Eastern District of Pennsylvania

Washington - The Justice Department announced today that Shire Pharmaceuticals LLC and other subsidiaries of Shire plc (Shire) will pay $350 million to settle federal and state False Claims Act allegations that Shire and the company it acquired in 2011, Advanced BioHealing (ABH), employed kickbacks and other unlawful methods to induce clinics and physicians to use or overuse its product “Dermagraft,” a bioengineered human skin substitute approved by the FDA for the treatment of diabetic foot ulcers. Shire plc is a multinational pharmaceutical firm headquartered in Ireland, with its United States operational headquarters in Lexington, Massachusetts. Shire sold the assets associated with Dermagraft in early 2014.

 

“This settlement represents the largest False Claims Act recovery by the United States in a kickback case involving a medical device,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Kickbacks by suppliers of healthcare goods and services cast a pall over the integrity of our health care system. Patients deserve the unfettered, independent judgment of their health care professionals.”

 

The settlement resolves allegations that Dermagraft salespersons unlawfully induced clinics and physicians with lavish dinners, drinks, entertainment and travel; medical equipment and supplies; unwarranted payments for purported speaking engagements and bogus case studies; and cash, credits and rebates, to induce the use of Dermagraft. The Anti-Kickback Statute prohibits, among other things, the payment of remuneration to induce the use of medical devices covered by Medicare, Medicaid and other federally-funded health care programs, including the Department of Veterans Affairs (VA). Claims filed in violation of the Anti-Kickback Statute are considered false or fraudulent under the False Claims Act. In addition, the Anti-Bribery statute and the Federal Acquisition Regulations prohibit bribes to government officials or employees, including VA physicians, to obtain a contract or favorable treatment under a supply contract. The United States alleged that as a result of their violation of these provisions, ABH and Shire submitted or caused to be submitted to federally-funded health care programs hundreds of millions of dollars of false claims for Dermagraft.

 

“Flagrant and systemic kickback activity of the type at issue in this case is designed to impair and undermine a physician’s independent medical judgment, and will not be tolerated,” said U.S. Attorney A. Lee Bentley III for the Middle District of Florida (MDFL). “This lawsuit and today’s historic settlement demonstrate our office’s vigilant and on-going efforts to safeguard federal health care program beneficiaries from the effects of such illegal and deplorable conduct.” In addition to this landmark civil settlement, Mr. Bentley’s office continues to work diligently to bring to justice those individuals responsible for these illegal actions. Already, the MDFL has obtained the criminal convictions of three high-level executives who supervised the implementation of the illegal kickback scheme, as well as a number of healthcare providers who received kickbacks.

 

The U.S. Attorney’s Office for the District of Columbia also played an active role in this investigation, seeking redress in the civil agreement announced today for the losses sustained by the VA. “Giving kickbacks and gratuities to healthcare providers corrupts medical treatment by interjecting personal financial incentives into decisions that should focus on what is best for a particular patient,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “These types of unlawful incentives are particularly troubling when they seek to corrupt the medical treatment provided to our nation’s veterans. We will aggressively pursue any company that engages in such reprehensible and unlawful conduct, which seeks to put a company’s financial gains ahead of providing the best medical treatment for those who bravely served in our Armed Forces.”

 

The U.S. Attorneys’ Office for the Eastern District of Pennsylvania and the Middle District of Tennessee also contributed to the investigation and resolution of these matters. “Fraud against the health care program that exists for the benefit of our veterans, some of our most cherished citizens, as well as fraud against the Medicare program, is reprehensible and unacceptable,” said the Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania. “This resolution again demonstrates the capacity of the Department of Justice and our law enforcement partners across the country to work together to address unlawful conduct nationwide that affects veterans and other beneficiaries of federally funded health care programs.”

 

“The best interest of the patient is, and must be, the primary factor in a physician’s decision regarding patient care,” said U.S. Attorney David Rivera for the Middle District of Tennessee. “As such, federal law protects patients from medical providers who enrich themselves through bribes and kickbacks by making illegal the payment of remuneration to induce the use of medical devises covered by federally-funded health care programs. Such kickback schemes that interfere with physician-patient relationships and drive up the cost of healthcare for everyone, will be vigorously pursued and aggressively prosecuted.”

 

U.S. Department of Veterans Affairs healthcare providers are obligated to render care free of any improper financial influences” said Special Agent in Charge Michael E. Seitler of the U.S. Department of Veterans Affairs, Office of Inspector General (VA OIG), Northwest Field Office. “This is particularly important at VA, since we care for many of this nation’s heroes who have sacrificed their own welfare for our freedom. In this case, ABH saw a dramatic rise in its sales to the VA during the period of time it provided illegal inducements to multiple VA clinicians across the country. These corrupt practices served to erode the public trust in our healthcare system. The VA OIG is committed to investigating, and bringing to justice, those who engage in these illegal practices.”

 

In addition to the kickback allegations, the settlement also resolved allegations that Shire and its predecessor ABH unlawfully marketed Dermagraft for uses not approved by the FDA, made false statements to inflate the price of Dermagraft, and caused improper coding, verification, or certification of Dermagraft claims and related services.

 

The allegations resolved by the settlement were brought in six lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The whistleblower shares to be awarded in this case have not yet been determined.

 

The six qui tam cases, all of which were either filed or transferred to the U.S. District Court for the Middle District of Florida, are captioned: United States ex rel. Vinca v. Advanced BioHealing, Inc., Case No. 8:11-cv-176-T-30MAP; United States ex rel. Harvey v. Advanced BioHealing, Inc., Case No. 8:16-cv-303-T-30TBM; United States ex rel. Medolla v. Advanced BioHealing, Inc., Case No. 8:12-cv-575-T-30TBM; United States, et al., ex rel. Petty v. Shire Regenerative Medicine, Inc., Case No. 8:14-cv-969-T-30TBM; United States ex rel. Webb v. Advanced BioHealing, Inc., Case No. 8:14-cv-1055-T-30EAJ; and United States, et al., ex rel. Montecalvo v. Shire Regenerative Medicine, Inc., Case No. 8:16-cv-268-T-30TBM.

 

These matters were investigated by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Middle District of Florida, District of Columbia, Middle District of Tennessee and Eastern District of Pennsylvania; the FBI; the U.S. Department of Health and Human Services (HHS) Office of Inspector General; the VA OIG and the Department of Defense Criminal Investigative Service.

 

Shire, which cooperated in the government’s investigation, has been operating under a Corporate Integrity Agreement entered into with HHS that was implemented in late 2014, after the alleged unlawful conduct resolved by today’s settlement occurred, in connection with the settlement of separate False Claims Act allegations.

 

“Patients must be able to trust that decisions made by their doctors are based on unbiased professional judgment and not personal gain,” said Chief Counsel Gregory E. Demske to the HHS Inspector General. “The Office of the Inspector General will continue to monitor Shire’s compliance with federal healthcare programs through its oversight of Shire’s Corporate Integrity Agreement.”

 

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.4 billion through False Claims Act cases, with nearly $19.6 billion of that amount recovered in cases involving fraud against federal health care programs.

 

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

Anthony Molinero, 70, of Philadelphia, 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 retirement benefits intended for his mother, after his mother’s death in May 2000 until March 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $150,999.

 

If convicted, the defendant faces a term of imprisonment, a 3‑year period of supervised release, restitution to the government of $150,999, a $250,000 fine, 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 Christopher E. Parisi.

 

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

 

Abington Memorial Hospital (AMH) has agreed to pay the United States $510,000 to resolve allegations that failures in AMH’s controls and practices enabled its employee to divert controlled substances for illegal, non-medical uses. In addition to this monetary settlement, AMH has implemented a program to prevent, identify, and address future diversions. The resolution was announced by Acting United States Attorney Louis D. Lappen.

 

In 2013, an investigation was launched after AMH disclosed to the Drug Enforcement Administration (DEA) that a pharmacist at AMH’s inpatient pharmacy had stolen large volumes of controlled substances (prescription medications) from the hospital. Altogether, over the course of at least 85 different occasions between February 1, 2010 and August 20, 2013, the pharmacist stole more than 35,000 pills, including highly addictive painkillers such as oxycodone. DEA’s ensuing audit of AMH’s controlled substances revealed pill count discrepancies totaling over 35,000, missing or incomplete medication inventories, and altered or missing drug records, all in violation of AMH’s responsibilities under the Controlled Substances Act and federal regulations.

 

In a related federal criminal matter, in 2015, the AMH pharmacist, Renata Dul, pleaded guilty to 25 counts of possession with the intent to distribute oxycodone and was sentenced to six years of imprisonment and three years of supervised release.

 

Since the investigation began, AMH has worked cooperatively with the DEA and the U.S. Attorney’s Office to address the identified deficiencies in AMH’s handling of controlled substances. The plan includes upgrades to AMH’s inpatient pharmacy computer systems; physically enclosing the controlled substances vault; installing new and additional security cameras and badge swipe access; adding a rotary depositary safe; adding a new, locked controlled substances and anesthesia carts; retaining outside consultants to review and improve AMH’s controlled substances policies and practices; purchasing additional intravenous lock boxes; creating a Drug Diversion Prevention & Monitoring Committee and a Task Force for Controlled Substances Infusions-Wasting; improving inventory practices to account for bulk and unit dose medications broken down individually; instituting daily, biweekly, weekly, monthly, and yearly controlled substances-diversion monitoring activities; centralizing the ordering of controlled substances; increasing training for proper controlled substance storage; tracking serial numbers used in dispensing of controlled substances script pads to nursing units; and revising controlled substances policies and procedures to ensure uniformity and require biannual review. In addition, AMH has hired and trained a lead supervisor pharmacy technician, on a full-time basis, whose primary responsibility is monitoring the controlled substances operational workflow from ordering through dispensing.

 

“Hospitals like Abington Memorial have a special responsibility to ensure that controlled substances are used for patient care and not diverted for non-medical uses,” said Acting U.S. Attorney Lappen. “Diversion leads to illegal sales of addictive prescription drugs that have had a devastating impact on members of our community. We commend Abington Memorial Hospital for disclosing its diversion problems and for working to improve its practices and address potential diversion by hospital personnel.”

 

“The illegal diversion of prescription medication is a violation of federal law and of primary concern to the DEA. All too often the diversion and misuse of powerful prescription opioids such as oxycodone leads to heroin use, overdose, and even death,” said Gary Tuggle, Special Agent in Charge of the DEA’s Philadelphia Field Division. “We are confident that the steps that Abington Memorial Hospital has taken to secure controlled substances will prevent incidents such as this in the future.”

 

The case was handled by Assistant United States Attorneys Mark J. Sherer and Paul W. Kaufman, and was investigated by DEA diversion investigators James J. Corbett and Ashley F. Wade, Group Supervisor Regina Spaddy, and Diversion Program Manager Donetta M. Spears.

Louis Lappen, Acting United States Attorney for the Eastern District of Pennsylvania, announced today that Zaki M. Bey, 38, of Philadelphia pleaded guilty to one count of conspiracy to commit loan fraud and bank fraud, one count of conspiracy to defraud the Internal Revenue Service, and one count of conspiracy to commit wire fraud.

 

to court documents, Bey conspired with others to prepare fraudulent mortgage applications to obtain thirteen properties located in the Germantown section of Philadelphia and in New Jersey. Bey and the co-conspirators also furnished fraudulent payroll account documents, paystubs and financial statements to defraud financial institutions and lenders. In 2007 and 2008, Bey was responsible in securing more than $2 million in residential loans on properties purchased in the names of straw buyers. With the assistance of others, Bey would receive a payout for purported construction expenses ranging from $17,864.26 to $60,000 at the closing of each settlement. Bey was not completing any construction on these properties. In total, Bey obtained total settlement proceeds for construction costs of $435,074.26.

 

filed false tax returns for 2007, 2008, 2009 and 2010 claiming false withholding payments and false Forms 1099-OID (“Original Issue Discount”) income for his company, Natural Home Builders. was successful in receiving a false tax refund from the IRS in the amount of $148,296 for tax year 2009. In 2012, after assessed a deficiency, BEY mailed checks to the Internal Revenue Service from a closed bank account in an attempt to repay the fraudulent tax refund. also assisted another individual in filing a falsely amended tax return with the IRS that included false withholding taxes and Form 1099-OID income.

 

Beginning in 2010 to 2013, Bey and others submitted fraudulent auto loan applications and furnished fraudulent payroll documents, paystubs and financial statements to automobile dealerships located in Philadelphia and New Jersey. Bey was able to obtain at least 7 automobiles purchased through straw buyers.

 

maximum penalty under federal law is 45 years of imprisonment, 5 years of supervised release, $1,500,000 fine and a $300 special assessment fee.

 

case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney James Pavlock.

Philadelphia - Following a three-week jury trial, a federal jury convicted two key players in a prescription drug conspiracy that illegally distributed more than 380,000 Oxycodone pills, as well as Alprazolam, into communities in the Eastern District of Pennsylvania.  Leon Little, the head of the “Little Drug Operation” (LDO), was convicted yesterday in federal court of 50 counts, including 1 count of conspiracy to distribute controlled substances, 24 counts of distribution of oxycodone, 9 counts of acquiring a controlled substance by fraud, and 16 counts of money laundering, announced United States Attorney Zane David Memeger.  Additionally, one of Little’s accomplices, Colise Harmon, was convicted of 34 counts, including 1 count of conspiracy to distribute controlled substances, 15 counts of distribution of oxycodone, and 4 counts of acquiring a controlled substance by fraud.  Little faces up to 846 years’ imprisonment and Harmon faces up to 336 years’ imprisonment.

“Like the rest of the nation, the Eastern District of Pennsylvania has been greatly impacted by the prescription drug abuse epidemic,” said United States Attorney Zane David Memeger.  “Heroin and opiate-based prescription medication – such as oxycodone – are two of the most abused drugs in this area.  And just like street drugs, prescription drug abuse produces the same problems: addiction, crime, and broken families. Today’s convictions reflect the great work of our law enforcement partners to use the criminal justice system, one of the many weapons available, to curb this epidemic.”

 “The illegal diversion and sale of prescription opioids such as oxycodone has caused considerable damage to communities and the loss of numerous lives across our region,” said Gary Tuggle, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “Leon Little and Colise Harmon have been convicted of running a pill distribution network responsible for distributing over 380,000 dosage units of oxycodone.  For that, the penalties are severe.”    

"All financial transactions leave a trail and we have the unique expertise to follow those leads" said Akeia Conner, Special Agent in Charge, IRS Criminal Investigation. "The special agents of IRS Criminal Investigation are committed to taking the profit away from drug traffickers and putting those individuals in jail. The convictions of Leon Little and Colise Harmon should serve as a warning to those who are considering similar conduct."

Between July 2010 and August 2012, the LDO recruited and paid 55 individuals to pose as patients in order to acquire prescription drugs, such as oxycodone and alprazolam (otherwise known as Xanax), from a physician in Bala Cynwyd, Pennsylvania.  Many of these “pseudo-patients” were recruited from the Raymond Rosen Projects, a government-assisted housing development located in north Philadelphia.  The pseudo-patients primarily received prescriptions for 10 milligram and 30 milligram tablets of oxycodone in exchange for money.  The LDO also paid for the doctor’s visit and the costs for filling the prescriptions.  Little also collected and stored the filled prescriptions, packaged the drugs for re-distribution, and distributed them to his customers in Philadelphia.

Harmon served as a driver for the LDO who facilitated the coordination of pseudo-patients.  Little paid Harmon, along with two others to drive pseudo-patients to the doctor and to specific pharmacies in Philadelphia, PA to have the prescriptions filled, as well as to serve as pseudo-patients. 

Little orchestrated the entire scheme by paying the doctor’s receptionist and sole employee to schedule the pseudo-patients’ appointments, write prescriptions for oxycodone using the doctor’s prescription pad and without the doctor’s consent, and distribute the forged prescriptions to the LDO.  She also falsely verified with pharmacies that the forged prescriptions received from LDO pseudo-patients were legitimate.  Little and Harmon also distributed the oxycodone pills to customers and resellers.

Based on the average retail sale price of the oxycodone tablets on the street, the LDO took in more than $3.3 million dollars.  Little used the proceeds from the illegal pill scheme to purchase jewelry, designer clothes, and vehicles, including a Can-Am Spyder valued at over $17,000 and to gamble approximately $1.9 million at various casinos.  Little also facilitated the laundering of $85,000 in drug proceeds in an attempt to conceal the proceeds of his drug trafficking.

The case was investigated by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation Division, Federal Bureau of Investigation Health Care Fraud Task Force, Philadelphia Police Department, and North Coventry Police Department.  It was prosecuted by Assistant United States Attorney Tomika N.S. Patterson.

PHILADELPHIA – Louis D. Lappen, First Assistant United States Attorney for the Eastern District of Pennsylvania, announced today that the United States had reached a civil settlement with Ernest Bock and Sons, Inc. (“EBS”) resolving civil claims concerning EBS’ improper use of United States Department of Transportation (“DOT”) funds for two Southeastern Pennsylvania Transportation Authority (“SEPTA”) construction projects.  In addition, he announced that the United States filed a civil lawsuit and entered into a consent judgment with Atrium International (“Atrium”), the DBE who improperly received USDOT funds in connection with the two SEPTA construction projects.  To resolve the government’s civil claims against it, EBS has paid the United States $450,000 pursuant to the settlement agreement; Atrium has agreed to pay $45,000 pursuant to the consent judgment.

First Assistant Lappen stated: “EBS and Atrium subverted the aims of the U.S. Department of Transportation’s Disadvantaged Business Enterprise program and thus denied qualified DBEs the opportunity to participate in the program and to do the work that SEPTA commissioned.  These civil resolutions demonstrate the Department of Justice’s commitment to ensure that contractors who receive federal funds will follow the law.”    

“As evidenced by this settlement agreement entered into by EBS and the consent judgement with Atrium, we remain steadfast in our commitment to maintaining the integrity of the DOT’s DBE program,” said Douglas Shoemaker, regional Special Agent-in-Charge of DOT’s Office of Inspector General.  “DBE fraud harms the integrity of the DBE program and law-abiding contractors, including many small businesses, by defeating efforts to ensure a level playing field in which all firms can compete fairly for contracts.  Working with the Secretary of Transportation and other DOT leaders, and our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.” 

Background for the DOT’s DBE Programs

Beginning in 1980, the U.S. Department of Transportation issued regulations to increase the participation of minority and disadvantaged business enterprises in federally-funded construction contracts.  To become certified as a DBE, a company must be owned and controlled by socially and economically disadvantaged individuals.  Recipients of DOT construction grants, such as SEPTA, must establish a DBE program that sets goals for the percentage of a project’s work that should be awarded to DBEs (“DBE goals”). 

General contractors may only count funds paid to DBEs toward the attainment of DBE goals if the DBEs performed a “commercially useful function.”  A DBE does not perform a “commercially useful function” if its “role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of DBE participation.”  A DBE subcontractor performs a “commercially useful function” when it is responsible for the execution of the work of the contract; it actually performs, manages, and supervised the work involved; and it furnishes the supervision, labor and equipment necessary to perform its work. 

EBS’ and Atrium’s Fraud

EBS and Atrium served as the general contractor and DBE contractor, respectively, on two projects commissioned by SEPTA that were funded by DOT: 1) the renovation of the Folcroft, Clifton-Alden and Morton rail stations (S788407) and 2) the R5 signage project (S781109).  The DBE goals for the two projects were 13 percent and 7 percent, respectively. 

Although Atrium was listed as the DBE on these two SEPTA projects, it never performed any useful commercial functions on the projects between 2010 and 2011.  Instead, EBS selected and used a non-DBE subcontractor to complete the duties that Atrium was supposed to perform.  Atrium was aware of this arrangement and accepted a commission for improperly lending its DBE status and acting as a “pass-through” on these projects.  EBS falsely certified to SEPTA that Atrium was performing the delegated DBE tasks on the projects.  Furthermore, Atrium submitted certified payrolls to the Department of Labor that falsely claimed that the individuals performing the work were its employees and acting under its supervision when that was not true.  Atrium and EBS pursued that false reporting after they had been criticized in a 2010 Philadelphia Office of Comptroller’s Report for violating Philadelphia Minority Business Enterprise during a construction project at the Philadelphia Airport.    

As part of its settlement, EBS has paid the government $450,000.  Atrium International has agreed to pay the government $45,000 in connection with a stipulated consent judgment entered on December 21, 2016 by Judge O’Neill. 

For the United States Attorney’s Office for the Eastern District of Pennsylvania, this investigation and settlement was handled by Assistant United States Attorney Eric D. Gill.  

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

PHILADELPHIA – Angel Catalino Ivostraza-Torres, 53, of North Philadelphia, PA, was sentenced today to 204 months in federal prison in connection with an undercover investigation conducted by the U.S. Postal Inspection Service.  Ivostraza-Torres pleaded guilty on August 11, 2016, to attempted possession with intent to distribute 500 grams or more of cocaine. 

During the investigation, Ivostraza-Torres was caught transporting a U.S. mail package that had contained nearly a kilogram of cocaine hidden inside of a printer.  Ivostraza-Torres delivered the package to an auto detailing business located in the Fairhill section of Philadelphia before being arrested by postal inspectors.  A laboratory test confirmed that the net weight of the cocaine that had been inside the package was 991 grams.  Prior to his arrest in this case, Ivostraza-Torres had been convicted of drug trafficking four other times.

In addition to the prison term of 17 years, U.S. District Court Judge Mitchell S. Goldberg ordered 8 years of supervised release.

This case was investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorneys Jerome M. Maiatico and Clare Putnam Pozos

Eddie Baez, 31 of Philadelphia, Pennsylvania, was charged today by Indictment with one count of possession with intent to distribute 500 grams or more of cocaine, one count of possession with intent to distribute 500 grams or more of cocaine within 1000 feet of a playground and one count of attempt to possess with intent to distribute 500 grams or more of cocaine, all in violation of Title 21, United States Code, Sections 841(b)(1)(B), 846, and 860, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum of 120 years imprisonment, a mandatory minimum of 5 years imprisonment, a period of supervised release, a $10 million dollar fine, and a $200 special assessment.

The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Priya De Souza.                                                             

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

Kenneth Stalling, age 34, of Philadelphia, Pennsylvania, was charged today by indictment[1] with one count of assaulting a federal employee, that is a United States Postal Service employee while he was engaged in his official duties, on or about October 19, 2016, in Philadelphia, Pennsylvania, announced United States Attorney Zane David Memeger.

If convicted of all counts, Stalling faces a maximum sentence of 20 years’ imprisonment, a $250,000 fine, three years’ supervised release, and a $100 special assessment.

This case has been investigated by the United States Postal Inspection Service, and the Philadelphia Police Department. The case has been assigned to Assistant United States Attorney Thomas M. Zaleski.

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

Darren Dozier a/k/a “Dante Dozier”, 54, of Philadelphia, Pennsylvania, was charged today by Indictment with three counts of production of child pornography, one count of transportation of child pornography, and one count of offenses committed by a registered sex offender, for offenses committed in 2015 against a child under the age of 13 years, announced United States Attorney Zane David Memeger. The defendant was previously convicted in the Commonwealth of Pennsylvania for rape and related offenses. 

If convicted the defendant faces a maximum possible sentence of life imprisonment, a mandatory minimum of 35 years, a minimum 5-year term up to a lifetime of supervised release, a $1.25 million dollar fine, mandatory restitution, forfeiture, a $500 special assessment, and a $20,000 special victims assessment.  

The case was investigated by the Federal Bureau of Investigations and the Philadelphia Police Department Special Victims Unit and is being prosecuted by Assistant United States Attorney Priya De Souza.                                                                    

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

 An Indictment[1]  was returned today charging Steven Ronald Randall, 24, of Philadelphia, Pennsylvania, with 2 counts of bank fraud and 10 counts of aggravated identity theft, announced United States Attorney Zane David Memeger.

The Indictment alleges that Randall 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.  The Indictment alleges that Randall went to numerous ATM machines in Philadelphia and the surrounding area to make the deposits and withdrawals, and also 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.  The Indictment further alleges that Randall paid the account holders a portion of the over $47,000 he unlawfully obtained as a result of the scheme.

Randall faces a maximum sentence of 80 years’ incarceration, including a mandatory two-year term of imprisonment, a five-year period of supervised release, a fine of $4,500,000, and restitution of at least $52,000. He also faces a likely advisory sentencing guideline range of somewhere between 61 months’ and 286 months’ imprisonment. 

The case was investigated by the United States Postal Inspection Service 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

 

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

Jose Arcadio Garduno-Gomez, 24, of Norristown, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about June 22, 2016, Garduno-Gomez, 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 March 5, 2011.

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

The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations and is being prosecuted by Assistant United States Attorney Kevin L. Jayne.

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

John I. Waltman, 59, of Trevose, Pennsylvania, Robert P. Hoopes, 69, of Doylestown, Pennsylvania, and Bernard T. Rafferty, 62, of Langhorne, Pennsylvania were charged in an Indictment,[1] unsealed earlier today, with one count of conspiracy to commit money laundering and three counts of money laundering, announced United States Attorney Zane David Memeger.

Waltman has been a Magisterial District Judge in Bucks County, Pennsylvania since 2011.  Hoopes has been the Director of Public Safety in Lower Southampton, Pennsylvania since February 2016.  In this position, Hoopes has authority over all police, fire, and emergency operations in the township.  Hoopes previously operated a legal practice in Doylestown, Pennsylvania.  Rafferty has been a Deputy Constable in Bucks County since 1998.  Rafferty controls Raff’s Consulting LLC, a corporation registered with the Pennsylvania Department of State on May 30, 2011. 

According to the Indictment, from June 2015 to November 2016, Waltman, Hoopes, and Rafferty conspired to launder funds represented to be proceeds from health care fraud, illegal drug trafficking, and bank fraud.  Moreover, from June 2016 to August 2016, Waltman, Hoopes, and Rafferty laundered $400,000 in cash, represented to be proceeds from health care fraud and illegal drug trafficking, and took money laundering fees totaling $80,000 in cash.

If convicted, the defendants each face a maximum possible sentence of 80 years in prison, three years of supervised release, a $1 million fine, and a $400 special assessment.

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

 

Mark Vega, 34, of Shillington, Pennsylvania was charged today by Indictment1 with Mail Fraud and Aggravated Identity Theft, announced United States Attorney Zane David Memeger.  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 with Discover Financial Services and American Express Company.  According to the indictment, Vega also had himself added as an authorized user on these credit card accounts.

If convicted the defendant faces a maximum possible sentence of 84 years in prison, with a two year mandatory minimum, a $1,500,000 fine, three years of supervised release, and a $600 special assesment

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

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

Karl Christian Loibenbock, a/k/a “Karl Christian Loibenboeck,” a/k/a “Christian Bock,” of Windhoek, Namibia, was charged today by Indictment[1] with one count of wire fraud, announced United States Attorney Zane David Memeger.

According to the Indictment, from September 2013 to November 9, 2016, Loibenbock falsely represented that he procured and sold high-quality rough diamonds from Angola that were not certified as required by the Kimberley Process.  In reality, Loibenbock was attempting to pass off topaz stones – which Loibenbock procured in Namibia – as rough diamonds to defraud a United States customer.  On November 7, 2016, Loibenbock traveled from Namibia to the United States to complete the sale of approximately 100 carats of purported rough diamonds in his attempt to defraud the United States customer out of approximately $250,000. 

Launched in 2003, the Kimberley Process is an international initiative to prevent rough diamonds from being used to finance civil wars in diamond-producing countries.  The Kimberley Process controls trade in rough diamonds between participating countries through domestic implementation of a certification scheme that makes the trade more transparent and secure.  According to the Kimberley Process, rough diamonds must be shipped in sealed containers and exported with a Kimberley Process Certificate that certifies that the rough diamonds have not benefited rebel movements.

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

The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and the United Kingdom’s National Crime Agency, and is being prosecuted by Assistant United States Attorney Vineet Gauri.                                                                     

 

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

Daniel Acosta-Domiguez, a.k.a. “Daniel Acosta,” a.k.a. “Jonathan Amador-Alvarez,” 33, of Philadelphia, PA, was charged today by Indictment1 with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about October 18, 2016, Jorge-Jimenez, 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 21, 2013.

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

The case was investigated by Homeland Security Investigations (“HSI”) and Enforcement and Removal Operations (“ERO”) of Immigration and Customs Enforcement (“ICE”), and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.

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

Former Congressman Chaka Fattah Sr., 60, of Philadelphia, was sentenced to 120 months in prison for participating in a racketeering conspiracy involving several schemes intended to further his political and financial interests by misappropriating federal, charitable and campaign funds, among other things.  

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Special Agent in Charge Michael Harpster of the FBI’s Philadelphia Division and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) Philadelphia Field Office made the announcement.

Fattah was sentenced by U.S. District Judge Harvey Bartle III of the Eastern District of Pennsylvania, who also ordered Fattah to pay $600,000 in restitution and to forfeit $14,500.  On June 21, 2016, Fattah was convicted of participating in racketeering, bribery, wire fraud, honest services fraud and money laundering conspiracies, and for bribery, mail fraud and money laundering. 
        
“Chaka Fattah was a long-serving and powerful member of the U.S. House of Representatives who was entrusted by his constituents with serving their best interests,” said Assistant Attorney General Caldwell.  “Instead, he perverted that trust and turned his office into a criminal organization designed to support his own political and financial interests.” 

“As a former congressman, Fattah conspired with his co-defendants in a series of schemes to use his position for personal gain at the expense of the public good,” said U.S. Attorney Memeger.  “We are pleased with today’s outcome while also recognizing the tragedy of this defendant’s fall from grace.  We hope that the lengthy prison sentence imposed today deters those public officials who might be tempted to engage in corruption, as our office remains committed to investigating and prosecuting public corruption at all levels of government.”

“Chaka Fattah represented his district in Congress for over 20 years,” said Special Agent in Charge Harpster.  “And, if not for his sheer greed and venality, probably could have kept his seat for 20 more.  He's repeatedly deemed this case a ‘witch hunt’ against him by the government.  But in truth, Mr. “Today’s sentence sends a clear message that the laws of the land apply to everyone, regardless of position or power,” said Chief Weber.  “Public officials who fail to faithfully discharge the duties of their office will be investigated, prosecuted and subjected to the full punishment of the law for their actions.”

According to the evidence presented at trial, Fattah and certain associates borrowed $1 million from a wealthy supporter for his failed 2007 campaign for mayor of Philadelphia, and disguised the funds as a loan to a consulting company.  After he lost the election, Fattah returned $400,000 of unused campaign funds to the donor and arranged for Educational Advancement Alliance (EAA), a non-profit entity founded and controlled by Fattah, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by co-defendant Robert Brand.  To conceal the contribution and repayment scheme, Fattah, his co-conspirators, and others created sham contracts and made false entries in accounting records, tax returns and campaign finance disclosure statements.  

Following his election defeat, Fattah also sought to extinguish approximately $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant.  Fattah directed the consultant to apply for a $15 million grant (which ultimately he did not receive) on behalf of a then-non-existent non-profit entity.  In exchange for Fattah’s efforts to arrange the award, the consultant agreed to forgive the campaign debt.  

In addition, Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son’s student loan debt.  To execute the scheme, Fattah arranged for his campaigns to make payments to a political consulting company, which the company used to make 34 successful loan payments on behalf of Fattah’s son, totaling approximately $23,000, between 2007 and 2011.  

Beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for co-defendant Herbert Vederman an ambassadorship or an appointment to the U.S. Trade Commission.  In exchange, Vederman provided money and other items of value to Fattah.  As part of this scheme, the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a sham car sale.

Fattah’s four co-defendants Vederman, Brand, Karen Nicholas and Bonnie Bowser were convicted alongside Fattah for charges in connection with the schemes on June 21, 2016.   Judge Bartle also sentenced Vederman today to 24 months in prison and ordered him to pay a $50,000 fine.  Sentencing is set for Dec. 13, 2016 for Brand and Nicholas and Dec. 14, 2016 for Bowser.

The FBI and IRS-CI investigated the case with assistance from the Justice Department’s Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerce’s Office of Inspector General.  Trial Attorneys Eric L. Gibson and Jonathan Kravis of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania are prosecuting the case.  

Philadelphia – Former Congressman Chaka Fattah Sr., 60, of Philadelphia, was sentenced to 120 months in prison for participating in a racketeering conspiracy involving several schemes intended to further his political and financial interests by misappropriating federal, charitable and campaign funds, among other things. 

U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Michael Harpster of the FBI’s Philadelphia Division and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) Philadelphia Field Office made the announcement.

Fattah was sentenced by U.S. District Judge Harvey Bartle III of the Eastern District of Pennsylvania, who also ordered Fattah to pay $600,000 in restitution and to forfeit $14,500.  On June 21, 2016, Fattah was convicted of participating in racketeering, bribery, wire fraud, honest services fraud and money laundering conspiracies, and for bribery, mail fraud and money laundering.  

“As a former congressman, Fattah conspired with his co-defendants in a series of schemes to use his position for personal gain at the expense of the public good,” said U.S. Attorney Memeger.  “We are pleased with today’s outcome while also recognizing the tragedy of this defendant’s fall from grace.  We hope that the lengthy prison sentence imposed today deters those public officials who might be tempted to engage in corruption, as our office remains committed to investigating and prosecuting public corruption at all levels of government.”

“Chaka Fattah was a long-serving and powerful member of the U.S. House of Representatives who was entrusted by his constituents with serving their best interests,” said Assistant Attorney General Caldwell.  “Instead, he perverted that trust and turned his office into a criminal organization designed to support his own political and financial interests.”

“Chaka Fattah represented his district in Congress for over 20 years,” said Special Agent in Charge Harpster.  “And, if not for his sheer greed and venality, probably could have kept his seat for 20 more.  He's repeatedly deemed this case a ‘witch hunt’ against him by the government.  But in truth, Mr. Fattah and his co-defendants have no one to blame but themselves.  Tackling public corruption remains an FBI priority, for the simple fact that no one is above the law.” 

“Today’s sentence sends a clear message that the laws of the land apply to everyone, regardless of position or power,” said Chief Weber.  “Public officials who fail to faithfully discharge the duties of their office will be investigated, prosecuted and subjected to the full punishment of the law for their actions.”

According to the evidence presented at trial, Fattah and certain associates borrowed $1 million from a wealthy supporter for his failed 2007 campaign for mayor of Philadelphia, and disguised the funds as a loan to a consulting company.  After he lost the election, Fattah returned $400,000 of unused campaign funds to the donor and arranged for Educational Advancement Alliance (EAA), a non-profit entity founded and controlled by Fattah, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by co-defendant Robert Brand.  To conceal the contribution and repayment scheme, Fattah, his co-conspirators, and others created sham contracts and made false entries in accounting records, tax returns and campaign finance disclosure statements. 

Following his election defeat, Fattah also sought to extinguish approximately $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant.  Fattah directed the consultant to apply for a $15 million grant (which ultimately he did not receive) on behalf of a then-non-existent non-profit entity.  In exchange for Fattah’s efforts to arrange the award, the consultant agreed to forgive the campaign debt. 

In addition, Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son’s student loan debt.  To execute the scheme, Fattah arranged for his campaigns to make payments to a political consulting company, which the company used to make 34 successful loan payments on behalf of Fattah’s son, totaling approximately $23,000, between 2007 and 2011. 

Beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for co-defendant Herbert Vederman an ambassadorship or an appointment to the U.S. Trade Commission.  In exchange, Vederman provided money and other items of value to Fattah.  As part of this scheme, the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a sham car sale.

Fattah’s four co-defendants Vederman, Brand, Karen Nicholas and Bonnie Bowser were convicted alongside Fattah for charges in connection with the schemes on June 21, 2016.   Judge Bartle also sentenced Vederman today to 24 months in prison and ordered him to pay a $50,000 fine.  Sentencing is set for Dec. 13, 2016 for Brand and Nicholas and Dec. 14, 2016 for Bowser.

The FBI and IRS-CI investigated the case with assistance from the Justice Department’s Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerce’s Office of Inspector General.  Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania, and Trial Attorneys Eric L. Gibson and Jonathan Kravis of the Criminal Division’s Public Integrity Section are prosecuting the case.  

.PHILADELPHIA – Following a three-month jury trial, Jeffrey Bado, formerly a physician with two practices in the Philadelphia area, was convicted today in federal court of 308 felony counts, including two counts of maintaining a drug-involved premises, one count of drug distribution resulting in death, 269 counts of drug distribution, 33 counts of health care fraud, and two counts of making false statements to federal agents, announced United States Attorney Zane David Memeger.  Bado faces a twenty-year mandatory minimum sentence for the charge of drug distribution resulting in death, and up to twenty years in prison for each of the other drug distribution counts.

 “We are tremendously gratified with the jury’s verdict in this important prosecution,” said United States Attorney Zane David Memeger.  “This verdict represents the culmination of an outstanding effort from our prosecutors and law enforcement partners to hold accountable those individuals, particularly those in the medical profession, whose illegal conduct fuels the epidemic of prescription drug abuse that is wreaking havoc on our society.  We will continue to investigate and prosecute these dangerous drug dealers, whether they are doctors, pharmacists, or otherwise, as well work with the community to help reverse the trend of serious drug abuse.”

Bado maintained medical offices in Roxborough, in 2010 and 2011, and in Bryn Mawr, from 2011 to 2013.  Evidence at trial showed that Bado had prescribed large amounts of oxycodone and methadone to clients of his practice outside the usual course of professional practice and without medical necessity. In one instance, Bado’s illegal drug distribution caused the death of a drug addicted patient.  By the time Bado’s practice closed in 2013, Bado was charging new patients $800 cash per visit, returning patients $400 cash, and refusing to accept medical insurance. Bado’s patients received at most a cursory physical examination and little other medical care or treatment.  However, they did receive what government expert Stephen Thomas, M.D., testified were prescriptions for staggering amounts of opioids.

Bado issued prescriptions tailored to the needs of drug addicts and dealers; he complied with patients’ requests for specific concentrations of oxycodone and, without medical justification, switched patients’ prescriptions to pill concentrations commanding a higher street value.  Even when Bado knew patients were addicted to oxycodone, were using illegal drugs, or were not taking the oxycodone prescribed, he continued to provide prescriptions for large amounts of oxycodone.  Multiple former patients testified to becoming addicted to oxycodone prescribed by him.  There was no evidence at trial suggesting Bado had referred patients to opioid addiction treatment. 

Bado was also convicted of health care fraud, having fraudulently billed Medicare and private insurers for patient visits that occurred when Bado was out of the country.  Bado directed his staff to see patients, provide them with pre-signed prescriptions, and submit fraudulent insurance claims as if he had seen the patients himself.  Bado was convicted of making false statements to federal agents concerning these billings.

The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of the Inspector General, and the Internal Revenue Service.  It was prosecuted by Assistant U.S. Attorneys Maureen McCartney, Jason P. Bologna, Andrew J. Schell, and Nancy Beam Winter.

PHILADELPHIA – The United States announces that it has settled allegations under the False Claims Act with Eyeland Optical Centers, a chain of eye care centers in Pennsylvania.  The settlement resolves allegations that Eyeland had billed Medicaid for more than four lenses per year, in violation of Pennsylvania’s Medicaid regulations, and retained those payments even once it became aware that it had done so.  Eyeland has agreed to pay $135,328.56 to resolve these claims. 

The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General.  It was prosecuted by Assistant United States Attorneys Paul W. Kaufman and David A. Degnan.

 

Donald Lee Haas, 60 years old of South Whitehall Township, Pennsylvania, was charged today by Indictment with three counts of conveying false information using a telephone, and one count of conveying false information about carrying a bomb onto an airplane, announced United States Attorney Zane David Memeger.  The defendant is alleged to have made bomb threats to Lehigh Valley International Airport, TGI Friday’s restaurant, and the Lehigh Valley Mall, on May 17, 2016, in Lehigh County, in the Eastern District of Pennsylvania.

If convicted, defendant Haas faces a maximum possible sentence of 50 years imprisonment, a three-year period of supervised release, a $1,000,000 fine, and a $400 special assessment.

The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency, the Lehigh Northampton Airport Authority Police Department, the South Whitehall Township Police Department, and the Allentown Police Department, and is being prosecuted by Assistant United States Attorney John Gallagher.

An initial appearance of the charges has been scheduled for Friday, December 16, 2016, at 2:30 p.m., before the Honorable Henry S. Perkin, United States Magistrate Judge, at the Edward N. Cahn U.S. Courthouse and Federal Building, 504 Hamilton Street, in Allentown, Pennsylvania.

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

Federico Sanchez-Bello, 36, of Norristown, PA, was charged today by Indictment[1] with being an illegal alien in possession of a firearm, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about September 4, 2016, Sanchez-Bello, a native and citizen of Mexico unlawfully in the United States, possessed a .45 caliber semi-automatic pistol.

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

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

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

Yesterday, a federal judge sentenced Khar Abdulah, 40, of New Castle, Delaware to ten years in prison for his role in schemes to distribute oxycodone, commit health care fraud and commit aggravated identity theft, announced United States Attorney Zane David Memeger. The Honorable Paul S. Diamond, United States District Judge, also ordered Abdulah to pay full restitution to the health care benefit programs that the defendant and his co-conspirators had defrauded, and further ordered Abdulah to serve three years of supervised release upon his release from prison.

On March 18, 2016, a grand jury in Philadelphia returned a second superseding indictment charging Abdulah and a codefendant with conspiring to distribute oxycodone, a Schedule II controlled substance, conspiracy to commit health care fraud and aggravated identity theft. From March 2012 until August 2013, Abdulah forged prescriptions for oxycodone, filled them at pharmacies using stolen health insurance information, then sold the pills on the street. On August 16, 2016, Abdulah pleaded guilty to all charges against him in the indictment.

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

Angel Miguel Jorge-Jimenez, 26, of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about October 18, 2016, Jorge-Jimenez, 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 21, 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 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.

William Joseph Boyle, 47, of Bala Cynwyd, Pennsylvania, was sentenced today to 78 months and ordered to pay $429,000 in restitution, 3 years supervised release, $1000 special assessment, and forfeiture of $415,000.  following his convictions on five counts of mail fraud, three counts of wire fraud, one count of securities fraud, and one count of investment adviser fraud, announced United States Attorney Zane David Memeger.

Boyle had previously pled guilty and admitted that he continued to hold himself out as a stock broker and investment adviser even after his licenses were suspended and after he was permanently barred by FINRA from working as a stock broker or otherwise associating with a firm that sold securities to the public. Boyle also admitted that he failed to disclosing to his clients that he had been barred and his licenses suspended, and also that he defrauded clients, most of whom were elderly, out of over $400,000, convincing them to invest with him and utilize his services as a financial adviser and promising to invest their money in stocks, Pennsylvania municipal bonds, interest bearing investments, and real estate, while in reality Boyle spent almost all of their money on himself, including giving client money to his wife and ex-wife, paying his children’s Catholic school tuition, and purchasing, renovating, and operating a bar called “The Blarney South Bar and Grille,” located on South Street in Philadelphia (which Boyle renamed “The Boyler Room,” after himself).

At the sentencing hearing, several of Boyle’s victims spoke about the economic and emotional harm they suffered as a result of Boyle’s fraud.

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

Adam Flanagan, of Bala Cynwyd was charged on November 22, 2016, by Indictment[1] with twelve counts of damaging protected computers announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible sentence of 90 years’ imprisonment, up to 3 years of supervised release after release from prison, a $3,000,000 dollar fine, and a $1200 special assessment.

Flanagan is charged with accessing computers that remotely read water meters installed by his previous employer and changing passwords and radio transmission frequencies, rendering the computers inoperable.  

The case was investigated by Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael L. Levy.

 

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

PHILADELPHIA – Zane David Memeger, United States Attorney for the Eastern District of Pennsylvania (EDPA), has announced his resignation effective midnight on December 23rd.   U.S. Attorney Memeger has served as the U.S. Attorney for the Eastern District of Pennsylvania since May 6, 2010.

“It has been the highest honor and most fulfilling duty of my legal career to have served as the United States Attorney for the Eastern District of Pennsylvania,” said U.S. Attorney Memeger.  “Having served in this challenging and demanding job for the last six and a half years, the time has come for me to step away to focus on my family and explore new opportunities in the private sector.”

During his tenure as United States Attorney, Mr. Memeger expanded the office’s core enforcement mission by implementing novel youth crime prevention and prisoner reentry programs as part of a three-part strategy to combat violent crime in Philadelphia.  Those efforts included a partnership with Strawberry Mansion High School, the implementation of restorative justice “youth courts” in schools to deal with minor disciplinary infractions, and the development of the reentry film “Pull of Gravity.”   Additionally, Mr. Memeger served for three-years (2014-16) on the Attorney General’s Advisory Committee (AGAC), a national committee established in 1973 to serve as the voice of the United States Attorneys and advise the Attorney General on legal and policy issues that impact U.S. Attorneys’ Offices nationwide.  In that capacity, he also chaired the AGAC’s Health Care Fraud Working Group.

With a focus on prosecuting cases involving national security, public corruption, healthcare and financial fraud, civil rights, large scale dangerous drug dealing, violent crime, child exploitation, and offenses against other vulnerable victims, some of the signature achievements during his tenure include:

• Secured guilty pleas from Colleen Larose, a/k/a “Jihad Jane,” Mohamed Hassan Khalid, and Jamie Paulin Ramirez for conspiring to provide material support to terrorist groups in South Asia and Europe by soliciting funds for terrorists, soliciting passports and travel documents for terrorists, and recruiting men and women in an effort to wage violent jihad. 
   
• Secured a guilty plea and a 15-year sentence for Siarhei Baltuski, an international arms smuggler for violating the Arms Export Control Act by organizing a network of buyers in the United States to obtain and illegally export to Belarus high-tech military hardware such as Scorpion Thermal Weapon Sights and other night vision targeting devices.
   
• Secured a guilty verdict against then U.S. Congressman Chaka Fattah, Sr. and four criminal associates for RICO conspiracy and related public corruption offenses involving the misuse of campaign and grant funds, bribery, and money laundering.
   
• Secured convictions and prison sentences against several municipal court and traffic court judges who fixed cases and obstructed justice by lying to federal agents and the grand jury.
   
• Secured convictions and prison sentences against more than 25 police and law enforcement officers who abused their authority by engaging in acts of theft, extortion, drug trafficking, and obstruction of justice.
   
• Secured convictions of Joseph Dougherty, a high-level union official with Ironworkers Local 401, and 10 union members and associates who were sentenced to significant prison terms for engaging in a RICO conspiracy involving a systematic pattern of extortion, arson, and assault to force non-union companies to hire union workers.
   
• Secured convictions and prison sentences against Anthony DeMarco and his co-conspirators who operated a multi-million dollar mortgage fraud scheme that victimized homeowners facing eviction. Also obtained a civil injunction stopping the foreclosures.
   
• Secured convictions in multiple identity theft rings, including Miguel Bell, sentenced to 15 years in prison, who along with ten bank employees, a car dealership employee, and eight check runners and other recruiters, attempted to steal more than $2 million dollars from his victims’ bank accounts. 
   
• Resolved off-label marketing allegations for Risperdal against Johnson & Johnson (J&J) and its subsidiary Janssen Pharmaceuticals, Inc. through a misdemeanor guilty plea and a False Claims Act (FCA) settlement, contributing $1.6 billion to a Department-wide global settlement of $2.2 billion against J&J.  The EDPA’s Risperdal resolution was the largest single drug settlement to date.
   
• Secured a $38 million dollar settlement with Extendicare Health Services Inc. to resolve FCA allegations related to deficiencies in the operation of its skilled nursing homes.
   
• Secured misdemeanor guilty pleas and prison sentences for four corporate executives at Synthes Inc. who violated federal drug laws by failing to stop illegal clinical trials of Norian XR bone cement, resulting in three patient deaths.
   
• Secured the conviction of the Botsvynyuk Brothers who were sentenced to prison terms of 20 years to life imprisonment for operating a human trafficking organization that smuggled young Ukranian immigrants into the United States and used physical force, threats of force, sexual assault, and debt bondage to keep the victims in involuntary solitude.
   
• Secured a life sentence for Linda Weston who pled guilty to running a criminal enterprise that held disabled adults in dungeon like conditions in order to steal their social security benefits, two of whom died while in her captivity.
   
• Obtained a consent decree with the School District of Philadelphia requiring that the school district take affirmative steps to address and prevent anti-Asian immigrant violence at South Philadelphia High School.
   
• Conducted a review of 25 of the most popular restaurants in Philadelphia to determine and ensure compliance with the Americans with Disabilities Act (ADA).
   
• Secured a 25-year sentence for Dr. Norman Werther who was convicted by a jury of running a multi-million dollar pill mill operation that illegally distributed more than 700,000 pills containing oxycodone, and was also convicted of causing the death of a patient through his illegal distribution of oxycodone.
   
• Secured convictions and prison sentences ranging from 15 years to life imprisonment for more than a hundred armed career criminals and violent criminals who sold drugs and committed violent robberies with guns.
   
• Secured a death penalty sentence for Kaboni Savage who was convicted by a jury of killing 12 people, including killing the family of a cooperating witness by firebombing their home.
   

As of December 24th, Louis D. Lappen will assume leadership of the office as Acting U.S. Attorney.   Mr. Lappen is currently the First Assistant U.S. Attorney and has served in the Department of Justice since 1997.  He is a graduate of the University of Pennsylvania and the Duke University School of Law.

PHILADELPHIA – Shawn Hilliard, 30, of the Bronx, New York, was sentenced today to 12 years in prison for his role as a ringleader of a nationwide bank fraud organization which stole more than $1.3 million from customers’ accounts.  In addition to the prison term, U.S. District Court Judge C. Darnell Jones, II, ordered 3 years of supervised release, $1.3 million in restitution, and an $800 special assessment.

“Hilliard and his co-conspirators created a nationwide bank fraud organization which corrupted numerous bank employees and convinced them to provide confidential customer account information, including bank account numbers, answers to security questions, and photos of signature cards. The impact of Hilliard’s crimes on his victims is profound and far reaching, as the victims may suffer long lasting consequences of this organization’s criminal activity,” said U.S. Attorney Zane David Memeger. “Today's sentence sends a clear message to those who might commit financial fraud that it will not be tolerated, and to those in positions of trust at our financial institutions, that they must do everything in their power to protect the security of their client’s confidential information."

“HSI aggressively pursues scam artists who defraud unsuspecting victims by stealing sensitive banking information for their own financial gain.  Let this case serve as a reminder to all of the importance of closely monitoring their bank accounts and reporting any unauthorized or suspicious activity within those accounts to their banks as soon as they are detected,” said Marlon Miller, special agent in charge of HSI Philadelphia.  “HSI remains committed to investigating criminals who perpetrate financial crimes like Mr. Hilliard, who, in this case, defrauded hundreds of victims across the United States.  Today, Mr. Hilliard has been held accountable for his actions.”

Hilliard and his co-conspirators used a network of dozens of imposters to take over the compromised bank accounts and withdraw thousands of dollars in cash.  Hilliard used the information provided by the corrupt bank employees to defeat the banks’ security measures.  Hilliard and others then took road trips around the country to Chicago, Dallas, Miami, and elsewhere withdrawing funds from the compromised accounts.  Hilliard and his co-conspirators employed drivers and handlers to transport the imposters from bank to bank and collect the stolen funds.

To date, ten members of the organization including two bank employees have pleaded guilty in federal court.  Numerous other members of the organization have pleaded guilty in state court around the country.

The case was investigated jointly by the Department of Homeland Security, Homeland Security Investigations, the United States Secret Service, and the New Jersey Attorney General’s Office with assistance from the Philadelphia Police.  It is being prosecuted by Assistant United States Attorney Robert Livermore.

 

Cristhian Guerrero-Alvarez, a/k/a “Raul Hernandez,” of Warrington, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about October 18, 2016, Guerrero-Alvarez, 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 August 18, 2008, February 24, 2011, March 28, 2011, April 3, 2011, April 15, 2011, July 8, 2015, January 27, 2016, and June 15, 2016.

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 Sean P. McDonnell.

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

 

 

Ruben Dario Pena-Ortiz, 43, a/k/a “Willie Diaz Rosa,” a/k/a “Lorenzo Echavaria,” of Allentown, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about June 1, 2016, Pena-Ortiz, 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 August 8, 2004 and November 19, 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 Katherine E. Driscoll.

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

David Haisten, 51, and Judy Haisten, 51, both of Irmo, South Carolina, were charged by Indictment, unsealed yesterday, with one count of conspiracy, six counts of violating the Federal Insecticide, Fungicide, and Rodenticide Act, five counts of distributing misbranded animal drugs, and three counts of trafficking in counterfeit goods, announced United States Attorney Zane David Memeger.  According to the Indictment[1], the defendants operated an online business that sold unregistered and misbranded pet pesticides, misbranded animal drugs, and counterfeit DVDs. 

If convicted, the defendants face a maximum possible sentence of 54 years imprisonment, a 3‑year period of supervised release, a $7,850,000 fine, and a $950 special assessment. 

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

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

 

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

Brian Hartline, 52, of Collegeville, PA, was sentenced today by U.S. District Court Judge C. Darnell Jones, II, to a term of imprisonment of 14 months and fined $50,000 for his role in a fraud conspiracy to obtain $13.5 million in public funds for NOVA Bank. On April 27, 2016, Hartline and co-defendant Barry Bekkedam 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 co-defendant 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.

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. This case was prosecuted by Assistant United States Attorney David J. Ignall.

 

Armond Suber, 28, of Philadelphia, Pennsylvania, was charged today by indictment with committing a bank robbery, announced United States Attorney Zane David Memeger. According to the indictment, Suber robbed the Citizens Bank branch located at 4949 North Broad Street on October 8, 2016. 

If convicted, he faces approximately 77 to 96 months’ imprisonment, a fine of up to $250,000, a special assessment of $100, and up to three years of supervised release.

The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney José R. Arteaga.

Brent Kopenhaver, 61, of Doylestown, Pennsylvania, was charged by Indictment with three counts of filing false tax returns and two counts of wire fraud, announced United States Attorney Zane David Memeger.

According to the Indictment, Kopenhaver failed to report to the IRS more than $400,000 in income that he earned between 2011 through 2013.  The indictment further alleges that while Kopenhaver was earning this income, he applied for and obtained approximately $40,000 in unemployment compensation benefits, which were funded by the Pennsylvania and United States governments.

Kopenhaver allegedly earned six-figure annual salaries as the chief financial officer of Micro Loan Management, Division A (“Micro Loan”), and Sequoia Tribal Management Services, Inc. (“STMS”), hid that income from the IRS, and simultaneously obtained unemployment compensation benefits.  Both Micro Loan and STMS have been identified in a separate indictment as belonging to an alleged RICO enterprise that allegedly collected unlawful debt through payday lending (docketed as United States v. Charles M. Hallinan, et al., Crim. No. 16-130).

If convicted, Kopenhaver faces a maximum possible sentence of 49 years’ imprisonment, three years’ supervised release, a fine of $800,000, and a $500 special assessment.

The case was investigated by the Internal Revenue Service, the United States Department of Labor, and the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and James A. Petkun.                                                                           

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

Brian Wright, 40, of Philadelphia, PA, was sentenced to 21 years and 10 months in prison today following his guilty plea to three counts of sex trafficking by force, announced US Attorney Zane David Memeger. The Honorable C. Darnell Jones II also sentenced Wright to 20 years' supervised release, and to pay a $5000 fine, $631,000 in restitution jointly and severally with his co-defendants, and a $300 special assessment.

In the same case, Judge Jones also sentenced Renato Teixeira, 26, of Philadelphia, following his guilty plea to three counts of sex trafficking  by force, to 8 1/2 years in prison, 20 years' supervised release, and to pay a $1000 fine, $631,500 in restitution jointly and severally with his co-defendants, and a $300 special assessment.

According to court testimony, between 2010 and 2013, the defendant and his three co-defendants operated a prostitution website known as "Passionate Touch," which advertised females whom the defendants harbored in a brothel at a leased property in West Philadelphia known as "Club Passions."  At that location, they caused numerous females ages 18-19 to engage in prostitution through the use of sadistic acts of torture and sexual violence. The defendants recruited the young women by passing out business cards on the streets of West Philadelphia offering the opportunity to earn money through striptease dancing. Co-defendant Kevino Graham then kept all of the women's earnings from prostitution. Co-defendants Kevino Graham and Raffael Robinson were convicted by a jury in February 2016 and await sentencing.

This case was investigated by the Federal Bureau of Investigation with the assistance of the Philadelphia Police Department Special Victim's Unit and the Philadelphia District Attorney's Office. It is being prosecuted by Assistant U.S. Attorney Michelle L. Morgan.

Barry Horrow, 68, of Glenn Mills, pled guilty today to 4 counts of bank fraud, announced United States Attorney Zane David Memeger.

As part of his guilty plea, Horrow, a Certified Public Accountant who owned and operated his own accounting company, Horrow and Associates, which operated in both Delaware and Chester Counties, admitted that he committed bank fraud by helping one of his clients, George Barnard of Newtown Square (who owned Capital Financial Mortgage Corporation ("CFMC") and who was charged previously in an indictment with various offenses stemming from a $13 million fraud scheme who owned) to defraud lenders into issuing mortgages for 3 multi-million dollar New Jersey Shore beach mansions and a yacht based on false tax returns, false audit reports, and other false information. Horrow admitted that he repeatedly provided false tax returns for Barnard to submit to lenders on which Horrow inflated Barnard’s income by hundreds of thousands of dollars, when Horrow knew that the lenders were going to be relying upon the inflated income figures in approving Barnard’s loan requests.

Horrow faces a maximum sentence of 120 years’ imprisonment, a five-year period of supervised release, a $4,000,000 fine, a $400 special assessment, and a likely advisory sentencing guideline range of 41 – 51 months’ imprisonment. Horrow also agreed, as part of his plea, to make restitution of over $2,965,000.

The case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development, Office of Inspector General, and the Internal Revenue Service, Criminal Investigative Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

The United States announces that it has settled allegations under the False Claims Act with Albert Einstein Healthcare Network and the Einstein Practice Plan for improperly billing Medicare for services submitted on behalf of a cardiologist. The Einstein defendants voluntarily disclosed the allegations and have agreed to pay $968,418.60 to resolve the matter. The cardiologist no longer works for the Einstein defendants. 

According to the self-disclosure and the investigation that followed, between October 15, 2010 and January 9, 2012, bills were submitted to Medicare for services performed by the cardiologist which the United States alleges were not medically necessary or lacked sufficient documentation, resulting in overpayments to Einstein. The United States alleges that false claims were submitted to the government. After it discovered the problem, the Einstein defendants took corrective action to resolve the improper payments, and disclosed the matter to the United States Attorney’s Office.

This matter was handled by Department Health and Human Services Office of the Inspector General, including Attorney Katherine Matos, and Assistant United States Attorney Susan Dein Bricklin and Auditor George Niedzwicki.

United States Attorney Zane David Memeger announced today that Assistant United States Attorney (AUSA) Tomika N.S. Patterson will lead the efforts of the Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections.  AUSA Tomika N.S. Patterson has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Pennsylvania and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

United States Attorney Zane David Memeger said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud.  The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Zane David Memeger stated that AUSA/DEO Tomika N.S. Patterson will be on duty in this District while the polls are open.  She can be reached by the public at the following telephone numbers: (215) 861-8200.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

United States Attorney Zane David Memeger said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.

Dominique Washington, 27, of Philadelphia, PA was charged today by Indictment Complaint with conspiracy, access device fraud and aggravated identity theft, in a scheme, involving numerous individuals, in which fraudulent Sears credit accounts were opened in victims’ names and co-conspirators, whose names were added as authorized users to those accounts, then made fraudulent purchases with those credit accounts at Sears and Kmart stores announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible sentence of 19 years imprisonment, a $1,000,000 fine and a $400 special assessment

The case was investigated by 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.

Jose Gonzalez, age 34, of Glen Mills, Delaware County, Pennsylvania, was sentenced today in federal court on two counts of manufacturing child pornography, one count of distribution of child pornography, and one count of possession of child pornography, announced United States Attorney Zane David Memeger. The Honorable John R. Padova sentenced Gonzalez to 420 months’ incarceration and lifetime supervised release for crimes involving Gonzalez’ sexual abuse of a two-year old toddler.  Gonzalez photographed his sexual abuse of this child and distributed the images over the Internet.  The investigation also uncovered his collection of more than 19,000 images and videos of infants and toddlers being sexually assaulted that Gonzalez downloaded from the Internet. 

The case was investigated by the Federal Bureau of Investigation, assisted by the Delaware County District Attorney’s Office, and was prosecuted by Assistant United States Attorney Michelle Rotella.

Sharif Gray, 25 of Easton, Pennsylvania, was charged today by Indictment with one count of possession with intent to distribute controlled substances, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of convicted felon in possession of a firearm, in violation, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli.

Gray is alleged to have knowingly possessed a loaded Bersa .380 caliber semi-automatic pistol and 30 grams of methamphetamine with intent to distribute on March 1, 2016, in the City of Easton. Gray also possessed the loaded Bersa .380 caliber semi-automatic pistol after having previously been convicted in a court of the Commonwealth of Pennsylvania of a crime punishable by imprisonment for a term exceeding one year.

If convicted, defendant faces a total maximum penalty of life imprisonment, with a mandatory minimum of 10 years’ imprisonment consecutive to any other sentence imposed and up to a lifetime of supervised release, with a mandatory minimum of 4 years’ of supervised release, a $4,500,000 fine, and a $300 special assessment.

The case was investigated by the Federal Bureau of Investigation, Allentown Division, the Northampton County District Attorney’s Office, and the City of Easton Police Department, and is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein and Assistant United States Attorney Kishan Nair.

The following people were charged by Information today with unlawfully entering restricted grounds surrounding the Democratic National Convention while the President was in attendance, in violation of 18 U.S.C. 1752(a)(1), announced United States Attorney Zane David Memeger.

Name Age City and State of Residence Travis G. Martin 29 Houston, TX Lincoln E. Bohn 24 Manteca, CA Jacob J. Van Buskirk 34 Tacoma, WA Danny E. Nguyen 19 Gaithersburg, MD Natalie M. Fraver 27 Portland, OR Megan T. Munk 27 Forks, WA

 If convicted, each defendant faces a maximum possible sentence of one year imprisonment.

The case was investigated by Department of Homeland Security and is being prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.

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

Jeffrey Curtis Drexler, age 27, of Northampton County, Pennsylvania, was charged today by Indictment with one count of Possession of Child Pornography, announced United States Attorney Zane David Memeger.  The defendant was previously convicted in Northampton County Court of Common Pleas of Sexual Abuse of Children, and was registered as a sex offender under Megan’s Law at the time that he is charged with committing these federal offenses.

If convicted the defendant faces a maximum possible sentence of 20 years’ imprisonment with a 10-year minimum mandatory term of incarceration, a $250,000 fine, 5 years up to a lifetime of supervised release, and a $100 special assessment. 

The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Michelle Rotella.

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

Marquise Bell, 25, of Philadelphia, Pennsylvania was charged today by Indictment[1] with possession of ammunition by a convicted felon, announced United States Attorney Zane David Memeger.

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

The case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Yvonne Osirim.

 

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

Kenneth Duffy, 64, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger.  According to the Information[1], the defendant received retirement benefits intended for his mother, after his mother’s death in January 1997 until his fraud was discovered in August 2016.  The defendant’s alleged actions resulted in a loss to the government of approximately $235,995.          

If convicted, the defendant faces a substantial period of incarceration, a 3‑year period of supervised release, restitution to the government of $235,995, 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 – The YMCA of Reading & Berks County has entered into a settlement agreement with the United States to resolve an allegation that a YMCA facility located at 631 Washington Street in Reading, Pennsylvania, contains architectural barriers in violation of the Americans with Disabilities Act.  

The settlement arises out of a complaint that the United States received alleging that the YMCA’s facility on Washington Street is not accessible to individuals who have mobility impairments.  After conducting an investigation, the United States identified architectural barriers to access relating to a parking area, entrance signs, swimming pool lift, and a restroom facility.

To resolve the matter, the YMCA of Reading & Berks County has agreed to modify the facility’s family-friendly restroom in a manner that complies with the applicable standards for accessible design under the Americans with Disabilities Act.  The YMCA of Reading & Berks County has also agreed provide a van accessible parking space located on the shortest accessible route to the facility’s entrance ramp and to install a directional sign indicating the location of an accessible entrance at all inaccessible entrances at the facility.  In addition, the YMCA of Reading & Berks County has agreed to install a vertical sign identifying the accessible parking spaces, and a directional sign indicating the location of the facility’s accessible toilet/bathing room at all inaccessible toilet/bathing rooms.  The YMCA of Reading & Berks County has further agreed to install a new swimming pool lift that complies with the standards for accessible design.

The YMCA of Reading & Berks County agreed to take these actions on a timetable, and the United States reserved its right to review the facility’s compliance at any time.       

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 Michael S. Macko.

PHILADELPHIA – Today, a federal judge sentenced Joseph Mitchell, Sr., 40 to 9 years in prison for his role in a prescription pill mill that trafficked oxycodone and other dangerous and addictive opioids.  United States District Court Judge Nitza I. Quiñones Alejandro also ordered the defendant to serve 3 years of supervised release upon release from prison, and pay a special assessment of $100. The court also entered a judgment of forfeiture.

On July 14, 2015, a grand jury in Philadelphia charged Mitchell, along William O’Brien, a former doctor of osteopathic medicine, and eight codefendants with conspiring to distribute controlled substances.  Mitchell was a member of the Pagans Motorcycle Club (“Pagans”), an outlaw biker gang known for violence and drug dealing.  O’Brien worked together with 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.  The remaining codefendants in the case have pleaded guilty and 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.

An Indictment1 was returned today charging Charles Richard Boehm, 46, formerly of Erie, Pennsylvania, with two counts of bank robbery, announced United States Attorney Zane David Memeger.

The indictment alleges that Boehm robbed a TD Bank branch in Philadelphia on August 12, 2016, and later robbed a PNC Bank branch in Philadelphia on September 16, 2016.

Boehm faces a maximum sentence of 40 years’ imprisonment, a three-year period of supervised release, a $500,000 fine, and a $200 special assessment.

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

Keith Tostevin, 52, of Breinigsville, Pennslyvania was charged today by Information1 with the transportation and possession of child pornography, announced United States Attorney Zane David Memeger.

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

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

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

Matthew Simineri, age 21 of Bangor, Pennsylvania, was charged today by Indictment1 with one count of Enticement of a Minor to Engage in Illicit Sexual Conduct, four counts of Manufacturing Child Pornography, four counts of Receipt of Child Pornography, and one count of Transfer of Obscene Material to a Minor, announced United States Attorney Zane David Memeger. The charges arose out of the defendant’s online communications with a 9-year old autistic girl. 

If convicted the defendant faces a maximum possible sentence of life imprisonment with a 15-year minimum mandatory term of incarceration, a $2,000,000 fine, 5 years up to a lifetime of supervised release, and a $2,000 special assessment. 

The case was investigated by the Spokane County Sheriff’s Department in Washington, the Berks County District Attorney’s Office in Pennsylvania, and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michelle Rotella.

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