Eastern District of Pennsylvania
Press releases recorded for this federal judicial district.
Philadelphia Pill Mill Doctor Sentenced to Seven Years in PrisonRead the Press Release
PHILADELPHIA - Richard Minicozzi, M.D., 79, of Philadelphia, was sentenced today to seven years in prison for conspiracy to distribute controlled substances and 17 counts of distribution of controlled substances for running a pill mill out of his office located at 731 Morris Street in Philadelphia. Minicozzi was distributing hydrocodone (“Vicodin”), and alprazolam (“Xanax”) and was selling prescriptions for oxycodone. Minicozzi ordered the drugs from a supplier and had them shipped to his office in small boxes which he then sold to cash-paying customers who had no legitimate need for the drugs and without a physical examination. Minicozzi and his office assistant, Joan Israel, who previously pleaded guilty, created phony medical records for his drug-buying customers.
In addition to the prison term, U.S. District Court Judge J. Curtis Joyner also ordered three years supervised release, a $40,000 fine, and a $1,800 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement
Administration, and the Philadelphia Police Department and was prosecuted by Assistant United
States Attorney Mary Kay Costello.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Jersey Businessman Indicted on Tax ChargesRead the Press Release
PHILADELPHIA - Mark Olkowski, 62, of North Wildwood, NJ, a business partner in K & O Sports, was indicted today on tax charges, announced United States Attorney Zane David Memeger. K&O sports, on Moyamensing Avenue, is a South Philadelphia distributor of t-shirts and other clothing items for labor unions, municipalities, and political candidates.
According to the indictment, Olkowski under-reported, by approximately $250,000, K & O’s gross partnership receipts to the Internal Revenue Service on K & O’s partnership tax returns from 2006 through 2009. Olkowski also allegedly failed to report all of his "flow through" partnership income on his personal income tax returns during that same time period. It is further alleged that Olkowski failed to report as income the value of personal expenses he paid with corporate funds, and failed to report as income significant sums of cash received by K & O but which he retained and did not deposit to K & O business accounts.
Olkowski is charged with filing four false personal income tax returns and four false partnership tax returns for his business during 2006 through 2009. Olkowski is also charged with 15 counts of wire fraud concerning approximately $25,000 in allegedly improper unemployment compensation benefits he received while he held an ownership interest in K & O Sports and was receiving income from K & O.If convicted, Olkowski faces a maximum possible sentence of over 100 years in prison, five years supervised release, a $5.75 million fine, and a $2,300 assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul L. Gray and John M. Gallagher.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Philadelphia Police Officer Sentenced for Role in Steroid Distribution CaseRead the Press Release
PHILADELPHIA - Joseph McIntyre, 38, of Philadelphia, was sentenced today to six months incarceration for his role in a conspiracy to illegally distribute anabolic steroids. McIntyre, a former Philadelphia Police Officer, was charged in an indictment that named 14 others including fellow officers Keith Gidelson and George Sambuca. McIntyre pleaded guilty, August 24, 2011, to conspiracy, possession with intent to distribute anabolic steroids, and possession with intent to distribute anabolic steroids.
The indictment charged Gidelson with operating the anabolic steroid distribution organization in Philadelphia and throughout the United States, acquiring steroids from foreign suppliers and then selling the steroids to his co-conspirators who distributed to their own customers. McIntyre bought the steroids from Gidelson for his own use and to distribute to others. Numerous intercepted calls and text messages between the men demonstrate that McIntyre discussed with Gidelson the acquisition of steroids from Gidelson’s suppliers; the acquisition from Gidelson of specific types of anabolic steroids for McIntyre’s customers; and the use and effects of the steroids Gidelson and McIntyre were distributing. In many of these intercepted calls and text messages, McIntyre discussed acquiring steroids for people who worked at a local night club.
In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered three years of supervised release, a $300 special assessment, and ordered McIntyre to pay a fine of $10,000.
The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Philadelphia Police Department, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney David L. Axelrod.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with Bank RobberyRead the Press Release
Keith McCracken, 34, of Philadelphia, was charged today by Indictment with one count of bank robbery announced United States Attorney Zane David Memeger. In particular, the indictment charges the defendant with having robbed the M&T Bank, 7121 Frankford Avenue, Philadelphia, on December 31, 2012.
If convicted, McCracken faces a maximum sentence of 20 years imprisonment, a three-year term of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Man Who Threatened to Rob Bank with Explosives SentencedRead the Press Release
PHILADELPHIA - Dragos Ungurean, 30, of Wyomissing, PA, was sentenced today to 63 months in prison for attempting to rob the Wyomissing branch of M & T Bank. He pleaded guilty to the charge on June 27, 2012. On March 19, 2012, Ungurean walked into the bank, at 800 Penn Avenue in Wyomissing, threatened to blow up a bomb or explosive device attached to his person, and demanded money. Ungurean was subdued and handcuffed after a scuffle with an on-duty plain clothes investigator, George R. Bell, Jr., from the Wyomissing Police Department. The officer was utilizing the bank as a customer at the time of the attempted robbery. The bomb or explosive device was fake.
In addition to the prison term, U.S. District Court Judge Lawrence F. Stengel ordered three years of supervised release and a $1,000 fine. The judge also referred to the actions of investigator Bell as “heroic” for subduing the defendant on his own.
This case was investigated by the Federal Bureau of Investigation, Allentown, PA Resident Agency, the Wyomissing, Berks County Police Department, and the Berks County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Ewald Zittlau.
UNITED STATES ATTORNEY'S OFFICE Contact: PATTY HARTMAN
EASTERN DISTRICT, PENNSYLVANIA Media Contact
Suite 1250, 615 Chestnut Street 215-861-8525
Philadelphia, PA 19106COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT HTTP://www.justice.gov/usao/pae
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Judge Sentences Former Bank Manager to 90 Months for Scheme That Closed Local Federal Credit UnionRead the Press Release
PHILADELPHIA - Ignacio Morales, a/k/a “Nacho,” 49, of Philadelphia, was sentenced today to 90 months in prison for conspiracy to defraud the government in a case that led to the closure of the Borinquen Federal Credit Union (BFCU). Morales used his position as the bank’s Manager to misuse and embezzle more than $2.3 million of BFCU funds through a variety of schemes, and between 2006 and June 2011, Morales further enriched himself by cashing hundreds of fraudulent U.S. tax refund checks through BFCU, keeping 20% of each check for himself as commission. Morales pleaded guilty September 4, 2012.
BFCU was a federal credit union in Philadelphia. Between 2008 and 2009, Morales embezzled $600,000 from BFCU to purchase real estate, and during the period of September through December 2009, he took $560,000 from BFCU to attempt to purchase 15 kilograms of cocaine. In September 2008, he failed to deposit $700,000 into an account of a BFCU member, and instead used the money for his own purposes. Morales also allowed a member of the BFCU board of directors to withdraw money from a BFCU account despite the absence of funds in the account resulting in a deficit of approximately $500,000. Morales then intentionally altered bank records and other reports provided to the National Credit Union Administration and their auditors in order to conceal his misuse of BFCU funds. In June 2011, the National Credit Union Administration took over the operation of the BFCU but closed the credit union within a month and liquidated its assets.
In addition to the conspiracy to defraud the government with respect to claims, Morales pleaded guilty to misapplication and embezzlement, false reports on federal credit institution entries, engaging in monetary transaction in property derived from specified unlawful activity, filing false federal income tax returns, and attempted possession with intent to distribute more than five kilograms of cocaine.
In addition to the prison term, U.S. District Court Judge R. Barclay Surrick ordered restitution to the National Credit Union Administration $2.3 million, restitution to the IRS $7,311,747.50, five years of supervised release, and a special assessment of $800.This case was investigated by the United States Postal Inspection Service, the Internal Revenue Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Arlene D. Fisk.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Alleges Social Security ScamRead the Press Release
Raylene Wilson, 43, of Salisbury, Maryland, was charged today by Indictment with one count of identity theft and one count of using a false Social Security number, announced United States Attorney Zane David Memeger.
If convicted, Wilson faces a maximum possible sentence of 20 years in prison; a $500,000 fine; three years of supervised release; and a $200 special assessment.
The case was investigated by the United States Postal Inspection Service, the Social Security Administration’s Office of Inspector General, and Westtown-East Goshen Police Department and is being prosecuted by Assistant United States Attorney Vineet Gauri.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Federal Charges Allege Captors Held Adults with Disabilities in Subhuman Conditions to Carry Out Social Security FraudRead the Press Release
First Hate Crimes Case Of Its Kind In The Country Also Charges Murder
PHILADELPHIA - Linda Weston, her daughter and three co-defendants are charged in a 196-count indictment, unsealed today, with racketeering conspiracy, murder in aid of racketeering, hate crimes, sex trafficking, kidnapping, forced human labor, theft, fraud, and other violent crimes. The indictment alleges that Weston and her associates carried out a racketeering enterprise that targeted victims with mental disabilities and as part of a scheme to steal disability payments from the victims and the Social Security system. As part of the scheme, Weston persuaded each victim to make her the designated recipient of their Social Security disability payments in exchange for the promise of a comfortable place to live. Once appointed as the designated recipient of disability payments, Weston, aided by the co-defendants, subjected the victims to subhuman conditions of captivity.
According to the indictment, the defendants beat the victims, kept them captive in locked closets, basements and attics, deprived them of adequate food and medical care, and moved them between Pennsylvania, Texas, Virginia, and Florida in order to further the scheme and evade law enforcement. According to the indictment, some of the victims endured this abuse for years, until October 15, 2011, when Philadelphia Police officers rescued them from the sub-basement of an apartment building in the city’s Tacony section. The enterprise allegedly victimized six disabled adults and four children.
Today’s indictment was announced by United States Attorney Zane David Memeger, Assistant Attorney General for the Civil Rights Division Thomas E. Perez, FBI Acting Special Agent-in-Charge John Brosnan, Special Agent-in-Charge Michael McGill with the Social Security Administration’s Office of Inspector General, and Philadelphia Police Commissioner Charles Ramsey.Along with Weston and her daughter Jean McIntosh, the indictment charges Weston’s paramour, Gregory Thomas, Sr., Eddie Wright, and Nicklaus Woodard. According to the indictment, the defendants used isolation, intimidation, threats of violence and violence to control the victims and each defendant had a role in the racketeering enterprise:
● Linda Weston was the leader and organizer of the enterprise that operated from at least as early as the Fall of 2001 through October of 2011. She enticed all of the adults into coming to live with the enterprise and controlled all aspects of their captivity.
● Jean McIntosh was also a leader of the enterprise who acted as her mother’s right hand woman. She assisted in confining, controlling, disciplining, housing, and transporting the victims.
● Gregory Thomas, Sr. assisted in obtaining, confining, controlling, housing, and transporting the victims. He installed locks on the doors and windows of every residence where the victims were kept to prevent them from escaping.
● Eddie Wright assisted in confining, controlling, housing, and transporting the victims.
● Nicklaus Woodard assisted in confining, controlling and disciplining the victims.
The conduct of each defendant is set forth in the overt act section of the indictment and generally describes criminal activity from the Fall of 2001 to October 15, 2011 when the Philadelphia Police rescued the victims from the sub-basement of the apartment building. The indictment charges that in confining the victims, the defendants practiced what is described as “abusive control and confinement techniques” in which the defendants:
a. confined the victims to locked basements, rooms, closets, attics, and apartments;
b. sedated the victims by putting drugs in the food and drink served to them by Weston and others, at Weston’s direction;
c. subdued the victims by serving them a low calorie, high starch diet consisting exclusively of Ramen noodles, beans and stew and generally limited them to, at most, one meal a day;
d. punished the victims by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats, and hammers or other objects, including the butt of a pistol, when the victims tried to escape, stole food, or otherwise protested their confinement and treatment.The indictment alleges that Weston’s use of these techniques caused the deaths of two of the victims. For example, in 2002, Weston met M.L. and lured her to come live with the family. M.L. was forced to cook, clean, wash clothes, and babysit without compensation. M.L. was beaten when she tried to escape or when she begged for food and was not provided with any medical attention for her injuries. When Weston moved the enterprise to Virginia in 2008, M.L. died of bacterial meningitis and starvation. Weston allegedly ordered other members of the household to move M.L.’s body to a bedroom and stage the scene before calling law enforcement and the next day the family left for Philadelphia. In addition, in April 2005, Weston and Thomas allegedly targeted victim D.S. who they saw standing on a street corner. They brought D.S. to the WF home at 2211 Glenview Avenue in Philadelphia. D.S. was kept in the basement with the other victims, fed a substandard diet, and not allowed to use the bathroom. On June 26, 2005, D.S. was found dead in the basement. Weston allegedly ordered other members of the household to move D.S.’s body to a bedroom and stage an accidental overdose before calling law enforcement.
The indictment also alleges that Weston forced two female captives to engaged in prostitution while the enterprise operated in Killeen, Texas and West Palm Beach, Florida.
The defendants are charged in four counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. The Shepard-Byrd Act criminalizes certain acts of physical violence causing bodily injury motivated by any person's actual or perceived disability, race, color, national origin, religion, sexual orientation, gender, or gender identity.
“The physically and mentally disabled are among the most vulnerable in our society. They deserve to be treated with respect and compassion, not violence,” said Memeger. “Linda Weston and others, in fact, decided to prey on these victims specifically because of their physical and mental challenges and they did so through violence, fear and intimidation for the purpose of stealing social security payments that were meant for the victims’ long-term care. “Shocking” does not begin to describe the criminal allegations in this case where the victims were tied-up and confined like zoo animals and treated like property akin to slaves. Hopefully, today’s announcement of a 196-count indictment will help begin the process of restoring the victims’ faith in humanity.”
“The allegations in this indictment describe a scheme to physically abuse and subjugate persons with disabilities for purposes of de-humanizing them, stealing their money, and unlawfully obtaining their labor,” said Assistant Attorney General Thomas E. Perez of the Department of Justice’s Civil Rights Division. “The laws against violently assaulting individuals because of their disabilities and those that prohibit human trafficking were designed to combat conduct aimed at vulnerable members of society, such as the alleged victims in this case.”
“Today’s Indictment represents just one more step towards closure and healing, not only for the victims of this heinous hate crime, but for the community as a whole,” said Special Agent-in-Charge John Brosnan. “The FBI, along with the United States Attorney’s Office, the Philadelphia Police Department and the Social Security Administration Office of Inspector General remain committed to protecting each and every citizen’s civil rights, and will aggressively investigate any violation of those rights, bringing the perpetrators to justice.”“The Office of the Inspector General investigates many cases involving the misuse of Social Security benefits by representative payees, but thankfully, we've never seen a case involving this level of cruelty and inhumanity to our most vulnerable beneficiaries,” said Special Agent-in-Charge Michael McGill. “We're pleased to see justice served, and grateful to the U.S. Attorney and our investigative partners for their unflagging support in this investigation.”
If convicted of all charges, each of the defendants faces a statutory maximum sentence of life in prison with advisory guideline sentencing ranges that involve substantial terms of imprisonment. Weston potentially faces the death penalty and also faces mandatory restitution of approximately $212,000 and special assessments.
The case was investigated by the Federal Bureau of Investigation, the Social Security Administration Office of Inspector General, the Internal Revenue Service Criminal Investigation, the Philadelphia Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, West Palm Beach Field Office. It is being prosecuted by Assistant United States Attorneys Richard P. Barrett, Faithe Moore Taylor, and Department of Justice Civil Rights Division Trial Attorney Betsy Biffl. The case was originally charged by the Philadelphia District Attorney’s Office.
Indictment.pdf | Charges Chart.pdf | Defendant Chart.pdf
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Additional Charges Filed Against Charter School Founder and Co-defendantsRead the Press Release
PHILADELPHIA – A superseding indictment was filed today against Dorothy June Brown, 75, of Haverford, Pennsylvania, charging her and with two additional counts of wire fraud and one additional count of obstruction of justice in connection with schemes to defraud three charter schools of more than $6.7 million. Charged with Brown in the 67-count superseding indictment are Joan Woods Chalker, 74, of Springfield, Pennsylvania, Michael A. Slade, Jr., 31, of Philadelphia, Pennsylvania, Courteney L. Knight, 65, of King of Prussia, Pennsylvania, and Anthony Smoot, 50, of New Castle, Delaware.
All five defendants were previously named in a 62-count indictment, filed on July 24, 2012. The original indictment alleges that Brown used her private management companies, Cynwyd Group and AcademicQuest, to defraud the Agora Cyber Charter School (“Agora”) and the Planet Abacus Charter School (“Planet Abacus”) soon after she founded the schools in 2005 and 2007, respectively. Brown is also charged with defrauding the Laboratory Charter School of Communication and Languages (“Laboratory”), a school she founded in 1997, by using Laboratory funds to pay the wages of an employee at one of Brown’s private management companies.
The new indictment includes an additional wire fraud scheme alleging that Brown and Chalker caused Laboratory to pay them approximately $214,095 in compensation that they were not entitled to receive. It further alleges that Brown and Chalker obstructed justice by fabricating Laboratory records and policies to make it falsely appear as if they were owed the payments from Laboratory due to unused vacation and sick time. The superseding indictment also includes new charges that Slade and Knight obstructed justice by fabricating board resolutions of Laboratory and another school, the Ad Prima Charter School.
Each of the wire fraud and obstruction of justice counts carry a maximum possible sentence of 20 years in prison. If convicted, the defendants face substantial terms of imprisonment and significant fines and other financial penalties.
This case was investigated by the United States Department of Education - Office of Inspector General and the Federal Bureau of Investigation. The Philadelphia Controller's Office provided assistance. It is being prosecuted by Assistant United States Attorney Anthony Kyriakakis.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, 215-861-8525Police Officer Charged with His Brother in Alleged Tax FraudRead the Press Release
PHILADELPHIA - Brothers Jose Tirado, 38, and Victor Tirado, 36, both of Philadelphia, were charged by indictment, unsealed today, in a tax fraud conspiracy, announced United States Attorney Zane David Memeger and IRS Special Agent-in-Charge Akeia Conner. Jose Tirado, an officer in the 25th District of the Philadelphia Police Department, was arrested this morning.
According to the indictment, between January 2008 and March 2010, the two men obtained names, dates of birth, and Social Security Numbers, of individuals, including children. In some cases, the brothers allegedly recruited the individuals to provide the identifying information. With that information, Jose Tirado allegedly prepared federal individual income tax returns that falsely and fraudulently inflated earned income amounts in order to obtain tax refunds that included Earned Income Tax Credits. In some cases, he listed false dependents on the tax returns. He then allegedly filed the false income tax returns with the IRS in electronic form using the TurboTax® computer software program and directed the IRS to deposit refunds generated from the false income tax returns to one of two Bank of America Bank Accounts. Jose Tirado and other individuals, known and unknown to the grand jury, received tax refunds issued by the IRS that were generated because of the allegedly false tax returns that were submitted. In total, $507,974 in false claims were submitted.
Each of the brothers is charged with conspiracy to defraud the government with respect to claims; Jose Tirado is additionally charged with 14 counts of false claims; Victor Tirado is charged with three counts of false claims.If convicted of all counts, Jose Tirado faces a maximum statutory sentence of 80 years in prison, mandatory restitution of $407,787.94, up to five years of supervised release, a fine of up to $3.75 million, and a $1,500 special assessment; Victor Tirado faces a maximum statutory sentence of 25 years in prison, mandatory restitution of $407,787.94, up to five years of supervised release, a fine of up to $1,000 fine, and a $400 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations, the Federal Bureau of Investigation, and the Philadelphia Police Department of Internal Affairs. It is being prosecuted by Ashley Lunkenheimer.
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, 215-861-8525North Wales Man Sentenced for Illegally Exporting GoodsRead the Press Release
PHILADELPHIA - Timothy Gormley, 52, of North Wales, PA, was sentenced today to 42 months in prison for five counts of violating the International Emergency Economic Powers Act (IEEPA). Gormley was employed by Amplifier Research, in Souderton, Pennsylvania, a manufacturer and supplier of microwave amplifiers with both domestic and foreign customers. On November 30, 2011, the Department of Commerce (DOC), Office of Export Enforcement, received a voluntary self-disclosure from Amplifier Research. Many of their products are classified under an Export Control Classification Number and require a license for export to most destinations outside of Europe. These amplifiers are controlled for National Security reasons, and have application in military systems which include radar jamming, weapons guidance systems, and other uses. Amplifier Research became aware that Gormley had committed numerous violations of government regulations, between June 7, 2006 and June 28, 2011.
Gormley pleaded guilty on October 17, 2012, admitting that he had: altered invoices and shipping documents to conceal the correct classification of amplifiers to be exported so that they would be shipped without the required licenses; listed false license numbers on export paperwork for defense article shipments; and lied to fellow employees about the status and existence of export licenses. Gormley's actions resulted in at least 50 unlicensed exports of national security sensitive items to destinations including China, India, Hong Kong, Taiwan, Thailand, Russia, Mexico, and other countries. When Gormley admitted to the conduct, he explained it by saying he was "too busy" to obtain the licenses. Gormley claimed he was overwhelmed at work and that was his only excuse.
In handing down her sentence, U.S. District Court Judge Gene E.K. Pratter cited the risk to the community in allowing National Security goods to be exported without proper licenses and the need for deterrence. In addition to the prison term, Judge Pratter ordered three years of supervised release and fined Gormley $1,000.
The case was investigated by the Department of Commerce and was prosecuted by Assistant United States Attorney Nancy Winter.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Chadds Ford Man Pleads Guilty to Copyright InfringementRead the Press Release
PHILADELPHIA - Michael Moore, 45, of Chadds Ford, PA, pleaded guilty today to infringing copyrighted work related to broadcasts of hockey games. Moore admitted that he copied and sold, over the internet, copyrighted recordings of hockey games, parts of hockey games, and other hockey-related material between May 15, 2006 and November 10, 2006. He also admitted to copyright infringement between 2007 and 2010 as well.
Moore operated the website WWW.HDHOCKEY.TV which offered DVDs containing recordings of copyrighted television broadcasts of hockey games, and other copyrighted works, from the National Hockey League and other professional hockey leagues, for $19.99 plus shipping. Moore also operated WWW.BROADSTREETBULLY.COM. For $9.95 per month, subscribers to the website could download an unlimited number of video clips of copyrighted television broadcasts of hockey games, and other copyrighted works such as team and player profiles, from the NHL and other professional hockey leagues. Neither site had the permission of the NHL or any other professional hockey league to reproduce or distribute these recordings. Among the products he sold was an Olympic Games hockey match. When FBI agents searched Moore’s house in 2008, they seized more than 2,000 VHS tapes of copyrighted broadcasts of hockey games and hockey-related material, and commercial-grade equipment for copying the contents of VHS tapes to DVDs. Also seized was equipment to record satellite broadcasts, and equipment to copy multiple DVDs at a time.
U.S. District Court Judge Berle M. Schiller scheduled sentencing for April 15, 2013. Moore faces a maximum statutory sentence of five years in prison, a fine of up to $250,000. He has also agreed to forfeit $155,612 in proceeds as well as certain seized items.
The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Albert S. Glenn and Trial Attorney Evan Williams of the Criminal Division's Computer Crimes and Intellectual Property Section, United States Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Nigerian Man Pleads Guilty to Wire Fraud in Craigslist ScamRead the Press Release
Adebowale Ayodeji Owoaje, 31, of Nigeria, pleaded guilty today to 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.
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.
U.S. District Court Judge Mary A. McLaughlin scheduled a sentencing hearing for April 15, 2013. Owoaje faces a maximum possible sentence of 80 years in prison, a three year period of supervised release, a fine of up to $1 million, and a $400 special assessment.The case was investigated by Homeland Security Investigations and is being 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, 215-861-8525Philadelphia Man Pleads Guilty to Airport HoaxRead the Press Release
PHILADELPHIA - Kenneth W. Smith, Jr., 26, of Philadelphia, PA, pleaded guilty in federal court today in connection with a hoax called in to authorities, on September 6, 2012, about explosives on an aircraft. Smith was charged with and pleaded guilty to malicious false information about an explosive, and false information and hoaxes. U.S. District Court Judge Gene E.K. Pratter scheduled a sentencing hearing for April 16, 2013. On September 6, 2012, Smith placed a telephone call to the Philadelphia Airport Police reporting that someone had allegedly carried an explosive substance onto an aircraft bound for Dallas-Ft. Worth Airport when Smith knew the statement was false. The report resulted in the flight being turned around and brought back to Philadelphia. Smith admitted he told police that an individual had carried liquid explosives onto the plane and that he targeted that individual in order to “avenge” a female.
Smith faces a maximum possible sentence of 15 years in prison, a fine of up to $500,000, special assessments, supervised release and restitution for the costs associated with the crimes. He has agreed to write a letter of apology to every passenger on board the flight, to reimburse the costs of emergency response, and to pay restitution to his victimsThe case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Philadelphia Police Department, the Transportation Security Administration, and the U.S. Department of Transportation Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Allentown Couple Charged in Straw Purchase SchemeRead the Press Release
PHILADELPHIA - Tracy Martin, 48, and Marie Hinds, 41, both of Allentown, PA were charged today by indictment with orchestrating the straw purchase of two guns, announced United States Attorney Zane David Memeger. According to the indictment, Martin directed Hinds to purchase a 9mm pistol and a .32 caliber pistol for him, in January 2011, from an Army Navy store in Whitehall, PA. The couple allegedly lied on the federal firearms form by indicating that the guns were for Hinds. The indictment further alleges that Martin lied to an agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives by claiming the guns were secured in a safe in his home when he knew they were not.
If convicted, Martin faces a maximum possible sentence of 15 years in prison, three years of supervised release, a fine of up to $750,000; Hinds faces a maximum possible sentence of 10 years in prison, three years of supervised release, and a fine of up to $500,000.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Joseph LaBar.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Indicted on Drug ChargesRead the Press Release
Michael Green, 30, of Philadelphia, PA, was charged by an indictment unsealed today with one count of conspiracy to distribute 280 grams or more of cocaine base (“crack”) and one count of conspiracy to distribute marijuana, announced United States Attorney Zane David Memeger. According to the indictment, Mr. Green was the leader of a drug trafficking organization that conspired to distribute approximately five kilograms of a mixture and substance containing crack in northwest Philadelphia and Montgomery County from at least March 2006 until at least July 8, 2009. Mr. Green also allegedly conspired to distribute marijuana between March 2009 and November 2009.
If convicted of both charges, the defendant faces a maximum possible sentence of life imprisonment with a mandatory minimum of 10 years imprisonment, five years to lifetime supervised release, a $10,250,000 fine, and a $200 special assessment.The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Kishan Nair.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with Illegal Reentry After DeportationRead the Press Release
Johnny Reyes-Agramonte, a/k/a “Johnny Reyes-Castillo,” a/k/a “Santo Johnny Reyes-Castillo,” a/k/a “Juan Sierra,” 44, 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 December 6, 2012, Reyes-Castillo, 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 April 10, 1997, June 16, 1999, and May 11, 2004.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Corporate Employee Sentenced for Embezzlement and Tax FraudRead the Press Release
PHILADELPHIA - Sheila Kaye Jameson, 55, of Blandon, PA, was sentenced today to 48 months in prison for embezzlement and tax fraud. In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered restitution in the amount of $1,864,024 to EnerSys and its insurer, and taxes owed to the IRS in the amount of $256,447 (excluding penalties and interest), and three years of supervised release three years. She must report to the Bureau of Prisons on March 11, 2013.
Jameson was a Logistics Analyst for EnerSys Corporation in Reading, Pennsylania, when she embezzled approximately $1.8 million dollars from EnerSys Corporation by using a shell corporation, Aries Consulting Group. She created Aries Consulting for the purpose of sending bogus invoices to EnerSys, requesting payment which Aries Consulting Group was not entitled to receive. Jameson also failed to include any of the embezzled income on federal income tax returns that she filed with the Internal Revenue Service. She pleaded guilty to mail fraud and filing false tax returns.
The case was investigated by the FBI and the Internal Revenue Service Criminal Investigation 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, 215-861-8525Philadelphia Man Sentenced to 13 Years for Three Armed RobberiesRead the Press Release
PHILADELPHIA - Jackson Doggette, 22, of Philadelphia, was sentenced today to 13 years in prison for three armed robberies committed between August and October 2011. Doggette and co-defendant Marvin Gibson, 39, also of Philadelphia, brandished a handgun while robbing the Metro PCS store, located at 3613 Germantown Avenue, on August 24, 2011 of approximately $50; the Metro PCS store, located at 3154 N. Broad Street, on September 9, 2011, of approximately $850; and the Rite Aid store, located at 810 S. Broad Street, on October 18, 2011 of approximately $2230. Both defendants pleaded guilty to Hobbs Act Robbery and firearms charges. Doggette pleaded guilty June 25, 2012. Gibson was sentenced on October 1, 2012, to 15 years in prison.
In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered Doggette to pay restitution in the amount of $3,130, a $500 special assessment and ordered five years of supervised release.
This case was investigated by the Federal Bureau of Investigation, Philadelphia Police Department, and the Philadelphia District Attorney's Office. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Police Detective and His Wife Sentenced in Drug ConspiracyRead the Press Release
Keith Gidelson, 36, a former Philadelphia Police Detective, was sentenced today to 4 years in prison for operating anabolic steroid and human growth hormone (“HGH”) distribution organization in Philadelphia and throughout the United States. His wife, Kirsten Gidelson, was sentenced to three years probation, with the first year on home confinement, and a $100 special assessment, for her participation in the conspiracy. Gidelson acquired steroids from foreign suppliers and then sold these steroids to his co-conspirators who distributed the drugs to their own customers. He pleaded guilty October 9, 2012, to conspiracy to distribute anabolic steroids and 16 counts of possession with intent to distribute anabolic steroids. In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered Gidelson to pay a $25,000 fine and ordered three years of supervised release.
Gidelson received monthly shipments of anabolic steroids and HGH from suppliers in Europe and China. One supplier shipped the steroids to California where defendant Robert Walters re-packaged them for shipment to Gidelson. Another supplier shipped orders of steroids to a mailbox that Gidelson had rented at a UPS store. Gidelson and his wife stored and packaged steroids and HGH at their home in Philadelphia. The couple met with drug customers, including defendants Michael Barclay, Keith Ebner, Jeffrey Filoon, Christian Kowalko, Joel Levin, Luke Lors, Joseph McIntyre, George Sambuca, William Schiavo, and Vaidotas Verikas, at their home and at Philadelphia-area fitness clubs, to distribute anabolic steroids and HGH in various quantities.
Gidelson also distributed steroids to customers throughout the United States that he met through online weightlifting chat rooms on websites including: Steroids.com; Inject.com; Isteroids.com; and Bodybuilding.com. Gidelson also allegedly used the electronic mail service yahoo.com, and the encrypted email services hushmail.com and safemail.com to place orders and communicate with his foreign suppliers.The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Philadelphia Police Department, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney David L. Axelrod.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Company and Its President Agree to $5 Million Settlement over Billing for Linguists Sent into War ZonesRead the Press Release
PHILADELPHIA - Worldwide Language Resources, Inc., and its president, Lawrence P. Costa, have agreed to pay $5 million to resolve civil liabilities under the False Claims Act for allegedly providing untested linguists to the United States Department of Defense operating in overseas combat zones and for other military venues. This settlement, announced by U.S. Attorney Zane David Memeger, also resolves allegations that Worldwide which, at the time, was operating in Maine, billed the government for linguist services that were not provided.
The untested linguists were provided under two contracts. A 1999 Contract was a “requirements” contract that obligated the government to fill all of its requirements for linguist services exclusively from Worldwide; the government could not acquire such services from any other entity or person. The 2003 Contract with Worldwide provided for a lower price than that previously provided under the GSA Contract for certain services, and was designed to reduce the costs to the government of acquiring those services. Both the 1999 and 2003 Worldwide contracts included qualification requirements for the proficiency of the linguists supplied by Worldwide pursuant to the delivery orders, including requirements that each linguist take certain proficiency tests and achieve certain test scores in order to be acceptable to work under the contracts.
The government alleges that Worldwide knowingly supplied untested linguists under the
1999 Contract and the 2003 Contract until March 2004, despite its knowledge that both contracts included specific testing requirements. The government alleges that: Worldwide failed to test its linguists; failed to notify any government employee that it was not testing its linguists; continued to supply untested linguists to the government to serve in overseas combat areas and other military venues; and continued to invoice the government for the services of these untested linguists and certify its compliance with the contractual testing requirements. Worldwide did not know if its untested linguists were adequate to the assigned tasks.Without the testing, the government was asked to pay for linguists who were untested in the subject language and/or English who may have had inadequate or no proficiency, potentially obligating the government to pay for a useless “service,” or services which were insufficient to meet the needs of military personnel.
In addition, the government alleges that Worldwide: billed the government for linguist
services that were not provided at all; claimed payment for linguists’ services for more than the number of days in the billing period; invoiced the government for services of a linguist who was incapacitated and unable to provide services; invoiced additional man-days that were not worked by any linguists; and invoiced for the services of one linguist twice under two separate delivery orders for work performed only once.The United States’ investigation included whistleblower allegations brought by former Worldwide employees Brian Remmey and Khalil Nouri, who filed lawsuits on behalf of the United States under the whistleblower provision of the False Claims Act. Remmey and Nouri will share $925,000 from the settlement amount.
Assistant United States Attorneys Susan Dein Bricklin and Viveca D. Parker handled the civil investigation and settlement negotiations. Auditor Dawn Wiggins of the United States Attorney’s Office for the Eastern District of Pennsylvania contributed significantly to both the investigation and negotiation of the government’s claims. The Department of Defense Criminal Investigative Service and Contract Audit Agency, and the Naval Criminal Investigative Service also participated in the investigation.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bucks County Man Sentenced for Illegal Possession of ExplosivesRead the Press Release
PHILADELPHIA - John Grzyminski, 50, of Warrington, PA, was sentenced today to 30 months in prison for the illegal possession of an unregistered explosive device. On May 9, 2012, the defendant’s mother called the Warrington Township Police Department to report that she felt threatened by the defendant. Police arrived and, after the officers left, the defendant’s mother found a pipe bomb on her kitchen counter. The Warrington Police Department was again dispatched to the residence along with the Philadelphia Police Department Bomb Disposal Unit (PPDBDU) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Bomb technicians found two additional pipe bombs in an upstairs bedroom and bomb making materials in the garage. Grzyminski was arrested after being stopped by the Solebury Township Police on May 10, 2012. He told police that he had made the bombs for hunting bears, and that he also liked to throw them into lakes for entertainment. The defendant stated that he had manufactured the bombs over a 12 year period. He pleaded guilty to the charge on September 17, 2012.
In addition to the prison term, U.S. District Court Judge Stewart Dalzell ordered three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Judy G. Smith.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Romanian Charged with Internet Car Sale ScamRead the Press Release
Nikolae Savva, 36, of Oradea, Romania, was charged on September 3, 2013 by Information with conspiracy to commit wire fraud and possession of a fraudulent passport, announced United States Attorney Zane David Memeger. Savva conspired with others to defraud persons who sought to purchase used vehicles on the internet. Savva used false passports supplied by other conspirators to open bank accounts in the United States for the purpose of receiving funds obtained by fraud from the prospective buyers. These buyers would wire money to the bank accounts opened by Savva and Savva would immediately withdraw the funds and then wire most of the money to conspirators outside the United States. The buyer was not able to recover the funds she sent after she discovered that the offer to sell the vehicle was fraudulent.
If convicted the defendant faces a maximum possible sentence of 30 years imprisonment;
3 years supervised release; $500,000 fine; restitution, forfeiture and a $200 special assessmentThe case was investigated by Federal Bureau of Investigation and United States Customs and Border Protection, and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
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An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Postal Service Employee Charged with TheftRead the Press Release
PHILADELPHIA - Venus Jenkins, 40, of Philadelphia, Pennsylvania, a U.S. Postal Service employee, was charged today by Information with one count of theft of Government funds, announced United States Attorney Zane David Memeger. The information alleges that from on or about June 2, 2010 to on or about December 7, 2011, Venus Jenkins implemented a scheme to steal funds from the United States Postal Service by using her position as a Sales and Service Associate to transact over 200 fictitious and fraudulent refunds, resulting in total losses to the government of approximately $17,011.24.
If convicted the defendants each face a maximum possible sentence of ten years incarceration, a $250,000.00 fine, and three years supervised release.
The case was investigated by the United States Postal Service Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang 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, 215-861-8525Philadelphia Woman Charged with Social Security FraudRead the Press Release
Crystal Anderson, 45, of Philadelphia, Pennsylvania was charged today by Information with one count of theft of government funds and three counts of social security fraud, announced United States Attorney Zane David Memeger. The information alleges that from in or about January 1996 through in or about November 2011, Crystal Anderson implemented a scheme to defraud the SSA by receiving disability insurance benefits and supplemental security income benefits while concealing that she was working and earning income and receiving dual benefits from SSA, for a period of almost 16 years, using a different name and social security number, resulting in losses to the government of approximately $105,108.32. In furtherance of her scheme, Ms. Anderson allegedly provided a fraudulently obtained social security number in order to obtain a false photographic identification card.
If convicted the defendant faces a maximum possible sentence of 25 years imprisonment, a three year period of supervised release, a $1,000,000.00 fine, and a $400.00 special assessment. Full restitution of as much as $105,108.32 may be ordered.
The case was investigated by the Social Security Administration Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Jersey Man Charged with Bank FraudRead the Press Release
Ron Credle, 48, of East Orange, New Jersey, was charged today by Information with one count of bank fraud and one count of aggravated identity theft, announced United States Attorney Zane David Memeger.
Credle faces a maximum sentence of 32 years imprisonment and a mandatory minimum of at least two years in prison. He also faces a $1.25 million fine and a $200 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Members of the Philadelphia La Cosa Nostra Family Found Guilty of Racketeering and Other ChargesRead the Press Release
PHILADELPHIA - A federal court jury today returned guilty verdicts against Joseph Massimino, Damion Canalichio, and Gary Battaglini for conspiring to participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity and through the collection of unlawful debts. The jury also returned guilty verdicts against co-defendant Anthony Staino, Jr. for conspiracy to make extortionate extensions of credit and conspiracy to collect extensions of credit by extortionate means. Trial lasted 43 days. Five co-defendants charged in the case pleaded guilty prior to trial while three additional co-defendants are still awaiting trial. U.S. District Court Judge Eduardo C. Robreno scheduled sentencing hearings for May 21, 2013 and scheduled bail hearings for February 6, 2013. Each charge of racketeering conspiracy carries a maximum penalty of 20 years in prison.
The jury was undecided ("hung") on several counts pertaining to defendants Joseph Ligambi, George Borgesi, and Joseph Massimino. Judge Robreno declared a mistrial on those counts. The jury found defendants Ligambi, Staino, Brogesi, Canalichio, and Battaglini not guilty of several substantive counts; Joseph Licata was found not guilty.In addition to prison terms, the defendants each face possible fines of up to $250,000 for each count.
The case is being investigated by the FBI, the Internal Revenue Service Criminal Investigation Division, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, and the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section, and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Lansdale Man Charged in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
PHILADELPHIA - Willie G. Manley, Jr., 62, of Lansdale, Pennsylvania, was charged yesterday, by Information, with one count of conspiracy to commit loan and wire fraud, three counts of loan fraud, one count of making a false statement in connection with a Federal Housing Administration Loan, two counts of wire fraud, and aiding and abetting, announced United States Attorney Zane David Memeger.
The information alleges a massive mortgage fraud conspiracy the operated between May 2004 and February 2009, primarily in the West Philadelphia section of the city of Philadelphia. Manley, an accountant, is alleged to have created false income documents, such as W-2 forms, paystubs, and Form 1040 income tax returns that were submitted to lenders to help induce the lenders into issuing mortgages for the properties. The information alleges that other co-conspirators included an appraiser who issued grossly inflated appraisals, a title agent who created false title insurance policies, contractors who submitted false receipts to show home repairs that had never been done, and numerous straw buyers whose names and identities were used to purchase the properties. The information alleges that a Philadelphia-based property settlement company - “KREW Settlement Services” - was at the center of the conspiracy. The information alleges that all told, the mortgage fraud scheme involved more than 100 properties and over $20 million in loan proceeds, with most of the mortgages being unpaid and the properties falling into foreclosure.
If convicted, the defendant faces a maximum possible sentence 137 years in prison, five years supervised release, restitution of up to $13.7 million, a fine of up to $4 million and a $700 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, 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, 215-861-8525Judge Sentences French Citizen for Airplane IncidentRead the Press Release
PHILADELPHIA - Philippe Jeannard, 61, of La Rochelle, France, was sentenced today to time served for one count of fraud in connection with an identification document. Jeannard has been in federal custody since March 21, 2013. He was arrested after he boarded a commercial airplane, on March 20, 2013, at Philadelphia International Airport, using a fraudulent Air France identification card of a former Air France employee and gained access to the plane’s cockpit.
U.S. District Court Judge Gene E.K. Pratter also ordered Jeannard to pay $4,875 in reimbursement for counsel’s fees that she found he had the ability to pay. He was also ordered to pay a $100 special assessment. Jeannard will be deported and will not be permitted back into the United States without written permission from the Secretary of the Department of Homeland Security.
The case was investigated by the Immigration and Customs Enforcement Homeland Security Investigations, the FBI, and the Philadelphia Police Department. It was 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, 215-861-8525Janssen Pharmaceuticals Pleads Guilty and Is Sentenced for MisbrandingRead the Press Release
PHILADELPHIA – Janssen Pharmaceuticals, Inc. (Janssen), a subsidiary of health care giant Johnson & Johnson (J&J), pleaded guilty today to a one count information charging Janssen with introducing a misbranded drug, Risperdal, into interstate commerce. U.S. District Court Judge Timothy J. Savage sentenced the company, ordering payment of a $344 million fine and forfeiture of $66 million.
Risperdal, an atypical anti-psychotic drug, was originally approved only to treat the management of the manifestations of psychotic disorders. On March 3, 2002, the approved use was narrowed to treatment of schizophrenia only. Janssen introduced Risperdal for a new, unapproved use, rendering the product misbranded. In a plea agreement resolving these charges, Janssen admits that between March 3, 2002, and December 31, 2003, it promoted Risperdal to health care providers for treatment of psychotic symptoms and associated disturbances exhibited by elderly, non-schizophrenic dementia patients, uses not approved as safe and effective by the Food and Drug Administration (FDA).
The Federal Food, Drug and Cosmetic Act (FDCA) requires a pharmaceutical company to specify the intended uses of a product in its new drug application to the FDA. Once approved, a drug may not be introduced into interstate commerce for unapproved or “off-label” uses. A manufacturer’s promotional activities of a drug for a use not approved by the FDA are evidence of its intent to distribute the drug for a new, unapproved use, also known as “misbranding.”
The case was investigated by the Health and Human Services-Office of Inspector General, the Food and Drug Administration’s Office of Criminal Investigations, and the Defense Criminal Investigative Service of the Department of Defense.
The criminal case was prosecuted by Assistant U.S. Attorneys Albert Glenn and Scott Cullen.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges Philadelphia Man with Four Bank RobberiesRead the Press Release
Kevin Neal, 36, of Philadelphia, PA, was charged today by indictment with four counts of bank robbery, announced United States Attorney Zane David Memeger. According to the indictment, Neal robbed the First Niagara Bank, located at 9869 Bustleton Avenue, Philadelphia, on January 10, 2013; the First Niagara Bank, located at 11730 Bustleton Avenue, Philadelphia, on January 16, 2013; the PNC Bank, located at 123 Old York Road, Jenkintown, on February 16, 2013; and the Trumark Financial Credit Union, located at 7306 Castor Avenue, Philadelphia, on March 13, 2013.
If convicted of all charges, Neal faces a maximum sentence of 80 years in prison, a fine of up to $1 millionod of supervised release of three years, a $1,000,000 fine, a $100 special assessment, and restitution.
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and 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, 215-861-8525Florida Pharmacist and Web Site Operator Sentenced for Illegally Distributing Prescription DrugsRead the Press Release
PHILADELPHIA - Wayne White, 52, of Miami, Florida, was sentenced today to 108 months in prison for conspiracy to distribute controlled and non-controlled prescription drugs, the distribution of controlled substances, and conspiracy to commit international money laundering, arising from the distribution of prescription drugs without valid prescriptions. Co-defendant Anthony Spence, 46, of Miramar, Florida, was sentenced to 70 months in prison for conspiracy to distribute controlled substances. White and Spence were convicted at trial in October 2012.
White was a pharmacist licensed in the State of Florida and the operator of Superior Drugs, which was located in Miami, Florida. White filled orders for prescription drugs – primarily, the controlled diet drug phentermine – for numerous individuals and entities who operated websites that which sold these drugs over the Internet. Many of White’s online customers were located in the Eastern District of Pennsylvania. White began filling orders for Internet pharmacies early as 2002. He was charged with illegally distributing prescription drugs up to May 2010.
During the period charged in the indictment, co-defendant Anthony Spence owned and operated the websites PricebusterRX.com and PricebustersUSA.com, which sold prescription drugs – the majority of which were controlled substances – over the Internet. Most of the customers of the websites operated by Spence were only required to complete an online questionnaire, or answer questions over the telephone; none were examined by the physicians who issued their prescriptions. Spence paid physicians to review the customers’ responses to the online or telephone questionnaires and to issue prescriptions based solely upon the customers’ responses. In some instances, customers sent Spence reports of physical examinations allegedly conducted by other healthcare professionals. The doctors who approved the prescriptions never communicated with the customers or the healthcare professionals who allegedly examined the customers. Spence paid Superior Drugs, which was operated by defendant Wayne White, to fill these invalid prescriptions and to ship them to his customers.
Both defendants were also convicted of conspiracy to introduce misbranded drugs into interstate commerce, which applies to the defendants’ distribution of non-controlled prescription drugs, such as carisoprodol, which is commonly sold under the trade name of Soma and is now a controlled substance, and tramadol, which is commonly sold under the trade name of Ultram. Both of these drugs are addictive and frequently abused.
In May 2007, White was sued by the family of a customer who had an online phentermine order filled by Superior Drugs. The customer died of a phentermine overdose; a bottle of phentermine tablets from Superior Drugs was found in her home. The deceased customer resided in Texas; the doctor who wrote the prescription resided in Puerto Rico.
In addition to the prison term, U.S. District Court Judge Juan R. Sànchez ordered White to forfeit $10,254,398.49 and pay a fine of $25,000, and ordered Spence to forfeit $4,912,148.10 and pay a fine of $10,000.
Co-defendant Michael Gibson, who pled guilty before trial, was a physician licensed in the State of Georgia who issued invalid prescriptions for prescription drugs for customers whom he neither saw, spoke to, or examined. He began working for Spence in 2008, after the doctor whom Spence had previously hired was investigated, and eventually prosecuted, for writing invalid prescriptions and tax evasion. Gibson began working for co-defendant Carleta Carolina in 2009. The sentencing hearing for Gibson is scheduled for February 8, 2013 before Judge Sànchez.
Co-defendant Carleta Carolina, who is also charged with illegally operating Internet websites to sell controlled and prescription drugs and hiring White to fill and ship her orders, is a fugitive.
The case was investigated by the Diversion and Enforcement Divisions of the Drug Enforcement Administration, Internal Revenue Service Criminal Investigations, the Food and Drug Administration’s Office of Criminal Investigations, the United States Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Federal Bureau of Investigation’s New York Division. It is being prosecuted by Assistant United States Attorneys Frank R. Costello, Jr. and Vineet Gauri.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Child Porn Charges Filed Against Philadelphia ManRead the Press Release
Wei Qin, 23, of Philadelphia, Pennsylvania, was charged today by Indictment with one count of transportation of child pornography and one count of possession of child pornography, announced United States Attorney Zane David Memeger. The indictment alleges that on or about October 13, 2012, Qin, an alien, and native and citizen of China, transported images of minors engaging in sexually explicit conduct, and that on or about February 7, 2013, Qin possessed more than 600 images of child pornography.
If convicted the defendant faces a maximum possible sentence of 30 years.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Special Assistant United States Attorney Karen A. Fox.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Charges Allege Philadelphia Pharmacist Filled Forged Prescriptions and Laundered the ProfitsRead the Press Release
PHILADELPHIA – An information was unsealed today charging Bevis Vanterpool, 35, of Philadelphia, with conspiring to distribute oxycodone, a Schedule II narcotic controlled substance, and money laundering, in violation of federal drug and money laundering laws, announced United States Attorney Zane David Memeger. Vanterpool is a pharmacist who owned and operated Tracemark Pharmacy at 4839 North Broad Street in Philadelphia. According to the charges, from May 2010 until December 19, 2011, Vanterpool accepted and filled nearly 5,000 fraudulent prescriptions for at least 447,761 mg. of oxycodone, when he knew that the prescriptions were forged and fraudulent, as they had not been written by physicians. It is further alleged that from May 2010 until December 19, 2011, Vanterpool laundered proceeds of this illegal activity totaling at least $1,180,000.
If convicted, Vanterpool faces a maximum possible sentence of 40 years in prison, 3 years of supervised release up to a lifetime of supervised release, a fine of up to $1.25 million, and a $200 special assessment, along with forfeiture of money and property totaling $822,428.58 in drug proceeds and $1,180,000 as the proceeds of money laundering.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration Diversion Unit, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Mary E. Crawley.
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An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525