Eastern District of Pennsylvania

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that James Traband, 53, of Upland, Delaware County, PA was sentenced to 30 years in federal prison followed by lifetime supervised release by United States District Judge Harvey A. Bartle for possession and distribution of child pornography.

In 2018, the Criminal Investigation Division of the Delaware County District Attorney’s Office investigated Traband for trafficking in child pornography using his Facebook account. The investigation revealed that the defendant had created a fake profile for himself, posing as a 13-year old boy, to find and entice other minor boys into sexual activity online. He used real photos he had taken of a young boy who lived with him to lure other young boys into believing they were communicating with a boy of their same age. In reality, they were talking with Traband, a middle-aged convicted sex offender, who convinced them to engage in sexual chats and exchange sexually explicit images.

At the time he committed these offenses, Traband was a registered sex offender, having previously been convicted in Delaware County of child pornography offenses. He was also under court supervision.

The case was referred to the Federal Bureau of Investigation, and Traband was ultimately indicted and convicted of distributing and attempting to distribute child pornography and possession of child pornography.

“Traband’s days of exploiting and victimizing children online are over,” said First Assistant U.S. Attorney Williams. “Child sexual exploitation is appallingly pervasive, and exacerbated by the easy availability of digital media and communications. This case serves as a message to all adults who care for children: please monitor what they do online. And as always, we stand ready with our federal partners to identify and prosecute these criminals.”

“Child exploitation is among the most heinous crimes we investigate. As a result of our partnership with the Criminal Investigation Division of the Delaware County District Attorney’s Office, this unrepentant predator will no longer be able to harm children,” said Michael T. Harpster, special agent in charge of the Philadelphia Division. “The FBI and its law enforcement partners will never stop working to hunt down child predators and deliver justice on behalf of their victims.”

This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Federal Bureau of Investigation, the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Rotella.

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Montgomery County physician Spiro Y. Kassis, M.D., of Plymouth Township, PA, has agreed to pay $1.4 million, has committed to never obtaining a controlled substance registration, and has consented to a 15-year exclusion from Medicare and Medicaid in order to resolve allegations that he improperly prescribed Schedule II controlled substances to patients between July 1, 2014 and February 14, 2017. This civil settlement is announced after Kassis already pled guilty to criminal charges for illegal distribution of controlled substances and awaits sentencing.

The settlement resolves allegations that Kassis wrote improper Schedule II prescriptions, including opioids, for his patients when those prescriptions had no legitimate medical purpose and were not issued in the usual course of professional practice. In addition, it resolves allegations that Kassis deposited and commingled the proceeds from the sale of improper Schedule II prescriptions into various bank accounts.

Kassis has already pled guilty to 14 counts of illegal distribution of controlled substances in a related criminal case, for which he is scheduled to be sentenced in January 2020. Kassis claimed to be a specialist in psychiatry and addiction medicine, and operated medical offices in East Norriton Township, PA and Scranton, PA. He used his offices to operate a prescription “pill mill,” whereby he sold medically unnecessary prescriptions for opioids such as oxycodone. Kassis sold prescriptions to so-called patients for approximately $200 cash each. At the East Norriton office, he saw approximately 45 “patients” per day. As each person came in, he collected $200 cash from the patient, counted the money, and then issued the requested prescriptions electronically to the patient’s pharmacy. Often, Kassis issued dangerous combinations of prescriptions including oxycodone, methadone, and buprenorphine, all to the same patient.

“This settlement illustrates my Office’s dedication to ensuring that physicians who engage in illegal distribution of opioids and other controlled substances are held accountable using all of our enforcement tools, including powerful civil ones,” said U.S. Attorney McSwain. “This case is an excellent example of how collaboration between our civil and criminal divisions, as well as our federal and local law enforcement partners, can lead to just results. We will continue our aggressive pursuit of doctors who violate their duties and break the law by engaging in illegal opioid prescribing.”

“Dr. Kassis pleaded guilty to numerous federal drug distribution charges for his illegal distribution of oxycodone over a several-year period. In addition to his pending sentencing on these charges, Dr. Kassis has agreed to pay a significant settlement that represents the money he made from his illegal activities,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Doctors that seek to betray their professional oath and engage in this type of illegal activity will be subject to both criminal charges and significant civil penalties.”

“Settlements like these are critical to ensure that doctors writing improper opioid prescriptions reimbursed by Medicare and Medicaid are held responsible for their misconduct and barred from participating in these programs for a substantial number of years,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG will continue to work with the U.S. Attorney’s Office’s Civil Division and our other law enforcement partners to ensure the integrity of the Medicare and Medicaid programs.”

“This case began as part of a larger effort to investigate a number of pill-pushing doctors in Montgomery County. This doctor, Kassis, who had taken an oath to do no harm, was in fact keeping those suffering from substance abuse addicted and in danger of overdosing through his actions, all for monetary gain,” said Montgomery County District Attorney Kevin R. Steele.

The case was investigated by the Drug Enforcement Administration; Federal Bureau of Investigation; U.S. Department of Health and Human Services – Office of Inspector General; and Montgomery County Detective Bureau’s Narcotics Enforcement Team. The civil investigation and settlement were 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 and Special Assistant United States Attorney James Price, who was cross-designated by the Montgomery County District Attorney for the prosecution.

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

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that John Krasley, 51, of Kutztown, PA, was convicted at trial of distributing, transporting, receiving and accessing child pornography after a week-long trial in Easton, PA.

Between March of 2013 and June of 2018, the defendant used various websites to access and share password-protected child pornography files on an almost daily basis. On six separate occasions, Krasley granted access to folders containing child pornography to undercover law enforcement officers. In addition, using electronic surveillance, agents identified further instances of child pornography access and distribution. All of these incidents occurred using the password-protected internet connection at Krasley’s residence in Kutztown.

“Krasley’s years-long history of exploiting the victimization of children online are over,” said First Assistant U.S. Attorney Williams. “Child sexual exploitation is appallingly pervasive, and exacerbated by the easy availability of digital media and communications. Further, the ability to hide this type of activity online can make these cases even more difficult to investigate and prosecute. As always, we stand ready with our federal partners to identify and prosecute these criminals.”

“Child exploitation investigations continue to be one of HSI’s highest investigative priorities,” said Marlon Miller, special agent in charge of HSI Philadelphia. “Crimes against children impact all of us and have far reaching consequences. HSI will continue working with our federal, state and local partners to identify arrest and prosecute anyone who trades in this vile material.”

This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Albert S. Glenn.

PHILADELPHIA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced that Anthony Hall, 45, of Philadelphia, PA was convicted of conspiracy to distribute PCP and other substantive drug charges following a trial which lasted a week and a half.

The defendant was a member of a large drug trafficking organization (DTO) which sold the drug PCP in bulk on the streets of Philadelphia for at least six months in 2015. After a lengthy investigation, evidence presented at trial showed that the DTO utilized a property on North Broad Street, just blocks from Temple University, from which it ran a 24/7 operation using numerous distributors in the immediate vicinity.

The investigation and prosecution of this DTO dates back years. Members of the DTO were originally indicted in 2015 under the caption United States v. Nayeem Gordon, et al. Thereafter, the grand jury returned a Superseding Indictment with additional drug trafficking charges against a total of fourteen defendants in 2019. After most of those defendants pled guilty, defendant Hall was the lone member of the group to go to trial.

“Hall and other members of this drug organization pumped huge quantities of a highly toxic, hallucinogenic, and often deadly drug into our community,” said First Assistant U.S. Attorney Williams. “Drug trafficking delivers destruction to our communities. As is evident by the many years spent prosecuting this case, our Office is determined to investigate and convict these criminals, and put them behind bars.”

Hall faces a significant sentence in excess of the mandatory minimum under federal sentencing guidelines.

The case was investigated by the Drug Enforcement Administration with assistance from the Pennsylvania Attorney General’s Gun Violence Task Force and is being prosecuted by Assistant United States Attorneys MaryTeresa Soltis and Anthony Wzorek.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Linda Paolini, 44, of Philadelphia, PA, pleaded guilty today before United States District Judge Nitza I. Quiñones Alejandro to two counts of manufacturing and attempted manufacturing of child pornography, and one count of online enticement of a minor.

The charges arise out of a telephone tip received by the FBI about Paolini, who was pretending to be an underage girl for the purpose of luring underage boys online. The defendant communicated through Instagram with one particular boy, soliciting him for videos of himself masturbating. She and her victim exchanged over 50,000 Instagram messages over the course of a few months, including explicit and sexually charged chats.

“Paolini’s conduct is reprehensible, and her days of exploiting and victimizing children online are over,” said First Assistant U.S. Attorney Williams. “Child sexual exploitation is appallingly pervasive, and exacerbated by the easy availability of digital media and communications. This case serves as a message to all adults who care for children: please monitor what they do online. And as always, we stand ready with our federal partners to identify and prosecute these criminals.”

Paolini faces life imprisonment, with a mandatory minimum of at least 15 years, a mandatory term of at least 5 years but up to a lifetime of supervised release, a $750,000 fine, and $15,300 in special assessments.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi.

CHESTER, PA – William M. McSwain, United States Attorney for the Eastern District of Pennsylvania; Michael Harpster, Special Agent in Charge of the Federal Bureau of Investigation-Philadelphia Office; Jonathan Wilson, Special Agent in Charge of the Drug Enforcement Administration-Philadelphia Field Division; and Katayoun Copeland, District Attorney of Delaware County, jointly announced today the unsealing of two parallel Indictments charging 22 individuals with drug trafficking and firearms offenses.  The defendants are alleged to be members of rival drug trafficking groups (DTGs) operating next to each other in territories occupying the west side of Chester.  The two rival groups are the “3rd Bone” (or “3BM”) DTG and the “William Penn” (“the Pen” or “Ject Boyz”) DTG.

The Indictments announced today arose out of a multi-year joint investigation involving the United States Attorney’s Office, FBI, DEA, Chester City Police, and the Delaware County District Attorney’s Office.  In describing the facts in the Indictments during a press conference at the Chester Police Department, U.S. Attorney McSwain noted the havoc and terror allegedly caused by these groups on the streets of Chester.

The details of each Indictment, both unsealed this morning, are provided below.

United States v. Deshaun Davis et al., Criminal No. 19-636, is a 70-count Indictment involving the 3rd Bone DTG.  The Indictment charges conspiracy to distribute crack, cocaine, fentanyl, and heroin (one count); distribution and possession with intent to distribute controlled substances (57 counts); unlawful use of a communications facility in furtherance of a drug felony (five counts); possession of a firearm in furtherance of a drug trafficking crime (three counts); felon in possession of a firearm (two counts); and aiding and abetting.  The following 13 individuals, all allegedly part of the 3rd Bone DTG, are named in the Indictment:

• Deshaun Davis, 34, of Chester;
• Dwayne Butler, 25, of Chester;
• Tyleel Scott-Harper, 23, of Chester;
• Brandon Scott-Harper, 20, of Chester;
• Michael Wright, 20, of Chester;
• Isiah Jenifer, 22, of Chester;
• Frederick Rochester, 27, of Chester;
• Jamel Covington, 29, of Chester;
• Johvon Covington, 30, of Chester;
• Derrick Cooper, 25, of Upland;
• Frederick Donaldson, 25, of Chester;
• Perley Mack, Jr., 24, of Marcus Hook; and
• Shahaad Sterling, 21, of Chester. 

United States v. Issac Barrett et al., Criminal No. 19-567, is a 19-count Superseding Indictment involving the William Penn DTG.  The Superseding Indictment charges conspiracy to distribute crack, cocaine, and heroin (one count); distribution and possession with intent to distribute crack and cocaine (12 counts); possession with intent to distribute crack (two counts); possession of a firearm in furtherance of a drug trafficking crime (two counts); and felon in possession of a firearm (two counts).  The following nine individuals, all allegedly part of the William Penn drug trafficking group, are named in the Superseding Indictment:

• Issac Barrett, 33, of Essington;
• Kaleaf Gilbert, 27, of Chester;
• Darnell Bell, 29, of Chester;
• Terrence Womack, 32, of Chester;
• Brennen Lane, 31, of Chester;
• Dion Kattes, 21, of Chester;
• Saequan Womack, 26, of Chester;
• Jamar Bright, 31, of Chester; and
• Kevin Nichols, 57, of Chester.

The dual Indictments allege that the 3rd Bone and William Penn DTGs controlled adjacent drug territories in the western part of Chester.  The 3rd Bone DTG’s drug operations were centered in the area of 3rd and Lamokin Streets, while the William Penn DTG controlled the drug territory surrounding the Chester Housing Authority’s William Penn Homes. 

As alleged in the Indictments, both groups distributed drugs—mainly crack cocaine—to customers in their respective territories, and both groups defended their respective drug territories with armed violence.  This brought them into regular conflict with each other.  The Indictments describe several shootings and other acts of violence carried out between members of the two groups.  For example, the Barrett Superseding Indictment alleges that 3rd Bone and William Penn DTG members were involved in an exchange of gunfire on February 21, 2019, in the 700 block of 2nd Street in Chester.  After the shooting, the Indictment alleges William Penn DTG members Issac Barrett and Kaleaf Gilbert discussed the incident on the telephone and the two men agreed that one of the victims injured in the shooting “deserve[d] it” for “tr[ying] to hit” Gilbert.  Barrett also is accused of putting a $15,000 bounty on the head of one of the rival DTG members that he believed was involved in the shooting.

“As alleged in the Indictments, these two groups have terrorized the Chester community for years with their drug dealing and associated violence.  Today, their reign of terror ends,” said U.S. Attorney McSwain.  “Both of these Indictments represent the culmination of years of dedicated investigative work and collaboration among federal and local law enforcement agencies.  We are strongest by working together and we are committed to improving and protecting the quality of life of the law-abiding residents of Chester, who deserve to live and work in peace.” 

“Predatory violent drug gangs like 3rd Bone and the Ject Boyz prey on members of their own communities,” said FBI Special Agent in Charge Harpster.  “Today’s Indictments resulted from a long term, multi-agency investigation, and the charges send a message to gang members that the FBI and its law enforcement partners will never stop working to make our communities safer and free from violent crime.”

“The individuals that were indicted and arrested today terrorized the residents of Chester through their alleged drug-trafficking activities and acts of violence, to include shootings, to further and expand their criminal activities,” said DEA Special Agent in Charge Wilson. “These are dangerous people that were arrested today.  The DEA, working with partner federal, state, and local law enforcement agencies, will continue to work together to identify the drug-trafficking organizations that pose the greatest threat to our communities.”

“My Office is committed to making the streets of Chester safe from drug trafficking and related violence,” said District Attorney Copeland.  “Every resident deserves the right to walk their children to school or commute to work without fear.  I am grateful to continue my Office’s good work and collaboration with U.S. Attorney McSwain, the FBI, the DEA, and all of our federal, state, and local partners to assure the safety of everyone in our community.”

If convicted, each of the defendants faces at least 20 years of potential imprisonment. Several of the senior members of the two groups, including Davis, Butler, Barrett, and Gilbert, face potential life sentences.

The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Chester Police Department Narcotics Unit, with assistance from the Delaware County District Attorney’s Office, the Delaware County Drug Task Force, the U.S. Marshals Task Force, the Pennsylvania State Police, the Delaware County Sheriff’s Office, the Chester Township Police Department, the Ridley Township Police Department, and the Sharon Hill Police Department.  It is being prosecuted by Assistant United States Attorney Sean McDonnell.

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 Rohan Maxwell, 45, of Allentown, Pennsylvania today entered a plea of guilty to one count of illegally re-entering the United States after deportation and one count of passport fraud before United States District Judge J. Curtis Joyner.

Maxwell was charged in August 2019 by Superseding Indictment with illegal re-entry after deportation and passport fraud, whereby having been deported to his native Jamaica on three separate occasions in 1997, 1999, and 2004, he submitted an application for a United States passport in 2011 using the identity of another person. The defendant was found in the United States in Lehigh County in July 2019.

“To state the obvious, those who enter our country illegally are not above the law – nobody is,” said U.S. Attorney McSwain. “By his actions, Maxwell has demonstrated a blatant disrespect for our nation’s laws. Not only did he flout our immigration laws, but also he committed an additional fraud to obtain a U.S. passport. We will continue to work with our law enforcement partners to uphold the rule of law and ensure our nation’s immigration laws are enforced.”

The case was investigated by the Diplomatic Security Service and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.

PHILADELPHIA – United States Attorney William M. McSwain announced that Evan Burgess, 28, of Blue Bell, Pennsylvania was sentenced to 78 months’ imprisonment followed by fifteen years of supervised release by the United States District Judge Timothy J. Savage.  The defendant will be required to register as a sex offender as a result of this conviction.

The defendant, a former karate instructor at Destolfo’s Premier Martial Arts in Conshohocken, previously pleaded guilty in June 2019 to two counts of traveling in interstate commerce to engage in illicit sexual conduct with two minors, who were his teenage karate students at the time of the incidents.  These incidents occurred while the defendant and his victims were attending karate tournaments in August 2016 in National Harbor, Maryland and in September 2014 in East Elmhurst, New York.

“Burgess took advantage of his position of trust as an instructor of young men to abuse them – sometimes brazenly while other adults were in the room or nearby,” said U.S. Attorney McSwain.  “Child abuse and exploitation are heinous crimes which my Office takes very seriously.  Burgess will now pay for his crimes behind bars where he belongs.”

The case was investigated by the FBI and Whitpain Township Police, and is being prosecuted by Assistant United States Attorney Kelly Harrell.

READING, PA – United States Attorney William M. McSwain and Berks County District Attorney John T. Adams announced that ten individuals from Reading were charged by a Second Superseding Indictment with murder, kidnapping, drug distribution, and firearms offenses. At a press conference at the District Attorney’s Office, U.S. Attorney McSwain noted that these charges come about seven months after six of the same individuals were initially indicted on drug distribution and firearms offenses as part of a drug trafficking organization known as “Trinidad” operating in and around Reading. The additional offenses announced today relate to multiple homicides and kidnappings that occurred in 2017 and 2018, including a quadruple homicide that occurred on January 28, 2018.

The ten charged individuals are:

• Jesus Feliciano-Trinidad, a/k/a “Chewy,” a/k/a “Che,” 29;
• Yomar Velazquez-Figueroa, a/k/a “Negrito,” 21;
• Fitzgerald Daliot-Rios, a/k/a “Barber,” 29;
• Mariela Alvarado, a/k/a “Onyx,” 38;
• Dewayne Quinones, a/k/a “Hombre,” 25;
• Owen Malave-Medina, 22;
• Pedro Sanchez-Laporte, a/k/a “Javi,” 28;
• Lillian Garcia-Ortiz, a/k/a “Lilly,” 20;
• Angel Rivera-Silva, a/k/a “Estrellita,” 41; and
• Mayco Alvarez-Jackson, a/k/a “Pipon,” 22.
   

The charges stem from a years’ long investigation into the receipt, processing, and distribution of methamphetamine, heroin, fentanyl, cocaine, and crack cocaine by the defendants from June 2017 until March 21, 2018.  The defendants are accused of using a number of buildings, residences, firearms and acts of violence to further their drug dealing efforts in and around the Reading area. 

Included within the allegations of the Second Superseding Indictment are events in which various defendants conspired to shoot and kill Miguel Reyes on December 13, 2017; kidnap, shoot, and kill Hector Gonzalez-Rivera on January 24, 2018; and shoot and kill Jarlyn Lantigua-Tejada, Juan Rodriguez, Nelson Onofre, and Joshua Santos on January 28, 2018. The Second Superseding Indictment also alleges various defendants in this drug trafficking group conspired to shoot individuals on February 25, 2018 and February 26, 2018, and then conspired to commit another kidnapping on February 27, 2018. 

“This has been a complex, ongoing investigation since I was here in Reading in March 2019 to announce the original charges against some of these same defendants,” said U.S. Attorney McSwain. “The current defendants now face some of the most serious, violent charges that exist under federal law. I want to commend District Attorney Adams for the strong partnership that exists between our Offices that made these charges possible. My Office is committed to working with the Berks County District Attorney’s Office and all of our federal, state, and local law enforcement partners to destroy violent drug gangs and keep the Reading community safe.”

“As charged, this organization created mayhem in the City of Reading,” said District Attorney Adams. “Through the cooperative efforts of my Office, the Reading Police and many of our Municipal, State and Federal partners, we have now dismantled a violent drug trafficking organization.”

“Violent drug gangs destroy communities,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “This superseding indictment sends the message that the FBI and our local law enforcement partners will never stop working to make our communities safer and free from violent crime.”

If convicted, defendants Feliciano-Trinidad, Velazquez-Figueroa, Daliot-Rios, Quinones, Sanchez-Laporte, Rivera-Silva, and Alvarez-Jackson face death eligible offenses.

If convicted, defendants Alvarado and Malave-Medina face up to life imprisonment. 

If convicted, defendant Garcia-Ortiz faces up to 40 years imprisonment.

The case was investigated by the Federal Bureau of Investigation, the Berks County District Attorney’s Office, the Berks County Detectives, and the Reading Police Department, with assistance from the Pennsylvania State Police and the Montgomery County Detectives, and is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein and Special Assistant United States Attorney Rosalynda M. Michetti.

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 Fred Arena, 41, of Salem, New Jersey was arrested this morning and charged by Indictment with making false statements to government agents. The Indictment alleges that the defendant, who is an employee at the Philadelphia Navy Yard and as such is required to obtain a security clearance, lied to obtain the clearance. He also subsequently lied to federal investigators who asked him about his answers to questions on the security clearance paperwork.

According to the Indictment, on January 10, 2019, Arena completed the standard Form SF-86 to obtain a security clearance for his employment. On that form, he was required to disclose whether he had ever been a member of an organization that used, or advocated the use of, force or violence to prevent others from exercising their constitutional rights. He falsely answered that he had not. In fact, Arena was an avowed member of Vanguard America, a white supremacist group that fits that description. On the same application, Arena was asked whether he had property repossessed within the past seven years. He falsely answered that he had not. In fact, Arena had previously defaulted on a car loan, and his car was repossessed within the seven year window.

“Lying on federal security clearance forms and to government agents will land you in big trouble,” said U.S. Attorney McSwain. “Further, the nature of the defendant’s alleged lies – attempting to conceal his affiliation with a white supremacist group in order to obtain federal employment – is extremely disturbing. I want to thank all of our law enforcement partners in New Jersey and Pennsylvania for their excellent work on this investigation.”

“Members of groups that sponsor hate and bias-motivated violence have no place in government employment,” said U.S. Attorney for the District of New Jersey Craig Carpenito. “Knowing this, the defendant in this case, a New Jersey resident, lied to conceal his membership in a white supremacist organization. We are proud to join our colleagues from the Eastern District of Pennsylvania in prosecuting him for those lies.”

“Membership in a group espousing extremist ideology is not itself illegal — but lying to the FBI is,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “If the people we interview feel they can deceive us with impunity, critical investigations will be compromised, threatening the very integrity of the justice system. Arena lied about his history in order to obtain a security clearance he should not have had, and he lied to federal agents questioning him. These charges are the consequences of his actions.”

If convicted, the defendant faces a maximum possible sentence of 25 years’ imprisonment, three years’ supervised release, and a $1,250,000 fine.

The case was investigated by the Federal Bureau of Investigation – Joint Terrorism Task Force, the Gloucester County Prosecutor’s Office, the Salem County Prosecutor’s Office, the New Jersey State Police and the Naval Criminal Investigative Service (NCIS), with assistance from the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney for the Eastern District of Pennsylvania Joseph LaBar and Assistant United States Attorney for the District of New Jersey Martha Nye.

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

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Gary Frank, 48, of Philadelphia and Bala Cynwyd, PA, was sentenced to 210 months’ imprisonment, five years supervised release and ordered to pay $33,702,900 in restitution by United States District Judge Gerald Pappert for executing a massive fraudulent loan scheme, for which he was indicted in March 2018 on charges of wire fraud, bankruptcy fraud, and money laundering, and to which he subsequently pleaded guilty in April 2019. Immediately following the sentencing hearing, the defendant was taken into custody to begin serving his jail sentence.

For over a decade, the defendant executed a complex and sophisticated scheme to defraud numerous victims. Frank owned and operated a Bala Cynwyd business named the Legal Coverage Group, Ltd., which contracted with employers desiring to offer a legal plan to their employees as part of their benefits plans. Frank tricked his victims into believing that the Legal Coverage Group was a rapidly growing leader in the legal services industry, generating hundreds of millions of dollars of annual revenue and employing hundreds of individuals. In reality, Frank’s business experienced virtually no growth from approximately 2006 through 2017, and generated only several thousand dollars of annual revenue.

Through this fraud, the defendant obtained over $30 million in loans, which he used to live an extravagant lifestyle, including finagling his way into the cultural scene in Philadelphia with positions on the boards of the Philadelphia Orchestra and the Philly Pops. The defendant’s largest victims were banks and financial institutions, which loaned the Legal Coverage Group millions of dollars based upon the defendant’s lies. The defendant also allegedly deceived many individuals and other entities, including several of his close friends, his company’s staff members, its advisors, customers, vendors, and local charities.

“Gary Frank is nothing but a con man and now he’s where he belongs – in a prison cell. And he will be there for a very long time,” said U.S. Attorney McSwain. “His greed and his lies were bound to catch up with him, and they did. My Office will continue to work aggressively with our law enforcement partners to protect innocent individuals and businesses from being victimized by financial fraud.”

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Patrick J. Murray.

PHILADELPHIA – United States Attorney William M. McSwain announced that Suudimon Washington, 33, of Harrisburg, PA, was sentenced to 100 months’ incarceration, three years’ supervised release, and ordered to pay a $2,000 fine and $200 restitution by United States District Judge Edward G. Smith for a violent carjacking in Lancaster on October 12, 2018.

The defendant approached an 85-year-old man in Lancaster City, brandished a knife and demanded the victim’s keys. Washington then ordered the victim to open the door to the car and climb into the passenger seat. After he drove the victim for several miles through the Lancaster area, he dropped the victim off at a campground in Lancaster County. Later that evening, the defendant was observed driving the victim’s vehicle in West Philadelphia. Philadelphia Police Department officers conducted a traffic stop and arrested the defendant. In May 2019, Washington pled guilty to one count of carjacking.

“When a defendant in a high-profile violent crime case such as this is brought to justice and put behind bars, it brings a sense of relief to the community,” said U.S. Attorney McSwain. “And when a particularly vulnerable person is targeted – like children, the disabled or the elderly – it puts us all on edge. Thanks to the work of our investigative partners, Mr. Washington is in prison where he belongs.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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

PHILADELPHIA – United States Attorney William M. McSwain announced that Daquan Jones, 28, of Wilkes-Barre, Pennsylvania, charged in by Indictment which was unsealed today with conspiracy to pass more than $75,000 in counterfeit $100 bills to numerous retail stores across Pennsylvania and elsewhere.

The Indictment alleges that Jones manufactured the counterfeit $100 bills at his home in Wilkes-Barre, and then employed numerous co-conspirators to pass the counterfeit notes to retail stores across the Commonwealth, including in Berks County, Delaware County, Centre County and Blair County. These co-conspirators, charged elsewhere, are alleged to have used the counterfeit $100 bills to purchase retail items in order to receive legitimate U.S. currency as change, which the co-conspirators would return to Jones along with the purchased items. The indictment alleges the conspiracy spanned from June of 2018 until June of 2019.

“Criminal counterfeiting of U.S. currency is a serious crime,” said U.S. Attorney McSwain.  “Indeed, it is a slap in the face to everyone who puts in an honest day’s work to earn their money.  This indictment sends a clear message that we take this type of fraud very seriously and we will pursue it to the fullest extent of the law.”

“The U.S. Secret Service was originally founded to combat counterfeit currency and remains one of our core missions today.  The results of this investigation should serve as a reminder that the Secret Service will aggressively investigate and seek prosecution of those considering manufacturing counterfeit U.S. currency to defraud the citizens and businesses of Pennsylvania.”

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

The case was investigated by the United States Secret Service, and is being prosecuted by Assistant United States Attorney Matthew T. Newcomer.

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 Imad Dawara, 39, of Swathmore, PA and Bahaa Dawara, 31, of Woodlyn, PA, who are brothers originally from Syria but now American citizens, were arrested and charged by Indictment on October 16, 2019. During a news conference held today, U.S. Attorney McSwain announced that his Office had unsealed the 10-count Indictment charging the defendants with planning and causing the arson of their business, RCL Management LLC, at 239-241 Chestnut Street in Philadelphia on February 18, 2018 in order to receive insurance proceeds from the destruction.

Specifically, the defendants have been charged with one count of conspiracy to commit arson, one count of conspiracy to use fire to commit a federal felony, one count of malicious damage by means of fire of a building used in interstate commerce, one count of using fire to commit a federal felony, four counts of wire fraud, and two counts of mail fraud. The defendants were arrested yesterday evening at Philadelphia International Airport and are scheduled to appear in U.S. Magistrate Court before Chief Magistrate Judge Linda K. Caracappa at 1:30pm today.

The Indictment alleges that from around December 2012 until February 18, 2018, the defendants owned and operated various restaurants and entertainment establishments in Philadelphia, including a restaurant and hookah lounge at 239-241 Chestnut Street. As the charges lay out, the Dawara brothers were struggling in their Chestnut Street business and had a history of fighting with their landlord. By October 2015, the landlord sent the Dawara brothers a Notice of Default and Breach of Lease, citing numerous violations which included 26 citations from the Pennsylvania State Police Bureau of Liquor Control Enforcement. In response, the charges note that Imad Dawara threatened the landlord that he would destroy the place if the landlord attempted to evict the brothers from the premises.

In November 2015, the Court of Common Pleas of Philadelphia County prohibited the defendants from engaging the services of a disc jockey, providing live entertainment, and allowing the use of tobacco products (including hookah) on the premises unless they had the proper permits. Also in November 2015, their landlord sent the defendants a Notice of Intent to terminate their lease. By October 2017, the Dawara brothers had ceased all business operations for RCL Management at 239-241 Chestnut Street. The brothers attempted to sell their business, but as they had failed to renew their lease or pay rent, no one would buy it. On January 31, 2018, their landlord directed the defendants to vacate the premises by February 2, 2018 and advised the defendants that they owed over $64,000 in overdue payments.

On the same day that the defendants were ordered to vacate the premises, the Indictment alleges that despite no longer doing any business at that location, Imad Dawara contacted an insurance broker to inquire about purchasing insurance for 239-241 Chestnut Street. The Dawara brothers had not held an insurance policy on their business at the Chestnut Street location for over a year, but 16 days before the fire, Imad Dawara purchased insurance. In obtaining this new insurance policy, the charges allege that Imad Dawara asked the insurance broker repeatedly how he would be paid “if there was a fire.” The insurance policy purchased on February 2, 2018 provided coverage in the event of an accidental fire at 239-41 Chestnut Street in the amount of $750,000, which consisted of $500,000 for property damage and $250,000 for business interruption.

On February 18, 2018, at approximately 3:11am, the Indictment alleges that a fire was intentionally started with gasoline in the basement of 239 Chestnut Street, which destroyed the entire building, displaced approximately 160 people – some of whom have never been able to return – closed the 200 block of Chestnut Street for months, and closed numerous businesses, including The Best Western, The Little Lion, Gina’s 45, and Capofitto Pizza & Gelato.

According to the Indictment, both Dawara brothers lied under oath about their whereabouts and activities on the night of the arson. Imad Dawara remained in the office at another business he owns (the B-Side Complex located at 939 N. Delaware Avenue in Philadelphia), while defendant Bahaa Dawara traveled to 239 Chestnut Street to start the fire in the basement.

“No one in Old City will forget when this arson lit up the night sky,” said U.S. Attorney McSwain. “This impacted the heart of our nation’s most historic square mile, which includes Independence Hall and the Liberty Bell Pavilion just blocks away. Many people’s lives were permanently altered, losing their homes and livelihoods. If not for the heroism of the Philadelphia Fire Department, the devastation from that night would have been unthinkable. The City is forever in their debt.”

“Acts of arson are violent crimes that threaten the community. ATF is committed to keeping the public safe from those who maliciously set these fires,” said Special Agent in Charge Donald Robinson. “We appreciate the dedication of the Arson and Explosives Task Force, which includes ATF, the Philadelphia Fire Marshal’s Office, and the Philadelphia Police and Fire Department personnel, who all worked tirelessly from the early morning hours of the arson on February 18, 2018, through the Indictment of the Dawara brothers and right up to yesterday’s arrests. These investigators will continue to tirelessly work this investigation in order to provide justice for the victims, and to hold those who are responsible, accountable for their actions. I would also like to thank the Department of Homeland Security and the United States Customs and Border Protection for their assistance with the arrests at the Philadelphia International Airport, along with the Taxi and Limousine Enforcement Division of the Philadelphia Parking Authority for their assistance.”

If convicted, the defendants face a maximum possible sentence of 20 years’ imprisonment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Philadelphia, the Philadelphia Fire Marshal, and the Philadelphia Police Department, with assistance from the Philadelphia Parking Authority Taxi and Limousine Division, and is being prosecuted by Assistant United States Attorney Jeanine Linehan.

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

PHILADELPHIA - U.S. Attorney William M. McSwain announced that Peter Goodchild, 56, of Philadelphia, PA, was sentenced 102 months’ incarceration and ordered to pay $1,589,315 restitution by United States District Judge Gerald A. McHugh for his scheme to embezzle that amount from his former employer, QwikSource, over a ten-year period from 2005 until 2015. The defendant was convicted by a jury in April 2019 on 48 counts of wire fraud, 10 counts of money laundering, one count of aggravated identity theft and six counts of filing false income tax returns.

As the former bookkeeper for QwikSource LLC/GMI Technical Sales LLC of Florham Park, NJ, the defendant operated his scheme by opening a PayPal account using his employer’s name, transfering funds from QwikSource’s bank account to that PayPal account, moving the funds from that PayPal account to another PayPal account belonging to his girlfriend, and then moving the funds from his girlfriend’s PayPal account to one or more of his personal bank accounts. The defendant further concealed the embezzlement by making false financial entries on files he maintained for QwikSource that increased the cost of goods sold by the same amount of money that he had stolen from QwikSource’s bank account.

“My Office takes offenses like embezzlement, tax fraud and money laundering very seriously,” said U.S. Attorney McSwain. “The defendant stole more than a million and a half dollars by abusing his position of trust. My Office will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by this type of fraud.”

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Anita Eve.

PHILADELPHIA – United States Attorney William M. McSwain announced that Bakary Camara, 32, of Philadelphia, Pennsylvania, was sentenced to 70 months’ incarceration and three years’ supervised release by United States District Judge John R. Padova for his scheme to produce fake Pennsylvania identification documents by bribing a state official. In February 2019, a jury convicted Camara of numerous charges, including conspiracy to unlawfully produce identification documents, bribery of an agent from the Pennsylvania Department of Transportation (PennDOT), misuse of a social security number, and aggravated identity theft.

According to evidence presented at trial, Camara bribed a PennDOT agent with cash payments in exchange for the issuance of driver’s licenses to dozens of foreign nationals who failed to take the required tests and failed to provide proof of residency. Some who received their license through Camara were new to the country, could not speak English, and were unfamiliar with the process of obtaining a driver’s license, while others could not pass the PennDOT knowledge or road tests. In particular, Camara fraudulently used another person’s social security number on proof of residency documents in an attempt to make it appear that two New York residents were residents of Pennsylvania.

Camara’s co-conspirator, the PennDOT agent, entered false information into the PennDOT system stating the individuals passed the required tests and met the residency requirements when they had not. The PennDOT agent then unlawfully issued driver’s licenses to those individuals. The scheme ran from at least April 2014 through May 2015. During that time, Camara unlawfully assisted at least 30 immigrants in obtaining Pennsylvania learner’s permits and driver’s licenses. Camara charged these individuals $300 to $7,000 for each Pennsylvania driver’s license. Camara provided the PennDOT official at least $5,100 in bribes.

“This kind of bribery and fraud is atrocious and an affront to public safety,” said U.S. Attorney McSwain. “Government-issued identification should never be procured by fraud, but to provide fraudulent driver’s licenses to those who should not be operating a vehicle on our roads is incredibly dangerous. We will aggressively investigate and root out this type of unconscionable behavior.”

The case was investigated by the Department of Homeland Security, the Social Security Administration, Office of Inspector General, and Pennsylvania Department of Transportation. The case is being prosecuted by Assistant United States Attorney Tiwana Wright.

PHILADELPHIA – United States Attorney William M. McSwain announced that George Alexander, 28, of Philadelphia, Pennsylvania, was sentenced to 21 months’ incarceration, 12 months’ home confinement and five years’ supervised release by United States District Judge Jan. E. DuBois for violating Megan’s Law. Under Megan’s Law, also known as the Sex Offender Registration and Notification Act (SORNA), sex offenders are required to register their home, work, and school addresses with state law enforcement, so that individuals can search a database and be aware of convicted sex offenders living, working, or attending school in their neighborhood.

The defendant was convicted of sexual contact with a minor in 2018 and incarcerated. He registered a Philadelphia address upon his release from jail, but then moved away from that address within a month and never listed his new address. He was arrested in May 2019 in Vermont, more than nine months after leaving his registered Philadelphia address.

“The purpose of Megan’s Law is to provide the public with current information about the whereabouts of sex offenders in order to ensure public awareness and safety,” said U.S. Attorney McSwain. “If those offenders do not comply with the registration requirements, we will aggressively prosecute them for this failure so that the public receives the information that it deserves.”

“Parents have the right to know if a predator lives next door,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Megan’s Law was enacted in order to provide that information to the public and better protect children. Registered sexual offenders are required to keep their information up to date. Those who won’t need to know they’ll be swiftly held accountable.”

The case was investigated by the Federal Bureau of Investigation with the assistance of the United States Marshals Service and the Colchester, VT Police Department, and is being prosecuted by Assistant United States Attorney Nancy Rue.

PITTSBURGH - A resident of Pittsburgh pleaded guilty in federal court to a charge of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.

Tyree Jrevae Booker, age 41, pleaded guilty to one count before Senior United States District Judge Nora Barry Fischer.

In connection with the guilty plea, the court was advised that on December 6, 2018, Booker possessed a Hi-Point pistol and ammunition, knowing that he had previously been convicted of crimes punishable for a term exceeding one year, including an August 14, 1996 conviction for voluntary manslaughter in the Allegheny County Court of Common Pleas. He also possessed quantities of crack cocaine, cocaine and methamphetamine with the intent to distribute those substances.

Judge Fischer scheduled sentencing for April 16, 2020 at 9:00 a.m. The law provides for a total sentence of not more than 30 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.

The Bureau of Alcohol, Tobacco and Firearms and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Booker. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Sharif Khalid, 42, of Willow Grove, PA was convicted at trial of possession of a machine gun.

According to the evidence presented at trial, in March 2018 Khalid knowingly possessed a firearm that was a fully automatic weapon, specifically an AR-57, and 50 live rounds of ammunition for that model rifle. The defendant was also charged with possession of a non-registered firearm, in his case, a machine gun that had been altered to fire fully automatic. The investigation began when at ATF agent received a report from the owner of a gun shop and range in Philadelphia that a customer was firing a fully automatic weapon at their firing range. ATF agents arrived at the gun shop, confronted the defendant and performed a field test on the rifle, determining that the weapon was fully automatic. Agents seized the rifle and through their investigative work found that the defendant is not registered to possess a firearm.

“By owning and firing this illegal weapon, the defendant endangered everyone in his midst,” said U.S. Attorney McSwain. “Thanks to our dedicated partners at ATF and our Office’s trial team, the defendant will no longer freely wander the streets with a dangerous, illegal weapon and will be held accountable for his crime.”

“ATF’s top priority is combating violent crime; one of the ways we accomplish that mission is by keeping firearms out of the hands of violent offenders,” said Donald Robinson, Special Agent in Charge, ATF Philadelphia Field Division. “This conviction is a perfect example of the collaborative effort between ATF and our partners at the United States Attorney’s Office in targeting violent offenders and protecting our communities.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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 defendant faces a maximum possible sentence of 20 years’ imprisonment, three years supervised release, a $500,000 fine and a $200 special assessment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Matt “Mack” Jones, 36, of Bensalem, PA was convicted at trial of heroin trafficking and gun charges following a four day trial.

In January 2018, New Jersey State Police, the Philadelphia DEA, and the Philadelphia Police Department began a joint investigation of the defendant and other co-conspirators. Officers learned that the defendant was a supplier of heroin, and that he supplied two female associates with bags of heroin and directed them to deliver the bags to customers in New Jersey and the Philadelphia area.

Investigators conducted several controlled buys of heroin from the defendant and his co-conspirators with the assistance of a cooperating witness at the Cherry Hill Mall in Cherry Hill, NJ and the Philadelphia Mills (formerly Franklin Mills) in Philadelphia, PA. Laboratory analysis of the seized material confirmed the presence of heroin mixed with fentanyl. In July 2018, officers searched the defendant’s home and found firearms, including a Colt .38 handgun and a 12 gauge shotgun, ammunition, half a kilogram of heroin, cocaine, marijuana, drug packaging paraphernalia and more than $100,000 cash.

“Jones and other members of this drug organization pumped huge quantities of deadly drugs into our community for years,” said U.S. Attorney McSwain. “Drug trafficking is an inherently dangerous business and the traffickers ultimately deliver destruction to our communities. Our office is determined to investigate and convict these criminals, and put them behind bars.”

Jones faces a potential sentence of 35 years’ to lifetime imprisonment under federal sentencing laws.

The case was investigated by Drug Enforcement Administration, the Philadelphia Police Department, the New Jersey State Police, the Bensalem Township Police, and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Frank Labor III.

PHILADELPHIA – On Saturday, October 5, 2019, United States Attorney William M. McSwain addressed members of law enforcement, the military, and civilian guests as the Law Enforcement Guest of Honor at the Marine Corps-Law Enforcement Foundation’s Philadelphia Gala. The annual event, held this year at the SugarHouse Casino, is a fundraiser to support the Foundation’s core mission: to provide scholarships to children who have lost a parent serving in the U.S. Marine Corps or federal law enforcement. Since its founding in 1995, MC-LEF has awarded over $76 million in educational awards and other humanitarian assistance to over 4,100 recipients.

* * *

Remarks as Prepared for Delivery

Thank you, Chief Inspector Boyle for that kind introduction and for your work as Vice President of the Pennsylvania Chapter of the Marine Corps-Law Enforcement Foundation (MCLEF).

There are a few other thank-yous that I would like to make at the outset. First, I want to thank the organizers of this wonderful Gala. In particular, I’d like to thank Kevin Cauley, both for inviting me to speak to this distinguished group of heroes and friends, and more importantly, for his continued support of law enforcement and the military. Our country needs more citizens like Kevin – people who appreciate the sacrifices that those serving in the military and in law enforcement make every day.

I’d like to thank our military guest of honor, General James T. Conway, the 34th Commandant of the Marine Corps: it is an honor to be with you this evening, General, though this is not the first time that our paths have crossed in a meaningful way to me. Back when I was a boot Second Lieutenant at Quantico, General Conway – or Colonel Conway at the time – was in command of The Basic School, which as many of you know is an arduous, six-month infantry training course for newly commissioned Second Lieutenants. Among these Lieutenants, it is known as TBS. Which either stands for The Basic School, or perhaps, depending on your mood at the time, “The Big Suck.”

Anyway, as a boot Second Lieutenant, I had the privilege of sitting next to General Conway at our TBS Mess Night. I actually had General Conway on my right, and General Christmas to my left. That’s pretty heady stuff for a Second Lieutenant. Sitting with those two great men, listening to their stories, absorbing their lessons, and seeing the way that they treated each other (and the way that they treated me) solidified my love for the Marine Corps in a way that has stayed with me for my whole life, and that will always be with me.

I also would like to express my gratitude this evening to the five brave Medal of Honor recipients who grace us with their presence: Barney Barnum (USMC); Brian Thacker (Army); Tom Kelley (Navy); Mike Thornton (Navy SEAL); and Tommy Norris (Navy SEAL, and retired FBI). Every American is indebted to you for your incredible fortitude, sacrifice, and valor.

Next, I want to thank and congratulate Tony McIntyre, founder of the McIntyre Group, for being selected to receive the Eagle Globe & Anchor Award tonight, and Quint Avenetti, Vice President, Combat Systems Development and Support at Navmar Applied Sciences Group, for receiving the Semper Fidelis Award. Both of these men have made extraordinary contributions to the Marine Corps-Law Enforcement Foundation’s cause, and tonight’s recognition is very well-deserved.

And my final thank you is, in many ways, the most important one: I would like to recognize and thank those in the audience tonight who have either served in the military or in law enforcement (or both, as is the case for many of you). Whether you served in the past or serve in the present, and whether you are a reservist or active duty, a police officer or a federal agent – you are the heroes among us. And you share the same purpose: to keep Americans safe and to ensure that we all can sleep peacefully at night. All Americans are indebted to you for your service. If everyone could please join me in a round of applause to thank our heroes.

There is much that is similar about military service and law enforcement service, so it comes as no surprise that likeminded individuals are drawn to this sort of work. There’s a natural bond between the military and law enforcement.

For one thing, to succeed, both jobs require discipline and mental and physical toughness. They both also rely on structure and a healthy respect for rules. That said, there’s also a good bit of uncertainty that comes with both lines of work. For example, when you volunteer for this life, there is often uncertainty about where you will be assigned or even what you will do; more poignantly, when you are on the job, you don’t know whether you will return home safely at the end of a shift or the end of the tour of duty. These parallels between the military and law enforcement bring me to three main points I would like to make this evening.

First, I believe those who serve in the military or in law enforcement share a set of core values that enable them to serve and protect others and preserve our American way of life. One of my favorite aspects of the job as U.S. Attorney is that I get to work side-by-side with our federal, state, and local law enforcement partners every day. I see, firsthand, how hard they work to do the right thing, to protect our communities, and to help victims of crime. And as I have said publicly, their jobs are made all the more difficult by a disturbing culture of disrespect for law enforcement in some circles in this City. This is unconscionable and despicable. But I make you this promise: as long as I’m the U.S. Attorney, I will use the full power of my Office for every minute of every day to stand with and stand up for the police and law enforcement. Because that is what you deserve.

It is the shared core values of the military and law enforcement – values like honor, courage, commitment, humility, integrity, resilience, and selflessness – that bind us together, and what makes this organization so special. You have embraced sacrifice as a way of life, not because it’s easy, but because you recognize the power and the good that comes from it. There is no greater calling than the one you have chosen in a life of service.

Second, while service to others requires personal sacrifice, the act of service also bestows great gifts to those who choose this path in life. That observation certainly holds true for me, both from my time as a Marine and my time in law enforcement. And when it comes to the Corps, I know that it has given me much more than I could ever give in return.

There is, first and foremost, the satisfaction that comes with committing yourself totally to something greater than yourself. But there are also practical, day-to-day gifts. Two that come to mind immediately are the lasting friendships and the lifelong lessons in leadership that I’ve received. I am at my happiest when I am with my Marine Corps brothers and sisters. I know that they would do anything for me, and I would do anything for them. Those friendships bring joy and meaning to my life.

And I can also say with certainty that my time in the Corps has influenced my career as a lawyer more than anything else. Whenever I come to a fork in the road and encounter a difficult decision in my civilian career, I always try to think back to what my Marine Corps commanders would expect of me – what would people like General Conway expect me to do? What can I do that is true to values that I learned in the Corps? What decision would that version of myself from long ago choose to make? In short, what would Lieutenant McSwain do?

I ask myself these questions and they give me clear answers. It isn’t always easy to do the right thing – especially in today’s complicated civilian world, with its attendant social and political pressures, the desire to be liked, the temptation to just go along to get along, and the natural human desire to do less, not more. I sometimes fail to meet the expectations of the Marine Corps. But I know what they are – and I know right from wrong. I draw strength from that. And I always will.

Which brings me to my final point. This evening’s event – a Gala to raise scholarship funds for the children of fallen military or law enforcement officers – is a microcosm of all that is good and pure about the people drawn to military and law enforcement service. We can never repay the debt that we owe to the fallen and their family members. And we cannot replace the void or take away the families’ pain. But what we can do is take care of the families and work tirelessly to make sure that the sacrifices that their loved ones made will never be forgotten. I am profoundly proud to be part of that everlasting cause.

May God bless you, and may God bless the United States of America. Thank you and Semper Fi.

PHILADELPHIA – United States Attorney William M. McSwain announced that Jeffrey Lyons, 58, of Lancaster, PA, Karen Connelly, 65, of Manheim, PA, and Judith Avilez, 58, of Elizabethtown, PA were all charged with bank fraud for their roles in defrauding Fulton Bank. Lyons and Connelly were charged by Information and Avilez was charged by Indictment.

The charging documents allege that between 2003 through May 15, 2018, Lyons, the former CEO of Worley & Obetz, and Worley & Obetz’s two controllers, Connelly and Avilez, defrauded Fulton Bank by fraudulently inflating Worley & Obetz’s revenue on its financial statements. Worley & Obetz was an oil and gas company in Manheim, PA, that provided home heating oil, gas, and propane to its customers. As a result of these and other alleged financial improprieties, the company has shut down and all employees lost their jobs.

To perpetuate the fraud, Connelly and Avilez created fraudulent Worley and Obetz financial statements to make the company appear to the bank that it had more revenue and accounts receivable than it did. Connelly was the Worley & Obetz controller from 2000 until she retired in December 2015. After Connelly retired, she and Lyons continued the fraud for approximately six months until Lyons asked Connelly to teach the scheme to Worley & Obetz’s new controller, Avilez.

Avilez’s Indictment alleges that after Connelly taught her how to commit the fraud, she knowingly continued the fraud with Lyons, falsifying Worley & Obetz’s financial statements. Lyons is also alleged to have altered a customer contract and provided the altered contract to Fulton Bank to support Worley & Obetz’s requests for more loans. The charging documents allege that the bank fraud scheme continued for at least 15 years. Fulton Bank relied on the fraudulent Worley & Obetz customer contract and the fraudulent Worley & Obetz financial statements created by Lyons, Connelly, and Avilez when it lent Worley & Obetz over $60 million.

The Information also charges Lyons with tax evasion for not reporting over $650,000 in income he received from Worley & Obetz in 2013.

“The alleged fraud here is stunning in scope and duration,” said U.S. Attorney McSwain. “As alleged, the defendants obtained tens of millions of dollars from bank lenders to benefit their business, when their jobs as CEO and Controller required them to act with fiduciary integrity. My Office will continue to work aggressively with our law enforcement partners to protect innocent individuals and businesses from being victimized by financial fraud.”

If convicted, Karen Connelly and Judith Avilez face a maximum possible sentence of 30 years’ imprisonment and a $1,000,000 fine and Lyons faces a maximum sentence of 35 years’ imprisonment and a $1,250,000 fine.

The case was investigated by the Federal Bureau of Investigation, IRS Criminal Investigations, and Northern Lancaster County Regional Police Department and is being prosecuted by Assistant United States Attorney Tiwana Wright of the Eastern District of Pennsylvania.

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

PHILADELPHIA, PA – First Assistant United States Attorney Jennifer Arbittier Williams announced that chiropractor Ron Siscoe and his practice, Ovation Center of Integrative Medicine (“Ovation”), have agreed to pay $98,497.62 to resolve liability under the False Claims Act for the alleged improper billing of electro-acupuncture devices called Stivax and/or P-Stim. This is the second electro-acupuncture device settlement announced in this District, as part of a U.S. Attorney’s Office ongoing investigation. (The first involved Dr. Richard Frey and Physicians Alliance Ltd., and was announced on September 17, 2019).

From July 13, 2016 through August 21, 2017, Siscoe and Ovation billed Medicare for the implantation of neurostimulator electrodes, a surgical procedure usually necessitating an operating room for which Medicare reimburses thousands of dollars. However, Siscoe was not conducting that surgery. Instead, a nurse practitioner was applying a Stivax device in an office setting without surgery or anesthesia. In addition, for many of the claims at issue, Siscoe and Ovation billed the procedure using the National Provider Identification number of a physician who did not actually perform or supervise the procedure.

Stivax is an electric acupuncture device that, pursuant to manufacturer’s instructions, is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the device provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for several days until its battery runs out, at which time the device is thrown away. Medicare does not reimburse for acupuncture or for acupuncture devices such as Stivax, nor does Medicare reimburse for it as a neurostimulator or as implantation of neurostimulator electrodes. Other brand names for this device include P-Stim, NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge.

On May, 17, 2018, SafeGuard Services LLC, the Northeastern Unified Program Integrity Contractor (“UPIC”) of Medicare, provided Ovation with notice that it was initiating a post-payment medical review of certain of Ovation’s claims for Stivax services. In response, Ovation conceded that the Stivax claims were inappropriate and thus agreed to make voluntary repayment to Medicare for those claims the UPIC had identified.

“We said it in September and say it again now: acupuncture devices may not be billed as surgically implanted neurostimulators,” said First Assistant U.S. Attorney Williams. “Medicare paid thousands of dollars because of the alleged improper billing alleged here, which harms American taxpayers. We appreciate Ovation’s willingness to promptly negotiate a resolution in this matter.”

Williams continued, “We would encourage anyone who may have been involved in P-Stim false billing to come forward voluntarily and self-disclose the misconduct. As this second P-Stim settlement in just the last month shows, we are continuing to work closely with our partners at CMS’s Center for Program Integrity, the Department of Health and Human Services Office of Inspector General, and sister U.S. Attorney’s Offices around the country to hold accountable any other providers who inappropriately billed this device and any product distributors or marketers who may have architected or carried out such a billing scheme.”

“Every dollar saved is critical to the sustainability of our Medicare program and the needs of our beneficiaries,” said Centers for Medicare and Medicaid Services Administrator Seema Verma. “We thank our partners at the Department of Justice and Department of Health and Human Services Office of Inspector General for working hard with us to identify, investigate, and eliminate waste, fraud and abuse in our federal healthcare programs.”

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

The settled civil claims are allegations only. There has been no determination of civil liability. This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Matthew E. K. Howatt, Civil Chief Gregory B. David, and Auditor Dawn Wiggins.

PHILADELPHIA, PA—United States Attorney William M. McSwain announced that Drexel University has agreed to pay the United States $189,062 to resolve potential liability under the False Claims Act for a former professor’s use of grant funds towards “gentlemen’s clubs” and other improper purchases.

For ten years, the head of Drexel’s Department of Electrical and Computer Engineering, Dr. Chikaodinaka D. Nwankpa, submitted improper charges against federal grants. The majority of the charges were made to gentlemen’s clubs and sports bars in the Philadelphia area.

The government’s investigation began in 2017 after Drexel voluntarily disclosed the improper charges to eight federal grants for energy and naval technology related research that it received from the Department of the Navy, the Department of Energy, and the National Science Foundation. After an internal audit in 2017, Drexel discovered that between July 2007 through April 2017, Dr. Nwankpa submitted improper charges against the federal grants for items such as personal iTunes purchases and for “goods and services” provided by Cheerleaders, Club Risque, and Tacony Club.

Drexel disclosed Dr. Nwankpa’s conduct to the government and cooperated with the investigation to identify the full scope of the misconduct. Dr. Nwankpa repaid $53,328 to Drexel, resigned his position in lieu of termination, and was debarred from federal government contracting for a period of six months. Drexel has implemented changes to prevent similar misconduct in the future, such as improvements to its charge approval and auditing policies.

“This is an example of flagrant and audacious fraud, and a shameful misuse of public funds.” said U.S. Attorney McSwain. “The agencies providing these grant funds expect them to be used towards advancements in energy and naval technology for public benefit, not for personal entertainment.”

U.S. Attorney McSwain continued, “We appreciate Drexel’s self-disclosure and cooperation in this matter. At the same time, we are disappointed that Dr. Nwankpa’s conduct went unnoticed for so long, but Drexel’s strengthening of its charge approval process is certainly a step in the right direction.”

NCIS Northeast Field Office Special Agent in Charge Leo S. Lamont stated: "Fraud is never a victimless crime. In this case, the flagrant and wrongful misuse of American taxpayers’ funds not only eroded the public trust, but jeopardized the Department of Navy’s efforts to obtain the best technology and research for our brave men and women in uniform. NCIS will continue to battle fraud in all forms and tirelessly pursue all those who seek to cheat, steal, defraud, or harm the American Public and the Department of the Navy.”

The settled civil claims are allegations only. There has been no determination of civil liability. This case was investigated by the Naval Criminal Investigative Service, the U.S. Department of Energy Office of Inspector General, and the National Science Foundation Office of Inspector General. It was handled by Assistant United States Attorney Stacey L. B. Smith and Fraud Investigator Jeffrey Braun.

PHILADELPHIA – United States Attorney William M. McSwain announced that Dayvon Nicole Brown, 25, of Coatesville, Pennsylvania was convicted at trial of possession of a firearm by a convicted felon.

During the week-long trial, the government presented evidence which showed that in May 16, 2018, the defendant was the rear seat passenger in a vehicle that was stopped by Coatesville Police Department officers for being operated without headlights on. After Brown was asked to step out of the car, a 9mm handgun loaded with 7 live rounds of 9mm ammunition was located on the rear passenger floor, partially hidden under the seat directly in front of where Brown had been sitting. During an interview following his arrest, Brown stated that the handgun was his. Because he qualifies as an “Armed Career Criminal” under federal law, the defendant is now facing a mandatory minimum sentence of 15 years’ imprisonment.

“Reducing violent crime is a top priority of my Office and of the Department of Justice, and successful prosecutions of cases like this remain a key part of our deterrence strategy,” said U.S. Attorney McSwain. “My Office remains committed to working with local police departments to clear the streets of Chester County, and all counties in our district, of firearms in the hands of convicted felons.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Special Assistant United States Attorney Michelle V. Barone and Assistant United States Attorney Mark S. Miller.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Rakee Russ, 41, of Philadelphia, PA was sentenced to 12 months and one day of incarceration, three years’ supervised release and $420 restitution by United States District Judge R. Barclay Surrick for his participation in a scheme to sell counterfeit tickets.

Russ pleaded guilty in July 2019 to conspiracy to commit wire fraud, wire fraud, conspiracy to traffic in counterfeit goods, and trafficking in counterfeit goods, arising from his role in the sale of counterfeit tickets to sporting events, including the January 2017 Villanova-Virginia NCAA Men’s College Basketball game and the September 2017 Eagles v. Giants NFL game, both in Philadelphia, PA. The counterfeit tickets bore the authentic trademarks that were registered with the United States Patent and Trademark Office. Russ sold the counterfeit tickets at the Wells Fargo Center and Lincoln Financial Field.

“Criminal counterfeiting and piracy are serious, federal crimes,” said First Assistant U. S. Attorney Williams. “When fans spend their hard-earned money on event tickets, they deserve the real deal. This defendant took advantage of unsuspecting fans, and now he will be doing more than a year in federal prison. To anyone else out there who thinks selling counterfeit tickets are not going to be prosecuted federally, take notice. Justice has been served.”

The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Joan E. Burnes and Anita Eve.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Collin Cowell, a/k/a “Tyson,” 29, was sentenced to 324 months’ incarceration and 20 years’ supervised release by United States District Court Judge J. Curtis Joyner for his scheme to organize and manage a trafficking venture with ‘employees’ whom he trained to sell young girls into sexual conduct.  The defendant is also required to register as a sex offender.

The defendant was convicted in March 2018 of sex trafficking and aiding and abetting the sex trafficking of three minor children, two of whom were only 15 years old, in Philadelphia and elsewhere.  He was also convicted of the distribution of child pornography for posting a sexually explicit image of two of the young girls on backpage.com, a website Cowell and his co-defendants used to advertise the minors for commercial sex acts with sex buyers, which financially benefited him directly.  The defendant not only led the trafficking operation, he trained those working under him to engage in sex trafficking.

“Cowell’s crimes were devastating to his minor victims,” said First Assistant U.S. Attorney Williams. “Today’s sentence of almost three decades incarceration reflects the seriousness of his crimes and the irrevocable damage he caused, all in pursuit of financial gain. We will continue to work collectively to investigate these destructive crimes against vulnerable children.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced a $4.25 million civil settlement with Glenn A. Kline, D.O. and Community Surgical Associates to resolve civil allegations relating to kickbacks received from two hospitals formerly operated by Health Management Associates (HMA) in Lancaster, Pennsylvania, in violation of the False Claims Act and Anti-Kickback Statute. Dr. Kline’s case is related to a larger investigation under which HMA agreed to pay $260 million to the United States to settle claims arising from HMA’s fraudulent billing practices in multiple healthcare institutions across the United States.

Between 2009 and 2012, as alleged in the relators’ complaint, Dr. Kline practiced as a general surgeon in Lancaster, Pennsylvania. Dr. Kline was a major source of surgical business in the Lancaster area. His ability to refer patients to two former HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center, gave Dr. Kline significant leverage over HMA as it attempted to compete in the Lancaster market.

To secure Dr. Kline’s referrals, the complaint alleges that HMA compensated Dr. Kline by paying him exorbitantly more than the fair market value of his services. Dr. Kline was being paid 300% more than the Medical Group Management Association (MGMA) median salary for comparable general surgeons, and no fair market value analysis was done to support this payment. In addition to his excessive salary, Dr. Kline demanded, and was paid, additional amounts to benefit his practice, Community Surgical Associates. As alleged, Dr. Kline was paid these amounts as kickbacks for his referral of patients to Lancaster Regional Medical Center and Heart of Lancaster Medical Center, which in turn billed federal health care programs for those patients’ services. According to the complaint, these arrangements were intentionally structured to disguise payments which were, in actuality, payments for patient referrals, not for legitimate services.

“Our resolution of this matter and the significant recovery we have obtained from this physician show once again that no matter how complex the fraud scheme is, we will find it, stop it, and punish it,” said First Assistant U.S. Attorney Williams. “The alleged improper physician inducements that Dr. Kline demanded, and received, are a form of ‘pay to play’ business practice that could compromise professional judgment. In sum, this conduct must be rooted out because it interferes with a physician’s ability to provide top-notch patient care to American citizens.”

The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. George E. Miller and Michael J. Metts, former HMA hospital executives in Lancaster, filed suit in the Eastern District of Pennsylvania, alleging the improper financial relationship between HMA and Dr. Kline. Mr. Miller and Mr. Metts will receive approximately $1,054,000 million as their share of the recovery. Counsel for the whistleblowers, Marc S. Raspanti, Esquire and Pamela Coyle Brecht, Esquire from the law firm of Pietragallo Gordon Bosick & Raspanti, LLP, worked closely with the United States to investigate and resolve this case. “We sincerely thank Mr. Miller and Mr. Metts. Together with their lawyers, these two citizens provided invaluable assistance to the government throughout this case. Without the willingness of relators to shed light on allegations of fraud, preserving government program funds would be far more challenging. Their efforts played a vital role in the resolution of these cases,” said Williams.

“Today’s settlement highlights our dedication to ensuring physicians are making health care decisions based on their patients’ needs, not illegal inducements,” said Maureen R. Dixon, Special Agent in Charge, Philadelphia Regional Office, U.S. Department of Health and Human Services, Office of the Inspector General. “We will continue to work with the U.S. Department of Justice to safeguard patients and taxpayers.”

This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Deputy Chief Charlene Keller Fullmer, Assistant United States Attorney Veronica Finkelstein, and Auditor Dawn Wiggins.

The civil claims resolved by the settlement are allegations against Dr. Kline only, and there has been no determination of liability.

PHILADELPHIA – United States Attorney William M. McSwain issued the following statement regarding the opinion issued by the district court this afternoon:

“As Deputy Attorney General Rosen explained today, the Department of Justice remains committed to preventing illegal drug injection sites from opening. Today’s opinion is merely the first step in a much longer legal process that will play out. This case is obviously far from over. We look forward to continuing to litigate it, and we are very confident in our legal position.”

PHILADELPHIA – United States Attorney William M. McSwain announced that Deyao Chen, Guichun Chen, and Liangtu Pan a/k/a Liang Pan, all of the People’s Republic of China, have been charged by indictment with the following: conspiracy to import controlled substances (one count); conspiracy to distribute controlled substances (one count); and distribution of furanyl fentanyl, U-47700, and methoxyacetyl fentanyl – all powerful synthetic opioids (62 counts). In a news conference at the U.S. Attorney’s Office, U.S. Attorney McSwain addressed the charges in the indictment and highlighted broader efforts of the U.S. Attorney’s Office for the Eastern District of Pennsylvania and law enforcement to stem the tide of the opioid crisis.

The indictment alleges that from in or about April 2016 through on or about March 22, 2017, Deyao Chen, Guichun Chen, and Liangtu Pan operated through websites located in the People’s Republic of China and offered controlled substances for sale, including furanyl fentanyl, U-47700, and methoxyacetyl fentanyl. The defendants often used the same alias, “Alex,” when using these websites. Customers accessed these websites and selected the controlled substances they wanted to purchase, and the defendants directed the customers to different websites to pay for their orders.

Upon receipt of payment from the customers, the defendants emailed the customers’ orders to David Landis, charged elsewhere, who was a distributor residing in Montgomery County, Pennsylvania and a former Montgomery County Deputy Sheriff. The defendants mailed controlled substances from China to Landis in quantities sufficient to meet the orders from their internet customers. Landis would then mail the controlled substances via the United States Postal Service to customers located throughout the United States and in numerous other countries. In less than a year, Landis mailed approximately 2,900 packages of controlled substances to customers on behalf of the defendants. Landis has pleaded guilty and is awaiting sentencing.

Of the 62 distribution counts set forth in the indictment, one count alleges distribution of U-47700 to an individual which resulted in serious bodily injury. The remaining 61 distribution counts allege that the defendants distributed U-47700 and/or furanyl fentanyl to numerous individuals, including to five individuals in Georgia, Illinois, Ohio, and Tennessee who received these illegal substances and later overdosed and died with these controlled substances in their systems.

“Make no mistake: China is waging an undeclared war on our country and our American way of life, with deadly drugs serving as its weapon of choice,” said U.S. Attorney McSwain. “China is supplying the United States with the most potent and deadly fentanyl and other synthetic opioids on the market today. Today’s indictment is an important step in choking the flow of these deadly drugs into the Eastern District of Pennsylvania. International suppliers beware: you cannot hide behind a computer or evade our detection by drug trafficking from a far-away place. Even if you are halfway around the world, you will be held to account for your crimes.”

“This indictment sends a strong message to anyone connected anywhere in the world with production and trafficking of narcotics into the United States that Homeland Security Investigations and our law enforcement partners are going to hold you accountable,” said Marlon V. Miller, Special Agent in Charge of Homeland Security Investigations, Philadelphia. “Whether you’re selling fentanyl on a corner in Kensington or hiding behind a keyboard in China, Homeland Security Investigations will ensure that justice will be served.”

“The indictments announced today are the result of years of exemplary policework and collaboration at all levels of law enforcement,” said Major Douglas Burig, Director of the Pennsylvania State Police Bureau of Criminal Investigation. “The State Police will continue to work closely with our local, state, and federal partners to investigate and dismantle dangerous drug trafficking organizations that attempt to do business in Pennsylvania.”

“David Landis’ base of trafficking operations may have been Montgomery County, but his reach was global, spreading poison, misery and death far and wide. Because of traffickers like Landis, people are dying across the Commonwealth and across the country,” said Montgomery County District Attorney Kevin Steele. “I am proud to partner with United States Attorney McSwain and our other state and federal partners as we work to take down these dealers, shut down these drug pipelines and get this poison out of our communities.”

If convicted, the defendants face a maximum possible sentence of life imprisonment.

This Organized Crime Drug Enforcement Task Force (OCDETF) designated case was supported by the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (LMAHIDTA) and investigated by Homeland Security and the Pennsylvania State Police, with assistance from the following law enforcement agencies: Drug Enforcement Administration; U.S. Postal Inspection Service; United States Postal Service-Office of Inspector General; United States Secret Service; U.S. Customs and Border Protection; the Pennsylvania National Guard; Mentor-on-the-Lake Police Department, Ohio; La Vergne, Tennessee Police Department; Floyd County, Georgia Police Department; Hebron, Ohio Police Department; and the Tri-County, Illinois Drug Enforcement Task Force. It is being prosecuted by Assistant United States Attorneys Clare Putnam Pozos and Faithe Moore Taylor, and Special Assistant United States Attorney Samantha Thompson.

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 Craig A. Cohen, age 55, of Blue Bell, Pennsylvania was charged by Information with one count of mail fraud. Cohen was an attorney who worked for approximately eight years for a Philadelphia, Pennsylvania law firm (“the Law Firm”). Cohen specialized in representing insurance companies in subrogation matters, particularly those matters involving losses generated by water damage. As a subrogation attorney, Cohen filed claims on behalf of insurance companies to obtain recoveries against product manufacturers and class action settlement funds after insurance companies covered losses of insured individuals due to water damage resulting from defective products.

Over the course of approximately four years, from 2015 through 2019, Cohen engaged in a fraudulent scheme to obtain financial recoveries from product manufacturers and class action settlement funds for his own benefit, based on (1) entirely fabricated subrogation claims; and (2) legitimate subrogation claims to which an insurance company client of the Law Firm, and not Cohen, was entitled to the financial recovery.

Cohen operated the scheme primarily from his home in Blue Bell where he created a legal entity, WLSP, PLLC (“WLSP”), which he used to file the fabricated claims. He also opened a post office box in Philadelphia and created internet domains and email addresses for his company so that his fraudulent business could function effectively and appear legitimate.

Cohen created fake subrogation claims by modifying the paperwork from legitimate claims that he and other attorneys had already successfully resolved on behalf of clients of the Law Firm. His fake paperwork for each claim made it falsely appear that losses to the insured were caused by one manufacturer’s defective product, when in fact, a different manufacturer’s product caused those losses. Where necessary, Cohen would physically damage products and take pictures of them to submit with his fraudulent claim. He also engaged an expert engineer to examine the defective product and issue a report describing the defect that would entitle Cohen’s purported client to a recovery against the product manufacturer or settlement fund.

In addition to submitting entirely fake claims, Cohen also used legitimate, unresolved claims from insurance company clients of the Law Firm and submitted those claims through WLSP, generating financial recoveries entirely for himself. In each of these cases, Cohen convinced the Law Firm’s client and the Law Firm that the claims were not viable and should not be pursued, when in fact, the claims were viable. In converting these legitimate claims to his own company’s name and pursuing them solely for his own benefit, Cohen defrauded the insurance company clients of the Law Firm that were entitled to a recovery as well as the Law Firm that was entitled to a contingency fee on those matters.

In total, Cohen submitted dozens of fraudulent claims, causing losses to numerous victims, including product manufacturers, class action settlement funds, insurance companies, and the Law Firm, for an alleged loss of at least approximately $3.4 million.

“Attorneys of any kind, public or private, take an oath to act in accordance with the law – not to use their law license to steal,” said U.S. Attorney McSwain. “The allegations here are particularly disturbing, as the defendant went to great lengths to deceive and defraud his employer and its clients of millions of dollars, which is illegal conduct for an employee in any line of work, but is especially egregious for a lawyer.”

If convicted, the defendant faces a maximum possible sentence of 20 years in prison.

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

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 Angelo Perrucci, Jr., of Bangor, PA was arrested and charged by Indictment with wire fraud.

The indictment alleges that between on or about March 16, 2016 and on or about May 29, 2019, Angelo Perrucci, Jr., while serving as the administrator of an estate of a deceased Bergen County, N.J. individual, defrauded the estate of more than $300,000. During the more than three-year period in which Perrucci purported to serve as the administrator of the estate, he issued more than seventy checks to himself.

“As alleged in the indictment, this defendant – an attorney entrusted with the care of this estate – committed fraud and stole from the true beneficiaries of the estate,” said U.S. Attorney McSwain. “Attorneys of any kind, public or private, take an oath to act in accordance with the law – not to use their law license to steal. My Office will continue to root out the type of conduct that is alleged here.”

If convicted, the defendant faces a maximum possible sentence of 100 years’ imprisonment.

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

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 Stephen Eckler, 68, of Ivyland, Pennsylvania, and Robert Yost, 52, of Southampton, Pennsylvania, were charged by Information with willful failure to pay employment taxes.

The information alleges that Eckler and Yost, owners of the Kopper Kettle Bar and Restaurant, located in Feasterville, Pennsylvania, did not report $263,340 in cash wages that they paid to dishwasher employees at the Kopper Kettle Bar and Restaurant during the period March 2012 through at least September 2016. As a result of this practice, defendants Eckler and Yost failed to properly collect and pay over employment taxes to the Internal Revenue Service, including Social Security Tax and the Medicare Tax, commonly referred to as “FICA” taxes, and federal income tax withholdings.

“Our tax system requires businesspeople to truthfully report the wages paid to their employees,” said U.S. Attorney McSwain. “The defendants’ practice of paying their employees in cash, concealing this from the IRS, and failing to collect and pay federal employment taxes, undermines the integrity of the federal income tax system and harms those who play by the rules. My Office will aggressively pursue businesspeople who operate in such an illegal manner.”

If convicted, the defendants face a maximum possible sentence of five years in prison, a $250,000 fine, and full restitution paid to the IRS.

The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Richard P. Barrett.

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

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Christopher O’Sullivan, 31, of Philadelphia, was charged by Indictment with one count of using a facility of interstate commerce to entice a minor to engage in sexual activity, and one count of manufacturing child pornography.

The indictment alleges that between June 21 and July 23, 2019, O’Sullivan enticed a minor to engage in criminal sexual activity and manufactured child pornography. Court documents allege that O’Sullivan, a middle school teacher, coerced a 12-year-old minor boy to take a sexually explicit photograph and text it to O’Sullivan, and that O’Sullivan discussed sexual activity with the minor over text messaging. O’Sullivan was arrested by criminal complaint on August 30, 2019, in Plattsburgh, New York, and he has been detained since that time.

Anyone with additional information regarding O’Sullivan related to the sexual abuse of minors is encouraged to contact the FBI – Philadelphia at (215)418-4000.

“The defendant’s alleged abuse of his position of trust in our community for his perverse gratification is over,” said First Assistant U.S. Attorney Williams. “Child sexual exploitation is appallingly pervasive, exacerbated by the easy availability of digital media and communications, and it demands an aggressive response. We stand ready with our federal partners to identify and prosecute individuals that perpetuate this abuse.”

“Rather than live up to a teacher’s commitment to care for his students, O’Sullivan robbed this young boy of his innocence and childhood. Although today’s indictment cannot repair the damage O’Sullivan caused, it sends the message that the FBI and our partners, like the Philadelphia Police Department’s Special Victims Unit, remain committed to hunting down child predators,” said Michael T. Harpster, Special Agent in Charge of the Philadelphia Division of the FBI.

If convicted, the defendant faces a mandatory minimum term of imprisonment of 15 years, a maximum possible sentence of lifetime imprisonment, a mandatory minimum term of 5 years up to a lifetime of supervised release, a $500,000 fine, a $200 special assessment, and a $10,000 additional assessment.

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan. 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 joined fellow Justice Department officials today at a press conference to announce a coordinated health care fraud enforcement action across seven federal districts involving more than $800 million in loss and the distribution of over 3.25 million opioid pills in “pill mill” clinics. The takedown includes new charges against 48 defendants for their roles in submitting over $160 million in fraudulent claims. Of those 48 defendants, 15 are doctors or medical professionals, and at least 24 defendants were charged for their roles in diverting opioids. In the Eastern District of Pennsylvania, 17 defendants (five of whom are doctors or medical professionals) were arrested, and the conduct involved submission of more than $4 million in fraudulent claims and distribution of approximately 738,000 oxycodone pills to the streets of this District.

Today’s announcement comes one year after the Department of Justice announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania and the District of New Jersey. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics.

“As today’s takedown demonstrates, this Strike Force has produced precisely what we hoped it would – and by that I mean tangible results,” said U.S. Attorney McSwain. “We have brought together a wealth of resources, knowledge, and subject-matter expertise – that of health care fraud prosecutors, civil enforcement attorneys, data analysts, and law enforcement agencies – all working to stop fraud, waste, and abuse within our federal health care programs and to stem the tide of illegal opioid distribution. These are top priorities of the Department of Justice and of my Office, and our focus in this area continues to pay off.”

At the press conference, U.S. Attorney McSwain announced details about the following cases charged in the Eastern District of Pennsylvania:

Timothy F. Shawl, M.D., 60, of Garnet Valley, PA, a medical doctor, was charged with five counts of unlawful distribution of controlled substances. He allegedly wrote prescriptions for controlled substances that were outside the usual course of professional practice and not for a legitimate medical purpose. As alleged in the indictment, Shawl wrote prescriptions for controlled substances for patients without seeing, treating, or examining them. Shawl allegedly prescribed hundreds of prescriptions for oxycodone to approximately 16 patients, amounting to over 29,000 oxycodone tablets. The Federal Bureau of Investigation (FBI) conducted the investigation. The case is being prosecuted by Trial Attorney Debra Jaroslawicz of the DOJ Fraud Section.

The second case involves defendants Neil K. Anand, M.D., 42, of Bensalem, PA, and Asif Kundi, 31, Atif Mahmood Malik, 34, and Viktoriya Makarova, 33, all of Philadelphia, PA. Anand, a medical doctor, Kundi and Malik, unlicensed foreign medical school graduates, and Makarova, a nurse practitioner, were each indicted on one count of health care fraud and one count of conspiracy to distribute controlled substances. The charges stem from the defendants’ alleged submission of false and fraudulent claims to Medicare, health plans provided by the United States Office of Personnel Management (OPM), and Independence Blue Cross (IBC). The claims allegedly were for “Goody Bags,” which were stuffed with medically unnecessary prescription medications that were dispensed by non-pharmacy dispensing sites owned by Anand. In total, Medicare, OPM, and IBC allegedly paid over $4 million for the Goody Bags. Patients were allegedly required to take the Goody Bags in order to receive prescriptions for controlled substances.

According to the indictment, Malik and Kundi wrote prescriptions for controlled substances using blank prescriptions that were pre-signed by Anand or Makarova. Anand and Makarova provided over 10,000 prescriptions for Schedule II controlled substances, of which over 7,000 were for oxycodone, for a staggering total of over 634,000 oxycodone tablets distributed from this scheme. The investigation was conducted by the following agencies: FBI, Department of Health and Human Services – Office of Inspector General (HHS-OIG), United States Postal Service – Office of Inspector General (USPS-OIG), the Office of Personnel Management, the Pennsylvania Office of Attorney General, and the Philadelphia Police Department. The case is being prosecuted by DOJ Trial Attorney Jaroslawicz.

Additionally, 12 indictments were unsealed yesterday involving charges against 12 people for allegedly possessing oxycodone with intent to distribute. The indictments charge that, from September 2016 through June 2019, the 12 defendants all presented forged prescriptions for oxycodone to various pharmacies outside of Philadelphia, in order to obtain oxycodone to distribute to others. The defendants, all from Philadelphia, allegedly drove to Pennsylvania pharmacies in Marcus Hook, Drexel Hill, and Kennett Square, and a New Jersey pharmacy in Mount Laurel, to fill these forged prescriptions. The defendants are charged with at least two, and up to 32, counts of possession with intent to distribute oxycodone. The defendants are charged with having received anywhere from 6,300 milligrams to 135,000 milligrams of oxycodone, which is approximately 75,000 oxycodone pills.

Charged were: Lamar Dillard, 37; Jermaine Grant, 29; Katrina Tucker, 32; Maurice Bertrand, 31; Courtney Brockenborough, 34; Alan Alexander Harrison, 29; Abdullah Howard, 23; Jonathan Metellus, 32; Clinton Monte Bullock, 29; Crystal Coleman, 31; Marques Russell, 35; and Joseph Michael Simmons. One defendant, Metellus, is also charged with one count of health care fraud, for allegedly using his Medicaid card to purchase prescription drugs with a forged prescription. These cases were investigated by the Drug Enforcement Administration, HHS-OIG, the Pennsylvania Department of State’s Bureau of Enforcement and Investigations, the Chester County District Attorney’s Office, and the Easttown Township Police Department. They are being prosecuted by Assistant U.S. Attorneys David E. Troyer, Elizabeth Abrams, Joan Burnes, and Mary Kay Costello, all of the Eastern District of Pennsylvania.

Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with its Medicare Fraud Strike Force, as well as the U.S. Attorney’s Offices for the Eastern District of Pennsylvania, District of New Jersey, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut, and District of Columbia.

“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”

“Today's indictments confirm the FBI's commitment to hunting down doctors and other healthcare professionals who act like drug dealers. The opioid crisis is devastating families here in Philadelphia and across the country. The FBI and its law enforcement partners will continue to focus on corrupt physicians and others driving the epidemic,” said Michael T. Harpster, Special Agent in Charge of the Philadelphia Division of the FBI.

“Today’s law enforcement actions show we are holding alleged bad actors accountable and working to prevent further harm to beneficiaries and taxpayers,” said Maureen R. Dixon, Special Agent in Charge, Philadelphia Regional Office of the Inspector General, U.S. Department of Health and Human Services. “HHS-OIG will continue to work with our law enforcement and community partners to combat health care fraud and drug diversion in the Philadelphia Region.”

“The DEA’s Diversion Investigators and Tactical Diversion Squads are missioned with the identification, investigation, and arrest of rogue DEA Registrants and drug trafficking organizations involved in the illegal distribution of controlled substances such as oxycodone and other prescription painkillers,” said Jonathan A. Wilson, Special Agent in Charge of the DEA’s Philadelphia Field Division. “Working with our partner agencies such as the U.S. Department of Health & Human Services, the U.S. Department of Labor, and the Federal Bureau of Investigation, the DEA will continue to pursue federal criminal cases and parallel civil proceedings against the registrants and organizations that seek to divert these powerful painkillers that have contributed to the opioid epidemic.”

U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, stated: “The Postal Service spends billions of dollars per year on health care related costs for postal employees, the majority of which is for legitimate purposes. However, a few medical providers try to take advantage of the system. USPS – OIG special agents will vigorously investigate health care fraud allegations that touch the Postal Service and will work with our law enforcement partners to bring fraudsters to justice.”

“The opioid, heroin, and fentanyl epidemic is devastating Pennsylvania communities, and it is fueled in part by prescription drug abuse,” said Pennsylvania Attorney General Josh Shapiro. “The defendants had a responsibility to help their patients, but instead they are charged with giving them dangerous opioids that they did not need. They also allegedly committed millions of dollars in insurance fraud, which causes rates for all consumers to increase. I’m proud to work with our law enforcement partners to put a stop to this criminal enterprise and protect the people of Pennsylvania.”

A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

PHILADELPHIA, PA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced today an $8.5 million civil settlement to resolve two False Claims Act cases, United States et al. ex rel. Ravi Srivastava v. Trident USA Health Services LLC, Symphony Diagnostic Services No. 1, Inc. dba MobilexUSA, Civil Action No. 16-2956 (E.D. Pa.), and United States ex rel. Peter Goldman v. Symphony Diagnostic Services No. 1, LLC, d/b/a MobilexUSA, Civil Action No. 19-cv-01603 (E.D. Pa.).  The lawsuits were filed by whistleblowers Ravi Srivastava and Peter Goldman, respectively, on behalf of the United States. The defendant is MobilexUSA, also known as Trident USA Health Services, LLC (Trident). 

Trident provides mobile diagnostic services, including mobile x-rays, to individuals residing in skilled nursing facilities. The United States pays Trident to provide mobile x-rays to Medicare and Medicaid participants in these skilled nursing facilities.  Whistleblower Srivastava had been Trident’s Chief Information Officer, and whistleblower Goldman had been a Trident regional sales manager.  Based upon these whistleblowers’ allegations that Trident was engaged in a kickback scheme with skilled nursing facilities, the government investigated Trident’s pricing arrangements and its costs to provide mobile x-rays at these facilities. 

Based upon its investigation, the government alleges that, from approximately June 2006 through September 2019, Trident engaged in illegal “swapping” arrangements under which Trident provided mobile x-rays to skilled nursing facilities at prices below Trident’s costs to provide the services, or below fair market value, for the purpose of inducing the facilities to refer lucrative federal health program business to Trident. Federal law prohibits the payment of kickbacks in exchange for the referral of federal healthcare business, including for healthcare that will be paid by the federal government through Medicare or Medicaid. Trident, like other companies that submit claims for payment to Medicare or Medicaid, is required to certify that it is compliant with federal anti-kickback laws. The government alleges that Trident’s certifications of anti-kickback law compliance were false certifications.   

On February 10, 2019, Trident filed for bankruptcy protection. In bankruptcy, Trident sought to extinguish the government’s ability to collect any damages or penalties from Trident in connection with the illegal swapping arrangements. Despite Trident’s bankruptcy, the government and whistleblowers Srivastava and Goldman and their counsel worked together closely and continued their vigorous pursuit of the government’s claims, resulting in the $8.5 million settlement.

First Assistant U.S. Attorney Williams said: “Companies that violate the False Claims Act through illegal swapping arrangements, or by any other illegal scheme violating federal laws designed to protect the public fisc, will not find a safe harbor in bankruptcy court. The government will not relent or be deterred in our pursuit of justice for America’s taxpayers.”    

Whistleblower Srivastava will receive $2,018,750.00 as his share of the government’s $8.5 million recovery, and whistleblower Goldman will receive $106,250.00. The whistleblowers were represented by attorneys Sherrie R. Savett, Esq. and Russell D. Paul, Esq., of Berger Montague, Philadelphia, PA, and James D. Young, Esq., of Morgan & Morgan Complex Litigation Group, Jacksonville, FL, respectively. “The whistleblowers and their lawyers provided vital and exceptionally valuable support to the government’s effort in this case, even after Trident’s bankruptcy put any recovery in doubt,” stated Williams.

This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. The lawsuits were handled by Assistant U.S. Attorneys Joel M. Sweet and Veronica J. Finkelstein, Auditor Dawn Wiggins, and Investigator Jeffrey R. Braun, from the U.S. Attorney’s Office for the Eastern District of Pennsylvania, along with Trial Attorneys Alex Thor Pogozelski and Michael J. Podberesky of the Civil Frauds Branch of the Department of Justice. Assistant U.S. Attorney Jessica Hu of the U.S. Attorney’s Office for the Southern District of New York represented the United States in Trident’s bankruptcy proceedings.     

The government’s settled civil claims are based on allegations. There has been no court determination of liability.

PHILADELPHIA, PA – United States Attorney William M. McSwain announced that the owners of E-Z Pharmacy in Philadelphia have agreed to pay $1,100,000 to resolve liability under the False Claims Act.

Dhanyabapa LLC, doing business as E-Z Pharmacy, and Shardaben Patel will jointly pay $1,100,000 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare for prescription medications that were not actually dispensed during the period from January 1, 2012 to December 31, 2016. These medications include Advair Diskus, Humalog, Novolog, Renvela, and Lidoderm. Dhanyaba LLC and Shardaben Patel also agreed to a ten-year federal healthcare exclusion, which will prohibit them from receiving payments from any federally funded health care insurer such as Medicare for the next decade.

“Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse,” said U.S. Attorney McSwain. “We appreciate E-Z Pharmacy's willingness to promptly negotiate a resolution in this matter. I also want to thank the Department of Health and Human Services, Office of the Inspector General for its referral of this matter. Our Office will continue to work proactively with our law enforcement partners to identify and prosecute fraudulent conduct.”

“Pharmacies are responsible for all claims they submit to Medicare,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayer dollars are only spent on bona fide medical claims.”

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

This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Deborah W. Frey, Civil Chief Gregory B. David, and Auditor George Niedzwicki.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced today that the following sentences were handed down this week for defendants’ participation in a nationwide child exploitation enterprise and child pornography conspiracy occurring over the online communications service Discord: (a) Andrew Dowdle, 47, of Oswego, New York, was sentenced to 16 years’ imprisonment and 15 years of supervised release; (b) Carl Masters, 44, of Lawrence, Kansas, was sentenced to 27 years’ imprisonment and a lifetime of supervised release; and (c) Ric Crossfield, Jr., 24, of Queens, New York, was sentenced to 14 years’ imprisonment and 40 years of supervised release. All three defendants will be required to register as sex offenders upon their release from incarceration. All sentences were imposed by United States District Judge Harvey Bartle III.

The case represents the first child exploitation enterprise prosecution ever brought in the Eastern District of Pennsylvania.

The sentenced defendants and their co-conspirators congregated on Discord, an Internet communications service permitting users to create “servers” (essentially chat rooms with certain advanced features) typically organized around a particular common interest. In the case of the sentenced defendants and their co-conspirators, their common interest was child pornography streamed via web camera or cell phone camera over any of a number of video-streaming platforms (including Omegle, Skype, live.me, Snapchat, Periscope, musical.ly, YouNow and others).

Over various Discord servers, the defendants and the other enterprise members encouraged one another to produce child pornography by communicating over the Internet directly with minors and enticing them to broadcast sexually explicit videos of themselves, and then to share the results of their successful efforts (which they described as “wins”) with other members of the group. The members also provided each other with links to child pornography and technical advice designed to facilitate the viewing and retention of child pornography videos. Hundreds of minor children were victimized by the enterprise, and vast quantities of child pornography were produced.

Each of these sentences followed a previous guilty plea. Dowdle pled guilty to conspiracy to advertise child pornography on April 8, 2019. Masters pled guilty to engaging in a child exploitation enterprise and conspiracy to advertise child pornography on April 25, 2019. Crossfield pled guilty to engaging in a child exploitation enterprise and conspiracy to advertise child pornography on April 17, 2019.

“The harm caused by any child exploitation is devastating and long-lasting,” said First Assistant U.S. Attorney Williams. “In this case, the impact can be multiplied by the hundreds of victims these defendants and others manipulated for their own benefit. There can be no doubt that children across the nation, and the world, are safer now that these defendants are off the street. We stand ready with our federal and local partners to identify and prosecute all those who would prey upon minor children.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Seth M. Schlessinger and Trial Attorneys Lauren E. Britsch and Kaylynn N. Foulon of the Department of Justice’s Child Exploitation and Obscenity Section.

PHILADELPHIA, PA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced that the United States has filed a civil lawsuit against G & A Somerton Pharmacy LLC (“Somerton”), its owner Polina Khodak, and its pharmacist-in-charge, Inessa Lerner, alleging that they violated the False Claims Act when they knowingly billed Medicare for over $1 million worth of prescription drugs that were never actually dispensed to beneficiaries, during the period January 1, 2009 through December 31, 2015.  These medications included but were not limited to Lidoderm, Advair Diskus, Omeprazole, Solaraze, Nexium, Donepezil, Novolog, Meclizine, Lidocaine, and Januvia. 

The United States has also entered into a Stipulated Order and Consent Judgment with Somerton, Khodak, and Lerner, subject to the Court’s approval, which would resolve the matter without litigation.  If approved by the Court, the Judgment will require the defendants to pay nearly $1.3 million.  Significantly, it will also require Somerton and Khodak to agree to a 10-year healthcare exclusion, which will prohibit them from receiving payments from any federally funded health care insurer such as Medicare.  And it will require Lerner to enter into an integrity agreement, requiring her to undertake substantial compliance obligations. 

“Pharmacy fraud remains a priority for our Office,” said First Assistant U.S. Attorney Jennifer Arbittier Williams.  “Taxpayer dollars should be spent on needed medications, not wasted on fraud and abuse. Our Office will continue to scrutinize and pursue such conduct.” 

“Pharmacies are responsible for all claims they submit to Medicare,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General.  “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayers’ dollars are only spent on bona fide medical claims.”

This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General.  For the U.S. Attorney’s Office, Assistant U.S. Attorney Deborah W. Frey, Civil Chief Gregory B. David, Auditor George Niedzwicki, and paralegal Patricia Bontempo, Certified Fraud Examiner, handled the matter.   

The complaint contains allegations only; there has been no determination of liability

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Shyniquah Lightner, 27, of Philadelphia, Pennsylvania, was sentenced today to twenty years’ incarceration and fifteen years’ supervised release by United States District Judge C. Darnell Jones II for her role in a scheme to sex traffic minor children.

In 2016 and 2017, Lightner recruited two children, ages 14 and 15, to engage in commercial sex acts at a house in Philadelphia.  She advertised the children on the website Backpage.com, and she collected money from the sex buyers who came to the residence for sexual encounters with the minors.  Her co-defendant, Malik Hudson, participated in the trafficking of the 15-year-old.

“Lightner’s crimes were devastating to her minor victims,” said First Assistant U.S. Attorney Williams. “Today’s sentence of twenty years’ incarceration reflects the seriousness of her crimes and the irrevocable damage she caused, all in pursuit of financial gain. We will continue to work collectively to investigate these destructive crimes against vulnerable children.”

“Today’s sentencing is a significant step in holding Ms. Lightner accountable for trafficking children,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia.  “Traffickers prey on the vulnerabilities of their victims, repeatedly exploiting them for their own personal gain. We will continue working with our partners at the Philadelphia Human Trafficking Task Force to hold these criminals accountable for their deplorable actions.”

The case was investigated by the Department of Homeland Security - Homeland Security Investigations, with assistance from the Philadelphia Police Department Special Victims Unit, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Salim Davis, 34, of Philadelphia, PA was convicted at trial of one count of being a felon in possession of a firearm, one count of possession of a firearm in connection with a drug trafficking offense, one count of possession with intent to distribute a controlled substance, and one count of aiding and abetting the making of a false statement to a federal firearms licensee.

At trial, the government presented evidence that, on December 29, 2017, at approximately 3:25 p.m., an off-duty Philadelphia Police Inspector was driving his unmarked police car in the area of 2500 Island Avenue when he heard gunshots.  Minutes later, he observed defendant Salim Davis and another man carrying firearms while walking in an alleyway near the Inspector’s car.  The Inspector commanded that they stop and put their hands up, but Davis fled and discarded his jacket.  Police eventually caught up with Davis, placed him in custody, and recovered from him money, a bottle containing 72 Alprazolam pills, and several loose pills in Davis’s pocket.  In addition, upon picking up Salim’s discarded jacket, officers recovered a Smith & Wesson, .40 caliber, semi-automatic handgun loaded with 10 live rounds.  Police later determined that the weapon they recovered was purchased by a third party on Davis' behalf at Double Action, a federal firearm licensee, in Yeadon, PA.

“This guilty verdict is another important step towards protecting our communities from drug and gun offenders who bring violence to our communities,” said First Assistant U.S. Attorney Williams. “The United States Attorney’s Office, with our law enforcement partners, will aggressively investigate, prosecute, and hold these offenders accountable. We deeply appreciate the cooperation of all of our federal, state, and local partners in defending our communities and bringing Davis to justice.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The case was investigated by ATF and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Kate Driscoll.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Domenick Braccia, 58, of Hatfield, Pennsylvania, was sentenced to 37 months’ incarceration, one year supervised release, 150 hours of community service, a $15,000 fine and ordered to pay $2,484,864 in restitution by United States District Judge Wendy Beetlestone.  The defendant pleaded guilty to one count of conspiracy to commit health care fraud in May 2019, arising from his role in a scheme to overbill health care benefit programs for treatment and testing of drug-addicted patients at outpatient facilities owned by Liberation Way. 

Domenick Braccia was the so-called “medical director” and the only medical doctor on staff at Liberation Way’s three locations in Yardley, Bala Cynwyd, and Fort Washington.  In violation of his oath as a doctor, and as part of a multi-state scheme to defraud insurers, Braccia signed blank prescription forms and patient orders, averred to the medical necessity of testing for patients whom he never saw, and prescribed for patients he did not see.   

“We have consistently said that this case should send a message to those attempting to profit from fraud and the despair of individuals battling addiction,” said First Assistant U.S. Attorney Williams.   “With this sentence, that message has been delivered in a powerful and concrete way.  Dominick Braccia is through practicing medicine and is going to prison.  We have been proud to work with the Office of Pennsylvania Attorney General Shapiro and our other federal agency partners to bring all of the defendants in this case to justice.”

“The operators of Liberation Way shamelessly took advantage of people suffering from substance use disorder to line their own pockets,” said Attorney General Josh Shapiro. “As Medical Director, Dr. Braccia played a significant role in this fraud and betrayed the patients he was supposed to be helping. I’m proud that through collaboration with our federal law enforcement partners, we held him accountable for his despicable actions today, and we will continue to do the same with the remaining Liberation Way defendants.”

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

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Liam Heim, 23, of St. Petersburg, Florida, was sentenced to 180 months’ imprisonment, and lifetime supervised release by United States District Judge Petrese B. Tucker for child exploitation offenses which occurred in Philadelphia.

In early 2018, while living in Florida, the defendant started an online forum on the messaging service Discord, through which he met a 12-year-old girl living with her parents in southern New Jersey.  Heim groomed his seventh-grade victim to believe that they were in a romantic relationship, eventually convincing her to meet with him in person so that he could sexually assault her.  On March 29, 2018, Heim flew from Florida to Philadelphia, picked up the victim in southern New Jersey, and brought her to a hotel near the airport in Philadelphia where he repeatedly sexually assaulted her over the course of an approximately 36-hour period before the victim was recovered by authorities and Heim was arrested.  The defendant ultimately pled guilty to charges of traveling in interstate commerce to engage in illicit sexual conduct with a minor, and transportation of a minor in interstate commerce with intent to engage in unlawful sexual activity.

“The harm caused by any child exploitation is devastating and long-lasting,” said First Assistant U.S. Attorney Williams. “And in this case, the conduct wasn’t limited to online communications – this defendant followed through, traveled here from out-of-state, and actually assaulted a young and vulnerable child.  There can be no doubt that our children and our community are safer now that this defendant is off the street.  We stand ready with our federal and local partners to identify and prosecute all those who would prey upon minor children.”

"The sexual exploitation of children is a heinous offense,” said Marlon V. Miller, special agent in charge of Homeland Security Investigations, Philadelphia. “This joint investigation with the Philadelphia Police Department Special Victims Unit, Collingswood Police Department and Camden County Prosecutor’s Office Special Victims Unit demonstrates HSI’s commitment to working with our law enforcement partners to bring perpetrators to justice.”

The case was investigated by Homeland Security Investigations, Philadelphia Police Department and the Camden County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Seth M. Schlessinger.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that John Karl Smith, 26, of Philadelphia, Pennsylvania was sentenced to 84 months’ incarceration and three years’ supervised release by United States District Judge Paul S. Diamond for the robbery of multiple businesses in Philadelphia during the summer of 2018.

This Hobbs Act robbery case charged the defendant with entering commercial businesses in North and Northeast Philadelphia during July and August of 2018. He entered each business, approached the clerk, produced a knife, and demanded money. The defendant robbed six businesses during his crime spree – including a corner store, multiple cell phone stores, and a pizza restaurant – and he pled guilty to six counts of Hobbs Act robbery in May 2019.

“The complete disregard that Smith demonstrated for the safety and well-being of others is appalling,” said First Assistant U.S. Attorney Williams. “The employees of these stores were simply doing their jobs, when Smith terrorized them just to make a few bucks. The streets are safer now that the defendant will be spending the next few years behind bars.”

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

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Jerome Lamont Duggan, 46, of Bethlehem, Pennsylvania was sentenced to 324 months’ imprisonment, five years’ of supervised release and a $2,500 fine by United States District Judge Joseph F. Leeson, Jr., for his crimes related to trafficking a multitude of drugs throughout the Lehigh Valley.

From about March through early-May 2016, Duggan and his co-conspirators possessed with intent to distribute and distributed illegal drugs including approximately 2.4 kilograms of methamphetamine in various locations throughout Northampton and Lehigh Counties, Pennsylvania.  In March 2019, a jury found Duggan guilty of all counts of the Superseding Indictment, including one count of conspiracy to distribute 500 grams or more of methamphetamine, and counts charging possession with intent to distribute:  (a) 50 grams or more of methamphetamine; (b) 500 grams or more of cocaine; (c) 28 grams or more of cocaine base (“crack”); and (d) approximately 772 grams of marijuana. 

“Duggan and other members of this drug organization pumped huge quantities of dangerous drugs into our community,” said First Assistant U.S. Attorney Williams. “These traffickers essentially delivered destruction to our communities. Our office is determined to investigate and convict these criminals, and put them behind bars.”

“Duggan was convicted and sentenced for distributing a substantial amount of dangerous drugs such as methamphetamine, cocaine, crack cocaine, and marijuana across the Lehigh Valley,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “The DEA, working with our partner federal, state, and local law enforcement agencies will continue to identify and investigate drug-traffickers like Duggan that seek to poison our communities.” 

The case was investigated by Drug Enforcement Administration-Allentown Resident Office, United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania State Police, Lehigh County District Attorney’s Office Detectives, and Allentown and Bethlehem Police Departments, and is being prosecuted by Assistant United States Attorney Kishan Nair.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Mario Calderon-Medina, 55, a native and citizen of Mexico, was sentenced to 15 months’ imprisonment and one year of supervised release by United States District Judge Juan R. Sanchez for illegally reentering the United States after having been deported previously.  The defendant was found by the judge to fall within Criminal History Category II based on his previous offenses.

Calderon-Medina reentered the United States illegally after having been deported to his native Mexico four times, the most recent occurrence being in 2003.  During his most recent illegal return to this country, he committed a bank robbery in Montgomery County, PA, for which he was sentenced to 1½ to 3 years in state prison.

“The defendant has demonstrated a complete lack of respect for our country’s laws and has also now clearly shown that he represents a danger to the community if he should return again,” said First Assistant U.S. Attorney Williams.  “The need to enforce immigration law is underscored in this case when an alien not only reenters the country unlawfully, but commits a serious crime upon his reentry.”

The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations, and is being prosecuted by Assistant United States Attorneys Sarah Wolfe and Thomas Perricone.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that defendant Philip Ahr, 68, of Radnor, Pennsylvania, was sentenced to 151 months’ incarceration and 10 years’ supervised release by United States District Court Judge Michael M. Baylson after pleading guilty to three counts of distribution, receipt and possession of child pornography. His sentence requires him to register as a sex offender under Megan’s Law.

The defendant, who created online aliases like “DaddyX” and “DaddyXX” to commit these crimes, was originally arrested by the Delaware County District Attorney’s Office Criminal Investigation Division, and then later by the Federal Bureau of Investigation as part of an online investigation into the sexual exploitation and trafficking of children.

For more than four years, the defendant communicated online with hundreds of other child offenders, distributing horrific images of children being sexually abused and collecting an extensive supply of the unlawful videos and images. He did so at all times of the day and night and from various locations and devices, including at his home, his place of employment, and using his government-issued iPad which he had received as President of the Board of Commissioners in Radnor Township. During the same time that he was committing these offenses, Ahr also involved himself in numerous community service activities that were geared toward and gave him access to children of the same age that he sexually exploited as part of his crimes.

“The defendant’s days of exploiting his position of trust in our community for his perverse gratification are over,” said First Assistant U.S. Attorney Williams. “Child sexual exploitation is appallingly pervasive, exacerbated by the easy availability of online file sharing, and it demands an aggressive response. We stand ready with our federal partners to identify and prosecute individuals that perpetuate this abuse.”

This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Federal Bureau of Investigation, the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Rotella.

PHILADELPHIA, PA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced that Richard P. Frey, D.O., and Physicians Alliance Ltd. (“PAL”) have agreed to pay $178,398.35 to resolve liability under the False Claims Act for the alleged improper billing of “P-Stim” devices.

From May 2013 through June 2014, Frey and PAL billed Medicare for the implantation of neurostimulator electrodes, a surgical procedure typically necessitating an operating room for which Medicare reimburses thousands of dollars. Frey did not conduct surgery, however. Instead, he applied a “P-Stim” device in an office setting without surgery or anesthesia.

P-Stim is an electric acupuncture device that, pursuant to manufacturer’s instructions, is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the device then provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for approximately four days until its battery runs out, at which time the device is thrown away. Medicare does not reimburse for acupuncture or for acupuncture devices such as P-Stim, nor does Medicare reimburse for P-Stim as a neurostimulator or as implantation of neurostimulator electrodes. Other brand names for this device include Stivax, NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge.

“P-Stim is an acupuncture device that was billed here as a surgically implanted neurostimulator,” said First Assistant U.S. Attorney Williams. “Medicare does not reimburse a dime for acupuncture devices, but it paid these defendants thousands of dollars because of their alleged improper billing. We appreciate Dr. Frey and PAL’s willingness to promptly negotiate a resolution in this matter, and we will continue working closely with our partners at CMS’s Center for Program Integrity, the Department of Health and Human Services Office of the Inspector General, and sister U.S. Attorney’s Offices around the country to hold accountable any other providers who inappropriately billed for this device and any distributors or marketers who carried out such a billing scheme.”

“Every dollar saved is critical to the sustainability of our Medicare program and the needs of our beneficiaries,” said Centers for Medicare and Medicaid Services Administrator Seema Verma. “We thank our partners at the Department of Justice and Department of Health and Human Services Office of Inspector General for working hard with us to identify, investigate, and eliminate waste, fraud and abuse in our federal healthcare programs.”

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

The settled civil claims are allegations only. There has been no determination of civil liability. This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Matthew E. K. Howatt, Civil Chief Gregory B. David, and Auditor Dawn Wiggins.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Artavius Horne, a/k/a “Lo”, 35, of Philadelphia, PA was convicted at trial of three counts of sex trafficking minors by force, fraud or coercion.

During the week-long trial, the government presented evidence which showed that the defendant organized, operated and led a sex trafficking venture based in and around Northeast Philadelphia. As part of the scheme, the defendant recruited, enticed, harbored, transported, provided, obtained, or maintained three minor children, one of whom was 13 years old, to engage in commercial sexual encounters. Horne created internet advertisements for each of the victims on a website known as Backpage.com, and he transported them across state lines to New Jersey, New York, Washington D.C., and Maryland for the purpose of engaging in commercial sex acts. He also kept the victims in apartments throughout Philadelphia, also known as “trap houses,” where they were made to engage in commercial sex for the benefit of the defendant.

“The defendant’s days of trafficking girls by force and manipulation for his own financial benefit are over,” said First Assistant U.S. Attorney Williams. “Sex trafficking is an appallingly pervasive problem, exacerbated by the easy availability of online advertising, and it demands an aggressive response. We stand ready with our federal partners to identify and dismantle organizations that perpetuate this abuse.”

The case was investigated by the Federal Bureau of Investigation, and it is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.

PHILADELPHIA – United States Attorney William M. McSwain announced that Jeffrey Blackwell, 46, of Philadelphia, PA was charged by Superseding Indictment with honest services wire fraud, federal program bribery, filing a false tax return, and failure to file a tax return. In a news conference today, U.S. Attorney McSwain discussed the charges against the defendant and the commitment of the U.S. Attorney’s Office to investigating and prosecuting all types of public corruption.

The 13-count Superseding Indictment, unsealed this morning, alleges that the defendant – a former City of Philadelphia employee in the Office of the City Controller – committed a series of frauds, accepting more than $22,000 in bribes and kickbacks from individuals seeking City permits and contracts. Between 2013 and 2015 while serving in the Investigations Division of the Controller’s Office, Blackwell misused his official position to enrich himself by soliciting money in exchange for official actions or the promise of official actions, but rarely provided the promised permits or contracts. These promised services included lucrative city contracts and licenses, permits for home renovation work, and even mundane permits to park a storage container on the street. Blackwell is also charged with one count of federal program bribery for allegedly accepting a bribe to award a contract with the City to install decals on Philadelphia Police vehicles and a license to operate a used car sales business. Finally, the defendant faces charges related to making a false claim on his tax return in 2012, and failing to file federal tax returns in 2014 and 2015.

 “Corruption is an insidious crime.  It is a cancer that must be attacked and destroyed wherever it is found.  It is lethal and can literally suck the life out of an organization, or even a city,” said U.S. Attorney McSwain.  “My Office is committed to the fight against corruption:  if you are an elected official, a public official or a public employee and you debase yourself and your position and betray the public through corrupt acts, you will be prosecuted and jailed.  And when doing your job, don’t try to walk up to the line between corrupt and honest behavior.  Stay far away from that line.  Instead, do your job honestly and faithfully every day in every possible way.  That is what the public deserves.”

“When government employees seek bribes and kickbacks, they’re blatantly putting their own greed ahead of the interests of the people they serve,” said Christian Zajac, Assistant Special Agent in Charge of the FBI’s Philadelphia Division. “As alleged, Blackwell traded on his official position in order to enrich himself. In doing so, he deprived the citizens of Philadelphia of their right to honest services from their city workers. The FBI is committed to investigating public corruption, in order to protect the integrity of government at all levels. We’d ask anyone who may be aware of criminal misconduct by a public official to call our Philadelphia field office, or go to tips.FBI.gov and share the information.”

“This indictment is an important victory for America's taxpayers who play by the rules,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Those Americans who file accurate, honest and timely tax returns can be assured that the government will hold accountable those who don't.”

“This indictment sends a message that you can’t skirt City permitting rules,” said Philadelphia Inspector General Amy Kurland.  “The rules ensure that construction work will be done safely and honestly. We were pleased to have played a role in this investigation, and we look forward to working with our law enforcement partners to continue aggressively pursuing anyone who doesn’t play by the rules.”

“The vast majority of city employees are good people who work hard each and every day to improve the city,” said Philadelphia City Controller Rebecca Rhynhart.  “However, there are a few bad actors who abuse their positions and the public’s trust. We cannot turn a blind eye to those individuals. They must be rooted out and held to account. Today’s announcement sends a clear message that these kinds of egregious actions won’t be tolerated.”

If convicted, the defendant faces a maximum possible sentence of more than thirty years’ imprisonment.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service with assistance from the Philadelphia Office of the Inspector General, and is being prosecuted by Assistant United States Attorney David Ignall. An indictment, information, or criminal complaint is an accusation.

A defendant is presumed innocent unless and until proven guilty.