Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Two More Ironworkers Plead GuiltyRead the Press Release
PHILADELPHIA- Two members of the Ironworkers Local 401 pleaded guilty today to their roles in incidents that caused destruction to construction sites. Daniel Hennigar, 54, of Philadelphia, pleaded guilty to maliciously damaging property by means of fire. James Zinn, 28, of Philadelphia, pleaded guilty to conspiracy to commit extortion which interferes with interstate commerce. U.S. District Court Judge Michael Baylson scheduled a sentencing hearing for Hennigar for January 28, 2015 and January 21, 2015, for Zinn.
On December 20, 2012, Hennigar drove two other ironworkers, James Walsh and William Gillin, to the Quaker Meetinghouse under construction. Walsh and Gillin used an acetylene torch and gasoline to cause significant damage to the construction site in retaliation for the contractor’s failure to hire union ironworkers.
Zinn admitted to his role in a series of incidents during which members of the union damaged non-union construction sites in an attempt to force non-union contractors to hire union ironworkers. Those incidents included $25,000 in damage to the Wallingford Elementary School construction site and $25,000 in damage at a Merion East Golf Course in Ardmore, PA.
Hennigar faces a five year mandatory minimum term of imprisonment. Each defendant faces a statutory maximum sentence of 20 years in prison, three years of supervised release, a $250,000 fine, a $100 special assessment, and possible restitution.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges Six New Jersey Residents in Multimillion-Dollar Mortgage Fraud SchemeRead the Press Release
PHILADELPHIA - An indictment was filed yesterday charging six people, including a couple and their daughter, in a wide-reaching mortgage fraud conspiracy in which the defendants allegedly stripped the equity from the homes of desperate homeowners facing foreclosure, announced United States Attorney Zane David Memeger. The scheme caused losses to mortgage lenders of approximately $3.8 million. Silver Buckman, 36, of Cherry Hill, NJ, her parents, Vincent Foxworth, 69, and Cynthia Foxworth, 63, of Turnersville, NJ, Danette Thomas, 52, of Pennsauken, NJ, Byron White, 44, of Pennsauken, NJ and Franklin Busi, 46 of Sicklerville, NJ, are charged with conspiracy to commit bank fraud and wire fraud. Some of the defendants are also charged with bank fraud and wire fraud.
According to the indictment, the defendants engaged in a scheme in which they offered to help financially-vulnerable individuals save their homes from foreclosure or obtain money from the equity in their homes and, instead, defrauded the homeowners and mortgage lenders. Buckman owned and operated Fresh Start Financial Services (“FSFS”), in Mount Laurel, NJ and was an employee of American Home Lending as well as a mortgage broker for American One Mortgage (“AOM”). Her father is an experienced Realtor.
Between October 2006 and November 2009, Buckman and her co-defendants allegedly targeted financially vulnerable homeowners and represented to them that they could improve their credit, save their homes from foreclosure, or provide them with money through Buckman’s lease buyback program. The homeowners were told that “investors” would be used to temporarily refinance their homes and that they could repurchase the homes in one year, or once they regained their financial footing. The defendants also allegedly induced the homeowners into signing documents related to the sale and lease of their homes by their representations that the homeowners would remain on the title to their homes, that the equity from their homes would be placed into an individual escrow account in their names, and that new mortgages would be paid from the escrow accounts to establish their timely payment histories.
According to the indictment, in order to carry out the scheme, Buckman recruited Vincent Foxworth and Cynthia Foxworth and others to be straw borrowers. White also recruited a straw borrower. Ultimately, Buckman and Busi submitted false financial and employment information about the straw borrowers to mortgage lenders. Once lenders agreed to fund the mortgage loans, Buckman and some of the other defendants allegedly prevented the homeowners from receiving the settlement proceeds and did not put money into escrow accounts for the homeowners. Instead, the defendants distributed the proceeds amongst themselves. Buckman used the majority of the proceeds due the homeowners to pay the fees due the straw borrowers, the down payments on behalf of the straw borrowers in subsequent transactions to further the scheme, and her personal expenses. She used only a fraction of the homeowners’ monies toward the payment of the mortgages obtained by the straw borrowers for the homeowners’ homes and thereby caused the loans to go into default.
If convicted, the defendants face an advisory sentencing guideline range of at least 87 to 108 months in prison plus restitution.
The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Anita Eve.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Ebay Exec Sentenced for Insider TradingRead the Press Release
PHILADELPHIA - Christopher Saridakis, 45, of Wilmington DE, was sentenced today to 15 months in prison for giving another person confidential information about eBay stock. Saridakis pleaded guilty on May 9, 2014 to securities fraud. He was a senior executive at GSI Commerce, Inc. (“GSIC”), when he provided material, non-public information regarding eBay’s pending acquisition of GSIC. In addition to the prison term, U.S. District Court Judge Stewart Dalzell ordered one year of supervised release, a $10,000 fine, and a $100 special assessment.
On March 20, 2011, Saridakis, who was privy to discussions of a merger, sent a series of text messages to a Confidential Witness (“CW1”) that began with the defendant asking if CW1 “...own[ed] our [GSIC] shares?” CW1 replied, “no, but it’s cheap.” This response led Saridakis to tell CW1 “you should.” CW1 responded with “ok,” to which Saridakis replied, “soon.” On March 22, 2011, following the receipt of the text messages, while in possession of the inside information, and knowing defendant Saridakis’ position as a senior executive at GSIC, CW1 purchased and caused to be purchased 25,000 shares of GSIC stock on margin for approximately $470,000. On June 20, 2011, CW1 received $737,500 in exchange for the 25,000 shares of GSIC, equating to an illicit profit of $260,304, as a result of the text messages. Saridakis also shared the same material non-public information with other individuals.
The case was investigated by the FBI. It was prosecuted by Assistant United States Attorney Joel D. Goldstein. Saridakis and others have been charged in a parallel civil matter by the Securities and Exchange Commission.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Two Additional Ironworkers Plead GuiltyRead the Press Release
PHILADELPHIA- Two members of the Ironworkers Local 401, Edward Sweeney and Shawn Bailey, pleaded guilty today in United States District Court before the Honorable Michael Baylson. Sentencing hearings have been scheduled for January 27, 2015 and February 2, 2015, respectively.
Edward Sweeney, 53, of Philadelphia, PA pleaded guilty to RICO conspiracy, maliciously damaging property by means of fire, use of fire to commit a felony, maliciously damaging property by means of fire, conspiracy to maliciously damage property by means of fire, and attempted maliciously damaging property by means of fire. At the time, Sweeney was a business agent for the Ironworkers Local 401 and participated in a series of incidents on behalf of that union as part of the plan by the defendants to force non-union contractors to hire union labor. Specifically, Sweeney admitted that he participated in 10 incidents of extortion or attempted extortion. Sweeney further admitted his involvement in the Quaker Meetinghouse arson, an arson on Grays Avenue in Philadelphia, and an attempted arson in Malvern, as well as other episodes, all of which were in retaliation for the contractors’ failure to hire union ironworkers.
Shawn Bailey, 34, of Philadelphia, PA pleaded guilty to Hobbs Act Extortion for his participation in an extortion of a non-union contractor working on a warehouse on Grays Avenue in Philadelphia.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bucks County Woman Charged with Embezzling from Levittown BusinessRead the Press Release
PHILADELPHIA - Joan Baranek, 57, of Yardley, PA, is charged by information, filed yesterday, with embezzling $830,504 from her employer, between 2006 and 2012, and not reporting that income on her tax return, announced United States Attorney Zane David Memeger. Baranek was a vice president for sales at Airgas Safety, Inc., a subsidiary of Airgas, Inc., based in Levittown, Pennsylvania. She is charged with mail fraud and filing a false income tax return.
Baranek was responsible for designing and managing a sales incentive program for telesales centers (call centers). She purchased gift cards and other award prizes with her personal American Express card, and then submitted expense reports to Airgas for reimbursement. In support of her expense reports, she attached invoices for the gift cards and award prizes to the expense reports. According to the information, between May 2006 and December 2012, Baranek altered invoices or even created fictitious invoices, which she attached to her expense reports so as to obtain reimbursement for alleged promotional expenses that she never incurred. It is alleged that Baranek submitted approximately 200 expense reports claiming a total of $1.8 million in promotional expenses; of these, approximately 121 of the reports contained altered, fictitious, or duplicate invoices in support of the expensed promotional items, for a total of approximately $830,504 of fraudulent expenses.
It is further alleged that Baranek willfully made and subscribed a United States income tax return for calendar year 2008, that reported her taxable income as $155,419, when her actual taxable income approximately $360,944.
If convicted the defendant faces a maximum possible sentence of 23 years’ imprisonment, a one-year period of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the FBI and IRS Criminal Investigations, and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An indictment, information or criminal complaint is an accusation and a defendant is presumed innocent unless and until proven guilty.
Click here to view the information.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Utah Man Charged with Assisting Lehigh County Doctor in Defrauding Government AgenciesRead the Press Release
Robert G. Wray, 75, of Torrey, Utah, was arrested Friday on charges that he conspired with a Lehigh County doctor of osteopathy to defraud the Department of Health and Human Service and the Internal Revenue Service, announced United States Attorney Zane David Memeger. The indictment alleges that the fraud scheme amounted to hundreds of thousands of dollars. Wray is charged with one count of conspiracy, thirty counts of wire fraud, and one count of bankruptcy fraud.
According to the indictment, Wray uses many different names for himself in an attempt to evade federal and other laws by arguing that he has not been properly identified in legal documents. Wray also claims to be a “sovereign” who is not subject to federal laws, including laws regarding personal income taxation. It is further alleged that Wray conspired with Dr. Dennis Erik Fluck Von Kiel, of Macungie, Pennsylvania, to help Dr. Von Kiel evade a six-figure debt he owed to HHS for unpaid medical school loans and avoid paying personal income taxes to the IRS. Dr. Von Kiel, charged separately, is scheduled for trial in December 2014.
If convicted of all charges, Wray faces a maximum possible sentence of 610 years’ in prison, three years of supervised release, a fine of up to $8 million, and a $3,200 special assessment.
The case was investigated by the IRS Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Two Florida Residents Charged in Investment SchemeRead the Press Release
Eric Mathe 42, of North Bay Village, Florida and Ashif Jiwa 55, of Miami, Florida were charged in by indictment, unsealed today, with wire fraud in an investment scheme, announced United States Attorney Zane David Memeger. The indictment alleges that between February 2009 and February 2010, Mathe and Jiwa defrauded investors located in the Eastern District of Pennsylvania and elsewhere, by making false representations of ownership of Federal Communication Commission (FCC) Low Powered Television (LPTV) construction permits and licenses to induce investments in Mathe’s now defunct Florida based company Vision Broadcast Network (VBN). Mathe and Jiwa are alleged to have defrauded investors out of at least $1,688,150.
If convicted, the defendants face a maximum sentence of 20 years= imprisonment, a three-year term of supervised release, a $250,000 fine, and a $100 special assessment.
The Securities and Exchange Commission has filed a related civil action against Mathe and Jiwa in Miami, Florida.
This case was investigated by the Federal Bureau of Investigation with assistance from the Miami Regional Office of the United States Securities and Exchange Commission. It is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with Theft of Government FundsRead the Press Release
Felix R. Pinero, 62, of Philadelphia, Pennsylvania, was charged today by Information with one count of theft of Government funds, and one count of social security fraud, announced United States Attorney Zane David Memeger. The information alleges that from in or about November 1986 to in or about August 2011, Felix R. Pinero implemented a scheme to defraud the Social Security Administration by concealing that he was working and later receiving disability benefits while simultaneously receiving additional disability benefits under a different name and social security number for a period of almost 25 years, resulting in total losses to the government of approximately $117,135.25.
If convicted the defendant faces a maximum possible sentence of fifteen years incarceration, a $500,000 fine, three years supervised release, and restitution of $117,135.25.
The case was investigated by the Social Security Administration’s Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to read the informationUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICT of PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictments Charge 40 Alleged Drug TraffickersRead the Press Release
Drug gang used Chester playground to stash drugs and guns
PHILADELPHIA – Federal, state, and local law enforcement, today, arrested more than 30 people on charges of distributing drugs in and around the city of Chester, PA. The operation targeted alleged members of the violent Rose and Upland Drug Trafficking Group (“DTG”) and coincided with the unsealing of 14 indictments charging 40 people. The group is charged with selling drugs, illegally carrying guns and stashing both drugs and guns in a neighborhood playground.
The main indictment is a 261-count superseding indictment that charges 22 of the 40 defendants with operating a drug market within the Rose and Upland neighborhood on the east side of Chester City. According to the indictment, William Dorsey ran the operation, sold multiple kilograms of cocaine, often in the form of crack, to members of the group and others. One of the group’s largest alleged cocaine and heroin suppliers, Paris Church, has been charged in five separate indictments alleging that he, along with others, distributed and attempted to obtain approximately 25 kilograms of cocaine for re-distribution.
The charges were announced today by United States Attorney Zane David Memeger, Delaware County District Attorney Jack Whelan, Drug Enforcement Administration Acting Special Agent-in-Charge Robert R. Niczyporowicz, FBI Special Agent-in-Charge Edward J. Hanko, and Chester Police Chief Joseph Bail.
According to the superseding indictment, the DTG was distributing cocaine, crack cocaine, and heroin to customers in their territory and elsewhere between September 2012 and 2014. Charged with Dorsey are: Donald Womack, Sr., Paris Church, Braheem Edwards, Naim Butler, Ronell Whitehead, Michael Lewis, Breon Burton, JaVaughn Anderson, Robert Duson, Spencer Payne, Satchel Johnson, Alonzo Jones, Jamear McGurn, Classie Mae Dorsey, Herman Purnell, Dondre Ellis, Erven Towers-Rolon, John Dennis, Charles Stansbury, Waali Shepherd, and Kareem York. The defendants are also charged with maintaining a drug house, possessing firearms in furtherance of drug trafficking crimes, and distributing cocaine, crack and heroin within 1,000 feet of area schools and a playground. Some of the defendants are also charged with being felons in possession of firearms. During the investigation, 15 firearms were recovered.
Several other individuals are charged in separate indictments with drug trafficking conspiracies and other drug distribution offenses. Included in those indictments are: Kareem Bannister, George King, Nathaniel Coles, Lamont Carter, Rafael Hunt-Irving, Michael Pinkney, Solomon Whitaker, Shmeca Melvin, Anthony Floyd (of North Carolina), Steven Miller (of Maryland), and Anthony Potter, Shawn Mills, Tiffany Beauford, Farud Gigetts, Avery Mosley, Al-Ghani Rasheed, Steven Crews, and LaQuan Allen.
According to the superseding indictment, members of the DTG who sold cocaine hid the drugs in various "stash" locations in order to avoid having drugs on them if they were stopped by police. Those stash locations included playgrounds, abandoned houses, alley ways, trash cans, mailboxes, windowsills, and other locations in the neighborhood. Members of the RUDTG controlled the drug sales in the Rose and Upland geographic territory and did not permit non-group members to sell drugs in that area. To protect their territory and drug trafficking activities, members routinely carried, and sometimes used, loaded firearms or had firearms available in hidden locations, including their stash locations.
“The people who live in the city of Chester, particularly in the area surrounding Rose and Upland Streets, deserve a break,” said Memeger. “They deserve better. And we will keep going back there until we release the choke hold these drug organizations have on that community. This is the third major multi–agency law enforcement initiative in that city and we will continue to commit the federal resources necessary to free the many good, hardworking citizens who call Chester home from violent drug traffickers.”
"Today, a major step was taken to make the City of Chester, PA a safer place” said DEA Acting Special Agent-in-Charge Bob R. Niczyporowicz. “The outstanding cooperation between the local, state and federal partners utilizing their resources led to the infiltration and dismantlement of this violent DTO, which had a stronghold on the streets of Chester. Taking the entire hierarchy of this organization off the streets should have a significant impact and help improve the safety and welfare of the residents of Chester.”
“These arrests dismantle an insidious drug trafficking organization that operated throughout the city for years and will make a significant dent in criminal activity and violence not only in Chester but in surrounding communities,” said District Attorney Jack Whelan. “This is an excellent example of collaboration among law enforcement that sends a clear message that we are continuing to aggressively work together to address the violent gang problems that communities like Chester have faced for too long.”
“Residents of a city blighted by violence often feel like law enforcement has just given up,” said FBI Special Agent-in-Charge Ed J. Hanko. “Well, that’s clearly not the case with the FBI, and all of the partners involved in today’s arrests. We’ll keep working to make Chester’s streets safer -- corner by corner, block by block."
“In my 43 years of police work, I’m most amazed by the good, old-fashioned, boots-on-the-ground law enforcement effort that achieved today’s result,” said Chester Police Chief Joseph Bail. “Running a close second is the collaborative focus among the local, state, and federal agencies, all in the name of making Chester a safer place.”
For information regarding the defendants, including potential sentences, see attached chart.
The government has given notice of intent to forfeit 15 firearms seized during the investigation, along with approximately $1.8 million proceeds derived from the crimes charged.
The case was investigated by the Delaware County Office of the District Attorney’s Criminal Investigation Division, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Chester Police Department, and the Pennsylvania State Police. Also providing substantial manpower and assistance in the arrests were agents from the United States Marshall Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Faithe Moore Taylor, Ashley K. Lunkenheimer, and A. Nicole Phillips.
Defendant Information
Click here to see indictments for: Dorsey,etal; Rasheed; Gigetts; Coles; Carter; Womack; Church,etal; Church,Womack; Potter; Mosley; Mills etal; Butler; Bannister; Allen
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Shire Pharmaceuticals LLC to Pay $56.5 Million to Resolve False Claims Act Allegations Relating to Marketing, PromotionRead the Press Release
Shire Pharmaceuticals LLC to Pay $56.5 Million to Resolve False Claims Act Allegations
Relating to Drug Marketing and Promotion PracticesPharmaceutical company Shire Pharmaceuticals LLC will pay $56.5 million to resolve allegations that it violated the False Claims Act as a result of its marketing and promotion of several drugs, the Justice Department announced today. Shire, located in Wayne, Pennsylvania, manufactures and sells pharmaceuticals, including Adderall XR, Vyvanse, and Daytrana, which are approved for the treatment of attention deficit hyperactivity disorder (ADHD), and Pentasa and Lialda, which are approved for the treatment of mild to moderate active ulcerative colitis.
“Marketing efforts that influence a doctor’s independent judgment can undermine the doctor-patient relationship and short-change the patient,” said Zane David Memeger, U.S. Attorney for the Eastern District of Pennsylvania. “Where children’s medication is concerned, it can interfere with a parent’s right to clear information regarding the risks to the safety and health of their child. Shire cooperated throughout this investigation and, in advance of this settlement, began to correct its marketing activities.”
“Patients and health care providers must receive accurate information about available prescription drugs so that they can make safe and informed treatment decisions,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Joyce R. Branda. “The Department of Justice will be vigilant to hold accountable pharmaceutical companies that provide misleading information regarding a drug’s safety or efficacy.”
The settlement resolves allegations that, between January 2004 and December 2007, Shire promoted Adderall XR for certain uses despite a lack of clinical data to support such claims and overstated the efficacy of Adderall XR, particularly relative to other ADHD drugs. Among the unsupported claims allegedly made by Shire was that Adderall XR was clinically superior to other ADHD drugs because it would “normalize” its recipients, rendering them indistinguishable from their non-ADHD peers. Shire allegedly stated that its competitors’ products could not achieve similar results, which the Justice Department contended was not shown in the clinical data Shire collected. Shire also marketed Adderall XR based on claims that Adderall XR would prevent poor academic performance, loss of employment, criminal behavior, traffic accidents, and sexually transmitted disease. In addition, Shire promoted Adderall XR for the treatment of conduct disorder, an indication not approved by the Food and Drug Administration (FDA).
The settlement further resolves allegations that, between February 2007 and September 2010, Shire sales representatives and other agents also allegedly made false and misleading statements about the efficacy and abuse liability of Vyvanse to state Medicaid formulary committees and to individual physicians. For example, one Shire medical science liaison allegedly told a state formulary board that Vyvanse “provides less abuse liability” than “every other long-acting release mechanism” on the market. No study Shire conducted concluded that Vyvanse was not abusable, and, as an amphetamine product, the Vyvanse label included an FDA-mandated black box warning for its potential for misuse and abuse. Shire also made unsupported claims that treatment with Vyvanse would prevent car accidents, divorce, being arrested, and unemployment.
Additionally, the settlement resolves allegations that, from April 2006 to September 2010, Shire representatives improperly marketed Daytrana, administered through a patch, as less abusable than traditional, pill-based medications. The settlement also resolves allegations that, for part of the foregoing periods, Shire representatives improperly made phone calls and drafted letters to state Medicaid authorities to assist physicians with the prior authorization process for prescriptions to induce these physicians to prescribe Daytrana and Vyvanse.
Finally, the settlement resolves allegations that, between January 2006 and June 2010, Shire sales representatives promoted Lialda and Pentasa for off-label uses not approved by the FDA and not covered by federal healthcare programs. Specifically, the government alleged that Shire promoted Lialda off-label for the prevention of colorectal cancer.
As a result of today’s $56.5 million settlement, the federal government will receive $35,713,965, and state Medicaid programs will receive $20,786,034. The Medicaid program is funded jointly by the federal and state governments. In addition, Shire has separately reached agreement with the U.S. Department of Health and Human Services (HHS) Office of the Inspector General on a Corporate Integrity Agreement, which will address the company’s future marketing efforts.
The allegations resolved by the settlement arose from a lawsuit filed by Dr. Gerardo Torres, a former Shire executive, and a separate lawsuit filed by Anita Hsieh, Kara Harris, and Ian Clark, former Shire sales representatives. The lawsuits were filed under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the government and to share in any recovery. The relator share payment will be $5.9 million.“Our agency will continue to hold drug companies responsible for seeking to boost profits using false and misleading claims about products, such as the powerful medications prescribed to children and other drugs at issue in this settlement. We entered into a Corporate Integrity Agreement with Shire that requires comprehensive compliance safeguards, oversight of Shire promotional activities, and compliance certifications from Shire’s Board of Directors and management,” said Chief Counsel to the HHS Inspector General Gregory E. Demske.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of HHS. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $20.5 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case in this district is being handled by Assistant United States Attorneys Paul W. Kaufman and David A. Degnan. The case was a cooperative effort among the U.S. Attorneys’ Offices for the Eastern District of Pennsylvania and the Northern District of Illinois, the Civil Division of the Department of Justice, the FDA’s Office of Criminal Investigations, and Office of the Inspector General for the Office of Personnel Management. The HHS Office of Counsel to the Inspector General, the HHS Office of the General Counsel-CMS Division, the FDA’s Office Chief Counsel, and the National Association of Medicaid Fraud Control Units also provided assistance.
The lawsuits are captioned United States ex rel. Torres v. Shire Specialty Pharmaceuticals, et al., No. 08-4795 (E.D. Pa.) and United States ex rel. Hsieh, Harris, and Clark v. Shire PLC, et al., No. 09-6994 (N.D. Ill.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Click here to read the settlement agreement.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Resident Charged with Illegal ReentryRead the Press Release
An indictment was unsealed today charging Eliazar Pineda-Castellano, 32, of Philadelphia, PA, with reentry after deportation and illegal alien in possession of firearm, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 12 years imprisonment, a three-year term of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”) and the Philadelphia Police Department. 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.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Municipal Court Judge Pleads Guilty in Corruption CaseRead the Press Release
PHILADELPHIA – Joseph C. Waters, Jr., 61, of Philadelphia, pleaded guilty today to using his judicial position to influence the outcome of two cases in the Philadelphia Municipal Court, announced United States Attorney Zane David Memeger. Waters, a former Philadelphia Municipal Court Judge, pleaded guilty to an information charging mail fraud and honest services wire fraud.
According to documents filed in the case, on September 30, 2011, Waters was asked by Person #1 – a politically active business owner – to use his judicial office to achieve a favorable outcome in a small claims case filed in Philadelphia Municipal Court against Person #1’s real estate management company. To that end, Waters called two other Municipal Court judges, assigned to the case on different dates, and asked them to rule in Person #1’s favor. A Municipal Court Judge identified in the information as Judge #2 ultimately adjudicated the case in favor of Person #1 after Waters told Judge #2 “he’s a friend of mine.” The information charges that Judge #2’s ruling in favor of Person #1’s company prevented the plaintiff in the small claims case, Company B, from collecting $2733 in unpaid fees owed to it for security services it delivered to Person #1’s company.
Waters admitted today that he gave Person #1 a secret advantage through a series of secret ex parte communications with other Municipal Court judges scheduled to hear the small claims case and used his position to cause favorable rulings for Person #1.
The information outlined a second scheme in which Waters used his position as a judge to facilitate a favorable outcome in a criminal firearms case. According to the information, Person #1 urged a witness cooperating with the government, “CW#1,” to contribute money to help pay down debts Waters had incurred while campaigning for a position on the Municipal Court. In January 2010, CW#1, gave Waters $1,000 in cash. The information charged that, in accepting the money, Waters told CW#1 that he would help CW#1 with future problems that CW#1 or CW#1’s friends may encounter in the court system. The information further alleged that between 2010 and 2012, CW#1 provided gifts and cash contributions to Waters that were not reported on Waters’ campaign finance reporting forms.
In May 2012, CW#1 asked Waters for his assistance with a firearms prosecution pending in the Municipal Court. CW#1 introduced Waters to an undercover agent (“UC#1”) as a business associate. CW#1 and UC#1 asked Waters to help UC #1’s “cousin” who had been arrested for felony possession of a firearm. On July 23, 2012, Waters called Judge #1 alerting Judge #1 to the preliminary hearing of a “friend” for the firearms charge and asked Judge #1 to “help him.” According to the information, at a July 24, 2012 preliminary hearing, Judge #1, without proper legal basis, reduced the felony firearms charge to a misdemeanor.
U.S. District Court Judge Juan R. Sanchez scheduled a sentencing hearing for January 22, 2015. Waters faces a maximum statutory sentence of 40 years in prison, a fine of up to $500,000 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 is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to read the information.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Two Additional Ironworkers Plead GuiltyRead the Press Release
PHILADELPHIA- Two members of the Ironworkers Local 401, James Walsh and Greg Sullivan, pleaded guilty today in United States District Court before the Honorable Michael Baylson.
James Walsh, 49, of Philadelphia, PA, pleaded guilty to RICO conspiracy, two counts of maliciously damaging property by means of fire, conspiracy to maliciously damage property by means of fire, two counts of use of fire to commit a felony, and attempted maliciously damaging property by means of fire. Walsh participated in a series of incidents on behalf of the Ironworkers Local 401 as part of the plan by the defendants to force non-union contractors to hire union labor. Specifically, Walsh admitted that he participated in the Quaker Meetinghouse arson, an arson on Grays Avenue in Philadelphia, and an attempted arson in Malvern as well as other episodes – all in retaliation for the contractors failure to hire union ironworkers. A sentencing hearing is scheduled for January 12, 2015. Walsh faces a total statutory maximum sentence of 110 years in prison, with a 15 year mandatory term, up to three years of supervised release, a fine of up to $1.5 million, and a $600 special assessment.
Greg Sullivan, 49, of Philadelphia, PA, pleaded guilty to conspiracy to maliciously damage property by means of fire, and Hobbs Act Extortion. Sullivan participated in the Grays Avenue arson and the attempted arson in Malvern. A sentencing hearing is scheduled for January 20, 2015. Sullivan faces a total maximum statutory sentence of 40 years in prison, up to three years of supervised release, a fine of up to $500,000, and a $200 special assessment.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Business CEO Pleads Guilty to Orchestrating A Ponzi Scheme and Tax ChargesRead the Press Release
PHILADELPHIA - Walter P. Lambert, a/k/a “Buddy,” 73, of Pen Argyl, PA, pleaded guilty today to 16 counts of mail fraud, five counts of wire fraud, and one count of interfering with the due administration of the Internal Revenue Service. A sentencing hearing is scheduled for December 29, 2014. Lambert was the CEO of Blue Mountain Consumer Discount Company (“BMCDC”), a consumer loan company based in Wind Gap, Pennsylvania. He defrauded individual lenders into loaning over $5 million to BMCDC by promising them a high rate of return (typically 9% or 10%), which Lambert usually paid to the investors in cash and failed to document with the IRS.
Lambert told the individual lenders that BMCDC would use the lenders’ funds to issue high-interest loans to consumers (at an interest rate of approximately 23% to 26%), thereby allowing BMCDC to make a profit of approximately 13% to 16% after paying the individual lenders their 10% return. However, rather than using the individual lenders’ loan principal payments to issue new consumer loans, Lambert used the funds for his own benefit, including: to pay BMCDC’s overhead (including his own salary); to purchase a life insurance policy for himself; to purchase personal items and collectibles for himself and his family members; to pay for gasoline and repairs to personal cars owned and used by himself, his family members, and the owner of BMCDC; and to issue loans to himself, his children, and other “preferred” consumers at a rate of 6% interest per year or less, rather than the annual interest rate of 23% to 26% that the individual lenders were quoted. Prior to borrowing the principal from the individual lenders, Lambert failed to disclose that their loan principal would be used as set forth above. In order to keep the scheme afloat, Lambert continued to borrow money from new individual lenders, lied to them about what he would do with the money, and used the new loans to pay the old lenders their interest, and to pay BMCDC’s salary and overhead expenses.
Lambert doctored the books of BMCDC, submitted false annual reports to the Pennsylvania Department of Banking, and falsified BMCDC’s tax returns. He withdrew hundreds of thousands of dollars from BMCDC for the benefit of himself that he caused to be recorded as “loans” to himself and his family members. In falsely issuing these “loans” to his family members, Lambert forged the signatures of his family members on the loan paperwork and the checks issued by BMCDC, and deposited the checks into his personal bank accounts. Lambert documented fictitious payments to deceive the Pennsylvania Department of Banking into believing that BMCDC was financially sound and operating appropriately.
Lambert also interfered with the due administration of the Internal Revenue Service by, among other things, overstating corporate income, understating BMCDC’s salaries and wages by failing to record cash salary payments to BMCDC employees, understating BMCDC’s interest expenses by failing to record interest payments to individual lenders that were made in cash, and submitting false tax returns for BMCDC. Lambert is also to have paid a 1% “kickback” to one of the individual lenders, Nicholas R. Sabatine, III, charged separately, a local area attorney who referred clients to Lambert. While Lambert paid Sabatine’s clients 9% interest by check and provided them and the IRS with accurate annual IRS Forms 1099, Lambert paid Sabatine his promised 1% kickback in the form of cash that neither Lambert nor Sabatine timely declared to the IRS.
Lambert allegedly caused over 20 individual lenders to sustain losses of approximately $2,269,503, and caused the IRS to sustain a tax loss of at least approximately $252,621 for tax years 2007 through 2009.
Lambert faces a possible advisory sentencing guideline range of 51 to 63 months in prison, up to a three-year period of supervised release, restitution to the IRS, a fine of up to $5.5 million fine, and a $2,200 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Darby Man Charged with Stealing from Veterans AffairsRead the Press Release
Isaac Bonner, 43, of Darby, Pennsylvania, was charged today by information with theft of public funds from the Department of Veterans Affairs (“VA”), announced United States Attorney Zane David Memeger. It is alleged that the defendant submitted fraudulent time sheets while he was assigned to the VA Medical Center in Philadelphia, and took compensation for nursing aide services that he had not rendered. The VA paid approximately $64,377 for such services that it never received.
If convicted, the defendant faces a maximum sentence of 10 years in prison, up to three years of supervised release, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the VA Office of Inspector General and is being prosecuted by Assistant United States Attorney M. Beth Leahy.
Click here to view the information.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Two Ironworkers Plead Guilty to RICO ChargesRead the Press Release
PHILADELPHIA- Two members of the Ironworkers Local 401, Francis Sean O’Donnell and William Gillin pleaded guilty today to RICO conspiracy, arson, and related charges in United States District Court before the Honorable Michael Baylson. Sentencing hearings are scheduled for January 13, 2015 for Francis Sean O’Donnell and for January 14, 2015 for William Gillin.
Francis Sean O’Donnell, 43, of Warminster, PA pleaded guilty to RICO conspiracy, conspiracy to maliciously damage property by means of fire, and attempted maliciously damaging property by means of fire. During the offense conduct, O’Donnell acted as a business agent for the Ironworkers Local 401 and participated in more than 10 extortions or attempted extortions with the intent to force non-union contractors to hire union labor. O’Donnell recruited other members of the Ironworkers Local 401, whom he called his “Shadow Gang,” to assist him in these crimes. If a contractor refused to hire union labor, O’Donnell and the “Shadow Gang” typically would enter a non-union construction site at night, use sledgehammers to destroy anchor bolts, and cause tens of thousands of dollars in damage.
William Gillin, 43, of Philadelphia, PA pleaded guilty to RICO conspiracy, maliciously damaging property by means of fire, use of fire to commit a felony, maliciously damaging property by means of fire, conspiracy to maliciously damage property by means of fire, and attempted maliciously damaging property by means of fire. Gillin participated in a series of incidents on behalf of the Ironworkers Local 401 as part of the plan by the defendants to force non-union contractors to hire union labor. Specifically, Gillin admitted that he participated in the Quaker Meetinghouse arson, an arson on Grays Avenue in Philadelphia, and an attempted arson in Malvern as well as other episodes – all in retaliation for the contractors failure to hire union ironworkers.
O’Donnell faces a statutory maximum sentence of 60 years in prison, with a five year mandatory minimum sentence, three years of supervised release, a $750,000 fine, and a $300 special assessment; Gillin faces a statutory maximum sentence of 110 years in prison, with a 15 year mandatory minimum sentence, three years of supervised release, a $1.5 million fine, and a $600 special assessment.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Kaboni Savage Soldier Sentenced to LifeRead the Press Release
PHILADELPHIA – Robert Merritt, 34, of Philadelphia, was sentenced today to life in prison for his role in the October 2004 firebombing that killed members of a federal witness’s family on the orders of drug kingpin Kaboni Savage. On May 13, 2013, a federal jury found Merritt guilty of conspiracy to participate in a long-term, large-scale violent drug trafficking enterprise (RICO conspiracy) and the murders of family members of a federal witness, Eugene Coleman. Six people, including four children, were killed in the arson on Oct. 9, 2004.
Merritt participated in the firebombing with his cousin, Lamont Lewis, who pleaded guilty for his role in the murders. They were members of Kaboni Savage’s drug trafficking organization. Savage was also convicted at the May 2013 trial and sentenced to death for 12 counts of murder in aid of racketeering. Co-defendants Kidada Savage and Steven Northington were also convicted at trial and sentenced to life in prison.
U.S. District Judge R. Barclay Surrick also ordered five years of supervised release and a $100 special assessment.
The case was investigated by the FBI, the Internal Revenue Service – Criminal Investigation Division, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation
It is being prosecuted by Assistant U.S. Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin of the Criminal Division’s Capital Case Section.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Kaboni Savage Soldier Sentenced to LifeRead the Press Release
PHILADELPHIA – Robert Merritt, 34, of Philadelphia, was sentenced today to life in prison for his role in the October 2004 firebombing that killed members of a federal witness’s family on the orders of drug kingpin Kaboni Savage. On May 13, 2013, a federal jury found Merritt guilty of conspiracy to participate in a long-term, large-scale violent drug trafficking enterprise (RICO conspiracy) and the murders of family members of a federal witness, Eugene Coleman. Six people, including four children, were killed in the arson on Oct. 9, 2004.
Merritt participated in the firebombing with his cousin, Lamont Lewis, who pleaded guilty for his role in the murders. They were members of Kaboni Savage’s drug trafficking organization. Savage was also convicted at the May 2013 trial and sentenced to death for 12 counts of murder in aid of racketeering. Co-defendants Kidada Savage and Steven Northington were also convicted at trial and sentenced to life in prison.
U.S. District Judge R. Barclay Surrick also ordered five years of supervised release and a $100 special assessment.
The case was investigated by the FBI, the Internal Revenue Service – Criminal Investigation Division, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation
It is being prosecuted by Assistant U.S. Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin of the Criminal Division’s Capital Case Section.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alleged Thief ChargedRead the Press Release
Kyle Jones, 25, in federal custody in Philadelphia was charged today by Information with conspiracy, bank fraud, and aggravated identity theft, announced United States Attorney Zane David Memeger. Jones was allegedly part of an illegal check cashing ring which stole identifications and checks from purses and wallets left in parked cars, often outside of gyms, parks, or athletic fields. According to the information, the thieves then impersonated the victims and cashed stolen fraudulent checks at banks using the drive-through teller lane and presented stolen identification. The ring stole more than $120,000.
If convicted, the defendant faces a maximum possible sentence of 37 years of in prison, five years of supervised release, a fine of up to $1.5 million, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the information.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Afghanistan Citizen Admits to Immigration FraudRead the Press Release
PHILADELPHIA - Hayatullah Dawari, 62, of Philadelphia, PA, pleaded guilty today to two counts of immigration fraud and was sentenced to two years in prison, which U.S. District Court Judge Stewart Dalzell suspended for immediate deportation.
Dawari is an Afghanistan citizen who became a lawful permanent resident of the United States on or about November 11, 2008, and who applied for U.S. citizenship in November 2013. In his application for U.S. citizenship, Dawari answered “No” to question 8a: “Have you ever been a member of or associated with any organization, association, fund, foundation, party, club, society, or similar group in the United States or in any other place?” Dawari admitted today in court that his answer to question 8a was false, in that it failed to disclose his prior relationship with Hezb-e-Islami Gulbuddin (“HIG”), an anti-western insurgent group active in Afghanistan and Pakistan.
As part of Dawari’s guilty plea, the parties stipulated that he would be sentenced to a two-year sentence of imprisonment, suspended, accompanied by an order requiring the defendant’s transfer without undue delay into immigration custody for uncontested removal from the United States. The defendant also agreed to relinquish his status as a lawful permanent resident, and he is now rendered permanently inadmissible to the United States.
The case was investigated by Federal Bureau of Investigation’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI), and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Native of Dominican Republic Charged with Illegal ReentryRead the Press Release
Fabio Rondon-Jose, a/k/a “Cesar Rodriguez,” a/k/a “Noel Rodriguez Mendoza,” 46, 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 August 21, 2014, Rondon-Jose, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about November 30, 2005.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Tax Scheme Nets 32 Month Prison Sentence for Philadelphia ManRead the Press Release
PHILADELPHIA - Steven Young, 32, of Philadelphia, PA, was sentenced today to 32 months in prison for his role in a tax fraud conspiracy. Young pleaded guilty on May 13, 2014 to one count of conspiracy and six counts of aiding and assisting in the preparation of fraudulent federal income tax returns. Young was providing personal identifying information to his co-conspirators for use in creating and filing fraudulent income tax returns. Young was charged with Tanita Chapman who pleaded guilty to 23 counts of preparing and filing of false and fraudulent federal income tax returns, as well as conspiracy, and is awaiting sentencing. In addition to the prison term, U.S. District Court Judge J. Curtis Joyner ordered restitution to the IRS in the amount of $42,889, three years of supervised release and a $700 special assessment.
According to court documents, Young’s then-girlfriend, Wendy Vandyke, charged separately, was friends with Chapman. In 2009, Chapman prepared federal income tax returns for Vandyke and others. In many of these returns, although not in the one that she prepared for Vandyke, Chapman filed an accompanying form 5405 in which she unlawfully claimed the First Time Home Buyer’s Credit (“FTHBC”) for individuals whom she knew were not eligible to receive it. To this end, Vandyke provided to Chapman identifiers of individuals whom Vandyke and Chapman knew were ineligible to receive the FTHBC, in order for Chapman to prepare returns unlawfully claiming the FTHBC. Vandyke received these identifiers from Young who was incarcerated at the time at a State Correctional Institution. Young obtained these identifiers from inmates with whom he was incarcerated and, in exchange for their identifiers, Young arranged for each inmate to receive a portion of the FTHBC that was fraudulently claimed on that inmate’s behalf. However, the larger portions of the fraudulently received credits were split between Vandyke/Young (as a unit) and Chapman. Ultimately, as a result of the scheme, $42,889 in FTHBCs were fraudulently claimed in tax returns prepared by Chapman, ostensibly for six inmates. The government issued refunds for this same amount.
The case was investigated by Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Jersey Bank Officer Sentenced to Two Years in Prison for BriberyRead the Press Release
PHILADELPHIA - Michael Ghabrial, 60, of Martinsville, New Jersey was sentenced today to two years in prison for agreeing to accept bribes as an officer of a bank. Ghabrial pleaded guilty on October 31, 2013 to one count of bank bribery.
Ghabrial was Senior Vice President and Director of Real Estate for Valley National Bank (“VNB”), headquartered in Wayne, New Jersey. In that position, Ghabrial handled the sale of numerous bank properties. Ghabrial solicited and accepted a $7,500 bribe in exchange for agreeing to sell real estate property owned by VNB at favorable terms. In total, Ghabrial solicited and agreed to accept over $120,000 in bribes in exchange for the sale of VNB properties.
In addition to the two-year prison term, U.S. District Court Judge J. Curtis Joyner ordered a fine of $10,000, two years of supervised release, a $100 special assessment, and restitution of $7,500.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Vineet Gauri.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Reading Woman Charged in Straw Purchasing CaseRead the Press Release
PHILADELPHIA - Angelica Leonore Delmoral, 26, of Reading, PA, was charged by indictment, unsealed today, with six counts of making false statements to federal firearms licensees. The indictment charges that the defendant straw purchased ten pistols for another person between July 19, 2011 and July 23, 2011.
According to the indictment, E.K.B., a convicted felon, offered to pay the defendant to buy handguns for him. Delmoral bought ten pistols and ammunition from five gun dealers. Delmoral turned over each pistol and any ammunition to E.K.B. and Person #1, who took the handguns to New York City.
If convicted of all charges, the defendant faces a maximum of 30 years in prison, three years of supervised release, a $1.5 million fine, and a $600 special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Eric B. Henson.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Armed Robber ConvictedRead the Press Release
Anthony Robinson, 40, of Philadelphia, PA, was found guilty today by a federal jury hearing the robbery case against him. Robinson was found guilty of two counts of robbery which interferes with interstate commerce and one count of using a firearm during a crime of violence. A sentencing hearing is pending.
On December 1, 2012, at approximately 5:40 p.m., Robinson robbed the Subway shop at 545 N. Broad Street. The victim, a Subway store employee, was intimidated into giving the defendant $100 cash from the register. After the employee gave Robinson the money, Robinson asked for the code to the safe. When the employee responded that she did not know it, the defendant, armed with a gun, said, “You better not be lying or I’m going to hurt you.” The robbery was recorded on Subway’s surveillance camera.
On December 1, 2012, at approximately 7:20 p.m., Robinson robbed Anna’s Linens by threatening an employee. The employee gave the defendant $750 from the register. The surveillance video from the store clearly showed the robbery and the defendant’s face. The following day, the victim from the Subway store robbery saw the defendant and recognized him. The victim alerted police and positively identified the defendant after the police stopped him. The victim in the second robbery also identified the defendant in a photo array as the person who robbed him.
Robinson faces a maximum possible sentence of life in prison with a mandatory minimum sentence of seven years, up to five years of supervised release, a possible fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Norristown Resident Charged with Illegal ReentryRead the Press Release
Josue Isaias-Rosales, 24, of Norristown, 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 August 6, 2014, Isaias-Rosales, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about March 31, 2008, July 3, 2008, and July 21, 2009.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Native of Dominican Republic Charged with Illegal ReentryRead the Press Release
Roberto Garcia-Duran, 38, 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 August 6, 2014, Garcia-Duran, 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 December 19, 2001 and December 21, 2007.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Virgil B. Walker.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Honduran Native Charged with Illegal ReentryRead the Press Release
Wilson Donaldo Cruz-Arias, 30, of Norristown, 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 August 12, 2014, Cruz-Arias, an alien, and native and citizen of Honduras, was found in the United States after having been deported from the United States on or about October 14, 2008 and August 26, 2010.
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 Andrew J. Schell.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Lancaster Man Indicted on Gun and Drug ChargesRead the Press Release
Marlon Paul White, 35, of Lancaster, PA, is charged in a seven-count indictment with drug and gun offenses, announced United States Attorney Zane David Memeger. Specifically, White is charged with possession with intent to distribute 34.8 grams of cocaine base (“crack”) and cocaine, possession of a firearm and a machinegun in furtherance of a drug trafficking crime, possession of a machinegun, two counts of possession of an unregistered firearm, and possession of a firearm by a convicted felon. According to the indictment, the machinegun was fully loaded and stored with a silencer.
If convicted of all charges, the defendant faces a statutory maximum sentence of life in prison, including a total mandatory minimum sentence of 45 years in prison, and eight years up to a lifetime of supervised release.
This case was investigated by the Lancaster Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Special Assistant United States Attorney Christopher J. Lechner.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bucks County Man Indicted on Child Pornography ChargesRead the Press Release
William Kinsley, 66, of Langhorne, PA., was charged by indictment, unsealed today, with four counts related to child pornography, announced United States Attorney Zane David Memeger. The indictment charges Kinsley with one count of receipt of child pornography, two counts of distribution of child pornography, and count of possession of child pornography.
According to the indictment, between October of 2008 and August 2011, Kinsley possessed child pornography on his ThinkPad and on two computers. It is further alleged that on May 29, 2011, Kinsley received and attempted to receive child pornography. The indictment alleges that between January 21, 2011 and February 16, 2011, and on July 28, 2011, Kinsey aided and abetted the distribution of child pornography.
If convicted of all counts, Kinsley faces a maximum possible sentence of 70 years in prison.
The case was investigated by the Federal Bureau of Investigation, and has been assigned to Assistant United States Attorney Paul G. Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Private Detective Gets 21 Months for Tax FelonyRead the Press Release
Yaser Khalil Masso, 71, of Philadelphia, PA, was sentenced today to 21 months in prison and was ordered to pay $429,070 in restitution, including interest to the IRS for under-reporting the income that he earned from his detective agency. Masso filed materially false tax returns for tax years 2006 through 2009, substantially under-reporting his income from his sole proprietorship, the Masso Detective Agency. For tax years 2006 through 2009, Masso reported a total of $454,579 of taxable (net) income -- failing to report an additional $2.1 million in taxable income. Thus, Masso reported to the IRS, and paid taxes on, only a fraction of his income.
Masso’s accountants attempted to review his income tax returns with him but Masso was not interested. Masso failed to provide the records to his accountants that they needed to accurately complete his accounting and tax work. One of Masso’s accountants specifically asked him whether the 1099’s that Masso provided to his accountant included all of Masso’s income, and Masso falsely replied that they did. Despite not providing records to his accountants, Masso had a bookkeeping and invoice system in place to bill his customers for security guard services provided. Masso sent invoices to his customers regularly so that he could get paid and collect his revenue in an accurate and timely manner.
Masso opened bank accounts at various financial institutions during 2006 through 2009. Despite having access to bank accounts, Masso routinely cashed checks for significant dollar amounts from his business receipts at check cashing stores, paying additional fees to do so, but thereby hiding income. Masso did deposit some business checks in his bank accounts -- but (with one exception) he only deposited checks for amounts over $10,000, which, if cashed at a check casher, would have generated a Currency Transaction Report (“CTR”) and would have been reported to the government.
In addition to the prison term and restitution, U.S. District Court Judge Eduardo Robreno ordered one year of supervised release.
The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant United States Attorney Karen L. Grigsby.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Father and Son Charged with Illegally Importing Counterfeit Sports JerseysRead the Press Release
An indictment was filed today charging Shawn Robinson, 30, of Enola, Pennsylvania, and Neil Robinson, 62, of Bensalem, PA, with conspiracy to trafficking in and illegally import counterfeit sports jerseys and trafficking in counterfeit goods, announced United States Attorney Zane David Memeger. Neil Robinson is also charged with smuggling.
The indictment alleges that, between approximately September of 2007 and July 2, 2014, the father and son imported and sold counterfeit sports jerseys that they bought from unauthorized manufacturers in China. These included baseball, football, hockey, and basketball jerseys, and each had a counterfeit trademark of the sports league on the jersey. The indictment alleges that the Robinsons imported more than 8,500 counterfeit sports jerseys and paid the unauthorized manufacturers approximately $200,000 for these products.
If convicted, Shawn Robinson faces a maximum possible sentence of 15 years in prison, a fine of up to $2.25 million, up to three years of supervised release, restitution, forfeiture, and a $200 special assessment; Neil Robinson faces a maximum possible sentence of 175 years in prison, a fine of up to $15.5 million, up to three years of supervised release, restitution, forfeiture, and a $1,300 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Sex Trafficker Gets 22 Year Prison SentenceRead the Press Release
Rashaad McIntyre, 26, of Philadelphia, PA was sentenced today to 22 years in prison for sex trafficking minors and production of child pornography. McIntyre pleaded guilty to the three counts of sex trafficking and one count of producing child pornography on July 1, 2013. Between December 1, 2011 and June 10, 2012, McIntyre recruited, coerced, forced, or threatened three teenaged girls into prostitution. He advertised the 15 and 16-year olds on an Internet website known as Backpage.com and caused the minors to engage in sexual acts with numerous adult men at hotels in Philadelphia. He collected 100% of the girls’ profits from performing commercial sex acts. He also photographed each of the girls working for him so he could post the photos on the website. One of the images he posted was of a minor engaging in oral sex.
In addition to the prison term, U.S. District Court Judge Joel H. Slomsky ordered McIntyre to pay restitution to the victims in the amount of $125,600 and ordered 20 years of supervised release and a $400 special assessment.
The defendant’s brother, Rahim McIntyre, 36, was sentenced last week in federal court by the Honorable Harvey J. Bartle to 21 years, 10 months in prison on three counts of sex trafficking of adults by force.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Phila Police Special Victims Unit. It was prosecuted by Assistant United States Attorney Michelle Morgan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Identity Theft Ring Leader Sentenced to Long Prison TermRead the Press Release
PHILADELPHIA - Evens Claude, 38, of Philadelphia, PA, was sentenced on Friday, August 29, 2014, to 232 months in prison for aggravated identity theft, bank fraud, access device fraud, counterfeit currency fraud, and conspiracy. U.S. District Court Judge Jan E. DuBois also ordered Claude to pay $609,210 in restitution. Claude represented himself at sentencing.
Between 2008 and October 3, 2011, Claude organized and ran two identity theft and counterfeit currency rings which looted the credit and bank accounts of 48 individual victims and caused losses of over $609,210 to 26 corporate victims. Claude fraudulently created and looted credit and bank accounts in victims’ names, adding the names of his criminal associates (“runners”) as authorized users on the credit accounts to buy construction materials and appliances which Claude would sell or use to fix up his properties and to withdraw money from victims’ bank accounts. Claude also used his runners to pass high-quality counterfeit currency to buy expensive goods from large stores like Home Depot or Lowe’s with fake $100 bills and to return the goods to another store branch for genuine currency. In 2011, while on supervised release in another counterfeit currency case, Claude partnered with his brother John “Mo” Claude to commit identity theft. Mo Claude was murdered in June 2011 by one of their runners in a payment dispute over the criminal proceeds. Claude used his criminal proceeds to purchase real estate, a Maserati, a BMW, a Ferrari, and to rent a luxury apartment from which he continued to engage in identity theft following his brother’s death. Claude’s long criminal history since 1993 included drug distribution, counterfeit currency fraud, and illegal re-entry after deportation.
The case was investigated by the United States Secret Service and was prosecuted by Assistant United States Attorneys Andrea Foulkes, Christopher Diviny and Mark Dubnoff.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Bank Employee Charged with Misapplication of Bank FundsRead the Press Release
PHILADELPHIA - Lynsey H. Haslip, formerly “Lynsey H. Dabback,” 32, of Pottstown, Pennsylvania, was charged today by information with misapplication of bank funds by an employee, announced United States Attorney Zane David Memeger. The information alleges that in 2009 Haslip, while employed as an Assistant Branch Manager at PNC Bank in West Chester, Pennsylvania, misapplied a total of $172,100 from bank customers’ accounts.
According to the information, between January and May 2009, Haslip performed approximately 12 unauthorized withdrawals, debits, and redemptions from the accounts of seven different PNC Bank customers without the customers’ knowledge or consent. Haslip used the stolen funds to issue cashier’s checks to, and make deposits to the accounts of, other PNC Bank customers. Haslip told the recipient customers that they had received PNC Bank loans, when she knew that they had not been approved for any such loans by the bank.
If convicted, the defendant faces a maximum possible sentence of 30 years in prison, five years of supervised release, a fine of up to $1 million, a $100 special assessment, and an order to pay full restitution.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Nancy E. Potts.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Texas Resident Charged with Illegal ReentryRead the Press Release
Florencio Marcos-De Luna, 37, of Plano, Texas, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about July 28, 2014, Marcos-De Luna, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about February 23, 2010, October 24, 2011, and April 19, 2012.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney M. Taylor Aspinwall.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Delaware Woman Indicted on Drug ChargesRead the Press Release
Kristen E. Jacobs, 32, of Bear, DE, was charged today by indictment with conspiracy to distribute oxycodone, and attempt to possess oxycodone with intent to distribute, announced United States Attorney Zane David Memeger. According to the indictment, the defendant and her co-conspirators obtained personal information of doctors and patients; used it to create false and fraudulent “prescriptions” for oxycodone, a dangerous Schedule II controlled substance that is widely abused; filled the fraudulent “prescriptions” at various pharmacies in the tri-state area; then sold the oxycodone illegally.
If convicted the defendant faces a maximum possible sentence of 40 years imprisonment, a three-year period of supervised release, and a $2 million fine.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Delaware State Police and the Lower Paxton Township Police Department. The case is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Delaware County Man Charged with Possessing A Firearm in A Federal FacilityRead the Press Release
Melvin Anthony Ramos, 55, of Linwood, PA, was charged today by Indictment with possessing a firearm in a federal facility and making false statements, announced United States Attorney Zane David Memeger. According to the indictment, on August 11, 2014, Ramos entered the William J. Green, Jr. Building, at 600 Arch Street in Philadelphia, with a loaded .40-caliber Glock pistol. It is further alleged that Ramos falsely stated that he was currently employed as an officer with the University of Pennsylvania Police Department (“UPPD”) when, as he knew, he was no longer a police officer with the UPPD.
If convicted, the defendant faces a maximum possible sentence of six years in prison.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Vineet Gauri.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Woman Charged with Stealing Dead Mother's Retirement BenefitsRead the Press Release
Maxine Harvin, 71, of Philadelphia, PA, was charged by yesterday 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 March 2004 until her fraud was discovered in March of 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $98,334.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a three year period of supervised release, restitution to the government of $98,334, 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.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Political Consultant Pleads Guilty in Attempt to Conceal Campaign Finance-Related FraudRead the Press Release
PHILADELPHIA – Political consultant Gregory Naylor, 66, of Philadelphia, pleaded guilty today to making false statements to federal agents and misprision of a felony in connection with his role in attempting to conceal two campaign finance-related fraud schemes. According to court documents, the charges stem from Naylor’s participation in two campaign finance-related schemes initiated by a long-time friend and employer, identified in the information as Elected Official A. In the first scheme, Naylor helped conceal the theft of federal grant funds and private charitable funds that were used to repay an illegal campaign debt incurred by Elected Official A during a 2007 campaign for elected office.
Specifically, Naylor was aware that large amounts of money from an unexplained source were being spent on Elected Official A’s campaign, and Naylor helped to conceal the source of those funds by preparing a false invoice for services rendered by his consulting firm. Naylor subsequently learned that Elected Official A and others orchestrated the theft of federal grant funds to repay the outstanding balance of the campaign debt, and he agreed to the falsification of campaign finance reports to further conceal Elected Official A’s activities.
The charges were announced by United States Attorney Zane David Memeger of the Eastern District of Pennsylvania, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, FBI Special Agent in Charge Edward Hanko and IRS Criminal Investigations Special Agent-in-Charge Akeia Conner. The plea was entered by U.S. District Court Judge Harvey Bartle III of the Eastern District of Pennsylvania.
Also according to court documents, in the second scheme, Naylor conspired with Elected Official A to pay down portions of the college debt of Elected Official A’s son using federal and local campaign funds. Some of the payments originated directly from the local campaign fund, and some were illegally sourced from Elected Official A’s federal campaign election committee and passed through the local campaign fund account to Naylor. Naylor made approximately $22,000 in improper payments between August 2007 and April 2011 at Elected Official A’s request. Naylor also falsely claimed on IRS forms that the payments made towards the college debt were earned income to Elected Official A’s son for services rendered as an independent contractor to Naylor’s consulting firm. When confronted by federal agents in investigative interviews about the payments, Naylor lied on two occasions and repeated his cover story that the son of Elected Official A was an independent contractor working for his political consulting firm.
The case was investigated by the FBI and the Internal Revenue Service-Criminal Investigations with assistance provided by the NASA Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Paul L. Gray and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.
U.S. District Court Judge Harvey Bartle III scheduled a sentencing hearing for December 2, 2014. Naylor faces a maximum possible statutory sentence of 13 years in prison, a fine of up to $500,000, and up to three years of supervised release.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges West Chester Man with Possession of Child PornographyRead the Press Release
Stephen Paradis, Jr., 23, of West Chester, PA, was charged today by Information with possession of child pornography, announced United States Attorney Zane David Memeger. The information alleges that on or about December 10, 2013, Paradis, Jr., possessed one or more visual depictions of minors engaging in sexually explicit conduct.
If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment and a three-year period of supervised release.
The case was investigated by U.S. Immigration & Customs Enforcement Homeland Security Investigation (HSI), the Delaware County District Attorney’s Office, Pennsylvania Internet Crimes Against Children Task Force (PA ICAC), the National Center for Missing and Exploited Children (NCMEC), 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.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Delaware County Man Sentenced for Stealing Identities as Part of A Tax Fraud SchemeRead the Press Release
PHILADELPHIA - Reynaldo Estrada, 50, of Brookhaven, PA, was sentenced today to 51 months in prison for stealing the identities of numerous patients of a local hospital as part of a tax fraud scheme. Estrada pleaded guilty on April 24, 2014 to one count each of conspiracy to commit identity theft, aggravated identity theft, and aiding and abetting the use of a false Social Security number. In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered three years of supervised release, restitution in the amount of $409,779, and a $300 special assessment.
Between October 2010 and October 2011, while he was working for Crozer Chester Medical Center’s Environmental Services Department and at Community Hospital in Chester, Pennsylvania, Estrada stole scores of treatment authorization forms containing patients’ names, addresses, dates of birth, and Social Security numbers. Estrada admitted that he gave the forms to co-conspirators Rafael Henriquez Polanco and Yanira Lopez, who paid him for the stolen identities, knowing that Polanco and Lopez were using the forms as part of a tax fraud scheme. Polanco and Lopez are charged in a separate indictment with using the identifying information provided by Estrada to prepare and file approximately 144 false and fraudulent federal individual income tax returns claiming bogus refunds in excess of $1.7 million. Additionally, Polanco is separately charged by information with possessing both powder and crack cocaine with the intent to distribute. Both Polanco and Lopez have pleaded guilty to all charges against them.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI), U.S. Department of State Diplomatic Security Service, U.S. Department of Labor Office of Inspector General, and Internal Revenue Service Criminal Investigations. It was prosecuted by Assistant United States Attorney Kevin Brenner.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Company Sentenced for Improper Storage of Explosive Hazardous WasteRead the Press Release
PHILADELPHIA – Action Manufacturing Company, headquartered in Bristol, Bucks County, was sentenced today to a five-year term of probation and to pay a fine of $1.2 million for storing explosive hazardous waste illegally at its facility in Atglen, Chester County, PA. The company agreed to install a new president and chief executive officer, and the company will comply with a schedule for disposing of the backlog of waste built up over many years. U.S. District Court Judge Nitza I. Quinones Alejandro also ordered an $800 special assessment.
Action Manufacturing makes timing and arming devices for munitions and explosives. In its manufacturing process, Action Manufacturing mixes explosive powders, and also fills boosters, detonators and other items with explosive powders. Action Manufacturing's production process generates explosive solid waste, and the law requires that it be disposed of in accordance with the Resource Conservation and Recovery Act. The company admitted that, instead of sending its waste to an approved treatment, storage and disposal facility, it stockpiled explosive hazardous waste at its Atglen facility without a permit. In November 2011, civil inspectors from EPA's Land and Chemicals Division and the Pennsylvania Department of Environmental Protection inspected the Atglen site, and found the illegally stored waste, including scrap parts and components that were years or even decades overdue for disposal.
Action Manufacturing also admitted that it violated Department of Transportation recordkeeping regulations for transporting explosive material on the public roads.
The case was investigated by the EPA’s Criminal Investigations Division and the U.S. Department of Transportation Office of Inspector General. It was prosecuted by Assistant United States Attorney Elizabeth Abrams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Jersey Man Indicted in Connection with Asbestos RemovalRead the Press Release
PHILADELPHIA - Ronen Bakshi, 53, of Voorhees, New Jersey, was charged today by indictment in connection with the removal of asbestos-containing material from a former church located at 1133 Spring Garden St., in Philadelphia, announced United States Attorney Zane David Memeger. Bakshi is charged with one count of falsifying records to obstruct or impede the investigation of a matter within the jurisdiction of the United States Environmental Protection Agency and one count of wire fraud.
According to the indictment, on or about April 23, 2009, Bakshi submitted a bill to his client, Siloam, via e-mail covering his charges for March 9 through April 23, 2009. The bill totaled $34,910, and included charges for time that Bakshi claimed that he or his employees had performed asbestos project inspector duties at the Church, including taking air samples. According to the indictment, Bakshi made up log book entries and sampling data to correspond with the bill, making it appear that Bakshi had worked at the Church on those days monitoring the work of the asbestos abatement contractor when he knew that neither he nor his employees had been present.
If convicted of all charges, Bakshi faces a maximum possible statutory sentence of 40 years in prison, a fine of up to $500,000, and possible restitution.
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 is being prosecuted by Special Assistant United States Attorneys Martin Harrell and Patricia C. Miller from EPA.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Lansdowne Man Charged with CounterfeitingRead the Press Release
Keith Scutching, 35, Lansdowne, PA, was charged by indictment, unsealed yesterday, with two counts of dealing in counterfeit currency, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 40 years in prison, a three-year period of supervised release, a $500,000 fine, a $200 special assessment, and the imposition of full restitution.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Carbon County Man Charged with Robbing Philadelphia BusinessesRead the Press Release
William Robinson, 35, of Jim Thorpe, PA, was charged today by indictment with the June 26, 2014 robberies of a Pizza Hut and a 7-Eleven store in Philadelphia, announced United States Attorney Zane David Memeger. Robinson is charged with two counts of robbery which interferes with interstate commerce, two counts of using and carrying a firearm during a crime of violence, and one count of being a convicted felon in possession of a firearm.
If convicted the defendant faces a maximum possible sentence of life imprisonment, with a mandatory minimum 32 years’ imprisonment, a $1.25 million fine, five years’ supervised release, and a $500 special assessment.
The case was investigated by Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia County District Attorney's Office and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Delaware County Man Pleads Guilty to Major Fraud Against the United StatesRead the Press Release
PHILADELPHIA – Kenneth Narzikul, 59, of Media, PA, pleaded guilty today to charges of major fraud against the United States, obstruction of a federal audit, and making false claims to the government, in connection with operation of his business, NP Precision, Inc., a machine tool business located in Folcroft PA. U.S. District Court Judge L. Felipe Restrepo scheduled a sentencing hearing for November 25, 2014.
Narzikul was President and 85% owner of NP Precision, responsible for all aspects of NP Precision’s business, which included contracting with federal agencies to produce critical hardware components used in military helicopters and other aircraft. At the guilty plea hearing, Narzikul admitted to misusing progress payments on contracts with the United States, by failing to pay subcontractors and requesting progress payments under the contracts for costs that NP Precision had not actually incurred, and without the intention of using the progress payments for the costs and contracts at issue, in violation of Federal Acquisition Regulations (FAR). Narzikul admitted that he schemed to fraudulently divert and steal approximately $1.2 million in progress payments that the United States paid NP Precision under two contracts to produce drive shaft couplings for the U.S. Army helicopter Model CH-47, commonly known as a Chinook helicopter. Consequently, as Narzikul admitted, the United States received a very belated and many times incomplete product, far later than required under the delivery schedules. In addition, Narzikul admitted that he made false statements and caused others at NP Precision to make false statements to government auditors, and made false claims to falsely reflect progress on numerous Army and Air Force contracts and to continue to receive progress payments from the United States. Narzikul admitted further that he used the diverted funds to pay outstanding obligations on other contracts and other business and personal expenses of the defendant and his family.
Narzikul faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $1.5 million fine, and a $300 special assessment. Full restitution of as much as $1.2 million also may be ordered.
The case was investigated by the Major Procurement Fraud Unit (MPFU) of the United States Army Criminal Investigative Command (Army CID), the Defense Criminal Investigative Service (DCIS); and the United States Air Force Office of Special Inspection (Air Force OSI). It is being prosecuted by Assistant United States Attorney Mary E. Crawley.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Reading Man Indicted on Child Pornography ChargesRead the Press Release
Bradley A. DeTurck, 36, of Reading, PA, was charged yesterday by Indictment with receipt, distribution and possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 150 years’ incarceration, which includes a mandatory 5 year period of imprisonment, a minimum 5 years up to a lifetime of supervised release, $2,000,000 in fines and $800 in special assessments.
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 FBI and is being prosecuted by Assistant United States Attorney Jessica Natali.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Judge Gives Berks County Businessman 46 Month Sentence for Tax CrimesRead the Press Release
PHILADELPHIA - Harvey G. Bitler, Sr., 57, of Shillington, PA, was sentenced today to
46 months in prison and ordered to pay more than $5 million in restitution for failing to pay over to the government income taxes, Social Security taxes and Medicare taxes withheld from his employees’ paychecks. He was ordered to surrender October 10, 2014, to begin serving his sentence.Bitler was the owner of Big H Farms and BH Farms in Berks County, Pennsylvania. Big H Farms provided labor for mushroom growing facilities and BH Farms employed salaried employees associated with the operation and management of Big H Farms. The companies withheld Medicare and Social Security taxes (FICA taxes) and income taxes from their employees’ paychecks but, between 2007 and 2012, Big H made no payments to the Internal Revenue Service of these withheld taxes. Between 2008 and 2012, BH Farms also failed to pay over all the taxes withheld in the first quarter of 2008, and made no payments to the Internal Revenue Service for the remaining quarters of those years. In total, for these periods, Bitler withheld but failed to pay a total of $4,552,486.71.
U.S. District Court Judge Jeffrey L. Schmehl ordered restitution to the IRS, including interest, in the amount of $5,078,897.06 million, a $100 special assessment, and three years of supervised release.
The case was investigated by the Internal Revenue Service Criminal Investigations with the assistance of revenue agents and revenue officers with the Small Business and Self-Employed Division of the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Albert S. Glenn.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Resident Charged with Illegal ReentryRead the Press Release
Jose Guadalupe Pacheco-Ramirez, a/k/a “Jose Ramirez,” 39, 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 July 21, 2014, Pacheco-Ramirez, 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 May 24, 2005 and August 24, 2010.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Andrea Foulkes.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525