Eastern District of Pennsylvania

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams, together with federal, state and local law enforcement officials, announced that six defendants were arrested and charged with federal carjacking and other violent crimes in connection with incidents that occurred in Philadelphia and its surrounding counties:

• Christopher Robinson, 20, of Philadelphia, PA, was charged by Criminal Complaint with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with three armed carjackings on December 9, 2021, January 5, 2022, and January 11, 2022, all in West Philadelphia.

The carjacking victims in these three separate incidents were caught off guard while on the phone sitting in their parked vehicles or filling their gas tank.

• Tarik Chambers, 19, and Nikeem LeachHilton, 21, both of Philadelphia, PA, were charged by Criminal Complaint with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection a carjacking on December 19, 2021, in Delaware County.

The defendants allegedly used a privately-made “ghost” gun to carjack the victim in the rear parking lot of a retail store along Baltimore Pike in Springfield. The defendants fled from the police, leading officers on a high-speed car chase through Delaware County before crashing into another motorist’s car, who suffered severe, life-threatening injuries including broken bones and significant head trauma.

• Dayon Hackett, 19, of Philadelphia, PA, was charged by Indictment with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with an armed carjacking that occurred in the Bridesburg section of Northeast Philadelphia and a second armed carjacking and shooting in South Philadelphia, both of which occurred on December 22, 2021.

The second carjacking incident occurred while the victim was sitting in his parked car waiting for a parking space to open. The victim and two offenders exchanged gun fire and the victim sustained serious injuries including severed arteries, shattered bones, and bullets lodged near internal organs.

• Sean Allen, 23, of Camden, NJ, was charged by Indictment with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with two armed carjackings on January 4, 2022, and January 6, 2022, in Northeast Philadelphia.

The carjacking incidents occurred after victims posted their vehicles for sale on Facebook Marketplace and were contacted by an account claiming to have an interest in purchasing the vehicles.

• Cameron Styles, 20, of Philadelphia, PA, was charged by Indictment with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with two carjackings on February 10 and February 11, 2022, in Northeast Philadelphia.

The carjacking incidents occurred while the first victim was waiting for a train, and while the second victim was parked at a gas station.

Additionally, and as previously announced, in February 2022, Alex Fernandez-Pena and Juan Jose Rodriguez were charged by Indictment with carjacking and brandishing a firearm during a crime of violence stemming from their alleged involvement in a carjacking incident of a rideshare vehicle earlier this year in the Parkside section of Philadelphia, during which the victim shot both defendants while they tried to flee. These arrests bring the total number of carjacking suspects taken into federal custody in the last several weeks in the Eastern District of Pennsylvania up to eight.

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

“It has been nearly a year since we launched our ‘All Hands On Deck’ initiative, and in that year our Office and our federal partners have doggedly pursued every opportunity to support the Philadelphia Police Department, which now includes the recently-created joint carjacking task force,” said U.S. Attorney Williams. “I have said repeatedly that if you commit a violent offense like a carjacking at gunpoint, federal authorities are coming for you. In just weeks we have arrested and charged eight people, and there’s much more to come.”

“The rash of carjackings we’ve seen in and around Philadelphia is unacceptable,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “That’s why this task force is united in our efforts to find those responsible and get them off the street. The potential penalties for federal carjacking charges are severe, so if people want to keep committing these crimes, they should know that the carjacking task force will make it a priority to put them in cuffs and behind bars for a good long time. We simply won’t stand for criminals terrorizing innocent people like this.”

“These indictments exemplify the strength of our newly established carjacking task force,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division.“Over the past year we have witnessed a spike in carjackings throughout the Commonwealth, and the announcement of these indictments should send a clear message to those who are thinking about committing violent acts.  The public should know we are working closely together with our local, state, and federal partners to seek justice for those responsible for these types of crimes.”

“There are far too many in this city who think that they can commit violent crimes with impunity, and that law enforcement will sit idly by while our communities are traumatized,” said Philadelphia Police Commissioner Danielle Outlaw. “These latest arrests prove yet again that criminal behavior will not be tolerated, and sends the message that if you’re doing wrong, if you’re engaging in illegal activities, the PPD along with our local, state, and federal law enforcement agencies will find you, arrest you, and you will be charged to the fullest extent of the law.”

“Carjackings are dangerous, violent acts that strike fear into our communities and threaten public safety,” said Pennsylvania Attorney General Josh Shapiro. “We will continue to share available intel to collaborate with our law enforcement partners so we can use every resource available to hold individuals who commit these crimes accountable. I’m thankful for the hard work of the agents in our office, as well as our local, state, and federal partners in this important task force.”

If convicted, each defendant faces a maximum possible sentence of life in prison, as well as a mandatory minimum sentence of seven years in prison.

These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; and the Philadelphia Police Department; with assistance from the Pennsylvania Office of Attorney General; and are being prosecuted by Assistant United States Attorneys Kelly Fallenstein, Justin Oshana, Robert Eckert, Jeanette Kang, Michael Miller and Special Assistant United States Attorneys Sandy Urban and Tracie Gaydos.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Victor DeLuca, a.k.a. “Big Vic,” 57, of Philadelphia, Pennsylvania was sentenced to ten years in prison and ten years of supervised release by Senior United States District Judge R. Barclay Surrick for racketeering conspiracy and conspiracy to distribute controlled substances.

In November 2021, the defendant pleaded guilty to charges in a superseding indictment stemming from his involvement in criminal activity with and for the Philadelphia La Cosa Nostra, also known as the LCN, the mafia, and the mob. The Philadelphia LCN is one of a number of LCN organized crime families based in various cities throughout the United States. The goal of the LCN in Philadelphia and elsewhere is to make money through the commission of various crimes, including illegal gambling, loansharking, drug trafficking, and extortion.

According to court documents, and the defendant’s guilty plea on November 29, 2021, DeLuca was an associate of the LCN who worked with LCN members and associates to commit crimes such as drug trafficking, extortion, and loansharking, among other crimes. The defendant pled guilty to his involvement with the LCN for that conduct as well as for an effort in April 2017 to obtain two pounds of methamphetamine, intended for later resale, on behalf of other LCN members and associates.

“Even though the Philadelphia mob is not what it was in the last century, the organization and its criminal activities are still very much a problem and are damaging the communities in which it operates,” said U.S. Attorney Williams. “The U.S. Attorney’s Office is committed to prosecuting anyone who is committing serious federal crimes like these, and we will not rest until the mob is nothing but a bad memory.”

“As a longtime associate of the Philadelphia LCN, Victor DeLuca earned his keep through drug-dealing, loansharking, and extortion - pretty much the antithesis of an honest day’s work,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “His actions caused harm to individual victims and the community alike and it’s gratifying he’s now been brought to justice. The FBI will continue to keep organized crime squarely in our sights as we work to make the city of Philadelphia a safer place.”

The case was investigated the FBI, including its Philadelphia Field Division and Atlantic City Resident Agency, as part of a long-running investigation, with the assistance of the Philadelphia Police Department, the Pennsylvania State Police and the Pennsylvania Office of the Attorney General. The case is being prosecuted by Assistant United States Attorneys Jonathan Ortiz and Justin Ashenfelter of the Eastern District of Pennsylvania and Trial Attorneys Alexander Gottfried and Kristen Taylor of the Department of Justice Criminal Division, Organized Crime and Gang Section.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Rasheen Mainor, 21, of Philadelphia, PA was sentenced to over 11 years and five months in prison, and three years of supervised release by United States District Judge Petrese B. Tucker, for committing a carjacking and an armed robbery.

In December 2019, the defendant carjacked a woman driving a Honda CRV in Northeast Philadelphia by pointing a firearm at the victim and then punching her in the face before taking her vehicle. Then, a month later in January 2020, Mainor and two accomplices used the carjacked CRV to flee from yet another crime scene: a tobacco store in West Philadelphia, the Dollar & Smoker’s Point, also known as the Chester Mini Market, where the defendant and his accomplices pointed a firearm at the cashier, forced him to run away, and then took merchandise and approximately $500 cash from the store.

“Carjacking a vehicle and then robbing a business at gunpoint threatens our collective safety,” said U.S. Attorney Williams. “And if you commit these crimes in the Eastern District of Pennsylvania, you are going to be met with a felony prosecution and long prison sentence, as is the case with this defendant who will now spend more than a decade behind bars for his crimes.”

“This carjacking and armed robbery were violent crimes targeting absolutely innocent victims,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “No one should have to fear a punch in the face — or worse — from a gun-toting carjacker, or a roving crew of criminals terrorizing them at work. These are offenses against society that undermine public safety and quality of life in this city. The FBI and Philadelphia Police Department are working every day to take violent individuals like Rasheen Mainor off the street, to keep them from harming anyone else.”

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 make our neighborhoods safer for everyone.   The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Michael R. Miller.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Christopher Lamont Stimpson, Jr., 23, of Greensboro, North Carolina, was convicted of committing a gunpoint robbery of a Lancaster County puppy breeder and his family in order to steal five French Bulldog puppies in October 2020.

In November 2020, the defendant was charged by Indictment with robbery which interferes with interstate commerce, and interstate transportation of stolen goods in connection with the robbery. To lure the victims out with the puppies, dogs with a total value of more than $23,000, Stimpson posed as a customer seeking to purchase five French Bulldog puppies, only to pull out a gun, point it at the victims, and steal the animals. One of the victims recorded the registration of the defendant’s getaway vehicle, which was traced back to a rental company in Greensboro, North Carolina. According to court documents, a customer of the breeder who had also been interested in purchasing one of the puppies later discovered an Instagram posting which featured a video and a photograph of the puppies, as well as photographs of Stimpson. In December 2020, the defendant was arrested in North Carolina.

“Stimpson committed armed robbery in order to greedily and callously steal vulnerable, living creatures,” said U.S. Attorney Williams. “This conviction demonstrates our Office’s commitment to prosecuting dangerous, armed criminals, no matter where they may run and hide. We are thankful to our partners here in Pennsylvania and in North Carolina for their partnership in bringing Stimpson to justice.”

“Armed robbery is armed robbery, whether the objective is drugs, dollars, or dogs,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Christopher Stimpson traveled quite a ways to terrorize the breeder and his family and take those puppies by force. Let this be a warning to anyone else planning on coming into Pennsylvania to commit a violent crime: the FBI and our partners will track you down wherever you are and see that you’re brought to justice.” 

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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The case was investigated by the Federal Bureau of Investigation, the Ephrata Police Department, and the Greensboro (NC) Police Department, and is being prosecuted by Assistant United States Attorney Mark S. Miller.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Robert Brennan, 83, of Perryville, MD, was sentenced by United States District Court Judge Anita B. Brody to five years of probation, the first two years of which will be served on home confinement with location monitoring, for lying to investigators about not knowing a former parishioner and victim of sexual abuse.

In November 2021, the defendant pleaded guilty to making materially false statements in a matter within the jurisdiction of the executive branch of the United States government. The charges stem from an interview conducted in April 2019, during which Brennan was questioned by the FBI and made a number of false statements.

Brennan had served in the Archdiocese of Philadelphia from 1993 to 2004 as a priest at Resurrection of Our Lord parish in the Rhawnhurst section of Northeast Philadelphia. In September 2013, the Philadelphia District Attorney’s Office filed criminal charges against him, alleging that he had sexually abused a minor, Sean McIlmail, during Brennan’s time at Resurrection. Soon thereafter, in October 2013, Sean McIlmail died of a drug overdose and the criminal charges against Brennan were dismissed.

In November 2013, the McIlmail family filed a civil lawsuit against the Archdiocese of Philadelphia and Brennan. The lawsuit was settled for an undisclosed amount in May 2018. During the April 2019 interview with the FBI, Brennan made several false statements, including that prior to the filing of the 2013 criminal case and civil lawsuit against him, he did not know Sean McIlmail, his father, mother or brother.

“Holding people accountable for their actions, within the confines of the criminal justice process, is a priority for the U.S. Attorney’s Office,” said U.S. Attorney Williams. “With this sentence handed down today, we hope it brings a sense of justice and closure to this case.”

“Lying to the FBI is more than a mistake and beyond a bad choice,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Doing so poses a direct threat to investigations, prosecutions — our entire system of justice. Such ramifications make it a crime for which there have to be some consequences, with violators held appropriately accountable.”  

The case was investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania Attorney General’s Office, the Philadelphia District Attorney’s Office and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced the criminal and civil resolutions of multi-year investigations of various health care fraud schemes involving prescriptions for compounded medications formulated by Heritage Therapeutics, LLC, a Delaware County pharmacy. The investigations yielded six criminal convictions and recovered over $8.7 million in criminal forfeitures, criminal restitution, and civil settlement payments.

From 2013 into 2015, Heritage formulated expensive compounded medications such as pain creams, scar creams, and vitamins. These compounded medications were prescribed to, among others, beneficiaries of TRICARE, a federally funded health care program for military members, retirees, and their families. The investigations revealed that Heritage paid commissions to some of its sales representatives for referring Heritage’s compounded medications to medical providers who prescribed them to TRICARE beneficiaries. Some of these sales representatives, in turn, paid kickbacks to the medical providers to induce them to issue those prescriptions. 

A lead sales representative for Heritage was Michael Bemis. Bemis paid kickbacks to a Philadelphia-area physician, Dr. Scott Kurzrok, in exchange for issuing prescriptions to TRICARE beneficiaries that Kurzrok allegedly never examined or treated. In addition, Bemis recruited other sales representatives and encouraged them to also pay kickbacks to medical providers to induce them to prescribe compounded medications to TRICARE beneficiaries through Heritage. Bemis also paid and encouraged other sales representatives to pay TRICARE beneficiaries to allow medically unnecessary prescriptions to be filled in their names. In addition, Bemis encouraged sales representatives to push TRICARE beneficiaries to accept refills of the medically unnecessary medications. Heritage submitted claims for those medications to TRICARE and paid commissions on those prescriptions to Bemis and other sales representatives.  For his involvement in the scheme, Bemis pleaded guilty to conspiracy to commit health care fraud, was sentenced to over two and a half years in prison, and was ordered to pay criminal restitution of more than $3.3 million and to forfeit over $930,000. Bemis and Dr. Kurzrok each entered into settlement agreements to resolve civil claims under the False Claims Act. 

Charles Hollister, a Heritage sales representative in North Carolina, was one of Bemis’s recruits. Hollister paid kickbacks to Tanya Dyer, a licensed nurse practitioner in Hickory, North Carolina, in exchange for Dyer prescribing Heritage compounded medications to TRICARE beneficiaries. These TRICARE beneficiaries included individuals whom Dyer allegedly never saw or examined. Hollister pleaded guilty to conspiracy to commit health care fraud, was sentenced to over a year in prison, and was ordered to pay over $1 million of criminal restitution jointly and severally with Bemis. Dyer entered into a settlement agreement to resolve civil claims under the False Claims Act.

Andrew Balick, a Heritage sales representative in Georgia, was another of Bemis’ recruits. Balick convinced a purported physician assistant to write medically unnecessary prescriptions for compounded medications that were filled by Heritage. Balick provided TRICARE beneficiary information to the physician assistant for use in writing the prescriptions and then shared part of his Heritage sales commissions with the beneficiaries, including a man named Andrew Dykstra. In addition to providing his own beneficiary information to Balick, Dykstra became a Heritage sales representative and allegedly recruited other purported sales representatives to provide their TRICARE beneficiary information for use in the scheme. Balick pleaded guilty to conspiracy to commit health care fraud, was sentenced to over a year in prison, and was ordered to pay criminal restitution of over $1.8 million jointly and severally with Bemis. Dykstra entered into a settlement agreement to resolve civil claims under the False Claims Act.

Separately, Benjamin Tewes, the brother of Heritage sales representative Kristine Sewell, , paid kickbacks to Thomas Hersch, a physician assistant in Georgia, to induce him to write prescriptions for Heritage compounded medications to TRICARE beneficiaries. Sewell allegedly received sales commissions from Heritage on these prescriptions and shared part of her commissions with Tewes. Tewes pleaded guilty to one count of paying kickbacks in connection with a federal health care program, was sentenced to 3 years of probation, and was ordered to forfeit over $276,000 and to pay a $15,000 fine. Hersch pleaded guilty to one count of receiving kickbacks in connection with a federal health care program. Sewell entered into a monetary settlement agreement to resolve civil claims under the False Claims Act.

In addition, Joseph Fidelie, who was both a Heritage sales representative and a medical assistant at an orthopedic practice in Oklahoma, paid kickbacks to a physician assistant in the same practice to induce the physician assistant to prescribe Heritage’s compounded medications to TRICARE beneficiaries. Fidelie received commissions from Heritage for the claims paid by TRICARE. Fidelie pleaded guilty to one count of paying kickbacks in connection with a federal health care program. 

In addition to the resolutions noted above, Heritage, along with its president, David Raffaele; principals Kevin O’Brien and Stephen Seiner; former pharmacist-in-charge Gary Umland; and sales assistant Michael D’Antonio; entered into a settlement agreement to resolve civil claims against the entity and associated individuals under the False Claims Act. The civil claims resolved through this settlement relate to Heritage’s sales representatives’ alleged payments of kickbacks to medical providers, as described above, as well as to Heritage’s compensation of its sales representatives on a commission basis in the absence of bona fide employee relationships, all in violation of the Anti-Kickback Statute. In addition, this settlement resolved claims that, to avoid TRICARE’s recoupment of amounts previously paid to Heritage for compounded medications prescribed to TRICARE beneficiaries in the absence of any legitimate provider-patient relationship, as described above, Heritage itself made false statements in its responses to a TRICARE audit.

“With the conclusion of these investigations, we serve notice that medical providers and pharmaceutical manufacturers who prey on the men and women who bravely serve in our armed forces, and their families, in order to line their own pockets, will be relentlessly pursued with all of the resources of the United States Attorney’s Office,” said U.S. Attorney Williams. “Through the combined efforts of our criminal division, civil division, and our partner agencies, the fraudulent acts of both the company and the individuals who acted through it were held to account.”

“Investigating corrupt schemes that undermine the integrity of TRICARE, the healthcare system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office.  “Today’s announcement demonstrates our commitment to work with the Department of Justice to tirelessly pursue those individuals and corporations that target our service members and put TRICARE beneficiaries at risk.”

The investigations were conducted by agents from, in addition to DCIS, the Office of Personnel Management, Office of Inspector General; Department of Labor, Office of Inspector General; United States Postal Service, Office of Inspector General; and U.S. Army Criminal Investigation Division.

Assistant United States Attorney Mary Kay Costello and former Assistant United States Attorney John Crutchlow prosecuted the criminal cases.  Assistant United States Attorneys Bryan C. Hughes and Rebecca S. Melley handled the civil investigation and settlements, assisted by Auditor George Niedzwicki.   

Except for those facts admitted to in the guilty pleas, the claims resolved by the civil settlements are allegations only, and there has been no determination of liability.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Dr. Harry Doyle and his wife, Sonya Doyle, of Philadelphia, PA, have agreed to pay a total of $3 million to resolve alleged violations of the False Claims Act. The alleged violations include submitting false billing to the U.S. Department of Labor Office of Worker’s Compensation Programs (OWCP) for psychiatric services that were not provided, as well as upcoding and double-billing patient claims. As part of the settlement, the Doyles have also agreed to be voluntarily excluded from federal healthcare programs for a period of 25 years. This is the largest recovery against a single psychiatrist in the history of the OWCP.

Dr. Doyle was a psychiatrist to whom an attorney referred patients receiving federal workers’ compensation benefits authorized under the Federal Employees Compensation Act. Many of his patients received OWCP benefits because of a physical injury, and then were later approved for mental health services that were purportedly needed because of the initial physical injury. Dr. Doyle’s wife, Sonya Doyle, was his office assistant, and the sole employee of Dr. Doyle’s mental health practice.    

A multi-agency investigation of Dr. Doyle’s practice revealed that from January 2013 through April 2021, the Doyles allegedly billed for services not rendered, some of which occurred when the Doyles were not physically present in the United States. The Doyles allegedly billed for cancelled and no-show appointments as if they had actually occurred, “upcoded” or billed for a higher level of service than what was actually provided including billing for more therapy time than spent with the patient, and also double-billed the patient and OWCP for initial consultations. Dr. Doyle allegedly falsified treatment records to reflect the false billing that was submitted.   

“Our resolution of this matter and the significant recovery we have obtained from this physician show once again that no matter how complex the fraud scheme is, we will find it, stop it, and punish it,” said U.S. Attorney Williams. “The alleged falsified documentation Dr. Doyle created and submitted to OWCP compromised the agency’s ability to monitor claimant care and ensure that injured federal workers received the services they needed.”

“Dr. Harry Doyle and his wife Sonya Doyle entered into a settlement agreement to resolve alleged violations of the False Claims Act. The alleged violations involve the submission of potentially fraudulent billing to the U.S. Department of Labor Office of Workers’ Compensation Programs (OWCP) by Dr. Doyle’s practice. Today’s significant monetary settlement of $3 million and agreement to voluntary exclusion from federal healthcare programs for a period of 25 years will serve as a deterrent to those contemplating committing fraudulent billing schemes. The U.S. Department of Labor, Office of Inspector General will continue working with our law enforcement partners and OWCP to protect the integrity of DOL’s benefits programs,” stated Special Agent-In-Charge Syreeta Scott, Philadelphia Region, U. S. Department of Labor Office of Inspector General.”

“Abuse of OWCP will not be tolerated and is a drain on the United States Postal Service’s finances,” said Imari R. Niles, Executive Special Agent in Charge of the U.S. Postal Service Office of the Inspector General. “USPS OIG is dedicated to investigating and eradicating this type of conduct.”

“Fraudulent healthcare billing practices compromise the federal government’s ability to provide quality benefits to deserving individuals,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG is pleased to have worked together with its law enforcement partners to stop this couple from continuing their fraudulent practices.”

This case was investigated by the Department of Labor Office of Inspector General, the United States Postal Service Office of Inspector General, and Department of Veterans Affairs Office of Inspector General.  For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant United States Attorney Viveca D. Parker and Auditor Dawn Wiggins.   

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that John Perkins, 34, of Philadelphia, PA, was convicted after trial for his involvement in a scheme to kidnap an individual and hold them for ransom, which eventually led to that individual’s injury and death. The victim’s body was later recovered in Cecil County, Maryland.

In May 2019, Perkins was charged by Indictment with conspiracy to commit kidnapping, and kidnapping involving interstate commerce (transporting the kidnapped individual across state lines), stemming from the June 2018 kidnapping and murder of an individual who owned businesses in the city. When the victim showed up to the location of an arranged meeting in Philadelphia, a co-defendant shot the victim, injuring him. Perkins’ co-conspirators restrained the victim with duct tape, hand cuffs, and zip ties, and Perkins loaded the victim’s bound and bloody body into the kidnappers’ car. Perkins’ co-conspirators then drove the victim to a location in Chester County. Meanwhile, during the kidnapping, ransom calls demanding hundreds of thousands of dollars were made to the victim’s wife and to an associate of the victim. After meeting up with more co-conspirators, they drove the victim to a location in Cecil County, Maryland, where a co-conspirator ultimately shot the victim in the head, killing him.

Co-defendants who were also charged related to their involvement in the kidnapping conspiracy and who all previously pleaded guilty are: Ivan Rangel Prieto, 37, of Asheboro, North Carolina; Jose Castillo, 47, of Albuquerque, New Mexico; Jose Bernal, 33, of Newark, Delaware; Jose Delgado, 43, of Warminster, Pennsylvania; Salvador Sanchez Guerrero, 50, of Philadelphia, Pennsylvania; Robert Favors, 42, of Philadelphia, Pennsylvania; and Fermín Perez Mejia, 38, of Norristown, Pennsylvania.

“This defendant acted with callous disregard for another human being’s life, and now a jury has found him guilty of these horrific crimes,” said U.S. Attorney Williams. “Our office refuses to give in and let this type of lawless violence and intimidation become just the ‘way things are’ in Philadelphia – we are ‘All Hands On Deck’ to investigate and prosecute violent crimes in the city.”

“What a horrific way to spend the final hours of your life: abducted, restrained, bleeding, and completely powerless,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “John Perkins and his associates committed heinous acts of violence, and I'm thankful this jury has held him responsible for his role in this ruthless conspiracy. Getting dangerous criminals off the street is the top priority of the FBI Philadelphia Violent Crimes Task Force.”

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, with assistance from the Cecil County, Maryland Sherriff’s Office, the Southern Chester County Regional Police Department, and the Plymouth Township Police Department, and is being prosecuted by Assistant United States Attorneys Amanda R. Reinitz and Everett Witherell. 

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Christopher Larue, 44, of Lansdale, PA, was sentenced to 25 years and one day in prison, five years of supervised release, and was ordered to pay a $7,500 fine by United States District Judge Gene E.K. Pratter for committing an armed bank robbery in Bucks County and then nearly killing a Pennsylvania State Trooper in Montgomery County directly thereafter.

In October 2021, the defendant pleaded guilty to one count of brandishing a firearm during a crime of violence and one count of armed bank robbery. According to court documents, in the early morning hours of October 19, 2020, Larue entered QNB Bank in Perkasie, PA, wearing dark clothing and a black mask as employees were arriving for work. The defendant brandished a firearm and robbed the bank of over $11,000 in U.S. currency. He then fled in his vehicle. A GPS tracking devices hidden with the stolen money quickly led Pennsylvania State Police to the defendant, who had driven to his job site in Conshohocken, PA. When the State Police arrived and attempted to arrest him, Larue pointed a gun at the head of a trooper and pulled the trigger, but the gun mis-fired and troopers were able to handcuff Larue. In and around the defendant’s work locker, investigators found the stolen money, additional ammunition, and the clothing and mask Larue wore during the robbery.

Larue previously served over 12 years in federal prison after being convicted in 2009 of five additional bank robberies and was on supervised release at the time of this offense.

“This sentencing is especially poignant during a week when we have lost two Pennsylvania State Troopers who were bravely executing their duty in the face of extreme danger,” said U.S. Attorney Williams. “In this case, the defendant acted with complete disregard and callousness for the lives of the Pennsylvania State Troopers and the bank employees whom he threatened with a firearm. But for a mis-fired gun, the outcome could have been yet another tragic loss of life. The U.S. Attorney’s Office will not tolerate this kind of violent lawlessness.”

“Christopher Larue aimed a loaded gun at a state trooper’s head, asked him if he wanted to die that day, and repeatedly pulled the trigger. It was very nearly a tragedy, but thankfully the weapon didn’t fire,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “That was just after Larue had held three bank employees at gunpoint during a robbery — and that was after a previous string of bank robberies for which he’d served time. This is a dangerous serial offender who needs to be off the street. The FBI will continue working with the Pennsylvania State Police and all our law enforcement partners to keep violent criminals like Larue from committing further harm.”

The case was investigated by the Perkasie Borough Police Department, the Pennsylvania State Police, and the Federal Bureau of Investigation, with assistance from the Montgomery County District Attorney’s Office and the Bucks County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Asa Jackson, 40, of Philadelphia, PA, was convicted after trial of unlawfully possessing a firearm after previously being convicted of a felony. The charges arose from an incident during which he threatened and intimidated two victims while possessing a firearm.

In May 2020, in the Harrowgate section of Philadelphia, Philadelphia Police officers responded to a call that someone had assaulted two women inside a Frankford Avenue corner store and threatened them with a firearm. When officers arrived, they observed a man one block away who fit the description in the call, later identified as the defendant. When Jackson saw the police, he ducked between two parked vehicles and appeared to drop something to the ground that made a metallic sound. Police apprehended Jackson and recovered a loaded pistol between the two parked vehicles.

“The crime of being a felon in possession of a firearm is a serious offense, particularly in Philadelphia where gun violence has reached record-breaking proportions,” said U.S. Attorney Williams. “As the evidence presented at trial showed, Asa Jackson illegally possessed a loaded firearm that fortunately was recovered by Philadelphia Police officers. Our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck’ to get criminals like this defendant off the streets for a long time.”

“This conviction is a result of the hard work and collaboration between our local, state and federal law enforcement partners,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division.  “Anytime dangerous felons commit gun crimes; we will use all of our available resources to make sure justice prevails.  The community is a safer place with this guilty verdict.”

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 make our neighborhoods safer for everyone.   The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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 Tiwana Wright.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Anthony Robinson, a/k/a Slick, 34, of Philadelphia, PA, was sentenced to three years in prison and three years of supervised release by United States District Judge Gene E.K. Pratter for conspiring with others to smuggle contraband into the Federal Detention Center (FDC) in Philadelphia.

In October 2021, the defendant was convicted by a jury on charges of conspiracy and possession of contraband in prison, stemming from a 2020 incident caught on security recordings. In April 2020, staff at the FDC observed a man outside the prison, attaching items to a line. Security camera footage showed a rope being pulled up the side of the building facing Arch Street. Upon searching the cell from which the rope emanated, officers found two cellmates along with quantities of Suboxone, cocaine, tobacco, methamphetamine tablets, marijuana, a SIM card, and an inoperable cell phone. Both men were charged and convicted for possessing contraband in prison. Meanwhile, further investigation revealed that they did not act alone. Specifically, investigators discovered that another FDC inmate, defendant Robinson, had aided them in their smuggling operation from his own cell by arranging, via a contraband cell phone, for the drugs to be brought to the FDC.

“Maintaining the secure environment of federal correctional facilities is paramount to the safety of staff and inmates and the pursuit of justice in an effort to deter future criminal conduct,” said U.S. Attorney Williams. “In this case, instead of learning from previous mistakes, the defendant couldn’t help himself and committed another crime by smuggling contraband into the facility. The U.S. Attorney’s Office will not tolerate this kind of lawless behavior.”

“Talk about a brazen smuggling scheme, using a line lowered right down to Arch Street,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Introducing contraband into prisons can put corrections staff, inmates, and even the community at risk. Robinson was a key partner in this conspiracy and is being held appropriately accountable. It’s imperative to keep our correctional facilities safe and secure.”

The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons, and is being prosecuted by Assistant United States Attorney Sarah Damiani.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Mark Wayne Ramsey, 32, of San Francisco, CA, was sentenced to 60 days in prison, three years of supervised release, and was ordered to pay a $5,000 fine by United States District Judge Gene E.K. Pratter for his participation in an insider trading scheme.

In September 2021, a jury found the defendant guilty of four counts of securities fraud and two counts of conspiracy to commit securities fraud. Evidence presented at trial showed that Ramsey traded on inside information provided by Damilare Sonoiki, at the time a junior analyst at Goldman Sachs, regarding upcoming mergers involving four Goldman Sachs clients: Compuware Corporation; Move, Inc;, Sapient Corporation; and Oplink Communications. LLC.  Sonoiki provided this information to Ramsey and his roommate Mychal Kendricks, then a linebacker for the Philadelphia Eagles. Ramsey and Kendricks purchased call options in the target companies between July and November 2014. During the football season, when Kendricks was busiest, Ramsey became the primary contact with Sonoiki, and Ramsey made the trades in Kendricks’s account based on the insider information Sonoiki provided. When the proposed merger was announced in each case, the value of the options purchased by Ramsey and Kendricks increased significantly. During the period of the conspiracy, the trading conducted by Ramsey and Kendricks from Kendricks’s account resulted in profits of nearly $1.2 million on the four securities.

Defendants Sonoiki and Kendricks both pleaded guilty in September 2018 to insider trading and conspiracy charges based on this same conspiracy. In July 2021, Kendricks was sentenced to one day in prison and three years of supervised release, and was ordered to pay a $100,000 fine.  In the same month, Sonoki was sentenced to one month in prison and three years of supervised release, and was ordered to pay a $5,000 fine.

“This case was about three individuals who thought they could cheat the system to make a quick buck,” said U.S. Attorney Williams. “When individuals engage in insider trading, it undermines the integrity of our financial markets and harms ordinary investors who abide by the rules. Our Office will continue to investigate and hold accountable individuals who engage in this type of illegal activity.”

“Mark Ramsey knowingly traded on material, non-public information, to score a handsome profit,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “To maintain their integrity, our financial markets must be a level playing field for all investors, not just those with friends in the know. That’s exactly why the FBI works hard to hold accountable anyone engaged in insider trading.”

The case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission, and is being prosecuted by Assistant United States Attorneys David Ignall and Eileen Zelek.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced Kennard Murray, 37, of Philadelphia, PA, a currently incarcerated inmate at the Philadelphia Industrial Correctional Center (PICC), was sentenced to seven years in prison and three years of supervised release by United States District Court Judge Cynthia M. Rufe for his role in a conspiracy to smuggle contraband into the facility.

In May 2021, the defendant and two co-defendants, Haneef Lawton, 34, a Philadelphia Corrections Officer, and Charlene Stallings, 43, the defendant’s girlfriend, were charged by Indictment with conspiracy; federal program bribery; and distribution, conspiracy to distribute, and possession with intent to distribute narcotics.

The defendant and Lawton agreed to smuggle contraband on multiple occasions into PICC in exchange for a series of bribes. As part of the arrangement, Lawton delivered the narcotics to Murray, and Murray arranged to sell the contraband to other inmates in exchange for cash and electronic payments via peer-to-peer methods such as CashApp. In return, Murray and Stallings paid Lawton over $11,400, also using CashApp. Through this scheme, the defendants were able to traffic as much as $69,000 worth of contraband into PICC.

“One goal of incarceration is to deter future criminal conduct,” said U.S. Attorney Williams. “But instead of learning from previous mistakes, this defendant used his time behind bars to commit even more illegal acts by smuggling dangerous contraband inside. The U.S. Attorney’s Office will not tolerate this kind of lawless behavior.”

“Murray conspired from behind bars on this money-making scheme to have contraband smuggled into his facility,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “It’s disheartening when incarcerated prisoners are determined to keep breaking the law like this. Introducing illegal contraband into prisons poses a danger to correctional officers and inmates alike – that’s why the FBI is so determined to put a stop to it and hold those involved accountable.”

The case was investigated by the Federal Bureau of Investigation and Internal Affairs from the Philadelphia Department of Prisons, and is being prosecuted by Assistant United States Attorneys Eric L. Gibson and Frank Costello.

PHILADELPHIA, PA – United States Attorney Jennifer Arbittier Williams announced that Reveal Global Consulting, LLC (“Reveal”) has agreed to pay $820,000 to the federal government to resolve allegations that it violated the False Claims Act by improperly billing time and expenses in its performance of a contract with the Defense Intelligence Agency (“DIA”). 

In 2017, Reveal entered into a Spearheading CIO Applied Research and Leading Edge Technologies (“SCARLET”) contract with DIA. The contract was a time-and-materials contract under which Reveal could bill the United States only for time it actually expended and materials it required to fulfill its contractual obligations. Instead, Reveal allegedly billed the DIA for one twelfth of the total contract even for months in which less than one twelfth of the total required effort was devoted to the contract; devoted fewer than the promised employees for multiple months; submitted inflated and misstated bills for work by subcontractors; and invoiced the DIA for work supposedly performed by Reveal employees who had already left the company. Throughout the contract, Reveal allegedly failed to establish and maintain an adequate, effective timekeeping system.

“There is no excuse for invoicing the United States for work that was not done,” said U.S. Attorney Williams. “Companies that work for the United States have a moral and legal obligation to ensure that the United States receives the goods and services for which it is paying, and the United States Attorney’s Office is ready to investigate and punish contractors who flout this fundamental rule.”

“This case is a result of the stalwart, dedicated and collaborative work of investigators, DIA Office of the Inspector General (OIG), DOD OIG, Defense Criminal Investigations Services, the DCAA, and DOJ. The Office of the Inspector General, DIA, will continue to root out fraud, waste, and abuse in DIA processes while improving government funds stewardship from our civilian and contractor workforce,” said William Borden, Assistant Inspector General for Investigations, DIA.

“Investigating allegations of cost mischarging on Department of Defense (DoD) contracts is a top priority for the DoD Office of Inspector General's Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “The settlement agreement announced today is the result of a joint investigative effort with the Defense Intelligence Agency Office of the Inspector General and demonstrates the DCIS’ ongoing commitment to protect the integrity of DoD procurement.”

This investigation was conducted as part of the United States Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force with investigators from the Defense Intelligence Agency Office of Inspector General and DCIS, with assistance the Department of Commerce Office of Inspector General and Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Paul W. Kaufman handled the investigation and settlement.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that James Bell, 70, of Glen Mills, PA, who owns and operates Sherry’s Theater Ticket Agency, Inc. (“Sherry’s Tickets”), was sentenced today by United States District Judge Michael M. Baylson to six months in prison and three years of supervised release, ordered to pay $1,282,247 in restitution to the USGA, and ordered to forfeit over $598,000 in fraudulent profits for participating in a conspiracy to steal and sell more than $1.2 million worth of U.S. Open Golf tournament tickets.

In November 2021, the defendant pleaded guilty to multiple counts of fraud in connection with this ticket selling scheme. As part of his guilty plea, Bell admitted that he conspired with former United States Golf Association employee Robert Fryer (who was charged and convicted separately), to purchase from Fryer tickets to the 2017 through 2019 U.S. Open Golf Tournaments with a face value of over $1.2 million, which Fryer had stolen from the USGA. Bell admitted that he paid Fryer over $324,000 for the stolen tickets. Bell further admitted that he sold the tickets through Sherry’s Tickets for nearly $923,000, thus yielding a profit to Sherry’s of over $598,000.

“Bell stole revenue from the USGA, a legitimate business that pays taxes, employs many, supports a non-profit organization, and brings excitement and income to our district with U.S. Open events at golf courses around the region,” said U.S. Attorney Williams. “Criminals that conduct ticket schemes like this prey on the excitement surrounding big events; fans should remember that any item with a low price that seems ‘too good to be true’ should be cause for caution and concern.”

“This defendant’s actions are akin to a thief selling someone else’s property to make a quick buck,” said Special Agent in Charge Jacqueline Maguire. “The fraud at the center of this conspiracy took money from a legitimate business and earned this defendant a ticket to prison and a felony conviction to his name.”

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Moshe Porat, 75, of Bala Cynwyd, PA, the former Dean of Temple University’s Richard J. Fox School of Business and Management (“Fox”) from 1996 until 2018, was sentenced to one year and two months in prison, three years of supervised release, and was ordered to pay a $250,000 fine by United States District Court Judge Gerald J. Pappert after being convicted at of fraud in connection with a scheme to artificially inflate the school’s program rankings against other schools nationwide.

In November 2021, the defendant was convicted after trial on charges that he conspired and schemed to deceive the school’s applicants, students, and donors into believing that the school’s business degree programs legitimately earned top rankings, so that they would pay tuition and make donations to Temple. In April of the same year, Porat was charged by Indictment with one count of conspiracy to commit wire fraud and one count of wire fraud, stemming from a multi-year conspiracy in which the defendant participated with a Fox professor named Isaac Gottlieb and a Fox employee named Marjorie O’Neill to submit false information about the school’s online MBA (“OMBA”) and part-time MBA (“PMBA”) programs to U.S. News & World Report in order to inflate Fox’s rankings in the annual U.S. News surveys of top OMBA and PMBA programs.

Among other things, the conspirators agreed to provide false information to U.S. News about the number of Fox’s OMBA and PMBA students who had taken the Graduate Management Admission Test (“GMAT”); the average work experience of Fox’s PMBA students; and the percentage of Fox students who were enrolled part-time, all because it was believed that better numbers for these metrics would result in better rankings for the programs.  And indeed, the scheme was successful. Relying on the false information it had received from Fox, U.S. News ranked Fox’s OMBA program Number One in the country four years in a row (2015 – 2018). U.S. News also moved Fox’s PMBA program up its rankings from No. 53 in 2014 to No. 20 in 2015, to No. 16 in 2016, and to No. 7 in 2017. Finally, the defendant boasted about these rankings in marketing materials directed at potential Fox students and donors. Enrollment in Fox’s OMBA and PMBA programs grew dramatically in a few short years, which led to millions of dollars a year in increased tuition revenues.

 “The defendant conspired to provide false information about Fox programs and students in order to boost its appearance and fraudulently manipulate those who sought to support a top-tier school,” said U.S. Attorney Williams.” “Today an unhappy chapter for higher education in Philadelphia has come to a close and Moshe Porat has been sentenced to a term of imprisonment appropriate for his crime.”

“This defendant was, at one time, a well-respected member of academia,” said Special Agent in Charge Jacqueline Maguire. "But when he conspired to game the system and cheat potential students, he blurred the lines and went from well-educated professional to run-of-the-mill fraudster. The FBI does not care about your status in life when you break the law. We will bring to justice anyone who defrauds the government and, by extension, the public.”

The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Department of Education’s Office of the Inspector General; and is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff, Nancy Potts and M.T. Soltis.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Jose Manuel Figueroa, 52, of Philadelphia, PA, was sentenced to 14 years and seven months in prison, and six years of supervised release by United States District Court Judge Petrese B. Tucker for numerous narcotics and firearms offenses.

In September 2021, the defendant pleaded guilty to eight counts of distribution of heroin and one count each of possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. The charges stemmed from an investigation in which the defendant sold heroin packaged for street-level distribution on numerous occasions between May 2018 and July 2018. In September 2018, investigators executed a search warrant at the defendant’s residence and seized more heroin and two firearms stashed near the drugs. The defendant committed these offenses after having been previously convicted of voluntary manslaughter in the Philadelphia Court of Common Pleas and federal drug trafficking charges in the United States District Court for the Middle District of Florida.

“Drugs and firearms are a very dangerous combination, especially in Philadelphia where the violent crime rate has reached record levels,” said U.S. Attorney Williams. “Today’s sentence should serve as an example to others who have previously been convicted of felony offenses and are considering carrying firearms or committing other illegal acts: our ‘All Hands on Deck’ initiative uses every law enforcement tool at our disposal to find and stop you. We will continue our coordination with the Philadelphia Police Department and federal agencies to make the community safer by removing these criminals from the streets.”

“Figueroa’s continued criminal behavior is emblematic of the potential for violence associated with the illegal drug trade,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “His illegal possession of multiple guns, packaged heroin for distribution, and prior felony convictions on federal drug charges and voluntary manslaughter are indicative of the threat he posed to our community.”   

The case was investigated by the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Pennsylvania State Police; and Phoenixville Police Department, and is being prosecuted by Assistant United States Attorneys Francis A. Weber and Derek E. Hines.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that pharmaceutical company Mallinckrodt ARD LLC (previously Questcor Pharmaceuticals, Inc., “Questcor,” and collectively “Mallinckrodt”), has agreed to pay $260 million as part of a global settlement to resolve separate allegations that Mallinckrodt violated the False Claims Act by knowingly: 1) using a foundation as a conduit to pay illegal copay subsidies in violation of the Anti-Kickback Statute; and 2) underpaying Medicaid rebates due to the large price increases of its drug H.P. Acthar Gel (“Acthar”). The government filed separate complaints detailing these allegations in 2019 and 2020, respectively. The settlement, which is based on Mallinckrodt’s financial condition, required final approval of the U.S. Bankruptcy Court for the District of Delaware, which approved the settlement on March 2, 2022.

Kickback Claims

The U.S. Attorney’s Office for the Eastern District of Pennsylvania filed a complaint alleging kickbacks involving Medicare Part D copays in August 2019. When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value—to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations. 

In its complaint, the government alleges that Mallinckrodt used a foundation as a conduit to pay illegal kickbacks in the form of copay subsidies for Acthar so it could market the drug as “free” to doctors and patients while increasing its price. Mallinckrodt allegedly paid these illegal subsidies through three funds that Mallinckrodt established through a foundation in order to induce Medicare-reimbursed purchases of Acthar at its ever-increasing price. Mallinckrodt used the subsidies to counteract doctor and patient concerns about the drug’s high cost and to market the drug as “free.”     

“When pharmaceutical companies manipulate Medicare Part D by covering patient copays, the whole structure of the Part D program is undermined,” said United States Attorney Jennifer Arbittier Williams. “Our Office is committed to maintain the financial integrity of taxpayer-funded programs like Medicare, and therefore we will continue to pursue fraud actions like this so that Medicare Part D and other federal healthcare programs remain viable for those who rely on the benefits.” 

“The Medicare Part D Program provides vital prescription drug services to Medicare beneficiaries,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office for the Department of Health and Human Services, Office of Inspector General. “HHS-OIG will continue to work with the U.S. Attorney’s Office to ensure the integrity of the Medicare Trust Fund.”

Medicaid Claims

The District of Massachusetts filed a complaint alleging fraud against the Medicaid Rebate Program in early 2020. Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs.  The government alleges that Mallinckrodt knowingly underpaid rebates due for Acthar from 2013 until 2020.  According to the Complaint, Mallinckrodt and its predecessor Questcor began paying rebates for Acthar in 2013 as if Acthar was a “new drug” first marketed in 2013, rather than a drug that had been approved since 1952.  Allegedly, this practice meant the companies ignored all pre-2013 price increases when calculating and paying Medicaid rebates for Acthar from 2013 until 2020.  In particular, the government alleged that Acthar’s price had already risen to over $28,000 per vial by 2013, and therefore ignoring all pre-2013 price increases for Medicaid rebate purposes significantly lowered Medicaid rebate payments for Acthar.  Under the settlement agreement, Mallinckrodt admits and agrees that there is only one Acthar, that FDA approved Acthar in 1952, and that Acthar was first produced, distributed, and marketed prior to 1990.

The global settlement provides for Mallinckrodt’s payment of approximately $234.7 million to resolve the Medicaid Claims and approximately $26.3 million to resolve the Kickback claims. In October 2020, Mallinckrodt filed for bankruptcy protections and this settlement with the government has been approved for payment by the United States Bankruptcy Court for the District of Delaware.

The government’s allegations were originally alleged in cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did in these case, which are captioned: United States of America et al. ex rel. Landolt v. Mallinckrodt Pharmaceuticals Inc., No. 18-11931-PBS (D. Mass.); United States of America ex rel. Strunck et al. v. Mallinckrodt ARD, Inc., No. 12-CV-0175 (E.D. Pa.), and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc., No. 13-CV-1776 (E.D. Pa.). The whistleblowers in the E.D. Pa. qui tam will receive approximately $4.9 million from the recovery. “We sincerely thank the relators in this case. Together with their lawyers, these citizens provided invaluable assistance to the government throughout this case. Without the willingness of relators to shed light on allegations of fraud, preserving government program funds would be far more challenging. Their efforts played a vital role in the resolution of these cases,” said U.S. Attorney Williams. 

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

The settlement agreement in the Eastern District of Pennsylvania is being handled by Assistant U.S. Attorneys Colin Cherico, Paul Koob and Matthew Howatt and auditor George Niedzwicki with assistance from the U.S. Department of Health and Human Services Office of Inspector General. In 2019, under a separate agreement stemming from the same qui tam filing in the Eastern District of Pennsylvania, Mallinckrodt agreed to pay $15.4 million to resolve claims that Questcor paid illegal kickbacks to doctors, in the form of lavish dinners and entertainment, to induce prescriptions of Acthar from 2009 through 2013. 

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Naquor Berry, 28, of Philadelphia, PA, was arrested and charged by Indictment with possession of ammunition by a felon, possession of a controlled substance with the intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, all stemming from a dangerous high-speed incident which unfolded on the Schuylkill Expressway.

The Indictment alleges that on September 12, 2021, Philadelphia Police Department officers observed the defendant commit a traffic violation and attempted to pull him over. Berry fled in his vehicle, travelling on I-76 West toward the Roosevelt Boulevard exit. As the officers pursued him with lights on, the defendant began speeding and swerving in and out around other vehicles. Berry’s vehicle struck two vehicles and ultimately crashed into the median on I-76, rendering his vehicle immobile. The defendant then got out of the vehicle and fled from police on foot, jumping off the overpass onto Route 1 Northbound, an approximately 40-foot drop, injuring his leg. When officers searched the vehicle that Berry was driving, they recovered an AR-15 style rifle, commonly referred to as a ghost gun because there is no serial number, loaded with 10 rounds of .223 caliber ammunition, marijuana packaged for resale, and two sticks of dynamite.

“The defendant’s alleged actions, both the charged conduct and his potentially deadly escapades on the highway, presented a serious threat to the safety of our community,” said U.S. Attorney Williams. “This indictment should serve as an example to others who have previously been convicted of felony offenses and are considering carrying firearms, even untraceable firearms, that we will use every law enforcement tool at our disposal to find and stop you. If you choose to illegally carry a firearm, you are going to face serious federal charges.”

“ATF is committed to protecting the citizens of our community from dangerous people,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The community is extremely lucky nobody was seriously injured as a result of the defendant’s alleged actions.  We will continue to work with all our local, state, and federal partners to keep the people of the Commonwealth safe.”

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 make our neighborhoods safer for everyone.   The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

If convicted, the defendant faces a maximum possible sentence of life in prison, a five-year period of supervised release, a $750,000 fine, and a $300 special assessment.

The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Special Assistant United States Attorney Katherine A. McDermott.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that David Cooper, 47, of Reading, PA, was sentenced to 32 years in prison, eight years of supervised release, and was ordered to pay $2,000 fine by United States District Court Judge Joseph F. Leeson, Jr. for organizing and directing a prolific drug gang from his home located outside of Reading in Muhlenberg Township.

In September 2021, the defendant pleaded guilty just before trial to charges including conspiracy to distribute fentanyl, cocaine, and cocaine base (“crack”); possession with intent to distribute narcotics; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon. The charges stem from Cooper’s role in leading a drug trafficking organization which supplied large quantities of fentanyl, cocaine, and cocaine base to other drug dealers and drug users in Pottstown, Allentown, and the surrounding communities.

During the investigation into Cooper’s organization, detectives received permission to install court-ordered wiretaps on phones used by the defendant. Using extensive surveillance and the intercepted telephone calls, Montgomery County Detectives and FBI agents arrested the defendant as he attempted to resupply his organization with 200 grams of fentanyl, enough for more than six thousand individual doses. Investigators also seized narcotics, drug packaging materials, and a firearm. During the same operation, Cooper’s drug customer Comese Robinson, of Pottstown, PA, was also arrested and later convicted of similar charges in Montgomery County Court. Robinson was sentenced in December 2021 to 7 ½ to 15 years in state prison. Additionally, Cooper’s supplier, Miguel Figueroa, Jr., also of Reading, PA, was convicted of similar charges in Montgomery County Court and was sentenced to 18 to 40 years in state prison, and Cooper’s federal co-defendant, Edwin Andino, 39, of Allentown, PA, was also convicted of similar charges and sentenced to 18 years in federal prison.

“This case is an excellent example of all levels of law enforcement collaborating to dismantle a dangerous drug trafficking operation putting deadly narcotics on streets all across the Eastern District of Pennsylvania,” said U.S. Attorney Williams. “Cooper personally threatened the safety of his neighbors in Reading, and all communities in our District, through his dangerous and illegal actions, for which he will now spend over three decades behind bars.”

“Illegal drugs continue to kill thousands of people every year,” said Special Agent in Charge Jacqueline Maguire. “The FBI shares concern over this serious problem with our federal and local law enforcement partners, and we vow to the communities we serve that we will continue to track down the criminals who are reaping monetary rewards by pushing potentially deadly drugs on the streets of our neighborhoods.

“We are pleased to see David Cooper sentenced for his role in flooding Montgomery County and surrounding areas with large quantities of deadly drugs, including fentanyl,” said Montgomery County District Attorney Kevin R. Steele. “The investigation began with concerned citizen reports and ended after a lengthy investigation in the arrest of Cooper and more than two dozen others. Thank you to all of our local, regional, state and national partners for their efforts with this case and their ongoing commitment to ridding our communities of these deadly poisons.”

The case was investigated by the Montgomery County Detective Bureau’s Violent Crime Unit; the Federal Bureau of Investigation and the FBI Bucks and Montgomery County Safe Streets Task Force; the Office of the Pennsylvania Attorney General’s Bureau of Narcotics Investigation; Pottstown Borough Police Department; Pennsylvania State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Berks County District Attorney’s Narcotics Enforcement Team; Lehigh County Detective Bureau; Reading City Police Department; Allentown Police Department; Muhlenberg Township Police Department; and the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (HIDTA) program; and is being prosecuted by Assistant United States Attorney Christopher E. Parisi.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Anthony Cintron, 20, of Philadelphia, PA, was sentenced to eight years and one month in prison and five years of supervised release by United States District Judge Eduardo C. Robreno for numerous gun and drug offenses, including illegally possessing a firearm that had been modified to be fully automatic.

In November 2021, the defendant pleaded guilty to charges including possession with intent to distribute crack cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a machinegun. The charges stemmed from an investigation conducted earlier in 2021 after law enforcement observed the defendant possessing firearms in social media posts. Investigators executed a search warrant at the defendant’s residence and seized distribution-level quantities of crack cocaine, two loaded firearms near the drugs, and a Glock pistol equipped with a machinegun conversion device—i.e., a device that attached to the pistol and converted it into a fully automatic weapon. That seized, modified pistol was highlighted as an illegal weapon recently taken off the streets during the City of Philadelphia’s first biweekly gun violence briefing held nearly one year ago on March 17, 2021.

“At the time this weapon was found in the defendant’s possession and seized by law enforcement officers, City leaders asked for assistance from all partners to tackle the violence crisis in Philadelphia,” said U.S. Attorney Williams. “Our Office and our federal partners heeded that call and responded that we would be All Hands On Deck in doing our part. The sentence handed down today putting Cintron behind bars for more than eight years demonstrates our commitment to this pledge.”

“Cintron’s brazen display of possessing firearms on social media shows how prevalent the gun threat is and has been in our city,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.   “His criminal acts, to include possession of a full-automatic machinegun, show the level of violence that is associated with the illegal drug-trade.  Working to stem the gun violence that has plagued Philadelphia is one of our top enforcement priorities working with our partners in the Philadelphia Police Department.”  

The case was investigated by the Drug Enforcement Administration and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Francis A. Weber.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Thomas Harris Jr., 29, of Croydon, PA, was sentenced to three years and 10 months in prison, and three years of supervised release for multiple firearms trafficking offenses stemming from his scheme to sell almost 40 guns to a buyer on the island of St. Lucia.

In September 2020, the defendant was charged by Indictment with making false statements to a federal firearm licensee, dealing in firearms without a license, delivery of firearms to a common carrier without written notice, and smuggling goods from the United States. Harris purchased approximately 38 firearms in 12 transactions at two Bucks County gun shops between April 2019 and February 2020, and provided a false address as his place of residence on the required federal forms that he completed during each transaction. The defendant then illegally trafficked the guns to St. Lucia, a sovereign island nation in the West Indies, despite his not having a license to deal in firearms nor a license to export.

One of Harris’s packages to St. Lucia was intercepted by federal agents at the warehouse of a local shipping company. Inside, concealed in household items such as packages of diapers, cat litter and laundry detergent, the agents found seven Glock semiautomatic pistols, one Ruger semiautomatic pistol, two AK-47 pattern pistols, two AK-47 pattern rifles, two AR-15 lower receivers, two AR-15 upper receivers, ten high-capacity Glock ammunition magazines, seven additional assorted ammunition magazines, and 815 rounds of ammunition.

“By shipping high-powered firearms to a foreign nation, the defendant displayed a brazen disrespect for our laws regulating and monitoring the sale of weapons,” said U.S. Attorney Williams. “Trafficking in firearms overseas is a serious federal offense, and one for which our Office will hold offenders like Harris accountable.”

“Firearms trafficking is at the forefront of ATF’s mission,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Harris’ sentencing should send the message to criminals that a blatant disregard of federal firearms laws will be investigated jointly by ATF and our local, state, and federal partners.”

“The FBI continues to work with our law enforcement partners in pursuit of criminals whose actions violate our laws and put the citizenry of our country – or any other – in harm’s way,” said Special Agent in Charge Jacqueline Maguire. “We have a global reach. It doesn’t matter if you are breaking laws and illegally trafficking guns within your state, within this country, or around the world. We will bring you to justice.”

“Illegally exporting firearms from the United States is a serious violation of our nation’s export control laws and often has dire consequences abroad,” said Jonathan Carson, Special Agent in Charge of the U.S. Department of Commerce’s Office of Export Enforcement, New York Field Office. “This case demonstrates the outstanding collaboration between the Office of Export Enforcement and our law enforcement partners to aggressively enforce export violations in the interest of national security in the U.S. and abroad.”

The case was investigated by the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joseph A. LaBar and U.S. Department of Justice National Security Division Trial Attorney Michael E. Eaton.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Malan Doumbia, 38, and Souleymane Diarra, 36, both of Philadelphia, PA, were convicted after trial of nine counts including conspiracy to commit wire fraud, access device fraud, aggravated identity theft, and conspiracy to commit money laundering, in connection with a scheme to purchase stolen credit card numbers from the dark web, use the accounts to purchase consumer products, and then re-sell the products for cash.

As part of the scheme, the defendants worked with several associates to purchase large quantities of stolen credit card numbers off black market websites located in Russia, Ukraine, and elsewhere overseas. They then encoded the stolen card numbers onto blank cards here in Philadelphia, and employed a network of runners who used the stolen credit card numbers to buy large quantities of gift cards and other items which could be quickly resold for cash, like Apple products, cigarettes, and diapers. When the United States Secret Service searched the defendants’ homes, agents found numerous computers, tablets, cell phones, re-encoding machines, card readers, and more than 200,000 stolen credit card numbers.

“Identity theft and financial fraud schemes like this one have a devastating and long-lasting impact on the victims, who have no way to prevent or stop the violations” said U.S. Attorney Williams. “ Our Office will continue to do everything we can to ensure that such fraud scams are stopped and punished, whether the fraudsters are located here or abroad.”

“So long as criminals insist on stealing identities and livelihoods, so will the Secret Service continue to identify and stop their despicable operations,” said U.S. Secret Service Philadelphia Special Agent in Charge James Henry. “Our highly trained investigators are uniquely trained and steadfastly dedicated to our mission to ensure a secure national financial environment. The Secret Service, together with all of our critical law enforcement partners at all levels, can and will ensure these criminals are brought forward for justice, no matter the dark corner of the internet in which these offenders think they can hide.”

“The defendants in this case stole money and personally identifiable information from unsuspecting victims, then went to extraordinary lengths to hide their illicit activities from law enforcement scrutiny,” said William S. Walker, the special agent in charge of Homeland Security Investigations, Philadelphia. “As a result of this investigation, they will now be held accountable for their reprehensible crimes. HSI is pleased to have worked with our partners in federal and local law enforcement to bring the offenders in this case to justice.”

The case was investigated by the United States Secret Service, with assistance from the Department of Homeland Security, Homeland Security Investigations, the U.S. Customs and Border Protection, the Swatara Township Police Department, the Lower Salford Township Police Department, the Haverford Township Police Department, the Montgomery Township Police Department, the Deptford Police Department, the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Robert J. Livermore.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that the United States filed an amended civil complaint against pharmacist Todd Goodman and pharmacy employees Eric Pestrack and Lee Kamp for their alleged involvement in years-long practices of illegally dispensing opioids and other controlled substances, and systematic health care fraud, at Philadelphia-based pharmacy Spivack, Inc., which previously operated under the name Verree Pharmacy. These individuals were added as defendants in the previously filed lawsuit against Verree and its former owner, pharmacist Mitchell Spivack, for the same alleged schemes. The amended complaint continues to seek civil penalties and civil damages, which could total in the millions of dollars, as well as injunctive relief.

The lawsuit, in which Goodman, Pestrack, and Kamp were added, was the culmination of a multi-year federal-state investigation. The amended complaint alleges that Verree Pharmacy, Spivack, Goodman, Pestrack, and Kamp had a responsibility to dispense opioids and other controlled substances only when appropriate. Instead, the United States alleges that Verree and these individuals dispensed the drugs, even when faced with numerous red flags suggestive of diversion—such as opioids in extreme doses, dangerous combinations of opioids and other “cocktail” drugs preferred by those struggling with addiction, excessive cash payments for the drugs, blatantly forged prescriptions, and other signs that the pills were being diverted for illegal purposes.

The amended complaint alleges that Verree—which was the top retail pharmacy purchasing oxycodone in Pennsylvania—has been a nationwide and regional outlier in its deviant purchasing, dispensing, and billing of controlled substances. To avoid scrutiny from the drug distributors that sold them the pills, Verree through Spivack allegedly made false statements to maintain the façade of legitimacy and keep the pharmacy stocked with pills critical to its profits. Behind that façade, the amended complaint alleges that Spivack drew millions of dollars from the pharmacy while the public suffered the consequences, including one patient who overdosed and died next to Verree Pharmacy bottles dispensed by Spivack.

The United States’ amended complaint also alleges that Verree, Spivack, Goodman, Pestrack, and Kamp were engaging in an expansive health care fraud scheme involving fraudulent billings for drugs not actually dispensed. The alleged cornerstone of the scheme was a code used by the pharmacy employees in their internal computer system: “BBDF” or “Bill But Don’t Fill.” Verree, Spivack, Goodman, Pestrack, and Kamp allegedly used BBDF as a means to cover their losses on other drugs and further the pharmacy’s illicit profits by falsely claiming to insurers, including Medicare, that they had dispensed a drug to a patient, when in fact they had not. According to the amended complaint, this sophisticated fraud—which one of the employees admitted to investigators—resulted in significant losses to Medicare and other federal programs.

The lawsuit seeks to impose civil penalties and damages on Verree, Spivack, Goodman, Pestrack, and Kamp under the Controlled Substances and False Claims Acts. If Verree, Spivack, Goodman, Pestrack, and Kamp are found liable, they could face civil penalties up to $68,426 for each unlawful prescription dispensed, civil penalties up to $23,607 for each false claim they submitted to federal health care programs, and treble damages for the alleged health care fraud against federal programs. The court may also award injunctive relief to prevent the defendants from committing additional controlled substance violations.

If the public has any information regarding Verree Pharmacy or any other health care fraud allegation, individuals should contact the HHS-OIG hotline at 800-HHS-TIPS.

The case is being investigated by the Philadelphia Field Division of the Drug Enforcement Administration, the Pennsylvania Department of State’s Bureau of Enforcement and Investigation, HHS-OIG, and the Pennsylvania Office of the Attorney General, with additional assistance from the Office of Personnel Management Office of Inspector General, the Defense Health Agency, and the Defense Criminal Investigative Service. The civil investigation and litigation are being handled by Assistant United States Attorney Anthony D. Scicchitano and auditors Dawn Wiggins and George Niedzwicki.

The amended complaint contains allegations only that the United States must prove if the case proceeds to trial.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Alex Fernandez-Pena, 32, and Juan Jose Rodriguez, 20, both of Philadelphia, PA, were arrested and charged by Indictment on charges of carjacking and brandishing a firearm during a crime of violence stemming from an incident earlier this year in the Parkside section of Philadelphia. Both defendants were taken into federal custody and will make their initial appearances on these charges tomorrow, February 24, 2022.

On January 3, 2022, the defendants used their Honda Accord to bump the rear bumper of a Lyft vehicle, an Infiniti G37, that was transporting a passenger on the 1100 block of North 40th Street. After the Lyft driver exited his vehicle, Fernandez-Pena allegedly pointed a 12-gauge shotgun at the driver-victim and then drove off with the Lyft vehicle after its passenger escaped through a rear door. The driver-victim, who had a license to carry a firearm, shot Fernandez-Pena before the defendant drove away in the victim’s vehicle. The victim then shot Rodriguez, the suspect who allegedly initiated the attack by rear-ending the Infiniti, after Rodriguez threatened to run the victim over with his Honda. Philadelphia Police officers subsequently captured both defendants nearby. The attack occurred in broad daylight around 2:30 p.m., less than a mile away from family attractions like the Please Touch Children’s Museum and the Philadelphia Zoo.

“As we have said many times since launching the #AllHandsOnDeck initiative, our Office and our federal partners are doing everything we can to support the Philadelphia Police Department and prosecute cases federally when appropriate,” said U.S. Attorney Williams. “Here, the defendants allegedly committed a brazen carjacking at gunpoint in the middle of the afternoon in busy neighborhood; an offense that certainly meets the criteria for federal indictment. We are committed to bringing the full might of the federal justice system to this battle.

“ATF’s main objective will always be keeping our citizens safe,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “This indictment is indicative of ATF’s continued efforts working with our partners and proudly serving as part of the joint carjacking task force, being led by the Philadelphia Police Department. We will continue working with our local, state, and federal partners in making sure violent individuals are held accountable when they threaten the safety of the community.”

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 make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

If convicted, each defendant faces a maximum possible sentence of life in prison, as well as a mandatory minimum sentence of seven years’ incarceration.

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 Michael R. Miller.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that William Mack, 34, of Philadelphia, PA, was sentenced to 12 years and seven months in prison and five years of supervised release by United States District Court Judge Karen S. Marston for selling large amounts of narcotics. This is the defendant’s sixth drug trafficking conviction dating back to 2005.

In September 2021, the defendant pleaded guilty to multiple counts of distributing large amounts of methamphetamine, stemming from his operation of a prolific drug trafficking organization in and around Northeast Philadelphia. According to court documents, Mack was recorded selling large amounts methamphetamine to an FBI confidential source, including a sale of almost one pound of pure methamphetamine for $6,300.

“The defendant was caught red-handed selling a powerful and oftendeadly drug that has wreaked havoc and helped fuel the drug epidemic in our city,” said U.S. Attorney Williams. “Mack’s criminal conduct in this case is only aggravated by his more than 15-year history of drug trafficking, a record which reflects constant defiance of the law. The sentence handed down today reflects the serious nature of his crimes and persistent recidivism.”

“Mr. Mack was not a novice narcotics trafficker,” said Special Agent in Charge Jacqueline Maguire. “His sentence is a direct result of his brazen illegal activities and his apparent view that the consequences did not outweigh the benefits of peddling poison.  But criminal actions have consequences, and those involved in the drug trade should know that the FBI is actively pursuing these cases in order to combat the impact this toxin is having on our communities.” 

“Mack has been convicted of drug trafficking six times, this time caught by law enforcement attempting to sell methamphetamine. These substances ruin lives and destroy communities,” said William S. Walker, acting Special Agent in Charge of the HSI Philadelphia field office. “HSI is committed to working with our partners to keep deadly drugs like these off our streets.”

The case was investigated by the Federal Bureau of Investigation, Homeland Security Investigation, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Everett Witherell and Meaghan Flannery.

PITTSBURGH, PA – A Beaver County resident has been sentenced in federal court to 12 months and one day in prison followed by three years of supervised release on her conviction of wire fraud and filing false income tax returns, United States Attorney Cindy K. Chung announced today.

United States District Judge Robert J. Colville imposed the sentence on Jeanne Bowser, 63, of Aliquippa, PA.

According to information presented to the court, Bowser was the elected tax collector for Center Township, Beaver, Pennsylvania and also collected taxes for Central Valley School District. From approximately December 2011 until approximately August 2019, Bowser embezzled a total of approximately $1,028,183.81 in tax payments from both the township and school district. She embezzled the funds by writing checks to herself out of a bank account that was used for tax deposits and by stealing cash tax payments. In addition to the embezzlement, the Court was further advised that Bowser filed false income tax returns for a period of six years.

Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.

United States Attorney Chung commended the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Bowser.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Curtis Anderson, 60, of Claymont, DE, was sentenced to two years and six months in prison and three years of supervised release, and was ordered to pay nearly $3 million in restitution by United States District Court Judge Timothy J. Savage for embezzling approximately $2.94 million from his former employer, the Kappa Alpha Psi Fraternity, Inc.

In November 2021, the defendant pleaded guilty to four counts of wire fraud and one count of aggravated identity theft in connection with his embezzlement from his employer. Anderson, who had served as the Director of Finance for the fraternity, was authorized to make deposits into the organization’s bank accounts but was not allowed to sign checks. Beginning as early as 2012, the defendant wrote numerous large checks to himself without permission using the signature stamps of authorized signatories, and withdrew cash from the fraternity’s bank accounts without permission. He also wrote checks payable to several other individuals who worked for the fraternity, without their knowledge, and then forged their endorsements, cashed the checks, and pocketed the money. In total, the defendant embezzled over $2.94 million from the fraternity over a six-and-a-half-year period.

“This defendant swindled almost three million dollars from his former employer and covered his tracks well enough that his illegal actions went undetected for many years,” said U.S. Attorney Williams. “Instead of doing the right thing and performing his job honestly for an historic organization that works to benefit and sustain its members, he chose the greedy path. Our Office will continue to work with our law enforcement partners to protect innocent individuals and organizations from being victimized by financial fraud.”

The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Secret Service and the Federal Deposit Insurance Corporation – Office of Inspector General, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Samuel Bullock, 72, of Langhorne, PA, entered a plea of guilty before United States District Court Judge Michael M. Baylson for his orchestration of a tax fraud scheme to avoid paying nearly $1.3 million in federal income taxes for his general contracting business, Bullock Construction.

In September 2020, the defendant was charged with multiple tax charges, including one count of aiding and assisting in the filing of a false federal tax return, and one count of willful failure to file a federal tax return, all relating to his efforts to avoid paying taxes for his construction business. In 2009, after the defendant had failed to file federal income tax returns for nearly a decade, the Internal Revenue Service secured liens for more than $1.2 million assessed in taxes, plus more in interest and penalties. The defendant responded by taking steps to avoid collection by arranging to have his business income paid over to a sole proprietorship that he had set up in the name of his spouse, including providing his clients with new Forms W-9 with his spouse’s Social Security number and opening a new business checking account in his spouse’s name and the alleged sole proprietorship. The defendant then reported his own income on the tax return of his spouse, using the filing status “Married filing separately.” Although he was aware that he had earned income and was obliged to file a federal income tax return, Bullock failed to do so.

“Samuel Bullock’s scheme to enrich himself and avoid paying his fair share of income taxes victimized honest American taxpayers and business owners who do pay their tax obligations,” U.S. Attorney Williams said. “By ignoring the IRS and its legitimate demands for information from him, the defendant magnified his own tax liabilities. This type of fraud will be aggressively investigated and prosecuted by this Office.”

“For years, Mr. Bullock cheated and stole from the American people and the Government,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “He went through great lengths to hide his earnings and evade his tax liability. His admission of guilt today is a reminder that IRS Criminal Investigation will continue to vigorously pursue those to seek to violate their known duty to file accurate tax returns and pay their fair share.”

The case was investigated by Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Brihany Baker, 25, of Philadelphia, PA, was sentenced to one year and one day in prison, and two years of supervised release United States District Court Chief Judge Juan R. Sánchez for illegally purchasing three semi-automatic firearms for her romantic partner.

In November 2021, the defendant was convicted after trial on charges of criminal conspiracy to knowingly make false statements to a federal firearms licensee, and making a false statement to a federal firearms licensee, following a June 2020 investigation into straw purchasers at a gun dealer in Horsham, PA. Investigators were conducting surveillance of that store when they observed the defendant and her boyfriend, Donte Maxwell, enter the store. Maxwell was prohibited from purchasing firearms at the time he entered the store with the defendant. The investigators proactively delayed any sale of firearms to the defendant and obtained video from inside the store, which showed Maxwell place a $200 deposit on three semi-automatic firearms, handle the firearms, and take pictures of the firearms. The defendant subsequently returned to the store and purchased the three semi-automatic firearms, falsely stating on a federal form 4473 that she was buying them for herself and not another person.

“Our Office, together with our law enforcement partners, are ‘All Hands On Deck’ to interrupt and prevent violent crime in Philadelphia. One important tool in our arsenal is our ability to investigate and federally prosecute straw-purchasers,” said U.S. Attorney Williams. “By charging crimes like straw purchasing of firearms, we can cut off the supply of illegal weapons at the source and hopefully prevent at least one violent act. Now, this defendant will spend serious time in federal prison for her crime.”             

“Far too often, guns recovered by law enforcement officers originate from straw purchaser,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Office. “Typically, straw purchased firearms are used in violent crimes, so it is important to combat the gun violence at its source, which is straw purchasing.  With his sentence, the entire community is a bit safer knowing Baker will no longer be able to purchase firearms for individuals who are not allowed to possess them.  This is a great outcome thanks to our partners at the U.S Attorney’s Office.”

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 make our neighborhoods safer for everyone.   The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Matthew Pardi, 37, of Fort Lauderdale, FL, and Ashley Lynn Hars, of Plantation, FL, and Pardi’s wholly owned corporation, Proud American Vanlines, LLC, formerly known as Moving Accounting Department, LLC, were charged by Indictment with wire fraud, interstate transportation of property obtained by fraud, and aggravated identity theft in connection with a scheme in which they held customers’ belongings for ransom.

The Indictment alleges that over the course of more than three years, Pardi and Hars created a series of online profiles for moving companies, stealing the identities of legitimate companies to support their fake identities. The defendants falsely claimed that the companies were “family owned,” that they had been in business for over a decade and boasted more than a thousand satisfied customers. The defendants created false 5-Star reviews on their own websites and on legitimate review websites such as the Better Business Bureau and Yelp!, in order to trick customers into booking their moving services and providing deposits. According to the Indictment, once the customer was ensnared, the defendants routinely increased the estimate of their fees, both before the move was begun and after the goods were loaded onto the moving truck, in clear violation of federal regulations. If a customer refused to agree to pay the increased price, the defendants refused to deliver the customer’s household goods. As a result of the scheme, the defendants fraudulently obtained more than $12 million.

As part of this scheme, the defendants and their associates created and did business under the following Pardi Company names and websites: American Eagle Moving (americaneaglemoving.net); Alliance Movers (alliancemoversinc.com); Titan Moving and Storage (titanmovingandstorage.com); First Call Relocations (firstcallrelocations.com); Trans World Van Lines, Inc. (transworldvanlinesinc.com, transworldvanlines.net); Safeway Moving System (safewaymovingsystem.com); Gateway Moving and Storage (gatewaymovingand-storage.com); and Prestige Worldwide Moving (prestigeworldwidemoving.com), among others.  They left in their wake victims from all over the country, including many from Philadelphia and surrounding suburbs.

“With spring right around the corner and the effects of the COVID-19 pandemic still lingering, many Americans will be boxing up their belongings and moving to a new home that better suits their changed lifestyle,” said U.S. Attorney Williams. “During what is typically a very stressful transition, consumers need to be able to rely upon the trustworthiness of the companies they hire to safeguard their valuables and transport them to their destination. We will continue to do everything we can to protect the public from fraudsters who employ illegal, extortionate tactics.”

“Fraudsters can try to use multiple aliases behind which to hide their fraud, and various ways by which to manipulate public reviews, so as to fool even people who were doing their due diligence,” said FBI Special Agent in Charge Jacqueline Maguire. “The bottom line is, together with our law enforcement partners, the FBI will still find you.  And as we do our work to bring the criminals to justice, we remind the public that research and awareness are still the best forms of protection.  Before contracting with a moving company, be sure to search reviews, seek recommendations from those you trust, and obtain bids from multiple sources.  Don’t let price drive your decision, or it could end up costing you far more than you imagine.  If you were victimized by any of the Pardi Companies listed in the indictment, we want to hear from you at movingcompanyfraud@fbi.gov.” ​

“Today’s indictment demonstrates our commitment to detecting and pursuing fraudulent household goods movers who unscrupulously take advantage of customers by being deceitful about the services they provide,” said Joseph Harris, Regional Special Agent-in-Charge, Department of Transportation Office of Inspector General, Northeastern Region.“ As we continue working with our law enforcement and prosecutorial partners, as well as the Federal Motor Carrier Safety Administration, we also encourage the public to review resources and tools available at https://www.oig.dot.gov/investigations/household-goods-moving-fraud.”

If convicted, the defendants face a maximum possible sentence of more than 300 years in prison, and fines of up to $6.25 million.

The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Transportation Office of Inspector General, and is being prosecuted by Assistant United States Attorney Nancy Rue.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Omar White-Davis, 28, of Philadelphia, PA, and Acia Moore, 20, also of Philadelphia, PA, were charged by Indictment with multiple counts of Hobbs Act robbery and related firearms offenses in connection with multiple armed robberies of businesses in the Feltonville and Juniata sections of North Philadelphia, including Café Tinto restaurant on Wyoming Avenue, which was targeted twice in two days.

The Indictment alleges that White-Davis and Moore attempted to rob and did rob a variety of small businesses, both together and separately, stealing approximately $3,100 dollars total between November 21 and December 6, 2021. The incidents alleged are as follows:

• On November 21, 2021: WhiteDavis attempted to rob the Ariel Grocery, 2000 block of E. Pacific Street;
• On December 1, 2021: Moore robbed the AlMolhem Store, 400 block of E. Wyoming Avenue;
• On December 2, 2021: WhiteDavis and Moore robbed Café Tinto, 100 block of E. Wyoming Avenue
• On December 4, 2021: Moore returned to Café Tinto approximately 48 hours later and robbed it again;
• On December 6, 2021: Moore robbed the Leslie Mini Market, 4200 block of Bodine Street; and,
• Also on December 6, 2021: approximately an hour later, Moore and WhiteDavis attempted to rob Hernandez Food and Deli Market, 4500 block of D Street. 

White-Davis and Moore were both charged by Criminal Complaint and arrested by the FBI in early February. Both defendants have also made initial appearances on these charges in federal court.

“When I announced the All Hands On Deck initiative in April 2021, I vowed that we would do all we could to stop the violent crime ravaging our city and support the Philadelphia Police Department in its work,” said U.S. Attorney Williams. “I also put criminals on notice that we were doubling down on our efforts to identify, arrest and charge them in the federal system for their crimes. The indictments of these defendants show that we have kept our word to focus on getting the worst of the worst off the street and behind bars.”

“The law-abiding taxpayers who love this great city shouldn’t have to live with the violence that moves ever closer to their doorstep,” said Special Agent in Charge Jacqueline Maguire. “The FBI will use every resource at its disposal – including critical partnerships – to help get violent criminals off the streets of 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 make our neighborhoods safer for everyone.   The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

If convicted, each defendant faces a maximum possible sentence of life imprisonment, a five-year period of supervised release, and possible fines of over $1,000,000.

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.

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

PHILADELPHIA –United States Attorney Jennifer Arbittier Williams announced that Junious Flemming, 29, of Trenton, NJ, was sentenced to two years and three months in prison, and three years of supervised release by United States District Judge Nitza I. Quiñones-Alejandro for trafficking 40 semi-automatic firearms from North Carolina into Philadelphia and New Jersey via Amtrak’s Philadelphia 30th Street Station.

In September 2021, the defendant pleaded guilty to charges including one count of criminal conspiracy and three counts of transporting firearms on a common carrier. From October 2020 through March 2021, on at least three separate occasions, Flemming paid for his co-conspirators to purchase firearms in North Carolina and then transport them by train to Philadelphia. Many of the semi-automatic firearms were subsequently trafficked into New Jersey by the defendant. The trafficking only stopped after federal agents executed a search warrant at 30th Street Station on March 9, 2021, discovered 10 semi-automatic firearms in the luggage of the defendant’s co-conspirator, and then arrested Flemming as he picked up his co-conspirator from the station.

“When I announced the All Hands On Deck initiative in April 2021, I vowed that our Office would do all we could to stop the violence ravaging our city and support the Philadelphia Police Department in its work,” said U.S. Attorney Williams. “And earlier this month, the Justice Department announced strategies to stem the flow of firearms used to commit violence and support local law enforcement partners, including cracking down on firearms trafficking and the ‘iron pipeline’ – the illegal flow of guns sold in mostly southern states, transported up the East Coast, and found at crime scenes in cities like ours. Today’s sentencing demonstrates that we are aggressively engaged in doing this work; we are keeping our word to focus on getting the most dangerous criminals and firearms off the street.”

“ATF continues to work with our local, state, and federal partners to reduce violence in our communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Facilitating illicit transactions of firearms jeopardizes the safety of our citizens. These offenses will always be taken seriously and today the community is safer thanks to the outstanding work by our partners at the U.S Attorney’s Office.” 

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 make our neighborhoods safer for everyone.   The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The case was investigated and charged by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant United States Attorney Michael R. Miller.  

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Takandryia Latrice Cage, 35, formerly of Grand Prairie, TX, was charged by Information with one count of conspiracy to commit mail fraud based on a scheme to defraud Cisco Systems Inc. (“Cisco”), as well as one count of bank fraud and three counts of wire fraud in connection with schemes to defraud lenders by submitting false Payroll Protection Program applications.

The Information alleges that between July 2016 and January 2018, the defendant conspired with Jerel Andre Williams, charged separately, to perpetrate a scheme to defraud Cisco by engaging in a sophisticated warranty fraud scheme. According to the Information, Cage and Williams obtained serial numbers to expensive computer hardware manufactured by Cisco, and then used false email addresses and identities to submit fraudulent warranty claims to Cisco, pretending to own Cisco products that were not working and under warranty. The Information alleges that Cage and Williams provided customer service representatives with descriptions of the non-existent defects that they knew could not be solved by troubleshooting and would require replacement with new products, causing Cisco to ship the replacement products on the expectation that the defective products would be returned. As charged, once the defendant and Williams obtained the Cisco hardware, Williams sold it to a computer equipment reseller without disclosing that it had been obtained by fraud, and then split the profits with the Cage. The conspirators successfully obtained 157 warranty replacement products from Cisco, each with a retail value of between $3,693 and $34,500, which they had shipped to addresses throughout the United States, including addresses in Wynnewood, Pennsylvania; Cherry Hill, New Jersey; Wilmington, Delaware; Las Vegas, Nevada; Henderson, Nevada; La Jolla, California; San Diego, California; Arlington, Texas; Dallas, Texas; and Fort Worth, Texas.

The Information further alleges that Cage independently perpetrated schemes to defraud lenders participating in the Payroll Protection Program (“PPP”), which was a provision of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) that provided with Small Business Association with authorization to forgive loans to small businesses for job retention and certain other expenses. Between June 2020 and June 2021, the defendant submitted six false PPP loan applications to lenders, on which she made numerous false statements regarding businesses she purported to own and operate, including false statements about the number of employees, the wages paid, the payroll taxes paid, the revenues and net profits earned, and the intended use of the PPP loan proceeds. As a result of these six false PPP loan applications, Cage caused lenders to send her over $101,000 in PPP funds, which she then spent on unauthorized purchases for herself.

“Warranties are designed to make consumers whole by replacing faulty products, not for exploitation by scammers looking to turn an illegal profit,” said U.S. Attorney Williams. “Warranty fraud is not a victimless crime, rather, companies which support employment for thousands of workers stand to lose significant sums, as the charges demonstrate here. The defendant also allegedly scammed the U.S. government by defrauding the Paycheck Protection Program, which is intended to help American businesses continue paying their employees in the face of the pandemic. Thieves who defraud these programs are taking advantage of honest business and taxpayers alike.”

“This alleged fraudster demonstrated a keen aptitude for working the system,” said Special Agent in Charge Jacqueline Maguire. “Through this scheme, the funds intended for employees whose jobs were impacted by the pandemic were depleted for nefarious purposes. Whether it’s government coffers, corporate accounts, or someone’s piggybank, the taking of money you aren’t entitled to is illegal. And no matter how clever you think the scheme, the FBI will uncover it and, with our partners, bring you to justice.”

“IRS-Criminal Investigation is proud to join forces with our law enforcement partners to investigate crimes like these and hold the offenders accountable,” said IRS Criminal Investigation Special Agent In Charge Yury Kruty. The charges brought against Cage is a victory for all law-abiding individuals who work hard to make an honest living.”

The defendant faces a maximum sentence of 110 years in prison, a five-year period of supervised release, a $2,000,000 fine, and a $500 special assessment. The defendant will also be required to make full restitution to Cisco and the lenders she defrauded.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Joseph Raymond Berger, 67, and Joseph Paul Berger, 32, of Bethlehem, PA, were arrested and charged by Indictment this week with multiple firearms offenses including possessing machine guns, possessing non-registered firearms, and possessing non-registered silencers. 

The Indictment alleges that the defendants illegally possessed 13 fully automatic machine guns and 12 firearms silencers. 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 12 firearms suppressors/silencers and 13 fully automatic machine guns that are listed in the Indictment. The machine guns included 11 rifles and 2 submachine guns.

According to court documents, 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.

“The defendants allegedly possessed a stockpile of unregistered fully-automatic machine guns and silencers in violation of the National Firearms Act,” said U.S. Attorney Williams. “These weapons are extremely dangerous, which is why there are laws regulating their possession. We will continue to work with our law enforcement partners to remove dangerous weapons from our District.”

“As the indictment alleges, possession of illegal firearms like these, threatens the safety of the general public, especially when in the wrong hands,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “I would like to thank our local, state and federal partners for their contributions in this investigation.”  

“This father-and-son duo possessed a small artillery of firearms in their home, including more than a dozen machine guns and silencers. This type of fire-power is incredibly dangerous if in the wrong hands,” said William S. Walker, Acting Special Agent in Charge of HSI Philadelphia. “HSI Philadelphia was pleased to work alongside our partners on this important investigation to ensure the defendants are held accountable for their crimes and not able to terrorize this community or any other.”

If convicted, the defendants face a maximum possible sentence of 30 years in prison, 3 years of supervised release, a $270,000 fine, and a $300 special assessment.

The case was investigated by Homeland Security Investigations, with assistance from Customs and Border Protection and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Donna Laansma, 57, of Fairless Hills, PA, was charged by Information with wire fraud and tax evasion in connection with a scheme to embezzle over $1.8 million from her former employer, and for failing to report these fraudulently obtained earnings to the Internal Revenue Service.

The defendant is the former Financial Controller of Astea, a global management software company based in Horsham, PA, and managed the company’s finances worldwide. The Information alleges that Laansma obtained a corporate credit card that she kept hidden from senior management. Between November 2014 and November 2020, the defendant is charged with using the secret card to spend over $1.8 million on personal expenditures such as her son’s college tuition, monthly payments on her personal bank accounts, vacations, shoes, groceries, furniture, and gift cards. She is also charged with using her position as Financial Controller to pay down the corporate card bills, and falsely recording these payments as legitimate business expenses in company books. The secret corporate credit card was discovered in 2020, after Astea was acquired by another global enterprise software company. Laansma, who was a Certified Public Accountant and familiar with the tax code, is also charged with failing to report this extra income as earnings on her tax forms.

“This defendant allegedly swindled almost two million dollars from her former employer, covering her tracks so well that her fraud was only discovered when the company was acquired,” said Acting U.S. Attorney Williams. “Instead of doing the right thing and performing her job honestly as the company’s controller, she chose the greedy path. Our Office will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by financial fraud.”

“When you dip into funds entrusted to you, that don’t belong to you, and spend those monies without authorization, it’s called theft,” said Special Agent in Charge Jacqueline Maguire. “And it doesn’t matter if you are a store clerk, a CPA, or a bank robber, thievery is illegal at every level.  In this case, the defendant allegedly stole nearly two million dollars to fund a lifestyle to which she was not entitled.  And what she has earned are felony charges that will influence her life for years to come.”

If convicted, the defendant faces a maximum possible sentence of 25 years in prison, a $500,000 fine, three years of supervised release, a special assessment and an order of restitution.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Christopher Hogg, age 63, of Gladwyne, PA, was sentenced to six years and three months in prison, and two years of supervised release, and was ordered to forfeit over $17 million and pay restitution of over $750,000 by United States District Judge Nitza I. Quinones Alejandro for his participation with two co-conspirators in a loan fraud scheme worth more than $21 million. 

In September 2021, the defendant pleaded guilty to charges of conspiracy to commit bank fraud, bank fraud, filing a false return, and tax evasion. The bank fraud charges arose from an insurance premium financing scheme that Hogg and others conducted from approximately November 2016 through January 2018. The scheme worked as follows: Hogg and co-conspirator Rennie Rodriguez submitted approximately 35 financing applications to a finance company, purportedly for premium finance loans to purchase insurance, but in reality the loans were not for that purpose. Another co-conspirator inside the finance company, Neal Dunoff, waived the loan verification procedures and approved the loans, in exchange for compensation from the defendant. Rodriguez and Dunoff have pled guilty as a result of their participation in this scheme and are awaiting sentencing. Hogg used the proceeds of this fraudulent scheme as capital for his businesses as well as to support his luxurious lifestyle, including payments for a Mercedes Benz S-Class, country club dues, vacations, as well as towards the purchase of a $1 million mansion on the Main Line. 

The tax fraud charges arose from Hogg’s failure to report over $370,000 worth of income on the tax form 1040 that he filed for tax year 2016, and his failure to report over $1.7 million in income for tax year 2017 (for which he never filed a return), resulting in a total tax loss to the government of approximately $750,000 for both years. 

“This defendant abused the banking system in an effort to enrich himself and his coconspirators, all while cheating the bank and the United States government,” said U.S. Attorney Williams. “He tried to play games to avoid fulfilling his fiduciary and tax obligations, but the dedicated investigators on this case uncovered his lies. Today’s sentence provides justice to those Mr. Hogg attempted to swindle.”

“Financial fraudsters cost this country billions in losses,” said Special Agent in Charge Jacqueline Maguire. “Today’s sentence is significant enough that it should serve as a warning to other criminals: give careful thought to whether the ill-gotten gains you are receiving are worth going to prison; because that’s exactly where you’re going.”

“This sentence is a positive message to the honest and hardworking Americans who file correct tax returns and pay their fair share,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Mr. Hogg’s decision to shirk his tax liability is a felony. Today, justice has been served and Mr. Hogg is on his way to federal prison.”

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Yutong Zhang, 63, of Berwyn, PA, a physician, pleaded guilty before United States District Court Judge Michael M. Baylson to charges stemming from his operation of what was, in essence, a ‘pill mill’ rather than a medical practice focused on pain management located in St Davids, PA.

According to court documents, the defendant pleaded guilty to an Information charging four counts of distributing oxycodone-containing medications outside of the usual course of professional practice and for no legitimate medical purpose. From approximately 2016 through 2020, Zhang sold medically unnecessary prescriptions for oxycodone and other controlled substances to about 120 so-called patients, who were actually cash-paying customers. The defendant supplied these prescriptions frequently after conducting a cursory physical examination or without any examination at all, and did not take steps, such as ordering diagnostic testing, designed to discern the root cause of the pain reportedly suffered by patients.

“The U.S. Attorney’s Office is committed to stopping drug-dealing doctors like Zhang,” said U.S. Attorney Williams. “As a physician, he was well aware of the inherently dangerous nature of the drugs he was selling. But because of his greed, he took advantage of vulnerable people struggling with addiction, piling on to the enormous opioid epidemic ravaging the communities in our District.”

“Medical practitioners are trusted to care for our health needs,” said Special Agent in Charge Jacqueline Maguire. “When they exploit their position and betray their license to line their own pockets, they not only corrupt the system, they contribute to the very epidemic we are trying so hard to fight. This defendant’s actions were akin to those of a drug dealer; the only difference is, he peddled his poison from an office instead of a street corner.”

“Dr. Zhang abused his position of trust and authority to run a pill mill and illegally prescribe the medications that are fueling the opioid crisis here in Pennsylvania,” said Pennsylvania Attorney General Josh Shapiro. “We are grateful for our partners in this case, and we will continue to work together to stop the flow of illegal drugs into our communities which take the lives of 14 Pennsylvanians every day.”

The case was investigated by the Radnor Police Department, the Pennsylvania Office of the Attorney General, and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.

PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Deslouis Edouard, 28, formerly of Philadelphia, PA, was sentenced to five years in prison, three years of supervised release, and ordered to pay approximately $515,000 restitution by United States District Court Jeffery L. Schmehl for his conviction of aggravated identity fraud and related charges.

In October 2021, the defendant pleaded guilty to four counts of aggravated identity fraud and six counts of related fraud charges in connection with an extensive identity fraud scheme during which he was essentially living his day-to-day life based on fraud during a period of at least four years. Edouard lived in a series of apartments he rented in victims’ names and obtained electric, cable, and other services in his victims’ names. He then failed to pay the bills and moved from apartment to apartment, fleecing the apartment owners and service providers along the way. The defendant controlled the identity and credit information of more than 450 individuals and used that information to obtain credit cards and purchase goods including Apple products, gift cards, numerous other electronic devices, as well as a luxury vehicle – causing over $515,000 in losses to numerous victims.

Edouard engaged in much of this fraud activity in the Lehigh Valley, living in apartment complexes in the area and shopping in numerous retail establishments with false identification, often with his picture and others’ identity information on the cards. He also possessed document-making equipment in his residence, which he could use to make false identifications with the numerous identities he had at his disposal. He frequently hijacked his victims’ accounts with wireless service providers, such as AT&T, and became an authorized user on those accounts with one of his false identities.

At the time of his arrest in Florida, the defendant was caught driving an Audi Q5 that he had purchased in Allentown for over $30,000 using the false personal identification information of one of his victims. At the time of the purchase, the defendant presented a fake driver’s license with his victim’s identity information (including his birth date, address, and driver’s license number) paired with his own photograph.

“This defendant victimized innocent bystanders in two ways: first, by stealing individuals’ identities, money and good credit; and second, by ripping off businesses and other service providers,” said U.S. Attorney Williams. “If Edouard had not been apprehended by authorities, he would undoubtedly still be committing crimes today with even more victims. Now, instead, he will face consequences of those actions which includes five years in federal prison.”

"Identity theft strips its victims not only of their hard-earned money, but also of their security and privacy," said Special Agent in Charge Jacqueline Maguire. "Crooks who think they can conceal their crimes in cyberspace - or who think it's okay to fund their lifestyle with other peoples' hard-earned money - need to know two things: the FBI knows where you hide and we will bring you to justice"

The case was investigated by the Federal Bureau of Investigation, the United States Postal Service, the Bethlehem Police Department, and the Northampton County District Attorney’s Office, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Emiliano Rodriguez, 44, a citizen of the Dominican Republic residing in Philadelphia, PA, was arrested and charged by Indictment with one count of trafficking in counterfeit goods, and two counts of causing the delivery of hazardous materials by air carrier in connection with a scheme to utilize counterfeit goods in used vehicles, which he then resold to unsuspecting customers.

The Indictment alleges that from at least January 2017 through October 2019, the defendant, who is a trained auto mechanic, fraudulently imported counterfeit airbags from China and installed these unproven parts in salvaged autos which were then reintroduced to the consumer market. China has been identified as the largest exporter of counterfeit commodities, including counterfeit airbags. Persons involved in the trade of counterfeit airbags engage in this practice in an effort to increase profits from their sales by decreasing the cost of the parts used to replace the original items. Unsuspecting motorists purchase used or salvaged vehicles unaware of the history of the part(s) used in the vehicle reconstruction. Once purchased, the vehicles are driven on public roads and expose the driver, passengers and general public to potential hazards associated with the use of counterfeit parts. In this case, federal agents recovered more than 450 counterfeit airbags and parts from the Rodriguez’s residence and business.

“The hazards posed to unsuspecting motorists and the general public by the alleged actions of the defendant in this case are enormous, and could have ramifications for years to come,” said U.S. Attorney Williams. “Safety equipment as important as vehicle airbags are subject to strict quality control standards to keep everyone safe, therefore when corners are cut by utilizing counterfeit goods, the consequences can be disastrous. Our Office appreciates the dedicated efforts of our law enforcement partners to investigate and bring charges in this case.”

“Counterfeit airbags pose real dangers to unsuspecting members of the public. The risks of counterfeit and substandard auto parts are known by those who work in the automotive industry,” said William S. Walker, Acting Special Agent in Charge of HSI Philadelphia. “Yet, Rodriquez, an auto mechanic, allegedly outfitted salvaged automobiles with counterfeit airbags imported from China and reintroduced those vehicles back into the consumer market, thereby putting lives at risk in the interest of making a profit. This investigation is yet another reminder of the risks posed by counterfeit goods. As result of this case, Rodriquez will now face justice for his alleged role in this scheme.”

“Illegally transporting potentially hazardous goods puts our transportation system at risk. When those goods are also counterfeit, the risk can be even greater,” said Joseph Harris, Special Agent-in-Charge, Northeast Region, U.S. Department of Transportation Office of Inspector General. “Together with our law enforcement and prosecutorial colleagues, we remain committed to pursuing those who would compromise public safety for personal gain.”

If convicted, the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, fines of $2,050,000, and a $200 special assessment.

The case was investigated by Homeland Security Investigations and the Department of Transportation, and is being prosecuted by Assistant United States Attorney M. Beth Leahy.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced that the owner and the former manager of rental properties in Quakertown, PA, have agreed to resolve a federal lawsuit brought by the United States in the Eastern District of Pennsylvania. The United States alleged that the defendants violated the Fair Housing Act when they refused to let a tenant’s girlfriend move in with him because she was pregnant with his son, and because the tenant was in recovery from an addiction to alcohol.

In 1988, Congress expanded the Fair Housing Act to prohibit discrimination based on familial status and disability. The Act’s ban on familial status discrimination protects individuals under 18 years old, as well as any person who is pregnant. The Fair Housing Act’s disability protections cover people in recovery from alcohol or drug addiction, but they do not apply to current, illegal use of or addiction to a controlled substance. The tenant in the United States’ lawsuit successfully completed an alcohol treatment program and was in recovery from his addiction for approximately nine months before requesting that his girlfriend move into the property.

“The expectation and arrival of a new baby is supposed to prompt celebration, not the threat of eviction,” said U.S. Attorney Williams. “The same should be true of individuals putting in the hard work to manage their addictions – they deserve support, not hurdles, to access safe, affordable housing. Expanding families and those working to remain on stable footing should be able to rely on the continuity of their home.”

“For more than three decades, federal law has prohibited housing discrimination against individuals because they are pregnant or because they are in recovery from alcohol addiction,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The resolution of this lawsuit advances the Justice Department’s commitment to ensuring that individuals expecting children, as well as people recovering from an addiction, have equal access to housing opportunities free from illegal discrimination.”

The consent order resolving the lawsuit, which was approved today by the U.S. District Court for the Eastern District of Pennsylvania, arose as a result of a complaint filed with the Department of Housing and Urban Development (HUD) by the tenant on behalf of himself and his minor daughter. After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.

“The Fair Housing Act seeks to ensure that individuals, who are recovering from addiction, and their families can access housing free from housing discrimination,” said Principal Deputy Assistant Secretary Demetria L. McCain for Fair Housing and Equal Opportunity at HUD. “HUD applauds the Department of Justice for its partnership with HUD and its aid in resolution of this matter.”

Under the consent order, the defendants will pay a total of $75,000 to the tenant and his child. The consent order also requires defendants to take actions directed towards preventing future unlawful discrimination, including complying with the Fair Housing Act, undergoing training and implementing nondiscrimination policies on the Fair Housing Act in connection with the rental and management of residential properties, and submitting to compliance and reporting requirements.

Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Additional information about the Fair Housing Act is available at www.HUD.gov.

The case is captioned United States v. Bacchus, et. al, No. 2:21-cv-3680 (E.D. Pa.). The United States is represented by Judith Amorosa, Assistant U.S. Attorney in the Eastern District of Pennsylvania, along with the Department of Justice’s Civil Rights Division, Housing and Civil Enforcement Section.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Leandro Rodriguez, 45, of Allentown, PA, was sentenced to one year and eight months in prison, three years of supervised release, and ordered to forfeit approximately $669,000 by United States District Court Judge Edward G. Smith for his participation in a conspiracy to smuggle mislabeled drugs into the United States from China, and sell them as dietary supplements.

In October 2021, the defendant pleaded guilty to conspiracy to smuggle and resell misbranded drugs, and delivering those drugs in interstate commerce, in order to defraud the United States by impeding and impairing the lawful functions of the Food and Drug Administration (FDA). The charges arose from Rodriguez’s participation in a conspiracy from early 2011 until March 2017 to import from China and resell to consumers, substances falsely labelled as “all natural” dietary supplements, but which the defendant knew contained the undeclared ingredient Sibutramine, a dangerous controlled substance that could not legally be sold in the United States.

“The United States sets standards for controlled substances in order to keep American consumers and patients safe,” said U.S. Attorney Williams. “The defendant knowingly skirted our country’s importation laws, and sold dangerous drugs under the guise of benign supplements. This scheme put many people’s health and safety at risk.”

“Misbranded drugs that are disguised as dietary supplements and contain potentially harmful hidden ingredients place American consumers at risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who endanger the U.S. public health by distributing fraudulent and potentially dangerous products.” 

“For nearly six years, Rodriguez smuggled into the United States a dangerous controlled substance from China, just to mislabel it as a dietary supplement and peddle it to consumers, seemingly with no regard for the health and safety of those who consumed the product,” said William S. Walker, Acting Special Agent in Charge of HSI Philadelphia.  “HSI Philadelphia was pleased to partner with the Food and Drug Administration (FDA) and U.S. Postal Inspection Service on this important investigation.  As a result of strong federal law enforcement collaboration, Rodriguez will be held accountable for his criminal acts.”

The case was investigated by the Food and Drug Administration – Office of Criminal Investigations, the United States Postal Inspection Service, and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that the United States filed a civil lawsuit against Philadelphia-based pharmacy Spivack, Inc., which previously operated under the name Verree Pharmacy, and its former owner, pharmacist Mitchell Spivack, alleging that they engaged in a years-long practice of illegally dispensing opioids and other controlled substances, and systematic health care fraud. The lawsuit alleges that Verree and Spivack illegally dispensed unparalleled quantities of opioids and other controlled substances into the Philadelphia community. The complaint seeks civil penalties and civil damages, which could total in the millions of dollars, as well as injunctive relief.

The culmination of a multi-year federal-state investigation, the complaint alleges that Verree Pharmacy, its pharmacist and then-owner Mitchell Spivack and other employees of Verree, had a responsibility to dispense opioids and other controlled substances only when appropriate.  Instead, the United States alleges that the pharmacy and Spivack dispensed the drugs, even when faced with numerous red flags suggestive of diversion—such as opioids in extreme doses, dangerous combinations of opioids and other “cocktail” drugs preferred by those struggling with addiction, excessive cash payments for the drugs, blatantly forged prescriptions, and other signs that the pills were being diverted for illegal purposes. The complaint alleges that Verree—which was the top retail pharmacy purchasing oxycodone in Pennsylvania—has been a nationwide and regional outlier in its deviant purchasing, dispensing, and billing of controlled substances. To avoid scrutiny from the drug distributors that sold them the pills, Verree through Spivack, allegedly made false statements to maintain the façade of legitimacy and keep the pharmacy stocked with these pills critical to its profits. Behind that façade, the complaint alleges that Spivack drew millions of dollars from the pharmacy while the public suffered the consequences, including one patient who overdosed and died next to Verree Pharmacy bottles dispensed by Spivack.

The United States’ complaint alleges that Verree and Spivack were also engaging in an expansive health care fraud scheme involving fraudulent billings for drugs not actually dispensed.  The alleged cornerstone of the scheme was a code used by the pharmacy employees in their internal computer system: “BBDF” or “Bill But Don’t Fill.” Verree, Spivack and their co-conspirators allegedly used BBDF as a means to cover their losses on other drugs and further line their pockets with illicit profits by falsely claiming to insurers, including Medicare, that they had dispensed a drug to a patient, when in fact they had not. According to the complaint, this sophisticated fraud—which one of the employees admitted to investigators—resulted in significant losses to Medicare and other federal programs.

The lawsuit seeks to impose civil penalties and damages on Verree and Spivack under the Controlled Substances and False Claims Acts. If Verree and Spivack are found liable, they could face civil penalties up to $68,426 for each unlawful prescription dispensed, civil penalties up to $23,607 for each false claim they submitted to federal health care programs, and treble damages for the alleged health care fraud against federal programs. The court may also award injunctive relief to prevent Verree and Spivack from committing additional controlled substance violations.

“Pharmacies and pharmacists engage in the deepest violation of the community’s trust when they exploit their access to opioids and other controlled substances and illegally dispense the drugs for their own financial gain,” said U.S. Attorney Williams. “It is even more disturbing when pharmacies take advantage of their position of trust by fraudulently billing Medicare and other federal health care programs for bogus prescription drugs. My Office will use every resource it has to pursue and hold these individuals accountable. I am grateful for the support and investigative teamwork that the DEA, HHS-OIG, and the Pennsylvania Attorney General’s Office provided in this important matter.”

“In a city that has been so adversely and disproportionately affected by the opioid epidemic, Verree Pharmacy was the top retail pharmacy purchasing oxycodone in the entire state of Pennsylvania,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Spivack and the other employees at Verree routinely demonstrated total disregard for their professional and ethical obligations and improperly dispensed powerful painkillers when numerous warning signs were present.”

“The Medicare and Medicaid Programs provide vital prescription drug services to their beneficiaries, said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office for the Department of Health and Human Services, Office of Inspector General. “Pharmacies are required to only bill for prescriptions and products they actually provide to their patients. HHS-OIG will continue to work with the U.S.  Attorney’s Office, the Pennsylvania Attorney General’s Office, and the DEA to investigate allegations of fraudulent insurance billings.”

“We know that nearly 80% of those who use heroin first started with misusing a prescription opioid,” said Attorney General Josh Shapiro. “Pharmacies and medical professionals have a responsibility under the law to dispense these drugs only when appropriate. These allegations of illegal dispensing and fraud are disturbing -- they hurt families and communities all over the Commonwealth and steal needed resources from taxpayers. Our office is committed to continuing to work with our federal partners, and I am thankful for the women and men who collaborated on this case.”

If the public has any information regarding Verree Pharmacy or any other health care fraud allegation, individuals should contact the HHS-OIG hotline at 800-HHS-TIPS.

The case is being investigated by the Philadelphia Field Division of the Drug Enforcement Administration, HHS-OIG, and the Pennsylvania Office of the Attorney General, with additional assistance from the Office of Personnel Management Office of Inspector General, the Defense Health Agency, and the Defense Criminal Investigative Service. The civil investigation and litigation are being handled by Assistant United States Attorney Anthony D. Scicchitano and auditors Dawn Wiggins and George Niedzwicki.

The complaint contains allegations only that the United States must prove if the case proceeds to trial.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Tayanna Bowman, 25, of Philadelphia, PA, was sentenced to  nine years and two months in prison, twenty years of supervised release, and was ordered to pay a $3,000 assessment by United States District Court Judge Michael M. Baylson for distributing child pornography to an undercover federal agent on an online file sharing platform.

In March 2021, the defendant pleaded guilty to distribution and attempted distribution of child pornography. In January 2020, while employed as a behavioral health technician at ChanceLight Autism Services [a regional childcare service provider] specializing in behavioral health support for children with autism, the defendant distributed videos and images of child pornography on the Internet using Kik Messenger. Prior to that job, Bowman worked at Cynthia’s Little Treasures Daycare in West Philadelphia as a teaching assistant.

“This defendant chose a line of work providing care to vulnerable, autistic children, and at the same time, she participated in the sexual abuse and exploitation of children by engaging with an online community interested in such abhorrent acts,” said U.S. Attorney Williams. “It is our duty to protect the most vulnerable members of society and we will continue to uphold that duty by bringing to justice anybody who preys upon minor children.”

“Bowman betrayed the trust her students and their parents placed in her. Although today’s sentencing cannot repair the damage Bowman caused, it sends the message that the FBI remains committed to hunting down child predators and delivering justice to their victims,” said FBI Special Agent in Charge Jacqueline Maguire.

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Kelly Harrell.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Dwayne Butler, 27, of Chester, PA, was sentenced to 12 years in prison, five years of supervised release, and ordered to pay a $4,000 special assessment by United States District Court Chief Judge Juan R. Sanchez for his role as one the most prolific members of the “3rd Bone” drug trafficking group, a violent street gang that sold large amounts of crack, cocaine, and heroin in downtown Chester.

In October 2019, Butler and nearly two dozen others were arrested pursuant to parallel Indictments of rival drug gangs operating in and around Chester: “3rd Bone,” which held power in the area of 3rd and Lamokin Streets; and their rivals, “William Penn,” which controlled the territory surrounding the Chester Housing Authority’s William Penn Homes.

Butler and 12 of his “3rd Bone” co-conspirators were charged in a 70-count Indictment alleging conspiracy to distribute crack, cocaine, fentanyl, and heroin (one count); distribution and possession with intent to distribute controlled substances (57 counts); unlawful use of a communications facility in furtherance of a drug felony (five counts); possession of a firearm in furtherance of a drug trafficking crime (three counts); felon in possession of a firearm (two counts); and aiding and abetting. In September 2021, Butler pleaded guilty to more than 35 drug-related counts, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon.

Earlier this year, another “3rd Bone” defendant, Jamel Covington, 31, also of Chester, was sentenced to 10 years in prison, four years of supervised release, and ordered to pay a $500 special assessment. Covington pleaded guilty to drug trafficking and firearms offenses, including maintaining a small arsenal of semiautomatic weapons and bulk amounts of crack and fentanyl in a storage facility rented in his name.

“The defendant and his co-conspirators in 3rd Bone, together with the defendants in the William Penn gang, terrorized the Chester community for years with their drug dealing and associated violence,” said U.S. Attorney Williams. “Butler dealt dangerous narcotics and illegally possessed weapons to further his drug-dealing business, and for that he will now spend more than a decade in prison. Thanks to the efforts of investigators at the FBI and DEA, the 3rd Bone and William Penn drug operations have been permanently shut down, making the streets safer and improving the quality of life for the Chester community.”

“For years, Butler and his fellow gang members terrorized the hard-working residents of Chester – and he now will pay the price for his crimes.  The FBI and its law enforcement partners will never stop working to make our communities safer and free from violent crime,” said FBI Special Agent in Charge Jacqueline Maguire

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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The case was investigated jointly by the Federal Bureau of Investigations (FBI) and the Drug Enforcement Administration (DEA), working closely the Chester City Police Department, and is being prosecuted by Assistant United States Attorneys Meaghan A. Flannery and Matthew T. Newcomer.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Luis Gomez, 33, of Reading, PA, was sentenced to 19 years in prison, five years of supervised release, and was ordered to pay a $2,000 fine by United States District Court Judge Edward G. Smith for possessing a large quantity of crystal methamphetamine and a loaded pistol at his home in 2019.

At the conclusion of a long-term investigation led by the Federal Bureau of Investigation and the Pennsylvania State Police into methamphetamine, heroin, and cocaine trafficking in the Reading area, in September 2019, Gomez was arrested during the execution of a federal search warrant at his Reading home. Inside Gomez’s bedroom, FBI agents recovered approximately one pound of crystal methamphetamine along with an extended firearm magazine containing 26 rounds of live 9mm ammunition and a bulletproof vest. Approximately two additional pounds of crystal methamphetamine were recovered in separate bedrooms of the house, along with various drug paraphernalia and a loaded 9mm pistol in the living room.

Following forensic analysis at the FBI laboratory, Gomez’s DNA profile was identified on the pistol. Because of a prior felony conviction for drug dealing, Gomez was prohibited from possessing firearms under federal law. Five other defendants were also arrested in connection with this investigation, and over 65 pounds of methamphetamine and three additional firearms were seized in the same month.

“This defendant personally threatened the safety of his neighbors in Reading, and all communities in our District, through his dangerous and illegal actions,” said U.S. Attorney Williams. “Gomez stashed drugs in his home and illegally possessed a weapon to further his drug-dealing business. Thanks to the steady, determined efforts of investigators at the FBI and Pennsylvania State Police, the defendant and his co-conspirators’ operation was permanently shut down.”

The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Timothy Spillane, 39, of Chester Springs, PA, pleaded guilty before United States District Court Judge Joel Slomsky to accessing a protected computer network without authorization, arising from his intrusions into the digital networks of two suburban Philadelphia-area colleges.

According to court documents, between November 2017 and January 2018, the defendant hacked into approximately 25 school network email accounts at two local colleges belonging to students and staff. After gaining access to these accounts, Spillane obtained the personal identifying information of the account holders and others, including W-2 tax forms and student financial information. The defendant then attempted to submit fraudulent tax returns using the stolen information, but he was unsuccessful because he could not accurately determine the victims’ adjusted gross income from the prior tax year. Spillane further admitted that he set up email, pre-paid phone and bank accounts in these individuals’ names in order to collect the fraudulently obtained tax return money.

“A significant number of Americans handle nearly all of their business online, which means that the information they store digitally can be vulnerable,” said U.S. Attorney Williams. “Would-be thieves like this defendant demonstrate how quickly and easily personal information can be compromised. However, this case also demonstrates how quickly our Office and our law enforcement partners will respond; it was only a matter of weeks between the FBI receiving a tip and the day they knocked on the defendant’s door to execute a search warrant, stopping him in his tracks.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Sarah M. Wolfe.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Brian James Kunsman, 44, of PhiladelphiaPA, was charged by Indictment with one count of possession of an unregistered destructive device and one count of being a felon in possession of an explosive.

The Indictment alleges that in October 2021, the defendant possessed a ‘pipe bomb’ inside the emergency room at St. Luke’s University Hospital in the Fountain Hill section of the City of Bethlehem. An attending nurse discovered that Kunsman had brought the homemade destructive device in his backpack while he was a patient at the emergency room. Following the discovery, the emergency department of the hospital was evacuated for a two-hour period and all incoming trauma patients had to be diverted to other local hospitals.

The defendant is scheduled to make an initial appearance in federal court on these charges on Monday, January 24, 2022, before United States Magistrate Pamela Carlos in Allentown.

“Homemade explosive devices pose a grave threat to the general public when in the wrong hands, and bringing one into the emergency department of a hospital – an enclosed space where people are receiving acute medical care – is especially dangerous,” said U.S. Attorney Williams. “We are grateful to our law enforcement partners for working quickly and efficiently to mitigate the threat posed by this defendant’s alleged actions.”

“ATF is committed to working with our law enforcement partners to keep our communities safe from violence,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “As alleged, this defendant possessed a device which posed a substantial threat to hundreds of citizens. I would like to thank the Fountain Hill Police Department, the Allentown Bomb Squad, and the U.S. Attorney’s Office for their assistance in this investigation.” 

If convicted, the defendant faces a maximum possible sentence of 20 years in prison, up to 3-years of supervised release, and a $260,000 fine.

The case was investigated by the Allentown Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Borough of Fountain Hill Police Department, the Allentown Bomb Squad, and the Lehigh County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.

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

As Part of All Hands on Deck Initiative, U.S. Attorney’s Office Secures Indictments Against Delaware Man Accused in FDR Park Carjacking and Against Philadelphia Felon for Attempted Armed Robbery and Shooting of Convenience Store Owner, and Obtains Lengthy Prison Sentence for Drug and Firearms Trafficker.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced a series of updates on violent crime cases being prosecuted by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, as the Office continues to emphasize its All Hands On Deck initiative which brings together federal law enforcement and agency partners to tackle the serious violent crime problem in the City of Philadelphia.

“When I announced the All Hands On Deck initiative in April 2021, I vowed that we would do all we could to stop the violence ravaging our city and support the Philadelphia Police Department in its work,” said U.S. Attorney Williams. “I also put violent criminals on notice that we were doubling down on our efforts to identify, arrest, and charge them for their crimes. The Indictments and sentencing result announced today show that we have kept our word to focus on getting the most violent offenders off the street and behind bars for a long time, so they cannot hurt anyone else in the community. And with more than 30 homicides so far in just the first 20 days of the year, our diligence and commitment to this work comes at a critically important time.”

On January 18, 2022, Eric Long, 52, of Philadelphia, PA, was arrested and charged by Indictment with one count of attempted Hobbs Act robbery, one count of possession of a firearm by a felon, and one count of carrying and using a firearm during a crime of violence. The Indictment alleges that in December 2020, the defendant entered the Express One convenience store on the 2000 block of East Allegheny Avenue in Philadelphia, demanded money from the store manager while brandishing a firearm, and then shot the store owner with that firearm multiple times. Long is also charged with illegally possessing the firearm as a previously convicted felon. If convicted, defendant Long faces a maximum possible sentence of life imprisonment, five years of supervised release, a $750,000 fine, $300 in special assessments, restitution, and forfeiture.

On January 19, 2022, Dwayne Gary, 36, of Philadelphia, PA, was sentenced to nine years in prison and five years of supervised release by United States District Judge Cynthia M. Rufe for his participation in a conspiracy to distribute, and distribution of, more than 200 grams of heroin in 2017. While engaging in this drug distribution activity, Gary also organized the sale of a firearm while in custody on an unrelated criminal charge. The defendant pleaded guilty to this four-count Indictment in September 2021.

Finally, on January 20, 2022, Josiah Brown, 19, of Wilmington, DE, was charged by Indictment with one count of carjacking, and one count of carrying and using a firearm during a crime of violence in connection with a December 2021 armed carjacking which occurred at Franklin D. Roosevelt Park in South Philadelphia. According to the Criminal Complaint filed on December 23, 2021, while the victim and an associate were speaking near the victim’s vehicle, an SUV pulled up alongside them and blocked them in. One suspect got out of the SUV, pointed a gun at the victim and demanded the keys to the vehicle, and then fled from the area in the stolen vehicle. Investigators tracked and located the vehicle later that day in Wilmington, and then in New Castle, DE. When multiple individuals approached the parked vehicle in the parking lot of the Christiana Fashion Center in New Castle, law enforcement detained five people, including the defendant who was in possession of the keys to the victim’s vehicle.

“The FBI is fully committed to protecting the safety of our citizens as we combat the violent crime problem here in Philadelphia together with our law enforcement partners,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. “And while our work is far from done, the results being announced today are significant steps in getting armed criminals off of Philly’s streets and making our streets safer for all of the innocent citizens who deserve to live without fear.”

“ATF continues to work with our local, state, and federal partners to reduce violence in our communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Facilitating illicit transactions of firearms and narcotics jeopardizes the safety of our citizens. These offenses will always be taken seriously and today the community is safer thanks to the outstanding work by our partners at the U.S Attorney’s Office.” 

The United States v. Eric Long case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Kathryn Deal.

The United States v. Dwayne Gary case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Francis A. Weber.

The United States v. Josiah Brown case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, with assistance from the Delaware State Police, Wilmington Police Department, and the New Castle County Police Department, and is being prosecuted by Assistant United States Attorney Justin Oshana.

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

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Eric Amaefuna, 65, of King of Prussia, PA, pleaded guilty to engaging in a multi-year scheme to assist clients with filing false income tax returns in order to fraudulently increase the amount of the refund they received.

In April 2021, the defendant was charged by Indictment with 29 counts of aiding and assisting in the preparation of false income tax returns. At the time of the charged conduct, Amaefuna was the owner of American Financial Stewardship (AFS), a tax preparation business on Bustleton Avenue in Northeast Philadelphia. According to the Indictment, Amaefuna prepared false and fraudulent IRS Personal Income Tax 1040 Forms for client taxpayers for at least tax years 2014 through 2016. The defendant added attachments to the 1040 Forms that were also false, in that they claimed false or inflated employee business expenses, inflated state and local taxes, false or inflated miscellaneous deductions, and losses that were entirely fictitious or falsely inflated. These falsities resulted in the filing of personal income tax returns claiming refunds due to the client taxpayers which they were not entitled to receive.

“Our system of taxation relies upon taxpayers contributing their fair share to the federal government, and preparers are supposed to help them do that by accurately reporting income and expenses,” said U.S. Attorney Williams.  “The defendant manipulated his clients’ tax filings to suit their own needs at the expense of honest taxpayers. This case is an important reminder to take seriously the legal obligation to file complete and accurate federal income tax returns as we start the 2022 tax season.”

“As we approach the start of the tax filing season, it is important that taxpayers are very diligent when it comes to filing an accurate tax return,” said IRS Criminal Investigation Special Agent In Charge Yury Kruty. “For those who choose to use a tax return preparer, filing an accurate tax return starts with staying clear of unscrupulous tax return preparers. Remember, YOU as the taxpayer, are ultimately responsible for filing a timely, complete, and accurate tax return.”

The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant United States Attorney Terri A. Marinari.