Eastern District of Pennsylvania

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, 215-861-8525

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.

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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

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
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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, 215-861-8525

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, 215-861-8525

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.

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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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
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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
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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.

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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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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.

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An Indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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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.

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An Indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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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, 215-861-8525

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.

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. 

              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.     

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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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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
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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
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PATTY HARTMAN, Media Contact, 215-861-8525

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, 215-861-8525

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.

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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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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
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PATTY HARTMAN, Media Contact, 215-861-8525

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.

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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
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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, 215-861-8525

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
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PATTY HARTMAN, Media Contact, 215-861-8525

Francisco Hernandez-Sintung, a/k/a “Gabriel Munoz,” a/k/a “Gavino Hernandez,” 47, of Reading, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about April 1, 2014, Hernandez-Sintung, 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 January 7, 2006, June 14, 2007, November 2, 2007, March 17, 2008, and February 13, 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 M. Beth Leahy.

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

Revonia Jones, 54, of Morrisville, was charged today by information with one count of theft of government funds and one count of false statements, announced United States Attorney Zane David Memeger.  According to the information, the defendant applied for and received Federal Emergency Management Agency (“FEMA”) benefits due to displacement from her home resulting from Tropical Storm Lee.  However, Jones failed to report her receipt of Housing Choice Voucher payments from the U.S. Department of Housing and Urban Development (“HUD”).  The information further alleges that Jones failed to tell HUD that she was receiving FEMA benefits.  The defendant’s alleged actions resulted in a loss to the government of approximately $11,843.            

If convicted, Jones faces a maximum possible sentence of 15 years in prison, a three year period of supervised release, restitution to the government of $11,843, a $500,000 fine, and a $200 special assessment.

The case was investigated by the Department of Homeland Security Office of Inspector General, and the United States Department of Housing and Urban Development Office of Inspector General. It 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, 215-861-8525

PHILADELPHIA - Andy O. Rodriguez, 26, of Allentown, PA, pleaded guilty today to defrauding the IRS of $2,904,783.64 in fraudulent tax refunds.  Rodriguez pleaded guilty to all 23 counts of making false claims against the United States.  U.S. District Court Judge Lawrence F. Stengel scheduled a sentencing hearing for November 24, 2014.  Rodriguez admitted today that between August 17, 2010 and January 31, 2012, he knowingly filed false tax returns with the IRS claiming refunds in the names of other individuals.  The returns included W-2 forms falsely claiming that taxes were withheld by various employers.  The IRS identified more than 600 false returns that were associated with this scheme.  These returns, which were filed electronically, claimed refunds totaling $2,904,783.64.

Rodriguez faces a maximum possible sentence of 115 years in prison, restitution to the IRS of up to $2,904,783.64, up to three years of supervised release, a fine of up to $5.75 million, and a $2,300 special assessment.  

The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States David J. Ignall.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA –Rahim McIntyre, 35, of Philadelphia, PA, was sentenced today to 262 months in prison for three counts of sex trafficking.  McIntyre, a/k/a “King Kobra,” ran a prostitution business in Philadelphia and other major cities between early 2006 and late 2012. McIntyre recruited unsuspecting girls ages 18 and younger and then psychologically manipulated them to comply with his demands through physical violence.  He obtained numerous photographs of each victim in lingerie and then caused Internet advertisements to be created in which he advertised them as available for purchase for purposes of prostitution.  A federal jury found McIntyre guilty, on April 21, 2014, of using force and coercion to cause the women to engage in prostitution.

In addition to the prison term, U.S. District Court Judge Harvey R. Bartle ordered restitution of $5,200 per victim, a $300 special assessment, and eight years of supervised release. 

McIntyre’s brother, Rashaad McIntyre, was charged in December 2012 with sex trafficking of minors and production of child pornography. He pleaded guilty and is awaiting sentencing.

The case was investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania State Police Criminal Intelligence Center, and the Philadelphia First Judicial Court Warrant Unit.  It is being prosecuted by Assistant United States Attorney Michelle Morgan. 

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525

The United States announces that it has settled claims under the False Claims Act with Albert Einstein Healthcare Network and Fornance Physician Services for improperly billing federal health care programs for services submitted on behalf of Dr. Roman.  Einstein and Fornance voluntarily disclosed the allegations and have agreed to pay $ 348,854.00 to resolve the matter.

According to the self-disclosure and the investigation that followed, between November 10, 2010 and January 25, 2012 bills were submitted to federal health care programs for services that were allegedly performed by Dr. Roman and were actually performed by resident physicians where Dr. Roman was not appropriately performing teaching physician services; bills were submitted for services performed by Dr. Roman where there was not sufficient documentation to support the billable service; and some bills were submitted that were upcoded.  The United States alleges that false claims were submitted to the government.  After it discovered the problem, Einstein and Fornance took corrective action to resolve the improper payments, and disclosed the matter to the United States Attorney’s Office.

This matter was handled by Department Health and Human Services Office of the Inspector General, including Attorney Katherine Matos and AATS Audit Manager Bernard Siegel with the Office of Audit Services, and Assistant United States Attorney Susan Dein Bricklin.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Victor Hugo Armenta-Calzada, a/k/a “Raul Armenta,” 34, of Lancaster, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about July 25, 2014, Armenta-Calzada, 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 27, 2011.

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 Linwood C. Wright, Jr.

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
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PATTY HARTMAN, Media Contact, 215-861-8525

Ranferi Heredia-Cortez, a/k/a “Alexander Heredia-Cortez,” a/k/a “Ranferi Alexander Cortez,” a/k/a “Rafael Ramirez Zanbrano,” 31, of Norristown, PA, was charged today by Indictment with illegal re-entry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about July 9, 2014, Heredia-Cortez, 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 August 18, 2003, and October 21, 2003.

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 and Special Assistant United States Attorney Mark T. Sendek.

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

PHILADELPHIA - Matthew Amato, 31, of Broomall, PA, pleaded guilty today to one count of making false statements to banks.  A sentencing hearing is scheduled for November 12, 2014.  Amato admitted today that between July 11, 2005 and August 9, 2005, he knowingly made and caused to be made false statements to Wachovia Bank, PNC Bank, and Sun National Bank for the purpose of influencing the actions of the banks upon lines of credit for which he had applied. Amato falsely claimed to be the sole proprietor and Chief Executive Officer of Chaka Fattah, Jr. & Associates, an existing business entity which previously had earned revenue, and falsely claimed that he would use the proceeds of the commercial loans for the working capital and business purposes of CFJA, as required under the terms of the loans.

Amato faces a maximum possible sentence of 30 years in prison, up to five years of supervised release, a fine of up to $250,000, and a $100 special assessment.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service is being prosecuted by Assistant United States Attorney Paul L. Gray.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Robert Coppack, of LaVerne, California, was charged today by information with interference with a flight crew, announced United States Attorney Zane David Memeger.  The Information alleges that from May 13, 2014, to May 14, 2014, Coppack intimidated and assaulted flight crew members and flight attendants on a US Airways flight traveling from Philadelphia to London, and interfered with their duties and performance.

If convicted, the defendant faces a maximum possible sentence of 20 years of imprisonment.

The case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Federal Bureau of Investigation, and the Joint Terrorism Task Force, and is being prosecuted by Assistant United States Attorney Sarah L. Grieb.

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, 215-861-8525

Allegedly lied about previous connection to extremist group

PHILADELPHIA - An indictment was unsealed today charging Hayatullah Dawari, 62, of Philadelphia, PA, with immigration fraud.  Dawari is an Afghanistan citizen with alleged ties to Hezb-e-Islami Gulbuddin (“HIG”), an anti-western insurgent group active in Afghanistan and Pakistan. Its stated mission includes forcing the west out of Afghanistan, overthrowing the Afghan government, and establishing a fundamentalist Islamic state.  It has long-established ties with al-Qaida, and it has served as an associated force of al-Qaida in hostilities against the United States and its coalition partners.   Dawari has permanent, legal residence in the United States. 

In his November 2013 application for U.S. citizenship, Dawari responded “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?” failing to disclose his membership in, and association with, HIG.  

If convicted the defendant faces a maximum possible sentence of 20 years in prison, a fine of up to $500,000, a $200 special assessment and three years of supervised release.

The case was investigated by Federal Bureau of Investigation’s Joint Terrorism Task Force that included U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.

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, 215-861-8525

PHILADELPHIA - Roger Eichenholtz, 70, of Westchester County, New York, was sentenced today to 12 months in prison for making threats over the Internet. He pleaded guilty April 28, 2014 to sending threatening communications through interstate commerce.  After losing civil litigation over a business, Eichenholtz sent a numbering of harassing emails to his opponents, located in Chester County, PA, threatening further litigation.  On September 24, 2013, Eichenholtz sent another email threatening civil and criminal litigation.  He concluded the email with the following:  

PLAN B- if for some unforeseen miracle, you escape justice, I have access to a “Side Bolt 45.cal with 6 silver bullets that have your name on them.”     

In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered three years of supervised release, a $100 special assessment, and ordered the defendant be taken into immediate custody.

The case was investigated by Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Michael L. Levy.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA - Mark Labenz, 33, of Philadelphia, PA, was sentenced today to 120 months in prison for robbing four Philadelphia banks between December 2009 and January 2014. Labenz pleaded guilty on March 19, 2014 to the following robberies: December 31, 2009, Citizens Bank at 2102 Cottman Avenue; December 19, 2013, the Republic Bank located at 833 Chestnut Street; December 23, 2013, the Prudential Savings Bank, located at 28 North 3rd Street; and January 3, 2014, the Wells Fargo Bank located at 340-350 South 2nd Street.  In the last bank robbery, Labenz physically restrained a bank customer while demanding the money from the bank. He also stole the customer’s $400. 
           
In addition to the prison term, U.S. District Court Judge Juan Sanchez ordered three years of supervised release, $5,889 in restitution, and a $400 special assessment. 

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and was prosecuted by Assistant United States Attorney Ewald Zittlau.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA - Former Philadelphia Traffic Court Judge Robert Mulgrew, 56, of Philadelphia, was sentenced today to 30 months in prison for defrauding the Pennsylvania Department of Community and Economic Development (“DCED”).  Mulgrew pleaded guilty on September 19, 2013 to mail fraud and conspiracy to commit mail fraud and filing a false tax return.

In addition to the prison term, U.S. District Court Judge Darnell C. Jones ordered restitution to the Commonwealth of Pennsylvania Department of Community and Economic Development in the amount of $199,274, Mulgrew also paid restitution, penalties and interest to the IRS in the amount of $123,314, three years of supervised release, and $200 special assessment.

Mulgrew and co-defendant Lorraine Dispaldo, who previously pleaded guilty, engaged in a scheme to fraudulently receive and misuse Pennsylvania state grant funds awarded to non-profit groups.  Between 1996 and 2008, the DCED awarded hundreds of thousands of dollars in grants to two community groups with which Mulgrew and Dispaldo were associated.  DCED awarded more than $450,000 in grants to the Friends of Dickinson Square (“FDS”) with the understanding that the grants were to be used to purchase equipment and materials for the maintenance of Dickinson Square Park at 4th & Tasker Streets, Philadelphia, and surrounding neighborhood revitalization.  Mulgrew, the Vice-President of FDS, signed the FDS grant contracts with DCED.   DCED also awarded approximately $397,000 in grants to the Community to Police Communications (“CPC”) with the understanding that the grants were to be used to purchase communications equipment for the police and to purchase materials to secure vacant lots and buildings for the protection of the police.  Dispaldo signed the CPC grant contracts with DCED.

The defendants misrepresented their intentions to DCED, and that - contrary to their agreement to spend grant funds solely to purchase equipment and materials for neighborhood revitalization and improved communications with the police - the defendants used thousands of grant dollars to pay Mulgrew’s relatives and associates. They represented that they were paying for work done on behalf of FDS and CPC. After distributing grant funds to relatives and associates, the defendants supplied false and misleading information to DCED to conceal the actual amount of grant funds which they paid to the relatives and associates contrary to the express purposes of the grant.

Mulgrew conceded that he received almost $70,000 in grant funds for his own personal uses. Mulgrew improperly reimbursed himself from FDS funds for thousands of dollars of expenditures which he claimed were incurred by FDS when they were not and for his expenditures for items not authorized under the terms of the FDS grants. Mulgrew and Dispaldo supplied DCED with false documents to conceal their own use of grant funds and other improper uses of the funds.  

Mulgrew did not report the additional income from the fraud scheme on his tax return and claimed false business deductions which improperly reduced his tax liability.   

Dispaldo was sentenced in November 2013 to 18 months in prison.

            The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.  It was prosecuted by Assistant United States Attorneys Paul L.Gray.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525