Eastern District of Pennsylvania

PHILADELPHIA - Kevin Budianto, 24, of Philadelphia, PA, was sentenced today by U.S. District Judge Gerald A. McHugh to five years imprisonment, following his guilty plea to one count of transportation and one count of possession of child pornography, announced United States Attorney William M. McSwain.  In addition, the defendant was sentenced to 10 years’ supervised release and fined $25,000.

According to court papers, Budianto, who worked at a Roman Catholic High School as an intern in 2013 after having graduated from the school in 2012, was apprehended based on two tips from Instagram, a social media platform on which Budianto posted child pornography images.  Investigators thereafter determined that Budianto’s computer contained hundreds of images and videos of child pornography depicting prepubescent children, including images of sadistic and masochistic abuse.

“The images in the defendant’s possession were horrific,” said U.S. Attorney McSwain. “There simply can be no tolerance or leniency for those who exploit children. In this case, and in others like it, a significant term of incarceration is appropriate and necessary.”

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

The case was investigated by the Federal Bureau of Investigation, the Pennsylvania Office of the Attorney General, and the Delaware County Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.

PHILADELPHIA – A federal grand jury today returned a superseding indictment against Kareem Murphy, 36, of Darby, PA, for possessing a firearm in a school zone in Philadelphia, announced United States Attorney William M. McSwain. Murphy had previously been charged with being a felon in possession of a firearm. 

The charges brought today under the Gun Free School Zones Act carry a maximum sentence of five years imprisonment, and this sentence must be served consecutively to any sentence for illegally possessing the firearm.  Murphy had already faced a minimum sentence of 15 years and a maximum sentence of life imprisonment for the charge of being a felon in possession of a firearm.

"Congress has mandated in the Gun Free School Zones Act that people who illegally possess firearms near schools suffer a greater penalty in order to help keep our school children safe,” said U.S. Attorney McSwain. “Anyone illegally possessing a firearm near a school can expect that we will prosecute and seek that greater penalty as part of our commitment to protect our children.”

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Nancy Rue.

 

PHILADELPHIA – A Bucks County medical office manager was sentenced yesterday to 14 years in prison by U.S. District Judge Gerald Pappert for his role in a conspiracy to distribute oxycodone and for health care fraud, announced U.S. Attorney William M. McSwain.

Michael Milchin, 37, of Philadelphia, the manager of Central Bucks Health Associates, was charged in 2017 with conspiring with 13 other defendants to fill hundreds of fraudulent prescriptions for oxycodone at various pharmacies in and around Philadelphia. Milchin then sold the fraudulently obtained pills to others. While the fraudulent prescriptions purported to be written by a physician with Central Bucks Health Associates, the physician in question had no affiliation with Central Bucks Health Associates and never authorized any of the prescriptions

“It is crimes like this that are perpetuating the opioid epidemic,” said U.S. Attorney McSwain. “Opioid abuse is killing people. It’s tearing apart families and ruining lives. As the court found, the defendant was driven only by greed, without regard to the public health hazard he was creating.  My office will continue to aggressively investigate and prosecute any criminal scheme that contributes to the opioid epidemic.”

Milchin also worked with a chiropractor to defraud private insurance companies, Independence Blue Cross and Aetna, by billing those insurers more than $700,000 for chiropractic services that were never provided.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Mary Kay Costello.

PHILADELPHIA — Felicia Charleston, 36, of Philadelphia, was sentenced on May 16 to 10 months in federal prison for using her position as a postal carrier to deliver packages containing marijuana to drug dealers in West Philadelphia, announced United States Attorney William M. McSwain. Charleston was sentenced by U.S. District Judge R. Barclay Surrick.

Charleston pled guilty to two separate indictments, both charging her with conspiracy to distribute at least 1,000 kilograms of marijuana, as well as one count of attempted possession with the intent to distribute 158 pounds of marijuana.

“The defendant exploited her position with the United States Postal Service by conspiring with drug dealers in order to line her own pockets,” said U.S. Attorney McSwain. “Her prison sentence is a reflection of the seriousness of her crimes.”

Charleston was a postal carrier at the West Market Post Office in Philadelphia and was responsible for delivering packages to addresses in West Philadelphia.  As charged in this case, Charleston agreed to divert postal packages containing marijuana (which listed fictitious delivery addresses) and deliver them to drug dealers. Specifically, Charleston left her postal route in order to deliver the packages to two drug organizations. For one drug organization, Charleston delivered packages to members outside of 48 N. Hobart Street in West Philadelphia and even carried packages inside the residence. Charleston also routed packages to another drug dealer by hand-delivering the packages at various locations in West Philadelphia.

“The vast majority of the Postal Service’s 600,000 employees nationwide are dedicated, hard-working individuals worthy of America’s trust," said Monica Weyler, U.S. Postal Service Office of Inspector General Special Agent in Charge, Philadelphia.  "However, a very small number of them choose to violate that trust by engaging in misconduct or criminal activity. Special agents with the U.S. Postal Service Office of Inspector General work with other law enforcement agencies to find those employees, investigate them, and seek their criminal prosecution and removal from the Postal Service, as we did in this case. To report criminal activity or serious misconduct by postal employees, contact USPS OIG special agents at 888-USPS-OIG or www.uspsoig.gov.”

The case was investigated by the United States Postal Service, Office of Inspector General (USPS-OIG), Homeland Security Investigations (HSI) Border Enforcement Security Taskforce (BEST), and the Pennsylvania Office of Attorney General, Bureau of Narcotics Investigations (BNI) and is being prosecuted by Assistant United States Attorneys Anita Eve and Tomika N.S. Patterson.

PHILADELPHIA – Vivian George Stewart, 49, who has used five aliases in his attempts to enter or remain in the United States, was sentenced May 16 to 26 months in prison for re-entering the country illegally, announced United States Attorney William M. McSwain. Stewart pled guilty in February.

Stewart had previously been convicted in 2006 of participating in a drug-trafficking conspiracy, and in 2009 of illegal reentry after deportation. In addition, Stewart has been deported on three separate occasions.

Most recently, Stewart was convicted of illegal reentry after deportation in the Southern District of Florida. Stewart was removed to Jamaica after serving his sentence, but he returned to the United States once again. In November 2017, the defendant was encountered in Philadelphia and identified from fingerprint analysis performed by agents with the Department of Homeland Security, Homeland Security Investigations, who concluded that Stewart had once again returned to this country unlawfully.

“This defendant has shown no regard for U.S. immigration laws and has been undeterred by prior criminal prosecution,” said U.S. Attorney McSwain. “This is a significant sentence and one that we hope will deter this kind of brazen disregard for U.S. law.”

The case was investigated by the Department of Homeland Security, Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Jennifer Jordan.         

Dkyle Jamal Bridges, 32, and Kristian Jones, 24, both of Claymont, Delaware, have been charged with multiple counts of sex trafficking of minors in an indictment unsealed May 11, announced United States Attorney William M. McSwain.

Specifically, the defendants are charged with conspiracy to engage in forcible sex trafficking of minors, two counts of forcible sex trafficking, and three counts of forcible sex trafficking of minors. According to the indictment, Bridges and Jones committed the various sex trafficking offenses between 2012 and 2017.

“The indictment alleges that the defendants and their associates operated a violent sex-trafficking enterprise in which women and several minor children were sold for commercial sex,” said U.S. Attorney McSwain. “Stopping human exploitation, and particularly child exploitation, is a priority for the Department of Justice, and we are working very hard with our law enforcement partners to find and prosecute all such offenders. In this case, we worked with the FBI and local police in both Pennsylvania and Delaware. That’s what it’s going to take to stop the unconscionable exploitation of these young victims.”

If convicted as charged, each defendant faces a maximum possible sentence of 1life imprisonment, a mandatory minimum term of fifteen years’ imprisonment, supervised release for a minimum term of five years and a lifetime maximum term, a $1,500,000 dollar fine, mandatory restitution, and a maximum $30,600 special assessment.

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

The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, the Tinicum Township Police Department, and the Newark (DE) Police Department.  The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.

 

David Haisten, 51, and Judy Haisten, 51, both of Irmo, South Carolina, were sentenced yesterday to 78 and 60 months of incarceration, respectively, by U.S. District Judge Gerald J. Pappert, announced United States Attorney William M. McSwain. A jury found the Haistens guilty in October 2017 of conspiracy as well as six counts of violating the Federal Insecticide, Fungicide, and Rodenticide Act, five counts of distributing misbranded animal drugs, and two counts of trafficking in counterfeit goods.

For about six years, and despite repeated warnings from numerous companies and government agencies, the defendants sold counterfeit DVDs, unregistered and misbranded pesticides, and misbranded animal drugs to customers online across the United States.

The defendants’ products, including pesticides that are extremely toxic in the wrong dose, posed a serious risk to animals and humans. Further, as detailed at trial, the defendants’ packaging and instructions for use increased the likelihood that an injury would occur.

“This joint venture generated millions of dollars in illegal income,” said U.S. Attorney McSwain. “Despite multiple warnings and cease and desist letters, the defendants continued to reinvent themselves and flout the law. Ultimately, it took federal arrests to stop them. Given their disdain for the law, the defendants deserved a substantial prison term.”

“To ensure that consumers know what they are purchasing and how to safely use these products, pesticides must be registered and properly labeled," said Susan Bodine, Assistant Administrator for the Environmental Protection Agency’s Office of Enforcement and Compliance Assurance. "Today's sentencing sends a strong signal that EPA and its law enforcement partners will hold responsible those who put consumers at risk for competitive advantage."

“The FDA is committed to working with our federal partners to bring criminals to justice who endanger our pets by distributing unapproved and unsafe drugs,” said Mark S. McCormack, Special Agent in Charge, Food and Drug Administration Office of Criminal Investigations’ Metro Washington Field Office.

“The uncontrolled distribution of unregistered and misbranded pesticides, and misbranded animal drugs pose a serious threat to public safety,” said Special Agent in Charge Marlon V. Miller, Homeland Security Investigations Philadelphia Field Office. “Let David and Judy Haisten’s sentencing serve as a reminder that our local, state and, federal partners will use all available means to investigate and prosecute individuals who disregard the rule of law.”

The case was investigated by the Environmental Protection, Criminal Investigative Division, the Food and Drug Administration Office of Criminal Investigations, and the Department of Homeland Security, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.  

“I would like to commend the jury for its careful review of the evidence presented in this case. For the past three weeks, the members of the jury patiently listened to many hours of testimony about the fraud perpetrated by David Shulick on the Philadelphia School District and, by extension, the students of Delaware Valley High School’s Southwest School.

Shulick secured funding from the School District by promising to provide at-risk students with a level of guidance counseling appropriate for their needs, psychological support services, and school security.  He also promised to pay teachers a decent wage. He flagrantly broke all of these promises. Instead, he took money specifically allocated for these laudable purposes and spent it selfishly on himself. The evidence presented to the jury showed that he intentionally cheated the School District, the students, and the public.

The jury found Shulick guilty of embezzling over $800,000 in federal funds allocated for use in educating at-risk high school students. In addition, the jury found Shulick guilty of conspiring with Chaka Fattah, Jr. to embezzle funds from the School District of Philadelphia, as well as bank fraud, making a false statement to PNC Bank, and filing false tax returns over multiple years. This verdict serves as a reminder that when it comes to education, my office has zero tolerance for fraud.

Moreover, the evidence at trial highlighted the breadth of Shulick’s fraud, which extended well beyond lies to the School District. In operating his school business, he lied to his accountants, lied to a bank, lied to employees, and lied to the IRS. He used his business like a personal piggy bank and a pass- through to hide his income and expenses from the IRS. He fabricated his business expenses to avoid his tax obligations and support an extravagant lifestyle, which included five-figure renovations on his vacation home at the Jersey shore, the installation of high-end speakers at his mansion in Gladwyne, and dance lessons for his children. He even disguised his housekeepers and nannies as employees of his business in order to cheat on his taxes.

I want to congratulate the trial team of Assistant United States Attorneys Michael T. Donovan, Christopher J. Mannion, Paul Gray, and Eric L. Gibson, as well as this Office’s Chief of Corruption Richard P. Barrett, and the highly skilled team of agents and analysts from the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, and the Department of Education, who worked together to expose Shulick’s shameful criminal activity and presented the evidence to the jury that resulted in his conviction.  I am very proud of their dedication and service to the public.”

 

Shawn Kosinski, 34, of Pottstown, PA, was sentenced yesterday by U.S. District Judge Wendy Beetlestone to 10 years of imprisonment followed by 15 years of supervised release, announced U.S. Attorney William M. McSwain. Kosinski pled guilty in January to distribution, possession, and receipt of child pornography.

During the course of this investigation, law enforcement officers determined that the defendant used an internet file sharing network called GigaTribe to distribute and receive child exploitation images and videos.  Investigators uncovered 235 videos and 920 images on Kosinski’s computer equipment, including some depicting prepubescent children, bondage, and bestiality. Also uncovered were extensive online “chats” with other GigaTribe users with whom Kosinski communicated in order to distribute and receive child exploitation images and videos.

“My Office and the Department of Justice are committed to identifying the criminals who commit child sexual exploitation and making sure each pays a severe penalty,” said U.S. Attorney McSwain. “Given the horrific nature of the offenses in this case, we believe the long prison sentence is absolutely justified and appropriate.”

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

This case was investigated by the Department of Homeland Security/Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Jennifer B. Jordan.

PHILADELPHIA – Kristopher Pylant, of Upper Darby, PA, was sentenced on May 3, 2018, to 30 years in federal prison for manufacturing thousands of sexually explicit images of his minor stepdaughter and for his possession of child pornography, announced U.S. Attorney William M. McSwain. 

“This was a horrific crime in which a young victim endured an unimaginable ordeal for over three years,” said U.S Attorney McSwain. “The defendant victimized and sexually assaulted his stepdaughter beginning when she was just 13 years old, and he cruelly videotaped his assaults.”

U.S. District Judge Cynthia M. Rufe called the sexual assaults “sordid” and the defendant “dangerous and controlling.” Judge Rufe further characterized the defendant’s absolute control over his stepdaughter by noting, “You don’t need chains and whips to put someone in bondage.”

In addition to the term of imprisonment, the court imposed a lifetime of supervised release and ordered that the defendant have no contact with the victim or her family for the rest of his life. 

The case was investigated by the FBI in conjunction with the Delaware County District Attorney’s Office and the Upper Darby Police Department.  It was prosecuted by Assistant United States Attorney Michelle Rotella.

James Samuel McKethan, 51, of Philadelphia, and formerly of Baltimore, Maryland, was charged today by indictment with failure to register as a sex offender, announced U.S. Attorney William M. McSwain.

McKethan was previously convicted of 4th degree sexual contact in Maryland and, as a result of his conviction, is required to register as a sex offender. When he failed to update his sex offender registration as required, a warrant was issued for his arrest. The U.S. Marshal Service located him in Philadelphia after it was discovered that he had been residing and working in Pennsylvania for all four quarters of 2017, but had failed to register his sex offender status with the Pennsylvania State Police. 

If convicted, the defendant faces 10 years’ imprisonment, 3 years’ supervised release, a $250,000 fine, and $100 special assessment. 

The case was investigated by the U.S. Marshal Service and is being prosecuted by Assistant U.S. Attorney Michelle Rotella.

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

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

 

Jacob Waitze, 22, of Southbury, Connecticut, was charged today by criminal information with cyber-stalking, announced United States Attorney William M. McSwain. 

The information alleges that, from October 23, 2015, through February 16, 2016, Waitze used an interactive computer service and an electronic communication system to engage in a course of cyber-stalking that caused substantial emotional distress to another individual.

If convicted as charged, the defendant faces a maximum possible sentence of five years’ imprisonment, supervised release for a maximum term of three years, a $250,000 dollar fine, full restitution of as much as $10,000, and a mandatory $100 special assessment.

The case was investigated by Homeland Security Investigations, the Philadelphia Police Department, and the Drexel University Police Department.  The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.

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

James Hickey, 54, of Allentown, was sentenced today to 18 months in federal prison by U.S. District Judge Juan Sanchez, announced U.S. Attorney William M. McSwain.  

Today’s sentencing stemmed from Hickey’s guilty plea in December 2017 to two sets of criminal charges.  First, Hickey pled guilty to bribing the Reading school board president in exchange for confidential information about a company’s bid on an energy contract with the school district; Hickey admitted that he wanted this confidential information so that his client could submit a lower bid.  Second, Hickey pled guilty to giving campaign contributions to Allentown Mayor Ed Pawlowski so the mayor would steer the city’s street lights contract (worth about $3 million) to a company called The Efficiency Network, for which Hickey worked as a consultant.  As stated in the government’s sentencing memo, Hickey said he would provide a steady stream of contributions to Pawlowski but that Pawlowski “has got to perform.”  Following a six-week trial that ended in February, a jury found Pawlowski guilty for his part in the pay-to-play scheme.

“This was textbook pay-to-play, and this defendant played it brazenly,” U.S. Attorney McSwain said. “He corrupted the contracting process of each city and left no room for an honest evaluation of contracts for the benefit of the citizens.  Under these circumstances, we believe the prison sentence was absolutely justified.”

The case is being prosecuted by Assistant United States Attorneys Michelle Morgan and Anthony Wzorek of the U.S. Attorney’s Office for the Eastern District of Pennsylvania. The case is being investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation and Pennsylvania State Police.

Joseph Michael Willard, 54, of Missouri, was indicted April 26 for the production and possession of child pornography, announced United States Attorney William M. McSwain. The indictment alleges that Willard produced and possessed images of minors – including one under age 12 – engaged in sexually explicit conduct.

“The young victims in cases like these are victimized over and over again because the horrific images stay in circulation forever,” U.S. Attorney McSwain said. “We are working diligently with our law enforcement partners to stop child exploitation, which is a national problem.”

If convicted the defendant faces a maximum possible sentence of lifetime incarceration, a mandatory minimum twenty-five years imprisonment, a mandatory minimum five years supervised release up to lifetime supervised release, a $1,750,000 fine, a $35,700 in special assessments. 

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

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

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

Sarah Norton, 38, of Jewett City, Connecticut, was charged by indictment April 26 with enticing a minor and traveling to engage in illicit sexual conduct with a minor, announced United States Attorney William M. McSwain.

The indictment alleges that, via the internet, the defendant tried to persuade an individual whom she believed was 14 years old to engage in sexual activity, and that she traveled to Pennsylvania to pursue a sexual encounter.

If convicted the defendant faces a maximum possible sentence of lifetime incarceration, a mandatory minimum ten years imprisonment, a mandatory minimum five years supervised release up to lifetime supervised release, a $500,000 fine, a $10,200 in special assessments. 

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

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

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

Bryan McGraw, 49, of Philadelphia, was charged today by criminal information with sending harassing text messages over a four-year period, announced United States Attorney William M. McSwain.

The information alleges that McGraw repeatedly sent communications between February of 2014 and March of 2018, via a telecommunications device, solely for the purpose of harassing a specific individual.

If convicted the defendant faces a maximum possible sentence of 2 years imprisonment, 1 year of supervised release, a fine of $250,000, restitution, forfeiture, and a $100 special assessment.

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

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

Liam Heim, 22, of St. Petersburg, Florida, was charged today by indictment with 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, announced United States Attorney William M. McSwain.  The indictment alleges that Heim committed each offense on March 29, 2018.

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

If convicted as charged, the defendant faces a maximum possible sentence of 1ife imprisonment, a mandatory minimum term of ten years’ imprisonment, supervised release for a minimum term of five years and a lifetime maximum term, a $500,000 dollar fine, mandatory restitution, and a maximum $10,200 special assessment.

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

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

Kareem Murphy, 36, of Darby, was charged today by indictment with being a felon in possession of a firearm, announced United States Attorney William M. McSwain.

If convicted, the defendant faces a minimum sentence of 15 years and a maximum sentence of life imprisonment.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  

Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

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

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

 

Remarks as prepared for delivery

 

Thank you very much, Deputy Commissioner Coulter, for that kind introduction. It is truly an honor to be here with all of you. And it is the honor of my lifetime to serve as your United States Attorney.

I’m going to talk to you today for a while, but before I get into the details of my speech, I have a message for you. It’s an important message, a serious message – it’s a message you need to hear. I’m going to keep it real simple. Are you listening? I want everyone in this room to look at me right now and hear this message. 

I love what you do. I love what you stand for. When you put on your uniform, you are telling the world that you have dedicated your life to public service, dedicated your life to keeping our communities safe – and that you’re even willing to risk your own life to do it. I respect you, I admire you, and I thank you. Everybody in this room is a hero to me. That’s what I think, and now you know exactly where I stand.

I am blessed to be leading a U.S. Attorney’s Office that is filled with good, honorable, dedicated prosecutors who want nothing more than to serve the public and do justice. And they are very, very good at what they do. But no prosecutor has ever prosecuted any case without the help of an outstanding law enforcement partner, like our partners in the Philadelphia Police Department.

Throughout my life, I have always been interested in how others define their core values. After all, those who spend the time considering and publicly stating their values are more likely to follow through and live their lives based on those values. The Philadelphia Police Department memorializes its values in the Department motto on its official shield: “Honor, Service, Integrity.” You believe in these values so strongly that you literally wear them on your uniform sleeve every single day. The Department’s stated mission is to be the model of excellence in policing by partnering with the community to fight crime, enforcing laws while safeguarding the constitutional rights of all people, and providing quality service to all of Philadelphia’s residents and visitors. The Department also strives to recruit, train, and develop exceptional individuals within its ranks.

When I consider the Department’s values, they make me thankful, and they make me proud. I see many of my own core values mirrored in those of this Department. This should come as no surprise. After all, the missions of the U.S. Attorney’s Office and the Philadelphia Police Department are rooted in the same foundation: to serve and protect the community, and to do justice. Earlier this month, in my first few days as the U.S. Attorney, I met with all of my prosecutors to explain my core values to them. These values help us to pursue justice and serve our community in every situation, no matter the individual, location, or circumstance. My core values are these: accountability, bravery, integrity, respect, determination and excellence. These are values that are also embraced by Commissioner Ross and this Department.

And living by these values has allowed the U.S. Attorney’s Office and the Philadelphia Police Department to achieve great success in the pursuit of justice. For example, together, we continue to fight the war against the opioid epidemic. In late December, four Philadelphia men (Basil Bey, Reginald White, Tyrik Upchurch, and Amin Wadley) were convicted by a federal jury on all counts in connection with their participation in a large heroin and crack cocaine distribution ring. For over a year and a half, this group worked in shifts to sell these deadly narcotics nearly 24 hours a day, seven days a week to customers in South Philadelphia. Some of these drug deals were within 1,000 feet of a playground. Due to the dedicated efforts of this Department and other law enforcement, we were able to obtain a wiretap in the case, and law enforcement made approximately thirty-five controlled purchases of heroin and/or crack from this drug group, with all purchases being captured on video. It is this kind of extensive and dedicated police work that allowed a jury to return a verdict of guilty on all counts. Congratulations to the 1st, 3rd and 17th Police Districts – over a dozen Task Force Officers and police officers testified at trial and assisted in the investigation.

We also know that drug-trafficking is not just happening in the streets, but also in doctor’s offices across our jurisdiction. Just this month, in another joint effort with your Department, Dr. Azad Khan was sentenced to two years in prison for conspiracy to distribute controlled substances and two counts of distribution of controlled substances. Khan and his doctor co-defendants held themselves out as professional addiction treatment specialists, but instead preyed on the very people they should have been helping. They abandoned their ethics to engage in the prescription-for-pay criminal world, recklessly selling preprinted prescriptions for cash and choosing greed over their duty to heal. Dr. Khan would not have been indicted and convicted at trial without the determination and dedication of this Department. Congratulations to the Department’s Intensive Drug Investigation Squad for its undercover work during this investigation.

And we do not only pursue resolutions in the courtroom, but outside of the courtroom as well. In February, the U.S. Attorney’s Office announced that it had joined with the Philadelphia Police Department and other federal, state, and local law enforcement partners to form an Opioid Law Enforcement Task Force. The Task Force will be responsible for developing, implementing, and coordinating a robust prosecution response to this national health emergency, and the Task Force could not be successful without your partnership.

Our work together does not only involve the drug epidemic. For example, in January, a federal grand jury returned a five-count indictment, charging defendant Kenneth Lewis with wire fraud. The indictment alleges that the defendant committed wire fraud by applying for credit cards using information of several non-profit organizations and an individual, and used the cards to purchase gold coins, precious metals, and diamond earrings. In this case, your Department partnered with the U.S. Postal Service in its investigation. Kudos to detectives in the Northeast Division for helping to put this case together.

And just last month, a grand jury returned a federal indictment charging Shyniquah Lightner and Malik Hudson with sex trafficking of a minor. According to the Indictment, the defendants used force, threats of force, fraud, and coercion to make multiple women engage in commercial sex acts, with two of those females being under 18 years of age.  If convicted, each defendant faces a mandatory minimum of 15 years of incarceration, up to a lifetime sentence. It was this Department’s hard work and collaboration with the U.S. Attorney’s Office and other partners on the Philadelphia Anti-Human Trafficking Task Force that made this investigation successful and furthered our collective goal to keep our children safe from exploitation. Congratulations to your Special Victims Unit – Anti Human Trafficking Task Force for its work on that case.

I could go on and on about our successful pursuits together. It is by living this Department’s values – Honor, Service, Integrity – that allows everyone in this room and on this force to pursue challenging investigations, succeed in stopping crimes, and hold the responsible parties accountable. And you have had many successes, and I know that you will continue to do so. But that does not mean that this will always be an easy road.

Indeed, it is harder today than perhaps in any time in American history to be serving in law enforcement. It has become somewhat fashionable in certain segments of the population to come out against the police and law enforcement. To his great credit, Commissioner Ross has not shied away from having an open dialogue about this criticism. Commissioner Ross has embraced this challenge, to make sure that every individual in every community knows that this Department is here for them, to serve and protect them. He has stressed building partnerships across this city, and under his leadership, this Department has made great strides.

But even with such strides, we all know that each and every one of you lives your life under a microscope. And not only are the police under scrutiny like never before, the tools of that heightened scrutiny are ever-present. Everything that you do and everything that you say can be posted on Facebook, tweeted, and made into a national news story in a matter of seconds. For those of you with family members who have previously served in law enforcement, this is one of those times where you can tell them at the Thanksgiving table that you do, in fact, have it much harder than they ever did.

You need to be aware of this constant drumbeat of attention. But I encourage you not to shy away from it. I want you to embrace it. Because when the media and the citizens of our community actually get the opportunity to look more closely, they get to see hard-working police officers who are keeping our communities safe every single day. Some agenda-driven individuals may want to highlight a more critical viewpoint for their own purposes. But I prefer to deal with the truth that can be found in statistics and facts, rather than in anti-factual ideology.

The fact is that officer-involved shootings have decreased significantly over the past few years. In 2012, there were 59 officer-involved shootings in Philadelphia. In 2017, there were 14, which is a 76% decrease from 2012 and over a 41% decrease from only the year before. I know that this is not by happenstance or good fortune, but by Commissioner Ross’s and the Department’s focus on improved training, internal accountability, and an ever-present commitment to public safety. These are not the only numbers that are down. Compared to this time last year, homicide is down by approximately 15%. This is due to many factors, including your ability to build better and lasting relationships between different Philadelphia communities and law enforcement. This Department has made foot patrols a staple of its strategy. Every new police officer walks a foot beat, and this makes a real difference in this city. It helps the community see you, and it shows our citizens that you are responsive and available for developing meaningful relationships and for having conversations with them, not just in an emergency, but in everyday life.

This Department has seen many successes under Commissioner Ross’s leadership. Not only do the statistics prove that, but so does the fact that I easily found those statistics (and many more) on the Internet, right on the website of the Philadelphia Police Department. And the free-flowing information does not end there. This Department now uses social media to connect with the world, providing testimonials by and for current and future police officers, while also trying to entice the public to learn more in order to have a greater understanding of who you are and what you do. Under the Commissioner’s leadership, this Department has embraced transparency more than ever before. There are real benefits of such openness with the community. First, this kind of transparency is one of many tools that can be used in crime prevention, and it may help spark community ideas as to how to solve some of our problems. Second, the community deserves to have access to information detailing where crime is occurring. Finally, when the community sees this hard data, our residents understand the determination and successes that you have on a daily basis, and can rest assured that their trust and faith in you is deserved. 

Two and a half years ago, when Mayor Kenney first announced that Commissioner Ross would lead the Department, the Commissioner answered questions from the press. I was struck at the time, and I still am, that he stated that he wanted everyone at the table and wanted to hear everyone’s input. Commissioner Ross encouraged everyone to roll up his or her sleeves and get in there. In committing both himself and this Department to improving the quality of life in Philadelphia, Commissioner Ross hoped that everyone would “take something and make it a little better than the way you found it.”

There will always be opportunities to make things better. This Department, the U.S. Attorney’s Office, and the City of Philadelphia will continue to face challenges. Philadelphia has a population of over 1.5 million people, making it the sixth most populous city in the country. This Department is the nation’s fourth largest police department, with over 6,300 sworn members and 800 civilian personnel. And while this entire Department works tirelessly to keep crime down, none of us will ever be able to eradicate crime entirely. While homicides are down in 2018, there were more homicides in the city in 2017 than there had been in any year since 2012.

One of Philadelphia’s greatest challenges right now continues to be the struggle against gun violence. I know that this Department is battling against the gun violence epidemic every single day, in part by sending officers to the most violent parts of the city at the most violent times of day. It is your determination, your hard work, and your bravery that will continue to chip away at the violence that threatens this city.

Philadelphia needs you now more than ever. We know what happens if the officers in a police department become demoralized and let it affect their work. All we have to do is look to our neighbor to the south, the City of Baltimore, which is now described as the most dangerous city in America, with an alarmingly high rate of violence and the highest per capita murder rate in the country. We’ve come too far in Philadelphia to go backwards now. We can’t become the next Baltimore.  The law-abiding citizens of this City deserve better – they deserve safe neighborhoods where they can work and play without fear. They deserve your best efforts. They are counting on you, and so am I.

I know there are many leaders within the Department here today, and I want to salute your continued stewardship of this force over all of these years. You have led this Department proudly to where it stands today. And just as importantly, we have the most recent recruits in the Police Academy. To the newest members of the Department, I want to congratulate you on your success in getting here and on your willingness to devote yourselves to public service.  

If you only remember one thing that I say today, I want you to remember this: thank you. Thank you for your partnership with the U.S. Attorney’s Office in pursuing justice. Thank you for your leadership in the community and for keeping all of us safe. Thank you for the sacrifices that you and your loved ones make on a daily basis. While I have never had the honor of serving as a police officer, I did serve as a Marine prior to my legal career. I know that the hours are long, that the danger is real, and that the salary will never match what you deserve and what you could earn in the private sector. But we do not serve for the pay or the glory. We serve because there is no greater purpose in this life than to serve others.

So on your longest, hardest, most challenging days, do not give up. Remember that the U.S. Attorney’s Office stands beside you; we could not do our work without you. We see your service and we know your sacrifice. Remain determined in your pursuit of Honor, Service, and Integrity. In the words of the Apostle Paul in the New Testament: “Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up.”

Thank you, and God Bless you all.

David Fetterolf, 54, was sentenced on April 25 to 10 years in prison for possessing more than 600 images and 29 videos of children being sexually abused, and for sharing the images and videos via the internet, announced United States Attorney William M. McSwain. Fetterolf pled guilty in November. Following his prison term, Fetterolf will be subject to a 10-year period of supervised release. He also received a $100,000 fine.

“This is a horrifying crime committed by a defendant who exploited children for his own sexual gratification,” U.S. Attorney McSwain said. “Fetterolf is part of a community of deviant individuals who enjoy watching the innocence of young children shattered, their intimate privacy destroyed, and the worst moments of their young lives documented forever for others.”

Fetterolf had a collection of child pornography images that included those depicting bondage and sadistic conduct.

“In a case like this, it’s important to remember his many young victims,” continued U.S. Attorney McSwain.  “Each image downloaded by the defendant depicts a horrifying, life-changing moment for a child.”

The case was investigated by Homeland Security Investigations and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorney Sherri Stephan.

PHILADELPHIA, Pa. — In his first public address to law enforcement since being sworn in as U.S. Attorney, William M. McSwain told Philadelphia police commanders, and this year’s class of recruits, that he wants them to know exactly where he stands.

“I love what you do,” U.S. Attorney McSwain said. “I love what you stand for. When you put on your uniform, you are telling the world that you have dedicated your life to public service, dedicated your life to keeping our communities safe - and that you’re even willing to risk your own life to do it. I respect you, I admire you, and I thank you. Everybody in this room is a hero to me.”

U.S. Attorney McSwain told the officers he’s well aware that they are living and working under a microscope and that this might be the most difficult time in history to be a police officer.

“And not only are the police under scrutiny like never before,” he said, “but also the tools of that heightened scrutiny are ever-present. Everything that you do and everything that you say can be posted on Facebook, tweeted, and made into a national news story in a matter of seconds. For those of you with family members who have previously served in law enforcement, this is one of those times where you can tell them at the Thanksgiving table that you do, in fact, have it much harder than they ever did.”

U.S. Attorney McSwain encouraged officers not to become discouraged by this increased scrutiny but, instead, to embrace it.  “Because when the media and the citizens of our community actually get the opportunity to look more closely, they get to see hard-working police officers who are keeping our communities safe every single day.”  

“If you only remember one thing that I say today, I want you to remember this: thank you. Thank you for your partnership with the U.S. Attorney’s Office in pursuing justice. Thank you for your leadership in the community and for keeping all of us safe. Thank you for the sacrifices that you and your loved ones make on a daily basis.”

Elizabet Tskhadiashvili of Philadelphia, was charged April 20 by criminal information* with bank fraud and aggravated identity theft, announced United States Attorney William M. McSwain.  

The information alleges that Tskhadiashvili, a teller at a Philadelphia branch of TD Bank, obtained bank customers’ personal identifying and account information from approximately January through March 2017, which she then provided to two other individuals who used the information to make withdrawals from the accounts of those customers.

“Thousands of dollars in withdrawals were made,” said U.S. Attorney McSwain. “Personal and account information of bank customers must be protected, first and foremost by bank employees themselves.”

If convicted the defendant faces a maximum possible sentence of 32 years.

The case was investigated by Homeland Securities Investigations, and is being prosecuted by Assistant United States Attorney Judy Smith.

Ramesh Venkata Pothuru, who collected over $450,000 in illegal filing fees and related expenses from more than 100 fraudulent visas and employer-sponsored green cards for nonimmigrant workers from his native India, was sentenced Thursday to one year and one day in prison by U.S District Judge John R. Padova.

On January 9, Pothuru, former owner and operator of Virgo Inc. and Isync Solutions, Inc., pled guilty to wire fraud and visa fraud for his role in the scheme.

The investigation disclosed that between 2010 and 2013, Pothuru collected hundreds of thousands of dollars in filing fees from workers he was sponsoring under the H-1B nonimmigrant worker visa program. Federal regulations prohibit employers from soliciting payments from H-1B nonimmigrant workers to cover the costs associated with filing fees, which fees are required by law to be borne by the sponsoring U.S. employer. In addition, many of the H-1B nonimmigrant workers were also recipients of employer-sponsored permanent foreign labor certification applications filed by Pothuru with the Department of Labor. Permanent foreign labor certification filings typically involve costs of over several thousand dollars in addition to the filing fees; Pothuru unlawfully collected both from the employees.

Pothuru collected these illegal fees and expenses from the employees he sponsored for H-1B visas and green cards through direct payments to his personal bank accounts. He subsequently submitted false applications in which he did not identify the fees that he collected from the nonimmigrant workers and swore that he did not collect.

“The defendant not only collected hundreds of thousands of dollars from these nonimmigrant workers, but he also made millions by operating his fraudulent business based on workers who received these visas,” said U.S. Attorney William M. McSwain. “The defendant took advantage of these workers from his home country and also undermined the integrity of the H-1B visa and green card programs. This sentence serves both as a deterrent and as protection from a defendant who has already demonstrated a stunning disregard for the law.”

“The Diplomatic Security Service is firmly committed to making sure that those who commit visa fraud face consequences for their criminal actions,” said Joseph S. Ugarte, Acting Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service, New York Field Office (“DSS”). “The strong relationship we enjoy with the U.S. Attorney’s Office and other law enforcement agencies around the world is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests.”

This is a joint investigation with U.S. Department of State’s Diplomatic Security Service, Department of Homeland Security, and Department of Labor, Office of Inspector General.

The case was prosecuted by Assistant U.S. Attorney Jennifer Jordan.

Mohammed Jabbateh, a violent and ruthless Liberian war lord also known as “Jungle Jabbah,” who had been living in East Lansdowne, Pennsylvania was sentenced today to 30 years in prison by U.S. District Judge Paul S. Diamond. Jabbateh, 51, was found guilty in October of two counts of fraud in immigration documents and two counts of perjury.

During the height of Liberia’s first civil war from 1992 to 1995, Jabbateh, while serving as commander of a warring faction known as the United Liberation Movement of Liberia for Democracy (ULIMO), committed various acts of shocking brutality including rapes, sexual enslavement, slave labor, murder, mutilation and ritual cannibalism. He also used children as soldiers.

“This defendant committed acts of such violence and depravity that they are almost beyond belief,” said U.S. Attorney William M. McSwain. “This man is responsible for atrocities that will ripple for generations in Liberia. He thought he could hide here but thanks to the determination and creativity of our prosecutors and investigators, he couldn’t. This prosecution was our only option under the law and his sentence achieves at least some measure of justice for his victims.”

According to trial testimony, in one instance Jabbateh ordered the heart of a captive be cooked and fed to his fighters. In another, fighters under the defendant’s command murdered a villager, removed his heart and ordered the town chief’s wife to cook it. Jabbateh later had the town chief himself murdered and ordered his widow to cook her husband’s heart.

In December 1998, when making application for asylum, and later for permanent legal residency, the defendant was not truthful about his activities during Liberia’s first civil war while he was a member of the ULIMO and later ULIMO-K rebel groups that battled for control of Liberia.

At Jabbateh’s trial, during two weeks of testimony from some two dozen witnesses, including 17 Liberian victims, the jury heard evidence that Jabbateh, as a ULIMO commander, either personally committed or ordered ULIMO fighters under his command to commit the following offenses: the murder of civilian noncombatants; the sexual enslavement of women; the maiming of civilian noncombatants; the torturing of civilian noncombatants; the enslavement of civilian noncombatants; the conscription of child soldiers; the execution of prisoners of war; the desecration of corpses and ritual consumption of human flesh; and the killing of persons because of race, religion, nationality, ethnic origin or political opinion.

 “Let today’s sentencing serve as an example of Homeland Security Investigations (HSI) commitment to bring to justice individuals such as Mr. Jabbateh,” said Marlon Miller, special agent in charge of HSI’s Philadelphia office. “Human rights violators will not evade justice and will be held accountable for their crimes committed abroad, nor will they find refuge here in the United States.” 

The case was investigated by Homeland Security Investigations (HSI) special agents Mark Gilland, Tom Eyre and Al Cabrelli, along with HSI Supervisory Special Agent Brian Jones. Also aiding in the investigation were Africa research specialist Marian Drake and victim assistance specialist Jackie Goldstein.

This case is being prosecuted by Assistant U.S. Attorneys Linwood C. Wright, Jr. and Nelson S.T. Thayer, Jr.

Craig Rosen, 61, a wealthy businessman who, for four years, failed to file federal income tax returns or pay taxes, was sentenced Monday to one year and one day in prison by U.S. District Judge Berle M. Schiller.  Rosen pleaded guilty in November to four counts of tax evasion.

The defendant, who has a degree in accounting, owned and operated several successful businesses associated with medical treatment and pain relief.  In each of the years 2009 through 2012, he earned income ranging from $175,000 and $432,000, but failed to file tax returns, report income or pay taxes for any of those years.  He also took steps to conceal his true income, including paying personal debts from accounts that were not in his name. 

“It’s our responsibility as Americans to comply with our tax laws,” said U.S. Attorney William M. McSwain. “This was a particularly brazen disregard of that responsibility, especially when you consider the defendant is an accountant. A prison sentence will serve as a deterrent to those who believe they can ignore the law and escape accountability.”

The explanation Rosen gave to investigators for his decision to stop paying taxes was his desire to avoid having to pay a large civil judgment owed to a former business partner.  But, as prosecutors wrote in the government’s sentencing memo, “a desire to avoid paying a private creditor neither explains nor excuses a decision not to pay taxes.”    

The case was investigated by the Internal Revenue Service and was prosecuted by Assistant U.S. Attorney Bea Witzleben.

Margaret Ortiz, 35, of Philadelphia, Pennsylvania pleaded guilty today to an Indictment charging her with Conspiracy to defraud the United States through claims, announced United States Attorney William M. McSwain.

According to the indictment and her admissions to the Court, Margaret Ortiz and others engaged in a scheme to deposit and cash federal income tax refund checks that were obtained by the filing of false federal income tax returns. The returns were filed in the names of stolen identities and, in the majority of cases, falsely claimed refunds of taxes that were never withheld. The total of the fraudulently obtained refund checks deposited into accounts Ortiz controlled exceeded $80,000. 

As a result of her guilty plea, the defendant faces a maximum possible sentence of 10 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment. United States District Judge Paul S. Diamond set sentencing for July 26, 2018.

The case was investigated by Internal Revenue Service-Criminal Investigation and is being prosecuted by Assistant United States Attorney David J. Ignall.

Chung Lam, age 39, of Sicklerville, New Jersey, was charged today by Information with 12 counts of failure to collect and pay taxes, in violation of 26 U.S.C. § 7202, announced United States Attorney William M. McSwain. Lam owned a C&L Labor, a company that provided temporary workers to other companies. Lam paid hundreds of its employees in cash, as “under the table” wages on which no employment taxes were withheld.

If convicted the defendant faces a maximum possible sentence of 60 years imprisonment, a fine of $3,000,000, a special assessment of $1,200, and three years of supervised release.

The case was investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Laurie Magid.                                                                      

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

PHILADELPHIA – A 44-count Second Superseding Indictment, unsealed today, charges nine people with conspiring to distribute phencyclidine (“PCP”) and cocaine base (“crack”) in the Kensington section of Philadelphia, announced United States Attorney William M. McSwain. 

Charged are: James Grimes, a/k/a “Speedy,” “Dink,” “HM,” 27, Hassain Griffin, a/k/a “Glizzy,” “Frizzy,” “ODOG,” “GlizzytheHitta,” 23, Andrew Gault, a/k/a “Fly,” “Butterknife King,” “BKK,” 26, Katina Grimes, a/k/a “Snoop,” “SnoopdaHitta,” 29, Tyreeq Lenair, a/k/a “Bear,” 26, Quran Justice, a/k/a “Skee,” 21, Wayne Brunson, a/k/a “Weez,” 23, Unterrio Parris, a/k/a “Dudda,” “Didda,” 24, Anthony Hill, a/k/a “Turk,” “Turt,” 27, all living in Philadelphia. 

In addition to the conspiracy count, the defendants are charged in multiple counts of distribution of phencyclidine, distribution of cocaine base, possession with the intent to distribute phencyclidine, possession with the intent to distribute cocaine base, distribution of controlled substances within 1000 feet of a school, possession with intent to distribute controlled substances within 1000 feet of a school, maintaining a drug house, unlawful use of a communication facility in furtherance of a drug trafficking crime, possession of a firearm in furtherance of a drug trafficking crime, use and carrying of a firearm in furtherance of a drug trafficking crime (see attached chart).

“This was an organized, methodical and violent group of drug dealers who used force to protect their business and their turf,” said U.S. Attorney McSwain. “This organization and others like it effectively hold neighborhoods hostage. If law abiding citizens are going to live without fear, we have to do everything possible to shut these organizations down.”

According to the Second Superseding Indictment, the conspiracy existed from approximately June 2014 to November 2016. Defendants James Grimes and Hassain Griffin led and organized the drug trafficking group that referred to itself as the “TruHittaz” (hereinafter, “the TruHittaz DTG”).  The TruHittaz DTG conducted their drug trafficking activities on and around the 700 and 800 blocks of East Willard and East Madison Streets in Philadelphia, PA.  The TruHittaz DTG obtained quantities of phencyclidine, cocaine base, heroin, marijuana, and other controlled substances from suppliers, both outside and within the Eastern District of Pennsylvania.  The TruHittaz DTG then distributed in excess of 1 kilogram of phencyclidine, 280 grams of cocaine base, and quantities of heroin, marijuana, and other controlled substances in and around their drug territory.

"This investigation is an example of ATF’s dedication to working with our state, local and federal partners in identifying, targeting, and investigating violent criminals who are involved in selling narcotics and firearms. These offenders prey upon innocent citizens and lessen the quality of life in our neighborhoods,” said Special Agent in Charge Donald Robinson. “Our neighborhoods deserve to exist without fear and intimidation inflicted by these violent gangs. These arrests should significantly impact the violent drug related violence that has wreaked havoc throughout Philadelphia.”

The TruHittaz DTG separated and packaged bulk quantities of liquid phencyclidine and cocaine base into different distribution quantities, and then distributed and sold the drugs to customers in and around their drug territory.  A large part of the area in which the TruHittaz distributed and possessed with the intent to distribute drugs was located within 1,000 feet of several area schools.  

The TruHittaz DTG classified themselves and each other as “bosses” or “shot callers,” “caseworkers,” “trappers,” and “lookouts,” delineating their role(s) in the organization. “Lookouts” watched for and alerted other members of the TruHittaz DTG to the presence of law enforcement in the area. “Trappers” sold drugs on the block, and “caseworkers” oversaw and supervised those sales. The “bosses” (also referred to as “shot callers” and “top callers”) of the TruHittaz DTG supplied controlled substances to the block and set the prices of, and received payments for, the controlled substances sold on the block.  The TruHittaz DTG sold drugs in and around their drug territory 7 days a week and 24 hours per day.  The TruHittaz DTG divided drug sales into day and night shifts, with the day shift running approximately 10:00 a.m. to 10:00 p.m. and the night shift running from 10:00 p.m. to 10:00 a.m.  The TruHittaz DTG staffed these shifts with lookouts, one to two caseworkers, and at least two trappers –one of whom sold phencyclidine and the other of whom sold cocaine base.  When one member of the TruHittaz DTG – at any level of the group – was unavailable, another member stepped into that role.

Members of the TruHittaz DTG had specific hand signals and logos to denote their membership in the TruHittaz including a hand signal that formed an “H” for “Hittaz.”  Members of the TruHittaz DTG used coded language to refer to the type and amount of phencyclidine, cocaine base, and other controlled substances for sale, such as, “hard” and “the ball game” (to refer to crack), “dime” and “basketball” (to refer to a packet/bundle of crack), “oranges” (to refer to larger quantities of crack) “dippers” or “dips” (to refer to cigarettes dipped in liquid PCP), “wet,” and “water” (to refer to liquid PCP), “fat bitches,” “a hizzy,” and a “soda” (to refer to various quantities of liquid PCP), “soccer balls” (to refer to marijuana), and “footballs” (to refer to heroin).   Members of the TruHittaz DTG also used the phrases “the jungle” and “the block” to refer to their territory at or around the 700 and 800 blocks of East Willard and East Madison Streets and the term “trapping” to refer to selling controlled substances. The TruHittaz also used coded language to warn each other of the presence of law enforcement, such as, “Mayback” to refer to the presence of police officers in vehicles, “Rollers” to refer to the presence of police officers on bicycles, and “Phantoms” to refer to the presence of police officers on foot.

Members of the TruHittaz DTG tried to get customers to buy from them individually, and sold drugs in concert with each other, with members providing Adippers@ B cigarettes dipped in liquid phencyclidine and small bags of crack cocaine that were sold for $10 with increased dollar value correlating to an increased quantity of drugs.  Members of the TruHittaz DTG also sold controlled substances in larger amounts, including a half-ounce, an ounce, and up to sixteen ounces of PCP and/or ounce or bulk quantities of crack cocaine.  When multiple members sold drugs in concert with each other, each participating member received a portion of the profits from the sale relative to his/her contribution. Individuals acting as “lookouts” for the TruHittaz DTG also received a portion of the profits of drug sales for the shift worked by the lookout.  All members of the TruHittaz DTG, regardless of their role at a given time, were paid in proportion to the amount of drugs sold on a given shift, so that the higher the quantity of drugs sold, the higher the profit each member received.

The TruHittaz DTG used residences in Philadelphia as “stash houses” and “trap houses” to store and package bulk quantities of PCP, crack cocaine, and other controlled substances for distribution and to collect and store the proceeds from their drug sales.  These houses included 7606 Castor Avenue, Apartment B (also referred to as “the AP”), 763 East Willard Street, 744 East Madison Street, 755 East Madison Street (also referred to as “the trap house”), 810 East Willard Street, as well as vacant lots on both 800 East Willard and East Madison Streets, and abandoned properties.

The TruHittaz DTG used several vehicles to transport controlled substances to the block, to store controlled substances for the block, to transport controlled substances to drug customers at various locations, and to pick up proceeds of drug sales. These vehicles included: a black GMC Yukon Denali; a dark blue Dodge Charger; a maroon Pontiac Montana van; a silver Lincoln MKS; and a silver Chrysler 300.

Members of the TruHittaz DTG did not permit non-DTG members to sell drugs in their territory.  To protect their territory, drug trafficking activities, drug customers, and drug proceeds, members of the TruHittaz DTG purchased, routinely carried, and sometimes used loaded firearms, and also kept firearms in hidden locations, including the “stash” house at 744 East Madison Street and at or around vacant lots at both 800 East Willard and East Madison Streets.  Members of the TruHittaz DTG referred to these firearms as “gats,” “ratchets,” “tools,” and/or “block guns.”  Members of the TruHittaz DTG used juveniles, to carry firearms and sell controlled substances to customers of the TruHittaz DTG.  The “bosses” and “upper management” of the TruHittaz DTG threatened and/or used force against other TruHittaz members and “taxed” other members (by requiring them to pay money to the bosses and upper management) to ensure the quality of the drugs sold on the block and/or that drug sales were conducted in accordance with their wishes.

Members of the TruHittaz DTG routinely warned each other of the presence of law enforcement in the area and used counter-surveillance tactics to prevent detection of their drug trafficking activities by law enforcement.  Members of the TruHittaz DTG used cellular telephones (“main phones”), disposable telephones (“burners” or “burner phones”), and social media to arrange for and facilitate the distribution and purchase of phencyclidine, cocaine base, and other controlled substances, and discarded or otherwise changed their burner phones every fourteen-to-thirty days to avoid detection by law enforcement.

If convicted of all counts, each defendant faces lengthy prison terms (see chart).

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department.  The case is being prosecuted by Assistant United States Attorneys MaryTeresa Soltis and Kelly A. Lewis Fallenstein.

Timothy Miller, 36, of Philadelphia, Pennsylvania was charged today by Information with one count of federal program bribery, announced United States Attorney William M. McSwain.

 According to the Information, Miller worked for the National Railroad Passenger Corporation (“Amtrak”) Procurement & Logistics Department as its Lead Contract Administrator responsible for procuring equipment and services and for managing the account for Amtrak diesel and locomotive seat cushion vendors. Amtrak is a recipient of federal grant funds from the United States Department of Transportation.

“The defendant in the case was responsible for millions of dollars in contracts in what was supposed to be a fair bidding process. As the filing alleges, he simply sold out his position,” U.S. Attorney McSwain said.

The Information charges that, from about August of 2015 through June of 2017, Miller awarded more than $7.6 million in contracts to a small manufacturing firm, in exchange for bribes of approximately $20,000 and other things of value, including trips to Rehoboth Beach arranged by two executives at the firm.

“We’re very proud of our joint efforts with the cross-agency team of investigators who helped bring this case to light,” said George Dorsett, assistant Inspector General for Investigations with Amtrak’s Office of Inspector General. “We commend their continued dedication, and we remain dedicated to supporting the U.S. Attorney’s Office as this case progresses.”

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

The case was investigated by the Amtrak Office of Inspector General, the Federal Bureau of Investigation, U. S. Department of Transportation Office of Inspector General, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Eric L. Gibson.

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

 

 

PHILADELPHIA – William M. McSwain, U.S. Attorney for the Eastern District of Pennsylvania, has named the office’s new senior executive leadership team.

McSwain, who was sworn in last week, named Assistant U.S. Attorney Jennifer Arbittier Williams to be his First Assistant U.S. Attorney, effective immediately. Williams is currently the office’s Chief of National Security and Cybercrime. For her work as a prosecutor, she was given the Anti-Defamation League’s SHIELD award which recognizes law enforcement success in the fight against hate crime and extremism. She also successfully prosecuted the first case charging material support of terrorists in the history of the district – the so-called “Jihad Jane” case. “It will be an honor to serve as First Assistant,” said Williams. “After serving for 16 years as a prosecutor in this office, I look forward to bringing my experience in fighting terrorism and cybercrime to a new leadership role.”

McSwain named former U.S. Attorney Louis Lappen as Deputy U.S. Attorney. Lappen had served as the U.S. Attorney since November 2017 and as the Acting U.S. Attorney since 2016. As First Assistant U.S. Attorney from 2010 until 2016, he supervised the Criminal, Civil, and Administrative divisions of the office. He has served as an Assistant United States Attorney in the Eastern District since 1997, investigating and prosecuting a variety of cases, including white collar crime, corruption, child exploitation, violent crime, and narcotics distribution. Lappen successfully prosecuted a high-ranking police officer for corruption and securities fraud matters involving hundreds of millions of dollars in losses.  He has received numerous awards and commendations including the American Bar Association’s Norm Maleng Minister of Justice Award. “This office has a history of success and stability,” said Lappen. “I’m looking forward to working closely with the U.S. Attorney in maintaining our culture of excellence.”

Denise Wolf, an Assistant U.S. Attorney in the Criminal Division since 2003, has been named Chief of the Criminal Division, effective April 24, 2018. Wolf has served in the white collar/economic crimes unit of the Criminal Division, along with the firearms and corruption units. She has handled a wide variety of cases, including the prosecution Philadelphia Traffic Court judges and court administrators for ticket-fixing, which led to the Pennsylvania legislature abolishing the Traffic Court.  In addition, in 2006, Wolf received the Attorney General Award and other commendations for her role in the prosecution of Eli Lily pharmaceutical.  “It’s very humbling to be named Chief of the Criminal Division, and I am looking forward to the challenge,” said Wolf. “I’ll be working with some of the most talented prosecutors in the country.”

McSwain has named Gregory David, an Assistant U.S. Attorney in the Civil Division since 2010, as Chief of the Civil Division, also effective April 24, 2018. David has played a key role in several significant civil cases, including a multi-district False Claims Act investigation that led to a $150 million settlement against the largest home health care company in the country. For his work, David received the Department of Justice Civil Division’s Special Commendation. He will supervise all civil matters including affirmative civil enforcement actions and defense of the federal government in civil litigation. “This is one of the most successful and trailblazing civil divisions in the country,” David said. “I look forward to working with and leading a deep bench of talented Assistant U.S. Attorneys.”

“We have an amazing group of talented and dedicated public servants in this office,” said McSwain. “I’m excited about our new leadership team. I look forward to working with them and supporting them in every way possible.”

United States District Court Judge Joel H. Slomsky on Wednesday ordered Renee Tartaglione to forfeit $2.4 million in proceeds from her scheme to defraud the Juniata Community Mental Health Clinic. Tartaglione was convicted in June 2017, on all 53 counts of conspiracy, theft, fraud and tax evasion. Tartaglione siphoned some $2 million from the clinic of which she was president, and used some of that money to improve a building she owned that then appreciated in value.

“There’s a long list of victims in this case,” said U.S. Attorney William M. McSwain. “The economically disadvantaged served by the clinic deserved better. The guilty verdict, and now the Judge’s forfeiture order, bring a measure of justice for those victims.”

Judge Slomsky ordered the forfeiture to be paid from the proceeds from the sale of Tartaglione’s properties on 3rd Street and 5th Street in Philadelphia, as well as two homes at the New Jersey shore.  

The case was prosecuted by Assistant U.S. Attorney Bea L. Witzleben and Department of Justice Trial Attorney Peter Halpern.

The 2016 indictment charged that Tartaglione purchased the building on 3rd Street in Philadelphia, which housed the clinic, and then raised the rent, repeatedly, causing the clinic’s rent for the building to increase from $4,500 per month to $25,000 per month. 

Tartaglione’s company, Norris Hancock LLC, also purchased the building on 5th Street and, in December 2012, leased it to the clinic under a lease that called for rent of $35,000 per month for the first two years, and $75,000 per month for the next three years.  The market rent for that building was $23,000 per month. 

 

PHILADELPHIA – Tania Thompson-Rapley, 57, of Philadelphia, PA, pleaded guilty to stealing $50,000 from a legally blind Philadelphia homeowner.  Thompson-Rapley falsely pretended to be a lawyer to help the victim pay the real estate taxes on his home.  Thompson-Rapley then assisted the victim secure a bank loan for $50,000.  However, rather than use that money to pay the victim’s real estate taxes, Thompson-Rapley used that money for her own personal expenses.  Thompson-Rapley then sent forged documents to the victim and to the attorneys working for the City of Philadelphia which falsely reported that the taxes had been paid. Thompson-Rapley is scheduled to be sentenced on July 24, 2018 before the Honorable Mitchell S. Goldberg.

The case was investigated by the Federal Bureau of Investigation.  It was prosecuted by Assistant United States Attorney Robert Livermore.

PHILADELPHIA – Stanley Davis, 50, of Philadelphia was sentenced today to 18 months in prison by the Honorable R. Barclay Surrick for distribution of controlled substances. 

Davis was a Philadelphia Police Officer assigned as a task force officer with the Federal Bureau of Investigation, working on narcotics investigations.  In September or October of 2016, Davis was working in the Kensington section of Philadelphia, an area where illegal drugs were frequently bought and sold.  Davis spotted two young woman who were in Kensington attempting to buy drugs.   He approached the women, ostensibly to gain information on drug trafficking activity in the area.  He exchanged phone numbers with the women and began sending them text messages, which soon turned sexual in nature.  Davis entered into a sexual relationship with the first woman and later entered into a sexual relationship with the second woman.  During the course of these relationships, Davis provided each woman with controlled substances, including heroin and crack. 

“The conduct of former Philadelphia Police Officer Stan Davis is reprehensible” said United States Attorney William M. McSwain. “The Kensington area of Philadelphia has long been ravaged by the impact of the drug trade, and Davis served his own agenda by preying on the vulnerability of women struggling with drug use.  Unlike Davis, the overwhelming majority of the men and women of the Philadelphia Police Department are dedicated servants to the community whose fine reputations should not be tarnished by the outrageous conduct of this one police officer.”

The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Justice, Office of the Inspector General with assistance from the Pennsylvania State Police and the Philadelphia Police Department.  It is being prosecuted by Assistant United States Attorney Robert J. Livermore

Abel Helb, 28, of Philadelphia, Pennsylvania was charged today by Information with one count of conspiring to possess and pass counterfeit currency and three counts of passing counterfeit currency announced United States Attorney William M. McSwain. According to the Information, Helb conspired with others to pass counterfeit one hundred dollar bills to purchase prepaid debit cards and other merchandise from pharmacy drug stores and dollar stores. Helb and his co-conspirators used counterfeit currency at stores in Pennsylvania, New Jersey, and Tennessee to commit the fraud. 

The defendant faces a maximum possible sentence of five years’ imprisonment if convicted of conspiracy and 20 years’ imprisonment for each count charging him with passing counterfeit currency. He also faces a maximum fine of $1,000,000, a $400 assessment, and three years of supervised release.

The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attorney Tiwana Wright.                                                                     

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

PHILADELPHIA – Dr. Azad Khan, 64, of Villanova, PA, was sentenced to 24 months in prison by the Honorable Lawrence F. Stengel in the United States District Court for the Eastern District of Pennsylvania.  A federal jury found Khan guilty on July 25, 2017 of conspiracy to distribute controlled substances and two counts of distribution of controlled substances, all arising from Khan’s employment at a clinic run by co-defendant Dr. Alan Summers.

Dr. Khan worked at a medical clinic operated by Dr. Summers on South Broad Street in Philadelphia that sometimes operated under the business name “NASAPT” (National Association for Substance Abuse-Prevention & Treatment).  As proven at trial, Summers, Khan, and the other doctors employed at the clinic prescribed large doses of Suboxone and Klonopin in exchange for large cash payments.  Suboxone is a brand name for a drug used to treat opiate addiction.  The government’s experts and the defendant’s own expert testified at trial that Suboxone and Klonopin should never be prescribed together, except in rare cases when absolutely necessary.  At Dr. Summers’s clinic, virtually all customers received prescriptions for both Suboxone and Klonopin, regardless of their medical need.  During the duration of the conspiracy, Dr. Summers, Dr. Khan, and other doctors at the clinic illegally sold over $5 million worth of these controlled substances. 

Almost all of the prescriptions for Suboxone and Klonopin were pre-printed before the customer met with a doctor.  Summers, Khan and the other doctors working at the clinic failed to conduct medical examinations or mental health examinations as required by law in order to legally prescribe these controlled substances.  The amount of Suboxone and Klonopin which Khan and the other doctors prescribed depended on the amount of cash the customer paid rather than any medical reason.  For $200, the customers received a month’s supply of Suboxone and Klonopin.  For $50, the customers received a week’s supply.  Evidence at trial demonstrated a stunning lack of medicine being performed at Summers’s clinic by Khan and many of the other doctors at the clinic.

Several customers who frequented this clinic testified that they were, in fact, drug dealers or drug addicts who sold the prescribed medications.  Khan’s own records showed that his customers tested positive for illicit drugs and negative for Suboxone and Klonopin.  Khan ignored the drug tests which showed that some of his customers were not taking the prescribed medications and he continued to prescribe them large doses of Suboxone and Klonopin.  

Dr. Summers, as well as two other doctors involved in this scheme, Dr. Keyhosrow Parsia and Dr. Clarence Verdell, have pleaded guilty and have either already been sentenced or await sentencing.

“Every doctor who abandons his or her ethics to engage in the prescription-for-pay culture is breaking the law,” said United States Attorney William M. McSwain. “It is ironic that these defendants, while holding themselves out as professional addiction treatment specialists, preyed on the very people they should have been helping.  By recklessly selling preprinted prescriptions for cash, they chose greed over their duty to heal.  Our office will continue to investigate and prosecute drug organizations on the street and in doctors’ offices when their unscrupulous and illegal conduct contributes to this deadly opioid epidemic.”

“Dr. Khan’s flagrant disregard for his oath as a doctor and total lack of concern for the well-being of his customers led to the illegal distribution of $5 million worth of controlled substances,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA is responsible for the prevention, detection, and investigation of the diversion of controlled pharmaceuticals; we will continue to aggressively pursue the rogue doctors that choose to engage in this criminal activity.” 

“Today’s sentencing sends a clear message that health care fraud and drug diversion will not be tolerated,” said Special Agent in Charge Maureen R. Dixon, of the Office of Inspector General for the Department of Health and Human Services. “We will continue to work with our law enforcement partners to protect government funds and keep the public safe from dangerous drugs.”

The case was investigated by the Drug Enforcement Administration, the Department of Health and Human Services Office of the Inspector General, and the Internal Revenue Service Criminal Investigations, with assistance from the Philadelphia Police Department and the Pennsylvania Bureau of Narcotics Investigations.  It was prosecuted by Assistant United States Attorneys Robert Livermore and Katherine Driscoll.

William M. McSwain, who served as a federal prosecutor in Philadelphia before entering private law practice, returned to government service today as the United States Attorney for the Eastern District of Pennsylvania.

The Chief Judge of the United States District Court for the Eastern District of Pennsylvania, Lawrence F. Stengel, administered the oath of office to Mr. McSwain, who was nominated by President Trump to serve as U.S. Attorney on December 20, 2017 and unanimously confirmed by the U.S. Senate on March 20, 2018.  A public investiture ceremony will be held at a later date.

“It is a privilege to serve as the Eastern District of Pennsylvania’s U.S. Attorney, and I am deeply grateful to all who have supported my nomination,” said U.S. Attorney McSwain.  “I look forward to working with the dedicated public servants in the U.S. Attorney’s Office and the brave men and women of our law enforcement partners in the pursuit of justice for the people of our District and nation.”

Louis D. Lappen, who for the past 15 months served as Acting U.S. Attorney, will remain with the Office as the Deputy United States Attorney, a senior advisor to U.S. Attorney McSwain.

Prior to his appointment as U.S. Attorney, Mr. McSwain was a partner at the law firm of Drinker Biddle & Reath in the firm’s Philadelphia office.  He served as an Assistant U.S. Attorney in the Criminal Division of the U.S. Attorney’s Office for the Eastern District of Pennsylvania from 2003 to 2006.  Mr. McSwain graduated with honors from Yale University in 1991 and from the Harvard Law School in 2000, where he served as an editor of the Harvard Law Review.  He clerked for the Honorable Marjorie O. Rendell, United States Circuit Judge of the United States Court of Appeals for the Third Circuit.  Prior to law school, Mr. McSwain served as a U.S. Marine Corps infantry officer and scout/sniper platoon commander.

As U.S. Attorney, Mr. McSwain is the chief federal law enforcement officer responsible for all federal criminal prosecutions and civil litigation involving the United States in the Eastern District of Pennsylvania, which is one of the nation’s most populous districts with over 5 million people residing within its nine counties (Berks, Bucks, Chester, Delaware, Lancaster, Lehigh, Montgomery, Northampton, and Philadelphia counties), covering about 4,700 square miles.  Mr. McSwain supervises a staff of approximately 130 Assistant U.S. Attorneys and a similar number of non-attorney support personnel at offices in Philadelphia and Allentown.

Mr. McSwain is the 39th U.S. Attorney for the Eastern District of Pennsylvania, an office that was established in 1789.  He resides in Chester County, PA and is the first Chester County native to hold the position.

United States Attorneys Louis D. Lappen of the Eastern District of Pennsylvania announced that the Delaware River Port Authority (DRPA) has agreed with the Department of Justice to take action relating to the accessibility of DRPA’s PATCO train line for individuals with mobility assistance issues.

Following a government investigation, DRPA has agreed to post signs advising individuals with mobility assistance issues how to request alternate transportation in the event of an elevator outage at one of PATCO’s elevator-equipped stations.  DRPA has for several years provided alternate transportation for such individuals in the event of an elevator outage.  The additional signs will inform mobility-impaired patrons at the elevators of how to utilize this alternate transportation.

“It is in everyone’s interest that individuals with mobility impairments have full access to public transportation,” said U.S. Attorney Lappen of the Eastern District of Pennsylvania, “and it is critical that those individuals know how to access the programs in place for them.  We commend DRPA for its cooperation in the investigation and for agreeing to a common sense approach to this situation.”

The case was handled by Assistant United States Attorneys Paul W. Kaufman and Anthony Scicchitano of the United States Attorney’s Office for the Eastern District of Pennsylvania and Assistant United States Attorney Jessica O’Neill of the United States Attorney’s Office for the District of New Jersey, in conjunction with David Knight of the Civil Rights Division of the United States Department of Justice.

 

Clifford Riheem Elisah Bright, 29, of Trenton, New Jersey, was charged yesterday by indictment with transporting firearms from the Eastern District of Pennsylvania to New Jersey while engaged in the business of dealing in firearms without a license announced United States Attorney Louis D. Lappen.  Bright was also charged with 11 counts of interstate travel to acquire firearms for the purposes of unlicensed dealing in firearms and 15 counts of making false statements to a federal firearms licensee.  The indictment alleges that from December 30, 2017 through February 24, 2018, while engaged in the business of dealing firearms without a license, Bright traveled from the State of New Jersey to the Eastern District of Pennsylvania to acquire the firearms and then transported them back to the State of New Jersey.  The indictment also alleges that on or about November 18, 2017 through March 1, 2018, Bright purchased 24 firearms from three different federal firearms licensees, and in doing so, knowingly made false statements pertaining to information that the law requires the licensees keep. 

If convicted of the charges, defendant faces a maximum sentence of 190 years’ imprisonment, 3 years’ supervised release, a $6,750,000 fine, and a $2,700 special assessment, restitution, and forfeiture of the firearms involved.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.

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

 

PHILADELPHIA – Robert Atkins, 28, of Chester, PA, has been charged by indictment with distribution of fentanyl resulting in death, announced United States Attorney Louis D. Lappen and Delaware County District Attorney Katayoun Copeland. Atkins has also been charged with five counts of distributing fentanyl and one count of distributing fentanyl within 1,000 feet of a school. The death charge results from the September 9, 2017 fatal overdose of an Upper Darby Township resident from fentanyl that was allegedly sold to him by Atkins.

“We have a public health crisis in this country involving opioid abuse that is exacerbated by individuals who continue to distribute these deadly substances,” said Lappen. “The impact on our community is immeasurable and tragic. Our office will continue to work with our federal and local partners through the Eastern District of Pennsylvania’s Opioid Law Enforcement Task Force to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.” 

“The defendant had no regard for the people to whom he peddled his poison, and continued to distribute this deadly venom on our streets even after causing the death of one of our Delaware County residents,” said Copeland. “Any drug trafficker who distributes these lethal drugs on our streets shall be on notice that we will hold you accountable for the devastation of our communities.”

The case was investigated by the Drug Enforcement Administration, the Delaware County Drug Task Force, and the Folcroft Borough and Upper Darby Police Departments.  It is being prosecuted by Assistant United States Attorney Faithe Moore Taylor and, from the Delaware County District Attorney’s Office, Special Assistant United States Attorney Sharon H. McKenna.

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

PHILADELPHIA - Stamatios “Tom” Kousisis, 60 of Downingtown, PA and Emanouel “Manny” Frangos, 41, of Campbell, OH, along with Alpha Painting & Construction Co., Inc., of Baltimore MD, and Liberty Maintenance, Inc., of Youngstown, OH were charged today by Indictment with conspiracy to commit wire fraud, wire fraud, and making false statements in a scheme involving the USDOT Disadvantaged Business Program and work performed on the federally funded Girard Point Bridge project and the federally funded 30th Street Station, announced United States Attorney Louis D. Lappen.

Kousisis is the Project Manager of Alpha and Frangos is an owner of Liberty Maintenance, which are both bridge painting contractors, although neither is a certified Disadvantaged Business in Pennsylvania.  The alleged scheme involved Alpha-Liberty JV, a joint venture between defendants Liberty Maintenance and Alpha Painting, and Markias, Inc., a now-defunct certified Disadvantaged Business.

In September 2009, PENNDOT awarded a contract for approximately $70.3M to a triventure that included the Alpha-Liberty JV to perform structural steel painting and repairs, and concrete repairs, on the Girard Point Bridge in Philadelphia.  As part of that award, the triventure made a commitment to PENNDOT to subcontract approximately $4.7M in Disadvantaged Business work to Markias to supply materials to be used in performing the contract.  Under governing law, the Alpha-Liberty JV was only entitled to Disadvantaged Business credit for worked performed by a Disadvantaged Business that was performing a commercially useful function.  Instead, according to the indictment, the Alpha-Liberty JV and Kousisis ordered materials needed for their work on the Girard Point Project directly from suppliers that were not Disadvantaged Businesses, and used Markias as a mere pass-through or front, to make it falsely appear that disadvantaged business enterprise requirements had been met on the Girard Point Project when those requirements had in fact not been met.  Markias did not perform a commercially useful function. 

In December 2010, PENNDOT awarded a contract for approximately $50.8 million to a joint venture of two companies referred to in the indictment as Company C and Company F, to perform structural steel painting and repairs and roadway reconstruction beneath and around AMTRAK’s 30th Street Train Station in Philadelphia.  Company C and Company F entered into a subcontract, for approximately $15 million, for the Alpha-Liberty JV to perform the structural steel painting beneath 30th Street Station.  As part of the bid process, Company C and Company F committed to subcontract approximately $1.7M in Disadvantaged Business work to Markias to supply paint materials for the 30th Street Project.  Instead, according to the indictment, the Alpha-Liberty JV and Kousisis ordered materials needed for their work on the 30th Station Project directly from suppliers that were not Disadvantaged Businesses, and used Markias as a mere pass-through or front, to make it falsely appear that disadvantaged business enterprise requirements had been met on the 30th Station Project when those requirements had in fact not been met.  Markias did not perform a commercially useful function. 

In addition, the indictment alleges that the Alpha-Liberty JV and Kousisis, and Frangos ordered materials to be delivered to and used on out-of-state projects while directing that the purchase invoices be sent to Markias in New Jersey.  Then, allegedly at the direction of Alpha-Liberty JV and Kousisis, and Frangos, Markias issued invoices that made it falsely appear that those supplies had been used on the Girard Point and 30th Street Projects in Pennsylvania.  Alpha-Liberty JV and Kousisis, and Frangos allegedly caused Company C to falsely report to PENNDOT that the supplies delivered to and used on the out-of-state projects qualified for Disadvantaged Business credit in Pennsylvania when those purchases did not so qualify.  PENNDOT awarded approximately $3.26 million in DBE credit to for the Girard Point Project and approximately $1.275 million in Disadvantaged Business credit for the 30th Street Station Project based on Disadvantaged Business work supposedly performed by a disadvantaged business (Markias). Alpha-Liberty JV paid Markias 2.25% of the face value of the invoices processed by Markias allegedly to act as a pass-through.

If convicted the defendants face a statutory maximum sentence of 170 years in prison, a possible fine, supervised release, and a $1600 special assessment.

The case was investigated by the U.S. Department of Transportation Office of Inspector General, the FBI, the Department of Labor Office of Inspector General, and Amtrak Office of Inspector General. It is being prosecuted by Assistant United States Attorney Paul Shapiro.                                                                          

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

Shyniquah Lightner, 26, and Malik Hudson, 21, both of Philadelphia, were charged today by Indictment[1] with sex trafficking of a minor, announced United States Attorney Louis D. Lappen.

The indictment alleges that between July 2017 and September 2017, defendant Shyniquah Lightner was the operator of a prostitution venture in Philadelphia, Pennsylvania, and defendant Malik Hudson assisted Lightner in the operation.  As part of the venture, Lightner recruited young females to work as prostitutes in her business, and she created Internet advertisements in which she marketed various females as available for purchase for purposes of prostitution.  These advertisements featured pictures of the females, either scantily clad or partially nude, a description of each female, and a phone number to call to arrange a meeting.  Defendants Lightner and Hudson used force, threats of force, fraud, and coercion to cause the females who worked for them to engage in commercial sex acts.  Two of the females Lightner recruited and advertised were under 18 years of age.  Lightner and Hudson are charged with sex trafficking of Minor 1.  Additionally, Lightner is charged in a second count with sex trafficking of Minor 2.

If convicted, Lightner faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison, a minimum of 5 years up to lifetime-supervised release, a $500,000 fine, and a $200 special assessment.

If convicted, Hudson faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison, a minimum of 5 years up to lifetime-supervised release, a $250,000 fine, and a $100 special assessment.

"We are privileged to have collaborated with our Human Trafficking Task Force partners in the investigation and attendant arrests," said Philadelphia Police Comissioner Ricard Ross. "Our collective efforts resulted in the arrests of two dangerous predators, and furthered our overarching mission to keep our children safe from exploitation."

"The task force brings together the expertise, training, experience, and law enforcement authorities of the partnered agencies to help identify human traffickers, and prosecute them while also protecting and aiding survivors.  “HSI Philadelphia is pleased that the newly formed multiagency Anti-Trafficking Coalition worked jointly on this investigation, and we look forward to expanding our partnerships with private and public entities to combat human trafficking,” said Marlon V. Miller, special agent in charge of HSI Philadelphia.

The case was investigated by the Homeland Security Investigations (HSI), the Philadelphia Police Department Special Victim’s Unit (SVU) and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Jessica Natali.  This case is part of the Philadelphia Anti-Human Trafficking Task Force.  Members of the joint task force include the HSI Philadelphia, the Philadelphia Police Department’s SVU, the Philadelphia District Attorney’s Office Family Violence & Sexual Assault Unit, the Federal Bureau of Investigation, the Salvation Army and the United States Attorney’s Office for the Eastern District of Pennsylvania. 

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

 

Edward Torres, 30, of Philadelphia, Pennsylvania and Alejantro Levya-Granados, 47 and Sergio Arturo Maciel-Landeros, 28, both of Mexico, were charged today by Indictment[1] with conspiracy to possess with intent to distribute six kilograms of heroin and possession with intent to distribute six kilograms of heroin, and aiding and abetting the same; announced United States Attorney Louis D. Lappen.  The charges arise from the defendants’ possession of approximately six kilograms of heroin inside of a hidden compartment in the car in which they were travelling in order to facilitate the sale of those drugs for $52,000 per kilogram.

 

            If convicted the defendants face maximum possible sentences of life imprisonment.

            The case was investigated by the Drug Enforcement Administration and the Bensalem Township Police Department and is being prosecuted by Assistant United States Attorney Yvonne Osirim.

 

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[1] An Indictment or Information is an accusation.  A defendant is presumed innocent unless and until proven guilty.

Andre Pereira-Lopes, a/k/a “Davi Da Silva,” of Philadelphia, Pennsylvania, was charged today by Indictment with possession of a firearm by an illegal alien, announced United States Attorney Louis D. Lappen.  The indictment alleges that on or about February 24, 2018, Pereira-Lopes, an illegal alien, knowingly possessed a .38 caliber Colt Detective Special revolver, which was loaded with six rounds of ammunition.

 

If convicted the defendant faces a maximum possible sentence of ten years and other penalties.

 

The case was investigated by Immigration and Customs Enforcement and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Kevin Jayne.

 

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

Bright Ogodo, 43, of Brooklyn, New York, was sentenced today to 80 months in prison following his conviction of bank fraud and aggravated identity theft, announced United States Attorney Louis D. Lappen.

 

            In sentencing Ogodo, the court found that Ogodo was a leader of a bank fraud and aggravated identity theft ring that used “runners,” to pose as TD Bank customers by using false drivers’ licenses and other means of identification of the TD Bank customers, including their names, social security numbers, and dates of birth. As part of his guilty plea, Ogodo had admitted that he recruited the runners, drove the runners to TD Bank branches in the Philadelphia area, as well as in New York, New Jersey, Connecticut, and Delaware, gave the runners the false drivers’ licenses and other means of identification, and instructed them how to access the TD Bank customers’ accounts. Ogodo had also admitted that he and the runners deposited large-dollar counterfeit checks and small amounts of cash and money orders into the bank accounts, thereby learning the account numbers (if they were not already known) and also as a way of being able to know the exact date, location, and amount of the last deposit into the account, which co-schemers then used to set up on-line access to the accounts. Ogodo admitted that the runners, posing as the true account holders, obtained new ATM cards tied to the TD Bank customers’ checking accounts, and then one or more co-schemers, including defendant Ogodo himself, began to deplete the funds in that checking account by using the newly-obtained ATM cards to withdraw cash and purchase merchandise and money orders. Ogodo also admitted that he transferred funds from the TD Bank customers’ existing home equity lines of credit (HELOC) into the checking accounts that were tied to the ATM cards in the possession of defendant Ogodo and other co-schemers, which allowed defendant Ogodo and other co-schemers to obtain over $523,000 from the TD Bank accounts. Ogodo admitted that he intended to cause TD Bank to sustain more than $785,000 in losses, as that is the amount of counterfeit checks and HELOC and other transfers made into the checking accounts tied to the ATM cards in the co-schemers’ possession.

 

            The case was investigated by the Bureau of Immigration and Customs Enforcement, Homeland Security Investigations, and was prosecuted by Assistant United States Attorney Michael S. Lowe.

 

 

Fernando Salinas-Palma, a/k/a “Fernando Gutierrez-Palma,” of Norristown, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Louis D. Lappen.  The indictment alleges that on or about February 21, 2018, Salinas-Palma, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about April 6, 2012, April 24, 2012, and June 30, 2012.  If convicted the defendant faces a maximum possible sentence of ten years.

The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”), and is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.

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

The United States filed a civil lawsuit today against Stephen Latman, a physician in the Reading, Pennsylvania area, alleging that he wrote improper opioid prescriptions for several of his patients, announced United States Attorney Louis D. Lappen.  According to the complaint, Latman issued 343 opioid prescriptions to three of his patients that lacked a legitimate medical purpose and were issued outside of the usual course of his professional practice.

The United States and Dr. Latman have also entered into a Stipulated Order and Consent Judgment, subject to the Court’s approval that would resolve the matter without litigation.  If approved by the Court, the Judgment would require Latman to pay $400,000 to the United States, prohibit Latman from ever seeking a future DEA controlled substance license, require Latman to voluntarily relinquish his license to practice medicine, and require Latman to execute an agreement with the U.S. Department of Health and Human Services to be excluded from Medicare, Medicaid, and all other Federal health care programs.

The complaint filed by the United States alleges that Latman, for these three patients, prescribed approximately 123,660 opioid pills from 2014 through 2016.  Those prescriptions were often written for oxycodone 30mg, one of the most heavily abused and most lucrative oxycodone prescriptions on the black market.  An expert review of these prescriptions indicated that the prescriptions were dangerous, inappropriate, and susceptible to illicit use.

“The opioid crisis in our communities has had a devastating impact,” said United States Attorney Louis D. Lappen.  “Physicians have the vital responsibility to write prescriptions that are in the best interest of the patient, particularly for opioids.  Our office will continue to hold physicians accountable when they violate that responsibility.”

The United States filed this lawsuit under the Controlled Substances Act.  The complaint contains allegations only, and not findings of liability.

The investigation was conducted by the Drug Enforcement Administration and assisted by the Department of Health and Human Services Office of Inspector General.  Assistant United States Attorney Anthony D. Scicchitano handled the matter. 

United States Attorney Louis D. Lappen today announced that the Government has reached a settlement with Allergy & Asthma Specialists, P.C. (“A&A”) to resolve alleged violations of title III of the Americans with Disabilities Act (“ADA”) for failure to provide a deaf patient with effective communication. 

Under title III of the ADA, no person who owns, leases (or leases to), or operates a place of public accommodation may discriminate against an individual on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of a place of public accommodation.  Discrimination includes failing to take such steps as necessary to ensure that no individual with a disability is excluded, denied services, segregated, or otherwise treated differently than any other individual because of the absence of auxiliary aids and services.    

According to the United States= allegations, in 2017, a deaf patient had difficulty effectively communicating with A&A staff during a visit to an A&A facility in Jenkintown, Pennsylvania.  Although A&A provided an interpreter who could speak some sign language, the interpreter was not a certified sign language interpreter, and the patient had difficulty understanding the interpreter.     

As a result of the United States’ investigation and the full cooperation of A&A, A&A has agreed to implement an effective communication policy and to annually train its staff regarding that policy. 

This case was investigated by Assistant United States Attorney Jacqueline C. Romero.

Rafael Christopher Cirino, 36, of Sinking Spring, Pennsylvania, was sentenced on Friday by the Hon. Edward G. Smith, United States District Judge, to a term of 60 months’ imprisonment, to be followed by supervised release for a period of 5 years, as well as a $1,700 special assessment,  announced United States Attorney Louis D. Lappen.  This conviction was the result of a collaboration of federal, state and local law enforcement agencies in order to halt fraudulent claims for state benefits, mortgage fraud, and insurance fraud.

According to the indictment and guilty plea, between October 2016 and March 2017, Cirino submitted fraudulent claims for unemployment compensation benefits with the State of Pennsylvania using fictitious identities.  Cirino also submitted multiple fraudulent claims under insurance policies regarding business property that had allegedly been stolen.  Cirino further used the fictitious identity of one phantom employee of the business to submit multiple residential mortgage loan applications containing materially false information.  Last, Cirino possessed numerous hologram images depicting the seals of various States, in conjunction with blank plastic cards containing magnetic stripes and clear laminating film, suitable for fabricating false identification documents.

The sentence follows Cirino’s plea of guilty on October 18, 2017 to each of the counts contained in a pending Indictment charging him with four counts of mail fraud, two counts of fraudulent misrepresentation of a Social Security number, four counts of wire fraud, two counts of making false statements in a mortgage loan application, and a single count possession of an authentication feature, intending that the authentication feature be used in a false identification document.

“Rafael Cirino misused the identities of others to fraudulently obtain unemployment compensation benefits by engaging in a scheme to defraud the Pennsylvania Department of Labor and Industry,” said Richard Deer, Special Agent-in-Charge, Philadelphia Region, and U.S. Department of Labor Office of Inspector General. “We will continue to work with our federal, state, and local law enforcement partners to safeguard unemployment compensation benefits programs.”

The case was investigated by the Department of Labor’s Office of Inspector General, the United States Postal Inspection Service, the Pennsylvania State Police, the Spring Township Police Department, and the Pennsylvania Department of Labor and Industry, Internal Audits Division.  The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.

 

 

WASHINGTON – A federal grand jury sitting in the Eastern District of Pennsylvania returned a superseding indictment today adding charges in a pending criminal case against a Philadelphia-area political consultant, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania. 

The original indictmenz, returned on Oct. 24, 2017, charged Kenneth Smukler, 57, of Villanova, Pennsylvania, with causing unlawful campaign contributions, causing the filing of false reports to the Federal Election Commission (FEC), and causing false statements to the Federal Election Commission in connection with a 2012 congressional campaign.  The superseding indictment charges Smukler with these same offenses, as well as making conduit contributions to a federal campaign committee and obstructing an FEC investigation in connection with the 2014 congressional campaign of a different candidate. 

According to the indictment, Smukler made and caused to be made excess and conduit contributions and engaged in a falsification and obstruction scheme involving a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives in 2014.  According to the indictment, the excess contributions came from associates of Smukler and were funneled through two of Smukler’s consulting companies.  The conduit contributions were routed through another political consultant and the candidate.

As alleged in the indictment, in or about April 2014, Smukler became aware that the campaign was running out of funds that it could spend on primary election expenses.  According to the indictment, Smukler nevertheless directed the campaign to continue paying for goods and services associated with the primary election.  According to the indictment, in or about May 2014, one of Smukler’s companies made a $78,750 payment to the campaign that was used to pay for primary election expenses.  Smukler falsely told the campaign that this money came from a segregated media account, when in fact the payment was funded by an associate of Smukler’s and therefore constituted an illegal campaign contribution. 

As alleged in the indictment, after the campaign lost the primary election, the campaign did not have sufficient funds to repay the contributions that the campaign had received for the general election.  As alleged in the indictment, in order to conceal this shortfall, Smukler funneled illegal contributions totaling $150,000 from an associate to the campaign through two of Smukler’s consulting companies.  As alleged in the indictment, Smukler falsely told the campaign that these payments were refunds of money that had been escrowed in Smukler’s companies for general election expenses, when, in fact, the money had come not from escrow accounts but from Smukler’s associate, and the money could not have been escrowed campaign funds because Smukler’s companies had already spent a significant portion of the funds they had received from the campaign.

According to the indictment, Smukler caused the campaign to falsely characterize the payments from his companies as refunds in FEC reports and in a letter to the FEC, which led the FEC to dismiss a pending complaint against the campaign.

In addition, the indictment alleges that Smukler made an unlawful conduit contribution to the campaign in excess of $2,000 through another political consultant.  And, according to the indictment, in or about June 2015, Smukler made another unlawful conduit contribution to the campaign, this time in excess of $10,000, through the candidate.

An indictment is not a finding of guilt.  An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the FBI and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Eric Gibson of the Eastern District of Pennsylvania are prosecuting the case.

PHILADELPHIA – A federal grand jury sitting in the Eastern District of Pennsylvania returned a superseding indictment today adding charges in a pending criminal case against a Philadelphia-area political consultant announced U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.

The original indictment, returned on Oct. 24, 2017, charged Kenneth Smukler, 57, with causing unlawful campaign contributions, causing the filing of false reports to the Federal Election Commission (FEC), and causing false statements to the Federal Election Commission in connection with a 2012 congressional campaign.  The superseding indictment charges Smukler with these same offenses, as well as making conduit contributions to a federal campaign committee and obstructing an FEC investigation in connection with the 2014 congressional campaign of a different candidate. 

According to the indictment, Smukler made and caused to be made excess and conduit contributions and engaged in a falsification and obstruction scheme involving a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives in 2014.  According to the indictment, the excess contributions came from associates of Smukler and were funneled through two of Smukler’s consulting companies.  The conduit contributions were routed through another political consultant and the candidate.

As alleged in the indictment, in or about April 2014, Smukler became aware that the campaign was running out of funds that it could spend on primary election expenses.  According to the indictment, Smukler nevertheless directed the campaign to continue paying for goods and services associated with the primary election.  According to the indictment, in or about May 2014, one of Smukler’s companies made a $78,750 payment to the campaign that was used to pay for primary election expenses.  Smukler falsely told the campaign that this money came from a segregated media account, when in fact the payment was funded by an associate of Smukler’s and therefore constituted an illegal campaign contribution. 

As alleged in the indictment, after the campaign lost the primary election, the campaign did not have sufficient funds to repay the contributions that the campaign had received for the general election.  As alleged in the indictment, in order to conceal this shortfall, Smukler funneled illegal contributions totaling $150,000 from an associate to the campaign through two of Smukler’s consulting companies.  As alleged in the indictment, Smukler falsely told the campaign that these payments were refunds of money that had been escrowed in Smukler’s companies for general election expenses, when, in fact, the money had come not from escrow accounts but from Smukler’s associate, and the money could not have been escrowed campaign funds because Smukler’s companies had already spent a significant portion of the funds they had received from the campaign.

According to the indictment, Smukler caused the campaign to falsely characterize the payments from his companies as refunds in FEC reports and in a letter to the FEC, which led the FEC to dismiss a pending complaint against the campaign.

In addition, the indictment alleges that Smukler made an unlawful conduit contribution to the campaign in excess of $2,000 through another political consultant.  And, according to the indictment, in or about June 2015, Smukler made another unlawful conduit contribution to the campaign, this time in excess of $10,000, through the candidate.

An indictment is not a finding of guilt.  An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the FBI and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Eric Gibson of the Eastern District of Pennsylvania are prosecuting the case.

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