised release, $25,000 restitution, and a $300 special assessment.
During the offense conduct, Prophet acted as a business agent for the Ironworkers Local 401 and participated in more than five extortions or attempted extortions with the intent to force non-union contractors to hire union labor. Prophet recruited other members of the Ironworkers Local 401, whom he called his “Shadow Gang,” to assist him in these crimes. If a contractor refused to hire union labor, Prophet and the “Shadow Gang” typically would enter a non-union construction site at night, use sledgehammers to destroy anchor bolts, and cause tens of thousands of dollars in damage.
Ritchie, 45, of Philadelphia, pleaded guilty in December 2014 to RICO conspiracy, attempted extortion which interferes with interstate commerce and violent crime in aid of racketeering. The 12 defendants in the case were charged with conspiring to use violence and intimidation to get union members assigned to jobs on non-union worksites.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, Upper Merion Township Police, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
Philadelphia Woman Charged with Stealing Dead Mother's BenefitsRead the Press Release
PHILADELPHIA - Delores Turner, 62, of Philadelphia, PA, 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 received retirement benefits intended for her mother, after her mother’s death in June 2012 until September 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $30,159.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a three‑year period of supervised release, restitution to the government of $30,159, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Health Care Fraud Sentence Handed DownRead the Press Release
PHILADELPHIA - Jermaine Hairston, 40, of Philadelphia, PA, was sentenced today to 38 months in prison and three years of supervised release, for health care fraud and aggravated identity theft. Hairston stole the personal identifying information of an emergency room physician and used it to call in fake prescriptions for expensive medications in the names of individuals on medical assistance. Hairston, and others, would pick up the prescription medication, generating a claim to the patient's health insurance, and then sell the medication for cash.
In addition to the prison term, U.S. District Court Judge John R. Padova ordered Hairston to pay restitution in the amount of $13,386.63.
The case was investigated by the Food and Drug Administration's Office of Criminal Investigations, the Federal Bureau of Investigation, and the Department of Health and Human Services Office of Inspector General. It was prosecuted by Assistant United States Attorney Elizabeth Abrams.
Former Corrections Officer Gets 20 Year Prison Sentence for Violent Home Invasion RobberyRead the Press Release
PHILADELPHIA - Tyreek Styles, 27, of Philadelphia, PA, was sentenced today to 20 years in prison for his role in a conspiracy to commit home invasion robberies. At the time of the crimes, Styles was working as a correctional officer at Curran Fromhold Prison. On September 26, 2014, a federal jury found Styles guilty of conspiracy, Hobbs Acts robbery, and using and carrying a firearm during a crime of violence.
On December 3, 2011, Styles and his co-defendants, Tyrone Styles and Jeramiah Stokes, committed the violent home invasion robbery of the owner of an Upper Darby business. The defendants waited for the owner home to come home and brutally assaulted him in the front yard. They made their way into the home at gunpoint, and forced the business owner=s family to give them money, some of which were business proceeds. Defendant Tyrone Styles fired the gun as the three defendants fled the scene.
In addition to the prison term, U.S. District Court Judge Petrese Tucker ordered three years of supervised release and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Upper Darby Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry and Thomas Zaleski.
Bucks County Woman Sentenced for Embezzling from Levittown BusinessRead the Press Release
PHILADELPHIA - Joan Baranek, 57, of Yardley, PA, was sentenced today to two years in prison for embezzling $830,504 from her employer, between 2006 and 2012, and not reporting that income on her tax return. Baranek was a vice president for sales at Airgas Safety, Inc., a subsidiary of Airgas, Inc., based in Levittown, Pennsylvania. She pleaded guilty on October 8, 2014 to mail fraud and filing a false income tax return.
Baranek was responsible for designing and managing a sales incentive program for telesales centers (call centers). She purchased gift cards and other award prizes with her personal American Express card, and then submitted expense reports to Airgas for reimbursement. In support of her expense reports, she attached invoices for the gift cards and award prizes to the expense reports. Between May 2006 and December 2012, Baranek altered invoices or even created fictitious invoices, which she attached to her expense reports so as to obtain reimbursement for alleged promotional expenses that she never incurred. Baranek submitted approximately 200 expense reports claiming a total of $1.8 million in promotional expenses; of these, approximately 121 of the reports contained altered, fictitious, or duplicate invoices in support of the expensed promotional items, for a total of approximately $830,504 of fraudulent expenses. Baranek filed a United States income tax return for calendar year 2008, that reported her taxable income as $155,419, when her actual taxable income approximately $360,944.
In addition to the prison term, U.S. District Court Judge Gene E.K. Pratter ordered restitution to Airgas, Inc. in the amount of $567,504, restitution to the IRS of $304,003 in principle and interest, three years of supervised release which includes 50 hours of community service, and a $200 special assessment.
The case was investigated by the FBI and IRS Criminal Investigations. It was prosecuted by Assistant United States Attorney Karen L. Grigsby.
23 Year Prison Term for Sex Trafficker Who Called Himself "God"Read the Press Release
PHILADELPHIA - Paul Sewell, 49, of Reading, PA, was sentenced yesterday to 23 years in prison for sex trafficking of minors or of adults by force, and production of child pornography. Sewell pleaded guilty, on September 21, 2011, to four counts of sex trafficking and three counts of production. In addition to the prison term, U.S. District Court Judge C. Darnell Jones, II, ordered five years of supervised release and ordered Sewell to pay $52,000 in restitution.
Sewell ran a prostitution ring in the Reading area through which he hired females, including minors, to work for him. Sewell, who called himself "God," insisted that the girls who worked for him be tattooed with "God" and a nickname he gave them as a "working name." He also photographed the girls so that he could feature them on a website called "cashmoneybrothersescorts.com," on which he advertised them as escorts. Sewell took sexually explicit pictures of the girls to email to potential clients. Sewell also subjected some females to physical violence to force them to continue working for the venture.
The case was investigated by the Federal Bureau of Investigation and Berks County Detectives with the assistance of the Berks County District Attorney's Office. It was prosecuted by Assistant United States Attorney Michelle Morgan.
Oklahoma Man Charged with Fraud SchemeRead the Press Release
Lee Michael Harrison, 39, of Oklahoma City, Oklahoma, was charged by indictment, unsealed today, with three counts of wire fraud. In 2010 and 2011, Harrison was attempting to establish restaurants and clubs in North Carolina, and to sell a reality television show to the Food Network. He convinced two investors to each invest $20,000 with him by falsely representing that they were investing in a fictitious technology called “Capture” that prevented cell phones from dropping calls and that he allegedly had sold to a prominent New York financier for over six billion dollars.
If convicted, the defendant faces a maximum possible sentence of 60 years of in prison, three years of supervised release, a $750,000 fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mertztown Woman Charged in Conspiracy Involving Construction CompaniesRead the Press Release
PHILADELPHIA - Judy Noll, 52, of Mertztown, PA, was charged today by Information with one count of conspiracy to commit wire fraud, announced United States Attorney Zane David Memeger. Noll, President of Karen Construction Company, Inc. (Karen Construction) engaged in a scheme to defraud the United States Department of Transportation through the Disadvantaged Business Enterprise program (DBE) by posing as a DBE, when in fact it was not, in order to secure contracts on federally funded highway projects under the DBE program. From approximately January 2002 through October 2011, Noll, as President of Karen Construction, wrongfully obtained DBE subcontracts totaling an estimated $11.9 million involving approximately 133 federally funded projects.
If convicted, the defendant faces a maximum sentence of five years in prison, two years of supervised release, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the United States Department of Transportation Office of Inspector General, the Federal Bureau of Investigation, and the Department of Labor Office of Inspector General/Office of Labor Racketeering and Fraud Investigations. It is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Kutztown Steel Company and Owners Charged with ConspiracyRead the Press Release
PHILADELPHIA - Dennis Weber, 66, Dale Weber, 51, and Carl M. Weber Steel Service, Inc. (Weber Steel), all of Kutztown, PA, were charged today by Information with one count of conspiracy to commit wire fraud, announced United States Attorney Zane David Memeger. Dennis Weber, President of Weber Steel, and Dale Weber, Vice President, engaged in a scheme to defraud the United States Department of Transportation through the Disadvantaged Business Enterprise program (DBE). Weber Steel, a bridge and highway construction contractor located in Kutztown, PA was not a certified DBE, but set up and utilized a sham DBE called Karen Construction Co., Inc. (Karen Construction) to obtain DBE subcontracts for bridge and highway construction. From approximately April 1995 through November 2011, Karen Construction, posing as a DBE, obtained an estimated $18.7 million from approximately 224 federally funded projects, when, in reality, it was controlled by Weber Steel, a non-DBE.
If convicted, defendants Dennis and Dale Weber each face a maximum sentence of five years in prison, two years of supervised release, a fine of up to $250,000, and a $100 special assessment. Defendant Weber Steel faces a maximum sentence of five years of probation, a fine of up to $500,000, and a $100 special assessment.
The case was investigated by the United States Department of Transportation Office of Inspector General, the Federal Bureau of Investigation, and the Department of Labor Office of Inspector General/Office of Labor Racketeering and Fraud Investigations. It is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Leader of Drug Smuggling Operation Gets Long Prison TermRead the Press Release
PHILADELPHIA – Higinio Castillo, 25, residing in Philadelphia, was sentenced today to 20 years in prison for running a large-scale drug smuggling operation, known as the Castillo Drug Smuggling Organization (CDSO). Castillo and the members of the CDSO recruited couriers who secreted packets of heroin inside their bodies in order to smuggle the drugs into the United States from the Dominican Republic. Between November 2010 and March 2012, Castillo imported more than eight kilograms of heroin and more than one kilogram of cocaine. He pleaded guilty on April 29, 2014 to 13 counts including conspiracy, kidnapping, and numerous drug charges.
Castillo lured people into acting as mules with promises of money and free vacations. He personally participated in the kidnapping of one drug courier whom he accused of absconding with about a pound of heroin, and he unsuccessfully attempted to obtain the children of another courier who had not returned the heroin that she had imported. Castillo’s drug supplier was a relative in the Domincan Republic.
Castillo ran the CDSO with co-defendant Michael Nunez-Rodriguez. Rodriguez and the nine remaining defendants have pleaded guilty and are awaiting sentencing. After recruiting the couriers, members of the CDSO would drive them to airports and pick them up upon their return. After the couriers cleared U.S. Customs, they were taken to an apartment controlled by the CDSO where they would expel the drug pellets. The CDSO would then repackage the drugs for sale. When a courier was suspecting of stealing the smuggled drugs, the members would intimidate and threaten the courier.
In addition to the prison term, U.S. District Court Judge Legrome D. Davis ordered 10 years of supervised release, a $5,000 fine, and a $1,300 special assessment. The government is also seeking forfeiture of all assets derived from any criminal activity.
The case was investigated by Homeland Security Investigations (HSI) with assistance from U.S. Customs and Border Protection, Philadelphia Police, Pennsylvania State Police, and the Philadelphia District Attorney=s Office. It is being prosecuted by Assistant United States Attorney Nancy Rue.
Violent Loan Sharks Get Long Prison TermsRead the Press Release
PHILADELPHIA – The leaders of a violent loan sharking and illegal gambling ring that operated out of several Philadelphia businesses were sentenced today by U.S. District Court Judge William Yohn in Philadelphia, PA. Ylli Gjeli, 49, of Philadelphia, was sentenced today to 168 months in prison. Fatimir Mustafaraj, 42, also of Philadelphia, was sentenced to 147 months in prison. The defendants generated money by making and collecting on loans with usurious rates of interest; using intimidation, threats, and violence to make and collect on loans; and making loans to betting customers whose debts were incurred through the enterprise’s illegal gambling business.
On December 15, 2014, a federal jury returned guilty verdicts against Gjeli, Mustafaraj and their co-defendants, Gezim Asllani and Rezart Rahmi Telushi, on charges of racketeering conspiracy, racketeering collection of unlawful debt, and collections of extensions of credit by extortionate means. Gjeli, Mustafaraj, and Asllani were also convicted of making extortionate extensions of credit; and Gjeli and Mustafaraj were also convicted of operating an illegal gambling business. Evidence presented at trial established that from October 2011 to 2013, the enterprise extended 125 usurious loans totaling $1.78 million with annual interest rates ranging from 104 percent to 395 percent. And, from February 2007 to August 2013, the organization’s online sports betting website contributed more than $2.9 million in gross profits. The Lion Bar & Grill in Philadelphia was used as a front for the enterprise. The enterprise also used Blackbird Café and “Ylli’s 2 Brothers” to conduct illegal loan sharking and gambling activities.
Gjeli was a leader and “boss” of the multi-million dollar criminal organization; Mustafaraj, a/k/a “Tony,” was a leader and “muscle.” Both directed other members in the loan sharking activities and illegal gambling business, approved loans, used intimidation and threats of violence against customers, collected weekly loan payments, physically assaulted subordinate members and associates, supervised the illegal gambling business, provided cash to pay customer’s gambling wins and otherwise financed the gambling business, collected gambling debts, and made loans to customers whose debts were incurred through the illegal gambling business. Asllani and Telushi were debt collectors who assisted Gjeli and Mustafaraj in making loans and regularly collected weekly loan payments from customers.
Members and associates of the enterprise cultivated their reputation for violence by threatening customers with dangerous weapons such as a firearm and hatchet; using implied threats and intimidation; telling customers that if they did not pay their debts someone would kill them, “break your legs,” or physically harm them or their family members in some other way; and physically assaulting subordinate members and associates.
The defendants attempted to conceal the existence and operations of the enterprise from law enforcement by: limiting their discussions of criminal activities when on the phone using cryptic and coded language to describe criminal activities; conducting pat-downs and body searches of customers to check for weapons and recording devices; and conducting the enterprise’s transactions primarily in cash.
A sentencing hearing is scheduled for June 15, 2015 for Telushi and for September 3, 2015 for Asllani. Five co-defendants who pleaded guilty are also awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations, Pennsylvania State Police, Montgomery County Detectives, and the New Jersey State Police. It is being prosecuted by Assistant United States Attorneys Salvatore L. Astolfi and Jerome Maiatico and Trial Attorney Margaret Vierbuchen from the Department of Justice Organized Crime & Gang Section.
Roofing Company Owner Charged in Employee's Fatal FallRead the Press Release
PHILADELPHIA - James J. McCullagh, 60, of Meadowbrook, PA, was charged by indictment, unsealed today, in connection with the fatal fall of an employee, announced United States Attorney Zane David Memeger. McCullagh, who owns James J. McCullagh Roofing, is charged with with four counts of making false statements, one count of obstruction of justice, and one count of willfully violating an Occupational Safety and Health Administration (OSHA) regulation causing death to an employee.
According to the indictment, McCullagh failed to provide fall protection equipment to his employees. On June 21, 2013, one of McCullagh’s employees was killed after falling approximately 45 feet from a roof bracket scaffold while performing roofing work for McCullagh. In connection with the OSHA investigation of the fatality, McCullagh attempted to cover up his failure to provide fall protection by falsely stating, on four occasions, that he had provided fall protection equipment, including safety harnesses, to his employees. McCullagh told an OSHA Compliance Safety and Health Officer that his employees had been wearing safety harnesses tied off to an anchor point when he saw them earlier in the day prior to the fall. The indictment alleges that McCullagh knew that he had not provided fall protection to his employees and none of his employees had safety harnesses or any other form of fall protection. It is further alleged that McCullagh directed other employees to falsely state that they had fall protection, including safety harnesses, on the day of the fall.
If convicted, the defendant faces a maximum sentence of 25 years in prison, three years of supervised release, $1.5 million in fines, and a $510 special assessment.
The case was investigated by the United States Department of Labor, Office of Inspector General Labor Racketeering and Fraud Investigations and the Occupational Safety and Health Administration and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Lying About Mother's Death and Illegally Receiving Her BenefitsRead the Press Release
PHILADELPHIA – Clarence Norwood, Jr., also known as Isaiah H. Tolson, 55, of Philadelphia, PA, was charged by information with theft of government funds and making false statements, announced United States Attorney Zane David Memeger.
According to the information, Norwood accessed his deceased mother’s bank account and improperly received the Civil Service Retirement System benefit payments intended for his mother, whose death had not been reported to the Office of Personnel Management. It is further alleged that when a letter was mailed to Norwood’s mother’s residence, Norwood falsely certified that his mother was still alive but had had a stroke and could not sign the response. Between August 2011 and November 2013, Norwood allegedly improperly received $115,440.65 in benefit payments that he was not entitled to receive.
If convicted the defendant faces a possible sentencing guideline range of at least 10 to 16 months in prison, up to three years of supervised release, and full restitution of $115,440.65.
The case was investigated by the Office of Personnel Management Office of Inspector General, and is being prosecuted by Assistant United States Attorney Alicia M. Freind.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Perkasie Resident Charged with Illegal Reentry After DeportationRead the Press Release
Rodrigo Pineda-Fernance, a/k/a “Jose Morales,” a/k/a “Jose Cardona,” 50, of Perkasie, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The Indictment alleges that on or about May 7, 2015, Pineda-Fernance, an alien, and native and citizen of Honduras, was found in the United States after having been deported from the United States on or about January 29, 2010, May 24, 2013, and July 31, 2013.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Construction Company Owner Charged in Fraud on Local UniversityRead the Press Release
PHILADELPHIA - Douglas Kremer, 52, of Bloomingdale, NJ, was charged by Information with wire fraud in connection with a scheme to defraud the University of Pennsylvania, announced United States Attorney Zane David Memeger.
Kremer, as the owner of Accent Construction, provided construction and renovation services to the Sheraton University City Hotel, which is owned by the University of Pennsylvania. According to the information, between March 2013 and April 2013, Kremer was instructed by Co-conspirator 1, Kenneth Kapikian, charged elsewhere, to sign over Sheraton University City Hotel checks to him as kickbacks for a construction contract.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lancaster Resident Charged with Illegal Reentry After DeportationRead the Press Release
Hugo Morales-Utrera, a/k/a “Hugo Morales-Utrara,” a/k/a “Hugo Morales,” 43, of Lancaster, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about May 11, 2015, Morales-Utrera, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or September 24, 2004.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Albert S. Glenn.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment Charges Philadelphia Man with Committing 11 Robberies in 10-Month SpanRead the Press Release
PHILADELPHIA – Cartel Wright, 39, of Philadelphia, PA, was charged today by indictment with 11 counts of Hobbs Act robbery that largely targeted pharmacies in Philadelphia and the surrounding area, announced United States Attorney Zane David Memeger. Wright allegedly robbed the same Rite Aid Pharmacy on three different occasions.
According to the indictment, between March 25, 2014, and January 19, 2015, in addition to Rite Aid Pharmacies, Wright robbed a CVS, a Walgreens, a Family Dollar store, and two different McDonald’s restaurants, twice committing two robberies on the same day. The indictment alleges that Wright robbed the Rite Aid Pharmacy at 5040 City Avenue on: March 25, 2014, August 30, 2014, December 27, 2014, and December 18, 2014, when he also robbed another Rite Aid Pharmacy at 5212 Baltimore Avenue in Philadelphia. It is further alleged that Wright committed the following robberies:
December 28, 2014, CVS Pharmacy, located at 7520 City Avenue, Philadelphia
January 1, 2015, Family Dollar, located at 5814 Woodland Avenue, Philadelphia
January 11, 2015, Rite Aid, located at 5440 Lansdowne Avenue, Philadelphia
January 11, 2015, McDonald’s, located at 7500 City Avenue, Philadelphia
January 12, 2015, McDonald’s, located at 101 South 52nd Street, Philadelphia
January 19, 2015, Walgreens, located at 53 Chester Pike, Darby Borough
In each robbery, Wright allegedly threatened the victims before stealing money from the establishment.
If convicted of all charges, Wright faces a possible advisory sentencing guideline range of 151 to 262 months in prison and a $1,100 special assessment, with a maximum statutory sentence of 220 years in prison, a $2.75 million fine, and up to 3 years of supervised release.
The case was investigated by the FBI, the Philadelphia Police Department, the Darby Borough Police Department and the United States Marshal Service Violent Crimes Fugitive Task Force (VCFTF). It is being prosecuted by Assistant United States Attorney Jose Arteaga.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Doylestown Man Indicted on Child Pornography ChargesRead the Press Release
PHILADELPHIA - Kurt Krumpholz, 55, of Doylestown, Pennsylvania, was charged today by indictment with attempting to entice a minor, production of child pornography, and receipt of child pornography announced United States Attorney Zane David Memeger.
The indictment alleges that from November 2014 through January 2015, Krumpholz enticed and coerced minors, who were 11 and 14 years old, to engage in sexually explicit conduct for the purpose of producing child pornography and did receive that child pornography.
The indictment also alleges that in January 2015, Krumpholz used the Internet to attempt to persuade an individual whom Krumpholz believed to be a minor to engage in illegal sexual activity.
If convicted the defendant faces a maximum possible sentence of life and a mandatory minimum term of incarceration of 15 years, a minimum five years up to a lifetime of supervised release, a $1.75 million dollar fine, mandatory restitution, forfeiture, and a $700 special assessment. .
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Homeland Security Investigations, East Norriton Police Department, Montgomery County Detectives, and Bucks County Detectives and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Charge of "Causing A Death" Added to Indictment Against Main Line DoctorRead the Press Release
PHILADELPHIA – A superseding indictment was filed today against Dr. Jeffrey Bado, 59, of Philadelphia, PA, charging him with distribution of a controlled substance resulting in death and 82 additional counts of distribution of controlled substances. Bado, a doctor of Osteopathic Medicine, was first indicted on February 4, 2015 for the alleged illegal distribution of pain medications from his Philadelphia and Bryn Mawr medical offices. The superseding indictment also contains the original two counts of maintaining a drug-involved premises, 200 counts of illegally distributing oxycodone, a Schedule II controlled substance, outside the usual course of professional practice and for no legitimate medical purpose, 33 counts of health care fraud, and four counts of making false statements to federal agents.
According to the superseding indictment, on January 24, 2011, Bado knowingly and intentionally distributed pills containing oxycodone to J.A.-1, and the death of J.A.-1 resulted from the use of those substances. The indictment alleges that Bado had been writing prescriptions for J.A.-1 despite the fact that, when tested at Bado’s office, the victim tested positive for illegal street drugs. Bado allegedly gave prescriptions for large numbers of oxycodone pills to “patients” who paid in cash for an “office visit” during which the “patient” would receive, at most, a cursory physical examination and little other medical care or treatment. The superseding indictment alleges that Bado’s prescribing mirrored the needs of drug addicts and drug traffickers. Bado would allegedly comply with patient requests for pills with specific concentrations of oxycodone, and Bado would allegedly switch patients to pills with a higher street value even though there was no medical justification for the switch. Bado allegedly continued to prescribe high amounts of oxycodone even when he knew that his patients were addicted to oxycodone, were using illegal drugs, or were not even taking the oxycodone pills as prescribed.
If convicted of all charges, Bado faces an estimated sentencing guideline range of at least 24 years in prison with a mandatory minimum sentence of 20 years in prison up to life in prison, a special assessment of $32,200, substantial fines, criminal forfeiture, and supervised release.
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of the Inspector General, the Haverford Township Police Department and the Philadelphia Police Department. It is being prosecuted by Assistant U.S. Attorneys Nancy Beam Winter and Andrew J. Schell.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defendants Plead Guilty to Defrauding Local UniversityRead the Press Release
PHILADELPHIA - Kenneth Kapikian, 57, of Wayne, Pennsylvania, and Dennis Gagliardi, 60, of Chester Springs, Pennsylvania, pleaded guilty today to conspiring to defraud the University of Pennsylvania. Kapikian pleaded guilty to six counts of wire fraud and one count of conspiracy to commit money laundering; Gagliardi pleaded guilty to four counts of wire fraud and one count of conspiracy to commit money laundering. Sentencing hearings are scheduled for September 14, 2015 for both defendants.
The defendants, engaged in a scheme to fraudulently obtain monies from the University of Pennsylvania by falsely billing the University for services the defendants never provided to the Sheraton University City Hotel. They directed vendors of the Sheraton University City Hotel to inflate their invoices submitted to the hotel and then pay them the fraudulently inflated amounts as kickbacks.
Kapikian faces a maximum possible sentence of 140 years in prison; Gagliardi faces a maximum statutory sentence of 100 years in prison; special assessments, supervised release, and possible fines.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
Former City Employee Sentenced for Million Dollar Ink Cartridge ScamRead the Press Release
PHILADELPHIA – Calvin Duncan, 63, a former Philadelphia Water Department employee, was sentenced today to 24 months in prison and three years of supervised release for a scheme to defraud the City of Philadelphia of more than $1 million. Duncan, of Philadelphia, worked as a mailroom clerk and was responsible for purchasing supplies, including printer ink and toner cartridges, for PWD’s administrative offices. Between January 1, 2006 and January 5, 2012, Duncan ordered printer ink and toner cartridges, for which the City of Philadelphia paid approximately $1,368,091.19, falsely claiming that the cartridges were for PWD employees’ use. Instead, Duncan sold the cartridges for approximately $545,412.79 and had them shipped to his co-conspirators using PWD’s UPS shipping account. Duncan pleaded guilty, on August 9, 2013, to five counts of mail fraud.
In addition to the prison term, U.S. District Court Judge Jan E. DuBois ordered restitution in the amount of $1,368,091.19 and ordered forfeiture of $545,412.39. Duncan’s co-conspirators, Derek and Danita Willis, who own Laser Cartridge Plus, Inc. in Russellville, Arkansas, pleaded guilty on April 29, 2014. Derek Willis was sentenced to 36 months in prison; Danita Willis was sentenced to 12 months and 1 day in prison.
Amy Kurland, Inspector General for the City of Philadelphia , testified at the sentencing hearing for Derek Willis and Danita Willis and described the harm as follows:
“The City of Philadelphia could have used that money for a number of things. Approximately 500 students could have been educated. Teachers could have been hired to educate that number of students. That money would have funded the entire Fire Inspection Department at L&I for a year. The money could have also been used for equipment, for body cameras for 200 officers. …When something like this happens, when people are able to steal that amount of money from the city, it makes the citizens lose confidence in government and lose confidence in the city’s ability to function appropriately.”
The investigation was initiated by the Philadelphia Office of the Inspector General and included the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Tomika N. Stevens Patterson.
Former Parochial Vicar Pleads Guilty to Child Exploitation ChargesRead the Press Release
PHILADELPHIA – Mark Haynes, 56, of West Chester, PA, pleaded guilty today to all counts contained in a superseding information charging child exploitation. Haynes, a former parochial Vicar, pleaded guilty to using the Internet to entice a minor to engage in sexual conduct, transfer of obscene material to a minor, distribution of child pornography, possession of child pornography, and destruction or concealment of evidence. A sentencing hearing is scheduled for September 10, 2015. Haynes faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life, possible fines, and at least five years up to a lifetime of supervised release.
According to court documents, around 2010, Haynes posed as a 16-year old girl named “Katie” on a teen dating website. As “Katie,” Haynes would meet minor girls online and allegedly request that they take and send sexually explicit pictures. Haynes is also charged with distributing other images and videos of children being sexually assaulted over the Internet in 2014, again posing as “Katie.”
The case was investigated by the FBI in conjunction with the Chester County Criminal Investigative Division. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.
Coatesville Man Charged with Child ExploitationRead the Press Release
PHILADELPHIA - David Slater, 52, of Coatesville, PA, was charged by information, filed May 29, 2015, with two counts of use of an interstate commerce facility to entice a minor to engage in sexual conduct, announced United States Attorney Zane David Memeger. According to the information, on June 1, 2013 and November 11, 2013, Slater used the internet to entice and coerce persons whom he believed were under the age of 18 to engage in sexual activity.
If convicted the defendant faces a maximum possible sentence of life imprisonment in prison, a $500,000 fine, 5 years up to a lifetime of supervised release, and a $200 special assessment.
The case was investigated by FBI, the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Pair Charged in Gun Point Robbery of Grocery StoreRead the Press Release
Davoris Carter and Rodney Williams were charged today by indictment with robbery which interferes with interstate commerce, and using and carrying a firearm during a crime of violence, announced U.S. Attorney Zane David Memeger. The indictment charges that Carter and Williams committed a gun-point robbery of the Garcia Grocery, located at 1327 Dyre Street, in Philadelphia, Pennsylvania, on January 27, 2015. Carter and Williams are also charged with using and carrying firearms during the robbery charged in the indictment.
If convicted of all counts, Carter and Williams each faces a maximum sentence of life imprisonment, with a mandatory seven year minimum sentence, a $500,000 fine, five years supervised release, and a $200 special assessment.
This case has been investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. The case has been assigned to Assistant United States Attorney Thomas M. Zaleski.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Alleged Drug Kingpins Charged with Multi-State Operation That Imported 1,000 Kilograms of Heroin from Mexico into the United StatesRead the Press Release
A 108-count superseding indictment unsealed today charges 37 people (see chart) as participants in a multi-state heroin trafficking organization with ties to Mexico. The charges, which include conducting a continuing criminal enterprise, conspiracy to commit money laundering, 62 counts of money laundering and 43 substantive drug charges, were announced by U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Special Agent-in-Charge Gary Tuggle for the Drug Enforcement Administration (DEA).
Members of the Laredo Drug Trafficking Organization (DTO) are charged with the distribution and attempted distribution of multi-kilogram quantities of heroin in Philadelphia. According to the indictment, since 2008, the Laredo DTO has manufactured and imported heroin from its operation in Mexico and supplied other DTOs in Philadelphia, Chicago Camden, New Jersey, and elsewhere.
Brothers Antonio and Ismael Laredo, the alleged leaders of the Laredo DTO, are charged with engagement in a continuing criminal enterprise. They allegedly supervised 21 defendants who are charged with participation in a conspiracy to import heroin from Mexico into the United States and conspiracy to distribute kilogram quantities of heroin manufactured in and smuggled from Mexico into the United States. According to the superseding indictment, the Laredo DTO smuggled-in from Mexico approximately 1,000 kilograms of heroin using various concealment techniques including placing kilogram quantities of heroin in car batteries, car bumpers, concealed vehicle traps and sealed fruit and vegetable cans. Antonio and Ismael Laredo allegedly recruited and hired couriers in the United States to transport and deliver multi-kilogram shipments of heroin, originating in Mexico, to heroin distributors affiliated with the Laredo DTO located in Philadelphia, Camden, New Jersey, Chicago, Atlanta, and New York, New York. Defendant Antonio Marcelo Barragan allegedly served as a Mexican-based supplier of raw opium. Defendant Alejandro Sotelo allegedly served as a stash house operator and distributor of the DTO’s product in Chicago, where he arranged trans-shipment of multi-kilogram quantities of heroin to Philadelphia, New Jersey and New York.
It is further alleged that the Laredo DTO supplied street level heroin bagging and packaging operations in Philadelphia; that heroin, in quantities ranging from 15 to 50 kilograms at a time was regularly moved between the Chicago, operation and the Philadelphia operation; and that members of the DTO, including the Laredo brothers, used violence, such as assaults and kidnapping, threats of violence, including murder and arson and firearms to protect the DTO’s product and proceeds and to prevent members from withdrawing from the organization. The indictment alleges that the Laredo DTO supplied multi-kilogram quantities of heroin to other drug traffickers in the Philadelphia area, including the (Christian) Serrano DTO, charged elsewhere, the (Darbin and Gabriel) Vargas DTO and the Camden, New Jersey, based (Confesor) Montalvo organization, among others.
According to the indictment, members of the Laredo DTO would transport heroin shipments by various means, including car and train. In 2012, a courier concealed three kilograms of heroin inside a car battery for transport from Mexico to Philadelphia; another shipment of four kilograms was concealed inside a car speaker box; a shipment of 7.6 kilograms of heroin was concealed in sealed fruit and vegetable cans in Texas and the couriers were directed to deliver the heroin to defendants Darbin Vargas and Gabriel Vargas, of the Vargas DTO in Philadelphia, in September 2012. The indictment alleges that the Laredo brothers arranged for the manufacture and production of car batteries in Mexico containing concealed compartments to hold multiple kilograms of heroin which were then used to surreptitiously import heroin into the United States.
The indictment further alleges that the Laredo brothers had numerous relatives and associates set up “funnel accounts” that were used for the purpose of laundering the proceeds of the drug operation back to Mexico. According to the indictment, using a variety of money laundering techniques, including the use of the funnel accounts, wire transfers of funds and Western Union money grams, the DTO was able to launder at least $5 million of its heroin proceeds back to Mexico, where the Laredo brothers resided. It was further a part of the conspiracy that the Laredo brothers directed defendant Osmar Flores, doing business as Tri-Country Auto Sales Inc. in Rockford, Illinois, to collect and deposit large sums of cash representing proceeds of the Laredo DTO's heroin trafficking sales in the U.S. to the business bank account of Tri Country Auto Sales Inc. Portions of those funds were allegedly used to purchase multiple vehicles used to transport heroin from Mexico and bulk U.S. currency from the United States to Mexico, in concealed compartments. In addition, defendant Osmar Flores transmitted proceeds of the heroin operation back to the Laredos, both by wire transfers and bulk transfers of cash.
“This indictment and the arrests this morning are a significant victory in our efforts to combat drug trafficking,” said U.S. Attorney Memeger. “Because of the persistent and collaborative efforts of multiple law enforcement agencies across the country, a major supplier of heroin to the Philadelphia region is out of business.”
“Heroin is the top enforcement priority of the Drug Enforcement Administration’s Philadelphia Field Division,” said Special Agent-in-Charge Tuggle. “Dismantling this extremely violent international drug trafficking organization ended the flow of hundreds of kilograms of Mexican based heroin into the Philadelphia region and is a direct result of DEA’s resolve to make our communities safer. This was a cooperative effort with local, state and federal agencies. The flow of Mexican produced heroin into southeast Pennsylvania has been significantly impacted.”
If convicted, the Laredo brothers each face a mandatory sentence of life in prison, tens to hundreds of millions of dollars in fines, as well as a criminal forfeiture judgment to the United States of up to $60 million; most of the remaining drug trafficking defendants face mandatory minimum sentences of at least 10 years in prison (see attached chart).
The case was investigated by the DEA’s offices in Philadelphia, Camden, New Jersey, Mexico City, Mexico, Chicago and Rockford, Illinois, Newark, New Jersey, New York, New York, Tyler, Texas, Raleigh, North Carolina, Jefferson City and St. Louis, Missouri, Richmond, Virginia, and the DEA Special Operations Division; FBI in Philadelphia; U.S. Marshal Service; Homeland Security Investigations in Philadelphia and Richmond, Virginia; Immigration and Customs Enforcement; the Philadelphia Police Department; Darby Borough Police Department; SEPTA Transit Police Department; Berks County District Attorney’s Office; Bucks County District Attorney’s Office in New Jersey; the New Jersey Attorney General’s Office, Parole Board, Cherry Hill Police Department, Delaware River Port Authority Police, Camden County Prosecutor’s Office, Camden County Sherriff’s Office; in Illinois: Rockford Police Department, Will County Sheriff's Department, Skokie Police Department, Aurora Police Department, Oak Lawn Police Department, Addison Police Department, Prospect Heights Police Department, Chicago Police Department, Arlington Heights Police Department, West Chicago Police Department, Cook County Sheriff's Department and McHenry County Narcotics Task Force; in Texas: Texas Department of Safety, CID Mt. Pleasant, Mt. Pleasant Police Department; in Missouri: Missouri State Highway Patrol, Audrain County Sheriff’s Department, East Central Drug Task Force; in Virginia: the Mecklenberg County Commonwealth Attorney’s Office and the Virginia State Police; and the Orange County Sheriff’s Office in North Carolina. Assistance was provided by the U.S. Attorney’s Offices in the Northern District of Illinois and the Eastern District of Virginia. The case is being prosecuted by Assistant United States Attorney Joseph T. Labrum III.
Alleged Drug Kingpins Charged with Importing Heroin from MexicoRead the Press Release
PHILADELPHIA – A 108-count superseding indictment, unsealed today, charges 37 people (see chart) as participants in a multi-state heroin trafficking organization with ties to Mexico. The charges, which include conducting a continuing criminal enterprise, conspiracy to commit money laundering, 62 counts of money laundering, and 43 substantive drug charges, were announced by United States Attorney Zane David Memeger and Drug Enforcement Administration Special Agent-in-Charge Gary Tuggle. Members of the Laredo Drug Trafficking Organization (DTO) are charged with the distribution and attempted distribution of multi-kilogram quantities of heroin in Philadelphia. According to the indictment, since 2008, the Laredo DTO has manufactured and imported heroin from its operation in Mexico and supplied other DTOs in Philadelphia, Pennsylvania, in Camden, New Jersey, in Chicago, Illinois, and elsewhere.
Brothers Antonio and Ismael Laredo, the alleged leaders of the Laredo DTO, are charged with engagement in a continuing criminal enterprise. They allegedly supervised 21 defendants who are charged with participation in a conspiracy to import heroin from Mexico into the United States, and conspiracy to distribute kilogram quantities of heroin manufactured in, and smuggled from, Mexico into the United States. According to the superseding indictment, the Laredo DTO smuggled-in from Mexico approximately 1,000 kilograms of heroin using various concealment techniques including placing kilogram quantities of heroin in car batteries, car bumpers, concealed vehicle traps, and sealed fruit and vegetable cans. Antonio and Ismael Laredo allegedly recruited and hired couriers in the United States to transport and deliver multi-kilogram shipments of heroin, originating in Mexico, to heroin distributors affiliated with the Laredo DTO located in Philadelphia, Pennsylvania, Camden, New Jersey, Chicago, Illinois, Atlanta, Georgia, and New York, New York. Defendant Antonio Marcelo Barragan allegedly served as a Mexican-based supplier of raw opium. Defendant Alejandro Sotelo allegedly served as a stash house operator and distributor of the DTO’s product in Chicago, Illinois, where he arranged trans-shipment of multi-kilogram quantities of heroin to Philadelphia, New Jersey and New York.
It is further alleged that the Laredo DTO supplied street level heroin bagging and packaging operations in Philadelphia; that heroin, in quantities ranging from 15 to 50 kilograms at a time was regularly moved between the Chicago operation and the Philadelphia operation; and that members of the DTO, including the Laredo brothers, used violence, such as assaults and kidnapping, threats of violence, including murder and arson, and firearms to protect the DTO's product and proceeds and to prevent members from withdrawing from the organization. The indictment alleges that the Laredo DTO supplied multi-kilogram quantities of heroin to other drug traffickers in the Philadelphia area, including the
(Christian) Serrano DTO, charged elsewhere, the (Darbin and Gabriel) Vargas DTO, and the Camden, New Jersey based (Confesor) Montalvo organization, among others.
According to the indictment, members of the Laredo DTO would transport heroin shipments by various means, including car and train. In 2012, a courier concealed three kilograms of heroin inside a car battery for transport from Mexico to Philadelphia; another shipment of four kilograms was concealed inside a car speaker box; a shipment of 7.6 kilograms of heroin was concealed in sealed fruit and vegetable cans in Texas, and the couriers were directed to deliver the heroin to defendants Darbin Vargas and Gabriel Vargas, of the Vargas DTO in Philadelphia in September 2012. The indictment alleges that the Laredo brothers arranged for the manufacture and production of car batteries in Mexico containing concealed compartments to hold multiple kilograms of heroin which were then used to surreptitiously import heroin into the United States.
The indictment further alleges that the Laredo brothers had numerous relatives and associates set up “funnel accounts” that were used for the purpose of laundering the proceeds of the drug operation back to Mexico. According to the indictment, using a variety of money laundering techniques, including the use of the funnel accounts, wire transfers of funds, and Western Union money grams, the DTO was able to launder at least $5 million of its heroin proceeds back to Mexico, where the Laredo brothers resided. It was further a part of the conspiracy that the Laredo brothers directed defendant Osmar Flores, doing business as Tri-Country Auto Sales, Inc., in Rockford, Illinois, to collect and deposit large sums of cash representing proceeds of the Laredo DTO's heroin trafficking sales in the U.S. to the business bank account of Tri Country Auto Sales, Inc. Portions of those funds were allegedly used to purchase multiple vehicles used to transport heroin from Mexico and bulk U.S. currency from the United States to Mexico, in concealed compartments. In addition, defendant Osmar Flores transmitted proceeds of the heroin operation back to the Laredos, both by wire transfers and bulk transfers of cash.
“This indictment and the arrests this morning are a significant victory in our efforts to combat drug trafficking,” said Memeger. “Because of the persistent and collaborative efforts of multiple law enforcement agencies across the country, a major supplier of heroin to the Philadelphia region is out of business.”
“Heroin is the top enforcement priority of the Drug Enforcement Administration’s Philadelphia Field Division,” said Special Agent-in-Charge Gary Tuggle. “Dismantling this extremely violent international drug trafficking organization ended the flow of hundreds of kilograms of Mexican based heroin into the Philadelphia region and is a direct result of DEA’s resolve to make our communities safer. This was a cooperative effort with local, state and federal agencies. The flow of Mexican produced heroin into southeast Pennsylvania has been significantly impacted.”
If convicted, the Laredo brothers each face a mandatory sentence of life in prison, tens to hundreds of millions of dollars in fines, as well as a criminal forfeiture judgment to the United States of up to $60 million; most of the remaining drug trafficking defendants face mandatory minimum sentences of at least 10 years in prison (see attached chart).
The case was investigated by the Drug Enforcement Administration’s offices in Philadelphia, PA, Camden, NJ, Mexico City, Mexico, Chicago and Rockford, IL, Newark, NJ, New York, NY, Tyler, TX, Raleigh, NC, Jefferson City and St. Louis, MS, Richmond, VA, and the DEA Special Operations Division; FBI, Philadelphia; U.S. Marshal Service; Homeland Security Investigations in Philadelphia, PA and Richmond, VA; Immigration and Customs Enforcement; the Philadelphia Police Department; Darby Borough Police Department; SEPTA Transit Police Department; Berks County District Attorney’s Office; Bucks County District Attorney’s Office; in New Jersey: the N.J. Attorney General’s Office, N.J. Parole Board, Cherry Hill Police Department, Delaware River Port Authority Police, Camden County Prosecutor’s Office, Camden County Sherriff’s Office; in Illinois: Rockford Police Department, Will County Sheriff's Department, Skokie Police Department, Aurora Police Department, Oak Lawn Police Department, Addison Police Department, Prospect Heights Police Department, Chicago Police Department, Arlington Heights Police Department, West Chicago Police Department, Cook County Sheriff's Department, and McHenry County Narcotics Task Force; in Texas: Texas Department of Safety, CID Mt. Pleasant, Mt. Pleasant Police Department; in Missouri: Missouri State Highway Patrol, Audrain County Sheriff’s Department, East Central Drug Task Force; in Virginia: the Mecklenberg County Commonwealth Attorney’s Office and the Virginia State Police; and the Orange County Sheriff’s Office in North Carolina. Assistance was provided by the U.S. Attorney’s Offices in the Northern District of Illinois and the Eastern District of Virginia. The case is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
Trio Charged with Robbing Verizon Wireless Stores of Expensive Cellular PhonesRead the Press Release
PHILADELPHIA – An indictment, filed today, charges three Philadelphia men with robbing Verizon wireless stores of expensive cellular telephones for the purpose of reselling them and splitting the nearly $80,000 in proceeds, announced United States Attorney Zane David Memeger. Darryl Alston, 39, Rynell Bennett, 34, and Chamir Isaiah Lewis, 21, all of Philadelphia, are charged with committing Hobbs Act robbery. Alston is charged in all five robberies: on October 11, 2014, at 421 West Germantown Pike, Plymouth Meeting, Pennsylvania; on January 20, 2015, at 625 West Chester Pike, Haverford Township, Pennsylvania; on January 21, 2015, at 301 Spring Garden Street, Philadelphia; and on January 27, 2015, at 1692 Clements Bridge Road, Deptford Township, New Jersey; and on April 13, 2015, at 322 South Street, Philadelphia. Bennett is charged with one robbery and Lewis is charged with two robberies.
According to the indictment, the three defendants robbed the stores by researching the businesses over the Internet; entered the businesses wearing dark clothing, gloves, scarf, ski mask, baseball hats, and a hooded sweatshirt to conceal their identities; used a firearm and a BB handgun to terrorize the owners and employees of the businesses, tied the victims’ hands with duct tape and rope, in order to prevent them from interfering with the robbery and to enforce compliance with their demands; and stole approximately $78,906 in cellular phones. Alston and Bennett are also both charged with using and carrying a firearm during and in relation to a crime of violence and felon in possession of a firearm.
If convicted of all charges, Alston and Bennett each faces a minimum mandatory sentence of seven years in prison, in addition to an advisory sentencing guideline range of 188 to 235 months for Alston, and 360 months to life imprisonment for Bennett. Lewis faces a sentencing guideline range of 151 to 188 months imprisonment.
The case was investigated by the FBI with assistance from the Philadelphia Police Department, the Plymouth Meeting Police Department, the Haverford Township Police Department, and the Deptford Township, New Jersey Police Department. It is being prosecuted by Assistant United States Attorney Jose Arteaga.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sovereign Citizen from Utah Convicted in Fraud SchemeRead the Press Release
PHILADELPHIA – A federal jury, yesterday, handed up guilty verdicts against Robert G. Wray, 75, of Torrey, Utah, on charges that he conspired with a Lehigh County doctor of osteopathy to defraud the Department of Health and Human Service and the Internal Revenue Service. The fraud scheme, in which Wray participated, amounted to hundreds of thousands of dollars. Wray was found guilty of one count of conspiracy, 30 counts of wire fraud, one count of bankruptcy fraud, and one count of failure to appear.
Wray uses many different names for himself in an attempt to evade federal and other laws by arguing that he has not been properly identified in legal documents. Wray also claims to be a “sovereign” citizen who is not subject to federal laws, including laws regarding personal income taxation. Wray conspired with Dr. Dennis Erik Fluck Von Kiel, of Macungie, Pennsylvania, to help Dr. Von Kiel evade a six-figure debt he owed to HHS for unpaid medical school loans and avoid paying personal income taxes to the IRS. Dr. Von Kiel pleaded guilty and was sentenced, on April 20, 2015, to 41 months in prison. Von Kiel was also ordered to pay restitution to the IRS in the amount of $256,920, to the Department of Health and Human Services in the amount of $262,303.11 to the Department of Education in the amount of $36,314, forfeiture of $165,988.29, and a $1,325 special assessment.
Wray faces a possible advisory sentencing guideline range of 51 to 78 months in prison, three years of supervised release, restitution and a $3,300 special assessment. A sentencing hearing is scheduled for September 2, 2015.
The case was investigated by the IRS Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
Delaware County Man Indicted on Child Pornography ChargesRead the Press Release
Tariq Haitham Alkhudayri, 28, of Glen Mills, Pennsylvania, was charged today by indictment with one count each of distribution of child pornography, receipt of child pornography, and possession of child pornography announced United States Attorney Zane David Memeger. The indictment alleges that on or about August and November 2014, Alkhudayri distributed, received, and possessed images of child pornography.
If convicted the defendant faces a maximum possible sentence of 50 years in prison and a mandatory minimum sentence of five years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Criminal Investigation Division of Delaware County and the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment Charges Pair with CounterfeitingRead the Press Release
PHILADELPHIA - Nathaniel Sloh, 25, of Darby, PA, and Kevin “Prince” Kpou, 22, of Philadelphia, PA, were charged by indictment, unsealed today, with one count of conspiracy, three counts of manufacturing counterfeit currency, and two counts of dealing in counterfeit currency, announced United States Attorney Zane David Memeger. The indictment alleges that from August 2014 to November 2014, Sloh and Kpou conspired to manufacture and sell counterfeit currency.
If convicted, Sloh and Kpou, each face a maximum possible sentence of 105 years in prison, three years of supervised release, a fine of up to $1.5 million, and a special assessment of $600.
The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Charged in Fraud Scheme on Local UniversityRead the Press Release
PHILADELPHIA - Kenneth Kapikian, 57, of Wayne, Pennsylvania, and Dennis Gagliardi, 60, of Chester Springs, Pennsylvania, were charged today by Information with a scheme to defraud the University of Pennsylvania. The defendants are each charged with seven counts of wire fraud and one count of conspiracy to commit money laundering, announced United States Attorney Zane David Memeger.
According to the Information, the defendants, engaged in a scheme to fraudulently obtain monies from the University of Pennsylvania by falsely billing the University for services the defendants never provided to the Sheraton University City Hotel. The Information further alleges the defendants directed vendors of the Sheraton University City Hotel to inflate their invoices submitted to the hotel and then pay them the fraudulently inflated amounts as kickbacks.
If convicted, each defendant faces a maximum possible sentence of 160 years in prison, a three-year period of supervised release, a fine of up to $500,000, and an $800 special assessment.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacist's Drug Conviction Results in 63 Month Prison TermRead the Press Release
PHILADELPHIA - Bevis Vanterpool, 37, of Philadelphia, was sentenced today to 63 months in prison for conspiring to distribute oxycodone, a Schedule II narcotic controlled substance, and money laundering. Between May 2010 and December 19, 2011, Vanterpool owned and operated TraceMark Pharmacy at 4839 North Broad Street in Philadelphia, where he was the sole pharmacist. During that period, Vanterpool accepted and filled nearly 5,000 fraudulent prescriptions for at least 447,761 mg. of oxycodone. Vanterpool knew that the prescriptions were forged and fraudulent, as they had not been written by physicians. Vanterpool laundered at least $1,180,000 in proceeds from his illegal activity.
In addition to the prison term, U.S. District Court Judge Mary A. McLaughlin ordered a fine of $1,000, a special assessment of $200, and three years of supervised release to follow imprisonment.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration Diversion Unit, and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Mary E. Crawley.
University Professor Charged in Wire Fraud SchemeRead the Press Release
PHILADELPHIA – Xiaoxing Xi, 47, of Penn Valley, PA, was charged by indictment, unsealed today, with four counts of wire fraud in an alleged scheme involving the exploitation of technology for the benefit of third parties in China. Xi, a naturalized U.S. citizen and a native of the People’s Republic of China, is a world-renowned expert in the field of magnesium diboride thin film superconducting technology. The fraud, it is alleged, was an effort to assist Chinese entities in becoming world leaders of the superconductivity field.
The charges were announced today by United States Attorney Zane David Memeger, and FBI Special Agent-in-Charge Edward J. Hanko.
The indictment alleges that, in 2002, Xi participated in China’s 863 Program, which was a Chinese government program intended to boost high-technology innovation and development in China. Thereafter, in 2002 to 2003, the indictment alleges that Xi took a sabbatical from his university position and worked with a U.S. company in the field of thin film superconductivity research. During his tenure at the company, individuals there invented a piece of technology which revolutionized the field of superconducting magnesium diboride thin film growth. The indictment alleges that, starting in January 2004, Xi made efforts to obtain the technology from the company. The indictment further alleges that Xi applied for and was awarded a U.S. Defense Department grant to finance his purchase of the device for research relevant to the Department of Defense. In January 2006, Xi obtained the device for 12 months subject to an agreement that he not reproduce, sell, transfer or otherwise distribute the device or any copies of the device to any third party. The indictment alleges that Xi signed this agreement as part of a scheme to defraud the company into providing him the technology, so that he could provide it to entities in China and assist those entities in further exploitation and use of the technology. The indictment further alleges that Xi repeatedly reproduced, sold, transferred, distributed, and otherwise shared the device with, and exploited it for the benefit of, government entities and other third parties in China. It is further alleged that, in exchange for his efforts, Xi repeatedly sought lucrative and prestigious appointments in China.
According to the indictment, Xi’s emails include a communication on May 14, 2010, to an associate in China, confirming the delivery of certain technology to a laboratory in China; and three emails to separate associates in China, in June 2010 and December 2010, in which Xi offers to build a world-class thin film laboratory.
If convicted the defendant faces a maximum possible sentence of 80 years in prison, three years of supervised release, a fine of up to $1 million, and a $400 special assessment.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Woman Sentenced for Fraud on FEMARead the Press Release
Celeste Palmer, 54, of Philadelphia, PA, was sentenced today to a day in custody followed by three years supervised release, with the first four months of supervised release to be served in a halfway house, and the next six months to be served on house arrest, for scheming to receive disaster relief assistance from the Federal Emergency Management Agency (FEMA), when she was not entitled to receive those benefits. Palmer pleaded guilty to one count of wire fraud on December 1, 2014.
After Hurricane Irene came through the Philadelphia area on August 26, 2011, Palmer made fraudulent claims to FEMA for disaster assistance, which Palmer supported with falsified rent receipts and leases. Palmer’s scheme led FEMA to award her disaster rental assistance in the total amount of $14,487, to which Palmer knew she was not entitled.
The case was investigated by the Department of Homeland Security’s Office of the Inspector General and was prosecuted by Assistant United States Attorney Mary E. Crawley.
Philadelphia Man Indicted on Gun ChargeRead the Press Release
PHILADELPHIA – Daniel Shank, 39, of Philadelphia, was charged today by indictment with possession of a firearm and ammunition by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, up to lifetime supervised release, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department. It is being prosecuted by Special Assistant United States Attorney Jordan Strauss.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Robbing Metro PCS StoresRead the Press Release
PHILADELPHIA - Edwin Jimerson, 24, of Philadelphia, PA, was charged today by indictment with three robberies at Metro PCS stores in Philadelphia, in April of 2015, announced United States Attorney Zane David Memeger. Jimerson is charged with robbery which interfered with interstate commerce and brandishing, using and carrying a firearm during and in relation to a crime of violence. According to the indictment, on April 3, 2015, Jimerson robbed the Metro PCS at 6342 Rising Sun Avenue, of approximately $905; on April 6, 2015, Jimerson robbed the Metro PCS at 1414 Point Breeze Avenue, of approximately $1500; and on April 8, 2015, Jimerson robbed the Metro PCS at 7219 Frankford Avenue, of approximately $200.
If convicted of all charges, Jimerson defendant faces a mandatory minimum of sentenced of 57 years in prison up to life, up to five years of supervised release, a possible fine, a special assessment of $600, restitution, and forfeiture of the firearm and ammunition.
This case was investigated by the Federal Bureau of Investigation, the 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.
Defendant Charged with Robbing Four Banks in One WeekRead the Press Release
PHILADELPHIA – Richard Cooper, 37, of Philadelphia, was indicted today on four counts of bank robbery, announced United States Attorney Zane David Memeger. The indictment alleges that Cooper robbed a TD Bank, located at 6635 Frankford Avenue, on April 11, 2015; alleges he robbed a Citizens Bank, located at 7327 Frankford Avenue, on April 13, 2015; alleges he robbed a TD Bank, located at 2267 East Butler Street, on April 15, 2015; and alleges he robbed TD Bank, located at 6635 Frankford Avenue, on April 17, 2015. The defendant faces a maximum possible sentence of up to 80 years in prison, up to 3 years of supervised release, up to $1,000,000 in fines, and $400 in special assessments.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jason Bologna.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Additional Sex Trafficking Charges Filed Against Allentown ManRead the Press Release
PHILADELPHIA - A superseding indictment was filed May 14, 2015 charging Corderro Cody, 27, of Allentown, PA, four additional counts, three additional counts of sex trafficking by force, fraud, or coercion, or attempt, and one count of sex trafficking of a minor. Cody was originally indicted on October 30, 2014, on charges of conspiracy to commit sex trafficking by force, fraud, or coercion, four counts of sex trafficking by force, fraud, or coercion, and conspiracy to transport individuals both intrastate and interstate for the purpose of prostitution.
The superseding indictment alleges that 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.
If convicted, the defendant faces a a mandatory minimum prison term of 15 years up to a maximum of life, a fine of up to $2.5 million, a mandatory minimum five years supervised release up to lifetime supervised release, and a $1,000 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.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Southampton Man Charged with Wire FraudRead the Press Release
PHILADELPHIA - Thomas Luther, 49 of Southampton, Pennsylvania was charged today by Information with wire fraud, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a three-year period of supervised release, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.