Eastern District of Pennsylvania

PHILADELPHIA – United States Attorney William M. McSwain announced that Kelly Wayne Smith, 59, of Allentown, Pennsylvania, was arrested and charged by Criminal Complaint with knowingly distributing, and attempting to distribute, child pornography, as well as illegal possession of a firearm by a prohibited person. At Smith’s initial appearance, United States Magistrate Judge Henry S. Perkin ordered Smith detained until trial.

In October 2019, a social networking platform reported to the National Center for Missing and Exploited Children (“NCMEC”) Cyber Tipline that several images depicting child pornography had been uploaded to an account registered to Smith. In May 2020, a search warrant was executed at Smith’s residence and authorities found several photos depicting child pornography, including one that was reported to the NCMEC. Authorities also seized a handgun during the search.

If convicted, the defendant faces a maximum possible sentence of 50 years in prison, with a mandatory minimum term of 15 years.

“Adults should be protecting children from harm, not exploiting them for their own twisted gratification,” said U.S. Attorney McSwain. “Each time somebody distributes images that depict a child being exploited, that child is re-victimized all over again. My Office is committed to rooting out and punishing the online exploitation of children and we will continue to work tirelessly with our law enforcement partners to do just that.”

“Distribution of child pornography is a heinous act that perpetuates the sexual exploitation of children,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “The FBI stands ready to step in and work with our law enforcement partners to protect our children from such victimization.”

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

The case was investigated by the Federal Bureau of Investigation and the Allentown Police Department, and it is being prosecuted by Assistant United States Attorney Sherri Stephan.

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

PHILADELPHIA – United States Attorney William M. McSwain announced that William K. Washington, 65, of Philadelphia, Pennsylvania, was arrested and charged by Criminal Complaint with assaulting and resisting two federal officers, a Class D felony. The Complaint alleges that Washington assaulted two Department of Homeland Security, Federal Protective Service (FPS) security officers at a Social Security Administration (SSA) office in Philadelphia on May 8, 2020. The defendant appeared today via video teleconference before United States Magistrate Judge Linda K. Caracappa for his initial appearance and arraignment.

The Complaint alleges that Washington forced his way inside the SSA office at 701 East Chelten Avenue, after he was told by a FPS security officer that the office was closed to the public because of the coronavirus pandemic. Washington refused to leave even after he was ordered to do so; he then resisted as the officers physically removed him from the premises. The Complaint further alleges that Washington punched one of the officers multiple times and injured both officers during the encounter.

“The defendant allegedly barged into a closed federal office, refused to listen to repeated instructions to leave, and then escalated the encounter to the point that he injured two federal security officers who were simply doing their job,” said U.S. Attorney McSwain. “Such behavior is intolerable and my Office will always take swift action to hold accountable anybody who assaults officers who protect and serve the public on federal property.”

If convicted, the defendant faces a maximum possible sentence of eight years in prison.

The case was investigated by the Federal Protective Service and is being prosecuted by Assistant United States Attorney Albert S. Glenn.

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

PHILADELPHIA – In honor of National Police Week, United States Attorney William M. McSwain recognizes and celebrates the service and sacrifice of federal, state, local, and tribal law enforcement. The week will be observed Sunday, May 10 through Saturday, May 16, 2020.

“There is no more noble profession than serving as a police officer,” said U.S. Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”

“Police officers work tirelessly to keep our communities safe. This week – and every week – they deserve our support, recognition, and gratitude for the sacrifices they make to protect us,” said U.S. Attorney McSwain. “In a time filled with uncertainty, police are more important than ever. And of course they are stepping up and providing us with outstanding service when we need it most.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year the coronavirus pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they have sworn to serve.

Based on FBI data, 89 law enforcement officers died nationwide in the line of duty in 2019. Thus far in 2020, 20 law enforcement officers nationwide have been reported feloniously killed. 

In the Eastern District of Pennsylvania, no officers were killed in 2019. All of America watched, however, as Maurice Hill shot six Philadelphia Police Officers during a seven-and-a-half-hour standoff in August 2019 in North Philadelphia. Miraculously, all six officers survived. Hill is currently in custody, pending trial. And in March 2020, Philadelphia Police Officer James O'Connor, 46, was murdered while serving a warrant in the Frankford section of Philadelphia. A 23-year veteran of the Philadelphia Police Department, Corporal O’Connor was posthumously promoted to Sergeant. Hassan Elliott and others are currently in custody and charged with the murder.

Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.

 The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of the coronavirus, the vigil will be livestreamed to the public at 8:00 pm (EDT). The online event can be viewed at https://www.youtube.com/user/TheNLEOMF.

To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.

PHILADELPHIA – United States Attorney William M. McSwain announced today that Dr. Eric Heffelfinger, a pulmonologist who previously practiced in Ridley Park, Pennsylvania, will pay $50,000 and permanently lose his ability to prescribe opioids to resolve allegations that he improperly prescribed oxycodone and split the pills with a patient for his own personal use.

The settlement resolves allegations that between February 2014 and August 2016, Heffelfinger, who had a registration with the Drug Enforcement Administration to prescribe controlled substances, prescribed oxycodone to one patient on several occasions at least partially for the purpose of using some of the pills himself. The United States contends that such prescriptions were not written for a legitimate medical purpose and in the usual course of professional practice and were therefore illegal.

Heffelfinger has agreed to pay $50,000 to resolve the allegations. The settlement also permanently prevents Heffelfinger, as a physician, from ever purchasing, prescribing, distributing, or dispensing opioid controlled substances in the future and imposes a number of other accountability measures through an administrative agreement with the Drug Enforcement Administration.

“An important component of our strategy to combat the opioid epidemic is always to hold healthcare providers accountable if they abuse their prescribing privileges,” said U.S. Attorney McSwain. “We will use every tool at our disposal, including civil penalties and permanent revocation of opioid prescribing, to hold providers accountable and prevent abuse.”

“Healthcare providers who have the privilege to prescribe controlled substances must understand that misusing that privilege will have serious consequences,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Field Division. “We will continue to work together with the U.S. Attorney’s Office to identify all healthcare providers who violate the law and hold them responsible.”

This investigation was conducted with the Drug Enforcement Administration’s Philadelphia Field Division and the Federal Bureau of Investigation. For the United States Attorney’s Office, Assistant United States Attorney Anthony D. Scicchitano 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 William M. McSwain announced that Luis Perez-Rodriguez, 31, of Allentown, PA, has been arrested and charged with one count of manufacturing child pornography after a search warrant was executed at his home. United States Magistrate Judge Henry S. Perkin presided over a detention hearing in Allentown via video teleconference today, and ordered that the defendant remain in custody pending trial.

The charge stems from the defendant’s alleged sexual abuse of a minor child, filming that abuse, and sending a video of the abuse to other users on the messenger app Kik. The defendant allegedly used the username “LuNTiph” to distribute the video to a Kik group that, unfortunately for the defendant, included an undercover FBI agent.

“My Office is steadfast in its commitment to keeping our children safe from harm,” said U.S. Attorney McSwain. “Those who break the law will be swiftly prosecuted – pandemic or not – and held responsible for their actions, especially when targeting the most vulnerable members of our society. And I want to thank the FBI for its excellent, proactive work on this investigation.”

“There are few situations more urgent than when a child is physically at risk,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Those who sexually exploit children do serious lasting harm, and the manufacture and trade of child pornography cruelly perpetuates this damage. The FBI is committed to finding such predators, locking them up, and ensuring those they've victimized are safe and well-supported.”

If convicted, Perez-Rodriguez faces a statutory maximum sentence of 30 years’ incarceration, a lifetime of supervised release, a $250,000 fine, and a $5,100 special assessment. He also faces a 15-year mandatory minimum sentence of imprisonment.

The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Brittany Jones.

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

PHILADELPHIA – United States Attorney William M. McSwain announced today that Mark Allen Hillis, age 57, of Southgate, Michigan, has been arrested and charged with one count of manufacture of child pornography, attempted manufacture of child pornography, and willfully causing the manufacture of child pornography, stemming from his text communications with a 13 year-old girl on Christmas Day 2019.

As alleged in the Criminal Complaint, Hillis (also known as “Daddy” and “Denverpolice#666”), met the minor through social media and then directed her to produce and send him graphic images of child pornography via text messages. Thereafter, Hillis allegedly traveled to Pennsylvania and sexually assaulted the minor in a hotel room, after convincing her to meet up with him at a pizzeria in the middle of the night. In addition to the federal child pornography charges, Hillis faces state charges related to the alleged sexual assault in Montgomery County.

“As alleged in the Criminal Complaint, the defendant’s conduct is abhorrent: manipulating a child into sending him graphic images and then luring her from home in the middle of the night in order to commit a sexual assault to satisfy his twisted desires,” said U.S. Attorney McSwain. “Protecting children and seeking justice for those who are victims of sexual exploitation is one of my Office’s highest priorities and we will always aggressively investigate and prosecute cases such as this.”

“This arrest demonstrates the great lengths that dangerous child predators will go through to victimize our most vulnerable,” said Brian A. Michael, Special Agent in Charge for HSI Philadelphia. “Homeland Security Investigations and our law enforcement partners will always prioritize bringing dangerous child predators to justice.”

If convicted, Hillis faces a statutory maximum sentence of 30 years’ imprisonment, with a mandatory minimum term of 15 years’ imprisonment, a mandatory minimum term of 5 years’ supervised release, and a fine up to $250,000.

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

The case investigation is being conducted by Homeland Security Investigations, a component of the Department of Homeland Security, and the Limerick Township Police Department, in conjunction with the Montgomery County Detectives Bureau. It is being prosecuted by Assistant United States Attorney Kathryn Deal.

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

PHILADELPHIA – United States Attorney William M. McSwain announced today that his Office is reaffirming its commitment under the Fair Housing Act to combat sexual harassment in housing. The Office is planning to hold virtual roundtables with local community organizations and encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to share the information or file a complaint.

The U.S. Department of Justice enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. The Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing.

Launched in 2017, the initiative has filed lawsuits across the country alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department may be able to help.

The virtual roundtables taking place in the Eastern District of Pennsylvania will bring together community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters, and transitional housing providers to share information about, and best practices for, detecting and reporting sexual harassment in housing. These organizations can identify the misconduct and encourage victims to report sexual harassment to the Department’s Civil Rights Division and the U.S. Attorney’s Office. Local police departments or legal aid offices may also be able to help victims if the behavior is a crime or if there is an imminent eviction.

Recently, the coronavirus public health crisis has left many citizens in the Eastern District of Pennsylvania out of work, furloughed, or otherwise in dire financial straits. This situation has led many tenants to seek postponements of rent or other accommodations at this time. Although many landlords and housing providers will be understanding during this difficult period, others may seek to exploit the financially vulnerable through demands for sexual favors and other acts of unwelcome sexual misconduct. The Department has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Through these roundtables, the U.S. Attorney’s Office seeks to prevent such illegal conduct from occurring and to detect and punish it if it does occur.

“Sexual harassment in housing is illegal and will not be tolerated at any time, but this behavior is especially despicable amidst a global pandemic when so many workers are sidelined and vulnerable,” stated U.S. Attorney McSwain. “Our Office is dedicated to uncovering such violations where they exist and to enforcing the law, particularly during a time of crisis like the one our country is experiencing now.”

“The Fair Housing Act authorizes the U.S. Department of Justice to take swift action against anyone who sexually harasses tenants, said Eric Dreiband, Assistant Attorney General for Civil Rights. “Landlords, property owners, and others who prey on vulnerable tenants during the COVID-19 pandemic should be on notice. We will bring the full resources of the United States Department of Justice to fight against sexual harassment in housing. We will defend the right of tenants and their families to leave peacefully and securely in their homes without the added stress, pain, fear, and turmoil of dealing with sexual predators.”

The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing fairhousing@usdoj.gov. Citizens in the Eastern District of Pennsylvania who believe they may have been victims of discrimination may also contact the U.S. Attorney’s Office for the Eastern District of Pennsylvania at 215-861-8200, or 615 Chestnut Street, Suite 1250, Philadelphia, PA 19106, ATTN: Jacqueline C. Romero, Civil Rights Coordinator.

PHILADELPHIA – United States Attorney William M. McSwain announced that Lee D. Weiss, 51, of Newton, Massachusetts, was charged by Information with six counts of wire fraud and two counts of mail fraud. The charges stem from Weiss’s multi-year investment scam that targeted his own clients and caused investor losses of more than $10 million.

The Information alleges that Weiss, the principal of Family Endowment Partners, LP, an investment adviser registered with the U.S. Securities and Exchange Commission, fleeced his own clients of millions of dollars through purported investments in a now defunct Florida tobacco company and a series of private securities offerings. Weiss allegedly told his clients that their money would be used for investment purposes when, in fact, he diverted it to make Ponzi payments and to fund his lifestyle. Weiss then told his clients that they were making money when their funds had already been misappropriated. As alleged, he continued to lie to them about the value of their investments to prevent them from learning of his thefts and to convince them to continue paying him fees for “managing” their money. Weiss allegedly defrauded his investors of millions of dollars. He misspent his clients’ investment funds on himself, payments to prior investors, and to prop up his other unrelated businesses.

“Honesty, integrity, and trust all play a critical role in the relationship between a financial advisor and a client, and any advisor who deliberately betrays their clients’ trust for their own financial gain turns the system on its head,” said U.S. Attorney McSwain. “The damage done by such corrupt financial advisors can be catastrophic. We will continue to hold those who commit crimes like the ones alleged here accountable for their misdeeds.”

“Lee Weiss lived lavishly on his clients’ money, funds they’d expected him to invest responsibly,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “For years, he misrepresented his actions, leading to millions and millions in losses as he worked to keep his Ponzi scheme afloat. Simply stated, this case is about greed and the serious abuse of trust. The FBI is determined to hold accountable financial fraudsters like this, to find a measure of justice for their victims and prevent anyone else from being fleeced.”

“The Postal Inspection has a long history investigating investment frauds as the fraudsters often rely upon the mail to execute their schemes,” said Inspector Wood. “The defendant, Lee Weiss, took advantage of clients who trusted him to manage their wealth in what he promised were safe, blue chip investment strategies. Through a web of corporate entities, Mr. Weiss hid the reality of his investment strategy and took his client’s money to cover his own losses. Thanks to hard work of our Inspectors, the agents of the FBI, and prosecutors at the United States Attorney’s Office, Mr. Weiss is being held accountable for his deceitful practices.”

If convicted, the defendant faces a maximum possible sentence of 160 years’ imprisonment, a $2 million fine, 3 years’ supervised release, an $800 special assessment, mandatory restitution, and forfeiture.

The case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service, and is being prosecuted by Assistant United States Attorneys Paul Shapiro and Michael J. Rinaldi. The U.S. Attorney’s Office appreciates the substantial assistance of the U.S. Securities and Exchange Commission in this matter.

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

PHILADELPHIA – United States Attorney William M. McSwain announced that Samuel Meeker, 38, of Philadelphia, PA, pleaded guilty today to two counts of interstate communication of threats against two individuals: a Lehigh County public official and a private attorney. United States District Judge Jeffrey L. Schmehl presided over the guilty plea hearing in Reading via video teleconference.

On August 9, 2019, the defendant left a threatening telephone voice message for a Lehigh County Solicitor using the Lehigh County Law Department’s internet voicemail system. The defendant threatened physical force against the victim and communicated his desire that the entire County of Lehigh be destroyed and wiped from the map.

Two days later, on August 11, 2019, the defendant left a telephone voice message for a private lawyer, who was the personal and estate attorney for the defendant’s father. The defendant threatened force against the lawyer and all other partners in the lawyer’s law firm, stating that the defendant would destroy them.

“Specific threats of violence like the ones made here must be taken very seriously and deserve an immediate response from law enforcement,” said U.S. Attorney McSwain. “Meeker made vile threats against multiple innocent people, including a public servant. I am thankful to the FBI for their swift handling of this potentially explosive situation.”

“You can't just call and threaten people with violent physical harm and not face repercussions,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “The FBI and our law enforcement partners have to take you at your word and intervene, because protecting human life is our absolute priority. Samuel Meeker is being held appropriately accountable for his actions.”

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

PHILADELPHIA – United States Attorney William M. McSwain released a compilation of government and legal resources today that are available to the Philadelphia community during the coronavirus pandemic. This list includes updated information for legal services organizations, as well as other resources provided by both the state and federal government.

“My Office is committed to providing our District with up-to-date information to help the community through this unprecedented time,” said U.S. Attorney McSwain. “We have all been forced to adjust to major changes in our daily lives, and we hope that these legal and governmental resources can make that process a little easier for many.”

The below information is available and accurate as of April 24, 2020.

Legal Resources

The following organizations are dedicated to providing free legal assistance to members of the Philadelphia community regarding civil issues. This includes, but is not limited to, homeownership, unemployment, healthcare, and family advocacy. None of the following organizations is affiliated with the Department of Justice. For more detailed information on a specific organization, please visit the website listed below.

Community Legal Services (CLS) (www.clsphila.org)

• Walk-in Intakes: CLOSED until further notice.
• Telephone Intakes: OPEN. For all CLS Units, call (215) 981-3700 and press the option for the relevant issue (for example, to reach the Employment Unit, Press 7).
   

Philadelphia Legal Assistance (www.philalegal.org)

• Walk-in intakes CLOSED until April 30, 2020.
• Telephone and Online Intakes: OPEN.
  • Telephone Intake: (215) 981-3800 (Monday-Thursday: 9:30 a.m. to noon)
  • Family Law Intake: (215) 981-3838 (Monday-Thursday: 9:30 a.m. to noon)
  • Unemployment Compensation Application Service Hotline: (215) 999-6910 (Monday: 9 a.m. to 1 p.m.; Tuesday: 1 p.m. to 5 p.m.;
    Wednesday & Thursday: 3 p.m. to 7 p.m.; Friday: 10 a.m. to 2 p.m.)

SeniorLAW Center (www.seniorlawcenter.org) 

• Walk-in Intakes: CLOSED until further notice.
• Telephone Intakes: OPEN.
  • Philadelphia: (215) 988-1242
  • Bucks/Montgomery: (610) 910-0210
  • Delaware/Chester: (610) 910-0215
  • Statewide: 1 (877) 727-7529

Philadelphia Lawyers for Social Equity (PLSE) (www.plsephilly.org)

• PLSE is in the process of continuing its operations remotely. For the most current information, please email info@plsephilly.org or call (267) 519-5323.
   

Other Government Resources

This list contains updates on city government services, state and federal courts, and some federal government departments. For more detailed information on a specific organization, please visit the website listed below.

City of Philadelphia (www.phila.gov)

• All Philadelphia city government buildings are CLOSED to the public.
• Information regarding access to city services can be found here.
• There is no scheduled interruption to trash services. Starting April 6, 2020, recycling will be collected every other week.
• Philadelphia Free Libraries are CLOSED, but the public can access online resources here.
• PennDOT Centers: All PennDOT Driver’s License and Photo License Centers are CLOSED until further notice. License expirations are extended to May 31, 2020. For more information, please visit www.penndot.gov.
• PA Turnpike: Cash payments are temporarily suspended.
• SEPTA: Bus, subway, and regional rail services are limited. Information on schedules and open routes, can be found here.
• Parks & Recreation: Philadelphia Parks & Recreation buildings, playgrounds, athletic courts, and restrooms are CLOSED. This includes all rec centers, older adult centers, environmental centers, ice rinks, and the Organic Recycling Center. Some older adult centers are open to provide food. Please find that information here.
   

Social Security Administration (www.ssa.gov/onlineservices/)

• All Social Security Administration offices are CLOSED until further notice.
• All online and phone services are still available. Please call 1 (800) 772-1213 or visit the website for online services. Hours for online services are the following: Weekdays: 5 a.m. to 1 a.m.; Saturday: 5 a.m. to 11 p.m.; Sunday: 8 a.m. to 11:30 p.m.
   

IRS (www.irs.gov)

• The income tax filing deadline has been EXTENDED until July 15, 2020.
   

United States District Court for the Eastern District of Pennsylvania

• Physical access to federal courthouses in the Eastern District of Pennsylvania is RESTRICTED, although certain proceedings are still taking place.
• All orders from the United States District Court for the Eastern District of Pennsylvania concerning the coronavirus pandemic can be found here.
   

United States Bureau of Prisons (BOP) (www.bop.gov)

• The United States Bureau of Prisons has suspended all social and legal in-person visitation.
• For more information on the BOP’s modified operations during the pandemic, please visit their coronavirus overview page found here.
   

First Judicial District of Pennsylvania (www.courts.phila.gov)

• The First Judicial District is currently CLOSED until May 1, 2020, although certain proceedings are still taking place.  
• All orders from the First Judicial District of Pennsylvania concerning the coronavirus pandemic can be found here.
   

Pennsylvania Department of Corrections (www.cor.pa.gov)

• The Pennsylvania Department of Corrections has suspended all in-person visitation to state prisons. They now offer video visitation.

 
If you or someone you know has been the target or victim of a fraud scheme related to the coronavirus, please report the incident to the national hotline at The National Center for Disaster Fraud at 1-866-720-5721 or at disaster@leo.gov.

PHILADELPHIA – United States Attorney William M. McSwain announced today that Jesse Peters, 45, of Lake Worth, Florida, has been sentenced to 15 months and one day of imprisonment, three years of supervised release, and restitution of $3,405,065 for one count of conspiracy to commit health care fraud. United States District Judge Wendy Beetlestone presided over the sentencing hearing in Philadelphia via video teleconference. This scheme involved Liberation Way, a drug and alcohol rehabilitation organization that had treatment centers in Yardley, Bala Cynwyd, and Fort Washington, Pennsylvania.

The defendant participated in an elaborate scheme involving thousands of medically unnecessary urine tests ordered by a co-conspirator and processed by a lab in Florida associated with Peters. The co-conspirator ordered the tests to be performed on samples obtained from Liberation Way patients, even though the co-conspirator never treated any of those patients. The tests were then sent to Florida-based laboratories for a battery of unnecessary tests, and Peters paid kickbacks to principals at Liberation Way in return for directing the samples to his company. Over the course of the conspiracy, Peters kicked back over $1,192,589 to his co-conspirators at Liberation Way in return for sending these unnecessary urine tests to his labs. The defendant pleaded guilty in April 2019.

“Those who think they can profit off of health care fraud are mistaken and may soon find themselves behind bars,” said U.S. Attorney McSwain. “Whether it’s ordering unnecessary laboratory tests to try to get rich quick or any other type of health care fraud, my Office is focused on protecting our nation’s health care system and punishing those who abuse it.”

“Jesse Peters thought he and his co-conspirators had hit upon a surefire moneymaker,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He fully bought into this scheme of unnecessary tests and kickbacks, which cost health benefit programs millions of dollars in fraudulent claims. Anyone involved in, or entertaining, similar activity should know that health care fraud is a priority for the FBI, and we will pursue anyone trying to steal from this country’s vital health care system.”

“Today’s sentencing sends a strong message, health care fraud will not be tolerated,” said Maureen R. Dixon, Special Agent in Charge, Office of the Inspector General for the U.S. Department of Health and Human Services. “HHS-OIG is committed to working with the Department of Justice, Federal and State law enforcement agencies to root out health care fraud and protect the integrity of U.S. taxpayer dollars.”

The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services, the Office of Personnel Management, and the Department of Labor, in conjunction with the Pennsylvania Attorney General’s Office, and is being prosecuted by Assistant United States Attorney Nancy Beam Winter and Special Assistant United States Attorneys Robert Labar and Kristy Christ.

An Allentown, Pennsylvania, attorney pleaded guilty today for his role in a $2.7 million investment fraud scheme that victimized his law clients.  

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania and Special Agent in Charge Michael J. Driscoll of the FBI’s Philadelphia Field Office made the announcement.

Todd H. Lahr, 60, of Nazareth, Pennsylvania, pleaded guilty before U.S. District Judge Edward G. Smith of the Eastern District of Pennsylvania to one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud and four counts of wire fraud.  Sentencing is scheduled for Aug. 3, 2020 before Judge Smith.      

According to Lahr’s admissions at the plea hearing, from 2012 through 2019, Lahr conspired with others to perpetrate a securities fraud scheme targeting his own law clients, which involved the fraudulent sale of the securities of two entities, THL Holdings LLC and Ferran Global Holdings Inc.  Lahr used investor funds to finance his own lifestyle, paying his home mortgage, his child’s school tuition, utility bills and other personal debts.  He perpetuated the scheme by using money that he received from new investors to pay money owed to other investors in the scheme.  Total investor losses are estimated to be over $2.7 million, Lahr admitted at the plea hearing.

The FBI investigated this case.  Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael J. Rinaldi of the Eastern District of Pennsylvania are prosecuting the case.

The department appreciates the substantial assistance provided by the U.S. Securities and Exchange Commission.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.  

PHILADELPHIA – United States Attorney William M. McSwain announced that Todd H. Lahr, 60, of Nazareth, PA, pleaded guilty today to one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud, and four counts of wire fraud. United States District Judge Edward G. Smith presided over the guilty plea hearing in Easton via video teleconference.

Lahr, an attorney licensed to practice law in Pennsylvania, perpetrated a multiyear securities fraud scheme that targeted his own law clients. The scheme involved the fraudulent sale of the securities of two entities, THL Holdings, LLC and Ferran Global Holdings, Inc. Lahr raised funds for the two companies by soliciting investments from his clients, telling them that their money would be used for a variety of business opportunities which were, in fact, non-existent.

Lahr initially sold THL Holdings investments, promising that the money raised would be used to pursue specific business opportunities, including mining operations in Papua New Guinea and the acquisition of the shares of a penny stock. In reality, the money was used for Lahr’s personal expenses and to make Ponzi scheme payments to prior investors, among other things. Once Lahr realized that he was running out of investor money to pay the THL Holdings investors, he sought investors for a second entity, Ferran. He told the Ferran investors that their money would be used for business opportunities, including even more mining in Papua New Guinea and residential property leases in Spain and England—but, in fact, these funds were used to repay the prior THL Holdings investors and for Lahr’s personal expenses to fund his lifestyle. Among these personal expenses were his home mortgage, his child’s school tuition, utility bills, and other personal debt. Total investor losses are estimated to be over $2.7 million.

Even after he was caught, Lahr continued his deception by lying in sworn testimony before the U.S. Securities and Exchange Commission (SEC). In this testimony, Lahr denied writing checks to his personal accounts from the THL Holdings accounts, when, in fact, he had written at least 25 separate checks to himself over a three-year period.

In addition to these criminal charges, the SEC filed a parallel civil enforcement action in the Eastern District of Pennsylvania last month based on the same course of conduct. The SEC Complaint charges Lahr and another individual, Thomas Megas, with multiple securities fraud violations and seeks disgorgement, prejudgment interest, civil money penalties, and injunctions against future violations of the federal securities laws against both defendants.

“Lahr targeted the very people to whom he owed a duty of loyalty: his own law clients,” said U.S. Attorney McSwain. “He stole millions of dollars from innocent victims who trusted him to serve as their lawyer and provide wise counsel. He betrayed them and served his own greedy impulses instead. My Office will continue to aggressively pursue securities and other financial frauds, particularly when perpetrated by lawyers and other industry professionals who are supposed to protect the rule of law, not defile it.”

“Todd Lahr’s clients felt comfortable investing with their trusted lawyer, expecting he would act in good faith,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “In reality, Lahr was inventing these great business opportunities, investing client funds only in himself and his teetering Ponzi scheme. The FBI is gratified to help bring to justice the perpetrator of such blatant and damaging fraud.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi and Trial Attorney Philip B. Trout of the U.S. Department of Justice, Criminal Division, Fraud Section. The U.S. Attorney’s Office appreciates the substantial assistance of the U.S. Securities and Exchange Commission in this matter.

PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Peter Gilbert, 36, of Springfield, Pennsylvania, has been arrested and charged with one count of manufacturing and attempting to manufacture child pornography, and one count of distributing and attempting to distribute child pornography. These charges arise out of Gilbert’s alleged production of sexually explicit images of a child to whom he previously had access and his distribution of those images to an undercover federal agent over the Internet.

“Those who produce and disseminate child pornography pose a serious threat to the safety of our youth and our communities,” said U.S. Attorney McSwain. “Even in these trying times – especially in these trying times – federal prosecutors will not rest in our constant efforts to protect children. And I want to thank all of our law enforcement partners for continuing to work together to protect the most vulnerable in our society.”

“Adults who use their access to children for their own sexual gratification are both a danger and a disgrace,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our law enforcement partners will never stop working to put predators who harm children behind bars. These are incredibly disturbing cases to investigate, but each time we're able to step in and protect a child victim from further sexual abuse, it's a good day.”

If convicted, Gilbert faces a statutory maximum sentence of 50 years’ incarceration with a 15 year mandatory minimum sentence of imprisonment, a lifetime of supervised release, and a $500,000 fine.

The case is being investigated by the Federal Bureau of Investigation, with assistance from Delaware County District Attorney Detectives, the Springfield Township Police Department, Ridley Township Police Department, Sharon Hill Police Department, Newtown Square Police Department, and the Upper Darby Police Department. It is being prosecuted by Assistant United States Attorney Kelly Harrell.

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

PHILADELPHIA – United States Attorney William M. McSwain announced that Pramod Pilania, M.D., has agreed to pay $91,109 to resolve potential liability under the False Claims Act. Dr. Pilania was a psychiatrist who previously saw patients at the Northeast Community Mental Health Centers (“Northeast clinic”) in Philadelphia and the Lehigh Valley Community Mental Health Centers (“Lehigh Valley clinic”), with locations in Allentown, Bethlehem, and Reading. According to the settlement, the United States contends that Dr. Pilania claims to have seen more than 120 Medicaid patients, including children, on a single day on several occasions in 2010. On each of the dates when he supposedly saw in excess of 120 patients, he also travelled between the Northeast clinic in Philadelphia and the Lehigh Valley clinic in Allentown, which are separated by approximately an hour’s drive. 

At the time of Dr. Pilania’s patient visits, Medicaid administrators required the “medication management” or “med check” visit to be 15 minutes in duration and also required the practitioner to record the time each visit began and ended on patient encounter forms. Seeing 120 patients for 15 minutes each would take 30 hours. According to the settlement agreement, Dr. Pilania did not see some of the 120-plus patients on those six dates for 15 minutes. Instead, many of the encounters were of extremely short duration. The settlement also alleges that Dr. Pilania did not record the beginning and ending times on patient encounter forms.   

This False Claims Act settlement with Dr. Pilania was preceded by a separate, related civil health care fraud lawsuit filed in 2015 against the Northeast and Lehigh Valley clinics where Dr. Pilania served as the Medical Director. That complaint also named the clinics’ principals, Melchor Martinez and Melissa Chlebowski, as defendants. At the time, the Northeast and Lehigh Valley clinics were the largest providers of mental health services to Medicaid patients in their respective regions. They generated $75 million in combined Medicaid and Medicare payments from 2009 through 2012. In 2018, the parties settled the lawsuit, and the United States obtained a $3 million consent judgment against the defendants.

“When physicians see Medicare or Medicaid patients, it is their responsibility to know the billing and payment rules required by those programs and abide by them,” said U.S. Attorney McSwain. “The allegations against Dr. Pilania – that he billed federally funded healthcare programs for over 120 patients per day while also commuting between locations that are an hour’s driving distance apart – are egregious. My Office is committed to rooting out healthcare fraud and protecting the integrity of our Medicare and Medicaid systems by holding everyone involved accountable, including any providers who try to cheat those systems.”

“Civil enforcement is an important tool in our ongoing battle against health care fraud,” said Maureen R. Dixon, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services. “We will continue to work closely with the United States Attorney’s Office to ensure the integrity of taxpayer funds and protect beneficiaries of federal healthcare programs.”

The government’s resolution of this matter illustrates the government’s emphasis on combating health care 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).

This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the Pennsylvania Office of Attorney General and the North Carolina Department of Justice. This matter was handled by Assistant U.S. Attorney Judith A. Amorosa and health care fraud auditor George Niedzwicki.

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

PHILADELPHIA – United States Attorney William M. McSwain announced that his Office will be celebrating National Crime Victims’ Rights Week this week, April 19-25.  National Crime Victims’ Rights Week creates an opportunity for communities to raise awareness of victims’ rights and services, celebrate the progress achieved, and honor victims and the professionals who serve them. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981. This year’s theme is “Seek Justice, Ensure Victims’ Rights, and Inspire Hope.”

“Every year, millions of Americans suffer the shock and trauma of criminal victimization, affecting their well-being and sense of security and dignity,” said Attorney General William P. Barr. “To these victims, we affirm our unwavering commitment to supporting them in their hour of need. We also commend the thousands of victim advocates and public safety professionals who labor tirelessly to secure victims’ rights and support survivors.”

“I am immensely proud of the work my Office does every day to give victims a voice in our criminal justice system and to provide them with the support and services they need,” said U.S. Attorney McSwain. “National Crime Victims’ Rights Week creates a unique opportunity to increase awareness of the services available for crime victims. Our goal is to ensure that victims and witnesses are always treated fairly during the prosecution process and that their rights are vigorously protected.”

The Victim/Witness Assistance Unit professionals in the U.S. Attorney’s Office provide crime victims with case status information, education regarding the criminal justice system, court accompaniment, crisis intervention, and referrals to various social service organizations. For detailed information about the rights federal crime victims have and the victim/witness resources available, please consult our website at https://www.justice.gov/usao-edpa/victim-witness-resources.

The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year.

PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Gavin Lee Casdorph, 21, of Anchorage, Alaska, pleaded guilty to one count of willfully making false threats in violation of 18 U.S.C. § 844(e). United States District Judge Edward G. Smith presided over the guilty plea hearing in Easton via video teleconference. Casdorph was charged in January 2019 with making false threats after claiming that he planned to detonate several bombs across the Lafayette College campus.

On May 5, 2018, while posing as a radicalized Lafayette College student and using the handle “BdanJafarSaleem,” Casdorph posted on Twitter that he planned to bomb multiple locations on campus. He attached a letter to his tweets, falsely claiming that his grandfather had died, his girlfriend had broken up with him, and that he had found faith and healing in Allah. The posts also pledged allegiance to ISIS and included an image of the ISIS flag and a photograph of several firearms, with the caption: “Allah has graced us with these weapons of destruction to carry out his needs.”

Casdorph also sent a mass email to members of the College’s admissions staff containing similar disturbing threats and imagery. The email’s subject line was “ISIS Will Prevail: Allah Is the True God.” In the email, Casdorph claimed that his name was “Brendan,” that he was enrolled in Economics at Lafayette, and that he was retaliating for being mocked for his religious beliefs. He warned that when word spread of his plan and students attempted to evacuate, “they’ll be playing right into my plan. I have set up several pipe bombs, pressure cookers and nail bombs around the campus and I plan to inflict the most damage possible.”

Though law enforcement quickly determined that the bomb threats were a hoax, the incident caused a tremendous amount of anxiety on campus, even causing the College to move its graduation ceremony as a precaution. The FBI thereafter conducted an extensive investigation that spanned three states and two continents and led them to Anchorage, Alaska, where the FBI arrested Casdorph in December 2018. During interviews with law enforcement, Casdorph admitted his role in the threats against Lafayette College.

Casdorph hatched his plan to announce the bomb threat on Twitter after an argument he had had with an online gamer whom he met over the Internet. Casdorph then employed the anonymous web browser TOR to set up the phony “BdanJafarSaleem” Twitter account. He further obscured his identity by providing Twitter with a phone number he had purchased from a Florida company that sells numbers to individuals who want to set up social media accounts without providing their real contact information. 

“Gavin Casdorph is a dangerous man whose Internet threats have real-life consequences,” said U.S. Attorney McSwain. “He thought he could cover his tracks by using phony information to register his Twitter account and an anonymous web browser. He was wrong. The local and federal law enforcement agencies tirelessly working this case did not stop until the trail of evidence led them to Casdorph’s door. This case goes to show that if you make threats like those involved here, no matter who you are or where you are – even as far as Alaska – we will hunt you down and hold you accountable.”

“Making false threats online isn’t some harmless goof. It’s selfish, short-sighted—and a crime,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “The FBI takes all threats to life seriously, and so should anyone sitting behind a keyboard or staring into their phone, contemplating posting one. Consider whether you really want to end up where Gavin Casdorph is now, waiting to hear just how many years you’re going to be spending behind bars.” 

“On behalf of everyone affiliated with Lafayette, I want to express our immense gratitude to the Department of Justice and federal law enforcement agencies, as well as all of the state and local agencies who assisted in the investigation, including our own Department of Public Safety, for their diligence in identifying the perpetrator,” said Alison R. Byerly, President of Lafayette College. “While the threats made against the campus in 2018 were determined to be a hoax, their impact on our students, faculty and staff were very real. The conclusion of this matter provides our community with much-needed closure.”  

This case was investigated by the Lafayette College Department of Public Safety, Easton Police Department, and the Federal Bureau of Investigation, Philadelphia Division and Anchorage Division. It is being prosecuted by Assistant United States Attorney Joseph LaBar. Additional assistance was provided by the U.S. Attorney’s Office for the District of Alaska.

PHILADELPHIA – United States Attorney William M. McSwain warned the community today about the potential for hackers to invade and disrupt videoconference meetings that are taking place as Americans use video-teleconferencing (VTC) platforms to conduct online meetings during the coronavirus pandemic.

“In the weeks following the coronavirus outbreak, videoconferencing platforms have become a part of daily living, used in a variety of ways – from conducting online classes, to hosting extended family gatherings, to holding large corporate meetings,” said U.S. Attorney McSwain. “Unfortunately, we have also seen an uptick in video hacking, where cyber actors hijack VTC meetings and cause a variety of harms, from showing inappropriate images to making death threats. Hackers beware: this behavior is not funny in any way and will not be tolerated.”

As individuals continue to engage in online learning and social and business meetings during the pandemic, law enforcement recommends exercising due diligence and caution and encourages users to take the following steps to mitigate videoconferencing threats:

• Do not make the meetings or classrooms public. Videoconferencing platforms have options under “settings” to make meetings private by requiring participants to enter a meeting password, follow a link to a meeting, or wait in a virtual “waiting room.”  These are all features that allow the host to limit public access and control admission of guests.
   
• Do not share a meeting link publicly. Do not use publicly accessible social media platforms to share your meeting link with participants. Provide the link directly to specific people.
   
• Manage screen-sharing options. Most VTC platforms have screen-sharing capability so that participants can see a host’s presentations, a feature often used in online classroom settings. Change the screen-sharing setting to “Host-Only” so that participants cannot share their screens.
   
• Download updates. Ensure that users are using the updated version of remote access/meeting applications, as many VTC platforms have built in additional security measures in their latest updates.
   
• Familiarize yourself with the VTC platform’s capability to remove intruders and lock meetings. Most VTC platforms have ways for hosts to remove participants and prevent them from re-joining and to lock meetings once all participants have joined. Consult with your employer’s IT professionals for more information about these features.

If you are a victim of a video-teleconference hijacking or any cybercrime, you can report it to the FBI’s Internet Crime Complaint Center at www.ic3.gov. If you receive a specific threat of harm during a videoconference, please report it at tips.fbi.gov, 1-800-CALL-FBI, or by calling FBI Philadelphia at 215-418-4000.

PHILADELPHIA – United States Attorney William M. McSwain sent a letter to area health care institutions today to advise them that the U.S. Attorney’s Office for the Eastern District of Pennsylvania is working with its federal, state, and local law enforcement partners to investigate and prosecute those who seek to exploit the devastating effects of the coronavirus pandemic for their own financial benefit. In his letter addressed to hospital leaders across the District, U.S. Attorney McSwain asked for their assistance in identifying those suspected of perpetrating coronavirus-related crimes and urged them to report suspicious conduct to his Office.

In his letter, U.S. Attorney McSwain identified several types of coronavirus-related crimes. In addition to preventing and punishing hoarding and price gouging relating to critical health and medical supplies, he reiterated his commitment to prosecuting all types of coronavirus-related fraud scams, including fraudsters who advertise and sell fake or non-existent medical equipment or phony cures, steal personal identifying information, and engage in other cybercrimes related to the pandemic.

“If left unchecked, these bad actors can inhibit hospitals, physicians, and other health care professionals, as well as governmental agencies and the public, from mitigating the spread of the coronavirus and from successfully saving lives,” said U.S. Attorney McSwain. “We are all extremely grateful for the vital work these health care professionals are performing on a daily basis. I look forward to collaborating with area health care systems and hospitals to protect the community and enforce the laws of the United States during this time of national emergency.”

For health care institutions, illegal hoarding and price gouging of health and medical supplies is of critical concern. To that end, the letter identifies the health and medical supplies that the Secretary of Health and Human Services has designated as “scarce” pursuant to the Defense Production Act, and advises that hoarding or selling these supplies at exorbitant prices will trigger criminal penalties and civil enforcement remedies that the U.S. Attorney’s Office will aggressively pursue. There are fifteen (15) categories of critical health and medical supplies covered by the Act:

• N-95 filtering facepiece respirators
• Other filtering facepiece respirators (e.g., those designated as N99, N100, R95, R99, R100, P95, P99, or P100)
• Elastomeric, air-purifying respirators and appropriate particulate filters/cartridges
• Powered air purifying respirators (PAPR)
• Portable ventilators
• Drug products with active ingredient chloroquine phosphate or hydroxychloroquine HCl
• Sterilization services for any device as defined in Section 201(h) of the Food, Drug, and Cosmetics Act, and sterilizers as defined in Title 21, Sections 880.6860, 880.6870 & 880.6880 of the Code of Federal Regulations
• Disinfecting devices intended to kill pathogens and other kinds of microorganisms by chemical means or physical means, and other sanitizing and disinfecting products suitable for use in a clinical setting
• Medical gowns or apparel (e.g., surgical gowns or isolation gowns)
• Personal protective equipment (PPE) coveralls (e.g., Tyvek Suits)
• PPE face masks
• PPE surgical masks
• PPE face shields
• PPE gloves or surgical gloves
• Ventilators, anesthesia gas machines modified for use as ventilators, and positive pressure breathing devices modified for use as ventilators, ventilator tubing connectors, and ventilator accessories

U.S. Attorney McSwain encouraged hospital employees to report any coronavirus-related suspicious activity or fraud schemes to his Office and to the national hotline at The National Center for Disaster fraud at 1-866-720-5721 or at disaster@leo.gov.

Read U.S. Attorney McSwain’s letter to hospital leadership here.

PHILADELPHIA – United States Attorney William M. McSwain announced today that United States District Judge Edward G. Smith has approved a Consent Decree between the United States and Miller’s Organic Farm of Bird-in-Hand, PA. Five months ago, on November 19, 2019, the court permanently enjoined Miller’s and its owner, Amos Miller, from obstructing federal health and safety oversight and from slaughtering, processing, and selling non-federally-inspected, misbranded meat and poultry products to Miller’s nationwide “private membership association” customers. In the Consent Decree, Miller’s acknowledges its recent violations of these prohibitions and agrees to enforceable remedial provisions.

The first of those violations came to light in December 2019, shortly after the injunction began, when investigators from the Food Safety and Inspection Service (FSIS) of the U.S. Department of Agriculture went to Miller’s to assess compliance with the injunction. They found approximately 2,000 pounds of fresh meat carcasses and products that Miller’s had recently slaughtered without federal inspection, in violation of the injunction. After FSIS “detained” these articles (by tagging them so that they could not be used, altered, moved, or sold in commerce while under detention), Miller’s voluntarily destroyed them.  

FSIS investigators found more violations of the court’s permanent injunction in January 2020. Under the injunction, Miller’s had 60 days to sell, exclusively to its buyers’ club members, approximately 34,062 pounds of frozen meat-and-poultry-product inventory that was already in existence when the court entered the November 19, 2019 injunction. On January 22, 2020, just after that deadline had passed, the investigators found the inventory still at Miller’s, with Mr. Miller contending that he had sold all of it to only one of his buyers’ club members who runs both a Miller’s website and a Florida food Co-Op. FSIS maintained that Miller’s violated the injunction by failing timely to sell and ship the inventory directly to individual members in consumer quantities (rather than to a single member in bulk).

On that date, the investigators also observed and detained approximately 2,100 pounds of non-federally-inspected, freshly slaughtered beef carcasses. Two days later, when FSIS investigators returned to Miller’s to detain the 34,062 pounds of frozen inventory, Mr. Miller violated the injunction by initially denying them access to his facilities.

On February 10, 2020, the United States filed a separate action to seize and condemn the detained frozen inventory and fresh meat carcasses. The U.S. Marshals Service then legally seized those meat and poultry articles but left them in place (frozen and stored) at Miller’s pending a condemnation hearing.

Under the Consent Decree, Miller’s acknowledges that it has violated the injunction and agrees: (1) to pay the financial sanction ($2,500) that the court’s injunction order allows for denying FSIS access to Miller’s; (2) either to adhere to procedures for distributing the frozen inventory directly to Miller’s members in consumer quantities or to destroy the inventory; (3) to denature or destroy the fresh carcass meat, if Miller’s cannot sell it to a pet food manufacturer; and (4) to cease internet advertising of “fresh” or “unfrozen” meat and poultry products unless and until such offers for sale comply with federal and state laws. Meanwhile, the Decree contemplates a stay of the condemnation action while Miller’s has an opportunity to distribute and dispose of the articles under FSIS oversight.

FSIS is responsible for ensuring that commercially sold meat, poultry, and egg products are safe, wholesome, and correctly labeled and packaged. The Consent Decree and the condemnation action are part of the United States’ continuing efforts to bring Miller’s into compliance with the Federal Meat Inspection Act and the Poultry Products Inspection Act.

“This Office takes very seriously these violations of the court’s injunction order and is prepared to seek maximum penalties should violations continue. We are entering into today’s Consent Decree to give Miller’s an opportunity to remedy its non-compliance, to show that it is finally willing to follow food safety law requirements, to stop hindering FSIS from carrying out its food safety mission, and to operate within the rule of law that applies to all other similar businesses,” said U.S. Attorney McSwain. “Particularly during the coronavirus pandemic, when Americans have heightened concern about food safety and availability, my Office will remain vigilant in its efforts to ensure that our nation’s food safety laws are followed so that the public’s health is not further put at risk by allowing potentially unsafe food to enter our food supply.”     

“FSIS inspection of meat, poultry, and processed egg products provides U.S. consumers with confidence in the safety of the products they serve their families,” said FSIS Administrator Paul Kiecker. “FSIS will continue to exercise its authority to implement and enforce food safety regulations to protect the American public and maintain the integrity of the USDA mark of inspection.”

The injunction action is captioned United States of America v. Miller’s Organic Farm and Amos Miller, EDPA No. 19-cv-1435. The condemnation action is captioned United States of America v. 2,100 Pounds of Meat Carcasses, Parts of Carcasses, and Meat Food Products, and 34,062 Pounds of Meat Food Products and Poultry Products, EDPA No. 20-757.

The United States Attorney’s Office received valuable assistance on these cases from FSIS’s Compliance and Investigations Division, Philadelphia Regional Office; USDA’s Office of the General Counsel; and FSIS’s Enforcement and Litigation Division, Office of Investigation, Enforcement and Audit. The injunction action and condemnation action were handled by Assistant United States Attorney Gerald Sullivan.

PHILADELPHIA – United States Attorney William M. McSwain announced that Logan Laboratories, Inc. (Logan Labs), a reference laboratory in Tampa, Florida, Tampa Pain Relief Centers, Inc. (Tampa Pain), a pain clinic also based in Tampa, Florida, and two of their former executives, Michael T. Doyle and Christopher Utz Toepke, have agreed to pay a total of $41 million to resolve alleged violations of the False Claims Act for billing Medicare, Medicaid, TRICARE, and other federal health care programs for medically unnecessary Urine Drug Testing (UDT). Both Logan Labs and Tampa Pain are subsidiaries of Surgery Partners, Inc.  Doyle is the former CEO of Surgery Partners and Logan Labs. Toepke is the former Group President for Ancillary Services at Surgery Partners, with oversight of Logan Labs, and a former Vice President at Tampa Pain.

The government alleged that defendants knowingly submitted or caused the submission of false claims to federal health care programs for presumptive and definitive UDT, in circumstances where such testing was not medically reasonable or necessary. Presumptive UDT are tests that screen for the presence of drugs, while definitive UDT are tests that identify the amounts of those drugs in a patient’s system. The government alleged that defendants developed and implemented a policy and practice of automatically ordering both presumptive and definitive UDT for all patients at every visit, without any physician making an individualized determination that either test was medically necessary for the particular patients for whom the tests were ordered.  According to the government’s allegations, from January 1, 2010 through December 31, 2017, the medically unreasonable and unnecessary definitive UDT were performed at Logan Labs, the medically unreasonable and unnecessary presumptive UDT were performed at Tampa Pain, and the respective resulting false claims were submitted by both Tampa Pain and Logan Labs to federal health care programs. The settlement resolves allegations brought in two separate lawsuits, one in the Eastern District of Pennsylvania and the other in the Middle District of Florida.

“The indiscriminate and unnecessary testing alleged here increased medical costs to the government without serving patients’ real medical needs,” said U.S. Attorney McSwain. “A laboratory that promotes and knowingly conducts medically unnecessary drug testing -- prioritizing profits over objective medical decision-making -- operates unlawfully and wastes limited federal health care resources. That is unfair to both patients and taxpayers and is the type of conduct that must be rooted out of our health care system.”

“The Department of Justice is committed to ensuring that federally-funded laboratory tests are ordered based on each patient’s medical needs and not for the purpose of increasing laboratory profits,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We do not tolerate practices that are not based on patient medial needs and that lead to unnecessary costs for federal health care programs.”

“Medical providers seeking profits at the expense of individualized patient care will be held accountable in our district,” said the United States Attorney for the Middle District of Florida Maria Chapa Lopez. “We will protect our district’s residents from providers whose concern for their bottom line overrides medical decision-making.”

Contemporaneous with the False Claims Act settlement, Logan Labs and Tampa Pain have also entered into a “Corporate Integrity Agreement” with the U.S. Department of Health and Human Services, Office of Inspector General. 

“Increasing the profits of a sister-company by referring patients for testing services that are not medically reasonable and necessary and then having that sister-company submit claims to government health insurance programs for those needless services drains resources from legitimate patient care,” said Omar Pérez Aybar, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Services. “Those scheming to enrich themselves at the expense of taxpayer-funded programs must be held accountable for their actions.”

“It is offensive when medical providers choose to bilk our healthcare billing system for personal enrichment,” said Special Agent in Charge Cynthia A. Bruce, Defense Criminal Investigative Service (DCIS) for the Department of Defense Office of Inspector General, Southeast Field Office. “DCIS and our investigative partners are dedicated to fully investigating and bringing to justice those who deprive the DoD of limited resources needed for the healthcare of our military, veterans and their families.”

“The Department of Labor appreciates the efforts of the OIG community and the Department of Justice in identifying and pursuing cases where unnecessary testing has resulted in excessive charges to our federal workers’ compensation program,” said Antonio Rios, Director of the Office of Workers’ Compensation Programs Division of Federal Employees’ Compensation. “Healthcare fraud detection efforts are a high priority for us.”

The allegations that are the subject of today’s settlement were originally alleged in two 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 previously did in the two whistleblower cases. The whistleblowers will receive approximately $7.79 million of the settlement.   

The government’s pursuit of these matters illustrates its 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 1-800‑HHS‑TIPS (1-800-447-8477). 

This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania and the Middle District of Florida, with assistance from the U.S. Department of Health and Human Services Office of Inspector General. The two lawsuits are captioned United States ex rel. Ashton v. Logan Laboratories, LLC, et al., Case No. 16-4583 (E.D. Pa.) and United States ex rel. Cho v. Surgery Partners Inc., et al., Case No. 8:17-cv-983 (M.D. Fla.). Assistant U.S. Attorneys David A. Degnan and Viveca D. Parker handled the case in the Eastern District of Pennsylvania, with assistance from auditor Denis Cooke, and worked jointly with Assistant U.S. Attorney Kyle Cohen of the Middle District of Florida and Jake Shields and Augustine Ripa of the Civil Fraud Section of the Department of Justice.   

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

PHILADELPHIA – United States Attorney William M. McSwain warned the public today about potential scams relating to the upcoming coronavirus economic impact payments, commonly referred to as stimulus checks.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020. Under the CARES Act, millions of Americans will start to receive economic impact payments from the federal government in the upcoming weeks. In most cases, this one-time direct payment will be delivered by the Treasury Department and the Internal Revenue Service (IRS) to individual taxpayers primarily through direct deposit. Despite safeguards in place to protect these payments, fraudsters will undoubtedly attempt to exploit the current situation to steal individuals’ personal and financial information through a variety of ways, including phishing emails, social media, robocalls, and text messaging.

“It is paramount that we get this much-needed money safely into the hands of Americans in order to ease some of the pain from the pandemic,” said U.S. Attorney McSwain. “The unfortunate reality is that no matter what is going on in the world, fraudsters will look for opportunities to steal. But anybody who tries to take advantage of the pandemic in this manner will feel the full weight of federal law enforcement.”

“Unfortunately, there are fraudsters out there who will attempt to victimize vulnerable people during these trying times,” said Michael Montanez, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Philadelphia Field Office. “Everyone should be wary of swindlers trying to steal their COVID-19 Economic Impact Payment, as well as crooked individuals trying to take advantage of the crisis by tricking people into unnecessarily turning over their personal, sensitive information. All Americans should be cautious in this regard and it is asked that everyone also be on the lookout for the interests of the elderly and other susceptible family members and friends.”

Below are tips for how to spot and avoid scams:

What Fraudsters May Do:

• Ask taxpayers to sign over an economic impact payment.
• Ask by phone, email, text message, or social media for verification of personal and/or banking information for the purposes of expediting a person’s economic impact payment.
• Mail taxpayers bogus checks with contact information (such as a phone number or web address) regarding how the taxpayer can cash the check.
   

How to Avoid Scams:

• Don’t provide personal or financial information to strangers. Never provide an unknown individual with personal or financial information until you have verified the identity of the person with whom you are speaking.
• Don’t open or click on unusual links or attachments. If you receive unexpected emails, text messages, or social media messages with attachments or website links, delete them. Do not click on, download, or open any of the above, as you may be opening malware on your electronic device that can help criminals steal your information.
• Checks are deposited automatically. Remember that in most cases, the IRS is using direct deposit to send the economic impact payments. Thus, if anyone is asking you for personal information in any manner, you should be wary and seek additional information to verify the person’s identity and employment.
• There are no fees to receive payment. The government is not asking citizens to pay anything up front to receive an economic impact payment. If someone contacts you asking for any form of payment in order to receive an economic impact payment, please contact law enforcement.
   

If you or someone you know has been the target or victim of a fraud scheme related to the coronavirus, please report the incident to the national hotline at The National Center for Disaster Fraud at 1-866-720-5721 or at disaster@leo.gov.

PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that his office has filed a lawsuit to stop Philadelphia food distributor Kawa Trading, Inc. (“Kawa”), and its president Chui Xun Liu, from continuing to violate federal food safety laws. Kawa’s most recent alleged violations include selling uninspected and misbranded poultry to two restaurants in Delaware and New Jersey.

The Food Safety and Inspection Service (“FSIS”) of the United States Department of Agriculture (“USDA”), is responsible for ensuring that meat, poultry, and egg products in commerce are wholesome, not adulterated, and properly marked, labeled, and packaged. The Poultry Products Inspection Act (“PPIA”) prohibits companies and individuals from selling, transporting, offering for sale or transportation, or receiving for transportation misbranded or uninspected poultry that is capable of use as human food. The Complaint alleges that Kawa received and sold multiple unlabeled and uninspected cases of poultry products in December 2017 and January 2018. 

Kawa has a long history of violating the PPIA as well as another federal food safety law—the Federal Meat Inspection Act (“FMIA”), which similarly prohibits the sale or transportation of misbranded or uninspected meat products. Kawa’s violations of both the PPIA and the FMIA date back to 2013, and the USDA has warned Kawa numerous times about its violations.

“Food safety is a critical component of public health,” said U.S. Attorney McSwain. “We will not tolerate violations of federal food safety laws and will work with our partner agency, the USDA, to do all that we can to ensure that businesses safely handle the food we eat.”

“We allege that, despite numerous warnings, the company continued to violate food safety laws,” said FSIS Administrator, Paul Kiecker. “Today’s action shows that FSIS investigators are upholding the Agency’s mission to protect public health and ensure a safe food supply.”

The United States’ lawsuit seeks to permanently enjoin Kawa from committing any further violations of the PPIA or FMIA.

The Complaint filed in this matter contains allegations only; there has been no determination of civil liability.

The case is being litigated by Assistant United States Attorney Stacey L. B. Smith, with assistance from Tracy McGowan, USDA Trial Attorney.

PHILADELPHIA – United States Attorney William M. McSwain announced that nearly $60 million in Department of Justice grants is available to help communities address public safety by supporting the successful reentry back into their communities of adult and juvenile offenders who have served their prison sentences.

The funding is available through the Office of Justice Programs (OJP), the federal government’s leading source of public safety funding and crime victim assistance in state, local, and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including adult and juvenile reentry initiatives and research projects designed to improve our knowledge of what works in reentry programming. 

“Providing offenders who have paid their debt to society with functional ways to reintegrate into their communities is an important piece of the Department’s strategy for promoting public safety,” said U.S. Attorney McSwain. “And what we have learned from our District’s reentry program – Supervision to Aid Reentry (STAR) – is that these programs work. For example, in our District, statistics show that the recidivism and revocation rates of offenders who graduate from the STAR program are significantly lower than offenders residing in our District who did not participate in the program.”

“Our District’s STAR program is a national model, and its success is directly attributable to the strong partnerships we have forged with the Federal Community Defenders’ Office, the U.S. Probation Office, and the Court,” continued U.S. Attorney McSwain. “I encourage all who are eligible to apply for these available grants to strengthen and grow reentry programs in our District and beyond.”

“Our nation is facing difficult public safety challenges that demand strong and immediate action. The high rate of recidivism poses a dire threat to community safety and is being met with a robust response by this Administration,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this persistent challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”

The following funding opportunities are currently available, with additional ones coming in the near future:

• Review and Validation of the First Step Act Risk Assessment Tool

Link:                            https://nij.ojp.gov/funding/opportunities/nij-2020-fsa

Available Funds:         Determined after selection              

Deadline:                     April 10, 2020

The National Institute of Justice (NIJ) is the research, development, and evaluation agency of the U.S. Department of Justice. With this funding opportunity, NIJ seeks to review and revalidate, on an annual basis, the risk assessment tool developed in response to the First Step Act. The risk assessment tool – the Prisoner Assessment Tool Targeting Estimated Risk and Needs (PATTERN) – will be used by the Federal Bureau of Prisons (BOP) to predict the likelihood of general and violent recidivism for all BOP inmates. Governmental agencies are excluded from eligibility for this grant. NIJ expects to support multiple individual consultants with this funding, and those consultants selected will work as a team to address First Step Act mandates.

• Correctional Adult Reentry Education, Employment, and Recidivism Reduction Strategies Program

            Link:                            https://bja.ojp.gov/funding/opportunities/bja-2020-17104

            Available Funds:         $7.2 million                                        

            Deadline:                     April 27, 2020

The Bureau of Justice Assistance (BJA) seeks applications to implement or expand education and employment programs that emphasize strong partnerships with corrections, parole, probation, education, workforce development, and reentry service providers. Programs funded by these grants will target prisons, jails, and juvenile facilities and should be focused on the three-year period before release, as well as upon transition and reentry into the community. The following entities are eligible to apply for and receive funding pursuant to this grant: state or local governmental agencies (or their components); federally recognized Indian tribal governments; or nonprofit organizations with a demonstrated history of providing comprehensive reentry services.

• Improving Reentry for People with Substance Use Disorders Program

            Link:                            https://bja.ojp.gov/SCASUD20

            Available Funds:         $13.2 million                                      

            Deadline:                     April 27, 2020

BJA seeks applications for funding to establish, expand, and improve treatment for people with substance use disorders during their incarceration and reentry into the community, which in turn will help to reduce recidivism, promote public safety, and recovery. The following entities are eligible to apply for and receive funding pursuant to this grant: states, units of local government, federally recognized tribal governments, and nonprofit agencies.

• Improving Community Supervision Outcomes Through Swift, Certain, and Fair Responses

            Link:                            https://bja.ojp.gov/funding/opportunities/bja-2020-17096

            Available Funds:         $3 million                                           

            Deadline:                     April 28, 2020

BJA seeks applications from community supervision agencies, e.g., adult probation and parole or pretrial services, to develop and test new or enhanced applications of the swift, certain, and fair (SCF) principles of intervention. The SCF principles of intervention were developed by BJA to reduce recidivism and improve outcomes for people under community supervision. The following entities are eligible to apply for and receive funding pursuant to this grant: states, units of local government, and federally recognized tribal governments.

• Second Chance Act Youth Offender Reentry Program

Link:                            https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17350

Available Funds:         $7 million                                           

Deadline:                     April 28, 2020

The Second Chance Act Youth Offender Reentry Program encourages collaboration between state agencies, local government, and community and faith-based organizations to address the challenges that reentry and recidivism reduction pose for moderate to high-risk juvenile offenders returning to their communities from juvenile residential or correctional facilities. The following entities are eligible to apply for and receive funding pursuant to this grant: states (including territories), local governments, or federally recognized Indian tribal governments, in partnership with interested persons (including federal corrections and supervision agencies), service providers, and nonprofit organizations.

• Innovations in Reentry Initiative: Building System Capacity and Testing Strategies to Reduce Recidivism

Link:                            https://bja.ojp.gov/funding/opportunities/bja-2020-17281

Available Funds:         $4 million                                           

Deadline:                     May 4, 2020

This program will help jurisdictions assess their reentry system, identify strengths and gaps, and then build capacity for improving the reentry system in place or expanding services it provides. The following entities are eligible to apply for and receive funding pursuant to this grant: states, units of local government, and federally recognized tribal governments.

• Second Chance Act Community-Based Reentry Program

Link:                            https://bja.ojp.gov/funding/opportunities/bja-2020-17110

Total Available:          $13.5 million                                      

Deadline:                     May 4, 2020

BJA seeks applications to implement or expand on reentry programs that demonstrate strong partnerships with corrections, parole, probation, and other reentry service providers. These partnerships should develop comprehensive case management plans that directly address criminogenic risk and needs, as determined by validated criminogenic risk assessments, and include delivery or facilitation of services. The following entities are eligible to apply for and receive funding pursuant to this grant: nonprofit organizations and federally recognized tribal governments.

• Research and Evaluation on Promising Reentry Initiatives  

Link:                            https://nij.ojp.gov/funding/opportunities/nij-2020-17295

Available Funds:         $6 million                                          

Deadline:                     May 5, 2020

With this solicitation, the National Institute of Justice (NIJ) requests proposals for rigorous research to examine reentry initiatives that incorporate promising practices, strategies, or programs. NIJ is particularly interested in supporting evaluations of innovative reentry initiatives that focus on offenders with a moderate-to-high risk of reoffending. The following entities are eligible to apply for and receive funding pursuant to this grant: states; units of local government; federally recognized Indian tribal governments that perform law enforcement functions; nonprofit and for-profit organizations; and institutions of higher learning.

• Second Chance Act Evaluation Participation Support Program

Link:                          https://bja.ojp.gov/funding/opportunities/bja-2020-17680

Available Funds:       $4 million      

Deadline:                   May 28, 2020

BJA seeks applicants to participate in an evaluation of their Second Chance Act-funded programs. The following entities are eligible to apply for, and receive, funding pursuant to this grant: units or components of state, local, or county governments and federally recognized Indian tribal governments, provided that applicants are current, or previous, recipients of BJA Second Chance Act funds and are running reentry programs ready for a rigorous, randomized control trial evaluation.

For more information regarding all OJP funding opportunities, please visit: https://www.ojp.gov/funding/explore/current-funding-opportunities

PHILADELPHIA – United States Attorney William M. McSwain announced that more than $159 million in Department of Justice grants are available to help communities address America’s drug addiction crisis.

“Our Office participates in numerous outreach programs that focus on addiction awareness, prevention, and recovery,” said U.S. Attorney McSwain. “These grants are one aspect of that effort:  through these grants, we are providing those affected by addiction with a path forward to long-term recovery. This is an important initiative that helps those directly and indirectly affected by addiction, while making our communities safer at the same time.”

“Our nation is facing the difficult challenge of curbing substance addiction, which threatens public safety and is among the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”

The funding is available through the Office of Justice Programs (OJP), the federal government’s leading source of public safety funding and crime victim assistance in state, local, and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to prevent overdose deaths and break the cycle of addiction and crime.

The following funding opportunities are currently available, with additional ones coming in the near future:

• Family Drug Court Program

https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17090

Total Available:          $18.2 million                                      

Deadline:                     April 8, 2020

The Office of Juvenile Justice and Delinquency Prevention (OJJDP) Family Drug Court Program seeks to build the capacity of state and local courts, units of local government, and federally recognized tribal governments to enhance existing family drug courts or to implement statewide or countywide family drug court practices that increase collaboration with substance abuse treatment and child welfare systems.  The following entities are available to apply for this grant: states and territories; state and local courts; units of local government; and federally recognized Indian tribal governments acting on behalf of a single jurisdiction drug court.

• Mentoring Opportunities for Youth Initiative

https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-16930

Total Available:          $48 million                                         

Deadline:                     April 13, 2020

This program supports the implementation and delivery of mentoring services to youth populations that are at risk for juvenile delinquency, victimization, and juvenile justice system involvement. Mentoring services can be one-on-one, group, peer, or a combination of these types. This solicitation offers five program categories, each with different eligibility criteria outlined in the link provided above. Applicants in all categories must initiate mentoring services to youth who are 17 years old or younger at the time of admission to the program. Funding can be used to support new mentoring matches or continue existing mentoring matches at the time of application.

• Juvenile Drug Treatment Court Program

https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17051

Total Available:          $7.2 million                                       

Deadline:                     April 13, 2020

This program provides resources to state, local, and tribal governments to create and enhance juvenile drug treatment court programs for youth in the justice system who have substance abuse problems specifically related to opioid abuse. This solicitation is composed of two grant categories, and information regarding the specific eligibility requirements for each category is provided in the link above. Applicants must clearly designate the category for which they are applying.

• Opioid Affected Youth Initiative

https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17352

Total Available:          $9 million                                          

Deadline:                     April 20, 2020

This program will support the efforts of states, communities, tribal jurisdictions, nonprofit organizations, for-profit organizations and institutions of higher education to implement programs and strategies that identify, respond to, treat, and support children, youth, and families impacted by the opioid epidemic. The following entities are eligible to apply for and receive funding pursuant to this solicitation: states and territories; units of local government; federally recognized Indian tribal governments; nonprofit organizations and for-profit organizations; and institutions of higher education.

• Research and Evaluation on Drugs and Crime

https://nij.ojp.gov/funding/opportunities/nij-2020-17275

Total Available:          $1 million                   

Deadline:                     April 20, 2020

The National Institute of Justice’s (NIJ) Drugs and Crime Research Program supports rigorous applied research on evidence-based tools, protocols, and policies for state, tribal, and local law enforcement and other criminal justice agencies that address drug trafficking, drug markets, and drug-related violence. The focus of this research solicitation is narcotics-related criminal investigation, prosecution, intelligence, and community surveillance relevant to law enforcement and death investigation activities. The FY2020 solicitation’s drug priorities are methamphetamine and other stimulants, including diverted pharmaceuticals, illicit drugs, and their analogues. The following entities are eligible to apply for and receive funding pursuant to this solicitation: states and territories; units of local government; federally recognized Indian tribal governments that perform law enforcement functions; nonprofit organizations and for-profit organizations; and institutions of higher education.

• Enhancing Community Responses to America's Addiction Crisis: Serving Our Youngest Crime Victims

https://www.ovc.gov/grants/pdftxt/fy-2020-enhancing-community-responses-to-drug-crisis.pdf

Total Available:          $19 million

Deadline:                     May 4, 2020

The U.S. Department of Justice Office for Victims of Crime (OVC) is seeking applications to support direct services for children and youth who are crime victims as a result of the current addiction crisis; and to provide training and technical assistance to the direct services grantees. This program furthers the Department’s mission by enhancing the field’s response to young victims of the addiction crisis. The following entities are eligible to apply for and receive funding pursuant to this solicitation: states and territories; units of local government; federally recognized Indian tribal governments; nonprofit, non-governmental victim and social service organizations with the capacity to serve young crime victims affected by the addiction crisis; for-profit organizations with the capacity to serve young crime victims affected by the addiction crisis; and institutions of higher education.

• Harold Rogers Prescription Drug Monitoring Program

https://bja.ojp.gov/funding/opportunities/bja-2020-17754

Total Available:          $28.1 million                                      

Deadline:                     May 5, 2020

The Harold Rogers Prescription Drug Monitoring Program (PDMP) enhances the capacity of regulatory and law enforcement agencies and public health officials to collect and analyze controlled substance prescription data and other scheduled chemical products through a centralized database administered by an authorized agency. PDMPs help state and local governments to detect and prevent the diversion and abuse of pharmaceutically controlled substances such as opioids and other prescription drugs. Eligibility criteria is outlined in the link provided above.

• Adult Drug Court and Veterans Treatment Court Discretionary Grant Program

https://bja.ojp.gov/funding/opportunities/bja-2020-17098

Total Available:         $1.75 million  

Deadline:                    May 14, 2020

This program provides financial and technical assistance to states, state courts, local courts, units of local government, and federally recognized Indian tribal governments to enhance the operations of drug courts or to implement new veterans’ treatment courts. These courts effectively integrate evidence-based substance abuse treatment, random drug testing, equitable sanctions and incentives, and transitional services in judicially-supervised court settings with jurisdiction over offenders to reduce recidivism, substance abuse, and prevent overdoses. Eligibility criteria is outlined in the link provided above.

• Comprehensive Opioid, Stimulant, and Substance Abuse Site-based Program

https://bja.ojp.gov/funding/opportunities/bja-2020-17023

Total Available:          $27 million                                         

Deadline:                     May 21, 2020

The Comprehensive Opioid, Stimulant, and Substance Abuse Program (COSSAP) was developed as part of the Comprehensive Addiction and Recovery Act (CARA) legislation. COSSAP’s purpose is to provide financial and technical assistance to states, units of local government, and Indian tribal governments to develop, implement, or expand comprehensive efforts to identify, respond to, treat, and support those impacted by illicit opioids, stimulants, and other drugs of abuse. Eligibility criteria is outlined in the link provided above.

For more information regarding all OJP funding opportunities, please visit: https://www.ojp.gov/funding/explore/current-funding-opportunities

PHILADEPHIA, PA – United States Attorney William M. McSwain announced that more than $36 million in Department of Justice grants are available to help communities combat human trafficking and serve adults and children who are victimized in trafficking operations.

“Human trafficking is horrific crime – one that strips victims of their dignity and often leaves them traumatized, with lasting physical and emotional scars,” said U.S. Attorney McSwain. “Human traffickers pose a serious threat to public safety, which is why the Department of Justice and my Office have made prosecution of these crimes a top priority. This is both a national and local problem, and these grants will help fund programs designed to assist those directly and indirectly affected by this serious issue.”

“Human traffickers pose a dire threat to public safety and countering this threat remains one of the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight against this insidious crime. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”

The funding is available through the Office of Justice Programs (OJP), the federal government’s leading source of public safety funding and crime victim assistance in state, local, and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs that support human trafficking task forces and services for human trafficking survivors.

The following funding opportunities are currently available, with several more coming in the near future:

• Missing and Exploited Children Training and Technical Assistance Program

https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17351

Total Available:          $1.8 million                                        

Deadline:                     April 6, 2020

Through this program, OJP seeks to improve and expand the development and implementation of training and technical assistance on effective responses to missing and exploited children’s issues for multidisciplinary teams of prosecutors, state and local law enforcement, child protection personnel, medical providers, and other child-serving professionals. Additionally, this program will provide support for the implementation of all National Missing Children’s Day activities.  The following entities are eligible to apply for and receive funds pursuant to this grant: nonprofit and for-profit organizations and institutes of higher education.

• Research and Evaluation on Trafficking in Persons

https://nij.ojp.gov/funding/opportunities/nij-2020-17324

Total Available:          $2.5 million                                        

Deadline:                     April 20, 2020

Through this solicitation, the National Institute of Justice (NIJ) – a research, development, and evaluation arm of the Department of Justice – continues to build upon its efforts to better understand, prevent, and respond to trafficking in persons in the United States. Applicants should propose research projects that, first and foremost, have clear implications for criminal justice policy and practice in the United States. NIJ is also particularly interested in research projects addressing both sex and labor trafficking. The following entities are eligible to apply for and receive funds pursuant to this grant: states (including territories); units of local government; federally recognized Indian tribal governments that perform law enforcement functions; nonprofit and for-profit organizations; and institutes of higher education.

• Specialized Training and Technical Assistance on Housing for Victims of Human Trafficking

https://www.ovc.gov/grants/pdftxt/fy-2020-specialized-tta-on-housing-for-victims-of-human-trafficking.pdf                                                                           

Total Available:          $2 million                                           

Deadline:                     May 14, 2020

The selected applicant will work with victim service providers assisting trafficking victims to identify challenges and opportunities to better meet the full range of housing needs of survivors of human trafficking. Priority support will be given to current grantees of the Department of Justice’s Office for Victims of Crime (OVC). The selected applicant must be able to assist service providers on a national scale in leveraging existing federal, state, local, and private housing programs and initiatives that trafficking survivors may qualify for, and should demonstrate partnerships with relevant housing stakeholders. The following entities are eligible to apply for and receive funds pursuant to this grant: nonprofit, nongovernmental victims’ service organizations with the capacity to serve human trafficking victims.

• Improving Outcomes for Child and Youth Victims of Human Trafficking      

https://www.ovc.gov/grants/pdftxt/fy-2020-ht-improving-outcomes-for-child-and-youth.pdf

Total Available:          $6 million                                          

Deadline:                     May 18, 2020

OVC is seeking applications for states or tribes to develop, enhance, and coordinate programs and activities geared toward improving outcomes for child and youth victims of sex and labor trafficking. The overall goal of the program is to improve responses for child and youth victims of trafficking with a focus on coordination at the statewide or tribal jurisdiction level to create effective change across systems.  The following entities are eligible to apply for and receive funding pursuant to this grant: states (including territories) and federally recognized Indian tribal governments.

• Integrated Services for Minor Victims of Labor Trafficking     

https://www.ovc.gov/grants/pdftxt/fy-2020-services-for-minor-victims-of-labor-trafficking.pdf

Total Available:          $8 million                   

Deadline:                     May 18, 2020

The purpose of this program is to develop, expand, or strengthen victim service programs for minor victims of labor trafficking, whose victimization occurred when they were under the age of 18. Organizations funded under this program will provide (directly and through partnerships) services that minor victims of labor trafficking often require to address their needs for safety, security, and healing. The following entities are eligible to apply for and receive funding pursuant to this grant: states and territories; units of local government; Indian tribes; and nonprofit, nongovernmental victims’ services organizations with the capacity to serve human trafficking victims.

• Services for Victims of Human Trafficking

https://www.ovc.gov/grants/pdftxt/fy-2020-services-for-victims-of-human-trafficking.pdf

Total Available:          $16.5 million              

Deadline:                     May 18, 2020

OVC is seeking applications to support services for victims of all forms of human trafficking throughout the United States. This program furthers the Department’s mission by enhancing the field’s response to victims of human trafficking. The following entities are eligible to apply for and receive funding pursuant to this grant: states and territories; units of local government; Indian tribes; and nonprofit, nongovernmental victims’ services organizations with the capacity to serve human trafficking victims.

For more information regarding all OJP funding opportunities, please visit: https://www.ojp.gov/funding/explore/current-funding-opportunities.

PHILADELPHIA – United States Attorney William M. McSwain announced that Vaughn Simon, 27, of Pearland, TX, was charged today by Information with 22 counts of mail fraud, eight counts of wire fraud, two counts of filing a false tax return, and one count of tax evasion.

The Information alleges that the defendant perpetrated a scheme to defraud Cisco Systems Inc. (“Cisco”), the Neat Company (“Neat”), iRobot Corporation (“iRobot”), APC by Schneider Electric (“APC”), Amazon.com (“Amazon”), and other companies by engaging in a sophisticated warranty fraud scheme. The charges state that the defendant and his co-schemers obtained serial numbers to products sold or manufactured by Cisco, Neat, iRobot, and APC. They allegedly proceeded to register false domain names, obtain false email addresses, and submit false warranty claims, pretending to own products sold or manufactured by these companies that they claimed were not working. The Information alleges that the defendant provided customer service representatives with descriptions of the non-existent defects that he knew they could not solve by troubleshooting and would require replacement with new products. Cisco, Neat, iRobot, and APC then shipped the replacement products to the defendant and his co-schemers, which they promptly sold via eBay, on Amazon, or through computer resellers.

The Information further alleges that the defendant and his co-schemers defrauded Amazon by using false identities, domain names, email addresses, and mailing addresses to order products that they falsely claimed never arrived or arrived broken, thereby inducing Amazon to repeatedly send replacement products. The defendant and his co-schemers then allegedly sold the products obtained in this manner via eBay.

All told, the Information alleges that the defendant and his co-schemers attempted to obtain more than $5,000,000 worth of products from the victim companies, and successfully obtained more than $3,000,000 worth of Cisco products, as well as products worth thousands of dollars from other victim companies.

The charges also allege that the defendant filed false tax returns for tax years 2014 and 2016 in which he underreported his income by approximately $95,000  and $212,000, respectively, and evaded the payment of any income tax on the income he earned from his fraud for tax year 2015 by, among other things, failing to file a return, storing his fraud proceeds in bank accounts and PayPal accounts in the names of co-schemers, storing cash at his residence, paying his personal living expenses with cash, and using false email addresses, false domain names, prepaid gift cards, and false identities to conceal his involvement in the fraud scheme.

The defendant faces a maximum sentence of 821 years’ incarceration, a five-year period of supervised release, and a fine of $8,250,000.

“As alleged, Simon committed a sophisticated warranty fraud scheme in order to steal millions of dollars of merchandise,” said U.S. Attorney McSwain. “Consumer warranties are designed to make honest consumers whole, not to provide a means for fraudsters to line their pockets. We will work tirelessly to investigate and punish this kind of disregard for the law.”

“Companies offer warranties in an effort to do right by their customers,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Taking advantage of those programs to score millions of dollars’ worth of free merchandise is nothing more than fraud. Anyone engaged in a scheme like this should know that the FBI will be more than happy to step in, shut it down, and hold you accountable.”

“Mr. Simon’s failure to report all of his income is unlawful,” said IRS Criminal Investigation Acting Special Agent in Charge Michael Montanez. “The American people can rest assured that IRS-CI works vigorously to enforce our nation’s tax laws; ensuring that everyone is playing by the rules and paying the taxes they owe.”

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 William M. McSwain announced that more than $83 million in Department of Justice grant funds is available to help communities improve school security and protect students, teachers, and staff from threats of violence.

“Protecting our children from violence is always at the forefront of my mind,” said U.S. Attorney McSwain. “My Office and the Department of Justice take seriously every threat of violence in our community, and we will do everything in our power to prevent tragedy from occurring in a school setting. These grants are provided to bolster school security, develop anonymous school threat reporting systems, educate and train students and faculty, and support law enforcement officers and first responders in their work.”

“School violence is no longer an abstract threat but has become a tragic reality in too many of America’s communities. Moving to meet this challenge is among the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”

The funding is available through the Office of Justice Programs (OJP), which is the federal government’s leading source of public safety funding and crime victim assistance in state, local, and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including those designed to tighten school security and improve the reporting of threats. 

The following funding opportunities regarding school safety are currently available: 

• Research and Evaluation on School Safety

            Link:                            https://nij.ojp.gov/funding/opportunities/nij-2020-17308

            Available Funds:         $5 million                                          

            Deadline:                     April 13, 2020

This solicitation seeks applications for funding to conduct research in areas including the root cause of school violence and the effectiveness of different approaches to stopping school violence.

• Strategies to Support Children Exposed to Violence

           Link:                            https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17926

           Available Funds:         $7 million                                          

           Deadline:                     April 27, 2020

Funding under this program can be used to develop support services for children exposed to violence in their homes, schools, and communities, as well as to develop, enhance, and implement violent crime reduction strategies that focus on violent juvenile offenders.

• STOP Act School Violence Program

           Link:                            https://bja.ojp.gov/funding/opportunities/bja-2020-17312

           Available Funds:         $71.4 million              

           Deadline:                     June 9, 2020

This program is designed to improve school security by providing students and teachers with the tools they need to recognize, respond to, and prevent acts of violence. Funding can be used in multiple areas, including training school personnel and students on preventing student violence and developing threat assessment and intervention teams.

For more information regarding all OJP funding opportunities, please visit: https://www.ojp.gov/funding/explore/current-funding-opportunities.

PHILADELPHIA – U.S. Attorney William M. McSwain warned the public today about the growing number and variety of fraud schemes associated with the coronavirus. He offered guidance to help prevent the public from being victimized by these frauds.  

“Over the past few weeks, there has been a significant number of frauds committed across the country related to the coronavirus pandemic,” said U.S. Attorney McSwain. “The fact that criminals seek to exploit the pandemic by preying on the worries and fears of the public in this difficult time is despicable. My Office will continue to work closely with our law enforcement partners to protect the Eastern District of Pennsylvania. We will leave no stone unturned to find these criminals and bring them to justice.”

Below are some of the known fraudulent schemes related to the coronavirus pandemic:

• Fake cures: Fraudsters are advertising fake cures, fake vaccines, and so-called “immunity” pills, and including wild claims about the products’ healing powers with no scientific or medical basis.
• Fake testing: Fraudsters are selling fake at-home testing kits or going door-to-door performing fraudulent tests in exchange for money.
• Health care frauds: Fraudsters are offering free (and phony) coronavirus testing to obtain Medicare or other healthcare insurance information, which they use to submit false claims for benefits.
• Fake protection and supplies: Fraudsters are advertising fake or un-tested protective equipment (including respirator masks) through websites, social media, and robocalls. The fraudsters have no real equipment to sell, or provide equipment that has not been proven to work for its advertised purpose.
• Phishing: Fraudsters are posing as representatives from well-known institutions, such as the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), in order to trick victims into downloading malware or providing personal identifying and financial information.
• Fake health care providers: Fraudsters pose as doctors or hospital employees and contact individuals via phone or email. They make false claims that they treated a relative or friend for coronavirus and demand money for the claimed treatment.
• Identity theft: Fraudsters are using social media to fraudulently seek donations or provide stimulus funds if the victim provides a bank account number or other personal identifying information. The fraudsters use the information entered by the victim to impersonate the victim and steal money from the victim’s bank account.
• Securities fraud: Fraudsters are promoting securities in publicly traded companies that they falsely claim have discovered the cure for coronavirus.
• Fake charities: Fraudsters are soliciting donations for charities to allegedly benefit people affected by the virus and pocketing the money for themselves. 
   

The U.S. Attorney’s Office urges everyone to follow these tips to better protect themselves from these types of fraud schemes:

• Ignore unsolicited offers for coronavirus cures, vaccines, pills, or treatment.  If there is a medical breakthrough, you will not hear about it first through an email, advertisement, or door-to-door sales pitch. Be aware that fraudsters often use addresses that differ only slightly from the entities that they are impersonating, such as “cdc.com” or “cdc.org” instead of “cdc.gov.”
• Do not share personal information with strangers. Be extremely cautious about unsolicited emails or ads that request your personal information for any purpose. Legitimate healthcare providers will not call or email you and demand medical information, personal identifying information, or money for treatment they have provided to a friend or relative. Report the contact to law enforcement. 
• Do not open emails or links from unknown sources. In doing so, you could download malware or a virus onto your computer or device. 
• Be extremely cautious when sending money in any form. If a business, charity, or individual is requesting payments or donations in cash, by wire transfer, gift card, or through the mail, be careful. Take extra steps to verify the identity of the receiving party and the security of the transaction.
• Have up-to-date software protections on your devices. Be sure the anti-virus and anti-malware software on your computer or device is operating and up-to-date.
   

If you or someone you know has been the target or victim of a fraud scheme related to the coronavirus, please report the incident to the national hotline at The National Center for Disaster Fraud at 1-866-720-5721 or at disaster@leo.gov.

PHILADELPHIA – United States Attorney William M. McSwain announced that Progressions Behavioral Health Services, Inc. (“Progressions”) and Sharmon James, a mental health therapist formerly employed by Progressions, have agreed to pay $27,500 to resolve claims under the False Claims Act set forth in a qui tam complaint filed against them in the United States District Court for the Eastern District of Pennsylvania.

The Complaint alleges that James fabricated mental health treatment records for over 59 outpatient sessions with a minor during the period of May 3, 2017 through October 19, 2018. None of these sessions ever occurred. James allegedly falsified records, forged the signature of the minor’s parent on patient encounter forms, and caused Progressions to submit claims for payment to Medicaid based upon these false records. Pursuant to the agreement, Progressions will pay $17,500 and James will pay $10,000 to the United States.

The settlement resolves allegations in a whistleblower complaint filed in federal court in the Eastern District of Pennsylvania under the qui tam provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblower in this matter was the minor’s parent, who will receive approximately $6,700 of the recovery.

“Behavioral health service entities must have strong mechanisms in place – including appropriate supervision and oversight – to avoid fraud and abuse, or else they will face the consequences,” said U.S. Attorney McSwain. “We thank the whistleblower for bringing this qui tam complaint, as well as our law enforcement partners for helping us to pursue this important civil action.”

“Civil enforcement is an important tool in our ongoing battle against health care fraud,” said Maureen R. Dixon, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services. “We will continue to work closely with the United States Attorney’s Office to ensure the integrity of taxpayer funds and protect beneficiaries of federal healthcare programs.”

The government’s resolution of this matter illustrates the government’s emphasis on combating health care 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).

This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. The case is assigned to Assistant U.S. Attorneys Viveca D. Parker and Judith A. Amorosa of the Civil Division, and health care fraud auditor Dawn Wiggins.

The qui tam is captioned U.S. ex. rel. Smith v. Progressions Behavioral Health Services, Inc., No. 18-cv-4814 (E.D. Pa.).  The claims resolved by this settlement are allegations only and there has been no determination of liability.

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Ungerer & Company, a privately-owned company in the flavor and fragrance business operating in Bethlehem, PA, has agreed to pay $450,000 and to commit to remedial measures to resolve allegations that it failed to make required notifications to the Drug Enforcement Administration (DEA) about certain international shipments of listed chemicals that can be used to manufacture illicit controlled substances.

Federal law and regulations require companies registered with the DEA to notify the agency when it imports or exports certain chemicals that can be used to manufacture illicit controlled substances. Those chemicals include anthranilic acid and benzaldehyde, which can be used to manufacture methamphetamine. A company that imports and exports such “listed” chemicals is generally required to notify the DEA of the shipments, the type of chemical, and the amount shipped. After the shipment is completed, the company is generally required to once again notify the DEA of those details to account for any cancellations or changes, and to ensure the agency has accurate information on the shipments that have occurred.

According to the allegations in the settlement, the DEA conducted scheduled investigations of Ungerer and as a result of one of those scheduled investigations, the DEA found violations of the reporting obligations that apply after completion of the shipments, notified Ungerer of the violations, educated company representatives on the requirements, and issued letters of admonition. But when the DEA conducted the next scheduled investigation, the settlement alleges that the DEA found that, between January 2013 and the present, Ungerer had imported and exported listed chemicals on a number of occasions and failed to provide information to the DEA on the date and quantity actually imported and exported within 30 days after certain transactions. There are no allegations in the settlement that the chemicals were diverted for illicit purposes.

In addition to the $450,000 payment, Ungerer has entered into a three-year administrative agreement with the DEA under which it has committed to implement certain remedial measures. For example, the agreement requires Ungerer to submit certain delinquent forms on its shipments, requires Ungerer to implement a system and train its employees to ensure that these issues do not arise again, and requires Ungerer to submit quarterly certifications to the DEA that it is fully compliant with these reporting obligations.

“While there are legitimate reasons to ship these listed chemicals to international customers, it is critical that the DEA has the information it needs to track the shipments and prevent diversion of the chemicals for illicit production of controlled substances,” said U.S. Attorney McSwain. “This settlement shows how important it is for companies and individuals to uphold their responsibilities and comply with the reporting requirements, which are designed to protect the residents of the Eastern District and beyond.”

“Ungerer & Company has an obligation as a DEA registrant to notify the agency of international shipments of listed chemicals. If illegally diverted, listed chemicals can be used to manufacture dangerous drugs such as illicit fentanyl and methamphetamine,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The vast majority of listed chemicals are used for legitimate reasons. However, part of the DEA’s mission in protecting the public is ensuring that the distribution of these chemicals is properly reported and tracked.” 

This investigation was conducted with the Philadelphia Field Division of the DEA and the Import/Export and Chemical Section in the DEA’s Diversion Control Division. For the United States Attorney’s Office, Assistant United States Attorney Anthony D. Scicchitano handled the investigation and settlement.

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

An Allentown, Pennsylvania, attorney has been charged for his role in a $2.7 million investment fraud scheme that victimized his law clients, according to a superseding indictment that was unsealed Monday.  

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania and Special Agent in Charge Michael J. Driscoll of the FBI’s Philadelphia Field Office made the announcement.

Todd H. Lahr, 59, of Nazareth, Pennsylvania, was indicted by a federal grand jury in the Eastern District of Pennsylvania on one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud, and four counts of wire fraud.   

According to the superseding indictment, from 2012 through 2019, Lahr conspired with others to perpetrate a securities fraud scheme targeting his own law clients, which involved the fraudulent sale of the securities of two entities, THL Holdings LLC and Ferran Global Holdings Inc.  Lahr used investor funds to finance his own lifestyle, paying his home mortgage, his child’s school tuition, utility bills and other personal debts.  He allegedly perpetuated the scheme by using money that he received from new investors to pay money owed to other investors in the scheme. 

Total investor losses are estimated to be over $2.7 million, according to the indictment. 

An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The FBI investigated this case.  Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael J. Rinaldi of the Eastern District of Pennsylvania are prosecuting the case. 

The department appreciates the substantial assistance provided by the U.S. Securities and Exchange Commission. 

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.   

PHILADELPHIA – United States Attorney William M. McSwain announced that Todd H. Lahr, 60, of Nazareth, PA, was charged by Superseding Indictment with one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud, and four counts of wire fraud. The charges were unsealed today in the Eastern District of Pennsylvania.   

The Superseding Indictment alleges that Lahr, an attorney licensed to practice law in Pennsylvania, perpetrated a multiyear securities fraud scheme that targeted his own law clients. The scheme involved the fraudulent sale of the securities of two entities, THL Holdings, LLC and Ferran Global Holdings, Inc. Lahr raised funds for the two companies by soliciting investments from his clients, telling them that their money would be used for a variety of business opportunities, most prominently, a mining operation in Papua New Guinea. According to the Superseding Indictment, these opportunities were non-existent; instead, Lahr used the investor funds to finance his own lifestyle, paying his home mortgage, his child’s school tuition, utility bills, and other personal debt. Total investor losses are estimated to be over $2.7 million.

In addition to the criminal charges Lahr is facing, the U.S. Securities and Exchange Commission (SEC) filed a parallel civil enforcement action in the Eastern District of Pennsylvania today based on the same course of conduct. The SEC Complaint charges Lahr and another individual, Thomas Megas, with multiple securities fraud violations and seeks disgorgement, prejudgment interest, civil money penalties, and injunctions against future violations of the federal securities laws against both defendants.

“Lawyers are entrusted to uphold the law, not break it,” said U.S. Attorney McSwain. “And what is particularly disturbing here is that Lahr allegedly targeted the very people he owed a duty of loyalty to – his clients. Instead of serving their interests, he allegedly stole almost $3 million from them so he could indulge himself. I want to thank our law enforcement partners at the FBI and SEC, along with the attorneys in the Fraud Section of the Department of Justice, who worked with my Office to put an end to this fraud and hold the defendant accountable.”

“Todd Lahr's clients thought he was a man of his word,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Little did they know he would take full advantage of that trust, diverting and using their money as his own. The FBI is fighting every day to shut down financial fraudsters like this, find justice for their victims, and protect the public.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi and Trial Attorney Philip B. Trout of the U.S. Department of Justice, Criminal Division, Fraud Section. The U.S. Attorney’s Office appreciates the substantial assistance of the U.S. Securities and Exchange Commission in this matter.

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

PHILADELPHIA – United States Attorney William M. McSwain announced that Jerel Andre Williams, 37, of Mansfield, Texas, was charged today by Information with 9 counts of mail fraud and 2 counts of filing a false tax return.

The Information alleges that the defendant defrauded Cisco Systems Inc. (“Cisco”), by engaging in a sophisticated warranty fraud scheme. The charges state that Williams and a co-schemer obtained serial numbers to products manufactured by Cisco. He then allegedly utilized false email addresses and false names to submit false warranty claims to Cisco using those serial numbers, pretending to own Cisco products that were under warranty and supposedly not working. Next, Williams provided Cisco customer service representatives with descriptions of the non-existent defects that he knew could not be solved by troubleshooting and would therefore require replacement with new products. Cisco shipped the replacement products to Williams and his co-schemer on the expectation that the defective products would be returned.

The charges allege that Williams and his co-schemer successfully obtained 157 warranty replacement products from Cisco in this manner, each with a retail value of between $3,693 and $34,500. They had the products shipped to addresses throughout the United States, including 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. Williams and his co-schemer then traveled to these addresses, picked up the products, and resold them to computer resellers. Williams allegedly failed to return the supposedly defective Cisco products, despite his promises to do so -- because he never owned them in the first place.

In addition to operating this fraud scheme, the Information also alleges that the defendant filed false tax returns for tax years 2015 and 2016 in which he underreported his gross receipts by $284,741 and $349,177, respectively.

Williams faces a total maximum sentence of 193 years’ incarceration, a five-year period of supervised release, and a fine of $2,750,000.

“Warranties are designed to make honest consumers whole by replacing faulty products, not to be exploited by scammers looking to turn an illegal profit,” said U.S. Attorney McSwain. “Williams allegedly engaged in a sophisticated, nationwide warranty fraud scheme worth hundreds of thousands of dollars. I would like to thank the FBI and IRS for their dedication and partnership in this matter.”

“All income, whether it be from legal or illegal sources, is taxable,” said Michael Montanez, Acting Special Agent in Charge of IRS-Criminal Investigation.  “Our Agents have both law enforcement and financial investigation expertise that uniquely qualifies us to assist with these types of cases by following the illegally obtained proceeds.” 

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.

On March 16, 2020, I issued a statement detailing the reasons why the pro-violent defendant policies of Philadelphia District Attorney Larry Krasner led directly to the murder of Philadelphia Police Officer James O’Connor.  More specifically, I explained how it was inexcusable: (a) that Krasner made no attempt to detain Elliott after he directly violated his parole by being arrested for cocaine possession, and (b) that Krasner voluntarily withdrew the cocaine case against Elliott, a known gang-banger wanted for murder. 

We now have some additional facts:

1. Officer O’Connor has been posthumously promoted from Corporal to Sergeant, and his handcuffs were used to formally arrest Elliott.  I hope this brings his family some comfort.
    
2. Elliott himself is alleged to have fired the bullets that killed Sergeant O’Connor when he was attempting to serve a warrant for a murder that Elliott had allegedly committed previously.  Elliott allegedly lay in ambush behind a closed door and fired over a dozen bullets from an assault rifle as Sergeant O’Connor prepared to enter the residence.
    
3. Three other dangerous felons were with Elliott in the room that he was shooting from, where a staggering 10 firearms were recovered following Sergeant O’Connor’s murder.
    
4. In a March 17 press release full of omissions, inaccuracies and outright lies, Krasner has made plain that his pro-violent defendant policies are responsible for Sergeant O’Connor’s murder.
    

The most notable aspect of Krasner’s press release is that he makes no attempt to address the fact that his office ignored Elliott’s many serious parole violations, which allowed him to stay on the street and resulted in Sergeant O’Connor’s murder.  In particular, as I explained in my March 16 statement, Elliott’s arrest for cocaine possession in January 2019 was a direct violation of his parole on a firearms conviction from 2018 and therefore should have landed him back in prison. 

Despite many opportunities and avenues to detain Elliott after his cocaine arrest, the District Attorney’s Office did nothing.  It did not ask for a detainer and it did not ask for high bail – in fact, it did not ask for any bail at all, as Elliott was released on his own recognizance.  Krasner allowed this known gang-banger – who had been identified by the Philadelphia Police Department as an Operation Pinpoint target offender, making him one of the worst violent offenders in the City – to walk freely on the streets.  And why?  Because for Krasner, the name of the game is decarceration:  he wants violent offenders out of prison, not in it.

 To make matters worse, as I explained in my March 16 statement, Krasner voluntarily withdrew the cocaine case against Elliott – further rewarding him for his criminal behavior and ensuring that he would remain on the streets.  My statement already anticipated and debunked all the lies that Krasner was likely to serve up regarding the withdrawal.  He went ahead and made them, anyway, living up to my low expectations.

Here are the details:

1. First, Krasner asserts that the cocaine case was “fatally flawed because the police actions . . . violate the Fourth Amendment and will result in the suppression of the evidence.”  But he provides no explanation of how this case supposedly involved an illegal search or seizure.  He just says that the Fourth Amendment is violated and expects everyone unthinkingly to nod their heads in agreement.  The reality is that this was an open and shut case:  Elliott disobeyed lawful commands from the officers, led them on a dangerous foot pursuit, reeked of marijuana and was caught red-handed with multiple packets of cocaine in his pockets.  
    
2. Second, Krasner claims that a potential problem with the credibility of one of the officers involved in the drug case warranted the withdrawal.  As I already explained in my previous statement, this potential problem was irrelevant because the primary officer who recovered the cocaine in Elliott’s pockets had no credibility problems and easily could have testified to all aspects of the case.  The other officer was not needed at trial.  Krasner has no answer for this.  Instead, he prefers to seize upon an irrelevant issue as an excuse to keep a murderous gang-banger on the street.
    
3. Third, Krasner is flat-out lying about his supposed reason for the withdrawal.  As I explained in my previous statement, the possible credibility problem with the one officer had nothing to do with the District Attorney’s Office’s withdrawal of the drug case.  That is why the transcript of the court hearing from March 27, 2019 – when the case was withdrawn – says nothing about it, nor does the court docket sheet.  As if any additional proof than that were needed, I have confirmed that the District Attorney’s Office is still sending court notices to this particular officer for active cases for next week and even into May.  In other words, the office has been continually working with this officer since the time of the withdrawal and sees no problem with using him in court.  You can’t have it both ways.  You can’t say you withdrew a drug case against a murderous gang-banger because you can’t work with a particular officer and then continue to send that officer numerous court notices for the next 12 months.  Krasner is lying, pure and simple.  His office withdrew the cocaine case against Elliott and let him roam the streets because Krasner doesn’t care about drug possession cases – regardless of what dangerous drugs or violent offenders are involved.  He considers them an impediment to his radical, decarceration agenda.  And now Sergeant O’Connor is dead because of it.
    
   Krasner’s March 17 press release concludes with a final insult:  he claims to join the City in “mourning” the loss of Sergeant O’Connor.  It would be hard to imagine emptier words. 
    
   Krasner’s radical ideology has brought this City nothing but increased crime, violence, shootings, murder, misery and disrespect for law enforcement.  And it is only going to get worse, unless the decent people of the City decide that they have had enough.  Let us honor Sergeant O’Connor’s memory by rejecting the ideology that took him from his family and from us.  That is the only way to prevent the next tragedy that no family deserves to suffer.

PHILADELPHIA – As our government responds to the ramifications of the coronavirus and more restrictions are put in place, the virus’ impact on our lives continues to evolve.  I want to update the public on the measures that my Office is taking to ensure that we continue to fulfill our mission to protect the citizens of the Eastern District of Pennsylvania.

During this rapidly evolving situation, one thing remains certain:  the prosecutors and staff in my Office are on duty and stand ready to ensure that our essential law enforcement functions operate effectively.  We will work together with our law enforcement partners to punish and deter illegal activity, and we will do so in a manner that promotes everyone’s health and safety.  This is not “anything goes” time for criminals. 

To that end, we have taken a proactive approach with our justice system partners to provide a coordinated response.  Together with the Federal Community Defenders’ Office and the Chief Judge in our District, we are working together to identify the best strategies for making sure that we perform our mission critical functions while taking every precaution to protect those who make our justice system work.  We also remain in constant contact with our local, state, and federal law enforcement partners and will continue to investigate and prosecute criminals who violate federal law.

Our doors do not close – especially in times of crisis.  We will remain vigilant in detecting, investigating, and prosecuting wrongdoing.  And we will be particularly ready to act to root out any crimes that feed on, and exploit, the coronavirus pandemic.  The Justice Department, and my Office, have received reports of fraudsters seeking to profit financially from the crisis.  For example, there have been reports of wrongdoers selling fake cures for the virus online, sending phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention to unwitting targets, and engaging in other forms of fraud.  There also have been reports of malware being installed onto computers and mobile apps if the recipients of phishing emails click on links or attachments provided. 

This Office will perform its public safety function – coronavirus or no coronavirus.  And fraudsters and hackers should pay particular attention, as this Office will not tolerate any shameful exploitation of the virus to turn an illegal profit. 

We are working with our federal partners to put a stop to any such scams, and we will succeed in doing so.  If you or someone you know has been the victim of a coronavirus-related scam, please call the FBI at 215-418-4000 or visit tips.fbi.gov.  If the coronavirus scam is specifically Internet-related, please visit the FBI’s Internet Crime Complaint Center at ic3.gov.

We will continue to monitor and respond to this evolving situation and provide updates as needed. 

PHILADELPHIA – United States Attorney William M. McSwain announced that Sharif El-Battouty, 45, of Puyallup, WA, was sentenced by United States District Court Judge Harvey Bartle III to 30 years’ imprisonment and a lifetime of supervised release for engaging in a child exploitation enterprise and conspiracy to advertise child pornography.

El-Battouty – using the online alias “Fritos” – posted videos and images of child pornography in various text channels on the online-sharing platform Discord. Discord is a public communications service that permits users to create “servers,” or collections of chat rooms. These servers are capable of hosting numerous Discord users who communicate with each other through text chat messages visible to all other users present in that room, post video and image files for other users to download, and send links to material stored elsewhere on the Internet for retrieval by those users.

El-Battouty also actively produced child pornography by communicating directly with scores of minor children over the Internet using manipulation and deception to entice them into transmitting sexually explicit video and images of themselves, which the defendant and his co-conspirators would then record. Two of the Discord servers utilized in this conspiracy, titled “Camgirls” and “Thot Counselors,” facilitated the acquisition and dissemination of child pornography over various video-streaming platforms including Omegle, live.me, Periscope, and Skype.

“Child exploitation offenses are some of the most appalling crimes that we see in our society,” said U.S. Attorney McSwain. “Through his heinous scheme, El-Battouty perpetually victimized children by using Discord to download and share images of their abuse with others. Our community is much safer with the defendant behind bars for decades to come.”

“Sharif El-Battouty manipulated underage girls into sharing explicit images of themselves,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He then passed that child pornography to other online predators, furthering his victims’ sexual exploitation. The FBI is gratified to bring him to justice and to know he’ll be behind bars for some time, where he can’t continue to perpetrate such abhorrent acts against innocent children.”

The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kevin Jayne and Department of Justice Child Exploitation and Obscenity Section Attorneys Lauren Britsch and Kaylynn Shoop.

PHILADELPHIA – U.S. Attorney William M. McSwain announced that the United States filed a civil lawsuit against Andrew M. Berkowitz, M.D., of Huntington Valley, PA, for engaging in healthcare fraud and improperly distributing and dispensing controlled substances. The civil complaint relates to criminal charges that were previously filed against Berkowitz and for which he has pleaded guilty. At the same time the new civil suit was filed, the United States also filed a proposed civil judgment, in which Berkowitz has agreed to pay a total of $2.8 million in civil damages and penalties under the False Claims Act, Controlled Substances Act, and in civil forfeiture, committed to never obtaining another controlled substance registration, and consented to a 20-year exclusion from Medicare and Medicaid. The consent judgment remains subject to court approval.

The civil lawsuit alleges that Berkowitz, through his healthcare practice and employees, developed a scheme where his business dispensed prescription drugs, including controlled substances, to patients in what the staff referred to as “goodie bags.” Berkowitz allegedly dispensed the drugs to every patient whose insurance would cover the drugs he had in stock. The suit alleges that Berkowitz dispensed the drugs for profit without any meaningful assessment of medical necessity or whether the drugs had a legitimate medical purpose. For each “goodie bag” dispensed, Berkowitz allegedly submitted claims for reimbursement falsely asserting that the drugs were medically necessary for the patient. Berkowitz also allegedly prescribed oxycodone to “pill-seeking” patients in exchange for submitting excessive claims to patients’ insurance, including Medicare, for medically unnecessary prescription drugs and for services not rendered. The complaint notes that Berkowitz pleaded guilty to criminal charges on January 24, 2020 and admitted to these facts in court.

Berkowitz agreed to resolve this civil liability under terms outlined in the proposed consent judgment if accepted by the court. Among other things, Berkowitz would pay $2.8 million in civil damages and penalties under the False Claims Act, Controlled Substances Act, and in civil forfeiture, in addition to the $3.5 million he has already agreed to pay in criminal restitution. The proposed resolution would also permanently prevent Berkowitz from prescribing, distributing, or dispensing any controlled substances in the future and prevents Berkowitz from ever seeking another controlled substance registration from the Drug Enforcement Administration. The resolution would also impose a 20-year exclusion on Berkowitz from Medicare and Medicaid.

The civil complaint relates to the criminal charges that were previously filed against Berkowitz. On June 25, 2019, a federal grand jury returned an indictment charging Berkowitz with Health Care Fraud and Distribution of Controlled Substances outside the usual course of professional practice and without a legitimate medical purpose. On January 24, 2020, Berkowitz pleaded guilty to all charges before the Honorable Paul S. Diamond. Describing Berkowitz as a “drug dealer” who committed “prolonged and outrageous dishonesty and fraud,” Judge Diamond revoked bail and remanded him to the custody of the United States Marshal pending sentencing.

 “This civil lawsuit and proposed consent judgment are critical components of ensuring that justice is done in this case,” said U.S. Attorney McSwain. “In addition to criminal charges, this civil resolution makes clear to doctors who dare engage in healthcare fraud and drug diversion that they will be held financially accountable for their illegal conduct. Our office will continue to root out healthcare fraud and drug diversion in the Eastern District of Pennsylvania in all its forms.”

“Andrew Berkowitz pushed unnecessary pills on his patients and doled out opioids to addicts,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “All the while, he was billing Medicare and insurance companies for it and making multiple millions. It’s a gross violation of both medical ethics and federal law. Alongside the criminal case, these civil actions should help hammer home to the medical community that health care fraud is a crime that truly doesn’t pay.”

“Ensuring the integrity of the Medicare and Medicaid program is a top priority,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “This settlement holds Berkowitz accountable for his misconduct and will bar him for participating in Medicare and Medicaid programs for 20 years. HHS-OIG and our law enforcement partners will continue to investigate and hold accountable those providers who chose to engage in healthcare fraud and drug diversion.”

The case was investigated by the Federal Bureau of Investigation; the Philadelphia Police Department; the U.S. Department of Health and Human Services – Office of Inspector General; the U.S. Office of Personnel Management – Office of Inspector General; and the U.S. Department of Labor – Office of Inspector General. The civil investigation, litigation, and resolution are being handled by Assistant United States Attorneys Anthony D. Scicchitano and Sarah Grieb. The related criminal charges are being prosecuted by Assistant United States Attorney M. Beth Leahy.

The amended complaint contains allegations only; except for what has been admitted in the criminal proceeding, there has been no admissions. The proposed consent judgment would resolve any alleged civil liability.

PHILADELPHIA – Last Friday, Philadelphia Police Corporal and SWAT team member, James O’Connor, a proud 23-year veteran of the Department from a family of police officers, was gunned down in the City’s Frankford section while trying to arrest Hassan Elliott, who was wanted for murder.  Elliott was on the street for one reason:  because of District Attorney Krasner’s pro-violent defendant policies.  Those policies – which include permissive bail conditions for violent offenders, failing to pursue serious probation and parole violations by violent criminals, offering lenient plea deals for violent offenses, and outright withdrawing cases against violent felons – put dangerous criminals like Elliott on the street.

All Philadelphians have been living with the negative, and often tragic, consequences of these policies for the 2+ years that the City has had to endure the Krasner regime.  But now those consequences could not be clearer.  Corporal O’Connor’s widow, his children, his brothers and sisters in law enforcement, and the entire City deserve to know why he died.

Here are the facts:

Hassan Elliott is a 21 year-old man from the Frankford section of Northeast Philadelphia.  He is known by law enforcement because of his longtime involvement with a violent gang called “1700” that blights the area of 1700 Brill Street and 1700 Scattergood Street.  This gang is alleged to be responsible for many shootings in the area and is brazen about their access to firearms.  For a taste of what this gang is all about, visit YouTube and look at the video entitled “Frankford Purge,” which depicts Elliott at the 1:29 mark, partially masked, brandishing a firearm.[1]

On June 8, 2017, Elliott was arrested on firearms charges, stemming from an incident in which he threatened a neighborhood resident with a gun.  On January 24, 2018, he entered into a negotiated plea:  Krasner’s office offered, and Elliott accepted, a below-guidelines sentence of 9 to 23 months’ incarceration, followed by 3 years of reporting probation.  Elliott was paroled on January 25, 2018, the day after his plea; he spent a total of 7 months and 16 days incarcerated for this offense.

Following his release, the Philadelphia Probation and Parole Department categorized Elliott as a “high risk” offender, and placed him under the supervision of the Anti-Violence High Risk Unit.  Protocol in this unit requires weekly visits and regular urinalyses.  Elliott violated his parole almost immediately by failing numerous drug tests, and also by repeatedly failing to report to his parole officer.  Eventually, the court scheduled a violation hearing for February 6, 2019.

Prior to that hearing, however, on January 29, 2019, Elliott was arrested and charged with possession of cocaine.  After a foot pursuit by police, 15 packets of cocaine were found in Elliott’s pockets.  This arrest was in direct violation of Elliott’s parole, but the District Attorney’s Office did not pursue a detainer against him or make any attempt to have Elliott taken into custody for this serious violation.  The office allowed Elliott to be released on his own recognizance – no bail was set.  This is stunning, considering that Elliott was on parole for his 2018 firearms conviction.  Here, there was an arrest and multiple parole violations and the Krasner regime did nothing.   

In February 2019, soon after his cocaine arrest, the Philadelphia Police Department identified Elliott as an “Operation Pinpoint” target offender.  Operation Pinpoint is a data-driven crime fighting strategy that targets the worst violent offenders in the City.  Even with Elliott now identified as one of the City’s worst violent offenders, Krasner’s office still did nothing in response to Elliott’s violation of his parole through his cocaine arrest.

On March 1, 2019, Elliott attended a pre-trial status listing for his cocaine case, where he received and signed a subpoena for the trial, which was scheduled for March 27, 2019.  It turns out that March 1 was a busy day for Elliott:  after leaving his pre-trial status listing, he allegedly murdered Tyree Tyrone on the 5300 block of Duffield Street.  Elliott and another man, both armed with handguns, approached Tyrone, who was sitting in his car, and allegedly opened fire at close range.  Video showed Elliott fleeing the scene and his fingerprints were found on one of the alleged murder weapons.

On March 26, 2019, the District Attorney’s Office procured a warrant for Elliott’s arrest for the Tyrone murder.  The next day, March 27, Elliott was scheduled to go on trial in the cocaine case.

On that day, March 27, which was the first trial listing in the case, Elliott failed to appear.  Despite his absence, and the outstanding murder warrant, the District Attorney’s Office withdrew the cocaine case against Elliott, citing prosecutorial discretion.  Elliott then remained at-large until the murder of Corporal O’Connor. 

These facts paint a damning picture of a prosecutor’s office that prioritizes “decarceration” of violent offenders over public safety. 

First, it is inexcusable that the District Attorney’s Office made no attempt to take Elliott into custody after his cocaine arrest.  Had he been detained after his January 29, 2019 arrest – which was a direct violation of his parole on the earlier gun conviction – he certainly would have been in prison on March 1, 2019, when he allegedly murdered Tyree Tyrone.  And if that were the case, Corporal O’Connor would not have been trying to arrest Elliott for that murder last Friday.  Instead, Corporal O’Connor would be alive today, as would Mr. Tyrone.

Krasner’s office had many opportunities and avenues to detain Elliott after his drug arrest, but failed to utilize any of them.  The District Attorney’s Office can always contact probation and ask that a detainer be lodged based on a new arrest, or the District Attorney’s Office could have petitioned Elliott’s supervising judge and requested that a detainer be issued.  The office did neither.  And even if all that had failed, the office could have requested high bail to ensure that Elliott was held pending trial on his new drug case.  Again, the office did nothing. 

The District Attorney’s Office had an additional opportunity to ask that Elliott be held on February 6, 2019.  On that date, Elliott was listed for a violation of parole hearing based on the new cocaine arrest, as well as Elliott’s issues with repeated drug use and his repeated failure to report to his parole officer.  But the docket states that the “detainer [was] to remain lifted” – meaning that no detainer had been or would be lodged – and therefore the violation hearing was continued pending the resolution of the cocaine case.  Yet another opportunity wasted. 

Second, it is inexcusable that Krasner’s office dropped the cocaine case against Elliott.  No responsible prosecutor’s office would ever voluntarily withdraw a case against a violent defendant who doesn’t show up for his first trial date.  And here, the defendant had been identified by the Philadelphia Police Department as one of the worst violent offenders in the City.  He was a gang-banger wanted for murder. 

Moreover, the drug case against Elliott was strong:  he had been caught red-handed with multiple packets of cocaine in his pockets.  A conviction in the drug case would have surely resulted in prison time, as it would have been a direct violation of his parole for the earlier firearms conviction.

Just as importantly, the drug case should not have been dropped because it could have – and should have – been used as a means to get Elliott into custody and off the street on the murder warrant.  If Elliott had shown up for court, he would have been arrested for murder.  He didn’t know that there was an existing murder warrant, so there was certainly a chance that he would eventually show up for the drug trial if the case had not been withdrawn (he had, in fact, already shown up for it once, on March 1).  But that possibility was eliminated when Krasner’s office eagerly withdrew the case.  Instead, Corporal O’Connor and his fellow SWAT officers were left to try to hunt Elliott down, with tragic consequences.

How could any rational human being possibly decide to withdraw the cocaine case against Elliott in these circumstances?  Krasner might try to say that his office had to drop the case because one of the police officers involved in it could not testify (due to a potential problem with this officer’s credibility in a separate, unrelated case that the U.S. Attorney’s Office investigated and declined to prosecute).  If Krasner tries to deflect blame and says this, it is a lie. 

That issue had nothing to do with Krasner’s office dropping Elliott’s drug case, which is why the assigned Assistant District Attorney said nothing about it in court on March 27 when withdrawing the case.  Moreover, even if Krasner had been aware of the possible credibility problem when his office dropped the drug case, that issue was irrelevant because the primary officer who had recovered the drugs in Elliott’s pockets had no credibility problems and easily could have testified to all aspects of the case.  The other officer was not needed at trial.

The bottom line is that there is no excuse for dropping the cocaine case against Elliott.  The case was dropped for the same reason that Krasner’s office ignored the many opportunities to purse the serious parole violation in the first place – because this District Attorney’s priorities always lie with violent offenders, consequences be damned.

This destructive ideology has earned Krasner the enmity of the Philadelphia Police Department.  The Department’s disdain was on full display at Temple Hospital on Friday morning, where officers formed a line to block Krasner’s entrance into the hospital when he tried to visit Corporal O’Connor and his family, who wanted nothing to do with him.

Krasner has much to answer for at this moment in our City’s history.  He should be asked tough questions and not allowed to fall back on his lazy, irrelevant and all-purpose reply to any legitimate criticism that I level against his policies – that the U.S. Attorney is a Trump appointee.  This is not about the President.  And it is not about me.  It is about two entirely preventable tragedies that have claimed the life of a Philadelphia Police Officer and another young life.

Krasner has infected the District Attorney’s Office with a sickness that has deadly consequences for the entire City.  Enough is enough.  This madness must stop.

[1] https://www.youtube.com/watch?v=qFgZj01XsvU

PHILADELPHIA – United States Attorney William M. McSwain announced that Stephen Stroh, 56, of Morton, PA, and Vaughan Reiser, 21, of Landenberg, PA, have been sentenced to prison by United States District Judge C. Darnell Jones II for conspiracy to import numerous controlled substances from China using the dark web, conspiracy to distribute those substances, and related drug offenses. Stroh was sentenced to 17-and-a-half years in prison, while Reiser was sentenced to six-and-a-half years in prison.

From Spring 2017 until December 2017, the defendants conspired to import controlled substances, including furanyl fentanyl, methoxyacetyl fentanyl, U-47700, and other synthetic narcotics, from China into the Eastern District of Pennsylvania. Upon receiving these deadly substances through the mail, the defendants conducted research on various dark net websites to learn how to combine the substances to manufacture counterfeit pills. Some of the pills they made were counterfeit oxycodone pills which contained fentanyl and counterfeit Adderall pills which contained methamphetamine.

The defendants also used the dark web to order machinery and related parts from China in order to press the substances into pills. The defendants then distributed these counterfeit pills to customers via the Internet and through the mail. The pills were also distributed to customers who would test and provide feedback as to the quality of the counterfeit pills. The defendants were paid in bitcoin, and used cellular telephones, computers, and self-destructing messaging applications to communicate with one another.

“Stroh and Reiser are dangerous drug traffickers, pure and simple – it makes no difference that they were using the Internet as opposed to working street corners. If anything, it makes their criminal conduct even worse, given the reach of the Internet,” said U.S. Attorney McSwain. “The drugs these defendants were importing and distributing are extremely deadly, compounded by the fact that they were intentionally mislabeling them. A critical aspect of my Office’s efforts to combat the opioid epidemic is stopping and holding accountable international drug traffickers like these defendants, who richly deserve their significant prison sentences.”

“As Philadelphia continues to deal with a staggering opioid epidemic, these sentencings should serve as a reminder that trafficking in this poison will result in severe consequences,” said William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations Philadelphia. “Additionally, HSI Philadelphia’s Cyber Crimes Investigations Task Force and our partners remain vigilant in protecting our communities from all cyber-enabled drug trafficking.”

The case was investigated by Homeland Security Investigations, and it is being prosecuted by Senior Advisor to the U.S. Attorney Clare Putnam Pozos and Assistant United States Attorney MaryTeresa Soltis.

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Charles F. Kohlerman, IV, 50, of Media, PA, was sentenced to three years’ imprisonment and two years of supervised release by United States District Court Judge R. Barclay Surrick for one count of conspiracy to commit wire fraud and 14 counts of distributing and dispensing oxycodone outside the course of professional practice and not for a legitimate medical purpose. The Court further ordered the defendant to pay a special assessment of $1,500 and a forfeiture of $1.7 million. Kohlerman pleaded guilty to these criminal charges in September 2019.

The charges stem from Kohlerman’s role as a licensed pharmacist and the owner of Kohlerman Pharmacy. Kohlerman’s patients sought to fill prescriptions of brand-name Lipitor® and its generic equivalent, atorvastatin calcium. Regardless of their need, and often without their knowledge, Kohlerman enrolled the vast majority of these patients in Manufacturer One’s Lipitor Savings Card coupon program (the “Program”). Under the Program, Kohlerman billed a patient’s private insurance and then submitted a secondary claim to Manufacturer One for payment to his pharmacy in a scheme to defraud the Program.

In order to carry out his scheme, Kohlerman purchased a negligible quantity of brand-name Lipitor® for his pharmacy and significant quantities of its much cheaper generic equivalent. Kohlerman dispensed the generic equivalent in bottles with brand-name Lipitor® on the labels and then submitted claims to Manufacturer One for reimbursement for the brand-name drug that he neither purchased nor dispensed. To maximize his fraudulent returns, Kohlerman created fake prescriptions for Lipitor®—that neither he nor his pharmacy dispensed—and submitted claims for those fake prescriptions to the Program. Kohlerman also changed physician-issued, one-month supply prescriptions of Lipitor® to a three-month supply prescription to triple the fraudulent refund he would receive from Manufacturer One. Additionally, Kohlerman altered legitimate prescriptions that permitted generic substitution to require distribution of the brand name drug, all while he filled actual brand-only prescriptions with the generic equivalent. Kohlerman submitted false and fraudulent claims to Manufacturer One of $4,562,834.97 and was paid $1,696,566.22.

As part of his scheme, Kohlerman also submitted approximately 126 false and fraudulent Lipitor® claims to the Medicare program, approximately two false and fraudulent Lipitor® claims to the Medicaid program, and approximately 18 false and fraudulent Lipitor® claims to federal employee health benefits programs paid for by the Office of Personnel Management (OPM). Kohlerman was reimbursed $106,986.70 from Medicare, $2,686.60 from Medicaid, and $5,600.31 from OPM.

In addition to the wire fraud scheme, Kohlerman also ignored suspicious activity on 14 separate occasions and, in each instance, distributed or caused to be distributed 120 oxycodone 30 mg tablets to a purported pharmacy customer. The customer, however, was not the individual for whom the oxycodone was prescribed. Additional warning signs that Kohlerman ignored included: (1) the quantity of narcotics exceeded Center for Disease Control recommendations for standard medical usage; (2) both the customer and the purported patient lived over 45 minutes away from the pharmacy; (3) the purported patient’s prescribing physician practiced a similar distance away; (4) the purported patient never picked up his/her prescriptions in person and did not visit the pharmacy in person; and (5) the customer filled prescriptions on behalf of the purported patient before they were eligible for refills.

Finally, as part of a civil resolution, Kohlerman and Kohlerman Pharmacy have agreed to pay the United States $300,000.00 to resolve allegations under the False Claims Act, 31 U.S.C. §§ 3729 et seq., that both Kohlerman and the pharmacy submitted or caused the submission of approximately 146 false claims for Lipitor® when they had, in fact, substituted the generic equivalent for those claims. The civil allegations against Kohlerman Pharmacy are allegations only and there has been no finding of liability as to the pharmacy.

“Kohlerman put his own greed above his patients’ well-being,” said U.S. Attorney McSwain. “By changing patients’ legitimately prescribed medications, unbeknownst to them, Kohlerman pumped up the amount of money he could steal. By doing so, he ripped off the American taxpayer and private industry alike. Kohlerman’s self-interest is also reflected in his wanton distribution of illegal painkillers. This criminal sentence and civil resolution demonstrate the coordination between My Office’s Criminal and Civil Divisions and our Health Care Fraud Strike Force. We will use every weapon in our arsenal—criminal and civil—to prosecute medical professionals who put profits over the well-being of patients.”

Thomas W. South, Deputy Assistant Inspector General for Investigations, OPM OIG, said: “In addition to unethically changing patients’ prescriptions without their knowledge or consent, Mr. Kohlerman’s greed also endangered patients’ health through the careless prescription of opioids. The opioid crisis is fueled by corrupt providers that dispense and distribute narcotics outside the course of professional practice and for no legitimate medical purpose. OPM OIG will not tolerate those who put profits above the well-being of patients.”

“As a pharmacist, Kohlerman has a corresponding responsibility, similar to that of a doctor, to insure that prescriptions for controlled substances are filled for a legitimate medical purpose and within the course of professional practice,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Field Division. “Kohlerman repeatedly ignored that responsibility by dispensing multiple prescriptions for powerful prescription painkillers such as oxycodone to people other than the patient named on the prescription, dispensed before they were eligible for refills, and for patients that lived over 45 minutes away from his pharmacy—all of which are indicative of illegal diversion activity.”

“Chuck Kohlerman used pharmacy patrons as pawns in his money-making scheme, soon adding phony prescriptions into the mix,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “All told, his litany of fraudulent claims netted nearly $2 million to which he wasn’t entitled. Add to that his reckless dispensing of addictive opioids, and it’s clear that the guiding principle here was greed. One of these days, medical professionals will get the message that health care fraud is a high priority for the FBI and we’re working every day to hold perpetrators accountable.”

“Kohlerman chose himself over his patients,” said Special Agent in Charge Maureen R. Dixon, Office of the Inspector General for the Department of Health and Human Services (HHS-OIG). “HHS-OIG and our law enforcement partners will continue to investigate and prosecute individuals who chose to enrich themselves at the expense of patients.”

The case was investigated by the Office of Personnel Management, Drug Enforcement Administration, Federal Bureau of Investigation, Health and Human Services Office of Inspector General, and the U.S. Marshals, and is being prosecuted by Assistant United States Attorney Paul J. Koob and Trial Attorney Adam G. Yoffie. Deputy Chief for Affirmative Litigation Charlene Keller Fullmer of the Eastern District of Pennsylvania is handling the parallel civil case.

PHILADELPHIA – United States Attorney William M. McSwain announced that Lukeen Gerald, 31, of Philadelphia, PA, was sentenced to 56 years’ imprisonment by United States District Court Judge Petrese B. Tucker for a series of armed robberies in Philadelphia. The Court further ordered the defendant to serve three years’ supervised release and to pay $4,330 in restitution and a special assessment of $1,500.

The defendant committed a staggering seven armed robberies of convenience stores and a bar in Philadelphia over a four-week period in early 2015. During each robbery, Gerald brandished a gun and wore a mask. In one armed robbery of a Dunkin Donuts, he accused the store employee of moving too slowly in handing over the store’s cash and fired his gun in anger.

Gerald was arrested after his seventh robbery when his car was stopped by Philadelphia Police officers. Following his arrest, the police recovered a shotgun, ski mask, and cash from his car. After receiving his Miranda warnings, not only did the defendant admit he committed the robberies, but also he described each robbery in detail and told law enforcement where they could find evidence linking him to his crimes. The defendant has previously been convicted of a felony and therefore was prohibited by law from possessing a firearm. After a five-day trial, he was convicted on all 15 counts of the federal Indictment.

“Gerald and criminals like him selfishly engage in violent acts that cause harm to innocent small business owners, their employees, and our community as a whole,” said U.S. Attorney McSwain. “Showing total disregard for the lives and property of others, Gerald terrorized people who were simply trying to earn an honest living. These law-abiding residents deserve protection, and my Office is working tirelessly to make sure that they have it.”

“Lukeen Gerald is a vicious and violent offender whose armed robbery spree left his victims traumatized,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “In the course of a month, he targeted seven different establishments, and history suggests he’d have kept at it, had he not been stopped by the Philadelphia Police Department. Know that the FBI and PPD are working together every day to make this city safer by putting criminals like Gerald behind bars.”

“The investigation, arrest, and successful prosecution of Lukeen Gerald is further evidence of the merits of a collaborative approach to combating violent crime,” said Danielle Outlaw, Philadelphia Police Department Commissioner. “We are privileged to have worked alongside our law enforcement partners in securing the conviction, and anticipate that the attendant sentencing will have an appreciable effect on the safety of the community we serve.”

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 Attorneys Sarah Damiani and Roberta Benjamin.

PHILADELPHIA – United States Attorney William M. McSwain announced that Angelo Perrucci, Jr., of Bangor, PA, has pleaded guilty to five counts of wire fraud before United States District Court Judge Joseph F. Leeson, Jr. The charges arise out of Perrucci’s scheme to defraud the estate of a client and its heirs by taking funds from the estate for his own personal use.

The defendant is an attorney licensed to practice law in New Jersey and Pennsylvania. In 2015, he was contacted by his former neighbor to provide end-of-life legal services for her ill father. Following the father’s death in early 2016, Perrucci filed a motion in court seeking to be appointed as the administrator of the estate. The court granted the motion, and the defendant opened a bank account in the name of the estate. Within two weeks of opening the estate account, Perrucci withdrew more than $36,000 for his own personal use. He continued this fraud for over three years. Between March 2016 and May 2019, Perrucci fraudulently issued more than 80 checks to himself, stealing more than $300,000 and depleting the estate account.

“Attorneys take an oath to act in accordance with the law – not to use it as a way to manipulate innocent and vulnerable people for personal profit and gain,” said U.S. Attorney McSwain. “Perrucci was entrusted with a sensitive and important task – the care of an estate – and he used that trust to commit fraud and steal from the beneficiaries. This is truly despicable behavior that deserves the full condemnation of the legal community and society as a whole. My Office will continue to target and aggressively prosecute predators like this defendant.”

“The Postal Inspection Service has long investigated those among us who use the mail to commit fraud,” said John Walker, the Assistant Inspector in Charge of the Philadelphia Division of the Postal Inspection Service. “This defendant, a lawyer, used his position of trust and authority in an area of the law many of us don’t fully understand and are not in a position to effectively police to steal money from his clients. Thanks to the hard work of the Inspectors in my office and the attorneys of the United States Attorney’s Office, Mr. Perrucci is being held accountable for his deceitful practices.”

The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Christopher J. Mannion.

PHILADELPHIA – United States Attorney William M. McSwain announced that Ryan Antrim, 29, of Allentown, Pennsylvania was sentenced to 20 years’ imprisonment and a lifetime of supervised release by United States District Court Judge Edward G. Smith, for the distribution, receipt, and possession of child pornography.

Between July and November 2017, the defendant utilized Kik Messenger (Kik), a free proprietary instant messaging software application primarily for mobile devices, as a way to join a Kik group focused on the sexual abuse of children. As a member of this group, Antrim distributed various images and videos, and also received sexually explicit images of young children under the age of twelve years old. On February 15, 2019, Antrim pled guilty to all charges. 

“Antrim took part in a repugnant online community that glorified the sexual exploitation of children,” said U.S. Attorney McSwain. “Distributing sexually explicit videos and photos of young children is reprehensible behavior that demands swift justice. My Office will continue to aggressively prosecute these types of crimes in order to deter this repulsive behavior and protect children.”

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

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.

PHILADELPHIA – United States Attorney William M. McSwain announced that Michael Gordon, 32, of Philadelphia, PA, was sentenced today by United States District Court Judge Paul S. Diamond to serve 20 years’ imprisonment, followed by three years’ supervised release, for conspiracy to traffic in counterfeit goods and conspiracy to commit money laundering. The Court further ordered the defendant to pay over $2.7 million in restitution and to forfeit over $300,000.

From approximately December 2017 until October 2018, Gordon was involved in a sophisticated scheme to obtain counterfeit Xanax on the dark web in order to sell the counterfeit pills for a profit. He took numerous steps to conceal his illegal activity: for example, he coordinated the mailing of packages in covert ways, having them addressed to fictitious recipients and mailed to a variety of locations Gordon himself controlled in an attempt to thwart any investigative efforts. Additionally, he paid for the counterfeit pills using Bitcoin, re-sold the counterfeit pills for a profit, and then laundered the proceeds of his illicit drug business in order to conceal the true nature of the funds obtained from the scheme. Before he was stopped by law enforcement, the defendant illegally obtained hundreds of thousands of these highly addictive pills and re-distributed them. He pleaded guilty to the charges in June 2019.

“Simply put, Gordon placed the well-being of others at risk in order to satisfy his own greed,” said U.S Attorney McSwain. “Xanax can be highly addictive under normal circumstances, but the counterfeit version of Xanax can be even more addictive and potentially deadly. Gordon did not think twice about this danger, as he was focused solely on how to profit from the misery of others. He is now in prison, where he belongs.”

“Abuse of benzodiazepines, such as Xanax, is a critical issue for a greater Philadelphia-area that is already experiencing an opioid abuse epidemic.  Add in the trafficking of counterfeit prescription drugs made of unknown substances from China and, now, we have significantly increased the risk to vulnerable consumers,” said William S. Walker, acting Special Agent in Charge for HSI Philadelphia. “Homeland Security Investigations and our law enforcement partners will continue to work tirelessly to investigate and remove dangerous narcotic traffickers from our communities.”    

This case was investigated by Homeland Security Investigations Philadelphia’s Cyber Crimes Investigations Task Force (C2iTF) – a multi-agency initiative targeting cyber-enabled criminal activity. The Task Force is comprised of investigators and analysts from the Liberty Mid-Atlantic High Drug Trafficking Area Initiative, the U.S. Postal Inspection Service, the Drug Enforcement Administration, the U.S. Postal Service - Office of the Inspector General, the Pennsylvania State Police, the Pennsylvania National Guard, and the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorney Nancy Beam Winter.

PHILADELPHIA – United States Attorney William M. McSwain announced that Harris Roy Rosen, 65, of Sag Harbor, New York, pleaded guilty before United States District Court Judge Wendy Beetlestone to fraud charges stemming from a scheme to steal funds from his clients.

The defendant, an attorney who practiced law in Philadelphia through the business Rosen and Rosen PC, was charged by Information in February 2020 with wire fraud, aggravated identity theft, and tax evasion. From approximately 2013 through 2017, he perpetrated a complex fraud scheme through which he stole settlement and estate funds from his clients to support his lavish lifestyle, including the purchase of homes in both Philadelphia and the Hamptons, NY, and a Mercedes-Benz vehicle. As part of the scheme, Rosen routinely lied to clients about the status of their funds; forged clients’ names on settlement checks to deposit them into his personal bank accounts; forged checks to steal money from a client; and created fake bank statements to lull clients into believing that their settlement or estate funds were in appropriate bank accounts waiting to be disbursed. Ultimately, many clients did not get any of the settlement or estate funds to which they were entitled. Rosen also intentionally failed to file tax returns to avoid reporting his illicit income.

Through his fraud scheme, the defendant defrauded clients of approximately $796,000. Based upon his evasion of federal taxes, he has a criminal tax due and owing to the Internal Revenue Service of approximately $261,000.

“Attorneys work in positions of trust and therefore must be held to the highest standards of ethical conduct,” said U.S. Attorney McSwain. “In this case, Rosen took advantage of his clients and swindled them in order to bankroll his lifestyle. That is reprehensible. My Office will continue to protect the public against fraudsters like Rosen who abuse their positions of trust.”

“Rosen funded his lavish lifestyle with money he stole from his clients,” said Michael Montanez, Acting Special Agent in Charge of IRS-Criminal Investigation. “Rosen utilized various means to conceal his theft from his clients and evade his tax liability. At this time of year, when hard-working Americans are sitting down to prepare their tax returns, it is especially disappointing to see the overt steps some individuals will take to hide their taxable income from the government.”

“Put simply, this is a case about greed and the abuse of trust,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “For years, Harris Rosen lived extravagantly on the money he stole from his clients. While they counted on him to act in their best interests, he considered only his own. The FBI will always work to shut down fraudsters like this, bring justice for their victims, and protect the public.”

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

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Marqueal Bonds, 22, of Chicago, IL, pleaded guilty to engaging in a nationwide child exploitation enterprise and conspiracy to advertise child pornography. Bonds entered a guilty plea mid-trial before Senior United States District Judge Harvey Bartle, III.

Using Discord, an electronic communications service that allows users to share files and communicate via text chat messages, Bonds and his co-conspirators participated in two separate collections of chat rooms to discuss and share files containing child pornography. Shortly after federal agents executed a search warrant of Discord’s servers in October 2018, revealing messages about child pornography, the defendant confessed to his participation in this child exploitation enterprise. Subsequent forensic analysis of his digital devices confirmed his confession.

“Bonds was part of a deplorable group of sexual predators who exploited thousands of young girls on Discord, a web-based chatroom application,” said U.S. Attorney McSwain. “Bonds and his co-conspirators employed a familiar ruse to lure their victims:  they trolled the Internet on legitimate sites like Snapchat, Periscope, and Live.me for vulnerable victims, tricked them into believing they were chatting with boys or girls their own ages, and then obtained video and naked photos of them to share on Discord. Bonds’ guilty plea ensures that he will be held accountable for this exploitation, and my Office will continue to aggressively prosecute child predators in all their noxious forms.”

“Marqueal Bonds not only manipulated underage girls into providing him explicit images of themselves, he shared them online, perpetuating the sexual exploitation of these children,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “We’re pleased that Bonds finally recognized how much damning digital evidence the FBI’s investigation turned up and decided, mid-trial, it was in his best interests to change his plea to guilty. The FBI is working aggressively every day to put predators like this behind bars and prevent them from targeting additional victims.”

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

The case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Kevin Jayne and Department of Justice Trial Attorney Kaylynn Foulon, of the Child Exploitation and Obscenity Section.

PHILADELPHIA – United States Attorney William M. McSwain announced that Neil I. Mittin, 64, of Huntingdon Valley, PA was sentenced to five years in prison and ordered to pay $3.4 million in restitution by Senior United States District Court Judge Michael M. Baylson for his scheme to steal numerous personal injury cases and other legal matters from his law firm between 2008 and 2018.

The defendant pleaded guilty to mail fraud in September 2019. He worked for approximately 38 years as an associate for a Philadelphia, Pennsylvania law firm (“the Law Firm”). The Law Firm specialized in representing plaintiffs in personal injury and other types of legal matters. From 2008 through 2018, Mittin engaged in a scheme to steal numerous personal injury and other legal matters from the Law Firm by secretly referring them to outside attorneys.

The Law Firm clients did not ask him to refer their matters to outside attorneys and often did not know or understand what Mittin was doing. The defendant concealed his conduct from the Law Firm by closing the files for those matters and making it appear in the records of the Law Firm that there was no settlement or resolution and that the cases were not viable.

Following the fraudulent referrals, the outside attorneys to whom Mittin referred these matters attempted to resolve them with a settlement or a trial. If the matter was resolved successfully, the attorneys paid Mittin a referral fee, on average, of between 33 and 40 percent of the contingency fees obtained by the attorneys. The attorneys also paid Mittin a reimbursement amount for the costs that the Law Firm incurred before Mittin referred the cases out. The defendant illegally pocketed these referral payments and reimbursement costs and did not disclose to the Law Firm that the matters were resolved in this fashion.

The personal injury cases and other legal matters that the defendant referred to other lawyers generated approximately $10,800,000 in financial recoveries for the Law Firm’s former clients. As a result of this scheme, Mittin defrauded the Law Firm of approximately $4,200,000 in legal fees and costs, including the share of those fees and costs that he obtained from the outside lawyers.

“As officers of the court, attorneys are expected to uphold the law, but Mittin did just the opposite,” said U.S. Attorney McSwain. “He siphoned millions of dollars away from his firm for nearly a decade by stealing clients, covering his tracks, and lining his pockets with bogus referral fees and reimbursements for costs he never incurred. Today, he has been held accountable for his actions, and rightly so.”

“Neil Mittin diverted millions of dollars of business from his longtime employer, a firm where he worked for more than half his life,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “He cheated his colleagues, misled and poached his clients, and pocketed the proceeds in the form of referral fees. He’ll now be held to account for this decade-long, multimillion-dollar fraud.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.

PHILADELPHIA – United States Attorney William M. McSwain announced that Dennis D. Davis, 34, of Levittown, PA was convicted today at trial of one count of possession of a firearm by a convicted felon and one count of possession with intent to distribute a controlled substance. The trial took place before United States District Judge Mitchell S. Goldberg.

Davis was arrested after a dramatic car chase in July 2017. The defendant refused to pull over for Middletown Township Police, and a pursuit ensued. Davis continued to flee at a high speed and caused a crash at a busy intersection near the border of Middletown and Bristol Townships. He pulled his damaged vehicle into a parking lot and fled on foot. As he fled from police officers, Davis discarded a purse containing a firearm, drug paraphernalia, and crack cocaine. Police officers eventually caught Davis and took him into custody. The officers recovered the purse and its contents and also found over $1,000 in cash in the defendant’s car.

The government presented evidence at trial that included the physical evidence recovered at the scene, fingerprints from the gun, civilian eyewitnesses, and several law enforcement witnesses who participated in the chase and the defendant’s arrest.

“Firearms and drugs in the hands of convicted felons like Davis undeniably pose a serious threat to our community” said U.S. Attorney McSwain. “Davis further endangered the community by refusing to comply with officers’ lawful commands and causing an unnecessary high speed chase and subsequent crash. Luckily, no innocent civilians were hurt or killed and Davis has now been held accountable for his criminal conduct. We remain steadfast in our commitment to working with our federal partners to clear the streets of illegal firearms and drugs and to protect the public.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Michael J. Rinaldi and Melanie Babb Wilmoth.

PHILADELPHIA – United States Attorney William M. McSwain announced that Melvin Fishburn, 57, of Charleston, South Carolina was sentenced to 15 months imprisonment and three years’ supervised release by United States District Judge Edward G. Smith for stealing from the International Brotherhood of Electrical Workers, AFL-CIO, Local Union #743 (“IBEW Local 743”) and National Electrical Contractors Association Penn-Del-Jersey Chapter, Reading Division Retirement Plan (the “Retirement Plan”). He was also ordered to pay restitution of $81,413 and a special assessment of $800.

On July 17, 2019, Fishburn entered a guilty plea to an indictment charging him with four counts of embezzlement and four counts of wire fraud. Fishburn was the business manager for IBEW Local 743 and a trustee of the Retirement Plan. From July 2010 until June 2014, he stole $81,413 from the Retirement Plan and plan participants through an elaborate scheme by which he submitted disbursement requests from a shell entity he created for services that were never provided to, and expenses that were never incurred by, the Retirement Plan. Fishburn, in his capacity as trustee of the Retirement Plan, authorized the illegal payment of plan assets to the shell entity and had the checks mailed to a Post Office Box under his control.

“Fishburn abused his position of trust and betrayed union members to line his own pockets,” said U.S. Attorney McSwain. “That is reprehensible. He had a fiduciary duty under ERISA to take actions that benefit the Retirement Plan, but instead, he breached that duty in order to serve his own interests. My Office will aggressively pursue criminal conduct like this and will hold accountable those who deprive workers of benefits that are rightfully theirs.”

“Melvin Fishburn created a fictitious consulting company for the sole purpose of embezzling more than $80,000 from the IBEW Retirement Plan. Fishburn abused his position as a plan trustee in order to deprive hard-working union members of money set aside for their retirement. We will continue to work with the Employee Benefit Security Administration and our other law enforcement partners to protect the integrity of labor unions and their benefit plans,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

“Prosecuting those who misuse funds from employee benefit plans is a vital aspect of EBSA’s mission to protect the rights of America’s workers,” said Michael Schloss, Employee Benefit Security Administration’s (EBSA) Regional Director in Philadelphia. “EBSA will continue to aggressively investigate such crimes on behalf of workers nationwide.”

The case was investigated by the United States Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud, as well as the Employee Benefits Security Administration. It is being prosecuted by Assistant United States Attorney Mary Kay Costello.