Eastern District of Pennsylvania

Steven Ronald Randall, 25, of Philadelphia, Pennsylvania, was sentenced to 126 months incarceration in federal prison following his conviction on 2 counts of bank fraud and 10 counts of aggravated identity theft, announced Acting United States Attorney Louis D. Lappen.

As part of his guilty plea and in connection with his sentencing, Randall admitted that he used social media service Facebook to solicit persons to provide him with their bank ATM cards and PIN numbers so that he could deposit bad checks into their accounts and withdraw the funds before the banks and other financial institutions realized that the checks were bad. Randall admitted that he recruited approximately 30 people in this manner, that he went to numerous ATM machines in Philadelphia and the surrounding area to make the deposits and withdrawals, and also that he used the ATM cards and PIN numbers at various stores, including Walmart, CVS, RiteAid, Wawa, 7-Eleven, Pathmark, and Giant, to purchase goods and obtain cash back prior to the banks discovering that the checks were bad. 

In addition to the prison sentence, U.S. District Judge Joseph F. Leeson, Jr. ordered Randall to pay $51,567 restitution to Citizens Bank and $799 restitution to TD Bank.

The case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney Michael S. Lowe.

Darrell Wylie, 25, and Namir White, 27, of Philadelphia, Pennsylvania, were charged today by Indictment with interference with interstate commerce by means of robbery, brandishing a firearm during and in relation to a crime of violence, and theft of government funds, announced United States Attorney Louis D. Lappen. Wylie was further charged in the Indictment with unlawfully possessing a firearm, having previously been convicted of a felony. 

The Indictment alleges that the offenses were committed in Philadelphia on or about November 2, 2017, when Wylie and White committed the armed robbery of a person working on behalf of federal investigators, after having offered to sell three firearms to the person.

If convicted as charged, Wylie and White each face a maximum possible sentence of life imprisonment, as well as a minimum term of imprisonment of seven years, and supervised release for a maximum of five years.  Wylie further faces a maximum fine of $1,000,000 and $400 in special assessments, while White faces a maximum fine of $750,000 and $300 in special assessments. 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The case is being prosecuted by Assistant United States Attorneys Joseph A. LaBar and Seth Schlessinger.

Martin D. Weaver, M.D, 63, of Sickerville, New Jersey, and Erica LaBoy, 31, of Philadelphia, were charged today by Indictment, unsealed today, with conspiracy to distribute controlled substances outside the scope of professional practice; and Weaver was also charged with 29 counts of distributing controlled substances outside the scope of professional practice, announced Acting United States Attorney Louis D. Lappen. 

According to the Indictment,[1] from at least December 2016 through October 2017, Weaver, with the assistance of La Boy, operated medical offices in Center City Philadelphia as a front for drug-dealing.  The defendants sold prescriptions for oxycodone, a dangerous and addictive Schedule II controlled substance, to so-called patients, for $300 cash for the first prescription and $200 cash thereafter.  Weaver did not examine the patients and often handed out prescriptions for oxycodone from the receptionist desk without providing any medical care.    

If convicted, the defendants face significant terms of incarceration, as well as up to a lifetime of supervised release, and substantial fines and special assessments. 

The case was investigated by the FBI, and is being prosecuted by Assistant United States Attorneys Amanda R. Reinitz and M. Beth Leahy.

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

PHILADELPHIA – Charles M. Hallinan, 76, of Villanova, PA, and Wheeler K. Neff, 69, of Wilmington, DE, were found guilty today by a federal jury of two counts of conspiracy to violate the Racketeering Influenced and Corrupt Organizations Act (“RICO”) relating to “payday lending” businesses, one count of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as two counts of mail fraud and three counts of wire fraud announced United States Attorney Louis D. Lappen.  Hallinan was also convicted of nine counts of international money laundering.

Hallinan and Neff participated in a conspiracy that violated the usury laws of Pennsylvania and other states and generated more than $688 million in revenue, between 2008 and 2013, from hundreds of thousands of customers, including residents of Pennsylvania which prohibits such loans. Further, Hallinan and Neff also conspired to defraud nearly 1,400 people, who had sued one of Hallinan’s payday loan companies, into abandoning a lawsuit with damages valued as highly as $10 million.

Hallinan owned, operated, financed, and/or worked for more than a dozen businesses between 1997 and 2013 that issued and collected debt from small, short-term loans that were commonly known as “payday loans” because the customers were supposed to pay them back with their next paychecks.  Pennsylvania and more than a dozen other states have passed laws criminalizing such loans as usurious. Hallinan and Neff conspired to evade such laws by, among other things, paying thousands of dollars each month to three Indian tribes to pretend that they were the actual payday lenders and claim that “tribal sovereign immunity” shielded their conduct from state laws and regulations.

Hallinan and Neff are also helped another payday lender, Adrian Rubin, charged elsewhere, evade state anti-usury laws by entering into sham contracts with an Indian tribe that were designed to give the false impression that the tribe was the true lender.

“Pay day lending exploits those who can least afford it, the most financially vulnerable people in our society,” said United States Attorney Louis D. Lappen. “Hallinan’s companies charged customers exorbitant interest rates -- exceeding 700 percent annually. Today’s conviction shows that we will prosecute predatory payday lenders and pursue significant prison sentences for those who financially exploit the economically disadvantaged.”

“These defendants went to astonishing lengths to skirt state usury laws enacted to protect the public,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Their single-minded purpose: to continue draining dry the financially strapped folks who, out of desperation, resort to payday loans. Their greed is galling, their actions are illegal, and their convictions are richly deserved.”

"The role of IRS Criminal Investigation becomes even more important in fraud cases due to the complex financial transactions that can take time to unravel," said Edward Wirth, Acting Special Agent in Charge, Philadelphia Field Office. "Today’s verdict should serve as a reminder that individuals who engage in this type of financial fraud will be held accountable."

Both Hallinan and Neff face a possible advisory sentencing guideline range of at least a decade in prison, forfeiture of illegally obtained assets, three years of supervised release, a possible fine, and a special assessment.

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

PHILADELPHIA – Charles M. Hallinan, 76, of Villanova, PA, and Wheeler K. Neff, 69, of Wilmington, DE, were found guilty today by a federal jury of two counts of conspiracy to violate the Racketeering Influenced and Corrupt Organizations Act (“RICO”) relating to “payday lending” businesses, one count of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as two counts of mail fraud and three counts of wire fraud announced United States Attorney Louis D. Lappen.  Hallinan was also convicted of nine counts of international money laundering.

Hallinan and Neff participated in a conspiracy that violated the usury laws of Pennsylvania and other states and generated more than $688 million in revenue, between 2008 and 2013, from hundreds of thousands of customers, including residents of Pennsylvania which prohibits such loans. Further, Hallinan and Neff also conspired to defraud nearly 1,400 people, who had sued one of Hallinan’s payday loan companies, into abandoning a lawsuit with damages valued as highly as $10 million.

Hallinan owned, operated, financed, and/or worked for more than a dozen businesses between 1997 and 2013 that issued and collected debt from small, short-term loans that were commonly known as “payday loans” because the customers were supposed to pay them back with their next paychecks.  Pennsylvania and more than a dozen other states have passed laws criminalizing such loans as usurious. Hallinan and Neff conspired to evade such laws by, among other things, paying thousands of dollars each month to three Indian tribes to pretend that they were the actual payday lenders and claim that “tribal sovereign immunity” shielded their conduct from state laws and regulations.

Hallinan and Neff are also helped another payday lender, Adrian Rubin, charged elsewhere, evade state anti-usury laws by entering into sham contracts with an Indian tribe that were designed to give the false impression that the tribe was the true lender.

“Pay day lending exploits those who can least afford it, the most financially vulnerable people in our society,” said United States Attorney Louis D. Lappen. “Hallinan’s companies charged customers exorbitant interest rates -- exceeding 700 percent annually. Today’s conviction shows that we will prosecute predatory payday lenders and pursue significant prison sentences for those who financially exploit the economically disadvantaged.”

“These defendants went to astonishing lengths to skirt state usury laws enacted to protect the public,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Their single-minded purpose: to continue draining dry the financially strapped folks who, out of desperation, resort to payday loans. Their greed is galling, their actions are illegal, and their convictions are richly deserved.”

"The role of IRS Criminal Investigation becomes even more important in fraud cases due to the complex financial transactions that can take time to unravel," said Edward Wirth, Acting Special Agent in Charge, Philadelphia Field Office. "Today’s verdict should serve as a reminder that individuals who engage in this type of financial fraud will be held accountable."

Both Hallinan and Neff face a possible advisory sentencing guideline range of at least a decade in prison, forfeiture of illegally obtained assets, three years of supervised release, a possible fine, and a special assessment.

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

 Joseph Marcus, 51, of Easton, Pennsylvania was charged today by Indictment with the receipt and possession of child pornography, announced United States Attorney Louis D. Lappen.

If convicted the defendant faces a maximum possible sentence of one hundred years imprisonment, a mandatory minimum fifteen years imprisonment, a mandatory minimum five years supervised release up to lifetime supervised release, a $750,000 fine, a $300 special assessment, and an additional $15,000 special assessment. 

The case was investigated by the Department of Homeland Security, Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.

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

PHILADELPHIA – Kenneth Hampton, 56, an inmate of a federal prison, was sentenced today to 200 Months, for masterminding a scheme under which he and his coconspirators defrauded the City of Philadelphia, the State of Pennsylvania, and innocent owners and purchasers of Philadelphia real estate.  Hampton had been found guilty of one count of conspiracy, eleven counts of wire fraud, and two counts of aggravated identity theft by a federal jury in June. 

During the time he was a federal inmate, Hampton led a scheme to file false and fraudulent deeds for residential properties in Philadelphia.  Using the prison telephones Hampton would direct other members of the scheme to locate houses, prepare and file false deeds, reside in the properties, and then eventually sell the properties for a profit. 

“The defendant in this case is a recidivist criminal who had the audacity, while he was in prison, to steal homes from innocent victims. Real estate frauds such as this have a devastating impact on each victim whose most valuable asset generally is his home,” said United States Attorney Louis L. Lappen.  “Today’s sentence of more than 16 years in prison sends the message that our justice system will not tolerate this type of financial fraud, and those who commit these crimes will be punished severely.”

The case was investigated by the United States Secret Service, Department of Homeland Security - Office of the Inspector General, Federal Bureau of Investigation and the Office of the Inspector General, City of Philadelphia.  The case was prosecuted by Assistant United States Attorneys Paul G. Shapiro and Lesley S. Bonney.

Rogelio Bernal-Pastrana, of Southampton, 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 March 10, 2017, Bernal-Pastrana, 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 December 17, 2010 and November 17, 2016.

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 Thomas M. Zaleski.

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

Raul Francisco Torres-Perez, of Elizabethtown, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen.  The indictment alleges that on or about October 13, 2017, Torres-Perez, 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 October 1, 2011 and January 10, 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 Special Assistant United States Attorney Josh A. Davison.

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

On November 14, 2017, the defendant, Joseph P. Totoro, II, 51 of Wayne, PA was sentenced to a term of 25 years of incarceration, 10 years of supervised release, and a $725 special assessment for the sexual abuse of a child over a two year time period.  The defendant was convicted in August 2017 of attempted production of child pornography, enticement of a minor, receipt of child pornography, possession of child pornography, transfer of obscene matter to a minor, and blackmail. 

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

The case was investigated by the Federal Bureau of Investigation.  The case was prosecuted by Assistant United States Attorney Priya T. De Souza.

Michael Glenn Barnes, 36 years old, of Gun Barrel City, Texas, was charged by an indictment unsealed today with aggravated identity theft, wire fraud and mail fraud charges, announced United States Attorney Louis D. Lappen.  The indictment alleges that, from May 2015 through September 2017, Barnes sought to defraud manufacturers of commercial goods by falsely representing that he was various prominent musicians and professional athletes, and requesting free merchandise, which he claimed would provide promotion and publicity for the manufacturers.  The indictment further alleges that, as part of this scheme, Barnes targeted at least 36 companies, in 11 states, including Pennsylvania, and four foreign countries. 

If convicted of the charges, the defendant faces a maximum sentence of 800 years imprisonment, including a mandatory sentence of two years imprisonment, 3 years supervised release, a $10,250 fine, and a $4,100 special assessment. 

The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency, Philadelphia Division, and the Gun Barrel City Police Department (Texas), and is being prosecuted by Assistant United States Attorney John Gallagher.   

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

innocent unless and until proven guilty.

A Philadelphia, Pennsylvania, man was sentenced to 22 months in prison today for identity theft and conspiring to file fraudulent tax refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Interim U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.

According to documents and information provided to the court, Steeve Zamor, 28, conspired with others to use stolen IDs to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds. Zamor also recruited other individuals to join the scheme. Although he did not have a tax preparation business, Zamor opened up a bank account in the name of “Steeve Zamor Tax Services” to facilitate the crime. Zamor and his co-conspirators directed the IRS to deposit some of the fraudulently obtained refunds into this bank account. Zamor withdrew money from the account to provide to other co-conspirators, and he kept a substantial portion of the illegal proceeds for his own use. He admitted to causing a tax loss of $366,135.53.

In addition to the term of prison imposed, U.S. District Judge John R. Padova of the Eastern District of Pennsylvania ordered Zamor to serve three years of supervised release and to pay $366,135.53 in restitution to the IRS. 

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

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

PHILADELPHIA – A Philadelphia, Pennsylvania, man was sentenced to 22 months in prison today for identity theft and conspiring to file fraudulent tax refund claims, announced Interim U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to documents and information provided to the court, Steeve Zamor, 28, conspired with others to use stolen IDs to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds. Zamor also recruited other individuals to join the scheme. Although he did not have a tax preparation business, Zamor opened up a bank account in the name of “Steeve Zamor Tax Services” to facilitate the crime. Zamor and his co-conspirators directed the IRS to deposit some of the fraudulently obtained refunds into this bank account. Zamor withdrew money from the account to provide to other co-conspirators, and he kept a substantial portion of the illegal proceeds for his own use. He admitted to causing a tax loss of $366,135.53.

In addition to the term of prison imposed, U.S. District Judge John R. Padova of the Eastern District of Pennsylvania ordered Zamor to serve three years of supervised release and to pay $366,135.53 in restitution to the IRS. 

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

Terrence Williams, 31 of Philadelphia, PA, was charged today by Indictment with Aggravated Identity Theft and thirteen counts of Bank Fraud, announced Acting United States Attorney Louis D. Lappen.  The indictment alleges that between February and June 2017, Mr. Williams repeatedly stole and altered checks and deposited or attempted to deposit those altered checks into various bank accounts.  The indictment additionally alleges that, in the course of perpetuating his bank fraud scheme, Mr. Williams possessed without permission the name and bank account numbers of a victim.

If convicted the defendant faces a potentially significant sentence of incarceration, including a mandatory minimum sentence of two years for the commission of Aggravated Identity Theft.

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

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

A New Jersey man was sentenced to three months in prison for conspiring to defraud the United States and to aiding and abetting the filing of false claims for tax refunds, announced Acting U.S. Attorney Louis D. Lappen

According to documents filed with the court, Peterson Blanc, 36, engaged in a scheme to fraudulently obtain income tax refunds through the filing of false tax returns using stolen personal identifying information. At least one of Blanc’s co-conspirators electronically filed the returns, which directed that the fraudulently claimed refunds be deposited into bank accounts at TD Bank and Citizens Bank in the name of Peterson Tax Services. Blanc did not have a tax preparation or bookkeeping service, but had opened up the accounts in order to facilitate the crime. He admitted to causing a loss of more than $100,000.

In addition to the term of prison imposed, U.S. District Judge John R. Padova ordered Estelly to serve three years of supervised release and to pay $100,049.10 in restitution to the Internal Revenue Service (IRS).

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

Domingo Ajanel-Box, a/k/a “Diego Hernandez-Perez,” of Guatemala, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen.  The indictment alleges that on or about May 25, 2017, Ajanel-Box, 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 April 12, 2000, June 9, 2000, March 14, 2002, September 16, 2004, August 27, 2005, and December 28, 2011.

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

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

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

Bradley Mark Cohen, 61, of Ottsville, PA,  with sentenced today to 18 months in prison, following his July 12, 2017 plea of guilty to four counts of filing false tax returns and three counts of structuring cash deposits to avoid a reporting requirement, announced Acting United States Attorney Louis D. Lappen. Cohen was also ordered to pay restitution of over $84,000 in back taxes to the IRS.

In connection with his guilty plea, Cohen admitted that between 2010 and 2014, he failed to report over $950,000 on his tax returns that he earned from his companies, Green Revolution, Inc. and Plug-In Manufacturing, which were involved in the business of selling “green” energy products, such as capacitors, to commercial and residential customers. Cohen admitted that instead of declaring this money as income, he used it to pay the majority of his personal living expenses, including his home mortgage, personal credit cards, golf club membership, and home improvements, and falsely treated these payments as business expenses that he falsely deducted from his income.

Cohen also admitted that between January 1, 2014, and September 18, 2015, he received cash from the illegal sale of marijuana that he had shipped to him from California, and that structured the deposit of over $143,000 of marijuana proceeds into his bank accounts in amounts less than $10,000 each deposit, in order to evade the banks’ currency transaction reporting requirements, of which Cohen was aware.

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

Nico Trevorsaya Braden, 28, of Easton, PA, was charged today by indictment with three counts of making false statements to federal firearms licensees announced Acting United States Attorney Louis D. Lappen.  The indictment alleges that on or about various dated between April 16, 2016 and May 5, 2016, Jonathan William Vazquez purchased seven firearms from three different federal firearms licensees, and in doing so, knowingly made false statements pertaining to information that the law requires the licensees keep.

If convicted of the charges, defendant faces a maximum sentence of 15 years’ imprisonment.  He also faces a maximum period of supervised release of 3 years, a $750,000 fine, a $300 special assessment, restitution, and forfeiture of the firearms involved.

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

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

Acting United States Attorney Louis D. Lappen today announced that yesterday, November 6, 2017, United States District Court Judge Harvey Bartle, III, sentenced Mohamed Mansaray, 41, of Springfield, Pennsylvania, to 120 months’ imprisonment for conspiring to defraud the Internal Revenue Service, aiding and abetting the preparation of false federal income tax returns, wire fraud, and aggravated identity theft.  Mansaray, a former social worker, was the owner of Medman’s Financial Services, a tax preparation service with offices in Philadelphia. Medman’s filed numerous false federal income tax returns which generated fraudulent tax refunds, some as large as $9,000.  The defendant and his co–conspirators, other tax preparers at Medman’s, obtained stolen personal identity information of foster children and used that information as fraudulent dependents on numerous income tax returns prepared for Philadelphia clients. The stolen identities were purchased from Gebah Kamara, a former Catholic Social Services employee, who was sentenced to a 30-month prison term last week by Judge Bartle.  Kamara was paid approximately $200 to $300 for each child’s identity that was included on an income tax return accepted by the IRS for processing.   Mansaray charged clients a fee of as much as $800 for fraudulently including a false dependent on an income tax return.   Over 300 foster children’s identities were stolen and misused during the scheme.  

Mansaray was first charged with conspiring to defraud the Internal Revenue Service and aiding and abetting the preparation of false federal income tax returns in May 2013.  Mansaray pled guilty to those charges in July 2014.  Additional investigation showed that after he pled guilty Mansaray continued to prepare fraudulent income tax returns for clients.  Mansaray’s bail was revoked and he was imprisoned in May 2016, after he was charged again in April 2016 with numerous additional counts of aiding and abetting the preparation of false federal income tax returns, wire fraud, and aggravated identity theft.  Mansaray pled guilty to those charges in March 2017.   

Mansaray was ordered to pay $5,277.041 restitution for the loss to the Internal Revenue Service on the false income tax returns he prepared.   This case was investigated by the Internal Revenue Service, Criminal Investigation Division, the City of Philadelphia Office of the Inspector General, and the Social Security Administration OIG- Office of Investigations, and was prosecuted by Assistant United States Attorney Paul L. Gray and former Assistant United States Attorney Karen M. Klotz.

PHILADELPHIA – Harry W. “Buck” Buchanan, 63, of Allentown, PA, was sentenced yesterday for willfully failing to file tax returns, announced Acting United States Attorney Louis D. Lappen.  Buchanan, who operated Harry Buchanan IV MD PC, failed to file federal tax returns in 2009 and 2010, even though his income substantially exceeded the minimum amount establishing the requirement to file.  He was sentenced to a term of 6 months confinement, with a year of supervised release to follow.

Buchanan is an ophthalmologist practicing in the Allentown area.  In April of 2017, he pled guilty to two counts of willful failure to file tax returns, admitting that he had failed to file tax returns or pay taxes for the years 2009 and 2010, despite knowing of his obligations.  In his plea agreement, he acknowledged that he owed federal income taxes, for those two years that totaled $194,643.

This case was investigated by the IRS Criminal Investigations.  It is being prosecuted by Assistant United States Attorney Bea Witzleben.

PHILADELPHIA – The Philadelphia Parking Authority has voluntarily addressed accessibility issues with parking at three of its Philadelphia garages in collaboration with the U.S. Attorney’s Office.

The Americans with Disabilities Act and its accompanying regulations require certain properties, including parking facilities, to have accessibility features.  The U.S. Attorney’s Office conducted a review of several Philadelphia Parking Authority garages and identified concerns regarding accessibility at the Autopark at Independence Mall at 5th and Market Streets, the Autopark at Olde City at 2nd and Sansom Streets, and the Philadelphia Gateway Parking Garage at 1540 Vine Street.  Once it became aware of the concerns, the Philadelphia Parking Authority cooperated with the U.S. Attorney’s Office to identify the issues, develop a plan to address them, and remediate promptly.

“Enforcing the Americans with Disabilities Act is an important priority of this office,” said Acting United States Attorney Louis D. Lappen. “Ensuring public access to parking facilities so that visitors to Center City can enjoy Philadelphia is a benefit to us all.  We were pleased that the PPA agreed with these priorities, and our mutual goal of ensuring access for all was accomplished.”

The U.S. Attorney’s Office for the Eastern District of Pennsylvania is committed to investigating alleged violations of the Americans with Disabilities Act.  Those interested in learning more about architectural barriers to access under the Americans with Disabilities Act may access www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD).  Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm.

The case was handled by Assistant U.S. Attorneys Paul W. Kaufman and Anthony D. Scicchitano in conjunction with the Department of Justice’s Civil Rights Division.

Orlando Rivera, 29, of Lancaster, Pennsylvania, was charged by Indictment with enticing a minor to engage in sexually explicit conduct, production of child pornography, and transfer of obscene material to a minor, announced Acting United States Attorney Louis D. Lappen.

These charges carry a 15 year mandatory minimum term of imprisonment, and a maximum penalty of life imprisonment.

The case was investigated by the Lancaster Police Department, the Federal Bureau of Investigation and the Capital City Crimes Against Children Task Force.  It is being prosecuted by Assistant United States Attorney Denise S. Wolf of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

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

Today, United States District Court Judge Harvey Bartle, III sentenced Gebah Kamara, 50, of West Chester, Pennsylvania, to 30 months’ imprisonment for conspiring to defraud the Internal Revenue Service, aiding and abetting the preparation of false federal income tax returns, wire fraud, and aggravated identity theft.  The charges arose from the defendant’s participation in a conspiracy to defraud the Internal Revenue Service (“IRS”) by filing false federal income tax returns, which generated large fraudulent refunds.  The defendant, a former social worker, stole the personal identity information of foster children from his employer, and sold that information to tax preparers in Philadelphia to use as fraudulent dependents on income tax returns, announced Acting United States Attorney Louis D. Lappen.  The defendant pled guilty to the charges on December 3, 2014.

From 2007 through approximately October 2011, defendant Gebah Kamara was employed as a social worker with Catholic Social Services in Philadelphia.  During the course of his employment, the defendant had access to the names, dates of birth, and Social Security numbers of foster children and members of the children’s foster families.   Beginning In or about 2008, the defendant sold the personal identity information of children for use as false dependents on income tax returns to his codefendants, who operated Medmans Financial Services, a tax preparation business.    

Kamara’s codefendants used the children’s personal identity information to create fraudulent dependents on income tax returns, which they prepared for clients and filed with the IRS.  By including the false dependents on tax returns, the tax preparers falsely claimed on behalf of their clients a tax exemption for each dependent, and the child tax credit, and often claimed a tax credit for child, dependent care expenses, and the earned income tax credit.  These false items generated large fraudulent tax refunds, some in excess of $9,000 per return. 

The tax preparers charged clients an additional fee of as much as $800 for fraudulently including a dependent on an income tax return.  The defendant was paid approximately $200 to $300 for each child’s identity that was included on an income tax return that was accepted by the IRS for processing. 

In addition to providing personal identity information of children to his codefendants to use as false dependents, the defendant also gave them a template that could be used to generate false letters for clients in case of an IRS audit. 

For the tax years 2007 through 2010, 283 false tax returns were filed, using 321 foster children's identities that had been provided by Kamara, causing a tax loss of approximately $1,191,093.72.

This case was investigated by the Internal Revenue Service, Criminal Investigation Division, the City of Philadelphia Office of the Inspector General, and the Social Security Administration OIG- Office of Investigations, and was prosecuted by Assistant United States Attorney Frank Costello.

Tracey Moses, 48, of Sicklerville, New Jersey entered guilty pleas today to all counts of a ten-count indictment charging her with wire fraud, announced Acting United States Attorney Louis D. Lappen. At the guilty plea hearing, before the Honorable C. Darnell Jones II, defendant Moses admitted that from August 2010 until early December 2013, when she was fired for suspected embezzlement, she worked as an accounting and payroll administrator for a market planning and research firm in Philadelphia, M. Davis & Company. The defendant admitted further that from April 2011 until late October 2013, she schemed to defraud her employer by writing herself unauthorized electronic checks drawn on three of the company’s bank accounts, in the total amount of approximately $117,000. Defendant Moses admitted further that in a separate scheme, she also defrauded the Commonwealth of Pennsylvania Department of Labor by applying for and obtaining unemployment benefits while she was actually working for M. Davis & Company and her next two employers, two temporary agencies.

The district court scheduled sentencing for February 14, 2018. Defendant Moses faces a substantial prison term, restitution to the two victims of approximately $131,000, and a fine. She is also subject to criminal forfeiture proceedings.

The case was investigated by the Federal Bureau of Investigation and the United States Department of Labor - Office of the Inspector General, with assistance from the  Pennsylvania Department of Labor and Industry Internal Audit Division, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.

 Mary Craig Williams, 71, of Fresno, California was charged today by Indictment with major fraud against the United States announced Acting United States Attorney Louis D. Lappen. According to the charges, Williams requested payments under a government contract for costs that Williams’s company had not actually incurred.

If convicted the defendant faces a maximum possible sentence of 10 years’ imprisonment, a 3 year period of supervised release, a $5,000,000 fine, and a $100 special assessment.

The case was investigated by the Department of Veterans Affairs--Office of the Inspector General and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joan E. Burnes.

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

innocent unless and until proven guilty.

Mark Vega, 35, of Shillington, Pennsylvania was sentenced today to 42 months in prison for Mail Fraud, submitting false claims to the United States, and Aggravated Identity Theft, announced Acting United States Attorney Louis D. Lappen.  According to the indictment, Vega obtained stolen identities and used the names, dates of birth, and social security numbers of these victims to apply for credit cards.  According to the indictment, Vega also had himself added as an authorized user on these credit card accounts. Vega also used stolen identities to file false tax returns claiming refunds in the names of those stolen identities.

In addition to the term of imprisonment, United States District Judge Edward G. Smith sentenced Vega to three years of supervised release and ordered him to pay $162,261.13 in restitution.

The case was investigated by the Internal Revenue Service-Criminal Investigation Division, the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Cumru Township Police Department and is being prosecuted by Assistant United States Attorney David J. Ignall

Malik Palin, a/k/a “Gambino,” 26, of New York, New York, was charged today by Indictment with attempted sex trafficking of a minor, announced Acting United States Attorney Louis D. Lappen.

If convicted, the defendant faces a mandatory minimum sentence of 10 years in prison, a maximum possible sentence of life in prison, a minimum of 5 years up to lifetime supervised release, a $250,000 fine, and a $100 special assessment.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michelle Morgan.

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

innocent unless and until proven guilty.

A federal grand jury sitting in the Eastern District of Pennsylvania returned an indictment today charging two Philadelphia-area political consultants with a scheme to use a political candidate’s campaign funds to make illegal contributions to his opponent’s campaign to secure the opponent’s agreement to drop out of a 2012 congressional primary race. 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania made the announcement.

According to the indictment, Donald “D.A.” Jones, 62, of Willingboro, New Jersey, and Kenneth Smukler, 57, of Villanova, Pennsylvania, were charged with conspiracy, causing unlawful campaign contributions and causing the filing of false reports to the Federal Election Commission (FEC), and Jones was charged with making false statements to the FBI, in connection with a falsification scheme involving unlawful contributions to the campaign of former Municipal Court Judge Jimmie Moore, a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives in the 2012 Democratic race for Pennsylvania’s First Congressional District.  According to the indictment, those payments came from the campaign committee of Moore’s opponent for the purpose of removing Moore from the race.  Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2.

As alleged in the indictment, in or about February 2012, Moore withdrew from the primary election pursuant to an agreement with his opponent, who promised $90,000 in campaign funds to be used to repay Moore’s campaign debts.  Under the applicable law, a contribution from one authorized campaign to another could not exceed $2,000 for the primary election.  Therefore, the $90,000 payment from Moore’s opponent’s campaign to pay Moore’s campaign debts constituted an unlawful campaign contribution. 

According to the indictment, the FEC requires campaigns to file periodic reports itemizing the campaign’s contributions and expenditures during the reporting period.  However, in order to conceal the unlawful contribution and its source, Moore instructed his campaign manager, Carolyn Cavaness, to create a company whose sole purpose would be to receive the funds from his opponent’s political campaign and repay Moore’s campaign debts.  As described in the indictment, those payments were routed through Voter Link Data Systems (Voter Link) and D. Jones & Associates, political consulting companies run by Smukler and Jones.

According to the indictment, the defendants used false invoices to generate a paper trail intended to justify the payments from Moore’s opponent’s campaign committee, and Cavaness, acting at Moore’s direction, used a portion of the money from the opponent’s campaign committee to repay Moore’s campaign debts, including debts to Moore and Cavaness themselves.  Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25.

According to the indictment, to further conceal the scheme, the defendants willfully caused Moore’s campaign committee to file false reports with the FEC that did not disclose or reference the funds received from his opponent’s campaign committee; did not mention Voter Link or D. Jones & Associates, the companies through which the payments were routed; and falsely listed the same debts owed by Moore’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds from Moore’s opponent’s campaign committee.  Likewise, the defendants willfully caused the opponent’s campaign committee to file false reports with the FEC that did not mention the use of campaign funds to repay Moore’s campaign debts.  Finally, the indictment alleges that Jones made material false statements to FBI agents investigating this matter, telling them that Cavaness had performed work in exchange for the opponent’s campaign funds that were routed through D. Jones & Associates, when in fact Cavaness never performed any such work.

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

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

Philadelphia – A federal grand jury returned an indictment today charging two Philadelphia-area political consultants with conspiracy, causing unlawful campaign contributions, causing the filing of false reports to the Federal Election Commission, causing false statements to the Federal Election Commission and making false statements to the FBI. 

Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.

According to the indictment, Donald Jones, 62, and Kenneth Smukler, 57, caused unlawful campaign contributions and engaged in a falsification scheme involving those contributions to the campaign of a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives.  According to the indictment, those payments came from the campaign committee of a candidate for the purpose of removing that candidate’s opponent, former Municipal Court Judge Jimmie Moore, from the 2012 Democratic race for Pennsylvania’s First Congressional District.  Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2.

As alleged in the indictment, in or about February 2012, Moore withdrew from the primary election pursuant to an agreement with his opponent, who promised $90,000 in campaign funds to be used to repay Moore’s campaign debts.  Under the applicable law, a contribution from one authorized campaign to another could not exceed $2,000 for the primary election.  Therefore, a $90,000 payment from Moore’s opponent’s campaign to pay Moore’s campaign debts would constitute an unlawful campaign contribution.  Moreover, because the FEC requires campaigns to file periodic reports itemizing the campaign’s contributions and expenditures during the reporting period, that unlawful campaign contribution should appear on the FEC reports filed by both campaigns.

According to the indictment, in order to conceal the unlawful contribution, as well as the fact that his opponent’s campaign committee paid his campaign debts, Moore instructed his campaign manager, Carolyn Cavaness, to create a company whose sole purpose would be to receive the funds from his opponent’s political campaign and repay Moore’s campaign debts.  As described in the indictment, those payments were routed through Voter Link Data Systems and D. Jones & Associates, political consulting companies run by Smukler and Jones.  According to the indictment, the defendants used false invoices to generate a paper trail intended to justify the payments from Moore’s opponent’s campaign committee.  Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25.

According to the indictment, Cavaness, acting at Moore’s direction, used a portion of the money from the opponent’s campaign committee to repay Moore’s campaign debts, including debts to Moore and Cavaness themselves.  According to the indictment, by causing Moore’s opponent’s campaign to make these payments, the defendants willfully caused the opponent’s campaign to make unlawful campaign contributions. 

In addition, true and accurate information about the payments was never disclosed to the FEC.  Instead, according to the indictment, the defendants willfully caused Moore’s campaign committee to file false reports with the FEC that did not disclose or reference the funds received from his opponent’s campaign committee, did not mention the companies of the political consultants through which the payments were routed, Voter Link and D. Jones & Associates, and falsely listed the same debts owed by Moore’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds from Moore’s opponent’s campaign committee.  According to the indictment, the defendants also willfully caused the opponent’s campaign committee to file false reports with the FEC that did not mention the use of campaign funds to repay Moore’s campaign debts.  Finally, the indictment alleges that Jones made material false statements to FBI agents investigating this matter, telling them that Cavaness had performed work in exchange for the opponent’s campaign funds that were routed through D. Jones & Associates, when in fact Cavaness never performed any such work.

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

Acting U.S. Attorney Lappen and Acting Assistant Attorney General Blanco commended special agents of the FBI, who conducted the investigation, and Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section, who are prosecuting the case.

PHILADELPHIA – An indictment, unsealed today, charges Jason C. Weigand, 47, of Denver, PA, in a scheme to defraud clients of his financial advising businesses, Nations First Financial Group (“Nations First”) and First Financial Princeton LLC (“First Princeton”), announced Acting United States Attorney Louis D. Lappen.  Weigand is charged with (i) three counts of bank fraud; (ii) four counts of wire fraud; (iii) two counts of mail fraud; (iv) three counts of aggravated identity theft; (v) four counts of accessing a protected computer without authorization; and (vi) four counts of money laundering.  According to the indictment, as a result of the alleged scheme, Weigand’s clients lost more than $290,000.

According to the indictment, Weigand was a registered investment advisor in Pennsylvania between 2009 and 2014 and in New Jersey between 2011 and 2014.  During this period, Weigand held himself to clients as a knowledgeable and reputable source of investment advice, recommending investments in both securities and insurance products.  However, notwithstanding his obligation to act primarily for the benefit of his clients and to observe high standards of commercial honor, the indictment alleges that he diverted the funds of his clients, using it for personal, business, and other purposes unrelated to the investment objective of those clients. 

According to the indictment, AR met Weigand when he became the homeowners’ insurance agent for AR and her husband.  In April, 2005, Weigand attended AR’s husband’s funeral and, around that time, suggested that he become AR’s investment advisor.  Feeling vulnerable, AR agreed. She directed Weigand to keep her money safe for retirement and not to invest it in any high risk assets.  Instead, however, Weigand used $60,000 of AR’s money to fund accounts in the name of another client and then Weigand withdrew that money for his own personal and business purposes.  Further, according to the indictment, Weigand used forged documents to open a different account in AR’s name at a brokerage, and induced AR to fund that account with almost $200,000 of her own funds.  Unbeknownst to AR, that account had check writing privileges, which Weigand used to write checks of at least $98,000 for his own benefit. 

Later, according to the indictment, AR started to become suspicious of Weigand’s management of her funds.  In an effort to cover up his own misconduct, the indictment alleges that Weigand hacked into AR’s email, used forged documents to open an account in AR’s name at another brokerage, and funded that account with money stolen from other clients.  Weigand then impersonated that client in telephone calls and emails with that brokerage. 

If convicted, Weigand faces a maximum statutory sentence of more than 20 years in prison, possible fines, a minimum sentence of 2 years, and up to three years of supervised release. Weigand would be required to pay a $2,000 special assessment.  A notice of forfeiture for $290,000 is also attached.

The case was investigated by the United States Postal Inspection Service, the Pennsylvania Department of Banking and Securities, and the Pennsylvania Insurance Department, Enforcement Division and is being prosecuted by Assistant United States Attorney Paul Shapiro.

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

Acting United States Attorney Louis D. Lappen announced today the indictment of thirteen individuals on charges including murder, drug trafficking, and unlawful possession and use of firearms.

For several years two drug distribution groups operated within the Mill Creek neighborhood of West Philadelphia to sell crack cocaine in and around two playgrounds.  One organization sold crack in a playground, commonly referred to as “the Grounds,” located near to the intersection of 52nd Street and Westminster Avenue.  The second organization sold crack in a playground, commonly referred to as “the Pit,” located near to the intersection of 51st Street and Reno Street. These two areas are within close proximity to each other (merely a few blocks away) and are separated by a baseball field on Westminster Avenue, the lower boundary of “the Grounds.” “The Grounds” organization involved Robert Mack, a/k/a “Tweet,” Kenneth Riley, a/k/a “Kenny,” James Wilson, a/k/a “JT,” Clayton Roberts, a/k/a “Water,” Mark Samuel, Xavier Towel, a/k/a “Zay,” Sir Robert Keen, a/k/a “Brock,” and others.  “The Pit” organization involved, Sean Gilliam, a/k/a “Shizzy-Ones,” Bryant Calloway, a/k/a “Bigs,” Sean Wilson, a/k/a “Lil Shizz,” Tonie Henderson, a/k/a “Tone,” Tyree Johnson, a/k/a “Riq,” and others. 

In the summer of 2013, Bryant Calloway, a convicted felon and member of “the Pit” organization, attempted to overtake a portion of the crack sales that were occurring in “the Grounds” area.  In furtherance of that effort on August 5, 2013, Bryant Calloway, and others, entered into “the Grounds” and shot and killed Brian Littles, a/k/a “BL,” who at the time was selling crack for “the Grounds” organization.  Calloway killed Littles in order to attempt to expand the drug distribution area of his organization. 

In response to the murder of Littles, members of “the Grounds” organization conspired to shoot Calloway.  On November 22, 2013, James Wilson, a convicted felon and member of “the Grounds’” organization, shot Calloway approximately 10 times.  Calloway survived the murder attempt.  Within 24 hours of the shooting of Calloway, Sean Wilson, a convicted felon and member of “the Pit” organization, fired multiple shots from a firearm down a residential street near to “the Grounds.”   “D.F.”, an innocent bystander who happened to be present in the area was shot and injured.   

            Three indictments were unsealed today in the United States District Court for the Eastern District of Pennsylvania.

Seven members of “the Grounds” organization were charged in a 16 count indictment.  That indictment charges, among other offenses, a multi-year long crack distribution conspiracy, the shooting of Bryant Calloway, possession, use and discharge of a firearm in relation to a drug trafficking crime, felon in possession of a firearm, and multiple counts of crack distribution and distribution of crack within a protected zone.

Five members of “the Pit” organization were charged in a 31 count indictment.  That indictment charges, among other offenses, a multi-year long crack distribution conspiracy, the murder of Brian Littles, the shooting of D.F., possession, use and discharge of a firearm in relation to a drug trafficking crime, felon in possession of a firearm, and multiple counts of crack distribution and distribution of crack within a protected zone. 

Also, a two count indictment was filed against Marcus Royster who, during the ATF investigation, sold over 28 grams of crack cocaine to a confidential informant within a protected zone.

“The alleged acts of those charged here illustrate the threat to our communities posed by the violent crime that goes hand in hand with drug distribution,” said Acting United States Attorney Louis D. Lappen. ”The violence knows no boundaries, nor does it respect protected zones, like community playgrounds, that should be safe spaces.  Through the cooperation between federal and local officials in cases like this, we remain committed to significant prosecutions that will make our communities safer.”

“The ATF is committed to working with our federal, state and local law enforcement partners to target violent drug trafficking organizations that are responsible for drug trafficking and related gun violence in our communities,” said Acting Special Agent in Charge Robert Cekada. “These indictments are a perfect example of the collaborative effort between the ATF and the Philadelphia Police Department to target violent offenders.”

“This investigation, along with the resultant arrests, is a fine example of great collaborative effort among law enforcement agencies,” said Philadelphia Police Commissioner Richard Ross, Jr. “We appreciate all of our law enforcement partners in our collective effort to keep our city safe.”

If convicted the defendants face lengthy terms of imprisonment.  Bryant Calloway, Kenneth Riley, and James Wilson, each face a mandatory minimum term of 30 years imprisonment and a maximum of life.  Sean Gilliam and Robert Mack each face a mandatory minimum term of 25 years imprisonment and a maximum of life.  Sean Wilson, Tyree Johnson, Clayton Roberts, Xavier Towel, Sir Robert Keen, and Marcus Royster each face a mandatory minimum term of 20 years imprisonment and a maximum of life.  Tonie Henderson and Mark Samuel each face a mandatory minimum term of 10 years imprisonment and a maximum of life.  Each defendant also faces multiple years of post-release supervision, potential fines and special assessments. 

The Bureau of Alcohol, Tobacco and Firearms, with the assistance of the Philadelphia Police Department, investigated the case.  It is being prosecuted by Assistant United States Attorneys Jonathan Ortiz and Seth Schlessinger.

Louis D. Lappen, Acting United States Attorney for the Eastern District of Pennsylvania, announced a series of agreements to resolve the U.S. Attorney’s Office Americans With Disabilities Act (ADA) compliance review of twelve Philadelphia restaurants. The restaurants are operated by Garces Restaurant Group (“Garces”), Starr Restaurant Organization (“Starr”), Restaurant 13 and Longacre Holdings (“Longacre”). The government inspected these restaurants for ADA compliance as part of the ADA Compliance Review of 25 Philadelphia restaurants launched by the United States Attorney’s Office in 2015. These restaurants were not reviewed in response to any specific complaint.

Garces entered into a Voluntary Compliance Agreement to resolve the government’s ADA compliance review of Amada, Tinto, and Village Whiskey. Starr and affiliated entities entered into Voluntary Compliance Agreements to resolve the government’s ADA compliance review of Buddakan, Butcher & Singer, Dandelion, El Vez, Morimoto, Parc, and Talula’s Garden. Restaurant 13 entered into a Voluntary Compliance Agreement to resolve the government’s ADA compliance review of Barbuzzo.

Longacre entered into a settlement agreement to resolve the government’s 2016 lawsuit filed in federal court arising from Longacre’s failure to cooperate with the ADA Compliance Review of South Philadelphia Tap Room.

The agreements announced today require the restaurant operators to take steps to remove specific barriers to accessibility identified by the Department of Justice during inspections of these twelve restaurants. These agreements also require each operator to identify and correct violations of the ADA that may exist in affiliated restaurants and to implement new or revised ADA policies. Collectively, these agreements will impact accessibility at dozens of restaurants.

“The U.S. Attorney’s Office initiated this compliance review to ensure that individuals with disabilities have equal access to area restaurants to the full extent guaranteed by the Americans With Disabilities Act. The agreements announced today further that important goal,” said Lappen. “Restaurants must comply with the accessibility provisions of the ADA. If they do not we, will continue to take all reasonable steps within our power to enforce compliance, including litigation if necessary.”

The ADA compliance review of these restaurants was handled by the office’s Civil Rights Coordinator, Assistant U.S. Attorney Jacqueline C. Romero, and Assistant U.S. Attorney John T. Crutchlow.

PHILADELPHIA –Mohammed Jabbateh, a/k/a “Jungle Jabbah,”51, a citizen of Liberia residing in East Lansdowne, PA, was found guilty of two counts of fraud in immigration documents and two counts of perjury, announced Acting United States Attorney Louis D. Lappen and Special Agent-in-Charge Marlon Miller, Homeland Security Investigations. In December of 1998, when making application for asylum and later for permanent legal residency, the defendant was not truthful about his activities during Liberia’s first civil war while he was a member of the United Liberation Movement of Liberia for Democracy (ULIMO) and later ULIMO-K, rebel groups that battled for control of Liberia. Jabbateh was a battalion commander in ULIMO and ULIMO-K.

In January of 1999, during the asylum seeking process, Jabbateh was interviewed by a United States asylum officer for purposes of determining whether his application should be granted. To this end, he jury heard evidence that Jabbateh falsely responded "no" to the following two queries: 1) "[H]ave you ever committed a crime?"; and 2) "[H]ave you ever harmed anyone else?" On or about December 23, 1999, Jabbateh, largely based upon his answers to these and other questions posed on his Form I-589 asylum application and his answers to questions posed during his asylum application interview, received asylum.

Later, when Jabbateh applied for legal permanent residency by filing a Form I-485 with United States immigration authorities, he falsely responded "No" to the following two questions:

“Have you ever engaged in genocide, or otherwise ordered, incited, assisted or otherwise participated in the killing of any person because of race, religion, nationality, ethnic origin or political opinion?” and

“Are you under a final order of civil penalty for violating section 274C of the Immigration and Nationality Act for use of fraudulent documents or have you, by fraud or willful misrepresentation of a material fact, ever sought to procure, procured, or procured, a visa, other documentation, or entry into the U.S. or any immigration benefit?”

The jury found that the defendant knew his answers to these two questions were false in that he had ordered, incited, assisted, and otherwise participated in the killing of any person because of religion, nationality, ethnic origin, and political opinion; and knew that he had procured asylum in the United States by fraud and willful misrepresentation of material fact.

During the course of two weeks of testimony from over two dozen witnesses that included 17 Liberian victims and eyewitnesses, the jury heard evidence that Jabbateh, as a ULIMO commander from approximately 1992 through 1995, either personally committed, or ordered ULIMO fighters under his command to commit the following nonexclusive list of acts: 1) the murder of civilian noncombatants; 2) the sexual enslavement of women; 3) the public raping of women; 4) the maiming of civilian noncombatants; 5) the torturing of civilian noncombatants 6) the enslavement of civilian noncombatants; 7) the conscription of child soldiers; 8) the execution of prisoners of war; 9) the desecration and mutilation of corpses and ritual consumption of human flesh, including human hearts; and 10) the killing persons because of race, religion, nationality, ethnic origin or political opinion.

“Jabbateh sought to escape to the United States and start anew, where he lied about his extensive and horrific criminal background on federal immigration forms and to the faces of U.S. immigration officers,” said Acting United States Attorney Louis D. Lappen. “Jabbateh committed atrocities in Liberia that ravaged communities in ways that will be felt for generations.  This office has rarely if ever seen such an abuse of our immigration process, and we are incredibly proud of the efforts of law enforcement and the victim witnesses who helped bring this man to justice.  We thank the jury for its just and proper verdict of guilty on all counts.”

"The United States will not be a safe haven for human rights violators and war criminals,” said Marlon Miller, special agent in charge of HSI’s Philadelphia office. “Today’s verdict will help bring justice to the victims of Mr. Jabbateh's atrocities, for having survived the suffering he inflicted during the Liberian Civil War.  HSI will continue to use every tool at our disposal to ensure that those who have committed such acts abroad never evade justice and accountability for their crimes by hiding among their victims in the United States.”

At sentencing, Jabbateh faces a maximum possible sentence of 30 years in prison, a possible fine, a $400 special assessment, and a period of supervised release.

The case was investigated by U.S. Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr. and Nelson S.T. Thayer, Jr.

Hakan Yildiz, of Levittown, PA, was charged today by Indictment with illegal reentry after deportation, and Social Security fraud, announced Acting United States Attorney Louis D. Lappen.  The indictment alleges that on or about September 7, 2017, Yildiz, an alien, and native and citizen of Turkey, was found in the United States after having been deported from the United States on or about August 15, 2000.  He is also alleged to have obtained a Social Security Number after falsely representing to the Commissioner of Social Security that he had work status.  According to the indictment, Yildiz then utilized this Social Security Number to obtain a Pennsylvania Identification Card.

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

The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), the Social Security Administration – Office of Inspector General, and is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.

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

PHILADELPHIA – Louis D. Lappen, Acting United States Attorney for the Eastern District of Pennsylvania, announced today that the United States had reached a civil settlement with URS Corporation (“URS”) resolving civil claims concerning URS’ improperly billing under a Joint Venture Project Management Oversight Agreement (“PMO”) with Amtrak.  To resolve the government’s civil claims against it, URS has agreed to pay the United States $900,000.00 pursuant to the settlement agreement.      

URS and its joint venture partner performed project management functions on several Amtrak construction projects throughout the eastern United States.  The PMO contract required that URS bill actual labor and overhead rates for the employees working the various projects.   The United States contends that it has certain civil claims against URS arising from URS’ billing under the PMO contract during the period January 1, 2011 through December 31, 2014.  This conduct included: a) continuing to bill overhead at a maximum rate listed in the Joint Venture PMO Contract without adjusting the overhead rate to actual costs incurred; and  b) billing employees at home overhead rates although they were considered as field employees’ in URS’ general ledger.   

The case arose when an audit of URS’ billing showed discrepancies.  Amtrak and the Department of Transportation’s Offices of Inspector General investigated this case.  For the United States Attorney’s Office for the Eastern District of Pennsylvania, Assistant United States Attorney Colin Cherico and Auditor Dawn Wiggins handled the investigation and settlement.  

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

Herman Rosario, 34, of Philadelphia, Pennsylvania, and Yatska Melendez, 22, of Philadelphia, Pennsylvania, were charged today by Indictment[1] with one count of conspiring to distributed one kilogram or more of heroin, and 28 grams of more of crack cocaine, announced Acting United States Attorney Louis D. Lappen.  Rosario was also charged with possessing with the intent to distribute one kilogram or more of heroin, and 28 grams of more of crack cocaine, possessing a firearm in furtherance of drug trafficking crime, and being a felon in possession of a firearm.  On July 14, 2017, Rosario and Melendez were arrested in South Philadelphia after a month-long investigation by the Philadelphia Police Department.  Rosario faces a maximum sentence of life in prison, mandatory minimum prison sentences of 10 and 5 years, a $20,500,000 fine, a lifetime of supervised release, and a $400 special assessment.  Melendez faces a maximum sentence of life in prison, a mandatory minimum prison sentence of 10 years, a $10,000,000 fine, a lifetime of supervised release, and a $100 special assessment.

The case was investigated by the Drug Enforcement Administration and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Jason P. Bologna.

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

Jose Perez, 52, of Philadelphia, PA was sentenced today after pleading guilty to one count of conspiracy to defraud the United States announced Acting United States Attorney Louis D. Lappen.  Perez was sentenced to 51 months’ imprisonment and ordered to pay $814,981 in restitution.

Perez admitted that he participated in a scheme that defrauded the United States by filing false income tax returns using stolen identities of Puerto Rico residents.  Perez collected the tax refund checks from addresses he and others controlled and then he gave the checks to another member of the scheme to be cashed.  Between April 2009 and June 2009, Perez and others in the scheme cashed over $800,000 of fraudulently obtained United States Treasury tax refund checks.

The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant United States Attorney David Ignall.

Julie Ann Turk 46, of Slatington, Pennsylvania was charged in an indictment[1] unsealed this week with one count of bank fraud, one count of bank embezzlement, and three counts of money laundering, announced acting United States Attorney Louis D. Lappen. The indictment alleges that between January of 2009 and April of 2016, Turk, an employee of Allentown Federal Credit Union, defrauded the credit union and its customers out of approximately $641,637 and further conducted monetary transactions with the proceeds of the bank fraud and bank embezzlement in amounts greater than $10,000.

If convicted, the defendants face a maximum sentence of 90 years= imprisonment, a five-year term of supervised release, a $2,500,000 fine, and a $500 special assessment.

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.

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

PHILADELPHIA – Acting United States Attorney Louis D. Lappen today announced an indictment charging Peter Goodchild, 54, of Philadelphia, PA, former bookkeeper for QwikSource LLC of Florham Park, NJ, with embezzling almost $1.6 million from QwikSource from at least 2005 through 2015.  Goodchild is also charged with money laundering, aggravated identity theft, and filing false income tax returns during this period. 

According to the indictment, the embezzlement scheme involved a variety of frauds.  Goodchild opened a PayPal account using his employer’s name, transferred funds from QwikSource’s bank account to that PayPal account, from that PayPal account to another PayPal account belonging to his girlfriend, and from his girlfriend’s PayPal account to one or more of his personal bank accounts.  Goodchild further concealed the embezzlement by making financial entries on files he maintained for QwikSource that increased the cost of goods sold by the same amount of the money he wired from QwikSource’s account to the PayPal accounts and his personal bank accounts. 

Goodchild failed to pay taxes on his wealth.  Between 2010 and 2015, he embezzled at least $854,800 and had unreported income of $231,100 in 2010, $215,100 in 2011, $83,600 in 2012, $125,000 in 2013, $152,000 in 2014, and $48,000 in 2015.  His actions created a tax loss of  approximately $240,648. 

The indictment charges 48 counts of wire fraud, 10 counts of money laundering, six counts of filing a false income tax return, and one count of aggravated identity theft.  Wire fraud and money laundering are punishable by up to 20 years in prison.  Filing a false tax return is punishable by up to three years.  Aggravated identity theft is punishable by a mandatory two years of prison that must follow any term imposed on the other counts.  Additionally, Goodchild will be subject to restitution and/or forfeiture of money and substitute assets totaling $1,589,315. 

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

A former Municipal Court Senior Judge pleaded guilty to a criminal information unsealed yesterday charging him with causing false statements to the Federal Election Commission (FEC) in connection with a 2012 congressional primary election.  Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania made the announcement.

According to the plea memorandum filed today, Jimmie Moore, 66, of Philadelphia, engaged in a falsification scheme involving payments to his 2012 campaign for the Democratic Party’s nomination for member of the U.S. House of Representatives.  According to the plea memorandum, those payments came from the campaign committee of Moore’s political opponent for the purpose of removing Moore from the Democratic primary for Pennsylvania’s First Congressional District.

As set forth in the criminal information and the government’s plea memorandum, Moore admitted that in or about February 2012, he withdrew from the primary election pursuant to an agreement with his opponent, who promised to pay Moore $90,000 from his campaign funds to be used to repay Moore’s campaign debts.  According to the plea memorandum, those payments were made to Moore’s campaign manager, Carolyn Cavaness, 34, of Philadelphia, and to an entity created for the purpose of repaying the Moore campaign’s outstanding debts to its vendors.  Those payments were routed through consulting companies to conceal their true source.

According to the plea memorandum, Cavaness, acting at Moore’s direction, used the money from Moore’s opponent’s campaign committee to repay the campaign vendors and to reimburse Moore for loans he had made to his own campaign.  However, Moore’s campaign failed to disclose this information to the FEC.  Instead, Moore knowingly and intentionally caused his campaign committee to file false reports with the FEC which did not disclose or reference the funds received from his opponent’s campaign committee, did not mention the companies of the political consultants through which the payments were routed, and falsely listed the same debts owed by Moore’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds paid to Moore by his opponent’s campaign committee.  According to the plea memorandum, Moore and Cavaness knowingly and intentionally caused his campaign to file these false reports in order to conceal from the FEC the fact that Moore’s opponent’s campaign committee had made the payments to Moore’s campaign in excess of the statutory contribution limit in exchange for the defendant’s agreement to withdraw from the primary election.

Cavaness previously pleaded guilty to a criminal information charging her with causing false statements to the FEC in connection with this scheme. 

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

A former Municipal Court Senior Judge pleaded guilty to a criminal information unsealed yesterday charging him with causing false statements to the Federal Election Commission (FEC) in connection with a 2012 congressional primary election.  Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.

According to the plea memorandum filed today, Jimmie Moore, 66, of Philadelphia, engaged in a falsification scheme involving payments to his 2012 campaign for the Democratic Party’s nomination for member of the U.S. House of Representatives.  According to the plea memorandum, those payments came from the campaign committee of Moore’s political opponent for the purpose of removing Moore from the Democratic primary for Pennsylvania’s First Congressional District.

As set forth in the criminal information and the government’s plea memorandum, Moore admitted that in or about February 2012, he withdrew from the primary election pursuant to an agreement with his opponent, who promised to pay Moore $90,000 from his campaign funds to be used to repay Moore’s campaign debts.  According to the plea memorandum, those payments were made to Moore’s campaign manager, Carolyn Cavaness, 34, of Philadelphia, and to an entity created for the purpose of repaying the Moore campaign’s outstanding debts to its vendors.  Those payments were routed through consulting companies to conceal their true source.

According to the plea memorandum, Cavaness, acting at Moore’s direction, used the money from Moore’s opponent’s campaign committee to repay the campaign vendors and to reimburse Moore for loans he had made to his own campaign.  However, Moore’s campaign failed to disclose this information to the FEC.  Instead, Moore knowingly and intentionally caused his campaign committee to file false reports with the FEC which did not disclose or reference the funds received from his opponent’s campaign committee, did not mention the companies of the political consultants through which the payments were routed, and falsely listed the same debts owed by Moore’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds paid to Moore by his opponent’s campaign committee.  According to the plea memorandum, Moore and Cavaness knowingly and intentionally caused his campaign to file these false reports in order to conceal from the FEC the fact that Moore’s opponent’s campaign committee had made the payments to Moore’s campaign in excess of the statutory contribution limit in exchange for the defendant’s agreement to withdraw from the primary election.

Cavaness previously pleaded guilty to a criminal information charging her with causing false statements to the FEC in connection with this scheme. 

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

Marisol Rivera, 57, of Jacksonville, Florida, was charged today by Indictment with wire fraud, announced Acting United States Attorney Louis D. Lappen.

If convicted the defendant faces a maximum possible sentence of 40 years’ incarceration, $500,000 fine, 3 years of supervised release, and a special assessment of $200, plus restitution and forfeiture.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy Rue.

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

PHILADELPHIA - ZB, N.A, formerly known as Zions First National Bank, N.A. (Zions), of Salt Lake City, Utah, settled allegations by the United States Attorney’s Office for the Eastern District of Pennsylvania that Zions and its affiliated payment processor facilitated consumer fraud by providing payment processing services to telemarketing and Internet merchants that were debiting money illegally from consumers’ bank accounts.  Under a civil settlement reached between ZB and the government, the bank will pay a civil money penalty of $3.6 million to the United States Treasury, announced Acting United States Attorney Louis D. Lappen.

The government alleges that Zions and its affiliate Modern Payments provided ACH debit processing services to a number of telephone and Internet marketing merchants that were engaged in fraud against consumers.  The government further alleges that Zions and Modern Payments knew or were willfully blind to the fact that the marketing merchants were engaged in fraud campaigns against consumers.  Modern Payments, through Zions, debited money from consumers’ bank accounts and transferred that money to the marketing merchants. 

Banks are a critical key in many consumer fraud schemes.  After a fraudulent marketer obtains bank account information from a consumer, the fraudulent marketer still needs to gain access to the banking system in order to take the consumer’s money.  Fraudulent marketers have a difficult time opening their own bank accounts because of laws designed to prevent criminals from accessing the banking system.  To overcome this obstacle, fraudulent marketers often obtain indirect access to the banking system through a third-party payment processor that can more easily establish a relationship with a bank.

The government alleges that Zions and Modern Payments knew of, or were willfully blind to, ten Modern Payment’s telemarketing and Internet marketing clients using Modern Payments to access the banking system through Zions to engage in consumer fraud schemes.  Specifically, the government alleges that Zions and Modern Payments knew of or were willfully blind to indicators of consumer fraud, including high rates of ACH debit transactions returned from consumers’ accounts as unauthorized.  The government also alleges that Zions and Modern Payments facilitated the fraud campaigns of two marketers by initiating debits against consumers’ bank accounts despite knowledge or being willfully blind to the fact that the debits violated rules that prohibited both processing payments associated with outbound telemarketing, and recurring payments pursuant only to a voice-authorization.  The government also alleges that Modern Payments failed to conduct sufficient due diligence of certain of its marketing clients before providing them with access to consumers’ bank accounts -- despite Zions’ internal skepticism of the marketers’ business practices and acknowledgement that Zions would be at risk for the marketers’ conduct. 

The government contends that Zions and Modern Payments’ conduct violated the Financial Institutions Reform, Recovery and Enforcement Act, 12 U.S.C. § 1833a (“FIRREA”).  FIRREA authorizes the imposition of civil monetary penalties for violations of enumerated criminal statutes affecting a federally-insured financial institution.  These crimes include mail fraud and wire fraud.

Modern Payments received $1.2 million in fee revenue from the fraudulent marketers.  In addition to the $3.6 million penalty paid to the United States Treasury in connection with this settlement, pursuant to a separate class action settlement approved by a Federal court, ZB has established a $37.5 million compensation fund for the victims of the frauds.

The case was handled by Assistant United States Attorney Joel M. Sweet and Investigator Jeffrey R. Braun.

Maximo Velez, 26, of Reading, PA., was charged today by indictment with false statements to a federal firearms licensee and transfer of a firearm to a juvenile, announced Acting United States Attorney Louis D. Lappen.  The indictment alleges that on or about September 26, 2015, Velez made a false statement to a federal firearm licensee during the purchase of a firearm, wherein he falsely certified that he was the actual transferee/buyer of the firearm when in fact, as he knew at the time that he was making the purchase for a juvenile.

If convicted the defendant faces a maximum sentence of 6 years’ imprisonment.

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

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

Abel Montero-Mendoza, 32, of Oxford, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen.  The indictment alleges that on or about November 3, 2014, Montero-Mendoza, 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 September 17, 2005 and June 15, 2010.

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

The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, 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.

Deodoro Suchite-Garcia, a/k/a “Teodoro Susachete-Garcia,” of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen.  The indictment alleges that on or about August 25, 2017, Suchite-Garcia, 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 February 2, 2011, April 29, 2011, December 17, 2014, March 24, 2015, June 3, 2016, and July 22, 2016.

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 Melanie B. Wilmoth.

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

Ricardo Medrano Damas, a/k/a "Ricardo Medrano Damaso," a/k/a "Armando Villalongo-
Reyes," of the Dominican Republic, was charged today by Indictment with illegal reentry after deportation, announced Acting united states Attomey Louis D. Lappen. The indictment alleges that on or about August 28,2017, Medrano Damas, an alien, and native and citizen of the
Dominican Republic, was found in the United States after having been deported from the United
States on or about May 30, 2003, December 1, 2010, April 4,2012, and June 21, 2016.

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

The case was investigated by Immigration and Customs Enforcement, Enforcement and
Removal Operations ("ERO"), and is being prosecuted by Assistant United States Attomey Paul
Gray.

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

PHILADELPHIA – The United States filed a civil fraud lawsuit today against Babu (Bob) Metgud and Shubhada (Sue) Kalyani, of Moorestown, New Jersey, and four companies, Shubhada Industries, d/b/a Shubhada, Inc., Metcon Aerospace & Defense, d/b/a Metcon Industries, NRI Capital Corporation, and The Innovation Technology & Enterprise Development Center, Inc. The complaint, announced by Acting United States Attorney Louis D. Lappen, alleges that the defendants engaged in a scheme to overcharge the military for spare vehicle parts.  

According to the complaint, Shubhada Industries described itself as a manufacturer to the Defense Logistics Agency and agreed to manufacture two light assemblies, a type of turn signal for munitions vehicles. But instead of manufacturing these assemblies, Shubhada Industries allegedly purchased them from someone else for $1,351.62, charged the military $73,842.00 for the same items—a 5400 percent markup—and pocketed the difference. The complaint alleges that when the government asked Metgud about the price, he made false statements describing Shubhada Industries’ non-existent manufacturing process and encouraged the military to buy more of the items. Kalyani likewise allegedly made false statements to conceal the company’s actual role as a dealer instead of a manufacturer.

The complaint additionally names as defendants Metcon Industries, the entity through which Metgud purchased the light assemblies, and two other alleged alter egos of Shubhada Industries.

“This case is another example of the commitment of our office to hold accountable those who cheat the government by charging excessive fees for their products,” said Acting United States Attorney Louis D. Lappen.  “We will continue to use our resources to ensure that those who do business with the government are truthful and transparent in their dealings and treat our taxpayers fairly.”

 The United States filed the lawsuit under the False Claims Act. Under the False Claims Act, a person who causes false or fraudulent claims to be submitted to the government for payment is liable for three times the government’s damages, plus civil penalties for each false claim. The complaint contains allegations only, and not findings of liability.

The allegations arose from an investigation led by the United States Department of Defense, Defense Criminal Investigative Service. Assistant United States Attorney Michael S. Macko handles the matter.

PHILADELPHIA –Asplundh Tree Experts, Co., one of the largest privately-held companies in the United States, headquartered in Willow Grove, Pennsylvania (“Asplundh”), pleaded guilty today to unlawfully employing aliens, in connection with a scheme in which the highest levels of Asplundh management remained willfully blind while lower level managers hired and rehired employees they knew to be ineligible to work in the United States, announced acting United States Attorney Louis D. Lappen. Following the guilty plea hearing today, the Honorable John R. Padova sentenced the company to pay a forfeiture money judgment in the amount of $80,000,000.00 and abide by an Administrative Compliance Agreement, as set forth by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Philadelphia. Pursuant to a separate Civil Settlement Agreement, Asplundh will pay an additional $15,000,000.00 to satisfy civil claims arising out of their failure to comply with immigration law.

The $95,000,000.00 recovery, including $80,000,000.00 criminal forfeiture money judgment and $15,000,000.00 in civil payment, represents the largest payment ever levied in an immigration case.

According to court documents, from 2010 until December 2014, Asplundh, an industry leader in tree trimming and brush clearance for power and gas lines, hired and rehired employees in many regions in the United States accepting identification documents it knew to be false and fraudulent. A six-year HSI audit and investigation revealed that the company decentralized its hiring so Sponsors (the highest levels of management) could remain willfully blind while Supervisors and General Foremen (2nd and 3rd level supervisors) hired ineligible workers, including unauthorized aliens, in the field. Hiring was by word of mouth referrals rather than through any systematic application process. This manner of hiring enabled Supervisors and General Foremen to hire a work force that was readily available and at their disposal.

This decentralized model tacitly perpetuated fraudulent hiring practices that, in turn, maximized productivity and profit. With a motivated work force, including unauthorized aliens willing to be relocated and respond to weather related events around the nation, Asplundh had crews which were easily mobilized that enabled them to dominate the market. Asplundh provided all the incentives to managers to skirt immigration law.

“Our partners at U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Philadelphia are to be commended for their work on this lengthy audit and investigation, spanning 6 years," said Acting United States Attorney Louis D. Lappen.  "Today’s settlement and the compliance agreement makes it clear, that companies must play by the rules and treat everyone fairly.”   

“Today marks the end of a lengthy investigation by ICE Homeland Security Investigations into hiring violations committed by the highest levels of Asplundh’s organization,” said ICE Acting Director Thomas Homan. “Today’s judgment sends a strong, clear message to employers who scheme to hire and retain a workforce of illegal immigrants: we will find you and hold you accountable. Violators who manipulate hiring laws are a pull factor for illegal immigration, and we will continue to take action to remove this magnet.”

The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Philadelphia and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.

Ari Tietolman, 43, of Montreal, Canada, was charged in a Superseding Indictment1 with three counts of wire fraud and four counts of money laundering, announced Acting United States Attorney Louis D. Lappen. In addition, the Superseding Indictment added Adam Harper, 34, of Montreal, Canada, who is also charged with three counts of wire fraud and four counts of money laundering.

According to the Superseding Indictment, between 2005 and March 2014, Tietolman, Harper, and others used Tietolman’s network of telemarketers in Canada and India to target American senior citizens with deceptive telemarketing calls. They sold worthless or non-existent services and then debited the victims’ bank accounts without their informed consent. Using the business names Fraud Watch, Patient Assistance Plus, Legal Eye and Trust One, the worthless or non-existent services these telemarketers sold included purported fraud protection and discounted legal services, as well as a discount prescription card.

During the calls, Tietolman’s telemarketers allegedly made various false representations, such as that they were calling on behalf of, or were affiliated with, the victim’s bank, or insurance company, or the United States government. In addition to misrepresenting the value of the products being marketed, Tietolman’s telemarketers allegedly misrepresented the cost of these products, sometimes telling consumers the products were free, or less expensive than the amount that was ultimately debited from the consumers’ bank accounts. In other instances, Tietolman’s telemarketers allegedly assured consumers they would not debit the consumers’ bank accounts, and then did just that after the consumer provided their bank account information.

According to the Superseding Indictment, Tietolman and Harper attempted to conceal their involvement in the scheme by employing others to run “front” companies and process the fraud money. The sole purpose of these corporations was to process the fraud proceeds generated by the telemarketing scheme. Tietolman and Harper instructed others to open up numerous bank accounts in the United States in the names of the fraud companies that they had incorporated. Tietolman, Harper, and others controlled these United States bank accounts from Canada. Tietolman and Harper instructed others in the United States to deposit victims’ funds in batches of less than $10,000 to avoid federally-mandated reporting requirements. After the funds were deposited, Tietolman and Harper instructed others to wire the majority of the funds to accounts in Canada.

Tietolman and Harper face maximum possible sentences of 170 years in prison; three years of supervised release; a fine of $1.75 million or up to double the amount involved in the money laundering; and a $700 special assessment.
In March 2016, Marc Roy Ferry, 36, of Downingtown, Pennsylvania, pleaded guilty in a related case to his role in running “front” companies in the United States for Tietolman and Harper.

The case was investigated by the FBI, IRS - Criminal Investigations, Homeland Security Investigations, the Federal Trade Commission, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Vineet Gauri.

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