Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Husband and Wife Members of Sports Betting Ring SentencedRead the Press Release
PHILADELPHIA – Joseph and Anna Rose Vitelli, of Conshohocken, PA, were sentenced today for their roles in a Racketeering conspiracy involving the Mastronardo Bookmaking Organization. Joseph Vitelli, 71, was sentenced to five months in prison and three years of supervised release, with the first five months served on house arrest. His wife, Anna Rose, 67, was sentenced to five months in prison and three years of supervised release, with the first five months served on house arrest. Harry Murray, 62, of Boca Raton, FL, was also sentenced today for his role in the Racketeering conspiracy. Murray was sentenced to eight months in prison and two years of supervised release, with the first eight months served on house arrest. U.S. District Court Judge Jan E. DuBois handed down the sentences.
The Mastronardo Bookmaking Organization was a multi-million dollar sports betting operation with bettors throughout the U.S. At its peak, the organization had more than 1,000 bettors and was generating millions of dollars a year. The Vitellis and Murray were among 15 defendants charged by indictment with Racketeering conspiracy in the case. All 15 of those defendants pleaded guilty prior to trial. The government will forfeit approximately $3.7 million as a result of the guilty pleas in this case.
Joseph Vitelli and Anna Rose Vitelli owned J & A Check Cashing in Philadelphia. From 2005–2010, J & A Check Cashing laundered over $500,000 of checks to assist the Mastronardo Bookmaking Organization. And, in 2005 and 2006, the couple allowed the Mastronardo Bookmaking Organization to use a second floor office to run the illegal gambling business.
Murray was a bookmaker in Florida. He pleaded guilty to his role in three separate money laundering conspiracies, including the use of J & A Check Cashing to launder gambling proceeds. In March 2010, Joseph V. Mastronardo, Jr., in a conversation with Murray, commented “Well times like this I’m happy I’m a bookmaker,” to which Murray responded, “Me too.”
Between January 1, 2005 and January 1, 2011, the organization utilized internet websites and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing, and other sporting events. Residents of Costa Rica staffed the internet and telephone sites. Members of the organization used telephone, Skype, email, text messaging, and in-person communication to take bets and collect or deliver payments that ranged from $1,000 to more than $100,000.
Prior to today’s hearings, four other defendants had been sentenced. Joseph Vito Mastronardo, Jr., was sentenced to 20 months in prison and a $100,000 fine. His son, Joseph F. Mastronardo, was sentenced was sentenced to five months in prison, three years of supervised release, with the first five months served on house arrest, and a $5,000 fine. His brother, John Vito Mastronardo, was sentenced to nine months in prison, three years of supervised release, with the first five months served on house arrest, and a $5,000 fine. An associate, Eric Woehlcke, was sentenced to eight months in prison, three years of supervised release, with the first eight months served on house arrest, and a $3,000 fine.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, the Montgomery County Detective Bureau, and the Montgomery County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna.
Former FBI Agent Pleads Guilty to Obstructing Justice, Falsifying Records, and Possessing HeroinRead the Press Release
PHILADELPHIA - Matthew Lowry, 33, of Upper Marlboro, Maryland, pleaded guilty today, in U.S. District Court in the District of Columbia, to crimes arising out of his tampering with substantial quantities of drug evidence while working as a Special Agent with the Federal Bureau of Investigation (“FBI”). Lowry pleaded guilty to 20 counts of obstruction of justice, 18 counts of falsification of records, 13 counts of conversion of property, and 13 counts of possession of heroin. U.S. District Court Judge Thomas F. Hogan scheduled a sentencing hearing for June 29, 2015. Lowry faces at least 87 months in prison under the advisory guideline range calculated by the government.
Lowry was assigned to the Washington, D.C. Field Office (“WFO”), and was a member of the Cross-Border Task Force (“CBTF”). He participated in the undercover purchase of heroin and, in lieu of turning the heroin into evidence and documenting its seizure, Lowry ingested the heroin. He also tampered with heroin evidence seized during several of his investigations.
The FBI referred this matter to the Department of Justice Office of the Inspector General, which initiated the investigation. Because Lowry’s investigations, as an agent, occurred within the District of Columbia and the districts surrounding it, those offices have been recused by the Department of Justice. The case was investigated by the Department of Justice Office of the Inspector General, with assistance from the Federal Bureau of Investigation as requested by the OIG. It is being prosecuted by Assistant United States Attorneys Kevin R. Brenner and Maureen McCartney.
Ambulance Company Co-Owner Sentenced to Six Years for FraudRead the Press Release
PHILADELPHIA – Nazariy Kmet, 37, of Jamison, PA, a co-owner and the President of Life Support Corporation (Life Support), was sentenced today to 72 months in prison, for an extensive health care fraud scheme. The defendant pleaded guilty to health care fraud conspiracy and paying kickbacks. The company, Life Support, which is now defunct, had been located in the Feasterville-Trevose area and had been incorporated in 2010.
The defendant owned and operated Life Support, an ambulance company that transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The defendant, or others acting on his behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendant and his employees knew that the patients could be transported safely by other means and that many of them were able to walk. The defendant paid kickbacks to patients so that the patients would continue to be transported by Life Support, as opposed to any other ambulance company. The defendant billed for the ambulance services as if those services were medically necessary and, as a result of the fraudulent billing, the Medicare program paid more than $1.9 million and Highmark, Inc. paid an additional amount in excess of $150,000 for this inappropriate method of transportation.
In addition to the prison term, U.S. District Court Judge Nitza I. Quinones Alejandro ordered restitution of $1,912,526.32 to Medicare; restitution of $150,938.78 to Highmark, Inc.; a money judgment of $1,912,526.32; three years of supervised release to follow imprisonment, and forfeiture of vehicles. The defendant could also be excluded from participating in federal health care programs. He must surrender to begin serving his prison term on May 18, 2015.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Trio Charged in Four Armed Robberies in PhiladelphiaRead the Press Release
PHILADELPHIA - Mikel Smith, 25, Curtis Cotton, 47, and Wesley Thomas, 36, all of Philadelphia, PA, were charged today by indictment with four robberies which interfered with interstate commerce and related firearm charges, announced United States Attorney Zane David Memeger. According to the indictment, the defendants robbed Grace Mini Market, at 2339 W. Somerset Street, Philadelphia, on February 3, 2015; Nunez Grocery, at 617 W. York Street, Philadelphia, on February 3, 2015; New Almonte Mini Market, located at 2001 W. Spencer Street, Philadelphia, on February 4, 2015; and Rodriguez Deli, at 5766 Colgate Street, Philadelphia, on February 5, 2015. It is further alleged that in each robbery, the defendants brandished a handgun. Smith is also charged with possession of a firearm by a convicted felon.
If convicted of the charges, each defendant faces a mandatory minimum sentenced of 82 years in prison with a maximum sentence of life, up to five years of supervised release, a possible fine, an $800 special assessment, and restitution.
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.
Philadelphia Resident Charged with Illegal Reentry After DeportationRead the Press Release
PHILADELPHIA - Jose Nelio Silvestre-Ortega, 40, of Philadelphia, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about February 27, 2015, Silvestre-Ortega, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about September 29, 2011.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Immigration and Customs Enforcement 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.
Philadelphia Man Charged with Straw Purchasing GunsRead the Press Release
PHILADELPHIA – Robert Alton Stukes, 22, of Philadelphia, PA, was charged today by indictment with three counts of making false statements to a firearms dealer, announced United States Attorney Zane David Memeger. According to the indictment, on three separate occasions - January 15, 2014, January 17, 2014, and March 7, 2014 - Stukes straw purchased guns from Delaware Valley Sports Center, Inc., located at 101 Geiger Road in Philadelphia, PA.
The indictment alleges that Stukes bought a rifle and three handguns for Anthony Andrews, charged elsewhere, who was a convicted felon, having been convicted in a court of the Commonwealth of Pennsylvania.
If convicted of all counts, Stukes faces a possible advisory sentencing guideline range of at least 21 months in prison, with a maximum statutory sentence of 25 years in prison, a fine of up to $250,000, a $400 special assessment, and three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. 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.
Philadelphia Man Charged with Robbing Car Title OfficeRead the Press Release
PHILADELPHIA - Jahmal Williams, 27, of Philadelphia, Pennsylvania was charged today by indictment with robbery which interferes with interstate commerce, brandishing a firearm during and in relation to a crime of violence, and possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. The charges arise from the defendant’s gunpoint robbery of Tag It Tag Agency, a vehicle registration and title transfer company, located at 4973 Lancaster Avenue, in Philadelphia, Pennsylvania.
If convicted the defendant faces a maximum possible sentence of life imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment Alleges Four Men Committed Hobbs Act RobberyRead the Press Release
PHILADELPHIA – Jibri Cunningham, 27, of Sharon Hill, PA, Tajeldin Cunningham, 28, Samar Taylor, 26, and Lavell Carter, 22, all of Philadelphia, were charged today by indictment with Hobbs Act Robbery and a gun offense, announced United States Attorney Zane David Memeger. According to the indictment, on December 27, 2013, the defendants robbed the owner of H&Y Royal Jewelers, located at 2437 South 23rd Street, in Philadelphia. The indictment alleges that the defendants stole money from the owner and his family using guns.
If convicted of both charges, each defendant faces a mandatory term of 84 months in prison in addition to the following possible advisory sentencing guideline ranges: Jibri Cunningham, 63 to 84 months in prison; Tajeldin Cunningham, 30 to 51 months in prison; Samuel Taylor, 46 to 78 months in prison; and Lavell Carter, 37 to 63 months in prison; plus possible fines, supervised release, and a special assessment of $200.
The case was investigated by the FBI, the United States Marshal Service, Lower Gwynedd Township Police, Montgomery County Police Department, and White Marsh Police Department and is being prosecuted by Assistant United States Attorney Jennifer C. Barry.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Native of Dominican Republic Charged in Gun CaseRead the Press Release
PHILADELPHIA - Amin De Castro, 39, of Philadelphia, PA was charged today by Indictment with being an illegal alien in possession of a firearm, announced United States Attorney Zane David Memeger. The indictment alleges that on or about September 22, 2014, De Castro, an alien, and native and citizen of the Dominican Republic, was found in the United States in possession of a .380 caliber firearm.
If convicted the defendant faces a maximum possible sentence of ten years imprisonment.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations ("ERO") and is being prosecuted by Assistant United States Attorney Virgil B. Walker.
Indictment Charges Two with Using Phony Concert Promotions to Scam InvestorsRead the Press Release
PHILADELPHIA – Marc Hubbard, 46, of Cornelius, North Carolina, and Franklin Green, 45, of Washington, DC, were charged by indictment, unsealed today, in a conspiracy to defraud victims who thought they were investing in concert promotions. The defendants are each charged with one count of conspiracy and seven counts of wire fraud, announced United States Attorney Zane David Memeger. The fraud scheme involved approximately $2 million.
Hubbard was president of Sports Dimensions, Inc. (“SDI”) which purported to specialize in concert promotions and nightclub management, and was also president of Castle Entertainment which purported to specialize in nightclub management. Green, a lawyer in Washington, DC, was formerly a lawyer in Philadelphia, PA.
According to the indictment, Hubbard portrayed himself and SDI as highly successful concert promoters and falsely represented approximately $14,277,068 in ticket sales from July 2006 to January 10, 2008. He allegedly promised investors an approximate return of 25-30% on their short-term investments with SDI. Green was Hubbard’s attorney and allegedly negotiated or assisted in the negotiation of the contracts with Hubbard’s investors. Hubbard allegedly told investors that their funds were protected by a $10 million surety bond which was offered as collateral on most of the investors’ contracts but he did not tell them that the surety bond was bogus. It is further alleged that Hubbard provided investors with false documentation of his own financial solvency as well as SDI’s and Castle’s.
According to the indictment, instead of using the investors’ funds for concert promotions, Hubbard used the money to pay earlier investors and to pay his personal and business expenses. In total, it is alleged that investors gave Hubbard approximately $2,125,000 to invest and only received approximately $326,500 in return. Hubbard allegedly took at least $1,798,500 from his victims and, of that amount, Green took approximately $333,000.
If convicted, the defendants each face a maximum possible statutory sentence of 20 years in prison with a possible advisory sentencing guideline range of 33 to 57 months in prison, restitution, a fine of up to $250,000, an $800 special assessment, and three years of supervised release. The indictment also contains a notice of forfeiture for $2,125,000.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jennifer C. Barry.
Philadelphia Woman Charged with Stealing Dead Husband's Retirement BenefitsRead the Press Release
PHILADELPHIA - Shirley Goldwire, 68, of Philadelphia, Pennsylvania, was charged by information with two counts of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant received retirement benefits intended for her husband, after her husband’s death in July 1998 until the defendant’s fraud was discovered in 2012. Additionally, the defendant is alleged to have also stolen money intended for a friend of her ex-husband, who was also deceased at the time of the defendant’s husband’s death. The defendant’s alleged actions resulted in a loss to the government of approximately $264,021.
If convicted, the defendant faces a maximum possible sentence of 20 years in prison, a three‑year period of supervised release, restitution to the government of $264,021, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former FBI Agent Charged with Obstructing Justice, Falsifying Records and Possessing HeroinRead the Press Release
A Maryland man was charged today in the District of Columbia with crimes arising out of his tampering with substantial quantities of drug evidence while working as a Special Agent with the Federal Bureau of Investigation (FBI), announced U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania. The 64-count information charges Matthew Lowry with 20 counts of obstruction of justice, 18 counts of falsification of records, 13 counts of conversion of property, and 13 counts of possession of heroin.
Matthew Lowry, 33, of Upper Marlboro, Maryland, was assigned to the Washington, D.C. Field Office (WFO), and was a member of the Cross-Border Task Force (CBTF). As a member of the CBTF, the defendant participated in several large-scale investigations that resulted in numerous seizures of significant quantities of narcotics, including heroin. According to the information, in 2013 and 2014, the defendant tampered with heroin evidence seized during several of his investigations. As those investigations occurred within the District of Columbia and the districts surrounding it, those offices have been recused by the Department of Justice, and the prosecution is being conducted by the U.S. Attorney’s Office of the Eastern District of Pennsylvania.
In several instances, it is alleged that the defendant went to the WFO’s Evidence Control Center (ECC) and removed seized heroin from evidence, writing on a chain of custody record a false explanation for his taking of the evidence. The information alleges that over a period of several weeks or months, the defendant kept the heroin in his car and periodically ingested it. Before returning the heroin to the ECC or bringing it to a laboratory for testing, the defendant allegedly added to the heroin a measured amount of a cutting agent, either the supplement Creatine or the laxative Purelax, in order to account for the weight discrepancy resulting from his illegal usage; placed the altered heroin into a new evidence bag, on which he placed a new sticker signifying that the evidence bag had been sealed; copied the content written on the original sealing sticker to the new sealing sticker, forging the names or signatures of FBI agents who purportedly witnessed his sealing of the evidence; peeled off a barcode sticker from the original evidence bag and applied it to the new bag; and disposed of the original evidence bag and sealing sticker.
The defendant also participated in many undercover, controlled purchases of heroin from targets in his investigations. Following several of these transactions, the defendant, rather than check the heroin into evidence as required, is alleged to have kept the heroin in his car for a period of several weeks or months, during which he periodically ingested it. Before checking the heroin into the ECC, it is alleged that the defendant added a cutting agent to account for the weight discrepancy resulting from his ingesting the heroin; placed sealing stickers on evidence bags and filled out all requested information except for the seizure and sealing dates, which he left blank; requested that another agent, who had no knowledge of the defendant’s improper motives, sign as the witnessing official the undated sealing stickers; and wrote on the sealing stickers the accurate date on which the drugs were seized but falsely indicated that the evidence was sealed that same day.
Additionally, on one occasion, the defendant participated in an undercover, controlled purchase of heroin from a target, and in lieu of turning the heroin into evidence and documenting its seizure, the defendant allegedly ingested the heroin and never turned it into evidence.
The FBI referred this matter to the Department of Justice Office of the Inspector General (DOJ-OIG), which initiated the investigation. The investigation has not identified any criminal conduct by other agents
If convicted, the defendant faces at least 87 months in prison under the advisory guideline range calculated by the government, three years of supervised release, a fine of up to $16 million, and a $6,400 special assessment.
The case was investigated by the DOJ-OIG, with assistance from the FBI as requested by the DOJ-OIG. The case is being prosecuted by Assistant U.S. Attorneys Kevin R. Brenner and Maureen McCartney.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lowry Information
Philadelphia Man Charged in Prescription Fraud SchemeRead the Press Release
PHILADELPHIA - Raymond Rysheem E. Starr, 21, of Philadelphia, PA was charged today by indictment with possession of a firearm by a convicted felon and possession of oxycodone, announced United States Attorney Zane David Memeger.
According to the indictment, Starr obtained identifying information and Keystone First account information of a Medicaid beneficiary and used that information to visit a physician and obtain prescriptions for oxycodone, cyclobenzaprine and ibuprofen. Because there was no co-pay, the pharmacies sent claims for payment to Keystone First which paid the pharmacies.
If convicted, Starr faces a maximum possible sentence of 11 years in prison, three years of supervised release and a fine of up to $500,000.
The case was investigated by the United States Postal Inspection Service, United States Secret Service and Federal Bureau of Investigation, with the assistance of the Philadelphia Police Department, Springfield Township, Montgomery County Police Department, Abington Police Department and the Bensalem Police Department. It is being prosecuted by Assistant United States Attorneys K.T. Newton and Yvonne Osirim.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Traffic Court Judge Sentenced for Lying to the FBIRead the Press Release
PHILADELPHIA – Willie Singletary, 33, of Philadelphia, was sentenced today to 20 months in prison for lying to the FBI when questioned about ticket fixing at the former Philadelphia Traffic Court. A federal jury found Singletary guilty of the charge in July 2014 following a trial. Three of Singletary’s co-defendants – Michael Lowry, Robert Mulgrew, and Thomasine Tynes – were convicted of committing perjury before the federal grand jury; and co-defendants H. Warren Hogeland, Kenneth Miller, Fortunato Perri, William Hird, and Henry P. Alfano pleaded guilty prior to trial.
In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered one year of supervised release, a fine of $1,500, and a special assessment of $100.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Anthony J. Wzorek.
Defense Attorneys Held in Contempt for Violating Protective OrderRead the Press Release
Following a hearing before United States Magistrate Judge Timothy R. Rice, the Honorable Juan R. Sanchez today held attorneys J. Michael Farrell and Stephen P. Patrizio in civil contempt of court for providing discovery disks to their clients, contrary to a protective order entered by Judge Sanchez in United States v. Whitfield, Parnell, et al., Criminal No. 12-418, announced United States Attorney Zane David Memeger. Attorneys Farrell and Patrizio, and the government, agreed in writing to the contempt sanctions which the Court then imposed after considering the terms of the agreement.
In the case of United States v. Whitfield, Parnell, et al., Mr. Farrell was retained to represent Robert Lamar Whitfield, and Mr. Patrizio was appointed to represent Kenneth Parnell. Defendants Whitfield and Parnell were charged with conspiracy, robbery, and cocaine distribution offenses. The discovery in the case included videos taken by an undercover agent, which disclosed the identities of both the undercover agent and a confidential informant. To protect those identities, the government filed a request for, and the Court granted, a protective order, prohibiting counsel from duplicating the discovery or providing copies to defendants who were in custody awaiting trial. Contrary to the terms of the protective order, attorneys Farrell and Patrizio provided multiple disks of discovery to their clients, including the disks containing the videos recorded by the undercover officer. Ultimately, one of those videos was provided by one of their clients to a Philadelphia television news station, and was played during a television news broadcast.
The attorneys have asserted that this dissemination was inadvertent and not done with willful intent to violate the Court’s protective order. Nonetheless, they have taken full responsibility for having violated the Court’s order. For disclosing this discovery in violation of the Court’s protective order, attorneys Farrell and Patrizio were found in civil contempt of court and ordered to pay $5,000 each. This sum serves both as a penalty for the attorneys’ violation and to induce compliance with the Court’s protective orders in the future.
The United States Attorney’s Office recognizes its obligation to protect victims, agents, and witnesses while providing discovery to defendants and their counsel. To honor these obligations, this office will continue to seek protective orders that limit disseminating discovery materials, and will pursue appropriate sanctions against those individuals, including attorneys, who violate protective orders.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was handled by Assistant U.S. Attorney Arlene Fisk.
Philadelphia Store Owners Charged with Defrauding Government Food Assistance ProgramRead the Press Release
PHILADELPHIA - Farhan Ali Abu Siam, 42, and Mohammed Abuawada, 26, both of Philadelphia, were charged yesterday by indictment in a conspiracy to defraud a government assistance program, announced United States Attorney Zane David Memeger. The defendants are charged with conspiracy to commit fraud against the United States Department of Agriculture (USDA)’s Supplemental Nutrition Assistance Program (SNAP), formerly known as the federal Food Stamp program.
Abu Siam and Abuawada owned and operated S&S Farmer’s Market, a retail grocery store, now defunct, that was located at 2722 Germantown Avenue, in Philadelphia. According to the indictment, the defendants trafficked SNAP benefits by purchasing those benefits from customers of S&S Farmer’s Market in exchange for cash, which is illegal. It is further alleged that from June 2012 until March 2013, as a result of their trafficking activities, the defendants sought and received redemption of more than $1 million in SNAP benefits from USDA.
If convicted, each defendant faces a substantial period of incarceration, restitution to the government, three years of supervised release and possible fines.
The case was investigated by the United States Department of Agriculture Office of Inspector General and U.S. Immigration and Customs Enforcemen Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Mary E. Crawley.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Parochial Vicar Indicted on Child Exploitation ChargesRead the Press Release
PHILADELPHIA – Mark Haynes, 56, of West Chester, PA, was indicted on March 12, 2015, on charges of child exploitation, announced United States Attorney Zane David Memeger. Haynes, a former parochial Vicar, is charged with 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.
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.”
If convicted of all charges, 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.
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. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Woman Charged with Concealing Child's Death to Continue Receiving BenefitsRead the Press Release
PHILADELPHIA - Nakia Calicat, 38, of Philadelphia, PA, was charged by indictment, unsealed today, with concealing the death of her child in order to continue receiving Supplemental Security Income payments for her deceased daughter, announced United States Attorney Zane David Memeger. Calicat is charged with ten counts of wire fraud, one count of theft of government money, two counts of false statements, and one count of Social Security representative payee fraud.
Calicat gave birth to a child in December 2006 and filed for SSI benefits in March 2007. The child died in July of 2010 but the Social Security Administration (“SSA”) did not learn of the death until August of 2013. SSA sent notice to Calicat that the benefits for her child would be terminated. In October 2013, the indictment alleges that Calicat told an SSA employee that her child was still alive. In August 2014, Calicat spoke to a Special Agent with the Social Security Administration Office of Inspector General and, again, allegedly lied about her daughter’s death. According to the indictment, between July 2010 and August 2014, Calicat illegally received Social Security benefits on behalf of her decease child defrauding the government of approximately $26,224.
If convicted, the defendant faces a maximum possible statutory sentence of up to 225 years in prison, a three‑year period of supervised release, a $3.5 million fine, restitution of $26,224 and a $1,400 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Man Sentenced for Taking Minor Across State Lines for SexRead the Press Release
Louay Shaman, 32, of Cliffside Heights, New Jersey, was sentenced on March 13, 2015, to eight years in prison for traveling with purpose of having illicit sexual conduct with a minor. Shaman pleaded guilty to the charge on January 6, 2014.
Shaman met the then-14-year old victim on an Internet dating site called “Are You Interested.” He conversed with her via the Internet two days before driving to her home near Allentown, Pennsylvania, meeting her for the first time, driving her back to New Jersey, and having sex with her in the car.
In addition to the prison term, U.S. District Court Judge James Knoll Gardner ordered 10 years of supervised release, forfeiture of the defendant’s BMW, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and a Pennsylvania local police department. It was prosecuted by Assistant United States Attorney Albert S. Glenn.
West Reading Man Charged with Illegal Reentry After DeportationRead the Press Release
Hostyn Manuel Perez-Corza, a/k/a “Christian Moises Perez-Corza,” 34, of West Reading, PA, was charged yesterday by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about July 22, 2014, Perez-Corza, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about January 14, 2010 and February 26, 2014.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Doctor Charged with Running Pill Mill and Attempting to Burn It DownRead the Press Release
PHILADELPHIA – Dr. Mudassar Sharif, 40, of Bernards Township, NJ, was charged yesterday by indictment with illegally dispensing prescription pills through Garden State Primary Care, which he owned, in Kearny, NJ, announced United States Attorney Zane David Memeger. Sharif is also charged with trying to set fire to the building that houses the medical practice.
According to the indictment, on February 12, 2015, Sharif knowingly dispensed and distributed, outside the usual course of professional practice and for no legitimate medical purpose, a mixture and substance containing a detectable amount of oxycodone. According to a criminal complaint, Sharif has been providing medically unnecessary prescriptions to a Cooperating Witness (CW#1) since November of 2012 when Sharif traveled to CW#1’s residence to sell CW#1 a dog. Sharif did not perform any medical examination before writing the prescription. Sharif allegedly began providing oxycodone prescriptions to CW#1, once a month, for $500 for each prescription. Other than on two occasions, Sharif allegedly traveled to Philadelphia to give the prescriptions to CW#1. It is further alleged that Sharif wrote the prescriptions in five or six names provided by CW#1 and eventually began to sell oxycodone pills to CW#1 in addition to the prescriptions. According to the criminal complaint, Sharif currently charges $15 per pill and $3,000 for prescriptions.
According to the criminal complaint, Sharif began talking to CW#l about burning down Sharif's office building, located at 711 Kearney Avenue, in Kearney, NJ, in order to destroy his files because he was having an issue with Medicare or Medicaid. Sharif allegedly agreed that in exchange for CW#l burning down his office, CW#l would not have to pay Sharif for 300 pills he had already provided to CW#l. Sharif allegedly told CW#l that no one lived in his building and no one would be in the office when CW#l committed the arson. According to the criminal complaint, Sharif claimed that a disabled woman who lived near his office would be fine and, later, when CW#l commented that the whole building would go up in flames and the lady would be dead, Sharif did not protest.
If convicted of all charges, Sharif faces a mandatory minimum term of 60 months in prison with an advisory sentencing guideline range of 108 to 135 months in prison, plus fines of up to $1.25 million, at least three years of supervised release up to a lifetime of supervised release.
This case was investigated by the FBI’s Health Care Fraud Task Force with the assistance of the Philadelphia Police Department and the Office of Inspector General for Health and Human Services. It is being prosecuted by Assistant United States Attorneys Jose Arteaga and Mary Kay Costello.
Berks County Man Charged with Drug and Gun CrimesRead the Press Release
Jermaine McClary, 39, of Reading, PA, was charged yesterday by indictment with drug trafficking and firearms violations, announced United States Attorney Zane David Memeger and Berks County District Attorney John T. Adams.
According to the indictment, McClary possessed and intended to distribute, in Reading, PA, heroin and cocaine. It is further alleged that he possessed a .38 caliber revolver in furtherance of a drug trafficking crime, and possessed both that gun and a .40 caliber semiautomatic pistol as a convicted felon.
If convicted of all charges, the defendant faces a maximum possible sentence of life in prison, with a mandatory minimum of five years, six years supervised release, a fine of up to $2,750,000, and a $500 special assessment.
The case was investigated by the Reading Police department, the Berks County District Attorney’s Office, U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Joseph A. LaBar and Special Assistant United States Attorney Jesse C. Leisawitz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Non-Profit Executive Pleads Guilty to Stealing Funds Intended to Help the HomelessRead the Press Release
PHILADELPHIA - Nathaniel E. Robinson, 62, of Philadelphia, plead guilty today to using funds intended to help the homeless to pay for his own personal and living expenses. Robinson was the Chief Program Officer at SELF, Inc. He was charged with theft from a program receiving federal funds.
Between 2006 and 2010, Robinson used his corporate American Express credit card at SELF to charge personal expenses. The government alleges he stole approximately $154,050 and reimbursed a total of $2,594.30 before his employment was terminated. Robinson used the corporate American Express card to pay for trips to Alabama, including airfare, lodging, and restaurants; lodging in Orlando, Florida, and Philadelphia; car rentals; car repairs; admission tickets to Six Flags Great Adventure and Clementon Amusement Park; Amtrak tickets; purchases at Walmart and Filene’s Basement; and restaurant charges in Washington, D.C. and Baltimore, MD. Today, Robinson admitted that he stole at least $5,000 of SELF’s funds for personal use.
U.S. District Court Judge Berle M. Schiller scheduled a sentencing hearing for June 8, 2015. Robinson faces a maximum possible sentence of 10 years in prison, restitution, up to three years of supervised release, and a fine of up to $250,000.
The case was investigated jointly by the FBI and the Philadelphia Office of the Inspector General, and was initiated by a tip to the Inspector General’s Office. It is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
Child Exploitation Charges Filed Against Morgantown ManRead the Press Release
PHILADELPHIA - Robert Wendell Landis, 30, of Morgantown, PA, was charged today by indictment with possession, receipt and production of child pornography and online enticement, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of life imprisonment, with a mandatory minimum of 15 years imprisonment, lifetime supervised release, a $1,250,000 fine and a $500 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Launches Review of 25 Restaurants for Compliance with Americans with Disabilities ActRead the Press Release
PHILADELPHIA – The Office of United States Attorney for the Eastern District of Pennsylvania has launched a review of 25 of Philadelphia’s most popular restaurants to determine if they are in compliance with the Americans With Disabilities Act of 1990 (the “ADA”), announced United States Attorney Zane David Memeger. The initiative is in accordance with the Government’s congressionally-mandated responsibility to review compliance with the ADA. It is not in response to any specific complaint against a restaurant.
As part of the review, restaurant owners are being asked to complete a Survey Form, supplied by the Government, pertaining to their restaurant’s accessibility. Investigators may then conduct on-site inspections to confirm survey responses and to evaluate compliance with federal ADA regulations. Owners and operators found to be non-compliant will have the option of entering into a Voluntary Compliance Agreement with the Government whereby they voluntarily agree to upgrade their facilities to meet ADA requirements. Owners and operators found to be engaging in a pattern or practice of discrimination, or that fail to enter Voluntary Compliance Agreements, may face a civil lawsuit brought by the Government and/or be subject to penalties, including monetary penalties and civil fines.
The U.S. Attorney’s Office objectively selected the restaurants for this compliance review using recent third party restaurant rankings in order to review 25 of Philadelphia’s most popular and frequented restaurants.
The ADA prohibits discrimination on the basis of disability by places of public accommodation, including restaurants, and requires places of public accommodation to be “designed, constructed, and altered in compliance with the accessibility standards established” by the ADA’s implementing regulations.
“People with disabilities who visit, work, or live in Philadelphia have the right to expect that all public accommodations in the city are accessible according to law,” said Memeger. “The Americans with Disabilities Act is an important civil rights law, and restaurant owners must comply with its accessibility provisions. We will take all reasonable steps within our power to ensure that any restaurants that fall short of compliance make the necessary changes, rather than face litigation.”
Pottstown Pair Charged in Attempted Bank RobberyRead the Press Release
James Garner, 30, and Ruben Marshall, 48, both of Pottstown, PA, were charged today with conspiracy to commit armed bank robbery, and possession of a firearm in furtherance of a crime of violence, announced United States Attorney Zane David Memeger. Garner is also charged with attempt to commit armed bank robbery.
According to the indictment, on February 6, 2015, Garner approached Person #1 about robbing the Apex Community Federal Credit Union in Stowe, PA. On February 10, 2015, Marshall allegedly met with Garner to discuss details of the robbery plan. The indictment further alleges that on February 12, 2015, Garner assembled the tools necessary to rob the bank - including masks, two-way radios, gloves, and a handgun - but was arrested that night by the FBI before he could complete the robbery the following morning, as planned.
If convicted, each defendant faces a maximum of life in prison, with a minimum mandatory sentence of five years in prison, a $250,000 fine and at least five years of supervised release.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Joseph A. LaBar.
Medicare Beneficiary Pleads Guilty to Receiving Kickbacks in Health Care MattersRead the Press Release
PHILADELPHIA – Craig Brown, 46, of Philadelphia, PA, pleaded guilty today to receiving kickbacks and making false statements in a health care matter, announced United States Attorney Zane David Memeger. The defendant faces a maximum possible sentence of 25 years in prison, three years of supervised release, a $1.25 million fine, a $500 special assessment, and an order of restitution. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for June 10, 2015.
In July 2010, Feda Kuran, charged elsewhere, began operating Brotherly Love Ambulance, Inc. with a co-schemer. In approximately May 2011, Craig Brown began receiving transport to dialysis by Brotherly Love, even though he could have been transported safely by means other than ambulance and was, therefore, not eligible for ambulance service under Medicare and Medicaid requirements. Shortly thereafter, Brown began transporting himself in his personal vehicle once more, but he permitted Brotherly Love to bill for the transports as though he was being transported by ambulance. Brown accepted monthly payments to induce him to continue to ride with Brotherly Love and, later, to induce him to allow Brotherly Love to bill for his transport even though he was driving himself. Brown was also given payments for referring others to Brotherly Love and for transporting other purported patients of Brotherly Love in his personal vehicle even though Brotherly Love was billing for ambulance transports for those individuals. In addition, Brown signed ambulance “run sheets” indicating that he was being transported by ambulance when, in fact, he was transporting himself to and from dialysis.
As a result of his actions and those of Brotherly Love, the Medicare program paid more than $18,000 in inappropriate bills. 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. 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 Paul W. Kaufman and Mary Crawley.
McNeil-PPC Inc. Pleads Guilty in Connection with Adulterated Infants' and Children's Liquid MedicationsRead the Press Release
PHILADELPHIA – McNeil-PPC Inc. pleaded guilty today to violating the federal Food, Drug and Cosmetic Act (FDCA) with regard to infants’ and children’s liquid medications, including Infants’ Tylenol, Children’s Tylenol and Children’s Motrin. McNeil, a wholly owned subsidiary of Johnson & Johnson, was charged with delivery for introduction into interstate commerce drugs that were deemed adulterated. It is a misdemeanor. The company will pay a criminal fine of $20 million and forfeit $5 million.
The guilty plea and resolution were announced today by First Assistant U.S. Attorney Louis D. Lappen, Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division, and Director George M. Karavetsos, with FDA’s Office of Criminal Investigations.
According to court documents, the OTC liquid drugs manufactured by McNeil at its Fort Washington facility were bottled on four lines of machinery dedicated to liquid formulations. On or about May 1, 2009, McNeil received a complaint from a consumer regarding the presence of “black specks in the liquid on the bottom of the bottle” of Infants’ Tylenol. The foreign material was later identified as including nickel/chromium-rich inclusions, which were not intended ingredients in this OTC liquid drug. In connection with receiving this consumer complaint, McNeil did not initiate or complete a Corrective Action Preventive Action (CAPA) plan in conformance with current Good Manufacturing Practices.
The information alleges other instances in which McNeil found metal particles in bottles of Infants’ Tylenol at its Fort Washington facility, but failed to initiate or complete a CAPA. According to the information, during a 2010 Inspection of McNeil’s Fort Washington facility, the U.S. Food and Drug Administration (FDA) asked McNeil for a list with all non-conformances for particles and the associated OTC drug batches that had occurred since an FDA inspection in 2009. As noted in the information, this document revealed 30 batches of OTC liquid drugs, including Infants’ Tylenol, Children’s Tylenol, and Children’s Motrin. During the 2010 inspection, the FDA asked McNeil for the CAPA plan covering the particles and foreign material found in the Infants’ and Children’s OTC drugs, and a McNeil employee confirmed that McNeil did not have such a CAPA plan.
On or about April 30, 2010, McNeil Consumer Health Care, a division of McNeil, in consultation with the FDA, announced that the company was recalling all lots of certain unexpired Infants’ and Children’s OTC drugs manufactured at McNeil’s Fort Washington facility and distributed in the United States and other countries around the world. McNeil’s recall included, but was not limited to, Infants’ and Children’s Tylenol and Infants’ and Children’s Motrin.
Under the law, a drug is adulterated if the methods used in, or the facilities and controls used for, the manufacture, processing, packing, labeling, holding and distribution of drugs and components were not in conformance with cGMP requirements for drugs. Drugs not manufactured, processed, packed, labeled, held and distributed in conformance with cGMP requirements are adulterated as a matter of federal law, without any showing of actual defect.
McNeil remains under a 2011 permanent injunction entered by the U.S. District Court in the Eastern District of Pennsylvania, requiring it to, among other things, make remedial measures before reopening its manufacturing facility in Fort Washington, Pennsylvania.
“The law requires that drugs be produced under the most rigorous of quality standards. When companies fail to exercise the vigilance that the law demands, they will held be accountable” said Lappen. “Drug companies should be aware that failing to adhere to good manufacturing practices subjects them to penalties and prosecution.”
“McNeil’s failure to comply with current good manufacturing practices is seriously troubling,” said Acting Assistant Attorney General Mizer. “The Department of Justice will continue to be aggressive in pursuing and punishing companies such as McNeil that disregard a process designed to assure quality medicines, especially OTC drugs for infants and children.”
“Drug quality – and especially with the medicines we give our children – is of paramount concern to the FDA. The FDA expects manufacturers to have systems in place that will quickly discover and correct problems with medical products before they enter the U.S. marketplace,” said Margaret A. Hamburg, M.D., Commissioner, U.S. Food and Drug Administration. “Today’s guilty plea holds accountable those corporations who risk jeopardizing the public health by not adhering to the high standards set for drug manufacturers.”
The case was investigated by the Food and Drug Administration Office of Criminal Investigations. It is being prosecuted jointly by Assistant U.S. Attorney Mary Beth Leahy and Jeffrey Steger, Assistant Director with the Department of Justice Civil Division’s Consumer Protection Branch. Assistance is being provided by Consumer Protection Branch Trial Attorney Kathryn Drenning and Associate Chief Counsel for Enforcement Laura Pawloski, with the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Leeward Islands Native Charged with Lying to Get Workplace CredentialsRead the Press Release
PHILADELPHIA - Earl R. Russell, a/k/a “Ernest Steve Russell,” a/k/a “Ernest Steve Benders,” 57, a native of Saint Kitts-Nevis, was charged today by superseding indictment with making a materially false statement in a TWIC application regarding his citizenship and gaining entry by false pretense into a secure area of a seaport, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of five years and six months of imprisonment, a fine of $255,000, and a special assessment of $110 and three years of supervised release.
The case was investigated by the United States Coast Guard Investigative Service and Immigration and Customs Enforcement of the United States Department of Homeland Security and is being prosecuted by Assistant United States Attorney Floyd J. Miller and Special Assistant United States Attorney Mark T. Sendek.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Armored Car Employee Convicted of TheftRead the Press Release
PHILADELPHIA – A federal jury, last night, returned guilty verdicts in the case of Tanika Victoria Little, 36, of Philadelphia, PA, who was charged with two counts of bank theft and one count of possession of a firearm with an obliterated, altered or removed serial number. A sentencing hearing is scheduled for June.
Little was an employee of Brink’s, Inc., a national armored truck company which delivered cash to banks, among other businesses. On February 15, 2011 and on March 1, 2011, Little came into possession of incorrectly routed bags of cash totaling approximately $110,000 in $20 denominations. Little failed to deliver the bags of cash to Bank of America's Drexel Hill branch and began making deposits into her personal bank accounts. Little, whose annual income from Brink=s was approximately $41,000 at the time, deposited approximately $41,840 in cash in $20 denominations into three different bank accounts between March 2, 2011 and June 1, 2011. On June 29, 2011, within an eight-hour period of time, Little purchased 27 money orders, totaling approximately $13,000, with cash from eight different retail establishments in South Philadelphia, PA. In addition, in 2011, Little reported that she had paid approximately $25,000 for exterior and interior home improvements in cash, including $2,000 for a remodeled bathroom, $4,300 for a remodeled kitchen, $8,500 for a remodeled basement, and $9,000 for rebricking of her home’s exterior.
Little faces an advisory sentencing guideline range of 30 to 37 months in prison, a fine of up to $2.1 million, a $300 special assessment, and up to five years of supervised release.
The case was investigated by United States Secret Service and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Anita Eve.
Doctor Charged with Passing Fraudulent PrescriptionsRead the Press Release
PHILADELPHIA – Dr. Cynthia Masso, 42, of Philadelphia, PA, was charged today by information with five counts of obtaining controlled substances by fraud, announced United States Attorney Zane David Memeger. Masso was a physician licensed in the Commonwealth of Pennsylvania and the State of New Jersey to practice medicine and was registered and authorized by the U.S. Drug Enforcement Administration (DEA) to write prescriptions for controlled substances for legitimate medical purposes within the scope of her professional medical practice.
According to the information, between January of 2010 and October of 2013, Masso wrote approximately 496 fraudulent prescriptions for oxycodone and oxycodone with acetaminophen in the names of various family members, in the name of another individual, and in the names of fictitious “patients,” in order to obtain quantities of those controlled substances. In no case were any family members aware of the writing of these prescriptions in their names. She then, allegedly, posed as a nurse named “Lisa Johns” in order to have the prescriptions filled at local pharmacies.
If convicted of all charges, the defendant faces a maximum possible sentence of of 20 years in prison, a $1.25 million fine, a maximum term of one year supervised release, and a $500 special assessment.
The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney James Pavlock.
Philadelphia Woman Admits She Exploited Six Year Old and InfantRead the Press Release
PHILADELPHIA - Christine Yoder, 32, of Philadelphia, PA, pleaded guilty today to charges in a case of child exploitation that involved the alleged sexual abuse of a six year old and a 16 month old. Yoder was charged with two counts of employing a child to produce images of the child engaged in sexually explicit conduct and two counts of distributing material involving the sexual exploitation of children. A sentencing hearing is scheduled for June 10, 2015.
In May of 2014, Yoder sent a photograph to an undercover FBI agent of a 6-year-old (“Minor #1”), which depicted that child engaging in sexually explicit conduct. Thereafter, Yoder offered to fly Minor #1 to Detroit for sexual activity. Yoder also produced pornographic photographs of a 16-month old.
Yoder faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison. She also faces a fine of up to $1 million, a special assessment of $400, and a mandatory minimum five-year term of supervised release up to a lifetime of supervised release.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by First Assistant United States Attorney Louis D. Lappen.
Montgomery County Man Gets Prison Term for Clean Air Act ViolationRead the Press Release
PHILADELPHIA - Anthony Biello II, 56, formerly of Ambler, Pennsylvania, was sentenced today to one year and one day in prison for violating the Clean Air Act. Biello failed to notify the City of Philadelphia’s Air Management Services division of the U.S. Environmental Protection Agency of the removal of asbestos-containing material from a former church located at 1133 Spring Garden Street in Philadelphia.
In addition to the prison term, United States District Court Judge Paul S. Diamond ordered a $100 fine, restitution to the City of Philadelphia of $12,000, a $100 special assessment and two years of supervised release. The court also ordered that the defendant not work in the asbestos removal industry during the period of supervised release.
“Asbestos must be removed and disposed of safely and legally,” said David G. McLeod, Jr., Special Agent in Charge of EPA's criminal enforcement program in the Middle Atlantic States. “There is no 'safe' level of exposure to asbestos. It is a serious threat to the general public's health and safety. Today's sentencing demonstrates that those who try to make money by breaking the law and putting others at potential risk will be vigorously prosecuted.”
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, with assistance from the City of Philadelphia’s Air Management Services office. The case was prosecuted by Special Assistant United States Attorneys Martin Harrell and Patricia C. Miller from the EPA.
Two Members of Sports Betting Ring Sentenced to Prison for RacketeeringRead the Press Release
PHILADELPHIA – Two members of the Mastronardo Bookmaking Organization, a multi-million dollar sports betting operation, were sentenced to prison today by U.S. District Court Judge Jan E. DuBois. John Vito Mastronardo, Jr., 59, of Boca Raton, Florida, was sentenced to nine months in prison, to be followed by three years of supervised release with the first 9 months on house arrest, and a $5,000 fine. He pleaded guilty, on February 6, 2014, to conspiring to participate in a racketeering enterprise (RICO), conducting an illegal gambling business, conducting three conspiracies to launder money, and transmitting wagering information. Joseph F. Mastronardo, 33, of Huntingdon Valley, Pennsylvania, was sentenced to five months in prison, to be followed by three years of supervised release with the first 5 months on house arrest, and a $5,000 fine. He pleaded guilty, on January 31, 2014, to conspiring to participate in a racketeering enterprise (RICO), conducting an illegal gambling business, conspiring to launder money, and aggravated structuring. Joseph F. Mastronardo is the son of Joseph Vito Mastronardo, Jr., who was the leader of the organization.
At its peak, the Mastronardo Bookmaking Organization had more than 1,000 bettors and was generating millions of dollars a year. Between January 1, 2005 and January 1, 2011, the organization utilized internet websites (www.betroma.com and www.betrose.com) and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing, and other sporting events. Residents of Costa Rica staffed the internet websites and answered the telephones. In 2006 and 2010, law enforcement seized over $2.1 million of cash that Joseph Vito Mastronardo, Jr., hid in and around his home, including in specially-built secret compartments and in PVC pipes that were buried in his backyard.
A total of 16 defendants were indicted in the case, 15 of whom were charged with conspiring to participate in a racketeering enterprise (RICO) and conducting an illegal gambling business. All 15 pleaded guilty. Charges against the 16th defendant, Joanna Mastronardo, will be dismissed. U.S. District Court Judge Jan E. DuBois has ordered the forfeiture of approximately $3.7 million in the case. Sentencing hearings are pending for 12 of the defendants.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, the Montgomery County Detective Bureau, and the Montgomery County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna and Department of Justice Trial Attorney Kelly Pearson.
Philadelphia Businessman Pleads Guilty in Corruption CaseRead the Press Release
PHILADELPHIA – Sam Kuttab, 55, of Wyncote, Pennsylvania, pleaded guilty today to participating in a scheme to have a Philadelphia Municipal Court Judge use his judicial position to influence the outcome of a small claims case in the Philadelphia Municipal Court, announced United States Attorney Zane David Memeger. Kuttab, a Philadelphia area businessman, pleaded guilty to an information charging him with one count of mail fraud.
According to documents filed in the case, on September 30, 2011, Kuttab notified former Philadelphia Municipal Court Judge Joseph Waters that he had a small claims case pending in the Municipal Court. Kuttab’s company, Donegal Investment Properties, was sued by another company, identified as Company B, for $2733 in unpaid fees for security services. According to the documents, Waters then used his judicial position to achieve an outcome favorable to Kuttab. Specifically, Waters called two other Municipal Court judges assigned to the case on different dates, explained his relationship with Kuttab, and asked them to rule in Kuttab’s favor. In September 2011, the Municipal Court Judge identified in the information as Judge #1 granted Kuttab’s company a continuance in the case over Company B’s objection after receiving Waters’ call. In November 2011, the Municipal Court Judge identified in the information as Judge #2 adjudicated the case in Kuttab’s favor after Waters called and said that Kuttab was “a friend of mine.” After losing the case, the plaintiff threatened to appeal the verdict, and Waters mediated a settlement in which Kuttab agreed to pay $600 to settle the case. After attorney fees, Company B received $400 rather than the $2733 for which he sued.
Kuttab admitted today that he and Donegal gained a secret advantage through a series of secret ex parte communications between Waters and the other Municipal Court judges, some of which were recorded in FBI wiretaps, and that he participated in the scheme with Waters to cause favorable rulings for Donegal.
In September 2014, Waters plead guilty for his role in fixing this case as well as fixing a criminal case conceived as part of an FBI sting operation. He was sentenced to 24 months in prison.
U.S. District Court Judge Juan R. Sanchez scheduled a sentencing hearing for a date in July 2015 to be determined. Kuttab faces a maximum statutory sentence of 20 years in prison, a fine of up to $250,000 and up to three years of supervised release.
The case was investigated by the FBI and is being prosecuted by Chief of the Public Corruption Unit Richard P. Barrett and Assistant United States Attorney Michelle L. Morgan.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Indicted on Gun and Drug ChargesRead the Press Release
PHILADELPHIA - Raymond Rysheem E. Starr, 21, of Philadelphia, PA was charged today by indictment with possession of a firearm by a convicted felon and possession of oxycodone, announced United States Attorney Zane David Memeger.
If convicted, Starr faces a maximum possible sentence of 11 years in prison, three years of supervised release and a fine of up to $500,000.
The case was investigated by the United States Postal Inspection Service, United States Secret Service and Federal Bureau of Investigation, with the assistance of the Philadelphia Police Department, Springfield Township, Montgomery County Police Department, Abington Police Department and the Bensalem Police Department. It is being prosecuted by Assistant United States Attorneys K.T. Newton and Yvonne Osirim.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Three Bank RobberiesRead the Press Release
PHILADELPHIA - Dion Jordan, 35, of Philadelphia, Pennsylvania was charged today by indictment with attempted bank robbery, bank robbery, armed bank robbery, and discharging a firearm during and in relation to a crime of violence, announced United States Attorney Zane David Memeger. The charges arise from an attempted robbery of Wells Fargo Bank, 8527 Germantown Avenue, Philadelphia, Pennsylvania, on or about June 2, 2014; a robbery of Wells Fargo Bank, 4275 County Line Road, Chalfont, Pennsylvania, on or about June 13, 2014; and an armed robbery of Wells Fargo Bank, 4275 County Line Road, Chalfont, Pennsylvania, on or about September 24, 2014.
If convicted the defendant faces a maximum possible sentence of life imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Bank RobberyRead the Press Release
PHILADELPHIA - Timothy Butler, 53, of Philadelphia, PA, was charged today by indictment with bank robbery, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Joseph A. LaBar.
Life Support Ambulance, Co-Owner, and Manager Sentenced for Health Care FraudRead the Press Release
PHILADELPHIA – Bogdan Kmet, 30, of Warminster, PA, an owner of Life Support Corporation, Rostislav Kmet, 26, of Philadelphia, a company manager, and Life Support, Inc., were sentenced today to 36 months in prison, 46 months in prison, and five years of probation, respectively, for an extensive health care fraud scheme. The defendants pleaded guilty to health care fraud and paying kickbacks. The company was located in the Feasterville-Trevose area and was incorporated in 2010. A second owner, Nazariy Kmet, 35, of Jamison, PA, is scheduled to be sentenced March 31, 2015.
The defendants operated an ambulance company that transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The defendants, or others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants and their employees knew that the patients could be transported safely by other means and that many of them were able to walk. The defendants were involved in paying kickbacks to patients so that the patients would continue to be transported by Life Support, as opposed to any other ambulance company. The defendants billed for the ambulance services as if those services were medically necessary and, as a result of the fraudulent billing, the Medicare program paid more than $1.9 million and Highmark, Inc. paid an additional amount in excess of $150,000 for this inappropriate method of transportation.
In addition to the prison terms, U.S. District Court Judge Nitza I. Quinones Alejandro ordered restitution of $1,912,526.32 to Medicare; restitution of $150,938.78 to Highmark, Inc.; a money judgment of $1,912,526.32; and forfeiture of vehicles. All defendants could be excluded from participating in federal health care programs.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
Judge Gives Restaurant Robber 35 1/2 Year Prison TermRead the Press Release
PHILADELPHIA - Ramon Martinez, 29, of Philadelphia, PA, was sentenced today to 35½ years in prison for armed robberies in Philadelphia and related firearm charges. All three robberies were committed in December of 2013 at Cosi, Inc. restaurants. On December 3, 2013, Martinez robbed the Cosi at 235 S. 15th Street, of approximately $1600; on December 9, 2013, he attempted to rob the Cosi at 140 S. 36th Street; and on December 24, 2013, he robbed the Cosi at 235 S. 15th Street, of approximately $2300. Martinez pleaded guilty on March 24, 2014.
In addition to the prison term, U.S. District Court Judge Legrome D. Davis ordered five years supervised release, a $2,000 fine, a $500 special assessment and $3,900 restitution.
This case was investigated by the Federal Bureau of Investigation, Philadelphia Police Department, and the Philadelphia District Attorney’s Office. It was prosecuted by Assistant United States Attorney Ewald Zittlau.
Medicare Beneficiary Pleads Guilty in Kickback Scheme Involving Ambulance Transport ServicesRead the Press Release
PHILADELPHIA – William Conner, 61, of Philadelphia, PA, pleaded guilty today to receiving kickbacks and making false statements to law enforcement officials in connection with unnecessary ambulance transportation services. Conner faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $1 million fine, a $400 special assessment, and an order of restitution. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for May 28, 2015.
In July 2010, Feda Kuran, charged elsewhere, began operating Brotherly Love Ambulance, Inc. with a co-schemer. Even though he could have been transported safely by other means and was, therefore, not eligible for ambulance service under Medicare and Medicaid requirements, Conner began using Brotherly Love for transportation to dialysis treatments. Conner accepted monthly payments from Kuran and others to induce him to continue to ride with Brotherly Love and, as a result of his actions and those of Brotherly Love, the Medicare program paid more than $55,000 in inappropriate bills. As a result of the overall scheme at Brotherly Love, the Medicare program paid more than $2 million in inappropriate bills. When interviewed by federal law enforcement officers about receiving payments, Conner lied, denying that he had received cash from Brotherly Love. 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 Matthew J.D. Hogan and Paul W. Kaufman.
Jury Finds Two More Brothers Guilty in Human Trafficking SchemeRead the Press Release
A jury today returned guilty verdicts against Mykhaylo Botsvynyuk, and his brother Yaroslav Botsvynyuk, a/k/a Yaroslav Churuk, both Ukrainian nationals living in Canada, on the charge of conspiracy to participate in a racketeering enterprise in connection with a human trafficking scheme. They face up to 20 years in prison. The defendants’ brothers, Omelyan and Stepan Botsvynyuk, were convicted at trial in October of 2011. A fifth brother, Dmytro Botsvynyuk, remains in Ukraine, a country that has not entered into an extradition treaty with the United States.
From the Fall of 2000 through the Spring of 2007, the defendants operated a human trafficking organization which smuggled young Ukrainian immigrants into the United States and then forced them to work for little or no pay. The defendants promised the victims they would earn $500 per month with free room and board by working for their organization. They smuggled the workers into the United States then put them to work as cleaning crews in retail stores, private homes, and office buildings without paying them. They used physical force, threats of force, sexual assault, and debt bondage to keep the victims in involuntary servitude. Even after some of the victims escaped, the defendants continued with their extortionist activities in order to recoup the organization’s investment in the workers. If direct threats failed and the workers did not return or make good on their debts, the Botsvynyuk brothers threatened violence to the workers’ families still residing in Ukraine. Some of the threats included threats to place the children of the workers, children who were still in Ukraine, into prostitution to work off the victims’ debts if the victims ran away.
Rather than bringing the workers to the United States legally, the Botsvynyuk Organization obtained tourist visas to Mexico and had operatives who coached the workers on how to enter the United States illegally. While some of the workers successfully entered the United States, others were taken into custody by U.S. immigration officials, where they remained in detention for almost two months. Once the victims were released, with immigration documents and summonses to appear for immigration hearings, the Botsvynyuk Organization transported them to Philadelphia, Pennsylvania, either by bus or by plane. The brothers then confiscated the immigration documents and summonses from the workers and put them to work cleaning large chain stores at night, such as Target, Acme, Best Buy and Walmart, as well as smaller stores. Throughout their employment with the brothers, the workers lived with up to five people in one room, slept on dirty mattresses on the floor, and were rarely, if ever, paid. None of the victims was paid what was promised and they were told that they had to continue working until their debts, usually $10,000 or more, were paid. Workers were allegedly struck and beaten, sometimes in the presence of others, if they attempted to quit or leave the employ of the Botsvynyuk brothers. One female worker was brutally raped by one of the coconspirators. After some workers escaped, Omelyan Botsvynyuk resorted to extorting the workers’ families in Ukraine, threatening them with harm if the workers did not return to work or pay their debts. In one instance, he threatened the mother of a victim that he would kidnap her younger son and send him back to her finger-by-finger if the victim did not return to work.
Omelyan Botsvynyuk was sentenced to life in prison plus 20 years and was ordered to pay restitution in the amount of $288,272.29; Stepan was sentenced to 20 years in prison and was ordered to pay restitution in the amount of $288,272.28.
The case was investigated by the Joint FBI Organized Crime/ICE Human Trafficking Alien Smuggling Task Force. Assistance was provided by Pennsylvania State Police, the Philadelphia Police Department, the U.S. Department of Labor Office of Inspector General, the Toronto Police Department, the German National Police, the Berlin State Police, the Ukraine Security Service, the US National Central Bureau, the Department of Justice Office of International Affairs, the FBI LEGAT’s Office in Kiev, Ukraine, and INTERPOL.
Indictment Charges Convicted Felon in Possession of A FirearmRead the Press Release
Domingo Vargas, 36, 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, three years of supervised release, a $250,000 fine, and a $100 special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
Additional Charges Filed Against Doctor in Pill Mill CaseRead the Press Release
William J. O’Brien III, 49 of Philadelphia was charged today by Superseding Indictment with 23 additional counts of illegally distributing oxycodone, methadone, and amphetamines, all Schedule II controlled substances, outside the usual course of professional practice and for no legitimate medical purpose, announced United States Attorney Zane David Memeger. According to the superseding indictment, O’Brien’s so-called Apatients@ could for a fee obtain prescriptions for these addictive and dangerous controlled substances without a physical examination or any other medical care or treatment. O’Brien typically charged customers $250 cash for the first appointment to buy prescriptions and $200 for each appointment to obtain refills.
On January 29, 2015, an indictment was unsealed charging O’Brien, a doctor of osteopathic medicine, and Angela Rongione, with one count of conspiracy to distribute controlled substances. In the same indictment, O’Brien was charged separately with 26 counts of illegally distributing Oxycodone and Xanax, a Schedule IV controlled substance, for selling prescriptions for these narcotics to a government cooperator and an undercover FBI agent. The counts charged in the superseding indictment are for additional “patients” to whom O’Brien allegedly sold prescriptions.
If convicted, the defendants face substantial prison terms and fines, and are subject to criminal forfeiture proceedings.
The case was investigated by the Federal Bureau of Investigation, FDA Office of Criminal Investigations, and the Department of Health and Human Services - Office of the Inspector General, and is being prosecuted by Assistant United States Attorney M. Beth Leahy.
Drug Charge Filed Against Philadelphia ManRead the Press Release
PHILADELPHIA - Johnny Santiago, 20, of Philadelphia, PA, was charged today by Information with one count of attempted possession with intent to distribute 500 grams or more of cocaine, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 40 years in prison with a mandatory minimum five year term, a fine of up to $5 million, at least four years of supervised release up to a lifetime of supervised release, and a $100 special assessment.
The case was investigated by United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
Mortgage Fraud Schemers Get 15 Year Prison TermsRead the Press Release
PHILADELPHIA – Walter Alston Brown, 47, of Providence Forge, Virginia, and Glen Allen, Virginia, and Cynthia Evette Brown, 53, of Philadelphia, PA, were each sentenced today to 180 months in prison for their roles in a multi-million dollar mortgage fraud scheme. Walter Brown was a mortgage broker with First Horizon Home Loans, Foxworth Inc., Carteret Mortgage, and Advantage Lending and was one of the four owners of KREW Settlement Services, a real estate settlement company. He was convicted on October 17, 2014 of conspiracy to commit loan and wire fraud, false statement in an FHA loan, loan fraud, and tax evasion. Cynthia Brown was convicted of conspiracy to commit loan and wire fraud, false statement in an FHA loan, loan fraud, and wire fraud. The two were among 17 defendants charged in the case.
In addition to the prison terms, U.S. District Court Judge Berle M. Schiller ordered Walter Brown to pay $7,213,123 in restitution to the victims of his fraud plus another $31,903 in restitution to the IRS; Cynthia Brown was ordered to pay $7,488,608.48 in restitution. Both defendants were also ordered to complete five years of supervised release.
Between May 2004 and February 2009, the conspirators inflated purchase prices on loan documents for more than 100 Philadelphia properties resulting in more than $20 million in fraudulent loan proceeds. The scheme involved identifying distressed properties to purchase, typically in the West Philadelphia area, recruiting “straw buyers” whose credit history and personal information were used to purchase the properties, obtaining mortgage loans, and taking title to the properties, when, in reality, the properties were owned and controlled by the defendants. Mortgage loan applications were then prepared in the names of the straw buyers containing a host of false information, including false purchase prices, false employment and income information, and false statements about the straw buyers living in the properties. Cynthia Brown falsely verified that many of the straw buyers worked for her employer, Unicco Service Company, when they did not. The defendants and their conspirators falsely prepared deeds and settlement statements (referred to as "Form HUD-1") – one for the seller that showed the actual agreed-upon purchase price and a false one for the lender that showed the grossly inflated purchase price. They also created false title insurance policies for the lenders.
After the loans funded, the seller was paid the agreed-upon purchase price, and the difference between the actual purchase price and the false purchase price quoted to the lender was shared with and distributed among the defendants.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Department of Housing and Urban Development’s Office of Inspector General. It was prosecuted by Assistant United States Attorney Michael S. Lowe.
Montgomery County Dental Practice Resolves Allegations of DiscriminationRead the Press Release
PHILADELPHIA – Dentex Dental Mobile, Inc. (“DDMI”), a Pennsylvania corporation located in Huntington Valley, has reached a settlement with the United States to resolve allegations that it refused to treat an HIV-positive patient in violation of the Americans with Disabilities Act (“ADA”).
As part of its business, DDMI owns and operates several dental clinics, both fixed and mobile, throughout the Philadelphia area. As a result of its investigation, the United States determined that a DDMI mobile clinic, stationed in Chester, PA, refused to treat a patient, who was previously treated at its mobile clinic and who had disclosed in paperwork at both visits his HIV status. The Office Manager allegedly referred the patient to an AIDS clinic for further assistance. According to the Americans with Disabilities Act, a healthcare provider cannot refer a patient with HIV or AIDS to another provider simply because the patient has HIV or AIDS.
As a result of the United States’ investigation, Dentex has agreed to implement a non-discrimination policy, conspicuously post that policy, and adequately train employees and contractors regarding the policy. The Agreement is in effect for two years.
This case was handled by Assistant United States Attorney Jacqueline C. Romero.
Indictment Charges Group of Six in Financial Fraud SchemeRead the Press Release
PHILADELPHIA - Aaron Henderson, 21, Muhammad Sadaat A. White, 22, Marcus Allen Ray, 25, Raymond Rysheem E. Starr, 21, Marcus Lee Jackson, 23, and Timothy Nathaniel, 25, all of Philadelphia, PA, were charged today by indictment with conspiracy, bank fraud, aggravated identity theft and aiding and abetting, announced United States Attorney Zane David Memeger.
According to the indictment, between May 30, 2013 and November 20, 2014, the defendants obtained the names, accounts numbers and personal identification numbers of bank customers. They and their co-conspirators allegedly used that information to deposit bad checks at various banks, quickly withdrawing funds from those accounts. It is further alleged that the defendants recruited and paid some account holders to open accounts at financial institutions and then turn over the account information so it could be used for the deposit of bad checks and the fraudulent withdrawal of funds.
If convicted of all charges, the defendants face the following maximum possible statutory sentences: Henderson, 39 years in prison; White, 101 years in prison; Ray, 45 years in prison; Starr, 133 years in prison; Jackson, 69 years in prison; Nathaniel, 69 years in prison; plus fines and supervised release.
The case was investigated by the U.S. Postal Inspection Service and the U.S. Secret Service with assistance from the Philadelphia Police Department, the Springfield Township (Montgomery County) Police Department, the Abington Police Department and the Bensalem Police Department and is being prosecuted by Assistant United States Attorneys K.T. Newton and Yvonne Osirim.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Woman Charged with Theft of Government FundsRead the Press Release
PHILADELPHIA - Barbaranne Siebert, 48, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for her mother, after her mother’s death in December 2010 until July 2013. The defendant’s alleged actions resulted in a loss to the government of approximately $44,788.20.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a 3‑year period of supervised release, restitution to the government of $44,788.20, 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 Amanda R. Reinitz.
Leader of Sports Betting Ring Sentenced to 20 Months for Racketeering and Related ChargesRead the Press Release
PHILADELPHIA – Joseph Vito Mastronardo, Jr., 64, of Meadowbrook, PA, was sentenced today to 20 months in prison, to be served in a Level IV Bureau of Prisons Medical Facility. The sentence follows his guilty plea on January 31, 2014, for conspiring to participate in a racketeering enterprise (RICO), conducting an illegal gambling business, conducting four conspiracies to launder money, interstate travel in aid of racketeering, transmitting wagering information, and aggravated structuring of cash deposits. The defendant was the leader of the Mastronardo Bookmaking Organization, a multi-million dollar sports betting operation with bettors throughout the U.S. In addition to the prison term, U.S. District Court Judge Jan E. DuBois ordered the forfeiture of approximately $3.7 million, a fine in the amount of $100,000, and three years of supervised release.
Mastronardo, Jr., was one of 16 defendants indicted in case, 15 of whom were charged with conspiring to participate in a racketeering enterprise (RICO) and conducting an illegal gambling business. All of Mastronardo, Jr.’s co-defendants pleaded guilty and are awaiting sentencing; charges against Joanna Mastronardo will be dismissed.
At its peak, the Mastronardo Bookmaking Organization had more than 1,000 bettors and was generating millions of dollars a year. Between January 1, 2005 and January 1, 2011, the organization utilized internet websites (www.betroma.com and www.betrose.com) and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing, and other sporting events. Residents of Costa Rica staffed the internet websites and answered the telephones. In 2006 and 2010, law enforcement seized over $2.1 million of cash that Mastronardo hid in and around his home, including in specially-built secret compartments and in PVC pipes that were buried in his backyard.
Joseph Vito Mastronardo, Jr., ran the organization by using the internet, telephone, Skype, e-mail, United States mail, and in-person communication. The Mastronardo Bookmaking Organization laundered the gambling proceeds by using a check cashing agency, two private bank accounts, and numerous international bank accounts. On occasion, Mastronardo, Jr., also provided instructions so that a losing bettor could pay a gambling debt through a charitable donation.
Other indicted defendants who pleaded guilty and are awaiting sentencing include: Mastronardo=s brother, John, who managed a number of bettors and collected gambling debts; Mastronardo’s son, Joseph F. Mastronardo, who worked as an office employee, collected debts, and performed other financial duties; Eric Woehlcke, who worked as an office employee, collected debts, and was a sub-agent; Joseph and Anna Rose Vitelli, who owned J & A Check Cashing, which was used to launder the gambling proceeds; and Patrick Tronoski, Schuyler Twaddle, Michael Loftus, and Ronald Gendrachi.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, the Montgomery County Detective Bureau, and the Montgomery County District Attorney=s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna and Department of Justice Trial Attorney Kelly Pearson.