Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Alleged Lancaster County Fraudster Facing Additional ChargesRead the Press Release
PHILADELPHIA - Debra Lightfoot, a/k/a "A.T.B.," 57, of Lititz, PA, was charged today by superseding indictment with transmitting a threat by interstate communications, and threat of assaulting, resisting, opposing, impeding, intimidating, or interfering with a Government Employee in the course of official duties, announced United States Attorney Zane David Memeger. According to the Superseding Indictment, the defendant threatened an employee of the Social Security Administration while speaking to that employee by telephone. The superseding indictment adds the two new counts to 11 counts of wire fraud, one count of theft of government funds, two counts of Social Security Fraud, and one count of aggravated identity theft. Lightfoot allegedly used a stolen Social Security number to work while collecting disability payments from the Social Security Administration under her true identity. She was arrested on October 7, 2013 on a criminal complaint and is detained pending trial.
If convicted, Lightfoot faces a maximum possible sentence of 248 years imprisonment, a three‑year period of supervised release, restitution to the government of $137,665 and a $1,625 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Montgomery County Pastor Sentenced to 170 Months in Prison for Mortgage Fraud SchemeRead the Press Release
PHILADELPHIA - Michael Wilkerson, 47, of Pottstown, PA, was sentenced yesterday to 170 months in prison and ordered to pay $1,353,111.93 in restitution for a mortgage fraud scheme. Wilkerson and his co-defendants defrauded JPMorgan Chase Bank, N.A. by fraudulently obtaining home loans valued at more than $6 million for properties located in Schwenksville and Glenmoore, Montgomery County, PA. Wilkerson was convicted at trial in February.
Wilkerson, a pastor at New Millennium Life Restoration Fellowship with locations in Phoenixville and Spring City, recruited one of his congregants and the congregant’s family and friends, to participate in a number of real estate transactions. If they had good credit and acted as “straw purchasers” - meaning they would sign loan documents as the purchaser of a house and attend the property settlement - Michael Wilkerson would pay them $15,000. Wilkerson paid another $5,000 if they referred other straw purchasers to him. Wilkerson recruited at least six individuals who agreed to be straw purchasers of homes. Wilkerson’s wife, Joyce, participated in the fraud scheme by explaining the transactions to the “straws,” paying the “straws,” and also pretending to be a co-purchaser of each of the homes at the time of settlement. Co-defendant Lee Garell, a real estate broker with Long & Foster Companies, prepared the sales paperwork for each of the homes that was sold to the “straws” and, along with Michael Wilkerson, dictated the fraudulent terms set out in the settlement sheets. Denise Haines, a mortgage broker with American Group Mortgage Corporation, submitted fraudulent loan applications in the transactions to Chase. The applications falsely represented the appraised value of the homes, the identification of the “straws,” the source of funds, the borrower’s income and assets, and their intent to take possession of the homes as their primary residence. Based on the representations made in the loan documents, Haines knew she could get Chase to approve the loans without verification of the information on the loan applications. Haines and Garrell are awaiting sentencing.
When the loans were funded at the time of settlement, Michael Wilkerson, Joyce Wilkerson, Lee Garell, and Denise Haines manipulated the documents prepared at settlement and, later, forwarded the settlement documents to Chase to make it appear to the bank that the “straws” brought considerable cash to the closings, when, in fact, all of the money involved at the settlement actually came from Chase. Michael and Joyce Wilkerson profited approximately $400,000 from each of the fraudulent sales. Lee Garell obtained commissions on the sales of the real estate and Denise Haines obtained commissions based on the amount of the million dollar loans obtained from Chase. After settlement on the homes, Michael Wilkerson took possession of all of the homes, rented two of them and lived in another. He paid the mortgages with the monies that he obtained at the settlements and rental income for approximately six months then told the “straw” purchasers that they had to pay the mortgages. This last act led to the loans falling into default and then foreclosure, resulting in a loss of approximately $3 million.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Anita Eve.
President Obama established the Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Judge Gives Houston Woman Three Years for Role in Rip-Off of Philadelphia Sheriff's OfficeRead the Press Release
PHILADELPHIA –Aarti Gupte, 31, of Houston, TX, was sentenced today to 36 months for her involvement in a scheme to defraud the Philadelphia Sheriff’s Office (“PSO”). Gupte was found guilty in June of conspiracy to commit wire fraud and wire fraud. The scheme stole funds from the PSO’s bank accounts. In addition to the prison term, U.S. District Court Judge Legrome D. Davis ordered $242,186.73 in restitution and three years of supervised release. Davis set a date of December 16, 2013 for Gupte to report to prison.
Sheriff’s Sales of real estate generate millions of dollars annually. The sales require the PSO to write checks to different entities with regard to the properties sold. Co-conspirator Richard Bell, who was charged separately and pleaded guilty, was a PSO employee in the Accounting Department who took advantage of loose controls and wrote checks drawn on the PSO’s bank accounts made payable to
individuals and companies. Bell gave some of the checks to Robert Rogers, who has also pleaded guilty. Rogers recruited Aarti Gupte, who had two companies, to participate in the scheme. Bell wrote four checks, totaling $242,186.73, to The Processing Link and Yellow Rose Enterprises, LLC during the period from 2009 to 2010. Gupte deposited the checks into her company bank accounts, withdrew the proceeds and shared them with Rogers who shared with Bell. When approached by Federal Bureau of Investigation agents, the defendant admitted that she had participated in this scheme to defraud the PSO.The case was investigated by the FBI, IRS-Criminal Investigation and the Office of Inspector General for the City of Philadelphia. It was prosecuted by Assistant U.S. Attorney Sarah Grieb.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictments Charged Diversion of Hundered of Thousands of Oxycodone TablesRead the Press Release
Doctor’s Receptionist Is Alleged Key Player in Pill Scheme
The Eastern District of Pennsylvania, like the rest of the nation, has been greatly
impacted by the prescription drug abuse epidemic. Local clinics have stated that drug addiction
in both Philadelphia and New Jersey is extremely severe. Heroin and opiate-based prescription
medication – such as oxycodone – are two of the most abused drugs in this area. And just like
street drugs, prescription drug abuse produces the same problems: addiction, crime, and broken
families.
Today, federal agents arrested 27 people involved in a prescription drug conspiracy that
illegally distributed more than 380,000 Oxycodone pills into communities in the Eastern District
of Pennsylvania. Two indictments, charging four key players, and multiple other charging
documents were unsealed today. Charged in one indictment are Leon Little, 33, of Cherry Hill,
NJ, the leader of the “Little Drug Operation” (LDO), Heather Herzstein, 28, of Folcroft, PA, who
worked in a doctor’s office, and Colise Harmon, 34, of Philadelphia. They are charged with
conspiracy to distribute controlled substances. A separate but related indictment charges
Aminah Shabazz, 36, of Cherry Hill, NJ, with money laundering. Based on the average retail
sale price of the oxycodone tablets on the street, the LDO allegedly took in more than 3 million
dollars.
The charges were announced by First Assistant United States Attorney Louis Lappen,
Drug Enforcement Administration Special Agent-in-Charge David G. Dongilli, and IRS
Criminal Investigation Special Agent-in-Charge Akeia Conner. The announcement was made at
a press conference that also included the FBI and Health and Human Services Office of Inspector
General and discussed the larger issue of drug diversion.
According to the indictment, between August 2010 and August 2012, the LDO recruited
and paid individuals to pose as patients in order to acquire prescription drugs, such as oxycodone
and alprazolam (otherwise known as Xanax), from L.B., a licensed physician in Philadelphia.
Many of these “pseudo-patients” were recruited from the Raymond Rosen Projects, a
government-assisted housing development located in north Philadelphia. Little orchestrated the
entire scheme by allegedly paying Herzstein and Harmon to facilitate the coordination of
pseudo-patients. He also allegedly collected and stored the filled prescriptions, packaged the
drugs for re-distribution, and distributed to them to his customers in Philadelphia.
Hertzstein, as the receptionist and sole employee for L.B., allegedly scheduled the
pseudo-patients’ appointments, wrote prescriptions for oxycodone using the doctor’s prescription
pad and without the doctor’s consent, and distributed the forged prescriptions to the LDO. She
also allegedly falsely verified with pharmacies that the forged prescriptions received from LDO
pseudo-patients were legitimate. The pseudo-patients primarily received prescriptions for 10
milligram and 30 milligram tablets of oxycodone in exchange for money. The LDO also paid for
the doctor’s visit and the costs for filling the prescriptions.
Harmon allegedly drove pseudo patients to the doctor and to specific pharmacies in
Philadelphia, PA to have the prescriptions filled. The prescriptions were filled primarily at:
Northeast Pharmacy, 6730 Bustleton Avenue; Pharmacy of America, 1500 E. Erie Avenue; and
Philly Pharmacy, 210 Market Street.
In addition to the conspiracy, Little, Herzstein and Harmon are charged with distribution
of oxycodone, acquiring a controlled substance by fraud, and aiding and abetting.
According to the separate indictment, Aminah Shabazz took LDO drug proceeds and
provided $26,970 in cash to a third party who deposited the cash into the third party’s bank
account in Ridley, PA. The third party then received a certified check made out to Lemin
Consulting, LLC, a business operated by Shabazz and Little, for $27,000. Shabazz then
allegedly deposited the certified check into the bank account for Lemin Consulting, LLC in
Philadelphia, PA in an attempt to conceal the proceeds of unlawful activity.
If convicted of all charges, the defendants face the following possible prison terms under
advisory sentencing guideline ranges: Little, life; Harmon, life; Herzstein, life; Shabazz, 33
months to 41 months. The defendants also face possible fines and terms of supervised release.
The indictment is also seeking forfeiture.
The case was investigated by the Drug Enforcement Administration, Internal
Revenue Service Criminal Investigation Division, Federal Bureau of Investigation Health
Care Fraud Task Force, Philadelphia Police Department, and North Coventry Police
Department, and is being prosecuted by Assistant United States Attorney Tomika N.
Stevens.
“Prescription drug abuse has become an epidemic in our society, and with the
increased demand for these drugs has come the criminal activity that naturally follows –
including illegal drug distribution and violence,” said First Assistant United States
Attorney Louis Lappen. “The individuals charged today with drug trafficking face
lengthy prison terms like those imposed on distributors of street level drugs such as
heroin and cocaine. We will continue to work with our law enforcement partners to bring
illegal drug traffickers to justice and stem the tide of prescription drug abuse in our
communities.”
“The defendants charged today are drug dealers just like street dealers pushing
heroin and cocaine,” said DEA Special Agent-in-Charge Dongilli. “Each is driven by
greed and intent on making as much money as possible at any expense and with a total
disregard of others. The Drug Enforcement Administration (DEA) will continue to
aggressively investigate anyone engaged in obtaining or selling prescription controlled
substances outside of a legitimate doctor-patient or pharmacist relationship. There is a
dangerous misunderstanding about prescription drugs. In Pennsylvania more people die
from prescription drug overdoses than heroin or cocaine.”
“The laundering of illegal drug profits is as important and essential to drug
traffickers as the very distribution of their illegal drugs,” said IRS Special Agent-in-
Charge Conner. “Without these ill-gotten gains, the traffickers could not finance their
organizations. The role of IRS Criminal Investigation in narcotics investigations is to
follow the money so we can financially disrupt and dismantle major drug trafficking
organizations. IRS Criminal Investigation is proud to provide its financial expertise as we
work alongside our law enforcement partners to bring criminals to justice.”
“Drug diversion is a costly problem in this country – in both dollars, and lives,”
said FBI Special Agent in Charge Edward J. Hanko. “The FBI is fully committed to
investigating this fast-growing category of health care fraud.”
“Aside from the human casualties resulting from prescription drug diversion, the
millions of dollars stolen from insurance programs is eroding trust in our health care
system,” said Special Agent-in-Charge DiGiulio. “Our agents, working with federal and
local law enforcement, are finding a huge wave of illegal billing, identity theft, fraud in
the Medicare drug program, Medicaid, and other federal health insurance programs.”
Prescription drug abuse, despite popular misconceptions, has become more wide-spread,
more destructive, and more dangerous than even street-level drug abuse. Nearly seven million
Americans are hooked on prescription drugs, more than are addicted to cocaine, heroin,
hallucinogens, ecstasy, and inhalants combined. The web of prescription drug abuse entangles
the poor and the rich, the old and the young, and does not discriminate based on race. Abuse of
prescription narcotics has reached epidemic proportions in this country. According to the
Centers for Disease Control and Prevention (CDC), prescription drug abuse is the fastest
growing drug problem in the United States, with the number of prescription drug overdoses
tripling over the last 20 years.
A 2011 report by the CDC indicated that nearly 15,000 people die every year of
overdoses involving prescription painkillers, and 1 in 20 people reported using prescription drugs
for non-medical reasons during the prior year. Drug overdose, including overdose of
prescription drugs, is now the leading cause of accidental death in the United States, recently
surpassing automobile accidents. Nearly three out of four drug overdoses are caused by
prescription painkillers, which include oxycodone. For every overdose death caused by
prescription painkillers, there are 32 emergency room visits due to the misuse or abuse of
prescription drugs. In 2011, oxycodone products were the prescription painkiller most
commonly involved in emergency room visits.
There are more overdose deaths caused by prescription drugs than by heroin and cocaine
combined. Prescription narcotics are dealt hand-to-hand, just like baggies of heroin or vials of
crack. According to the CDC, 76% of non-medical prescription drug users acquired drugs that
had been prescribed to someone else.View: Defendant Chart.pdf | Little et. al., Indictment.pdf | Shabazz Indictment.pdf
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Armed Pharmacy Robber SentencedRead the Press Release
PHILADELPHIA - William Webb, 51, of Philadelphia, was sentenced today to 25 years in prison for a string of armed robberies that targeted pharmacies. Webb pleaded guilty July 24, 2013 to conspiracy, interference with interstate commerce by robbery, and brandishing a firearm during a crime of violence. He and Edward Schaeffer conspired to target approximately 19 pharmacies in order to steal prescription pharmaceuticals, including oxycontin, oxycodone, and percocet. Schaeffer, 30, pleaded guilty Sept. 12th and will be sentenced December 5, 2013.
In addition to the prison term, U.S. District Court Judge John R. Padova ordered restitution in the amount of $65,270.15, and five years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, with assistance from the Abington Twp. Police and Glenolden Borough Police. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Three Charged in Energy Pricing SchemeRead the Press Release
Michael Mateja, 27, of Massachusetts, Matthew Morgan, 39, of Schnecksville, PA, and Samuel Puleo, 26, of Fogelsville, PA, are charged by Information, filed yesterday, with a fraud scheme involving energy contracts, announced United States Attorney Zane David Memeger. According to the information, Mateja and Puleo owned and operated Coastal Energy, LLC, a company that brokered energy contracts between commercial businesses and energy suppliers.
Between June 2011 and February 2013, Mateja and Puleo solicited clients whom they had sign contracts (“Fixed All-Inclusive”) stating that Coastal would negotiate fixed rates for each kilowatt hour. Alternatively, an “Energy Only” contract provides the customer with a rate for kilowatt hours but does not include additional charges for transmission and capacity. According to the information, Mateja and Puleo altered contracts to change the terms from “Fixed All-Inclusive” to “Energy Only” without the clients’ knowledge. The end result that that the total per kilowatt hour price that Coastal’s clients had to pay were higher than the rates they agreed to pay. They are each charged with wire fraud. Mateja and Morgan are also charged with obstruction of justice for an alleged attempt to delete documents located on Coastal’s computers.
If convicted, each defendant faces a maximum possible sentence of at least 20 years in prison, three years supervised release, $250,000 fine, and a $100 special assessment
The case was investigated by Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney David L. Axelrod.
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 Bank FraudRead the Press Release
Robert Von Ryan, 37, of Philadelphia, was charged yesterday by information with one count of bank fraud, announced United States Attorney Zane David Memeger. According to the information, while guarding the cars of Philadelphia Eagles football players, the defendant took bank account information belonging to one of the players and used the bank information to transfer more than $225,000 from the account.
If convicted the defendant faces a maximum possible sentence of 30 years imprisonment, a $1,000,000 fine, five years of supervised release and a $100 special assessment.
The case was investigated by the United States Secret Service, and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges Cop and Former Cop in Civil Rights CaseRead the Press Release
An indictment, unsealed today, charges former Philadelphia Police Officer Joseph Harvey, 39, of Philadelphia, PA, with deprivation of civil rights under color of law, and Philadelphia Police Officer Sean Cahill, 34, of Philadelphia, PA, with making a material false statement, announced United States Attorney Zane David Memeger. Both defendants were arrested this morning.
According to the indictment, Harvey, while acting under color of law as a police officer with the Philadelphia Police Department, instructed M.C. to remove all of her clothing, thereby willfully depriving M.C. of the right, secured and protected by the United States Constitution and the law of the United States, to be free from an unreasonable seizure by a police officer. The indictment further alleges that defendant Cahill falsely claimed that he was with Harvey, and that Harvey was never alone with M.C. at the time that M.C. alleged she was instructed by Harvey to undress.
If convicted, Harvey faces a maximum term of one year in prison, a $100,000 fine, and a $100 special assessment; Cahill faces a maximum term of five years in prison, a $250,000 fine, up to three years’ supervised release, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department Internal Affairs Bureau, with assistance from the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Michelle L. Morgan, and Trial Attorney Sheldon Beer of the United States Department of Justice, Civil Rights Division, Criminal Section.
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, 215-861-8525Group of Five Charged in $200 Million Tax Fraud SchemeRead the Press Release
PHILADELPHIA – A superseding indictment, charging five people in a complex, multi-million dollar tax fraud scheme, was unsealed today following the arrest of one of the defendants. The indictment alleges that the conspirators caused more than $200 million in losses to the United States through a massive scheme. Named in the 49-count indictment are: Samyak Veera, 39, of Singapore, Aviel Faliks, 39, of New York City, Chandrakant Shah, 65, of India, Donald Stevenson, 56, of North Palm Beach, Florida, and Eric Merl, 61, address unknown. Faliks was arrested this morning in New York City. John Ivsan, 44, Andrew Ahn, 39, and Helen Del Bove, 53, have pleaded guilty in related cases and are awaiting sentencing. The indictment and informations filed against these defendants were also unsealed today. The charges were announced by United States Attorney Zane David Memeger, Assistant Attorney General for the Department of Justice Tax Division Kathryn Keneally, and Chief of the Internal Revenue Service Criminal Investigations Richard Weber.
The defendants named in the superseding indictment are charged with conspiracy to defraud the United States, conspiracy to commit wire fraud, and corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws. In addition to those charges, Veera is also charged with 11 counts of tax evasion and 19 counts of wire fraud; Faliks is also charged with five counts of tax evasion and eight counts of wire fraud; Shah is also charged with 11 counts of tax evasion; and Merl is also charged with four counts of making materially false statements to government officials. The indictment contains a notice of forfeiture for up to $150 million from Veera and Faliks.
Between at least 2003 and 2011, the defendants allegedly designed and implemented a scheme to evade more than $200 million in corporate taxes by purchasing companies with taxable gains and using fraudulent losses to wipe out the gains. The defendants then allegedly pocketed the corporations’ cash, filed fraudulent returns, and, in some instances, fraudulently sought and obtained refunds from the IRS for prior years. According to the superseding indictment, the defendants implemented their fraud scheme through four basic steps: (1) initial purchasers - including MidCoast Financial Inc., a company owned by Chandrakant Shah and operated by Samyak Veera - purchased target corporations with cash assets and large anticipated corporate income tax liabilities; (2) the initial purchasers next transferred these target corporations to straw buyers controlled on paper by Andrew Ahn and Aviel Faliks; (3) the defendants then evaded the corporations' income taxes through the use of fraudulent transactions designed to create the illusion that the corporations had incurred capital and ordinary losses; and (4) finally, the defendants distributed proceeds of the scheme through disguised means.
Defendant Donald Stevenson was the head of the acquisition team at MidCoast Financial and its successor and allegedly led the effort to identify ripe targets for the conspiracy. Helen Del Bove provided bookkeeping services to Veera, Ahn, and Faliks, tracking the target corporations purchased, the gains that needed to be eliminated, and the losses used to wipe them out. She allegedly provided this information to a tax return preparer so that the false returns could be prepared and filed. It is further alleged that Del Bove attempted to destroy key evidence after the IRS began to investigate the transactions. Eric Merl and John Ivsan both served as counsel to Veera and MidCoast Financial and other entities used to implement the fraud. Later, after the IRS began to look into MidCoast Financial's transactions, it is alleged that Merl and Stevenson started and operated Private Capital Resource Group Inc. (PCRG), a new company to carry on the scheme. Aviel Faliks allegedly served as the straw buyer of the target corporations identified by PCRG, but he also played an instrumental role in setting up the fraudulent options transactions used to wipe out the corporations' gains.
If convicted of all charges, the sentencing guidelines call for a minimum sentence of at least 188 months imprisonment for Veera, Shah, and Stevenson, at least 151 months for Faliks, and at least 121 months for Merl. For Ivsan, Ahn, and Del Bove, the maximum years of imprisonment are ten years, eight years, and three years, respectively.
The case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Patrick J. Murray and Nancy E. Potts, and Tax Division Trial Attorney Andrew P. Young.
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, 215-861-8525Doctor Sentenced for Kickback Scheme Involving A Philadelphia HospiceRead the Press Release
PHILADELPHIA – Eugene Goldman, M.D., 55, of Philadelphia, was sentenced today to 51 months in prison and a $300,000 fine for conspiring to violate the anti-kickback statute and violating the anti-kickback statute in relation to his role in a kickback scheme arising from his employment as the Medical Director at Home Care Hospice Inc. (HCH). U.S. District Court Judge Eduardo Robreno ordered Goldman to immediately begin serving his sentence and also ordered three years of supervised release. Goldman also faces mandatory exclusion from participation in any federal health care program.
The evidence at trial proved that from approximately December 2000 until approximately July 2011, Dr. Goldman served as the medical director for HCH and regularly referred Medicare or Medicaid patient beneficiaries to HCH. HCH was a for-profit business in Philadelphia that provided hospice services for patients at nursing homes, hospitals and private residences.
In December 2000 the defendant and one of the co-owners of HCH entered into a written contract to create the false appearance that all payments to Dr. Goldman from HCH were for services rendered in Dr. Goldman’s capacity as medical director for HCH, when in fact the large majority of payments from HCH to Dr. Goldman were illegal payments for the referral of Medicare and/or Medicaid patients to HCH. From January 2003 to July 2011, Dr. Goldman received approximately $309,000 in illegal payments for patient referrals. In January, February and March 2009, Dr. Goldman was captured on tape receiving kickbacks for patient referrals.
The case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General. It was prosecuted by Assistant United States Attorney Suzanne B. Ercole and Trial Attorney Margaret Vierbuchen of the Organized Crime and Gang Section in the Justice Department’s Criminal Division.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with Robbing Three BanksRead the Press Release
Curtis Richardson, 48, of Philadelphia, was charged today in a three-count Indictment1 with
committing a robbery of Conestoga Bank, 1032 Arch Street in Philadelphia on August 31, 2013, a robbery of Citizens Bank, 2001 Market Street in Philadelphia on September 1, 2013, and a robbery of Conestoga Bank, 1835 Market Street in Philadelphia on September 4, 2013, announced United States Attorney Zane David Memeger.If convicted the defendant faces a maximum possible sentence of 60 years in prison, a $750,000 fine, and $300 in special assessments.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Marianne Cox.
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, 215-861-8525Philadelphia Man Charged with Robbing A WawaRead the Press Release
Dean Ceraolo, 51, of Philadelphia, PA, was charged today by Superseding Indictment with robbing the Wawa store, at 10901 Bustleton Avenue, Philadelphia, on August 24, 2013, and attempting to rob Citizens Bank, at 1970 Red Lion Road, Philadelphia, on September 3, 2013, announced United States Attorney Zane Davd Memeger.
If convicted the defendant faces a maximum possible sentence of 40 years in prison, three years supervised release, a $500,000 fine, and $200 in special assessments.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department 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, 215-861-8525Indictment Charges Four with Running Illegal Gambling OperationRead the Press Release
PHILADELPHIA – An indictment was unsealed today in Philadelphia charging Anthony Gifoli, 65, Frank Tulino, 66, Vincent Simoni, 64, and James Matteis, 58, all of Philadelphia, with conducting an illegal gambling business, announced U.S. Attorney Zane David Memeger, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and FBI Special Agent-in-Charge Edward J. Hanko.
According to the indictment, Gifoli, Tulino, Simoni, and Matteis operated a sports bookmaking operation in Philadelphia from January 27, 2009 through November 1, 2010. All of the defendants were arrested yesterday.
If convicted, each defendant faces a maximum penalty of five years in prison and a $250,000 fine.
The case is being investigated by the FBI and the New Jersey State Police. It is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bucks County Man Charged with Creating Child PornRead the Press Release
Thomas Rafferty, 67 of Levittown, PA was charged today by Indictment with three counts of employing a minor to create an image of the minor engaging in sexually explicit conduct, five counts of creating obscene visual representations of children, and one count of possession of images of child pornography announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 200 years imprisonment, with a mandatory minimum sentence of 15 years, a mandatory minimum term of 5 years supervised release after release from prison, up to lifetime supervised release, a $2.25 million dollar fine, and a $900 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, with assistance from the Naval Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney 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, 215-861-8525Employee Charged with Defrauding Chester County-Based EmployerRead the Press Release
PHILADELPHIA - Christopher Stehm, 51, of Mason, Ohio, was charged today by information with defrauding his employer, Berwyn-based Ametek, Inc., of at least $659,731, announced United States Attorney Zane David Memeger. According to the information, Stehm was the chief accounting officer at two different offices of the company when he submitted phony claims for expense reimbursements, many of which he supported with doctored receipts. Stehm is charged with two counts of wire fraud and two counts of filing false tax returns.
Stehm was the controller for Ametek’s Chandler division, in Broken Arrow, Oklahoma, from about January 2006 through March 2010. In April 2010, Ametek promoted Stehm to be the vice president of finance at its HCC division, in Cincinnati, Ohio, and Stehm held that position until November 2012. In both positions, Stehm was his office’s chief accounting officer. According to the information, throughout his employment at Ametek, Stehm used a variety of methods to obtain “reimbursements” for expenses that he either never incurred or that were wholly personal in nature. These methods allegedly included cutting off the tops of receipts or “whiting out” portions of receipts that Stehm submitted with his expense reimbursement claims to make them appear to be business-related. Stehm also allegedly used copies of the same receipts to support multiple expense reimbursement claims.
Ametek is a publicly-traded company (symbol AME on the New York Stock Exchange), which manufactures electronic instruments and electromechanical devices for sale in numerous countries. The company is headquartered in Berwyn, Pennsylvania, but it has offices in numerous locations in the U.S. and overseas.
The information alleges that among the numerous personal expenses Stehm submitted for reimbursement from Ametek were repairs to his personal cars, private meals, and the purchase of a family dog. Stehm also allegedly hid his illegal income from the Internal Revenue Service and claimed baseless deductions when he filed his tax forms for 2010 and 2011, thereby under-reporting his annual income by more than $100,000 in each of those tax years.
If convicted of all charges, the defendant faces a maximum possible sentence of 46 years in prison, three years of supervised release, a $1 million fine, and a $400 special assessment.
The case was investigated by the FBI and the Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Role in Drug Conspiracy Earns Philadelphia Man More Than 16 Years in PrisonRead the Press Release
Lawrence Wilson, 24, of Philadelphia, was sentenced today to 194 months in prison for his role in a large scale drug organization responsible for transporting multiple kilograms of cocaine and hundreds of pounds of marijuana to the Eastern District of Pennsylvania. Wilson’s brother, Michael, ran the organization. In addition to the conspiracy, Lawrence Wilson was a major participant in the kidnapping of two female drug couriers on January 17, 2011. The women had just returned from Los Angeles, California with four suitcases containing marijuana and cocaine for the organization. While waiting for the suitcases at the baggage claim carousel at the Philadelphia International Airport, a rival drug trafficking organization stole one of the suitcases. Lawrence Wilson and other members of the organization believed the women had set up the robbery. Lawrence Wilson and co-conspirator held the women at gunpoint. Wilson was also involved in money laundering conspiracy, depositing approximately $5000 into the Bank of America account being used by the California drug supplier.
Wilson pleaded guilty the day of trial, in July, to conspiring to distribute 500 grams or more of the mixture and substance containing a detectable amount of cocaine and 100 kilograms or more of a mixture and substance containing a detectable amount of marijuana, one count of aiding and abetting the attempt to possess with intent to distribute 500 grams or more of cocaine, one count of aiding and abetting the possession and brandishing a firearm in furtherance of drug trafficking crime, one count of conspiracy to commit money laundering, and one count of money laundering.
In addition to the prison term, U.S. District Court Judge Michael Baylson ordered a $5,000 fine and 5 years of supervised release.
The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Karen S. Marston.
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 Identity TheftRead the Press Release
Shaun Terrell Mays, 33, of Philadelphia, PA, was charged yesterday, by Information, with two counts of unauthorized use of one or more access devices, four counts of aggravated identity theft, and two counts of bank fraud, announced United States Attorney Zane David Memeger.
Mays faces a maximum sentence of 88 years in prison, including a two year mandatory term, a five year period of supervised release, a fine of up to $3.5 million, and an $800 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
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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 in Sex Trafficking ConspiracyRead the Press Release
Adrian Palmer, 43, of Philadelphia, PA, is charged by Indictment, unsealed today, with conspiring in the sex trafficking of girls under the age of 18. Palmer is charged with one count of conspiracy, one count of sex trafficking of minors, and one count of attempted sex trafficking of a minor announced United States Attorney Zane David Memeger. Palmer was arrested last night.
According to the indictment, between June 1, 2012 and June 14, 2012, Palmer, who worked as a security guard at a Days Inn motel on Roosevelt Boulevard in Philadelphia, provided protection and assistance to sex traffickers operating at the motel in exchange for a daily fee. Craig Johnson, indicted elsewhere, who was the operator of the sex trafficking venture, recruited young females to work as prostitutes. Johnson paid Palmer between $60 and $100 a day in exchange for advice about Johnson’s sex trafficking organization, including Johnson’s Backpage.com advertisements. Palmer also allegedly provided Johnson with clients for the sex trafficking business and provided protection for Johnson so that law enforcement authorities would not be alerted to the sex trafficking operation. It is further alleged that in August 2013, Palmer accepted $100 from a confidential witness in exchange for protecting him from law enforcement so he could engage in the sex trafficking of a (fictitious) 16-year-old minor.
If convicted of all charges, the defendant faces a mandatory minimum term of 10 years in prison with a maximum of 30 years, a fine of up to $750,000, up to a lifetime period of supervised release, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
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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, 215-861-8525Northampton County Man ArrestedRead the Press Release
Michael Beer, 36, of Roseto, PA, was arrested last night by agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with support from the Pennsylvania State Police, for possession of a destructive device. Beer will have an initial appearance today at 1:30 pm in federal court.
According to the criminal complaint, Beer’s relative called police after discovering what was believed to be a pipe bomb in the basement of a house on Shisler Street, in Philadelphia, where Beer had previously resided. The Philadelphia Police Department’s Bomb Disposal Unit, ATF and FBI all responded to the scene. A total of six devices were removed and the area was secured.
The potential penalty for possession of a destructive device is up to 10 years in prison. The government has 30 days to file an indictment.
The case is being investigated by ATF and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Marianne Cox.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Robber Sentenced to 108 Months in PrisonRead the Press Release
PHILADELPHIA - Oronda Ligon, 31, of Philadelphia, PA, was sentenced October 16, 2013 to 108 months in prison for an armed home invasion in which an Upper Darby woman was terrorized. Ligon was convicted in March 2013 of Hobbs Act robbery after breaking into a home with two other men in May of 2011. While in the process of carrying a safe out of the home, the robbers were confronted by a female resident of the home, who had been in the basement, heard a noise, and came upstairs to find the three men robbing her house. Ligon pushed the victim to the floor and one of his cohorts pointed a gun at the victim’s chest. The robbers took a safe containing business proceeds and family jewelry totaling more than $50,000.
In addition to the prison term, U.S. District Court Judge Mitchell Goldberg ordered three years of supervised release and restitution in the amount of $54,900.
This case was investigated by the Federal Bureau of Investigation and the Upper Darby Police Department. It was 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, 215-861-8525Northampton County Attorney Charged with Tax FraudRead the Press Release
Nicholas R. Sabatine, III, 62 of Nazareth, PA was charged today by Information with one count of filing a false tax return, announced United States Attorney Zane David Memeger.
Sabatine faces a maximum sentence of three years imprisonment, a one year term of supervised release, a $100,000 fine, together with cost of prosecution, and a $100 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
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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, 215-861-8525Hospice Owner Convicted in Multi-Million Dollar Health Care FraudRead the Press Release
PHILADELPHIA - Matthew Kolodesh, a/k/a "Matvei Kolodech", 51, of Churchville, PA, was found guilty of conspiracy to defraud Medicare of more than $14 million through his home hospice business, announced United States Attorne ZaneDavid Memeger. A federal jury delivered its verdict today. Kolodesh's business, Home Care Hospice, Inc. ("HCH"), located at 2801Grant Avenue in Philadelphia, submitted claims totaling approximately $14.3 million for patients that were not eligible for or did not receive the hospice services billed to Medicare. Kolodesh also allegedly diverted $9.36 million dollars from HCH's operating account for his own personal use, such as extensive renovations to his house, travel expenses, college tuition for his son, and a luxury automobile. He siphoned substantial sums of cash from the HCH operating account through kickbacks from HCH vendors using a system of phony and inflated invoicing, and a cash kickback scam through sham charitable donations made in the name of the hospice
The jury found Kolodesh guilty of conspiracy to commit health care fraud, 21 counts of health care fraud, 11 counts of money laundering, and two counts of mail fraud. Kolodesh faces a statutory maximum sentence of 370 years in prison. The government will also seek restitution to Medicare in the amount of $14.3 million and proceeds from the money laundering.
“Cases like this involve the type of fraud and abuse that this office and the Department of Justice fights every day,” said Memeger. “The guilty verdict here bolsters our resolve to investigate and prosecute fraudsters who believe they can steal the public’s hard-earned tax dollars and government funds with impunity.”
“Criminals like Matvei Kolodech, who hide behind others in hopes of avoiding prosecution, should take notice of today’s jury verdict,” said Special Agent-in-Charge Nick DiGiulio, of the US Department of Health and Human Services, Office of Inspector General. “We will continue to aggressively investigate ring leaders like Kolodech, whose fraudulent organizations rob Medicare of precious resources.”
Kolodesh and his co-conspirator, identified only as "A.P.," would pay health care professionals, including doctors, for referring patients to HCH even when those patients were not eligible or appropriate for hospice services. In an effort to mask the alleged kickback scheme, HCH fraudulently represented that some of those health care professionals were paid for servicesas medical directors, advisors, or hospice physicians.
Among the ineligible patients were patients who were not terminally ill and patients who were on the service list for more than six months. At the direction of Kolodesh and A.P., HCH staff would routinely "doctor" or alter patient charts to make it appear on paper as though the patient's medical condition was worse than it actually was. The staff was also allegedly directed to bill certain claims at a higher, more costlier rate of service than was actually provided to the patient.
In February 2007, HCH was notified that it was subject to a claims review audit. Kolodesh, through A.P., directed members of HCH staff to falsify documentation to be submitted for the audit. In September 2007, HCH was notified that it had exceeded its cap for Medicare reimbursement and would have to repay $2,625,047 to the government program. At that point, Kolodesh ordered a mass discharge of patients. In October 2007, A.P. had 79 hospice patients discharged and a total of 128 discharged by January 2008, some of whom had been ineligible for hospice or inappropriately maintained on hospice service in excess of six months. Of those discharged patients, 16 were admitted to Kolodesh's other hospice business, Community Home Health in Bucks County. Once the Medicare cap was resolved, 11 of those patients were returned to HCH.
In August and September 2005, Kolodesh and A.P. applied for a low interest loan worth $2.5 million with the Philadelphia Industrial Development Corporation. The purpose of PIDC loan is to stimulate business investment and create jobs in the city of Philadelphia. Kolodesh indicated that the funds were to be used to acquire and renovate a property for his business and the creation of 50 jobs in Philadelphia at the 2801 Grant Avenue site of HCH. In reality, Kolodesh knew that between August 2005 and July 2009, the job quota was not being met, and in the summer of 2008 he set up a sham office for CHH (his Bucks County health care business) at that location and falsely identified 73 CHH employees as working at the office location on Grant Avenue who, in fact, had never worked there.
The case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant United States Attorney Suzanne B. Ercole and Trial Attorney Margaret Vierbuchen with the Department of Justice’s Criminal Section.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525High School Cafeteria Manager Charged with Fraud SchemeRead the Press Release
Glenn Werley, 47, of Sarasota, Florida, was charged by Information, filed October 7, 2013, with one count of wire fraud, announced United States Attorney Zane David Memeger. While working as the cafeteria manager for Bucks County Technical High School, the Information alleges, Werley defrauded the National School Lunch Program and School Breakfast Program of $179,000.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a 3-year period of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by United States Department of Agriculture Office of Inspector General and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former PHA Manager Indicted on Embezzlement ChargesRead the Press Release
PHILADELPHIA - Sondra Wong Nelson, 36, of Philadelphia was charged by Indictment, unsealed October 3, 2013, with one count of theft from a federally funded organization and two counts of falsely altering a postal money order, announced U.S. Attorney Zane David Memeger. According to the indictment, between January 2012 and June 2010, during her tenure as a Supervisory Asset Manager at the Philadelphia Housing Authority (PHA), Nelson embezzled close to $8,000 in rent money from PHA tenants and deposited those funds into her personal bank account.
Many of the PHA tenants living in the scattered sites paid their monthly rent at the management offices in the form of money orders made payable to PHA. The indictment alleges that defendant Nelson, in her role as Supervisor Asset Manager at PHA, took many of these money orders, substituted her name for PHA as the payee on the money orders, and deposited the altered money orders in her personal bank account. It is further alleged that as part of her corrupt scheme, defendant Nelson accessed PHA's internal computer database and manipulated the database to falsely reflect that the embezzled rent payments had been received by PHA, even though she knew that she had deposited those funds in her personal bank account.
If convicted, the defendant faces a maximum sentence of 20 years in prison, three years of supervised release, a fine of up to $750,000, and a $300 special assessment.
The case was investigated by the Federal Bureau Investigation, the U.S. Department of Housing and Urban Development's Office of Inspector General, the United States Postal Inspection Service, and the Philadelphia Housing Authority Office of Inspector General. It is being prosecuted by Assistant United States Attorney Sozi Pedro Tulante.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Chester County Woman Charged in Fraud SchemeRead the Press Release
Barbara Stanley, 60, of Nottingham, Pennsylvania was charged by Indictment , filed October 15, 2013, with a scheme to defraud the government regarding worker compensation benefits, announced United States Attorney Zane D. Memeger. Stanley is charged with five counts of wire fraud, two counts of theft of Government funds, one count of false statements, and three counts of false or fraudulent statements regarding workers= compensation benefits. The indictment alleges that between July 2006 and December 2010, Stanley continued to collect workers= compensation payments from the Department Of Labor=s Office of Workers= Compensation Programs even after she had recovered from her alleged work related injury. Defendant=s misrepresentations resulted in the defendant receiving an overpayment of approximately $164,428.20, which she knew she was not entitled to receive.
The indictment further alleges that Stanley received $50,094 in Office of Personnel Management disability retirement benefits that she knew she was not entitled to receive. She wrongfully converted to her own use at least $37,639.64 of those funds, resulting in total losses to the government of approximately $202,067.84
If convicted of all charges, the defendant faces a maximum possible statutory sentence of more than 100 years in prison, a $2.75 million fine, and three years supervised release.
The case was investigated by the United States Postal Service Office of the Inspector General, the Department of Labor Office of the Inspector General, and the Office of Personnel Management Office of the Inspector General. It is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
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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, 215-861-8525Bucks County Lawyer Indicted on Tax and Identity Theft ChargesRead the Press Release
PHILADELPHIA - Randolph Scott, 70, of Doylestown, PA, an attorney whose practice included estate and probate matters, was charged by Indictment on October 3, 2013, with defrauding a client’s estate of more than $1.7 million. Scott maintained a law office – Randolph Scott Associates – in Warrington, PA. He is charged with one count of mail fraud, two counts of aggravated identity theft, one count of tax evasion, one count of attempting to interfere with administration of internal revenue laws and three counts of failure to file income tax returns.
According to the indictment, between December 2005 and October 2011, while representing the estate of John C. Bready, Scott diverted approximately $1,758,193 of estate funds to his law office accounts. Because the estate was valued at more than $6 million at the time of Bready’s death in 2005, federal law required that a federal estate tax return be filed which would have resulted in approximately $520,351 being paid to the Internal Revenue Service. The indictment alleges that Scott purposefully failed to file the required form in order to maintain sufficient money in the estate to pay its beneficiaries and to avoid detection of the theft.
The indictment further alleges that after the estate’s executor died in 2009, Scott failed to disclose the death so that the investment account manager would continue to send the executor’s checks to Scott’s law firm. Scott would then allegedly forge the executor’s signature and deposit the checks into his law firm’s account. It is further alleged that Scott has the successor executor sign a document renouncing the position of successor executor so that Scott could continue to forge the signature of the deceased executor and divert money belonging to the estate. In addition to the charges, the indictment contains a notice of forfeiture seeking $1,758,193.
If convicted of all charges, Scott faces a mandatory minimum of two years in prison, consecutive to any other term of imprisonment imposed on the mail fraud count, resulting in 31 years maximum incarceration, possible restitution to the IRS in the amount of $520,351, possible restitution to the estate in the amount of $1,758,193, three years of supervised release, a $1.4million fine, and a $500 special assessment.
The case was investigated by the IRS Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Judy G. Smith.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525U.S. Attorney Announces Hiring Grants for School Safety Officers in BethlehemRead the Press Release
PHILADELPHIA – U.S. Attorney Zane David Memeger, in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), today announced funding awards for the Bethlehem Police Department. The Department is being allotted $625,000 for the hiring of five school resource officers.
“In the wake of past tragedies, it's clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school,” said Attorney General Eric Holder. “These critical investments represent the Justice Department's latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people. Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children.”
Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions. More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions. Bethlehem will hire one resource officer for the high school and four officers for the middle school.
“Keeping our children safe when they go to school is of critical importance and I am pleased to join the Attorney General and the COPS Office in announcing these grants which will help provide our communities with the resources needed to accomplish this vital mission,” said Zane David Memeger.“Bethlehem is a safe city because we make safely a priority,” said Bethlehem Mayor John Callahan. “The additional police officers in our schools will help ensure our dedication to public safety, as well as increase our interaction with the students in our schools in partnership with the Bethlehem Area School District.”
“We take the safety and security of our children very seriously,” said Bethlehem Police Chief Craig Finerty. “Being awarded this grant will help us improve our commitment to our community by giving us the ability to assign School Resource Officers to our schools.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country address their most critical public safety issues,” said Joshua Ederheimer, Acting Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides the salary and benefits for officer and deputy hires for three years.
Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans. There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer. School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Sentenced for Bank Rip-OffRead the Press Release
PHILADELPHIA - Eric Young, 40, of Philadelphia, Pennsylvania, was sentenced today to three years in prison for conspiracy to commit bank fraud and bank fraud. Young and co-conspirator Calvin Johnson ran a scheme in which they hired individuals to open bank accounts, made phony deposits, and made withdrawals from the accounts knowing there were insufficient funds. The defendants defrauded the banks of more than $250,000 between December 2011 and August 2012.
In addition to the prison term, U.S. District Court Judge Eduardo Robreno ordered Young to pay restitution to TD Bank in the amount of $268,656.56, serve three years of supervised release, and pay a $200 special assessment. Johnson is awaiting sentencing. Both defendants pleaded guilty.
The case was investigated by the Bensalem Police Department and the United States Secret Service. It 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, 215-861-8525New York Man Convicted of Sex Trafficking FemalesRead the Press Release
PHILADELPHIA - Justin Williams, a/k/a "New York Ice", a/k/a "Pimp Juice", 39, of
New York, NY, was convicted today of sex trafficking young women. Between November 2011 and January 2012, Williams recruited young females to work as prostitutes in his business who were advertised on the Internet for purchase, using locations such as "Backpage," for purposes of prostitution. Williams engaged in acts of physical violence to force the victims to remain in his business. The advertisements featured pictures of the victims, scantily clad, the price, and a phone number to call to arrange a meeting with a female. Williams forced the victims to engage in sex acts with clients.Williams exploited at least three females, ranging in age from 18 to 27. He moved them between Philadelphia, New York, Atlantic City, NJ, and Washington, DC, for purposes of prostitution. He was convicted of two counts of sex trafficking by force and one count of witness tampering for writing a letter to victim #2 to retract her statement prior to trial.
Williams faces a 15-year mandatory minimum prison sentence on the sex trafficking counts with a maximum sentence of life. U.S. District Court Judge J. Curtis Joyner scheduled a sentencing hearing for January 23, 2014.
This case was investigated by the Federal Bureau of Investigation, Arlington County Police Department (Arlington, VA), with assistance from the Philadelphia First Judicial Court Warrant Unit, and the New York City Police Department. It is being prosecuted by Assistant United States Attorney Michelle Morgan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges Man with Passport FraudRead the Press Release
PHILADELPHIA – Ramon Ignacio Rosa-Santos, 32, of Philadelphia, was charged today in an Indictment with passport fraud and falsely claiming to be a United States citizen, announced United States Attorney Zane David Memeger. According to the Indictment, Rosa-Santos, an alien and a native and citizen of the Dominican Republic, falsely represented his identity in an application for an United States passport. Rosa-Santos falsely stated that his name was “J.L.S.,” and that he was born in Puerto Rico, and was, therefore, a United States citizen, which he knew to be false.
If convicted of the offenses, Rosa-Santos faces a total maximum sentence of 15 years imprisonment, a $500,000 fine, five years supervised release, and a $200 special assessment.
This case was investigated by the United States State Department Diplomatic Security Service and Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorney Anita Eve.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Superior Ambulance and Owners Charged in Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Superior EMS Ambulance Company, operating from Huntingdon Valley, PA, its owner, Beana Bell, 31, and operator Vadim Fleshler, 32, both of Philadelphia, with conspiracy to commit health care fraud. According to the indictment, the case involves a scheme in which the defendants submitted more than $4.4 million in fraudulent claims to Medicare. The defendants were also charged with making false statements in connection with health care matters. The indictment was announced by United States Attorney Zane David Memeger, Special Agent-in-Charge Nick DiGiulio with Health and Human Services Office of Inspector General and FBI Special Agent-in-Charge Ed Hanko.
The indictment alleges that the defendants conspired to defraud Medicare by recruiting patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. It is alleged that the defendants, and others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants knew that the patients could be transported safely by other means and that many of them walked to the ambulance for transport. It is further alleged that the defendants themselves, or through others, paid illegal kickbacks to the patients as part of the scheme. The defendants allegedly billed Medicare for these ambulance services as if those services were medically necessary and, as a result of the allegedly fraudulent billing, the Medicare program sustained losses of more than $2.4 million for this medically unnecessary method of transportation.
If convicted, the defendants face substantial terms of imprisonment, fines and are subject to criminal forfeiture proceedings with possible exclusion from participating in federal health care programs; Superior EMS Ambulance Company faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations.
The case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia La Cosa Nostra Associate SentencedRead the Press Release
PHILADELPHIA – Robert Ranieri, 38, of Glendora, NJ, was sentenced today to serve 12 months and one day in prison for his participation in loan sharking activities on behalf of the Philadelphia La Cosa Nostra (LCN) Family.
In addition to his prison term, U.S. District Court Judge Eduardo Robreno ordered Ranieri to pay a $1,000 fine and ordered three years of supervised release.
On June 13, 2013, Ranieri pleaded guilty to conspiring with Philadelphia LCN Family capo Anthony Staino and others to make a usurious loan to an undercover FBI agent and to use threats of violence to collect payments on the loan.
The case was investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Pair Charged with Transporting Stolen JewelryRead the Press Release
Jerome Clinton Faison, 45, and David Thomas Jr., 49, both of Philadelphia, Pennsylvania, were charged today by indictment with interstate transportation of stolen goods, announced United States Attorney Zane David Memeger. The indictment charges that on December 27, 2012, Faison and Thomas unlawfully transported in interstate commerce approximately $100,000 of stolen jewelry from Ogden, Utah to Philadelphia, Pennsylvania.
If convicted, each defendant faces a maximum sentence of 10 years in prison, a fine of up to $250,000, three years of supervised, and a $100 special assessment.This case has been investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Ogden Police Department. The case is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with Attempted Bank RobberyRead the Press Release
Dean Ceraolo, 51, of Philadelphia, PA, was charged today by Indictment on charges that he committed an attempted bank robbery at Citizens Bank, 1970 Red Lion Road, Philadelphia, on September 3, 2013, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a $250,000 fine, and $100 in special assessments.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.
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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, 215-861-8525Doctor Sentenced for Running Pill Mill and Contributing to A DeathRead the Press Release
PHILADELPHIA – Dr. Norman Werther, 73, of Ft. Washington, PA, was sentenced today to 25 years in prison for distribution of a controlled substance resulting in death and more than 300 counts stemming from his pill mill operation. A federal jury convicted Werther on June 11, 2013 of 184 counts of illegally distributing oxycodone, 116 counts of money laundering, six counts of conspiracy to distribute controlled substances, and one count of maintaining a drug-involved premises.
Werther was part of a multi-million dollar drug conspiracy involving illegal prescriptions, phony patients, and multiple drug trafficking organizations. At the time, Werther was a Montgomery County physician, running a physical therapy and rehabilitation practice in Willow Grove. He conspired with six separate groups of drug dealers. Werther was involved in the drug conspiracy between February 2009 and August 2011. The operation resulted in the illegal distribution of more than 700,000 pills containing oxycodone. At least one of the drug trafficking organizations working with Werther trafficked pills valued at more than $5 million that Werther illegally prescribed.
“Instead of using his medical license to help people, Dr. Werther chose to generate tremendous profits by putting hundreds of thousands of pills on the street illegally,” said First Assistant US Attorney Louis Lappen. “In one case, as the jury found, Dr. Werther’s criminal enterprise and blatant disregard for the safety of the community caused the death of a patient whom Dr. Werther knew had a history of drug addiction. The court’s sentence today will send a message to a growing community of pharmaceutical drug pushers that the justice system will impose the most severe penalties on those who are criminally responsible for our growing epidemic of pharmaceutical drug abuse.”
“Werther peddled prescription controlled substances in the very same way a street dealer pushes heroin to addicts. His sentence reflects his greed and disregard for the safety of the community he claimed to serve,” said Drug Enforcement Administration Special Agent-in-Charge David G. Dongilli. “DEA will continue to aggressively investigate any doctor who is selling prescriptions without a legitimate medical need, thereby contributing to the epidemic of prescription drug addiction.”
“Norman Werther got what he deserved for making a mockery of the medical profession and putting people’s lives at risk because he needed money,” said Special Agent-in-Charge Nick DiGiulio, US Department of Health and Human Services, Office of Inspector General. “Criminals like Werther should count on an aggressive prosecution and should expect the same fate.”
Werther worked with drug traffickers who recruited large numbers of pseudo-patients. Werther set aside a specific block of time each business day to see the pseudo-patients recruited by Ronald Campbell, Anthony DiPasquale, Angel DuPrey, Kyle Jones, and William Stukes. With the help of Werther’s office staff, those “patients” were transported to Werther’s medical office, at 301 Davisville Road in Willow Grove, PA, for cursory examinations. The “patients” paid an office visit fee, usually $150, by cash, check, or money order, and Werther wrote prescriptions for them to obtain oxycodone-based drugs without there being a legitimate medical purpose for the prescription and outside the usual course of professional practice. The “patients” were then driven to various pharmacies, including Northeast Pharmacy, to have their prescriptions filled. The drugs were then turned over to the drug dealers so their organizations could sell the narcotics to numerous drug dealers who resold the drugs on the street.
In September 2010, Werther knowingly dispensed approximately 150 pills containing 30 milligrams each of oxycodone, and 30 pills containing 15 milligrams each of oxycodone, to Nathaniel Backes for no legitimate medical purpose and Nathaniel Backes’ death resulted from the use of that substance.
This case was investigated by the Drug Enforcement Administration, the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigations, with assistance from the Philadelphia Police Department, the North Coventry Police Department, the Upper Moreland Police Department, and the Montgomery Township Police. It is being prosecuted by Assistant United States Attorneys Nancy Beam Winter, Jason Bologna, and Michelle Rotella.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525North Carolina Man Sentenced to 4 1/2 Years for Role in Global Hedge Fund Fraud SchemeRead the Press Release
PHILADELPHIA – John C. Tausche, 62, of Blowing Rock, NC, was sentenced today to 54 months in prison for his role in a multi-million dollar investment fraud scheme. U.S. District Court Judge John R. Padova also ordered Tausche to pay $114,995,446 in restitution to victim Barclays Bank. Tausche was a hedge fund business manager and an associate of Helmut Kiener, 53, of Aschaffenburg, Germany, who was charged separately. The charges alleged that the two engaged in a scheme to defraud institutional investors and caused collective losses of more than $311 million. Tausche pleaded guilty November 6, 2012, to one count of bank fraud and one count of money laundering. Kiener, who is currently incarcerated in Germany, is charged by indictment with four counts of wire fraud, two counts of bank fraud, and three counts of money laundering.
Kiener controlled several hedge funds - including K1 Global Limited and K1 Invest - which he marketed to international investors. Tausche controlled several offshore hedge funds collectively called the Oceanus Funds. According to the charges, between March 2005 and December 2008, Kiener allegedly devised a scheme to defraud Bear Stearns entities by representing to Bear Stearns that, under Kiener=s management, Bear Stearns investment funds would be diversified and independently managed. However, the indictment alleges that Kiener actually funneled Bear Stearns money from K1 through the Oceanus Funds and back to K1, so as to give the false impression that the funds were growing in size and were viable investments. Kiener and Tausche, it is alleged, knowingly and intentionally fostered the false appearance that the K1 Funds were increasing in value, in order to induce Bear Stearns to continue to invest in the K1 Funds. Both defendants allegedly provided false and misleading information to Bear Stearns in response to inquiries regarding the K1 and Oceanus Funds, repeatedly and falsely representing that the funds were diversified and independently managed. The indictment alleges that, as a result of the scheme, Kiener earned sales agent fees all while Bear Stearns invested and lost approximately $82 million.
Tausche pleaded guilty to a similar scheme involving Barclays Bank, the K1 Funds and the Oceanus Funds, which caused losses to Barclays Bank totaling approximately $137 million.
In addition, according to the indictment against Kiener, in 2007, Barclays Bank, Bear Stearns, and BNP Paribas (ABNPP@) also invested more than $100 million with Kiener in two offshore funds named Consistent Return Ltd. and Mezzanine Financing Ltd. According to the indictment, Kiener represented that both Consistent Return Ltd. and Mezzanine Financing Ltd. were legitimate investment funds when he actually directed a third party to create these offshore funds and then used the funds for his own purposes including, but not limited to, the purchase of: oceanfront real estate in Delray Beach, Florida valued at over $21 million; a Bombardier executive jet; a Bell helicopter; luxury cars such as a Bentley, a Mercedes and a Maybach; two luxury watercraft; and over $8 million in upgrades to his real estate.
The case was investigated by the Foreign Corruption Investigation Group, Homeland Security Investigations - Miami Field Office, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the German police force Kriminalpolizeiinspektion Unterfranken, with assistance from Barclays Bank, BNP Paribas, and Bear Stearns/J.P. Morgan Chase Bank. The Office of International Affairs in the Justice Department’s Criminal Division also provided valuable assistance in this matter. It is being prosecuted by Assistant United States Attorneys Jennifer Arbittier Williams and Suzanne Ercole.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bank Officer Charged with Bank BriberyRead the Press Release
Michael Ghabrial, 49, of Martinsville, New Jersey, was charged today by Information with one count of bank bribery, announced United States Attorney Zane David Memeger. According to the Information, Ghabrial, an officer of Valley National Bank (“VNB”), solicited and accepted a bribe in exchange for agreeing to sell real estate property owned by VNB at a reduced price.
If convicted, Ghabrial faces a maximum possible sentence of 30 years imprisonment, a five- year period of supervised release, a $1 million fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Vineet Gauri.
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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 Attempted Drug PossessionRead the Press Release
Stephen Davis, 65, of Philadelphia, Pennsylvania, was charged by Indictment, unsealed today, with attempted possession with intent to distribute 100 grams or more of heroin, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of imprisonment for life, a mandatory minimum sentence of ten years, a fine of not greater than $8,000,000, supervised release for eight years, and a $100 special assessment.
The case was investigated by the Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment/ Information/Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Disrupting A Flight Gets Italian Citizen Six Month Prison TermRead the Press Release
PHILADELPHIA - Massmio Fiorani, 35, of Italy, pleaded guilty and was sentenced yesterday to six months in prison for interference with a flight crew. Fiorani interfered with the duties of crew members and attendants on board a U.S. Airways flight from Barcelona to Philadelphia on August 7, 2013. In addition to the prison term, U.S. District Court Judge Harvey Bartle ordered Fiorani to pay $25,000 restitution to U.S. Airways. Following his release, Fiorani will have an administrative proceeding with U.S. Immigration and Customs Enforcement.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, the Federal Bureau of Investigation, the Philadelphia Police Department, and the Tinicum Township Police Department. It was prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Allentown Pair Charged in Sex Trafficking SchemeRead the Press Release
PHILADELPHIA - Deshawn King, 33, and Daniel Blount, 31, both of Allentown, PA, are charged by Indictment , unsealed today, with running a sex trafficking operation, incorporating heroin as a means of punishing and controlling their victims. King and Blount are both charged with conspiring to commit sex trafficking of women by force, fraud, and coercion; two counts of sex trafficking by force, fraud, or coercion, and two counts of attempted sex trafficking by force, fraud, and coercion. King and Blount were taken in to federal custody today. The indictment was announced by United States Attorney Zane David Memeger and Special Agent-in-Charge John P. Kelleghan with Immigration and Customs Enforcement Homeland Security Investigations.
According to the indictment, between October 2012 and April 2013, King and Blount recruited and enticed heroin-addicted women to perform commercial sex acts at their direction by promising a continuous supply of money and heroin. It is further alleged that the defendants used the website “backpage.com” to post sexually explicit photos of the women in advertising them for commercial sex acts. “Johns” (men wanting to have sex with the recruited women) called the telephone number posted in the ad and met the women at hotels designated and paid for by the defendants. It is further alleged that King and Blount provided heroin to the women as a means of control or withheld the heroin as a form of punishment, causing the women to suffer withdrawal; used physical force, including a taser, and threats of force against the women to cause or attempt to cause them to continue performing commercial sex acts; and received and kept all the proceeds generated by the women engaging in commercial sex acts. The defendants also threatened to kill at least two of the victims and took turns raping at least one of the victims.
“The defendants in this case preyed on vulnerable women, dehumanized them, threatened and abused them, and sold them for their own profit,” said Memeger. “These defendants made a living through a horrific form of modern day slavery. We will not tolerate this type of criminal inhumanity and will continue to work with our law enforcement partners to eradicate sex trafficking.”
“Homeland Security Investigations, working in collaboration with the Allentown Police Department and our law enforcement partners, will use all of our resources to investigate and arrest individuals engaged in sex trafficking. This cold, heartless enterprise, where criminals risk individuals’ lives, will not be tolerated.” said John Kelleghan, special agent in charge of HSI Philadelphia. “This case highlights the importance of law enforcement cooperation to apprehend human traffickers while working to provide assistance to the victims who were exploited.”
If convicted, both defendants face a maximum possible sentence of life in prison with a mandatory minimum of 15 years.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, with assistance from the Allentown Police Department and the Office of the Lehigh County District Attorney. It is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
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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, 215-861-8525Philadelphia Man Charged in Three Bank RobberiesRead the Press Release
Darnell Thomas, 43, of Philadelphia, Pa., was charged today by Indictment with 3 counts of bank robbery announced United States Attorney Zane David Memeger. Thomas is charged with robbing Citizens Bank, 6324 Stenton Avenue, on January 24, 2013; PNC Bank, 3244 North Broad Street, on April 20, 2013, and the same Citizens Bank, located at 6324 Stenton Avenue, on April 22, 2013. In each robbery, the indictment alleges, Thomas handed a note to the bank tellers demanding cash.
If convicted Thomas faces a maximum of 60 years imprisonment.
The case was investigated by the Federal Bureau of Investigation, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Virgil B. Walker.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mexico Native Charged with Loan and Passport FraudRead the Press Release
Maria DeJesus-Guzman, 36, of Philadelphia, was charged today in a four count indictment with loan application fraud, passport fraud, falsely representing to be a United States citizen, and aggravated identity theft announced United States Attorney Zane David Memeger. According to the indictment, DeJesus-Guzman, an alien and a native and citizen of Mexico, falsely represented that her name was “W.A.A.,” her date of birth was in 1970, and her social security number ended with 5120, in order to obtain a home equity loan and line of credit from Bank of America, N.A. DeJesus-Guzman made the same false representations in a passport application, in addition to the false representation that she was born in Puerto Rico and, therefore, a United States citizen, in order to obtain a United States passport.
If convicted of the offenses, DeJesus-Guzman faces a total maximum sentence of 43 years imprisonment, a mandatory two-year consecutive sentence, five years supervised release, $1,750,000 fine, and $400 special assessment.
This case was investigated by the United States State Department Diplomatic Security Service and the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorney Anita Eve.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mexico Native Charged with Loan and Passport FraudRead the Press Release
Maria DeJesus-Guzman, 36, of Philadelphia, was charged today in a four count indictment with loan application fraud, passport fraud, falsely representing to be a United States citizen, and aggravated identity theft announced United States Attorney Zane David Memeger. According to the indictment, DeJesus-Guzman, an alien and a native and citizen of Mexico, falsely represented that her name was “W.A.A.,” her date of birth was in 1970, and her social security number ended with 5120, in order to obtain a home equity loan and line of credit from Bank of America, N.A. DeJesus-Guzman made the same false representations in a passport application, in addition to the false representation that she was born in Puerto Rico and, therefore, a United States citizen, in order to obtain a United States passport.
If convicted of the offenses, DeJesus-Guzman faces a total maximum sentence of 43 years imprisonment, a mandatory two-year consecutive sentence, five years supervised release, $1,750,000 fine, and $400 special assessment.
This case was investigated by the United States State Department Diplomatic Security Service and the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorney Anita Eve.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Philadelphia Traffic Court Judge Pleads Guilty to Scheme That Defrauded Pennsylvania of State Grant FundsRead the Press Release
PHILADELPHIA - Former Philadelphia Traffic Court Judge Robert Mulgrew, 55, of Philadelphia, pleaded guilty today to mail fraud and conspiracy to commit mail fraud in connection with a scheme to defraud the Pennsylvania Department of Community and Economic Development (“DCED”). Mulgrew also pleaded guilty to filing a false tax return.
Mulgrew and co-defendant Lorraine Dispaldo, who previously pleaded guilty, engaged in a scheme to fraudulently receive and misuse Pennsylvania state grant funds awarded to non-profit groups. Between 1996 and 2008, the DCED awarded hundreds of thousands of dollars in grants to two community groups with which Mulgrew and Dispaldo were associated. DCED awarded more than $450,000 in grants to the Friends of Dickinson Square (“FDS”) with the understanding that the grants were to be used to purchase equipment and materials for the maintenance of Dickinson Square Park at 4th & Tasker Streets, Philadelphia, and surrounding neighborhood revitalization. Mulgrew, the Vice-President of FDS, signed the FDS grant contracts with DCED. DCED also awarded approximately $397,000 in grants to the Community to Police Communications (“CPC”) with the understanding that the grants were to be used to purchase communications equipment for the police and to purchase materials to secure vacant lots and buildings for the protection of the police. Dispaldo signed the CPC grant contracts with DCED.The defendants misrepresented their intentions to DCED, and that - contrary to their agreement to spend grant funds solely to purchase equipment and materials for neighborhood revitalization and improved communications with the police - the defendants used thousands of grant dollars to pay Mulgrew’s relatives and associates. They represented that they were paying for work done on behalf of FDS and CPC. After distributing grant funds to relatives and associates, the defendants supplied false and misleading information to DCED to conceal the actual amount of grant funds which they paid to the relatives and associates contrary to the express purposes of the grant.
Mulgrew and Dispaldo spent thousands of dollars of grant funds for their own personal uses. Mulgrew improperly reimbursed himself from FDS funds for thousands of dollars of expenditures which he claimed were incurred by FDS when they were not and for his expenditures for items not authorized under the terms of the FDS grants. Mulgrew and Dispaldo supplied DCED with false documents to conceal their own use of grant funds and other improper uses of the funds.
Mulgrew did not report the additional income from the fraud scheme on his tax return and claimed false business deductions which improperly reduced his tax liability.
Mulgrew faces a maximum possible sentence of 23 years in prison, five years supervised release, restitution to the IRS and restitution to the Commonwealth of Pennsylvania. Dispaldo, who pleaded guilty in April, is scheduled for sentencing on November 25, 2013.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul L.Gray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Lancaster Man Sentenced for Running Armed Drug OrganizationRead the Press Release
ALLENTOWN – Keith Martin Thompson, 33, of Lancaster, PA, was sentenced today to 270 months in prison in a drug conspiracy case. Thompson, a/k/a “Keefer,” was the leader of a large-scale cocaine and crack cocaine distribution organization in Lancaster from between at least 2005 and his arrest in January of 2011 on local charges. In addition to the prison term, Thompson must pay a fine of $2,400, a special assessment of $1,400, and complete 10 years of supervised release.
Thompson was federally indicted on February 15, 2011 along with 11 co-defendants, also from Lancaster. The drug organization run by Thompson would routinely purchase wholesale quantities of illegal drugs, including cocaine and cocaine base (“crack”) from suppliers in Philadelphia, New York, and elsewhere. They distributed the drugs to customers on the streets of Lancaster and Harrisburg, PA, and the areas surrounding those cities. Thompson’s co-defendants sold the drugs for Thompson and also sold some of the drugs to their own customers. At least three of the drug dealers routinely carried guns to protect their drugs and the money they made from selling the drugs.
Part of the drug organization’s business model included renting dozens of vehicles for members of the organization to use for travel to New York and Philadelphia to pick up multi-kilogram quantities of drugs. Some of the drugs were stored at a residence in the 2000 block of Swarr Run Road, Lancaster, Pennsylvania. Cocaine deals were also conducted in the parking lots of retail businesses, including a baby goods store, an apartment complex, and a bar in Lancaster.
Thompson pleaded guilty on April 6, 2013 to 12 counts including conspiracy to distribute 50 grams or more of cocaine, admitting that 20 kilograms of crack cocaine and 50 kilograms of cocaine were distributed in furtherance of the criminal activity jointly undertaken by him and his associates. Thompson also pleaded guilty to two counts of distribution of cocaine, five counts of distribution of cocaine base (“crack”), one count of distribution of 28 grams or more of cocaine base (“crack”), one count of possession with intent to distribute cocaine, one count of possession with intent to distribute 500 grams or more of cocaine, and one count of possession of a firearm by a convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (Reading), the Federal Bureau of Investigation (Harrisburg), the Lancaster County Drug Task Force, the City of Lancaster Police Department, and the Manheim Township Police Department. It is being prosecuted by Assistant United States Attorney Mark S. Miller.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Charges Filed in Connection with Disrupted FlightRead the Press Release
Massmio Fiorani, 35, of Italy, was charged by information with a committing the crime of interference with a flight crew, announced United States Attorney Zane David Memeger. According to the information Fiorani interfered with the duties of crew members and attendants on board a U.S. Airways flight from Barcelona to Philadelphia on August 7, 2013.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, and a fine of $250,000. He also may be required to pay full restitution to all victims of his offense.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, the Federal Bureau of Investigation, the Philadelphia Police Department, and the Tinicum Township Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged in Identity Theft SchemeRead the Press Release
Angel Nathan Melendez, 24, of Philadelphia, PA, was charged today by Indictment with aggravated identity theft and passport fraud, announced United States Attorney Zane David Memeger. According to the indictment, Melendez secured a United States passport using his own photograph but another person’s name, date of birth, and social security number.
If convicted, Melendez faces a mandatory minimum sentence of two years with a maximum possible sentence of 12 years in prison, a three year period of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the State Department’s Diplomatic Security Service and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges Two as Would-Be Home Invasion RobbersRead the Press Release
PHILADELPHIA - Clifton McLean, 31, and Leroy Winston, 31, of Philadelphia, Pennsylvania, were charged today by Indictment with conspiracy to commit a Hobbs Act robbery, drug, gun, and other offenses, announced United States Attorney Zane David Memeger. According to the indictment, between Jun 10, 2013 and August 14, 2013, McLean and Winston sought the help of another person in arranging the home invasion robbery of drug dealers. The defendants allegedly planned to steal, at gunpoint, eight to nine kilograms of cocaine. It is further alleged that on August 14, 2013, the defendants attempted, unsuccessfully, to carry out the armed home invasion robbery. The plan was interrupted by law enforcement.
In addition to the conspiracy, the indictment charges McLean and Winston with attempted commission of a Hobbs Act robbery, aiding and abetting the attempted commission of a Hobbs Act robbery, conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine, attempted possession with intent to distribute 5 kilograms or more of cocaine, using a firearm during the commission of a crime of violence or drug trafficking crime, and being felons in possession of a firearm.If convicted, the defendants face a maximum possible sentence of life imprisonment. All of the defendants face a ten year mandatory minimum sentences for the offenses to be followed by a five year mandatory minimum consecutive sentence on the 924(c) count.
The case was investigated by ATF and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
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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, 215-861-8525Drug Smuggler SentencedRead the Press Release
PHILADELPHIA - Naman Bader, aka “John C. Koshy,” 34, of Philadelphia, was sentenced today to 12 months in prison for smuggling and illegally distributing more than two million prescription pills, such as Xanax, Valium, Phentermine, Ativan, Klonopin, Ambien, and their generic equivalents, valued at approximately $10,310,406. Additionally, approximately 25,000 counterfeit Viagra and Cialis pills were seized in international mail parcels during the course of the investigation. Bader pleaded guilty on September 5, 2012, to conspiracy to possess controlled substances with the intent to distribute and to receive merchandise brought into the United States contrary to law and distribution of a controlled substance in a school zone.
Between February 2011 and October 2011, Bader participated in a conspiracy to import and distribute pharmaceutical controlled substances. He received bulk shipments of pills from overseas, delivered some of the pills to conspirators to repackage for customer orders, and forwarded other boxes of bulk pills to other conspirators across the county. Bader also shipped pills to people who had placed orders over the internet without prescriptions. Bader conducted some of this business using a mail box at a commercial mailbox store on Castor Avenue in Philadelphia.
In addition to the prison term, U.S. District Court Judge Jan E. DuBois ordered Bader to pay a special assessment of $200, and ordered three years of supervised release.
Bader’s co-conspirator, Rehan Shah, was sentenced on December 5, 2012, to 15 months in prison.
This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Food and Drug Administration - Office of Criminal Investigations, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Albert S. Glenn.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bank President Charged with Failure to Comply with Requirements of the Bank Secrecy ActRead the Press Release
H. Jack Miller, 51, of Boca Raton, Florida, was charged by information, filed on September 5, 2013, with one count of willful failure to maintain an effective anti-money laundering program and one count of willful failure to file a suspicious activity report, announced United States Attorney Zane David Memeger.
Miller was president and CEO of Public Savings Bank (PSB), a private, closely-held corporation. PSB had one branch office located in Huntingdon Valley, PA. As a financial institution, PSB was subject to the requirements of the Bank Secrecy Act (BSA), which was enacted to prevent financial institutions from being used as intermediaries in the movement of money derived from criminal activity. According to Count One of the information, Miller, who controlled all operations at the bank, failed to establish an effective anti-money laundering program, which included the appointment of a competent BSA compliance officer and the implementation of policies and procedures to protect against money laundering. He is also charged in Count Two with failing to file a Suspicious Activity Report in connection with a wire transmission of approximately $86,400, which occurred on March 25, 2010. The money was transferred into the account of a foreign account holder whom Miller and other PSB employees allegedly suspected was operating an unlicensed money transmission business.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, 3 years of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by Homeland Security Investigations, FDIC Office of the Inspector General and the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525