Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
News ReleaseRead the Press Release
Joseph Villante, age 47, of Philadelphia, Pennsylvania, was charged today by information with bank bribery, announced United States Attorney Zane David Memeger. The information charges that from approximately January through June 2006, Villante, a vice president and relationship manager at Republic First Bank, solicited approximately $110,000 from a bank customer as a reward for assisting the customer in obtaining two loans from the bank.
UNITED STATES ATTORNEY'S OFFICE
If convicted the defendant faces a maximum possible sentence of 30 years in prison, a fine of $1,000,000, five years of supervised release, and a $100 special assessment. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Judy G. Smith.
EASTERN DISTRICT, PENNSYLVANIA
615 Chestnut Street
Suite 1250,
Philadelphia, PA 19106Contact: PATTY HARTMAN
Media Contact: 215-861-8525
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT http://www.justice.gov/usao/pae
Alleged Sports Bookie Charged with Filing A False Tax ReturnRead the Press Release
Albert A. Riccardi, 64, of Sewell, NJ, was charged today by Information with filing a false tax return, announced United States Attorney Zane David Memeger. The Information charges that from 2009 through 2012, Riccardi operated a sports bookmaking operation and accepted payments from his bettors in the form of checks, money orders, and cash. The Information alleges that in 2010 and 2011, Riccardi failed to report the income from his bookmaking operation, thereby underreporting his income for each year by over $98,000 and $185,000, respectively.
If convicted, the defendant faces a maximum possible sentence of three years of imprisonment, one year of supervised release, a $100,000 fine, and a $100 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.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, 215-861-8525Reading Resident Sentenced to 51 Months for Gun ChargeRead the Press Release
Juan Pedro Guzman-Zavala, a/k/a Alvaro Julio Luna, 28, of Reading, PA was sentenced today to 51 months in prison for being an alien in possession of a firearm. He was convicted at tril on March 13, 2014. Guzman-Zavala, a native and citizen of Mexico who is unlawfully present in the United States, assumed the identity of a United States Citizen and applied for a United States Passport in that name. Guzman-Zavala also possessed a 9mm handgun despite the prohibition against illegal aliens possessing firearms.
In addition to the prison term, Guzman-Zavala was ordered to pay a $2,000 fine, and a $300 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI), and the Detective Bureau of the Berks County District Attorney’s Office. It was prosecuted by Assistant United States Attorney Jeanine Linehan.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, 215-861-8525News ReleaseRead the Press Release
Albert A. Riccardi, 64, of Sewell, NJ, was charged today by Information with filing a false tax return, announced United States Attorney Zane David Memeger. The Information charges that from 2009 through 2012, Riccardi operated a sports bookmaking operation and accepted payments from his bettors in the form of checks, money orders, and cash. The Information alleges that in 2010 and 2011, Riccardi failed to report the income from his bookmaking operation, thereby underreporting his income for each year by over $98,000 and $185,000, respectively.
If convicted, the defendant faces a maximum possible sentence of three years of imprisonment, one year of supervised release, a $100,000 fine, and a $100 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.Ricardi_Release.pdf
UNITED STATES ATTORNEY'S OFFICE
EASTERN DISTRICT, PENNSYLVANIA
615 Chestnut Street
Suite 1250,
Philadelphia, PA 19106Contact: PATTY HARTMAN
Media Contact: 215-861-8525
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT http://www.justice.gov/usao/pae
Philadelphia Man Charged with False Statement Related to Federal Assistance for Storm DamageRead the Press Release
PHILADELPHIA –Kevin Thomas, 51, of Philadelphia, Pennsylvania, was charged by information, filed yesterday, with making a material false statement, in connection with his false certifications relating to rental assistance from the Federal Emergency Management Agency in the wake of Tropical Storm Lee announced United States Attorney Zane David Memeger.
If convicted, Kevin Thomas faces a maximum possible sentence of 5 years in prison, 3 years of supervised release, a $250,000 fine and a $100 special assessment.
The case was investigated by the United States Department of Homeland Security OIG and United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
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, 215-861-8525Life Support Ambulance Company and Owners Charged in Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – Life Support Corporation, its owners, Nazariy Kmet, 35, of Jamison, PA, and Bogdan Kmet, 30, of Warminster, PA, and a company manager, Rostislav Kmet, 26, of Philadelphia, were charged in a 12-count indictment, unsealed today, alleging their involvement in health care fraud, wire fraud, paying kickbacks, and aiding and abetting, announced United States Attorney Zane David Memeger. The company and one owner also were charged with making false statements in connection with health care matters and money laundering. The company is located in the Feasterville-Trevose area and was incorporated in 2010.
The indictment alleges that defendant Life Support and its owners and a manager operated an ambulance company that transported patients who were able to walk and could travel safely by means other than ambulance and who therefore were not eligible for ambulance transportation under Medicare requirements. It is alleged that the defendants or others acting on their behalf falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants and their employees knew that the patients could be transported safely by other means and that many of them were able to walk. It is also alleged that the defendants were involved in paying kickbacks to patients so that the patients chose to be transported by Life Support ambulances. The defendants allegedly billed for the ambulance services as if those services were medically necessary and, as a result of the allegedly fraudulent billing, the Medicare program paid more than $1.9 million for this inappropriate method of transportation.If convicted, Nazariy Kmet, Bogdan Kmet, and Rostislav Kmet each face substantial terms of imprisonment, three years of supervised release, a fine in excess of $3.8 million, mandatory restitution estimated at over $1.9 million, forfeiture of assets, and a special assessment. If convicted, Life Support Corporation faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations. All defendants could be excluded from participating in federal health care programs if convicted.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
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, 215-861-8525Ambulance Company Manager Sentenced to Five Years for Role in Medicare Fraud ConspiracyRead the Press Release
PHILADELPHIA – Mikhail Vasserman, 51, of Philadelphia, PA., was sentenced today to five years in prison for his role in a health care fraud scheme involving Penn Choice Ambulance Inc., operating from Huntingdon Valley, PA and Camp Hill, PA. Vasserman pleaded guilty on October 21, 2013 to conspiracy to commit health care fraud, false statements relating to health care matters, and paying kickbacks to patients, a total of 14 counts. Vasserman, who was the manager for Penn Choice’s Huntingdon Valley base, was indicted with the company’s owner Anna Mudrova, and operators Yury Gerasyuk, Irina Vasserman, Aleksandr Vasserman, Khusen Akhmedov, and Valeriy Davydchik, all of whom have pleaded guilty.
The scheme involved more than $3.6 million in fraudulent claims submitted to Medicare. The defendants conspired to defraud Medicare by recruiting patients who were able to walk and could travel safely by means other than ambulance and who therefore were not eligible for ambulance transportation under Medicare requirements. The defendants, and others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants knew that the patients could be transported safely by other means and that many of them walked to the ambulance for transport. The defendants themselves, or through others, paid illegal kickbacks to the patients as part of scheme. The defendants billed Medicare for these ambulance services as if those services were medically necessary and, as a result of the fraudulent billing, the Medicare program sustained losses of more than $1.5 million for this medically unnecessary method of transportation.
In addition to the prison term, U.S. District Court Judge Juan R. Sànchez ordered three years of supervised release, restitution in the amount of $1,703,450.74, joint and several with the co-defendants, a special assessment of $1,400 and forfeiture of any assets traceable to the offense.
In prior proceedings, defendant Khusen Akhmedov, an EMT, was sentenced to 27 months in prison; ambulance drivers, Valeriy Davydchik and Yury Gerasyuk, were each sentenced to 24 months in prison; and the corporation was ordered to pay restitution and to cease all operations. The three remaining defendants are awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.
In addition to restitution to Medicare of $1,548,583.93, the Court ordered restitution of approximately $154,866.81 payable to Highmark Blue Cross, which provides supplemental insurance to Medicare beneficiaries.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Judge Sends Former Philadelphia Police Officer to Prison for 15 Years for Obstructing A Federal Drug InvestigationRead the Press Release
PHILADELPHIA – Rafael Cordero, 53, of Philadelphia, was sentenced today to 180 months in prison for interfering with the federal drug investigation of the Christian Serrano/Edwin Medina Drug Trafficking Organizations (“DTOs”). Cordero, who at the time was a 23-year veteran of the Philadelphia Police Department, provided sensitive law enforcement information about drug investigations to his half-brother, David Garcia, a member of the Serrano/Medina DTOs. Cordero was convicted on December 3, 2013.
Cordero told his half-brother about a surveillance camera put up by the DEA to monitor activities occurring at a garage, located at 538 East Indiana Street in Philadelphia, used by the Medina DTO. When the FBI and DEA executed search warrants at several locations associated with the Serrano/Medina DTOs, including the garage, Cordero, after being informed about the searches by his half-brother and without having any official reason to do so, went to the search location on East Indiana Street and began looking in the windows of the garage. When confronted by law enforcement and brought inside the location, Cordero misrepresented his reason for being at the location and offered to assist with the search. At no time did Cordero provide his name to law enforcement.
Immediately after leaving the search location, Cordero placed a call to David Garcia and shared with him, among other things, how many law enforcement officers were conducting the search and what areas of the garage they were searching. Garcia removed a DVR tape that law enforcement had inadvertently failed to seize during the search and viewed it to see if Cordero was recorded at the garage at the time of the search, which he was. At no time did Cordero inform law enforcement that David Garcia had possession of the video tape.
When questioned by federal agents, Cordero denied giving information to Garcia regarding the surveillance camera, denied knowing of anyone associated with the Indiana Street garage and denied having spoken to David Garcia about the search at the garage.
In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered a $5,000 fine and three years of supervised release. The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorneys Kevin Brenner and Maureen McCartney.
Assistant Bank Branch Manager Charged with Bank FraudRead the Press Release
Erlanda Naranjo, 39, of Nashville, Tennessee, was charged by Information, filed yesterday, with bank fraud, announced United States Attorney Zane David Memeger. According to the Information, while employed at a bank, the defendant submitted a false application for a business line of credit in the name of a relative. That relative neither owned a business nor authorized Naranjo to apply for credit in her name. The bank ultimately approved the application, and sustained a loss of more than $95,000, when the line of credit was charged up and not repaid.
If convicted the defendant faces a maximum possible sentence of 30 years in prison, a five-year period of supervised release, a $1,000,000 fine and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
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, 215-861-8525Ambulance Company Co Owner Sentenced to 13 1/2 Years for Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – Vadim Fleshler, 33, of Philadelphia, PA, was sentenced today to 162 months in prison for a healthcare fraud scheme involving Superior EMS Ambulance Co., located in Huntingdon Valley, PA. Fleshler was a founder of Superior EMS Ambulance and managed its day-to-day operations. In December 2013, Fleshler pleaded guilty to all counts against him in the indictment including health care fraud, false statements in connection with health care matters, and conspiracy to commit health care fraud.
The defendant’s company, Superior EMS Ambulance, transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The defendant, or others acting on his behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendant knew that the patients could be transported safely by other means and, in fact, many of the patients were able to walk. The defendant billed for the ambulance services as if those services were medically necessary. As a result of the fraudulent billing, the Medicare program paid more than $2.4 million for this inappropriate method of transportation.
In addition to the prison term, U.S. District Court Judge Michael M. Baylson ordered restitution to Medicare in the amount of $1,931,015.52, a special assessment of $900, and a three-year term of supervised release.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Additional Tax Charges Filed Against Philadelphia ManRead the Press Release
PHILADELPHIA - William Bucci, 57, of Philadelphia, PA, was charged today by Superseding Indictment with four counts of making and subscribing false federal income tax returns, announced United States Attorney Zane David Memeger. The indictment alleges that Bucci underreported his income for the tax years 2007 through 2010.
If convicted the defendant faces a maximum possible sentence of 12 years in prison, a fine of up to $1 million, and up to three years of supervised release.
The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David J. Ignall.
Click here to view the indictment
An Indictment, Information or Criminal Complaint 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, 215-861-8525Lawyer Sentenced for Stealing Client FundsRead the Press Release
PHILADELPHIA - Gomer Thomas Williams, 54, of Philadelphia, PA, was sentenced today to 24 months in prison and ordered to pay restitution for a scheme to defraud clients of the legal firm where he worked. Williams was an attorney and associate with the Philadelphia law firm, Spector Gadon & Rosen (“Spector”). Between 2007 and 2012, Williams defrauded four of his trust and estate clients of approximately $503,361 by diverting funds from his clients’ accounts to his personal accounts, and by overbilling his clients for legal work that was not performed. He pleaded guilty in March to one count of wire fraud.
For the trusts, Williams was the trustee, and, for the estates, Williams was the administrator and/or executor. Williams exercised complete control over the victim-clients’ funds, including controlling their checking accounts. Williams abused his fiduciary position in transferring funds from their accounts to pay his own personal expenses, including his mortgage.
In addition to the prison term, U.S. District Court Judge Legrome Davis ordered restitution in the amount of $503,361, three years of supervised release, and a $100 special assessment.
The case was investigated by the FBI and is being prosecuted by First Assistant United States Attorney Louis D. Lappen.
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 Charged with Defrauding Workman's CompensationRead the Press Release
Herman Mokuau, 68, of Bridgeton, New Jersey was charged today by Information with one count of theft of Government funds, and one count of false statement or fraud to obtain federal employees’ compensation, announced United States Attorney Zane D. Memeger. The information alleges that between 2004 and June 2012, Herman Mokuau implemented a scheme to receive and convert to his own use federal workers’ compensation benefits while concealing that he was working as a farrier (horseshoer) and earning income, resulting in total losses to the government of approximately $62,615.39.
If convicted the defendant faces a maximum possible sentence of fifteen years incarceration, a $500,000.00 fine, three years supervised release, and restitution of $62,615.39.
The case was investigated by the Department of Labor’s Office of the Inspector General and the Naval Criminal Investigative Service and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
Click here to view the indictment
An Information 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 Alleged to Have Fraudulently Applied for Hurricane FundsRead the Press Release
Kia Arthur, 41, of Philadelphia, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant applied for and received Federal Emergency Management Agency (“FEMA”) benefits, alleging that she had been displaced from her home as a result of Hurricane Irene. The Information alleges that the representations in the defendant’s application to FEMA were false, and that, in fact, she was never displaced from her primary residence. The defendant’s alleged actions resulted in a loss to the government of approximately $18,413.
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 $18,413, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Department of Homeland Security, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
An Information 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, 215-861-8525Easton Woman Charged with Tax EvasionRead the Press Release
Lilliam Zawarski, 60, of Easton, PA, was charged today by Information with one count of tax evasion, announced United States Attorney Zane David Memeger. The defendant is charged with willfully evading the payment of $131,349.31 in federal income taxes owed by her to the United States of America for
the calendar years 2007 through 2009.If convicted, defendant Zawarski faces a maximum possible sentence of five years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Philadelphia Field Office of the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney John Gallagher.
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 Separate and Unrelated Indictments Charge Similar SchemeRead the Press Release
Identities of children used in tax fraudPHILADELPHIA – Agents with the Internal Revenue Service Criminal Investigation, this morning, arrested a total of five people charged in two separate and unrelated indictments that allege a similar scheme. Momolu Sirleaf is charged with stealing the identifying information of foster children to falsely use as dependents on income tax returns he was preparing for clients. In a separate indictment, six people, including a one-time social worker, are charged with stealing the identifying information of disabled children and foster children to falsely use as dependents on income tax returns.
The charges were announced in separate press releases issued today by United States Attorney Zane David Memeger and IRS Criminal Investigation Special Agent-in-Charge Akeia Conner.
“The allegations in these indictments depict a disturbing practice of exploiting some of the most vulnerable members of our community,” said Memeger. “Unfortunately, it is not unusual for criminals to injure victims through identity fraud and cheat the government of its tax revenue through tax fraud. But the conduct in these cases, in which the fraud schemes involved stealing identity information from disabled children and children in foster care, is truly despicable, and those who are responsible must be brought to justice.”
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Conner. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law. Today’s arrests should serve as a strong warning to those who are considering similar conduct.”
UNITED STATES ATTORNEY'S OFFICE
EASTERN DISTRICT, PENNSYLVANIA
615 Chestnut Street
Suite 1250,
Philadelphia, PA 19106Contact: PATTY HARTMAN
Media Contact: 215-861-8525
Press Release (Kamara, et al) | Indictment.pdf (Kamara, et al) | Press Release.pdf (Momolu Sirleaf) | Indictment.pdf(Sirleaf)
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT http://www.justice.gov/usao/pae
Group of Six Charged in Fraud Scheme Involving Stolen Identities of ChildrenRead the Press Release
PHILADELPHIA - An indictment was unsealed today charging six people in an identity theft and tax fraud scheme in which the identities of disabled children and foster care children were stolen, announced U.S. Attorney Zane David Memeger and IRS Criminal Investigation Special Agent-in-Charge Akeia Conner. The indictment charges Ahmed Kamara, 38, and Ibrahim Kamara, 48, both of Yeadon, PA, Musa Turay, 41, and Foday Mansaray, 38, both of Darby, PA, Gebah Kamara, 46, of Sharon Hill, PA, and Dauda Koroma, 43, of Philadelphia, PA, with conspiracy, aiding and assisting in the preparation of false tax returns, wire fraud, aggravated identity theft, and filing false individual income tax returns. All six defendants were arrested this morning.
Defendants Ahmed Kamara, Musa Turay, Ibrahim Kamara, Dauda Koroma, and Foday Mansaray worked as tax preparers at Medmans Financial Services, a tax preparation business located in South West Philadelphia. According to the indictment, Ahmed Kamara, Musa Turay, Ibrahim Kamara, Dauda Koroma, and Foday Mansaray defrauded the Internal Revenue Service by repeatedly falsifying information on tax returns. The indictment alleges that Gebah Kamara, then a social worker at Catholic Social Services, sold the defendant tax preparers the names and Social Security numbers of foster children for the purpose of creating fraudulent dependents on client tax returns. By including the false dependents, the tax preparers falsely claimed a number of credits and exemptions for their clients, which generated large fraudulent refunds, some in excess of $9,000. The tax preparer defendants charged clients up to $800 to fraudulently add a dependent on their income tax return.
If convicted, each of the defendants faces a mandatory two year prison term for aggravated identity theft consecutive to the following maximum possible sentences: Ahmed Kamara - 55 years in prison, three years of supervised release, a $1.75 million fine, and a $1,300 special assessment; Musa Turay - 61 years in prison, three years of supervised release, a $1.95 million fine, and a $1,500 special assessment; Gebah Kamara - 43 years in prison, three years of supervised release, a $1.35 million fine, and a $900 special assessment; Ibrahim Kamara - 52 years in prison, three years of supervised release, a $1.65 million fine, and a $1,200 special assessment; Dauda Koroma - 52 years in prison, three years of supervised release, a $1.65 million fine, and a $1,200 special assessment; Foday Mansaray - 43 years in prison, three years of supervised release, a $1.35 million fine, and a $900 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigation, the City of Philadelphia Office of Inspector General, and the Social Security Administration Office of Inspector General Office of Investigations. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.
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, 215-861-8525Group of Six Charged in Fraud Scheme Involving Stolen Identities of ChildrenRead the Press Release
PHILADELPHIA - An indictment was unsealed today charging six people in an identity theft and tax fraud scheme in which the identities of disabled children and foster care children were stolen, announced U.S. Attorney Zane David Memeger and IRS Criminal Investigation Special Agent-in-Charge Akeia Conner. The indictment charges Ahmed Kamara, 38, and Ibrahim Kamara, 48, both of Yeadon, PA, Musa Turay, 41, and Foday Mansaray, 38, both of Darby, PA, Gebah Kamara, 46, of Sharon Hill, PA, and Dauda Koroma, 43, of Philadelphia, PA, with conspiracy, aiding and assisting in the preparation of false tax returns, wire fraud, aggravated identity theft, and filing false individual income tax returns. Four of the defendants were arrested this morning.
Defendants Ahmed Kamara, Musa Turay, Ibrahim Kamara, Dauda Koroma, and Foday Mansaray worked as tax preparers at Medmans Financial Services, a tax preparation business located in South West Philadelphia. According to the indictment, Ahmed Kamara, Musa Turay, Ibrahim Kamara, Dauda Koroma, and Foday Mansaray defrauded the Internal Revenue Service by repeatedly falsifying information on tax returns. The indictment alleges that Gebah Kamara, then a social worker at Catholic Social Services, sold the defendant tax preparers the names and Social Security numbers of foster children for the purpose of creating fraudulent dependents on client tax returns. By including the false dependents, the tax preparers falsely claimed a number of credits and exemptions for their clients, which generated large fraudulent refunds, some in excess of $9,000. The tax preparer defendants charged clients up to $800 to fraudulently add a dependent on their income tax return.
If convicted, each of the defendants faces a mandatory two year prison term for aggravated identity theft consecutive to the following maximum possible sentences: Ahmed Kamara - 55 years in prison, three years of supervised release, a $1.75 million fine, and a $1,300 special assessment; Musa Turay - 61 years in prison, three years of supervised release, a $1.95 million fine, and a $1,500 special assessment; Gebah Kamara - 43 years in prison, three years of supervised release, a $1.35 million fine, and a $900 special assessment; Ibrahim Kamara - 52 years in prison, three years of supervised release, a $1.65 million fine, and a $1,200 special assessment; Dauda Koroma - 52 years in prison, three years of supervised release, a $1.65 million fine, and a $1,200 special assessment; Foday Mansaray - 43 years in prison, three years of supervised release, a $1.35 million fine, and a $900 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigation, the City of Philadelphia Office of Inspector General, and the Social Security Administration Office of Inspector General Office of Investigations. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.
UNITED STATES ATTORNEY'S OFFICE
EASTERN DISTRICT, PENNSYLVANIA
615 Chestnut Street
Suite 1250,
Philadelphia, PA 19106Contact: PATTY HARTMAN
Media Contact: 215-861-8525
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT http://www.justice.gov/usao/pae
Darby Tax Preparer Charged with Using Foster Childrens' Identities in Tax SchemeRead the Press Release
Momolu Sirleaf, 34, of Darby, PA, is charged by indictment, unsealed today, in a scheme to defraud the Internal Revenue Service by stealing the identities of foster children, announced United States Attorney Zane David Memeger and IRS Special Agent-in-Charge Akeia Conner. Sirleaf is charged with six counts of aiding or assisting in the preparation of false federal income tax returns, six counts of wire fraud, and eight counts of aggravated identity theft. The indictment alleges that, between January 2010 and February 2012, Sirleaf obtained the names and Social Security numbers of children within the foster care system to falsely use as dependents on his clients’ income tax returns. Sirleaf was arrested this morning.
Sirleaf owned and operated I.E.S. Tax Services, a tax preparation business located in Darby, PA, that prepared and electronically filed, via the Internet, income tax returns for clients. According to the indictment, Sirleaf charged clients an extra fee for the use of each dependent’s identity, or withheld an additional fee from the client’s refund amount to pay for the false dependent. It is further alleged that by adding the false dependents, the defendant generated false tax refunds for his clients, some in excess of $8,000.
If convicted, the defendant faces a maximum possible sentence of 154 years in prison, plus a mandatory consecutive sentence of two years in prison, three years of supervised release, a $4.1 million fine, and a $2,000 special assessment.
The case was investigated by the Internal Revenue Service - Criminal Investigation, the City of Philadelphia Office of Inspector General, and the Social Security Administration Office of Inspector General Office of Investigations. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Day Care Owner Charged with Defrauding Public WelfareRead the Press Release
PHILADELPHIA –Tianna Edwards, 32, of Philadelphia, Pennsylvania, was charged today by information with wire fraud, in connection with a scheme to defraud the Pennsylvania Department of Public Welfare, announced United States Attorney Zane David Memeger.
According to the information, in 2008, Edwards had a criminal record which would have prohibited her from obtaining a license to operate a child day care facility and receive state and federal child subsidy payments from the Department of Public Welfare (“DPW”). In order to circumvent the criminal history clearance requirements for a license and to become eligible for state and federal child care subsidy funds, in September 2008, defendant Tianna Edwards submitted the first of two separate applications to DPW containing the forged signatures of another individual, for licenses to operate facilities named “Tianna’s Terrific Tots.” Both applications were false because they listed a person who did not have a criminal record as the sole legal owner and operator of “Tianna’s Terrific Tots” when, in fact, defendant Tianna Edwards controlled and operated “Tianna’s Terrific Tots.” The facilities were located on Germantown Avenue and Rising Sun Avenue in Philadelphia. The information alleges that, from December, 2008 through July 2012, Tianna Edwards received from DPW approximately $1,459,470.25 in fraudulent payments to Tianna’s Terrific Tots. According to the information, Edwards spent the money on lifestyle expenses and gambling, as well as business expenses.
If convicted, Tianna Edwards faces a maximum possible sentence of 100 years in prison, 3 years of supervised release, a $1,250,000 fine and a $500 special assessment.
The case was investigated by the United States Department of Health and Human Services and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
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, 215-861-8525Man Sentenced to 16 Months for Social Security FraudRead the Press Release
Ronnie Lee Johnson, a/k/a "Ronnie Lee Durham," and "Ronnie Paul Johnson," 51, of Alexandria, Virginia and formerly of Feasterville, Pennsylvania, was sentenced today to 16 months in prison, announced United States Attorney Zane David Memeger. The defendant previously pled guilty to five counts of Social Security Fraud in connection with his use of a stolen Social Security number and date of birth. The defendant, who stole the victim’s Social Security number while working as a Database Administrator in the Eastern District of Pennsylvania, used the stolen Social Security number and date of birth to open bank accounts, obtain a debit card, and obtain employment. The defendant also obtained four driver’s licenses over a period of approximately three years in four different states, and also obtained two passports by altering his appearance and applying for one under the name Ronnie Johnson, and the other under the name Ronnie Durham.
In addition to the 16 month prison sentence, the defendant was ordered to pay a $3,000 fine, and to serve 3 years of supervised release following his prison term.
The case was investigated by the Social Security Administration, Office of Inspector General, the Diplomatic Security Service, and the Lower Southampton Police Department; and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.Release.pdf
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Warminster Man Charged with Theft of Government FundsRead the Press Release
William E. Gardner, 67, of Warminster, 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 D. Memeger. The information alleges that between May 22, 2005 and January 2014, William E. Gardner implemented a scheme to receive and convert to his own use survivor's insurance benefits intended for a family member for a period of almost nine years after the family member's death, resulting in total losses to the government of approximately $104,615.
If convicted the defendant faces a maximum possible sentence of 15 years in prison, a $500,000.00 fine, three years supervised release, and restitution of $104,615.
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.
Click here to view the indictment
An Information 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, 215-861-8525New York Man Charged with Attempted Drug PossessionRead the Press Release
Carl O’Neal of Queens, NY, was charged today by indictment with attempting to possess with intent to distribute 500 grams or more of cocaine, in May 2014, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 40 years’ imprisonment, five years’ supervised release, a $5 million fine, and a $100 special assessment.
The case was investigated by Immigration and Customs Enforcement – Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Anita Eve.
Click here to view the indictment
An Indictment, Information or Criminal Complaint 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, 215-861-8525Morrisville Man Indicted on Gun ChargeRead the Press Release
Jonathan A. Miller, Jr., 56, of Morrisville, Pennsylvania was charged on June 3, 2014, by indictment with possession of a firearm and ammunition by a convicted felon. The indictment charges that Miller committed this offense in Penndel, Pennsylvania on January 19, 2013.
If convicted,Miller faces a maximum sentence of ten years imprisonment. Miller also faces a maximum period three years supervised release, a $250,000 fine, and a $100 special assessment.
This case was investigated by the Federal Bureau of Investigation and the Penndel Police Department, and is being prosecuted by Assistant United States Attorney Andrea G. Foulkes.Click here to view the indictment
An Indictment or an Information 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, 215-861-8525EMT Sentenced for Role in Ambulance Fraud SchemeRead the Press Release
PHILADELPHIA – Khusen Akhmedov, 23, of Philadelphia, PA and Lancaster, PA, was sentenced today to 27 months in prison for his role in a health care fraud scheme involving Penn Choice Ambulance Inc., operating from Philadelphia, PA, Huntingdon Valley, PA and Camp Hill, PA. Akhmedov pleaded guilty on December 5, 2013, to conspiracy to commit health care fraud, false statements relating to health care matters, and paying kickbacks to patients, a total of 16 counts. Akhmedov, an EMT for Penn Choice, was indicted with Penn Choice owner Anna Mudrova and operators Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, and Valeriy Davydchik, all of whom have pleaded guilty.
The scheme involved more than $3.6 million in fraudulent claims submitted to Medicare. The defendants conspired to defraud Medicare by recruiting patients who were able to walk and could travel safely by means other than ambulance and who therefore were not eligible for ambulance transportation under Medicare requirements. The defendants, and others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants knew that the patients could be transported safely by other means and that many of them walked to the ambulance for transport. The defendants, themselves, or through others, paid illegal kickbacks to the patients as part of scheme. The defendants billed Medicare for these ambulance services as if those services were medically necessary and, as a result of the fraudulent billing, the Medicare program sustained losses of more than $1.5 million for this medically unnecessary method of transportation.
In addition to the prison term, U.S. District Court Judge Juan R. Sànchez ordered three years of supervised release, restitution in the amount of $582,665, joint and several with the co-defendants, a special assessment of $1,600 and forfeiture of any assets traceable to the offense.
In prior proceedings, defendants Valeriy Davydchik and Yury Gerasyuk, both ambulance drivers, were each sentenced to 24 months in prison; the corporation was ordered to pay restitution of $1,548,583.93 and ordered to cease all operations. The remaining defendants are awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.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 Porn ChargesRead the Press Release
Thomas Silber, 50, of Yardley, PA, was charged today, by indictment with 10 counts of knowingly receiving, and attempting to receive, visual depictions, that is, DVD movies, depicting child pornography. According to the indictment, between February 2007 and October 2010, Silber received 10 DVD movies, using the internet, which were shipped and transported in interstate and foreign commerce, and contained materials that had been shipped and transported in interstate and foreign commerce. The producing of these visual depictions involved the use of minors engaging in sexually explicit conduct, and such visual depictions were of minors engaging in sexually explicit conduct.
If convicted the defendant faces a maximum possible sentence of 200 years in prison, a lifetime of supervised release, and a $1,000 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the U.S. Postal Inspection Service. It and is being prosecuted by Assistant United States Attorney Michelle Morgan.
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, 215-861-8525Serial Bank Robber Pleads GuiltyRead the Press Release
Marcus Akiem Ricketts, 37, of Boyertown, PA, pleaded guilty yesterday to four armed bank robberies in Pennsylvania and using and carrying a firearm during a crime of violence. Ricketts was charged, federally, with four robberies: on June 8, 2010, at the Sovereign Bank, located at 258 East High Street, Pottstown, Pennsylvania; on January 24, 2012, at the Citizens Bank, located at 209 Lancaster Avenue, Devon, Pennsylvania; on April 12, 2012, at the First Niagara Bank, located at 502 State Avenue, Emmaus, Pennsylvania; and on July 2, 2012, at the Manufacturers and Traders Trust Company (“M&T Bank”), formerly located at 760 North Pottstown Pike, in Exton, Pennsylvania. In addition to those robberies, Ricketts pleaded guilty to seven others. The banks were located in Bucks, Berks, Chester, Delaware, Lehigh, and Montgomery counties. Ricketts admitted to committing 11 total bank robberies, six of which were pending investigation.
Ricketts faces 25 years in prison including a seven year mandatory term, five years of supervised release, a fine of up to a $1.25 million, a $500 special assessment and restitution of approximately $194,436. A sentencing hearing is scheduled for September 17, 2014.This case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Chester County Sheriff’s Department, the Chester County Detectives, and the police departments for Easttown Township, Emmaus, Lower Merion, Pottstown, Uwchlan, Shillington Township, Warminster, and West Whiteland, Pennsylvania. In addition, the District Attorney’s offices for the counties of Berks, Bucks, Chester, Lehigh and Montgomery were also involved in the investigation. This case is being prosecuted by Assistant United States Attorneys Jeffery W. Whitt and Jessica Natali.
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 Bilking Social Security and Veterans AffairsRead the Press Release
Geraldine Jones, 68, of Philadelphia, was charged by information, filed on May 30, 2014, with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant received retirement and pension benefits from the Social Security Administration and the Department of Veterans Affairs that were intended for a deceased individual, after that individual’s death in May 1999, until her fraud was discovered in early 2014. The defendant’s alleged actions resulted in a loss to the Social Security Administration of approximately $103,356 and a loss to the Department of Veterans Affairs of approximately $52,442, for a total loss to the government of approximately $155,798.
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 $155,798, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General, and the Department of Veterans Affairs Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
An Information 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 Man Charged with Stealing BenefitsRead the Press Release
John Bernhardt, 30, of Philadelphia, PA, was charged 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 between June 2010 and October 2012, John Bernhardt implemented a scheme to receive and convert to his own use disability insurance benefits intended for the use of another, for over two years, resulting in total losses to the government of approximately $27,191.
If convicted, Bernhardt faces a maximum possible sentence of 15 years in prison, a $500,000 fine, three years of supervised release, and restitution of $27,191.
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.
Click here to view the indictment
An Information 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, 215-861-8525Chester County Lawyer and Client Charged with Bankruptcy FraudRead the Press Release
PHILADELPHIA – Indictments were filed yesterday charging a Pennsylvania attorney and his client in a bankruptcy fraud scheme, announced United States Attorney Zane David Memeger. Pietro A. Barbieri, esq., 61, of Exton, PA, was retained by Deborah Messner, 59, of Glenmoore, PA, for a divorce and bankruptcy matter. Barbieri is charged with bankruptcy fraud, agent concealing property in bankruptcy, and attempted obstruction of official proceeding. Messner is charged with concealing property in bankruptcy and two counts of false oath in bankruptcy proceeding.
According to the indictments, in February 2009, Messner and Barbieri began discussing Messner’s bankruptcy and she transferred possession of a Chevrolet Corvette to her father. In April of 2009, while assisting her in her divorce settlement, Barbieri allegedly advised Messner to set up an Individual Retirement Account (IRA) where she could deposit the $193,000 in proceeds from the divorce. According to the indictments, Barbieri advised Messner that “additional time will be required in order to protect this substantially larger fund from the grasp of the United States Bankruptcy Court.” It is further alleged that Barbieri later advised “If your funds are in place at the time you declare bankruptcy then they are not subject to confiscation.”
On May 19, 2009, after withdrawing $125,000 from the IRA account, Messner, with Barbieri’s counsel, filed a bankruptcy petition for relief under Chapter 7. In the petition, Messner claimed $84,410 in exempt assets and sought relief from unsecured debts totaling $86,861.47. Messner allegedly concealed the transfer of the Chevrolet Corvette, the divorce settlement proceeds, all of her unsecured creditors, and $22,000 which she transferred to pay Barbieri’s fee.
It is further alleged that on Jun 30, 2009, both Messner and Barbieri appeared at a Section 341 Meeting of Creditors and provided false statements about the bankruptcy petition’s accuracy; that they appeared at a Rule 2004 bankruptcy proceeding on October 7, 2009 and, again, Messner provided false testimony; and that Barbieri false represented that the IRA began to receive monies as part of the divorce settlement on August 1, 2009.
If convicted of all charges, Barbieri faces a statutory maximum sentence of 35 years in prison, a fine of up to $1million, three years of supervised release, and a $400 special assessment; Messner faces a statutory maximum sentence of 15 years in prison, a fine of up to $750,000, three years of supervised release, and a $300 special assessment.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Anita Eve.
Barbieri Indictment.pdf | Messner Indictment.pdf
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Cancer Research Doctor Charged with Theft and Mail FraudRead the Press Release
Steven W. Johnson, Ph.D., 49, of Elkins Park, PA, was charged, yesterday, by indictment, with mail fraud and theft from a program receiving federal funds, announced United States Attorney Zane David Memeger. The charges arise from his misuse of federal funds for cancer research to conduct a for-profit business, while he was employed as a researcher by the University of Pennsylvania School of Medicine.
If convicted the defendant faces a maximum possible sentence of 210 years imprisonment, a 3 year period of supervised release, and a $2.75 million fine.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
Click here to view the indictment
An Indictment or Information 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, 215-861-8525Tax Charge Filed Against Delaware County ManRead the Press Release
Richard Lee, 55, of Swarthmore, PA, was charged today by Information with willfully failing to file a tax return, announced United States Attorney Zane David Memeger. The Information alleges that Lee had approximately $90,371 in gross income in 2010, which required him to file a federal 2010 tax return. The Information alleged that he willfully failed to file the return.
If convicted, the defendant faces a maximum possible sentence of one year of imprisonment.
The case was investigated by Internal Revenue Service, Criminal Investigation, and is being prosecuted by Assistant United States Attorney Sarah L. Grieb.
Click here to view the indictment
An Information 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, 215-861-8525New Jersey Man Charged in Identity Theft Fraud SchemeRead the Press Release
PHILADELPHIA - Damian Gasdaska, 37, of Phillipsburg, NJ, was charged today by Indictment with one count of conspiracy, six counts of wire fraud, seven counts of bank fraud, and one count of aggravated identity theft, announced United States Attorney Zane David Memeger.
The indictment alleges that Gasdaska and his co-conspirators, Randall McMahon, of Easton, PA, and John Cordero, of Breinigsville, PA, both charged elsewhere, obtained and used personal identifying information to create false identities which he then utilized in various ways, such as applying for credit cards and purchasing or renting vehicles. One way in which Gasdaska obtained the personal identifying information was from old court records. Gasdaska allegedly took steps to create favorable credit profiles for these false identities, and to improve the individuals’ credit profiles. These steps included obtaining reports on the individuals, requesting the modification of information in the reports, and engaging in transactions in the names of the false identities to improve their credit profiles. Gasdaska allegedly prepared or obtained false driver’s licenses, social security cards, college identifications, insurance cards, employment records, and bills and invoices. He allegedly provided some of the fraudulent credit cards he acquired to his co-conspirators and kept some for himself.
According to the indictment, during the conspiracy, Gasdaska used Post Offices boxes in the name of the false identities to receive mail for various purposes, such as in connection with credit card applications, and used computers at public libraries to further the conspiracy. After co-conspirators made their purchases, they often provided the purchased items to Gasdaska who then sold them and paid the co-conspirators for their illegal services.
If convicted the defendant faces a maximum possible sentence of 335 years in prison, a five-year period of supervised release, a $9million fine, a $1,500 special assessment, and restitution.
The case was investigated by United States Secret Service, the United States Postal Inspection Service, Immigration and Customs Enforcement Homeland Security Investigations, and the Lehigh County Auto Theft and Insurance Fraud Task Force. It is being prosecuted by Assistant United States Attorney Patrick J. Murray.
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, 215-861-8525Judge Sends La Cosa Nostra Soldier to PrisonRead the Press Release
PHILADELPHIA – Eric Esposito, 43, of Philadelphia, PA, was sentenced today to 27 months in prison for conducting an illegal gambling business on behalf of the Philadelphia La Cosa Nostra Family. In addition to the prison term, U.S. District Judge Eduardo C. Robreno ordered three years of supervised release and a fine of $4,000.
On Feb. 21, 2014, after a week-long contested trial, a jury convicted Esposito of conducting an illegal gambling business involving the use of video poker machines at a private social club known as the “First Ward Republican Club” located in South Philadelphia. According to evidence presented at trial, Esposito was a fully initiated mob solider who worked in concert with other mob members to carry out the illegal gambling business on behalf of the Philadelphia La Cosa Nostra Family.
A total of 13 leaders, members and associates of the Philadelphia La Cosa Nostra Family have been convicted by a jury or pleaded guilty as part of this case. To date, 12 defendants have been sentenced and one is awaiting sentencing.
The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigations, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, and the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Hospice Owner Sentenced to More Than 14 Years for Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – Matthew Kolodesh, a/k/a “Matvei Kolodech,” 52, of Churchville, PA, was sentenced May 23, 2014 to 176 months in prison and ordered to pay $16.2 million in restitution to Medicare and $16.2 million in a forfeiture money judgment for orchestrating a scheme to defraud Medicare through his home hospice business, among other crimes, announced United States Attorney Zane David Memeger.
In October 2013, following a four week jury trial, a federal jury found Kolodesh guilty of conspiracy to commit health care fraud, 21 counts of health care fraud, 11 counts of money laundering, and two counts of mail fraud. From 2003 to 2008, Kolodesh’s business, Home Care Hospice, Inc. (“HCH”), located on Grant Avenue in NE Philadelphia, submitted false claims to Medicare totaling approximately $16.2 million for patients that were not eligible for hospice services, and for patients that never received the level of hospice services billed by HCH. Ineligible patients were patients who were not terminally ill and patients who were on service for more than six months.The scheme was successful because nurses and other staff participated in a massive fraud that involved altering patient records to make patients appear eligible for hospice services, when in reality they were not. HCH even tricked Medicare auditors. At the direction of Kolodesh, and co-owner and co-conspirator Alex Pugman, who was the Director of HCH, HCH nurses and supervisory staff routinely “fixed” patient files and re-wrote nursing documentation to make patients appear sicker “on paper,” by showing decline in medical condition through false entries for infections, fever, and weight loss, among other things. Old records were destroyed. The staff was also paid to falsely document 24 hour periods of high cost, intensive hospice care than was actually provided to the patient.
In order to buildup patient enrollment, Kolodesh and Pugman also paid health care professionals, including doctors, for referring patients to HCH, even when those patients were not eligible or appropriate for hospice services. In an effort to mask the kickback scheme, HCH fraudulently represented that some of those health care professionals were paid for servicesas medical directors, advisors, or hospice physicians.
“This massive fraud on a critical federal program costs taxpayers dearly,” said United States Attorney Zane David Memeger. “This sentence makes clear that the justice system will punish severely those criminals who engage in this type of fraud and abuse. We will continue to work diligently with our federal partners to bring to justice those who defraud the government and deprive federal programs of valuable tax dollars.”
“Medicare is a crucial component of our nation's healthcare system,” said FBI Special Agent-in-Charge Edward J. Hanko. “This sentence sends a clear message to anyone looking to game that system and steal taxpayers’ money: we will catch you, and we will put you away.”
“Kolodesh’s 14 year prison sentence is a clear message to those stealing from Medicare,” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the U.S. Department of Health and Human Services in Philadelphia. “We will keep working with our partners to protect our health care system from fraud, waste, and abuse and to send thieves to prison.”
Kolodesh siphoned $7.77 million dollars from HCH’s bank account for his own personal enrichment. His spouse was set up as a sham CEO of the company and received millions of dollars in salary draws and bonuses. Kolodesh also used funds for extensive renovations to his mansion, travel expenses for his family and friends, college tuition for his son, and a luxury automobile. He siphoned substantial sums of cash from the HCH operating account through cash kickback arrangements with various HCH vendors using a system of phony and inflated invoicing, and through a charitable donation scam arranged with a local synagogue in which he was a member.
The mail fraud convictions stemmed from another scam orchestrated by Kolodesh which involved the Philadelphia Development Corporation (PIDC). In 2005, Kolodesh and Pugman applied for a low-interest loan worth $2.5 million with PIDC, a program designed to stimulate business investment and create jobs in the city of Philadelphia. The loan money was to be used to acquire and renovate a property for the business and to create 50 bona fide jobs in Philadelphia at 2801 Grant Avenue, the site of HCH. However, between August 2005 and July 2009, the job quota was not being met. To prevent default on the loan, Kolodesh set up a sham office at the Grant Avenue location purportedly for Community Home Health (“CHH”), his Bucks County health care business. Kolodesh falsely identified 73 CHH employees as working at that office location on Grant Avenue who, in fact, did not work there.
The case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General. It was prosecuted by Assistant United States Attorney Suzanne B. Ercole and Trial Attorney Margaret Vierbuchen of the Organized Crime and Gang Section in the Justice Department’s Criminal Division.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525U.S. Files Complaint Against Philadelphia Hospice Provider and Its Owners and Operators Alleging False Claims on MedicareRead the Press Release
PHILADELPHIA – The United States filed a complaint in U.S. District Court today in a whistleblower suit against a now-defunct, for-profit Philadelphia provider of hospice services, Home Care Hospice, Inc. (HCH), and its owners and operators, announced First Assistant United States Attorney Louis D. Lappen. In its complaint, the government alleges that HCH, its Executive Director and owner Alex Pugman, its Development Executive Svetlana Ganetsky, and its de facto owner Matthew Kolodesh violated the False Claims Act when they falsely claimed and received millions of taxpayer dollars intended for dying Medicare recipients in need of hospice care. The government further alleges that Pugman, Ganetsky, Kolodesh, and HCH Chief Executive Officer Malvina Yakobashvili thereby unjustly enriched themselves at the expense of the United States. Pugman and Ganetsky, who have pleaded guilty to related criminal charges, are husband and wife, as are Kolodesh and Yakobashvili. In October 2013, a federal jury in the Eastern District of Pennsylvania found Kolodesh guilty of related criminal charges. See http://www.justice.gov/usao/pae/News/2013/October/kolodesh_release.htm
The Medicare hospice benefit is available for a patient who elects palliative treatment (medical care focused on providing relief from pain, stress, and symptoms of terminal illness) and has a life expectancy of only six or fewer months, if the patient’s disease runs its normal course. A Medicare patient receiving hospice services no longer receives services designed to cure the patient’s terminal illness. Medicare reimburses for different levels of hospice care, including continuous home care (also called crisis care), which is available only for a patient who is experiencing acute medical symptoms resulting in a brief period of crisis and who requires the immediate, short-term provision of skilled-nursing services in order to remain at home. The reimbursement rate for crisis care services is the highest daily rate a hospice can bill Medicare, and hospices are paid hundreds of dollars more on a daily basis for each patient they certify as having received crisis care services rather than routine home hospice services.The government’s complaint alleges that HCH, Pugman, Ganetsky, and Kolodesh knowingly submitted false claims and records (including fabricated records) to Medicare for purported hospice care for patients who were not terminally ill and thus not eligible for the Medicare hospice benefit. The government further alleges that these defendants knowingly submitted or caused the submission of false claims and records (including fabricated records) to Medicare for crisis care services that were not necessary or not actually provided. The government contends that, as a result of the conduct alleged in the complaint, these defendants violated the False Claims Act and cost the Medicare Program millions of dollars.
Under qui tam (whistleblower) provisions of the False Claims Act, certain private citizens may bring civil actions on behalf of the United States and may share in any recovery. If the United States intervenes in an action and proves that a defendant has knowingly submitted false claims, it is entitled to recover three times the damage that resulted and a penalty of $5,500 to $11,000 per claim. This suit was originally filed on behalf of the United States by Maureen Fox and Cathy Gonzales, former HCH employees who discovered the alleged fraud. After they internally reported the alleged fraud, HCH fired Ms. Fox, and Ms. Gonzales quit her position. The qui tam action remained in civil suspense for seven years while the United States criminally investigated and prosecuted the perpetrators. In 2012, while the case was still in suspense, and without filing its own complaint at that time, the United States intervened in Ms. Fox’s and Ms. Gonzales’ False Claims Act claims against HCH, Pugman, Ganetsky, and Kolodesh. In a related action in the Eastern District of Pennsylvania, filed in 2008, the United States obtained injunctive relief restraining financial accounts of HCH, Pugman, Ganetsky, Kolodesh, and Yakobashvili that the United States contends resulted from the alleged fraud.
The case is being investigated by the Office of Inspector General of the U.S. Department of Health and Human Services, and the Organized Crime Section of the Federal Bureau of Investigation, and has been assigned to Assistant United States Attorneys Gerald B. Sullivan and Eric D. Gill. The civil claims asserted against HCH, Pugman, Ganetsky, Kolodesh, and Yakobashvili are allegations only, and there has been no determination of civil liability.
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 in Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – Jermaine Hairston, 38, of Philadelphia, Pennsylvania, was charged by indictment, filed yesterday, with health care fraud and aggravated identity theft, announced United States Attorney Zane David Memeger.
According to the indictment, the defendant obtained the identifying information of a practicing physician, and used it to call in prescriptions to pharmacies in Philadelphia, in the names of various Medical Assistance recipients. Hairston would pick up the prescription medication, generating a claim to the patient’s health insurance, and then sell the medication for cash.
If convicted, Hairston faces a maximum possible sentence of 132 years in prison, with a mandatory minimum of two years, three years of supervised release, a $3.5 million fine and a $1,400 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration’s Office of Criminal Investigation, and the United States Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
Click here to view the indictment
An Indictment, Information or Criminal Complaint 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, 215-861-8525Mexican National Charged in Drug ConspiracyRead the Press Release
PHILADELPHIA - Jorge Bautista-Banda, a/k/a “Cochito,” a/k/a Jorge Batista-Banda, 32, of Mexico, is charged in a two-count indictment with conspiracy to distribute five kilograms or more of cocaine, and money laundering, announced United States Attorney Zane David Memeger.
According to the indictment, from July 2013 to April 23, 2014, Bautista-Banda was a member of a conspiracy that distributed more than 100 kilograms of cocaine, supplied by a Mexican-based cocaine distribution organization, which was sold and distributed in the Philadelphia area. Bautista-Banda was arrested on April 23, 2014, in connection with an alleged attempt to make a structured cash deposit of $8,000 to a corporate bank account at a bank in Philadelphia. The indictment further alleges that on April 23, 2014, following his arrival in Philadelphia from Texas, Bautista-Banda received $100,000 cash which he was directed to launder through the use of structured cash deposits to “pass through” accounts designated by Mexican sources. The indictment charges that after receiving the cash, Bautista-Banda proceeded to the Bank of America branch at 932 Walnut Street where he attempted to make a cash deposit of $8,000. The indictment further alleges that Bautista-Banda was in possession of an additional $68,000 in United States currency that he had in his hotel room in Philadelphia.
On September 24, 2013, Bautista-Banda received a sum of $145,000 in cash representing proceeds of the operations of a Philadelphia-based cocaine trafficking conspiracy. After receiving the cash, Bautista-Banda allegedly made multiple deposits, at various bank branches, in amounts less than $10,000, the purpose of which was to avoid the filing of currency transaction reports.
If convicted, Jorge Bautista-Banda faces a maximum penalty of life in prison, with a mandatory minimum of 10 years, at least five years supervised release, and a fine of $10.5 million.This case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
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, 215-861-8525Disturbance of Peregrine Falcon Nest Leads to Charges Against Bridge Repair CrewRead the Press Release
PHILADELPHIA - Nikolaos Frangos, 38, George Capuzello, 42, both of Campbell, Ohio, and Mikhail Zubialevich, a/k/a “Russian Mike,” 41, of Princeton, New Jersey were charged by indictment, unsealed today, in a conspiracy related to the disturbance of protected Peregrine Falcons, announced United States Attorney Zane David Memeger. The indictment charged the three defendants with conspiring to falsify, conceal and cover up a material fact in a matter within the jurisdiction of the Fish and Wildlife Service and the US Department of Transportation, witness tampering, and harboring an alien. Capuzello was also charged with perjury and Zubialevich was also charged with making a false statement. The defendants were arrested today.
According to the indictment, the defendants were involved, to varying degrees, in the refurbishment of the Girard Point Bridge in Philadelphia, which, for many years, had been a nesting site for peregrine falcons. As a condition of the work contract, the company, The Liberty-Alpha Joint Venture, agreed to refrain from working in the areas of the falcons’ nests during nesting season. On June 4, 2011, Capuzello allegedly directed Zubialevich and another worker to perform grinding or sanding in the “restricted zone” which frightened and disturbed the falcons and caused them to abandon their nest. During a subsequent investigation into the disturbance of the falcons, the three defendants allegedly conspired to cover up the identity of one of the workers, who was an illegal alien and was partly responsible for disturbing the Peregrine Falcons. It is further alleged that Frangos and Capuzello intimidated another person, J.W., in order to prevent or delay communication with a Special Agent relating to the possible commission of a federal offense.
If convicted Frangos faces a maximum possible sentence of 35 years in prison, Capuzello faces a maximum possible sentence of 40 years in prison, and Zubialevich faces a maximum possible sentence of 20 years in prison.
The case was investigated by the Federal Bureau of Investigation, the Office of Inspector General of the Department of Labor, the Office of Inspector General of the Department of Transportation, the Environmental Protection Agency Criminal Investigation Division, the Office of Inspector General of the Social Security Administration, U.S. Immigration and Customs Enforcement Homeland Security Investigations,and Amtrak Office of Inspector General. The case has been assigned to Assistant United States Attorney Paul G. Shapiro.
Click here to view the indictment
An Indictment, Information or Criminal Complaint 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, 215-861-8525Company Pleads Guilty to Improper Storage of Explosive Hazardous Waste and Agrees to $1.2 Million FineRead the Press Release
PHILADELPHIA – Action Manufacturing Company, headquartered in Bristol, Bucks County, pled guilty today to storing explosive hazardous waste illegally at its facility in Atglen, Chester County, PA, announced United States Attorney Zane David Memeger. The defendant has agreed to pay a fine of $1.2 million, and will face a five-year term of probation and a special assessment of $800. Its president has agreed to resign, and the company will comply with a schedule for disposing of the backlog of waste built up over many years. A sentencing hearing is scheduled for August 27, 2014.
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 defendant’s illegal business practices threatened the lives and safety of workers and neighbors,” said David G. McLeod, Special Agent in Charge of EPA’s criminal enforcement program in the Middle Atlantic States. “By creating a risk for detonation and release of hazardous waste, the company also threatened to pollute the environment. Today’s plea demonstrates EPA’s commitment to prosecute those who endanger public safety and a clean environment by ignoring the law.”
The case was investigated by the EPA’s Criminal Investigations Division and the U.S. Department of Transportation Office of Inspector General. It is being 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, 215-861-8525California Man Sentenced to 51 Months in Prison for Multi-Million Dollar Mortgage FraudRead the Press Release
PHILADELPHIA - Steven Pitchersky, 65, of Rancho Mirage, California, was sentenced today to 51 months in prison for a scheme to defraud Ally Bank that resulted in losses to the bank of approximately $5.3 million. Pitchersky, who pleaded guilty to wire fraud on September 23, 2013, operated Nationwide Mortgage Concepts (“NMC”), a California mortgage lender.
Between August 2009 and January 2011, Ally was the warehouse lender for thousands of mortgage loans in which NMC borrowed from Ally’s warehouse line of credit to refinance first mortgages held by other financial institutions. Pitchersky made misrepresentations to Ally to secure the warehouse line of credit including his false representation that NMC had a current $10 million warehouse line of credit with a company named MPL. Pitchersky stated that the contact person for MPL was a man named “Rick Jay” and he listed a phone number for Rick Jay. The phone number that was provided, however, was actually for Pitchersky’s cell phone, and MPL was the name of another business entity that Pitchersky ran. Over the next three years, Pitchersky represented to Ally multiple times that he had a warehouse lending relationship with this company.
Pitchersky used NMC’s $10 million warehouse line with Ally to obtain funds to refinance thousands of mortgages held by other banks for NMC customers. Ally required NMC to disburse funds through a third-party, commonly referred to as a title company. Pitchersky used a company called Hanover as the title company but, unbeknownst to Ally, Pitchersky had created Hanover. This subterfuge allowed Pitchersky to have complete control over money NMC acquired from Ally’s warehouse line. Between December 2010 and January 2011, Ally advanced NMC approximately $5.3 million to pay off 23 first mortgages for NMC clients. NMC failed to use these funds to pay off these mortgages and instead used the money to pay off first mortgages for other customers. At the end of January 2011 Ally discovered that defendant and NMC had not used this money to pay off the 23 loans and ended the warehouse agreement with NMC.
In addition to the prison term, U.S. District Court Judge John R. Padova ordered restitution in the amount of $3,242,888, five years of supervised release and a $100 special assessment.
In total, $17.2 billion in federal taxpayer bailout funds were invested in GMAC Inc., since rebranded as Ally Financial Inc., through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP). As of April 9, 2014, Treasury owned 17 percent of Ally Financial, and $4.1 billion of the TARP investment remained outstanding.
“Greed got the best of Pitchersky and, for his crimes, he will spend the next [XX] years in federal prison.” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Defrauding a recipient is the same as defrauding American taxpayers who funded TARP. Pitchersky drew down millions of dollars on a warehouse line of credit with Ally through lies and false pretenses, faking that he used Ally’s funds to pay off refinanced mortgages while, instead, he used the money in part to fund his luxurious lifestyle and extravagant art collection. SIGTARP and our law enforcement partners will bring justice to those committing crimes that threaten taxpayers’ TARP investments.”
The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program, and the Department of Veterans Affairs Office of Inspector General. It was prosecuted by Assistant United States Attorney David L. Axelrod.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Malvern Company Charged with Defrauding the City of PhiladelphiaRead the Press Release
An information was filed today charging Airmatic, Inc., a company located at 284 Three Tun Road, Malvern, PA, with one count of mail fraud for allegedly defrauding the City of Philadelphia of approximately $556,633.03. Airmatic allegedly supplied unapproved, off-contract products to various City departments in violation of its agreements with the City. The case was announced by United States Attorney Zane David Memeger and City of Philadelphia Inspector General Amy Kurland.
According to the information, Airmatic submitted false and fraudulent invoices to the City’s accounts payable department in order to conceal that it was providing off-contract products. Instead of reflecting the unapproved, off-contract products that were actually being provided, the invoices billed for items that were approved pursuant to the City’s agreements with defendant Airmatic. It is further alleged that Airmatic inflated the cost of the unapproved, off-contract items and products it provided to the City by an average of approximately 87% and profited from this scheme in the amount of approximately $556,633.03. For example, in one instance Airmatic falsely invoiced the City for a bearing assembly, an expensive industrial product and approved contract item, when, in fact, Airmatic delivered 12 asphalt rakes, items for which the defendant had no contract. To disguise the transaction, Airmatic manipulated the invoice and billed the City for the price of the bearing assembly, which the City never received, resulting in an extravagant profit margin on the sale of the rakes. Between January 2007 and August 2012, hundreds of similar transactions took place.
If convicted the defendant faces a maximum possible sentence of five years of probation, a $500,000 fine or twice the pecuniary gain/loss, a $400 special assessment, and restitution to the City of Philadelphia.
The case was investigated by the City of Philadelphia Office of Inspector General and the FBI. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
Click here to view the indictment
An Indictment, Information or Criminal Complaint 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, 215-861-8525Indictment Charges Lafayette Hills Man with Pirating Movies and TV ShowsRead the Press Release
Brian Bethman, of Lafayette Hill, Pennsylvania, was charged by indictment, filed on May 15, 2014, smuggling goods into the United States, trafficking in counterfeit labels, and criminal copyright infringement, announced United States Attorney Zane David Memeger.
According to the indictment, between April 2010 and April 2011, Bethman smuggled in more than 6,000 audiovisual copies of movies and television shows that were protected by copyright. The television shows included, but were not limited to, House, Criminal Minds, NCIS, Weeds, The Office, and Royal Pains; the movies included, but were not limited to, Justfied, The Pacific, Dead Like Me, and Bambi. Bethman is charged with seven counts of smuggling goods into the United States, one count of trafficking in counterfeit labels, and one count of criminal copyright infringement.
If convicted the defendant faces a maximum possible sentence of 30 years in prison.The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Special Assistant United States Attorney Karen A. Fox.
Click here to view the indictment
An Indictment or Information 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, 215-861-8525Nifty Fifty's Accountant Indicted on Tax ChargesRead the Press Release
William J. Frio, 58, of Folsom, PA, is charged by indictment, unsealed today, in a tax evasion scheme involving the Nifty Fifty’s restaurant chain, announced United States Attorney Zane David Memeger. Frio is charged with conspiracy to commit tax evasion by operating the Nifty Fifty’s long-running scheme to avoid paying millions of dollars in personal and employment taxes. The scheme defrauded the Internal Revenue Service by failing to properly account for more than $15 million in gross receipts. Frio is also charged with filing his own false tax returns, aggravated structuring of financial transactions, and loan fraud.
Frio is an accountant and income tax preparer who has provided services to the Nifty Fifty’s organization since 1986. According to the indictment, Frio conspired and agreed with the owners and principals of Nifty Fifty’s, all of whom have been charged separately, in a scheme to use skimmed cash to pay themselves and people and businesses who supplied goods and services to the Nifty Fifty’s restaurants, providing those persons and businesses with the opportunity to evade the payment of their own taxes.
It is further alleged that, in 2008, Frio submitted a false loan application to Sovereign Bank, for a $417,000 mortgage for his personal residence. Frio allegedly submitted to the bank bogus federal income tax returns for 2006 and 2007, and bogus Forms W-2, falsely representing he had earned substantial income from Tanfasia, Inc., when, as the defendant knew, the 2006 and 2007 tax returns that he had actually submitted to the Internal Revenue Service showed far less income than the false returns supplied to Sovereign Bank, and that the defendant had not been employed by Tanfasia, Inc. in 2006 or 2007. It is further alleged that between January 2009 and November 2009, Frio knowingly structured transactions with Sovereign Bank, totaling more than $2.6 million, as part of a pattern of illegal activity involving transactions of more than $100,000 in a 12-month period. As explained in the indictment Frio used his position as the Nifty Fifty’s accountant to embezzle hundreds of thousands of dollars of funds that belonged to the organization.
If convicted, Frio faces a maximum possible sentence of 57 years in prison, full restitution to the IRS and a fine of up to $2.75 million.
The case was investigated by the Internal Revenue Service Criminal Investigation Division and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul G. Shapiro and Nancy E. Potts.
Click here to view the indictment
An Indictment, Information or Criminal Complaint 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 Man Charged with Attempting to Disable Mass TransitRead the Press Release
Nicolas Colon, 23, of Philadelphia, Pennsylvania, was charged today by indictment with one count of disabling and attempting to disable a mass transportation vehicle and one count of conveying false information concerning an attempt to disable a mass transportation vehicle, announced United States Attorney Zane David Memeger.
According to the indictment, on or about March 16, 2014, Colon placed objects and debris on the subway train tracks of the Broad Street Line of the Southeastern Pennsylvania Transportation Authority (“SEPTA”). On or about March 18, 2014, Colon allegedly provided a false name, false date of birth, and false Social Security number to law enforcement officers investigating the Broad Street Line incident.
If convicted of both counts, Colon faces a maximum possible sentence of 40 years in prison, a $500,000 fine, three years of supervised release and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force in Philadelphia, including the SEPTA Transit Police Department. The case 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, 215-861-8525Local Company Charged with Improper Storage of Explosive Hazardous WasteRead the Press Release
PHILADELPHIA – An information, filed on May 7, 2014, charges Action Manufacturing Company with illegal storage of explosive hazardous waste at its facility in Atglen, Chester County, PA, and transportation of hazardous material in violation of regulations, announced United States Attorney Zane David Memeger.
Action Manufacturing makes timing and arming devices for munitions and explosives. Its manufacturing process generates explosive solid waste, that must be disposed of in accordance with the Resource Conservation and Recovery Act. According to the information, instead of sending its waste to an approved treatment, storage and disposal facility, Action Manufacturing stockpiled identified explosive hazardous waste at its Atglen facility without a permit, including scrap parts and components that were years or even decades overdue for disposal. Action Manufacturing also violated Department of Transportation recordkeeping regulations for transporting explosive material on the public roads.
If convicted, Action Manufacturing faces a maximum possible sentence of five years of probation, with a mandatory minimum term of one year of probation, a $50,000 fine for violating transportation regulations, and fine of $100,000 per day for its storage violation, and a special assessment of $800.
The case was investigated by the Environmental Protection Agency's Criminal Investigations Division, and the United States Department of Transportation Office of Inspector General. It is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
Click here to view the indictment
An Indictment, Information or Criminal Complaint 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 Sentences Armed Robber to 41 1/2 Years in PrisonRead the Press Release
PHILADELPHIA – Hakim King, 28, of Philadelphia, PA, was sentenced today to 498 months in prison for his role in two armed robberies of convenience stores. King and his co-defendant, Rezekiel Harris, robbed a Wawa on Bryn Mawr Avenue in Radnor, on February 9, 2012, and, on February 12, 2012, robbed a Sunoco A-Plus store, on Conshohocken State Road in Bala Cynwyd. In one of the robberies, a victim was hit by debris when the defendants fired a gun was fired into the concrete floor before taking the store’s $1,225 in proceeds. King was convicted at trial on April 8, 2014, of two counts each of robbery which interfered with interstate commerce and using and carrying a firearm during a crime of violence.
In addition to the prison term, U.S. District Court Judge Michael Baylson ordered five years of supervised release, $1,914 in restitution, and a $400 special assessment.
Rezekiel Harris, was sentenced on May 6, 2014 to 20 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States Attorney Jose Arteaga.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Indicted on Gun ChargesRead the Press Release
An indictment was unsealed today charging Joshua Moses, a/k/a “Roy R. Moses,” 32, of Philadelphia, Pennsylvania, with two counts of convicted felon in possession of firearm, announced United States Attorney Zane D. Memeger.
If convicted, defendant faces a maximum of 20 years in prison, three years of supervised release, and a $500,000 fine.
This case is part of Project Safe Neighborhoods, a federal initiative designed to identify and prosecute firearms offenders in federal court, where the defendant is likely to receive a substantial sentence upon conviction.
This case was investigated by the Bureau of Alcohol, Tobacco & Firearms and is being prosecuted by Assistant United States Attorney Ewald Zittlau.
Click here to view the indictment
An Indictment or Information 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, 215-861-8525Alleged War Criminal Arrested on Fraud ChargesRead the Press Release
An indictment was unsealed yesterday charging Jucontee Thomas Woewiyu, a/k/a “Jucontee Thomas Smith,” 68, of Collingdale, Pennsylvania, with lying on his application for U.S. citizenship by not disclosing his alleged affiliation with a violent political group in Liberia, announced United States Attorney Zane David Memeger. Woewiyu is charged with seven counts of perjury, two counts of fraudulently attempting to obtain citizenship, four counts of fraud in immigration documents, and three counts of false statements in relation to naturalization.
According to the indictment, Woewiyu was residing in the U.S. when he formed the Association for Constitutional Democracy in Liberia (ACDL) to advocate against the regime of Master Sergeant Samuel K. Doe in Liberia. Woewiyu, and others, also formed the National Patriotic Front of Liberia (NPFL) a military organization committed to the violent overthrow of the Doe government. The ACDL provided funding to the NPFL. In 1990, a splinter group captured and executed Doe. The NPFL, however, persisted with a brutal campaign for control of the country. An attack, in October of 1992 by NPFL forces, left scores of residents of Monrovia dead. According to the indictment, Woewiyu presided as NPFL Minister of Defense during a brutal military campaign during which perceived adversaries were tortured, civilians were executed, girls and women were raped and forced into sex slavery, and humanitarian aid workers were murdered.
In his application for U.S. Citizenship, Woewiyu responded that he had not ever advocated for the overthrow of any government by force or violence and that he had never persecuted any person because of race, religion, national origin, membership in a particular social group or political opinion.
If convicted the defendant faces a maximum possible sentence of 110 years imprisonment, a $4 million fine, not more than 3 years supervised release and a $1,600 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
Click here to view the indictment
An Indictment or Information 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 Man Charged with Gun CrimeRead the Press Release
An Information was filed charging Jelani Christmas, 30, of Philadelphia, PA, with being a felon in possession of three firearms, ammunition and a large capacity magazine, announced United States Attorney Zane David Memeger.
If convicted the defendants face a maximum possible sentence of ten years imprisonment and $250,000 fine.
The case was investigated by the ATF, and is being prosecuted by Assistant United States Attorney Alicia M. Freind.
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, 215-861-8525