Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Lawyer Admits to Stealing Client FundsRead the Press Release
PHILADELPHIA - Gomer Thomas Williams, 54, of Philadelphia, PA, pleaded guilty today to one count of wire fraud in connection with 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.
U.S. District Court Judge Legrome Davis scheduled a sentencing hearing for June 23, 2014. Williams faces a potential advisory sentencing guideline range of 33 to 41 months in prison, a $100 special assessment, a possible fine, and up to three years of supervised release.
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.
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, 215-861-8525Tax Return Preparer Arrested for Filing False Tax ReturnsRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Edward J. Rorie, 50, of Philadelphia, PA, with 25 counts of preparing and filing false tax returns, announced United States Attorney Zane David Memeger. Rorie was arrested this morning. According to the indictment, for tax years 2009 through 2011, Edward J. Rorie prepared at least 25 tax returns which were materially false. In preparing the fraudulent returns, the indictment alleges that Edward J. Rorie variously claimed expense deductions and tax credits to which the filers not entitled to receive. The tax credits included the First Time Home Buyer Tax Credit, The Hope Tax Credit, The Earned Income Tax Credit, Education Credits, The Child Care Tax Credits and The Recovery Act’s Additional Child care Credit. The indictment alleges a loss to the Internal Revenue Service of at least $100,000.
If convicted, Rorie faces a maximum possible sentence of 75 years of imprisonment, a fine of $6.25 million, a special assessment of $2,500 and 1 year of supervised release.
The case was investigated by Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with Stealing Dead Mother's BenefitsRead the Press Release
Donald Sheppard, 57, of Philadelphia, PA, was charged today by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, after Sheppard’s mother died in December 2001, Sheppard improperly received and converted to his own use the Retirement and Suvivor’s Insurance (RSI) benefit payments that were intended for her. He collected these payments from early 2002 until the benefits were suspended in or about March 2005.
It is further alleged that between May 2003 and August 2012, Sheppard improperly received and converted to his own use the SSI benefits for individual J.B. and, between December 2005 and August 2012, improperly received and converted to his own use the SSI benefits for individual A.M. Sheppard allegedly defrauded the Social Security Administration of approximately $162,153.85.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a three-year period of supervised release, a $250,000 fine, a $100 special assessment, and the imposition of full restitution.
The case was investigated by the Social Security Administration-Office of the Inspector General and Homeland Security Investigations and 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, 215-861-8525Philadelphia Man Charged with Stealing Dead Mother's BenefitsRead the Press Release
Donald Sheppard, 57, of Philadelphia, PA, was charged today by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, after Sheppard’s mother died in December 2001, Sheppard improperly received and converted to his own use the Retirement and Suvivor’s Insurance (RSI) benefit payments that were intended for her. He collected these payments from early 2002 until the benefits were suspended in or about March 2005.
It is further alleged that between May 2003 and August 2012, Sheppard improperly received and converted to his own use the SSI benefits for individual J.B. and, between December 2005 and August 2012, improperly received and converted to his own use the SSI benefits for individual A.M. Sheppard allegedly defrauded the Social Security Administration of approximately $162,153.85.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a three-year period of supervised release, a $250,000 fine, a $100 special assessment, and the imposition of full restitution.
The case was investigated by the Social Security Administration-Office of the Inspector General and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525West Chester Man Charged with Threatening Federal Law EnforcementRead the Press Release
Justin Michael Credico, 32, of West Chester, PA, was charged by indictment, filed yesterday, with two counts of threatening Federal law enforcement officers and two counts of threatening the immediate family members of Federal law enforcement officers, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 32 years imprisonment.
The case was investigated by agents of the Federal Bureau of Investigation and is being prosecuted by Special Assistant United States Attorney Karen Fox.
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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, 215-861-8525Information Charges Bala Cynwyd Man with Financial CrimesRead the Press Release
Jerold J. Cohen, 78, of Bala Cynwyd, PA, was charged today by Information with conspiracy, aggravated structuring of financial transactions, and filing false tax returns, announced United States Attorney Zane David Memeger. The Information charges that Cohen operated a sports bookmaking operation and accepted payment from his bettors in the form of checks. According to the information, between May 2009 and January 2011, Cohen cashed and caused to be cashed over 170 such checks, each made out for just under $10,000, for a total of over $1.5 million, which was income he received in connection with his bookmaking operation. It is further alleged that in 2009 and 2010, Cohen underreported income from his bookmaking operation by at least $450,000 in each year.
If convicted, the defendant faces a maximum possible sentence of 21 years in prison, threeyears of supervised release, a $950,000 fine, a $400 special assessment, and forfeiture of $1.5 million.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Nancy E. Potts.
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1An Indictment/ Information/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, 215-861-8525Former Banker Sentenced for Fraud SchemeRead the Press Release
Daniel Mumbower, 35, a former banker, of Glassboro, NJ, was sentenced today to 41 months in prison for two counts of bank fraud and one count of receiving bribes by a bank employee for his role in a scheme that defrauded lenders of nearly $3 million. U.S. District Court Judge C. Darnell Jones, II, also ordered three years of supervised release, a $300 special assessment, restitution of $2,718,758, and forfeiture of $2,516,317. Mumbower must surrender to the Bureau of Prisons on May 14, 2014.
Mumbower worked as a financial specialist at Wachovia Bank in Sicklerville, New Jersey, from April 2005 through April 2008. In mid-2006, Mumbower met a corrupt loan broker, Gerald Cathie (charged elsewhere), who began bringing clients’ applications for lines of credit to Mumbower for submission to Wachovia. Through Cathie, Mumbower met Simon Aouad (charged elsewhere). Aouad also brought others’ loan applications to Mumbower. Mumbower realized that the applications Cathie and Aouad brought him contained false income and employment information and were supported by false documentation, such as false tax returns, but he processed the applications anyway. Mumbower earned a commission from Wachovia Bank for each loan that closed. Mumbower paid Cathie and Aouad a commission out of the proceeds of the loan, which was against bank policy, and Cathie paid Mumbower a cash kickback of approximately $200 per approved loan. Aouad, also, paid Mumbower kickbacks totaling approximately $10,000. The defendant processed a regular, weekly stream of fraudulent loan applications brought to him by Cathie and Aouad. Most applications were for lines of credit totaling between $50,000 and $100,000.
Mumbower received several thousand dollars in kickbacks from both Cathie and Aouad for assisting them in obtaining lines of credit for others. Most of the loans were unsecured business lines of credit. The borrowers defaulted. The total intended loss for the fraudulent lines of credit was approximately $765,000. During the same time frame, Mumbower met John Lucidi, charged elsewhere, a corrupt mortgage broker working in West Chester and Newtown Square. Lucidi was orchestrating a mortgage fraud scheme in which he and others, including Aouad, found buyers to apply for mortgages to purchase real estate located mostly in North Wildwood, New Jersey. With the knowledge of Lucidi, Aouad, and others, but unbeknownst to the lenders, the buyers applied for the mortgages using false and fraudulent income and asset information and received tens of thousands of dollars in undisclosed kickback payments for purchasing the properties. At the request of Aouad and Lucidi, Mumbower provided false verifications of deposit (VODs) purporting to show that the mortgage applicants had tens of thousands of dollars in Wachovia Bank accounts. These false VODs were provided to the mortgage lenders, including Wells Fargo Bank, PNC Bank, and others, in support of mortgage applications to purchase real estate located in West Chester, Pennsylvania; North Wildwood, New Jersey; and Boston, Massachusetts. In exchange for providing the false VODs, Aouad paid Mumbower $5,000 cash. Many of the properties purchased using the false verifications of deposits supplied by Mumbower went into default, and the lenders lost approximately $2 million.
The defendant faces a maximum possible sentence of 90 years of imprisonment, five years of supervised release, a $3 million fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Nancy E. Potts.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Final Defendant in Foreclosure Rescue Fraud Scheme SentencedRead the Press Release
PHILADELPHIA - John Bariana, 41, of Mullica Hill, NJ, was sentenced today to 18 months in prison for his role in a massive mortgage fraud scheme that resulted in at least 35 fraudulent mortgage loans worth more than $10 million. Bariana pleaded guilty on August 26, 2010 to 12 counts. In addition to the prison term, U.S. District Court Judge Mary McLaughlin ordered a $7,500 fine, a $1,200 special assessment, and forfeiture of $400,000 joint and several with co-defendants Edward and Jacqueline McCusker. The McCuskers were sentenced on March 6, 2014. Edward McCusker was sentenced to five years in prison, his wife Jacqueline was sentenced to one year of home confinement followed by three years of probation.
The McCuskers operated Axxium Mortgage, Inc. with Bariana. Co-defendants Jeffrey A. Bennett and Stephen G. Doherty, owners of the Doylestown law firm Bennett & Doherty, P.C., were also involved in the scheme and pleaded guilty.
The defendants targeted financially distressed homeowners facing foreclosure, falsely promised them help in saving their homes, engaged in real estate transactions with straw purchasers, and obtained dozens of fraudulent mortgages. The defendants took whatever equity the homeowner had left, funneled it through shell corporations they controlled, used some of it to pay the new mortgages, and put the rest of the equity into their own bank accounts.
The defendants promised financially distressed homeowners that they would find an “investor” who would help them save their home. The defendants would then either purchase the home themselves or arrange for a straw purchaser to obtain a fraudulent mortgage and then transfer of the title of the homeowner?s residence to the straw purchaser. The McCuskers, along with Bariana, obtained the fraudulent mortgages by submitting false documents to mortgage lenders and making false claims about the purchasers’ finances. The defendants also concealed from the lender the fact that the homeowner was going to continue to reside in the home and that the mortgage payments were going to continue to be made, in part, by the distressed homeowner and funneled through the straw purchaser. Bariana and Jacqueline McCusker each acted as straw purchasers for ten homes. The defendants also recruited at least seven other persons to act as straw owners in order to obtain additional fraudulent mortgages.
Doherty solicited and referred distressed homeowners to Edward McCusker, and used fraudulent bankruptcy filings for some of the distressed homeowners to delay foreclosure until McCusker had obtained an investor and a mortgage. Bennett handled the closings for the real estate transfers, falsifying the settlement statements and manipulating the information provided to the lender in order to hide the nature of the scheme until after the loan was funded.
Doherty was sentenced to one year and one day in prison and ordered to forfeit $202,644.33; Bennett was sentenced to 18 months in prison, a $7,500 fine, a $400 special assessment and forfeiture joint and several with Doherty. A federal jury convicted the McCuskers on June 22, 2011 of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, wire fraud and mail fraud. In addition to their prison terms, the McCuskers were ordered to forfeit $400,000; Edward McCusker was ordered to pay a fine of $12,500, a special assessment of $1,000, and was ordered to complete three years of supervised release; Jacqueline McCusker was ordered to pay a special assessment of $900.
This case was investigated by the Federal Bureau of Investigation and the Pennsylvania Department of Banking. It is being prosecuted by Assistant United States Attorney Nancy Rue.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Charge Filed Against Federal Prison InmateRead the Press Release
Shamarr Joel Pitts, 25, of Philadelphia, Pennsylvania, was charged by indictment with one count of possession of contraband in prison, on or about November 14, 2013, in the Federal Detention Center in Philadelphia, Pennsylvania, announced United States Attorney Zane David Memeger. The indictment charges that Pitts possessed a sharp metal object with a handle made of cloth wrapped with a shoelace that was an object designed or intended to be used as a weapon.
If convicted of all counts, Pitts faces a maximum sentence of five years imprisonment, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case has been investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. The case has been assigned to Assistant United States Attorney Thomas M. Zaleski.
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An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Armored Car Employee Charged with Theft and Tax EvasionRead the Press Release
Tanika Victoria Little, 35, of Philadelphia, PA, was charged today in a superseding indictment with two counts of bank theft and one count of tax evasion. Little was an employee of Brink’s, Inc., a national armored truck company which delivered cash to banks, among other businesses. On February 15, 2011 and on March 1, 2011, Little came into possession of incorrectly routed bags of cash totaling approximately $110,000 in $20 denominations. The indictment alleges that Little failed to deliver the bags of cash to Bank of America's Drexel Hill branch and began making deposits into her personal bank accounts in $20 denominations. It is further alleged that Little, whose annual income from Brink=s was approximately $41,000 at the time, deposited approximately $41,840 in cash in $20 denominations into three different bank accounts between March 2, 2011 and June 1, 2011. On June 29, 2011, within an eight-hour period of time, Little allegedly purchased 27 money orders, totaling approximately $13,000, with cash from eight different retail establishments in South Philadelphia, PA. In addition, in 2011, Little allegedly reported that she had paid approximately $25,000 for exterior and interior home improvements in cash, including $2,000 for a remodeled bathroom, $4,300 for a remodeled kitchen, $8,500 for a remodeled basement, and $9,000 for rebricking of her home’s exterior.
The indictment alleges that when Little’s 2011 federal income tax return was filed, she evaded taxes by falsely reporting that her total gross income was $28,870, when her true gross income was approximately $138,870, as demonstrated by her alleged acquisition of the missing money, her deposits and expenditures.
If convicted, Little faces a maximum possible sentence of 65 years imprisonment, a five-year term of supervised release, a fine of up to $2.1 million, and a $300 special assessment.
The case was investigated by United States Secret Service and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Anita Eve.
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A Superseding 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, 215-861-8525Final Defendant in Tax Fraud Scheme Pleads GuiltyRead the Press Release
Wendell Cisco, 39, of York, PA, pleaded guilty today to his role in a tax fraud scheme that bilked the government of over $1.8 million. Cisco is one of nine defendants who participated in a conspiracy to defraud the Internal Revenue Service through false tax returns. Cisco pleaded guilty to one count of conspiracy to file false claims and one count of theft of government property, admitting responsibility for $525,434.74 in actual losses. Sentencing is scheduled for June 16, 2014. Cisco faces a statutory maximum sentence of 20 years in prison plus possible restitution to the IRS. He is the last defendant to plead guilty.
Between September 2006 and March 2011, Michael Akers filed false tax returns on behalf of people who believed he was a legitimate tax preparer, who knew he was not a legitimate tax preparer, or who had their identities stolen and did not know tax returns were being filed. Akers would allegedly: inflate the amount of taxes paid by a tax filer, claim refunds to which the filer was not entitled, file the return electronically, have the refund electronically deposited into a bank account, and take a cut of the refund check. Each fraudulent return resulted in a refund in the thousands of dollars. Cisco, and each of the other co-defendants, facilitated the fraudulent returns by providing Akers tax payers’ identity information for Akers to prepare the false returns or by providing Akers bank accounts into which Akers could direct the IRS to send the refunds. The scheme attempted to defraud the government of more than $3.2 million, with actual losses of more than $1.8 million.
Money was passed among members of the conspiracy in face to face hand-offs, and in wire transfers among some of the defendants.
Charged in the original indictment were: Michael Akers, of Philadelphia and Cherry Hill, NJ, Raymond Holmes, of Philadelphia, William Fisher, of Philadelphia, Lynell Matthews and Latoya Matthews, both of Whitesboro, NJ, Maria Latorre, of York, PA, and Jalon Hopewell, of Philadelphia. Ruby Jones, of Philadelphia, was charged separately by information.
The case was investigated by the Internal Revenue Service Criminal Investigation Division and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Sarah Grieb and Special Assistant United States Attorney Karen Fox.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Berks County Businessman Charged with Tax FraudRead the Press Release
Harvey G. Bitler, Sr., 56, of Shillington, PA, was charged today by information with failing to pay over to the government income taxes and social security taxes withheld from his employees’ paychecks, announced United States Attorney Zane David Memeger.
Bitler was the owner of Big H Farms and BH Farms in Berks County, Pennsylvania. Big H Farms provided labor for mushroom growing facilities and BH Farms employed salaried employees associated with the operation and management of Big H Farms. The information alleges that these companies withheld Medicare and Social Security taxed (FICA taxes) and income taxes from their employees’ paychecks but, between 2007 and 2012, made no payments to the Internal Revenue Service of these withheld taxes. It is further alleged that between 2008 and 2012, BH Farms did not pay over all the taxes withheld in the first quarter of 2008, and made no payments to the Internal Revenue Service for the remaining quarters of those years. In total, for these periods, Bitler withheld but allegedly failed to pay a total of $4,566,572.04.
If convicted, the defendant faces a maximum possible sentence of five years in prison and possible restitution to the IRS.
The case was investigated by the Internal Revenue Service Criminal Investigations with the assistance from revenue agents with Small Business and Self-Employed Division of the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Albert S. Glenn.
Click here to view the indictment
1An 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, 215-861-8525Real Estate Developer Sentenced for Bank and Loan FraudRead the Press Release
PHILADELPHIA - Michael Pouls, 52, of Gladwyne, Pennsylvania, was sentenced today to 96 months in prison for fraudulently inducing two banks to loan him a total of $13.35 million. Pouls defrauded National Penn Bank in 2007 and the former Wilmington Bank in 2008 by presenting fraudulent securities statements. He pleaded guilty on December 10, 2012 to one count of bank fraud, one count of wire fraud and two counts of loan fraud.
Pouls signed closing documents on the National Penn loan in November 2007 knowing that the collateral he had pledged – a TD Ameritrade account - had already been depleted. Seven months later, in June 2008, he likewise obtained a second and much larger loan from Wilmington Trust based on the same non-existent collateral, giving both banks negative pledges on the identical phony collateral. For a period of more than two years, Pouls regularly provided both banks with forged account statements. In 2010, Pouls asked the banks for even more money and that’s when National Penn discovered the fraud.
In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered five years of supervised release, restitution/forfeiture in the amount of $11,975,053.80, and a $400 special assessment.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Karen Grigsby.
Lancaster Pair Charged in Bank RobberyRead the Press Release
An Indictment was filed today charging Kyle Costello, 27, and Matthew Hill, 29, both of Lancaster, PA, with conspiracy to commit armed bank robbery, armed bank robbery, carrying and using a firearm during and in relation to a crime of violence, and aiding and abetting, announced United States Attorney Zane David Memeger. Hill is also charged with attempted bank robbery.
According to the indictment, on November 7, 2013, the defendants robbed the National Penn Bank, on Lancaster Pike in Shillington, Pennsylvania, at gunpoint. It is further alleged that on December 6, 2013, Hill tried to rob the Susquehanna Bank, on E. Market Street in York, Pennsylvania.
If convicted the defendants face a maximum possible sentence of life in prison, with a mandatory minimum sentence of seven years consecutive to any other sentence imposed, and a fine of up to $1million.
The case was investigated by the FBI, York City Police Department, Cumru Township Police Department, Lancaster City Police Department. It is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
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, 215-861-8525Florida Man Charged in Tax SchemeRead the Press Release
Marc Celestin, 34, of Miami, Florida, was charged today by Indictment with eight counts of wire fraud and eight counts of making a false claim against the United States, announced United States Attorney Zane David Memeger. The indictment alleges that from January 2011 to May 2012, Celestin used the stolen identities of a number of people to fraudulently prepare tax returns directing that the tax refund checks be direct deposited to bank accounts opened and controlled by Marc Celestin.
If convicted the defendant faces a maximum possible sentence of 200 years of imprisonment, three years of supervised release, a $4,000,000 fine, and a special assessment of $1,600.
The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Laurie Magid.
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, 215-861-8525Bucks County Couple Sentenced for Foreclosure Rescue Fraud SchemeRead the Press Release
Scam involved lawyers, mortgage brokers and more than $14.6 million in propertyPHILADELPHIA - Edward G. McCusker, 49, of Chesterbrook, PA, was sentenced today to five years in prison for a massive mortgage fraud scheme that resulted in at least 35 fraudulent mortgage loans worth more than $10 million. His wife Jacqueline, 49, of New Hope, PA, was sentenced to one year of home confinement followed by three years of probation for her role in the crime. A federal jury convicted the couple on June 22, 2011 of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, wire fraud and mail fraud. U.S. District Court Judge Mary McLaughlin handed down the sentence. In addition to the prison terms, the McCuskers were ordered to forfeit $400,000; Edward McCusker was order to pay a fine of $12,500, a special assessment of $1,000, and complete three years of supervised release; Jacqueline McCusker was ordered to pay a special assessment of $900.
The McCuskers operated Axxium Mortgage, Inc., along with co-defendant John Bariana who pleaded guilty and is awaiting sentencing. Co-defendants Jeffrey A. Bennett and Stephen G. Doherty, owners of the Doylestown law firm Bennett & Doherty, P.C., also pleaded guilty. Doherty was sentenced, yesterday, to one year and one day in prison; Bennett’s sentencing is scheduled for March 7, 2014.
The defendants targeted financially distressed homeowners facing foreclosure, falsely promised them help in saving their homes, engaged in real estate transactions with straw purchasers, and obtained dozens of fraudulent mortgages. The defendants took whatever equity the homeowner had left, funneled it through shell corporations they controlled, used some of it to pay the new mortgages, and put the rest of the equity into their own bank accounts.
The defendants promised financially distressed homeowners that they would find an "investor" who would help them save their home. The defendants would then either purchase the home themselves or arrange for a straw purchaser to obtain a fraudulent mortgage and then transfer of the title of the homeowner's residence to the straw purchaser. The McCuskers, along with Bariana, obtained the fraudulent mortgages by submitting false documents to mortgage lenders and making false claims about the purchasers’ finances. The defendants also concealed from the lender the fact that the homeowner was going to continue to reside in the home and that the mortgage payments were going to continue to be made, in part, by the distressed homeowner and funneled through the straw purchaser. Bariana and Jacqueline McCusker each acted as straw purchasers for ten homes. The defendants also recruited at least seven other persons to act as straw owners in order to obtain additional fraudulent mortgages.
Doherty solicited and referred distressed homeowners to Edward McCusker, and used fraudulent bankruptcy filings for some of the distressed homeowners to delay foreclosure until McCusker had obtained an investor and a mortgage. Bennett handled the closings for the real estate transfers, falsifying the settlement statements and manipulating the information provided to the lender in order to hide the nature of the scheme until after the loan was funded.
This case was investigated by the Federal Bureau of Investigation and the Pennsylvania Department of Banking. It is being prosecuted by Assistant United States Attorney Nancy Rue.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Shooting Gun into the Air Gets Convicted Felon 20 Years in PrisonRead the Press Release
PHILADELPHIA – Francis Aponte, 47, of Philadelphia, was sentenced today to 20 years in prison for possession of a firearm by a convicted felon. On June 17, 2012, Aponte was standing on the sidewalk near Indiana Avenue and 4th Street when two Philadelphia Police Officers spotted him shooting a gun into the air. The officers approached and saw Aponte throw the handgun – a .380 caliber Indian Arms semi-automatic – to the ground. Aponte was arrested and charged as a convicted felon in possession of a firearm. A federal jury found him guilty on December 5, 2013. Of the 20 year term, 15 years is mandatory. In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered five years of supervised release and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Jose R. Arteaga.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Charges Allege Philadelphia Woman Was Illegally Receiving Dead Mother's BenefitsRead the Press Release
Nancy Gonzalez, 74, of Philadelphia, PA, 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 December 29, 1994 and September 2012, Gonzalez received and converted to her own use survivor's insurance benefits intended for her mother. The benefits checks that Gonzalez’s mother received were directly deposited into an account jointly held by the defendant and the intended benefits recipient. After her mother died, Gonzalez did not report the death, resulting in fraudulent payments of approximately $155,400.33.
If convicted the defendant faces a maximum possible sentence of 15 years in prison, a $500,000 fine, and three years supervised release.
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.
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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, 215-861-8525Virginia Man Charged in Identity Theft RingRead the Press Release
Michael Bullock, 29, of Highland Springs, Virginia was charged today by Indictment with one count of bank fraud and one count of aggravated identity theft, announced United States Attorney Zane David Memeger.
The indictment alleges that Bullock entered TD Bank branches and used false driver’s licenses and posed as the true account holders of TD Bank accounts in order with withdraw money from and cash fraudulent checks against the accounts.
Bullock faces a maximum sentence of 32 years’ in prison, including a two year mandatory term, a five year period of supervised release, a $1,250,000 fine, and a $200 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guiltyUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Jersey Woman Charged in Identity Theft RingRead the Press Release
Celeste C. Paige, 55, of Newark, New Jersey, was charged today by Indictment with two counts of bank fraud and two counts of aggravated identity theft, announced United States Attorney Zane David Memeger.
The indictment alleges that Paige entered TD Bank and Susquehanna Bank branches and used false driver’s licenses, sometimes posing as the true account holders, in order with withdraw money from and cash fraudulent checks against the customers’ accounts.
Paige faces a maximum sentence of 64 years in prison, including a two year mandatory term of imprisonment, a five year period of supervised release, a $2.5 million fine, and a $400 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guiltyUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Chester County Landscaping Business Charged in Immigration CaseRead the Press Release
C. M. Jones, Inc., a landscaping business located in Chester County, PA, was charged today by Information with one count of conspiracy to make a false statement in an immigration matter, announced United States Attorney Zane David Memeger.
If convicted the owner of C. M. Jones, Inc. faces a maximum possible sentence of five years of probation, a $500,000 fine, and a $100 special assessment
The case was investigated by the Department of Homeland Security and the Department of Labor, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
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, 215-861-8525Alleged Mask-Wearing Robber IndictedRead the Press Release
PHILADELPHIA – Blair Thomas, Jr., 29, of East Lansdowne, PA, was charged today, by indictment with the robbery of a bank in Springfield, PA, and the attempted armed robberies of postal employees in Yeadon and in Darby, PA, announced United States Attorney Zane David Memeger. Thomas is also charged with being a convicted felon in possession of a firearm.
According to the indictment, on January 22, 2014, Thomas, armed with a .45-caliber Ruger, attempted to rob a United States Postal Service employee at the Yeadon Post Office, located at 709 Church Lane, of money orders. On that same date, Thomas, again armed with a .45-caliber Ruger, attempted to rob a United States Postal Service employee at the Darby Post Office, located at 801 Main Street, of money orders. On January 23, 2014, it is alleged that Thomas robbed the Wells Fargo Bank, at 888 Baltimore Pike in Springfield, of approximately $1,890. According to a criminal complaint filed on January 29, 2014, on each of the incidents Thomas wore a mask to disguise his appearance.
If convicted of these charges, Thomas faces a mandatory minimum sentence of 30 years in prison with a maximum sentence of life, up to five years of supervised release, a fine of up to $1.5 million, and a $600 special assessment.
The U.S. Attorney’s Office in the District of Delaware also indicted Thomas today on separate federal charges (for more information on that case, go to www.justice.gov/usao/de).
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Jessica Natali.
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, 215-861-8525Collegeville Man Charged in Child Exploitation CaseRead the Press Release
Matthew Krapf, 43, of Collegeville, PA, is charged by Indictment, unsealed today, with numerous counts of child exploitation, announced United States Attorney Zane David Memeger. Krapf is charged with 10 counts, each, of using or inducing a child to pose for child pornography, use of an interstate commerce facility to entice a minor to engage in sexual contact, three counts of distribution of child pornography, and one count of possession of child pornography. He is currently in federal custody awaiting trial.
According to the indictment, Krapf abused the children at locations in Bucks and Montgomery counties.
If convicted of all charges, Krapf faces a maximum possible sentence of life imprisonment, and a mandatory minimum of 15 years.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, Montgomery County District Attorney’s Office, and the Limerick Township Police Department, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
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 Philadelphia Man in Multiple Bank HeistsRead the Press Release
PHILADELPHIA - William Butler, 48, of Philadelphia, PA, was charged today by Indictment with committing four armed bank robberies at two separate Center City banks, in January 2014, announced United States Attorney Zane David Memeger.
According to the indictment, Butler was armed with a knife when he robbed the Republic Bank branch, at 1818 Market Street, on January 17th and January 27th and the Citizens Bank branch, at 1701 John F. Kennedy Boulevard, on January 24th and January 28th. Butler took just over $11,000 total in the four robberies.
If convicted, Butler faces a maximum possible sentence of 100 years in prison, five years of supervised release, a $1 million fine, and a $400 special assessment.
The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department. It 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, 215-861-8525Former Police Officer Admits Guilt in Robbery PlanRead the Press Release
PHILADELPHIA – Former Philadelphia Police Officer Jeffrey Walker pleaded guilty today to a scheme in which he planned to rob a drug dealer while on official duty. Walker pleaded to attempted robbery which interferes with interstate commerce and carrying a firearm during and in relation to a crime of violence.
Walker told a cooperating witness (CW) that he wanted the CW to help him identify a drug dealer so that Walker could conduct a car stop for suspected drug violations or plant drugs in the car. On May 21, 2013, the CW informed Walker of a car parked outside of a bar on West Girard Avenue. Walker drove up to the car, placed drugs inside the car, and then followed the driver when that person left the bar. When the car was pulled over, Philadelphia police, including Walker, took the key to the driver’s home. Walker and the CW went to the driver’s home. When they exited the home, Walker was arrested and was in possession of $15,000 that he had taken from the house.
U.S. District Court Judge Eduardo C. Robreno scheduled a sentencing hearing for May 21, 2014. Walker faces an advisory sentencing guideline range of up to 10 years in prison.
The case was investigated by the FBI and Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Anthony Wzorek.
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 Felon in Possession of A FirearmRead the Press Release
James Robinson, 34, of Philadelphia, Pennsylvania, was charged today by Indictment with Felon in Possession of Firearm, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 10 years imprisonment, a three year period of supervised release, a $250,000 fine, and a $100 special assessment
The case was investigated by ATF and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
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, 215-861-8525Veterans Support Group Director Gets 30 Months for Stealing Veteran's IdentityRead the Press Release
Richard M. Gordon, 65, of Philadelphia, PA, was sentenced today to 30 months in prison for conversion of government property. Gordon implemented a scheme to steal from the Department of Veterans Affairs (VA) by using another veteran’s identity to obtain unauthorized healthcare benefits and to receive a VA non-service connected disability pension. For over seven and a half years, defendant Gordon continuously defrauded the VA, and ultimately converted more than $178,000 in government healthcare benefits and pension payments that he knew he was not entitled to receive.
Gordon, who reported that he is the founder and director of Veterans Support Group of America, was convicted of conversion of government property after pleading guilty in July 2013.
In addition to the prison term, Judge Eduardo C. Robreno also ordered the defendant to serve 3 years of supervised release, and to pay full restitution of $178,607.20.
"Mr. Gordon went to great lengths to not only defraud the Department of Veterans Affairs, but to avoid detection," said Jeffrey G. Hughes, Special Agent in Charge of Northeast Field Office of the Office of the Inspector General of the Department of Veterans Affairs. "The VA Office of Inspector General is committed to bringing Mr. Gordon and other individuals, who take valuable resources away from deserving veterans and their families, to justice. We would like to extend our gratitude to the Department of State, Department of Homeland Security-Immigration and Customs Enforcement (DHS-ICE), and the Dutch International Police for their assistance with this investigation."
The case was investigated by the Office of the Inspector General of the Department of Veterans Affairs, and was prosecuted by Special Assistant United States Attorney Thomas Moshang III.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Second Superseding Indictment Add Five Defendants and More Robbery Charges in Case of Jewelry Store Robbery RingRead the Press Release
PHILADELPHIA - A second superseding indictment1 was unsealed today charging five more defendants with participating in an alleged jewelry store robbery ring, announced U.S. Attorney Zane David Memeger. The indictment alleges that the defendants committed eight jewelry store robberies between July 13, 2011 and November 3, 2012, of more than $3,502,544 worth of merchandise.
Darrell Williams, 43, David Story, 45, Rufus Lawson, 47, Kenneth L. Williams, 51, Anthony Lockwood, 36, and Derrick Sherrill, 41, all of Philadelphia, are charged with conspiracy to commit robbery which interferes with interstate commerce. Those defendants are also charged, along with Brian Sheed, 21, and Amin Abdur-Rahe Shabazz, 22, both of Philadelphia, with robbery which interferes with interstate commerce. Darrell Williams, Story, Lawson, Kenneth L. Williams, and Lockwood are also charged with using and carrying a firearm during a crime of violence. The second superseding indictment adds the conspiracy charge, three robbery counts, and two firearms counts. Defendants Lawson, Sheed and Shabazz were charged in the previous indictment.
The indictment details the robberies as follows: on July 13, 2011, Darrell Williams and David Story committed an armed robbery of the Tourneau jewelry store at 160 North Gulph Road, in King of Prussia, Pennsylvania; on January 9, 2012, Darrell Williams, Story, Rufus Lawson, Anthony Lockwood, and Kenneth L. Williams robbed Govberg Jewelers, located at 292 Montgomery Avenue, in Ardmore, Pennsylvania; on February 22, 2012, Darrell Williams, Story, Lawson, and Kenneth L. Williams committed an armed robbery of Bernie Robbins Jewelers, located at 595 E. Lancaster Avenue, in Saint Davids, Pennsylvania; on April 13, 2012, Darrell Williams, Story, and Lawson committed a second armed robbery of the Tourneau store in King of Prussia; on August 22, 2012, Story committed a third robbery of the Tourneau store.
If convicted, Darrell Williams, David Story, Rufus Lawson, and Kenneth L. Williams each face a maximum sentence of life in prison; Darrell Williams and Story face a mandatory
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
2
minimum sentence of 57 years; Lawson faces a mandatory minimum sentence of 32 years; Kenneth Williams faces a mandatory minimum sentence of seven years; defendants Lockwood, Sherrill, Sheed, and Shabazz each face a maximum sentence of 20 years in prison. All defendants also face possible fines, supervised release and special assessments.
This case is being investigated by the FBI Violent Crimes Task Force, Philadelphia Police Department, Radnor Township Police Department, Lower Merion Township Police Department, Upper Merion Township Police Department, Limerick Township Police Department, Upper Providence Township Police Department, Evesham Township (New Jersey) Police Department, Lawrence Township (New Jersey) Police Department, U.S. Federal Probation, Pennsylvania State Parole, and Philadelphia County Probation. The case is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.Release.pdf
Indictment.pdfUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Kidada Savage Sentenced for Deadly FirebombingsRead the Press Release
PHILADELPHIA – Kidada Savage, 30, of Philadelphia, was sentenced today to life in prison for her role in the October 9, 2004, firebombing that killed six members of a federal witness’s family. Savage is the sister of Kaboni Savage who ordered the firebombing and who was sentenced to death for 12 counts of murder in aid of racketeering. Kidada Savage was convicted, on May 13, 2013, of six counts of murder in-aid-of racketeering, all related to the firebombing of Eugene Coleman’s family home. Kaboni and Kidada Savage were also convicted of conspiracy to commit murder in aid of racketeering, retaliating against a witness by murder, and of using fire to commit a felony (the Coleman murders). Coleman was a federal witness at the time. Six people, including four children, were killed in the arson.
Today’s penalty verdict was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, and Special Agent-in-Charge Edward J. Hanko of the FBI’s Philadelphia Division.
Kidada Savage acted as a go-between for her brother, who was in federal custody awaiting a drug trial, and Lamont Lewis, who committed the firebombing. Lewis pleaded guilty and is awaiting sentencing. Robert Merritt and Steven Northington were also convicted in the case. Northington was sentenced to life; Merritt is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation. The case was prosecuted by Assistant United States Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin, of the Criminal Division’s Capital Case Unit at the U.S. Department of Justice.
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, 215-861-8525Kidada Savage Sentenced for Deadly FirebombingsRead the Press Release
PHILADELPHIA – Kidada Savage, 31, of Philadelphia, was sentenced today to life in prison, and a consecutive ten-year sentence, for her role in the October 9, 2004, firebombing that killed six members of a federal witness’s family. Savage is the sister of Kaboni Savage who ordered the firebombing and who was sentenced to death for 12 counts of murder in aid of racketeering. Kidada Savage was convicted, on May 13, 2013, of six counts of murder in aid of racketeering, all related to the firebombing of Eugene Coleman’s family home. Kidada Savage was also convicted of retaliating against a witness by murder, and of using fire to commit a felony (the Coleman murders). Coleman was a federal witness at the time. Six people, including four children, were killed in the arson.
Today’s sentence was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, and Special Agent-in-Charge Edward J. Hanko of the FBI’s Philadelphia Division.
Kidada Savage acted at the behest of her brother, who was in federal custody awaiting a drug trial, and recruited Lamont Lewis to commit the firebombing. Lewis pleaded guilty and is awaiting sentencing. Robert Merritt and Steven Northington were also convicted in the case. Northington was sentenced to life; Merritt is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation. The case was prosecuted by Assistant United States Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin, of the Criminal Division’s Capital Case Unit at the U.S. Department of Justice.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges Pair with Arson That Destroyed Factory in BridesburgRead the Press Release
PHILADELPHIA – James Pickup, 30, and Shawn Workman, 20, both of Philadelphia, Pennsylvania, were charged today by indictment in an arson conspiracy that caused damage to company that does business with the United States Navy, announced United States Attorney Zane David Memeger. According to the indictment, on December 16, 2012, the defendants set a fire inside a factory owned by Arco Sales Company, located at 2211 Wakeling Street, in Philadelphia. Arco manufactured and sold renewable and non‑renewable aircraft, missile components, and Naval items to federal government agencies throughout the United States.
The indictment alleges that the defendants committed a burglary at the factory earlier in the day, stealing liquor and computer equipment. They allegedly set the fire to destroy any evidence they left behind. The arson resulted in a four-alarm fire that completely destroyed the factory.
If convicted the defendants face a mandatory minimum sentence of five years in prison up to a maximum of 20 years, a $250,000 fine, and up to three years of supervised release.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
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, 215-861-8525Endo Health Solutions and Endo Pharmaceuticals of Malvern, Pa to Pay $171.9 Million to Resolve Civil False Claims AllegationsRead the Press Release
PHILADELPHIA -- Specialty pharmaceuticals company Endo Health Solutions, Inc. and its subsidiary Endo Pharmaceuticals Inc. (Endo), which is headquartered in Malvern, Pennsylvania, have agreed to pay $171.9 million to resolve civil allegations of off-label marketing of their adhesive pain patch Lidoderm. The civil resolution is the result of whistleblower allegations filed in the Eastern District of Pennsylvania and was announced today by the Department of Justice and United States Attorney Zane David Memeger. Separately handled and announced today by the Department of Justice and the Office of the United States Attorney for the Northern District of New York is Endo Pharmaceuticals Inc.’s additional deferred prosecution agreement to pay $20.8 million in criminal forfeiture and fines to resolve related criminal liability. The criminal resolution is discussed at http://www.justice.gov/opa/pr/2014/February/14-civ-187.html.
Civil Settlement in Eastern District of Pennsylvania. Lidoderm was FDA approved only for relief of pain associated with post-herpetic neuralgia (“PHN”), a painful condition that affects some individuals with a history of shingles. The civil settlement resolves allegations under the False Claims Act that, between March 1999 and December 2007: (1) Endo knowingly promoted Lidoderm for treatment of non-FDA-approved (off-label) conditions, including lower back pain and chronic pain; (2) because uses of the product for those conditions were not medically accepted indications, federal health care programs did not cover such uses; and (3) Endo’s off-label promotion caused providers to submit false reimbursement claims for such non-covered uses to Medicare, Medicaid, and other federal health care programs. Of the $171.9 million that Endo has agreed to pay to resolve these civil claims, the company will pay $137,700,172 to the United States and $34,209,981 to various States and the District of Columbia.
Under qui tam (whistleblower) provisions of the federal False Claims Act, certain private citizens may bring civil actions on behalf of the United States and may share in any recovery. The settled Lidoderm civil allegations include those originally brought by whistleblower Peggy Ryan in the first of three qui tam lawsuits now pending in federal court in the Eastern District of Pennsylvania. Ms. Ryan is a former Endo sales representative whose sales territory included upstate New York. The whistleblower share of the settlement has not yet been determined.
“Off-label marketing can undermine the doctor-patient relationship and adversely influence the clear and honest judgment of doctors that their patients rely on and trust. Pharmaceutical companies have a legal obligation to promote their drugs for only FDA-approved uses. This obligation takes precedence over the company’s bottom line,” said Memeger.
“FDA’s drug approval process is designed to ensure that companies market their products for uses that are proven to be safe and effective,” said Stuart F. Delery, Assistant Attorney General for the Civil Division of the United States Department of Justice. “We will hold accountable those who circumvent that process in pursuit of financial gain.”
Corporate Integrity Agreement. As part of the settlement, Endo Pharmaceuticals Inc. agrees to enter into a Corporate Integrity Agreement (“CIA”) with the Office of Inspector General of the U.S. Department of Health and Human Services (“HHS”). The CIA requires Endo to implement measures designed to avoid or promptly detect conduct similar to that which allegedly gave rise to this matter, including measures requiring: (1) an internal risk assessment and mitigation program; (2) numerous internal and external reviews of promotional and other practices; (3) key executives and individual Board members to sign compliance certifications; and (4) public reporting of information about Endo’s financial arrangements with physicians.
“By marketing Lidoderm for uses not covered by Federal health care programs, Endo profited at the expense of taxpayers and could have put patients at risk,” said Daniel R. Levinson, the HHS Inspector General. “Under our CIA Endo agrees to promote its products legally, while board members and top executives are specifically held accountable for compliance.”
Investigating these matters were the Federal Bureau of Investigation; the FDA’s Office of Criminal Investigations; the Defense Criminal Investigative Service of the Department of Defense; and the respective Inspector Generals’ Offices for HHS, the U.S. Postal Service, and the U.S. Office of Personnel Management.
The civil settlement was jointly handled: in the Eastern District of Pennsylvania, by Civil Chief Margaret L. Hutchinson, Deputy Chief Mary Catherine Frye, and Assistant U.S. Attorney Gerald B. Sullivan, with analysis by Auditors Denis J. Cooke and Dawn Wiggins; and at the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division, by Trial Attorney Brian McCabe. Assistance was provided by the HHS Office of Counsel to the Inspector General; the FDA’s Office of Chief Counsel; and the National Association of Medicaid Fraud Units.
The settled civil claims are allegations only. There has been no determination of civil liability. The civil lawsuits are docketed in the Eastern District of Pennsylvania as U.S.A. et al. ex rel. Ryan v. Endo Pharmaceuticals Inc., No. 05-cv-3450; U.S.A., et al. ex rel. Weathersby, et al., No. 10-cv-2039; and U.S.A. ex rel. Dhillon v. Endo Pharmaceuticals, No. 11-cv-7767.Release.pdf
Libodem Fully Executed Settlement Agreement.pdf
Coporate Intgerity Agreement - HHS.pdfUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Final Defendant Convicted in $26 Million Fraud SchemeRead the Press Release
ADVANCE PAY SCHEME BILKED ENTREPRENEURS OF MILLIONS
PHILADELPHIA – Matthew McManus, 45, of Glenside, Pennsylvania, was convicted today for his role in an advance fee fraud scheme that defrauded hundreds of victims searching for commercial financing. McManus was charged with five other defendants, all of whom have pleaded guilty. Their scheme defrauded more than 1,900 victims out of more than $26 million. A sentencing hearing is scheduled for May 21, 2014. McManus faces a potential advisory guideline sentence of 15 years in prison with a statutory maximum possible sentence of 105 years in prison.
Defendant Andrew Bogdanoff, of Scottsdale, Arizona, was the founder and chairman of Remington Financial Group (later renamed Remington Capital) and ran the company with defendant McManus until 2008 in Arizona and Pennsylvania. After McManus left the company in 2008, defendant Shayne Fowler, also of Scottsdale, replaced McManus as Bogdanoff's right-hand man. Defendant Joel Nathanson, of San Diego, California, was one of Remington's most proficient employees and helped Remington defraud many victims. Defendant Frank Vogel, of Rochester Hills, Michigan, was a Michigan-based broker who referred numerous victims to Remington in exchange for large kickbacks. Aaron Bogdanoff, also of Scottsdale, was also charged in the conspiracy.
Between 2005 and 2011, the defendants fraudulently induced hundreds of people to pay Remington fees in excess of $10,000 a piece, based on false representations that Remington had lenders and/or investors ready to provide financing for the victims' projects. To facilitate this fraud, the defendants issued each victim a "letter of interest," commonly referred to as an LOI. Almost every LOI Remington issued stated that Remington had a lender or investor interested in financing the victim's project. Remington issued an LOI to every victim even though no Remington employee had spoken to any funding source and Remington knew that it was unlikely to find funding for the project.
The LOI was written to fraudulently lead victims to believe that Remington either was an actual lender or had spoken to lenders that had already expressed interest in the customer's project. Neither was true. Additionally, the financing terms Remington included in the LOI were unrealistic and were used solely to induce customers to pay Remington's advance fees. In addition to the false representations in the LOI, the defendants and other Remington employees also told victims the following lies to further induce victims to pay Remington=s fees: a) Remington had five investors or lenders interested in their project; b) Remington was the actual lender for the project; c) Remington funded or "closed" 80 percent of its deals; d) the victim would get funding for the project once the advance fee was paid and/or; e) Remington would provide funding through its funding source Northbridge. After a customer paid Remington's fee, McManus and Andrew Bogdanoff instructed Remington employees to find problems with the projects so that Remington could blame its failure to provide financing on the victim. The defendants did this to help protect Remington from civil and criminal complaints.
After the FBI and IRS conducted search warrants in Arizona and Colorado in March 2011, defendant Matthew McManus attempted to distance himself from the fraudulent scheme by obstructing justice and lying to federal agents. He was convicted of these charges, as well.
Some of the defendants used sophisticated means to perpetuate the fraud. For instance, in 2010, defendants Fowler and Andrew Bogdanoff used Remington's website to advertise an anti-fraud policy and stated falsely that Remington had recently provided information to the Federal Bureau of Investigation and local law enforcement authorities about a suspected email scam. Remington posted this information to ensure that if potential customers used an internet search engine to search for allegations about Remington's fraud, they would be directed to Remington's website rather than third-party internet sources that contained negative information about Remington.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations with assistance from the Pennsylvania Securities Commission. It is being prosecuted by Assistant United States Attorney David Axelrod.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Racketeering and Arson Charges Filed Against Members of Ironworkers UnionRead the Press Release
PHILADELPHIA- An indictment was unsealed today, and arrests made, in a case charging ten members of Ironworkers Local 401 with allegedly participating in a conspiracy to commit criminal acts of extortion, arson, destruction of property, and assault, in order to force construction contractors to hire union ironworkers. Specifically, the indictment charges RICO conspiracy, violent crime in aid of racketeering, three counts of arson, two counts of use of fire to commit a felony, and conspiracy to commit arson. Eight of the ten individuals named in the indictment are charged with conspiring to use Ironworkers Local 401 as an enterprise to commit criminal acts. Joseph Dougherty, 72, of Philadelphia, the Financial Secretary/Business Manager of Local 401, was one of the eight individuals charged with racketeering conspiracy. The indictment details incidents in which the defendants threatened or assaulted contractors or their employees, and damaged construction equipment and job sites as part of a concerted effort to force contractors to hire and pay Local 401 workers, even when those workers performed no function. Among the criminal acts set forth in the indictment is the December 2012 arson of a Quaker Meetinghouse under construction in Philadelphia.
Charged with Dougherty are: business agents Edward Sweeney, 55, of Philadelphia; Francis Sean O’Donnell, 43, of Warminster, PA; Christopher Prophet, 43, of Richboro, PA; William O’Donnell, 61, of Cherry Hill, NJ; union members James Walsh, 49, William Gillin, 42, Richard Ritchie, 44, Daniel Hennigar, 53, and Greg Sullivan, 49, all of Philadelphia.
The charges were announced today by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward J. Hanko, Special Agent-in-Charge John Spratley with the Department of Labor’s Office of Inspector General, and Special Agent-in-Charge Sam Rabadi with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to the indictment, the defendants had a network of individuals, friendly to the Ironworkers Local 401, to help identify construction projects and job sites where work was being performed without using Local 401 members. The indictment alleges that business agents would approach construction foremen at those work sites and imply or explicitly threaten violence, destruction of property, or other criminal acts unless union members were hired. The defendants relied on a reputation for violence and sabotage, which had been built up in the community over many years, in order to force contractors to hire union members. It is alleged that the defendants created “goon” squads, composed of union members and associates, to commit assaults, arsons, and destruction of property. One such squad referred to itself as the “The Helpful Union Guys,” “T.H.U.G’s.”
In the December 2012 arson of the Quaker Meeting House, the indictment alleges that after the contractor refused to hire union ironworkers, defendants Walsh, Gillin, and Hennigar went to the construction site at 20 East Mermaid Lane, in Philadelphia. They set a crane on fire and cut steel beams and bolts. In another episode set forth in the indictment, members of Local 401 picketed a construction site near King of Prussia Mall between May and June of 2010 because the contractor did not hire union workers. It is alleged defendant Richard Ritchie and three others later resorted to violence when they assaulted some of the non-union workers with baseball bats. In the July 2013 episode, the indictment alleges that defendants Sweeney and O’Donnell, under Dougherty’s direction, set up a picket line and threatened the contractor of an apartment complex under construction at 31st and Spring Garden Streets, if he did not hire Local 401 members. According to the indictment, the contractor relinquished his profits and turned the job over to a union-affiliated contractor as a result of the threats.
“While unions have the right to legally advocate on behalf of their members, my office will not tolerate the conduct of those who use violence to further union goals,” said United States Attorney Zane David Memeger. “Union officials and members who commit arson, destroy property, use threats of physical harm, and engage in other acts of violence to extort victims on behalf of their union need to be criminally prosecuted. Today’s indictment makes that clear.”
“The strong-arm tactics we have seen in this case are outrageous and brazen – and an unfortunate blow to the worthy intentions of unionism,” said Hanko. “The fight for workers’ rights may sometimes call for tough tactics, but violence, intimidation, arson, and sabotage are crimes which won’t be tolerated. This investigation has been wide-ranging, but it is far from over. Now that this indictment has been unsealed, we expect to hear from more victims and will aggressively pursue all other leads we receive.”
If convicted of all charges, defendants Dougherty, Sweeney, Walsh, and Gillin each face a mandatory minimum term of 35 years in prison up to a statutory maximum of 130 years; defendant Hennigar faces a mandatory minimum term of 15 years in prison up to a statutory maximum of 40 years; defendant Sullivan faces a mandatory minimum term of five years in prison up to a statutory maximum of 40 years; defendants Prophet and Ritchie face a statutory maximum of up to 40 years in prison; defendants Francis and William O’Donnell each face a statutory maximum of 20 years in prison.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance from Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.Click here to view the indictment
Click here to view the defendant chart
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 Escape from Reentry CenterRead the Press Release
Antonio Persinger, 32, of Philadelphia, PA, was charged today by Indictment with escape from The Kintock Group Residential Reentry Center, located at 301 E. Erie Avenue, Philadephia, on November 13, 2013, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of five years in prison, three years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Prisons and the United States Marshals and is being prosecuted by Assistant United States Attorney Arlene Fisk.
Click here to view the indictment
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Delaware County Mortgage Broker Sentenced for Loan FraudRead the Press Release
Thomas C. Phelan, 35, of Wayne, PA, was sentenced today to 33 months in prison for his leadership of a mortgage fraud conspiracy involving nearly $1 million in fraudulent loan proceeds. Phelan established Phelan Mortgage Associates (PMA), a mortgage brokerage business based in Feasterville, PA. From August 2006 until February 2009, Phelan worked with PMA employees and others to defraud lending institutions out of nearly $1 million. On October 15, 2013, Phelan pleaded guilty to all counts of an indictment charging him with conspiracy to commit loan and wire fraud, three counts of loan fraud and one count of wire fraud.
At sentencing, U.S. District Court Judge Robert F. Kelly heard testimony from individual victims of Phelan’s loan fraud, calling the scheme “a heartless crime.” In addition to the 33-month prison sentence, the Court ordered that the defendant pay restitution of $850,670 to two lenders, and a mandatory assessment of $500.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Mary E. Crawley and Joan E. Burnes.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges IRS Employee with Tax Fraud and Aggravated Identity TheftRead the Press Release
PHILADELPHIA - Sherelle Pratt, 49, of Philadelphia, was charged by Indictment, unsealed today, with filing false tax returns, aiding and assisting other individuals in preparing and filing false tax returns, theft of government property, and aggravated identity theft, announced United States Attorney Zane David Memeger. Pratt was arrested today.
According the Indictment Pratt is an IRS employee. Pratt, according to the indictment, is alleged to have prepared federal income tax returns for a number of individuals during tax years through 2006 through 2008. Pratt caused the refunds, and stimulus payments that the filers were supposed to receive, to be deposited into her personal bank account. In some cases, she gave the filers a portion of the refunds and stimulus payments. In other instances, according to the indictment, Pratt kept the refund and stimulus payments.
If convicted, the defendant faces a maximum possible sentence of 33 years in prison, including a two year minimum mandatory sentence, a fine of up to $2.25 million dollars, a special assessment of $900, and two years of supervised release.
The case was investigated by the Treasury Inspector General for Tax Administration, Philadelphia Field Office and the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
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 Fraudster to 121 Months in Prison for Check SchemeRead the Press Release
Phillip Eric Weems, 36, of Philadelphia, was sentenced today to 121 months in prison for running an elaborate check-cashing scheme in which he created more than $1.2 million worth of forged and counterfeit securities. Weems recruited more than 70 co-conspirators who presented forged and counterfeit checks to check cashing businesses, financial institutions, and dog breeders. In addition to the fraud conspiracy, Weems was charged with straw purchasing three firearms. He pleaded guilty on January 30, 2013 to conspiracy to utter counterfeit and forged securities, uttering a forged security and aiding and abetting, uttering a counterfeit security and aiding and abetting, and three counts of aiding and abetting the making of false statements to federal firearms licensees.
Weems’ organization made and uttered dozens of forged checks of the County of Montgomery (PA) District Justice Courts, Avis Budget Group, A-Worx Staffing, Inc., Royal Car Center, Inc., Staples, Inc., The Wedge Medical Center, P.C., Gentile Realty Co., and a local general contractor. Weems also registered fake corporations with the Commonwealth of Pennsylvania, often using names of real franchise corporations to make an additional 488 checks appear legitimate. He opened 15 business checking accounts in the names of the fake corporations with financial institutions, including Bank of America, Wachovia, Sovereign, and TD Bank, and deposited enough money in each to make the accounts appear to have adequate funds. He cashed 294 checks at multiple check cashing companies, often on the same day, and then would often withdraw the balance of funds from the accounts before the checks could be processed. He conducted this scheme from January of 2009 through November of 2009.
In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered Weems to pay restitution in the amount of $182,956.36, a $600 special assessment, and ordered three years of supervised release.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorney Ashley Lunkenheimer.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Members of Alleged Sports Betting Ring Plead Guilty to Racketeering ChargesRead the Press Release
PHILADELPHIA – Joseph Vito Mastronardo, Jr., 63, of Meadowbrook, PA, pleaded guilty today to conspiring to participate in a racketeering enterprise (RICO), conducting an illegal gambling business, four counts of conspiring to launder money, eight counts of interstate travel in aid of racketeering, transmitting wagering information, and aggravated structuring of cash deposits. The guilty pleas stem from his leadership of the Mastronardo Bookmaking Organization, a multi-million dollar sports betting operation with bettors throughout the U.S. No sentencing date has been scheduled.
Mastronardo, Jr., is one of 19 defendants charged in the case; three defendants were charged by information and sixteen defendants were charged by indictment. In the indictment, fifteen of the sixteen defendants were charged with conspiring to participate in a racketeering enterprise (RICO) and conducting an illegal gambling business. With today’s guilty plea, 11 of the 16 defendants charged in the indictment have pleaded guilty.
At its peak, the organization had more than 1,000 bettors and was generating millions of dollars a year. According to the indictment, between January 1, 2005 and January 1, 2011, the organization utilized internet websites (www.betroma.com and www.betrose.com) and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing, and other sporting events. Residents of Costa Rica staffed the internet websites and answered the telephones. In 2006 and 2010, law enforcement seized over $2,100,000 of cash that Mastronardo hid in and around his home, including in specially-built secret compartments and in PVC pipes that were buried in his backyard.
Joseph Vito Mastronardo, Jr., ran the organization by using the internet, telephone, Skype, e-mail, United States mail, and in-person communication. The Mastronardo Bookmaking Organization laundered the gambling proceeds by using a check cashing agency, two private bank accounts, and numerous international bank accounts. On occasion, Mastronardo, Jr., also provided instructions so that a losing bettor could pay a gambling debt through a charitable donation.
Joseph V. Mastronardo, Jr., supervised the agents, sub-agents, office employees, and websites. He laundered millions of dollars of betting proceeds, collected debts, and instructed others to collect debts. Other indicted defendants who have pleaded guilty include: Mastronardo=s son, Joseph F. Mastronardo, who worked as an office employee, collected debts, and performed other financial duties; Eric Woehlcke, who worked as an office employee, collected debts, and was a sub-agent; Joseph and Anna Rose Vitelli, who owned J & A Check Cashing, which was used to launder the gambling proceeds; and Patrick Tronoski, Schuyler Twaddle, Michael Loftus, Michael Squillante, David Rounick, and Ronald Gendrachi.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, the Montgomery County Detective Bureau, and the Montgomery County District Attorney=s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna and Department of Justice Trial Attorney Kelly Pearson.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Downingtown Man Charged with Possessing ExplosivesRead the Press Release
Istvan Merchenthaler, 43, of Downingtown, PA, was charged by indictment, unsealed today, with one count of possession of unregistered firearms and one count of being a fugitive in possession of a firearm and ammunition, announced United States Attorney Zane David Memeger. Specifically, Merchenthaler is charged with possessing approximately 60 plastic PVC pipe improvised explosive devices (“IEDs”), approximately 400 cardboard tube IEDs, a 9mm Cobray M-11 semi-automatic machine pistol, and ammunition. Merchenthaler has been in federal custody since February 16, 2013.
If convicted of both counts, Merchenthaler faces a maximum possible sentence of 20 years in prison, a $500,000 fine, 3 years of supervised release and a $200 special assessment.
On September 23, 2013, the federal grand jury in the District of Maryland issued an indictment charging Merchenthaler with two (2) counts of being a fugitive in possession of firearms and ammunition and one (1) count of possessing an unregistered destructive device.On August 6, 2013, the federal grand jury in the Eastern District of North Carolina issued an indictment charging Merchenthaler with two (2) counts of being a fugitive in possession of firearms and ammunition and one (1) count of possessing an unregistered destructive device.
On March 7, 2013, the federal grand jury in this District issued a superseding indictment charging Merchenthaler with four (4) counts of wire fraud, two (2) counts of aggravated identity theft, four (4) counts of money laundering, two (2) counts of filing false tax returns, and two (2) counts of interstate transportation of stolen goods. According to the superseding indictment, from at least about May 2006 to about February 2013, Merchenthaler claimed to be the founder of PhoneCard USA, a company that was purportedly a “premier distribution source” for prepaid phone cards and cell phones. Merchenthaler, who used a number of aliases, falsely claimed that PhoneCard USA had “lucrative contracts” with major retail chain stores including Walmart, 7-Eleven, and BJ’s Wholesale Club. Further, Merchenthaler falsely claimed to have friendships with executives at Walmart and 7-Eleven. In reality, Merchenthaler operated a “Ponzi” scheme, stealing over $2 million from over 200 investors and using much of these funds for his own benefit and to perpetuate his scheme.
Both the Maryland and North Carolina prosecutions of Merchenthaler have been transferred to this District. All of the above cases have been consolidated before United States District Judge Robert F. Kelly.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Bomb Disposal Unit, the Montgomery County Bomb Squad, the Montgomery County Sheriff’s Office, the East Whiteland Police Department, the East Whiteland Fire Department, the Malvern Fire Department, and the Chester County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Vineet Gauri.
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, 215-861-8525Coatesville Man Charged with Dealing Explosive MaterialsRead the Press Release
Ryan Joseph Hribick, 32, of Coatesville, Pennsylvania, was charged yesterday by indictment with one count of possession of unregistered firearms, one count of manufacturing and dealing explosive materials, one count of conspiracy to obstruct justice, and one count of witness tampering, announced United States Attorney Zane David Memeger.
According to the indictment, Hribick possessed, manufactured, and dealt cardboard tube improvised explosive devices (“IEDs”) for several years. After federal agents searched his home, Hribick allegedly instructed and conspired with others to destroy and conceal cardboard tubes and flash powder – which Hribick was using to manufacture IEDs – so as to keep that evidence from federal agents and the federal grand jury. In addition, the indictment alleges that Hribick attempted to influence the testimony of a federal grand jury witness regarding the destruction and concealment of evidence.
This case has been assigned to United States District Judge Robert F. Kelly.
If convicted of all counts, Hribick faces a maximum possible sentence of 60 years in prison, a $1 million fine, 3 years of supervised release and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation. 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, 215-861-8525Lawyer Charged with Stealing Client FundsRead the Press Release
PHILADELPHIA - Gomer Thomas Williams, 54, of Philadelphia, PA, was charged today by information with one count of wire fraud in connection with 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”). According to the information, 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.
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. The information alleges that he abused his fiduciary position in transferring funds from their accounts to pay his own personal expenses, including his mortgage.
If convicted, Williams faces a potential advisory sentencing guideline range of 33 to 41 months in prison, a $100 special assessment, a possible fine, and up to three years of supervised release.The case was investigated by the FBI and is being prosecuted by First Assistant United States Attorney Louis D. Lappen.
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, 215-861-8525Alleged Computer Hacker Charged with Emailing Bomb Threat to Shopping MallRead the Press Release
PHILADELPHIA - David Barnhouse, 24, of Horsham, PA, was charged today by superseding indictment with emailing a bomb threat to the Willow Grove Park Mall website and hacking a computer to make it appear as if someone else sent the threat. Barnhouse is charged with threats, unauthorized access to a protected computer, resisting and impeding federal officers, obstruction of service of judicial process, destruction of records in a federal investigation, and destruction of property to prevent seizure.
According to the indictment, on June 20, 2013, Barnhouse hacked into the Verizon FiOS router of his neighbor and, using their Internet service, posted the following message:
“We have planted an explosive device somewhere in the mall, and will detonate it unless all members of the Islamic faith imprisoned in the United States are freed by 7pm on June 23. Even if you search the mall for 72 consecutive hours, you will NEVER find it.”
By using the neighbor’s Verizon service, the defendant made it appear that the neighbors had posted the threat. As a result, on June 20, 2013, FBI agents, believing that the neighbors had posted it, executed a search warrant at the neighbor’s home. After conducting a search and interviewing the neighbors, the agents concluded that they were not the source of the threat.
The indictment further alleges that when agents returned, in November 2013, to execute a search warrant at Barnhouse’s home, Barnhouse tried to activate encryption by unplugging his computer and, during that attempt, fought and struggled with agents.
If convicted of all charges, Barnhouse faces a maximum possible sentence of 37 years in prison, a fine of up to $1.2 million, and up to three years of supervised release.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Jeanine Linehan and Michael L. Levy.
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, 215-861-8525Tax Preparer Sentenced for Falsifying Returns to Increase Client RefundsRead the Press Release
PHILADELPHIA - Shawn Sisco, 49, of Philadelphia, PA, was sentenced today to 12 months and one day in prison for preparing false federal income tax returns. Sisco, who owned Sisco Accounting, a home-based tax preparation business, falsified the itemized deductions on her clients' returns in order to obtain refunds in amounts larger than the filers would have otherwise received. A federal jury found her guilty after a 3-day trial. Sisco, in a statement to federal investigators, claimed that she prepared between 250 and 300 federal income tax returns, annually, and charged a fee of between $150 and $250 per return. Her scheme defrauded the IRS of approximately $163,000. Some of Sisco’s clients have been audited as a result of the fraud and have entered into payment agreements with the IRS.
In addition to the prison term, U.S. District Court Judge Petrese B. Tucker ordered Sisco to pay a fine in the amount of $10,000, a $2,800 special assessment, and ordered one year of supervised release.
According to the testimony of trial witnesses, Sisco prepared tax returns which were false because the returns claimed that her clients had made substantial charitable contributions when many of her clients were unaware of the fact that Sisco had included charitable contributions. The contributions that Sisco recorded were as high as $15,000 for filers who earned incomes between $40,000 and $103,000 per year. The false returns also claimed large miscellaneous deductions, and job-related expense deductions which the witnesses testified they had no knowledge of. The bogus expense deductions included: medical and dental expenses; mortgage interest; cell phone expenses; property tax expenses; clothing and shoe expenses; laundry expenses; and maintenance expense.
The case was investigated by the Internal Revenue Service Criminal Investigations. The case was prosecuted by Assistant United States Attorney Floyd J. Miller.
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 Bank RobberyRead the Press Release
Nicholas Aquilante, 49, of Philadelphia, PA, was charged today by indictment, January 21, 2014, with bank robbery, announced U.S. Attorney Zane David Memeger. The indictment charges that Aquilante committed a robbery of Republic Bank, located at 833 Chestnut Street in Philadelphia, Pennsylvania, on July 5, 2013.
If convicted, Aquilante faces a maximum sentence of 20 years in prison, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case has been investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Judge Hands Down Lengthy Sentence to Repeat Child PornographerRead the Press Release
PHILADELPHIA - Thaddeus Vaskas, 50, of Tunkhannock PA, was sentenced today to 14 years in prison for one count of possession of child pornography. Vaskas pleaded guilty to that charge on March 21, 2013. Vaskas is a repeat offender, having been sentenced to 20 months in prison for a 2001 conviction for possession of child pornography. Agents with the Department of Homeland Security searched the home in Bethlehem, PA, where he was living in 2007, and found multiple images of minors engaging in sexually explicit conduct on his computer.
In addition to the prison term, U.S District Court Judge Harvey Bartle, III, ordered Vaskas to pay a a special assessment of $100, and ordered 15 years of supervised release.
Vaskas is tied to “Operation Emissary.” This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations, and was prosecuted by Assistant United States Attorney Paul G. Shapiro.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Fourth Defendant in Ticket-Fixing Conspiracy Pleads GuiltyRead the Press Release
PHILADELPHIA – William Hird, 68, of Philadelphia, PA, pleaded guilty today to taking part in a fraud scheme involving judges at the former Philadelphia Traffic Court. Hird, who was Director of Records at the time, pleaded guilty to 18 counts, including conspiracy, wire fraud, mail fraud and lying to the FBI when questioned about ticket fixing at Traffic Court. Hird is the fourth defendant to plead guilty in the fraud conspiracy that the government alleges involved frequent and pervasive “ticket-fixing” at the Philadelphia Traffic Court. U.S. District Court Judge Robert F. Kelly has not yet set a sentencing date. Hird faces a possible advisory sentencing guideline range of 12 to 18 months in prison, before variances or departures.
Former traffic court judge Fortunato Perri, Sr., who pleaded guilty on March 13, 2013, would receive traffic citation numbers, the names of offenders, or the actual citations to arrange "fixing" the ticket and would convey the information to William Hird. Hird, in turn, allegedly conveyed the request to the assigned judge or the judge’s staff. Hird was extremely loyal to Perri given that Perri helped Hird move up the ladder to a high-level administrator at Traffic Court. Recorded conversations demonstrate that Hird acceded to Perri's requests to "fix" certain tickets. Given Hird's position at Traffic Court and access to the judges, Hird was able to facilitate requests for ticket fixing for Perri.
As part of the scheme, tickets were "fixed" by either being dismissed, finding the ticket holder "not guilty," or finding the ticket holder guilty of a lesser offense. In many cases, the ticket holder did not even appear in Traffic Court, yet their ticket was "fixed." As a result, the ticketholders paid lesser or no fines and costs, and evaded the assessment of "points" on their driving record. This widespread "ticket-fixing" defrauded both the Commonwealth of Pennsylvania and the City of Philadelphia of funds, and allowed potentially unsafe drivers to remain on the roads.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Anthony J. Wzorek.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Philadelphia Police Officer Convicted in Cover UpRead the Press Release
PHILADELPHIA - Robertito Fontan, 42, a former narcotics officer with the Philadelphia Police Department, was found guilty today of two counts of making false statements to federal investigators concerning his romantic relationship with one of the police department’s confidential informants.
In 2003, Fontan recruited Person #1 to become a confidential informant and recommended her as a confidential informant to other law enforcement officers. Several months later, Fontan became intimately involved with Person #1. During their relationship, Fontan gave gifts and money to Person #1. In 2007, the Drug Enforcement Administration (ADEA@) began investigating Person #1=s former paramour, a suspected drug dealer, and Fontan was assisting with the investigation.
In 2008, the FBI began investigating a suspected leak of information in the DEA investigation. As part of the leak investigation, the FBI interviewed Fontan about his intimate relationship with Person #1. The jury found that Fontan lied to agents about his relationship with Person #1 and about giving gifts and money to Person #1.
Fontan faces a maximum possible sentence of 10 years in prison. A sentencing hearing is scheduled for April 28, 2014.
The case was investigated by the FBI and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Neuman Leverett.
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 Financial Fraud and Tax SchemeRead the Press Release
Leonard Stango, 66, of Philadelphia, PA, was charged today by Indictment with aggravated structuring of financial transactions and filing false tax returns, announced United States Attorney Zane David Memeger. It is alleged that between 2006 and 2009, Stango participated in a sports bookmaking operation in which he received over $5 million in proceeds from bettors. The indictment charges that Stango then withdrew approximately $2.5 million in amounts of $10,000 or less in order to avoid his banks’ currency transaction reporting requirements. It is alleged that Stango did not report any income from his bookmaking activities on his federal income tax returns for 2006 through 2008, and as a result he underreported his income in each year by several hundred thousand dollars.
If convicted, the defendant faces a maximum possible sentence of 22 years of imprisonment, threeyears of supervised release, a $900,000 fine, a $500 special assessment, and criminal forfeiture.
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.
1An Indictment/ Information/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, 215-861-8525Philadelphia Business Owner Charged with BriberyRead the Press Release
Cua Thach, 31, of Philadelphia, PA, was charged by Indictment in a bribery scheme, announced United States Attorney Zane David Memeger. According to the indictment, Thach offered $1,500 in bribes to an Investigator of the United States Department of Labor, Wage and Hour Division, who was investigating Thach’s company, CNS Agency, Incorporated.
If convicted, Thach faces a maximum possible sentence of 15 years in prison, a $250,000 fine, three years of supervised release and a $100 special assessment.
The case was investigated by the United States Department of Labor Office of Inspector General, the Federal Bureau of Investigation, and the Department of Labor Wage and Hour Division. It is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
Click here to view the indictment
An Indictment/Information/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, 215-861-8525