Eastern District of Pennsylvania

PHILADELPHIA – James D. Falkowski, a/k/a “Jamie Falkowski,” 42, of Buffalo, New York, pleaded guilty on March 20, 2018 in federal court to criminal charges for which he was indicted including eleven counts of wire fraud, and one count of conspiracy, announced United States Attorney Louis D. Lappen.

Falkowski pleaded guilty to operating a multi-faceted fraud scheme while working as a director at QVC, Inc., an American cable, satellite and broadcast television network and multinational corporation specializing in televised and internet home shopping based in West Chester, Pennsylvania.  Falkowski – a QVC Director from 2008 until his termination in 2013 – was responsible for enhancing QVC’s brand and reputation in the entertainment and fashion industries.  Falkowski used his position at QVC to embezzle and fraudulently obtain from QVC over $1,000,000 worth of money, goods and services, all without QVC’s knowledge or approval, including hundreds of thousands of dollars of first-class travel, luxury hotel and resort stays, spa treatments, upscale restaurants, luxury clothing, luxury accessories, and personal medical treatments such as botox treatment.  To hide his actions from QVC, Falkowski created fake invoices purporting to be from The Four Seasons Hotels, luxury car service companies, and other vendors in order to deceive QVC into paying for Falkowski’s fraud.  Falkowski also enlisted the assistance of two QVC vendors to help him defraud QVC: those two vendors – including Los Angeles-based public relations agency “The Steinberg Group,” doing business as “dOMAIN,” and a New York City-based production management company – agreed to submit to QVC fraudulently altered invoices and bills to hide Falkowski’s embezzlement. 

Falkowski also pleaded guilty to crimes involving fraudulently causing QVC to pay over $200,000 in private luxury chauffeur rides for himself and his associates, approximately $70,000 in payments to his personal creditors – including by causing QVC to pay more than $28,000 for a coffee table and credenza table for Falkowski’s Philadelphia apartment – as well as $59,500 in gift cards from American Express, Tom Ford, and Barney’s New York that Falkowski claimed were for distribution to talent, but which he used for himself.

Falkowski also pleaded guilty to participating in illegal kickback deals with two separate QVC vendors – both of whom Falkowksi had caused QVC to hire, and both of whose relationships with QVC Falkowski controlled.  First, Falkowski caused QVC to hire The Steinberg Group, doing business as dOMAIN; Falkowski thereafter instructed The Steinberg Group’s leadership to become a QVC “vendor representative” and earn royalties from QVC.  Falkowski then covertly assisted The Steinberg Group’s leadership in negotiating against QVC by providing The Steinberg Group with QVC’s confidential, proprietary contractual information, which enabled The Steinberg Group to illicitly negotiate for – and fraudulently obtain – a larger royalty percentage over a longer period of time from QVC.  In return for his fraudulent assistance, The Steinberg Group secretly cut Falkowski into their deal, agreeing to pay Falkowski a kickback of fifty percent (50%) on all royalty payments received from QVC.  Falkowski and The Steinberg Group’s leadership also secretly entered into a separate kickback deal relating to products sold by a QVC competitor – all while Falkowski was an executive at QVC.  Ultimately, The Steinberg Group/dOMAIN and Falkowski brought in $312,488.32 pursuant to their fraudulent kickback deal.  After Falkowski was terminated by QVC in December 2013, Falkowski sent an email to The Steinberg Group’s leadership, stating: “Let’s be clear . . . You have a better deal than any other rep because of me solely. [W]e do not have any contract between us of our deal JUST [The Steinberg Group’s/dOMAIN’s President’s] word that we split things 50/50 always. This was because of the complications while I was at QVC.”  Separately, also entered into a fraudulent kickback arrangement with the New York City-based production management company, pursuant to which he instructed the company’s leadership to become a QVC vendor representative, and in turn was secretly cut into that deal as a one-third (33%) partner.  Falkowski and the New York City-based production management company brought in $314,768.92 pursuant to their fraudulent kickback arrangement. 

The case was investigated by the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney James Petkun.

Sentencing was set for July 10, 2018, before U.S. District Judge Michael M. Baylson. 

Rasheeda Overton, 38, of Dover, DE was charged in an indictment unsealed today with 23 counts of wire fraud and 4 counts of aggravated identity theft, announced United States Attorney Louis D. Lappen.

According to the indictment, Overton was a payroll manager of a Philadelphia-based non-profit entity that translates, publishes, and distributes copies of the Christian Bible to recipients around the world.  Overton allegedly altered the bank account information of former employees that had been on file with the company so that any future payments to those former employees would be diverted into bank accounts that she controlled.  Overton then allegedly arranged for her employer to pay more than $100,000 in wages to those former employees, all of which wound up in her bank accounts. 

If convicted of all charges, the defendant faces a maximum possible sentence of at least two years’ imprisonment and a statutory maximum sentence of 468 years’ imprisonment, a $6.75 million fine, three years supervised release, and a $2,700 special assessment.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Mark B. Dubnoff                                                                            

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

PHILADELPHIA – Vidya Banka, M.D., a cardiologist and former director of Pennsylvania Hospital’s cardiac catheterization lab, has entered into a settlement agreement with the United States to resolve allegations that he improperly submitted Medicare claims for unnecessary cardiac stent procedures.  

The University of Pennsylvania Health System (“UPHS”), which owns Pennsylvania Hospital, brought the matter to the United States’ attention through a voluntary self-disclosure. In January 2017, UPHS reached a separate settlement with the United States. The United States then continued to investigate Dr. Banka.

Dr. Banka had privileges to admit patients to Pennsylvania Hospital and ceased working there in September 2012.

The United States alleged that between May 5, 2010 and September 7, 2012, Dr. Banka performed cardiac stent procedures at Pennsylvania Hospital that were not medically necessary. According to the United States, claims were then submitted to Medicare for stent procedures that Dr. Banka performed.

To resolve the matter, Dr. Banka has agreed to pay a civil penalty of $126,617. He has also agreed to a five-year term of exclusion from Medicare, Medicaid, and all other Federal health care programs. Dr. Banka admitted no liability as part of the agreement.

 “We encourage health care organizations to make voluntary disclosures to the government when they identify false claims,” said United States Attorney Louis D. Lappen. “This agreement with Dr. Banka shows that we will and must hold individuals accountable.  Voluntary disclosure by an institution is not a free pass from accountability for the individual directly responsible for the false claims.”

Assistant U.S. Attorney Michael S. Macko handled the matter. The matter was investigated by the Office of the Inspector General of the Department of Health and Human Services, and by Auditor Dawn Wiggins of the U.S. Attorney’s Office.

PHILADELPHIA – Keith Freeman, 23, of Philadelphia, Pennsylvania was charged today by Indictment with one count of possession of a firearm by a convicted felon, announced United States Attorney Louis D. Lappen.

If convicted, the defendant faces a maximum sentence of ten years in prison, plus a possible fine, supervised release, and a special assessment.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Philadelphia Police Department.  It is being prosecuted by Assistant United States Attorney Timothy M. Stengel.

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

Shawn Gilbert, 46, of Philadelphia, was charged today by indictment[1] with possession with intent to distribute marijuana and Xanax, possession of a firearm in furtherance of a drug trafficking crime, possession of a firearm by a convicted felon, announced United States Attorney Louis D. Lappen. 

The indictment alleges that on about September 1, 2017, Gilbert possessed with intent to distribute marijuana and Xanax, and was found in possession of a firearm along with the marijuana and Xanax.

If convicted, Gilbert faces lifetime imprisonment, including a 20 year mandatory minimum term of imprisonment, at least 4 years up to lifetime supervised release, a $1,250,000 fine, and a $200 special assessment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and has been assigned to Assistant United States Attorney Salvatore L. Astolfi.

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

Two Philadelphia men were sentenced to prison for conspiring to file fraudulent tax refund claims, announced U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

Moise Olivier, 28, a member of the conspiracy, was sentenced today to serve three months in prison, followed by three years of supervised release, and was ordered to pay $181,805.10 in restitution and a $100 special assessment.  Hans Pierre, another member of the conspiracy, was sentenced last month to serve three months in prison.  Pierre, 29, was also sentenced to three years of supervised release following his prison sentence and ordered to pay $95,157.41 in restitution and a $100 special assessment. 

According to documents and information provided to the court, Olivier and Pierre conspired with others to use stolen IDs to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds.  Although neither man had a tax preparation business, Olivier opened up a bank account in the name of “Moise Olivier Tax Service” and Pierre opened up two bank accounts in the name of “Hans Pierre Tax Service” to facilitate the crime.  Their co-conspirators directed the IRS to deposit some of the fraudulently obtained refunds into these bank accounts.  Olivier and Pierre withdrew money from their bank accounts to provide to other co-conspirators, and they kept a substantial portion of the illegal proceeds for their own use.  Olivier admitted to causing a tax loss of $181,805.10.  Pierre admitted to causing a tax loss of $95,157.41.

In addition to these sentences, U.S. District Judge John R. Padova sentenced the other defendants as follows:

• Steeve Zamor, who recruited other individuals to join the scheme, was sentenced to 22 months in prison and three years of supervised release, and ordered to pay $366,135.53 in restitution and a $100 special assessment.
   
• Shamback Francois was sentenced to eight months in prison and three years of supervised release, and ordered to pay $425,841.14 in restitution and a $200 special assessment.
   
• Douge Francois was sentenced to four months in prison in prison and three years of supervised release, and ordered to pay $32,300 in restitution and a $100 special assessment.

• Daniel Monville was sentenced to three months in prison and three years of supervised release, and ordered to pay $155,789.23 in restitution and a $400 special assessment.

• Peterson Blanc was sentenced to three months in prison and three years of supervised release, and ordered to pay $100,049.10 in restitution and a $700 special assessment.

• Stanley Jean was sentenced to three months in a halfway house and five years of probation, and ordered to pay $129,000 in restitution and a $200 special assessment.
   
• Jean Celestin was sentenced to two months in prison and three years of supervised release, and ordered to pay $118,000 in restitution and a $100 special assessment.
   
• Ronald LaFortune was sentenced to two months of home confinement and three years of probation, and ordered to pay $118,000 in restitution and a $100 special assessment.
•  

Zamor, Douge Francois, Blanc, Monville, and LaFortune all face potential immigration proceedings as a result of their felony convictions.

U.S. Attorney Lappen and  Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and the FBI, who conducted the investigation, and Trial Attorney Eric B. Powers of the Tax Division and Assistant U.S. Attorney David Ignall, who prosecuted the case.

PHILADELPHIA – Michael Rohana, 23, of Bear, DE, was charged today by indictment[1]  of theft of major artwork from a museum, concealment of major artwork stolen from  museum and interstate transportation of stolen property. According to the indictment, on, December 21, 2017, Rohana stole from the Franklin Institute, a piece (“the Thumb”) from one of the terracotta sculptures dating from 210 to 209 B.C. Rohana then transported the Thumb from Philadelphia to his home in Bear, Delaware.

If convicted, Rohana faces a maximum term of thirty years in prison, up to three years of supervised release, and a $750,000 fine.  

This case was brought to the immediate attention of authorities by the Franklin Institute. It was investigated by the Federal Bureau of Investigation’s Art Crime Team and is being prosecuted by Assistant United States Attorney KT Newtown.

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

PHILADELPHIA – Timothy Smith, 37, of Philadelphia, was charged today by indictment[1] with possession of a firearm by a convicted felon, announced United States Attorney Louis D. Lappen.  According to the indictment, on November 25, 2017, Smith was in possession of a Hi-Point, Model C-9, 9mm pistol, with obliterated serial number raised to read P1650136, loaded with 6 live rounds.

If convicted, Smith faces a minimum term of fifteen years in prison, up to three years of supervised release, a $250,000 fine, and a $100 special assessment.

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

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

PHILADELPHIA – Marshfield Medical, Inc., formerly known as Bromedicon, Inc. (“Bromedicon”), has agreed to pay $550,000 to settle allegations under the False Claims Act that it submitted false claims to Medicare and other federal health care programs for failing to provide a qualified interpreting physician to monitor each surgery for which it purportedly provided remote Intraoperative Neurophysiological Monitoring (“IONM”).

Bromedicon was in the business of providing real-time remote IONM during certain surgeries, such as brain and spinal surgeries.  In IONM, a qualified interpreting physician in a remote location monitors the integrity of neural structures during surgery via a live data stream transmitted from electrodes on the patient.  IONM is intended to reduce the likelihood of unintended damage to those structures and provide guidance to the surgeon during surgery.  The qualified interpreting physician is in live contact with a technician in the operating room throughout the surgery so that relevant findings can be communicated to the surgeon in real time.  Medicare rules require that the qualified interpreting physician is licensed to practice medicine.

In numerous cases between 2011 and 2015, Bromedicon failed to provide a qualified interpreting physician to monitor surgeries for which it purportedly provided remote IONM services.  In some of those cases, no one monitored the data stream from the surgeries.  In others, Bromedicon’s medical director, a foreign medical school graduate with no license to practice medicine in the United States, was the only monitor.  Bromedicon violated the False Claims Act by submitting claims for reimbursement for these IONM services as though one of the licensed physicians employed by Bromedicon performed them.

The settlement resolves a lawsuit pending in federal court in the Eastern District of Pennsylvania that was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery.  “We thank the whistleblower in this case.  Information from citizens can be invaluable in detecting and combatting fraud,” said U.S. Attorney Louis D. Lappen.

This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and U.S. Office of Personnel Management Office of the Inspector General.  For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant U.S. Attorney John T. Crutchlow and Auditor Dawn Wiggins.

 “Today’s guilty verdicts send the message again to corrupt politicians that they are not above the law,” said United States Attorney Louis D. Lappen. “The jury has held Mayor Pawlowski accountable for selling his office to the highest bidder to fund his personal ambitions.  Thinking only of himself, he deprived Allentown residents of their right to receive honest and faithful services from their municipal government.  The mayor then tried to cover up his crimes by destroying evidence, lying to the FBI agents who were investigating him, and lying to the federal jurors who heard his case. Our prosecutors and law enforcement partners worked extremely hard to investigate this case, which also resulted in 10 guilty pleas. We hope that those in public office receive the clear message that justice system will not tolerate these abuses of the public trust.”

John Montgomery, 58, of Exton, PA and Alfredo Lopez, M.D., 47, of Indianapolis, Indiana, were indicted on charges of Conspiracy to Commit Health Care Fraud and Conspiracy to Solicit and Pay Kickbacks, announced United States Attorney Louis D. Lappen. As alleged in the indictment, the defendants contracted with primary care physicians, chiropractors and podiatrists across the United States to provide nerve conduction testing in the provider’s office. Defendants Montgomery and Lopez offered the providers financial incentives to induce them to order nerve conduction tests for patients in their practice, which the defendants provided, and for which they obtained payments from Medicare. According to the indictment, from January 2006 through January 2013, the defendants caused the submission of least approximately $4.1 million of fraudulent claims to Medicare for nerve conduction tests that did not meet Medicare’s coverage criteria and established standards of care for such testing. The defendants are alleged to have caused Medicare to incur losses of at least approximately $ 679,214 during the period charged in the indictment.   

If convicted the defendants face a maximum possible sentence of 15 years imprisonment; three years of supervision after release from prison; fines of 500,000; and a special assessment of $200. 

The case was investigated by Health and Human Services – Office of Inspector General and is being prosecuted by Assistant United States Attorneys M. Beth Leahy and Jennifer B. Jordan.

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

PHILADELPHIA – Dr. Alan Summers, 79, of Ambler, PA, was sentenced today in the United States District Court for the Eastern District of Pennsylvania by the Honorable Lawrence F. Stengel to 48 months in prison, followed by 2 years supervised release. Summers was also ordered to pay $14,000 in restitution, $4.6 million in restitution and a $1700 special assessment.

Dr. Summers sold commonly abused prescription drugs in exchange for cash payments.  Dr. Summers previously pleaded guilty to conspiracy to distribute controlled substances, distribution of controlled substances, health care fraud, and money laundering, and was announced by United States Attorney Louis D. Lappen, Special Agent-in-Charge Jonathan A. Wilson of the Drug Enforcement Administration and Special Agent-in-Charge, Maureen Dixon with Health and Human Services Office of Inspector General.

Dr. Summers operated a medical clinic on South Broad Street in Philadelphia, and sometimes operated under the business name “NASAPT” (National Association for Substance Abuse-Prevention & Treatment).  Dr. Summers employed numerous other doctors, including co-defendants Dr. Azad Khan and Dr. Keyhosrow Parsia. The defendants sold prescriptions for Suboxone and Klonopin in exchange for cash payments. Suboxone is a brand name for a drug used to treat opiate addiction. None of the defendants conducted medical examinations or mental health examinations as required by law in order to legally prescribe these controlled substances. Dr. Summers also assisted his customers in obtaining health insurance benefits for these illegally prescribed controlled substances by providing false information to health insurance companies so that his customers could fill the prescriptions using their health insurance. Many of the customers who frequented this clinic were, in fact, drug dealers or drug addicts who sold the prescribed medications. During the duration of the conspiracy, Dr. Summers illegally sold over $5 million worth of controlled substances.

“Dr. Alan Summers cared more for his financial gain, than his oath as a doctor,” said United States Attorney Louis D. Lappen. “His actions helped fuel the opioid epidemic and the illegal distribution of prescription drugs. Today’s sentence should serve as a powerful deterrent to those medical professionals who might consider risking their careers and liberty for illegally profiting on the drug trade. Our office along with our local, state and federal law enforcement partners will continue to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.”

“Dr. Summers was responsible for the illegal distribution of millions of dollars of prescription drugs that are commonly used to treat opioid addiction, and did so solely for profit,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “As part of the U.S. Attorney’s Office new law enforcement opioid task force, the DEA will aggressively continue to identify and investigate the doctors that are contributing to the opioid crisis affecting our region through their criminal acts.” 

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 is being prosecuted by Assistant United States Attorney Robert Livermore.

Joseph Picchi, 49, of Hammonton, NJ, was charged today by Indictment[1] with one count of enticement of a minor announced United States Attorney Louis D. Lappen. The indictment alleges that on or about July 20-21, 2017, attempted to entice a minor online, who he believed had not attained the age of 18 years, to engage in sexual activity, for which any person could be charged with a criminal offense.

If convicted the defendant faces a maximum possible sentence of lifetime imprisonment.

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 Department of Homeland Security, Homeland Security Investigations (“HSI”), the Borough of Conshohocken Police Department, and the East Norriton Police Department and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.

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

PHILADELPHIA – The federal indictment against Philip Ahr, a/k/a “DaddyX” and “DaddyXX,” of Radnor, Delaware County, PA, was unsealed today in federal court.  The indictment charges Ahr with two counts of distribution of child pornography, two counts of receipt of child pornography, and one count of possession of child pornography, all stemming from his trafficking in hundreds of images and videos of child pornography on the Internet.  The indictment charges Ahr with committing these crimes for almost three years, beginning in 2013. 

Ahr’s initial appearance in federal court was held today.  The Honorable Lynne A. Sitarski detained him on the Government’s request pending a detention hearing scheduled for February 26, 2018. 

If convicted, Ahr faces a statutory maximum sentence of 100 years’ incarceration, a 5-year mandatory minimum sentence of imprisonment, 5 years up to a lifetime of supervised release, a $1,250,000 fine, and $10,500 in special assessments. 

The case was investigated by the FBI, Task Force Officer Kenneth Bellis and Special Agent Jennifer Morrow, in conjunction with the Delaware County District Attorney’s Office and the Internet Crimes Against Children Unit (ICAC).  It is being prosecuted by Assistant United States Attorney Michelle Rotella.

Brian High, 45, of Bucks County, Pennsylvania, was charged today by Indictment with receipt and possession of child pornography, announced United States Attorney Louis D. Lappen. The Indictment alleges that High received child pornography on or about April 8, 2013, August 10, 2015, September 29, 2016, and further that High possessed child pornography on October 27, 2016.

If convicted as charged, the defendant faces a maximum possible sentence of 80 years’ imprisonment, a mandatory minimum term of 5 years’ imprisonment, supervised release for a minimum term of five years and a lifetime maximum term, a $1,000,000 dollar fine, mandatory restitution, and a $400 special assessment, except if High is found not to be indigent, which would result in an additional $15,000 mandatory special assessment, for a total of $15,400.

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 New Britain Township Police Department and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorney Katherine Driscoll.

A Pennsylvania couple that owned and operated an internet floral business was convicted yesterday of failing to pay over employment taxes to the Internal Revenue Service (IRS) and of filing fraudulent personal and corporate tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting United States Attorney Louis D. Lappen for the Eastern District of Pennsylvania.  

According to the evidence introduced at trial, Andrew Bassaner (aka Andrew Bunchuk), 45, and his wife and business partner, Vicki Bunchuk, 44, owned and operated Florist Concierge Inc. (FCI).  For tax years 2010 through 2012, Bunchuk, aided and assisted by Bassaner, filed fraudulent corporate and personal income tax returns with the IRS.  They diverted funds from FCI, which they deducted as business expenses on FCI’s corporate returns and did not report as income on their personal returns.  They spent the money on personal luxuries, including a monthly rent of $17,000 for a home in Windemere, Florida.  In addition, from 2011 through 2014, Bassaner and Bunchuk filed fraudulent employment tax returns for FCI that falsely classified its employees as independent contractors.  Based on this  fraudulent classification, Bassaner and Bunchuk claimed not to owe employment taxes on the wages paid to those individuals. 

Sentencing is scheduled for June 27 before U.S. District Court Judge Michael M. Baylson.  The defendants face a statutory maximum sentence of five years in prison for each employment tax count and three years in prison for each count of filing a fraudulent return. They also face a period of supervised release, restitution and monetary penalties.  

Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Lappen thanked special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney David Ignall and Trial Attorneys Christopher O’Donnell and Jack Morgan of the Tax Division, who prosecuted the case. 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

The U.S. Attorney’s Office for the Eastern District of Pennsylvania has formed an Opioid Law Enforcement Task Force to combat the serious opioid, heroin, and fentanyl crisis.  The Task Force includes federal, state, and local, law enforcement officers and prosecutors, and will be managed by the Eastern District’s Opioid Coordinator. It will be responsible for developing, implementing, and coordinating a robust prosecution response to this crisis. The office has already assembled committees of experienced federal and state prosecutors to assist law enforcement with the prosecution of transnational criminal organizations that smuggle heroin and opioids into the United States, medical professionals who unlawfully prescribe or divert highly addictive opioids, cyber criminals who distribute heroin and illicit opioids through the dark net, and drug traffickers or persons who are criminally responsible for opioid overdose deaths. 

“This isn’t a crisis any one of us can tackle alone,” said United States Attorney Louis D. Lappen.  “We have already been collaborating on these issues, but it is so critical we continue to work together in even more effective ways. This is the crisis of our time, and we need all hands on deck in an unprecedented way. As this crisis continues, it evolves and adapts. We also need to continue to evolve and adapt.” 

The USAO’s Opioid Law Enforcement Task Force was created in response to the designation of the opioid epidemic as a “national health emergency” and to directives from Attorney General Jefferson B. Sessions, who has made combating the opioid epidemic a top priority for the Department of Justice. The Eastern District of Pennsylvania has had a successful record of identifying and prosecuting pill mill doctors with distribution causing death, among numerous other charges. Last year, Attorney General Sessions formed an Opioid Fraud and Abuse Detection Unit to focus on identifying and prosecuting health care fraud related to prescription opioids.  

PHILADELPHIA – A federal jury yesterday returned guilty verdicts on all counts against Leaford George Cameron, 65, of Burlington, New Jersey, in connection with his operation of a fraudulent nationwide law practice. Cameron was convicted of one count of mail fraud, two counts of wire fraud, and three counts of making false statements.

The government’s trial evidence proved that for over a decade, Cameron posed as an attorney in numerous legal cases pending in federal and state courts around the United States, defrauding over 100 victim “clients” who paid Cameron for what they believed were legitimate legal services. Cameron’s victim “clients” resided around the country and world, including in Pennsylvania, New York, New Jersey, Connecticut, Florida, Illinois, Jamaica, and India.

To gain access to the legal system, and to deceive victims, courts, judges, and opposing lawyers, Cameron repeatedly stated in his legal motions, forms, and filings – often under the penalty of perjury – that he was an attorney with a law license issued by the Pennsylvania Supreme Court. Cameron, who is not a lawyer and has never been a lawyer, used multiple stolen Attorney Identification Numbers belonging to real lawyers, including an Administrative Law Judge in Washington, D.C., when filing his legal forms and motions.

To deceive the world into believing that he was a real lawyer, Cameron devised a fake law firm complete with fake lawyers and fake administrative/support staff. Cameron, who called his fraudulent firm “The Law Offices of Cameron, Hamilton and Associates” or “The Law Offices of Bernstein, Cameron, Hamilton and Associates,” invented the identities of fake lawyers with the last names “Hamilton” and “Bernstein,” neither of whom were real lawyers working at the firm. Cameron obtained and used business cards, letters, and envelopes which contained images of the scales of justice and that listed the name of his fake law firm and the other fake lawyers in the firm. Cameron submitted legal filings to courts in which he forged the name of one of the fake lawyers at his fake firm, and also communicated with victims by writing letters that he signed using different versions of a fake staff worker who Cameron called, at various times, either “Ann Marie Hyde,” “Ann Marie Hall,” or “Ann Marie Hinds.” In one letter Cameron wrote to a victim using the “Ann Marie” identity, Cameron threatened the victim that failing to pay Cameron’s legal bill would cause adverse consequences for the victim’s immigration status in the United States.

Cameron, who ran his fraudulent law practice from his house in Burlington, NJ, created fake identifiers for his home address to deceive his victims and the courts into believing that he had a real commercial office.  Specifically, Cameron added the words “Suite B-1,” “Suite B-2,” “PO Box 399,” and/or “PO Box 1399” to his letters and filings to give the impression that his house was a commercial setting. Cameron, however, knew that he could not tell the IRS or the New Jersey government that he was a lawyer in his tax returns, and risk being caught; Cameron thus stated in his tax returns that he either was a “consultant,” “litigation specialist,” or “legal consultant.”

Cameron, who claimed to have earned various degrees including a BSC, MBA, LLB and LLM, had little idea what he was doing in his victims’ legal matters, causing significant harm to his victims and their cases. In one home foreclosure case pending in the Delaware County, Pennsylvania Court of Common Pleas, Cameron’s victim “client” lost her home as a result of the lawsuit; the same victim “client” later hired Cameron for a guardianship matter pending in the Probate Court of Gwinnett County, Georgia, which also resulted in a loss. Cameron also posed as a lawyer in other types of cases, including in an automobile accident case and a divorce case. Cameron also represented dozens of victim “clients” in their immigration matters pending in immigration courts around the country, including in Chicago, IL, New York City, NY, Philadelphia, PA, and Hartford, CT. Cameron’s fraudulent legal work in those cases resulted in his victim “clients” suffering serious adverse consequences, including being ordered removed from the United States.

Cameron’s sentencing was set for Thursday, May 31, 2018, before U.S. District Judge Gene E.K. Pratter. Cameron faces a statutory maximum sentence of 75 years in prison, up to $1.5 million in fines, three years of supervised release, and a $600 special assessment.

The case was investigated by Homeland Security Investigations (HSI), within the U.S. Department of Homeland Security, with assistance provided by U.S. Citizenship and Immigration Services. It was prosecuted by Assistant United States Attorney James Petkun.

Jaritza Torres, 32, of Lancaster, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Louis D. Lappen.  According to the Information[1], the defendant received Social Security benefits intended for her minor child, after the child began living with another relative.  The defendant is also alleged to have falsely reported to the Social Security Administration that her child remained in her care after the child had moved.  The defendant’s alleged actions resulted in a loss to the government of approximately $26,885.          

If convicted, the defendant faces a substantial period of incarceration, a 3‑year period of supervised release, restitution to the government of $26,885, a fine of up to $250,000, and a $100 special assessment.

The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.

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

Anthony Horton, 37, of Philadelphia; Aaron Horton, Jr., 39, formerly of Philadelphia; Thomas Gillis, 39, of Philadelphia; Faith Charlton, 34, of Philadelphia; Lynda Slaughter, 36, of Sharon Hill; and Marie “Kellie” Slaughter, 32, of Philadelphia, were all charged today with conspiracy against the United States, announced United States Attorney Louis D. Lappen.  According to the Indictment,[1]  the co-conspirators engaged in a long-running scheme to defraud the federal government.  Their schemes included creating false and fictitious businesses in order to use stolen identity information to collect unemployment benefits; and filing false tax returns to get refunds not due to the co-conspirators.  Substantive mail fraud, false returns, aggravated identity theft, and false statement charges are also included in the indictment.                   

If convicted, all defendants face substantial prison terms, as well as full restitution to the government. 

The case was investigated by the United States Department of Labor – Office of Inspector General; the United States Postal Inspection Service; the Social Security Administration – Office of Inspector General; the Internal Revenue Service – Criminal Investigations Division; and the Pennsylvania Department of Labor; and is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.

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

PHILADELPHIA – Nazik Modawi and Abboud Wali were sentenced to prison for their conspiring to bribe a SEPTA employee. Modawi, who bribed SEPTA employees on two occasions, earned a sentence of one-year imprisonment. Wali, who was involved with one of those bribes, was given a sentence of 6 months’ imprisonment. The Honorable Harvey Bartle III, United States District Judge in the Eastern District of Pennsylvania, remarked that bribing public officials “strikes at the heart of our democracy.”

Modawi and Wali owned and operated companies, called Rides, Inc. and Safe Rides, LLC, that provided transportation services for children and adults with special needs. Modawi and Wali sought a “Disadvantaged Business Enterprise” (DBE) certification from SEPTA in order to obtain various government contracts. To expedite their application, Modawi and Wali gave cash payments to the SEPTA employee.  The total amount of the bribes given to Septa employees were $10,000. The SEPTA employee immediately alerted authorities.

The case was investigated by the Federal Bureau of Investigation, the United States Department of Transportation, Office of Inspector General, and SEPTA Office of the Inspector General.  It was prosecuted by Assistant United States Attorney Denise S. Wolf.

John Seckel, of Newtown, Pennsylvania, was charged by information with four counts of making false statements to the Department of Housing and Urban Development. Seckel had been the CEO of Seckel Capital, LLC, an FHA-approved mortgage lender in Bucks County, Pennsylvania.  

For the years 2012 to 2015, Seckel Capital, LLC, was a mortgage lender in Bucks County that was approved by the Federal Housing Administration to originate mortgage loans that would be insured by the FHA. John Seckel maintained the status of Seckel Capital as an FHA-approved lender during this time period by making false statements to the Department of Housing and Urban Development. In particular, on four occasions from 2013 to 2016, Seckel filed audited financial statements for Seckel Capital that Seckel had forged. Seckel also, four times, filed certifications falsely claiming that he had met the net worth and other requirements to be approved as an FHA lender. 

If convicted the defendant faces a maximum statutory sentence of eight years’ imprisonment.

The case was investigated by the United States Department of Housing and Urban Development, Office of Inspector General, 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.

            An Indictment[1]  was returned today charging Justin David May, 28, of Wilmington, Delaware, with 24 counts of mail fraud, 16 counts of money laundering, 3 counts of interstate transportation of goods obtained by fraud, and 2 counts of tax evasion, announced Interim United States Attorney Louis D. Lappen.

            The Indictment alleges that May perpetrated two separate schemes to defraud Cisco Systems Inc. and Microsoft. The Indictment alleges that in each scheme, May obtained serial numbers to valuable computer hardware, registered false domain names, obtained false email addresses, and submitted false warranty claims, pretending to own computer hardware that he did not to own and claiming that it was not working. The Indictment alleges that May provided the customer service representatives with descriptions of the non-existent defects that he knew they could not solve by troubleshooting and would require have to be replaced with new computer hardware. The Indictment alleges that May travelled from his home in Wilmington, Delaware, the FedEx stores in the Philadelphia area, as well as out of state in places such as Reno, Nevada, to pick up the fraudulently-obtained computer hardware, then travelled with it across state lines and sold it. The Indictment alleges that May laundered the fraud proceeds by cashing the checks at a check cashing business rather than depositing them in his bank account. The Indictment alleges that May attempted to obtain over $4,000,000 worth of Cisco products and successfully obtained well over $2,000,000 worth of Cisco products as a result of the scheme. The Indictment also alleges that May attempted to obtain over $600,000 worth of Microsoft hardware and successfully obtained over $300,000 of Microsoft hardware as a result of the scheme.

            May faces a maximum sentence of 1,029 years’ incarceration, a five-year period of supervised release, a fine of $7,153,400, and restitution of at least $2,506,196. He also faces a likely advisory sentencing guideline range of somewhere between 135 and 168 months’ imprisonment. 

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

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

PHILADELPHIA – Herik A. Jaramillo, 29, of Bethlehem, Pennsylvania was charged today by Indictment with six counts of robbery which interferes with interstate commerce in violation of the Hobbs Act, announced United States Attorney Louis D. Lappen.

If convicted on all counts, the defendant faces a maximum sentence of 120 years in prison, plus possible fines, supervised release, and special assessments.

This case was investigated by the Bethlehem Police Department, the Lehigh Valley Violent Gang Task Force, and the Federal Bureau of Investigation.  It is being prosecuted by Assistant United States Attorney Timothy M. Stengel.

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

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.

PHILADELPHIA – Kenneth W. Lewis 41, of Philadelphia, PA, was charged today by Grand Jury Indictment with five counts of wire fraud announced United States Attorney Louis D. Lappen. The indictment alleges the defendant committed wire fraud by applying for credit cards using information for several non-profit organizations and an individual and used the cards to purchase gold coins, precious metals, and diamond earrings. 

If convicted the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment for each count of conviction for wire fraud. A conviction for aggravated identity theft carries a mandatory 2-year sentence, 1 year supervised release, a $250,000 fine, and a $100 statutory assessment per count. 

The case was investigated by the United States Postal Inspection Service and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Tiwana Wright.

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

Joseph Massimino, Jr., of the 700 block of Mountain Street in Philadelphia, was charged today by Indictment with one count of possession with the intent to distribution an array of controlled substances - methamphetamine (actual), fentanyl, heroin, marijuana, and methadone - in violation of 21 U.S.C. § 841(a)(1), as well as with one count of possession of firearms in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c), and one count of possession of a firearm by a convicted felon, in violation of 18 U.S.C. § 922(g)(1), announced United States Attorney Louis D. Lappen.  

If convicted the defendant faces a maximum possible sentence of life imprisonment, and a mandatory term of imprisonment of fifteen years.

The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Nancy B. Winter.

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

The U.S. Attorney’s Office for the Eastern District of Pennsylvania encourages the public to be aware of the possibility of sex trafficking during the NFC Championship game weekend in and around the Philadelphia area.

“We need members of the public to help law enforcement identify predators and victims of sex trafficking, especially this weekend,” said United States Attorney Louis D. Lappen.  “Tragically, large events like the NFC Championship football game that draw out-of-town crowds also lure sex traffickers, who prey on the most vulnerable members of our community. We must all work together to prevent these crimes and bring perpetrators to justice.”   

In recognition of January as National Human Trafficking Prevention Month, the Department of Justice has been encouraging everyone to familiarize themselves with the warning signs of human trafficking. Human trafficking is a federal crime involving the use of force, fraud, or coercion to exploit someone for labor, services, or commercial sex, or the use of juveniles to engage in prostitution.  Victims are commonly Americans, but may also be foreign nationals.

Be aware of signs that may indicate someone is being held against her or his will and trafficked for sex:

• They do not hold their own identity or travel documents;
• They appear to suffer from verbal or psychological abuse designed to intimidate, degrade, or frighten;
• They are not permitted to speak for themselves;
• They are extremely nervous, especially if the victim’s “translator” is their trafficker; and
• They are not allowed to move about by themselves and seem to have little understanding of where they are.

The Eastern District of Pennsylvania has aggressively pursued sex trafficking prosecutions with great success. As recently as December 6, 2017, Kevino Graham, 36, of Philadelphia was sentenced to 100 years in federal prison for sex trafficking. Along with his three co-defendants, the defendant engaged in acts of force, threats, fraud and coercion to cause young women to engage in prostitution, including subjecting them to repeated acts of sadistic sexual torture.

Please report a potential sex-trafficking incident please contact the National Human Trafficking Hotline at 1-888-3737-888.  

Douglas M. Marinos, 56, a licensed attorney, pled guilty today to one-count of willfully failing to collect, truthfully account for, and pay over to the United States taxes owed by his Allentown law firm, announced United States Attorney Louis D. Lappen. The Criminal Information to which Marinos pled guilty alleges that Marinos failed to pay over to the Internal Revenue Service (“IRS”) money that he withheld from the paychecks of his firm’s employees, ostensibly for the purpose of paying federal payroll taxes (including Social Security and Medicare trust fund contributions).

Marinos will be sentenced at a later date. He could face up to five years in prison, three years of supervised release, a $10,000 fine, and a $100 special assessment. In addition, as part of his plea agreement, Marinos is required to pay approximately $285,000 in restitution to the IRS.

The case was investigated by the IRS Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Sean P. McDonnell.

Marco Antonio D’Argnt Reategui, a/k/a “Francisco D'Argent,” a/k/a “Jorge Ortiz,” of Philadelphia, 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 December 13, 2017, D’Argnt Reategui, an alien, and native and citizen of Peru, was found in the United States after having been deported from the United States on or about September 4, 2012.

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

The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Timothy M. Stengel.

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

PHILADELPHIA – Matthew Maffei, aka “Uncle Matt,” of Aston, Delaware County, PA, was sentenced today to 90 years in federal prison for his manufacture of sexually explicit images of the 7-year old daughter of his childhood friend, and the transportation, receipt, and possession of child pornography.  The Honorable Mitchell S. Goldberg, United States Disitirct Judge in the Eastern District of Pennsylvania, also imposed lifetime supervised release, a $20,000 assessment pursuant to the Justice for Victims of Trafficking Act, $5,000 in restitution, and a $400 special assessment.  Maffei, a first time offender, previously pled guilty to all charges in the federal indictment.

The Government sought the statutory maximum sentence of 90 years based on the defendant’s horrific sexual abuse of the young victim.  Maffei sexually abused the 7-year old child in the victim’s own home, as her parents slept in the next bedroom.  He also forced the victim’s 5-year old brother to witness his abuse of the 7-year old on one occasion, and threatened to kill both children if they told their parents what Maffei had done.  As part of the sexual assaults on this child, the defendant defecated on her face.  Calling the sexual assaults “unspeakable,” the District Court imposed a prison sentence of 90 years, asking the parents to assure the victim and her brother that “this defendant will never in this lifetime be released from custody.” 

The case was investigated by the FBI in conjunction with the Delaware County District Attorney’s Office and the Internet Crimes Against Children Unit (ICAC), as well as the Middleton Township, DE Police Department.  It was prosecuted by Assistant United States Attorney Michelle Rotella.

PHILADELPHIA – Richard Cundari, of Doylestown, Pennsylvania, has agreed to pay $307,500 to resolve civil fraud claims under the False Claims Act. The government’s claims concern allegations that Cundari applied for and received occupational disability annuities that he was ineligible to receive due to income earnings in excess of the applicable limits. The civil resolution was announced today by United States Attorney Louis D. Lappen.

The Railroad Retirement Act provides benefits, in the form of occupational disability annuities, for railroad workers whose permanent physical or mental condition is such that they are unable to engage in any regular employment. The occupational disability annuity program is administered by the United States Railroad Retirement Board (RRB) and is financed by taxes paid by railroad employees. To qualify for these federal benefits, a worker’s income may not exceed certain limits established by the RRB. Benefits cannot be claimed or paid for any month in which a claimant earns income in excess of these limits. Disabled railroad workers who meet the requirements of the program must disclose to the RRB any employment and income that might affect their entitlement to benefits. Prior to 2007, the monthly earnings limit was $400 after deduction of disability-related work expenses. Beginning in 2007, the monthly earnings cap for disability annuitants increased as follows: 2007 – $700; 2008 – $730; 2009 – $770.

The government alleges that defendant Richard Cundari applied for and received disability benefits for approximately nine years – from 2001 through 2009 – during which time his income vastly exceeded the limit for disability benefit eligibility. For each year during that time period, Cundari received monthly benefit checks and deposited each check into his personal bank account. Due to his substantial other income, the government alleges that Cundari was not eligible to receive disability benefits and that Cundari knew he was not eligible to receive these benefits.

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

The allegations arose from an investigation led by Special Agent Stephen Naudasher of the Railroad Retirement Board Office of Inspector General. The case was handled by Assistant United States Attorneys David A. Degnan and Charlene Keller Fullmer

William Key, 86, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Louis D. Lappen.  According to the Information[1], the defendant received retirement benefits under two different names from September 2004 until November 2016.  The defendant’s alleged actions resulted in a loss to the government of approximately $57,536.40.          

If convicted, the defendant faces a ten-year term of imprisonment, a 3‑year period of supervised release, restitution to the government of $57,536.40, a $250,000 fine, and a $100 special assessment.

The case was investigated by the Social Security Administration, Office of Inspector General, Pennsylvania State Police, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.

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

Philadelphia - Attorney General Jeff Sessions has selected the Eastern District of Pennsylvania to receive additional resources for the fight against violent crime.  The district will receive an additional Assistant U.S. Attorney to focus exclusively on violent crime, one of 40 new federal prosecutors in 27 selected locations throughout the United States.

“Led by our 94 United States Attorney’s Offices, Project Safe Neighborhoods (PSN) task forces are hitting the streets across America to apprehend and bring violent criminals to justice.  I have asked Congress for additional PSN funding next year because I believe nothing will be more effective at reducing violent crime,” said Attorney General Sessions. "Under this program, I am asking a great deal of our United States Attorneys.  I am both empowering them and holding them accountable for results.  To put them in the best position to impact and reduce violent crime, it is my privilege to announce today that through a re-allocation of resources, we will be enlisting and deploying 40 additional violent crime prosecutors across the United States."

“While all of us in law enforcement in the Eastern District of Pennsylvania have made substantial progress in reducing violent crime rates, many of our communities are still facing untenable levels of violent crime,” said United States Attorney Louis D. Lappen.  “We must continue to work together to keep our citizens safe, and adding additional resources to this effort will only enhance our commitment to public safety.”

More information on the locations of those 40 Assistant United States Attorneys and violent crime task forces is below:

AUSA Breakdown by District

Northern District of Alabama - 1
Eastern District of Arkansas - 1
Northern District of California - 2
Southern District of California - 1
District of Connecticut - 1
District of Columbia - 1
Central District of Illinois - 1
Northern District of Illinois - 3
Southern District of Indiana - 1
Eastern District of Louisiana - 1
District of Maryland - 3
Western District of Michigan - 1
Eastern District of Missouri - 2
Western District of Missouri - 1
District of Nevada - 2
District of New Mexico - 1
Eastern District of New York - 2
Western District of New York - 1
Northern District of Ohio - 2
Eastern District of Pennsylvania - 1
Middle District of Tennessee - 2
Western District of Tennessee - 2
Eastern District of Texas - 1
Northern District of Texas - 1
Southern District of Texas - 2
Western District of Texas - 1
Eastern District of Wisconsin - 2

Sergio Jonathan Caal-Melendez, of Wilmington, DE, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Louis D. Lappen.  The indictment alleges that on or about November 27, 2017, Caal-Melendez, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about May 21, 2008.

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

The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Sarah M. Wolfe.

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

PHILADELPHIA – Yesterday a federal jury returned guilty verdicts on all counts against four men from Philadelphia, Basil Bey, 28, Reginald White, 31, Tyrik Upchurch, 30, and Amin Wadley, 26, in connection with their participation in a large heroin and crack cocaine distribution group.  Bey, White, Upchurch, and Wadley were each convicted of one count of conspiracy and one count of distribution of a controlled substance. Bey and White were also each convicted of one count of distributing a controlled substance within 1,000 feet of a playground.

As presented at trial, from at least April 2015 through December 2016, Bey was the leader of a narcotics distribution group that sold heroin and crack cocaine nearly 24 hours a day, seven days a week to customers in South Philadelphia. The group, which included White, Upchurch, and Wadley as members, sold its customers narcotics by use of a cellular telephone, which would result in the delivery of narcotics by vehicle. Members of the group worked shifts in order to serve their narcotics customers day or night. Bey, Upchurch, and Wadley also maintained residences around Philadelphia in order to store and package the narcotics for distribution.  Due to the dedicated efforts of law enforcement in this case, approximately thirty-five controlled purchases of heroin and/or crack were made from this drug group—all captured on video.  Law enforcement also lawfully obtained a wiretap that captured some of the group’s activities on its telephone. 

Basil Bey and Amin Wadley each face a mandatory minimum term of 10 years’ imprisonment, with a maximum statutory sentence of life in prison and other penalties.  Tyrik Upchurch and Reginald White each face a mandatory minimum of 20 years’ imprisonment, with a maximum statutory sentence of life in prison and other penalties.  U.S. District Court Judge Gerald McHugh has not yet scheduled sentencing hearings for the four men. 

Five other coconspirators of Bey, White, Upchurch, and Wadley have already pleaded guilty and await sentencing. Jerome Lyles, 33, of Philadelphia, was also indicted* as part of this narcotics distribution group, and a reward is being offered by the Federal Bureau of Investigation for information that leads to his arrest.

The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorneys Jason Bologna and Kevin Jayne.

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

PHILADELPHIA – The Justice Department today announced settlements with Physician’s Alliance Ltd. (PAL), for allegedly receiving illegal remuneration in exchange for patient referrals to hospitals owned by the now-defunct Health Management Associates (HMA).

PAL, headquartered in Lancaster, Pennsylvania, and three of its executives, Lee Meyers, Michael Warren, M.D. and Wallace Longton, M.D., agreed to resolve allegations that, from 2009 until 2012, PAL accepted illegal remuneration from HMA to refer patients to two HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center.  Under the settlement, PAL and its executives will pay $4 million plus a percentage of proceeds from the sale of PAL’s interest in a joint venture with HMA.       

“These physicians and executives prioritized their own financial interests over the needs of their patients,” said United States Attorney Louis D. Lappen. “Such conduct compromises patient care and undermines the integrity of our nation’s federal health care programs. This settlement should serve as a warning to all providers who allow financial incentives to displace their medical judgment.”

 “The Hippocratic oath enjoins physicians to do no harm, not maximize profits by pocketing illegal referral bribes,” said Nicholas DiGiulio, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Physicians that stray from their oath should not be surprised when they come under law enforcement scrutiny.” 

Under the qui tam, or whistleblower, provisions of the False Claims Act, private individuals may sue on behalf of the government for false claims and share in any recovery.   George E. Miller and Michael J. Metts, former HMA hospital executives, filed suit in the Eastern District of Pennsylvania alleging the scheme between PAL and HMA. Miller’s and Metts’ share of the settlement has not yet been determined.

The settlement was the result of a civil prosecution by the United States Attorney’s Office for the Eastern District of Pennsylvania led by Assistant United States Attorneys Charlene Keller Fullmer and Veronica Finklestein. The investigations were conducted by the Office of Inspector General of the United States Department of Health and Human Services and the Federal Bureau of Investigation. 

The case is captioned United States ex rel. Miller & Metts v. HMA, et al, Case No. 14-00339 (D.D.C.).  

The claims resolved by the settlements are allegations only, and there has been no determination of liability.

James Williams, 30, of Philadelphia, PA, and Aisha Jones, 28, of Bristol, PA, were charged today by Indictment[1] with one count of distribution of heroin, one count of possession of heroin with intent to distribute, one count of possession of a firearm in furtherance of a drug trafficking crime, and, as to Williams only, one count of possession of a firearm as a convicted felon, announced United States Attorney Louis D. Lappen.

If convicted, Williams faces a maximum possible sentence of life imprisonment, a mandatory minimum five years’ imprisonment consecutive to any other sentence imposed, a mandatory minimum three years of supervised release up to lifetime supervised release, a $2,500,000 fine, and a $400 special assessment.  Jones, if convicted, faces a maximum possible sentence of life imprisonment, a mandatory minimum five years’ imprisonment consecutive to any other sentence imposed, a mandatory minimum three years of supervised release up to lifetime supervised release, a $2,250,000 fine, and a $300 special assessment.

The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and the Bensalem Township Police Department, and is being prosecuted by Assistant United States Attorney Andrew J. Schell.

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

Kenneth Reyes, 43, of Philadelphia, PA, was charged today by Indictment with three counts of bank robbery, announced Acting United States Attorney Louis D. Lappen.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Andrea G. Foulkes.

Miguel Angel Vasquez-Camacho, of New Garden Township, 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 November 29, 2013, Vazquez-Camacho, 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 January 5, 1999.

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

The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Bea Witzleben.

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

Idrissa Koita, 45 of Philadelphia, PA, was sentenced to 24 months in prison, announced Acting United States Attorney for the Eastern District of Pennsylvania Louis D. Lappen.

Koita worked as a tax return preparer for the companies The Ledgerking, Inc. and Medmans Financial Services.  Between January 2009 and May 2012, Koita claimed false credits, false deductions and false dependents on federal tax returns for his clients in order to increase their tax refunds.  During the same years, Koita also falsified his own personal tax returns by claiming false credits and false dependents.

According to the United States Attorney’s office, Koita pleaded guilty to preparing and filing false tax returns with the Internal Revenue Service.  Koita also pleaded guilty to wire fraud and aggravated identity theft stemming from claiming false dependents on tax returns. 

Koita’s tax preparation scheme resulted in a tax loss to the federal government in the amount of $2,073,567.54.  In addition to Koita’s 24 month prison sentence, he will also be required to serve 3 years’ probation and pay back $60,911 in restitution.

The case was investigation by Internal Revenue Service, Criminal Investigation and Social Security Administration, Office of Inspector General.  It was prosecuted by Assistant United States Attorney Anthony Wzorek. 

Michael Hoffner, Sr., 52, of Voorhees, New Jersey, was sentenced today to 42 months in prison for wire fraud, announced United States Attorney Louis D. Lappen. The Honorable Mitchell S. Goldberg also imposed a three year term of supervised release and ordered the defendant to pay $87,060 in restitution and to forfeit $82,643 in proceeds.

According to the superseding indictment Hoffner owned the Brown Street Pub in Philadelphia, Pennsylvania.  At his guilty plea hearing on July 31, 2017, Hoffner admitted that on 40 occasions between September and December 2012, Hoffner used a stolen credit number to make charges at the pub to credit and debit cards issued by American Express, Navy Federal Credit Union, USAA, ACNB, and the State Employees Credit Union of Maryland.  The average fraudulent charge was more than $2,000. The cardholders were not aware of and did not authorize these transactions.  The proceeds of these transactions, more than $87,000, went into an account that Hoffner controlled. 

The case was investigated by the Federal Deposit Insurance Corporation Office of Inspector General, the Internal Revenue Service-Criminal Investigation Division, and the United States Secret Service, and is being prosecuted by Assistant United States Attorneys David J. Ignall and Christopher J. Mannion.

A federal indictment was unsealed last Friday afternoon charging Patricia Cleary with wire fraud, mail fraud, social security fraud, aggravated identity theft and false statements to government agents, announced United States Attorney Louis D. Lappen, FBI Special Agent-in-Charge Michael T. Harpster, USPIS Inspector-In-Charge Daniel B. Brubaker, SSA OIG Special Agent-in-Charge Michael J. McGill, and City of Philadelphia Inspector General Amy Kurland.

According to allegations contained in the indictment, Patricia Cleary falsely and fraudulently presented herself as the tutor for a relative with special needs with the City of Philadelphia School District.  Cleary used her maiden name, Patricia Goldstein, as the name for the fictitious tutor.  She submitted a false W-9 for the fictitious tutor using the social security number of another person and a retired Pennsylvania teacher’s credentials.  She prepared false invoices purportedly for tutoring services provided to a relative and submitted them to the School District from personal email accounts as well as an email account created for the fictitious tutor.  After the School District stopped issuing payment on the tutoring invoices and required verification of the tutor’s credentials, Cleary continued to perpetuate the fraud by threatening the School District with a lawsuit, falsely alleging that she hired a tutor, sent the tutor’s IRS form and teaching credentials to the School District, and gave money directly to the tutor for the tutoring services the School District refused to pay.  She also submitted false teaching certificates from two different states purportedly in the name of the fictitious tutor and fraudulently created a profile for the fictitious tutor in a system used by the School District to verify credentials, including identifying a stolen social security number of another person as belonging to the fictitious tutor.

As a result of her deceptive tactics, including the submission of false and fraudulent documents to the School District through emails and other documentation, Cleary received approximately $58,940.00 and attempted to receive approximately $33,090 from the School District to which she was not entitled.

“The defendant allegedly stole a victim’s identity and used it to defraud the Philadelphia School District by claiming that she was tutoring her special needs relative,” said United States Attorney Louis D. Lappen. “Our office will continue to prosecute scammers who seek to enrich themselves at the expense of members of our community who are entitled to benefit from valuable public programs that too often are targeted by venal criminals.”

“Stealing money from a cash-strapped school district, money meant to help people with special needs, is outrageous," said FBI Special Agent in Charge Harpster. "As alleged in the indictment, Cleary exploited a vulnerable family member to enrich herself - and when the school district grew suspicious and stopped sending checks, she brashly doubled down and threatened suit. The FBI is committed to investigating and holding responsible anyone fraudulently siphoning off public funds."

"Identify theft is a serious crime that effects millions of Americans each year, " This case is an example of how an identity thief can infiltrate an organization, pose as a legitimate tutor, and cause all of us to pay her an unearned salary,” said Daniel B Brubaker, Inspector in Charge of the Philadelphia Division of the US Postal Inspection Service.   “This case illustrates how far reaching the effects of identity theft are, and the depths these criminals will go to receive ill-gotten gains. We take these crimes very seriously and we're dedicated to holding criminals accountable when they use the mail in furtherance of their criminal schemes"

“Patricia Cleary allegedly stole money from the School District that was meant to educate our children, who deserve and need quality education," said Amy Kurland, Inspector General for the School District and City of Philadelphia. "This indictment sends a message that we will not tolerate theft and that we will continue to work to eliminate fraud and ensure integrity in the District.”

Cleary is charged with wire fraud and mail fraud, which carry a maximum sentence of 20 years in prison and a $250,000 fine.  Additionally, Cleary is charged with social security fraud, which carries a maximum sentence of 5 years’ imprisonment and a $250,000 fine, and aggravated identity theft, which carries a maximum sentence of 2 years’ imprisonment that must run consecutive to any other sentence and a $250,000 fine.  Cleary also is charged with false statements to federal agents, which carries a maximum sentence of 5 years in prison and a $250,000 fine.

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

The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Social Security Administration Office of Inspector General, and the School District of Philadelphia Inspector General’s Office.  It is being prosecuted by Assistant United States Attorney Tomika N.S. Patterson of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

PHILADELPHIA – Intercept Corporation, d/b/a “InterceptEFT” (“Intercept”), a privately held corporation headquartered in Fargo, North Dakota, has pleaded guilty to an Information charging the company with operating an illegal money transmittal business, announced United States Attorney Louis D. Lappen.

Intercept was a “third party payment processor” which processed electronic funds transfers for its clients through the Automated Clearing House (“ACH”) system, an electronic payments network that processed financial transactions without using paper checks.  Among Intercept’s clients were numerous business entities that issued, serviced, funded, and collected debt from short-term, high-interest loans, commonly referred to as “payday loans,” because such loans are supposed to be repaid when the borrower received his or her next paycheck or regular income payment.  Payday loans are effectively illegal in more than a dozen states, including Pennsylvania, and are highly regulated in many other states. 

Various payday loan companies hired Intercept to move large sums of money between the bank accounts of the payday loan companies and their borrowers.  These money transfers included the funding of payday loans by the companies to the borrowers, and the collection of loan proceeds from the borrowers to the payday loan companies.  Among the payday loan companies that employed Intercept to collect payday loan debt from borrowers who resided in states where such loans were illegal, and in states where there such loans were regulated, were payday companies owned, operated, controlled, and financed by Charles M. Hallinan (recently convicted of illegal payday lending by a federal jury in the Eastern District of Pennsylvania), Scott Tucker (recently convicted of illegal payday lending by a federal jury in the Southern District of New York) and Adrian Rubin (who pleaded guilty to illegal payday lending in the Eastern District of Pennsylvania).

Intercept used the ACH system to transfer funds to and from the bank accounts of borrowers located across the United States, including hundreds of thousands of customers who lived in states that outlawed and/or regulated payday loans.  No later than May 2008, Intercept was made specifically aware that one of Intercept’s payday lending clients made a payday loan in violation of Connecticut law.  Subsequently, in June 2009, Intercept was again notified that one of its payday lending clients made an illegal payday loan, but this time, the loan was in violation of California law.  In 2012, Intercept was instructed by its bank to stop processing payments for payday lending companies for loans made to borrowers in states where such loans were prohibited or restricted.  And in August 2012, a payday lending client specifically notified Intercept’s leadership that payday loans were being made in states that outlawed payday lending, including in Pennsylvania.  Yet Intercept continued facilitating payday lending operations for its clients in states that outlawed and/or regulated payday loans until at least August 2013. 

In total, Intercept processed hundreds of millions of dollars of payments for its payday lending company clients, and earned millions of dollars in profits, as a result of assisting payday lenders in making illegal loans and collecting unlawful debt.

As a result of its criminal conviction, Intercept must pay forfeiture to the United States in the amount of all funds involved in or traceable to the charged offense (and no less than $500,000), a potential corporate fine of up to $500,000, and a $400 corporate assessment. 

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the U.S. Postal Inspection Service.  It is being prosecuted by Assistant United States Attorneys and Mark B. Dubnoff and James Petkun.

Paul Smith, of Wayne, Pennsylvania, was charged yesterday by Information with mail fraud and securities fraud, announced United States Attorney Louis D. Lappen.  These charges arise from the defendant’s operation of “the Haverford Group,” which the defendant promoted as a stock investment club, but which was actually a Ponzi scheme. 

If convicted, Smith faces a maximum possible sentence of 40 years’ imprisonment, a three-year period of supervised release, a $5,250,000 fine, and a $300 special assessment.  Full restitution of as much as $886,214 also shall be ordered.

The case was investigated by the Federal Bureau of Investigation with assistance from the Securities and Exchange Commission, and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.

An Indictment, Information or Criminal Complaint is an accusation.  A defendant is presumed

innocent unless and until proven guilty.

Political Consultant Pleads Guilty to Lying to the FBI in Connection with Campaign Finance Investigation

A Philadelphia-area political consultant pleaded guilty today to making a false statement to FBI agents in connection with a campaign finance investigation.  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 made the announcement.

Donald Jones, 62, of Willingboro, New Jersey, was charged with this crime and related offenses in an indictment against him and co-defendant Kenneth Smukler returned by a federal grand jury sitting in the Eastern District of Pennsylvania on Oct. 24.  Pursuant to the plea agreement, Jones admitted to making a false statement to the FBI arising from his participation in a falsification scheme involving unlawful contributions to Jimmie Moore’s 2012 campaign for the Democratic Party’s nomination for Member of the U.S. House of Representatives.  As described in the plea memorandum, the scheme entailed Moore’s agreement to withdraw from the race in exchange for $90,000 in payments from his opponent’s campaign.  The payments exceeded the $2,000 limit on contributions from one campaign to another campaign for primary elections.  The payments, moreover, were paid to a company created by Moore’s campaign manager, Carolyn Cavaness, for the sole purpose of receiving the funds and repaying Moore’s campaign debts.  According to the plea memorandum, the payments to that company were routed through political consulting companies run by Jones and Smukler to conceal the nature and source of the funds.

As set forth in the plea memorandum, the campaign of Moore’s opponent made a $25,000 payment to D. Jones & Associates, a political consulting company run by Jones.  On or about August 30, 2012, Jones caused D. Jones & Associates to send a check to the company created by Cavaness in the amount of $25,000.  The payment was disguised as a payment for Cavaness’s consulting services, even though Cavaness performed no work for Jones’ company or the campaign of Moore’s opponent.  Jones understood that the purpose of the transfers was to conceal the payment of funds from the opposing campaign to Moore’s campaign in exchange for Moore’s withdrawal.  According to the plea memorandum, the campaign of Moore’s opponent additionally made $65,000 in payments to Voter Link Data Systems, a political consulting company run by Smukler, and Smukler’s company subsequently sent Cavaness $65,000 in payments to conceal the nature and source of those funds as well.

According to the plea memorandum, on or about May 5, 2017, Jones made a false statement to FBI agents investigating this matter.  When questioned about the $25,000 payment from his company to Cavaness’s company, Jones falsely stated to the agents that Cavaness had performed work for his company and the campaign of Moore’s opponent in exchange.  According to the plea memorandum, Jones made this false statement knowingly and willfully and for the purpose of concealing from the FBI the fact that the $25,000 payment was an illegal campaign contribution.

Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25.  Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2. 

The charges against the remaining co-defendant, Smukler, are still pending and a defendant is presumed innocent unless and until proven guilty in a court of law.

The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.

A Philadelphia-area political consultant pleaded guilty today to making a false statement to FBI agents in connection with a campaign finance investigation.  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 made the announcement.

Donald Jones, 62, of Willingboro, New Jersey, was charged with this crime and related offenses in an indictment against him and co-defendant Kenneth Smukler returned by a federal grand jury sitting in the Eastern District of Pennsylvania on Oct. 24.  Pursuant to the plea agreement, Jones admitted to making a false statement to the FBI arising from his participation in a falsification scheme involving unlawful contributions to Jimmie Moore’s 2012 campaign for the Democratic Party’s nomination for Member of the U.S. House of Representatives.  

As described in the plea memorandum, the scheme entailed Moore’s agreement to withdraw from the race in exchange for $90,000 in payments from his opponent’s campaign.  The payments exceeded the $2,000 limit on contributions from one campaign to another campaign for primary elections.  The payments, moreover, were paid to a company created by Moore’s campaign manager, Carolyn Cavaness, for the sole purpose of receiving the funds and repaying Moore’s campaign debts.  According to the plea memorandum, the payments to that company were routed through political consulting companies run by Jones and Smukler to conceal the nature and source of the funds. 

As set forth in the plea memorandum, the campaign of Moore’s opponent made a $25,000 payment to D. Jones & Associates, a political consulting company run by Jones.  On or about August 30, 2012, Jones caused D. Jones & Associates to send a check to the company created by Cavaness in the amount of $25,000.  The payment was disguised as a payment for Cavaness’s consulting services, even though Cavaness performed no work for Jones’ company or the campaign of Moore’s opponent.  Jones understood that the purpose of the transfers was to conceal the payment of funds from the opposing campaign to Moore’s campaign in exchange for Moore’s withdrawal.  According to the plea memorandum, the campaign of Moore’s opponent additionally made $65,000 in payments to Voter Link Data Systems, a political consulting company run by Smukler, and Smukler’s company subsequently sent Cavaness $65,000 in payments to conceal the nature and source of those funds as well.

According to the plea memorandum, on or about May 5, 2017, Jones made a false statement to FBI agents investigating this matter.  When questioned about the $25,000 payment from his company to Cavaness’s company, Jones falsely stated to the agents that Cavaness had performed work for his company and the campaign of Moore’s opponent in exchange.  According to the plea memorandum, Jones made this false statement knowingly and willfully and for the purpose of concealing from the FBI the fact that the $25,000 payment was an illegal campaign contribution.

Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25.  Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2.  

The charges against the remaining co-defendant, Smukler, are still pending and a defendant is presumed innocent unless and until proven guilty in a court of law.

The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.

Anthony Vetri, 30 of Essington and Michael Vandergrift, 31 of Chester were found guilty by a federal jury of three men and nine women of murder through the use of a firearm and conspiracy to distribute oxycodone.  The trial of Vetri and Vandergrift was held from November 29, 2017, through December 7, 2017, before the Honorable Gerald J. Pappert.  

Vetri and Vandergrift were convicted of conspiracy to distribute oxycodone from 2008 until June 4, 2013.  During the conspiracy, Vetri obtained large sums of oxycodone from a registered pharmacist, Mitesh Patel, who owned and operated three pharmacies in the greater Philadelphia area.  Vetri then supplied Vandergrift with oxycodone and both distributed the drugs throughout Delaware and Philadelphia Counties.  

During the drug conspiracy, Patel also illegally provided oxycodone to others, including his business partner, Gbolahan Olabode.  Beginning in the fall of 2011, Vetri and Vandergrift conspired to eliminate Olabode as a recipient of Patel’s illegally distributed oxycodone in order to increase the volume of oxycodone that they could receive from Patel.  Vetri and Vandergrift ultimately decided to murder Olabode.  Vandergrift recruited Michael Mangold and Allen Carter to assist in the murder.  On January 4, 2012, Vandergrift, Mangold, and Carter went to Olabode’s residence in Lansdowne, Pennsylvania and waited for Olabode to return home.  When Olabode returned, Vandergrift and Mangold each used a firearm to fire 27 shots at Olabode as he walked to his home.  Olabode was struck approximately 13 times in his head and body.  He died from the gunshot wounds.  Following Olabode’s murder Vetri continued to illegally distribute oxycodone that he obtained from Patel. 

Mitesh Patel, Michael Mangold, and Allen Carter all previously pled guilty to charges for their respective involvement in drug distribution, the murder of Olabode and other offenses, and are currently awaiting sentencing.

Anthony Vetri and Michael Vandergrift each face a sentence of up to life imprisonment.  Both defendants are in custody awaiting sentencing.  Sentencing is scheduled for Anthony Vetri on March 20, 2017, and for Michael Vandergrift on March 21, 2017.

The case was prosecuted by Assistant United States Attorneys Jonathan B. Ortiz and David. E. Troyer.

The case was investigated by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Department, the Organized Crime Drug Enforcement Task Force, the Lansdowne Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives

Kevino Graham, 36, of Philadelphia was sentenced  yesterday to 100 years in federal prison for sex trafficking by the Honorable C. Darnell Jones, II, United States District Court Judge, announced United States Attorney Louis D. Lappen. In addition, Judge Jones imposed a fine of $1000, a $300 special assessment, lifetime supervised release, and restitution of $641,900.

According to court documents, the defendant ran a striptease club, known as “Club Passions,” and brothel, known as “Passionate Touch,” at a property he leased in the Cathedral Park section of Philadelphia.  Along with his three co-defendants, the defendant engaged in acts of force, threats, fraud and coercion to cause young women to engage in prostitution, including subjecting them to repeated acts of sadistic sexual torture. 

The defendant and co-defendant Raffael Robinson were convicted by a jury on February 5, 2016. Defendant Graham was convicted of two counts of sex trafficking by force and one count of attempted sex trafficking by force. Robinson was convicted of one count of sex trafficking by force, and awaits sentencing.  Co-defendant Brian Wright pled guilty and was previously sentenced to 262 months’ incarceration. Co-defendant Renato Teixeira pled guilty and was previously sentenced to 102 months’ incarceration.

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

John I. Waltman, 59, of Trevose, Pennsylvania, Robert P. Hoopes, 70, of Doylestown, Pennsylvania, and Bernard T. Rafferty, 62, of Langhorne, Pennsylvania, were charged in a second superseding indictment[1] with one count of conspiracy to commit money laundering, three counts of money laundering, one count of honest services wire fraud, three counts of honest services mail fraud, and one count of Hobbs Act extortion under color of official right, announced United States Attorney Louis D. Lappen. 

Moreover, the second superseding indictment added further corruption charges against Waltman and Hoopes.  Specifically, Waltman was charged with five additional counts of Hobbs Act extortion under color of official right, three counts of Travel Act bribery, and two counts of wire fraud.  Hoopes was charged with three additional counts of Hobbs Act extortion under color of official right, three counts of Travel Act bribery, and two counts of wire fraud.

Hoopes was also charged with one count of witness tampering.  Kevin M. Biederman, 34, was also charged with one count of conspiracy to commit money laundering, three counts of money laundering, and one count of bank bribery.

From October 2010 to December 2016, Waltman was a Magisterial District Judge in Bucks County, Pennsylvania.  From February 2016 to December 2016, Hoopes was the Director of Public Safety in Lower Southampton Township, Pennsylvania.  In this position, Hoopes had authority over all police, fire, and emergency operations in the township.  Hoopes previously operated a legal practice in Doylestown, Pennsylvania.  From 1998 to December 2016, Rafferty was a Deputy Constable in Bucks County.  Rafferty controlled Raff’s Consulting LLC, a corporation registered with the Pennsylvania Department of State on May 30, 2011.  From 2012 to March 2016, Biederman was a business development manager at Philadelphia Federal Credit Union (“PFCU”).

The second superseding indictment alleges that, from 2014 to 2016, Waltman and Hoopes solicited, extorted, and attempted to extort bribes and kickbacks from numerous businesses in exchange for Waltman’s and Hoopes’ influence over Lower Southampton Township’s Board of Supervisors, Solicitor, officers, and employees.  In one such alleged scheme, Waltman and Hoopes solicited bribe payments from the salesman of an outdoor advertising company in exchange for offering their influence to reduce lease payments from the company to Lower Southampton Township.

 Moreover, in November 2016, Waltman, Hoopes, and Rafferty allegedly accepted a bribe of $1,000, as well as the promise of other fees, in exchange for Waltman, Hoopes, and Rafferty to use their positions as public officials to “fix” a traffic case before Waltman in Bucks County Magisterial District Court.  In January 2017, Hoopes allegedly tried to influence a witness to falsely testify before the federal grand jury regarding the disposition of this $1,000 bribe.

In addition, from June 2015 to November 2016, Waltman, Hoopes, Rafferty, and Biedmeran allegedly conspired to launder funds represented to be proceeds from health care fraud, illegal drug trafficking, and bank fraud.  From June 2016 to August 2016, Waltman, Hoopes, Rafferty, and Biederman allegedly laundered $400,000 in cash, represented to be proceeds from health care fraud and illegal drug trafficking, and took money laundering fees totaling $80,000 in cash.

Further, in June 2015, Biederman, who was then a PFCU employee, allegedly solicited and accepted a bribe of $1,600 in exchange for agreeing to influence PFCU’s approval of a loan.

If convicted, Waltman faces a maximum possible sentence of 335 years in prison, three years of supervised release, a $4.75 million fine, and a $1,900 special assessment. 

If convicted, Hoopes faces a maximum possible sentence of 315 years in prison, three years of supervised release, a $4.5 million fine, and a $1,800 special assessment.

If convicted, Rafferty faces a maximum possible sentence of 180 years in prison, three years of supervised release, a $2.25 million fine, and a $900 special assessment.

If convicted, Biederman faces a maximum possible sentence of 110 years in prison, five years of supervised release, a $2 million fine, and a $500 special assessment.

The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Vineet Gauri.

[1]           An Indictment, Information, or Criminal Complaint is an accusation.  A defendant is presumed

innocent unless and until proven guilty.

Lesandro Perez (a/k/a “Toast”) 22; Joshua Brown (a/k/a “Jash”) 22; Hugh Wyatt (a/k/a “Hugh Pace”), 43; Jose Lopez (a/k/a “Los”, “Hos” and “Lil Hos”), 23; Dwayne Cooper (a/k/a “Bookie” and “Boop”) 26; Hasan Jones (a/k/a “Tiny”) 36; and Lavar Smith (a/k/a “Var”), 30, each of Philadelphia, PA were arrested today on charges of distributing heroin, fentanyl, cocaine, and cocaine base (“crack”) announced United States Attorney Louis D. Lappen.  Lesandro Perez was also arrested on charges of being a felon in possession of firearms and possessing an unregistered firearm.

The defendants are named in three separate, related indictments filed November 14, 2017. The first indictment charges Lesandro Perez with the above-described firearms offenses.  The second indictment charges Lesandro Perez, Joshua Brown, Dwayne Cooper, Hasan Jones, and Lavar Smith with one count each of distribution of more than 28 grams of cocaine base (“crack”) and aiding and abetting the distribution of more than 28 grams of cocaine base. 

The third indictment contains nine counts charging Lesandro Perez with one count of distributing heroin and cocaine base, two counts of distributing heroin and fentanyl, one count of distributing cocaine and cocaine base, two counts of distributing heroin, three counts of distributing fentanyl, and aiding and abetting.  This same indictment charges Hugh Wyatt with the same three counts of distributing and aiding and abetting the distribution of fentanyl.  Jose Lopez is charged with two of these counts of distributing and aiding and abetting the distribution of fentanyl.  Joshua Brown is charged with one count of distributing and aiding and abetting the distribution of fentanyl and with one count distribution of and aiding and abetting the distribution of heroin and cocaine base.

“The indictments unsealed today represent another example of our office’s commitment to prosecuting serious drug crime and fighting the opioid epidemic,” said United States Attorney Louis D. Lappen.  “The defendants in these cases allegedly distributed fentanyl, heroin, cocaine, and cocaine base in our community – contributing to the cycle of overdoses, deaths, and devastation that destroy the lives of so many of our citizens.  We remain focused on prosecuting illegal drug distribution and violent crime to help make our communities safer for everyone.”

“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 who prey upon innocent citizens and lessen the quality of life in our neighborhoods,” said ATF Special Agent in Charge Donald Robinson. “Our neighborhoods deserve to exist without fear and intimidation inflicted by all violent drug gangs. We will continue to work with our partners to impact the violent drug related activity that has wreaked havoc throughout Philadelphia.”

If convicted of the charges in the first indictment, Perez faces a maximum 40 years’ imprisonment, 3 years’ supervised release, a $760,000 fine, and a $400 special assessment.

If convicted of the charges in the second indictment, Perez, Brown, Cooper, Jones, and Smith each face a mandatory minimum 5 years’ imprisonment, a maximum 40 years’ imprisonment, 3 years’ supervised release, a $5 million fine, and a $100 special assessment.  Perez’s maximum sentence is in addition to the maximum sentence he faces on the first indictment.

If convicted of the charges in the third indictment, Jose Lopez and Joshua Brown face a maximum 40 years’ imprisonment, 3 years’ supervised release, a $2 million fine, and a $200 special assessment.  Brown’s maximum sentence is in addition to the maximum sentence he faces on the second indictment.

If convicted, Hugh Wyatt faces a maximum 60 years’ imprisonment, 3 years’ supervised release, a $3 million fine, and a $300 special assessment.

If convicted of the charges in the third indictment, Lesandro Perez faces a maximum 180 years’ imprisonment, 3 years’ supervised release, a $9 million fine, and a $900 special assessment.  These maximum terms are in addition to the maximum terms he faces on the first two indictments.

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

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