Eastern District of Pennsylvania

PHILADELPHIA - Michael Donnelly, 47, of Lecanto, Florida, was sentenced today to 99 months in prison for an investment scheme that bilked his friends and clients of nearly $2 million.  Donnelly pleaded guilty on December 21, 2015, to one count of wire fraud and with one count of securities fraud. In addition to the prison term, U.S. District Court Judge Edward G. Smith ordered restitution in the amount of $1,990,150.24, three years of supervised release, and a $200 special assessment.

Donnelly was an investment advisor and registered representative who served as president of Donnelly, Steen & Company, doing business as Coastal Investment Advisors, Inc., Coastal Equities, Inc., and Donnelly Advisors Group, which he also owned.  Between November 2007 and August of 2014, Donnelly persuaded about a dozen investors, many of whom were senior citizens, to allow him to invest their money in securities or certificates of deposit. But instead of investing his clients’ money, Donnelly appropriated the investment funds for his own use.

Donnelly provided at least one client with brokerage account statements belonging to another client who held dozens of large cap stocks, in an effort to conceal that he had appropriated the monies for his own use.  When an investing couple asked Donnelly for their funds, he persuaded another investor to partially liquidate an annuity under the guise that there was an opportunity to buy out another investor.  His plan was to use those funds to pay the investing couple rather than buying out an investment held by another client.

The case was investigated by the FBI with assistance from the Securities and Exchange Commission Division of Enforcement. It was prosecuted by Assistant U.S. Attorney Linwood C. Wright, Jr.

PHILADELPHIA – Madeline Rosario, 25, and Maribel Nunez, 58, both of Philadelphia, PA, were charged by indictment, unsealed today, in an aggravated identity theft scheme to defraud the IRS, announced United States Attorney Zane David Memeger. Rosario is charged with conspiracy, theft of government property and aggravated identity theft. Her mother is charged with conspiracy and theft of government property.

According to the indictment, between November of 2010 and March of 2014, the defendants controlled five business accounts at Wachovia/Wells Fargo bank for the purpose of depositing fraudulently obtained United States Treasury refund checks and 3rd party refund checks. It is alleged that they conspired with others, to commit theft of government funds and knowingly converted to their own approximately 84 fraudulent tax refund U.S. Treasury checks totaling approximately $439,843.69. Rosario and Nunez allegedly opened and controlled the five business accounts at Wachovia/Wells Fargo Bank. The accounts were then used for depositing the fraudulently obtained tax refund checks.

If convicted, Rosario faces a two year mandatory minimum sentence with a statutory maximum sentence of 15 years and a $300 special assessment; Nunez faces a maximum statutory sentence of 15 years and a $200 special assessment. Both defendants could also face fines and a period of supervised release.

The case was investigated by IRS Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Maureen McCartney.

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

PHILADELPHIA – Andrew Ahn, 41, of Columbia, Missouri, was sentenced today to 30 months in prison while his co-conspirator, Aviel Faliks, 41, of New York, New York, was sentenced to a year and a day for a multi-million dollar tax fraud scheme.  In addition to the prison terms, U.S. District Court Judge Berle M. Schiller ordered Faliks to sell his apartment worth approximately $6.5 million and use half of the proceeds to pay restitution in the amount of $48,457,370 to the IRS.  Judge Schiller also ordered Ahn to pay restitution of $113,537,679.

Between at least 2003 and 2011, the defendants, with several co-conspirators, designed and implemented a scheme to evade more than $200 million in corporate taxes by purchasing companies with taxable gains and using fraudulent losses to wipe out the gains. The conspirators then pocketed the corporations’ cash, filed fraudulent returns, and, in some instances, fraudulently sought and obtained refunds from the IRS for prior years. The defendants implemented their fraud scheme through four basic steps: (1) initial purchasers---including MidCoast Financial Inc., a company owned by defendant Chandrakant Shah and operated by defendant Samyak Veera---purchased target corporations with cash assets and large anticipated corporate income tax liabilities; (2) the initial purchasers next transferred these target corporations to “straw buyers” controlled on paper by Andrew Ahn and Aviel Faliks for the benefit of Veera; (3) the defendants then evaded the corporations’ income taxes through the use of fraudulent transactions designed to create the illusion that the corporations had incurred capital and ordinary losses; and (4) finally, the defendants distributed proceeds of the scheme through disguised means.

During the course of the conspiracy, Ahn and Faliks took various actions in furtherance of the conspiracy.  For example, both Ahn and Faliks signed false and misleading documentation regarding the transactions, caused fraudulent corporate income tax returns to be filed, and made misrepresentations to the IRS regarding the scheme.  In addition, both defendants held themselves out as independent, arms-length participants in the transactions and hid Veera’s role as the architect of the scheme from the IRS and others.

Faliks pleaded guilty on July 27, 2015, to one count of conspiracy and one count of corruptly endeavoring to obstruct and impede the Internal Revenue laws; Ahn pleaded guilty on August 30, 2012, to one count of corruptly endeavoring to obstruct and impede the Internal Revenue laws and one count of structuring transactions.  Co-defendant Eric Merl, the in-house counsel for MidCoast Financial, pleaded guilty on October 31, 2013, to one count of conspiracy and one count of making a false statement.  Merl was sentenced to 24 months in prison on February 22, 2016 by Judge Schiller.

The case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Patrick J. Murray and James Petkun.

PHILADELPHIA – Charles M. Hallinan, 75, of Villanova, PA, and Wheeler K. Neff, 67, of Wilmington, DE, were charged by indictment, unsealed today, with two counts of conspiracy to violate the Racketeering Influenced and Corrupt Organizations Act (“RICO”) relating to “payday lending” businesses, announced United States Attorney Zane David Memeger. A third defendant, Randall Ginger, 66, a Canadian citizen, was charged with Hallinan and Neff in one count of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as two counts of mail fraud and three counts of wire fraud.  Hallinan and Ginger were also charged with nine counts of international money laundering.

According to the indictment, Hallinan and Neff participated in a conspiracy that violated the usury laws of Pennsylvania and other states and generated more than $688 million in revenues, between 2008 and 2013, from hundreds of thousands of customers, including residents of Pennsylvania which prohibits such loans. It is further alleged that Hallinan, Neff, and Ginger conspired to defraud nearly 1,400 people, who had sued one of Hallinan’s payday loan companies, into abandoning a lawsuit valued as high as $10 million.

Hallinan owned, operated, financed, and/or worked for more than a dozen businesses between 1997 and 2013 that issued and collected debt from small, short-term loans that were commonly known as “payday loans” because the customers were supposed to pay them back with their next paychecks.  Hallinan’s companies allegedly charged customers about $30 for every $100 they borrowed, which meant that the annual interest rates on the loans often exceeded 700 percent. Pennsylvania and more than a dozen other states have passed laws criminalizing such loans as usurious. The indictment alleges that Hallinan and Neff conspired to evade such laws by, among other things, paying thousands of dollars each month to three Indian tribes to pretend that they were the actual payday lenders and claim that “tribal sovereign immunity” shielded their conduct from state laws and regulations.

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

Ginger, it is alleged, claimed to be a “hereditary chief” of one of the tribes that Hallinan and Neff used to try to hide Hallinan’s payday lending activity from state law enforcement officers and regulators.  In 2010, a class action lawsuit was filed in Indiana against Apex 1 Processing, a payday lending company that Hallinan ran out of offices in Bala Cynwyd, Pennsylvania.  According to the indictment, Hallinan offered to pay Ginger $10,000 every month to pretend that he owned Apex 1 and that Apex 1 had no assets, so the plaintiffs would settle their lawsuit for pennies on the dollar.  Neff allegedly facilitated that scheme.

If convicted of all charges, Hallinan faces a possible advisory sentencing guideline range of at least 12 years in prison, three years of supervised release, a possible fine, and a $1,700 special assessment. Neff and Ginger both face sentencing guideline ranges of at least eight years in prison. Restitution may also be ordered.

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

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

PHILADELPHIA – An indictment was filed today charging Albert Fisher, 76, of Quakertown, PA, with conspiring to defraud fraternities, sororities and fraternity alumni associations at Lehigh University, announced United States Attorney Zane David Memeger.  The defendant is charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and five counts of subscribing to false tax returns.  

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

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

If convicted, Fisher faces a maximum possible sentence of 50 years in prison, up to three years of supervised release, restitution, a possible fine, and a $700 special assessment.

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

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

PHILADELPHIA - David Robinson, 42, of Philadelphia, PA, was charged today by indictment with two counts of bank robbery, announced United States Attorney Zane David Memeger. 

According to the indictment, on March 19, 2016, Robinson robbed the PNC Bank at 4753 N. Broad Street in Philadelphia, of approximately $3,020.  It is further alleged that on March 21, 2016, Robinson robbed the PNC Bank at 3244 N. Broad Street in Philadelphia, of $1,190.

If convicted of all charges, Robinson faces a maximum sentence of 40 years in prison, a possible fine, up to three years of supervised release, and a $200 special assessment. 

This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.

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

PHILADELPHIA - Michael Sullivan, 51, of Philadelphia, was sentenced today to 10 months in prison for one count of failure to report and pay payroll taxes.  Sullivan had failed to report and pay payroll taxes for employees of the Fireside Tavern, South Marshall Street, Philadelphia. Sullivan was an owner and operator of the Tavern.  Sullivan was a judge for the former Philadelphia Traffic Court.

Sullivan pleaded guilty to the charge on October 20, 2015.  In addition to the prison term, U.S. District Court Judge Eduardo Robreno ordered restitution in the amount of $58,314, one year of supervised release, and a $25 special assessment.

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

PHILADELPHIA - Donti Hunter, a/k/a Donte Hunter, a/k/a Pumpkin, a/k/a P, 37, and Jaekhon Cook, a/k/a Jae Khahn Cook, 23, both of Philadelphia, PA, were charged by Indictment, unsealed today, in a drug conspiracy, announced United States Attorney Zane David Memeger.  The charges include conspiracy to distribute 28 grams or more of cocaine base, distribution of 28 grams or more of cocaine base, distribution of 28 grams or more of cocaine base within 1,000 feet of a public school, and aiding and abetting, in relation to distribution of more than 28 grams of cocaine base (“crack”).  The case also involves the seizure of approximately 21 grams of cocaine base (“crack”), cash and narcotics packaging and paraphernalia from a home on the 800 block of Preston Street in Philadelphia.  

If convicted, Hunter faces a mandatory minimum of 10 years in prison with a maximum possible sentence of life, at least 16 years of supervised release, a possible fine, and a $700 special assessment; Cook faces a mandatory minimum of five years in prison with a maximum possible sentence of life, at least eight years of supervised release, a possible fine, and a $700 special assessment.  

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

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

PHILADELPHIA - Jeremy Hachey, 23, of Lititz, PA, was charged today by Indictment with receipt and possession of child pornography, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a mandatory minimum sentence of five years in prison, with a maximum possible sentence of 40 years, mandatory minimum of five years of supervised release, a possible fine, and $10,200 special assessment.

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

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

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

PHILADELPHIA – Karim Messaoud, 47, a foreign national of Senegal and Morocco, made his initial appearance today after being extradited from Lebanon to the United States, announced United States Attorney Zane David Memeger. 

In 2005, a federal grand jury handed up a 36-count indictment charging Messaoud with one count of conspiracy to launder monetary instruments, and 35 counts of laundering of monetary instruments.  Messaoud fled the United States shortly after his indictment.  U.S. District Court Judge Paul S. Diamond will preside over the trial.  No date has yet been set.

According to the indictment, from April 2000 through September 2002 Messaoud illegally transferred monies through Western Union and other sources.  At the time he committed these acts, Messaoud believed he was doing so for drug dealers, and that the funds were the proceeds of their drug trafficking.  Messaoud structured the transfers in smaller amounts and in ficitious names to evade United States reporting requirements and to conceal the true source of the funds, and directed his co-conspirator to do the same.  There were 24 illegal transactions by Messaoud totalling $337,500, and between Messaoud and his co-conspirator, a grand total of $407,500 in funds that were illegally transferred.

The extradition of this fugitive was a complex process that involved collaboration between the United States Attorney’s Office in the Eastern District of Pennsylvania and the Department of Justice, Office of International Affairs in Washington D.C., the Federal Bureau of Investigation, the United States Marshal Service, and the Lebanese government. 

This case was investigated by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Michelle Rotella.

The charges and allegations contained in an indictment are merely accusations.  The defendant is presumed innocent until and unless proven guilty.  

PHILADELPHIA – A federal jury, today, returned guilty verdicts against Jean Baptiste Alvarez, a/k/a “Alex,” 43, of Aldan, PA, on charges related to a tax fraud scheme.  Alvarez was found guilty of conspiracy to defraud the United States with respect to false claims, aggravated identity theft, and misuse of Social Security numbers.  U.S. District Court Judge Michael Baylson scheduled a sentencing hearing for July 26, 2016.  Alvarez faces a mandatory minimum sentence of at least two years in prison with a maximum possible sentence of 24 years in prison, up to three years of supervised release, a possible fine, and a $500 special assessment.

According to evidence presented at trial, Alvarez unlawfully provided to Peterson Rene, charged elsewhere, the personal identifying information (PII) of hundreds of real persons. Specifically, the defendant sold Rene patient information labeled “census sheets” that were created by, and kept in the normal course of business, at the Kirkbride Center health care facility where the defendant worked. These “census sheets” list personal identifying information of patients, including names, social security numbers, and dates of birth.  From 2012 through 2015, Alvarez and Rene conspired with others to use the stolen identifying information on tax returns for the purpose of obtaining payment of false, fictitious, and fraudulent refunds.

The case was investigated by IRS Criminal Investigations, the Federal Bureau of Investigation, and the Social Security Administration Office of Inspector General.  It is being prosecuted by Assistant United States Attorney Terri A. Marinari and DOJ Tax Division Trial Attorney Ann M. Cherry.

PHILADELPHIA – An indictment was filed today charging Jose Ramon Liriano-Compres, 53, of Philadelphia, PA, with one count of conspiracy to distribute heroin and three counts of distribution of heroin, announced United States Attorney Zane David Memeger.

Liriano-Compres and another individual, charged elsewhere, were allegedly part of a heroin conspiracy. According to the indictment, on three separate occasions in June of 2015, Liriano-Compres distributed over 300 grams of heroin in Philadelphia.

If convicted, Liriano-Compres faces a mandatory minimum of 10 years in prison with a maximum possible sentence of life, a $400 special assessment, up to eight years of supervised release, and a potential fine.  

This case was investigated by the FBI and the Department of Homeland Security. It is being prosecuted by Assistant United States Attorney Clare Putnam Pozos.

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

PHILADELPHIA - Lars Jepsen, 38, formerly of Deptford, NJ, was sentenced yesterday to five months in prison for hacking his former employer’s computers.  He pleaded guilty on October 29, 2015, to knowingly causing damage to a protected computer and knowingly using the means of identification of another person with intent to commit a crime.  In addition to the prison term, U.S. District Court Judge Joseph F. Leeson, Jr., ordered three years of supervised release, with the first six months in home confinement, a $3,000 fine, a $200 special assessment, and restitution of $9,500.

Jepsen damaged the computers of his former employer, after he had been fired. He did this using the username and password of another employee that he had acquired while working on that employee’s company computer. Jepsen drove from his New Jersey home to Allentown, PA, where he found an open Internet access point. He used that location to log into the employer’s network with the other employee’s credentials and then disabled the company’s Voice over Internet Protocol (VOIP) telephone network. The company lost its telephone service for several hours.

The case was investigated by the United States Secret Service, and is being prosecuted by Assistant United States Attorney Michael L. Levy.

PHILADELPHIA – Donald Frey, 31, of Easton, Pennsylvania, was charged yesterday by Indictment with one count of possession of destructive devices, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli.  The defendant is alleged to have knowingly possessed two destructive devices, specifically two pipe bombs, on January 10, 2014, in Lower Saucon Township, in the Eastern District of Pennsylvania.

If convicted, defendant Frey faces a maximum possible sentence of 10 years in prison, three years of supervised release, a possible fine, and a $100 special assessment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives,, the Northampton County District Attorney’s Office, and the Lower Saucon Township Police Department.  It is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein.

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

PHILADELPHIA – Today, the Department of Justice announced the launch of 10 regional Elder Justice Task Forces, including one in the Eastern District of Pennsylvania.  These teams will bring together federal, state and local prosecutors, law enforcement, and agencies that provide services to the elderly, to coordinate and enhance efforts to pursue nursing homes that provide grossly substandard care to their residents. 

The Elder Justice Task Forces will include representatives from the U.S. Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, the Department of Health and Human Services, state Adult Protective Services agencies, Long-Term Care Ombudsman programs and law enforcement.   

“When our seniors enter a nursing home or long-term care facility there is a valid expectation that they will receive reasonable, appropriate and adequate care,” said United States Attorney Zane David Memeger. “Unfortunately, my office has handled far too many cases in recent years where elderly citizens and their families were victimized by care facilities that put profits ahead of serving those expectations. The Elder Care Task Force will allow us to more effectively hold those who are providing substandard care accountable for their reprehensible conduct.”

“Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents. These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”

In addition to the Eastern District of Pennsylvania, Elder Justice Task Forces are being launched in: District of Maryland, Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, Southern District of Ohio, Middle District of Tennessee and the Western District of Washington.

“Too often, our elderly citizens are exploited, many times without their knowledge,” said Special Agent-in-Charge Nick DiGiulio, of Health and Human Services Office of Inspector General. “The formation of this task force brings additional resources to uncover abuses, bring justice to more vulnerable victims, and raise awareness about the repercussions that exist for providing substandard care to the elderly.”

“Pennsylvania’s Medicaid fraud Control Section fully supports this federal undertaking to protect and serve the most vulnerable of citizens,” said Andrew Demarest, Pennsylvania Chief Deputy AG, Medicaid Fraud Control Section.

The Elder Justice Task Forces reflect the Department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the Department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the Department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.

PHILADELPHIA – Steven Kitchell, a/k/a “Lotti,” 37, of Bethlehem, Pennsylvania, was charged by Information, filed yesterday, with one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli. 

According to the information, Kitchell knowingly possessed a .40 caliber Sig Sauer semiautomatic pistol and a variety of controlled substances with intent to distribute them on April 20, 2015, in the City of Bethlehem, in the Eastern District of Pennsylvania.

If convicted of all charges, Kitchell faces a mandatory minimum sentence of five years in prison with a statutory maximum sentence of life in prison, up to a lifetime of supervised release, a possible fine, and a $200 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 Bethlehem Police Department, and is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein and Assistant United States Attorney Kishan Nair.

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

PHILADELPHIA - James J. McCullagh, 60, of Meadowbrook, PA, was sentenced today to 10 months in prison for charges related to the fatal fall of an employee.  McCullagh, who owns James J. McCullagh Roofing, pleaded guilty on December 9, 2015, to four counts of making false statements, one count of obstruction of justice, and one count of willfully violating an Occupational Safety and Health Administration (OSHA) regulation causing death to an employee.  In addition to the prison term, U.S. District Court Judge Nitza I. Quinones Alejandro ordered one year of supervised release, and a $510 special assessment.

On June 21, 2013, one of McCullagh’s employees was killed after falling approximately 45 feet from a roof bracket scaffold while performing roofing work for McCullagh.  McCullagh, failed to provide fall protection equipment to his employees. In connection with the OSHA investigation of the fatality, McCullagh attempted to cover up his failure to provide fall protection by falsely stating, on four occasions, that he had provided fall protection equipment, including safety harnesses, to his employees.  McCullagh knew that he had not provided fall protection to his employees and none of his employees had safety harnesses or any other form of fall protection.  McCullagh told an OSHA Compliance Safety and Health Officer that his employees had been wearing safety harnesses tied off to an anchor point when he saw them earlier in the day prior to the fall.  McCullagh also directed other employees to falsely state that they had fall protection, including safety harnesses, on the day of the fall. 

The case was investigated by the United States Department of Labor-Office of Inspector General Labor Racketeering and Fraud Investigations and the Occupational Safety and Health Administration, with assistance from the U.S. Department of Labor's Occupational Safety and Health Administration and Office of Inspector General.  It is being prosecuted by Assistant United States Attorney Mary Kay Costello. 

PHILADELPHIA - Michael Lees, a/k/a “Michael Lewis,” a/k/a “Michael Dontask,” 39, of Catasaqua, PA, was charged yesterday by indictment with the enticement of a minor, production of child pornography, attempted production of child pornography and possession of child pornography, announced United States Attorney Zane David Memeger.

According to the indictment, between October and December of 2015, Lees contacted, via Internet, a person that he believed was a 12-year old child and enticed that person to engage in sexual activity and to create a visual depiction of that activity.  It is further alleged that Lees possessed a cell phone containing child pornography.

If convicted the defendant faces a mandatory minimum term of 15 years in prison up to life, a mandatory minimum of five years of supervised release, a $500 special assessment, and an additional $25,000 special assessment, and a possible fine.

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

The case was investigated by the FBI and the Office of the Pennsylvania Attorney General. It is being prosecuted by Assistant United States Attorney Sherri A. Stephan.

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

PHILADELPHIA – An indictment was filed today charging Daryl Stevens, 45, of Bethlehem, PA, with four counts of mail fraud, and an information was filed charging Justin Jordan, 34, of East Brunswick, NJ, and Christopher Cook, 40, of Ocean Township, NJ, with multiple counts of mail fraud, in connection with a million-dollar fraud scheme, announced United States Attorney Zane David Memeger.

Jordan and Stevens were employees of “Company A,” which was located in Radnor, Pennsylvania, and provided storeroom management services for industrial, commercial, and educational facilities throughout the United States. Cook was employed by “Company B,” which was international pharmaceutical company based in New York City, New York, with offices in New Brunswick, New Jersey. Company B hired Company A to provide inventory management and purchasing services for Company B’s New Brunswick, New Jersey offices. Jordan and Stevens were working on-site at Company B in their employment with Company A. It is alleged that they, along with Cook, created, registered, and incorporated a total of seven sham vendor companies, obtained mailing addresses for their respective sham vendor companies, and set up and controlled bank accounts for their respective sham vendor companies. Jordan allegedly controlled four of the sham vendor companies; Stevens allegedly controlled two of the sham vendor companies; and Cook allegedly controlled one of the sham vendor companies. 

According to the charging documents, between July 2008 and December 2014, Jordan, Stevens, and Cook caused Company A to purchase bogus and non-existent products on behalf of Company B from the seven sham vendor companies that they controlled. Invoices were submitted by the sham vendor companies to Company A, which caused Company A to pay the sham vendor companies by mailing checks or wiring funds into the bank accounts controlled by the defendants.  Additionally, the defendants allegedly caused Company A to “sell” approximately $1.2 million of bogus product purchased from the defendants’ sham vendor companies to Company B.   

If convicted, each defendant faces a maximum statutory sentence of 20 years in prison per charged count, a special assessment, up to three years of supervised release, and a potential fine.

This case was investigated by the FBI. It is being prosecuted by Assistant United States Attorney James Petkun.

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

PHILADELPHIA - Marcos Arana, 44, of Reading, 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 February 29, 2016, Arana, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about September 5, 2000.

If convicted the defendant faces a maximum possible sentence of 20 years in prison.

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

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

PHILADELPHIA – Dupree Myers, 27, previously employed at Curran-Fromhold Correctional Facility (“CFCF”), pleaded guilty today to attempted extortion which interfered with interstate commerce and attempted distribution of controlled substances. Myers agreed to deliver OxyContin pills and a cellphone to a prisoner in exchange for $1,000. U.S. District Court Judge Wendy Beetlestone scheduled a sentencing hearing for June 23, 2016. Myers faces a statutory maximum sentence of 40 years, plus supervised release, a special assessment, and a possible fine.

To obtain the contraband and payment, Myers arranged a meeting with the inmate’s purported associate at a location in Philadelphia. During the ensuing meeting, the inmate’s purported associate handed the contraband and cash payment to Myers, and Myers subsequently smuggled the contraband past prison security and delivered it to an inmate.

Myers was one of six prison guards charged by separate, unrelated indictments.  Each of the officers from within the Philadelphia Prison System was charged with smuggling drugs and/or cell phones to inmates in exchange for money. To date, in addition to Myers, guilty pleas have been entered in separate, related cases by: George Kindle, a former correctional officer at The House of Corrections; Marc Thompson, a former correctional officer at The House of Corrections; John Wesley Herder, a former correctional officer at the Curran-Fromhold Correctional Facility; Joseph Romano, a former correctional officer at The Philadelphia Industrial Correctional Center. Defendant Bryant Fields, a former correctional officer at The Detention Center, is awaiting trial.

The case was investigated by the FBI and the Philadelphia Department of Corrections with assistance from the Philadelphia Police Department’s Prison Intelligence Group. It is being prosecuted by Assistant United States Attorney Kevin Brenner.

PHILADELPHIA - Marc Roy Ferry, 35, of Downingtown, PA, pleaded guilty today to one count of wire fraud and two counts of money laundering in connection with a telemarketing scheme that bilked tens of thousands of senior citizens out of more than $13 million. U.S. District Court Judge Gerald A. McHugh, Jr. scheduled a sentencing hearing for June 22, 2016.

According to court documents, between 2009 and March 2014, Ferry and Ari Tietolman, charged elsewhere, and others, used Tietolman’s network of telemarketers in Canada and India to target American senior citizens with deceptive telemarketing calls. They sold worthless or non-existent services and then debited the victims’ bank accounts without their informed consent. Using the business names Fraud Watch, Patient Assistance Plus, Legal Eye and Trust One, the worthless or non-existent services these telemarketers sold included purported fraud protection and discounted legal services, as well as a discount prescription card. Tietolman and others, it is alleged, had been running the scheme since at least 2005. 

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

Tietolman allegedly attempted to conceal his involvement in the scheme by employing defendant Marc Roy Ferry and others to run “front” companies - including First Consumers, LLC - and process the fraud money. Ferry admitted that Tietolman paid him and others to form corporations in the United States. The sole purpose of these corporations was to process the fraud proceeds generated by the telemarketing scheme. Tietolman, according to court documents, instructed Ferry and others to open up numerous bank accounts in the United States in the names of the fraud companies that they had incorporated. Ferry sent Tietolman online logins and passwords so Tietolman and others could control these United States bank accounts from Canada. 

Tietolman allegedly sent Ferry and others bank account information for the victims in the United States.  Using computer programs and printers allegedly provided by Tietolman, Ferry and others used the victims’ bank account information to print remotely created checks (“RCCs”), in the United States. The RCCs were all made payable to the fraud companies and did not require a signature by the account holder. Because these RCCs did not require the account holder’s consent each time a check was created and submitted to the bank for payment, the account holder-victim had no opportunity to object or prevent the debit from occurring. Ferry and others deposited the RCCs in bank accounts held by the fraud companies, allegedly per Tietolman’s instructions. Tietolman, according to court documents, instructed Ferry and others to deposit the RCCs in batches of less than $10,000 to avoid federally-mandated reporting requirements. After the checks were deposited, Tietolman instructed Ferry and others to wire the majority of the funds to accounts in Canada.

Ferry faces a maximum possible sentence of 70 years in prison; three years of supervised release; a fine of $750,000 or up to double the amount involved in the money laundering; and a $300 special assessment.  Ferry will also be ordered to pay restitution to the victims.

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

PHILADELPHIA - A superseding indictment was filed today charging Volodymyr Kurylo, a/k/a “Volodya” a/k/a “Vova,” 35, of Richboro, PA, and Vitalii Vitiuk, 28, of Philadelphia, PA, with one count of conspiracy to defraud the United States and one count of conspiracy to produce an identification document without lawful authority, announced United States Attorney Zane David Memeger.

Volodymyr Kurylo operated VN Trucking, which, among other things, provided truck driver training.  Vitalii Vitiuk worked for Kurylo. PennDOT requires that applicants for a Pennsylvania Commercial Driver’s License (CDL) provide proof of residency. According to the indictment, between June 2014 and September 2015, the defendants conspired to provide false residency documents to VN Trucking students who resided outside of Pennsylvania. For example, it is alleged that Kurylo obtained genuine utility bills and then had those bills falsified to indicate that the bill was in the student’s name and that the student resided at the Pennsylvania address. Kurylo also allegedly fabricated a false lease document for two CDL students who did not reside in Pennsylvania. 

It is further alleged that between February 2015 and December 2015, Kurylo operated VN Trucking in violation of a January 2015 Federal Motor Carrier Safety Administration order that VN Trucking cease operations. Kurylo, it is alleged, continued to dispatch trucks and drivers to transport property using VN trucks, conducting the business of VN Trucking at its offices in Bensalem, Pennsylvania, and by using other motor carriers to conceal the operations of VN Trucking.

If convicted, defendant Kurylo faces a maximum sentence of 20 years in prison and defendant Vitiuk faces a maximum sentence of 15 years in prison.               

The case was investigated by the U.S. Department of Transportation, Office of Inspector General and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Frank A. Labor III and Michael T. Donovan.

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

PHILADELPHIA - William Upson, a/k/a Jamal, 34, and Todd Smith, a/k/a Tyrone Smith, 37, both of Philadelphia, PA, were charged today by Indictment with drug trafficking and weapons charges, announced United States Attorney Zane David Memeger.  The charges include possession with intent to distribute controlled substances, possession with intent to distribute controlled substances within 1,000 feet of a school, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon.    

If convicted of all charges, Smith faces a mandatory minimum sentence of 20 years in prison with a maximum sentence of life, at least six years and up to lifetime supervised release, a possible fine, and a $400 special assessment. Upson faces a mandatory minimum sentence of six years in prison with a maximum sentence of life, at least six years and up to lifetime of supervised release, a possible fine, and a $400 special assessment.

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

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

PHILADELPHIA - Sabrina Brooks, 34, of Philadelphia, PA, was charged by indictment, filed yesterday, with making false statements to a federal firearms licensee and aiding and abetting possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.  According to the indictment, on October 13, 2015, Brooks purchased two firearms for Nathan Manning, a convicted felon who is charged elsewhere.  Brooks also made false statements to a federal firearms licensee in purchasing the firearms: a .380 caliber Magnum Research, Micro Desert Eagle, semi-automatic handgun and a nine-millimeter Ruger, Model SR9, semi-automatic handgun.

If convicted, Brooks faces a maximum statutory sentence of 15-years in prison, up to three years of supervised release, a fine of up to $500,000, and a $200 special assessment.

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

PHILADELPHIA – An indictment, unsealed today, charges two friends, Daniel Sheehan, 41, of Gloucester City, NJ, and John Hoban, 42, of Bellmawr, NJ, in a scheme to defraud distressed homeowners seeking help out of more than $400,000, announced United States Attorney Zane David Memeger.  The pair is charged with wire fraud conspiracy and eight counts of wire fraud.  Sheehan is additionally charged with 18 wire fraud counts and one count of interstate transport of stolen property.  As a result of the alleged scheme, more than 110 people were defrauded, several of whom lost their homes.

According to the indictment, between September 2012 and February 2015, Sheehan, a mortgage modification professional, represented to a dozen clients that he could help them modify their mortgages through the Home Affordable Mortgage Program (“HAMP”) or the Home Affordable Refinance Program (“HARP”).  Instead, it is alleged, Sheehan: took fees from his clients without ever submitting the loan modification paperwork he promised; deceived his clients by representing to them that he had secured a new mortgage for them; directed many of his clients to make their mortgage payments to him until their new loan paper work arrived; had Hoban pretend to be a bank representative to lull the client into a false sense of security; and used his clients’ mortgage payments for his own purposes rather than that for which those payments were intended.  Several of Sheehan’s clients’ homes went into foreclosure and at least two went to Sheriff’s sale.

According to the indictment, LS, who owned a home in Northfield, NJ, contacted Sheehan after he lost his job and couldn’t make his mortgage payments.  LS and his wife had lived in the home for years and had raised their children there. In August of 2013, Sheehan told LS that he could get him a loan modification that would reduce both his principal and his interest rate. LS paid Sheehan his requested fee of $1,700.  In February of 2014, Sheehan informed LS that he saw LS’s offer and that LS should have it in his hands in the next 24 to 48 hours.  Although LS’s house was scheduled to be sold as a Sherriff’s sale on several occasions, Sheehan allegedly reassured LS that he would take care of it.  In May of 2014, a man came to LS’s and told LS that he was going to purchase the house at Sherriff’s sale.  When LS told Sheehan, Sheehan instructed LS to ignore the man. On July 1, 2014, Sheehan told LS that the modification had been approved, that his house had not been sold, and presented him with an agreement to sign. He told LS that he would have to make trial payments of $1,525.55 for the next three months and he instructed LS to make the payments out to him and that he would place the payments in an escrow account.  In September of 2014, Sheehan allegedly gave LS a document that purported to be an order from a judge allowing LS to stay in his home until September 23, 2105.  On November 5, 2014, LS appeared in court where he learned from the judge that the document provided to him by Sheehan was a forgery. On November 5, 2014, LS and his family were physically evicted from their home.

In another instance, according to the indictment, when a client of Sheehan’s started receiving foreclosure notices from her bank, Sheehan told her that a representative with the new mortgagor would resolve the issue. Sheehan then, it is alleged, had Hoban pose as that bank representative, convincing the homeowner that the foreclosure notice would be “frozen” and that she would receive a packet from the new bank in 30 days.  Meanwhile, no application for a loan modification had ever been filed on that homeowner’s behalf.

“This type of mortgage fraud is very personal.  The defendants cheated their homeowner victims out of hundreds of thousands of dollars by preying on their emotional and financial vulnerabilities,” said Memeger.  “The financially struggling victims viewed the defendants as life savers who would help them preserve their most valuable investment -- their homes.  Instead, the defendants betrayed their victims, sank them into deeper debt, and, in some cases, left them homeless.”

“It’s hard to overstate the cruelty displayed by these defendants,” said FBI Special Agent-in-Charge William F. Sweeney, Jr. “Portraying themselves as white knights who would help families keep their homes, pocketing their money – knowing, all the while, their unsuspecting victims would soon be homeless. Their actions are unconscionable.”

It is further alleged that between April 2014 and February 2015, Sheehan transported, transmitted, and transferred in interstate and foreign commerce, goods, wares, securities, and money of the value of $5,000 or more, taken by fraud.

If convicted, each defendant faces a maximum statutory sentence of 20 years in prison, possible fines, and up to three years of supervised release. Sheehan would be required to pay a $2,900 special assessment; Hoban, a $900 special assessment.  A notice of forfeiture for $470,000 is also attached.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Paul Shapiro.

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

PHILADELPHIA – A federal jury, today, returned guilty verdicts against members of a violent drug trafficking gang that operated in and around Chester, PA.  The jury found Donald Womack, Sr., Paris Church, Ronell Whitehead, Breon Burton, Spencer Payne, guilty of operating a drug market within the Rose and Upland neighborhood on the east side of Chester City.  Womack, Church, Whitehead, Burton, and Payne were convicted of conspiracy.  All of the defendants face a maximum possible sentence of life in prison; Womack faces a mandatory term of life in prison; the remaining defendants, except Payne, face a mandatory term of 20 years in prison; Payne faces a mandatory term of 10 years in prison.  Sentencing hearings have not yet been scheduled.

Among the charges that these defendants and their 17 co-defendants were convicted of: distributing cocaine, crack cocaine, and heroin to customers in their territory and elsewhere between August of 2012 and September of 2014; maintaining a drug house; possessing firearms in furtherance of drug trafficking crimes; and distributing cocaine, crack and heroin within 1,000 feet of area schools and a playground.  Burton was previously convicted of being a felon in possession of firearms and use of a firearm in furtherance of drug trafficking. One of the group’s largest alleged cocaine and heroin suppliers, Paris Church, was convicted of conspiracy to distribute 280 or more of cocaine base (“crack”), 500 grams or more of cocaine, and 100 or more grams of heroin for re-distribution. The leader of the drug trafficking group, William Dorsey, and 16 other co-defendants pleaded guilty to their roles in the organization. 

The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Chester Police Department, the Pennsylvania State Police, and the Delaware County Office of the District Attorney’s Criminal Investigation Division. Also providing substantial manpower and assistance in the arrests were agents from the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Ashley K. Lunkenheimer, A. Nicole Phillips, and Faithe Moore Taylor.

PHILADELPHIA - Altagracia Arias, 60, of Lawrence, Massachusetts, was charged by indictment, filed today, with passport fraud, use of a fraudulently obtained passport, and aggravated identity theft, announced United States Attorney Zane David Memeger. 

According to the indictment, between November of 2008 and February of 2016, Arias used a United States passport which she had obtained through false statements on her passport application.  She allegedly ARIAS used the name of another individual (“A.S.”), stated that she was born in Puerto Rico and was, therefore, a U.S. citizen, and gave a Social Security Number that was not hers.  

If convicted of all charges, Arias faces a mandatory minimum term of two years in prison for the identity theft with a maximum statutory sentence of 32 years in prison, a possible fine, a $400 special assessment, and up to three years of supervised release. 

This case was investigated by the U.S. Department of State Diplomatic Security Service, and is being prosecuted by Assistant United States Attorney V. Paige Pratter.

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

PHILADELPHIA – Ralph Fisher, 38, of Elkton, Maryland, was charged by indictment, filed on March 15, 2016, with attempting to entice a minor to engage in sexual conduct, attempting to transfer obscene material to minors, and other charges.  The case was announced today by United States Attorney Zane David Memeger and Delaware County District Attorney Jack Whelan. 

According to the indictment, between June 15, 2015 and July 20, 2015, Fisher engaged in sexually explicit chats over the Internet with “Minor #1,” a person Fisher believed to be a 15-year old boy.  Fisher allegedly attempted to engage “Minor #1” in sexual conduct and sent pornographic pictures of himself to “Minor #1.”  It is further alleged that on July 20, 2016, Fisher traveled to Delaware County, Pennsylvania, to have sex with “Minor #1” but was, instead, arrested by the Delaware County Criminal Investigation Division.  Fisher is also charged with distributing child pornography to others over the Internet, and possessing child pornography on his cell phone. 

If convicted of all charges, Fisher faces a mandatory minimum sentence of 10 years in prison with a statutory maximum sentenced of life in prison, a possible fine, supervised release, and a $500 special assessment.

This case was investigated by the Delaware County Criminal Investigation Division and the Federal Bureau of Investigation.  It is being prosecuted by Special Assistant United States Attorney Alan Borowsky. 

PHILADELPHIA - Joseph Rosko, III, 36, of Ambler, PA, was charged by Information, filed on February 19, 2016, with misapplication of bank funds and conspiracy, announced United States Attorney Zane David Memeger.

Rosko was the Commercial Loan Officer at Earthstar Bank in Southampton, PA, from approximately April 2009 until May 2010 and had an Earthstar credit card.  Rosko and David Lyster, the Chief Lending Officer (charged elsewhere), agreed that Lyster would eliminate the minimum monthly payment requirement from Rosko’s credit card.  Over time, Lyster raised Rosko’s credit limit to $65,000.  Rosko exceeded his credit limit on the card and defaulted on the account.  One of Rosko’s customers at Earthstar Bank, W.R., had an Earthstar Bank credit card with a credit limit of $15,000, and W.R.’s company had six business loans with Earthstar Bank totaling approximately $250,000.  As of March 2010, W.R. had reached the credit limit on his Earthstar credit card, and his company’s loans were non-performing.  Rosko solicited Lyster to eliminate the minimum payment term and the cash advance fee on W.R.’s Earthstar Bank credit card.  Thereafter, W.R. withdrew almost $50,000 in cash advances on the card.  Ultimately, W.R. exceeded the $75,000 credit limit on the credit card, and defaulted on the card.

Rosko obtained a one-third ownership interest in a struggling pizza restaurant owned by J.P.  At that same time, W.R. (Rosko’s bank customer) also obtained a one-third interest in the restaurant.  J.P. (the original owner) retained a one-third interest.  At approximately the same time, Rosko arranged for an Earthstar Bank credit card with a “no minimum payment” term to be sent to J.P.  J.P. withdrew more than $30,000 in cash advances on the card.  In September 2010, J.P. exceeded the $35,000 credit limit and defaulted on the card.

If convicted, Rosko faces a maximum possible sentence of 35 years in prison, up to five years of supervised release, a possible fine, and a $200 special assessment.  Full restitution of as much as $124,891 also shall be ordered.           

The case was investigated by Office of Inspector General of the Board of Governors of the Federal Reserve System’s Consumer Financial Protection Bureau, the Office of Inspector General of the Federal Deposit Insurance Corporation, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen L. Grigsby.

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

PHILADELPHIA – Joseph Romano, 31, previously employed at The Philadelphia Industrial Correctional Center (“PICC”) and the Riverside Correctional Facility, was sentenced today to 30 months in prison for attempted extortion which interfered with interstate commerce and two counts of attempted distribution of controlled substances. In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered a $1,000 fine, three years of supervised release, and a $200 special assessment.

Romano agreed to deliver OxyContin pills to a prisoner in exchange for $1,000. To obtain the contraband and payment, Romano arranged a meeting with the inmate’s purported associate at locations in Philadelphia. During the ensuing meeting, the inmate’s purported associate handed the contraband and cash payment to Romano, and Romano subsequently smuggled the contraband past prison security and delivered it to an inmate.

The case was investigated by the FBI and the Philadelphia Department of Corrections with assistance from the Philadelphia Police Department’s Prison Intelligence Group. It is being prosecuted by Assistant United States Attorney Kevin Brenner.

Miguel Rodriguez-Juarez, 40, 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 February 11, 2016, Rodriguez-Flores, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about January 19, 2001.

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

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

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

PHILADELPHIA – Michael Anthony Nohl, 20, of Oaks, Pennsylvania, pleaded guilty today to charges from a so-called “swatting” incident that targeted a law enforcement officer and the officer’s family, announced United States Attorney Zane David Memeger.  U.S. District Court Judge Jan E. DuBois scheduled a sentencing hearing for June 9, 2016.

The term “swatting” is generally defined as the act of deceiving an emergency service, such as 911 or other emergency services dispatcher, into dispatching emergency response units, including police SWAT teams, fire departments and medical personnel, based on the false report of an ongoing critical incident.

On December 22, 2014, Nohl was involved in a phone call to the home of the officer in which the officer’s wife and daughter were threatened. The threats included threats to kidnap and murder them and threats to assault and kill the officer. Nohl was charged with, using a telephone or other instruments of interstate or foreign commerce to threaten the use of an explosive to kill, injure, or intimidate an individual, and transmitting any communication containing any threat to injure a person.

Nohl faces a statutory maximum sentence of 15 years in prison, a possible fine, up to three-years of supervised release, and a $200 special assessment.

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

PHILADELPHIA – Fritzroy Brown, 39, of Philadelphia, PA, was sentenced today to 37 months in prison for a healthcare fraud scheme centering on Brotherly Love Ambulance, Inc.  In addition to the prison term, U.S. District Court Judge Gerald J. Pappert ordered three years of supervised release, restitution in the amount of $2,015,712.52 to Medicare, restitution of $14,150 to the Commonwealth of Pennsylvania, and a $300 special assessment. 

Brown was a certified Emergency Medical Technician (EMT) with Brotherly Love.  While employed by Brotherly Love, Brown transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements.  Brown and other conspirators falsified reports to make it appear that the patients needed to be transported by ambulance when he knew that the patients could be safely transported by other means and, in fact, many of them could walk.  In addition, Brown and other conspirators paid kickbacks to patients to ensure that they would use Brotherly Love Ambulance for services which were not medically necessary.  The company also transmitted bills for ambulance services for patients who were not transported by ambulance, but whom Brown and others drove in personal vehicles.  Brown and others completed documentation of these transports that made it appear that the individuals had been transported in an ambulance when they had not, and that misrepresented the medical care provided to and safety precautions taken for these patients. 

As a result of the fraudulent scheme at Brotherly Love, the Medicare program paid more than $2 million for fraudulent claims from Brotherly Love.  In addition, Brown submitted false requests to the Commonwealth of Pennsylvania for unemployment compensation when he was, in fact, working full time for Brotherly Love.  The Commonwealth of Pennsylvania paid over $14,000 in unemployment compensation to Brown induced by this fraud.

The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General.  It is being prosecuted by Assistant United States Attorneys Mary E. Crawley and Paul W. Kaufman.

PHILADELPHIA - Eric Hudson, 21, Keith Larke, 36, Warren Smith, 51, Anwar Hameen, 33, all  of Philadelphia, PA, and Fred Rush, 34, of Lansdale, PA, were charged by indictment, unsealed today, in a bank fraud scheme in which they attempted to deposit more than $1 million worth of bogus checks, announced United States Attorney Zane David Memeger.  The defendants are charged with conspiracy, bank fraud, and numerous counts of aggravated identity theft.

According to the indictment, between July 20, 2007 and September 26, 2014, the defendants obtained the names, account numbers and personal identification numbers (PINs) of TD Bank customers and, with their co-conspirators, used that information to deposit bad checks into TD Bank accounts.  They then attempted to quickly withdraw funds from those accounts through point of sale transactions and the purchase of United States postal money orders.  It is further alleged that in order to accomplish the financial fraud, the defendants recruited and paid some account holders to open accounts at TD Bank and then turn over the account information so that they could use it to deposit the bad checks and make the  withdrawals.  The indictment alleges that during the course of the conspiracy, the defendants deposited bogus checks totaling more than $1,195,331.83 and fraudulently obtained more than $607,813.10 through ATM withdrawals and debit card purchases.

If convicted, each defendant faces a two year mandatory minimum sentence with the following maximum statutory sentences: Eric Hudson faces up to 77 years in prison; Keith Larke and Fred Rush each face up to 57 years in prison; Warren Smith and Anwar Hameen each face up to 55 years in prison; plus possible fines and supervised release.

The case was investigated by the United States Postal Inspection Service, and the United States Secret Service, with the assistance of the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Yvonne Osirim.

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

The Justice Department announced today that Corderro Cody, 28, of Allentown, Pennsylvania, was sentenced today to 30 years in prison for running a sex trafficking operation.

Cody pleaded guilty on Oct. 30, 2015, to one count of conspiracy to commit sex trafficking by force, fraud or coercion; 12 counts of sex trafficking; one count of conspiracy to transport individuals across state lines for the purpose of prostitution and one count of sex trafficking of a minor.  In addition to the prison term, U.S. District Court Judge Edward G. Smith of the Eastern District of Pennsylvania ordered 20 years of supervised release and a $1,500 special assessment.

Since at least 2009 through May of 2014, Cody recruited women to work as prostitutes, referred to his prostitution business as the “program” and advertised the women on Backpage.com.  The women were sometimes driven to other states and forced to perform sexual acts.  Cody recovered and kept most, if not all, of the money generated by the sexual acts.  He also used physical force in the form of rape and violent assaults as well as extreme emotional manipulation when the women did not adhere to the “program” and to maintain the women performing commercial sexual acts.  Cody forced one victim to work for him as a prostitute when she was just 17 years old.

“Cody operated a vicious sex trafficking scheme, using brutal physical attacks and emotional abuse to compel his victims to continue selling their bodies for his profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “The Civil Rights Division remains fiercely committed to holding traffickers accountable for their reprehensible conduct, and to safeguarding the rights and dignity of survivors of this heinous crime.”

“The sentence imposed today will ensure that this defendant is unable to subject other girls and women to the tortures that these victims endured,” said U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania.

“Investigations like this highlight the collaborative efforts of the many law enforcements agencies involved in the aggressive fight against human trafficking,” said Acting Special Agent in Charge Jack P. Staton of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) in Philadelphia.  “This sentence should serve as a warning to all individuals and criminal groups involved in the trafficking of minors and women that we are determined to investigate and prosecute to the fullest extent of the law all that are involved in this heinous crime.”

The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Allentown Police Department.  It was prosecuted by Assistant U.S. Attorney Sherri A. Stephan Eastern District of Pennsylvania and Trial Attorney Anita Channapati of the Civil Rights Division’s Human Trafficking Prosecution Unit.  

PHILADELPHIA - Corderro Cody, 28, of Allentown, PA, was sentenced today to 30 years in prison for running a sex trafficking operation, announced United States Attorney Zane David Memeger.  Cody pleaded guilty on October 30, 2015, to conspiracy to commit sex trafficking by force, fraud or coercion, 12 counts of sex trafficking, one count of conspiracy to transport individuals across state lines for the purpose of prostitution, and one count of sex trafficking of a minor.  In addition to the prison term, U.S. District Court Judge Edward G. Smith ordered 20 years of supervised release, and a $1,500 special assessment.

Since at least 2009 through May of 2014, Cody recruited women to work as prostitutes, referred to his prostitution business as the “program,” and advertised the women on Backpage.com.  The women were sometimes driven to other states and forced to perform sexual acts.  Cody recovered and kept most, if not all, of the money generated by the sexual acts, and used physical force in the form of rape and violent assaults, as well as extreme emotional manipulation, when the women did not adhere to the “program,” and to maintain the women performing commercial sexual acts.  Cody forced one woman to work for him as a prostitute when she was just 17 years old.

“The sentence imposed today will ensure that this defendant is unable to subject other girls and women to the tortures that these victims endured,” said Memeger.

“Cody operated a vicious sex trafficking scheme, using brutal physical attacks and emotional abuse to compel his victims to continue selling their bodies for his profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “The Civil Rights Division remains fiercely committed to holding traffickers accountable for their reprehensible conduct, and to safeguarding the rights and dignity of survivors of this heinous crime.”

“Investigations like this highlight the collaborative efforts of the many law enforcements agencies involved in the aggressive fight against human trafficking,” said Homeland Security Investigations Acting Philadelphia Special Agent-in-Charge Jack P. Staton. “This sentence should serve as a warning to all individuals and criminal groups involved in the trafficking of minors and women that we are determined to investigate and prosecute to the fullest extent of the law all that are involved in this heinous crime.”

The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Allentown Police Department.  It was prosecuted by Assistant United States Attorney Sherri A. Stephan, and Trial Attorney Anita Channapati of the Civil Rights Division of the Department of Justice. 

PHILADELPHIA – Jose Dany Zacarias-Jaramillo, 29, residing in Philadelphia, PA, was sentenced today to 108 months in prison for two counts of distribution of child pornography, two counts of receipt of child pornography, and one count of possession of child pornography. Zacarias-Jaramillo pleaded guilty to the charges on April 9, 2015.  In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered $7,000 restitution, a $500 special assessment, and 10 years of supervised release.

Between November 9, 2013, and May 21, 2014, the National Center for Missing and Exploited Children (NCMEC) sent numerous leads to Homeland Security Investigations (HSI) regarding images containing children engaging in explicit sexual conduct sent and uploaded from several email addresses that were accessed from a common IP address.  That IP address was located in a restaurant where Zacarias-Jaramillo worked as a cook.  HSI agents ultimately determined that the subscriber for the email addresses was Zacarias-Jaramillo, who was accessing the internet using his cell phone while at the restaurant.  An evaluation of the email accounts and searches at the defendant’s home revealed more than 100,000 images and several videos of child pornography.

The case was investigated by Homeland Security Investigations and was prosecuted by Special Assistant United States Attorney Josh Davison.

PHILADELPHIA - Miguel Gutierrez, 42, of Bernville, PA, was charged today by information with three counts of wire fraud, announced United States Attorney Zane David Memeger.  According to the information, Gutierrez was employed as a Claims Representative in the Social Security Field Office in Reading, PA, when he used his access to Social Security’s computer systems to redirect benefits intended for third-party individuals into his own bank account.  Gutierrez allegedly received three stolen benefit payments, resulting in a loss to the government of approximately $6,166.66.          

If convicted, the defendant faces a statutory maximum sentence of 60 years in prison, up to three years of supervised release, forfeiture, a possible fine, restitution of $6,166.66, and a $300 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.

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

PHILADELPHIA - Oscar Garcia-Sanchez, a/k/a “Jose Luis Hernandez,” 29, of San Antonio, TX, 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, 2015, Garcia-Sanchez, 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 July 27, 2009.

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

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

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

PHILADELPHIA – Derrick Knight, 41, of Linden, New Jersey, pleaded guilty today to one count of manufacturing counterfeit currency, three counts of possessing counterfeit currency, and three counts of dealing in counterfeit currency.  U.S. District Judge C. Darnell Jones scheduled a sentencing hearing for June 13, 2016. 

Between August 2014 and August 2015, Knight manufactured over $125,000 in counterfeit United States currency, and thereafter sold and dealt thousands of dollars of counterfeit United States currency to buyers in exchange for legitimate United States currency. 

Knight faces a period of incarceration followed by up to three years of supervised release, a possible fine, and a special assessment of $700. 

The case was investigated by the Secret Service Philadelphia and Newark Field Offices and the Lehigh County Drug Enforcement Task Force.  It is being prosecuted by Assistant United States Attorney James Petkun.

PHILADELPHIA – Joseph O’Neill, 65, of Philadelphia, Pennsylvania, was charged today by indictment with making false statements to the FBI during an investigation of potential wrongdoing in the Philadelphia Municipal Court, announced United States Attorney Zane David Memeger. O’Neill is a judge on the Philadelphia Municipal Court.

According to the indictment, then-Municipal Court Judge Joseph Waters, charged elsewhere, called O’Neill about a civil small claims case that was scheduled for a hearing before O’Neill.  In an ex parte conversation, Waters told O’Neill that the defendant in the small claims case was a friend and asked O’Neill to “take a hard look at it.”  When the FBI later interviewed O’Neill about the ex parte conversation, O’Neill denied having been contacted by anyone in advance of the hearing on the small claims case to ask for a favor.  It is further alleged that in a follow-up interview, O’Neill denied that anyone had contacted him in advance of the hearing and told him the defendant in the small claims case was a friend of the caller.

If convicted, O’Neill faces a statutory maximum sentence of 10 years in prison, a possible fine, up to three years of supervised release, and a $200 special assessment.

The case was investigated by the FBI and is being prosecuted by Chief of the Public Corruption Unit Richard P. Barrett and Assistant United States Attorney Michelle L. Morgan.

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

PHILADELPHIA - Robert Joseph Whiteman, Jr., 38, of Levittown, Pennsylvania was sentenced today to 95 months in prison for committing bank fraud and aggravated identity theft while serving a prison sentence for a similar fraud scheme. In addition to the prison term, U.S. District Court Judge Gerald J. Pappert ordered five years of supervised release, restitution in the amount of $67,834.06, and a $500 special assessment. 

In 2006, Whiteman was sentenced to 10 years in prison for bank fraud. While serving that sentence, between 2010 and 2012, Whiteman obtained and attempted to obtain credit in his name and the names of others under false pretenses. Whiteman frequently did this by causing false credit card applications to be submitted in his name and the names of fellow inmates. Whiteman also caused female associates to be included as authorized users for these cards. After the cards were approved, Whiteman caused these female accomplices to use the credit cards to make charges and to take cash advances. When the conspirators reached the cards’ limit, Whiteman caused fraudulent payments to be made on the credit cards, temporarily and falsely increasing the cards’ available credit. Whiteman and his accomplices then resumed their fraud. Moreover, even after the banks and credit card companies stopped allowing Whiteman to make additional charges, he continued to defraud these financial institutions. Whiteman generally wrote fraudulent letters to the institutions falsely claiming that the charges were unauthorized in order to cause the institutions to forgive the charges. In addition, Whiteman submitted false tax returns and fictitious police reports to the financial institutions in order to advance his scheme. His fraud caused over $65,000 in actual losses to his victims and attempted to cause approximately $165,000 more. One of these victims was his own father.

Furthermore, while awaiting sentencing on the most recent charges, Whiteman, again, tried to continue his fraud from the Federal Detention Center in Philadelphia, Pennsylvania.

The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Patrick J. Murray.

PHILADELPHIA – Mykhaylo Botsvynyuk, 38, and Yaroslav Churuk, 48, both of Ukraine, were each sentenced today to 20 years in prison for their roles in a human trafficking enterprise.  The brothers were convicted at trial, on February 24, 2015, of conspiracy to violate RICO, in relation to several predicate offenses in furtherance of the conspiracy, including: a) peonage; b) involuntary servitude; c) extortion and attempted extortion; d) and several immigration offenses, including bringing aliens into the United States at a place other than a designated port of entry, encouraging or inducing illegal entry of aliens, transporting aliens, and harboring illegal aliens for purposes of financial gain.  At the 2015 trial, the government presented the testimony of seven victims of trafficking and several family member victims from Ukraine who received extortionate threats of physical harm from other members of and associates of the enterprise.

From the Fall of 2000 through the Spring of 2007, members of the enterprise lured Ukrainian nationals into the United States with promises of good-paying jobs, room and board, and the opportunity to live and work in the United States to earn up to $500 per month and/or approximately $10,000 after three years’ work. The criminal organization provided the smuggled workers with all of the necessary travel documents and costs, including false travel documents, plane and/or bus tickets, hotel money, cash for travel expenses, visas to Mexico, and even provided attorneys to assist those detained by U.S. immigration authorities upon crossing the Mexico/U.S. border. Once in the United States, the smuggled workers were divided up and each assigned to work for defendant Mykhaylo Botsvynyuk, Omelyan Botsvynyuk, Yaroslav Churuk or Stepan Botsvynyuk.  Each brother had a “crew” of workers that were placed in various cities to do nighttime labor in large retail stores cleaning and waxing floors. The evidence at trial established that the Botsvynyuk brothers instituted a reign of terror and a climate of fear to maintain their workforce and prevent them from escaping. The defendant participated in the physical abuse and beatings of some of the workers.  The violence that enterprise members instituted against the victims included rape of female workers, beatings, kicks, slaps and punches against the male workers. The victims were not paid for their work and received a paltry stipend for food.

In addition to the prison terms, U.S. District Court Judge Paul S. Diamond ordered each to: serve three years of supervised release, pay joint and several restitution in the amount of $288,272, and pay a $100 special assessment.

Omelyan and Stepan Botsvynyuk were convicted in a separate trial and sentenced to life plus 20 years, and 20 years in prison, respectively. 

The case was investigated by the Joint FBI Organized Crime/ICE Human Trafficking Alien Smuggling Task Force.  Assistance was provided by Pennsylvania State Police, the Philadelphia Police Department, the Department of Labor Office of Inspector General, Toronto Police Department, German National Police, Berlin State Police, Ukraine Security Service, US National Central Bureau, the U.S. Department of Justice Office of International Affairs, and INTERPOL.  It is being prosecuted by Assistant U.S. Attorneys Daniel A. Velez and Michelle Morgan.

PHILADELPHIA – Thael Kuran, 24, of Philadelphia, PA, was sentenced today to 37 months in prison for a health care fraud scheme involving Brotherly Love Ambulance, Inc.  In addition to the prison term, U.S. District Court Judge Gerald J. Pappert ordered three years of supervised release, restitution in the amount of $2,015,712.52, and a $200 special assessment. 

Through Brotherly Love, Kuran transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements.  Kuran and other conspirators falsified reports to make it appear that the patients needed to be transported by ambulance when he knew that the patients could be safely transported by other means and, in fact, many of them could walk.  In addition, Kuran and other conspirators paid kickbacks to patients to ensure that they would use Brotherly Love Ambulance for services which were not medically necessary.  The company also billed Medicare for ambulance services for patients who were not transported by ambulance, but whom Kuran and others transported in personal vehicles.  Kuran and others completed documentation of these transports that made it appear that the patients had been transported in an ambulance and that misrepresented the medical care provided to and safety precautions taken for these patients.  As a result of the fraudulent scheme at Brotherly Love, the Medicare program paid more than $2 million for fraudulent claims from Brotherly Love. 

The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General.  It is being prosecuted by Assistant United States Attorneys Mary E. Crawley and Paul W. Kaufman.

PHILADELPHIA - Michael Green, 33, of Philadelphia, PA, was sentenced today to 248 months in prison, including a 60-month mandatory minimum prison term, for the armed carjacking of three men on December 5, 2012.  In addition to the prison term, U.S. District Court Judge R. Barclay Surrick ordered five years of supervised release and a $200 special assessment. 

Judge Surrick ordered Green to serve this sentence partially consecutively to a 180-month federal sentence Green is already serving for his earlier conviction in a multi-year drug trafficking conspiracy. 

On the night of December 5, 2012, Green and an accomplice disguised themselves as police officers, with fake police clothing, badges and guns.  Using fake police lights, Green and his accomplice pulled over three men who were returning from a funeral in a Chevrolet Silverado pick-up truck, claimed to be police officers, and then carjacked the victims at gunpoint.  After handcuffing the three men and forcing them into the back seat of the truck, Green pistol-whipped the victims and threatened to kill them.  The three victims managed to escape by leaping from the moving vehicle, with one of them suffering serious injuries in the process.

Green was arrested after the victims located and identified the car Green and his accomplice had used to pull them over.  A search warrant revealed that Green had rented the car in his own name, and had left his wallet with his identification and credit cards as well as his cell phones inside the car.  On July 23, 2014, a federal jury found Green guilty of carjacking, and using a firearm during a crime of violence. 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations and was prosecuted by Assistant United States Attorneys V. Paige Pratter and Mark S. Miller.

PHILADELPHIA - Calvin Johnson, 45, of Philadelphia, Pennsylvania, was charged by Information, filed yesterday, with one count of failing to appear as required by conditions of release, announced United States Attorney Zane David Memeger.

If convicted, Johnson faces a maximum possible sentence of 10 years in prison, up to  three years of supervised release, a fine, and a $100 special assessment.

The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Patrick J. Murray.

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

PHILADELPHIA – Mark Haynes, 56, of West Chester, PA, was sentenced today to 240 months in prison for child sexual abuse and exploitation.  Haynes, a former parochial Vicar at Saint Simon and Jude’s Church in West Chester, pleaded guilty on June 8, 2015 to using the Internet to entice a minor to engage in sexual conduct, transfer of obscene material to a minor, distribution of child pornography, possession of child pornography, and destruction or concealment of evidence.  In addition to the prison term, U.S. District Court Judge R. Barclay Surrick ordered 10 years of supervised release, a fine of $15,000, and a $700 special assessment.

Around 2010, Haynes posed as a 15-year old girl named “Katie” on a teen pen pal site on Instagram.  As “Katie,” Haynes would meet young teenage girls online, engage in sexual chats, and send them child pornography photos and videos in an attempt to entice them to take and send sexually explicit pictures of themselves.  Haynes is also charged with distributing other images and videos of children being sexually assaulted over the Internet in 2014.  After his arrest by the Chester County Criminal Investigation Division, Haynes was released on bail.  While under court supervision, Haynes duped an 86-year old friend of his mother into retrieving his computer from his apartment at the rectory at Saint Simon and Jude’s.  Haynes then destroyed the computer, discarding the hard drive in a dumpster in New Jersey. At sentencing, Judge Surrick heard testimony from victims regarding Haynes’ sexual abuse of children from his parish at Saint Ann’s in Phoenixville as far back as 1985 through 1991. 

The case was investigated by the FBI in conjunction with the Delaware County Internet Crimes Against Children Task Force and the Chester County Criminal Investigative Division.  It was prosecuted by Assistant United States Attorney Michelle Rotella.

PHILADELPHIA - Martin W. Kennedy, 68, of Coatesville, PA, was arrested today on charges of preparing false tax returns and theft of government property, announced United States Attorney Zane David Memeger. 

According to an indictment filed February 9, 2016, Kennedy, an employee of the Department of Veterans Affairs’ Hospital located in Coatesville, PA, prepared approximately 176 federal income tax returns for other individuals, including his co-workers, during the years 2010 through 2013, which fraudulently sought tax refunds of approximately $610,526.  It is further alleged that the tax returns that Kennedy prepared contained false financial information regarding the filers’ Schedule C Business Expenses and the filers’ Schedule a Medical Expenses, Charitable Deductions and phantom losses from the sale of business property.  In addition to charging his co-workers a fee for preparing their tax returns, Kennedy allegedly stole a portion of the refunds that he generated for his clients by having a portion of the tax refunds deposited into his personal bank account.  To accomplish his alleged theft, Kennedy prepared, without the filers’ knowledge, IRS Form 8888 requesting that a portion of the refund be deposited into a bank account controlled by Kennedy with the remaining amount of the refund deposited into the filers’ account. 

If convicted of all counts, Kennedy faces a substantial period of incarceration, a possible fine, restitution to the IRS, a period of supervised release, and a $1,400 special assessment.

The case was investigated by the Office of Inspector General for Department of Veterans Affairs and IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney Floyd J. Miller.

Rumualdo Diaz-Ramirez, a/k/a “Ricardo Ochoa Guzman,” 42, of Lancaster, 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 January 14, 2016, Diaz-Ramirez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about April 30, 2003 and September 24, 2005.

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

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

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