Eastern District of Pennsylvania

Note: View the affidavit here. 

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 affidavit, 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.  

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.

“The Justice Department is seizing 32 internet domains that the Russian government and Russian government-sponsored actors have used to engage in a covert campaign to interfere in and influence the outcome of our country’s elections,” said Attorney General Merrick B. Garland. “As alleged in our court filings, President Vladimir Putin’s inner circle, including Sergei Kiriyenko, directed Russian public relations companies to promote disinformation and state-sponsored narratives as part of a campaign to influence the 2024 U.S. Presidential Election. An internal planning document created by the Kremlin states that a goal of the campaign is to secure Russia’s preferred outcome in the election. The sites we are seizing today were filled with Russian government propaganda that had been created by the Kremlin to reduce international support for Ukraine, bolster pro-Russian policies and interests, and influence voters in the United States and other countries. Our actions today make clear that the Justice Department will be aggressive in countering and disrupting attempts by the Russian government, or any other malign actor, to interfere in our elections and undermine our democracy.”

“The Department’s seizure of 32 internet domains secretly deployed to spread foreign malign influence demonstrates once again that Russia remains a predominant foreign threat to our elections,” said Deputy Attorney General Lisa Monaco. “At Putin’s direction, Russian companies SDA, Structura, and ANO Dialog used cybersquatting, fabricated influencers, and fake profiles to covertly promote AI-generated false narratives on social media. Those narratives targeted specific American demographics and regions in a calculated effort to subvert our election. Our republic depends on elections that are free from foreign interference, and we will not rest in our efforts to expose foreign malign influence operations and protect our democracy, without fear or favor.”

“Today’s announcement exposes the scope of the Russian government’s influence operations and their reliance on cutting-edge AI to sow disinformation,” said FBI Director Christopher Wray. “Companies operating at the direction of the Russian government created websites to trick Americans into unwittingly consuming Russian propaganda.  By seizing these websites, the FBI is making clear to the world what they are, Russian attempts to interfere in our elections and influence our society.  The FBI will continue to work with our partners to expose and shutdown these covert influence campaigns.”

“This seizure illustrates vividly what the U.S. government and private sector partners have warned for months: the Russian government and its proxies are aggressively accelerating the Kremlin’s covert efforts to seed false stories and amplify disinformation directed at the American public,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s announcement reveals Russia is willing to impersonate our free and open press in its egregious schemes. This is our third disruption of Russian foreign malign influence operations in two months, and the Justice Department remains relentless in protecting Americans from such unacceptable conduct. To Russia, and any other government seeking to stoke discord in our society: know that we will spare no effort and use every available tool to disrupt and expose this malign activity and defend our democratic institutions.”

“Protecting our democratic processes from foreign malign influence is paramount to ensure enduring public trust,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “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.”

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.

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.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Christopher Daniels, 34, of Philadelphia, Pennsylvania, was sentenced by United States District Court Judge Juan R. Sánchez to 15 years’ imprisonment, to be followed by 15 years of supervised release for repeated child pornography and related offenses.

Daniels was charged with those violations in an August 2023 superseding indictment, and in March of this year, a federal jury convicted the defendant of all six counts against him, including receiving child pornography as a second time offender, possession of child pornography as a second time offender, access with intent to view child pornography as a second time offender, and failure to register as a sex offender, as required by the Sex Offender Registration and Notification Act (SORNA).

Daniels previously was convicted of possession of child pornography in federal court in 2015 and served 70 months in prison and 10 years of supervised release. His term of supervised release commenced on January 15, 2021. Under SORNA, he was required to keep his sex offender registration information, including his registered residential address, current. In July 2022, Daniels failed to verify his sex offender registration with Pennsylvania State Police as required and went into non-compliant status. Daniels was also found to be non-compliant with the terms of his federal supervised release and a bench warrant was issued for his arrest.

On November 3, 2022, the U.S. Marshals Service arrested Daniels and the FBI conducted a court-authorized search of his residence, seizing several electronic devices belonging to the defendant. Subsequent forensic examination of those devices found thousands of videos and images depicting child pornography and browser searches for such material.

“When he got out of prison, Christopher Daniels was given a non-negotiable to-do list,” said U.S. Attorney Romero. “Right at the top: stay away from material depicting the horrific sexual abuse of children, and keep his sex offender registry details current. He failed at both, proving himself a continued risk to the community. My office and our partners at the FBI will never stop working to protecting vulnerable children from sexual exploitation.”

“Having already served one sentence for exploiting innocent victims, the defendant then continued his heinous criminal behavior,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “This sentencing is a testament to the diligent and unceasing work of the FBI and our law enforcement partners to combat violent crimes against children.”

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

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Nateirah Ortiz, 25, of Darby, Pennsylvania, entered a plea of guilty today before United States District Court Judge Chad F. Kenney to one count of carjacking, one count of carrying, using, and brandishing a firearm during and in relation to the commission of a crime of violence, and possession of a firearm by a felon.

Ortiz was charged by indictment with these offenses in April of this year, in connection with a January carjacking in South Philadelphia.

As described in the indictment, on January 31, 2024, at approximately 7 p.m., the victim reported being carjacked on the 1100 block of Washington Avenue. He relayed that, while walking to his vehicle, a silver 2018 Toyota RAV4, the defendant, Nateirah Ortiz, demanded his car keys and pointed a gun at him. The victim complied, giving the defendant his key, and ran to a nearby business for assistance calling 911. The defendant entered the victim’s vehicle and fled the scene.

Information about the incident was soon broadcast via police radio citywide. At approximately 9:17 p.m., 24th District police officers on patrol observed the carjacked vehicle traveling on the 3100 block of Kensington Avenue and attempted to conduct a vehicle investigation. The officers stopped their vehicle in front of the RAV4 and another police unit stopped behind it. After waiting for the officers to get out of their car and approach her, Ortiz fled at a high rate of speed, nearly striking their police vehicle in the process. The officers immediately went over the air requesting assistance, and units in the area began searching for the carjacked vehicle.

As police officers drove down Richmond Street, they observed that a RAV4 fitting that description had crashed into several cars parked on the 3700 block of Richmond. The officers saw the defendant walking away from the scene and apprehended her, with police recovering a loaded handgun from underneath a parked van a few feet away.

“Carjackings are crimes that can terrorize victims and rattle entire communities,” said U.S. Attorney Romero. “That’s exactly why my office is committed to prosecuting these cases, working in lockstep with the Philadelphia Police Department and our federal partners to take violent criminals off the street. By holding carjackers like Nateirah Ortiz responsible for their actions, we’re having a direct effect on public safety in Philadelphia.”

“This case again shows that carjacking is dangerous and a serious federal crime, requiring many years in federal prison at a minimum,” said Eric DeGree, Special Agent in Charge of ATF’s Philadelphia Field Office. “The perpetrator’s reckless actions caused extensive property damage and put the victim and bystanders in grave danger. ATF Philadelphia Field Division applies our unique forensic and investigative tools with the Philadelphia Carjacking Task Force to solve crimes and to make our communities safer.”

“The quick apprehension of Nateirah Ortiz is a testament to the dedication and coordination of our officers and federal partners,” said Philadelphia Police Commissioner Kevin J. Bethel. “This incident also highlights the importance of our continued collaboration and commitment to removing violent offenders and illegal firearms from our streets. The safety of our communities is our top priority, and we will not tolerate those who choose to threaten the peace and security of our city.”

Ortiz is set to be sentenced on December 18 and faces a maximum possible sentence of life in prison and a mandatory minimum of seven years’ imprisonment.

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 Anthony J. Carissimi and Robert E. Eckert.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Robert Davis, 36, of Bensalem, Pennsylvania, entered a plea of guilty today before United States District Court Judge John Frank Murphy on three counts of trafficking in counterfeit goods.

The defendant was charged in a superseding indictment on May 9, 2023, with selling counterfeit opioid pills through his website, rcproppill, advertising the fake pills for use as props in films or music videos, from in or about 2015 through August 2019. The counterfeits contained no controlled substances, but mimicked the trademarks of certain opioid pills.

The defendant made fake pills with the unique drug markings and trademarks of various frequently-abused opioid pills, such as oxycodone, hydrocodone, and the anti-anxiety drug Xanax. The defendant’s buyers made regular and repeat buys, consistent with using the counterfeits in drug dealing rather than in films or videos.

Davis is scheduled to be sentenced on December 20, and on each count, faces a maximum possible sentence of 10 years’ imprisonment and three years of supervised release.

The case was investigated by the Drug Enforcement Administration, the Food and Drug Administration, and the FBI, and is being prosecuted by Assistant United States Attorney Christopher Diviny.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Michael Salerno, 55, of Mount Laurel, New Jersey, was sentenced today by United States District Court Judge Paul S. Diamond to 37 months’ imprisonment and ordered to pay restitution in the amount of $549,835 in connection with multiple elaborate schemes that defrauded hundreds of investors out of more than half a million dollars.

Salerno was indicted for the schemes in September of 2020, and in February 2023, pleaded guilty to three counts of wire fraud.

Between September 2016 and at least November 2018, the defendant operated a series of businesses, including Black Diamond Forex, L.P., BDF Trading, L.P., Advanta Capital Markets, Inc., and Advanta FX, each of which purported to be in the business of trading foreign currencies. Using a variety of misrepresentations and omissions, Salerno induced victims to pay advance fees — up-front payments of typically more than $1,000 — in order to be hired by Salerno’s company. He told the victims that, upon their hiring, he would make available to them a pool of $10 million that they could trade on the foreign currency market and take a generous cut of any profits. Each of these representations was false.

To make his fraudulent activities appear legitimate, Salerno held himself out as a sophisticated and successful businessman. He claimed that he had been a profitable currency trader, and to have managed a real estate empire, a portion of which he said he sold for $10 million to fund the currency-trading venture — none of which was true, either. In fact, he declared bankruptcy twice, most recently in 2015, and had been evicted multiple times from rental homes for failure to pay rent. In 2005, he pleaded guilty to federal tax charges and was sentenced to 21 months in prison. He failed to disclose any of this to the victims before taking their money, instead collecting more than $300,000 in advance fees and using the money for his own benefit.

The defendant’s currency-trading scheme came to a halt when he was advised that he was the target of an FBI investigation and the Commodity Futures Trading Commission sought and obtained an injunction against Salerno and his businesses in 2018. However, Salerno turned immediately to a second scheme. Between May 2018 and at least December 2019, he operated a company called AccuOne Financial, Inc., which purported to be in the business of assisting clients in ridding themselves of unwanted automobile leases. It also purported to offer a different set of clients, whose personal credit precluded them from obtaining an automobile lease, access to automobile leases, low-interest vehicle loans, and credit repair services. But Salerno failed to do as promised, instead ripping off both sets of clients. The defendant took the unwanted vehicles from the first set of clients, made few, if any, of the required lease payments, and then gave the vehicles to the second set of clients who could not obtain their own leases, in exchange for substantial monthly fees. The predictable result of this house of cards-style scheme was that the clients who wanted to get out of their leases either continued to make monthly lease payments for cars they no longer had or suffered substantial damage to their credit, and the clients who leased cars from AccuOne often had them repossessed without warning. Salerno netted several hundred thousand dollars from this scheme alone.

“Michael Salerno is a modern-day snake oil salesman,” said U.S. Attorney Romero. “Upon learning that his fraud scheme had caught the FBI’s attention, he didn’t close up shop and clean up his act – he simply pivoted to a different scheme. Today’s sentence holds him accountable for the harm he’s caused and brings a measure of justice for his victims. My office and the FBI are working every day to put scammers and swindlers like this out of business.”

"Under the guise of a businessman, Salerno was truly a criminal, devising schemes built on manipulation and lies, which placed the financial security of his victims at risk,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI will continue to rigorously pursue those who attempt to enrich themselves through fraudulent means.”

The case was investigated by the FBI and prosecuted by Assistant United States Attorney Matthew Newcomer and former Assistant United States Attorney Christopher J. Mannion.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Justin Heimbach, 33, of Bath, Pennsylvania, has been charged by indictment with six counts of mail fraud and four counts of wire fraud in connection with schemes to defraud the federal government and multiple local car dealerships.

In March of 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which created the Pandemic Unemployment Assistance program (PUA). The PUA program provided unemployment benefits to individuals not eligible for regular unemployment compensation, or extended unemployment benefits.

The indictment alleges that Heimbach, who operated a construction company called TeamKJ Construction, engaged in a scheme that caused fraudulent PUA applications to be filed in the names of individuals allegedly no longer employed by TeamKJ as a result of COVID-19. In reality, the applications contained a number of materially false statements, including that the applicant had lost their job with TeamKJ as a result of COVID-19 and the date the applicant lost their job with TeamKJ due to the pandemic.

The indictment further alleges that Heimbach successfully defrauded multiple Lehigh Valley car dealerships by purchasing vehicles in the names of other construction companies registered to or associated with him, by writing checks for those vehicles on bank accounts that were either closed or had an insufficient balance to cover the transaction.

If convicted, Heimbach faces a maximum possible sentence of 200 years in prison.

The case was jointly investigated by the Pennsylvania Department of Labor and Industry, the United States Department of Labor – Office of Inspector General, and the FBI – Allentown Resident Agency. The case is being prosecuted by Assistant United States Attorneys Timothy M. Lanni and S. Chandler Harris.

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 Daniel Rubino, M.D., has agreed to pay $8,000 to resolve allegations that he violated the Controlled Substances Act (CSA) by dispensing and distributing Schedule III and Schedule IV controlled substances without an effective prescription issued for a legitimate medical purpose. The United States’ investigation involved Dr. Rubino’s self-prescribing practices at his medical office, Daniel T. Rubino, P.C., located at 176 E. Conestoga, Devon, Pa., 19333.

As part of the settlement, Rubino has entered into a two-year Memorandum of Agreement (MOA) with the Drug Enforcement Administration (DEA), which includes additional responsibilities regarding the handling of controlled substances. The MOA imposes compliance obligations significantly more stringent than those in the applicable laws and regulations.

Between March 2020 and December 2022, DEA investigators discovered that Rubino was self-prescribing Schedule III and IV medications while he treated patients at his medical office, specifically buprenorphine and eszopiclone. During this time period, DEA identified that Rubino had written approximately 44 prescriptions to himself, and that he had done so without the oversight of a prescribing physician and with no initial assessments, reevaluations, or routine monthly visits with a full assessment of his chronic pain and urinalysis. Accordingly, Rubino repeatedly dispensed or distributed Schedule III and IV controlled substances to himself without an effective prescription in violation of 21 U.S.C. § 829(b) and 21 C.F.R. § 1306.04.

Congress enacted the CSA to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications, and requires individuals and entities registered with the DEA to maintain complete and accurate records of all controlled substances and security systems so that controlled substances are no lost, stolen, or inappropriately dispensed.

“Physicians who dispense and distribute Schedule III and IV controlled substances to themselves are engaging in a form of diversion,” said U.S. Attorney Romero. “Physicians and pharmacists have a responsibility to ensure that all controlled substances are tracked through a distribution chain and are prescribed in the usual course of professional practice. Our office is committed to ensuring total compliance with the Controlled Substances Act and we will vigorously enforce violations whenever we find them. Self-prescribing by physicians is no exception.”

“The goal of DEA’s closed system of distribution is to create accountability for controlled substances – this includes accountability for physicians who self-prescribe controlled substances,” said Thomas Hodnett, Special Agent in Charge of DEA’s Philadelphia Field Division. “By self-prescribing numerous prescriptions for controlled substances over the course of more than two years, Rubino violated this closed system and created an environment where controlled substances could not be tracked through a distribution chain. As a pain management physician himself, Rubino should have known better.”

The government’s pursuit of this matter illustrates its emphasis on combating diversion of controlled substances. The dispensing and distributing requirements applicable to DEA registrants, including physicians, are the tools by which the DEA deters drug diversion.

The investigation was conducted by the DEA’s Philadelphia Field Division, and the investigation and settlement were handled by Assistant U.S. Attorneys Deborah W. Frey and Anthony Scicchitano.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jason James Cain, 49, of Oxford, Pa., has been charged by indictment with seven counts of manufacture and attempted manufacture of child pornography, and two counts of possession of child pornography.

The charges arise out of the defendant’s alleged sexual abuse and exploitation of seven minor children in his care over more than a 3½ year period, including exposing himself to the children, touching both himself and the children in a sexual manner, having the children touch him, and using various cameras to record the children as they used the toilet. The victims ranged in age from two to nine years old. 

At the time that he allegedly committed these child sex crimes, the defendant was employed by the United States Army Research Laboratory. Cain has been incarcerated at the Chester County Prison since his arrest in December 2023 on related state charges.

If convicted of the federal charges, the defendant faces a mandatory minimum of 15 years’ imprisonment and a maximum possible sentence of life imprisonment, a mandatory minimum of five years of supervised release up to a lifetime of supervised release, and monetary penalties of up to $434,000. He would also be required to register under the Sex Offender and Notification Act (SORNA) as a child sex offender.

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, the Chester County District Attorney’s Office’s Chester County Detectives, and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorney Michelle Rotella.

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 Ari Tietolman, 50, of Montréal, Canada, was sentenced to 10 years in prison, three years of supervised release, $7,042.898.22 in restitution, and a $700 special assessment by United States District Judge Gerald A. McHugh, all arising from Tietolman’s operation of a massive scheme from Canada that targeted American senior citizens with deceptive telemarketing calls for nearly a decade.

Tietolman was charged in 2017 by superseding indictment with three counts of wire fraud and four counts of money laundering. He was extradited from Canada to the United States in 2023 and pleaded guilty to all seven counts against him in January of this year.

From 2005 to 2014, Tietolman directed his fraud scheme from Montréal, Canada. In this scheme, Tietolman’s network of telemarketers sold worthless or non-existent services and then debited the victims’ bank accounts without their informed consent. Through this scheme, Tietolman and his co-schemers, including codefendants Marc Roy Ferry and Adam Harper, took millions of dollars from tens of thousands of senior citizens in the United States.

Tietolman created a number of fraudulent companies that sold purported fraud protection services, a purported prescription drug discount card, and a purported discounted legal service. The products and services offered by the fraudulent companies were worthless or non-existent.

After Tietolman obtained names and telephone numbers of elderly Americans, he and Harper hired and instructed telemarketers to call these elderly Americans to sell the worthless or non-existent products and services offered by the fraud companies. Most of Tietolman’s telemarketers were based in “boiler rooms” in and around Montréal. In addition, there was at least one “boiler room” in India. Tietolman and Harper called these rooms “fulfillment rooms.”

During their calls, Tietolman’s telemarketers made various misrepresentations, such as stating that they were calling on behalf of, or were affiliated with, the victim’s bank, the victim’s insurance company, or the United States government. In addition, Tietolman’s telemarketers often misled the consumers about the need for these products and services.

In addition to misrepresenting the value of the products being marketed, Tietolman’s telemarketers also misrepresented the cost of these products, sometimes telling consumers the products were free, or less expensive than the amount that was ultimately debited from the consumers’ bank accounts. In other instances, the telemarketers assured consumers they would not debit the consumers’ bank accounts and then did just that after the consumer provided their bank account information.

As part of his fraud, Tietolman took extensive efforts to conceal his involvement, using front companies, nominees, remotely created checks (“RCCs”), and structured deposits. Furthermore, when the fraud was detected but before a bank account was closed, Tietolman would sometimes instruct his co-schemer Ferry to “hammer” the account, that is, deposit as many checks as possible before the account was closed. Finally, knowing that banks would close accounts used to facilitate fraud, Tietolman caused his co-schemers to open accounts at several banks in the United States simultaneously, to make sure that the scheme kept running even when one or more accounts were frozen or closed.

Codefendants Marc Roy Ferry and Adam Harper previously entered their guilty pleas in the case and are also awaiting sentencing. Both Ferry and Harper have been released on bail conditions.

“Ari Tietolman directed an almost decade-long scheme that scammed seniors out of millions of their hard-earned dollars,” said U.S. Attorney Romero. “Specifically targeting the elderly because you consider them easy prey is deplorable. My office and our partners at the FBI and IRS-CI are determined to hold criminals like Tietolman accountable and protect older folks from these callous crooks seeking to take advantage of them.”

“For nearly a decade, Ari Tietolman scammed senior citizens across the country out of their life’s savings, even stooping so low as to sell his victims purported services that would protect them from fraud,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “As this sentencing shows, we at the FBI and our partners at the U.S. Attorney’s Office and IRS – Criminal Investigation will pursue justice no matter where or when federal crimes occur.”

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant United States Attorneys Vineet Gauri and Eric D. Gill. The Justice Department’s Office of International Affairs worked with law enforcement partners in Canada to secure the arrest and extradition of Tietolman to the United States. 

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Philip C. Pulley, 62, of Huntington Valley, Pennsylvania, was charged by information with falsely registering to vote, double voting, and election fraud.

The information charges that in 2018, while registered to vote in Montgomery County, Pennsylvania, defendant Pulley also registered to vote in Broward County, Florida. In 2020, defendant Pulley, who was already registered to vote in Montgomery County and Broward County, allegedly registered to vote in Philadelphia County, Pennsylvania, using a false home address in Philadelphia and social security number. In the 2020 general election, which included the election for President and Vice President of the United States, it is alleged that Pulley requested a mail-in ballot to vote in Philadelphia, and voted in both Broward County and Montgomery County. In the 2022 general election, which included the election for United States Senator, Pulley allegedly voted in both Montgomery and Philadelphia Counties.

If convicted, on each count of the information the defendant faces a maximum possible sentence of five years of imprisonment, three years of supervised release, a $10,000 to $250,000 fine, and a $100 special assessment.

The case was investigated by the Federal Bureau of Investigation 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.

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 Wanderis De La Cruz, 24, of Worcester, Massachusetts, was charged by indictment with one count of attempting to provide contraband in prison.

The charge arises from De La Cruz’s attempt to smuggle 18 sublingual 8mg films of Suboxone to an inmate at the Federal Detention Center Philadelphia in July of 2024.

If convicted, the defendant faces a maximum possible sentence of 5 years’ imprisonment.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Meghan E. Claiborne.

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 Ivory S. Cousins, 35, of West Deptford, New Jersey, was arrested and charged by indictment with violating the constitutional rights of a prison inmate by ignoring his significant injuries from an assault by other inmates, pepper spraying him, helping another inmate to steal from him, and obstructing the investigation of what happened to him.

According to the indictment, the defendant was a correctional officer employed by the Philadelphia Department of Prisons in August 2019. While on duty at the Curran-Fromhold Correctional Facility, the indictment alleges that the defendant became aware that an inmate had been assaulted by other inmates and had serious injuries, but she was deliberately indifferent to his serious medical needs, failed to get him medical attention, and prevented a superior officer from discovering the inmate’s injuries. After her partner discovered the injured inmate and called for medical attention, but before assistance arrived to escort him to the medical unit, the indictment charges that the defendant subjected the injured inmate to excessive force, that is, she unreasonably pepper sprayed him. When the injured inmate had been escorted out of the area for medical attention, the indictment alleges that the defendant further violated the injured inmate’s constitutional rights by helping one of the inmates involved in his assault to steal his personal belongings from his cell. When she later completed a report about the incident, the indictment charges that the defendant provided false information about the injured inmate being aggressive, engaging in a fight, and using a weapon.

If convicted, the defendant faces a maximum possible sentence of up to 41 years’ imprisonment, three years of supervised release, a $1 million fine, and a $400 special assessment.

The case was investigated by the Federal Bureau of Investigation, with assistance from the Philadelphia Department of Prisons, and is being prosecuted by Assistant United States Attorneys Nancy E. Potts and Everett R. Witherell.

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 Imoleayo Samuel Aina, 26, and Samuel Olasunkanmi Abiodun, 24, were extradited from Nigeria to the United States to face charges related to the sexual extortion and death of a young man in the Eastern District of Pennsylvania.

Aina is charged with cyberstalking, interstate threat to injure reputation, and receiving proceeds of extortion. Both Aina and Abiodun are charged with wire fraud and money laundering conspiracy.

After being charged by complaint, Aina and Abiodun were arrested in Nigeria and taken into custody by the FBI on July 31, 2024. They were extradited to the United States with the assistance of the Justice Department’s Office of International Affairs, the FBI Legal Attaché in Abuja, and the FBI. The support and assistance of Nigerian security authorities was essential to this effort, notably that of Nigeria’s Attorney General of the Federation and Minister of Justice, the Federal Ministry of Justice’s International Criminal Justice Cooperation Department, and the Economic and Financial Crimes Commission.

Aina and Abiodun have now been brought to the Eastern District of Pennsylvania for prosecution and appeared in federal magistrate court in Philadelphia before U.S. Magistrate Elizabeth T. Hey on Friday, August 2.

If convicted of the charged offenses, Aina faces a maximum possible sentence of lifetime imprisonment, and Abiodun faces a maximum possible sentence of 40 years’ imprisonment.

The case was investigated by the Federal Bureau of Investigation and the Abington Township Police Department and is being prosecuted by Assistant United States Attorney Patrick Brown.

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 Philip Everton McPherson II, 36, of Haddon Township, NJ, was charged by indictment with one count of involuntary manslaughter and 40 counts of serving as an airman without a certificate, in connection with a 2022 plane crash in Lehigh County that killed a student pilot.

According to the indictment, on September 28, 2022, McPherson took off as the pilot-in-command of a Piper-28-140 aircraft from Queen City Airport in Allentown, PA, with student pilot K.K. Shortly after takeoff, McPherson crashed the plane, killing K.K.

The indictment alleges that McPherson acted with gross negligence because he knew that he was not competent to safely fly an aircraft as the pilot-in-command. Specifically, McPherson knew that: (1) he was not competent to safely operate the aircraft because he had two prior accidents and almost a third; (2) he failed his September 29, 2021, reexamination for his pilot’s certificate for a lack of demonstrated competence; (3) he voluntarily surrendered his pilot’s certificate on October 7, 2021, acknowledging his lack of competence; and (4) he allowed his Temporary Airman Certificate to expire on November 8, 2021, thus further acknowledging his inability to demonstrate to the Federal Aviation Administration (“FAA”) his competence to fly safely.

The indictment further charges McPherson with 40 counts of illegally serving as the pilot-in-command of an aircraft with passengers while not possessing an FAA pilot’s certificate permitting him to do so. These flights occurred between October 12, 2021, and September 20, 2022.

If convicted, the defendant faces a maximum possible sentence of 128 years’ imprisonment, three years’ supervised release, a $10.25 million fine, and a $4,100 special assessment.  

The case was investigated by the United States Department of Transportation – Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Robert W. Schopf and Special Assistant United States Attorney Marie Miller.

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 an indictment was unsealed against Josh S. Verne, 47, formerly of Gladwyne, PA, now a resident of Fort Lauderdale, FL, charging him with 28 separate federal crimes, including securities fraud, wire fraud, aggravated identity theft, witness retaliation, and witness intimidation.

According to the indictment, Verne carried out a series of schemes from at least in or about 2017 to 2020, through which he defrauded dozens of investors, prospective investors, employees, and business partners out of millions of dollars, forged documents, and obstructed justice by threatening, intimidating, and retaliating against others in connection with the federal criminal investigation.

The indictment alleges that Verne held himself out as a wealthy and successful businessman, entrepreneur, and investor, and that he carried out his fraudulent activities through a series of limited liability companies, of which he was the chief executive and over which he maintained control. It is alleged that, among other things, Verne falsely represented his prior business successes, falsely represented his personal net worth, falsely represented his own investments, and falsely represented the financial health of his companies and investments, in order to induce others to invest in or provide loans to him or his companies. For instance, according to the indictment, Verne provided an investor with a forged Goldman Sachs statement that showed family investment holdings for Verne of more than $50 million, when, in fact, Verne did not have an investment account at Goldman Sachs in his own name or in his family’s names, much less an account with a market value of more than $50 million.

It is further alleged that Verne misused business and investor funds to repay prior debts and to finance an affluent lifestyle he could not afford, such as personal expenses related to renovations to his showcase vacation property on the Jersey shore, travel on private jets, contributions to political candidates, personal charitable contributions, and country club payments. According to the indictment, in order to delay and prevent discovery by law enforcement of his own misconduct, Verne later sent bank and FedEx confirmations purporting to confirm delivery of funds to investors to whom he had promised repayment; the bank and FedEx confirmations were false and fraudulent.

The indictment further alleges that Verne stole the identity of a former employee from his company, forging the employee’s signature on a sales agreement to disguise an unauthorized sale of the employee’s shares of stock. According to the indictment, Verne obtained $150,000 from the unauthorized sale and used those funds to make payments to himself and to a prior investor.

Finally, the indictment alleges that, after Verne met with the Federal Bureau of Investigation and learned details about the investigation, Verne obstructed justice by contacting the former employee and threatening to divulge false, embarrassing information about him because the employee provided information to law enforcement.  

Verne was arrested today in Fort Lauderdale. He is expected to appear in federal court in Philadelphia next week for an arraignment.

If convicted, the defendant faces a maximum possible sentence of 532 years in prison (including a mandatory minimum of two years in prison to run consecutively to any other term of imprisonment), three years of supervised release, a $21,250,000 fine, and a $2,800 special assessment.

If you, your family member, or anyone that you know believes they may have been a victim of these crimes and would like to report the information, please contact the Federal Bureau of Investigation at 215-418-4000 and reference “Josh S. Verne.”

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Paul G. Shapiro and Jerome M. Maiatico. The Securities and Exchange Commission’s Philadelphia Regional Office investigated civil securities fraud charges against Verne, which are pending.  

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 Harold Daleus, Jr., 49, of Bethlehem, PA, was sentenced to 20 years in prison to be followed by a lifetime of supervised release by United States District Judge John M. Gallagher for production of child pornography and related offenses.

For years, Daleus wired money to the Philippines, in exchange for live access to the sexual abuse of children. Daleus paid Filipino child sex traffickers over $24,000, in order to view the live transmissions of children being sexually abused at his direction.

In December 2022, Homeland Security Investigations seized Daleus’ electronic devices from his home and identified dozens of videos and images depicting the sexual abuse and exploitation of prepubescent children. The defendant was indicted in August 2023 and subsequently pleaded guilty to production of child pornography, the use of the internet to entice a minor to engage in sexual conduct, receipt of child pornography, and possession of child pornography.

Homeland Security Investigations worked with law enforcement in the Philippines to secure convictions abroad of the involved child sex traffickers.

“Harold Daleus paid for the ongoing sexual abuse of numerous children, providing explicit instructions for the vile acts that he wanted to watch in real time,” said U.S. Attorney Romero. “Whether they’re here at home or half a world away, we must protect our vulnerable young kids from exploitation by predators and traffickers. This sentence ensures accountability for Daleus and some measure of justice for those he victimized.”

“HSI’s global reach, cybercrime expertise and dedication to protecting children in the U.S. and abroad has enabled us to bring this dangerous predator to justice,” said Acting Special Agent in Charge of HSI Philadelphia Nathan R. Abel. “Our partnership with the tremendous prosecutors of the U.S. Attorney’s Office for the Eastern District of Pennsylvania continues to produce results for the American public and protect innocent children around the world.”

The case was investigated by Homeland Security Investigations, Allentown Resident Office, and is being prosecuted by Assistant United States Attorneys Priya T. De Souza and Tatum Wilson.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Reginald Adams, aka “Reggie Adams,” 25, of Chambersburg, PA, was sentenced today by Senior United States District Court Judge Michael Baylson to 22 months’ imprisonment and three years of supervised release, for hacking into numerous social media accounts and circulating the victims’ private photographs.

On January 30, 2024, the defendant pleaded guilty to one count of wire fraud.

From May 2020 to August 2021, Adams hacked into the Snapchat accounts of at least 20 female victims. Targeting mostly women he knew from high school, he tricked the victims into providing their account security codes by sending them text messages from anonymized numbers claiming to be Snapchat official staff. Once he obtained the security codes, he logged into the victims’ accounts and reset the passwords. He located any private sexually explicit photographs in the “My Eyes Only” section of the accounts and shared them with the victims’ contacts – their friends, family, coworkers, and acquaintances. Sometimes, he posted the victims’ private photos on public websites, along with the victims’ contact information, which led to victims receiving unsolicited messages from unknown individuals who had seen their private photos. He also extorted victims, tricking them into sending him photos by falsely promising to pay them, then using their photos to control the victims and extract more photos.

“It’s truly hard to understand why someone would be this cruel,” said U.S. Attorney Romero. “What’s crystal clear, though, is that Reginald Adams respects the law as little as he respects women. Again and again, he deliberately targeted, tricked, and took the most personal of photos from his victims, posting them online, violating their privacy, and causing significant emotional distress. We and our partners at the FBI take crimes like this incredibly seriously, and we’re committed to seeking justice for victims and accountability for cyber predators like Adams.”

“When criminals attempt to exploit the privacy of those in our communities, the FBI and our partners will not stand idly by,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “This sentence sends a clear message; if you commit such criminal activity, we will bring you to justice.”

The case was investigated by the FBI and prosecuted by Assistant United States Attorney Sarah M. Wolfe.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that John Nusslein, 20, of Philadelphia, PA, was sentenced today by United States District Court Judge John M. Younge to 300 months’ imprisonment, five years of supervised release, restitution of $5,300, and a $300 special assessment, in connection with the carjackings of two food delivery drivers in Northeast Philadelphia during November and December of 2021.

Nusslein was charged by indictment in June 2022, and on April 2, 2024, he pleaded guilty to one count of conspiracy to commit carjacking, one count of carjacking resulting in death, and one count of carjacking resulting in serious bodily injury.

The defendant and others committed two carjackings during the course of the conspiracy that took place between November 29, 2021, and December 29, 2021. The incidents detailed are as follows:

• On December 2, 2021, Nusslein and two others placed a food delivery order to an address on the 3000 block of Teesdale Street in Philadelphia, as a ruse to lure their intended victim to that location. At approximately 7:00 p.m., when C.C., a food delivery driver, arrived at that location, Nusslein, Person 1, and Person 2 approached C.C. and struck him repeatedly to facilitate the taking of C.C.’s vehicle, a 2004 Toyota Camry. Nusslein, Person 1, and Person 2 then fled the area in C.C.’s stolen Toyota Camry. C.C. was later taken to the hospital by first responders. On December 21, 2021, C.C. succumbed to his injuries and the Philadelphia Medical Examiner’s Office determined that the cause of death was the assault that C.C. sustained during the carjacking.

• On December 16, 2021, Nusslein and Person 1 placed a food delivery order to an address on the 9000 block of Hilspach Street in Philadelphia, as a ruse to lure their intended victim to that location. At approximately 9:10 p.m., when W.Z., a food delivery driver, arrived at that location, Nusslein and Person 1 approached W.Z., pointed a firearm at him, demanded his money, and struck him to facilitate the taking of W.Z.’s vehicle, a 2015 Infiniti QX5. Nusslein and Person 1 then fled the area in W.Z.’s stolen Infiniti QX5.

“A man just trying to make a living lost his life, because John Nusslein wanted his car,” said U.S. Attorney Romero. “Another man was brutally assaulted for the same reason. Such senseless violence demands a strong response on behalf of the victims and the community. Our Philadelphia Carjacking Task Force will continue to work these cases and seek significant sentences to get dangerous criminals off the street. A 20-year-old young man serving 25 years in prison sends a clear message that choosing to commit a carjacking can have life-changing ramifications.”

“This perpetrator’s intentional and brutal acts for nothing more than to rob and steal their unsuspecting victims’ cars is reprehensible,” said ATF Special Agent in Charge Eric DeGree. “This case is a reminder that carjacking is deadly dangerous and a serious federal crime with lengthy prison sentences. ATF Philadelphia Field Division will continue our diligent work with our partners in the Philadelphia Carjacking Task Force and sharing ATF’s 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 Attorney Lauren E. Stram and Assistant United States Attorney Robert E. Eckert.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Kevin L. Smith, 29, of Philadelphia, PA, was sentenced today by United States District Court Judge Karen Spencer Marston to 23 years’ imprisonment and 10 years of supervised release for sex trafficking multiple victims, one of them a minor.

On December 2, 2023, Smith pleaded guilty to one count of sex trafficking of a minor, and three counts of sex trafficking by force, threats of force, coercion and attempt.

The charges stemmed from Smith’s operation of a sex trafficking ring in Philadelphia and the surrounding region, including Bucks and Delaware counties. In September 2019, Smith knowingly harbored, maintained, and advertised a minor, knowing the minor would be caused to engage in a commercial sex act. The defendant also operated a sex trafficking enterprise at various times over a period of two years from July 2015 to July 2017, during which he used physical threats to force two young women to have sex for money.

“Smith’s sexual exploitation of his victims was horrific,” said U.S Attorney Romero. “May those victims take some comfort, and find some measure of justice, in the lengthy prison sentence he’ll now be serving. Our office, alongside the FBI and our other partners, is working every day to put away these predatory sex traffickers who for some reason feel entitled to treat vulnerable young people as their personal property.”

“Sex trafficking, especially when it involves a minor, is one of the most heinous crimes we investigate,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The sentencing of Kevin Smith is not just a testament to the diligent investigative work conducted by the FBI and our law enforcement partners, but reaffirms our mission of protecting innocent victims from exploitation.”

This case is 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 U.S. Attorneys’ Offices and Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc.

The case was investigated by the FBI, with assistance from the Delaware County Criminal Investigation Division (CID), the Bensalem Police Department, the Media Borough Police Department, the Tinicum Township Police Department, and the Philadelphia Police Department, and prosecuted by Assistant United States Attorney Brittany Jones and Assistant United States Attorney Priya T. DeSouza.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Cushmir McBride, 25, of Yeadon, PA, was sentenced by United States District Court Judge Joshua D. Wolson to 90 months’ imprisonment, three years of supervised release, $417,463 in restitution, and a $300 special assessment for setting off explosives near ATMs inside a Target, a Wells Fargo bank branch, and Wawa stores.

McBride and two others were charged in connection with those crimes in an April 2021 indictment and a January 2022 superseding indictment. In January of this year, McBride pleaded guilty to conspiracy to maliciously damage property used in interstate commerce by means of an explosive, and aiding and abetting, as well as five separate counts of maliciously damaging property used in interstate commerce by means of an explosive.

Several of the crimes took place in the aftermath of the October 26, 2020, Philadelphia police officer-involved shooting in the Cobbs Creek section of Philadelphia that resulted in the death of Walter Wallace, Jr. Peaceful protests began that evening and continued into the following days, accompanied by a period of civil unrest, with widespread incidents of looting and violence in various neighborhoods in Philadelphia.

On October 28, 2020, McBride and codefendants Nasser McFall, 25, of Claymont, DE, and Kamar Thompson, 37, of Philadelphia, PA, conspired to break into a Target in the Port Richmond section of Philadelphia and set off an explosive device in order to steal money from an ATM inside. The following day, October 29, the defendants broke into a Wawa on Richmond Street in Philadelphia, where they again set off explosive devices in order to steal money from the ATM. On October 31, 2020, the defendants broke into another Wawa in Northeast Philadelphia and detonated an explosive device. On November 4, 2020, the defendants set off an explosive device in another Wawa in Claymont, DE, in an attempt to rob this store in the same manner, and on December 2, 2020, the three defendants set off an explosive device inside an ATM at a Wells Fargo bank in Philadelphia. McBride was also charged with setting off an explosive device at a Wells Fargo ATM in Philadelphia on March 2, 2021. In total, the defendants were able to steal approximately $417,000 during the course of the conspiracy.

Thompson pleaded guilty in November 2021 to conspiracy to maliciously damage property used in interstate commerce by means of an explosive, and aiding and abetting, six counts of maliciously damaging property used in interstate commerce by means of an explosive, and possession of a firearm by a convicted felon.

McFall pleaded guilty to five counts against him in June 2022, and in January of this year was sentenced by the late U.S. District Judge Gene E.K. Pratter to 78 months’ imprisonment, three years of supervised release, and restitution in the amount of $256,083.

“McBride and crew carried out a string of violent and dangerous crimes, looking to cash in with a bang,” said U.S. Attorney Romero. “Whether you rob a bank with a note, a store with a gun, or an ATM with an explosive, you’re committing a serious federal crime and should expect to be caught and prosecuted. As this defendant and his co-conspirators are learning, crime not only doesn’t pay, it can also cost you dearly.”

“McBride caused significant damage and endangered countless lives by recklessly blowing up ATMs with illegal explosive devices at least six times,” said Eric DeGree, Special Agent in Charge of ATF’s Philadelphia Field Office. “ATF is committed to protecting our communities from harm and working with our law enforcement partners to disrupt violent explosives-related activity. I want to thank the Philadelphia Police Department, Philadelphia Fire Marshals Office, Delaware State Police, Upper Chichester Police Department, and the United States Attorney’s Office for their efforts in this case.”

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, with assistance from Delaware State Police and Upper Chichester Police Department and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Special Assistant United States Attorney David Osborne.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that Avantor, Inc., based in Radnor, PA, has agreed to pay a total of $5.325 million to resolve multiple alleged violations of federal law.

False Claims Act Resolution

First, Avantor has agreed to pay $5 million to resolve allegations that one of its subsidiaries, VWR International, LLC (VWR), violated the False Claims Act by fraudulently overcharging federal agencies for goods purchased between 2008 and 2017 (the “False Claims Act Settlement”). Avantor acquired VWR in 2017.

VWR is a global distributor of scientific and technical laboratory supplies, including chemicals, glassware, instruments, protective clothing, and production supplies. VWR has entered into procurement contracts with agencies of the United States to sell their products under agreed terms, including provisions under which VWR agrees to offer or provide federal government purchasers buying goods from VWR with the same or better prices that VWR offered or provided to an agreed-upon, private-sector basis of award customer (“Most Favored Customer Pricing”).

The United States’ allegations under the False Claims Act arise from four government contracts VWR entered into with government agencies. These contracts include two Multiple Award Schedule Contracts (“GSA MAS Contracts”) VWR entered into with the U.S. General Services Administration (GSA) in 1995 and in 2015, which provided a streamlined process for federal government buyers to purchase goods from VWR at discounted prices and required VWR to meet specified conditions. Several different United States agencies, including the Department of Defense, purchased VWR products under the GSA MAS Contracts, which provided for Most Favored Customer Pricing. The contracts at issue also include a 2001 Blanket Purchase Agreement that VWR entered into with the National Institutes of Health (NIH), an agency of the U.S. Department of Health and Human Services, and a 2005 contract VWR entered into with the U.S. Department of Veterans Affairs (VA) under Federal Supply Schedule 65 VI. Both the NIH and VA made purchases from VWR under their respective contracts, which both contained best price provisions.

The United States alleged that VWR violated the False Claims Act when performing its obligations under these government contracts (the “Schedule Contracts”) by:

• Failing to offer or provide federal government purchasers buying goods from VWR under the Schedule Contracts with Most Favored Customer Pricing;

• Increasing pricing for federal government purchasers, while not increasing prices for the Most Favored Customer;

• Failing to provide federal government purchasers with the same rebates, discounts, incentives, and other favorable terms offered to the Most Favored Customer;

• Failing to report and adjust the prices that VWR offered to federal government purchasers to be consistent with those offered to the Most Favored Customer;

• Failing to report and reduce prices or make refunds to federal government purchasers, as required by the Price Reductions Clauses in the Schedule Contracts; and

• Failing to report changes in VWR’s commercial pricing practices or policies from those disclosed to the federal government during the parties’ pricing negotiations, and to reduce federal government pricing accordingly.

The United States alleged that, as a result of this conduct, VWR knowingly submitted false or fraudulent claims for payment to the United States in violation of the False Claims Act.

“Contractors are expected to understand and carefully comply with the requirements of federal contracts,” said U.S. Attorney Romero. “This settlement under the False Claims Act demonstrates that the federal government will hold accountable contractors that overcharge agencies by failing to follow the pricing terms of federal contracts, and should be seen as a warning to contractors that false claims have no place in government purchasing.”

“GSA’s Office of the Inspector General will continue to investigate any allegations of GSA contractors overcharging federal agencies at the expense of American taxpayers,” said GSA Acting Inspector General Robert Erickson. “I appreciate the hard work of those who worked on this case.”

“Companies that contract with the U.S. Department of Health and Human Services are required to abide by the set agreements including charging the same or better prices as other customers,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG takes allegations of false claims in contracts seriously and will continue to work with our law enforcement partners to ensure the integrity of the federal contracting process.”

“The integrity of the DoD procurement process is of vital importance to the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Brian J. Solecki, Acting Special Agent in Charge of the DCIS Northeast Field Office. “The DoD expects its contractors to adhere to contract requirements and the DCIS will continue to work with its law enforcement partners and the Department of Justice to ensure DoD contractors who engage in fraudulent activity at the expense of the U.S. Military are held accountable for their actions.”

The False Claims Act Settlement also resolves a lawsuit originally brought by Adrian G. Scioli, a former VWR employee, under the whistleblower, or qui tam, provisions of the False Claims Act. The Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Scioli will receive approximately $1,100,000 of the settlement. The lawsuit is captioned United States et al., ex rel. Scioli v. VWR International, LLC, et al., No. 17-cv-2574 (E.D. Pa.).

The False Claims Act Settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the GSA Office of Inspector General, the U.S. Department of Health and Human Services Office of Inspector General, the U.S. Department of Veterans Affairs Office of Inspector General, and the Defense Criminal Investigative Service.

The False Claims Act matter is being handled in the U.S. Attorney’s Office by Assistant United States Attorneys Lauren DeBruicker and Mark J. Sherer, and Auditor Dawn Wiggins.

DEA Resolution

In addition, Avantor has agreed to pay $325,000 to resolve allegations that it and its subsidiaries, including VWR, failed to comply with a number of compliance obligations between 2013 and 2023 pertaining to its dealings in listed chemicals, which are regulated by the Drug Enforcement Administration (DEA). The company also entered into an administrative agreement with the DEA that imposed a variety of heightened accountability obligations.

Certain chemicals are categorized as listed precursor chemicals, i.e., chemicals, which in addition to their legitimate uses, can be used in manufacturing a controlled substance in violation of federal law and are important to the manufacture of the controlled substances. Those listed chemicals are divided into two groups: List I chemicals and List II chemicals. Avantor is a chemical importer, manufacturer, distributor, and exporter registered with the DEA at various locations across the United States.

Companies that conduct international imports and exports of List I chemicals are generally required to submit at least two separate reports to the DEA for each transaction: (1) a notification of the transaction to the DEA prior to any import or export; and (2) a return declaration to the DEA containing particulars of the transaction that was completed, including the date, quantity, chemical, container, and name of transferees.

In addition, when a regulated person engages in a regulated transaction involving a listed chemical, the company is required to maintain records of that transaction. The records must include the name, address, contact information, and, if required, DEA registration number of each party to the regulated transaction; the date of the regulated transaction; the quantity, chemical name, and the form of packaging; the method of transfer; and the type of identification used by the purchaser and any unique number on that identification.

The DEA conducted a number of inspections of Avantor’s facilities over the past several years, during which it alleges it identified violations of its listed chemical obligations by Avantor, including inspections at its Paris, Kentucky, facility; its Manati, Puerto Rico, facility; and its Bridgeport, New Jersey, facility.

The United States alleged that Avantor failed to comply with its listed chemical compliance obligations in a number of ways at these facilities, between 2013 and 2023. For example, the settlement agreement alleges that Avantor committed the following violations, at certain periods of time and at certain of its facilities:

• received and distributed listed chemicals while failing to properly document the correct registration number or the customer’s registration number;
• repackaged chemicals under an improper registration number;
• exported listed chemicals under the wrong registration number;
• failed to properly annotate information on DEA import/export forms;
• shipped chemicals that met or exceeded its threshold without making the required submission to DEA.

Avantor self-disclosed some of the alleged violations with respect to its exporter registration in Paris, Kentucky.

The United States alleged that, as a result of this conduct, it had certain civil claims against Avantor under the Controlled Substances Act. There are no allegations that the listed chemicals at issue here were used to manufacture illicit controlled substances.

In addition to the monetary component, the company also entered into an administrative agreement with the DEA. The agreement imposes a number of reporting and compliance obligations on the company for a period of time.

“Companies that deal in listed chemicals are held to high standards since the chemicals can be used to manufacture illicit controlled substances,” said U.S. Attorney Romero. “It is critical that companies live up to the compliance obligations imposed by federal law and regulation to ensure accountability and proper monitoring.”

“Listed chemicals can be used as precursors to illicitly manufacture dangerous synthetic drugs, such as fentanyl and methamphetamine,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “It is essential to public safety and the lives of Americans that all companies handling listed chemicals—including large-scale chemical enterprises operating domestically and abroad—adhere closely to DEA regulations.”

The DEA Settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the DEA Philadelphia Field Division, and DEA Headquarters, including the DEA Office of Chief Counsel and the DEA Diversion Control Division Chemical Investigations Section. Additional assistance was provided by the DEA Caribbean Field Division, DEA Louisville Field Division, DEA Atlanta Field Division, DEA Chicago Field Division, and DEA New Jersey Field Division.

The DEA matter is being handled in the U.S. Attorney’s Office by Assistant United States Attorney Anthony D. Scicchitano, with assistance from Frank O’Connor, Jeffrey Braun, and Andrew Schobert.

The claims resolved by these settlements are allegations only; there has been no determination of liability.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that an indictment charging eight members and associates of a local Philadelphia gang known as Omerta was unsealed today. The indictment charges various crimes including racketeering conspiracy, murder in aid of racketeering, conspiracy to commit counterfeiting, and mail and wire fraud. 

The defendants charged in the nine-count indictment are Jahlil Williams, aka “Bill,” “25th Street Bill,” “Kill Bill,” age 25; Rakiem Savage, aka “Roc,” “Fat Roc,” “roc30st_,” age 26; Kyair Garnett, aka “Ky Jefe,” “Jefe,” age 23; Haneef Roberson, aka “Haneef Robinson-Tucker,” “Neef,” “Black Neef,” “BlackNeef25st,” age 23; Biheis Moore, aka “Heis,” “Klay,” “klay_30st,” “heis.30st,” age 24; Rakiem King, aka “Cat,” “Hellcat,” “Hellcat30st,” age 25; Ward Roberts, aka “Rob,” “YoungWard25,” age 25; and Harry Draper, aka “Coach,” “Unk,” age 46.

The indictment alleges that the defendants were part of a racketeering enterprise that was engaged in murder, murder for hire, shootings, firearm possession, counterfeiting, money laundering, illegal gambling, robbery, drug trafficking and mail and wire fraud related to COVID-19 relief payments. The conspiracy spanned from 2018 to 2023, and during that time, members of the conspiracy engaged in multiple acts of violence and fraud to enrich their enterprise, protect their gang territory and their reputation. The Omerta organization is based in the Strawberry Mansion neighborhood of Philadelphia, and is also closely aligned with another, larger Philadelphia gang named “Zoo Gang.” Omerta used social media, music, and music videos to enrich its members, promote their identity and image, recruit new members, brag about their own violent acts, and insult rival gangs and gang members.

Specifically, in September 2021, members of the conspiracy murdered C.J. and shot two other women in a murder-for-hire gone wrong. Then, in November 2021, members of the conspiracy murdered fourteen-year-old S.J. on a street corner in broad daylight because they felt he had either mocked their gang or was related to someone who killed one of their gang members. In addition, mentioned in the indictment are at least two other shootings that members of Omerta committed during the course of the conspiracy to protect their territory, as well as plans to commit murder for hire.

To fund Omerta, members of the conspiracy committed over $1.5 million worth of counterfeiting by visiting stores throughout Pennsylvania and up and down the eastern seaboard to illegally change counterfeit currency for U.S. currency. In addition, members of the conspiracy filed fraudulent Pandemic Unemployment Assistance applications, receiving a total of over $443,000 to fund their illegal enterprise.

If convicted, some defendants face a maximum possible sentence of 20 years in prison, while others face a maximum possible sentence of life in prison.

The case was investigated by the FBI, United States Secret Service, Department of Labor - Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Philadelphia District Attorney’s Office, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Timothy Lanni, Everett Witherell, and Shayna Gannone.

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 David Romero, 68, of Lancaster, PA, was sentenced by United States District Judge Joseph F. Leeson, Jr. to a term of 30 months’ imprisonment and three years of supervised release for his convictions on four counts each of passport forgery and possession of counterfeit passports, as well as one count of possession of 15 or more counterfeit access devices.

Romero was indicted on those charges in July 2023 and pleaded guilty to all counts in February of this year.

According to information presented to the court, special agents of the Department of State, Diplomatic Security Service, executed a search warrant at Romero’s home and recovered fraudulent U.S. passport cards, fraudulent driver’s licenses and identification cards, and counterfeit bank, debit, and credit cards. While the fraudulent passport cards and identification cards utilized the personal identifiers of other people, these items all contained a photograph of Romero. In addition, agents recovered a notebook which Romero had used to practice forging the signatures of other individuals.

The case was investigated by the Department of State, Diplomatic Security Service, and is being prosecuted by Assistant United States Attorneys John Boscia and Timothy Lanni.

PITTSBURGH, PHILADELPHIA, SCRANTON – As part of the Department of Justice’s response to the opioid crisis, the United States Attorneys for the Eastern, Middle, and Western Districts of Pennsylvania hosted a virtual training this week to educate Pennsylvania’s state and local correctional facilities on their obligations under the Americans with Disabilities Act (ADA) to provide inmates with access to medication to treat opioid use disorder (OUD). These medications include methadone, buprenorphine, and naltrexone.

The July 23, 2024, training was open to all prison and jail staff, and over 100 participants, including wardens, security professionals, and medical staff from across the Commonwealth attended.

The training follows recent federal enforcement actions involving the criminal justice system. In November 2023, the U.S. Attorney’s Office for the Western District of Pennsylvania resolved an ADA matter with the Allegheny County Jail for failure to provide inmates medication to treat OUD. In December 2023, the United States Attorney’s Office for the Eastern District of Pennsylvania filed a Statement of Interest in a matter against a Delaware County correctional facility to clarify state and local jails’ obligations under the ADA to provide inmates with access to medication to treat OUD. In January 2024, the United States Attorney’s Offices for the Eastern and Middle Districts of Pennsylvania, in partnership with the Civil Rights Division of the Department of Justice, settled a matter with the Uniform Judicial System of Pennsylvania (UJS) to resolve allegations that UJS courts violated the ADA by preventing individuals under court supervision from taking lawfully prescribed medication to treat OUD. The Department of Justice has also issued public guidance on the ADA’s protections for those with OUD.

Over the course of this enforcement work, the U.S. Attorney’s Offices discovered that correctional facilities across the Commonwealth have questions about their obligations under the ADA when it comes to medications for OUD. To answer these questions and think through solutions, the three offices partnered to host this educational program.
During the webinar, United States Attorneys Jacqueline Romero, Gerard Karam, and Eric Olshan — the senior-most federal law enforcement officials in Pennsylvania — emphasized that individuals with OUD or being treated with medication for OUD are generally considered disabled and protected by the ADA. Under the ADA’s protections, correctional facilities that provide healthcare services must offer treatment with medication for OUD to all individuals in custody for whom such treatment is medically appropriate. Facilities also may not change or discontinue an individual’s medication used to treat OUD, except upon a licensed healthcare provider’s determination that the individual does not require that treatment based on the individual’s current condition. Most importantly, the ADA requires that correctional facilities provide individual assessments and not categorically deny access to OUD medications approved by the Food and Drug Administration that provide life-saving treatment for addiction.

In addition to this legal guidance, the training also featured remarks by Dr. Paul Joudrey of the University of Pittsburgh Medical Center on the science behind, and importance of, all three medications in the treatment of OUD. Heidi Carroll, Diversion Program Manager for the Drug Enforcement Administration’s Philadelphia Division, and Dr. Patti Juliana, Director of the Division of Pharmacologic Therapies at the Substance Abuse and Mental Health Services Administration’s (SAMHSA) Center for Substance Abuse Treatment, addressed recent regulatory changes designed to improve access to methadone in correctional facilities. Dr. Bruce Herdman, Chief of Medical Operations of the Philadelphia Department of Prisons, and Anthony Cantillo, Deputy Commissioner of the Maine Department of Corrections, talked about their experiences implementing programs to treat OUD in correctional facilities and the practical lessons they have learned along the way.

“Each of our districts has been hit hard by the opioid epidemic,” said U.S. Attorney Olshan of the Western District of Pennsylvania. “We rigorously enforce the ADA to ensure that effective OUD treatment will be available to those in correctional facilities across the Commonwealth. As a part of this work, we are happy to offer this training to help jails and prisons learn more about what they must do to address the needs of individuals with OUD and comply with the ADA.”

“Our offices are dedicated to fighting the opioid epidemic with every tool that we have,” said U.S. Attorney Romero of the Eastern District of Pennsylvania. “That includes enforcing the ADA to remove discriminatory barriers to treatment for OUD. This training reminds jails and prisons about their obligations to address the needs of individuals with OUD and comply with the ADA, and provided them with additional tools to use to ensure their facilities comply with the law.”

“As we continue to vigorously prosecute those who traffic in and profit from drugs like heroin and fentanyl, our mission in fighting this epidemic requires we ensure individuals with OUD have continued access to medically prescribed treatment,” said U.S. Attorney Karam of the Middle District of Pennsylvania. “This training presented an opportunity for experts in the field of addiction, representatives from federal agencies, our own civil rights attorneys, and leaders in correctional facilities across the Commonwealth to come together to have questions answered, think through solutions, and initiate a local, state, and federal partnership. Our partnership is forged in the notion that medical treatment for inmates can dramatically reduce opioid overdose deaths.”

The training was coordinated by Assistant United States Attorneys Lauren DeBruicker, Michael Butler, and Adam Fischer, civil rights coordinators for the United States Attorney’s Offices for the Eastern, Middle, and Western Districts of Pennsylvania, respectively.

For more information about the Justice Department’s work to address discrimination against individuals with opioid use disorder, please visit www.ada.gov/topics/opioid-use-disorder. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. Members of the public may report possible civil rights violations at civilrights.justice.gov/report, or by contacting their local U.S. Attorney’s Office. In the Western District of Pennsylvania, call 412-894-7343 or email USAPAW.CivilRights@usdoj.gov. In the Eastern District of Pennsylvania, call 215-861-8555 or email USAPAE.civilrights@usdoj.gov. In the Middle District of Pennsylvania, call 717-614-4911 or email usapam.civil.rights@usdoj.gov.

PHILADELPHIA, SCRANTON, PITTSBURGH – As part of the Department of Justice’s response to the opioid crisis, the United States Attorneys for the Eastern, Middle, and Western Districts of Pennsylvania hosted a virtual training this week to educate Pennsylvania’s state and local correctional facilities on their obligations under the Americans with Disabilities Act (ADA) to provide inmates with access to medication to treat opioid use disorder (OUD). These medications include methadone, buprenorphine, and naltrexone.

The July 23, 2024, training was open to all prison and jail staff, and over 100 participants, including wardens, security professionals, and medical staff from across the Commonwealth attended.

The training follows recent federal enforcement actions involving the criminal justice system. In November 2023, the U.S. Attorney’s Office for the Western District of Pennsylvania resolved an ADA matter with the Allegheny County Jail for failure to provide inmates medication to treat OUD. In December 2023, the United States Attorney’s Office for the Eastern District of Pennsylvania filed a Statement of Interest in a matter against a Delaware County correctional facility to clarify state and local jails’ obligations under the ADA to provide inmates with access to medication to treat OUD. In January 2024, the United States Attorney’s Offices for the Eastern and Middle Districts of Pennsylvania, in partnership with the Civil Rights Division of the Department of Justice, settled a matter with the Uniform Judicial System of Pennsylvania (UJS) to resolve allegations that UJS courts violated the ADA by preventing individuals under court supervision from taking lawfully prescribed medication to treat OUD. The Department of Justice has also issued public guidance on the ADA’s protections for those with OUD.

Over the course of this enforcement work, the U.S. Attorney’s Offices discovered that correctional facilities across the Commonwealth have questions about their obligations under the ADA when it comes to medications for OUD. To answer these questions and think through solutions, the three offices partnered to host this educational program.

During the webinar, United States Attorneys Jacqueline Romero, Gerard Karam, and Eric Olshan — the senior-most federal law enforcement officials in Pennsylvania — emphasized that individuals with OUD or being treated with medication for OUD are generally considered disabled and protected by the ADA. Under the ADA’s protections, correctional facilities that provide healthcare services must offer treatment with medication for OUD to all individuals in custody for whom such treatment is medically appropriate. Facilities also may not change or discontinue an individual’s medication used to treat OUD, except upon a licensed healthcare provider’s determination that the individual does not require that treatment based on the individual’s current condition. Most importantly, the ADA requires that correctional facilities provide individual assessments and not categorically deny access to OUD medications approved by the Food and Drug Administration that provide life-saving treatment for addiction.

In addition to this legal guidance, the training also featured remarks by Dr. Paul Joudrey of the University of Pittsburgh Medical Center on the science behind, and importance of, all three medications in the treatment of OUD. Heidi Carroll, Diversion Program Manager for the Drug Enforcement Administration’s Philadelphia Division, and Dr. Patti Juliana, Director of the Division of Pharmacologic Therapies at the Substance Abuse and Mental Health Services Administration’s (SAMHSA) Center for Substance Abuse Treatment, addressed recent regulatory changes designed to improve access to methadone in correctional facilities. Dr. Bruce Herdman, Chief of Medical Operations of the Philadelphia Department of Prisons, and Anthony Cantillo, Deputy Commissioner of the Maine Department of Corrections, talked about their experiences implementing programs to treat OUD in correctional facilities and the practical lessons they have learned along the way.

“Our offices are dedicated to fighting the opioid epidemic with every tool that we have,” said U.S. Attorney Romero of the Eastern District of Pennsylvania. “That includes enforcing the ADA to remove discriminatory barriers to treatment for OUD. This training reminds jails and prisons about their obligations to address the needs of individuals with OUD and comply with the ADA, and provided them with additional tools to use to ensure their facilities comply with the law.”

“As we continue to vigorously prosecute those who traffic in and profit from drugs like heroin and fentanyl, our mission in fighting this epidemic requires we ensure individuals with OUD have continued access to medically prescribed treatment,” said U.S. Attorney Karam of the Middle District of Pennsylvania. “This training presented an opportunity for experts in the field of addiction, representatives from federal agencies, our own civil rights attorneys, and leaders in correctional facilities across the Commonwealth to come together to have questions answered, think through solutions, and initiate a local, state, and federal partnership. Our partnership is forged in the notion that medical treatment for inmates can dramatically reduce opioid overdose deaths.”

“Each of our districts has been hit hard by the opioid epidemic,” said U.S. Attorney Olshan of the Western District of Pennsylvania. “We rigorously enforce the ADA to ensure that effective OUD treatment will be available to those in correctional facilities across the Commonwealth. As a part of this work, we are happy to offer this training to help jails and prisons learn more about what they must do to address the needs of individuals with OUD and comply with the ADA.”

The training was coordinated by Assistant United States Attorneys Lauren DeBruicker, Michael Butler, and Adam Fischer, civil rights coordinators for the United States Attorney’s Offices for the Eastern, Middle, and Western Districts of Pennsylvania, respectively.

For more information about the Justice Department’s work to address discrimination against individuals with opioid use disorder, please visit www.ada.gov/topics/opioid-use-disorder. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. Members of the public may report possible civil rights violations at civilrights.justice.gov/report, or by contacting their local U.S. Attorney’s Office. In the Eastern District of Pennsylvania, call 215-861-8555 or email USAPAE.civilrights@usdoj.gov. In the Middle District of Pennsylvania, call 717-614-4911 or email usapam.civil.rights@usdoj.gov. In the Western District of Pennsylvania, call 412-894-7343 or email USAPAW.CivilRights@usdoj.gov.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Lester Santana III, 34, of Philadelphia, PA, pleaded guilty today before United States District Judge Juan R. Sánchez to one count of evading security requirements at Philadelphia International Airport.

During the plea hearing, the defendant admitted that, while he was employed as an airline employee, he repeatedly used his employee credentials to enter the secure area of the airport with large amounts of U.S. currency to evade the required screening and inspection of his person and property by Transportation Security Administration personnel.

The defendant faces a maximum possible sentence of 10 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment.

The case is being investigated by the United States Postal Inspection Service, the Federal Bureau of Investigation, the Federal Air Marshal Service, the U.S. Postal Service’s Office of Inspector General, the New Jersey State Police’s Strategic Investigations Unit, and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorney Vineet Gauri of the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from Assistant United States Attorney Patrick C. Askin of the U.S. Attorney’s Office for the District of New Jersey.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Gabriel Rivera-Otero, a/k/a “Carlos Vasquez,” a/k/a “Gustavo,” 39, of Philadelphia, PA, and Angel Reyes-Valdez, a/k/a “Abel Anton Alberto Nunez,” 48, a citizen of the Dominican Republic, were convicted at trial of possession with the intent to distribute 400 grams or more of fentanyl and maintaining a drug-involved premises. Reyes-Valdez was also convicted of illegal reentry after deportation.

As proven at trial, on October 28, 2020, Rivera-Otero and Reyes-Valdez met in a parking lot in Philadelphia to transfer six kilograms of fentanyl between them. Agents from the Drug Enforcement Administration (DEA) arrested both men, after recovering the fentanyl from a diaper box on the front passenger seat of Rivera-Otero’s vehicle.

The same day, DEA agents searched two separate Philadelphia residences where Rivera-Otero and Reyes-Valdez stored and packaged large quantities of controlled substances. At the residence used by Rivera-Otero, agents seized approximately 700 grams of fentanyl, drug packaging material, and drug manufacturing equipment. At the residence used by Reyes-Valdez, agents seized approximately 30 kilograms of fentanyl, including numerous brick-shaped packages of the drug and over 110,000 fentanyl pills, as well as drug packaging material, drug manufacturing equipment, a loaded firearm, and over $90,000 in U.S. currency.

Both defendants have prior felony drug convictions in the United States and Reyes-Valdez had been previously deported from the U.S. to the Dominican Republic three times between 2007 and 2014.

“Imagine the human damage that 36 kilograms — about 80 pounds! — of fentanyl could have done on the streets of Philly and beyond,” said U.S. Attorney Romero. “We and our law enforcement partners will continue to battle the dealers and traffickers endangering our communities just so they can profit from the tragedy of the opioid epidemic.”

“Together Rivera-Otero and Reyes-Valdez possessed over 36 kilograms of fentanyl, which is a staggering amount of a potentially lethal drug that has had catastrophic effects on our region and across the nation at large,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “That Reyes-Valdez was deported from the United States on three prior occasions and returned to the Philadelphia area where he was found in possession of the kilograms of fentanyl noted above, over 110,000 fake pills containing fentanyl, and a loaded firearm shows the threat he posed to our community.  Both he and Rivera-Otero will face severe federal prison sentences.”

“Today's most recent federal convictions underscore the critical importance of collaboration between law enforcement agencies to combat the epidemic of drug trafficking in our communities,” said Philadelphia Police Commissioner Kevin J. Bethel. “Let this serve as a strong message to those who seek to profit by poisoning our community members: we will pursue you relentlessly and hold you accountable. The Philadelphia Police Department remains steadfast in our commitment to protecting our neighborhoods and ensuring that justice is served.”

“The criminal collaboration between Gabriel Rivera-Otero and Angel Reyes-Valdez, a noncitizen, is precisely the type of enterprise that the officers of ERO work tirelessly to disrupt in order to safeguard the American public,” said Cammilla Wamsley, Enforcement and Removal Operations Philadelphia Field Office Director. “The interagency cooperation on this investigation has been extraordinary and we look forward to future cooperation with our fellow law enforcement agencies.”

Rivera-Otero faces a mandatory minimum sentence of not less than 15 years’ imprisonment and a maximum sentence of life imprisonment. Reyes-Valdez faces a mandatory minimum sentence of not less than 10 years’ imprisonment and a maximum sentence of life imprisonment.

The case was investigated by the Drug Enforcement Administration, the Philadelphia Police Department, and U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations and is being prosecuted by Assistant United States Attorneys Justin Ashenfelter and Timothy Lanni.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Rafael Vega-Rodriguez, 42, of Reading, PA, was sentenced today by United States District Court Judge Joseph F. Leeson, Jr., to 540 months’ imprisonment, five years of supervised release, a $4,500 fine, and an $800 special assessment for shooting at and attempting to kill three FBI special agents.

In February of this year, Vega was convicted at trial of three counts of attempted murder of a federal law enforcement officer, three counts of assault on a federal officer with a deadly weapon, and two related firearms charges.

On March 1, 2020, in Reading, FBI agents were conducting surveillance while looking for the defendant, who was the subject of an active state arrest warrant for a parole violation. At approximately 11:45 p.m., the agents observed the defendant walking with a second individual. When the agents attempted to stop and arrest him pursuant to the warrant, Vega-Rodriguez drew a handgun from under his sweatshirt and fired at the agents. Vega-Rodriguez continued to shoot as he and the second individual fled from the scene. In total, Vega-Rodriguez fired four rounds at the agents.

After an intense manhunt, investigators discovered that Vega-Rodriguez had fled to Leola, Pennsylvania, approximately 30 miles southwest of Reading. In the early morning hours of March 3, 2020, FBI agents and Pennsylvania State Police Troopers located Vega-Rodriguez, who was hiding in a residence in Leola, and arrested him.

“Rafael Vega-Rodriguez tried to murder three FBI agents doing their job, which, on that day, was to effect his lawful arrest,” said U.S. Attorney Romero. “He’s proven himself to be a violent, dangerous man, a threat not just to law enforcement, but the community, as well. We’re all safer with him behind bars and today’s sentence ensures that’s exactly where he’ll spend the next several decades of his life.”

“The FBI does not tolerate acts of violence against anyone, let alone against our own,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Each and every day, FBI agents place themselves in harm’s way to protect their fellow citizens. Today’s sentencing makes it clear that we will stop at nothing to bring to justice those who commit an act of violence against federal agents.”

The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Timothy M. Stengel and Everett Witherell and former Assistant United States Attorney Mary Futcher.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Dr. David L. Mattingly, a doctor of osteopathic medicine in the Philadelphia area, has agreed to resolve allegations that he improperly prescribed opioid controlled substances to individuals. Dr. Mattingly will pay $72,000 to the United States and agree to strict limitations preventing him from prescribing almost all controlled substances, including drugs like oxycodone.

Under the Controlled Substances Act, physicians like Mattingly are registered with the DEA and are generally permitted to prescribe controlled substances only based on a valid prescription. A prescription is valid only when issued for a legitimate medical purpose and in the usual course of professional practice. That legal obligation applies to controlled substances broadly and includes drugs like the opioid oxycodone. The settlement between the United States and Mattingly resolves allegations that, from February 5, 2015, through September 1, 2018, Mattingly illegally prescribed opioid controlled substances like oxycodone without satisfying these important legal obligations as to a certain number of patients whose records were subpoenaed by the Drug Enforcement Administration (DEA). The settlement agreement covers liability under the Controlled Substances Act, which imposes substantial civil penalties for illegal controlled substance prescriptions.

The settlement agreement permanently prevents Mattingly from prescribing almost all controlled substances, including oxycodone. Mattingly also entered into an administrative agreement with the DEA that includes additional compliance measures, such as continuing education courses.

“Doctors like Mattingly have a responsibility to their patients and the community when they prescribe controlled substances, particularly opioids like oxycodone,” said U.S. Attorney Romero. “It is critical that physicians uphold that responsibility and focus on the safety and well-being of their patients. When they do not and they violate the law by illegally prescribing controlled substances like oxycodone, my office will not hesitate to hold them accountable.”

“Doctors are required to satisfy a two-prong standard when prescribing controlled substances; the first of which is that the prescription be issued for a legitimate medical purpose and the second being that it is done in the usual course of professional practice,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “As part of his obligations under the Controlled Substances Act, Dr. Mattingly was required to ensure that both of these standards were met when he prescribed powerful painkillers such as oxycodone.” 

The case was investigated by the Philadelphia Field Division of the DEA. The civil investigation and settlement were handled by Assistant United States Attorney Anthony D. Scicchitano, Investigator Jeffrey Braun, and Auditor Dawn Wiggins.

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 that Bradley Michael Coleman, 39, of Strausstown, Pennsylvania, was sentenced today by United States District Court Judge Joseph F. Leeson, Jr., to 10 years’ imprisonment, 10 years of supervised release, and $35,000 in restitution on a child pornography-related charge.

Coleman was charged by information and entered a plea of guilty to one count of access with intent to view child pornography, on April 22, 2024. After having been previously convicted in Berks County for possessing child pornography, Coleman used digital currency to attempt to purchase access to child sexual abuse material on the Darkweb. Forensic analysis revealed evidence of nearly 900 images of child pornography on Coleman’s electronic devices, including images depicting very young victims. 

“After having been convicted and imprisoned for this vile behavior once before, Bradley Coleman again sought out horrific images of young children being sexually abused,” said U.S. Attorney Romero. “If consumers of child pornography can’t or won’t stop acquiring it, which only perpetuates the sexual exploitation of child victims, we and our law enforcement partners will gladly step in and stop them.”

“HSI’s expertise in the evolving cyber currency domain has proven crucial to investigating the exploitation of children by criminals operating online,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “Through our outstanding partnership with the U.S. Attorney’s Office for the Eastern District of Pennsylvania, we continue to investigate and prosecute those individuals who prey on our children.”

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 https://www.projectsafechildhood.gov/.

The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorneys Rebecca J. Kulik and Priya T. DeSouza.

PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Professional Pharmacy & Convalescent Products, Ltd., a pharmacy that was based in Pottstown, PA, agreed to resolve allegations that it had improperly dispensed opioids and other controlled substances to individuals, and submitted claims to Medicare and Medicaid for those illegally dispensed controlled substances. The settlement resolves the case for a payment of $150,000 and comes after the pharmacy surrendered its DEA registration.

Under the Controlled Substances Act, pharmacies like Professional that are registered with the DEA are permitted to dispense controlled substances only to patients based on a valid prescription. A prescription is valid only when issued for a legitimate medical purpose and in the usual course of professional practice. That legal obligation applies to controlled substances broadly and includes drugs like the opioid oxycodone. The settlement between the United States and Professional resolves allegations that, from June 1, 2018, through March 4, 2024, Professional illegally dispensed controlled substances like oxycodone without satisfying these important legal obligations, and illegally submitted claims to Medicare and Medicaid for the drugs. The settlement agreement covers liability under the Controlled Substances Act, which imposes civil penalties for illegal controlled substance prescriptions, and the False Claims Act, which imposes civil damages and penalties for false claims to the federal government.

“Federal law imposes obligations on pharmacies like Professional to only dispense controlled substances when appropriate,” said U.S. Attorney Romero. “The law is critical in protecting our community from the dangers of the opioid epidemic. This settlement provides yet another example of my office’s commitment to pursuing misconduct at every level in the opioid supply chain.”

“Professional Pharmacy exhibited a continued disregard of their obligations under the Controlled Substances Act by illegally dispensing powerful controlled substances like oxycodone over a several year period,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Pharmacies are entrusted with properly dispensing controlled substances in their care.” 

“Pharmacies are responsible for all claims they submit to Medicare and Medicaid,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services Office of the Inspector General. “HHS-OIG, DEA, and the U.S. Attorney’s Office will work together to ensure opioids are dispensed properly and that taxpayer dollars are only spent on bona fide pharmacy claims.”

The case was investigated by the Philadelphia Field Division of the DEA and HHS-OIG. The civil investigation and settlement were handled by Assistant United States Attorney Anthony D. Scicchitano and Auditors Denis Cooke and Dawn Wiggins.

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

Note: Professional Pharmacy of Pottstown, PA, has no affiliation with Pottstown Pharmacy.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Daniel Nelson Shuler, 59, of Corsicana, Texas, was sentenced today by United States District Judge Joseph F. Leeson, Jr., to 15 years’ imprisonment, 10 years of supervised release, and a $100 special assessment for using a minor to produce child pornography in November and December of 2022.

In January 2024, Shuler was charged in a one-count information with production of child pornography. On February 27, 2024, Shuler pleaded guilty to the charge and admitted engaging in sexually explicit communications with a minor victim residing in the Lehigh Valley region, during which he caused her to produce images and videos depicting sexually explicit conduct, and also sent the victim sexually explicit images and videos of himself.

“Shuler manipulated and sexually exploited a child, and did so deliberately,” said U.S. Attorney Romero. “Today’s sentence holds him accountable for this reprehensible violation and keeps him from seeking out and victimizing other young girls. The wellbeing of our children is an absolute priority for this office and our law enforcement partners.”

“The cooperation between HSI and the US Attorney’s office continues to serve the American public by enabling time sensitive investigations and deliberate prosecutions of the criminals who harm our children,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “The protection of our most vulnerable citizens is at the heart of our core mission and values.”

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov

The case was investigated by Homeland Security Investigations, Allentown Resident Office, and is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Abdur Rahim Islam, 67, the former chief executive officer of Universal Community Homes (“UCH”) and Universal Education Companies (“UEC”) was sentenced today to 84 months’ imprisonment, followed by three years’ supervised release, for his convictions on 18 fraud, corruption, and tax charges relating to his tenure at Universal.

United States District Court Judge Gerald A. McHugh also ordered Islam to forfeit $609,651.31, and to pay restitution to Universal in the amount of $609,651.31 plus attorneys’ fees, and to pay restitution of $309,581.66 to the IRS. Judge McHugh also ordered Islam to pay an $1,800 special assessment.

On March 20, 2024, a federal jury convicted Islam on charges that he stole more than a half-million dollars from UCH and UEC, charities established by Philadelphia music legend Kenny Gamble and his wife Faatimah Gamble to develop affordable housing and manage charter schools in Philadelphia. The jury also convicted Islam on charges that he bribed the president of the Milwaukee public schools board of directors and cheated on six years of personal income taxes. The jury also convicted Islam and his co-defendant, former Universal Chief Financial Officer Shahied Dawan, on a charge that they conspired to defraud the federal government by impeding, impairing, obstructing, and defeating the lawful functions of the Internal Revenue Service.

The evidence at trial established that Islam and Dawan used their positions at Universal to pay themselves unauthorized bonuses and to pay Islam fraudulent “expense reimbursement” checks, which included payments for purely personal expenses, such as trips to Caribbean resorts with various women, family vacations, first-class travel upgrades, Broadway shows, personal gym memberships and cellphone bills, and countless meals at restaurants with friends and family members.

Islam and Dawan hid all of these illegal payments from the IRS, which enabled Islam to cheat on six years of personal income taxes. Islam also bribed Dr. Michael Bonds, the former president of the Milwaukee public schools board of directors, in return for political favors. Dr. Bonds has pleaded guilty to charges relating to the bribery scheme and is scheduled to be sentenced next month.

On July 10, 2024, Judge McHugh sentenced Dawan, 73, to 18 months’ imprisonment, one year of supervised release, and a $15,000 fine for his role in the conspiracy. Judge McHugh also ordered Dawan to pay $196,952 in restitution to the IRS.

“Islam stole from charities founded to make disadvantaged Philadelphians’ lives better, in order to enrich his own,” said U.S. Attorney Romero. “That’s far from his only crime, but it’s certainly the most galling. We and our partners will continue to hold accountable anyone foolish enough to defraud their employer or cheat the government and taxpayers out of revenue – or, as in this case, both.”

“In his crimes, Islam not only sought to defraud the government, but U.S. taxpayers,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Today's sentencing serves as yet another reminder of the consequences which come to those who commit acts of fraud and bribery against the United States. The FBI and our partners at the United States Attorney's Office and IRS Criminal Investigation Division remain steadfast in our commitment to combating corruption at any level.”

“The outcome today is due to the dedicated efforts of IRS Criminal Investigation special agents and our law enforcement partners,” said Denise Leuenberger, Acting Special Agent in Charge of IRS Criminal Investigation. “Anyone contemplating cheating on their taxes should know that our largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their taxes.”

The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation Division, with assistance from the Department of Education Office of Inspector General, and prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Linwood C. Wright, Jr.

PHILADELPHIA – An indictment has been unsealed charging Henry Ford, also known as Cleothus Lefty Jackson, with securities and wire fraud, announced United States Attorney Jacqueline C. Romero. A grand jury in this district returned the charges against Ford in March 2023, but the charges remained under seal until Ford’s arrest in Arizona last week.

According to the indictment, Ford founded and operated a business named Fallcatcher, the stated goal of which was to develop and market an electronic system designed to track use of medication by addiction recovery patients to prevent relapse. The indictment alleges that in Spring 2018, after Ford ran out of investor funds purportedly developing this “system,” Ford used an acquaintance in the Eastern District of Pennsylvania who had access to a network of investors to raise funds from these investors. As a result, in June 2018, Ford made presentations in person to potential investors, who were part of this acquaintance’s network, at locations in Pennsylvania and New Jersey. During these presentations, Ford made false and misleading statements regarding the proposed investment and showed investors a fraudulent letter of interest in the Fallcatcher business. In addition, Ford caused his acquaintance to distribute further false and misleading statements after these presentations. According to the indictment, as a result of these deceptive fundraising efforts, Ford caused approximately 50 investors to invest approximately $5 million in total in Fallcatcher.

The indictment further alleges that during an investigation by the U.S. Securities and Exchange Commission (the “SEC”) in Fall 2018 and the first half of 2019, Ford took various actions to conceal his fraud upon the investors in Fallcatcher. For instance, it is alleged that Ford lied in multiple SEC depositions. In addition, the indictment alleges that Ford, through his counsel, produced to the SEC a fraudulent email chain to further hide his fraud. Finally, it is alleged that in Spring 2019, Ford accessed Fallcatcher’s investor funds, obtained through fraud, for personal purposes.

If convicted, the defendant faces a maximum possible sentence of 160 years in prison, three years of supervised release, a $6,750,000 fine, and an $800 special assessment.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Patrick J. Murray. The SEC’s New York Regional Office investigated and litigated the civil securities fraud charges, which formed the basis of a portion of the criminal prosecution.                                       

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

PHILADELPHIA – Landlord Allan R. Posner and his property management company ILJOR Properties, LLC, have agreed to pay $570,000 to resolve allegations that they violated the False Claims Act during their participation in the U.S. Department of Housing and Urban Development’s Housing Choice Voucher Program (HCVP), commonly known as “Section 8.”

The HCVP is the federal government’s primary program for helping low-income families, the elderly, and disabled people to afford decent, safe, and sanitary housing in the private market. As conditions of participation in the HCVP, landlords must regularly certify that the rents they charge to tenants who receive housing assistance vouchers (“assisted tenants”) are not higher than those paid by unassisted tenants residing in comparable properties, and must certify that they are not charging any additional amounts to assisted tenants other than charges specified in each housing assistance payment contract.

The United States contends that, during the period from January 1, 2017, through December 31, 2020, ILJOR regularly charged Section 8 tenants more than unassisted tenants in comparable properties. These overcharges arose, in part, from Posner’s engagement in a prohibited quid pro quo sexual relationship with an unassisted tenant in which he made an unwelcome proposal to lower that tenant’s monthly rental payments in exchange for sex. The individual acquiesced because she was afraid of losing her housing. Then, Posner regularly lowered her rent in exchange for sexual acts. In doing so, Posner overcharged the Section 8 tenants whose rent was higher than this unassisted tenant, whose rent was regularly reduced.

“Quid pro quo harassment, where a landlord requires a person to submit to an unwelcome sexual request in exchange for housing, is illegal. Here, where the landlord lowered the rent of an unassisted tenant in exchange for sex, he also falsely certified to the government that Section 8 tenants and HUD were not being charged more than unassisted tenants in comparable units,” said Jacqueline C. Romero, United States Attorney for the Eastern District of Pennsylvania. “This office will continue to investigate landlords who take advantage of tenants and who overcharge the government under the Section 8 program.”

ILJOR also charged assisted tenants additional fees that exceeded the fees paid by unassisted tenants, and that were not specified in the housing assistance payment contracts, including excess fees for storage space, garage access, and laundry.

In one circumstance, the housing authority determined that a tenant, JS, could only afford to pay $4 a month toward her rent. Posner agreed in the Section 8 contract with the housing authority that the tenant would have no additional charges, other than electric services, aside from the agreed-upon rent. But in the lease for this unit, Posner charged JS $25 a month for a storage locker. Posner later threatened to evict JS when she could not make a $30 payment for rent of her apartment and the storage locker. In another instance, Posner charged assisted tenant LR, someone with an amputation who used a wheelchair for mobility, $125 a month for a storage unit located down a flight of stairs in the basement. This additional fee was not included in the housing assistance payment contract Posner entered into with the housing authority, as required. From January 1, 2017, to December 1, 2020, Posner received over $38,000 in fees he was not allowed to receive from HCVP-assisted tenants.

“Exploiting vulnerable individuals through sexual misconduct or overcharging HUD-assisted tenants is both reprehensible and abusive,” said Inspector General Rae Oliver Davis with the U.S. Department of Housing and Urban Development. “We will continue to partner with the United States Attorney to hold these landlords accountable, protect low-income households from sexual and financial predation, and promote the integrity of HUD programs.”

The U.S. Attorney’s Office and HUD’s Office of Inspector General invite participants in HUD’s Section 8 program who have experienced sexual harassment by a landlord or a landlord requesting extra money from them to call the HUD OIG hotline at 1-800-347-3735.

This matter was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General and Assistant U.S. Attorney Erin 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 John Dougherty, 64, of Philadelphia, PA, was sentenced today by United States District Court Judge Jeffrey L. Schmehl to 72 months’ imprisonment, three years of supervised release, forfeiture of $353,941.35, a $7,100 special assessment, and $50,000 in restitution now, with full restitution to be determined later, for crimes arising from his embezzlement of funds belonging to Local 98 of the International Brotherhood of Electrical Workers (“Local 98”) and multiple crimes involving his payment of bribes to codefendant Robert Henon.

In January 2019, a federal grand jury issued a sweeping indictment against Dougherty, the longtime business manager of Local 98, then-Philadelphia City Council Member Robert Henon, and others employed by or affiliated with Local 98.

The indictment charged that between May 2015 and September 2016, Dougherty and Henon deprived the City of Philadelphia and its citizens of their right to Henon’s honest services as a member of City Council. It further alleged that Henon received a salary and other things of value from Dougherty and, in exchange, that Henon used his position as a member of City Council to serve Dougherty’s interests.

In addition, Dougherty, then-Local 98 President Brian Burrows, and other union officers and employees were charged with conspiracy and embezzlement arising from their theft of approximately $600,000 in Local 98 funds from April of 2010 through August of 2016. The indictment also charged Dougherty and Burrows with concealing the embezzlement of Local 98 funds by causing false labor management reports, known as LM-2s, to be filed with the U.S. Department of Labor, and with filing false federal income tax returns by failing to report the funds they stole on their tax returns.

Following the indictment, separate trials were held for the crimes involving public corruption and those involving embezzlement.

On November 15, 2021, a federal jury convicted Dougherty on one count of conspiracy to commit honest services fraud and seven counts of honest services wire fraud. The jury convicted Henon on one count of conspiracy to commit honest services fraud, eight counts of honest services wire fraud, and one count of federal program bribery.

The honest services wire fraud convictions against both defendants included official acts that Henon performed or promised to perform in connection with schemes involving the City of Philadelphia’s Department of Licenses and Inspections and stopping the installation of MRI machines at the Children’s Hospital of Philadelphia; using the proposed Plumbing Code to assist the election of Dougherty as the Business Manager of the Building Trades; drafting towing legislation that Dougherty requested because a tow truck driver refused to accept payment by credit card after Dougherty had parked illegally; and allowing Dougherty to make demands on Comcast as a condition of the City’s renewal of the Franchise Agreement.

On December 7, 2023, a federal jury convicted Dougherty and Burrows of conspiracy to embezzle the funds of Local 98. Dougherty was also convicted of 33 counts of embezzlement of funds from Local 98, 24 counts of wire fraud by participating in a scheme to defraud Local 98 of its money, two counts of causing false statements to be made on the form LM-2 that Local 98 was required to file annually with the Department of Labor for 2015 and 2016, two counts of causing false information to be reflected in the books and records of Local 98 for those years, and three counts of filing false federal income tax returns.

“John Dougherty held himself out as Local 98’s biggest booster,” said U.S. Attorney Romero. “But while he was backslapping his electricians with one hand, he was ripping them off with the other. He cheated Philadelphians, too, through his corrupt quid pro quo with Bobby Henon. Our city and its workers deserve so much better than union bosses and politicians whose true priority is looking out for number one. I want to thank all of the investigators, analysts, prosecutors, and staff who partnered on this case, and, in doing so, stood up for integrity and the rule of law in Philadelphia.”

“Today is a victory for justice and the thousands of members of Local 98’s electrical union, who trusted John Dougherty to represent their interests,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Together with our partners, we will continue to relentlessly pursue those who in executing these criminal schemes put their own self-interest above those they were elected to serve.”

“The sentence today will hopefully serve to deter others who would consider betraying the public trust,” said Denise Leuenberger, 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 and uncover complex financial crimes to disrupt criminal activity impacting the U.S. tax system.”

“Those entrusted with protecting benefit plan assets must be held to the highest standards of accountability to protect the employee benefits of America’s workers,” said Cristina O’Brien, Philadelphia Regional Director of the U.S. Department of Labor Employee Benefits Security Administration. “The Employee Benefits Security Administration will continue its work ensuring these hard-earned benefits are kept safe. We remain committed to working with our law enforcement partners to protect benefit plan participants.”

“Labor union officials occupy a position of trust and fidelity with respect to the faithful stewardship of the membership’s funds. John Dougherty betrayed the trust of the IBEW Local 98 membership by using union funds for his own benefit,” said U.S. Department of Labor’s Office of Labor-Management Standards Acting District Director Nicole Spallino. “The Office of Labor-Management Standards remains committed to working with our law enforcement partners to protect the financial integrity of labor unions and to ensure there are consequences for individuals who deprive union members of honest services.”

“John Dougherty, the former business manager of IBEW Local 98, conspired with other IBEW officials to embezzle funds from the union’s dues-paying members. He enriched himself at the expense of the IBEW Local 98 members whom he was elected to serve. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards and Employee Benefits Security Administration to safeguard the assets of union members,” said Syreeta Scott, Special Agent in Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General.

The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Labor Office of Labor-Management Standards, the U.S. Department of Labor Office of Inspector General, and the Pennsylvania State Police, with assistance from the Pennsylvania Attorney General’s Office. The case is being prosecuted by Assistant United States Attorneys Frank Costello, Chief of the Corruption & Civil Rights Unit, Bea Witzleben, Co-Chief of Trials, Richard Barrett, Counsel to the U.S. Attorney, Jason Grenell, and Anthony Carissimi.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Idris Abdullah Malik, 49, was apprehended in Egypt and returned to the United States to face four counts of traveling for the purpose of engaging in illicit sexual conduct and one count of engaging in illicit sexual conduct in a foreign place.

The indictment, filed on March 1, 2012, alleges that between 2000 and 2005, Malik traveled to Egypt on four occasions for the purposes of engaging in an illicit sexual act with a minor less than 12 years old and between 2005 and 2006, engaged in a sexual act with a minor less than 16 years old in Egypt.

After being charged, Malik’s whereabouts were unknown and a bench warrant was issued. He was recently located in Egypt and returned to the United States with the assistance of the Justice Department’s Office of International Affairs, FBI Legat’s Office in Cairo, U.S. Department of State’s Diplomatic Security Service, the Consular Section at the U.S. Embassy in Cairo, U.S. Customs and Border Protection, and the FBI. The support and assistance of Egyptian security authorities was consequential to this effort.

On June 13, 2024, Malik was taken into custody by the FBI and made his initial appearance in the Eastern District of Virginia. He has now been returned to the Eastern District of Pennsylvania for prosecution and appeared in federal magistrate court in Philadelphia this afternoon, where he was arraigned and ordered detained until trial by U.S. Magistrate Judge Jose R. Arteaga.

If convicted of the charged offenses, the defendant faces a maximum possible sentence of 150 years’ imprisonment.

The case was jointly investigated by the Federal Bureau of Investigation and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Josh A. Davison.

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 Ronald Brown, 21, of Blackwood, New Jersey, was sentenced today to was sentenced today to 105 months’ imprisonment and five years of supervised release by United States District Court Judge John R. Padova, for one count of carjacking and one count of carrying, using, and brandishing a firearm during and in relation to the commission of a crime of violence.

In October of 2023, a grand jury returned a two-count indictment charging the defendant with carjacking and carrying, using, and brandishing a firearm during and in relation to a crime of violence, charges arising from the defendant’s involvement in a carjacking in the early morning hours of July 16, 2023.

The defendant pleaded guilty to both counts in February, admitting to carjacking at gunpoint two people sitting in a Chevrolet Camaro parked outside a South Philadelphia Dunkin Donuts. The day after the carjacking, two Philadelphia police officers had observed the stolen vehicle and attempted to follow it, but the defendant escaped. A short time later, officers again observed the vehicle and Brown fled at a high rate of speed. Brown then crashed the carjacked vehicle into a building and fled on foot. The officers arrested Brown after a brief foot chase and later recovered the firearm used to commit the carjacking from the stolen vehicle.

“Carjackings terrorize their victims and can upend the entire community’s sense of security,” said U.S. Attorney Romero. “That’s exactly why we stood up the Philadelphia Carjacking Task Force, pooling resources to identify, investigate, and prosecute violent offenders like Ronald Brown. As his sentence shows, if you commit a carjacking in our city, best be prepared for an extended stay in one of our federal facilities.”

“Carjacking is a dangerous crime and as this case shows, federal carjacking penalties are severe, putting offenders in federal prison for years,” said Eric DeGree, Special Agent in Charge of ATF’s Philadelphia Field Office. “Brown was one of multiple culprits in this series of violent crimes. ATF continues to work with local, state and federal partners in the Philadelphia Carjacking Task Force to seek justice in all cases, and to prevent and deter further carjackings.”

“Today's sentencing is a clear message to those who seek to terrorize our communities through violent acts like carjacking,” said Philadelphia Police Commissioner Kevin J. Bethel. “The Philadelphia Police Department, in collaboration with our federal partners, remains steadfast in our commitment to ensuring the safety and security of our neighborhoods. The swift apprehension and prosecution of Ronald Brown underscores our dedication to bringing justice to victims and restoring peace to the community. We will continue to work tirelessly to deter such crimes and uphold the rule of law in Philadelphia.”

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 Kwambina I. Coker and Robert E. Eckert.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Gregory J. Stefan, Jr., 54, of Upper Merion, Pennsylvania, was arrested and charged by indictment with seven counts of wire fraud, arising from fraudulent business practices he employed in the operation and management of headstone sales companies.

The indictment alleges that between January 2018 and September 2023, Stefan—through his businesses 1843 LLC and Colonial Memorials—defrauded hundreds of grieving customers by entering into contracts to provide custom headstone and engraving services for their deceased loved ones that he knew he would not deliver on the promised timeline, if at all. Stefan demanded large up-front payments from his customers (often 100% of the purchase price) but routinely failed to fulfill their orders by the projected delivery date. When customers reached out to request updates on the status of their overdue orders, Stefan either ignored them or employed lulling tactics and assured them that their orders would be delivered shortly without taking any steps to follow through on those assurances. According to the indictment, Stefan failed to deliver, or provide refunds for, orders placed by almost 500 customers who had paid Stefan in excess of $1.5 million.

The defendant made an initial appearance in federal court on these charges before U.S. Magistrate Judge Jose R. Arteaga this afternoon.

If convicted, the defendant faces a maximum possible sentence of 140 years’ imprisonment.

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

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 Anthony Mazzccua, 25, of Upper Darby, PA, was sentenced today to 12 months’ imprisonment, three years of supervised release, and $26,654.94 in restitution by United States District Court Judge Nitza I. Quiñones Alejandro, for his participation in a scheme to attempt to steal mail from a U.S. Postal Service (“USPS”) collection box and his possession of stolen mail. His codefendant, Hervens Toussaint, 26, also of Upper Darby, PA, was sentenced in May to three years of probation, a $1,000 fine, and restitution of $15,706.67.

Both men admitted their roles in the scheme, pleading guilty earlier this year to attempted mail theft, and aiding and abetting attempted mail theft, and possession of stolen mail. The charges arose from the codefendants’ use of a USPS Arrow Key to steal mail from collection boxes in Delaware County, PA. The codefendants would then locate checks, wash and alter the payee names and amounts on the checks, and deposit the altered checks into bank accounts belonging to third-party individuals. In at least some instances, the codefendants withdrew or attempted to withdraw the fraudulently deposited funds from those third-party bank accounts.

On October 27, 2021, law enforcement found the codefendants, along with an unindicted juvenile, attempting to steal mail from a blue collection box in Aston, PA. At the time he was apprehended, Mazzccua had six stolen checks and a USPS route key tag on his person. Moreover, law enforcement found approximately 13 pieces of stolen mail and eight stolen checks in the car being used by the codefendants to steal mail. The actual fraud loss for which Mazzccua was responsible for, as a result of his depositing of washed and altered checks stolen from Delaware County, was approximately $26,654.94.

“The U.S. postal system is a cornerstone of American society, delivering essential items such as income, bills, and expenses,” said U.S. Attorney Romero. “Through their actions, the defendants assaulted the integrity and reliability of that system, negatively impacting the lives of numerous victims who had their checks stolen from the mail. Today’s sentence reflects the grave consequences that await those who compromise the security of our mail system. We ask everyone to help support this critical service and protect our postal system by reporting any suspicious activity.”

“Today Anthony Mazzccua was held accountable for stealing checks out of the U.S. Mail and fraudulently passing those checks through the financial system,” said Christopher Nielsen, Inspector in Charge of the Philadelphia Division for the Postal Inspection Service. "Protecting the mail from theft is a core mission of the Inspection Service. When someone steals mail, Postal Inspectors will work relentlessly to hold those individuals to account. I want to thank the investigators from the Upper Chichester Township Police Department who assisted in identifying and apprehending these suspects. I also want to acknowledge the efforts of the United States Attorney’s Office for their continued support in prosecuting these cases."

The case was investigated by the U.S. Postal Inspection Service, the Social Security Administration, and the Upper Chichester Township Police Department, and is being prosecuted by Assistant United States Attorney Eileen Castilla Geiger.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Adam Davis, 47, originally from Coatesville, PA, and now residing in Colorado, was sentenced today by United States District Court Judge Wendy Beetlestone to 33 months’ imprisonment, three years of supervised release, and more than $2.1 million in restitution for his theft of cryptocurrency from a Bucks County victim.

On January 25, 2024, the defendant pleaded guilty to one count of wire fraud.

From January 2014 to May 2021, a Bucks County victim invested approximately $395,000 in cryptocurrency. She hired the defendant to assist her with these investments and gave him direct access to her digital wallets. As the value of Bitcoin and other cryptocurrencies increased, Davis began stealing the victim’s cryptocurrency. He transferred the stolen funds through numerous cryptocurrency addresses under his control, using peel chains and other tactics in an attempt to hide his theft. While the stolen funds were valued at approximately $2.1 million at the time of his theft, they reached a high of over $8 million in 2021, when the victim discovered the theft. By that point, the defendant had already cashed out most of the stolen cryptocurrency and spent those funds on his own living expenses and a business endeavor.

“Whether we’re talking cryptocurrency or cold hard cash, stealing money that doesn’t belong to you is a crime,” said U.S. Attorney Romero. “Adam Davis took advantage of someone who’d turned to him for guidance, stringing the victim along as he drained assets from her accounts. My office and the Secret Service won’t hesitate to hold cybercriminals accountable for the laws they’ve broken and the harm they’ve caused their victims.”

“Mr. Davis earned the victim’s trust in order to steal millions,” said Michael Centrella, Special Agent in Charge of the U.S. Secret Service’s Philadelphia Field Office. “The U.S. Secret Service will continue to investigate crimes involving the theft of cryptocurrency and work to hold individuals, like Mr. Davis, responsible for their actions.”

The case was investigated by the United States Secret Service and prosecuted by Assistant United States Attorney Sarah M. Wolfe. United States Secret Service analysts played a significant role in this case.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Maurice Ray, 34, of Philadelphia, PA, was sentenced today by United States District Court Judge Juan R. Sánchez to 180 months’ imprisonment, three years of supervised release, a $200 special assessment, and restitution of $2,147 for committing two bank robberies in three days.

Ray used demand notes to commit bank robberies on December 14, 2021, at a Citizens Bank branch in Philadelphia, and December 16, 2021, at a Bank of America branch in Bensalem, PA. The Federal Bureau of Investigation, Philadelphia Police Department and Bensalem Police Department located and arrested Ray the next day in Philadelphia.

In January 2022, the defendant was indicted on two counts of bank robbery and on August 15, 2023, a federal jury convicted him of both.

“Maurice Ray is a career offender with a history of robbing banks and businesses,” said U.S. Attorney Romero. “Two stints in prison have not deterred him. This 15-year sentence will at least keep him off the street and prevent him from claiming any additional victims. My office and our partners are committed to investigating and prosecuting violent crimes and bringing the perpetrators to justice.”

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

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Brian Burrows, 64, of Mount Laurel, NJ, was sentenced today by United States District Court Judge Jeffrey L. Schmehl to 48 months’ imprisonment, three years of supervised release, forfeiture of $135,689.11, an $1,800 special assessment, and restitution to be determined later, for crimes arising from his embezzlement of funds belonging to Local 98 of the International Brotherhood of Electrical Workers (“Local 98”).

Burrows had served as the President of Local 98 since 2008. The only person who held a higher office in the union was his codefendant, Business Manager John Dougherty. In January 2019, a federal grand jury indicted Dougherty, Burrows, and other union officers and employees with conspiracy and embezzlement arising from their theft and improper use of approximately $600,000 in Local 98 funds from April of 2010 through August of 2016. The indictment also charged Dougherty and Burrows with concealing the embezzlement of Local 98’s funds by causing false labor management reports, known as LM-2s, to be filed with the U.S. Department of Labor, and with filing false federal income tax returns by failing to report the funds they stole on their tax returns.

In December 2023, a federal jury convicted Dougherty and Burrows of conspiracy to embezzle the funds of Local 98. Burrows was also convicted of 13 counts of embezzlement of funds from Local 98, two counts of causing false statements to be made on the form LM-2 that Local 98 was required to file annually with the Department of Labor for 2015 and 2016, two counts of causing false information to be reflected in the books and records of Local 98 for those years, and three counts of filing false federal income tax returns. The charges of which Burrows was convicted included the illegal use of approximately $391,000 in union funds to improve and repair his home, the homes of codefendants Dougherty and Michael Neill, commercial properties owned by him and his codefendants, and the homes of Dougherty’s relatives.

Dougherty was convicted of 33 counts of embezzlement of funds from Local 98, 24 counts of wire fraud by participating in a scheme to defraud Local 98 of its money, two counts of causing false statements to be made on the form LM-2 that Local 98 was required to file annually with the Department of Labor for 2015 and 2016, two counts of causing false information to be reflected in the books and records of Local 98 for those years, and three counts of filing false federal income tax returns.

The other officers and employees of Local 98 charged in the indictment pleaded guilty in 2022 to charges related to their embezzlement of Local 98’s funds and were sentenced earlier this year. They are Michael Neill, former Director of Local 98’s Apprentice Training Fund; Marita Crawford, former Political Director of Local 98; Niko Rodriguez, an employee of the Apprentice Training Fund and Local 98; and Brian Fiocca, an employee of Local 98.

Dougherty is scheduled to be sentenced on July 11.

“The members of a union should be able to trust their leadership,” said U.S. Attorney Romero. “They have every right to expect that their officers will act in their best interests and that their dues will be used for their benefit. That wasn’t the case at Local 98, where Brian Burrows violated his duty to his members for his own benefit and allowed his codefendants to do the same. Burrows stole from the hardworking electricians whose dues paid his salary, took deliberate steps to conceal it, and is now being held appropriately accountable.”

“In serving himself over the members of Local 98, Brian Burrows abused his position as the president of the Union and breached the trust of those whom he was elected to serve. Today's sentence makes it clear that this kind of self-dealing at the expense of others will not be tolerated,” said Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our law enforcement partners remain unwavering in our commitment to upholding the integrity of labor unions for the members who rely on them, and bringing to justice those who exploit them.”

“Anyone contemplating cheating on their taxes should know that IRS Criminal Investigation Special Agents work tirelessly, year-round, to investigate tax and financial crimes,” said IRS Criminal Investigation Acting Special Agent in Charge Denise Leuenberger. “The outcome today is due to the dedicated efforts of IRS Criminal Investigation special agents and our law enforcement partners.”

"When a union official embezzles union funds, not only are they violating the law, they are also betraying the trust of the union membership who rightfully expect their officials to protect and safeguard their union’s funds and assets," said U.S. Department of Labor Office of Labor-Management Standards Acting District Director Nicole Spallino. "There are consequences for union officials who breach their fiduciary responsibilities to the members they represent. The Office of Labor-Management Standards remains committed to working with our law enforcement partners to protect the financial integrity of labor unions."

“The U.S. Department of Labor is committed to protecting employee benefits for America's workers,” said Cristina O’Brien, Philadelphia Regional Director of the U.S. Department of Labor Employee Benefits Security Administration. “EBSA appreciates the collaborative work with our law enforcement partners to hold Brian Burrows criminally accountable for violating the law.”

“Brian Burrows, the former President of IBEW Local 98, conspired with other former union officials to enrich himself at the expense of the union’s dues-paying members by embezzling union funds. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards and Employee Benefits Security Administration to safeguard union assets,” said Syreeta Scott, Special Agent in Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General.

The case was investigated by the Federal Bureau of Investigation; Internal Revenue Service Criminal Investigation; the U.S. Department of Labor Employee Benefits Security Administration; the U.S. Department of Labor Office of Labor Management Standards; the U.S. Department of Labor Office of Inspector General; and the Pennsylvania State Police, with assistance from the Pennsylvania Attorney General’s Office. The case is being prosecuted by Assistant United States Attorneys Frank Costello, Chief of the Corruption & Civil Rights Unit; Bea Witzleben, Co-Chief of Trials; Jason Grenell, and Anthony Carissimi.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Tammy Simpson, 51, of Pocono Lake, PA, was sentenced today by United States District Court Judge Wendy Beetlestone to 41 months’ imprisonment and three years of supervised release for wire fraud and filing false tax returns, charges stemming from the defendant’s employment with Metal Traders, Inc., d/b/a Triad Metals International (“Triad”), where she worked as the Assistant Controller for fourteen years. Simpson was also ordered to pay $3,199,192.68 in restitution, $708,643 to the Internal Revenue Service, and a $1,200 special assessment.

In June of 2022, Simpson was charged by indictment with eight counts of wire fraud and four counts of making and subscribing a false tax return. In June 2023, Simpson pleaded guilty to all charges against her.

Between 2012 and when she was terminated in October 2019, Simpson used her position at Triad to steal company money and use it to pay personal expenses charged to her credit cards and to make payments on personal loans. She did so by paying her personal credit card bills and loan payments with electronic transfers from the company’s business checking account. The defendant also kept credit cards from employees who had left the company and used them to charge personal expenses, including airfare and other entertainment expenses for her family and friends, and to pay her personal tax liabilities and those of other individuals for whom she prepared tax returns. None of these payments or transfers were for legitimate business expenses of her employer. Further, Simpson failed to report the money stolen from the company as income on her tax returns for tax years 2015 through 2018.

“Tammy Simpson was a valued employee, entrusted with significant financial responsibilities,” U.S. Attorney Romero said. “For years, she abused that trust and her access to the business’s accounts, stealing more than $3 million of Triad’s money so she could continue to live beyond her own means. This sentence holds her accountable for her crimes and sends a message loud and clear that this is not the way to go about boosting your bank account.”

“From paying personal credit cards to purchasing airfare and entertainment, Tammy Simpson stole company money to fund her lifestyle,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI alongside our partners at the IRS and the U.S. Attorney’s Office will continue to pursue criminals who orchestrate their schemes out of greed.”

“Anyone contemplating cheating on their taxes should know that our largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their taxes,” said IRS Criminal Investigation Acting Special Agent in Charge Denise Leuenberger. “We are committed to working with our law enforcement partners and the Department of Justice to continue aggressively investigating individuals who engage in money laundering, tax fraud, or other types of white-collar crimes.”

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation and prosecuted by Assistant United States Attorney MaryTeresa Soltis.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Joseph Raymond Berger, 69, and his son, Joseph Paul Berger, 35, both of Bethlehem, PA, were sentenced by United States District Court Judge Joseph F. Leeson, Jr., to 36 months of supervised release and 37 months’ imprisonment, respectively, for illegal weapons possession.

Joseph Raymond Berger’s sentencing hearing was June 24, 2024; Joseph Paul Berger was sentenced on June 12, 2024.

In February of 2022, the men were charged by indictment with possession of a machine gun and possession of non-registered firearms. The charges stemmed from the defendants’ illegal possession of 13 fully automatic machine guns and 12 firearms silencers. The Bergers entered guilty pleas on February 28, 2024.

According to court documents, law enforcement agents with Customs and Border Protection intercepted three firearms silencers that were illegally imported into the United States in packages addressed to the defendants at their shared residence. Investigators then obtained a search warrant for the home and recovered from the basement the 13 fully automatic machine guns and the 12 firearms suppressors/silencers listed in the indictment. The machine guns included 11 rifles and 2 submachine guns.

Investigators also uncovered evidence that the firearms found in the Berger home were originally sold and purchased as semi-automatic firearms, which were then manually converted into unregistered, fully automatic machine guns.

“Our nation’s firearms laws exist to protect public safety,” said U.S. Attorney Romero. “Abide by those regulations and you’re good to go. But if, like the Bergers, you brazenly flout them by illegally possessing dangerous items like fully automatic machine guns and silencers, expect to be held accountable for your actions.”

“The importation of illegal firearms suppressors is a serious crime that poses a serious threat to the American public,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “HSI, along with its partner agencies, is committed to keeping dangerous, illegal weapons off of the streets and out of the hands of criminals.”

“This sentencing validates the tireless efforts of U.S. Customs and Border Protection officers to intercept illicit and dangerous products at our nation’s borders before they can harm America citizens, including fully automatic weapons that could be used on unsuspecting victims or on law enforcement officers,” said Adam Streetman, CBP’s Area Port Director for the Area Port of Philadelphia. “CBP remains committed to ensuring that imports comply with our nation’s laws, and to working with our law enforcement partners to keep our communities safe and hold nefarious actors accountable.”

“The combination of machine guns and silencers that these individuals illegally imported created a serious threat to our communities,” said Eric DeGree, Special Agent in Charge of the ATF Philadelphia Field Division. “Getting illegal firearms like these, and the people who traffic them, off our street is core to the ATF mission of protecting our communities from violent crime.”

The case was investigated by Homeland Security Investigations, with assistance from Customs and Border Protection and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant United States Attorney Anthony Carissimi.

PHILADELPHIA –United States Attorney Jacqueline C. Romero announced that Nafiysh Knox-Schenck, 32, of Philadelphia, PA, was arrested and charged by Indictment with possession of a firearm by a felon stemming from an incident on May 13, 2024, in which he resisted arrest by Philadelphia police based on an outstanding arrest warrant. 

According to the Indictment, on May 13, 2024, Knox-Schenck resisted arrest when two police officers attempted to place him into custody based on an outstanding arrest warrant.  While struggling with the officers, Knox-Schenck pulled a loaded firearm from his waistband and then tossed it into the street.  Another person then took the firearm and tossed it into a nearby wooded lot.  After a struggle, the officers were able to get Knox-Schenck handcuffed and placed him in their vehicle.  While the officers went to retrieve the firearm, someone opened the door to the police vehicle and Knox-Schneck was able to escape police custody.  Philadelphia police officers then obtained another arrest warrant for the defendant and with the assistance of the United States Marshals Service were able to arrest Knox-Schneck on May 15, 2024.

If convicted, the defendant faces a maximum possible sentence of 15 years’ imprisonment, a $250,000 fine, a three-year period of supervised release, and a $100 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Pennsylvania Office of the Attorney General Special Assistant United States Attorney Tracie J. Gaydos.

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 James Stevens, 71, of Somerdale, NJ, was sentenced today by United States District Court Judge Gerald J. Pappert to 37 months in prison for a bribery and extortion scheme that traded on his role as the Director of the Video Surveillance Unit at the Southeastern Regional Transportation Authority (SEPTA).

In November of 2022, Stevens and Robert Welsh, 60, of Tempe, Arizona, were charged by indictment with conspiracy, bribery, extortion, and fraud charges related to the scheme, in which Stevens demanded from Welsh, owner and operator of Spector Logistics, Inc., a stream of financial and other benefits. In exchange, Stevens helped grow Welsh’s business with SEPTA, for which the firm installed, maintained, and supplied video surveillance equipment. 

The benefits Welsh provided to Stevens included tens of thousands of dollars in cash payments, as well as donations to an alleged charity that Stevens pocketed, lodging and meals during the 2015 Papal Visit, frequent meals and drinks, tickets to Barbra Streisand and Billy Joel concerts, and funds for SEPTA annual holiday parties. As Stevens demanded, Welsh also offered Stevens future employment with Spector when Stevens retired from SEPTA.

During the time of this corrupt relationship, Spector maintained and obtained millions of dollars in contracts with SEPTA. Stevens played a significant role in facilitating and approving contracts for Spector and Blue Zebra, a second company Welsh owned and established with Stevens’ assistance. Stevens helped Spector win bids by giving Welsh inside information about SEPTA’s financial analyses and otherwise collaborating with Welsh in the contracting process. In doing so, Stevens provided an unfair advantage to Welsh and a disadvantage to other potential vendors.

Stevens and Welsh pleaded guilty to their roles in the scheme in January 2024 and August 2023, respectively. Welsh is scheduled to be sentenced on July 18, 2024.

"Stevens’ sentence serves as a warning to those who abuse the public’s trust in its government officials," said U.S. Attorney Romero.  "The hundreds of thousands of daily commuters who count on SEPTA, as well as honest vendors who compete fairly for its contracts, deserve public employees who carry out their duties with integrity, without manipulating the system for personal gain.  The U.S. Attorney's Office in partnership with the FBI will continue to fight fraud and corruption."

“Mr. Stevens used his position in maintaining safety on our region’s transit system to secure a myriad of benefits, which he received in exchange for providing his co-conspirator with millions of dollars’ worth of SEPTA contracts,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “We at the FBI, with our partners at the US Attorney’s Office, will continue to root out pay-to-play schemes that harm the public’s trust in our systems.” 

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Louis D. Lappen and John J. Boscia.

Donavon Parish, 29, of Hattiesburg, Mississippi, pleaded guilty today to one count of cyberstalking and five counts of abuse and harassment using a telecommunications device. Parish also admitted to a special finding that he targeted his victims based on their actual and perceived religion.

According to court documents, during April and May 2022, the defendant used a voiceover internet protocol service to make a series of phone calls to synagogues and Jewish-owned businesses in the Eastern District of Pennsylvania.

In these calls, the defendant spoke to individuals answering the telephone calls on behalf of their respective institutions, at which time he repeatedly referenced the genocide of approximately six million Jewish people during the Holocaust, stating, among other things, “Heil Hitler,” “all Jews must die,” “we will put you in work camps,” “gas the Jews” and “Hitler should have finished the job.”

Parish is scheduled to be sentenced on Sept. 24 and faces a statutory maximum penalty of 15 years in prison, three years of supervised release, a $1.5 million fine and a $600 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Mathew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania and Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division made the announcement.

The FBI Philadelphia Field Office is investigating the case.

Trial Attorney Justin Sher of the National Security Division's Counterterrorism Section and Assistant U.S. Attorney J. Jeanette Kang for the Eastern District of Pennsylvania are prosecuting the case, with assistance from the Justice Department's Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Mississippi.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Donavon Parish, 29, of Hattiesburg, Mississippi, entered a plea of guilty today before United States District Court Judge Cynthia M. Rufe to one count of cyberstalking and five counts of abuse and harassment using a telecommunications device. Parish also admitted to a special finding that he targeted his victims based on their actual and perceived religion.

According to a June 2023 indictment and superseding information filed last month, during April and May 2022, the defendant used a Voice over Internet Protocol service to make a series of phone calls to synagogues and Jewish-owned businesses in the Eastern District of Pennsylvania.

In these calls, the defendant spoke to individuals answering the telephone calls on behalf of their respective institutions, at which time he repeatedly referenced the genocide of approximately six million Jewish people during the Holocaust, stating, among other things, “Heil Hitler,” “all Jews must die,” “we will put you in work camps,” “gas the Jews,” and “Hitler should have finished the job.”

In total, the defendant faces a statutory maximum sentence of 15 years’ imprisonment, three years of supervised release, a $1,500,000 fine and a $600 special assessment.

“Cyberstalking is already a serious violation and targeting victims based on their religion is a hate crime, which makes it that much more abhorrent,” said U.S. Attorney Romero. “We and our partners will continue to work to hold accountable anyone who criminally misuses today’s technology to spread hate and fear.”

“Antisemitism has no place in our society,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Today’s guilty plea reinforces that we will pursue justice against those who threaten members of our communities with such vile threats. The FBI will continue to work closely with our partners at the U.S. Attorney’s Office to ensure our citizens feel safe in the environments they live, work and play in.”

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney J. Jeanette Kang of the U.S. Attorney’s Office for the Eastern District of Pennsylvania and Justin Sher with the Department of Justice’s National Security Division (Counterterrorism Section), with assistance from DOJ’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Mississippi.

PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced two civil settlements, nearing a total of $2 million, which are the latest actions in the national investigation into the improper billing involving the RST Sanexas neoGEN-Series device (“Sanexas”).

The settlements announced today involve chiropractic clinics that principally used Sanexas treatment for patients suffering from diabetic neuropathy. 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 twelve 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.

The settlements are pursuant to DOJ’s inability to pay policy:

1. Joseph M. Childs, DC, Charles H. Durr, DC, and Active Integrated Medical Centers, PC (collectively, “Active Integrated”) agreed to pay $1,900,000 to resolve liability under the False Claims Act for the alleged improper billing of “Sanexas” and “TM Flow” devices, as well as epidermal nerve fiber density (“ENFD”) testing.

1. Taylor Vanden Wynboom, DC and Nova Integrated Health, PC (collectively, “Nova”) agreed to pay $52,000 to resolve liability under the False Claims Act for the alleged improper billing of the Sanexas device and ENFD testing.

Childs and Durr are chiropractors and co-owners of Active Integrated, with office locations in Downingtown and Hershey, Pennsylvania. From approximately February 5, 2020, through April 14, 2022, Active Integrated submitted over 67,000 claims for payment to Medicare involving application of the Sanexas device, often billed with accompanying vitamin injections under various procedure codes (97012, 97014, 97016, 97032, 97112, 97150, 99202, 99203, 99204, 99211,99212, 99213, and G0283) and injection codes (96372, J1955, J3411, J3415, J3420, and J3490).

Because Active Integrated refused to make its required settlement payments, yesterday the United States filed a complaint in the Eastern District of Pennsylvania to enforce the settlement agreement.

Wynboom is a chiropractor and owner of Nova, with an office location in Ankeny, Iowa. From approximately March 20, 2019, through November 5, 2020, Nova submitted approximately 33,000 claims for payment to Medicare involving application of the Sanexas device, often billed with accompanying vitamin injections under various procedure codes (97016, 97032, 97112, 97150, 99203, 99212, 99213, 99214, and G0283) and injection codes (96372, J1955, J3411, J3415, J3420, and J3490).

The United States Attorney’s Offices for the Eastern District of Pennsylvania and Southern District of Iowa worked closely to file a complaint and ultimately finalize a settlement in the matter of Wynboom, who had declared Chapter 7 bankruptcy.

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 Active Integrated and Nova 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, L35222, 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 Active Integrated and Nova 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.

In addition, the United States contends that the various billing codes that Active Integrated and/or Nova used are improper for the way in which it administered Sanexas treatment and vitamin injections. For example, CPT Code 97012 requires application of mechanical traction and patient supervision, 97016 applies to lymphedema treatment and requires patient supervision, and 97032 and 97112 require one-on-one patient contact.

Active Integrated and Nova 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, 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 Active Integrated and Nova administered it. Patients experienced pain while undergoing the punch biopsy used for ENFD testing.

In addition, Active Integrated 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 ten limitations that 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, Active Integrated used ANS testing 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.

During the time period in question, Active Integrated submitted to Medicare approximately 1,500 claims for TM Flow testing under codes 93922, 95921, 95923, and 95943, as well as nearly 70 claims for ENFD testing under codes 11104 and 11105. Active Integrated also submitted approximately 2,500 claims for Sanexas treatment and TM Flow testing to TRICARE, a federal health care insurance system for members of the military services and their families. Meanwhile, Nova submitted approximately 16 claims for ENFD testing and approximately 1,200 claims for Sanexas treatment to TRICARE.

“Before billing Medicare, providers must conduct their own due diligence, including reviewing applicable coverage determinations; they cannot blindly rely on the advice of device manufacturers, distributors, or billing companies,” 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.”

“Every dollar saved is critical to the sustainability of the Medicare program and the needs of the people who depend on it,” said Centers for Medicare and Medicaid Services Administrator Chiquita Brooks-LaSure. “We thank our partners at the Department of Justice and Department of Health and Human Services Office of Inspector General for working closely with us to identify, investigate, and eliminate waste, fraud and abuse in our federal health care programs.”

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

The settled civil claims are allegations only. There has been no determination of civil liability. This matter was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. The investigations and settlements 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 Nova settlement was also handled by Civil Division Chief Rachel Scherle of the United States Attorney’s Office for the Southern District of Iowa.