Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Electronic Grifter Sentenced to Three Years for Multi-Million Dollar Fraud SchemeRead the Press Release
PHILADELPHIA – Paul Bauer, 55, of Dallas, TX, was sentenced today to 36 months in prison for a fraud conspiracy involving a scheme to steal approximately $4 million from a Venezuelan fishing company. Bauer pleaded guilty on March 8, 2012 to conspiracy to commit wire fraud and wire fraud. In addition to the prison term, U.S. District Court Judge Petrese Tucker ordered Bauer to pay restitution in the amount of $936,081, and ordered three years of supervised release.
The Venezuelan fishing company, Pinto-Spinelli Group (“PSG”), had arranged for funds to be deposited in a PSG bank account in Miami, Florida in order to pay a business debt. PSG believed that Bauer and other co-conspirators would conduct a currency exchange and then deposit American dollars in PSG’s Miami bank account but, instead, the defendants transferred $4,000,000 of PSG’s funds to a bank account at Citizens Bank in Reading, Pennsylvania, controlled by a Bauer associate. The multi-million dollar financial fraud had devastating consequences for the unsuspecting victim. Using international wire transfers, Bauer and his conspirators were able to take the funds from the lawful owner almost instantaneously. Bauer diverted the funds from Venezuela, through Panama and New York, to an innocuous appearing domestic bank account in Reading, Pennsylvania. When Citizens Bank became suspicious, Bauer directed his associates to fabricate a letter to mislead Citizens Bank into releasing the funds. Again, within hours of duping Citizens Bank into releasing the funds, Bauer had successfully diverted hundreds of thousands of dollars of stolen PSG funds to Texas, Florida, Puerto Rico, Germany and Spain.When Bauer realized that law enforcement agents were investigating the case, he attempted to cover up his crime and mislead investigators with Homeland Security Investigations. Bauer provided false exculpatory statements when interviewed and instructed his co-conspirators to provide false exculpatory information if questioned by the agents. Fortunately, the investigating agents were not deterred by Bauer’s attempts to mislead them and ultimately were able to return more than $3 million of the stolen funds to the victim.
Bauer’s co-conspirators pleaded guilty and were each sentenced last year to five years of probation and restitution of $936,081.
This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Frank Labor.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Man Charged with Mail FraudRead the Press Release
James Kennedy, 37, of Willow Grove, PA, was charged today by Indictment with mail fraud, announced United States Attorney Zane David Memeger. The indictment alleges that from 2007 to 2011, the defendant took money from his employer's accounts, without his employer's knowledge or consent, and kept the proceeds for his own use.
If convicted, the defendant faces a maximum possible sentence of 40 years imprisonment, a $500,000 fine, and 3 years supervised release.The case was investigated by the Federal Bureau of Investigation and has been assigned to Assistant United States Attorney Frank R. Costello, Jr.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges Sex Trafficking of FemalesRead the Press Release
PHILADELPHIA – Christian Dior Womack, a/k/a “Gucci Prada,” 28, of Chester, PA, and Rashidah Brice, a/k/a “Camille,” a/k/a “Milly,” 23, of Chester, PA, are charged by indictment , unsealed today, with sex trafficking females for prostitution, announced United States Attorney Zane David Memeger. According to the indictment, the defendants operated a prostitution venture in Philadelphia, Pennsylvania, and elsewhere and, as part of the operation of that business, recruited young females, one of whom was a minor, to work as prostitutes for them between May 25 2012 and June 11, 2012. The indictment further alleges that the defendants engaged in acts of physical violence and threats of physical harm to maintain the participation of females in their prostitution business. They are charged with sex trafficking of a minor and sex trafficking by force.
As part of their venture, Womack and Brice allegedly created internet advertisements in which they advertised these females as available for purchase for purposes of prostitution. The advertisements featured pictures of the females scantily clad, and provided a phone number to call to arrange a meeting with the females.
If convicted of all charges, the defendants each face a mandatory minimum sentenced of 15 years in prison with a maximum possible sentence of life in prison, five years of supervised release, and possible fines.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Michelle Morgan.Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges Former Employees of Allentown Mortgage Co.Read the Press Release
PHILADELPHIA - The former general manager and five former employees of Madison Funding, Inc., a now-defunct Allentown mortgage loan origination company, are charged by indictment, unsealed today, in a mortgage fraud conspiracy that caused mortgage lending businesses to issue millions of dollars worth of loans that were based on false information. All six defendants are charged with conspiracy to commit fraud and related crimes. A seventh former employee is charged in an information with one count of making a false report to the Department of Housing and Urban Development. The indictment was announced by United States Attorney Zane David Memeger.
Charged are: Joel Tillett, 36, of Whitehall, PA, who was the general manager; loan officers Jason Boggs, 35, who was also a branch manager, and Claribel Gonzalez, 42; loan processors Florentina Peralta, 33, Ghovanna Gonzalez, 34, all of Allentown, and Angela Diaz, 35, of Bethlehem. Denise Peralta, 32, of Allentown, is charged by information.
According to the indictment, between October 2006 and at least June 2008, the defendants conspired to defraud mortgage lenders by submitting loan applications that contained false information about the borrowers which was often supported by falsified, forged, and altered documents. The mortgage lenders, which included Washington Mutual Inc., Countrywide Home Loans, Mortgage IT, International Mortgage Corporation, and Security Atlantic Mortgage Company, relied on the defendants’ fraudulent representations and provided Madison Funding’s clients with millions of dollars in loans to purchase real estate. Each funded loan generated thousands of dollars worth of commissions to Madison Funding and its employees. Many of those loans have since defaulted and some of them were insured by the Federal Housing Administration (“FHA”), which was an agency within the United States Department of Housing and Urban Development (“HUD”).
The indictment further alleges that Boggs and Claribel Gonzalez helped clients apply for loans to purchase multiple properties while indicating on each loan application that these would be the primary residence of the loan applicant when, in fact, the defendants knew that was false.
The indictment alleges that in April 2007, Claribel Gonzalez and Florentina Peralta left the Madison Funding branch run by Tillett and opened a new branch of Madison Funding, where they engaged in similar crimes. Gonzalez and Peralta are also charged with committing bank fraud in connection with a personal mortgage loan for Gonzalez.
If convicted of all charges, in addition to possible restitution, the defendants face the following possible sentences:
Joel Tillett and Angela Diaz: a maximum of seven years in prison, three years of supervised release, a $500,000 fine, and a $200 special assessment;
Jason Boggs: a maximum of 11 years in prison, three years of supervised release, a $1 million fine, and a $400 special assessment;
Claribel Gonzalez: a maximum of 40 years in prison, five years of supervised release, a $1.5 million fine, and a $300 special assessment;
Florentina Peralta: a maximum of 52 years in prison, five years of supervised release, a $3 million fine, and a $900 special assessment;
Ghovanna Gonzalez: a maximum of nine years in prison, a three year period of supervised release, a $750,000 fine, and a $400 special assessment;
Denise Peralta: a maximum of one year in prison, one year of supervised release, a $1,000 fine, and a $25 special assessment.
The case was investigated by the Department of Housing and Urban Development Office of the Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General, and the Federal Housing Finance Agency Office of Inspector General. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.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 Woman Sentenced for Illegally Collecting Her Dead Relative's BenefitsRead the Press Release
PHILADELPHIA - Beverly Brooker, 65, of Philadelphia, PA was sentenced today to 12 months and one day in prison for a scheme to collect Retirement Insurance Benefits intended for her deceased great aunt. Brooker pleaded guilty on November 7, 2012 to theft of government funds and Social Security representative payee fraud. Brooker concealed her great aunt’s death from the Social Security Administration by becoming representative payee for her aunt and submitting yearly false declarations to the Social Security Administration to account for how she “spent” the money on her great aunt. For each month of her fraud, which spanned from her aunt’s death in January 1992 until her fraud was discovered in the summer of 2012, Brooker received a check by mail that she then cashed and used to her own benefit. Her fraud resulted in a loss to the government of approximately $261,653.00.
In addition to the prison term, U.S. District Court Judge Legrome Davis ordered restitution in the amount of $261,653, a $200 special assessment, and three years of supervised release.The case was investigated by the Social Security Administration Office of Inspector General, and the United States Postal Inspection Service. It was prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Allentown Man Indicted on Child Exploitation ChargesRead the Press Release
PHILADELPHIA - Ramy Ahmed, 30, of Allentown, PA, was charged today by indictment with transportation of child pornography, distribution of child pornography, possession of child pornography, coercion and enticement of a minor, and traveling with intent to engage in illicit sexual conduct, announced United States Attorney Zane David Memeger. The indictment alleges that between February 2013 and April 2013, Ahmed engaged in online conversations with an undercover agent posing as the father of an 8-year old girl whom Ahmed expressed an interest in having sex with. It is further alleged that Ahmed sent images of child porn to the agent and, on April 2, 2013, drove from Allentown the New Jersey to meet with the agent thinking he is setting up a sexual encounter with the child. He was arrested and charged by criminal complaint and remains in custody pending an arraignment.
If convicted the defendant faces a maximum possible sentence of life in prison.
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 U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Special Assistant United States Attorney Karen A. Fox.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Souderton Man Charged with Illegal ReentryRead the Press Release
Irving Cruz-Sermeno, a/k/a “Irving Cruz,” a/k/a “Irving Miuricio Cruz,” a/k/a “Irving Mauricio Cerden Cruz,” a/k/a “Irvining Miuricio Cruz,” 22, of Souderton, Pennsylvania, was charged today by Indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about April 9, 2013, Cruz-Sermeno, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about February 24, 2011.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”) and is being prosecuted by Special Assistant United States Attorney Mark T. Sendek.
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, 215-861-8525New Jersey Businessman Pleads Guilty to Tax ChargesRead the Press Release
PHILADELPHIA - Mark Olkowski, 62, of North Wildwood, NJ, a business partner in K & O Sporting Goods, pleaded guilty today to tax charges for filing false personal income tax returns with the Internal Revenue Service from 2006 through 2009. K & O, on Moyamensing Avenue in South Philadelphia, is a distributor of t-shirts and other clothing items to labor unions, municipalities, and political candidates. During 2006 through 2009, Olkowski failed to report a total of approximately $148,000 of income to the IRS. The unreported income included significant sums of cash received by K & O but which Olkowski pocketed and did not deposit to K & O business accounts, and income he received from making personal expenditures using corporate credit cards. The tax loss on this unreported income is approximately $25,000. A sentencing hearing is scheduled for July 24, 2013.
In addition to filing false income tax returns, Olkowski also pleaded guilty to 15 counts of wire fraud concerning a fraud he committed upon the Pennsylvania State Unemployment Compensation system. Olkowski made two false applications for unemployment compensation benefits. In his applications, Olkowski falsely claimed to have been laid off from K & O, and did not tell unemployment compensation authorities that he was an owner of K & O Sporting Goods and that he was receiving income from K & O while he was applying for unemployment benefits. The loss to the unemployment compensation system is approximately $16,000.The maximum sentence for each of the four counts of filing false income tax returns is three years incarceration. The maximum sentence on each of the 15 counts of wire fraud is 20 years in prison. Olkowski also faces restitution to the IRS, a possible fine, and a $1,900 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul L. Gray and John M. Gallagher.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Legislator's Administrative Aide Pleads Guilty in FraudRead the Press Release
PHILADELPHIA - Lorraine Dispaldo, 58, of Philadelphia, pleaded guilty today to 30 counts of mail fraud, one count of wire fraud, one count of conspiracy to commit mail and wire fraud, four counts of filing false personal income tax returns, and one count of bankruptcy fraud. Dispaldo was charged in September 2012, along with then-Philadelphia Traffic Court Judge Robert Mulgrew, in an indictment alleging a scheme to defraud the Pennsylvania Department of Community and Economic Development (“DCED”). U.S. District Court Judge C. Darnell Jones, II, scheduled a sentencing hearing for September 16, 2013.
Dispaldo, who was an administrative aide to an unnamed Pennsylvania State Representative at the time, helped orchestrate 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 approximately $397,000 in grants to the Community to Police Communications (“CPC”) 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. Between 1997 and 2007 DCED also awarded approximately $460,000 in grants to the Friends of Dickinson Square (FDS”) to be used for the maintenance of Dickinson Square, at 4th and Tasker Streets, and the surrounding neighborhood. Dispaldo’s codefendant, Mulgrew, signed the FDS grant contracts with DCED.Dispaldo admitted that the grant contracts she submitted misrepresented how the funds would be used. She admitted that, instead of using grant funds exclusively for materials and equipment, as agreed, she instead paid tens of thousands of dollars in CPC and FDS grant funds to Mulgrew’s relatives and associates, including the teenage sons of his friends, and to the State Representative’s life-long friends. Dispaldo wrote over $104,000 of the almost $180,000 in impermissible payments made to persons for neighborhood revitalization “work.” While there were several decent gardens built, some trees planted and much landscaping material purchased, for the most part the activities undertaken primarily served as a “constituent service” clean-up-the-neighborhood-arm for the Representative’s benefit, easy money for favored friends and relatives, a summer make-work program to benefit the teenage sons of Mulgrew’s neighborhood and childhood friends, and some work on private property.
To mask the fact that grant funds were being used improperly, Dispaldo falsified her five
CPC “close out” reports sent to DCED by concealing most of the $104,000 in payments she made to persons from CPC funds and FDS funds during 2005 through September 2010. At times, Dispaldo submitted to DCED inaccurate IRS forms 1099, which document payments to persons, and at other times failed to prepare the forms, as required by law. Dispaldo also improperly paid almost $13,000 in CPC funds to the Representative’s office cleaner and improperly used $4,600 in CPC grant funds over the years to pay for her personal cell phone.To conceal the improper payments Dispaldo made to persons, she also submitted to DCED staggering numbers of duplicate phone invoices. For example, she sent in $91,500 worth of receipts in the close-out report for the third grant in the amount of $90,000, but $41,640 of those receipts were already sent in with either the first or second grant close-out reports. In the fourth close-out report, Dispaldo sent in $87,394 in receipts to satisfy the $50,000 grant, but $46,156 of those were previously sent to the state.
Dispaldo also pled guilty to filing false personal income tax returns for tax years 2006 through 2009, and pled guilty to one count of bankruptcy fraud for concealing her true income for 2008 and 2009 in her 2010 bankruptcy filing.
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 Paul L. Gray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Gets over 14 Years for CarjackingRead the Press Release
PHILADELPHIA - Leslie Mosby, 21, of Philadelphia, was sentenced today to 170 months in prison for an armed carjacking on November 21, 2010 in West Philadelphia in which he stole a Cadillac Deville and led Philadelphia police on a chase that ended at 40th and Locust Streets, where Mosby crashed the stolen car. Mosby and his accomplice then fled from the vehicle. While fleeing from police, Mosby’s accomplice fired a handgun at police officers, who returned fire and shot the accomplice to death. Mosby was arrested nearby after pursuing officers saw him toss a loaded .38-caliber revolver on the ground. Mosby pleaded guilty to the two charges - carjacking and using a firearm during a crime of violence - on January 4, 2013.
In addition to the prison term, U.S. District Court Judge Legrome D. Davis ordered five years of supervised release, a $2,500 fine, and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Philadelphia Police Department, and the University of Pennsylvania Police Department. It was prosecuted by Assistant United States Attorney Thomas M. Zaleski.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Jersey Man Charged with Misuse of Social Security NumberRead the Press Release
Daniel Prodelick a/k/a “Wederson Roberto,” 38, of Elizabeth, NJ, was charged today by Indictment1 with one count of misuse of a social security number and making false statements to agents with the Department of Homeland Security, U.S. Citizenship and Immigration Services, announced United States Attorney Zane David Memeger. In particular, the indictment charges the defendant with using a social security number that did not belong to him, and falsely claiming United States citizenship on an I-9 Form in order to obtain employment.
If convicted, Prodelick faces a maximum sentence of 10 years imprisonment, a three-year term of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Department of Labor Office of Inspector General, the Social Security Administration Office of Inspector General, Department of Homeland Security Investigations, Federal Bureau of Investigations, the Department of Transportation Office of Inspector General, the Environmental Protection Agency Criminal Investigations Division, the Internal Revenue Service Criminal Investigations, Department of Labor Employee Benefits Security Administration, and the Department of Labor, Wage and Hour Division. It is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
Click here to view the indictment
1An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525French Citizen Charged with Fraud in Airplane IncidentRead the Press Release
PHILADELPHIA - Philippe Jeannard, 61, of La Rochelle, France, is charged by information1, filed today, with one count of fraud in connection with an identification document, announced United States Attorney Zane David Memeger. According to the information, when Jeannard boarded a commercial airplane, on March 20, 2013, at Philadelphia International Airport, he possessed a fraudulent Air France identification card of a former Air France employee and used that fraudulent identification card to gain access to the plane’s cockpit.
If convicted, Jeannard faces a maximum sentence of five years imprisonment, a three year term of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Immigration and Customs Enforcement Homeland Security Investigations, the FBI, Department of Transportation Office of Inspector General, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney K.T. Newton.
1An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Sentenced for False Claim of Explosives on A PlaneRead the Press Release
PHILADELPHIA - Kenneth W. Smith, Jr., 26, of Philadelphia, PA, was sentenced today, in federal court, to 15 months in prison for calling in a hoax regarding explosives on a commercial aircraft on September 6, 2012. Smith was targeting a male passenger on a flight from Philadelphia to Dallas, Texas when called police to falsely report that the individual had carried liquid explosives on to the plane. Smith’s motive, according to his statement to authorities after his arrest, was to “avenge” a female that both men knew. As a result of Smith’s actions, the airplane was turned around mid-air and law enforcement agents stormed the plane.
Smith pleaded guilty on January 14, 2013 to malicious false information about an explosive, and false information and hoaxes. In addition to the prison term, U.S. District Court Judge Gene E.K. Pratter ordered Smith to: write a letter of apology to each of the passengers on board the plane, pay restitution of more than $17,000 to USAir, law enforcement and the victims on the plane for costs associated with his crime, pay $200 in special assessments, and complete three years of supervised release to include 100 hours of community service per year.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Philadelphia Police Department, the Transportation Security Administration, and the U.S. Department of Transportation Office of Inspector General. 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, 215-861-8525Two Indicted on Child Porn ChargesRead the Press Release
Cori Merklinger, 24, of Reading, PA, and Ambur Ham, 20, of Parkesburg, PA, were charged today by Indictmentwith one count of conspiracy to produce child pornography, and three counts of production of child pornography, announced United States Attorney Zane David Memeger. Merklinger was additionally charged with one count of distribution of child pornography.
If convicted, the defendants face a mandatory minimum sentence of 15 years in prison with a maximum sentence of 30 years, a fine of up to $1 million, a mandatory minimum period of five years up to lifetime period of supervised release, and a $100 special assessment for each count. Merklinger also faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years for the distribution count, plus an additional $100 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 the FBI, the Berks County Detectives and the Chester County Detectives, with assistance from the Berks County District Attorney’s Office and the Chester County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Two Charged in Identity Theft SchemeRead the Press Release
Arthur L. Long, Jr. , 25, and Jeremy Stanton, 26, all of Philadelphia, Pennsylvania, were charged on April 18, 2013 by Indictment with conspiracy, access device fraud and aggravated identity theft, in a scheme using counterfeit access device cards to make purchases at retail stores, such as Macy’s, Victoria’s Secret, J. Crew, Gap, Modells and Target, announced United States Attorney Zane David Memeger.
If convicted of all charges, Long faces a maximum possible sentence of 31 years in prison and a $1.5 million fine; and Stanton faces a maximum possible sentence of 17 years in prison and a $750,000 fine.
The case was investigated by the United States Secret Service, with the assistance of the Upper Merion Township Police Department, and is being prosecuted by Assistant United States Attorney K.T. Newton.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Reading Man Indicted on Child Porn ChargesRead the Press Release
David James Csanyi, 46, of Reading, PA, was charged today by Indictment with the transportation and receipt of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of thirty years incarceration and a mandatory minimum of five years.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
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.
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 Possession of Child PornRead the Press Release
Daniel Sion, 26, of Philadelphia, PA, was charged today by indictment with possession of child pornography, announced United States Attorney Zane David Memeger. According to the indictment, Sion knowingly possessed a computer hard drive which contained one or more visual depictions of minors engaging in sexually explicit conduct.
If convicted the defendant faces a maximum possible sentence of ten years of imprisonment, up to a lifetime of supervised release, a $250,000 fine, and a $100 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 U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Man Charged with Illegal Reentry After DeportationRead the Press Release
Ascencion Sandoval-Aparicio, a/k/a "Acension Sanjoval," 39, of Mexico, was charged today by indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about March 8, 2013, Sandovai-Aparicio, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about February 20, 1998, August 19, 2011, October 13, 2011, February 14,2012, May 18, 2012 and September 2, 2012.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations ("ERO") and is being prosecuted by Assistant United States Attorney Joseph J. Khan.
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, 215-861-8525Five More Charged in Mortgage Fraud Scheme Centered in West PhiladelphiaRead the Press Release
PHILADELPHIA - A 34-count indictment was unsealed today charging five people with various crimes stemming from their participation in a mortgage fraud scheme, between May 2004 and February 2009, that involved fraudulent documents, inflated purchase prices on loan documents for more than 100 Philadelphia properties, and resulted in more than $20 million in fraudulent loan proceeds. At the center of the alleged conspiracy is KREW Settlement Services, a Philadelphia real estate settlement company. The indictment charges Eric Sijohn Brown, 45, Roderick L. Foxworth, Sr., 56, who surrendered to authorities this morning, Cynthia Evette Brown, 51, who was arrested this morning, all of Philadelphia, Walter Alston Brown, Jr., 45, of Glen Allen, VA, and Kevin Joseph Franklin, 50, of Albany, GA, who were arrested this morning, with one count of conspiracy to commit loan and wire fraud. The indictment also seeks the criminal forfeiture of over $13.7 million from the defendants.
The indictment was announced by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward J. Hanko, IRS Special Agent-in-Charge Akeia Conner, and HUD-OIG Special Agent-in-Charge Joseph W. Clarke.
According to the indictment, Eric Sijohn Brown - a general contractor - worked with other co-conspirators to identify distressed properties to purchase, typically in the West Philadelphia area. The scheme involved recruiting “straw buyers” whose credit history and personal information was used to purchase the properties, obtain mortgage loans, and take title to the properties, when, in reality, the properties were owned and controlled by the defendants. Mortgage loan applications were then prepared in the names of the straw buyers containing a host of false information, including false purchase prices, false employment and income information, and false statements about the straw buyers living in the properties. Mortgage brokers - including Roderick Foxworth, Walter Brown, and John William Polosky (charged separately in the Western District of Pennsylvania) - allegedly submitted the fraudulent loan applications to lenders to secure the loans for the buyers, knowing that the information was false. Cynthia Evette Brown is alleged to have falsely verified that many of the straw buyers worked for her employer, Unicco Service Company, when they did not. Kevin Joseph Franklin, a title agent, is alleged to have falsely prepared two deeds and settlement statements (referred to as "Form HUD-1") – one for the seller that showed the actual agreed-upon purchase price and a false one for the lender that showed the grossly inflated purchase price. Franklin is also alleged to have created false title insurance policies for the lenders.
The indictment alleges that after the loans funded, the seller was paid the agreed-upon purchase price, and the difference between the actual purchase price and the false purchase price quoted to the lender was shared with and distributed by Franklin to Eric Brown, Foxworth, Walter Brown, and Cynthia Brown, and many of these payments were not reflected on the HUD-1 forms.
In addition to the conspiracy count, Eric Brown is charged with two counts of FHA loan fraud, 14 counts of loan fraud, one count of aggravated identity theft, two counts of wire fraud, and three counts of tax evasion; Kevin Franklin is charged with two counts of FHA loan fraud, 15 counts of loan fraud, one count of aggravated identity theft, one count of wire fraud, and three counts of filing a false tax return; Roderick Foxworth is charged with five counts of loan fraud and two counts of filing a false tax return; Walter Brown, Jr. is charged with one count of FHA loan fraud, six counts of loan fraud, one count of wire fraud, and two counts of tax evasion; and Cynthia Brown is charged with two counts of FHA loan fraud, five counts of loan fraud, and two counts of wire fraud.In addition to the five defendants charged in this indictment, seven defendants have been charged by information including: Willie G. Manley Jr., Eric Ponder, Francine Shanique Cross, Gregory Christopher Thornton, Rashika J. Moon, Dontaya S. Devore, and Mark Murphy. According to the indictment, Manley created false income documents which were submitted to lenders; Ponder helped cause the submission of numerous fraudulent loan applications; Cross, a real estate agent and appraiser, helped secure mortgage loans with falsely-inflated appraisals; Thornton recruited a straw buyer and served as a straw buyer; Moon, Devore, and Murphy were straw buyers who allowed their identities to be used to facilitate the submission of knowingly false loan applications.
If convicted, the defendants face the following possible maximum sentences:
Eric Sijohn Brown faces a maximum possible sentence of 486 years imprisonment, including a mandatory 2 years imprisonment; 5 years supervised release; a $15,800,000 fine; and a $2,300 special assessment.
Kevin Joseph Franklin faces a maximum possible sentence of 490 years imprisonment; including a mandatory 2 years imprisonment; 5 years supervised release; a $16,550,000 fine; and $2,300 special assessment.
Roderick L. Foxworth, Sr., faces a maximum possible sentence of 161 years imprisonment; 5 years supervised release; a $5,450,000 fine; and a $800 special assessment.
Walter Alston Brown, Jr. faces a maximum possible sentence of 217 years imprisonment; 5 years supervised release; a $6,950,000 fine; and a $1,100 special assessment.
Cynthia Evette Brown faces a maximum possible sentence of 197 years imprisonment; 5 years supervised release; a $6,000,000 fine; and a $900 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
As alleged in the indictment, “KREW” is an acronym of the first names of Kevin Joseph Franklin, Roderick L. Foxworth, Sr., Eric Sijohn Brown, and Walter Alston Brown, Jr.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Delaware Resident Charged with Illegal ReentryRead the Press Release
Jose Manuel Bernal-Castanera, a/k/a “Pepe Ayala Trevino,” 28, of New Castle, Delaware, was charged today by Indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about October 12, 2012, Bernal-Castanera, a native and citizen of Mexico, was found in the United States after having been deported from the United States on or about December 16, 2008, December 26, 2008, December 2, 2011, March 1, 2012, and June 6, 2012.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
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, 215-861-8525Alleged Pizza Shop Robber ChargedRead the Press Release
Stephen Easterling, 28, of Philadelphia, Pennsylvania was charged today by Indictment with robbing a Philadelphia pizza shop on February 1, 2013. Easterling is charged with one count of Hobbs Act Robbery, one count of using a firearm during a crime of violence, and one count of convicted felon in possession of firearm, announced United States Attorney Zane David Memeger. The defendant allegedly robbed the Little Caesars Pizza shop at 2501 Island Avenue in Philadelphia, PA.
If convicted, defendant faces a mandatory minimum of seven years in prison with a maximum possible sentence of life, consecutive to any other sentence, five years of supervised release, a $750,000 fine, restitution, and a $300 special assessment.
This case is part of Project Safe Neighborhoods, a federal initiative designed to identify and prosecute firearms offenders in federal court, where the defendant is likely to receive a substantial sentence upon conviction.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
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, 215-861-8525Owner of Brotherly Love Ambulance Pleads Guilty to $2 Million Health Care Fraud SchemeRead the Press Release
PHILADELPHIA - Feda Kuran, 37, of Philadelphia, PA, pleaded guilty today to a health care fraud scheme that involved billing Medicare for ambulance services that were not medically necessary, that were not actually provided, or that were induced by illegal kickbacks. During this health care fraud scheme, the defendant also gave and received illegal kickbacks. As a result, the Medicare program paid more than $2,015,712 for the fraudulent bills. Kuran pleaded guilty to one count of Health Care Fraud and one count of violating the Anti-Kickback Statute. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for July 24, 2013. Kuran faces a maximum possible sentence of 15 years in prison, three years of supervised release, a $250,000 fine, a $200 special assessment, and restitution to Medicare. In addition, the defendant has agreed to forfeiture and a money judgment against her for more than $2 million.
As documents filed in connection with the plea revealed, in July 2010, the defendant began operating Brotherly Love Ambulance, Inc. with a co-schemer. Kuran, or others acting at her direction, transported patients by ambulance when those patients could have been transported safely by other means and were, therefore, not eligible for ambulance service under Medicare and Medicaid requirements. Not only were those patients able to be safely transported by means other than ambulance, but also many of the patients were observed walking to and from ambulances. The defendant and others billed Medicare for ambulance services for patients who were transported by Brotherly Love employees in personal vehicles or who drove themselves or took public transportation to their destinations. In addition, the defendant and other employees paid kickbacks to some patients to induce them to allow Brotherly Love Ambulance, Inc. to transport them. Brotherly Love paid other patients so that the ambulance company could use those patients’ information to bill for transportation that Brotherly Love Ambulance never actually provided. The defendant also agreed that she received kickbacks from other ambulance companies to refer patients to the other ambulance companies.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Matthew J.D. Hogan and Paul W. Kaufman.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525United States Settles with SugarHouse Casino over Environmental ViolationsRead the Press Release
PHILADELPHIA - SugarHouse HSP Gaming, LP, has agreed to pay the United States $650,000 to resolve claims that it performed unauthorized work at the SugarHouse casino and entertainment complex along the Delaware River in Philadelphia, in violation of the Clean Water Act and the Rivers and Harbors Act. The resolution was announced by United States Attorney Zane David Memeger.
The Clean Water Act requires SugarHouse to obtain a United States Army Corps of Engineers (“Army Corps”) permit before discharging dredged and/or fill material into waters of the United States. The Rivers and Harbors Act requires SugarHouse to obtain an Army Corps permit for all work in or affecting navigable waters of the United States.
As a result of an investigation by the Army Corps, the United States asserts that from 2009 to 2010, SugarHouse, and or persons acting on its behalf, conducted work and discharged dredged and/or fill material into waters of the United States, at the SugarHouse site, without an Army Corps permit, in violation of the Clean Water Act and the Rivers and Harbors Act. Specifically, despite three cease and desist letters by the Army Corps, SugarHouse performed unauthorized work on several occasions at areas immediately surrounding the casino that included along Piers 42 and 43. The settlement agreement attaches an aerial photo showing the location of each alleged violation, and contains more information regarding when each violation occurred, and when subsequent remedial measures were taken. The unauthorized work remaining at the final location is permitted pursuant to the terms of the settlement agreement.
“This case reinforces our commitment to protecting the environment by ensuring that corporations either follow environmental laws or face serious sanctions,” Memeger said.
To ensure that the environment receives the maximum benefit from this resolution, the settlement requires SugarHouse to pay the majority of the money, $625,000, to the Brandywine Conservancy, which is an Army Corps-approved non-profit conservation organization with demonstrated experience in land and water conservation. The Army Corps will ensure that the $625,000 will be used towards protecting waters and wetlands in the five county area. The remaining $25,000 payment will be made to the United States as a civil penalty in accordance with the Clean Water Act and the Rivers and Harbors Act.
This case was handled by Assistant United States Attorney Stacey L. B. Smith. United States Army Corps of Engineers agency counsel, Barry Gale, and surveillance and enforcement biologists, Jeffrey Steen and Kevin Maley, conducted site visits, and shared technical and legal expertise.
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, 215-861-8525Nigerian Man Sentenced for Craigslist ScamRead the Press Release
PHILADELPHIA - Adebowale Ayodeji Owoaje, 31, of Nigeria, was sentenced today to 24 months in prison for wire fraud in a scheme to defraud individuals who were selling items and applying for jobs on Craigslist.com. Using various aliases while he was located overseas, Owoaje used e-mail to reach an agreement with the individuals on the sale price of items or terms of employment, including funds for a purported bonus or training materials. Owoaje pleaded guilty on January 15, 2013. He has been in federal custody since March 2012.
From overseas, Owoaje sent counterfeit cashier’s checks to his co-conspirators here in the United States. Based on instructions from Owoaje, a co-conspirator typed amounts on counterfeit cashier’s checks that exceeded the sales price or bonus agreed to by Owaoje and the individuals. The co-conspirator then mailed the counterfeit cashier’s checks to the individuals.
Owoaje informed individuals that a check in the wrong amount was sent to them by “mistake.” Owaoje then asked individuals to deposit that check in their bank account and to keep the amount Owoaje owed the individual plus an additional sum for their trouble. Owoaje instructed individuals to wire the balance of the money via Western Union to a co-conspirator, whom Owoaje falsely represented to individuals as his secretary or shipping agent. Only after wiring this money did individuals learn that the cashier’s checks they received were counterfeit.
In addition to the prison term, U.S. District Court Judge Mary A. McLaughlin ordered $193,175.86 in restitution, three years of supervised release and a $400 special assessment.The case was investigated by Immigrations and Customs Enforcement Homeland Security Investigations and was prosecuted by Assistant United States Attorney Vineet Gauri.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Jersey Man Sentenced for Child ExploitationRead the Press Release
PHILADELPHIA – Patrick Mergen, 40, of Sewell, NJ, was sentenced yesterday to 25 years in prison for using a child to produce child pornography. He pleaded guilty on November 20, 2012. In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered 10 years of supervised release, computer monitoring, no unsupervised contact with minors, and sex counseling.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Michael Levy.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Alleges Plot to Rob Drug Stash HouseRead the Press Release
Dwight Berry, 28, Antonio Ellis, 27, Jermau Johnston, 18, all of Philadelphia, and Aski Washington, 33, of Darby, are charged by indictment , filed yesterday, in a conspiracy to rob a drug dealer’s stash house, announced United States Attorney Zane David Memeger. The defendants are charged with conspiracy to commit Hobbs Act robbery, attempted Hobbs Act robbery, conspiracy to possess with the intent to distribute five kilograms or more of cocaine, attempted possession with intent to distribute five kilograms or more of cocaine, and carrying a firearm during and in relation to a crime of violence. Berry, Washington, and Ellis are also charged with possession of a firearm by a convicted felon.
According to the indictment, on March 13, 2013, after weeks of planning, the defendants met at a predetermined location in Philadelphia. Defendants Berry and Johnston got into the minivan of Person #1 armed with two loaded firearms and zip ties. They then drove to a convenience store to purchase gloves for Johnston to use in the robbery. Defendants Ellis and Washington followed in a separate car carrying gloves, a mask, a can of lighter fluid, a lighter, and an empty back pack. The defendants met with Person #2 and, with everyone present, discussed the plan to rob the stash house which they believed contained 10 kilos of cocaine and was guarded by two armed guards. They drove to a final meeting place before the robbery where law enforcement moved in before the defendants could carry out their plan.
If convicted of all charges, the defendants face a mandatory minimum sentence of 15 years in prison up to life imprisonment, a fine of up to $20 million, five years supervised release, and a $500 special assessment. In addition, Berry, Washington, and Ellis each face an additional $250,000 fine and an additional $100 special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.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, 215-861-8525Passport Fraud AllegedRead the Press Release
Emerson Flowers, 49, of Collingdale, PA, was charged today by Indictment with passport fraud, and use of a Social Security number assigned on the basis of false information. These offenses arise from the defendant’s attempt to obtain a U.S. Passport on January 18, 2013 using fraudulent identification in that name, announced United States Attorney Zane D. Memeger.
If convicted, the each defendant faces a maximum possible sentence of 15 years in prison, a fine of up to $500,000, a three-year term of supervised release, and a $200 mandatory special assessment.
The case was investigated by United States State Department and the Social Security Administration and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
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, 215-861-8525Federal Prison Guard Charged with Sexual Acts with an Inmate and Attempting to Aid an EscapeRead the Press Release
PHILADELPHIA - Lamont Lucas, 47, of Philadelphia, PA, was charged by indictment[Note:1]1, unsealed today, with sexual abuse of a ward, providing contraband in a prison, and instigating or assisting an attempted escape, announced United States Attorney Zane David Memeger. Lucas was arrested this morning.
According to the indictment, between February 2012 and May 2012, while working as a guard at the Federal Detention Center in Philadelphia, Lucas engaged in sexual acts with the inmate. It is further alleged that Lucas gave the inmate sterling silver earrings and assisted in an attempted escape by the inmate.
If convicted of all charges, Lucas faces a maximum possible sentence of 20 ½ years in prison.
The case was investigated by the U.S. Department of Justice Office of Inspector General with the assistance of the Federal Detention Center in Philadelphia. It is being prosecuted by Assistant United States Attorney A. Nicole Phillips.
Click here to view the indictment
1An Indictment/ Information/Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Seven Charged in Health Care Fraud SchemeRead the Press Release
Medicare Billed $3.6 Million for Unnecessary Ambulance Rides
PHILADELPHIA – An indictment was unsealed today charging Penn Choice Ambulance Inc., operating from Philadelphia, PA, Huntington Valley, PA and Camp Hill, PA, its owner, Anna Mudrova, and operators Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, Valeriy Davydchik, and Khusen Akhmedov, with conspiracy to commit health care fraud. The alleged scheme involved more than $3.6 million in fraudulent claims submitted to Medicare. The defendants were also charged with related crimes including making false statements in connection with health care matters, aggravated identity theft, paying kickbacks to patients, and money laundering, announced United States Attorney Zane David Memeger.
Valeriy Davydchik, 58, and Khusen Akhmedov, 22, Mikhail and Irina Vasserman, both 50, and Aleksandr Vasserman, 29, all of Philadelphia, were arrested this morning. Mudrova, 40, Gerasyuk, 41, also of Philadelphia, will make a court appearance tomorrow. According to the indictment, 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 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 $1.5 million for this medically unnecessary method of transportation.
If convicted, the defendants face substantial terms of imprisonment and fines. If convicted, Penn Choice Ambulance Inc. faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations. All defendants could also be excluded from participating in federal health care programs.
Bank accounts and other assets were seized which are subject to criminal forfeiture proceedings.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.
Click here to view the indictment
An Indictment is an accusation, as is an Information. 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 Sentenced for Laser Strike IncidentRead the Press Release
PHILADELPHIA - Daniel F. Dangler, 30, of Philadelphia, was sentenced today to three months in jail followed by seven months of home confinement for aiming the beam of a laser at an aircraft in the special aircraft jurisdiction of the United States. Dangler aimed a laser pointer at a Philadelphia television news helicopter on July 18, 2012. He pleaded guilty on October 17, 2012. U.S. District Court Judge John R. Padova also ordered three years of supervised release.
The news helicopter was on assignment when the news photographer noticed the helicopter cockpit light up with a bright green light. He instructed the pilot not to look in the direction of the beam. A green laser beam is more powerful than a red laser beam but either can cause retina damage to the crew of an aircraft. The helicopter crew was able to identify the house from which the laser originated, uniformed officers responded and Dangler was questioned. Initially he denied using the laser but, on a subsequent interview with FBI agents, he admitted to knowingly shining the laser beam at the helicopter.On February 14, 2012, President Barack Obama signed the FAA Modernization and Reform Act of 2012, which modernizes the nation’s aviation system. This Act establishes a new criminal offense for aiming the beam of a laser at an aircraft in the special aircraft jurisdiction of the United States, or at the flight path of such an aircraft. The statute was enacted in response to a growing number of incidents of pilots being distracted or even temporarily blinded by laser beams.
The FAA also has a civil case pending against Dangler in which Dangler could be fined up to $11,000.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It was prosecuted by Special Assistant United States Attorney Pedro de la Torre.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Man Charged with Possession of A Firearm by A Convicted FelonRead the Press Release
Derrick Parks, 40, of Philadelphia, Pennsylvania, was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of ten years in prison, a three-year period of supervised release, a $250,000 fine and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Jersey Man Added to Multi-Million Dollar Mortgage Fraud CaseRead the Press Release
Mark Murphy, 47, of Williamstown, NJ, was charged today by Information with participating in a mortgage fraud conspiracy involving more than 100 Philadelphia properties and more than $20 million in fraudulent loan proceeds, announced United States Attorney Zane David Memeger. Murphy is charged with one count of conspiracy to commit loan and wire fraud, and one count of loan fraud. The information also seeks the criminal forfeiture of over $324,000 from Murphy.
Murphy is the fifth defendant charged in this district with participating in a massive mortgage fraud conspiracy that operated between May 2004 and February 2009, primarily in the West Philadelphia section of the city of Philadelphia, involving KREW Settlement Services. KREW is a Philadelphia real estate settlement company that is alleged to have been at the center of the conspiracy. Murphy is alleged to have directly participated in securing a $324,000 mortgage loan from Washington Mutual Bank on 4930 Kingsessing Avenue in Philadelphia based on the submission of a false loan application and other false documents. The information alleges that other co-conspirators helped prepare the false supporting documentation, including false appraisal and false tax returns for Murphy, and failed to record Washington Mutual Bank’s mortgage.
The four co-conspirators charged in this district with participating in the same mortgage fraud conspiracy involving KREW are: Willie G. Manley Jr., Eric Ponder, Rashika J. Moon, and Dontaya S. Devore. According to the information, co-conspirator Willie G. Manley, charged elsewhere, was an accountant who created false income documents, such as W-2 forms, paystubs, and Form 1040 income tax returns, which were submitted to lenders. Co-conspirator Eric Ponder, charged elsewhere, is alleged to have held himself out as a real estate developer and helped cause the submission of numerous fraudulent loan applications that resulted in mortgages being unwittingly issued by various banks by, making false statements on loan applications in his own name and helping secure mortgages in the names of others by recruiting “straw buyers” whose identity and fraudulent information was used to obtain the loans. Ponder is also alleged to have submitted false invoices for construction work never performed on the properties in order to justify payments to him from the settlement proceeds of loans in the names of the straw buyers.
The conspiracy also included grossly inflated appraisals, false title insurance policies, false receipts for home repairs that were never performed, and straw buyers who knowingly allowed their names and identities to be used to purchase the properties and defraud the banks.
If convicted, Murphy faces a maximum possible sentence 35 years imprisonment, 5 years supervised release, a fine of $1,250,000 or twice the value of the property involved in the transactions, and a $200 special assessmentThe case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
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, 215-861-8525Convicted Drug Dealer Sentenced to 21 Months in Prison for Violating Supervised ReleaseRead the Press Release
PHILADELPHIA - Edward Montgomery, also known as “One-Eye Eddie,” 35, of Philadelphia, Pennsylvania, was sentenced today by the Honorable Gene E.K. Pratter to 21 months in prison followed by 39 months of supervised release for violating the terms of a previously imposed term of supervised release.
On July 20, 2009, Montgomery was sentenced to 60 months in prison followed by 4 years of supervised release by the Honorable Christopher C. Connor of the United States District Court for the Middle District of Pennsylvania for trafficking crack cocaine in Lewiston, Pennsylvania. Montgomery was released from federal prison on August 3, 2012.
On August 25, 2012, only three weeks after being released from prison, Montgomery fired into a group of young men sitting on the steps of a vacant house in the 1200 block of North Hollywood Street. Montgomery hit two people in what was apparently a drug-related shooting. One of the victims had a drug trafficking case pending in state court. In addition to being charged by the state for this offense, Montgomery’s federal probation officer filed a notice that this conduct violated the terms of Montgomery’s supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Robert J. Livermore.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Reading Woman Gets 342 Months for Drug-Debt KidnappingRead the Press Release
PHILADELPHIA - Grace Marie Perez-Jimenez, 27, of Reading, PA, was sentenced today to 28.5 years in prison for kidnapping a 14 year-old child for ransom over a drug debt. In 2011, Perez sold "crack" cocaine to a Reading resident. On November 3, 2011, after the drug customer failed to pay her $500, Perez abducted the customer's 14-year old child, as the child walked home from school in Reading, Pennsylvania. Inside the car, Perez physically assaulted the 14-year old victim, threatening to kill the child by saying, for example, “you see this right here (referring to the gun), if I don't get my money you may not be going home to mom.” The victim was then blindfolded and handcuffed to a chair. Reading Police assisted the kidnapping victim's mother to arrange a ransom drop. Perez's co-defendant, Samantha Conrad, was captured on a video recording retrieving the first drop of pre-recorded ransom money. After the first $500 ransom payment, Perez drove to Philadelphia, along with the minor child, in Perez's gold Mitsubishi and used the $500 to buy "PCP" to later sell in Reading. Perez demanded more money and a second ransom drop was placed in the mailbox of Perez's mother.
Finally, after the second ransom payment and hours of psychological torture, the child was released with the threat that Perez would kill the 14 year old victim and the family if anyone was told the identity of the kidnappers. Perez pleaded guilty on July 12, 2012 to conspiracy to kidnap, kidnapping, conspiracy to distribute phencyclidine ("PCP"), possession with intent to distribute phencyclidine ("PCP"), collection of extension of credit by extortionate means, possession of a firearm in furtherance of a crime of violence, and one count of possession of a firearm by a convicted felon.
In addition to the prison term, U.S. District Court Judge James Knoll Gardner ordered Perez to pay a $5,000 fine, a $700 special assessment, and ordered five years of supervised release.
This case was investigated by the Federal Bureau of Investigation, the Reading Police Department, and the Berks County District Attorney's Office. It was prosecuted by Assistant U.S. Attorney Jessica Natali.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Oxford Man Sentenced to Eight Years in Prison for Illegal Gun PossessionRead the Press Release
Joseph White, 46, of Oxford, Pennsylvania was sentenced today to eight years in prison by the Honorable Stewart Dalzell for possession of a firearm by a convicted felon. During the evening of April 12, 2012, Pennsylvania State Police were called to White’s home in Oxford for a domestic disturbance. Prior to this date, White was convicted in Pennsylvania on several felony charges including drug trafficking and receiving stolen property. When the troopers arrived that night, they found White in possession of a loaded .44 caliber revolver and a loaded shotgun and placed White under arrest. The troopers later returned to his home with a search warrant and seized 91 additional firearms, including a machine gun, a sawed-off shotgun, parts to a rocket launcher, and a large quantity of ammunition. White pleaded guilty January 7, 2013.
In addition to the prison term, White was ordered to pay a $1,500 fine, a $100 special assessment, and was ordered to complete three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennsylvania State Police. It was prosecuted by Assistant United States Attorney Robert J. Livermore.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Woman Charged Is Fourth Defendant in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
Dontaya S. Devore, 38, of Philadelphia, was charged today by Information with participating in a mortgage fraud conspiracy involving more than 100 Philadelphia properties and more than $20 million in fraudulent loan proceeds, announced United States Attorney Zane David Memeger. Devore is charged with conspiracy to commit loan and wire fraud, false statement in connection with Federal Housing Administration loan, and loan fraud. The information also seeks the criminal forfeiture of over $467,000 from Devore.
Devore is the fourth defendant charged in this district with participating in a massive mortgage fraud conspiracy that operated between May 2004 and February 2009, primarily in the West Philadelphia section of the city of Philadelphia involving KREW Settlement Services, a Philadelphia real estate settlement company that is alleged to have been at the center of the conspiracy. Devore is alleged to have directly participated in several fraudulent loan applications by purchasing properties in her name based on the submission of false loan applications and other false documents.
The other three co-conspirators charged in this district with participating in the same mortgage fraud conspiracy involving KREW are Willie G. Manley Jr., Eric Ponder, and Rashika J. Moon. According to the information, co-conspirator Willie G. Manley, charged elsewhere, was an accountant who created false income documents, such as W-2 forms, paystubs, and Form 1040 income tax returns, which were submitted to lenders. Co-conspirator Eric Ponder, charged elsewhere, is alleged to have held himself out as a real estate developer and helped cause the submission of numerous fraudulent loan applications that resulted in mortgages being unwittingly issued by various banks by, making false statements on loan applications in his own name and helping secure mortgages in the names of others by recruiting “straw buyers” whose identity and fraudulent information was used to obtain the loans. Ponder is also alleged to have submitted false invoices for construction work never performed on the properties in order to justify payments to him from the settlement proceeds of loans in the names of the straw buyers. The information also alleges that another co-conspirator, Rashika J. Moon, had the legal authority to sign checks from KREW’s bank account and directly participated in numerous fraudulent loan applications by purchasing properties in her name based on the submission of false loan applications and other false documents, or by later “selling” many of those properties to “straw buyers” whose identities and fraudulent information were used to obtain other loans.
The conspiracy also included grossly inflated appraisals, false title insurance policies, false receipts for home repairs that were never performed, and straw buyers who knowingly allowed their names and identities to be used to purchase the properties and defraud the banks.
If convicted, Devore faces a maximum possible sentence 37 years imprisonment, 5 years supervised release, a fine of $1.5 million or twice the value of the property involved in the transactions, and a $300 special assessmentThe case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
UNITED STATES ATTORNEY’S OFFICE Contact: PATTY HARTMAN
EASTERN DISTRICT, PENNSYLVANIA Media Contact
Suite 1250, 615 Chestnut Street 215-861-8525
Philadelphia, PA 19106COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT
HTTP://www.justice.gov/usao/paeUNITED 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 Pizza Hut RobberyRead the Press Release
Jamal Craig, 43, of Philadelphia, Pennsylvania was charged by Indictment today with one count of Hobbs Act Robbery, and one count of brandishing, using and carrying a firearm during a crime of violence, announced United States Attorney Zane David Memeger. According to the indictment, defendant robbed the Pizza Hut, located at 2530 Aramingo Avenue, Philadelphia, PA on January 25, 2013.
If convicted, defendant faces a mandatory minimum of seven years in prison with a maximum possible sentence of life, consecutive to any other sentence, five years of supervised release, a $500,000 fine, restitution and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
This case is part of Project Safe Neighborhoods, a federal initiative designed to identify and prosecute firearms offenders in federal court, where the defendant is likely to receive a substantial sentence upon conviction.
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, 215-861-8525Owner of Brotherly Love Ambulance Charged in $2 Million Health Care Fraud SchemeRead the Press Release
PHILADELPHIA - Feda Kuran, 37, of Philadelphia, PA, pleaded guilty today to a health care fraud scheme that involved billing Medicare for ambulance services that were not medically necessary, that were not actually provided, or that were induced by illegal kickbacks. During this health care fraud scheme, the defendant also gave and received illegal kickbacks. As a result, the Medicare program paid approximately $2,015,712 for the fraudulent bills. Kuran pleaded guilty to one count of Health Care Fraud and one count of violating the Anti-Kickback Statute. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for July 24, 2013. Kuran faces a maximum possible sentence of 15 years in prison, three years of supervised release, a $250,000 fine, a $200 special assessment, and restitution to Medicare. In addition, the defendant has agreed to forfeiture and a money judgment against her for more than $2 million.
As documents filed in connection with the plea revealed, in July 2010, the defendant began operating Brotherly Love Ambulance, Inc. with a co-schemer. Kuran, or others acting at her direction, transported patients by ambulance when those patients could have been transported safely by other means and were, therefore, not eligible for ambulance service under Medicare and Medicaid requirements. Not only were those patients able to be safely transported by means other than ambulance, but also many of the patients were observed walking to and from ambulances. The defendant and others acting on behalf of Brotherly Love Ambulance also caused bills to be submitted to Medicare for ambulance services for patients who were transported by Brotherly Love employees in personal vehicles or who drove themselves or took public transportation to their destinations. In addition, the defendant and other employees paid kickbacks to some patients to induce them to allow Brotherly Love Ambulance, Inc. to transport them. Brotherly Love paid other patients so that the ambulance company could use those patients’ information to bill for transportation that Brotherly Love Ambulance never actually provided. The defendant also agreed that she received kickbacks from other ambulance companies to refer patients to the other ambulance companies.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Matthew J.D. Hogan and Paul W. Kaufman.
Click here to view the indictment
1An 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 Alleges Illegal Reentry After DeportationRead the Press Release
Mario Tiatenco-Nolasco, a/k/a “Tiatenco Mario Nolasco,” a/k/a “Mario Nolasco,” 23, of Philadelphia, Pennsylvania, was charged today by Indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about January 30, 2013, Tiatenco-Nolasco, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about August 27, 2010.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement (“ICE”) and is being prosecuted by Assistant United States Attorney Virgil B. Walker.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Alleges Illegal Reentry After DeportationRead the Press Release
Carlos Enrique Romero-Peguero, a/k/a “Juan Rodriguez-Perez,” 40, of Philadelphia, Pennsylvania, was charged today by Indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about March 7, 2013, Romero-Peguero, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about August 28, 1997, April 24, 1998, January 27, 2000 and August 8, 2001.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement Removal and Enforcement Operations and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
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, 215-861-8525Carney's Point, NJ Woman Charged in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
Rashika J. Moon, 42, of Carneys Point, New Jersey, was charged today by Information with participating in a mortgage fraud conspiracy involving more than 100 Philadelphia properties and more than $20 million in fraudulent loan proceeds, announced United States Attorney Zane David Memeger. Moon is charged with conspiracy to commit loan and wire fraud, false statement in connection with Federal Housing Administration loan, and loan fraud. The information also seeks the criminal forfeiture of over $1.7 million from Moon.
The information alleges a massive mortgage fraud conspiracy that operated between May 2004 and February 2009, primarily in the West Philadelphia section of the city of Philadelphia. Moon, is alleged to have been associated with KREW Settlement Services, a Philadelphia real estate settlement company that is alleged to have been at the center of the conspiracy. Moon is alleged to have had the legal authority to sign checks from KREW’s bank account. Moon is also alleged to have directly participated in numerous fraudulent loan applications by either purchasing properties in her name based on the submission of false loan applications and other false documents, or by later “selling” many of those properties to “straw buyers” whose identities and fraudulent information were used to obtain other loans. Many of the fraudulent loan applications are alleged to have included falsely-inflated sales prices and falsely-inflated appraisals, causing the lenders to loan more money than the properties than they were truly worth. Most of the mortgages were unpaid and most of the properties fell into foreclosure.
According to the information, co-conspirator Eric Ponder, charged elsewhere, held himself out as a real estate developer and helped cause the submission of numerous fraudulent loan applications that resulted in mortgages being unwittingly issued by various banks by, making false statements on loan applications in his own name and helping secure mortgages in the names of others by recruiting “straw buyers” whose identity and fraudulent information was used to obtain the loans. Ponder is also alleged to have submitted false invoices for construction work never performed on the properties in order to justify payments to him from the settlement proceeds of loans in the names of the straw buyers. The information also alleges that another co-conspirator, Willie G. Manley, charged elsewhere, was an accountant who created false income documents, such as W-2 forms, paystubs, and Form 1040 income tax returns, which were submitted to lenders. The conspiracy also included grossly inflated appraisals, false title insurance policies, false receipts for home repairs that were never performed, and straw buyers who knowingly allowed their names and identities to be used to purchase the properties and defraud the banks.
If convicted, Moon faces a maximum possible sentence 37 years imprisonment, 5 years supervised release, a fine of $1,500,000 or twice the value of the property involved in the transactions, and a $300 special assessmentThe case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former City Pharmacist Pleads Guilty to Drug Trafficking ChargesRead the Press Release
PHILADELPHIA - Arlene Gerson, 46, of Philadelphia, pleaded guilty today to conspiracy to distribute oxycodone and attempted distribution of oxycodone, announced United States Attorney Zane David Memeger. Sentencing has been set for July 12, 2013 before the Honorable Stewart Dalzell of the United States District Court for the Eastern District of Pennsylvania. She faces an advisory sentencing guideline range of 57 to 71 months in prison.
Gerson was working as a pharmacist at various locations, including a health clinic run by the City of Philadelphia known as Health Center #5. Gerson used that position to access blank prescription pads, doctors’ identification information, patient identification information, and patient health insurance information in creating phony prescriptions. Gerson or one of their associates then took the false prescription to a pharmacy to be filled. Gerson and her associates then allegedly sold a portion of the controlled substances for a profit.
The case was investigated by FBI, the Philadelphia Office of Inspector General, the Drug Enforcement Administration, and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Robert Livermore.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Ambulance Company and Owners Plead Guilty in Health Care Fraud SchemeRead the Press Release
PHILADELPHIA - MedEx Ambulance, Inc., located in Feasterville, PA, and its owners, Aleksandr N. Zagrodony and Sergey Zagorodny, pleaded guilty to all counts of a 41-count Indictment charging them with health care fraud, false statements in connection with health care matters, wire fraud, and conspiracy to commit health care fraud and wire fraud, announced United States Attorney Zane David Memeger.
Defendant MedEx Ambulance was incorporated in 2004, and its owners operated an ambulance company that transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The Zagorodny brothers, or others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants and their employees knew that the patients could be transported safely by other means and, in fact, many of the patients were able to walk. The defendants billed for the ambulance services as if those services were medically necessary. As a result of the fraudulent billing, the Medicare program paid more than $2.5 million for this inappropriate method of transportation.
Aleksandr Zagorodny and Sergey Zagorodny face a maximum sentence of 370 years of imprisonment, three years of supervised release, a fine of $10.25 million, mandatory restitution currently estimated at in excess of $2.6 million, and a $4,100 special assessment. MedEx faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations. All defendants could be excluded from participating in federal health care programs if convicted.
Agents previously seized four ambulances owned by MedEx Ambulance, purchased for over $200,000, which are subject to criminal forfeiture proceedings. Three bank accounts also were seized, and the funds contained in those accounts, as well as other assets, including the company headquarters, are subject to criminal forfeiture proceedings.
Sentencing is scheduled for July 2, 2013 before the Honorable Berle M. Schiller.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Three Charged with Conspiracy to Rob Upper Darby Business OwnerRead the Press Release
PHILADELPHIA - Three Philadelphia men are charged with conspiracy and Hobbs Acts robbery in a home invasion of the owner of an Upper Darby business, announced United States Attorney Zane David Memeger. A superseding indictment, filed yesterday, charges Jeramiah Stokes, 23, Tyreek Styles, 25, and Tyrone Styles, 24, all of Philadelphia, with the December 3, 2011 armed robbery of the owner of the Secane Deli and Grill in Upper Darby. According to the superseding indictment, the defendants and two other co-conspirators followed the owner home, forced their way into the home at gunpoint, and forced the business owner and the business owner’s family to give them money, some of which were the business proceeds of Secane Deli and Grill. The defendants are also charged with Hobbs Act robbery, and use, carrying, and discharging a firearm during a crime of violence. Defendant Tyrone Styles allegedly fired the gun as the three defendants and two co-conspirators fled the scene.
If convicted of all charges, each of the defendants faces a mandatory term of 10 years in prison, up to a life sentence, fines, supervised release, and a special assessment of $300.
The case was investigated by the Federal Bureau of Investigation and the Upper Darby Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former IRS Employee Sentenced for Stealing Taxpayer's IdentityRead the Press Release
PHILADELPHIA - Domeen Flowers, 49, of Maitland, Florida, was sentenced today to 28 months in prison for an identity theft scheme in which she stole the personal information of a taxpayer. Flowers, a former employee of the Internal Revenue Service in Philadelphia, used her position with the IRS to make unauthorized computer entries into the IRS’ Integrated Data Retrieval System. After accessing the system, Flowers obtained personal identifying information pertaining to a taxpayer, identified as “E.R.” She then used the information to apply for credits from different credit card companies in E.R.’s name. Flowers pleaded guilty to the crime on August 16, 2012.
“Identity theft committed by IRS employees is a serious violation of the public’s trust,” said Treasury Inspector General for Tax Administration J. Russell George. “It has the potential to harm the lives of taxpayers and undermine their faith in our Nation’s system of tax administration.”In addition to the prison term. U.S. District Court Judge Eduardo Robreno ordered Flowers to pay restitution to the credit card companies and pay a special assessment of $900. Flowers must also serve two years of supervised release. She was immediately taken in to custody.
The case was investigated by Treasury Inspector General for Tax Administration Philadelphia Field Office and was prosecuted by Assistant United States Attorney Floyd J. Miller.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alleged Bank Robber ChargedRead the Press Release
Jayme Dinan, 29, of Philadelphia, Pennsylvania was charged today by Indictment with two counts of bank robbery, announced United States Attorney Zane David Memeger.
In criminal cases If convicted the defendant faces a maximum possible sentence of 40 years imprisonment, a $500,000 fine, a three year period of supervised release, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Joseph A. LaBar.
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, 215-861-8525Trio Charged in Cocaine ConspiracyRead the Press Release
Kenny Martinez, 25, Richard Thomas Moore, 28, both of Philadelphia, and Fernando Martinez, 33, of Ponce, Puerto Rico, are charged in a one-count indictment, filed today, with conspiracy to distribute 500 grams or more of cocaine, announced United States Attorney Zane David Memeger. The indictment alleges that between March 5, 2013 and March 7, 2013, the defendants orchestrated the delivery, by express mail, of approximately one kilogram of cocaine. The package was sent from Ponce, Puerto Rico to Moore’s Philadelphia address where Fernando Martinez allegedly accepted it. It is further alleged that Moore then delivered the package to 4625 Boudinot Street. The mail parcel was interdicted from the mail by United States Postal Inspectors on March 6, 2013, in Philadelphia, Pennsylvania.
If convicted, Fernando Martinez and Richard Thomas Moore each face a maximum penalty of 40 years imprisonment, a mandatory minimum term of 5 years imprisonment, at least 4 years supervised release, and a fine of $5,000,000. Kenny Martinez faces a maximum penalty of life imprisonment, a mandatory minimum term of 10 years imprisonment, at least 8 years supervised release, and a fine of $10,000,000.
The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Federal Prison Inmates Among Group Charged in Drug ConspiracyRead the Press Release
PHILADELPHIA - An indictment, filed today, charges eight people, including two federal prison inmates, with conspiracy to distribute 500 grams of methamphetamine, announced United States Attorney Zane David Memeger. The indictment alleges that federal inmates Jose Cardenas-Covarrubias and Donaciano Contreras-Monje, imprisoned at FCI McKean, initiated the sale of large amounts of methamphetamine to two law enforcement officers posing as Philadelphia drug dealers.
According to the indictment, defendant Silvestre Garcia-Andaya spoke with the undercover officers by telephone and negotiated a price for the delivery of large quantities of methamphetamine. Defendants Garcia-Andaya, Erika Garcia, and Alfredo Moralez-Bustos came to Philadelphia from California to meet with the “buyers” and discuss the delivery. On February 20, 2013, it is alleged that Garcia-Andaya and defendant Esau Zendejaz-Bustos delivered approximately 11 pounds of methamphetamine to one of the undercover officers and, the next day, another two pounds to the officer, accepting $10,000 as a partial payment. It is further alleged that on March 6, 2013, Garcia-Andaya met with defendants Rodolfo Luviano and Juan Antonio Lopez, who drove from Oklahoma to Philadelphia, to accept a delivery of methamphetamine.In addition to the conspiracy, Garcia-Andaya is charged with distributing 500 grams or more of methamphetamine and possession with intent to distribute; Zendejas-Bustos is charged with distributing 500 grams or more of methamphetamine, possession with intent to distribute cocaine, and possession with intent to distribute marijuana; Luviano and Lopez are also charged with distributing 500 grams of more of methamphetamine.
If convicted, each defendant faces a mandatory ten years in prison with a maximum possible sentence of life, a mandatory term of five years supervised release to lifetime supervised release, a fine of up to $10 million, and a $100 special assessment.
The case was investigated by the Drug Enforcement Administration and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney David L. Axelrod.
INFORMATION REGARDING THE DEFENDANTS
Silvestre Garcia-Andaya, 31, of Lynwood, CA
Erika Garcia, 25, of Lynwood, CA
Alfredo Moralez-Bustos, 30, of Fresno, CA
Esau Zendejas-Bustos, 26, of Lincoln University, PA
Jose Cardenas-Covarrubias, 29, FCI McKean
Donaciano Contreras-Monje, 37, FCI McKean
Rodolfo Luviano, 24, of Oklahoma City, OK
Juan Anthonio Lopez, 22, of Tulsa, OKClick 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, 215-861-8525Fen-Phen Fraud Doctor Sentenced to 72 Months in PrisonRead the Press Release
PHILADELPHIA - Dr. Abdur Razzak Tai, 79, of Kissimmee, Florida was sentenced today to six years in prison for a fraud scheme involving a trust fund set up to compensate victims of the Fen-Phen diet drug. Tai, who practiced cardiology under the name A. Razzak Tai, M.D., and through Tri-County Doctors, Inc. and Medical Legal Consultants, Inc., was convicted in September of 2011 on six counts of mail fraud and seven counts of wire fraud.
American Home Products Corporation, later known as Wyeth, entered into a class action settlement, which established a Trust to pay benefits to persons injured by Fen-Phen with money contributed by Wyeth. Between 1997 and 2009, Tai devised a scheme to defraud the Seventh Amendment, the Trust and Wyeth, and to obtain money and property from them by means of false and fraudulent representations. He reviewed the echocardiograms of more than 1,100 patients who filed claims with the American Home Product Settlement Trust in Philadelphia and falsely certified that the patients’ tests showed that they had sustained heart damage. In reality, many of those claimants had not been harmed.
For at least one lawyer, Dr. Tai was paid a set fee of $100 for each echocardiogram that he read. In addition, Tai was to be compensated $1,500 for each claimant who qualified for benefits when that patient’s claim was paid. Dr. Tai wrote reports and signed certifications attesting that claimants had suffered heart damage on some occasions when he knew that the tests showed that they had not and, on other occasions, when he knew that he had not personally reviewed the test results to determine whether they had suffered heart damage. By misreporting measurements from the echocardiogram, the severity of a claimant’s medical condition could be exaggerated, thereby improperly qualifying the claimant for hundreds of thousands of dollars more in benefits. Dr. Tai certified that some patients qualified for the increased settlement benefits when he knew they did not.
At trial, Dr. Tai testified that his medical reports had been forged by the mass-tort lawyer who had hired him and who had paid him on a contingency fee basis. The jury returned a verdict of guilty on all 13 counts after deliberating for less than two hours.
In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered Tai to pay restitution in the amount of $4.5 million, a $15,000 fine, a special assessment of $1,300, and ordered three years of supervised release. Tai was immediately remanded.The case was investigated by the FBI and U.S. Postal Inspection Service and was prosecuted by Assistant United States Attorney Paul Shapiro.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Airplane Mechanic Admits Roles in Conspiracy to Falsify InspectionsRead the Press Release
PHILADELPHIA - Joel Stout, 32, of Elizabethtown, PA, pleaded guilty today to participating in a fraud conspiracy involving the unauthorized certification of inspections of aircraft at the Flying Tigers, Inc., a former airplane mechanical repair business in Marietta, PA. Stout’s father, Jay Stout, the president of Flying Tigers, Inc., and Howard Gunter, a retired FAA examiner, are also charged in the scheme which involved aircraft parts and inspections. Stout pleaded guilty to all seven counts of conspiracy and mail fraud charged.
Between October 2006 and October 2009, Joel Stout was employed as a Flying Tigers’ airplane mechanic. His inspection authority certification had expired on March 31, 2006. Flying Tigers performed annual inspections on aircraft, despite the absence of a certified mechanic with inspection authority. In order to conceal the absence of an IA, Flying Tigers, Joel Stout and his conspirators: did not fill out the aircraft and engine log books, leaving no written record of the inspections; forged the signature of a certified mechanic as having performed inspections; arranged
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525