Eastern District of Pennsylvania

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jamar Miller, 24, of Claymont, Delaware, was sentenced today by United States District Court Chief Judge Mitchell S. Goldberg to 190 months’ imprisonment, three years of supervised release, $1,919 in restitution, and a $500 special assessment for his role in two armed carjackings in Delaware County in January of 2023.

In April of 2023, Miller and codefendant Keenan Righter were each indicted on one count of conspiracy to commit carjacking, two counts of carjacking, and two counts of using or carrying a firearm during a crime of violence in connection with these carjackings.

Miller pleaded guilty to all the charges in March of this year.

In May, a federal jury convicted Righter on all counts; he was sentenced last week to 280 months in prison and five years of supervised release.

On January 14, 2023, at approximately 9 p.m., Miller drove Righter and another male to a Wawa on Route 322 in Upper Chichester Township, Delaware County. Righter and the other male then ambushed a 23-year-old college student who was walking to his car after leaving the store. The men, each brandishing firearms and wearing masks to disguise their identities, demanded the victim’s vehicle at gunpoint. They pistol-whipped the victim in the back of the head and fled the scene in the victim’s vehicle, with Miller following in his own car.

On January 24, 2023, at approximately 1:30 a.m., Miller drove Righter and another male to a Wawa on Edgmont Avenue in Brookhaven, Delaware County. Again, Righter and the other male wore masks and carried firearms as they carjacked a 33-year-old victim at gunpoint in the parking lot of the Wawa. The two men pistol-whipped the victim multiple times in the head with a firearm as they stole his belongings and fled the scene in his car, with Miller again trailing behind them in his vehicle.

“Jamar Miller drove his co-conspirators to the crime scenes, watched as they violently carjacked two innocent people, and followed as they fled in the stolen vehicles,” said U.S. Attorney Romero. “As his almost 16-year prison sentence shows, even a supporting role in a carjacking can lead to federal charges — and utterly life-changing consequences.”

“Today’s sentencing demonstrates how strong partnerships in law enforcement contribute to safer communities,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Our office, alongside the U.S. Attorney’s Office and our local law enforcement partners, will not relent in our efforts toward safer neighborhoods for all of us.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by FBI Philadelphia’s Newtown Square Resident Agency, the Brookhaven Police Department, and Upper Chichester Police Department, and is being prosecuted by Special Assistant United States Attorneys Brian Doherty and Branwen McNabb O’Donnell.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Nafec Pressley, 28, of Philadelphia, Pennsylvania, was sentenced by United States District Court Judge Kai N. Scott to 150 months in prison and five years of supervised release for the armed robbery of a store in the city’s Northeast in late 2022.

Pressley was indicted in March 2023 on one count of Hobbs Act robbery and one count of using and carrying a firearm during and in relation to a crime of violence. He pleaded guilty to those charges this July.

On November 20, 2022, at approximately 4:15 p.m., a male employee was waiting on several customers inside a dollar store on the 6900 block of Bustleton Avenue. After the last customer left, Pressley approached the counter and engaged in small talk with the employee. The defendant suddenly walked around the counter, brandished a black semiautomatic pistol, and demanded money from him. The victim opened the cash register and invited Pressley to take the money inside, which amounted to over $300. Pressley pocketed the cash, then demanded that the victim take him upstairs to get more money.

The victim pleaded with Pressley to leave, finding some more cash by the counter, which he gave to Pressley. When the victim’s wife began to come down the steps from the second floor, Pressley aimed his gun at her, and then back at the male victim. Pressley told the man that he had five seconds to go upstairs and get more money and began to count backwards from five.

The victim then grabbed his own firearm from behind the counter and he and Pressley exchanged gunfire. Pressley was shot numerous times throughout his body, knocking him backwards and onto the floor. The defendant discharged his pistol multiple times as he fell but did not strike the victim. Pressley ran to the back of the store, then made a dash for the front door. As he fled, he turned and fired at the victim, again missing him.

A short time later, Pressley was dropped off at an area hospital where he was treated for gunshot wounds. Philadelphia police officers who responded to the hospital seized Pressley’s clothing, finding approximately $371 in cash in his pants pocket.

“Nafec Pressley nearly got himself killed because he’d rather steal money than work for it,” said U.S. Attorney Romero. “He’s extremely fortunate he didn’t kill anyone else when he opened fire in that store. My office and our partners at ATF and the Philadelphia Police Department are committed to protecting the public from these violent criminals who prey on others. With Mr. Pressley behind bars for the next decade-plus, our stores, streets, and city are safer.”

“We will not let violent criminals like Nafec Pressley terrorize Philadelphia’s businesses and communities,” said Eric DeGree, Special Agent in Charge of the ATF Philadelphia Field Division. “In this robbery turned shootout it was only by good fortune no one was killed. ATF Philadelphia Field Division has a long history of partnership with the Philadelphia Police Department and U.S. Attorney’s Office, and we will continue to work tirelessly together to ensure justice for the victims and to make our communities safer.”

The case was investigated by the Philadelphia Police Department and the ATF and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Diane Gillard, 41, of Philadelphia, Pennsylvania, was sentenced by United States District Court Judge John M. Gallagher to 192 months in prison, 10 years of supervised release, and $2,100 in restitution for drug trafficking and gun offenses.

On July 18, 2023, a grand jury in the Eastern District of Pennsylvania returned a 54-count superseding indictment charging Gillard, brother Phillip Gillard, and seven other codefendants with their participation in a large-scale drug trafficking organization operating in the Port Richmond section of Philadelphia, in the immediate vicinity of the Memphis Street Academy, a charter school located at 2950 Memphis Street.

In November 2023, Diane Gillard pleaded guilty to all charges in the superseding indictment.

Those charges arose from the FBI’s two-year investigation into the Gillard drug trafficking organization, which supplied other drug traffickers with wholesale quantities of methamphetamine, phencyclidine (“PCP”), fentanyl, and other narcotics.

Throughout the course of the investigation, law enforcement agents conducted surveillance and undercover sting operations, during which drugs were purchased from the defendants. The group maintained three separate properties in connection with their drug trafficking organization, all of which were less than 1,000 feet away from the Memphis Street Academy.

In total, the FBI confiscated over 20 pounds of pure methamphetamine, three gallons of PCP, one and a half kilograms of cocaine, 900 grams of crack cocaine, 400 grams of fentanyl, and 11 firearms.

Codefendants Sharif Jackson, Amin Whitehead, Cesar Maldonado, Terrence Maxwell, Raphael Sanchez, Melvin Dreher, and Arron Preno previously pleaded guilty and received prison sentences in this case. Jackson was sentenced to 180 months in prison, Whitehead to 138 months, Maldonado to 96 months, Maxwell to 93 months, Sanchez to 90 months, Dreher to 60 months, and Preno to six months. Phillip Gillard, who was convicted at trial in February, is scheduled to be sentenced in December.

“Diane Gillard was a central participant in the Gillard Street Gang’s trafficking, caught red-handed selling large amounts of drugs on multiple occasions,” said U.S. Attorney Romero. “This is a group that helped flood Philly’s streets with meth, PCP, fentanyl, and more. My office and our partners will continue to target those fueling our city’s drug epidemic and callously profiting from people’s pain and addiction.”

“Drugs like fentanyl, methamphetamine, and cocaine devastate communities across our nation and have no place in our city,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Today’s sentence is a culmination of a years-long investigation, and the tireless dedication of the FBI and our law enforcement partners in pursuit of those who bring these harmful drugs into our communities.”

“The interagency cooperation on this case has been truly outstanding,” said Edward V. Owens, Special Agent in Charge of HSI Philadelphia. “I commend the special agents and prosecutors who worked to ensure that these criminals and the dangerous drugs that they were trafficking will no longer threaten the American public.”

The case was investigated by the FBI, Philadelphia Police Department, and Homeland Security Investigations, with extraordinary cooperation from the Memphis Street Academy, and is being prosecuted by Assistant United States Attorneys Everett Witherell and Robert W. Schopf.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Patrick Knauss, 35, of Essex Junction, Vermont, was sentenced today by United States District Court Judge Mark A. Kearney to 265 months’ imprisonment, 15 years of supervised release, $3,000 in restitution, and a $300 special assessment for child pornography offenses.

Knauss was charged by indictment in February of this year with one count each of conspiracy to manufacture child pornography, conspiracy to receive and distribute child pornography, and receipt of child pornography. He pleaded guilty to all three charges in June.

Over a period of more than two years, the defendant and his co-conspirators, Andrew Wolf and Kray Strange, operated an elaborate online child exploitation catfishing scheme to entice minor boys to self-produce sexually explicit images and send them to the defendants over the internet. At the time, Wolf was in his 18th year as a middle school teacher at Springside Chestnut Hill Academy in Philadelphia and Strange was a young adult living in Carthage, New York.

Together, the three targeted boys with large social media followings, as well as dozens of Wolf’s own middle school students. Throughout their years of near-daily communications, which amount to nearly 2,000 pages, the defendant and his co-conspirators also discussed their shared sexual interest in children and traded images and videos of child sexual abuse material (“CSAM”).

Wolf and Strange both pleaded guilty to the catfishing scheme in June of 2022. On February 16, 2023, Wolf was sentenced to 466 months’ imprisonment and five years of supervised release. On March 31, 2023, Strange was sentenced to 396 months’ imprisonment, to be followed by lifetime supervised release. They were ordered to pay a total of $324,320 in restitution to six minor victims who sought restitution.

“For more than two years, Patrick Knauss took part in a scheme that victimized dozens of children,” said U.S. Attorney Romero. “Knauss not only encouraged his co-conspirator, teacher Andrew Wolf, to catfish his own students, he even suggested some strategies for doing so. Know that my office and the FBI will never stop working to hold predators like this accountable and protect our children from sexual exploitation.”

“The online exploitation of children is one of the most egregious crimes the FBI investigates,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “This sentencing underscores that FBI and our partners are committed to safeguarding children and ensuring that those who harm them will face consequences.”

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 projectsafechildhood.gov.

The case was investigated by the FBI with assistance from the Vermont Attorney General’s Office and is being prosecuted by Assistant United States Attorney Kelly Harrell.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that two Philadelphia men have each been sentenced to almost 10 years in prison for carrying out separate carjackings in the city.

Asiem Brooking, 21, was sentenced on October 17, 2024, by United States District Court Judge R. Barclay Surrick to 117 months in prison and three years of supervised release for committing an armed carjacking in the city’s Olney section in January 2023.

At around 8:15 p.m. on January 28, 2023, as a 54-year-old man was about to get out of his Nissan Altima on the 5400 block of North 6th Street, Brooking opened the passenger side front door, pointed a gun at the victim, and threatened to kill him. After the victim complied with Brooking’s demand to hand over his wallet and keys, the defendant fled the scene in the Altima.

In May of 2023, Brooking was charged by indictment with one count of carjacking and one count of using and carrying a firearm during and in relation to a crime of violence. He pleaded guilty to both counts in July of this year.

Marc Anthony, also known as Nasir Johnson, 22, was sentenced on October 18, 2024, by United States District Court Judge Karen S. Marston to 115 months in prison and five years of supervised release for carjacking a woman at gunpoint in the city’s Fairmount section in January 2022.

At about 1:15 p.m. on January 6, 2022, Anthony and an unknown accomplice, both masked and armed with handguns, approached a 40-year-old woman who had just parked her Hyundai Sonata on the 800 block of North 28th Street. As they ordered the victim out of the car at gunpoint, she asked to retrieve her dog from the back seat, struggling to do so as they yelled for her phone and passcode. Once the victim and her dog were clear, the carjackers fled the scene in the Sonata.

Anthony was charged by indictment in May 2022 with one count of carjacking and one count of using and carrying a firearm during and in relation to a crime of violence. He pleaded guilty to both charges in May of this year.

“These criminals who think nothing of terrorizing our community at gunpoint are a true priority for my office, the FBI, and our partners on Philadelphia Carjacking Task Force,” said U.S. Attorney Romero. “By ensuring that people like Brookings and Anthony are prosecuted and held accountable for their violent and disturbing crimes, we’re making the city safer — one offender, one block, one neighborhood at a time.”

These cases were investigated by the FBI Philadelphia Violent Crimes Task Force and the Philadelphia Police Department and are being prosecuted by Assistant United States Attorney Thomas M. Zaleski.

United States Attorney Jacqueline C. Romero announced today that two District Election Officers will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. The District Election Officers (DEOs) for the Eastern District of Pennsylvania are responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” U.S. Attorney Romero said. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English). 

“The franchise is the cornerstone of American democracy,” U.S. Attorney Romero said. “We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, the DEOs will be on duty in this District while the polls are open. The public can reach them by calling 215-861-8200 and asking for the District Election Officers.”

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public by calling 215-418-4000.

Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division in Washington, D.C., by complaint form at https://civilrights.justice.gov/ or by phone at 1-800-253-3931.

“Ensuring free and fair elections depends in large part on the assistance of the American electorate,” U.S. Attorney Romero said. “It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation, call 911 immediately before then contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Yaniv Gola, 51, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Kai N. Scott to 16 months’ incarceration followed by three years of supervised release for interstate communication of threats.

In February of this year, Gola was charged by information with using a Voice Over Internet Protocol service to mask his phone number and make telephone calls threatening to injure, rape, and kill eight different victims between August 2, 2022, and November 5, 2023. He pleaded guilty to the eight counts against him on February 14.

On one of these calls, Gola threatened, “You f***ing Jew, now I know where you are. I’m going to kill all you Jews … You all should be shoved back into ovens. I’m going down to [victim’s business location] to kill you.” On another call, Gola said to a victim, “I want to put a bullet in your head … You f***ing Muslims.” In the most recent call, Gola threatened a victim, “You’re Jewish, I’m from Hamas. You’re animals and pigs … If you don’t leave that place, we’re going to blow you up.”

“Yaniv Gola made hundreds of these calls and texts, terrorizing his victims with incredibly vile, violent threats,” said U.S. Attorney Romero. “He learned where they lived and worked, deploying those details just to heighten their fear. My office and the FBI will continue to hold accountable anyone making such cruel and criminal threats.”

“The details of this case serve as an alarming reminder of threats members of our community face because of their beliefs,” said Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Field Office. “We thank our law enforcement partners who work alongside us every day as we work to ensure the safety and security of our communities. Let today’s sentence serve as a reminder that the FBI will continue to diligently pursue those who make violent threats against those we are charged to protect.”

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney J. Jeanette Kang. The FBI was assisted by the Philadelphia Police Department, the Media Borough Police Department, the Cinnaminson Township (N.J.) Police Department, the Newtown Township (Delaware County) Police Department, and the Haddonfield (N.J.) Police Department.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that The Pennsylvania State University (Penn State) has agreed to pay $1,250,000 to resolve allegations that it violated the False Claims Act by failing to comply with cybersecurity requirements in 15 contracts or subcontracts involving the Department of Defense (DoD) or National Aeronautics and Space Administration (NASA).

The settlement resolves allegations that, between 2018 and 2023, Penn State failed to implement cybersecurity controls that were contractually required by DoD and NASA and did not adequately develop and implement plans of action to correct deficiencies it identified. DoD requires contractors to submit summary level scores reflecting the status of their compliance with applicable cybersecurity requirements on covered contracting systems used to store or access covered defense information. The United States alleged that Penn State submitted cybersecurity assessment scores to DoD that reflected it had not implemented certain controls, but misrepresented the dates by which it would implement them and did not pursue plans of action to do so. The United States also alleged that in performing certain of the contracts and subcontracts Penn State did not use an external cloud service provider that met DoD’s security requirements for covered defense information.

“Federal contractors who store or access covered defense information must take required steps to protect that sensitive information from bad actors,” said U.S. Attorney Romero. “When they fail to meet their cybersecurity obligations, we and our law enforcement partners will use every available tool to remedy the situation.”

“As our cyber adversaries become increasingly sophisticated, the importance of cybersecurity in safeguarding Department of Defense research, development and acquisitions information cannot be overstated,” said Special Agent in Charge Greg Gross, Naval Criminal Investigative Service Economic Crimes Field Office. “NCIS, along with our federal partners, are committed to investigating entities who fail to implement contractual requirements designed to protect Department of the Navy critical information.”

“Protecting the integrity of Department of Defense (DoD) procurement activities is a top priority for the DoD Office of Inspector General's Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Failing to comply with DoD contract specifications and cybersecurity requirements puts DoD information and programs at risk.  We will continue to work with our law enforcement partners and the Department of Justice to investigate allegations of false claims on DoD contracts.”

“Safeguarding sensitive NASA and DoD data is crucial to ensuring that it does not fall into the hands of our adversaries or bad actors,” said Assistant Inspector General for Investigations Robert Steinau of NASA. “The University’s inability to adequately address known deficiencies not only put sensitive information at risk but also undermined the integrity of our government’s cybersecurity efforts. We remain committed to holding entities accountable when they fail to meet critical security standards, as demonstrated by this case.”

On October 6, 2021, Deputy Attorney General Lisa Monaco announced the department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyberfraud can be found here.

The settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and receive a share of any recovery. The settlement in this case provides for the whistleblower, Matthew Decker, former Chief Information Officer for Penn State’s Applied Research Laboratory, to receive a $250,000 share of the settlement amount. The qui tam case is captioned U.S. ex rel. Decker v. Pennsylvania State University., No. 2:22-cv-03895 (E.D Pa.).

The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the Eastern District of Pennsylvania and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from NCIS, NASA-OIG, Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Army Criminal Investigation Division, Naval Audit Service, the Defense Contract Management Agency’s Defense Industrial Base Cybersecurity Assessment Center, and the Air Force Material Command.

The matter was handled in the U.S. Attorney’s Office for the Eastern District of Pennsylvania by Assistant U.S. Attorneys Rebecca S. Melley and Peter Carr and Auditor Dawn Wiggins.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Giuseppina “Josephine” Leone, 62, of North Wales, Pennsylvania, was sentenced today by United States District Court Judge Gerald A. McHugh to 21 months in prison, one year of supervised release, a $50,000 fine and $300 special assessment for pandemic program fraud. The Court denied the defendant’s request for a non-custodial sentence. The defendant has also paid full restitution in the amount of $972,861.75.

Leone was charged by indictment on May 16, 2024, with three counts of wire fraud for making false representations in documents relating to the Paycheck Protection Program (“PPP”) and Restaurant Revitalization Fund (“RRF”) program, which provided emergency financial assistance to business owners suffering the economic effects of the COVID-19 pandemic. She pleaded guilty to those charges on May 23.

Leone and her husband were owners of Ristorante San Marco (“RSM”), an Italian restaurant located in Ambler, Pa. Leone and her husband executed an Agreement for Sale of Real Property dated October 20, 2019, listing themselves as the “Sellers” of the RSM property and a third party as the “Buyer” for a purchase price of $1,575,000. Subsequently, on or about March 18, 2020, Leone posted on the restaurant’s Facebook page informing the public that RSM would be temporarily closed due to the COVID-19 pandemic. RSM remained closed and never reopened.

Despite the restaurant not being in operation in April 2020, Leone submitted a fraudulent application for a PPP loan in the amount of $138,000. This application misrepresented that RSM, which had been closed for approximately a month, had 17 employees, and would use the loan for payroll and other operating expenses. The fraudulent application was approved, and the loan funds were deposited into RSM’s bank account later that month. The loan was subsequently forgiven based on further misrepresentations by Leone.

In January 2021, while the restaurant was still not in operation, Leone submitted another fraudulent application for a PPP loan, this time seeking $120,000. The application made similar misrepresentations and was approved, resulting in the requested funds being deposited into RSM’s bank account in February 2021. Again, the PPP loan was forgiven due to misrepresentations by Leone.

Finally, Leone defrauded another COVID-19 relief program. While RSM was still not in operation in May 2021, Leone submitted a fraudulent application for a grant under the RRF program, requesting $699,196 for restaurant operations. This RRF application mispresented that RSM, which had not been operating since March 2020, was in operation and that the money would be used to pay employee wages. As a result of this deception, the request was approved, and the funds were deposited into RSM’s bank account later in May 2021. One month later, in June 2021, Leone closed on the sale of RSM. Nonetheless, over a year later, Leone misrepresented to the federal government that the RRF funds had been used for eligible purposes, even though RSM was never reopened by Leone.

“PPP and the other covid relief programs were meant to provide emergency aid to businesses and employees financially flattened by the pandemic,” said U.S. Attorney Romero. “My office and our partners won’t stand for opportunists like Mrs. Leone thinking they can defraud the federal government, pocket taxpayers’ money, and get away with it. We’ll continue to aggressively pursue and prosecute anyone foolish enough to do so.”

The case was investigated by the Small Business Administration Office of Inspector General, the FBI, and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Angella Middleton.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Carlton Rembert, 70, of Hampton, Virginia, was sentenced on October 11, 2024, by United States District Judge Joel H. Slomsky to 66 months’ imprisonment, five years of supervised release, $534,335 in restitution to the victims, and a $400 special assessment for his role in a scheme to defraud elderly incapacitated people of over $1 million.

Rembert’s late co-conspirator and sister, Gloria Byars, was a court-appointed guardian for over 100 incapacitated wards in Pennsylvania. Between 2012 and 2018, Byars, Rembert, and other co-conspirators stole the life savings from dozens of wards while Byars served as their court-appointed guardian. Byars pleaded guilty to conspiracy, wire fraud, money laundering, and tax fraud for her role in the fraud scheme. Rembert proceeded to trial in November 2023 and after a four-day trial, a jury found Rembert guilty of conspiracy, bank fraud, and wire fraud.

As guardian, Byars had unfettered access to wards’ property including bank accounts, pensions, real estate, retirement accounts, and other assets. Byars stole money from the wards’ bank accounts by writing unauthorized checks to companies she controlled, or to shell companies controlled by her co-conspirators, Rembert and Alesha Mitchell. Rembert and Mitchell assisted Byars in the theft by opening bank accounts in their home state of Virginia in the names of shell companies purporting to be medical services companies. Byars made the checks payable to her co-conspirators’ fake medical services companies, to make it appear that the elderly incapacitated ward incurred a legitimate medical expense.

After receiving dozens of checks from his sister, Rembert deposited over $695,000 in stolen ward checks into five separate shell business bank accounts he had opened. Rembert then withdrew over $388,000 in cash through 94 structured withdrawals. Rembert also obtained $217,082 in certified checks, sending the certified checks to Byars and keeping a share of the stolen ward money for himself. When confronted by law enforcement, Rembert lied to investigators, pretending that he provided services to the elderly and sick victims. Some of the victims’ families testified at Rembert’s trial, telling the court that they had never heard of Rembert’s sham medical companies, and that neither Rembert nor his companies provided any services for their loved ones.

Rembert and Byars spent the stolen ward money on personal expenses, including vacations, clothing and other retail purchases, restaurants, vehicles, gifts, and parties. In all, Byers, Rembert, and Mitchell stole well over $1 million from at least 120 incapacitated people in the Eastern District of Pennsylvania.

Alesha Mitchell is scheduled to be sentenced on October 24.

“Rembert and his co-conspirators had no qualms about ripping off these incapacitated victims and living it up on their stolen money,” said U.S. Attorney Romero. “The greed and callousness here are off the charts. It’s vile that criminals target the elderly and infirm specifically to take advantage of their vulnerability. My office and our partners will continue to do all we can to hold these crooks responsible and protect our elders from such greed, fraud, and abuse.”

“Elder fraud leaves a damaging impact on victims and our communities, and our office remains steadfast in pursuit of those who exploit this vulnerable population,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “We encourage those who believe that they or a loved one are a victim of elder fraud to report it. Reporting elder fraud is not only a step towards justice, but it helps protect others from victimization.”

“Carlton Rembert, together with his co-conspirator Gloria Byars, abused the trust of the most vulnerable among us – individuals who have been incapacitated by age, illness, or both. What they did was truly heinous – and truly criminal. I applaud United States Attorney Romero for prosecuting these individuals, in one of the first guardianship fraud cases to be prosecuted. Unfortunately, this type of fraud is increasing, and it is important for law enforcement to send a clear signal that it will not be tolerated,” said Delaware County District Attorney Jack Stollsteimer.

“As a law enforcement community, it is our duty to hold individuals accountable who abuse their position of trust and steal from the people that are under their care,” said Amy MacNeely, Acting Special Agent in Charge of IRS Criminal Investigation. “We, along with our law enforcement partners and the Department of Justice, will continue to hold accountable those who exploit the most vulnerable among us.”

The case was investigated by the FBI, the Delaware County District Attorney’s Office Criminal Investigation Division, and IRS Criminal Investigation and is being prosecuted by Assistant United States Attorneys Tiwana Wright and Samuel Dalke.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Joseph Cole Barleta (aka “Joe Cole”), 41, of Philadelphia, Pennsylvania, entered a plea of guilty today before United States District Court Judge Mark A. Kearney on one count of racketeering conspiracy, in connection with his role in the operation of a fraudulent investment vehicle known as Complete Business Solutions Group Inc. d/b/a Par Funding (“Par Funding”), which is alleged to have generated over $100 million in illegal proceeds for Barleta and its other principals, to the detriment of Par Funding’s numerous investors, many who live in the Philadelphia region.

According to a second superseding indictment filed in February, Barleta and codefendants Joseph LaForte, James LaForte, and others, were part of an association-in-fact RICO enterprise that conspired to commit a number of predicate crimes, including crimes related to the fleecing of Par Funding’s many investors. Barleta’s admitted role in the conspiracy related to the securities and wire fraud components of the enterprise.

Joe LaForte and James LaForte pleaded guilty last month to racketeering conspiracy, securities fraud, and related crimes.

Joe LaForte is scheduled to be sentenced on January 13, 2025.

James LaForte and Joseph Cole Barleta are both scheduled to be sentenced on February 20, 2025.

Per the terms of Barleta’s plea agreement, the government is seeking a sentence of imprisonment of up to eight years, although the Court has discretion to impose a higher or lower sentence.

This case was investigated by the FBI, IRS Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and Pennsylvania State Police and is being prosecuted by Assistant United States Attorneys Matthew T. Newcomer, Samuel S. Dalke, Eric D. Gill, and Patrick J. Murray, as well as former Assistant United States Attorney Alexandra M. Lastowski. The SEC in Florida investigated and litigated the civil securities fraud charges, which formed the basis of a portion of the criminal prosecution.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Keenan Righter, 21, of New Castle, Delaware, was sentenced yesterday by United States District Court Chief Judge Mitchell S. Goldberg to 280 months in prison, five years of supervised release, restitution of $1,919, and a $500 assessment, in connection with two armed carjackings in Delaware County in January of 2023.

Righter was convicted by a jury in May of conspiracy, two counts of carjacking, and two counts of using or carrying a firearm during a crime of violence arising from his role in the two carjacking incidents. Codefendant Jamar Miller pleaded guilty to these offenses in March of 2023 and is awaiting sentencing.

On January 14, 2023, at approximately 9 p.m., Righter and others drove in Miller’s car to a Wawa on Route 322 in Upper Chichester Township, Delaware County. Righter and another male then ambushed a 23-year-old college student who was walking to his car after leaving the store. The men, each brandishing firearms and wearing masks to disguise their identities, demanded the victim’s vehicle at gunpoint. They pistol-whipped the victim in the back of the head and fled the scene in the victim’s car.

On January 24, 2023, at approximately 1:30 a.m., Righter and another male drove in Miller’s car to a Wawa on Edgmont Avenue in Brookhaven, Delaware County. Again, they wore masks and carried firearms as they carjacked a 33-year-old victim at gunpoint in the parking lot of the Wawa. The men pistol-whipped the victim multiple times in the head with a firearm as they stole his belongings and fled the scene in his car.

The defendant was apprehended after an intensive investigation by FBI Philadelphia’s Newtown Square Resident Agency, in conjunction with the Brookhaven and Upper Chichester Police Departments. Digital forensic evidence and more linked the defendant to both carjackings.

“Imagine the shock of being violently ambushed on a Wawa run, of all things,” said U.S. Attorney Romero. “Keenan Righter targeted and terrorized total strangers, just to steal their cars. Armed criminals who think they can victimize innocent people with impunity should take a good hard look at 21-year-old Mr. Righter’s 23-year prison sentence. Keep doing what you’re doing, and you’ll earn your own long stay in one of our federal facilities.”  

“Such brazen and senseless acts, like the ones in this case, not only devastate the victims but our community at large,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “This sentencing exemplifies the value of partnerships in combatting violent crime. Our office will continue to work alongside our local law enforcement partners and the U.S. Attorney’s Office to keep violent offenders off the streets and ensure our neighborhoods are a safer place to live.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the FBI, the Brookhaven Police Department, and Upper Chichester Police Department, and is being prosecuted by Special Assistant United States Attorneys Brian Doherty and Branwen McNabb O’Donnell.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jared Stanley, 32, of Lindenwold, New Jersey, entered a plea of guilty on Friday, October 11, 2024, before United States District Court Judge John F. Murphy to three counts of Hobbs Act robbery and one count of carrying, using, and brandishing a firearm during and in relation to a crime of violence, in connection with the armed robberies of three corner stores in Philadelphia’s Kensington section.

Stanley committed all three robberies during a two-week span in late January and early February of this year.

On January 21, 2024, the defendant entered the Birch Mini-Market, located at 2001 East Birch Street. He approached the counter, pointed a gun at the cashier, and demanded money. When the cashier didn’t understand him, Stanley started screaming at them. He repeatedly hit the cashier in the head with the gun, stole approximately $550 from the register, and fled.

On January 28, 2024, Stanley and an unidentified co-conspirator entered the Capricorno Grocery, located at 2000 East Orleans Street. Stanley walked to the employee area of the store, displayed a firearm, grabbed the employee by the shirt and forcibly pulled him away, pistol whipped him repeatedly, and stood guard over him while his accomplice went back to the register and stole approximately $500.

On February 2, 2024, Stanley and an unidentified co-conspirator entered Bonifacios Grocery, located at 3052 Frankford Avenue. They pushed an employee to the cash register, told him to get on the ground and then pistol whipped him in the head. Stanley and his accomplice then stole approximately $500 from the cash register and fled the store on foot.

Stanley is scheduled to be sentenced on January 29, 2025. He faces a mandatory minimum sentence of seven years in prison and a maximum possible sentence of life imprisonment, five years of supervised release, a $1,250,000 fine, and a $500 special assessment.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the FBI and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Robert E. Eckert.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Lee E. Moore, Jr., 36, of Sicklerville, New Jersey, was sentenced yesterday to three years of probation with six months of home detention and a $5,000 fine by United States Magistrate Judge Scott W. Reid, all arising from Moore smuggling mobile phones into the Federal Detention Center in Philadelphia (“FDC”) while he was employed as a correctional officer at the FDC.

From August  2016 to June 2023, Moore was a correctional officer at the FDC. During May-June 2020, Moore smuggled mobile phones into the FDC in exchange for payments from an inmate’s wife. In June 2020, Moore also approached a second inmate about smuggling in contraband or other special favors in exchange for payment. 

“Correctional officers have a tough enough job without having to deal with inmates who have access to smuggled contraband,” said U.S. Attorney Romero. “Lee Moore put his fellow COs and the public at risk by smuggling cell phones into the FDC for a price. But the price for breaking his law enforcement oath is much higher: he’s lost his job and now has a federal conviction on his record.”

"When a corrections officer chooses greed over integrity, it undermines the hard work and dedication their colleagues put forward every day to ensure a safe environment inside our detention centers," said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. "The FBI and our partners reaffirm our commitment to holding accountable those in the corrections system who abuse their positions of trust."

The case was investigated by the Federal Bureau of Investigation, the Department of Justice’s Office of Inspector General, and the Federal Detention Center and was prosecuted by Assistant United States Attorney Vineet Gauri. 

The Justice Department announced today that Citadel Federal Credit Union (Citadel) has agreed to pay over $6.5 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic neighborhoods in and around Philadelphia. This landmark agreement is the Justice Department’s first redlining settlement with a credit union, making this a historic achievement for the Combating Redlining Initiative.

Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities.

“This redlining settlement marks the Justice Department’s very first resolution involving a credit union, making clear our intent to hold all types of lenders accountable for their role in modern-day redlining,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “There are well over 4,600 credit unions across America, all subject to federal laws that prohibit redlining and lending discrimination. Redlining and other forms of lending discrimination harm communities of color and families by denying them an equal opportunity to access credit, attain the dream of homeownership and build generational wealth. This settlement will expand investment in Black and Hispanic communities, particularly in Philadelphia, and increase opportunities for homeownership and financial stability. Residents of communities harmed by unlawful redlining will finally be able to access credit services from Citadel in their own neighborhoods, including at the new branches required by the settlement.”

“For generations, Philadelphia’s communities of color have lacked equal access to the credit needed for homeownership. We know that redlining has a devastating impact on a family’s finances and future, and results in economic and other inequalities that plague our communities for decades,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “We also know the transformational change that can occur when credit is made available to underserved residents, and particularly when lenders, like Citadel, establish branch locations in these neighborhoods.”

The Justice Department’s complaint, which was filed today in the Eastern District of Pennsylvania, alleges that, from at least 2017 through 2021, Citadel failed to provide mortgage lending services to majority-Black and Hispanic neighborhoods in and around Philadelphia and discouraged people seeking credit in those communities from obtaining home loans. Citadel’s home mortgage lending was focused disproportionately on white areas around Greater Philadelphia. Peer lenders generated mortgage applications in predominately Black and Hispanic neighborhoods at nearly three times the rate of Citadel and originated mortgage loans in these areas at more than three times the rate of Citadel.

The complaint further alleges that Citadel’s branches are located almost exclusively in majority-White neighborhoods, with no branches in Philadelphia, which contains more than 75% of the majority-Black and Hispanic neighborhoods and 34% of the total population in Citadel’s market area.

Under the proposed consent order, which is subject to court approval, Citadel has agreed to invest $6.52 million to increase credit opportunities for communities of color in and around Philadelphia. Specifically, Citadel will:

• Invest at least $6 million in a loan subsidy fund to increase access to home mortgage, home improvement and home refinance loans for residents of majority-Black and Hispanic neighborhoods in Philadelphia;
• Spend at least $250,000 on community partnerships to provide services related to credit, consumer financial education, homeownership and foreclosure prevention for residents of predominantly Black and Hispanic neighborhoods in Citadel’s market area;
• Spend at least $270,000 for advertising, outreach, consumer financial education and credit counseling focused on predominantly Black and Hispanic neighborhoods in Philadelphia;
• Open three new branches in predominantly Black and Hispanic neighborhoods in Philadelphia; and
• Hire a community lending officer who will oversee the continued development of lending in communities of color.

Citadel also agreed to retain independent consultants to enhance its fair lending program and better meet the communities’ needs for mortgage credit. The credit union will conduct a community credit needs assessment, evaluate its fair lending compliance management systems, and conduct staff trainings.

With assets of approximately $6 billion, Citadel is headquartered in Pennsylvania and operates 24 branches in its market area of Greater Philadelphia, which includes Bucks, Chester, Delaware, Lancaster, Montgomery and Philadelphia Counties. Citadel is the second largest credit union in the region and has over 263,000 members. Citadel cooperated with the Justice Department’s investigation.

In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced 14 redlining resolutions and secured over $144 million in relief for communities of color that have been the victims of lending discrimination across the country. In March, Assistant Attorney General Clarke presented remarks to America’s Credit Unions’ Governmental Affairs Conference regarding the unique issues raised by redlining in the credit union industry.

A copy of the complaint and information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.

PHILADELPHIA, PA – The United States Department of Justice announced today that Citadel Federal Credit Union (Citadel) has agreed to resolve allegations that it engaged in a pattern and practice of lending discrimination by “redlining” predominantly Black and Hispanic neighborhoods in and around Philadelphia. If approved by the court, this redlining resolution would be the Justice Department’s first involving a credit union.

“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in certain communities or zip codes because of the race, color, or national origin of persons residing there. Under a proposed consent order filed today in federal court in conjunction with a complaint, Citadel has agreed to invest over $6.5 million to increase credit opportunities in neighborhoods of color in the Philadelphia metropolitan area. The proposed consent order also requires Citadel to establish three new branches in Black and Hispanic neighborhoods in Philadelphia over the course of five years.

In its complaint, the United States alleges that from at least 2017 through 2021, Citadel provided mortgage lending services to majority-Black and Hispanic neighborhoods in and around Philadelphia at rates far below that of comparable lenders. During the same time frame, peer lenders generated mortgage applications in predominantly Black and Hispanic neighborhoods at nearly three times the rate of Citadel and originated mortgage loans in those neighborhoods over three times as often.

The United States alleges that Citadel disproportionately focused its outreach, marketing, and home mortgage lending on the predominately White suburbs in the Greater Philadelphia region. All but one of Citadel’s full-service branches are in majority-White neighborhoods, and no branches are in Philadelphia, which contains over 75% of the majority-Black and Hispanic neighborhoods and 34% of the total population in Citadel’s market area.

Under the proposed consent order, Citadel agrees to invest at least $6 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance loans for residents of majority-Black and Hispanic neighborhoods in Philadelphia. Citadel will spend an additional $250,000 on community partnerships to provide credit, consumer finance, homeownership, and foreclosure prevention services to the residents of these areas, and at least $270,000 on advertising, consumer financial education, and credit counseling. Citadel will also open three new branches in predominantly Black and Hispanic neighborhoods in Philadelphia and will hire a community lending officer to oversee the continued development of lending in communities of color.

According to United States Attorney Jacqueline C. Romero, the proposed resolution presents a tremendous opportunity for long-underserved Philadelphia residents. “For generations, Philadelphia’s communities of color have lacked equal access to the credit needed for homeownership. We know that redlining has a devastating impact on a family’s finances and future, and results in economic and other inequalities that plague our communities for decades,” said Romero. “We also know the transformational change that can occur when credit is made available to underserved residents, and particularly when lenders, like Citadel, establish branch locations in these neighborhoods.”

“This redlining settlement marks the Justice Department’s very first resolution involving a credit union, making clear our intent to hold all types of lenders accountable for their role in modern-day redlining,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “There are well over 4,600 credit unions across America, all subject to federal laws that prohibit redlining and lending discrimination. Redlining and other forms of lending discrimination harm communities of color and families by denying them an equal opportunity to access credit, attain the dream of homeownership and build generational wealth. This settlement will expand investment in Black and Hispanic communities, particularly in Philadelphia, and increase opportunities for homeownership and financial stability. Residents of communities harmed by unlawful redlining will finally be able to access credit services from Citadel in their own neighborhoods, including at the new branches required by the settlement.”

The settlement is part of the U.S. Attorney General’s Combating Redlining Initiative, announced in October 2021 and aimed at coordinating agencies’ enforcement efforts to address this persistent form of discrimination. The Initiative expands the Justice Department’s reach by strengthening partnerships with U.S. Attorney’s Offices and other federal and state agencies across the country. Since 2021, the department has announced 14 redlining resolutions and secured over $144 million in relief for communities of color that have been the victims of lending discrimination across the country.

Assistant U.S. Attorney Bryan C. Hughes, Assistant U.S. Attorney Paul Kaufman (now with the District of New Jersey), Deputy Civil Chief for Civil Rights Lauren DeBruicker, and former Investigator Jeffrey Braun handled this matter for the U.S. Attorney’s Office for the Eastern District of Pennsylvania, in collaboration with attorneys from the Justice Department’s Civil Rights Division. Citadel cooperated with the Justice Department’s investigation and worked with the department to resolve the redlining allegations.

Information about the Justice Department’s fair lending enforcement work can be found here. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.

PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Teva Pharmaceuticals USA, Inc., a generic pharmaceutical manufacturer located in Parsippany, New Jersey, has agreed to pay $25 million to resolve its alleged liability under the False Claims Act for conspiring to fix prices and allocate markets for two generic drugs. This settlement is one part of an overall resolution, for a total payment of $450 million, based on Teva’s ability to pay, of allegations of this and another kickback arrangement.

The government alleged that, between May 1, 2013 and December 31, 2015, Teva paid and received compensation prohibited by the Anti-Kickback Statute through arrangements on price, supply, and allocation of customers with other pharmaceutical manufacturers for two generic drugs manufactured by Teva, pravastatin and tobramycin. Pravastatin is widely used to treat high cholesterol and triglyceride levels, and tobramycin is an antibiotic.

“Kickback arrangements by pharmaceutical companies escalate the costs for critical drugs used by our citizens and federal health care programs,” said U.S. Attorney Romero. “My office is proud to work with the rest of the Department of Justice and our investigative partners to enforce federal laws prohibiting kickback arrangements. We will continue to take action to lower the drug costs for our country and its health care programs supporting senior citizens, our military service members, and others.”

“Kickbacks designed to induce referrals or purchases of healthcare goods or services distort physician and patient decision-making, thwart competition, and bypass controls put in place to protect federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The Department is committed to pursuing all those who engage in kickback violations, including drug manufacturers, to ensure that these federal health care programs continue to serve the interests of taxpayers and program beneficiaries.”

“Conspiring to raise prices on generic medications is illegal and could prevent patients from being able to afford their needed prescription drugs. Americans have the right to purchase generic drugs set by fair and open competition, not collusion,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to investigate allegations of health care fraud that put the public and the Medicare program at risk.”

“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General, seeks to protect the integrity of TRICARE, the healthcare system for U.S. military members and their dependents,” said Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “When pharmaceutical corporations artificially inflate prices, they place an unnecessary financial burden on the TRICARE program. The settlement agreement announced today demonstrates our commitment to partner with investigative agencies and the Department of Justice, including the Civil Division and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, to combat healthcare fraud.”

The Anti-Kickback Statute prohibits companies from receiving or making payments in return for arranging the sale or purchase of items such as drugs for which payment may be made by a federal health care program. These provisions are designed to ensure that the supply and price of health care items are not compromised by improper financial incentives. This settlement reflects the important role of the False Claims Act to ensure that the United States is fully compensated when it is the victim of kickbacks paid to further anticompetitive conduct.       

Teva previously entered into a deferred prosecution agreement with the Department’s Antitrust Division to resolve related criminal charges. Teva agreed to pay a criminal penalty of $225 million based on its ability to pay and admitted to agreeing with competitors to refrain from submitting bids and offers to sell drugs to certain customers. The civil settlement payment announced today is in addition to the criminal penalty paid by the company.

This civil settlement is the seventh resolution arising from the Department’s investigation of price fixing by generic drug manufacturers and was handled by the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Commercial Litigation Branch (Fraud Section) of the Department of Justice’s Civil Division, with support from HHS-OIG, the Defense Health Agency Program Integrity Office, DCIS, and the Office of Inspector General for the Department of Veterans Affairs.

The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The matter was handled by Assistant U.S. Attorneys Landon Y. Jones III, Rebecca S. Melley, and Anthony D. Scicchitano of the U.S. Attorney’s Office, along with Senior Trial Counsel Jennifer L. Cihon and Senior Litigation Counsel Laurie A. Oberembt of the Civil Division.

Except for those facts admitted to by Teva in the deferred prosecution agreement, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability. 

El Departamento de Justicia anunció hoy que Citadel Federal Credit Union (Citadel) ha acordado pagar más de $6.5 millones para resolver las acusaciones de haber incurrido en un patrón o una práctica de discriminación crediticia al practicar la exclusión financiera en barrios de mayoría negra e hispana en Philadelphia y sus alrededores. Este acuerdo histórico es el primer acuerdo sobre la exclusión financiera que el Departamento de Justicia ha conseguido con una cooperativa de crédito, lo que lo convierte en un logro histórico para la Iniciativa para Combatir la Exclusión Financiera.

La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color o el origen nacional de los residentes de esas comunidades.

“Este acuerdo sobre la exclusión financiera marca la primera resolución del Departamento de Justicia que involucra una cooperativa de crédito, lo que deja claro nuestra intención de hacer responsables a todos los tipos de prestamistas por su papel en la exclusión financiera moderna,” comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Hay más de 4,600 cooperativas de crédito en los Estados Unidos, cada una de las cuales está sujeta a leyes federales que prohíben la discriminación crediticia y la exclusión financiera. La exclusión financiera y otras formas de discriminación crediticia causan daño a las comunidades de color y a las familias al negarles la igualdad de oportunidades para acceder al crédito, lograr el sueño de ser propietarios de una casa y generar riqueza generacional. Este acuerdo ampliará la inversión en comunidades negras e hispanas, especialmente en Philadelphia, y mejorará las oportunidades de ser propietario de una casa y de alcanzar la estabilidad financiera. Los residentes de comunidades perjudicadas por la exclusión financiera ilegal finalmente podrán acceder a los servicios crediticios de Citadel en sus propios barrios, incluso en las nuevas sucursales requeridas por el acuerdo.”

“Durante generaciones, las comunidades de color de Philadelphia han carecido de acceso igualitario al crédito necesario para ser propietarios de casa. Sabemos que la exclusión financiera tiene un impacto devastador en las finanzas y el futuro de una familia, y resulta en desigualdades económicas y de otro tipo que atormentan a nuestras comunidades durante décadas,” afirmó Jacqueline C. Romero, la Fiscal Federal para el Distrito Este de Pennsylvania. “También somos conscientes del cambio transformador que puede ocurrir cuando el crédito se pone a disposición de los residentes desfavorecidos, y particularmente cuando los prestamistas, como Citadel, establecen sucursales en estos barrios.”

La demanda del Departamento de Justicia, que se presentó hoy en el Distrito Este de Pennsylvania, alega que, desde al menos el 2017 hasta el 2021, Citadel no proporcionó servicios de préstamos hipotecarios a barrios de mayoría negra e hispana en Philadelphia y sus alrededores, y desalentó a las personas que buscaban crédito en esas comunidades de obtener préstamos hipotecarios. Los préstamos hipotecarios de Citadel se centraron desproporcionadamente en áreas blancas de la zona metropolitana de Philadelphia. Otros prestamistas generaron solicitudes de hipoteca en barrios de mayoría negra e hispana a casi el triple de la tasa de Citadel y originaron préstamos hipotecarios en estas áreas a más del triple de la tasa de Citadel.

Más aún, la demanda alega que las sucursales de Citadel se encuentran casi exclusivamente en barrios de mayoría blanca, sin sucursales en la Ciudad de Philadelphia, que contiene más del 75% de los barrios de mayoría negra e hispana y el 34% de la población total en el área de mercado de Citadel.

En virtud de la orden de consentimiento propuesta, que queda sujeta a la aprobación del tribunal, Citadel ha acordado invertir $6.52 millones para aumentar las oportunidades crediticias para las comunidades de color en Philadelphia. En concreto, Citadel:

• Invertirá al menos $6 millones en un fondo de subsidios para préstamos para aumentar el acceso a préstamos hipotecarios, mejoras en la vivienda y préstamos de refinanciamiento residencial para residentes de barrios de mayoría negra e hispana en Philadelphia y sus alrededores;
• Gastará al menos $250,000 en el desarrollo de asociaciones comunitarias para la prestación de servicios relacionados con el crédito, la educación financiera del consumidor, la adquisición de viviendas y la prevención de ejecuciones hipotecarias para residentes de barrios de mayoría negra e hispana en el área de mercado de Citadel;
• Gastará al menos $270,000 en publicidad, proyección comunitaria, educación financiera al consumidor y asesoramiento de crédito centrado en barrios de mayoría negra e hispana en Philadelphia;
• Abrirá tres sucursales nuevas en barrios de mayoría negra e hispana en Philadelphia; y
• Contratará a un director de préstamos comunitarios que supervisará el desarrollo continuo de préstamos en comunidades de color.

Asimismo, Citadel ha acordado contratar a consultores independientes para mejorar su programa de préstamos justos y satisfacer mejor las necesidades de crédito hipotecario de las comunidades. La cooperativa de crédito llevará a cabo una evaluación de las necesidades crediticias comunitarias, evaluará sus sistemas de gestión de cumplimiento con las leyes de préstamos justos y llevará a cabo capacitaciones del personal.

Con activos de aproximadamente $6 mil millones, Citadel tiene su sede en Pennsylvania y opera 24 sucursales en su área de mercado por la zona metropolitana de Philadelphia, que incluye los condados de Bucks, Chester, Delaware, Lancaster, Montgomery y Philadelphia. Citadel es la segunda cooperativa de crédito más grande de la región y cuenta con más de 263,000 miembros. Citadel cooperó con la investigación del Departamento de Justicia.

En octubre del 2021, el Fiscal General Garland y la Fiscal General Auxiliar Clarke lanzaron la Iniciativa contra la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley para abordar esta forma persistente de discriminación contra las comunidades de color. Desde el año 2021, el Departamento ha anunciado 14 casos de exclusión financiera y ha obtenido más de $144 millones por concepto de compensación para comunidades de color que han sido víctimas de discriminación crediticia por todo el país. En marzo, la Fiscal General Auxiliar Clarke presentó comentarios en la Conferencia de Asuntos Gubernamentales de las Cooperativas de Crédito de los Estados Unidos sobre los problemas únicos planteados por la exclusión financiera en la industria de las cooperativas de crédito.

Puede encontrar una copia de la demanda e información sobre la aplicación de las leyes de préstamos justos del Departamento de Justicia en www.justice.gov/fairhousing. Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Malik Lewis, 33, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge John F. Murphy to 11 years in prison, 5 years’ probation, 2,500 fine and 400 special assessment for drug and firearm offenses.

Lewis was charged by information in April 2023 with two counts of distribution of 50 grams or more of methamphetamine, possession with the intent to distribute 50 grams or more of methamphetamine, cocaine base, and marijuana, and unlawful possession of a firearm by a felon. He pleaded guilty to the charges against him in May 2023.

In April of 2021, the FBI had developed information that showed Lewis was selling pound quantities of methamphetamine and illegal firearms throughout the Mayfair section of Philadelphia.

From April to June of that year, the FBI purchased multiple pounds of methamphetamine directly from Lewis. Ultimately, members of the FBI conducted a search warrant on Lewis’ residence and recovered approximately six pounds of methamphetamine, crack cocaine, bulk marijuana, and a Glock firearm with a 30-round extended magazine. 

“Malik Lewis and others profiting from the drug trade here have no regard for the harm they do to our community,” said U.S. Attorney Romero. “Getting illicit drugs and illegal guns off the street makes the city of Philadelphia safer. That’s why my office and the FBI work together every day to build and prosecute these cases.”

“Today’s sentencing sends a strong message to those who would sell drugs and illegal firearms in our communities – you will be held accountable for your crimes,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI and our partners at the U.S. Attorney’s Office will not cease in our efforts to stop such individuals from endangering our communities.”

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Everett Witherell.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Nicole K. Schuster, 32, of Naples, Florida was sentenced to one year and one day in prison and ordered to pay a $4,000 fine by United States District Court Judge Paul S. Diamond for unlawfully disclosing to one company the confidential contractor bid, proposal, and source information of another company.

Schuster was a mechanical engineer and “project lead” employed by the United States Department of the Navy (“the Navy”) at the Naval Foundry and Propeller Center in Philadelphia, Pennsylvania (the “NFPC”). The NFPC’s primary mission was to design, manufacture, and repair submarine propellers. In her role with the Navy, Schuster served as a project lead for several multi-million-dollar projects at the NFPC supporting both Columbia Class and Virginia Class naval submarines.

On January 22, 2024, Schuster pleaded guilty to the unlawful disclosure charge in a criminal information that was filed on September 25, 2023. According to that charge, in 2019, Schuster began working as the project lead on a solicitation for a procurement contract for a submarine propeller-making machine known as a VTC. During the contracting and bidding process, Schuster favored one company, identified in the information as “Company 1,” over other competing companies. Schuster urged her superiors to make the contract for this VTC a “sole source” contract for Company 1. That is, she requested that the contracting process should be established in a manner that would ensure that Company 1 would be awarded the procurement contract. The NFPC and DLA agreed to favor Company 1 in this process but did not agree to prevent other companies from pursuing the contract. Rather, they established a process that allowed other contractors to submit information and compete for the contract.

Schuster demonstrated her favoritism for Company 1 in September 2019 when she sent a WhatsApp message to a representative of Company 1 expressing her “loyalty” to Company 1 and attaching to the message Company 2’s confidential and proprietary contractor bid, proposal, and source selection information for its VTC. In a text message to her associate, Schuster expressed that she would be extremely upset if Company 2 obtained the contract for the VTC because she said “it’s not for them,” and that she would “ruin” Company 2 if they interfered with her efforts to help Company 1 obtain the contract. The documents that Schuster provided to this representative of Company 1 were marked “SOURCE SELECTION INFORMATION,” “OFFICIAL USE ONLY,” and “[Company 2] Proprietary information.” The documents included cost and pricing data and proprietary information about manufacturing processes and techniques. This disclosure gave Company 1 a competitive advantage over Company 2 and other companies seeking to obtain the VTC contract.

In April 2020, the procurement contract for the VTC was awarded to Company 1 for a total price of $15,254,608.

Schuster's sentence is evidence that we will hold accountable those who enrich themselves at the expense of our armed forces; this kind of corruption impacts us all: the military, taxpayers, and legitimate businesses," said U.S. Attorney Romero. We continue to ask for assistance in identifying and reporting those engaged in this type of activity, as it bolsters the ability to maintain integrity in the procurement process."

“Investigating individuals who corrupt the integrity of Department of Defense (DoD) procurement is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS). We must help to ensure that the DoD contracting process remains fair and competitive," said Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with the Department of Justice and our law enforcement partners to hold accountable those who misuse their official positions.”

“It is essential that government procurements are unbiased and devoid of unlawful influence and corruptive practices,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS and our investigative partners are committed to thoroughly investigating any person or entity that would disrupt the fair and open competition necessary to ensure our warfighters are fully equipped for superiority on the battlefield.”

The case was investigated by the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service and the U.S. Naval Criminal Investigative Service, Economic Crimes Field Office, and is being prosecuted by Assistant United States Attorney Louis D. Lappen.

PHILADELPHIA – The United States has reached a settlement with Aqua Services, Inc. (“Aqua”), a company providing water and wastewater utility services to more than 3 million people in eight states, including Pennsylvania, announced Jacqueline C. Romero, United States Attorney for the Eastern District of Pennsylvania. The settlement ensures equal access to Aqua’s customer service telephone line for individuals with disabilities pursuant to the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public.

The agreement resolves an ADA complaint filed with the Department of Justice by an Aqua customer alleging that Aqua failed to effectively communicate with him when he called its customer service telephone line. The complainant, who is nonspeaking due to a disability, uses a relay calling service to communicate by telephone. The complainant alleged that on several occasions when he called Aqua’s customer service line to address a billing issue, the customer service representatives who answered the phone hung up on him rather than accept the relay call. As a result, he alleged, he was unable to promptly resolve his billing issue.

The ADA requires that businesses communicate with people with disabilities — including people who have vision, hearing, or speech disabilities — as effectively as they communicate with people without disabilities. This can include communicating through auxiliary aids and services such as telephone relay services.

Under the agreement, Aqua will designate an ADA Coordinator, implement a telephone number and email address to receive comments and complaints relating to access to Aqua’s customer service line, and adopt and publish an Effective Communications Policy for effectively communicating with people with disabilities. Aqua will also pay a monetary sum to the complainant.

“Many individuals who have hearing or speaking disabilities use relay services to communicate by phone,” said U.S. Attorney Romero. “Businesses must ensure that their employees are prepared to communicate effectively with customers who use such services. My office appreciates Aqua’s cooperation during this investigation and its commitment to effective communication with its customers who have disabilities.”

The U.S. Attorney’s Office for the Eastern District of Pennsylvania is committed to investigating alleged violations of the ADA. Those interested in learning more about obligations under the ADA may access https://www.ada.gov/ or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at https://civilrights.justice.gov/. This matter was handled by Assistant U.S. Attorney Erin E. Lindgren.

The claims resolved by the settlement are allegations only and there has been no determination of liability. 

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Gregory Thomas White Jr, DC and Healing Place Medical, P.C. (collectively, “Healing Place”) agreed to pay $170,000 to resolve liability under the False Claims Act for the alleged improper billing of “Sanexas” devices. This settlement is the latest action in the national investigation into the improper billing involving the RST Sanexas neoGEN-Series device (“Sanexas”).

Healing Place is a chiropractic clinic that principally used Sanexas treatment for patients diagnosed with edema and other forms of acute and chronic pain. Sanexas is an electric stimulation device marketed by RST Sanexas, Inc. (“RST”) to treat various forms of pain and other medical conditions. It consists of a large central unit and electrical leads that are temporarily affixed to the area being treated.

Patients typically received treatment on an outpatient basis and received two treatments per week for 12 weeks, for a total of approximately 24 treatments. Treatment times generally lasted approximately 30 to 40 minutes. In conjunction with Sanexas treatment, the clinics injected patients with a vitamin blend.

White is a chiropractor and owner of the Healing Place, which operated at 1600 Horizon Drive #123, Chalfont, Pa. The United States contends that Healing Place submitted approximately 27,121 claims to Medicare for payment under various codes for Sanexas treatment and vitamin injections, TM Flow testing, and ENFD testing, during the relevant time period, all of which were non-reimbursable.

The United States contends that Medicare did not permit reimbursement of Sanexas or vitamin injections used in conjunction with Sanexas in the way in which Healing Place administered them. In particular, National Coverage Determination 160.7.1 states: “Electrical nerve stimulation treatments furnished by a physician in his/her office, by a physical therapist or outpatient clinic are excluded from coverage by § 1862(a)(1) of the Act.”

Similarly, Local Coverage Determination (“LCD”) 35222 reinforces that “[t]he use of electrostimulation alone for the treatment of multiple neuropathies or peripheral neuropathies caused by underlying systemic diseases is not medically reasonable and necessary.” Other LCDs contain the same or similar statements, such as L35456, L35457, L37642, and L36850.

The United States Food and Drug Administration cleared Sanexas as substantially equivalent to a transcutaneous electrical nerve stimulator (“TENS”) on or around January 24, 2003. Sanexas treatment was not FDA-cleared for use in combination with vitamin injections, the vitamin blend was not FDA-approved, and the vitamin blend was produced in bulk, rather than prescribed for individual patients.

The United States contends that vitamin injections used in conjunction with Sanexas treatment as Healing Place administered them do not fall under the limited coverage available for prescription drugs under Medicare Part B. The LCDs noted above reinforce that vitamin injections that act as nerve blocks are not medically reasonable and necessary.

Healing Place also submitted Medicare claims for testing used in conjunction with electric stimulation treatment – ENFD testing and/or TM Flow testing. ENFD testing involves performing a punch biopsy on patients to purportedly evaluate nerve damage that could be treated with the Sanexas device. ENFD testing was also conducted after Sanexas treatment, purportedly to evaluate whether there has been an improvement to nerve health. The Sanexas device, however, is not FDA-cleared for healing or regrowing nerves. In addition, the United States alleges that it was not medically reasonable or necessary to conduct additional testing related to electrical stimulation treatment, which was not covered by Medicare in the way in which Healing Place administered it.

Healing Place also offered “TM Flow” testing to screen new patients for various diseases, which, if identified, could purportedly support the need for electric stimulation treatment using the Sanexas device. The TM Flow device conducts various autonomic nervous system (“ANS”) and vascular function assessments. The applicable LCD includes 10 limitations, which the United States contends render ANS testing not medically reasonable and necessary and not covered, including “patient screenings without signs or symptoms of autonomic dysfunction,” testing where “results are not used in clinical decision-making and patient management,” and testing without the competence in the Autonomic Disorders medical subspecialty. See L35395. LCDs L23236, L33609, and L35124 contain similar limitations. Contrary to these limitations, however, Healing Place used it to screen patients during an initial visit, offered treatment with the Sanexas device regardless of the results of TM flow testing, and lacked the necessary training to perform and interpret ANS testing.

“Our office continues to lead the national charge to hold alleged fraudsters accountable for improper Sanexas billing,” said U.S. Attorney Romero. “We will continue working closely with our partners at CMS’s Center for Program Integrity, the Department of Health and Human Services Office of the Inspector General, and sister U.S. Attorney’s Offices around the country to hold accountable any other providers who inappropriately billed for these devices and caused false claims to be submitted.”

“Accurately billing for services provided to Medicare enrollees is required of all health care providers participating in the program,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG, CMS’s Center for Program Integrity, and the U.S. Attorney’s Office will continue to evaluate and pursue allegedly inaccurate billings of Sanexas and similar devices.”

Prior DOJ press releases related to the Sanexas national initiative include:

• https://www.justice.gov/usao-edpa/pr/two-doctors-and-their-medical-practice-pay-more-181000-resolve-false-claims-act
• https://www.justice.gov/usao-edpa/pr/us-attorney-announces-two-additional-civil-settlements-part-national-effort-combat

This matter was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. The investigation and settlement were handled by Special Assistant U.S. Attorney Eric S. Wolfish, Civil Division Chief Gregory B. David, and Auditors Dawn Wiggins and Andrew Schobert.

The settled civil claims are allegations only. There has been no determination of civil liability.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Ahmed Hassan, 70, of Collegeville, Pennsylvania, was convicted today by a federal jury on 22 counts of wire fraud arising from Hassan’s misuse of his position as a federal employee of the Department of Veterans Affairs (“the VA”) to defraud the agency of nearly $1 million over a seven-year period.

As proven at trial, Hassan was a trusted supervisory engineer at the Veterans Affairs Medical Center (“VAMC”) in Philadelphia. In that position, Hassan was responsible for all mechanical and large HVAC systems at VAMC and was further charged with overseeing and implementing contracts in his area of responsibility.

From approximately 2013 through October 2017, Hassan schemed to defraud the VA by drafting and submitting for payment, false invoices of a company called HT Mechanical. Unbeknownst to VAMC management, and in violation of Hassan’s duties to the VA, HT Mechanical was nothing but a shell that Hassan had secretly set up with his paramour, Lynn Hanrahan[1] — a social worker with no knowledge of, or expertise in, HVAC or mechanical systems — in order to carry out the scheme.

For years, the defendant made up fake work, drafted false invoices on HT Mechanical letterhead, submitted them for payment to the VA under the VA purchase card program and lied to the VA, claiming that the work had been done, when the so-called jobs did not exist. and no work was done. After the VA made payment to HT Mechanical on the defendant’s say so, Hanrahan returned money to the defendant, either by check or by giving the defendant envelopes of cash.

Hassan is scheduled to be sentenced on January 15, 2025. He faces a maximum possible sentence of up to 20 years in prison for each count on which he was convicted.

“For the better part of a decade, for his own benefit, Ahmed Hassan siphoned almost a million dollars from Philadelphia’s VA Medical Center,” said U.S. Attorney Romero. “In misusing his position to do so, he betrayed his colleagues, U.S. taxpayers, and, most egregiously, the veterans the VA serves. My office and our partners will bring to justice anyone padding their pockets like this at the federal government’s expense.”

The case was investigated by Department of Veterans Affairs Office of Inspector General and the FBI and is being prosecuted by Special Assistant United States Attorney Megan Curran and Assistant United States Attorney Mary Crawley.

[1] Hanrahan was charged in a related scheme, pleaded guilty, and is awaiting sentencing.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Amir Harvey, 24, of Philadelphia, Pennsylvania, entered a plea of guilty today before United States District Court Judge Paul S. Diamond to Hobbs Act robbery, carjacking, and felon in possession of ammunition, in connection with the robbery of a commercial business and a carjacking, both in Northeast Philadelphia.

Harvey was arrested and charged by complaint in September of 2022 and then indicted on these charges in October of that year.

On September 9, 2022, at approximately 11 p.m., the defendant and three others approached the Hook and Reel restaurant, located at 9763 Roosevelt Boulevard. Upon encountering an employee of the restaurant outside, Harvey and the others forced him inside, ransacked the office, stole about $400 from the cash drawers, and fled.

In the early morning hours of September 19, 2022, Philadelphia police officers responded to a report of a robbery in progress on the 8900 block of Maxwell Place, where the victim reported that her car had just been stolen by an armed individual as she and her teenage daughter were about to leave for school.

The victim stated that around 6:15 a.m., she started her vehicle using an application on her cell phone. A short time later, she and her daughter exited their house and walked to the car parked in the front driveway, when they were approached by an armed individual, later identified as the defendant, who pointed a firearm, later found to be a replica, at their heads.

The defendant grabbed the victim’s keys and purse and sped away in her vehicle. The victim then used its location tracking feature on her cell phone app and informed police, who responded to that location on the 2000 block of Griffith Street, about 2½ miles from the victim’s home. Using neighborhood video surveillance footage, investigators traced the movement of the victim’s vehicle and the defendant to a nearby apartment complex.

“Amir Harvey ambushed a worker just trying to wrap up his shift, and a mom and daughter looking to start their day,” said U.S. Attorney Romero. “Robbing innocent people at gunpoint, even if the gun’s not real, is no game. It’s a serious crime — and an excellent way to earn an extended stay in federal prison. My office and our partners on the Philadelphia Carjacking Task Force will continue to make Philly safer, as we lock up violent criminals with regard for neither the law nor other people.”

“Violence against innocent Philadelphia victims — in this case a business employee, mother, and daughter — will not stand,” said Eric DeGree, Special Agent in Charge of the ATF Philadelphia Field Office. “ATF is on the frontline in the fight against violent crime, particularly carjackings and robberies. We hope this case deters those willing to use violence in our community. We will continue to work with our local, state, and federal partners to prevent and prosecute violent crime when it occurs.”

The swift action to investigate and federally charge this defendant is the work of the Philadelphia Carjacking Task Force, which comprises members of the U.S. Attorney’s Office Violent Crime Unit; the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Philadelphia Police Department. The goal of the Task Force is to stem the wave of armed carjackings and violent crimes through investigative and enforcement techniques meant to identify, and refer for federal prosecution, all who terrorize innocent victims through commission of these offenses within Philadelphia and surrounding areas.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Robert E. Eckert and Lauren E. Stram.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Kyle McLemore, 47, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Harvey Bartle III to 120 months in prison, three years of supervised release, and a $300 special assessment for selling illegal firearms from South Carolina on the streets of Philadelphia.

McLemore was one of seven defendants convicted for participating in a scheme to straw purchase nearly 60 firearms in South Carolina and traffic them up the “Iron Pipeline” to Philadelphia. Between approximately November 2020 and February 2021, McLemore worked closely with co-conspirator Terrance Darby in Philadelphia to place orders for firearms with co-conspirator Ontavious Plumer, who was incarcerated in a South Carolina prison. Plumer would then direct other co-conspirators to straw purchase firearms at gun stores in South Carolina and transport them to Philadelphia, where Darby, McLemore, and co-conspirator Cory Brookins would resell them.

McLemore started trafficking firearms with Darby just a few months after he was released on parole from a Pennsylvania state prison after serving 21 years for a 1999 murder conviction. While he was reselling illegal guns in Philadelphia, McLemore worked as a “youth advocate” at the NoMo (New Options More Opportunities) Foundation, an organization that provides children and teens with education, tutoring, mentoring, career readiness training, behavioral health counseling, and other services to reduce the factors that lead to gun violence.

McLemore was charged in a superseding indictment on March 6 of this year with conspiracy, dealing in firearms without a license, and possession of a firearm by a felon. He pleaded guilty to all three counts on May 8. Darby, Plumer, Brookins, and three other co-conspirators have also been convicted and sentenced for their roles in the conspiracy.

“Kyle McLemore sold dozens of guns from South Carolina on the streets of Philadelphia, while pretending to work to reduce gun violence on those same streets,” said U.S. Attorney Romero. “My office and the ATF will continue to target gun traffickers for federal prosecution – and federal prison time. Every illegal gun and unlawful seller we put out of commission makes our city that much safer.”

“McLemore knew all too well from his criminal history and community work that illegally trafficked firearms fuel the deadly violence in his community,” said ATF Special Agent in Charge Eric DeGree. “Stopping gun trafficking, which puts firearms in the hands of violent criminals and other prohibited people, is a top priority at ATF. We work tirelessly with our local, state and federal partners to dismantle trafficking operations and federally prosecute the criminals that endanger our communities.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorneys J. Jeanette Kang and Matthew T. Newcomer and Special Assistant United States Attorney Alexander B. Bowerman.

Philadelphia Man Sentenced to 16 Years in Prison for Committing Two Armed Carjackings Hours Apart

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Amir Wilson, 22, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Juan R. Sánchez to 192 months’ imprisonment and five years of supervised release for his role in two armed carjackings committed in Philadelphia in May 2021.

In December 2023, a federal jury convicted Wilson of conspiracy, two counts of carjacking, and using or carrying a firearm during a crime of violence.

During the first carjacking, on May 15, 2021, Wilson and his co-conspirators pulled alongside a man leaving for work, brandished guns, and demanded his car key while holding him at gunpoint. The group then fled in their vehicle and the victim’s stolen vehicle.

Hours later, at around 3 a.m. on May 16, 2021, Wilson and his co-conspirators pulled alongside two men who were leaving a graduation celebration for a friend. The carjackers again brandished guns, demanded the key to that victim’s vehicle, and fled the scene in the victim’s car. A short time later, Philadelphia police spotted the carjacked vehicle and attempted to stop it. The vehicle led police in a high-speed car chase, which ended with officers halting their pursuit for safety reasons. Police found the second victim’s car abandoned nearby, a short time later.

At approximately 5:15 p.m. that same day, Philadelphia police spotted the first victim’s vehicle. They attempted to stop the car, but it fled from police, leading them on another chase. Police caught up to the car after it struck another vehicle and crashed through a fence in North Philadelphia. Wilson fled from the car on foot and was apprehended thereafter on scene.

“These gunpoint carjackings were terrifying for the victims, who were targeted out of nowhere while just going about their lives,” said U.S. Attorney Romero. “My office and our partners on the Carjacking Task Force won’t stand for these senseless acts of violence and we’re using every tool we’ve got to bring the criminals responsible to justice, as Amir Wilson now knows. Today’s sentence keeps him off the street for quite a while and our community is safer, as a result.”

“Carjacking is a dangerous federal crime that will land you in federal prison,” said ATF Special Agent in Charge Eric DeGree. “This perpetrator threatened his victims with a gun, and twice recklessly raced the car he stole, endangering the neighborhood until he finally crashed it. The ATF Philadelphia Field Division works diligently with the Philadelphia Carjacking Task Force to solve cases using ATF’s unique forensic and investigative tools. Thanks to our cooperative efforts, this violent criminal has been taken off Philadelphia’s streets, making our communities that much safer.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Martin E. Howley, Jr. and Priya T. De Souza.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Maneesh Ailawadi, MD, has agreed to pay $45,000 plus interest to resolve False Claims Act allegations that he caused the submission of false claims by submitting inappropriate claims to Medicaid and Medicare by improperly billing esophagogastroduodenoscopies (“EGDs”) on bariatric patients at the former Steward Easton Hospital in Easton, Pennsylvania.

EGDs are procedures that examine the lining of the esophagus, stomach, and the first part of the small intestine – the duodenum. These are performed to identify symptoms that may be new, cannot be explained, or are not responding to treatment. The findings from an EGD can help surgeons decide on the most appropriate bariatric procedure and follow up care.

Ailawadi, a bariatric and general surgeon, had privileges to perform bariatric surgeries and EGDs at Steward Easton Hospital. The government alleges that Ailawadi caused the submission of false claims for payment to both Medicaid and Medicare from January 1, 2019, to March 31, 2020, arising from Ailawadi improperly billing EGD procedures using CPT Code 43239 without reduced service modifier 52 when the duodenum was deliberately not examined. According to the United States, these EGD procedures were only partially completed to save time, although Ailawadi billed the federal healthcare programs as if they had been fully completed. By failing to enter the duodenum during the EGD procedure, Ailawadi allegedly was not able to identify any abnormalities, such as bleeding, growths, ulcers, or inflammation.

“The United States Attorney’s Office for the Eastern District of Pennsylvania places a high priority on enforcement in cases involving healthcare fraud,” said Romero. “We will hold accountable those who bill the Federal Healthcare Programs for procedures that are either not performed, or partially performed, as was the case here.”

“Today’s settlement shows our attention to and commitment to investigating allegations of fraud targeting Medicare and Medicaid, whether we need to examine the potential conduct of an individual physician or several parties in a complex scheme,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to partner with the United States Attorney’s Office to evaluate allegations brought under the False Claims Act to ensure the integrity of Federal Healthcare Programs.”

This settlement resolved a lawsuit filed under the False Claims Act in the U.S. District Court for the Eastern District of Pennsylvania by a former Steward Easton Hospital employee. Under the qui tam or whistleblower provisions of the False Claims Act, lawsuits like this one may be brought on behalf of the United States and the relator shares in any recovery by the government. The relator was represented in this case by Brian J. McCormick, Jr., of Ross Feller Casey, LLP.

This matter was investigated by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, in conjunction with the U.S. Department of Health and Human Services Office of Inspector General. The investigation and settlement were handled by Assistant U.S. Attorneys Deborah W. Frey and Eric D. Gill, Auditor George Niedzwicki, Fraud Examiner Frank O’Connor, and Paralegal Brendan Novak.

The claims resolved by this settlement are allegations only and there has been no determination of liability. 

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that Florida-based durable medical equipment supplier Electrostim Medical Services, Inc. (EMSI) and its Founder and Chairman Mario Garcia, Jr. have together agreed to pay, based on their limited ability to do so, $20 million to resolve allegations that they violated the False Claims Act by billing federal healthcare programs for excessive and medically unnecessary supplies associated with Transcutaneous Electrical Nerve Stimulation (TENS) and related devices.

TENS units provide short-term pain relief for many patients by delivering a low-voltage electrical current to the skin around an affected body part. Among the supplies necessary for TENS use are electrodes, which transmit the current, and rechargeable batteries, which power the device. In limited circumstances, healthcare providers may prescribe a wearable garment containing electrodes, such as a specialized glove or sock, to be used instead of traditional electrodes for appropriate patients. For extended use, electrodes and rechargeable batteries require occasional replacement.

When a physician prescribes a TENS or related device for home use, a durable medical equipment supplier, such as EMSI, receives a referral; provides the patient with a device kit, containing the device and all supplies necessary for approximately one month of use; and submits a single claim for reimbursement under a billing code for the kit. Garments are separately reimbursable under a different code. Federal healthcare programs vary in how they reimburse for replacement supplies. Some programs, such as Medicare, permit monthly billing for all medically necessary supplies at a fixed rate under a “bundled” supply code. Other programs—including TRICARE, the federal healthcare program for military members, retirees, and their families—permit itemized billing for all medically necessary supplies using “unbundled” supply codes.

The government alleges that, from at least 2018 through 2019, EMSI and Garcia profited by marketing its TENS and related electrical stimulation devices to beneficiaries of federal healthcare programs that reimbursed for unbundled supply codes—primarily TRICARE. EMSI typically billed TRICARE for replacement supplies on a monthly basis, including improperly billing for supplies during the first month despite knowing that patients received kits that contained all initial supplies. EMSI’s improper billing practices also included submitting claims for a monthly resupply of traditional electrodes for the same beneficiaries to whom it billed for a garment, despite knowing that patients with a garment did not need traditional electrodes.

According to the government, EMSI and Garcia knowingly executed this scheme without regard to medical necessity, resulting in false claims to federal programs. The result was that many TRICARE beneficiaries were forced to pay co-pays for excessive amounts of supplies they did not need or want.

“Durable medical equipment suppliers play a vital role in providing safe and effective medical devices to patients in need, and especially to our brave service members and their families,” said U.S. Attorney Romero. “EMSI and Garcia served their own financial interests over and above the medical needs of patients. This conduct will not be tolerated by my office. We will work tirelessly to hold businesses like this to account.”

Acting Special Agent in Charge Brian J. Solecki, with the Defense Criminal Investigative Service (DCIS) Northeast Field Office, echoed the U.S. Attorney’s remarks. “Protecting the integrity of TRICARE is a top priority of DCIS, the law enforcement arm of the Department of Defense Office of Inspector General,” he stated. “Medically unnecessary services and fraudulent expenses place a tremendous burden on the TRICARE program. We will continue to work with the U.S. Attorney’s Office and our law enforcement partners to ensure that individuals who engage in fraudulent activity, at the expense of the U.S. military, are held accountable for their actions.”

“The U.S. Department of Labor, Office of Inspector General remains committed to working with the U.S. Attorney’s Office and our law enforcement partners to investigate allegations involving medical provider billing schemes that target programs administered by the U.S. Department of Labor,” said Syreeta Scott, Special Agent in Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General.

This resolution concludes a years-long investigation by agents from DCIS, DOL-OIG, the Office of Personnel Management, Office of Inspector General (OPM-OIG), United States Postal Service, Office of Inspector General (USPS-OIG), and Department of Veterans Affairs, Office of Inspector General (VA-OIG).

Assistant United States Attorneys Charlene Keller Fullmer, Bryan C. Hughes, and former Assistant United States Attorney John T. Crutchlow handled the civil investigation and settlement, assisted by Auditor George Niedzwicki.

The claims asserted by the United States are allegations only. There has been no determination of liability.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Terrell Ashby, aka “Jason Brandon,” 26, of Williamsburg, Virginia, was sentenced today by United States District Court Judge Gerald McHugh to 36 months’ imprisonment and three years of supervised release, for engaging in a widespread “sextortion” scheme targeting young women across the country. Ashby was also ordered to pay $28,883.64 in restitution to the victims.

In April, the defendant pleaded guilty to two counts of cyberstalking (one count resulting in serious bodily injury) and two counts of extortion.

From at least February 2020 to December 2020, Ashby engaged in an extensive sextortion scheme affecting more than 100 young female victims. Targeting women based on their social media profiles, he systematically tricked the victims into participating in nude video chats with him or sending him explicit photos of themselves by promising to pay them $70,000. However, instead of paying the victims, he surreptitiously took screenshots during the nude video chats. Then he used the explicit images to extort the victims, threating to disseminate the images publicly unless they paid him.

Many victims succumbed and paid Ashby anywhere from $25 to $50. After receiving such extortion payments, he continued to haunt the victims – sometimes for months. He created numerous shaming profiles on social media using the victims’ identities and explicit photos. He stalked the victims, repeatedly sending them threatening messages that their “expose” page had been created and would be shared with their friends and contacts.

One of the victims who resided in the Eastern District of Pennsylvania was so distraught that she overdosed on her prescription medication and had to be rushed to the emergency room. Fortunately, she recovered from the incident, but was hospitalized for a period of time. During her hospitalization, Ashby continued to harass her, advertising her explicit images to others using various social media accounts. Even months later, Ashby continued his extortion of this victim.

“Terrell Ashby was absolutely relentless in terrorizing these women online,” said U.S. Attorney Romero. “It’s hard to understand what prompted, and then perpetuated, his criminal cruelty. At the end of the day, though, we don’t really need to know why he did it. It’s more important to know where he’s headed for doing so — and that’s federal prison, for the next several years of his life. That’s a measure of justice for his many victims, but it will never erase all the harm done.”

“We hope today's sentencing brings justice to the countless victims this defendant harassed, violated, and extorted,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI and our partners at the U.S. Attorney's Office encourage any victim of sextortion to report information to law enforcement so we can continue to identify, investigate and prosecute these crimes.”

The case was investigated by the Philadelphia FBI and is being prosecuted by Assistant United States Attorney Sarah Wolfe. The FBI and U.S. Attorney’s Office in the Eastern District of Virginia also provided assistance in the investigation.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Quadir Findley, 24, and Eric Dickerson, 24, both of Philadelphia, Pennsylvania, were convicted Monday at trial on one count each of carjacking for stealing a victim’s vehicle at gunpoint in the early hours of August 5, 2023. Findley was also convicted of using or carrying a firearm during and in relation to a crime of violence, and unlawful possession of a firearm by a felon. He was previously convicted of voluntary manslaughter, aggravated jury tampering, and drug distribution.

The defendants will be sentenced at a later date. Findley faces a mandatory minimum sentence of seven years in prison and a maximum possible sentence of life imprisonment. The maximum possible sentence for Dickerson is 15 years’ imprisonment.

“Don’t say anything or I’ll blow your ‘f---ing’ head off — those were Quadir Findley’s words to the carjacking victim he forced down to the ground at gunpoint,” said U.S. Attorney Romero. “No one should be terrorized like that and made to fear for their life. Findley and Eric Dickerson are violent criminals, exactly the type of offenders that the Philadelphia Carjacking Task Force is focused on, and we’ll continue to lock these carjackers up to make the city safer.”

“Carjacking is a serious federal crime that will not go unpunished,” said ATF Special Agent in Charge Eric DeGree. “ATF Philadelphia Field Division and the Philadelphia Carjacking Task Force will continue to ensure justice for the victims and make our communities safer through federal prosecution.”

The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Catherine Dos Santos and Priya De Souza.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Philip C. Pulley, 62, of Huntington Valley, Pennsylvania, entered a plea of guilty today before Chief United States District Court Judge Mitchell S. Goldberg on charges of falsely registering to vote, double voting, and election fraud. Pulley was charged with those violations by information last month.

In 2018, while registered to vote in Montgomery County, Pennsylvania, the defendant also registered to vote in Broward County, Florida.

In 2020, while already registered to vote in Montgomery County and Broward County, he registered to vote in Philadelphia County, Pennsylvania, using a false home address in Philadelphia and social security number.

In the 2022 general election, which included the election for United States Senator, Pulley voted in both Montgomery and Philadelphia counties.

“Ensuring that our elections are free and fair is critical to maintaining the public’s trust in the results,” said U.S. Attorney Romero. “My office and the FBI will continue to enforce the federal laws prohibiting election crimes like Mr. Pulley’s. We will investigate, prosecute, and hold these violators accountable.”

“Free and fair elections are the foundation of American democracy, and voter fraud undermines our democratic system,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Protecting the right to participate in this process remains a top priority for the FBI and our partners.”

Pulley is scheduled to be sentenced on January 9, 2025. On each count, he faces a maximum possible sentence of five years in prison, three years of supervised release, a $10,000 to $250,000 fine, and a $100 special assessment.

The case was investigated by the FBI and the Pennsylvania Attorney General’s Office and is being prosecuted by Assistant United States Attorneys Nancy E. Potts and Mark B. Dubnoff, with support from James Price, Senior Deputy Attorney General and Special Assistant United States Attorney.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Alan Kane, 59, of Jamison, Pennsylvania, and Derrell Johnson, 42, of Bensalem, Pa., were convicted Friday at trial for their actions linked to multiple fraud schemes.

A federal jury convicted Kane, an attorney, on two counts of bankruptcy fraud, one count of filing a false claim in a bankruptcy proceeding, and one count of making a false statement to the FBI.

Johnson was convicted on two counts of making a false statement to the FBI.

In January of this year, they and codefendant Jonathan Barger, 55, of Huntingdon Valley, Pa., the owner of a local plating company, were charged in a 12-count indictment that laid out three different fraud schemes: (1) a scheme to steal a house from a dead man’s family; (2) a scheme to defraud the City of Philadelphia out of property taxes that were due on the stolen house; and (3) a scheme to defraud Barger’s creditors through bankruptcy. Barger was implicated in all three schemes and pleaded guilty in June to all counts with which he was charged.

In a suit filed by the family to get their house back, Kane represented the party who had stolen the house, Joseph Ruggiero[1], and made repeated false statements supporting Ruggiero’s claim to good title, despite knowing that the deeds transferring the property away from the family were fraudulent. Kane also filed a false counterclaim against the family, claiming Barger’s company was entitled to more than $133,000 for work purportedly done to improve the house after it had been stolen.

After claiming in the state court suit that Ruggiero had good title to the house, Kane represented Ruggiero before the Social Security Administration and represented that Ruggiero did not own the house because the deeds were fraudulent. This was done to ensure Ruggiero would still receive SSI benefits.

Kane next filed a bankruptcy for Ruggiero, in which they claimed that Ruggiero had valid title to the house. The bankruptcy served to stay the family’s state court suit and prevent them from winning back the house. Kane then filed a false claim against Ruggiero in the bankruptcy, on behalf of Barger’s company, in an effort to steal some of the equity in the house for Barger in the event that Ruggiero lost the house to the family.

Johnson had helped with the preparation and filing of two fraudulent deeds used to steal the house, and also helped with the filing of a false claim with the City of Philadelphia to avoid a large tax bill that was due on the house. Johnson was paid with two checks for his services in helping steal the house and the tax avoidance scam. When Johnson was interviewed by the FBI, he lied, claiming that he didn’t recognize the fraudulent deeds and had nothing to do with the theft of the house. He also claimed the two checks he received were really meant to provide payment to another person.

Kane and Johnson are scheduled to be sentenced on January 28, 2025. Kane faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $1 million fine, and a $400 special assessment, and Johnson faces a maximum possible sentence of 10 years in prison, three years of supervised release, a $500,000 fine, and $200 special assessment.

“The fraud schemes in which the defendants were involved differed in their details,” said U.S. Attorney Romero. “But they shared a common goal: scheming, cheating, and lying for illicit financial gain — be it at the expense of a family, a city, or a creditor. We will continue to hold accountable those involved in misappropriating money like this or caught lying to the FBI.”

“White collar crimes, such as bankruptcy fraud, erode confidence in our financial systems,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI and our partners remain committed to protecting the integrity of our financial institutions and bringing to justice those who seek to deceive and defraud the public through devious financial schemes.”

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Mark Dubnoff and Special Assistant United States Attorney Hannah McCollum.
 

[1] Mr. Ruggiero died in June 2020.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Oksana Kredens, 60, of Philadelphia, Pennsylvania, was sentenced by United States District Judge Kelley Brisbon Hodge to 20 months in prison for her participation in a conspiracy to commit health care fraud. In addition to her term of incarceration, Kredens was ordered to serve a three-year period of supervised release, forfeit the sum of $81,000, and pay $66,869 in restitution, a $10,000 fine, and a $100 special assessment.

In October 2023, the defendant pleaded guilty to conspiring with various companies allegedly supplying home-based personal assistance services to certain Medicaid recipients in Philadelphia and other counties in the Eastern District of Pennsylvania. Although Medicaid managed care organizations were billed for personal assistance services, in reality, for some recipients those services were not rendered. Instead, the defendant worked out arrangements with the recipients to pay them cash instead of providing care.

Kredens then recruited people to be employed on paper by the companies allegedly providing the care. The company billed and was paid for services as though the services had been rendered by the fake employees; the recipients received cash instead of the services; and the fake employee recruits, who frequently had cash income sources, were able to earn W-2 income. The defendant collected cash from each recruited worker in the amount of his or her payroll check or deposit, paid the recipients from the collected cash and kept the difference for herself.

“Looting money from Medicaid strains the system and cheats all the taxpayers who fund it,” said U.S. Attorney Romero. “This sentence holds Oksana Kredens accountable for her criminal acts. Health care fraud costs this country billions of dollars each year. That’s why my office and are our partners are committed to fighting fraud, one case at a time.”

The case was investigated by the FBI and the Department of Health and Human Services Office of Inspector General and was prosecuted by Assistant United States Attorney Elizabeth Abrams.                                                                         

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jason Mattis, 51, of Philadelphia, Pennsylvania, was convicted yesterday following a jury trial of possessing an unregistered destructive device.

As laid out in a December 2022 indictment, on July 1 of that year, Mattis lit an incendiary device similar to a Molotov cocktail and threw it onto the porch of a residence in the Tacony section of Northeast Philadelphia. The weapon thrown by Mattis ignited and started a fire on the porch of the residence, as well as the sidewalk and the street in front. The incident occurred in the evening while the residents of the home were inside. The Bureau of Alcohol, Tobacco, Firearms and Explosives examined the evidence left at the scene and determined that the weapon used by the defendant was an incendiary bomb as that term is defined under federal law.

The defendant faces a maximum possible sentence of 10 years’ imprisonment, a $250,000 fine, up to three years of supervised release, and a $100 special assessment.

The case was investigated by the ATF’s Arson and Explosives Task Force, the Philadelphia Fire Department, and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Robert E. Eckert.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that a medical device distributor, Azon Medical, LLC (“Azon”), has agreed to pay $1,019,307.86 to resolve liability under the False Claims Act for allegedly causing improper billing of “P-Stim” devices, in this case branded as “AnSiStim.”

From approximately September 1, 2016, through October 26, 2016, Azon marketed and sold AnSiStim devices as reimbursable by Medicare under a code used for implantable neurostimulator devices, which are surgically implanted into the central nervous system or targeted peripheral nerves through procedures that are typically performed by a surgeon in an operating room. Azon’s customers applied AnSiStim devices using only an adhesive and a limited amount of needles, without any surgery or anesthesia, and without the assistance of a surgeon or an operating room.

AnSiStim is an electro-acupuncture device that, pursuant to manufacturer’s instructions, is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the AnSiStim device then provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for several days until its battery runs out, at which time the device is thrown away. Medicare does not reimburse for acupuncture or acupuncture devices like AnSiStim or other brand names of this device, including Stivax, NeuroStim, E-Pulse, and NSS-2 Bridge.

“Medicare paid Azon’s customers hundreds of thousands of dollars for improperly billed acupuncture devices,” said U.S. Attorney Romero. “Azon, through coverage advisories from Medical Contractors and communications from medical providers, was on notice that it was promoting and selling AnSiStim devices using false reimbursement advice. We will continue working with our partners to hold accountable distributors or marketers who carry out false billing schemes like this one.”

“Marketers and distributors need to provide accurate and truthful information regarding their devices’ eligibility for Medicare reimbursement,” said Special Agent in Charge Maureen Dixon for the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”). “HHS-OIG and the U.S. Attorney’s Office will continue to work together to ensure the integrity of the Medicare program by persistently following up on allegations of improper billings.”

This case was investigated by HHS-OIG. It was handled by Assistant U.S. Attorney Mansi G. Shah and former Assistant U.S. Attorney Matthew E.K. Howatt.

The settled civil claims are allegations only. There has been no determination of civil liability.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Matthew Gabriel, 25, of Philadelphia, Pennsylvania, pleaded guilty before United States District Court Judge Timothy J. Savage to two counts of interstate and foreign communication of a threat to injure.

According to the guilty plea agreement, the defendant had an online disagreement with a member of his fantasy football chat group. Gabriel learned that the member with whom he had a disagreement was going to study abroad in Norway in August of 2023. On August 3, 2023, Gabriel, while located in the Eastern District of Pennsylvania, submitted an anonymous “tip” through the internet to the Norwegian Police Security Service, also known as Politiets Sikkerhetstjeneste (“PST”), claiming that a member of his fantasy football chat group was going to carry out a mass shooting in Norway:

On August 15th a man named [Victim 1] is headed around oslo and has a shooting planned with multiple people on his side involved. they plan to take as many as they can at a concert and then head to a department store. I don’t know any more people then that, I just can’t have random people dying on my conscience. he plans to arrive there unarmed spend a couple days normal and then execute the attack. please be ready. he is around a 5 foot 7 read head coming from America, on the 10th or 11th I believe. he should have weapons with him. please be careful

Law enforcement in Norway and the United States spent hundreds of man-hours reacting to and investigating the threatened mass shooting over the course of a five-day period. When interviewed by the FBI, Gabriel admitted that he had submitted the “tip” to the PST and that the tip was false.

Then, on March 22, 2024, the defendant, again while located in the Eastern District of Pennsylvania, sent an email posing as another individual to the University of Iowa with the subject line “Possible Threat.” The email stated:

Hello, I saw this in a group chat I’m in and just want to make sure everyone is safe and fine. I don’t want anything bad to happen to any body. Thank you. A man named [PERSON 1] from I believe Nebraska sent this, and I want to make sure that it is a joke and no one will get hurt.

The email then contained a screenshot from the fantasy football group of a message that stated “Hello University of Iowa a man named [Victim 1] told me he was gonna blow up the school.”

Gabriel knew that the victim was not going to blow up the university and that the message had been sent in jest by another member of the fantasy football group regarding Gabriel’s prior threat. Despite knowing that there was no actual threat to the University of Iowa, the defendant transmitted the email knowing that the University of Iowa would view it as a true threat.

“While already being prosecuted for one hoax threat spurred by, of all things, his fantasy football league, Matthew Gabriel inexplicably decided to send another,” said U.S. Attorney Romero. “His actions were extremely disruptive and consumed significant law enforcement resources on two continents, diverting them from actual incidents and investigations. Hoax threats aren’t a joke or protected speech, they’re a crime. My advice to keyboard warriors who’d like to avoid federal charges: always think of the potential consequences before you hit ‘post’ or ‘send.’”

“You do not get to express emotions through violence or threats of violence,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “We thank our international partners for their assistance in bringing together this case. The FBI will continue to work alongside partners at all levels to protect our community.”

The defendant faces a maximum possible sentence of five years’ imprisonment, three years of supervised release, a $250,000 fine, and a $100 special assessment.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Danielle Bateman. Substantial assistance was provided by the Norwegian Police Security Service, also known as Politiets Sikkerhetstjeneste.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Gregory Fiocca, 32, of Philadelphia, Pennsylvania, entered a plea of guilty today before United States District Court Judge Jeffrey L. Schmehl to count one of a superseding information charging him with unlawfully demanding money as a union representative from a union employer, arising from the defendant’s demand to be paid for hours he did not work, in an amount not exceeding $1,000.

Fiocca is scheduled to be sentenced on January 7, 2025, and faces a statutory maximum sentence of one year imprisonment, one year of supervised release, a $10,000 fine, and a $25 special assessment.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorneys Frank Costello and Jason Grenell.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Holly Sadowski, 37, of Philadelphia, Pennsylvania, was arrested and charged by indictment on charges of Social Security fraud, wire fraud, and aggravated identity theft, for concealing the death of a woman, referred to as E.W., to steal her Social Security Administration (“SSA”) disability benefits totaling approximately $99,447.90.

The indictment alleges that the deceased woman’s remains were found buried beneath approximately six to eight feet of concrete in the basement of a Philadelphia home in which she had resided. According to the indictment, the last time E.W. was seen alive was on or about December 12, 2012. During her lifetime, E.W. received Disability Insurance Benefits from the SSA, due to an intellectual disorder.

The indictment further alleges that a DNA analysis of the human remains recovered from the concrete basement concluded that the remains were those of E.W. The Philadelphia Medical Examiner’s Office and a forensic anthropologist examined E.W.’s remains and concluded that the cause of death was blunt trauma to the head and neck and the manner of death was homicide. The forensic anthropologist estimated that E.W. died at least four years and up to ten years prior to the recovery of her remains.

Defendant Sadowski was indicted for accessing the deceased woman’s bank account and stealing her Social Security benefits for her own personal use. In furtherance of the scheme to defraud, Sadowski is charged with utilizing the deceased’s name, date of birth, and Social Security number to continue to access her bank account containing the Social Security benefit funds. Sadowski is charged with fraudulently obtaining and converting to her own use approximately $99,447.90 in SSA benefits payments intended for E.W.

If convicted, the defendant faces a maximum possible sentence of 107 years’ imprisonment, three years of supervised release, a $1,750,000 fine, and a $700 special assessment.

The case was investigated by the Social Security Administration Office of Inspector General and the Philadelphia Police Department and is being prosecuted by Special Assistant United States Attorneys Megan Curran and Laura J. Bradbury.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Rashad Johnson-Price, 20, of Philadelphia, Pennsylvania, was sentenced today to 135 months in prison, five years of supervised release, and a $300 special assessment by United States District Court Judge Michael M. Baylson, for two counts of carjacking and one count of carrying and using a firearm during, and in relation to, the commission of a crime of violence.

Johnson-Price was indicted on those violations in January of 2023. He pleaded guilty in September 2023, before the late Honorable Gene E.K. Pratter, admitting to carjacking a Lyft driver with an accomplice at approximately 4 a.m. on August 9, 2022, in the Frankford section of Philadelphia. As part of his plea, the defendant also admitted to carrying and using a firearm to commit this offense. Then, on August 13, 2022, the defendant and an accomplice carjacked an Uber driver at approximately 5 a.m. In both instances, the defendant and an accomplice requested a ride-share vehicle and when they arrived at or near their destination, they carjacked the vehicle from the ride-share driver at gunpoint.

“The victims in this case were just trying to make an honest living when two criminals threatened them at gunpoint,” said U.S. Attorney Romero. “It must have been terrifying, especially in the early hours of the morning, with few other people around. We and our partners on the Philadelphia Carjacking Task Force will not allow carjackers like Rashad Johnson-Price to commit these violent crimes with impunity. He’ll now be living his 20s behind bars.”

“Luring victims through their ride-share service to take their cars and livelihood at gunpoint was a particularly awful crime that will not go unpunished,” said Eric J. DeGree, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Philadelphia Field Division. “Working with our Philadelphia Carjacking Task Force partners, ATF Philadelphia Field Division applies our unique forensic and investigative tools to ensure justice for the victims and to make our communities safer.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Robert E. Eckert and Lauren E. Stram.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that William Powell, 65, of Philadelphia, Pennsylvania, was sentenced to 12 months in prison and three years of supervised release by United States District Court Judge Michael M. Baylson, for committing tax evasion. Powell was also ordered to pay $148,984 in restitution and a $50,000 fine.

The defendant was indicted in August 2023 and pleaded guilty to the charges against him in May.

Powell had been performing general contracting work and cleaning services for a federally funded nonprofit organization in the Philadelphia area, but in 2010, he married the executive director of this nonprofit. Conflict-of-interest rules prohibited the nonprofit from retaining Powell’s company due to the marriage.

To circumvent these rules, Powell used another person to take over the cleaning business as a nominal owner. Powell continued to run the business, provide the services, and receive compensation from the cleaning business. While hiding his operation of the cleaning service business from 2014 through 2018, Powell earned over $700,000 derived from payments made to the cleaning business by his wife’s non-profit entity.

Powell hid this income by receiving cash payments, using a debit card in the name of the cleaning business to pay his personal expenses, failing to file tax returns, and eventually lying to IRS agents when they interviewed him about his activity. By hiding over $700,000 in income from the IRS, Powell evaded paying $148,984 in income taxes.

“Paying the taxes that we lawfully owe is both our civic and legal duty,” said U.S. Attorney Romero. “William Powell opted to go another way, concealing hundreds of thousands of dollars in income. In doing so, he cheated both the government and the honest taxpayers who help fill its treasury each year. That’s why tax evasion has some serious consequences, as Mr. Powell can now confirm.”

“The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS' enforcement strategy,” said Amy MacNeely, Acting Special Agent in Charge, IRS-Criminal Investigation Philadelphia Field Office. “Those who attempt to hide their income to evade paying taxes, like Mr. Powell did, should know you will be prosecuted.” 

The case was investigated by the Internal Revenue Service - Criminal Investigation and the United States Department of Agriculture Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael T. Donovan.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Stanislav Bril, aka “Stan Bril” and “Slava Bril,” age 41, of Jamison, Pennsylvania, was sentenced today by United States District Judge John M. Younge to 135 months in prison, three years of supervised release, over $14 million in restitution, and a $2,400 special assessment in connection with multiple fraud schemes, including the theft of more than $6 million in federal pandemic relief funds. Judge Younge also ordered that Bril be remanded into custody following the hearing.

On October 30, 2023, Bril pleaded guilty to three counts of mail fraud, 11 counts of wire fraud, five counts of bank fraud, and five counts of money laundering, all arising from his operation of two different Ponzi schemes, his false applications for bank loans, his defrauding of the Small Business Administration’s Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program, and related conduct.

From October 2011 to August 2014, Bril operated a Ponzi scheme through his company, Mortgage Consultant Group (“MCG”), obtaining over $1 million from investors and using much of these funds for his own benefit and to perpetuate the scheme. In his marketing materials and his sales pitches to investors, Bril falsely claimed that these investments would enable MCG to make loans on real estate and construction projects or enable MCG to make short-term, high interest loans. Bril falsely promised that investors would obtain regular returns, or “interest,” on their capital loan investments in MCG. Rather than use investors’ funds as promised, Bril used the vast majority of the money to pay himself, his family, and his personal expenses – including his gambling losses at casinos – and to perpetuate his scheme by occasionally making “interest” payments to some investors.

From October 2018 to June 2021, Bril fraudulently obtained a $750,000 line of credit from a bank headquartered in Scranton, Pa., for another company he created, The Bril Group, Inc. (“TBG”). In order to secure the line of credit, Bril made false statements about TBG’s business, the number of TBG employees he was hiring, and the intended use of the line of credit. Once he obtained the line of credit, Bril caused those funds to be spent on unauthorized purchases and laundered a significant portion of those funds through various bank accounts.

From April 2020 to March 2021, Bril fraudulently obtained over $6.7 million from the Small Business Administration’s Economic Injury Disaster Loan (“EIDL”) and Paycheck Protection Programs (“PPP”) by making false statements about the number of employees of, the wages and payroll taxes paid by, and the intended use of the loan proceeds by several companies that he created. Bril falsely claimed that these companies – TBG, MCG LOAN, and SAB Services LLC – had several hundred employees, when, in reality, none of these companies had more than one employee.

In his PPP and EIDL applications, Bril submitted purportedly historical tax forms with inflated payroll information for nonexistent employees that had never actually been filed. In addition, Bril falsely denied that there were criminal charges pending against him at the time of his applications. In fact, federal charges were already pending against Bril for his perpetration of the Ponzi scheme detailed above. Once he fraudulently obtained these government funds, Bril wired them to other individuals, cryptocurrency platforms, and a title company towards the purchase of a Los Angeles condominium. In addition, Bril spent fraud proceeds on luxury vehicles, a boat, and extravagant vacations. He also laundered a significant portion of those funds through various bank accounts and transactions.

From July 2019 to at least August 2021, Bril revived MCG and used it to perpetrate yet another Ponzi scheme, obtaining millions of dollars in loans from several investors and using these funds for his own benefit – including paying for his own home renovations – and to perpetuate the scheme. Bril initially took short-term loans from investors and repaid investors with high interest rates to lull them into a false sense of security and to obtain larger loans from them. In his sales pitches to investors, Bril falsely claimed that their loans would enable MCG to make loans on real estate and construction projects and/or enable MCG to make short-term, high-interest loans. However, Bril provided investors with few details of these purported projects and declined to identify his purported borrowers. He often encouraged investors to “roll over” their loans into new deals, rather than take their payouts per their agreements with Bril.

When investors asked him whether he had any claims, lawsuits, or legal proceedings filed against him, Bril falsely answered in the negative, despite his knowledge that federal charges were already pending against him for his perpetration of the earlier Ponzi scheme. When Bril began missing the agreed repayments to investors, he provided bogus explanations for his theft of their loans, including that he was waiting for a wire to clear, that he waiting for a check to be mailed from his bank, that he was looking for a new bank, that his new bank was giving him a “hard time,” and that he was suffering from a variety of health emergencies and personal tragedies that were somehow preventing him from making timely paying to the investors. Rather than use investors’ funds as promised, Bril used the funds to pay himself, his family, and his personal expenses – including trading in digital currencies – and to perpetuate his schemes by occasionally making “interest” payments to some investors.

“Stanislav Bril is a rampant and remorseless scammer,” said U.S. Attorney Romero. “Over the course of a decade, he blithely defrauded everyone from individual investors — many of whom lost their life savings or kids’ college funds — to a community bank, to the U.S. government and the millions of taxpayers who fund it. Meantime, he was shopping for Bentleys and boats. We and our partners are committed to holding con artists like Bril accountable, both to keep them from claiming more victims and to reinforce that crime truly doesn’t pay in the end.”

“While conducting his various schemes, the defendant stole over $6 million. The money was intended to support legitimate businesses suffering losses due to the COVID-19 pandemic,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Philadelphia. “The FBI, in collaboration with our law enforcement partners, will continue to hold accountable those who exploit government programs for personal gain.”

The case was investigated by the FBI and IRS - Criminal Investigation and is being prosecuted by Assistant United States Attorneys Vineet Gauri and Matthew T. Newcomer.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Joseph LaForte, 53, of Philadelphia, Pennsylvania, and his brother James LaForte, 47, of New York, New York, entered pleas of guilty today before United States District Court Judge Mark A. Kearney to racketeering conspiracy, securities fraud, and related crimes in connection with their operation of a fraudulent investment vehicle known as Complete Business Solutions Group Inc. d/b/a Par Funding (“Par Funding”), which is alleged to have generated over $100 million in illegal proceeds for the defendants to the detriment of Par Funding’s numerous investors, many who live in the Philadelphia region.

Joseph LaForte operated Par Funding’s day-to-day operations and functioned as its president and CEO, while his younger brother James LaForte worked in sales and collections and had managerial authority. In July 2020, the Securities and Exchange Commission (“SEC”) intervened and replaced the LaFortes with a court-ordered receivership that has operated Par Funding since that time.

Joseph LaForte, who has prior felony convictions including for a financial fraud, also pleaded guilty to tax crimes, perjury, and obstruction of justice for his role in aiding and abetting James LaForte’s violent assault on one of the Par Funding receivership’s Philadelphia attorneys who was helping to seize LaForte family assets. In addition, Joseph LaForte pleaded guilty to a gun possession charge for firearms that were found in his former residence during the execution of a search warrant.

James LaForte also pleaded guilty to the extortionate collection of credit from a Par Funding merchant customer, as well as obstruction of justice for assaulting the Philadelphia attorney and retaliation for threatening several government witnesses.

The government and the defendants have agreed that defendant Joseph LaForte will serve between 13½ to 15½ years’ imprisonment and defendant James LaForte will serve 110 to 137 months’ (~9 to 11½ years’) imprisonment, provided those ranges are accepted by the district court at the time of sentencing. Defendant Joseph LaForte has also agreed to pay millions of dollars in restitution to the Internal Revenue Service in connection with his tax conviction, and to forfeit his rights to a private jet and an investment account seized by the government. At the plea hearing, Judge Kearney accepted the guilty plea for Joseph LaForte and conditionally accepted the guilty plea for James LaForte.

In February, the defendants had been charged with violating the Racketeer Influenced and Corrupt Organizations Act (RICO) in a second superseding indictment, which also charged various other crimes included in a previous superseding indictment, including securities fraud, wire fraud, extortionate collection of debt, obstruction of justice, witness tampering, and witness retaliation, tax crimes, and perjury.

Per the indictment, as part of their fundraising efforts, these defendants and their conspirators caused false and misleading information to be conveyed to investors regarding various issues, including:

• Joseph LaForte’s true name, his role at Par Funding, and his criminal history;
• Par Funding’s underwriting process;
• the diversity of the company’s MCA portfolio;
• Par Funding’s default rate;
• Par Funding’s financial success and profitability;
• the company’s insurance; and
• the defendants’ self-dealing.

For instance, although Joseph LaForte operated Par Funding and referred to it as his business, he concealed this ownership and control by using his wife as his nominee. Joseph LaForte also used several aliases, such as “Joe Mack,” while working at the company. It is alleged that Joseph LaForte, James LaForte, and their conspirators engaged in this deception to conceal Joseph LaForte’s true role as the person operating the company and his significant criminal history from investors.

The indictment also alleged that Par Funding’s principal means of generating income was to “advance” money to businesses that were in need of short-term financing at high rates of return. The indictment alleged that the enterprise, including James LaForte, used threats of violence to collect money from customers whose payments were overdue. James LaForte has pleaded guilty to threatening one particular Par Funding customer, telling him that he must repay the company immediately because James LaForte was not to be messed with and had previously torched people’s cars and kicked people’s teeth in.

The indictment also alleged that Joseph LaForte and James LaForte engaged in obstruction of justice in late February 2023 in connection with James LaForte’s physical assault of one of the Par Funding receivership’s attorneys outside of the attorney’s office in Center City Philadelphia, sending the attorney to the hospital and causing serious bodily injury. Several days later, defendant James LaForte is alleged to have made threatening phone calls to several government witnesses and their family members, including Perry Abbonizio, who James LaForte knew had recently pleaded guilty to conspiring with Joseph LaForte in connection with the fraudulent operation of Par Funding.

Finally, Joseph LaForte and others were also charged with committing a variety of tax crimes involving the proceeds he received from Par Funding, including hiding tens of millions of taxable income via false entries on business and personal federal tax returns and pretending to live in Florida to avoid paying Pennsylvania income tax. In April 2024, LaForte’s wife, Lisa McElhone, pleaded guilty in connection with the Florida residency scheme. It was further alleged that Joseph LaForte failed to report millions of dollars in cash kickbacks that he personally received from a Par Funding merchant customer, and by regularly paying cash wages to Par Funding employees but not withholding taxes from these wages or reporting them to the IRS.

“The LaFortes’ corrupt enterprise was built on a foundation of lies, threats, and incredible greed,” said U.S. Attorney Romero. “The breadth of the criminal activity here is astounding – from financial fraud to physical violence, obstruction of justice, and more. On behalf of those victimized, justice demands that these perpetrators be held accountable.”

“Investigating complex financial crimes has been a priority of the FBI since our beginning,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The defendants ran their purported business as a criminal enterprise, conducting securities fraud, extortion, and obstruction of justice, all to further their financial gain. This case exemplifies the FBI and our partners’ continued commitment to vigorously pursue these criminals who orchestrate these schemes and bring them to justice.”

“IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation,” said Amy MacNeely, Acting Special Agent in Charge of IRS-Criminal Investigation. “We, along with our law enforcement partners and the Department of Justice, will continue to aggressively investigate individuals who engage in money laundering, tax fraud, or other types of white-collar crimes.”

“The guilty pleas in this case hold the defendants accountable for operating a fraudulent investment vehicle that allegedly generated over $100 million illegally, and caused financial harm to numerous investors,” said Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region.  “The FDIC OIG is pleased to join our law enforcement colleagues in announcing this guilty plea, and we remain committed to investigating and bringing to justice those who commit such egregious acts that threaten investors and the safety and soundness of our Nation's financial system.”

The case was investigated by the FBI, Internal Revenue Service-Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General and prosecuted by Assistant United States Attorneys Matthew Newcomer, Samuel Dalke, Eric Gill, Patrick J. Murray, and former Assistant U.S. Attorney Alexandra Lastowski, as well as Assistant U.S. Attorney John J. Boscia and DOJ Trial Attorney Ezra Spiro on the tax portion of the prosecution.

The SEC in Florida investigated and litigated the civil securities fraud charges, which formed the basis of a portion of the criminal prosecution.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jeremy Schobel, 33, of Philadelphia, Pennsylvania, a former teacher at Harriton High School in Lower Merion Township, PA, and the High School of Creative and Performing Arts in Philadelphia, was sentenced today by United States District Court Judge John F. Murphy to 30 years’ imprisonment and 20 years of supervised release for an elaborate child exploitation catfishing scheme that Schobel developed to entice young teenage girls, including one who was a student at his school.

For more than three years, and often from classrooms at Harriton High, the defendant posed as different minor girls online, creating extensive, fake profiles to deceive his underage victims into sending him sexually explicit images and videos of themselves.

Schobel was arrested and charged by criminal complaint with child exploitation offenses in June of 2023 and indicted in November 2023. In March, he pleaded guilty to receipt of child pornography and five counts of manufacture of child pornography. His conviction requires him to register as a sex offender pursuant to Megan’s Law in Pennsylvania.

“As a teacher, Jeremy Schobel was tasked with developing young minds,” said U.S. Attorney Romero. “As a predator, though, he chose to deceive and sexually exploit underage girls online — often from his school classroom. Today’s sentence closes the book on Schobel’s years of catfishing and gives his victims a measure of justice. Protecting children from abuse will always be a top priority for my office and our partners at the FBI.”

“Mr. Schobel abused his position of public trust to prey on those we expected him to protect,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The sexual exploitation of children is among the most devious crimes we investigate and today’s sentencing serves as a reminder that the FBI and our partners will work tirelessly to protect children from abuse and exploitation.”

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 projectsafechildhood.gov.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Michelle Rotella. 

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jessika L. Hiepler, 46, of Lancaster, Pennsylvania, entered a plea of guilty today before United States District Judge Jeffrey L. Schmehl to two counts of wire fraud related to her scheme to defraud two nonprofit veterans organizations, American Legion Post 34 and American Veterans Post 19. Hiepler and her associate netted $1.425 million from the fraud scheme.

The defendant was charged with these violations by criminal information on August 12.

For nearly 15 years, Hiepler served as a board member and as the manager, treasurer, and financial officer for American Legion Post 34 (“Legion Post 34”). In 2019, Hiepler offered to “bail out” a separate veterans’ organization, American Veterans Post 19 (“AMVETS Post 19”), that was facing financial difficulties.

Under the pretext of bailing out AMVETS Post 19, Hiepler assumed control over its financial affairs and acquired its valuable four-acre commercial property through theft, deceit, and misrepresentation. First, Hiepler misled AMVETS Post 19 to secure approval for the bailout, including with the false promises of an interest-free loan, minimal rent, and full transparency. Second, Hiepler stole from her then-employer, Legion Post 34, to raise funds for the bailout. Third, once in control of AMVETS Post 19’s finances, Hiepler also stole from AMVETS Post 19 and used its funds for her own benefit. Fourth, Hiepler concealed her self-dealing, manipulated and altered financial records, and destroyed financial and business records at both Legion Post 34 and AMVETS Post 19.

From the outset, the defendant schemed about making money and selling the AMVETS Post 19’s property at 715 Fairview Avenue in Lancaster, PA. In Hiepler’s own words:

• “[W]e will make our money and they [AMVETS Post 19] can kiss our a[**]”

• “I am ready to get rid of these motherf[*****]s. . . . I can’t wait for sh[**] to be ours”

• “I can’t wait to see their face when we hand them their eviction notice”

• “Honestly all I want is my money. That’s it. I could care f[***]ing less about any of them.”

Three years after acquiring the AMVETS Post 19’s property for a below-market rate of $500,000 through the “bailout,” Hiepler’s real estate investment company sold the fraudulently obtained property for $1.95 million, and booked a gain of $1.425 million after expenses.

“Jessika Hiepler’s contempt for her victims, veterans who served this country, is palpable — and despicable,” said U.S. Attorney Romero. “Not only did she defraud these organizations, she did so gleefully, hurling insults and expletives behind the scenes. My office and the FBI will never stop working to hold crooks like this accountable on behalf of fraud victims, both past and potential.”

“In weaving a web of lies and deception, this defendant pocketed over one million dollars intended for organizations dedicated to supporting our nation’s veterans,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “FBI Philadelphia and our law enforcement partners will continue to pursue criminals who prey on the public for their own personal profit.”

Hiepler faces a maximum possible sentence of 40 years in prison, three years of supervised release, and a $500,000 fine, along with restitution. As part of the plea agreement, Hiepler agreed to a forfeiture money judgment in the amount of $1,425,847.24.

The case was investigated by the FBI, with assistance from the Lancaster City Bureau of Police, and is being prosecuted by Assistant United States Attorneys Samuel S. Dalke and Andrew Jenemann.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Victor Ortiz, 47, of Philadelphia, Pennsylvania, was convicted Friday at trial of stalking, seriously injuring, and permanently disfiguring a woman with whom he had a previous relationship.

On the morning of May 4, 2022, the defendant had pursued his ex-girlfriend as she walked to her office in Philadelphia. Before she reached the building, the defendant threw soda ash, a caustic substance, on the victim’s face and torso. His attack temporarily blinded her in the left eye and caused severe pain and permanent scarring on her body.

Investigators subsequently found that the defendant had attached a GPS device to the victim’s vehicle so that he could monitor her location and follow her. After law enforcement officials discovered the device, the defendant was caught on camera attempting to install a second GPS device on the victim’s vehicle in July 2022.

The defendant is scheduled to be sentenced on December 17 and faces a maximum possible sentence of 20 years’ incarceration.

“Victor Ortiz needed to take ‘no’ for answer,” said U.S. Attorney Romero. “But rather than moving on when a relationship ended, he targeted, stalked, and viciously assaulted his ex-partner, causing horrendous physical pain and emotional trauma. My office will continue to work with our law enforcement colleagues to get justice for stalking victims and take the dangerous offenders who terrorized them off the street.”

“HSI is dedicated to protecting individuals from dangerous predators such as Victor Ortiz,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “Our excellent partnership with the U.S. Attorney’s Office for the Eastern District of Pennsylvania allows us to hold these criminals responsible for their crimes and obtain justice for their victims.”

The case was investigated by Homeland Security Investigations and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Michael R. Miller and Angella Middleton.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Alex Askew, 20, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Timothy J. Savage to 21 years’ imprisonment, three years of supervised release, restitution of $36,183.61, and an $800 assessment in connection with a series of armed carjackings targeting mainly elderly victims in Philadelphia and Upper Darby in September of 2022.

Askew was charged by superseding indictment in April of 2023, and on February 21, 2024, he pleaded guilty to one count of conspiracy to commit carjacking, three counts of carjacking, three counts of using a firearm in relation to a crime of violence, and one count of attempted carjacking.  

The defendant and others committed three carjackings and one attempted carjacking, all with firearms, during the course of the conspiracy that took place between September 6, 2022, and September 12, 2022. The incidents detailed are as follows:

• On September 6, 2022, in the afternoon, Askew and two others committed two carjackings within minutes of one another and blocks away. In the first carjacking, Askew was one of three people to brandish a firearm at three victims aged 60 to 80 years old parking their vehicle on the 800 block of North 26th Street in Philadelphia. In the course of stealing their Mitsubishi SUV, Askew and others threatened to kill them. The same group used the stolen Mitsubishi to drive to the 2600 block of Brown Street minutes later where they pointed a black firearm at a woman parking her Kia Sportage. They demanded her keys before fleeing in both stolen cars.

• The next day in the evening, on September 7, 2022, Askew and others threatened a 66-year-old woman at gunpoint in the course of stealing her Acura SUV. The victim had just parked in front of her home on Wilde Avenue in Upper Darby late at night when a male with a firearm pointed a gun at her and demanded her keys. The offenders stole the victim’s purse and fled in her vehicle.

• In the late afternoon of September 11, 2022, Askew and others threatened a 71-year-old woman at gunpoint as she parked in the alleyway behind her home on Brunswick Avenue in Upper Darby. Askew and another male demanded the keys but fled the scene without her vehicle when the victim screamed and ran towards her home.

“Alex Askew is 20 years old and was just sentenced to 21 years in prison,” said U.S. Attorney Romero. “Anyone who’s out there committing carjackings, or even contemplating it, needs to think long and hard about whether stealing a car for a few hours or days is worth spending decades of your life behind bars. The public shouldn’t have to fear being ambushed by armed criminals every time they get in or out of their car. That’s why we and our law enforcement partners are committed to prosecuting these violent crimes and why they carry such significant sentences.”

“Carjacking is a serious and dangerous crime, and as this case shows, even a youthful offender like Askew can be sentenced to serious federal prison time for carjacking,” said Eric DeGree, Special Agent in Charge of ATF’s Philadelphia Field Office. “The fact that the defendant and accomplices targeted vulnerable elderly community members makes their crime spree even more reprehensible. Preventing and prosecuting carjacking remains a high priority, and as in this case, we will work with our partners in the Philadelphia Carjacking Task Force to track down the perpetrators across jurisdictions, whenever and wherever they act.”

“I want to thank U.S. Attorney Romero for her collaborative efforts to hold violent criminals accountable by bringing them to justice.” said Delaware County District Attorney Jack Stollsteimer. “In Delaware County, our Project Safe Neighborhoods partnership is a force multiplier for the men and women of law enforcement working courageously every day to keep our communities safe.”

“We will not tolerate violent crime in our community,” said Upper Darby Police Superintendent Timothy Bernhardt. “Alex Askew’s actions were not only dangerous but unacceptable, and we remain committed to hold accountable anyone who threatens the safety of our residents. We extend our gratitude to the U.S. Attorney’s Office, particularly U.S. Attorney Jacqueline C. Romero, for their partnership and dedication in prosecuting this individual. Together with our law enforcement partners, we will continue to work tirelessly to protect our town and ensure that those who commit crimes face justice.”

“The sentence handed down today serves as a powerful reminder that the Philadelphia Police Department, alongside our law enforcement partners, will not tolerate violent crime in our city, especially crimes that target our most vulnerable citizens,” said Philadelphia Police Commissioner Kevin J. Bethel. “These brazen carjackings were not only a threat to public safety but also a violation of the sense of security every individual deserves. I commend the dedication of our officers - and the collaboration across our partner agencies - that brought this individual to justice. We remain committed to ensuring the safety of all Philadelphians through decisive and strategic actions.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Delaware County District Attorney’s Office Criminal Investigation Division, the Upper Darby Township Police Department, and the Philadelphia Police Department, and is being prosecuted by Special Assistant United States Attorneys Brian Doherty and Sandra M. Urban.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jose Alberto Cruz-Garcia, 31, of Las Pedras, Puerto Rico, was sentenced by United States District Court Judge Timothy J. Savage to two years in prison and three years of supervised release for attempting to smuggle a significant amount of cocaine into Philadelphia.

On July 21, 2023, Cruz-Garcia departed San Juan, Puerto Rico, on a commercial flight to Philadelphia, carrying over four kilograms of cocaine in his luggage. Upon arrival, Cruz-Garcia met with codefendant Josue Benito Ascencio-Vega outside a motel near the airport to deliver the drugs, at which time both men were arrested by federal authorities.

The defendant pleaded guilty in May. In July, codefendant Ascencio-Vega was sentenced to five years in prison.

“Whether you’re coming by plane, train, or automobile, if you bring a large quantity of illegal narcotics into the Eastern District of Pennsylvania, be prepared to lose more than your luggage,” said U.S. Attorney Romero. “My office will continue to work with our law enforcement partners on the community’s behalf, to get dangerous drugs and criminals off the street.”

“The sentencing of Alberto Cruz-Garcia and Josue Benito Ascencio-Vega is the culmination of excellent investigations and prosecutions by HSI and the U.S. Attorney’s Office for the Eastern District of Pennsylvania,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “Our partnership continues to provide incredible results for the citizens of Pennsylvania.”

The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Everett Witherell.

A generic pharmaceutical manufacturer, Glenmark Pharmaceuticals Inc. USA (Glenmark), located in Mahwah, New Jersey, has agreed to pay $25 million, based on its ability to pay, to resolve its alleged liability under the False Claims Act for conspiring to fix the price of a generic drug.

The government alleged that, between 2013 and 2015, Glenmark paid and received compensation prohibited by the Anti-Kickback Statute through arrangements on price, supply and allocation of customers with other pharmaceutical manufacturers for a generic drug manufactured by Glenmark, pravastatin, which is widely used to treat high cholesterol and triglyceride levels. 

“Illegal collaboration on the price or supply of drugs increases costs both to federal health care programs and beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will use every tool at its disposal to prevent such conduct and to protect these taxpayer-funded programs from abuse.” 

“At a time when excessive drug costs are already imposing unprecedented burdens on our country’s vulnerable citizens, an illegal conspiracy to fix the prices of generic drugs is alarming,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “My office is proud to work with the rest of the department and our investigative partners to hold companies accountable when they illegally inflate prices on drugs used for the health and well-being of our citizens.”

“Conspiring to raise prices on generic medications is illegal and could prevent patients from being able to afford their needed prescription drugs. Americans have the right to purchase generic drugs set by fair and open competition, not collusion,” said Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), Philadelphia Regional Office. “HHS-OIG will continue to work with our law enforcement partners to investigate allegations of health care fraud that put the public and the Medicare program at risk.”

“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General, seeks to protect the integrity of TRICARE, the healthcare system for U.S. military members and their dependents,” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “When pharmaceutical corporations artificially inflate prices, they place an unnecessary financial burden on the TRICARE program. The settlement agreement announced today demonstrates our commitment to partner with investigative agencies, the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Eastern District of Pennsylvania to combat healthcare fraud.”

The Anti-Kickback Statute prohibits companies from receiving or making payments in return for arranging the sale or purchase of items such as drugs for which payment may be made by a federal health care program. These provisions are designed to ensure that the supply and price of health care items are not compromised by improper financial incentives. This settlement reflects the important role of the False Claims Act to ensure that the United States is fully compensated when it is the victim of kickbacks paid to further anticompetitive conduct.         

Glenmark previously entered into a deferred prosecution agreement with the Justice Department’s Antitrust Division to resolve related criminal charges. Glenmark paid a criminal penalty of $30 million based on its ability to pay and admitted to conspiring with two other generic drug companies to fix prices on pravastatin. The civil settlement payment announced today is in addition to the criminal penalty paid by the company.   

The civil settlement is the sixth resolution arising from the Justice Department’s investigation of price fixing by generic drug manufacturers and was handled by the Civil Division’s Commercial Litigation Branch, Fraud Section, and U.S. Attorney’s Office for the Eastern District of Pennsylvania, with support from HHS-OIG, the Defense Health Agency Program Integrity Office and DCIS.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).

Senior Trial Counsel Jennifer L. Cihon and Senior Litigation Counsel Laurie A. Oberembt of the Justice Department’s Civil Division and Assistant U.S. Attorneys Landon Y. Jones III, Rebecca S. Melley and Anthony D. Scicchitano for the Eastern District of Pennsylvania handled the matter.

Except for those facts admitted to by Glenmark in the deferred prosecution agreement, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.

View the settlement agreement here.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Glenmark Pharmaceuticals Inc., USA, a generic pharmaceutical manufacturer located in Mahwah, New Jersey, has agreed to pay $25 million, based on its ability to pay, to resolve its alleged liability under the False Claims Act for conspiring to fix the price of a generic drug.

The government alleged that, between 2013 and 2015, Glenmark paid and received compensation prohibited by the Anti-Kickback Statute through arrangements on price, supply and allocation of customers with other pharmaceutical manufacturers for a generic drug manufactured by Glenmark, pravastatin, which is widely used to treat high cholesterol and triglyceride levels.

“At a time when excessive drug costs are already imposing unprecedented burdens on our country’s vulnerable citizens, an illegal conspiracy to fix the prices of generic drugs is alarming,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “My office is proud to work with the rest of the department and our investigative partners to hold companies accountable when they illegally inflate prices on drugs used for the health and well-being of our citizens.”

“Conspiring to raise prices on generic medications is illegal and could prevent patients from being able to afford their needed prescription drugs. Americans have the right to purchase generic drugs set by fair and open competition, not collusion,” said Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), Philadelphia Regional Office. “HHS-OIG will continue to work with our law enforcement partners to investigate allegations of health care fraud that put the public and the Medicare program at risk.”

“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General, seeks to protect the integrity of TRICARE, the healthcare system for U.S. military members and their dependents,” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “When pharmaceutical corporations artificially inflate prices, they place an unnecessary financial burden on the TRICARE program. The settlement agreement announced today demonstrates our commitment to partner with investigative agencies, the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Eastern District of Pennsylvania to combat healthcare fraud.”

The Anti-Kickback Statute prohibits companies from receiving or making payments in return for arranging the sale or purchase of items such as drugs for which payment may be made by a federal health care program. These provisions are designed to ensure that the supply and price of health care items are not compromised by improper financial incentives. This settlement reflects the important role of the False Claims Act to ensure that the United States is fully compensated when it is the victim of kickbacks paid to further anticompetitive conduct. 

Glenmark previously entered into a deferred prosecution agreement with the Justice Department’s Antitrust Division to resolve related criminal charges. Glenmark paid a criminal penalty of $30 million based on its ability to pay and admitted to conspiring with two other generic drug companies to fix prices on pravastatin. The civil settlement payment announced today is in addition to the criminal penalty paid by the company.   

The civil settlement is the sixth resolution arising from the Justice Department’s investigation of price fixing by generic drug manufacturers and was handled by the Civil Division’s Commercial Litigation Branch, Fraud Section, and U.S. Attorney’s Office for the Eastern District of Pennsylvania, with support from HHS-OIG, the Defense Health Agency Program Integrity Office and DCIS.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to HHS at 1-800-HHS-TIPS (1-800-447-8477).

The matter was handled by Assistant U.S. Attorneys Landon Y. Jones III, Rebecca S. Melley, and Anthony D. Scicchitano of the U.S. Attorney’s Office, along with Senior Trial Counsel Jennifer L. Cihon and Senior Litigation Counsel Laurie A. Oberembt of the Civil Division.

Except for those facts admitted to by Glenmark in the deferred prosecution agreement, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.

PHILADELPHIA – United States Attorney Jacqueline C. Romero and the Justice Department today announced the ongoing seizure of 32 internet domains used in Russian government-directed foreign malign influence campaigns colloquially referred to as “Doppelganger,” in violation of U.S. money laundering and criminal trademark laws.

As alleged in an unsealed FBI affidavit filed in the Eastern District of Pennsylvania, the Russian companies Social Design Agency (SDA), Structura National Technology (Structura), and ANO Dialog, operating under the direction and control of the Russian Presidential Administration, and in particular First Deputy Chief of Staff of the Presidential Executive Office Sergei Vladilenovich Kiriyenko, used these domains, among others, to covertly spread Russian government propaganda with the aim of reducing international support for Ukraine, bolstering pro-Russian policies and interests, and influencing voters in U.S. and foreign elections, including the U.S. 2024 Presidential Election.

The propaganda did not identify, and in fact purposefully obfuscated, the Russian government or its agents as the source of the content. The perpetrators extensively utilized “cybersquatted” domains, a method of registering a domain intended to mimic another person or company’s website (e.g., registering washingtonpost.pm to mimic washingtonpost.com), to publish Russian government messaging falsely presented as content from legitimate news media organizations. In other instances, the perpetrators sought to create their own unique media brands to promote Doppelganger content (e.g., Recent Reliable News). Among the methods Doppelganger used to drive viewership to the cybersquatted and unique media domains was the deployment of “influencers” worldwide, paid social media advertisements (in some cases created using artificial intelligence tools), and the creation of social media profiles posing as U.S. (or other non-Russian) citizens to post comments on social media platforms with links to the cybersquatted domains, all of which attempted to trick viewers into believing they were being directed to a legitimate news media outlet’s website.

“Protecting our democratic processes from foreign malign influence is paramount to ensure enduring public trust,” said U.S. Attorney Romero. “As America’s adversaries continue to spew propaganda and disinformation towards the American electorate, we’ll use every tool at our disposal to expose and dismantle their insidious foreign influence campaigns.”

“Today’s disruption sends a clear message to our adversaries: we will not tolerate foreign efforts to influence our elections,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Our office and our partners at the U.S. Attorney’s Office are committed to identifying, investigating, and counteracting malign foreign influence operations targeting the United States.”

Overview

The affidavit describes the perpetrators’ own internal strategy meeting notes, project proposals, and other records obtained during the course of the investigation. Several notable propaganda project proposals directed against the United States included:

• Good Old USA Project: Attachments 8A, 8B
• The Guerilla Media Campaign: Attachments 9A, 9B
• U.S. Social Media Influencers Network Project: Attachments 10A, 10B

Doppelganger’s foreign malign influence efforts were not directed solely against audiences in the United States. Other targets of the perpetrators’ propaganda included Germany, Mexico, and Israel, among others. Doppelganger’s influence campaigns sought to influence the citizenry of those countries to support Russian government objectives, including by undermining the United States’ relationship with those countries.

Doppelganger’s use of the U.S.-based domain names at the direction and control of, and for the benefit of, sanctioned persons, including Sergei Vladilenovich Kiriyenko, SDA, and Structura, violates the International Emergency Economic Powers Act (IEEPA). As a result, the accompanying payments for Doppelganger’s online infrastructure violate federal money laundering laws. In addition, Doppelganger’s publication of content on cybersquatted domains with names and content that mimic legitimate media outlets violates federal criminal trademark laws because those domains feature trademarks registered on the Principal Register maintained by the U.S. Patent and Trademark Office.

The FBI Philadelphia Field Office is investigating the case.

The U.S. Attorney’s Office for the Eastern District of Pennsylvania, the National Security Division’s Counterintelligence and Export Control Section and National Security Cyber Section are prosecuting the case, with valuable assistance from the Criminal Division’s Computer Crime and Intellectual Property Section.

In conjunction with the domain seizures, the U.S. Treasury Department announced the designation of 10 individuals and two entities as part of a coordinated response to Russia’s malign influence efforts targeting the 2024 U.S. presidential election. This announcement follows the designation of actors involved in Doppelganger announced by the Treasury Department in March.