Eastern District of Pennsylvania

PHILADELPHIA - Young Hwa Jung, 57, of North Wales, PA, was sentenced today to 15 months in prison for committing fraud against a government assistance program, announced Acting United States Attorney Louis D. Lappen. The defendant had been charged by criminal information with one count of conspiracy and one count of trafficking in Supplemental Nutrition Assistance Program (“SNAP”), benefits, formerly known as food stamps. The SNAP is administered by the United States Department of Agriculture (“USDA”)’s Food and Nutrition Service, with the goal of alleviating hunger in the United States.

The defendant owned and operated Jung & Hong Inc, a retail grocery store located at 2501 South 70th Street in Philadelphia. As he admitted at his guilty plea hearing on December 13, 2016, the defendant trafficked SNAP benefits by purchasing those benefits from customers of Jung & Hong, Inc. in exchange for cash, which is illegal. As the defendant admitted further, between January 2011 and May 2016, as a result of his trafficking activities, the defendant caused a loss of approximately $607,017.17 to USDA’s Food and Nutrition Service.

In addition to the prison term, the Honorable Gene E.K. Pratter, United States District Judge, sentenced the defendant to three years of supervised release to follow incarceration; full restitution of $607,017.17; and a special assessment of $200. The Court also ordered forfeiture of a 2013 Toyota Tundra that the defendant had purchased with the proceeds of the fraud.

The case was investigated by the United States Department of Agriculture Office of Inspector General and Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Mary E. Crawley.

Stephen Leib, 73, of Philadelphia, Pennsylvania pleaded guilty today to three counts of tax evasion announced Acting United States Attorney Louis Lappen. According to the Information, Leib owned and operated New Wave Logistics, Inc., located on Bustleton Avenue in Philadelphia, Pennsylvania. Despite having a business bank account, Leib used a check casher to cash the majority of the checks his business received. Leib lied to his accountant about the total income his business earned in 2008, 2009, and 2010, by claiming his business bank account represented his total income. As a result, Leib’s accountant omitted a substantial amount of income from Leib’s tax returns in 2008, 2009, and 2010. From 2008-2010, Leib evaded the assessment and payment of over $800,000 in taxes by hiding his total business income from the IRS and by filing false tax returns.

The defendant faces a maximum possible sentence of five years’ imprisonment, a $250,000 fine, a $100 assessment, and three years of supervised release per count of conviction.

The case was investigated by IRS Criminal Investigations and is being prosecuted by Assistant United States Attorney Tiwana Wright.

An Indictment[1] was returned today charging Larry Joseph Wolfe, 48, of Silver Spring, Maryland with one count of bank fraud and one count of aggravated identity theft, announced Acting United States Attorney Louis D. Lappen.

The Indictment alleges that Wolfe posed as an account holder at Beneficial Bank by using the account holder’s means of identification and a false driver’s license in the account holder’s name but containing Wolfe’s photograph to withdraw $424,000 in the form of cashier’s checks from accounts controlled by the account holder, then deposited several of the checks into a Mount Airy Casino account in the name of a person who Wolfe also impersonated, and then withdrew the money in cash from the Mount Airy Casino account.

Wolfe faces a maximum sentence of 32 years’ imprisonment, including a mandatory two-year term of imprisonment, a five-year period of supervised release, a $1,250,000 fine, and an $200 special assessment and restitution of $424,000.

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

 

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

Oscar Alexander Moreno, a/k/a “Oscar Alexander Moreno Rodrgiuez,” of Reading, 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 February 7, 2017, Moreno, an alien, and native and citizen of El Salvador, was found in the United States after having been deported from the United States on or about January 3, 2012.

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 Joel D. Goldstein.

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

 

Norman Ross, 68, of Philadelphia, PA was charged today by Indictment with access device fraud and aggravated identity theft, announced Acting United States Attorney Louis D. Lappen

 

If convicted the defendant faces a maximum possible sentence of 17 years imprisonment and 3 years supervised release.

 

The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attorney K.T. Newton.

 

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

 

PHILADELPHIA – Kevin Harris, 32, of Philadelphia, was charged today by indictment[1] with possession of a firearm by a convicted felon, announced Acting United States Attorney Louis D. Lappen. According to the indictment, on January 7, 2017, Harris was in possession of a 9mm semiautomatic pistol, loaded with 15 live rounds of hollow-point ammunition.

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

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

 

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

PHILADELPHIA - James Kerr Schlosser, 59, of Bird-in-Hand, Pennsylvania was convicted of engaging in corrupt endeavors to obstruct and impede the Internal Revenue Service and to willfully failing to file tax returns, announced Acting United States Attorney Lou Lappen. Schlosser, a manufacturer's representative for companies that sold medical equipment and surgical devices to various health care providers, stopped filing federal income tax returns in 1995.

To conceal the income that he had earned, Schlosser attempted to assign his income to multiple foreign business trusts and corporate entities which he created and registered with the Nevada Secretary of State. In order to obtain possession of the income, Schlosser entered into contracts with Nevada-based mailing forwarding services who caused the income, that had been sent to the foreign trusts and corporate entities, to be forwarded to Schlosser in Pennsylvania or other individuals who Schlosser had convinced to serve as trustees for one or more of the foreign business trusts.

Evidence offered during the trial established that Schlosser failed to file tax returns for approximately 20 years even though he realized gross receipts of approximately $2.3 million from 1994 through 2014. Testifying in his own defense, Schlosser told the jury that he refused to file tax returns because he concluded that the use of a social security number represented the "mark of the beast" alluding to a passage in the Bible.

"The legality of our income tax laws has been challenged time and time again and the courts have consistently upheld these laws. Convictions, like the one returned against James K. Schlosser, send a loud and clear message that regardless of their opinions, people who willfully defy the tax laws will be fully investigated, prosecuted, and subjected to the full punishment of the law for their actions," said Internal Revenue Service Criminal Investigation Acting SAC Gregory Floyd.

Schlosser is scheduled for sentencing before United States District Judge Jeffrey L. Schmehl on June 10, 2017. He faces a maximum of 5 years imprisonment, a fine of $450,000 and the cost of prosecution.

The case was investigated by Internal Revenue Service Criminal Investigations and prosecuted by Assistant United States Attorney Floyd J. Miller and DOJ Trial Attorney Derek Ettinger.

Cashed More than $4 Million in Fraudulently Obtained Refunds

 

An Allentown, Pennsylvania woman pleaded guilty to conspiring to file federal tax returns using stolen IDs, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.

 

According to the indictment and information presented to the court, Jessenia Cordero, 37, operated MJ & Associates and Express Tax Services, both located in Allentown. These businesses provided tax preparation, check cashing and other services to customers. Cordero and her co-conspirators obtained lists of Puerto Rico residents’ names and social security numbers and used these IDs to file fraudulent tax returns with the Internal Revenue Service (IRS). The conspirators directed the IRS to mail the refund checks to addresses they controlled and to deposit the refunds onto pre-paid debit cards. Cordero used her businesses to cash fraudulently obtained refund checks totaling approximately $4,316,103.

 

Cordero is scheduled to be sentenced on June 12, before U.S. District Judge Edward G. Smith. She faces a statutory maximum sentence of 10 years in prison, a period of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS-Criminal Investigation, HSI and FBI, and the Allentown Police Department, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Matthew J. Kluge of the Tax Division, who are prosecuting the case.

 

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

Louis D. Lappen, Acting United States Attorney, announced the unsealing of a Forty-Two count indictment issued against Lawrence Jamieson, 57, of Malvern, PA, and John Brown, 25, of Norristown, PA. The pair was charged yesterday with enticing a minor to engage in illicit sexual conduct, manufacturing child pornography, transferring obscene materials to a minor, distribution of child pornography, receipt of child pornography, and possession of a collection of images and videos of children being sexually abused and in sexually explicit positions on various dates in 2015 and 2016. The charges involve Jamieson and Brown’s sexual abuse of the minor child on multiple occasions over more than 18 months, and their photographing, videotaping, and distributing images and videos of the abuse. Brown is also charged with taking sexually explicit photos of a second victim, an infant girl. Lastly, the indictment also charges Jamieson and Brown with maintaining collections of sexually explicit images of children taken from the Internet.

 

Defendant Jamieson was transported from Chester County Prison today, where he had been incarcerated on local charges for his sexual abuse of the minor child. His initial appearance was held before the Honorable Elizabeth T. Hey, Magistrate Judge in the Eastern District of Pennsylvania. He was detained in federal custody until Tuesday, March 7, 2017, when Jamieson is listed for arraignment and a detention hearing.

 

If convicted, both defendants face a maximum sentence of life imprisonment, which includes a 15-year mandatory minimum term of incarceration, and five years up to a lifetime of supervised release. Jamieson also faces a $5,750,000 fine and a mandatory special assessment of $110,100, and Brown faces a $4,750,000 fine and a mandatory special assessment of $90,100.

 

The case was investigated by the Willistown Police Department, the Chester County District Attorney’s Office Criminal Investigation Division, and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michelle Rotella.

 

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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.

 

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

innocent unless and until proven guilty.

Louis D. Lappen, Acting United States Attorney, announced the unsealing of a Forty-Two count indictment issued against Lawrence Jamieson, 57, of Malvern, PA, and John Brown, 25, of Norristown, PA. The pair was charged yesterday with enticing a minor to engage in illicit sexual conduct, manufacturing child pornography, transferring obscene materials to a minor, distribution of child pornography, receipt of child pornography, and possession of a collection of images and videos of children being sexually abused and in sexually explicit positions on various dates in 2015 and 2016. The charges involve Jamieson and Brown’s sexual abuse of the minor child on multiple occasions over more than 18 months, and their photographing, videotaping, and distributing images and videos of the abuse. Brown is also charged with taking sexually explicit photos of a second victim, an infant girl. Lastly, the indictment also charges Jamieson and Brown with maintaining collections of sexually explicit images of children taken from the Internet.

Defendants Jamieson and Brown were transported from Chester County Prison where they were incarcerated on local charges for their sexual abuse of the minor child for their initial appearance in Magistrate Court in the Eastern District of Pennsylvania today.

 

If convicted, both defendants face a maximum sentence of life imprisonment, which includes a 15-year mandatory minimum term of incarceration, and five years up to a lifetime of supervised release. Jamieson also faces a $5,750,000 fine and a mandatory special assessment of $110,100, and Brown faces a $4,750,000 fine and a mandatory special assessment of $90,100.

 

The case was investigated by the Willistown Police Department, the Chester County District Attorney’s Office Criminal Investigation Division and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michelle Rotella.

 

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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.

 

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

John Peck, 51 years old of Philadelphia, Pennsylvania, was charged today by Information with one count of bank robbery, announced Acting United States Attorney Louis D. Lappen. The defendant is alleged to have robbed Branch Banking and Trust Bank (BB&T), located at 1635 Market Street in the City of Philadelphia, in the Eastern District of Pennsylvania on January 30, 2017. The defendant threatened violence against an employee of BB&T Bank with a demand note, while unlawfully taking $566 in United States currency from the bank.

 

If convicted on the bank robbery, defendant PECK faces a maximum possible sentence of 20 years imprisonment, a 3-year period of supervised release, a $250,000 fine, and a $100 special assessment and restitution in the amount of $566.

 

The case was investigated by the Federal Bureau of Investigation, Philadelphia Division, and the City of Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.

Gerald Garrett, 58, of Philadelphia, Pennsylvania was charged today by Information with the interstate transportation of stolen property in connection with the theft from the Muhammad Ali Center in Louisville, Kentucky of a signed LeRoy Neiman print of Muhammad Ali, announced Acting United States Attorney Louis D. Lappen.

 

If convicted the defendant faces a maximum possible sentence of 10 years imprisonment.

 

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney K.T. Newton.

 

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 CH2M Hill, Inc. (“CH2M”) resolving civil claims concerning CH2M’s improper billing under a Joint Venture Project Management Oversight Agreement (“PMO”) with Amtrak. To resolve the government’s civil claims against it, CH2M has agreed to pay the United States $1,500,000.00 pursuant to the settlement agreement.

CH2M and its joint venture partner performed project management functions on several Amtrak construction projects throughout the eastern United States. The PMO contract required that CH2M bill actual labor and overhead rates for the employees working the various projects. The United States contends that it has certain civil claims against CH2M arising from CH2M’s 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; b) billing employees of the lower overhead related company CH2M HILL Constructors, Inc. (“CCI”) as if they were employees of the higher overhead CH2M; and c) billing overhead rates of field employees that did not match the actual overhead rates of field employees.

The case arose when an audit of CH2M’s billing showed discrepancies. The case was investigated by Amtrak and the Department of Transportation’s Offices of Inspector General. For the United States Attorney’s Office for the Eastern District of Pennsylvania, this investigation and settlement was handled by Assistant United States Attorney Colin M. Cherico.

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

PHILADELPHIA – Two indictments[1] were unsealed today charging 24 people in violent drug trafficking groups that had operated out of the Norman Blumberg Apartment Complex, a public housing facility in Philadelphia, announced Acting United States Attorney Louis D. Lappen. The first indictment (Criminal No. 17-71) charges Edward Stinson, 27, Emmett Perkins, 29, Rondell Holloway, 27, Jamillah Bellamy, 35, Debra Baylor, 28, Jerry Lawrence, 27, Germel Perkins, 24, Carl Stinson, 21, Imere Stinson, 22, Daquian Brown, 22, Reginald Copper, 55, Terrance Jackson, 47, and Stephen Dawkins, Sr., 52, all of Philadelphia, with conspiracy to distribute 280 grams or more of crack cocaine, distribution of crack cocaine within 1,000 feet of public housing (a drug-free zone), and related crimes in 86 separate counts. The second indictment (Criminal No. 17-72) charges Juan Jarmon, 30, Damon Edwards, 31, Donta Edwards, 28, Raheen Butler, 33, Michael Ferrell, 25, Dottie Good, 30, Taft Harris, Jr., 27, Steven Thompson, 34, Derek Fernandes, 58, Anthony Staggers, 34, and Gene Wilson, Jr., 40, all of Philadelphia, as well as Edward Stinson and Dawkins, with conspiracy to distribute 280 grams or more of crack cocaine, distribution of crack cocaine within 1,000 feet of public housing (a drug-free zone), and related crimes in 48 separate counts.

It is alleged that members of these drug trafficking groups sold crack cocaine 24 hours a day, 7 days a week, in and around the public housing facility, employing a large network of supervisors, shift sellers, and lookouts, including juveniles. Members of these groups allegedly supplied millions of dollars of crack cocaine in the alleys, hallways, and residences of this public housing facility and to the streets of this neighborhood. It is further alleged that members of these groups used and carried firearms, robbed rival drug dealers, and used intimidation, threats, and violence to further the interests of the groups. For example, the second indictment (Criminal No. 17-72) alleges that when one female resident told others that the group sold drugs, Jarmon threatened her and then physically assaulted her, allowing the group to continue selling crack cocaine.

“These indictments charge the defendants with running large-scale, violent drug trafficking groups in a public housing facility that provided housing to low-income residents and families,” said Lappen. “Individuals who engage in drug trafficking, particularly those who prey on the financial weakness and vulnerability of persons, such as drug users and addicts, juveniles, and those living in poverty, should know that they will be prosecuted and held accountable for their crimes. We will continue to commit the federal resources necessary to combat these drug trafficking groups and give the many good residents in these areas an opportunity to reclaim their neighborhoods.”

“For years, this organization has maintained a stranglehold on the Blumberg Apartments complex and surrounding neighborhoods,” said FBI Special Agent in Charge Michael Harpster. “They’ve used intimidation and violence to maintain control of that area. The FBI and our law enforcement partners are determined to bring drug traffickers to justice, for the crimes committed and incalculable damage done to our communities.”

“These defendants terrorized the residents of the Norman Blumberg Apartment complex with their drug trafficking activities alleged in these indictments as well as the violence associated with their illegal trade,” said Gary Tuggle, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA, working with its law enforcement partners such as the FBI, PPD, Philadelphia Housing Authority Police Department, and the Philadelphia District Attorney’s Office will remain vigilant in pursuing cases against drug trafficking organizations that seek to hold residents of public housing communities hostage with their criminal activities.”

According to the indictments, Edward Stinson was a leader of both drug trafficking groups and conducted drug trafficking activities from both inside and outside of prison. As charged in the first indictment (Criminal No. 17-71), Edward Stinson and Emmett Perkins controlled drug sales in various areas of the public housing facility from 2010 to 2015. As charged in the second indictment (Criminal No. 17-72), Jarmon, Damon Edwards, and Edward Stinson controlled drug sales in various areas of the public housing facility from 2012 to 2014. These leaders allegedly obtained bulk crack and cocaine, cooked and packaged crack cocaine into bundles, hired, fired, and supervised shift sellers and lookouts, levied taxes on members and customers, and provided protection from other drug trafficking groups. It is alleged that the shift sellers were the daily workers employed by the leaders to sell crack cocaine in the locations controlled by the groups, while the lookouts assisted other members of the groups by alerting them to the presence of law enforcement and directing customers to the shift sellers.

If convicted of all charges, each defendant faces a maximum possible sentence of life in prison and a mandatory minimum of 10 years in prison.

This case was investigated by the United States Attorney’s Office, Federal Bureau of Investigation, and Drug Enforcement Administration in collaboration with the Philadelphia Police Department, the Philadelphia District Attorney’s Office and the Philadelphia Housing Authority Police. It is being prosecuted by Assistant United States Attorneys Jerome Maiatico and Katayoun Copeland.

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

Stephen Arellano, 59 of Philadelphia, PA was charged yesterday by Indictment with one count of bank robbery, announced Acting United States Louis D. Lappen. The indictment charges that the defendant robbed the Republic Bank, at 1601 Market Street in Philadelphia, on November 16, 2016. Arellano stole approximately $860 in U.S. currency from the victim teller.

If convicted the defendant faces a maximum possible sentence of 20 years in prison, a $250,000 fine, three years’ supervised release, and a $100 special assessment.

 

The case was investigated by Federal Bureau of Investigation, and the Philadelphia Police Department, and has been assigned to Assistant United States Attorney Eric A. Boden.

 

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

innocent unless and until proven guilty.

Isiah Heyward, 24, of Sicklerville, NJ., was charged today by indictment with assault on a federal officer, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about December 10, 2016, Heyward forcibly assaulted, resisted, opposed, impeded, intimidated and interfered with a Correctional Officer of the Federal Bureau of Prisons while the officer was engaged in his official duties.

If convicted the defendant faces a maximum sentence of 8 years’ imprisonment.

The case was investigated by the Federal Bureau of Investigations 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.

Manuel Antonio Nunez-Ortega, a/k/a “Julio Ricardo Fratichelli-Hernandez,” of Allentown, 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 December 6, 2016, Nunez-Ortega, 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 September 20, 2012.

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 Attorney Sarah T. Damiani.

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

PHILADELPHIA, PA – The United States has filed a lawsuit to stop Philadelphia retail store J & B Poultry Market, Inc., and its president Johnny Wong, from selling chickens that are improperly labeled, and stored under insanitary conditions whereby they may have been rendered injurious to health. Acting United States Attorney Louis D. Lappen today announced the filing of the civil Complaint in federal district court.

 

The Poultry Products Inspection Act prohibits companies and individuals from selling “misbranded” or “adulterated” poultry. The Complaint alleges that United States Department of Agriculture (“USDA”) inspections of the retail store establish that chickens stored by the defendants were misbranded because they lacked safe handling instructions and other information required by law, and were adulterated because they were held under unacceptable conditions including in the back of a pick-up truck outside, and at ambient temperatures in the store as high as 80 degrees.

 

The United States seeks a permanent injunction to prevent defendants from further selling chickens that are improperly labeled and held under insanitary conditions.

 

This case is being handled by Assistant United States Attorney Stacey L. B. Smith. Assistance is being provided by Lauren Axley, USDA Attorney Advisor.

 

 

Rodney Cossari, of Reading and Shamokin, Pennsylvania, was charged by Indictment with two counts of being a felon in possession of firearms and ammunition, announced Acting United States Attorney Louis D. Lappen.

According to the Indictment, Cossari possessed the following firearms and ammunition: a Jennings, caliber .22 long rifle, Model J-22 pistol, bearing serial number 339961; a Tanfoglio, caliber 9mm Luger, Model BTA90 pistol, bearing serial number G24223; an IMI, caliber 9mm Luger, Model UZI-A carbine rifle, bearing serial number SA17418; an Harrington & Richardson, caliber .32 Smith & Wesson, Model 732 revolver, bearing serial number AL14647; a Smith & Wesson, caliber .38 Smith & Wesson Special, Model 10-4 revolver, bearing serial number C587826; a Bushmaster model M4A3 rifle, serial number BFI49077, fitted with a Trijicon model TA31F ACOG scope, serial number 00638596; a Colt model AR15A2 rifle, serial number SP222848; and, two fifty round boxes of CCI brand Quiet .22LR caliber ammunition.

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

 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and is being prosecuted by Assistant United States Attorney Lesley S. Bonney.

 

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

Today, a federal judge sentenced Albert Fisher, 78 of Quakertown to 36 Months in prison for his role in conspiring to defraud fraternities, sororities and fraternity alumni associations at Lehigh University, announced Acting United States Attorney Louis L. Lappen. In addition, the Honorable Joseph F. Leeson Jr., United States District Judge, ordered the defendant to serve 3 years of supervised release upon release from prison, $2,470,247.52 restitution to victims, $205,000 restitution to Internal Revenue Service, as well as a $700 special assessment.

Fisher and Person #1 operated Fraternity Management Association (“FMA”), located in Bethlehem, PA, and created a fictitious consulting company, “Fisher and Associates,” which had FMA as its sole client. During the period charged, Person #1 was the Executive Director of FMA while Fisher was employed by FMA as both a full-time employee and as an independent contractor for Fisher and Associates. According to the indictment, between 2009 and 2013, Fisher and FMA’s Executive Director conspired to take money, as payment for future services, that was intended to pay for the operations and upkeep of the fraternities and sororities which included food services and the financial management of expenses. Instead of paying for future services, Fisher and the Executive Director misappropriated at least $1,461,777.96 in funds from FMA and the victim fraternities which he and the Executive Director used for their own personal purposes, including purchases of goods and services, vacation expenses, home furnishings, and designer clothing. Fisher allegedly lied to the victims about the money that was entrusted to FMA. When FMA ceased operations during the Spring of 2014, Fisher and the Executive Director caused an additional $990,157.41 in expenses for the fraternities, sororities and other victims, including Lehigh University, when the victims had to pay for operations and upkeep of the fraternities.

 

Fisher filed tax returns for tax years 2009 to 2013 which failed to report $614,398 in income, which included the defendant’s personal expenses that were paid by FMA and consulting fees authorized by the Executive Director and paid on behalf of FMA.

 

The case was investigated by Internal Revenue Service Criminal Investigations, FBI Allentown Resident Agency and the Bethlehem Police Department. It is being prosecuted by Assistant United States Attorney John Gallagher.

 

PHILADELPHIA – Dr. Alan Summers, 78, of Ambler, PA, pleaded guilty to an indictment charging him in a scheme to sell commonly abused prescription drugs in exchange for cash payments. Dr. Summers pleaded guilty to conspiracy to distribute controlled substances, distribution of controlled substances, health care fraud, and money laundering, and was announced by Acting United States Attorney Louis D. Lappen, Drug Enforcement Administration Special Agent-in-Charge Gary Tuggle, and Special Agent-in-Charge Nick DiGiulio with Health and Human Services Office of Inspector General.

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

 

“We have a public health crisis in this county involving prescription drug abuse that is exacerbated by doctors like Alan Summers,” said Lappen. “Every doctor who abandons his or her ethics to engage in the prescription-for-pay culture is breaking the law. They need to ask themselves whether it is worth the money to put people in danger, to risk the loss of their medical licenses, and to lose their freedom. Our office will continue to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.”

 

“The charges that Dr. Summers have plead to are serious and the penalties for such crimes are severe. Doctors take an oath to uphold specific ethical and medical standards; Dr. Summers failed to maintain those standards when he made the decision to engage in the criminal distribution of controlled substances,” said Gary Tuggle, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Division. “We are in the midst of the worst drug epidemic in our country’s history -- rogue doctors play a key role in the illegal diversion of controlled substances that all too often leads to abuse and heroin use.”

 

“Doctors who enable addicts betray their profession,” said DiGiulio. “In this case the defendants illegally prescribed dangerous controlled drugs and caused government health care programs to pay the fraudulent bills, while the drugs were sold on the streets. We will continue to work with our partners to dismantle dangerous pill mills, protect government funds, and keep the public safe.”

 

Sentencing has been set for May 22, 2017.

 

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

PHILADELPHIA – Today, a federal judge sentenced Patrick Treacy, a/k/a “Redneck” to 20 years in prison for his role in a prescription pill mill that trafficked oxycodone and other dangerous and addictive opioids. Treacy was also ordered to serve a concurrent sentence of 10 years in prions for illegally possessing a firearm charged separately. In addition, the Honorable Nitza I. Quiñones Alejandro, United States District Judge, ordered the defendant to serve three years of supervised release upon release from prison, and pay a special assessment of $200, as well as entering a judgment of forfeiture.

On July 14, 2015, a grand jury in Philadelphia charged Treacy, along William O’Brien, a former doctor of osteopathic medicine, and eight codefendants with conspiring to distribute controlled substances. Treacy was a member of the Pagans Motorcycle Club (“Pagans”), an outlaw biker gang known for violence and drug dealing. O’Brien worked together with the Pagans and their associates, to operate a “pill mill” out of his medical offices. O’Brien wrote fraudulent prescriptions for oxycodone and other drugs, while the Pagans and their associates recruited “pseudo-patients” to buy the fraudulent prescriptions. O’Brien charged $250 cash for the first appointment to obtain prescriptions for controlled substances and $200 cash for each subsequent visit. Oxycodone (30 mg) was in high demand by drug dealers who could sell each pill on the street for $25 to $30. O’Brien sold prescriptions for these dangerous and addictive drugs to hundreds of “pseudo-patients.” After filling the prescriptions, the Pagans and their associates resold the pills on the street. The investigation showed that from March 2012 to January 2015, more than 700,000 pills containing oxycodone and other Schedule II controlled substances were distributed by members of the conspiracy.

On October 5, 2016, O’Brien, who was convicted by a jury in summer 2016, was sentenced to 30 years in prison. On October 16, 2016, codefendant Joseph Mitchell, another Pagans’ member, was sentenced to 9 nine years’ imprisonment. Other codefendants await sentencing.

The case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration Office of Criminal Investigations, and the Department of Health and Human Services Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary Beth Leahy and David E. Troyer.

Juan Rodriguez, 36, of Willow Grove, Pennsylvania, was charged today by Information[1] with one count of conspiracy to commit fraud and misuse visas and one count of fraud and misuse of visas, announced Acting United States Attorney Louis D. Lappen. The information alleges that in or about 2012 to on or about September 2014, Rodriguez, a former Supervisor at Asplundh Tree Experts, Inc., knowingly accepted and received false identification from hired employees. This acceptance of false documentation facilitated the re-hiring of Asplundh Tree Experts, Inc. employees who were determined previously by Homeland Security Investigations to be aliens unauthorized to work in the United States.

 

If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment, a $500,000 fine, up to three years supervised release, and a $200 special assessment.

 

The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.

 

 

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

Larry Gauger, 45, of Saint Davids, Pennsylvania, was charged today by Information[1] with one count of conspiracy to commit fraud and misuse visas and one count of fraud and misuse of visas, announced Acting United States Attorney Louis D. Lappen. The information alleges that in or about 2010 to on or about December 2014, Gauger, a Regional Manager at Asplundh Tree Experts, Inc., directed his personnel to knowingly accept false identification from hired employees. This acceptance of false documentation facilitated the re-hiring of Asplundh Tree Experts, Inc. employees who were determined previously by Homeland Security Investigations to be aliens unauthorized to work in the United States.

 

If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment, a $500,000 fine, up to three years supervised release, and a $200 special assessment.

 

The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.

 

 

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

Jude Solis, 50, of Pottstown, Pennsylvania, was charged today by Information[1] with one count of conspiracy to commit fraud and misuse visas and one count of fraud and misuse of visas, announced Acting United States Attorney Louis D. Lappen. The information alleges that in or about 2010 to on or about December 2014, Solis, a Supervisor at Asplundh Tree Experts, Inc., knowingly accepted and received false identification from hired employees. This acceptance of false documentation facilitated the re-hiring of Asplundh Tree Experts, Inc. employees who were determined previously by Homeland Security Investigations to be aliens unauthorized to work in the United States.

If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment, a $500,000 fine, up to three years supervised release, and a $200 special assessment.

The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.

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

Bertin Barcenas-Jaimes, 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 January 12, 2017, Barcenas-Jaimes, 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 28, 2007 and July 23, 2013.

 

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 Attorney Denise S. Wolf.

 

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

Steven Hameed, 57, of Chester, Pennsylvania, was sentenced today to 97 months in prison for his multi-year scheme to steal government homes and file false tax forms against various police officers and government officials, announced Acting United States Attorney Louis D. Lappen. Hameed’s co-conspirators, Darnell Young, 49, and Damond Palmer, 42, were sentenced in October 2016 to 40 months imprisonment, and 1 day in prison, respectively, for their crimes. All three were charged in December 2016 with one count of conspiracy to commit offenses against the United States, one count of bank fraud, and one count of corrupt interference with Internal Revenue laws. Hameed was also charged with three counts of conversion of government property, and Young was also charged with one count of conversion of government property. Hameed and Young were also charged with one count of creating fictitious obligations.

defendants, who pled guilty in June 2016, filed false land deeds with the Delaware County Recorder of Deeds Office in an attempt to claim ownership of homes owned by the government or by banks, and then to live in the homes, or rent/sell the homes to unsuspecting persons, for their own financial gain. defendants, self-proclaimed “sovereign citizens,” also filed hundreds of false tax forms against police officers, judges, and other government employees in an attempt to harass and intimidate them in the course of their official duties. Hameed and Young were also convicted of creating a false financial bond in an attempt to purchase property. In addition to the prison term, the Honorable Timothy J. Savage, United States District Judge, also ordered Hameed to pay full restitution to all victims.

The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Treasury Inspector General for Tax Administration, the Federal Housing Finance Agency – Office of Inspector General, the Federal Deposit Insurance Corporation – Office of Inspector General, the Social Security Administration - Office of Inspector General, the Philadelphia Police Department, the Delaware County Detectives, the Aston Police Department, and the Upper Darby Police Department. The case is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.

Two Philadelphia, Pennsylvania men pleaded guilty to conspiring to file federal tax returns using stolen IDs, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.

 

According to the indictment and information presented to the court, Moise Olivier, 27, and Hans Pierre, 28, opened bank accounts in the names of “Moise Olivier Tax Service” and “Hans Pierre Tax Service” even though neither had a tax service. Using stolen personal ID information, members of the conspiracy electronically filed returns seeking fraudulent refunds and directed that the refunds be deposited by the Internal Revenue Service (IRS) into the Moise Olivier and Hans Pierre Tax Service bank accounts. Olivier and Pierre withdrew cash from the accounts to provide to other co-conspirators. Olivier admitted to causing a tax loss of $181,805.10. Pierre admitted to causing a tax loss of $95,157.41.

 

Olivier is scheduled to be sentenced on May 2, and Pierre, who pleaded guilty on Feb. 8, is scheduled to be sentenced on April 27, before U.S. District Court Judge John R. Padova. Both face statutory maximum sentences of 10 years in prison, a period of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of Internal Revenue Service-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 are prosecuting the case.

 

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

Mitesh Patel, 36, of Media, Pennsylvania, was charged today by Superseding Indictment with conspiracy to distribute oxycodone, money laundering conspiracy, and filing false tax returns, announced Acting United States Attorney Louis D. Lappen.

 

According to the Superseding Indictment, from 2008 through June 2013, Patel was a pharmacist, registered in Pennsylvania, who conspired with others to illegally distribute oxycodone, a Schedule II controlled substance. From 2009 through 2013, Patel owned three pharmacies, Dava Pharmacy, Dava #2 Pharmacy, and Drexel Hill Pharmacy, that he used to order sums of oxycodone which he then provided to his coconspirators for distribution. Patel provided sums of the ordered oxycodone to his coconspirators for distribution without prescription and in exchange for money. Patel then used various bank accounts associated with his pharmacies to launder the drug proceeds in a manner intended to conceal the unlawful origin of the money. Additionally, Patel filed false tax returns for the tax years of 2010, 2011, and 2012, for not reporting his actual taxable income.

 

If convicted the defendant faces a maximum of 49 years in prison, a special assessment of $500, a lifetime of supervised release, and a potential fine. The government is also seeking forfeiture of the proceeds of Patel’s unlawful activities including, but not limited to, a sum of $2,733,300.00.

 

The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Philadelphia Police Department as part of the Organized Crime Drug Enforcement Task Force program. The case is being prosecuted by Assistant United States Attorneys Jonathan B. Ortiz and David E. Troyer.

 

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

PHILADELPHIA – Today, a federal judge sentenced Stephen A. Monaco, a former podiatrist, to 97 months’ imprisonment for defrauding Medicare, Medicaid and private victim insurance companies, announced Acting United States Attorney Louis D. Lappen. Defendant Monaco pleaded guilty to health care fraud on August 23, 2016, and surrendered his DEA license.

 

Between January 2008 and October 31, 2014, the defendant, who operated A Foot Above Podiatry in Havertown, PA, submitted fraudulent bills to Medicare for at least approximately $5 million dollars for certain podiatric procedures that were not performed at all, and other procedures that were not medically necessary. In some cases, Monaco provided “pill seeking” patients with prescriptions for oxycodone, a dangerous and addictive opioid medication, in exchange for payments from health insurance providers. Individuals seeking oxycodone from Monaco received painful injections in their toes and feet, for which Monaco submitted fraudulent claims to the patients’ insurance providers. Monaco administered these medically unnecessary injections to create the appearance of legitimacy for his prescription of opioids.

 

In addition to the prison term, The Honorable Juan R. Sánchez ordered the defendant to serve three years of supervised release upon release from prison, and to pay restitution in the amount of $4,960,295. The defendant was also ordered to forfeit assets traceable to the offense.

 

The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Office of Personnel Management Office of the Inspector General, the United States Railroad Retirement Board Office of Inspector General, and the Pennsylvania Office of Attorney General Medicaid Fraud Control Section. The case is being prosecuted by Assistant United States Attorneys M. Beth Leahy and Jennifer B. Jordan.

Raheem Pleasant of Philadelphia, PA, was charged today by Indictment with three counts of bank robbery in connection with a string of robberies that occurred in the Philadelphia area in December and January, announced Acting United States Attorney Louis D. Lappen. The Indictment alleges that on three separate occasions between December 17, 2016 and January 2, 2017, Pleasant entered and robbed branch locations of TD Bank, an FDIC-insured institution, by use of force and violence, and by intimidation.

 

If convicted the defendant faces a maximum sentence of 60 years in prison.

 

The case was investigated by the Federal Bureau of Investigation’s Violent Crimes Task Force and local law enforcement agencies, and is being prosecuted by Assistant United States Attorney Sean P. McDonnell.

 

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

 

 

A superseding indictment was returned today against four people charged with engaging in the sex trafficking of minors in Philadelphia announced Acting United States Attorney Louis D. Lappen. Charged in the superseding indictment are: Collin Cowell (26), a/k/a “Tyson,” Rocio Ramos (38), a/k/a “Delci,” Idalis Mendez (20), a/k/a “Dali,” and Robert Broaddus (23), of Philadelphia, Pennsylvania.

 

According to the indictment, the defendants are charged with sex trafficking 3 Minors. Mendez was further charged with one count of production of child pornography. Cowell and Mendez were also charged with one count of distributing child pornography.

 

If convicted, the defendants face the following statutory maximum possible sentences: Cowell, life imprisonment with a 10-year mandatory minimum term of imprisonment; Ramos, life imprisonment with a 10-year mandatory minimum term of imprisonment; Mendez, life imprisonment with a 15-year mandatory minimum term of imprisonment; and Broaddus, life imprisonment with a 10-year mandatory minimum term of imprisonment, plus possible fines, restitution, and special assessments.

 

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

 

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

Joseph White, 48, of Newtown Pennsylvania was sentenced today to a 2-year term of imprisonment and ordered to pay $1.2 million in restitution by United States District Court Judge Gerald A. McHugh. The sentence arose from Joseph White’s guilty plea to a Criminal Information which charged him with willfully attempting to evade the payment of taxes announced Acting United States Attorney Louis D. Lappen.

 

According to the Criminal Information, Joseph White was the owner of PCE Electric Corporation and Thomas Edison Electric Corporation, located in Southampton, Pennsylvania from 2000 through 2011. The Criminal Information further charged that Joseph White diverted funds from his two corporations which he used for personal consumption without accounting, for tax purposes, for the income that he had diverted from his two corporations.

 

In addition to engaging in a corporate diversion scheme, the Criminal Information further charged that Joseph White registered the title to multiple vehicles that he purchased in the name of HAPPE, a partnership that he formed and registered with the Nevada Secretary of State. In addition to imposing a prison sentence up Joseph White, Judge McHugh ordered White to attend Gamblers Anonymous after he is released from prison while serving a period of supervised release.

 

“This sentence should send a clear message; schemes to evade the payment of taxes are a violation of the Federal Tax laws and the consequences of such schemes can and will result in jail time.” said Gregory Floyd, Acting Special Agent in Charge IRS Criminal Investigation, Philadelphia Field Office.

 

The case was investigated by the Internal Revenue Service’s Criminal Investigation Division Philadelphia Field and was prosecuted by Assistant United States Attorney Floyd J. Miller

Kenneth Duffy, 64, of Philadelphia, Pennsylvania, was sentenced to a year and a day in prison today, announced Acting United States Attorney Louis D. Lappen. In 2016, the defendant pled guilty to one count of theft of government funds, for stealing Social Security benefits intended for his deceased mother for nearly 20 years. After defendant Duffy’s mother died in January 1997, he continued to take her retirement benefits until his fraud was discovered in the summer of 2016. During that time, he kept his deceased mother’s name on the bank account where the funds were deposited, and continued to pay bills in his deceased mother’s name. When contacted by the Social Security Administration, which was trying to verify whether or not the decedent was alive and receiving her benefits, the defendant lied, stating that his mother was alive and living with his sister, in an effort to mislead the agency.

 

In addition to the prison sentence, the Honorable Harvey Bartle III ordered full restitution to the Social Security Administration of $235,995, and three years of supervised release upon completion of the prison sentence.

 

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

PHILADELPHIA – David Thomas, a/k/a “David Thompson”, 23, of Philadelphia, PA, was sentenced today by U.S. District Court Judge Gerald A. McHugh to 192 months in prison for his role orchestrating and executing four bank robberies over a two-month period from May through July 2015. The Court further ordered Thomas to pay restitution in the amount of $48,408, representing the aggregate of funds stolen during the robberies. On May 14, 2015, Thomas robbed Wells Fargo, located at 52 North Bryn Mawr Avenue, Bryn Mawr, PA. On June 2, 2015, Thomas and others robbed this same Wells Fargo branch. On June 30, 2015, Thomas and others robbed TD Bank, located at 8600 Germantown Avenue, Philadelphia. Finally, on July 15, 2015, Thomas, armed with a loaded semi-automatic pistol and assisted by others, robbed TD Bank, located at 5501 Ridge Avenue, Philadelphia.

 

The case was investigated by the Federal Bureau of Investigation and the Philadelphia and Lower Merion Police Departments. It is being prosecuted by Assistant United States Attorney Eric A. Boden.

Drew Alia, 40, of Philadelphia, PA pled guilty today to an Information which charged him with willfully failing to file federal income tax returns for tax years 2010 through 2013 before United States District Court Judge Paul Diamond, announced Acting United States Attorney Louis D. Lappen.

 

Alia, an attorney, according to the Information, operated a home mortgage recuse service which was designed to assist home owners who were facing foreclosure to secure financing in order to prevent a home mortgage foreclosure. The Information alleged that Alia realized gross income of $28,000 in 2010; $107,000 in 2011, $144,000 in 2012, and $71,000 in 2013 all of which he failed to report on federal income tax returns that he was required to file in each of the aforementioned years.

 

“As we begin the 2017 filing season, American taxpayers are reminded that the term voluntary compliance means that each of us is responsible for filing a tax return when required and for paying the correct amount of tax," said Internal Revenue Service Criminal Investigation Acting SAC Gregory Floyd. "That responsibility should not be taken lightly. Mr. Alia chose to ignore his duty to file and pay taxes; thus he must be held accountable for his actions."

 

Alia faces a maximum of 4 years of imprisonment, a fine of up to $400,000 and 1 year of supervised release when he sentenced.

 

The case was investigated by Internal Revenue Service’s Criminal Investigation Division Philadelphia Field Office and is being prosecuted by Assistant United States Attorney Floyd J. Miller.

 

WASHINGTON – A Pennsylvania man pleaded guilty today to conspiring to defraud the United States and to aiding and abetting the filing of false claims for tax refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.

 

According to the indictment and information presented to the court, Shamback Francois, 27, engaged in a scheme to fraudulently obtain income tax refunds through the filing of false returns using stolen personal identifying information. At least one of Francois’s co-conspirators electronically filed the false tax returns, which directed that the fraudulently claimed refunds be deposited into a bank account in the name of Shamback Tax. Francois did not have a tax preparation service, but had opened up the account in order to facilitate the crime. Francois withdrew funds from this account to pay his co-conspirators. As part of the plea, Francois admitted to causing a loss of $425,841.14.

 

Francois is scheduled to be sentenced on April 18 before U.S. District Court Judge John R. Padova. Francois faces a statutory maximum sentence of 10 years in prison for the conspiracy count and a statutory maximum sentence of five years in prison for the false claims count. He also faces a period of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of Internal Revenue Service-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 are prosecuting the case.

 

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

 

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Abdulai Kamara, 47, of Folsom, Pennsylvania, was charged by Information with one count of theft of government funds, announced Acting United States Attorney Louis D. Lappen. According to the Information[1], the defendant received Social Security benefits intended for his deceased paramour, after her death in May 2012 until June 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $47,992.30.

 

If convicted, the defendant faces a substantial period of incarceration, a 3‑year period of supervised release, restitution to the government of $47,992.30, a fine of up to $250,000, and a $100 special assessment.

 

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

 

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

PHILADELPHIA – Barry R. Bekkedam, 49, of Hobe Sound, FL, was sentenced today by U.S. District Court Judge C. Darnell Jones, II, to 11 months in prison and was ordered to pay a $100,000 fine for his role in a fraud conspiracy to obtain $13.5 million in public funds for NOVA Bank. On April 27, 2016, Bekkedam and co-defendant Brian Hartline were found guilty of conspiracy to defraud the United States, TARP fraud, and two counts of false statements to the federal government. Hartline had served as President and Chief Executive Officer of NOVA Bank and Bekkedam had served as Board Chairman. Their scheme involved the Troubled Asset Relief Program (TARP) and was devised to defraud the government of more than $13 million.

 

“Lending drives economic growth and law enforcement plays an important role in protecting banks’ ability to lend by removing criminals from their ranks,” said Christy Goldsmith Romero, Special Inspector General for TARP. “TARP is intended for healthy banks. NOVA was not a healthy bank. As NOVA’s founder, Bekkadam wielded enormous influence over the bank, allowing him to orchestrate a conspiracy with its CEO to cook the bank’s books to make it appear that the bank had healthy capital levels. SIGTARP stands united with the United States Attorney’s Office in combatting fraud in banks.”

 

Bekkedam and Hartline, with others, formed NOVA Bank in 2002. Bekkedam also owned and operated a financial advisory company, Ballamor Capital Management, and advised Ballamor clients to invest in NOVA. But in 2008, NOVA faced risk of failure because of bad loans and investments. In October 2008, NOVA Financial Holdings, Inc., of Berwyn, Penn., the parent company of NOVA Bank, applied for approximately $13.5 million through the U.S. Department of the Treasury Troubled Asset Relief Program. In June 2009, NOVA Bank was approved to receive the TARP funds on the condition that the bank raised $15 million in additional, private capital.

 

Bekkedam and Hartline devised a scheme to make NOVA bank appear more financially sound than it was – that new money was being invested in the bank. As part of the scheme, the defendants arranged for NOVA Bank to loan money to three individuals to transfer to NOVA’s parent company so it would appear as though the bank had new capital from an outside investor. In fact, the “new money” investment was the bank’s own money.

 

The bank ultimately did not receive TARP funds, and in October 2012, the bank failed and was closed by state and federal banking regulators.

 

The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service Criminal Investigations, the Federal Deposit Insurance Corporation Office of Inspector General, the Office of Inspector General of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. It is being prosecuted by Assistant United States Attorney David J. Ignall

A Pennsylvania man pleaded guilty today to conspiring to defraud the United States and to aiding and abetting the filing of false claims for tax refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.

 

According to the indictment and information presented to the court, Shamback Francois, 27, engaged in a scheme to fraudulently obtain income tax refunds through the filing of false returns using stolen personal identifying information. At least one of Francois’s co-conspirators electronically filed the false tax returns, which directed that the fraudulently claimed refunds be deposited into a bank account in the name of Shamback Tax Service. Francois did not have a tax preparation service, but had opened up the account in order to facilitate the crime. Francois withdrew funds from this account to pay his co-conspirators. As part of the plea, Francois admitted to causing a loss of $425,841.14.

 

Francois is scheduled to be sentenced on April 18 before U.S. District Court Judge John R. Padova. Francois faces a statutory maximum sentence of 10 years in prison for the conspiracy count and a statutory maximum sentence of five years in prison for the false claims count. He also faces a period of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of Internal Revenue Service-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 are prosecuting the case.

 

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

 

The United States announces that it has settled allegations under the False Claims Act with the University of Pennsylvania Health System (“UPHS”) for improperly billing Medicare for stent procedures two interventional cardiologists performed at Pennsylvania Hospital between 2008 and 2012. UPHS voluntarily disclosed the allegations to the U.S. Attorney’s Office and has agreed to pay $845,000 to resolve the matter. The cardiologists no longer work at Pennsylvania Hospital.

 

The government launched an investigation based on the UPHS voluntary disclosure. The investigation determined that UPHS submitted bills to Medicare for services provided by the cardiologists that the United States alleges were medically unnecessary, resulting in overpayments to UPHS. After it discovered the problem, UPHS cooperated with the government’s investigation, and implemented a new quality assurance plan for procedures performed in the Pennsylvania Hospital cardiac catheterization lab. In addition, UPHS notified potentially affected patients of its internal review of stent procedures and offered free evaluations by UPHS’ cardiologists. UPHS also voluntarily disclosed the allegations to state regulators.

 

This matter was investigated by the Office of the Inspector General of the Department of Health and Human Services, and by Auditor Dawn Wiggins and Healthcare Fraud Analyst Ray Uhlhorn of the U.S. Attorney’s Office. The case was handled by Assistant U.S. Attorney Susan R. Becker.

PHILADELPHIA - An indictment[1] was filed today charging William Peterman, Jr., formerly of Medford Lake, NJ and more recently of Beaufort, SC, with threatening to kill President Barack Obama. According to the indictment, on January 10, 2017, posted on his Facebook page that he “will kill” President Barack Obama.

 

With the increased use of various forms of social media comes increased online threats that vary in nature. Law enforcement agencies as a whole, take such online based threats seriously and they can easily evolve into federal criminal charges for those individuals making them. Threats against the President of the United States and others that the United States Secret Service is statutorily authorized to protect is the Secret Service’s number one investigative priority. “This case and the resulting indictment demonstrates the Secret Service’s proactive stance investigating threats against those we are sworn to protect,” said James Henry, Special Agent in Charge of the U.S. Secret Service Philadelphia Field Office. “When brought to our attention - whether in person, electronically or written, the Secret Service takes every threat very seriously.”

 

If convicted, Peterman faces a statutory maximum sentence of five years’ imprisonment, a possible $250,000 fine, a period of supervised release, and a $100 special assessment.

 

The case was investigated by the United States Secret Service, the Burlington County (NJ) Prosecutor’s Office, and the Mercer County (NJ) Sheriff’s Office and is being prosecuted by Assistant United States Attorney Anita Eve.

 

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

 

Two rare early 19th century notebooks, that had been taken more than ten years ago from the Stephen Girard Collection at Girard College, were returned to Girard College today by the Federal Bureau of Investigation and the United States Attorney’s Office, announced Acting United States Attorney Louis D. Lappen. These 1809 and 1811 notebooks are two of four account books that had been kept by H.J. Roberjot, Stephen Girard’s clerk and right-hand man, to document expenditures by Girard. At that time, Stephen Girard was the richest man in the United States.

Girard College President Clarence Armbrister has described the notebooks as painting a picture of the daily life of Stephen Girard, the founder of Girard College, particularly in terms of Girard’s generosity and charitable nature. According to President Armbrister, Girard’s best known act of philanthropy was the endowment of Girard College in his will in 1831. Girard College opened its doors on its 43-acre campus in Philadelphia, Pennsylvania in 1848 and has educated children for over 168 years. Today, Girard College is a five-day boarding school, grades 1 through 12, for students from families headed by a single parent or guardian and with limited financial resources. All accepted students receive full scholarships for the length of their enrollment at Girard College.

This case was investigated by the Federal Bureau of Investigation Art Crime Team and was handled by Assistant United States Attorney K.T. Newton.

Irvin Randall Newswanger, 48, of Lancaster, PA, was charged January 12, 2017, by Indictment1 with possession and distribution of child pornography announced Acting United States Attorney Louis D. Lappen.

If convicted the defendant faces a maximum possible sentence of 40 years’ imprisonment, with a mandatory minimum of 5 years imprisonment, lifetime supervised release, a $500,000 fine and a $200 special assessment.

 

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

 

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

 

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

Hyneith Harmon, 24, of Philadelphia, PA, was charged today by Indictment[1] with 2 counts of possession of a firearm by a convicted felon, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about November 3, 2015, Harmon, who has a prior felony conviction, possessed a Kimber .45 caliber pistol, and on December 12, 2015, he possessed a Colt .38 revolver.

 

If convicted the defendant faces a maximum of 20 years imprisonment.

 

The case was investigated by the Bureau of Alcohol Tobacco and Firearms, and is being prosecuted by Assistant United States Attorney Virgil B. Walker.

 

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

Philadelphia - Acting United States Attorney Louis D. Lappen today announced three indictments[1] that collectively charged postal carriers Steven C. Williams, 42, and Felicia Charleston, 35, with using their positions as United States postal carriers to distribute large quantities of marijuana to conspiring with Chester Wynter, 49, Barrington Russell, 44, Damion Parkes, 44, Gillion Watson, 32, Marvia Shirley, 32, Patrick Purrier, 38, and Anthony Washington, 27.

 

In each of the three indictments, Williams was charged with conspiring with members of marijuana organizations to commit bribery, bribery of a public official, and conspiring with the members of the marijuana organizations to distribute at least 100 kilograms of marijuana. According to the indictments, Williams was a postal carrier at the West Market Post Office in Philadelphia and was responsible for delivering United States Postal Services’ packages to addresses in West Philadelphia, which included 48 N. Hobart Street and other addresses in West Philadelphia. Williams allegedly used his position as a postal carrier to divert packages from the addressee to Wynter, Russell, Parkes, Purrier and Washington for the purposes of distributing the marijuana contained within the packages, in return for cash. In two of the three indictments, Charleston was similarly charged with conspiring with members of marijuana organizations to distribute at least 100 kilograms of marijuana. According to these indictments, Charleston also worked at the West Market Post Office in Philadelphia and was responsible for delivering United States Postal Services’ packages to addresses in West Philadelphia, but she left her postal route to divert packages from the addressee to Wynter, Russell, and Washington for the purposes of distributing the marijuana contained within the packages.

 

According to the indictments, once the packages were delivered to Wynter, Russell, Parkes, Watson, and Shirley at 48 N. Hobart Street, and to Purrier and Washington at various locations in West Philadelphia, these marijuana conspiracy members distributed the marijuana to their customers.

 

Based on the quantity of the marijuana involved, the defendants face the following sentences:

 

Williams – a statutory maximum sentence of life imprisonment, a mandatory minimum sentence of ten years’ imprisonment, and a $28,500,000 fine

 

Charleston – a statutory maximum sentence of life imprisonment, a mandatory minimum sentence of ten years’ imprisonment, and a $20,250,000 fine

 

Wynter and Russell – a statutory maximum sentence of life imprisonment, a mandatory minimum sentence of ten years’ imprisonment, and a $10,500,000 fine

 

Parkes - a statutory maximum sentence of life imprisonment, a mandatory minimum sentence of ten years’ imprisonment, and a $10,250,000 fine

 

Watson and Shirley - a statutory maximum sentence of life imprisonment, a mandatory minimum sentence of ten years’ imprisonment, and a $10,000,000 fine

 

Purrier - a statutory maximum sentence of 65 years’ imprisonment, a mandatory minimum sentence of five years’ imprisonment, and a $5,750,000 fine

 

Washington - a statutory maximum sentence of life imprisonment, a mandatory minimum sentence of ten years’ imprisonment, and a $12,500,000 fine.

 

 “This indictment is a great example of how our different law enforcement partners can combine resources to combat corruption within the federal government," said Acting United States Attorney Louis D. Lappen.  "The U.S. Attorney’s Office will continue to investigate and prosecute postal service and other federal employees who undermine the integrity of government operations through bribery and other unlawful conduct.”

 

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

 

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

 

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

 

Philadelphia - a federal jury in Philadelphia convicted Abdoulaye Diallo on all counts of an indictment charging him with defrauding the federal Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, and with conspiring to do so, announced Acting United States Attorney Louis D. Lappen. Diallo owned and operated the Brothers Food Market, a grocery store on Germantown Avenue near Venango Street in Philadelphia. The jury convicted Diallo of conspiring with another individual to buy SNAP benefits for cash from those who had SNAP benefit cards (also known as PA Access cards) between September 2011 and February 2015. The jury also found Diallo guilty of exchanging SNAP benefits for cash on five different dates during that period, each of which constituted wire fraud and SNAP benefit fraud. The amount of money charged to the SNAP Program varied from $300 to almost $600 for each transaction.

 

The case was tried before United States District Judge Cynthia M. Rufe. Judge Rufe will sentence the defendant at a later date. The court did not set a sentencing date.

 

Diallo’s convictions were on six counts of wire fraud, six counts of defrauding the SNAP Program, and one count of conspiracy to do so. Diallo faces a maximum sentence of 20 years on each wire fraud count, and five years imprisonment on each SNAP fraud count and on the one conspiracy count. The court could also impose a fine, order forfeiture and order that Diallo pay restitution.

 

The SNAP Program is administered by the Food and Nutrition Service of the United States Department of Agriculture. It is intended to provide funds to assist low income families in purchasing food.

 

The case was investigated by the Office of Inspector General, United States Department of Agriculture and by Homeland Security Investigations, with the assistance of the Philadelphia Police Department. The case was tried by Assistant United States Attorneys Floyd J. Miller and Albert S. Glenn.

An Indictment[1] was returned today charging Ansu Sanoe, 26, of Philadelphia, Pennsylvania, with 2 counts of bank fraud, announced Acting United States Attorney Louis D. Lappen.

 

The Indictment alleges that Sanoe and his co-schemers posed as other people using false identification documents, opened up false business bank accounts at TD Bank and Citizens Bank, made deposits of counterfeit checks into those bank accounts, wired funds between the accounts, and withdrew the funds before the banks realized that the checks were fraudulent.

 

Sanoe faces a maximum sentence of 60 years’ incarceration, a five-year period of supervised release, a fine of $2,000,000, and restitution of at least $125,000.

 

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

 

 

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

Morel Geronimo Bail, a/k/a “Ivan Antonio Velasquez-Vasquez,” of Quarryville, 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 December 14, 2016, Bail, 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 2, 2014.

 

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 Eric L. Gibson.

 

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

 

PHILADELPHIA - Modestine Gillette, a/k/a/ “Cookie,” 48, of Philadelphia was sentenced today to twelve months and one day imprisonment for carrying out three separate schemes that defrauded her former employer – the Internal Revenue Service (“IRS”). Gillette pleaded guilty on November 6, 2015.

Between October 2008 and March 2012, Gillette was employed on an as needed basis by the IRS as a Contact Representative. A Contact Representative provides administrative and technical assistance to individuals and businesses who wish to ask the IRS about their tax related questions. It is a violation of IRS regulations for an IRS employee to assist other persons in filing their taxes for compensation.

During her time of employment, Gillette arranged for the deposit of multiple tax refunds into a bank account that she controlled. Among the deposits to this account was a false federal income tax return in the name of a real person, identified here as JB. JB did not file a 2009 tax return because she was in and out of jail, homeless shelters, and rehabilitation centers, and therefore did not have any income to report. The return that Gillette filed in JB’s name falsely reported $9,975 in business income as a hair stylist, falsely claimed the maximum Earned Income Tax Credit of $3,043, and falsely sought a refund of $2,975. JB never saw that return, had no knowledge of it, and did not authorized it to be filed.

Gillette also prepared and filed federal tax returns for SH for 2009 and 2010. Both of those returns featured false and inflated refund requests. From the resulting 2009 refund Gillette kept for herself $3,836. Gillette kept the entirety of the 2010 refund. Other than a preparation fee of $400, SH was not aware that Gillette kept any of the refunds claimed in her name.

Gillette also filed a 2009 federal income tax return for RH. That return featured a false and inflated refund request. Gillette kept $1,000 out of the total refund. RH was not aware that these funds had been taken by Gillette.

Gillette prepared and filed a 2009 federal income tax return for VW. That tax return also included an inflated claim for a refund. Of the total refund, $1,400 was deposited into the account controlled by Gillette. VW did not authorize Gillette or anyone else to receive any portion of her tax refund.

Gillette prepared 2010 and 2011 federal income tax returns for KD. In both cases, the returns claimed false and inflated requests for refunds. Gillette kept $3,100 from the 2010 refund in KD’s name, and $1,000 from KD’s 2011 refund. KD did not authorize Gillette or anyone else to receive any portion of her tax refund. KD understood that Gillette was to receive only a fee of $50 as payment for preparing each return.

These false and fraudulent returns are summarized below:

    Claimed Refund Amount True Refund Owed Amount deposited into Victim account Amount Given to Victim Amount Kept by Gillette

1

SH 2009

$5,036.00

$630.00

$0.00

$600.00

$4,436.00

2

SB 2010

$1,933.00

$533.00

$0.00

$0.00

$1,933.00

3

JB 2009

$2,975.00[1]

$0.00

$0.00

$0.00

$0.00

4

RH 2009

$5,216.00

$706.00

$4,216.00

$0.00

$1,000.00

5

VW 2009

$6,616.00

$2,924.00

$5,216.00

$0.00

$1,400.00

6

KD 2010

$4,402.00

$904.00

$1,302.00

$0.00

$3,100.00

7

KD 2011

$4,054.00

$3,127.00

$3,054.00

$0.00

$1,000.00

           

$12,869.00

1 The IRS did not release the refund.

In addition, because she was a seasonal employee there were periods when Gillette was not working for the IRS. Despite the fact that she owned and operated a child daycare business, Gillette filed for and received unemployment benefits for the following time periods:

1. 9-1-09 to 2-15-11; and
2. 8-13-11 to 7-7-12; and 9-1-12 to 6-15-13.

As a result of this fraud, Gillette obtained unemployment benefits totaling approximately $46,322, to which she was not entitled.

Finally, for tax year 2011, Gillette filed a federal joint income tax return, in which she failed to report: (i) approximately $5,033.00 that she stole from S.H. and K.D., individuals for whom she prepared 2010 tax returns; (iii) about $35,138.00, that she received as income from the child care business; and (iii) about $3,929.54 that her spouse received as income from the child care business.

The case was investigated by the Treasury Inspector General for Tax Administration, the Department of Labor Office of Inspector General, and the Internal Revenue Service Criminal Investigations. It was prosecuted by Assistant United States Attorney Paul G. Shapiro.