Eastern District of Pennsylvania

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.

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

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, 215-861-8525

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, 215-861-8525

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.

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

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.

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

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

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, 215-861-8525

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.

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

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.

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

PHILADELPHIA - 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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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.

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

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

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, 215-861-8525

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.

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1An Indictment/ Information/Criminal Complaint is an accusation.  A defendant is presumed innocent unless and until proven guilty.

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

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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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 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.

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

PHILADELPHIA - 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, 215-861-8525

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, 215-861-8525

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, 215-861-8525

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 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.

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

COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

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.

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

PHILADELPHIA - 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. 

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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, 215-861-8525

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, 215-861-8525

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.

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

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 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

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

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, 215-861-8525

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, 215-861-8525

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.

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

PHILADELPHIA - 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, 215-861-8525

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.

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

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.

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

PHILADELPHIA - 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, OK

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

PHILADELPHIA - 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, 215-861-8525

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

PHILADELPHIA- Temple University has agreed to a $100,000 settlement to resolve allegations arising from overbilling for neurology services. The settlement agreement, which was reached on February 22, 2013, was announced by United States Attorney Zane David Memeger. The overbilling to Medicaid and Medicare programs arose from services rendered at Temple University's own facilities as well as services rendered at Frankford Hospital by Temple physicians. Temple University submitted claims for medical services that were improperly coded higher than the appropriate codes that were supported by the documentation for those services. Upon review of the documentation underlying these claims, Temple University agreed that the coding was not accurate and thus, that the government paid more than it should have for the services Temple University physicians provided. Under the parties' settlement agreement, Temple University will pay $100,000.00 to the United States.

“As we continue to seek to contain healthcare costs, the United States cannot tolerate overbilling to government healthcare programs,” said Memeger. “Unfortunately, this type of fraud and waste is a serious problem facing our healthcare system. To help ensure the continued viability of these critical healthcare programs for our citizens, we must be vigilant about preventing these financial drains on the system.”

This resolution was handled by Assistant U.S. Attorneys Veronica J. Finkelstein and Susan R. Becker.

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

Tanika Victoria Little, 34, of Philadelphia, Pennsylvania, was charged today by indictment with one count of illegally possessing a firearm with obliterated serial numbers, announced United States Attorney Zane David Memeger. The indictment alleges that on October 1, 2012, Little knowingly possessed a Glock model 19, 9mm pistol, serial #TN460US, with a forcibly removed serial number plate from the frame and scratched serial number on the slide of the firearm.

If convicted the defendant faces a maximum possible sentence of five years in prison, three years supervised release, a $250,000 fine, and a $100 special assessment.

The case was investigated by United States Secret Service, the Office of the Attorney General Commonwealth of Pennsylvania Gun Violence Task Force, and is being prosecuted by Assistant United States Attorney Anita Eve.

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

Maurice M. Connelly, 20, of Philadelphia, PA was charged today by Indictment with three counts of robbery which interferes with interstate commerce and three counts of using, carrying, and brandishing a firearm during a crime of violence, announced United States Attorney Zane David Memeger. These charges stem from Connelly’s involvement in three separate gun-point robberies of store robberies; one on June 24, 2012, June 25, 2012, and August 27, 2012.

If convicted the defendant faces a maximum possible sentence of life imprisonment, with a mandatory minimum 57-year sentence consecutive to all other sentences, a $1,500,000 fine, 5 years supervised release, and a $600 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 Jeffery W. Whitt.

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

Richard Haines, Jr., 59, of Lancaster, PA, was charged today by indictment with enticing a minor to engage in sexually explicit conduct so that he could take pictures of the conduct and with possession of child pornography, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible sentence of 130 years with a 15 year mandatory minimum; 5 years up to a lifetime of supervised release; $1,250,000 fine; restitution; forfeiture and $500 special assessment.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Michael L. Levy and Michelle Rotella.

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

PHILADELPHIA - Diane Williams, 51, of New York, NY, was charged today by indictment with conspiracy to commit bank fraud, bank fraud, and aggravated identity theft in connection with a scheme to use stolen bank cards to buy department store gift cards, announced United States Attorney Zane David Memeger.

According to the indictment, between January 2011 and February 2012, a co-conspirator, unknown to the grand jury, obtained stolen bank cards that had been issued by Bank of America and recruited Williams as a “shopper.” The role of the shopper was to use the victims’ identification information and stolen bank cards to buy gift cards and other merchandise. Williams, working with the co-conspirator, allegedly obtained the dates of birth, addresses, Social Security numbers, bank account numbers, and other means of identification of unknowing victims. She allegedly used this information and the stolen bank cards to fraudulently buy at least $243,029.78 worth of store gift cards and merchandise from Target, Walgreens, Walmart, and other stores in Pennsylvania, New York, and New Jersey. It is further alleged that Williams and the co-conspirator obtained and possessed bank cards that had been stolen from a Pitney-Bowes distribution center in Reading, Pennsylvania. The co-conspirator allegedly paid Williams for her work by giving her cash equal to a portion of the value of the gift cards or other merchandise she purchased in each store.

If convicted, Williams faces a total statutory maximum of 47 years in prison, five years of supervised release, a fine of $2.75 million, and a $700 special assessment.

The case was investigated by the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorney Laurie Magid.

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

PHILADELPHIA - Three Philadelphia men are charged with conspiracy and Hobbs Acts robbery in a superseding indictment filed yesterday, announced United States Attorney Zane David Memeger. Marcus Jones, 23, Jonte King, 22, and Maleek Brown, 22, are charged with planning and carrying out the March 14, 2012 armed robbery of the Peralta Grocery Store, located at 6935 Dicks Avenue, Philadelphia. According to the indictment, Brown acted as the getaway driver while Jones and King, brandishing firearms, robbed the store. The indictment further charges Jones and King with the March 24, 2012 armed robbery of the Golden Kingdom II Restaurant, located at 7100 Elmwood Avenue, Philadelphia. The indictment further charges Jones with the March 22, 2012 armed robbery of Aya’s Pizza, located at 7144 Elmwood Avenue, in Philadelphia.

If convicted of all charges, Jones faces a mandatory 57 years in prison up to life; King faces a mandatory 32 years in prison, up to life; Brown faces a mandatory seven years in prison up to life. Each defendant also faces possible fines, mandatory special assessments, and supervised release.

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.

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

PHILADELPHIA - Allie Speight, 58, of Philadelphia, was sentenced today to 160 months in prison for a loan fraud scheme that included aggravated identity theft, bank fraud, wire fraud, and money laundering. Speight pleaded guilty on April 16, 2012 to orchestrating a scheme to induce others to obtain loans as straw borrowers in return for receiving a percentage of the loans. Co-defendant Jerome Manker received funds from the loans for construction and rehabilitation work that he never performed.

Speight and co-defendant Maurice Thomas would act as brokers, scouting for depressed properties and enticing others to purchase the properties by obtaining loans that were far in excess of the properties' values. Speight and Thomas used a mortgage broker in Pittsburgh to prepare and submit loan applications that contained false W-2 statements and pay stubs, mostly from the fictitious company of "Allied Construction and Development, Corp.," owned by Allie Speight. The mortgage broker, John Polosky, charged elsewhere, received payments from the loan proceeds outside of the payments identified in the HUD-1 settlement sheets for the loans. Speight and Thomas received at least 10-percent of the loan proceeds that they helped to broker. In many cases, Speight and Thomas allegedly created forged letters from the straw borrowers that directed title companies to send the proceeds to Fred A. Johnson, Jr., charged elsewhere, an accountant based in West Philadelphia. Johnson then laundered the loan proceeds by disbursing the monies to various bank accounts according to Speight's and Thomas' directions. By misdirecting the funds to Johnson, the lenders were not aware that the loan monies were ultimately disbursed to individuals not entitled to receive the funds, including Speight, Thomas, and members of Speight's family. More than $3 million in loans were obtained during the course of the conspiracy.

Speight was also charged with a scheme to obtain loans from Wachovia Bank using straw borrowers. Co-defendants Jerome Manker and Andrea McCrea, a former Wachovia employee, submitted loan applications that contained false documents. Over the course of three loans, Manker and McCrae obtained from Wachovia over $300,000 in loan proceeds. In July 2007, after McCrea was no longer working for Wachoiva, McCrea bribed another Wachovia employee to push a third Manker loan using a straw borrower.

In addition to the prison term - 24 months of which is a mandatory term for the aggravated identity theft - U.S. District Court Judge Juan R. Sanchez ordered Speight to pay restitution in the amount of $2,037,700, joint and severally with his co-defendants who have already been sentenced.
Maurice Thomas was sentenced to 78 months in prison; Jerome Manker was sentenced to 51 months in prison; Andrea McCrea was sentenced to 12 months and one day in prison.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorneys Daniel Velez and Christopher Diviny.

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

PHILADELPHIA - Crystal Graham, 42, of Philadelphia, was charged today by indictment with filing false claims with the United States through federal income tax returns she prepared for clients, announced United States Attorney Zane David Memeger. According to the indictment, Graham created bogus wage statements and other false financial information which she placed on tax returns that she prepared for individuals for the purpose of obtaining tax refunds in the names of the filers. The refunds were based on the filer’s alleged entitlement to the First Time Home Buyer’s Credit and the Earned Income Tax Credit which are two tax credits that could result in a tax refund in 2008 even when the filer had little, if any, taxes withheld from income in that year.

According to the Indictment, Graham had her clients sign statements giving her the authority to deposit the clients’ refund checks into her savings account, or to have the refund checks placed on prepaid access devices. This gave Graham the ability to take a substantial portion of the fraudulent refunds before giving her clients the remainder.

If convicted, Graham faces a maximum possible statutory sentence of 55 years in prison, a fine of $2.75 million, a special assessment of $1,100, and three years of supervised release.

The case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Floyd J. Miller.

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

Edward Schaeffer, 29, and William Webb, 50, both of Philadelphia, were charged today by Indictment with conspiracy, interference with interstate commerce by robbery, and brandishing a firearm during a crime of violence, announced United States Attorney Zane David Memeger. The indictment alleges that the defendants conspired to target approximately 19 pharmacies in order to steal prescription pharmaceuticals, including oxycontin, oxycodone, and percocet.

If convicted, the defendants face a maximum sentence of life imprisonment, five years of supervised release, a fine of up to $1.25 million, and a $500 special assessment. They face a mandatory 32 years in prison consecutive to any other sentence.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, Abington Twp. Police Department and Glenolden Borough Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.

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

PHILADELPHIA - Barry Jones, 67, of Philadelphia, was sentenced today to 21 months in prison for devising and executing a scheme to defraud the City of Philadelphia out of more than $1.2 million. Jones, who was charged with one count of mail fraud, was the president of Mara Management Services Inc. (“Mara”) when he knowingly submitted false bills in connection with a series of computer services contracts that Mara had entered into with City agencies.

Between July 2004 and June 2008, Mara had contracts to provide computer programming, maintenance, and consulting services to multiple agencies, including the City’s revenue and water departments, and Community Behavioral Health (“CBH”), a charitable corporation contracted by the City to provide mental health and substance abuse services for Philadelphia County Medicaid recipients. Mara hired subcontractors to perform much of the work on these contracts, repeatedly overstating the number of hours that these subcontractors worked on the projects in order to get inflated monthly payments from the City’s agencies and CBH.

Jones also overstated the number of hours that he was working on the contracted-for projects and between 2006 and 2008, he even sought and received compensation from the City for work by a subcontractor who had stopped working on the projects in 2005. In total, Jones caused the City to make payments to Mara totaling more than $5.9 million between January 1, 2005 and June 30, 2008, in connection with Mara’s contracts with the Revenue Department, the Water Department, and CBH. Jones admitted that he kept approximately $2.7 million for himself, which greatly exceeded the amount he was entitled to receive from the City.

In addition to the prison term, U.S. District Court Judge Robert F. Kelly ordered Jones to pay restitution in the amount of $1.2 million and ordered three years of supervised release.

The case was investigated by the United States Postal Inspection Service and the City of Philadelphia’s Office of the Inspector General. It was prosecuted by Assistant United States Attorney Mark B. Dubnoff.

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

PHILADELPHIA - David Manilla, 51, of Worcester, PA, pleaded guilty today to possession of firearms by a convicted felon. Manilla was found to be in possession of multiple firearms and ammunition when police investigated the November 2010 shooting death of a hunter. Manilla, who fired the fatal shot, was prohibited from possessing any weapons because of his conviction on aggravated assault for the 1985 beating of another man.

U.S. District Court Judge Jan E. DuBois scheduled a sentencing hearing for June 27, 2013. Manilla faces a maximum statutory sentence of 10 years in prison, a fine of up to $250,000, three years of supervised release, and a $100 special assessment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Joseph LaBar.

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

Aaron Thomas, 47, of Philadelphia pleaded guilty today to six counts of bank robbery, announced United States Attorney Zane David Memeger. Thomas pleaded guilty to robbing six banks: (1) PNC Bank located on Old York Road in Abington on August 10, 2012; (2) TD Bank located on City Avenue in Philadelphia, on August 8, 2012; (3) TD Bank located on City Avenue in Philadelphia on May 17, 2011; (4) TD Bank located on Moreland Road in Abington, on September 17, 2009; (5) TD Bank located on Grant Avenue in Philadelphia, on September 17, 2009; and (6) TD Bank located on Old York Road in Abington on July 24, 2009. Thomas was apprehended by Abington Police following the PNC Bank robbery on August 10, 2012 after a vehicle and foot pursuit through the streets of Abington and Philadelphia which resulted in two police officers being injured and several vehicles damaged. Thomas has two prior convictions for bank robbery.

Sentencing is scheduled for June 12, 2013 before the Honorable Lawrence F. Stengel.

The case was investigated by Federal Bureau of Investigation, the Abington Township Police Department, and the Philadelphia Police Department, and is being 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, 215-861-8525

PHILADELPHIA - A second superseding indictment was unsealed today charging eleven people in a conspiracy that involved secreting packets of heroin inside the body, in order to smuggle the drugs into the United States from the Dominican Republic, drug charges and kidnapping. The indictment names defendants Higinio Castillo and Michael Nunez-Rodriguez as the alleged leaders of the Castillo Drug Smuggling Organization (CDSO). Members of the CDSO acted as couriers and recruited other individuals to act as couriers smuggling the drugs inside their bodies or in luggage. The CDSO paid the couriers’ travel expenses, helped them obtain U.S. Passports, and drove them to and from the U.S. airports. The indictment alleges that the CDSO operated in Philadelphia from November 2010 through March 2012 smuggling at least six kilograms of heroin into the United States during that time period.

Charged with Castillo and Nunez-Rodriguez are: Philip Osley, Yeltsin Genao, Kelvin Perez, Adrian DeJesus, Tommy Figueroa, Argenes Peralta, Carlos Ruben Cotto-Leon, Dilcy Herminia Almanzar, and Jiliana Urena, all of Philadelphia. The charges were announced today by United States Attorney Zane David Memeger and Special Agent-in-Charge John Kelleghan with U.S. Immigration and Customs Enforcement Homeland Security Investigations.

The CDSO allegedly enforced its hold on couriers and prevented theft of its product through threats and intimidation. The indictment alleges that on August 24, 2011, defendants Nunez-Rodriguez, Genao and Perez drove from Camden, NJ, to Philadelphia to locate “S.R.,”a person believed to have stolen the heroin that he was tasked with smuggling. The defendants drove S.R. to a house on 19th Street in Philadelphia where Castillo and DeJesus were waiting. The five conspirators interrogated S.R. by binding his hands and feet, making threats on his life, and discharging a firearm at close range. S.R. was eventually released with no serious physical injury. The indictment further alleges that on September 5,2011, defendants Nunez-Rodriguez and Figueroa went to the homes of courier “C.D.” after C.D. did not appear at the airport the previous night as expected. Figueroa pointed a gun at the person who answered the door and forced his way into the home to search for C.D. The defendants left after not finding C.D.

According to the indictment, the couriers traveled to and from the Dominican Republic on commercial flights that landed at Philadelphia International Airport, Newark Liberty International Airport in Newark, NJ, and JFK International Airport in Brooklyn, NY.

Defendant DeJesus was taken in to custody last night; the remaining defendants have been in federal custody.

If convicted of all charges, each defendant faces a mandatory minimum sentence of 10 years in prison up to life in prison, a mandatory minimum five years of supervised release up to a lifetime of supervised release, possible fines, and mandatory special assessments. Defendants convicted of firearm charges face an additional consecutive mandatory term of seven years in prison. The government is also seeking forfeiture of all assets derived from any criminal activity.

The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations with assistance from United States Customs and Border Protection, the Philadelphia Police Department, Pennsylvania State Police, and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Nancy Rue.

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