Eastern District of Pennsylvania

PHILADELPHIA – A superseding indictment, unsealed today, charges former Philadelphia Sheriff John Green, 68, of Kissimmee, Florida, and James Davis, 65, of Wyncote, Pennsylvania, with conspiracy and four counts of honest services fraud involving the Philadelphia Sheriff’s Office (“PSO”), announced United States Attorney Zane David Memeger.  Davis is also charged with two counts of filing a false tax return and three counts of willful failure to file a tax return.  

 

The indictment alleges that as Sheriff of Philadelphia, John Green was responsible for the execution of all the duties of the PSO, including the PSO’s sale of real property subject to mortgage foreclosure and tax sales at Sheriff’s sales.  James Davis was co-owner of an advertising and public relations company, Reach Communications Specialists, and a title search and settlement company, RCS Searchers, Inc.  John Green and James Davis enriched each other through their abuse of the public trust placed in the Sheriff to conduct his duties honestly in the best interest of the citizens of Philadelphia and the distressed owners who lost their properties at Sheriff’s sales.  Green agreed to Davis’ companies receiving contracts, business, and fees from the PSO in the sale of the real estate, which they hid from the public, in exchange for Davis providing Green extensive personal benefits, which they also hid.  From 2002 through 2010, Davis and his companies developed near exclusive control of much of the work connected to the PSO court-ordered sales of properties.  Davis and his companies also handled the advertising for Green’s reelection campaigns, including for Green’s 2007 reelection campaign.  According to the indictment, Davis provided Green with a stream of personal benefits that included: buying and renovating a home for Green which was then sold to Green at a loss; providing more than $210,000 in hidden payments to Green’s 2007 reelection campaign; and giving more than $320,000 as gifts and interest-free loans to Green for Green’s retirement home in Florida.  It is further alleged that in exchange for these benefits, no other vendors were allowed to bid and compete against Davis’ companies for the services that they provided to the PSO related to the sale of properties at Sheriff’s sales; Green expanded the amount of services provided by Davis’ companies and paid for out of the proceeds of the Sheriff’s sales; and Green allowed Davis’ companies to add and increase fees that were paid for out of the proceeds from the Sheriff’s sales.  Each dollar that went to Davis and his companies from the property sales was a dollar that would never make it to the distressed property owners who were entitled to the remainder of the proceeds after the satisfaction of liens and necessary costs.  Also, Davis was permitted to place friends and family members on the staff at the PSO who were assigned responsibilities connected to the Sheriff’s sales. 

 

It is further alleged that Davis willfully filed a false U.S. income tax return for Reach Communications for tax year 2007 by falsely reporting a business loss of approximately $146,669, which he knew was not true.  Davis allegedly filed a false individual 2007 U.S. income tax return, by falsely reporting a taxable income of $408,072, which Davis knew was not true.  Davis is also charged with willfully failing to file tax returns for tax years 2008, 2009, and 2010.

 

If convicted of all charges, Davis faces a statutory maximum sentence of 94 years in prison, a $775 special assessment, a possible fine, and supervised release; and Green faces a statutory maximum sentence of 85 years, a $500 special assessment, a possible fine, and supervised release.  The indictment also includes a notice of forfeiture seeking $7,000,000 and property from Davis and Green.

 

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Philadelphia Office of the Inspector General, and is being prosecuted by Assistant United States Attorneys Sarah Grieb and Christopher Diviny.

                                                                             

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

PHILADELPHIA - Phyllis Ransome, a/k/a “Phyllis Roberts,” 70, of Philadelphia, PA, was charged by Indictment, unsealed yesterday, with nine counts of wire fraud, one count of theft of government funds, and one count of Social Security fraud, announced United States Attorney Zane David Memeger.  According to the Indictment, the defendant received Supplemental Security Income benefits under one Social Security number, while failing to disclose her receipt of widow’s benefits under a second Social Security number, from October 2009 through December 2014.  The defendant’s alleged actions resulted in a loss to the government of approximately $42,108. 

 

If convicted, the defendant faces a substantial period of incarceration, a three year period of supervised release, restitution of $42,108, a $1,100 special assessment, forfeiture, and a possible million fine.

 

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

PHILADELPHIA - Antwoine Tomlin, 32, of Philadelphia, was charged today by indictment with committing an armed robbery, on November 19, 2015, at the United States Post Office, located at 6382 Castor Ave, Philadelphia, Pennsylvania, announced United States Attorney Zane David Memeger.  Tomlin was also charged with use of a firearm in connection with that robbery.

 

If convicted Tomlin mandatory minimum term of 25 years in prison with a maximum possible sentence of life, supervised release, a possible fine and a $100 special assessment.   

 

The case was investigated by the United States Postal Inspection Service and Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Paul G. Shapiro.

 

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

PHILADELPHIA – Fernando Sanchez, 42, of Lancaster, Pennsylvania, was charged yesterday by Information with three counts of wire fraud, announced United States Attorney Zane David Memeger.  While employed as a bank manager at Fulton Bank in Lancaster, Sanchez fraudulently took approximately $99,105.09 from the bank account of the Manor Shopping Center Merchants Association.

 

According to the information, from about May 2010 until about July 2014, Sanchez took money from the Merchants Association bank account to pay his own personal expenses.  He removed money from the account using dozens of cashier’s checks which he deposited in his own account in another bank, and also by making online electronic transfers of funds to pay his personal expenses.

 

If convicted, the defendant faces a maximum possible sentence of 60 years in prison, three years of supervised release, restitution, a $750,000 fine, and a $300 special assessment.

 

The case was investigated by the Secret Service and is being prosecuted by Assistant United States Attorney Laurie Magid.

 

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

PHILADELPHIA - Sharnise Carroll, 36, of Philadelphia, PA, pleaded guilty yesterday to seven counts of aiding and assisting in the preparation of fraudulent tax returns. A sentencing hearing is scheduled for March 30, 2016.  Carroll faces up to three years in prison, up to two years of supervised release, restitution to the IRS, a $700 special assessment and a possible fine.

 

Between February 2009 and September 2009, Carroll prepared and electronically filed federal income tax returns for seven individuals, six of whom did not know Carroll, in which she sought First Time Home Buyer Credit on behalf of each individual.  Carroll knew that none of the seven individuals qualified for the credit and one of the returns that Carroll prepared was for a minor whose identity had been stolen. Carroll received a total of $53,445 in cash payments and had the IRS directly deposit the monies into one of two bank accounts in her name.

 

The case was investigated by Internal Revenue Service Criminal Investigations in conjunction with the City of Philadelphia Office of Inspector General.  It is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.

PHILADELPHIA –Matthew Brozena, 58, of Telford, PA, and his company, MAB Environmental Services, Inc., were charged by indictment with conspiracy to violate the Clean Water Act and other offenses, announced United States Attorney Zane David Memeger.  The indictment also charges the defendants with knowingly violating permit conditions, tampering with required monitoring devices and methods, and false reporting.  Separate criminal informations have been filed charging James Wetzel, 63, of Harrisburg, PA, James Crafton, 61, of Upper Black Eddy, PA, and Stephen Fritz, 48, of in Harleysville, PA, with related environmental violations.  

 

The indictment alleges that Brozena and his company, MAB Environmental Services, Inc., contracted to operate wastewater treatment plants for its customers BC Natural Chicken and Buckingham Valley Nursing Center, in compliance with permits issued by the Pennsylvania Department of Environmental Protection to those facilities.  The permits allowed BC Natural and Buckingham to discharge from their wastewater treatment plants into nearby waters under specified conditions.  The permit conditions included that the operators of the wastewater treatment plants properly operate and maintain the wastewater treatment plants.  The permits also required that the operators test samples of the discharge from the plants for certain pollutants and report the samples and test results to the PADEP.  The permits set limits for the amount of each pollutant that each facility was allowed to discharge.  The charging documents allege that Brozena directed his employees at MAB, including Wetzel and Fritz, to discard samples when Brozena believed that the pollutants in the samples would exceed the permit limits.  The charges also allege that, at Brozena’s direction, Wetzel, Crafton, Fritz, and other MAB employees falsely reported samples and test results.

 

“The EPA and its regulatory partners are dedicated to safeguarding public health,” said Jennifer Lynn, Assistant Special Agent in Charge of Environmental Protection Agency’s criminal enforcement program in Pennsylvania.  “In order to fulfill that mission, it is essential that governments receive accurate test samples and measurements.  This case demonstrates that those who would knowingly put public health at risk can expect to face prosecution.”

 

If convicted of all charges, MAB Environmental Services, Inc., faces probation and fines; Brozena faces a significant term of imprisonment, fines, and supervised release; Crafton and Fritz face prison terms and fines and supervised release; and Wetzel faces a maximum sentence of one year in prison, a fine, and supervised release.

 

The case was investigated by the U.S. Environmental Protection Agency Criminal Investigation Division, with the assistance of the Pennsylvania Department of Environmental Protection.  It is being prosecuted by Assistant United States Attorney Sarah L. Grieb and Special Assistant United States Attorney Patricia Miller.

                                                                             

Indictments and Informations are accusations. A defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA - Steven Hameed, 56, Darnell Young, 48, and Damond Palmer, 41, all of Chester, Pennsylvania, were charged by indictment, unsealed today, with one count of conspiracy to commit offenses against the United States, one count of bank fraud, and one count of corrupt interference with Internal Revenue laws, announced United States Attorney Zane David Memeger.  Hameed also faces three counts of conversion of government property, and Young was also charged with one count of conversion of government property.  Hameed and Young also face a count of creating fictitious obligations. 

 

According to the indictment, the defendants filed false land deeds with the Delaware County Recorder of Deeds Office in an attempt to claim ownership of homes owned by the government or by banks, and then to live in the homes, or rent/sell the homes to unsuspecting persons, for their own financial gain.  The indictment further charges that the defendants filed hundreds of false tax forms against police officers, judges, and other government employees in an attempt to harass and intimidate them in the course of their official duties.  Hameed and Young are also charged with creating a false financial bond in an attempt to purchase property.   

 

If convicted, the defendants face substantial periods of incarceration, three-year periods of supervised release, restitution and substantial fines.

 

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

 

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

PHILADELPHIA - Nakia Adams, 41, address unknown, was charged by indictment, unsealed today, with conspiracy, making false statements to a federal firearms licensee, possession of firearms by a convicted felon, and aiding and abetting, announced United States Attorney Zane David Memeger. The charges arise from Adams’ use of several individuals as “straw purchasers” to obtain firearms from federally licensed firearms dealers. Adams, as a previously convicted felon, is prohibited from purchasing firearms himself.  

 

If convicted, the defendant faces a maximum possible statutory sentence of 90 years in prison, possible fines, a $1,200 special assessment, and three years of supervised release.

 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives Reading Field Office and is being prosecuted by Assistant United States Attorney Eric Boden.

 

An Indictment or 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, pleaded guilty today to attempted extortion which interfered with interstate commerce and two counts of attempted distribution of controlled substances. 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.

 

U.S. District Court Judge Paul S. Diamond remanded the defendant into federal custody and scheduled a sentencing hearing for March 14, 2016.  Romano faces a statutory maximum sentence of 40 years in prison, possible fines, supervised release, and a $300 special assessment.

 

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 – Victor Morales, 30, of Allentown, PA, was charged yesterday by indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.  According to the indictment, on June 12, 2015, Morales was in possession of a Smith & Wesson, Model SW40GVE, .40 caliber semi-automatic pistol,  with a live round of .40 caliber ammunition in the chamber, and a magazine loaded with 13 live rounds of .40 caliber ammunition.

 

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

 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allentown Police Department and the Lehigh County District Attorney’s Office.  It is being prosecuted by Assistant United States Attorney Eric A. Boden.

 

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

PHILADELPHIA - Jacob Pabon, 19, and Lytic Fauntleroy, 19, both of Allentown, PA, were charged yesterday by indictment with robbery which interferes with interstate commerce, and using and carrying a firearm during a crime of violence, announced United States Attorney Zane David Memeger.  The indictment charges that on May 7, 2015, Pabon committed a gun-point robbery of Sun’s Deli, located at 1341 Union Street, in Allentown, Pennsylvania; and that on May 29, 2015, Pabon and Fauntleroy committed a gun-point robbery of Speedway, located at 1043 Lehigh Street, in Allentown, Pennsylvania.  Pabon and Fauntleroy are also charged with using and carrying firearms during the robberies charged in the indictment.

 

If convicted of all counts, Pabon faces a mandatory minimum sentence of 32 years in prison with a maximum sentence of life, a fine, five years of supervised release, and a $400 special assessment; Fauntleroy faces a mandatory minimum sentence of seven years in prison with a maximum sentence of life, a fine, five years of supervised release, and a $200 special assessment.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allentown Police Department and the Lehigh County District Attorney’s Office.  The case has been assigned to Assistant United States Attorney Eric A. Boden.

 

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

PHILADELPHIA - Michael Hoffner, Sr., 50, of Voorhees, New Jersey was charged today by superseding indictment with five additional counts of wire fraud, announced United States Attorney Zane David Memeger.  Hoffner was first charged in June 2015 with 23 counts of wire fraud. 

 

Hoffner owned the Brown Street Pub in Philadelphia, Pennsylvania.  According to the superseding indictment, on 28 occasions between September and December 2012, Hoffner used a stolen credit number to make charges to Visa, American Express, or Mastercard cards.  The cardholders were not aware of and did not authorize these transactions.  The proceeds of these transactions went into accounts that Hoffner controlled. 

 

If convicted, the defendant faces a maximum statutory sentence of 20 years in prison on each of the wire fraud counts, a $7 million fine, and three years of supervised release.

 

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

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

PHILADELPHIA – A federal jury, today, returned guilty verdicts on all counts against Rahim Henderson, 38, of Philadelphia, PA, in connection with a counterfeit credit card manufacturing operation.  Henderson, a former Philadelphia Police Officer, was convicted of conspiracy, wire fraud, access device fraud, and multiple counts of aggravated identity theft. 

 

Between April 2014 and October 2014, Rahim Henderson used a credit card encoding machine – a machine used to encode a victim’s stolen credit card account information onto a different credit card’s magnetic stripe – so that, when swiped during a merchant transaction, the victim’s credit card account would be charged.  Henderson manufactured the credit cards, and he and his co-conspirators used the cards to make fraudulent purchases at commercial establishments in and around the Philadelphia region.  In addition to possessing a credit card encoding machine, the defendant also possessed and stored a credit card embossing machine, a credit card printing machine, computer equipment, hundreds of blank plastic credit cards, various re-encoded credit cards and gift cards, and over $67,000 in US currency in the home that he shared with his wife and co-defendant Tian Larode.  The defendant obtained the stolen victim credit card account information via the internet, using his Yahoo! email account to purchase and obtain the stolen credit card account information from unidentified sellers.

 

U.S. District Court Judge John R. Padova scheduled a sentencing hearing for March 10, 2016.  Henderson faces a mandatory minimum term of two years in prison with a maximum statutory sentence of 74 years in prison, a possible fine, a $1,200 special assessment, and three years of supervised release.  Henderson’s co-conspirators, his wife Tian Larode and his sister Waliyda Henderson, pleaded guilty and are awaiting sentencing.  

 

The case was investigated by the United States Secret Service and the Philadelphia Police Department.  It is being prosecuted by Assistant United States Attorney James A. Petkun.

PHILADELPHIA - An indictment, unsealed today, charges eight people with conspiring to distribute heroin in the Kensington section of Philadelphia, announced United States Attorney Zane David Memeger.  Charged are: Jorge Balbuena, a/k/a “Hansel,” 29,  Yan Mota Soto, 25, Luis Garcia, a/k/a “Twin,” a/k/a “Mellos,” a/k/a “Domi,” 35, Jose Garcia, a/k/a “Twin,” a/k/a “Mellos,” 35, Ysidro Garcia, a/k/a “Pisa Pie,” 67, Elvin DeJesus, 26, Pedro Angel Montes-Perez, 24, and Gary Cuevas-Reyes, 27, all living in Philadelphia, PA.  In addition to the conspiracy count, the defendants are charged in multiple counts of distribution of heroin, and distribution of heroin within 1,000 feet of a school or playground.  Jorge Balbuena, Jose Garcia, Evlin Dejesus, Gary Cuevas-Reyes, Pedro Montes-Perez were arrested this morning.  Montes-Perez is a U.S. citizen.  The remaining defendants are citizens of the Dominican Republic residing in Philadelphia.

 

According to the indictment, the conspiracy existed from March 2014 to October 2015 and was led by Jorge Balbuena and supplied wholesale amounts of heroin, cocaine, cocaine base (“crack”), and other controlled substances to other wholesale drug distributors, and to street corner drug operations.   

 

If convicted, each defendant faces lengthy prison terms.

 

The case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement, and the Philadelphia Police Department.  It is being prosecuted by Assistant United States Attorney David. E. Troyer and Marianne Shelvey of the United States Department of Justice’s Organized Crime and Gang Section.

 

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

PHILADELPHIA - James J. McCullagh, 60, of Meadowbrook, PA, pleaded guilty today 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.  U.S. District Court Judge Nitza I. Quinones Alejandro scheduled a sentencing hearing for March 29, 2016.  The defendant faces a maximum statutory sentence of 25 years in prison, a possible fine, supervised release, and a $510 special assessment.

 

McCullagh, who owns James J. McCullagh Roofing, failed to provide fall protection equipment to his employees. 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.  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 - Anthony Cooper, 67, of Philadelphia, Pennsylvania, was charged by information with one count of theft of government funds, announced United States Attorney Zane David Memeger.  According to the information, the defendant received retirement benefits intended for his mother, after his mother’s death in February 1991 until December 2011.  The defendant’s alleged actions resulted in a loss to the government of approximately $69,528.          

 

If convicted, the defendant faces a statutory maximum sentence of 10 years in prison, up to three years of supervised release, restitution to the government of $69,528, a fine, and a $100 special assessment.

 

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

 

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

PHILADELPHIA - Anthony R. Angelo, 69, of Philadelphia PA was charged today by Information with wire fraud and bank fraud, announced United States Attorney Zane David Memeger.

 

The Information alleges that Angelo was the owner of Aracor Search & Abstract Services, Inc., a title company that provided real estate title insurance services and transactions, located in Philadelphia, Pennsylvania.  Because Ararcor was in debt, Angelo caused funds from dedicated escrow accounts to be used to pay off other escrow obligations and operating costs, causing a loss of over $1 million to the victims.

 

If convicted the defendant faces a maximum possible sentence of 70 years in prison, a $1.5 million fine, a five-year period of supervised release and a $300 special assessment.

 

The case was investigated by Federal Bureau of Invesitgation and is being prosecuted by Assistant United States Attorney Daniel A. Vélez.

 

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

PHILADELPHIA - Stephen Jemal, 59, of Brooklyn NY, was charged today by indictment with three counts of bank fraud.  These offenses arise from the defendant's obtaining a series of loans and loan modifications, extensions and renewals from Republic First Bank (Republic) totaling approximately $9.3 million, by submitting fraudulent financial documents that falsely stated that Jemal owned a stock portfolio valued, at different times, from approximately $26 million to approximately $60 million, when, in fact, his stock portfolio never contained stock worth as much as $2 million.  When Republic began foreclosure proceedings after a nearly five-year relationship with Jemal, the loans were in default by an aggregate total of almost $6 million.

 

If convicted the defendant faces a maximum possible sentence of 90 years in prison.

 

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.

 

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

ALLENTOWN - Brent S. Galletta, 43, of Nazareth, PA, was sentenced today to 50 years in prison, followed by a lifetime of supervised release, for using a facility and means of interstate commerce to attempt to entice an individual, whom he believed was seven-years old, to engage in illegal sexual activity.  The jury found Galletta guilty on September 2, 2015 of that charge plus one count of transportation of child pornography and one count of possession of child pornography.  In addition to the prison term, U.S. District Court Judge Edward G. Smith ordered Galletta to pay a $10,000 fine, and a $300 special assessment.

 

Galletta posted several advertisements on the website Craigslist.com seeking to find “pervy dads.”  Galletta was attempting to find another man who had access to young children that he could abuse sexually.  Galletta communicated with at least five separate individuals attempting to find such a target.  The craigslist posting was brought to the attention of Agent Justin Leri of the Office of the Pennsylvania Attorney General.  Agent Leri responded to Galletta’s Craigslist post in an undercover capacity and stated he had a seven-year old daughter.  Galletta communicated with Agent Leri, believing him to be a father of a seven-year-old that would allow Galletta access to the child for sexual purposes.  A meeting was arranged and Galletta showed up in a parking lot in South Whitehall Township, Pennsylvania in order to meet the seven-year old and her father.  When he arrived he was arrested by Agent Leri.  Galletta had over two dozen images of prepubescent girls in bathing suits on his mobile phone as well as three images depicting the sexual abuse of minors that he had deleted.  Galletta also sent an image of child pornography to another man through the internet. 

 

The case was investigated by the Federal Bureau of Investigation, and the Pennsylvania Attorney General's Office. It was prosecuted by Assistant United States Attorney Sherri A. Stephan.

PHILADELPHIA - Alyson Cesarz, 43, of Allen Park, Michigan, was charged by information, filed December 1, 2015, with five counts of wire fraud, announced United States Attorney Zane David Memeger.  As the owner of Parklane Commercial Lending, Cesarz told clients that she would seek financing for their commercial projects in amounts ranging from fifteen million dollars to almost one billion dollars.  She required the clients to pay a large, allegedly refundable deposit, of over $100,000, and for one client over $500,000.  Cesarz did not obtain financing for the clients or return the refundable deposits.  Four victims were defrauded of at least $1,148,000.

 

If convicted, the defendant faces a maximum possible sentence of 100 years of imprisonment, three years of supervised release, a fine, and a $500 special assessment.

 

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

 

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

PHILADELPHIA - Kurt Eichert, 51, of Wyndmoor, Pennsylvania, was charged today by Indictment with one count of production of child pornography, two counts of distribution of child pornography, and one count of possession of child pornography announced United States Attorney Zane David Memeger. The indictment alleges that on or about June 2005 to on or about September 2015, Eichert produced child pornography.  Eichert is alleged to have surreptitiously recorded children changing their clothes in Dorney Park in Allentown, Pennsylvania.  Eichert is also charged with distributing child pornography in May 2015 and possessing images of child pornography in September 2015. 

 

If convicted the defendant faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of 80 years.

 

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 Immigration and Customs Enforcement Homeland Security Investigations (“HSI”) and the Abington Township Police Department.  It is being prosecuted by Special Assistant United States Attorney Josh A. Davison.

 

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

PHILADELPHIA - Saud Saleh, 30, of Philadelphia, PA, was sentenced today to three years in prison for defrauding the United States Department of Agriculture (USDA)’s Supplemental Nutrition Assistance Program (SNAP), formerly known as the  food stamp program. The defendant had pleaded guilty to charges of trafficking in SNAP benefits and committing wire fraud.

 

The defendant owned and operated Twinz Meat Market, a retail grocery store, now defunct, that was located at 3083 Kensington Avenue in Philadelphia. At his guilty plea hearing, the defendant admitted that he knowingly trafficked in SNAP benefits, and directed his employees to traffic in SNAP benefits, by purchasing those benefits from customers of Twinz Meats, which is illegal. The defendant admitted that within a 12-month period, he was responsible for a program loss of $1,125,586.

 

In addition to the prison term, United States District Court Judge Gerald J.  Pappert ordered restitution of $1,125,586 to USDA and three years of supervised release.

 

The case was investigated by the United States Department of Agriculture Office of Inspector General, and U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Floyd J. Miller.

PHILADELPHIA – Cottman Check Cashing, LP, located in Philadelphia, PA, and Steven Kessler, 50, of Cherry Hill, NJ, one of Cottman’s owners, were charged by indictment, unsealed today, with eight counts of aiding and abetting aggravated structuring of financial transactions, announced United States Attorney Zane David Memeger.  Kessler was also charged with conspiring to structure financial transactions.

 

According to the indictment, between 2009 and 2011, Kessler conspired with a sports bookmaker, Jerold Cohen, charged elsewhere, to help the bookmaker cash 76 checks from one of his bettors, totaling approximately $670,000, without triggering a report that would have to be provided to the U.S. government.  Kessler allegedly helped Cohen cash those checks at Cottman Check Cashing.

 

According to the indictment, Cohen obtained the 76 checks from a single bettor to settle the bettor’s losses.  Cohen allegedly knew that a report would have to be filed with the government if he cashed any check over $10,000.  To conceal the nature of his business and the total amount of his income, Cohen allegedly directed the bettor to write the checks in amounts just under $10,000.  The bettor did as he was instructed and, because he was often in debt in an amount that far exceeded $10,000, the bettor would provide Cohen with several checks at one time, each for an amount just under $10,000.  Cohen then took those checks to Cottman Check Cashing to be cashed because of his longtime friendship with Kessler.  It is alleged that Cohen knew Kessler would help him by cashing the checks so as to avoid triggering a report that must be filed with the government when a cash transaction is over $10,000.  Kessler’s alleged assistance included cashing the checks himself, failing to keep business records of most of the transactions, and making Cottman Check Cashing available to perform the money laundering.  The indictment charges that the structured transactions were part of a pattern of illegal activity involving transactions of more than $100,000 in a 12-month period.

 

If convicted, Kessler faces up to 85 years in prison, three years of supervised release, a fine, a $900 special assessment, and criminal forfeiture of up to $670,175.  Cottman Check Cashing faces supervised release, a fine, an $800 special assessment, and criminal forfeiture of up to $670,175.

 

The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.

 

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

PHILADELPHIA – Luis Manuel Gomez Rodriguez, 37, and Jose Antonio Rosario Reyes, 55, both of the Dominican Republic, with local residences in Philadelphia, Pennsylvania, are charged in a four count indictment with conspiracy to distribute 1 kilogram or more of heroin, possession with intent to distribute 1 kilogram or more of heroin, possession with intent to distribute 1 kilogram or more of heroin within 1,000 feet of the Abraham Lincoln High School in Philadelphia, and possession of a firearm in furtherance of a drug trafficking felony, announced United States Attorney Zane David Memeger.  The indictment charges that Gomez Rodriguez and Rosario Reyes possessed with intent to distribute approximately 12 kilograms of heroin at a residence on Battersby Street in the Mayfair section of Philadelphia, as well as a loaded 9 mm handgun and extensive drug trafficking and packaging paraphernalia on October 22, 2015.

 

According to the indictment, the named defendants were members of a drug organization that received, prepared and packaged multi-kilogram quantities of heroin for street sale and distribution in Philadelphia.  The organization used the premises at 7563 Battersby Street in Philadelphia, as a stash house for concealing and storing kilogram quantities of heroin, as a location to cut, prepare and package heroin for street sale in Philadelphia, as well as a place to store proceeds from drug sales and to maintain records from those sales.

 

The indictment charges that the organization concealed inside 7563 Battersby Street premises multi-kilogram quantities of heroin intended for cutting and packaging, placing the kilograms of heroin inside pieces of furniture containing hidden compartments.  It is further charged that the organization employed multiple workers on a periodic basis to mill, prepare, cut and package heroin for street sale and maintained in the basement of the premises extensive paraphernalia, including strainers, grinders, presses, scales, a bucket, ziplock bags, glassine envelopes and two large ziplock bags containing cutting substances, all of which were for use in the cutting and packaging of heroin for street sale.  The indictment further charges that, on October 22, 2015, at the time of a warrant-authorized search of the 7563 Battersby Street premises, Luis Manuel Gomez Rodriguez and Jose Antonio Rosario Reyes, both workers in the drug organization, possessed inside the residence approximately 12 kilograms of heroin, which were found concealed in compartments inside two pieces of furniture, a 9 mm Kel-Tech Luger handgun loaded with 7 live rounds of ammunition, approximately $79,286 in United States currency, and a significant amount of heroin trafficking paraphernalia and packaging material.

 

If convicted, Luis Manuel Gomez Rodriguez and Jose Antonio Rosario Reyes each face a maximum penalty of life imprisonment, an effective mandatory minimum sentence of 15 years’ imprisonment, lifetime supervised release, at least 5 years supervised release, a fine of $30,250,000, and a $400 special assessment.

 

This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.

PHILADELPHIA - Michael Alvaro, 37, of Philadelphia, PA, was charged today by Indictment with impersonation of a federal officer, impersonator conducting a search, and possession of unregistered firearms, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about November 17, 2014, Alvaro identified himself as a federal law enforcement officer of the Drug Enforcement Agency (DEA), and assisted in the detention of another person and search of that person’s vehicle.  The indictment also alleges that on May 12, 2015, Alvaro identified himself as a federal law enforcement officer of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in order to gain access to a secured area of an Amtrak derailment.  The indictment further alleges that Alvaro unlawfully possessed unregistered firearms.

 

If convicted the defendant faces a maximum possible sentence of 29 years in prison, possible fine, special assessment $500, up to three years of supervised release.

 

The case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Denise S. Wolf.

 

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

The former president of a defense contractor providing services to the U.S. military in Iraq was sentenced today to 12 months and one day in prison for his role in a scheme to pay more than $1.2 million in bribes to U.S. Army contracting personnel in exchange for being awarded lucrative defense contracts, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania.

U.S. District Judge Joel H. Slomsky in the Eastern District of Pennsylvania sentenced Justin W. Lee, 37, of Philadelphia, the former president of Lee Dynamics International (LDI), who pleaded guilty in July 2011 to one count of conspiracy to commit bribery and four substantive counts of bribery. 

In connection with his guilty plea, Lee admitted that as the president of LDI and previously as an officer of American Logistics Services (ALS), a Kuwaiti company providing supplies to the U.S. military in Iraq, he paid multiple bribes in the form of cash, airline tickets, trips and hotel stays, among other things, to military contracting personnel in exchange for their agreement to take official action to award lucrative contracts to both LDI and ALS.

Lee’s father and co-defendant, George Lee, who was the CEO of both companies, was sentenced to 54 months in prison in July 2015 for one count of bribery.  This marks the end of a long-running investigation, which began in 2006, that led to the conviction of seven other defendants, including several high-ranking contracting officers.

The U.S. Army Criminal Investigation Command, the Defense Criminal Investigative Service and the U.S. Department of Homeland Security – Immigration and Customs Enforcement investigated the case, and the Office of the Special Inspector General for Iraq Reconstruction, the FBI and the Internal Revenue Service previously contributed to the investigation.  Trial Attorneys Richard B. Evans and John Keller of the Criminal Division’s Public Integrity Section and the U.S. Attorney’s Office of the Eastern District of Pennsylvania prosecuted the case.  Mark W. Pletcher and Emily W. Allen of the U.S. Attorney’s Office of the Southern District of California previously provided substantial assistance.

PHILADELPHIA - Deborah Cellucci, 45, of Mullica Hill, New Jersey, was sentenced today to one year and one day in prison for sending a false levy release that hampered the Internal Revenue Service's efforts to collect taxes owed by Cellucci's day care business, announced United States Attorney Zane David Memeger.

 

In 2013, Cellucci fell behind on her business taxes.  An IRS revenue agent worked out a payment plan with Cellucci. Also, as part of its collection efforts, the IRS sent a Notice of Levy to an agency that paid subsidies to Cellucci’s day care under the subsidized child care program.  That levy directed that the $28,103.20 subsidy slated for the day care be paid to the IRS.  In June 2013, Cellucci faxed a false levy release from her home in New Jersey to the agency, in Philadelphia, in charge of paying the day care subsidy funds.  As a result of the false levy release, a check for $28,103.20 that the agency had written to the U.S. Treasury was canceled, and a new check in the same amount was made out to the day care. Cellucci endorsed the check, and deposited the proceeds into her business account.

 

In addition to the prison term, United States District Judge Berle M. Schiller also ordered the defendant to pay $28,103.20 in restitution, and to serve a three-year period of supervised release.

 

The case was investigated by the Treasury Inspector General for Tax Administration and was prosecuted by Assistant United States Attorney Elizabeth Abrams.

PHILADELPHIA – Dale Wiles, 48, of Allentown, PA and Eron Lloyd, 35, of Reading, PA, both pleaded guilty today to conspiracy charges, announced United States Attorney Zane David Memeger.  At the time of their respective offenses and until earlier this month, Wiles and Lloyd were public officials in Allentown and Reading, respectively.

 

During his guilty plea hearing, defendant Dale Wiles admitted the following:

 

Wiles was an attorney and an Assistant City Solicitor for the City of Allentown whose duties included the coordinating of certain Allentown municipal projects to attorneys in the private sector.  One of these projects was the City of Allentown’s 2014 contract for the collection of delinquent real estate taxes and municipal claims (“the revenue collection”).  Wiles was tasked with recommending a law firm to the City of Allentown’s Purchasing Agent.  Wiles then formed a committee, comprised of himself and two other officials (“the revenue committee”). 

 

In response to a request for proposals (RFP) created by the revenue committee, several competitors submitted proposals for the revenue collection contract, including entities identified here as Law Firm #1, Law Firm #2, and a partnership between a revenue collection company and Law Firm #3 (“the Partnership”).  Wiles and the other revenue committee members graded each of these proposals using pre-established criteria which were consistent with the representations in the RFP and memorialized these scores on preprinted government forms (“the score sheets”).  The original three score sheets reflected that the committee members had given the highest aggregate scores to Law Firm #2 and Law Firm #1, and that none of the committee members had concluded that the Partnership’s proposal would be the most advantageous to the City.  The committee members discussed the proposal and agreed that Law Firm #2’s proposal would be the most advantageous to the City. 

 

Before the committee could recommend Law Firm #2’s proposal to the Purchasing Agent, however, another Allentown official, identified here as Public Official #4, intervened in order to steer the contract to the Partnership so that the Partnership and its affiliates would then provide money, including campaign contributions, to Public Official #3 and his campaign operatives.  Public Official #3 was an elected official in Allentown who had authority over Public Official #4 and Wiles.  Wiles learned from Public Official #4 that the contracting process was being corruptly manipulated in order to steer the 2014 revenue collection contract to the Partnership.  Wiles understood that Public Official #4 was acting with the approval of, and for the benefit of, Public Official #3, and that Wiles was expected to help create the false impression that the Partnership had won the contract on the merits.  Thus, rather than quit or risk termination, Wiles joined and assisted the conspiracy, taking certain overt acts to help achieve its objectives. 

 

For example, to help Public Official #4 create the false impression that the Partnership’s proposal was advancing on the merits, Wiles created a new version of the score sheet on which he had documented his actual evaluation of the proposals submitted in response to the RFP.  The false score sheet contained, among other things, artificially inflated scores for the Partnership which did not reflect Wiles’ actual evaluation but were created to help the corrupted award process withstand future scrutiny.  And like other members of the conspiracy, Wiles engaged in repeated acts of obstruction of justice in order to help conceal the conspiracy. In 2014, and then again in 2015, Wiles concealed certain score sheets and other records from a federal grand jury after learning that these documents would be responsive to federal grand jury subpoenas.  Wiles also lied to FBI agents in order to conceal material facts about the award of the revenue collection contract to the Partnership, including the steps that he and Public Official #4 took to ensure that the Partnership was awarded the 2014 revenue collection contract. 

 

During his guilty plea hearing, defendant Eron Lloyd admitted the following:

 

Public Official #1 was a Reading public official who had the power to sign into law ordinances that had been passed by City Council.  Public Official #1 was also a candidate in the Democratic Party’s primary election, scheduled for May 19, 2015.  Lloyd reported to Public Official #1, as both a public official and as a member of Public Official #1’s campaign team. 

 

On numerous occasions, Public Official #1 solicited, demanded, and received campaign contributions from parties who sought to receive or had previously received, favorable official action, including the awarding of contracts, from the City of Reading (“the vendors”).  Public Official #1, directly and through Lloyd and others, communicated to certain vendors that they were expected to provide him with campaign contributions in return for past or prospective official action by the City of Reading.  Public Official #1 caused and attempted to cause certain municipal staff, including Lloyd, to take official action favorable to certain vendors who had provided, or were expected to provide, campaign contributions benefiting Public Official #1.

 

To limit the influence of money on candidates seeking public office, Section 1012 of Reading’s Code of Ethics established limits on campaign contributions to, and certain reporting requirements for, certain political candidates.  To limit the influence of money on public officials in Reading, Section 1006(H) of the Code of Ethics prohibits the awarding of “no-bid contracts” to donors who have given campaign contributions in excess of those limits.  Prior to the 2015 Democratic primary, Public Official #1 believed that he had received contributions which were prohibited by the Code of Ethics, and that his best chance of winning re-election would require keeping these contributions and raising additional funds which would also be prohibited by the Code of Ethics.  Public Official #1 decided to engineer a repeal of the relevant sections of the Code by bribing the President of City Council, Francisco Acosta, in violation of federal criminal law.  Lloyd assisted Public Official #1 with this scheme and helped devise and implement it.

 

Public Official #1 and Lloyd decided to offer Acosta an $1,800 “loan” to the campaign committee of Acosta’s ally ( “Public Official #2”), which would be “forgiven” upon Acosta successfully orchestrating a repeal of Sections 1012 and 1006(H).  Acosta accepted the payment on April 10, 2015 and then, three days later, introduced legislation to eliminate certain restrictions in the Code of Ethics in accordance with Public Official #1’s wishes (“the repeal bill”).  As agreed to by Public Official #1, Acosta, and Lloyd, the repeal bill would have repealed Section 1012 in its entirety, thereby eliminating the restrictions on campaign contributions and nullifying Section 1006(H)’s prohibition on awarding “no-bid contracts” to certain donors.

 

To conceal his participation in the scheme, Public Official #1 sought to finance any campaign contributions to Public Official #2 with funding from third parties.  Public Official #1 also sought to offer Acosta additional funding for the campaign committee of Public Official #2 as a reward for Acosta successfully orchestrating the passage of the repeal bill, although only a single payment – an $1,800 check payable to the campaign of Public Official #2 (“the bribe check”) – was ever provided to Acosta. When Acosta took possession of the bribe check, he agreed that, in order to avoid scrutiny of his agreement with Public Official #1 and Lloyd, neither Acosta nor Public Official #2 would deposit the bribe check until a later date.  Acosta then attempted to persuade other members of City Council to pass the repeal bill before the primary election by falsely asserting that he was motivated solely by the best financial interests of Reading and by concealing that he had received the bribe check. 

 

After the FBI confronted Acosta, Acosta withdrew from the conspiracy and absented himself from the vote on the repeal bill.  The repeal bill was unanimously defeated and Public Official #1 was defeated in the Democratic primary election.  After the election, Public Official #1 believed that his best chance of retiring his campaign debt was to obtain additional campaign contributions from parties who sought favorable official action, including the awarding of contracts, from the City of Reading before the expiration of Public Official #1’s term in office.  Public Official #1 and Lloyd  conspired to retire Public Official #1’s campaign debt by causing city contracts, collectively worth millions of dollars, to be awarded to vendors who would be willing to provide Public Official #1 with sufficiently large campaign contributions, all in violation of federal criminal law.  Lloyd took numerous steps to help Public Official #1 accomplish this goal. 

 

After accepting the guilty pleas, United States District Judge Juan R. Sanchez scheduled a sentencing hearing on March 2, 2016 for Wiles, and on March 3, 2016 for Lloyd.  Wiles faces a maximum possible sentence of 20 years in prison, a fine, three years of supervised release, and a $100 special assessment.  Lloyd faces a maximum possible sentence of five years in prison, a fine, three years of supervised release, and a $100 special assessment.  For his role in conspiring with Public Official #1 to repeal the Code of Ethics, Acosta pleaded guilty on August 5, 2015 and is awaiting sentencing. 

 

These cases are being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Pennsylvania State Police.  They are being prosecuted by Assistant United States Attorneys Joe Khan and Nancy Beam Winter. 

PHILADELPHIA - Aura Voicu, 24, and Silviu Serban, 30, both of Bucharest, Romania, were charged today by Indictment with conspiracy to commit bank fraud, attempted bank fraud, and aiding and abetting, announced United States Attorney Zane David Memeger.

 

According to the indictment, between at least May 25, 2015 and mid-June 2015, the defendants engaged in a skimming scheme involving Automated Teller Machines (ATMs) belonging to various banks that the defendants targeted.  The defendants allegedly installed devices on various Philadelphia bank ATMs to capture Personal Identification Numbers (PINs) used by bank customers.

 

If convicted, the defendants face a maximum possible sentence of 35 years in prison, a five year term of supervised release, a possible fine and a $200 special assessment.

 

The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.

 

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

PHILADELPHIA - Christopher Castillo, 22, of Philadelphia, was charged in an Indictment with producing and selling counterfeit credit cards, possessing credit card making equipment, and aggravated identity theft of a Scotiabank credit card account holder, announced United States Attorney Zane David Memeger.  According to the indictment, among the items found in Castillo’s possession were over 150 white plastic credit card templates, multiple partially manufactured credit cards, multiple sheets of holographic stickers resembling the holograms found on Visa and MasterCard cards, documents containing personally identifiable information, and a desktop credit card printer. 

 

If convicted the defendant faces a mandatory minimum sentence of two years in prison with a maximum possible sentence of 35 years in prison, three years supervised release, a fine, and a $400 special assessment. 

 

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

 

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

A federal jury today convicted Yujie Ding, 53, and Yuliya Zotova, 41, of Center Valley, Pennsylvania, of six counts of wire fraud for defrauding NASA’s Small Business Innovation Research (SBIR) Program. U.S. District Court Judge Harvey Bartle III scheduled sentencing hearings for March 2, 2016.

In August 2009 and July 2010, Ding and Zotova submitted proposals to NASA, seeking funding for scientific research. The defendants’ proposals claimed that Zotova would serve as principal investigator for research that would be conducted at their business, ArkLight.  The defendants’ proposals claimed further that Arklight would subcontract some of the work to Lehigh University, where Ding was employed. Instead, the defendants used ArkLight as a front to funnel federal grant money to themselves for research performed by students and others working in Ding’s university lab who were not supervised by Zotova. The defendants sent invoices to NASA, via interstate electronic transmissions, for research in which the jury found that ArkLight had not participated.

The case was investigated by the National Aeronautics and Space Administration's Office of Inspector General, the Defense Criminal Investigative Service, and the United States Air Force Office of Special Investigations.  It is being prosecuted by Assistant United States Attorneys Elizabeth F. Abrams and Gregory B. David.

Taminco US, Inc. (“Taminco”), today, pleaded guilty to and was sentenced for six counts related to shipping monomethylamine (MMA) to customers in Mexico for whom required identification had not been obtained and failing to report the disappearance of shipments of MMA.  Taminco is a chemical company headquartered in Allentown, PA.  United States District Court Judge Edward G. Smith ordered the company to pay a criminal penalty of $860,374, which comprises a criminal fine of $650,000 and forfeiture of $210,374.  The company also reached a civil settlement with the United States concerning the same conduct and agreed to pay a civil fine of $475,000.

Taminco manufactured, distributed, sold and exported MMA.  MMA is classified as a “List I” chemical and regulated by the Drug Enforcement Administration (DEA) because it is a necessary chemical for one method of manufacturing methamphetamine, a controlled substance.  Due to its List I chemical classification, a manufacturer is required to confirm the identity and verify the legitimacy of any customer to whom it ships the product. The manufacturer is also required to immediately report to the DEA any unusual or excessive loss or disappearance of the product.  Taminco manufactured MMA at its plant in Pace, Florida, and had the MMA packaged in 55 gallon drums before shipping it to the border at Laredo, Texas.

Between February and June of 2010, Taminco shipped six loads of MMA to two different customers in Mexico for whom Taminco had not obtained required identification.  Each load was approximately 16,800 kilograms of MMA.  Some shipments of MMA disappeared and Taminco failed to promptly report the disappearances to the DEA as required by statute. 

DEA discovered evidence of some barrels from missing shipments in August 2011, and discovered some of the missing barrels of MMA in December 2011 and April 2012.  In August 2011, DEA agents located wrappers from the June 2010 shipment of MMA drums in an abandoned residence in San Luis, Arizona.  In December of 2011, Customs and Border Protection officers intercepted five Taminco drums of MMA when an individual (not associated with Taminco) attempted to transport them by truck into Mexico at Nogales, Arizona.  In April of 2012, DEA agents found and seized six additional Taminco drums of MMA at a self-storage unit in Nogales, Arizona. The drums that DEA seized were from March 2010 shipments to the unverified Mexican customer.

Taminco’s civil settlement with the United States resolves civil claims arising from 19 shipments of MMA in early and mid-2010 that were authorized by Taminco without proper verification of the existence and validity of the foreign business entities ordering the List I chemicals.  According to the civil claims, Taminco also could not verify that certain of the MMA shipments reached their intended recipient in Mexico, and Taminco failed to report to DEA that those shipments were missing or that delivery could not be verified.   

As part of the civil settlement, Taminco has entered into a Memorandum of Agreement (MOA) with the DEA under which Taminco has agreed to comply with certain heightened compliance requirements regarding the manufacture, sale and shipment of listed chemicals.  DEA has agreed to forego administrative action against Taminco’s DEA registrations, subject to Taminco’s compliance with the terms of the MOA. 

The case was investigated by the Yuma, AZ Resident Office and Scranton Resident Office of the Drug Enforcement Administration with assistance from Customs and Border Protection.  It was prosecuted by Assistant United States Attorneys Albert S. Glenn and Charlene Keller Fullmer. 

PHILADELPHIA - Rannie Henley, Sr., 78, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger.  According to the Information, the defendant received retirement benefits intended for his mother, after his mother’s death in January 2011 until his fraud was discovered in February 2015.  The defendant’s alleged actions resulted in a loss to the government of approximately $60,567.          

 

If convicted, the defendant faces a substantial period of incarceration, a three‑year period of supervised release, restitution to the government of $60,567, a fine of up to $250,000, and a $100 special assessment.

 

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

 

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

PHILADELPHIA - George Smith, 26, of Philadelphia, PA, was charged today by Indictment with Hobbs Act robberies and attempted Hobbs Act robbery, announced United States Attorney Zane David Memeger.  

 

According to the indictment, on August 20, 2015, Smith robbed the Pizza Hut restaurant at 2916 N. Broad Street, in Philadelphia and, a day later, robbed the Domino’s Pizza at 2628 N. Broad Street.  It is further alleged that on August 24, 2015, Smith robbed the 7-Eleven at 2042 N. Broad Street. If convicted of all charges, Smith defendant faces a maximum possible sentence of 60 years in prison, a fine, up to three years of supervised release, a $300 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.

Stephen Voudouris, Sr., 60, of Newtown Square, PA was sentenced today to a year and a day in prison and six months home detention pursuant to his prior guilty plea to conspiracy, trafficking in counterfeit goods, smuggling counterfeit goods into the United States and wire fraud, announced United States Attorney Zane David Memeger. 

The defendant owned and operated Misikko.com, headquartered in Newtown Square, Pennsylvania, an online retailer of luxury hair care appliances, including flat irons and blow dryers.  Misikko.com was not an authorized dealer of brands such as CHI, T3 and Babyliss.  As he admitted at his guilty plea, Voudouris, Sr. sought out Chinese manufacturing companies from which he and his employees could purchase cheap goods bearing counterfeit trademarks of CHI, T3 and Babyliss. Through Misikko.com, the defendant then resold the counterfeit goods as authentic, for top dollar, to the American public. 

In addition, at the direction of Voudouris, Sr., in a scheme to drive consumers to their website and maximize profits, Misikko.com also purported to sell "Breast Cancer Awareness" products.  The Misikko.com website was designed to make consumers believe that breast cancer charities would benefit from the purchase of certain pink products. For some products, Misikko.com represented that $25 from every purchase would benefit a prominent breast cancer foundation, but no donations were ever made to a breast cancer charity.

In addition to the prison sentence, the Honorable John R. Padova ordered the defendant to pay $150,346 in restitution to the victim companies and individuals, as well as a fine of $10,000.

The case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorneys Alicia M. Freind and Mary E. Crawley.

PHILADELPHIA - Jeffrey Chernoff, 35, of Richboro, PA was charged today by Indictment with bank robbery and attempted bank robbery, announced United States Attorney Zane David Memeger.  

 

According to the indictment, on October 26, 2015, Chernoff robbed the Bank of America branch at 1801 E. Allegheny Avenue in Philadelphia, and the PNC Bank branch at 1001 E. Erie Avenue.  If convicted the defendant faces a maximum possible sentence of 40 years in prison, up to three years of supervised release, a possible fine, and a $200 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.

Michael Hernandez, a/k/a “Jimmy,” 31, and Santo Rondo, 45, both citizens of the Dominican Republic, were charged today by indictment with distribution of 100 grams or more of heroin in Philadelphia, announced United States Attorney Zane David Memeger.  Hernandez and Rondo are charged with distributing more than 100 grams of heroin.  Hernandez is also charged with distribution of more than 100 grams of heroin, possession with intent to distribute more than 100 grams of heroin, possession of a firearm in furtherance of a drug trafficking felony and possession of a firearm by a convicted felon.

According to the indictment, on July 30, 2015, Michael Hernandez distributed approximately 157 grams of heroin in Philadelphia, Pennsylvania.  It is further charged that on August 12, 2015, Hernandez and Santo Rondo distributed approximately 200 grams of heroin in Philadelphia. The indictment further charges that on August 13, 2015, Michael Hernandez possessed with intent to distribute approximately 600 grams of heroin in Philadelphia, and that he also possessed a loaded .40 caliber Smith & Wesson semi-automatic pistol in furtherance of a drug trafficking offense for which he could be charged federally, as well as for possession of a firearm by a convicted felon.

If convicted, Michael Hernandez faces a statutory maximum sentence of life in prison with a mandatory minimum term of 10 years, up to a lifetime of supervised release, a possible fine, and a $500 special assessment. Santo Rondo faces a statutory maximum sentence of 40 years in prison with a mandatory minimum term of five years, up to a lifetime of supervised release, a possible fine, and a $100 special assessment.

This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.

Barbara Stanley, 62, of Nottingham, PA, was sentenced yesterday to three years in prison after conviction at trial of five counts of wire fraud, two counts of theft of government funds, one count of making false statements, and two counts of making false statements regarding workers' compensation benefits, announced United States Attorney Zane David Memeger. 

At trial, in August 2015, the defendant had been convicted of scheming to defraud the Department of Labor out of workers’ compensation benefits between July 2006 and December 2010 by concealing the fact that she had recovered from her work-related injury. She was also convicted of stealing the approximately $164,000 in workers’ compensation benefits that she received during that time period, and making false statements about her medical condition to the Department of Labor.  The defendant was further convicted of stealing approximately $35,000 in Office of Personnel Management (OPM) disability retirement benefits that she received at the same time that she was receiving workers’ compensation benefits, and falsely denying her receipt of the OPM disability retirement benefits, resulting in total losses to the government of approximately $199,000.

In addition to the prison sentence, the Honorable Paul S. Diamond also imposed three years of supervised release to follow incarceration.  A hearing to determine the exact amount of restitution is scheduled to take place on December 1, 2015. 

The case was investigated by the United States Postal Service Office of the Inspector General, the Department of Labor Office of the Inspector General, and the Office of Personnel Management Office of the Inspector General and was prosecuted by Assistant United States Attorneys MaryTeresa Soltis and Mary E. Crawley.

 

William J. O’Brien III, 50, of Philadelphia, Pennsylvania was charged in a superseding  indictment, unsealed today, with conspiring to defraud the Food and Drug Administration (‘FDA”) and a separate conspiracy to commit health care fraud, announced United States Attorney Zane David Memeger.  O’Brien, a former doctor of osteopathic medicine, was previously charged in July 2015 with operating a “pill mill” from his medical offices.  The defendant awaits trial on those earlier charges.

 

Today’s indictment alleges that defendant O’Brien and others made misrepresentations to the FDA in order to obtain clearance for a so-called hyperbaric chamber that O’Brien marketed under the name Hyperox 101.  A hyperbaric chamber is a sophisticated medical device in which patients breathe 100% pure oxygen for a prolonged period in a pressurized environment.  To achieve a therapeutic effect, the chamber is pressurized to at least 1.4 atmospheres below sea level.  The pressure creates a biochemical reaction that increases oxygen absorption into the blood.  A hyperbaric chamber for treating patients must be constructed using pedigree steel and certified as a pressure vessel for human occupancy. 

 

According to the indictment, Hyperox 101 as constructed did not meet these standards; rather, it was built by welding together pieces of a used propane tank.  The indictment charges that defendant O’Brien knew of the deficiencies in Hyperox 101, but passed it off as a medical device by submitting false documentation to the FDA.  The indictment alleges that, due to its substandard construction, Hyperox 101 did not provide patients with the therapeutic benefits associated with hyperbaric oxygen treatment, but instead posed potential risks to patients. 

 

The indictment charges that defendant O’Brien used the unapproved device to defraud Medicare and other health benefit programs.  From in or around March 2007 through in or around August 2011, O’Brien obtained millions of dollars based on fraudulent claims that he caused to be submitted to Medicare and IBC, among other health care benefit programs.  O’Brien caused fraudulent claims to be submitted of approximately $15 million for medically unnecessary and potentially unsafe treatments.  O’Brien obtained reimbursement from Medicare and other insurers of approximately at least $4.2 million based on the fraudulent claims.

 

If convicted, defendant O’Brien faces substantial prison terms and fines, and is subject to criminal forfeiture proceedings.

 

The case was investigated by the Federal Bureau of Investigation, FDA Office of Criminal Investigations, and the Department of Health and Human Services - Office of the Inspector General.  It is being prosecuted by Assistant United States Attorney M. Beth Leahy.

Rannie Henley, Sr., 78, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger.  According to the Information, the defendant received retirement benefits intended for his mother, after his mother’s death in January 2011 until his fraud was discovered in February 2015.  The defendant’s alleged actions resulted in a loss to the government of approximately $60,567.       

If convicted, the defendant faces a substantial period of incarceration, up to three years of supervised release, restitution to the government of $60,567, a possible fine, and a $100 special assessment.

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

 

PHILADELPHIA - Laura Wayne, 38, of Coatesville, Pennsylvania, was sentenced today to 36 months in prison for seven counts of wire fraud in connection with her embezzlement from Comcast employee retirement accounts.  Wayne was an administrator of the employee retirement accounts at the Comcast Corporation when she created dummy retirement accounts and used those accounts to defraud Comcast of approximately $124,876.

From April of 2013 through January of 2014, Wayne used the names, dates of birth, and social security numbers of her family and relatives, to create what appeared to be 401(k) retirement accounts managed by Fidelity Company for the benefit of Comcast employees.  She used her access to Comcast records to fraudulently fund each account for the maximum amount allowed by law and to obtain the matching funds from Comcast. She then created fake user names and passwords to transfer all of the money in the dummy Fidelity accounts to her personal bank accounts. When she was caught, she lied to both Comcast and an FBI agent and falsely claimed that she had paid the money back.

In addition to the prison term, U.S. District Court Judge Wendy Beetlestone ordered restitution in the amount of $124,876, three years of supervised release, restitution, and a $700 special assessment.

The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Laurie Magid.

PHILADELPHIA - Mark Wilkens, 57, of Philadelphia, PA, was charged by indictment, unsealed today, with manufacturing child pornography and possession of child pornography, United States Attorney Zane David Memeger.  According to the indictment, Wilkens was working as a volunteer photographer for WXPN radio station when, on various dates from August 2010 through July 4th, he photographed prepubescent children at public events to capture and attempt to capture sexually explicit images.  Wilkens was arrested this morning.

 

The indictment charges five counts of manufacturing and attempting to manufacture child pornography and one count of possession of child pornography which Wilkens allegedly downloaded from the Internet. If convicted of all charges, Wilkens faces a mandatory minimum sentence of 15 years with a possible advisory sentencing guideline range 210 to 262 months in prison.

 

This case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michelle Rotella.

 

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

 

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

PHILADELPHIA - Terence Wyatt, 58, of King of Prussia, PA, was sentenced yesterday to 10 years in prison for possession of child pornography.  Wyatt pleaded guilty on April 22, 2015, to possessing in excess of 600 images and videos from the Internet that depicted children being sexually abused by adults as well as videos that depicted sadistic and masochistic images of prepubescent children.

 

This investigation began as part of an ongoing undercover Internet investigation of child exploitation violations relating to the use of peer to peer (“P2P”) file sharing networks being conducted by the Abington Township Police Department.  The purpose of the investigation was to identify those individuals possessing and sharing child pornography using P2P networks.  An Abington Police Department detective located a computer on a P2P Network sharing files of interest in child pornographic investigations.  The user of this file-sharing program was Wyatt.  The detective was able to download images and movies from Wyatt’s files that depicted children under the age of 18 years old engaged in sexually explicit conduct including sexual abuse by adults.  Following execution of a search warrant, detectives arrested Wyatt on May 16, 2013. 

 

The images were then reviewed by a special agent with Homeland Security Investigations (HSI) who verified that over 2005 images contained child pornography, approximately 95% of which were of prepubescent child pornography.  When HSI agents reviewed Wyatt’s electronic media they determined that it contained over 150,000 images, the majority of which were child erotica and child pornography.

 

In addition to the 10 year prison term, U.S. District Court Judge Gene E.K. Pratter ordered 10 years of supervised release, $1,000 restitution, and a $100 special assessment.

 

The case was investigated by the Detective Division of the Abington Township Police Department, the Montgomery County District Attorney’s Office, and Homeland Security Investigations.  It was prosecuted by Assistant United States Attorney Jeffery W. Whitt.

 

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, 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.

PHILADELPHIA - Wayne Tiffany, 57, of Downingtown, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger.  According to the information, the defendant received Social Security benefits intended for his deceased paramour, after her death in April 2010 until his fraud was discovered in February 2015.  The defendant’s alleged actions resulted in a loss to the government of approximately $39,028.         

 

If convicted, the defendant faces a substantial period of incarceration, a 3‑year period of supervised release, restitution to the government of $39,028, a fine of up to $250,000, and a $100 special assessment.

 

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

 

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

PHILADELPHIA - Ronald Mays, 63, of Wilmington, Delaware, pleaded guilty today to three counts of attempted possession of cocaine with intent to distribute.  Mays worked for the Port of Wilmington in Delaware at the time.  U.S. District Court Judge Michael Baylson scheduled a sentencing hearing for February 11, 2016.  Mays faces a possible advisory sentencing guideline range of 57 to 71 months in prison.

 

Mays was working at the Port of Wilmington in Delaware and had access to the ships that came into the port.  In October of 2013, agents with Homeland Security Investigations were investigating possible drug smuggling involving ships that traveled to the port from countries in Central and South America.  After a cooperating defendant contacted Mays and told Mays that a group of traffickers that they both knew would resume running drugs out of the port, Mays agreed to look in to security at the port.  Mays and the cooperating defendant had several meetings about unloading the drugs from a ship and also conducted a dry run.  On December 29, 2013, an HSI special agent placed sham cocaine in a container on a ship docked at the Port of Wilmington.  On January 6, 2014, Mays told the cooperating defendant that he had the drugs and the two met for Mays to deliver the package.  Similar transactions were completed in February and March of 2014, with Mays receiving a total of $24,000 to retrieve 12 kilos of what he believed was cocaine from ships docked at the port.  After the March transaction, officers followed Mays and pulled him over on I-95.

 

In addition to the prison term, Mays faces possible fines, at least four years of supervised release, and a special assessment of $300.

 

The case was investigated by Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Sozi Pedro Tulante.

Linda Weston, 55, of Philadelphia, was sentenced today to life plus 80 years in prison.  Weston pleaded guilty on Sept. 15, 2015, to all charges in a racketeering and hate crimes case that involved holding disabled adults captive in locked closets, basements and attics in Philadelphia’s Tacony section and in other states. 

Weston pleaded guilty to racketeering conspiracy, kidnapping resulting in the death of the victim, forced human labor, involuntary servitude, multiple counts of murder in aid of racketeering, hate crime, violent crime in aid of racketeering, sex trafficking, kidnapping, theft of government funds, wire fraud, mail fraud, use of a firearm in furtherance of a violent crime and false statements.  In addition to the prison term, U.S. District Court Judge Cynthia M. Rufe of the Eastern District of Pennsylvania ordered restitution of $273,463 to the Social Security Administration and a $19,600 special assessment.

From approximately 2001 through October 2011, Weston and her co-conspirators lured mentally handicapped individuals into locations rented by Weston, Jean McIntosh, Eddie Wright and others in Philadelphia; Killeen, Texas; Norfolk, Virginia; and West Palm Beach, Florida.  The group targeted mentally challenged individuals who were estranged from their families.  Once Weston convinced them to move in, she became their representative payee with social security and began to receive their disability benefits and in some instances, their state benefits.  On one occasion, Weston and one of her co-defendants took the social security and identification documents from a victim by force and then used the funds for her own and family purposes.

Weston, Jean McIntosh, Eddie Wright and others confined their victims to locked rooms, basements, closets, attics and apartments.  While confined, the captives were often isolated in the dark and sedated with drugs that Weston and other defendants placed in their food and drink.  When the individuals tried to escape, stole food or otherwise protested their treatment, Weston and others punished them by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats and hammers or other objects, including the butt of a pistol.  Some victims endured the abuse for years, until Oct. 15, 2011, when Philadelphia Police Department officers rescued them from the sub-basement of an apartment building in the Tacony section.  The enterprise victimized six disabled adults and four children.

In April 2005, Weston and a co-defendant targeted victim D.S.  They brought D.S. to a home at 2211 Glenview Avenue in Philadelphia.  D.S. was kept in the basement with the other victims, fed a substandard diet and not allowed to use the bathroom.  On June 26, 2005, D.S. was found dead in the basement.  Weston ordered other members of the household to move D.S.’s body to a different location before calling law enforcement.

In 2008, victim M.L. was living with the family.  M.L. was beaten when she tried to escape or when she begged for food and never received medical attention for any of her injuries.  After Weston moved the enterprise to Virginia in 2008, Weston confined M.L. inside a kitchen cabinet and an attic for several months.  M.L. subsequently died of bacterial meningitis and starvation in November 2008.  Weston ordered other members of the household to move M.L.’s body to a bedroom and stage the scene before calling law enforcement.  The next day the family left for Philadelphia. 

Weston’s daughter, Jean McIntosh, and co-defendant Eddie Wright have already pleaded guilty.  Co-defendants Gregory Thomas Sr. and Nicklaus Woodard are awaiting trial.

The case was investigated by the FBI, the Social Security Administration Office of Inspector General, Internal Revenue Service-Criminal Investigations, the Philadelphia Police Department and the Philadelphia District Attorney’s Office with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ West Palm Beach Field Office.  The case is being prosecuted by Assistant U.S. Attorneys Richard P. Barrett and Faithe Moore Taylor of the Eastern District of Pennsylvania.  

PHILADELPHIA - Linda Weston, 55, of Philadelphia, PA, was sentenced today to life plus 80 years in prison.  Weston pleaded guilty on September 15, 2015 to all charges in a racketeering and hate crimes case that involved holding disabled adults captive in locked closets, basements, and attics in Philadelphia’s Tacony section and in other states.  Weston pleaded guilty to racketeering conspiracy, kidnapping resulting in the death of the victim, forced human labor, involuntary servitude, multiple counts of murder in aid of racketeering, hate crime, violent crime in aid of racketeering, sex trafficking, kidnapping, theft of government funds, wire fraud, mail fraud, use of a firearm in furtherance of a violent crime, and false statements.  In addition to the prison term, U.S. District Court Judge Cynthia M. Rufe ordered restitution to the Social Security Administration of $273,463, and a $19,600 special assessment.

 

From approximately 2001 through October 2011, Linda Weston and her co-conspirators lured mentally disabled individuals into locations rented by Weston, Jean McIntosh, Eddie Wright and others in Philadelphia, Pennsylvania, Killeen, Texas, Norfolk, Virginia, and West Palm Beach, Florida. Weston and the co-conspirators targeted mentally challenged individuals who were estranged from their families. Once Linda Weston convinced them to move in, she became their representative payee with Social Security and began to receive their disability benefits and in some instances, their state benefits.  On one occasion, Weston and one of her co-defendants took the social security and identification documents from a victim by force and then used the funds for her own and Weston Family purposes.

 

Weston, Jean McIntosh, Eddie Wright and others confined their victims to locked rooms, basements, closets, attics, and apartments. While confined, the captives were often isolated, in the dark, and sedated with drugs placed in their food and drink by Weston and other defendants. When the individuals tried to escape, stole food, or otherwise protested their treatment, Weston and others punished them by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats, and hammers or other objects, including the butt of a pistol. Some victims endured the abuse for years, until October 15, 2011, when Philadelphia Police officers rescued them from the sub-basement of an apartment building in the city's Tacony section. The enterprise victimized six disabled adults and four children.

 

In April 2005, Weston and a co-defendant targeted victim Donna Spadea. They brought Donna Spadea to a home at 2211 Glenview Avenue, in Philadelphia. Donna Spadea was kept in the basement with the other victims, fed a substandard diet, and not allowed to use the bathroom. On June 26, 2005, Donna Spadea was found dead in the basement. Weston ordered other members of the household to move Donna Spadea's body to a different location before calling law enforcement.
 

In 2008, victim Maxine Lee was living with the family. Maxine Lee was beaten when she tried to escape or when she begged for food and never received medical attention for any of her injuries. After Weston moved the enterprise to Virginia in 2008, Weston confined Maxine Lee inside a kitchen cabinet and an attic for several months.  Maxine Lee subsequently died of bacterial meningitis and starvation in November of 2008.  Weston ordered other members of the household to move Maxine Lee's body to a bedroom and stage the scene before calling law enforcement.  The next day the family left for Philadelphia.

 

Weston’s daughter, Jean McIntosh, and co-defendant Eddie Wright have already pleaded guilty. Co-defendants Gregory Thomas, Sr., and Nicklaus Woodard are awaiting trial.

 

The case was investigated by the FBI, the Social Security Administration Office of Inspector General, IRS Criminal Investigations, the Philadelphia Police Department, and the Philadelphia District Attorney’s Office with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ West Palm Beach Field Office. It is being prosecuted by Assistant United States Attorneys Richard P. Barrett and Faithe Moore Taylor.

PHILADELPHIA - Cory D. Foster, 27, of Philadelphia, Pennsylvania was arraigned today on an Indictment, charging him with three counts of robbery which interferes with interstate commerce, one count of carjacking, and four counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney Zane David Memeger and Montgomery County District Attorney Risa Vetri Ferman.

 

The indictment charges that on November 18, 2014, Foster and an accomplice robbed a service station and convenience store in Trevose, Bucks County, Pennsylvania at gunpoint, stealing cash and merchandise worth about $1,000 and cash and a wallet from an employee, before escaping in a getaway car operated by an unknown driver; on December 2, 2014, Foster and an accomplice robbed a service station and convenience store in Plymouth Meeting, Montgomery County, Pennsylvania at gunpoint, stealing about $700 cash and about $2,400 worth of cigarettes and case from an elderly employee, before escaping in a getaway car operated by an unknown driver; and on December 7, 2014, Foster and an accomplice robbed a gas station and convenience store in Phoenixville, Chester County, Pennsylvania at gunpoint, stealing about $984 Pennsylvania Lottery cash, about $790 cash, and more than $4,000 worth of cigarettes and cigars. Foster then smashed a victim employee in the face, breaking his orbital eye socket, before stealing the customer’s car at gun point.  Foster and his accomplice then fled the scene, one robber in the customer’s car and the second in a getaway car.  The indictment alleges that in early February 2015, the handgun used in these crimes of violence was seized by law enforcement from Foster in the state of Delaware and that on the same date the stolen car was recovered from another person and Foster in Delaware.

 

If convicted the defendant faces a maximum possible sentence of life imprisonment, including a total mandatory minimum prison sentence of 82 years’ imprisonment consecutive to any other sentence imposed.

 

The case was investigated by the Federal Bureau of Investigation, Plymouth Township Police Department, Bensalem Township Police Department, Schuylkill Township Police Department, the Delaware State Police, and the Montgomery County District Attorney’s Office.  The case will be prosecuted by Special Assistant United States Attorney and Montgomery County Assistant District Attorney Gabriel C. Magee.

 

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

PHILADELPHIA - Mohamed Mansaray, 39, of Springfield, Pennsylvania, was charged by indictment, unsealed today, in an identity theft and tax fraud scheme, announced United States Attorney Zane David Memeger.  The indictment includes 10 counts of wire fraud, nine counts of aggravated identity theft, and 10 counts of aiding or assisting in preparation or filing of false income tax returns.  Mansaray was arrested this morning.

 

According to the indictment, defendant Mansaray defrauded the Internal Revenue Service by preparing and filing fictitious federal income tax returns that used the names and Social Security numbers of children as false dependents.  The indictment alleges that Mansaray charged clients $800 to $1,000 to falsely include a dependent on their income tax return.  By falsely adding dependents to the returns, Mansaray wrongfully claimed for clients a tax exemption for each false dependent, the child tax credit, the child and dependent care credit, and the earned income tax credit.

 

On July 2, 2014, Mansaray pleaded guilty to an information that charged him with conspiracy and 13 counts of aiding or assisting in preparation or filing of false income tax returns in a similar scheme.  Mansaray admitted falsifying federal income tax returns for clients by fraudulently adding dependents to returns for the tax years 2008 through 2012.  He is awaiting sentencing for those charges.

 

If convicted, the defendant faces a possible advisory sentencing guideline range of 51 to 57 months in prison for the new charges, including a mandatory minimum terms of 24 months in prison for aggravated identity theft, possible fines, up to three years of supervised release, and a $3,000 special assessment.

 

The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.  It is being prosecuted by Assistant United States Attorney Karen M. Klotz.

 

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

A federal jury today convicted Chaka Fattah Jr., 32, of Philadelphia, of 22 of 23 counts in connection with a scheme to defraud banks, the Internal Revenue Service (IRS) and the Philadelphia School District of hundreds of thousands of dollars.  Senior U.S. District Judge Harvey Bartle III of the Eastern District of Pennsylvania scheduled a sentencing hearing for Feb. 3, 2015.  The defendant faces a substantial term of imprisonment, restitution to the IRS, fines, a special assessment and supervised release.

Between 2005 and 2012, Fattah Jr.: made false statements to banks to obtain loans; made false statements to banks and the Small Business Administration (SBA) to settle loans for less than what was owed; filed false federal income tax returns; failed to pay federal taxes; and stole from the Philadelphia School District, which had received federal funds for its operations.

The evidence at trial showed that Fattah Jr. obtained numerous business lines of credit through false and fraudulent statements to local banks and used the funds primarily for personal expenses – including car payments, gambling debts, restaurant and club expenses, utilities, clothing, electronics, retail purchases, charitable donations, jewelry, legal fees and personal credit card expenses – rather than business expenses, as the loan terms required.  These false statements involved fictitious earnings information that Fattah Jr. supplied for entrepreneurial companies which he claimed that he operated, including 259 Strategies LLC (259 Strategies) and Chaka Fattah Jr. & Associates.  Fattah Jr. claimed that 259 Strategies provided educational consulting, diversity consulting and audit services, technical assistance, community relations and organizational development services to a select group of clients.  He claimed that Chaka Fattah Jr. & Associates performed research and consulting concerning the development of computer centers.

In 2011, Fattah Jr. received a loan from United Bank for $50,000 intended for “working capital to support business operations.”  Instead, he used the funds to make car payments, to pay down more than $15,000 in personal credit card debt and to pay more than $33,000 in gambling debts at area casinos.  The charges total approximately $206,000 in bank loans received through false misrepresentations or fraud.

Fattah Jr. defaulted on several lines of credit and provided false information to two banks, to the SBA, which had insured the bank loans, and to an SBA investigator in order to attempt to settle the debts for less than what was owed.  Fattah Jr. falsely claimed that 259 Strategies was out of business at the time he was attempting to settle his debts in 2010, and that he was earning only $2,500 per month.  In fact, during 2010, 259 Strategies was intact and, through this company, Fattah Jr. was earning between $6,250 and approximately $37,500 per month.

Fattah Jr. also stole funds supplied by the federal government to the Philadelphia School District, while acting as the chief operating officer of a Philadelphia company that provided educational services to “at risk” and other students through contracts with the school district.  Fattah Jr. provided false expense information and inflated salary figures for teachers and administrative staff on budgets submitted to the school district, which made payments consistent with the budgets provided and concealed the theft of the funds from the school district.

For tax years 2005, 2006 and 2008, Fattah Jr. filed false federal income tax returns and failed to pay federal income tax on a timely basis of approximately $51,141 on more than $150,000 in reported income during 2010.

The case was investigated by the FBI, IRS-Criminal Investigation and the U.S. Department of Education, with the cooperation of the Philadelphia School District’s Office of Inspector General.   It is being prosecuted by Assistant U.S. Attorney Paul L. Gray and Trial Attorney Eric Gibson of the Criminal Division’s Public Integrity Section.