Eastern District of Pennsylvania

PHILADELPHIA - Delvin Barnes, 38, of Charles City County, Virginia, pleaded guilty today to kidnapping, announced United States Attorney Zane David Memeger. U.S. District Court Judge J. Curtis Joyner scheduled a sentencing hearing for January 6, 2016.  Barnes faces 35 years in prison.

On November 2, 2014, at approximately 9:40 p.m., in the area of 100 W. Coulter Street in Philadelphia, Barnes violently grabbed a 22-year old woman from a sidewalk as she walked home.  Barnes dragged the victim down the street and forced her into his car.  A video recording capturing the abduction shows the victim struggling with the defendant in her attempt to get away.  The victim struck Barnes in the head with a hammer after he forced her into his car.  The defendant threatened that if she did not stop fighting, he would kill her.

Barnes drove to Maryland with the victim, bound by her wrists, in the trunk of the car.  On November 5, 2015, federal agents arrested Barnes in Jessup, Maryland, and the victim was rescued.  She identified Barnes as her abductor.

The case was investigated by the FBI, the Philadelphia Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshal’s Service with assistance from the Charles City County Sheriff’s and New Kent County Sheriff’s Offices.  It is being prosecuted by Assistant United States Attorney Jeanine Linehan.

PHILADELPHIA – Leaford George Cameron, 62, of Burlington, NJ, was charged today by indictment with mail fraud, wire fraud, and false statements, announced United States Attorney Zane David Memeger.  The indictment alleges that from 2003 through 2015, Cameron operated a fraudulent law practice, pursuant to which he pretended to be a lawyer in order to defraud approximately 74 separate victim “clients,” who paid Cameron for what they believed was legitimate legal representation.  Cameron’s victims were residents of Pennsylvania, New York, New Jersey, Connecticut, Florida, Illinois, Jamaica, and India.

Pursuant to the charged scheme, Cameron operated a fake law firm, appeared and spoke in court as the lawyer representing his victims, and filed various legal motions and forms in his victims’ cases in which he indicated – often under the penalty of perjury – that he was an attorney licensed to practice law in the Commonwealth of Pennsylvania.  Cameron used four separate Pennsylvania Attorney Identification Numbers when filing legal forms, all of which belonged to other actual licensed Pennsylvania attorneys.  Cameron fraudulently represented clients in various legal matters, primarily immigration matters pending before U.S. Citizenship and Immigration Services (“USCIS”), a component of the U.S. Department of Homeland Security, and the Executive Office for Immigration Review (“EOIR”), a component of the U.S. Department of Justice.

If convicted of all charges, the defendant faces a statutory maximum sentence of 75 years in prison, up to $1.5 million in fines, three years of supervised release, and a $600 special assessment.

The case was investigated by Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney James A. Petkun.

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

PHILADELPHIA - Raymond Justis, 43, of Philadelphia, PA was charged today by indictment with one count of sex trafficking of a minor, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible sentence of life imprisonment, a $250,000 fine, a lifetime period of supervised release and a $100 special assessment.

The case was investigated by the Federal Bureau of Investigation, the Aston Township Police Department and the Delaware County District Attorney's Office.  It is being prosecuted by Assistant United States Attorney Michelle Morgan.

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

Viktor Popa, 23, and Ianic Repesciuc, 25, both citizens of Moldova, were charged today by indictment with conspiracy to commit bank fraud, bank fraud, and aggravated identity theft.  These offenses arise from the defendants’ scheme to place card reading devices, commonly known as “skimmers,” and hidden cameras in a position to capture access device numbers and Personal Identification Numbers (PINs) from unsuspecting customers using ATM facilities at TD Bank branches in Pennsylvania, New York and Connecticut, in order to steal money under the care, custody, and control of TD Bank using those stolen account numbers and PINs.

If convicted, each defendant faces a maximum possible sentence of 39 years in prison.

The case was investigated by Homeland Security Investigations (“HSI”) and the United States Secret Service. It 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.

PHILADELPHIA - Ramzi Haddad, 45, of Bethlehem, PA, pleaded guilty today to an information charging him with one count of conspiracy to commit bribery offenses, announced United States Attorney Zane David Memeger.  After accepting Haddad’s guilty plea, U.S. District Judge Juan R. Sanchez scheduling a sentencing hearing for December 18, 2015.

During the guilty plea hearing, Haddad admitted the following:

The defendant was an entrepreneur who had business interests in Allentown, including potential contracts with the City of Allentown and the actual and prospective ownership of properties which were regulated and overseen by governing authorities in Allentown, including Public Official #3, who represented the City through an elective office.  Public Official #3 aspired to win election to a statewide elective office.  To achieve this goal, Public Official #3 knowingly sought campaign contributions in exchange for official actions that he took, attempted to take, and caused and attempted to cause the City of Allentown to take.

After repeated dealings with Public Official #3, the defendant concluded that he was intentionally acting against the defendant’s economic interests while favoring the economic interests of Public Official #3’s major donors and political allies.  Concerned that Public Official #3 would otherwise interfere with and block his projects in Allentown, the defendant further concluded that the only way to receive a “fair shake” from Public Official #3 and public officials subordinate to him was to give Public Official #3 items of value, including food, drinks, and campaign contributions. Consequently, the defendant agreed to make contributions to the various campaigns of Public Official #3 when Public Official #3 or his campaign staff solicited campaign contributions.  By December 2014, the defendant had explicitly agreed to give campaign contributions to Public Official #3 in exchange for certain official actions that the defendant expected from the City of Allentown.  Over the course of the next few months, the defendant made numerous donations in exchange for certain official actions that he expected from the City of Allentown.

On April 17, 2015, Public Official #3 formally announced his candidacy for another elective office, this time for a position in federal government, during a campaign finance reporting period which would end on June 30, 2015.  Before making this announcement, Public Official #3 had told the defendant about his plan to run for the federal office, explained his strategy of maximizing contributions prior to the end of the June 30 reporting period, and asked the defendant to raise money for the federal campaign by bundling his own contribution with the contributions of others.  The defendant ultimately agreed to raise $25,000 for Public Official #3’s federal campaign before the June 30 deadline.

On May 18, 2015, Public Official #3 traveled from Allentown to New York City in order to meet with the defendant and discuss the official “help” that Public Official #3 could provide in return for the contributions that the defendant would raise for Public Official #3’s federal campaign.  In consideration for the defendant’s fundraising commitment, Public Official #3 agreed to intervene with municipal inspections of one of the defendant’s buildings in Allentown.

On  June 29, 2015, the defendant delivered to Public Official #3 approximately $15,000 in checks, all made payable to the federal campaign.  Public Official #3 reminded the defendant of his pledge to raise a total of $25,000, advised that he bundle additional checks and “back date” them to a date prior to June 30, 2015, and restated his own ability to take official action which could affect the defendant.  The next day, the defendant delivered to Public Official #3’s campaign staff two checks, totaling $6,500, both made payable to Public Official #3’s federal campaign.  These checks were intended to replace a previous check which the defendant had delivered to Public Official #3 the day before

As part of his agreement with Public Official #3, the defendant, at Public Official #3’s request, also paid for the food and beverage bills when the two met to discuss the defendant’s business interests.  During the course of exchanging campaign contributions for official action by Public Official #3, the defendant and Public Official #3 made numerous interstate phone calls and traveled between states, typically between New York and Pennsylvania. Public Official #3 took numerous steps to destroy or avoid creating any records that would show a linkage between his official actions and campaign contributions from donors such as the defendant.  For example, on June 29, 2015, Public Official #3 instructed the defendant to immediately delete from his mobile telephone all text messages constituting evidence of the defendant discussing potential municipal contracts with Public Official #3’s campaign staff.

Haddad faces a maximum possible sentence of five years in prison, a $250,000 fine, three years of supervised release and a $100 special assessment.

This case was investigated by the FBI’s Allentown Resident Agency, the Pennsylvania State Police, and IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Joe Khan and Nancy Beam Winter.

Mirna Chacon-Ordonez, a/k/a “Nancy Estefany Chacon-Ordonez,” a/k/a “Mirna Chacon-Del Cid,” a/k/a “Mirna Chacon,” 33, of Easton, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The Indictment alleges that on or about June 28, 2015, Chacon-Ordonez, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about May 21, 2000, January 26, 2009, and October 2, 2009.

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

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

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

PHILADELPHIA - Randolph Scott, 72, of Doylestown, PA, an attorney whose practice included estate and probate matters, was sentenced today to 48 months in prison for defrauding a client’s estate of more than $2.3 million. Scott maintained a law office – Randolph Scott Associates – in Warrington, PA. He pleaded guilty on March 25, 2015 to one count each of mail fraud, tax evasion and attempting to interfere with administration of internal revenue laws, and three counts of failure to file income tax returns.

Between December 2005 and October 2011, while representing the estate of John C. Bready, Scott diverted approximately $2,317,917.67 of estate funds to his law office accounts. Because the estate was valued at more than $6 million at the time of Bready’s death in 2005, federal law required that a federal estate tax return be filed which would have resulted in approximately $520,351 being paid to the Internal Revenue Service. Scott purposefully failed to file the required form in order to maintain sufficient money in the estate to pay its beneficiaries and to avoid detection of the theft.

After the estate’s executor died in 2009, Scott failed to disclose the executor’s death so that Scott could continue to receive money intended for the estate at his law firm. Scott would then forge the deceased executor’s signature and deposit funds intended for the estate into accounts under his control. Scott had the successor executor sign a document renouncing the position of successor executor so that Scott could continue to forge the signature of the deceased executor and divert money belonging to the estate.

In addition to the prison term, U.S. District Court Judge J. Curtis Joyner ordered restitution to the estate in the amount of $2,317,917.67, three years of supervised release, and a $375 special assessment.

The case was investigated by the IRS Criminal Investigations and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Judy G. Smith.

PHILADELPHIA – Separate indictments were unsealed today charging four current and two former correctional officers for the Philadelphia Prison System with attempting to deliver OxyContin pills and, in some cases, a cellular telephone to inmates in exchange for cash payments.   Each defendant is charged, separately, with attempted extortion and attempted distribution of controlled substances, while one defendant (John Wesley Herder) is also charged with making false statements to law enforcement officers.  The defendants, all of whom are from Philadelphia, are: John Wesley Herder, 49, employed at the Curran-Fromhold Correctional Facility (“CFCF”);  Bryant Fields, 43, employed at The Detention Center; George Kindle, 29, employed at The House of Corrections; Marc Thompson, 23, formerly employed at The House of Corrections; Dupree Myers, 27, formerly employed at CFCF; and Joseph Romano, 31, previously employed at The Philadelphia Industrial Correctional Center (“PICC”) and currently employed at the Riverside Correctional Facility.

The indictments were announced today by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge William F. Sweeney, Jr., and Philadelphia Prisons Commissioner Louis Giorla.  Each indictment charges a defendant with agreeing to deliver a cellular telephone and/or pills to a prisoner in exchange for a cash payment of between $500 and $1,500.  To obtain the contraband and payment, each defendant 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 the defendant, and the defendant subsequently smuggled the contraband past prison security and delivered it to an inmate.

According to the indictment, defendant John Wesley Herder agreed to supply a CFCF prisoner with 100 OxyContin (oxycodone) pills and a cellular telephone in exchange for a $1,000 cash payment.  On October 17, 2013, in Philadelphia, Herder met with Person #1 and Person #1 provided Herder with 100 pills, represented to contain OxyContin (oxycodone), a Nokia cellular telephone, and $1,000 in cash. During his meeting with Person #1, Herder allegedly stated, “Just tell [the inmate] to sit tight and I got it coming to him, ok.”  On October 29, 2013, Herder allegedly provided the purported OxyContin pills and cellular telephone to the CFCF inmate. During an interview with federal law enforcement agents on June 18, 2015, Herder allegedly gave a false statement about bringing contraband into CFCF.

On or about October 11, 2013 and then again on November 15, 2013, defendant George Kindle is alleged to have delivered 100 pills, represented to contain OxyContin (oxycodone), and a cellular telephone to an inmate at The House of Corrections. In each instance, Kindle accepted a $1,000 cash payment in exchange for his agreement to deliver contraband to the inmate.

On or about September 16, 2013, defendant Marc Thompson is alleged to have delivered 100 pills, represented to contain OxyContin (oxycodone), and a Blackberry cellular telephone to an inmate at The House of Corrections in exchange for a $1,500 cash payment.

On or about March 10, 2014, defendant Bryant Fields is alleged to have delivered 50 pills, represented to contain OxyContin (oxycodone), to an inmate at The Detention Center in exchange for a $500 cash payment.

On or about July 29, 2014, defendant Joseph Romano is alleged to have delivered 100 pills, represented to contain OxyContin (oxycodone), to an inmate at PICC in exchange for a $1,000 cash payment.

Between December 22, 2014 and December 29, 2014, defendant Dupree Myers is alleged to have delivered at least 71 pills, represented to contain OxyContin, and an LG cellular telephone to an inmate at CFCF in exchange for a $1,000 cash payment.

“Prison safety depends on prison guards acting with honesty and integrity,” said Memeger.  “Prison guards who violate security procedures by smuggling drugs and other contraband to inmates undermine that safety and make an inherently dangerous environment more dangerous.”

“Correctional officers willing to sell their services are not only violating their oath, but they are deliberately choosing to place their colleagues and the very public they are charged with protecting into harm’s way,“ said Sweeney. “Commissioner Giorla and his team should be commended for the leadership they displayed in working to address a threat they identified. The FBI’s public corruption task force will continue to work with our partners to aggressively investigate allegations of corruption, especially those that impact the safety of the public.”    

“It is regrettable that sworn staff, who have an obligation to provide a lawful and secure environment in our jails, chose to offer their badges for sale and pervert their authority for personal gain,” said Giorla. “When any corrections employee engages in corrupt activity, they endanger their colleagues, those in custody, and the public.  These indictments are the result of a lengthy and thorough investigation sought by the Philadelphia Prisons to address a growing number of contraband seizures in our jails. We hope the message is clear: the Philadelphia Prison System will have no place for staff memebers who use the power of their position to engage in criminal acts.”

If convicted, defendants Thompson, Fields, Romano, and Myers face a statutory maximum sentence of 40 years in prison; defendant Herder faces a statutory maximum sentence of 45 years in prison; defendant Kindle faces a statutory maximum sentence of 80 years in prison.  Each defendant also faces possible fines, supervised release, and special assessments.

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.

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

PHILADELPHIA - Shirley Goldwire, 68, of Philadelphia, Pennsylvania, was sentenced today to 18 months in prison for two counts of theft of government funds and was ordered to pay $264,021 in restitution to the government. She pleaded guilty on April 20, 2015 to two counts of conversion of government funds.

From 1998 through 2012, Goldwire stole retirement benefits intended for her husband by forging his name on checks tied to his bank account and by creating a false power of attorney over her dead husband’s affairs.  In addition, the defendant stole benefits intended for a friend of her ex-husband, who was also deceased.  The defendant obtained this money by using a debit card tied to the account.

The Social Security Administration discovered the defendant’s fraud through its Centenarian Project, a project in which Social Security field office employees attempt personal contact with beneficiaries, who are at or around 100 years of age, to verify that they are alive and receiving their benefits. When the Social Security Administration began investigating whether Goldwire’s husband was alive, the defendant lied.  She also had her son impersonate her dead husband via a phone call to a Social Security employee on two separate occasions.  The defendant’s actions resulted in a loss to the government of $264,021.             

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.

Linda Weston, 55, of Philadelphia, Pennsylvania, pleaded guilty today 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.  U.S. District Court Judge Cynthia M. Rufe scheduled a sentencing hearing for Nov. 5, 2015.  Weston has agreed to receive a sentence of life plus 80 years in prison, restitution, fines, supervised release and special assessments.

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 Weston Family purposes.

Weston, McIntosh, 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 Oct. 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 Spadea to a home at 2211 Glenview Ave., in Philadelphia.  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, Spadea was found dead in the basement.  Weston ordered other members of the household to move Spadea’s body to a different location before calling law enforcement.

In 2008, victim Maxine Lee was living with the family.  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 Lee inside a kitchen cabinet and an attic for several months.  Lee subsequently died of bacterial meningitis and starvation in November of 2008.  Weston ordered other members of the household to move 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, McIntosh, and co-defendant 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 U.S. Attorneys Richard P. Barrett and Faith Moore Taylor. 

PHILADELPHIA - Linda Weston, 55, of Philadelphia, PA, pleaded guilty today 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.  U.S. District Court Judge Cynthia M. Rufe scheduled a sentencing hearing for November 5, 2015. Weston has agreed to a sentence of life plus 80 years in prison, restitution, fines, supervised release, and special assessments.

From approximately 2001 through October 2011, Linda Weston and her co-conspirators lured mentally handicapped individuals into locations rented by Weston, Jean McIntosh, Eddie Wright and others in Philadelphia, Pennsylvania, Killeen, Texas, Norfolk, Virginia, and West Palm Beach, Florida. The group 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 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 of 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, 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 - Moni Son and Sreang Po, both 60, both naturalized U.S. citizens living in Philadelphia, were charged by indictment, unsealed today, with conspiracy to defraud the United States and failure to collect and pay over employment taxes, announced United States Attorney Zane David Memeger.

From 2007 through 2008, Son and Po were corporate officers of Asian American Labor Connection, an employee leasing corporation located in Philadelphia from 2007 through 2008.  As corporate officers of Asian American Labor Connection, Son and Po were required to collect and remit, on a quarterly basis, Federal Insurance Contribution Act (FICA) taxes to the Internal Revenue Service arising from the wages that they paid their employees.

According to the indictment, during the period of March 31, 2007 through December 31, 2007, Asian American Labor Connection had taxable wages of $760,728.73, but only reported $88,288.00 as taxable wages.  During the period of March 31, 2008 through December 31, 2008, according to the indictment, Asian American Labor Connection had taxable wages of $751,438.43, but only reported $91,647.43 as taxable wages to the IRS.

If convicted the defendants face a maximum possible sentence of 10 years in prision, a fine of $ 500,000, a special assessment of $200, and three years of supervised release.

The case was investigated by IRS Criminal Investigations and is being prosecuted by Assistant United States Attorney Floyd J. Miller.

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

PHILADELPHIA - William Kinsley, 67, of Langhorne, PA, was sentenced today to 135 months in prison for distribution of child pornography.  Kinsley, a retired Lieutenant with the Philadelphia Fire Department, used the screen name “fire,” to troll the Internet for child pornography and re-distribute some of the illegal child pornography that he found.  He pleaded guilty on February 17, 2015.

Kinsley possessed a ThinkPad and two computers.  A forensic examination of the three devices revealed 344 images of child pornography in unallocated space and one 23 minute long child pornography video in a temporary file in the AOL directory.  Among the child pornography images on Kinsley’s computer were many for which the National Center for Missing and Exploited Children can establish the victim was a real child.  Included among these are the 23 minute video and many still images.

In addition to the prison term, U.S. District Court Judge Stewart Dalzell ordered 10 years of supervised release, a $10,000 fine, restitution of $25,000, and a $100 special assessment. 

The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Paul G. Shapiro.

PHILADELPHIA – Zahar Tkach, also known as Alex Tkach, of Bensalem, PA, was charged by indictment, unsealed today, in a scheme to defraud Medicare of approximately $1.25 million by charging for unnecessary ambulance services, announced by United States Attorney Zane David Memeger. Tkach is charged with health care fraud, obstruction of a federal audit and laundering criminal proceeds.

Tkach owned  NovaCare Ambulance Services, Inc. (also called “Novocare Ambulance”) and Cardiac Care Ambulance, Inc. (“Cardiac Care”), operating primarily in Philadelphia and the surrounding counties. According to the indictment, between June 2008 and April 2012, Tkach recruited and transported dialysis patients who needed treatments three times per week, thereby allowing him to bill Medicare extensively for those patients, when the ambulance services were not medically necessary for those patients. When Medicare audited the 2011 billings of Novocare and Cardiac Care, the defendant is alleged to have obstructed the audits by altering, and directed employees to alter, ambulance transport records and he falsified medical authorization forms, all of which he submitted to the Medicare auditors to support the fraudulent billings.

According to the indictment, the two ambulance companies shared resources, including employees and patients. Tkach managed both companies’ operations, finances and billings. The defendant also is alleged to have laundered the fraud proceeds in financial transactions of $10,000 or more.

Tkach was charged with 15 counts of health care fraud, two counts of obstructing a federal audit, and two counts of laundering monetary transactions over $10,000.  If convicted, he faces up to 10 years in prison for each count of health care fraud; up to five years in prison for each count of obstruction of a federal audit; and 10 years in prison for money laundering. The defendant also faces a possible fine of $250,000 per count.

This case was investigated by the FBI and the Department of Health and Human Services-Office of the Inspector General.  It is being prosecuted by Assistant U.S. Attorney Andrea Foulkes.

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

PHILADELPHIA - Michael Sullivan, 51, of Philadelphia, was charged in a criminal information, filed today, with one count of failure to report and pay payroll taxes, announced United States Attorney Zane David Memeger.  The charges relate to Sullivan’s failure to report and pay payroll taxes for employees of the Fireside Tavern, South Marshall Street, Philadelphia. Sullivan was an owner and operator of the Tavern.  Sullivan was a judge for the former Philadelphia Traffic Court.

If convicted, Sullivan faces a maximum possible sentence of one year imprisonment, one year supervised release, a $25,000 fine, and a $25 special assessment.

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

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

PHILADELPHIA - Peter Douglas McGarry, 50, a native of Ireland, was sentenced today to 47 months in prison for possession of child pornography and accessing child pornography on the internet with the intent to view child pornography.  McGarry possessed child pornography on a Microsoft computer storage account on April 5, 2014, and was accessing internet sites with the intent to view child pornography on five dates between September 6, 2014 and October 25, 2014.   McGarry was in Philadelphia when he committed the offenses.

McGarry pleaded guilty on April 14, 2015, admitting that on April 5, 2014, he possessed five images of prepubescent minors engaged in sexually explicit conduct, which were produced using minors engaged in such conduct.  He agreed that he had kept these images on a Microsoft Skydrive account associated with his email address, and which was his account which he accessed with his cell phone.  McGarry also admitted that he accessed sites on the internet which displayed images of prepubescent minors engaged in sexually explicit conduct, which were produced using minors engaged in such conduct, on specific dates in September and October of 2014.  McGarry’s cell phone also contained an additional 61 images of minors engaged in sexually explicit conduct.  In addition, records from Google concerning McGarry’s gmail account, associated with his computer, showed that he had accessed 25 child exploitation images on the internet between August and October of 2014.         

In addition to the prison term, U.S. District Court Judge Wendy Beetlestone ordered five years of supervised release, a $1,000 fine, a $600 special assessment, forfeiture of his cell phone and his computer.

The case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorney Albert S. Glenn.

PHILADELPHIA - Roma Gardner-Kunkle, 55, of Philadelphia, Pennsylvania, was charged today by information with one count of theft of government funds, announced United States Attorney Zane David Memeger.  The defendant was approved for SSI benefits based on an application she made in February 1987.  In 1995, she married and was obligated to inform the Social Security Administration (“SSA”) of changes to her household composition, household income, and marital status.

According to the information, in December of 2005, during a redetermination interview with SSA, the defendant falsely stated that she had never been married and that she lived alone.  She made the statements in order to receive more Supplemental Security Income benefits than she was entitled to receive.  The defendant’s alleged actions resulted in a loss to the government of approximately $48,071.70.        

If convicted, the defendant faces a possible term of imprisonment, up to three years of supervised release, restitution to the government in the amount of $48,071.70, 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 - Schwana Debnam, 38, of Philadelphia, PA, 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 applied for and received Federal Emergency Management Agency (“FEMA”) benefits, alleging that she had been displaced from her home as a result of Hurricane Irene.  The information charges that the representations in the defendant’s application to FEMA were false, and that, in fact, she was never displaced from her primary residence.  The defendant’s alleged actions resulted in a loss to the government of approximately $26,756.           

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 $26,756, a fine of up to $250,000, and a $100 special assessment.

The case was investigated by Homeland Security, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Bea Witzleben.

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

An indictment was unsealed today charging three people in an investment scheme, involving a Bala Cynwyd, Pennsylvania-based company, that defrauded more than 300 investors from around the country.  Troy Wragg, 34, a former resident of Philadelphia, Pennsylvania, Amanda Knorr, 32, of Hellertown, Pennsylvania, and Wayde McKelvy, 52, of Colorado, are charged with conspiracy to commit wire fraud, conspiracy to commit securities fraud, securities fraud and seven counts of wire fraud, announced U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Special Agent in Charge William F. Sweeney Jr of the FBI’s Philadelphia Division.

As the founders of the Mantria Corporation, Wragg and Knorr allegedly promised investors huge returns for investments in supposedly profitable business ventures in real estate and “green energy.”  According to the indictment, Mantria was a Ponzi scheme in which new investor money was used to pay “earnings” to prior investors since the businesses actually generated meager revenues and no profits.  To induce investors to invest funds, it is alleged that Wragg and Knorr repeatedly made false representations and material omissions about the economic state of their businesses.

Between 2005 and 2009, Wragg, Knorr and McKelvy, through Mantria, intended to raise over $100 million from investors through Private Placement Memorandums (PPMs).  In actuality, they raised $54.5 million.  Wragg and Knorr were allegedly able to raise such a large sum of money through the efforts of McKelvy.  McKelvy operated what he called “Speed of Wealth” clubs which advertised on television, radio and the internet, held seminars for prospective investors and promised to make them rich.  According to the indictment, McKelvy taught investors to liquidate all their assets such as mutual funds and 401k plans, to take out as many loans out as possible, such as home mortgages and credit card debt and invest all those funds in Mantria.  During those seminars and other programs, Wragg, Knorr and McKelvy allegedly lied to prospective investors to dupe them into investing in Mantria and promised investment returns as high as 484 percent. 

It is further alleged that Wragg, Knorr and McKelvy spent a considerable amount of the investor money on projects to give investors the impression that they were operating wildly profitable businesses.  Wragg, Knorr and McKelvy allegedly used the remainder of the funds raised for their own personal enrichment.  Wragg, Knorr and McKelvy allegedly continued to defraud investors until November 2009 when the SEC initiated civil securities fraud proceedings against Mantria in Colorado, shut down the company, and obtained an injunction to prevent them from raising any new funds.  A receiver was appointed by the court to liquidate what few assets Mantria owned. 

In order to lure prospective investors, it is alleged that Wragg, Knorr and McKelvy lied and omitted material facts to mislead investors as to the true financial status of Mantria, including grossly overstating the financial success of Mantria and promising excessive returns.

“The scheme alleged in this indictment offered investors the best of both worlds – investing in sustainable and clean energy products while also making a profit,” said U.S. Attorney Memeger.  “Unfortunately for the investors, it was all a hoax and they lost precious savings.  These defendants preyed on the emotions of their victims and sold them a scam.  This office will continue to make every effort to deter criminals from engaging in these incredibly damaging financial crimes.”

“As alleged, these defendants lied about their intentions regarding investors’ money, pocketing a substantial portion for personal use,” said Special Agent in Charge Sweeney Jr.  “So long as there are people with money to invest, there will likely be investment swindlers eager to take their money under false pretenses.  The FBI will continue to work with its law enforcement and private sector partners to investigate those whose greed-based schemes rob individuals of their hard-earned money.”

If convicted of all charges, the defendants each face possible prison terms, fines, up to five years of supervised release and a $1,000 special assessment.

The criminal case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Robert J. Livermore.  The SEC in Colorado investigated and litigated the civil securities fraud charges which formed the basis of the criminal prosecution.        

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

PHILADELPHIA – An indictment was unsealed today charging three people in an investment scheme, involving a Bala Cynwyd, Pennsylvania-based company, that defrauded more than 300 investors from around the country.  Troy Wragg, 34, a former resident of Philadelphia, PA, Amanda Knorr, 32, of Hellertown, PA, and Wayde McKelvy, 52, of Colorado, are charged with conspiracy to commit wire fraud, conspiracy to commit securities fraud, securities fraud, and seven counts of wire fraud, announced United States Attorney Zane David Memeger and FBI Special Agent-in-Charge William F. Sweeney, Jr.

As the founders of the Mantria Corporation, Wragg and Knorr allegedly promised investors huge returns for investments in supposedly profitable business ventures in real estate and “green energy.”  According to the indictment, Mantria was a Ponzi scheme in which new investor money was used to pay “earnings” to prior investors since the businesses actually generated meager revenues and no profits.  To induce investors to invest funds, it is alleged that Wragg and Knorr repeatedly made false representations and material omissions about the economic state of their businesses.

Between 2005 and 2009, Wragg, Knorr, and McKelvy, through Mantria, intended to raise over $100 million from investors through Private Placement Memorandums (PPMs). In actuality, they raised $54.5 million.  Wragg and Knorr were allegedly able to raise such a large sum of money through the efforts of McKelvy.  McKelvy operated what he called “Speed of Wealth” clubs which advertised on television, radio, and the internet, held seminars for prospective investors, and promised to make them rich.  According to the indictment, McKelvy taught investors to liquidate all their assets such as mutual funds and 401k plans, to take out as many loans out as possible, such as home mortgages and credit card debt, and invest all those funds in Mantria.  During those seminars and other programs, Wragg, Knorr, and McKelvy allegedly lied to prospective investors to dupe them into investing in Mantria and promised investment returns as high as 484%.

It is further alleged that Wragg, Knorr, and McKelvy spent a considerable amount of the investor money on projects to give investors the impression that they were operating wildly profitable businesses.  Wragg, Knorr, and McKelvy allegedly used the remainder of the funds raised for their own personal enrichment.  Wragg, Knorr, and McKelvy allegedly continued to defraud investors until November 2009 when the SEC initiated civil securities fraud proceedings against Mantria in Colorado, shut down the company, and obtained an injunction to prevent them from raising any new funds.  A receiver was appointed by the court to liquidate what few assets Mantria owned.

In order to lure prospective investors, it is alleged that Wragg, Knorr, and McKelvy lied and omitted material facts to mislead investors as to the true financial status of Mantria, including grossly overstating the financial success of Mantria and promising excessive returns.

“The scheme alleged in this indictment offered investors the best of both worlds – investing in sustainable and clean energy products while also making a profit,” said Memeger.  “Unfortunately for the investors, it was all a hoax and they lost precious savings.  These defendants preyed on the emotions of their victims and sold them a scam.  This office will continue to make every effort to deter criminals from engaging in these incredibly damaging financial crimes.”

“As alleged, these defendants lied about their intentions regarding investors’ money, pocketing a substantial portion for personal use,” said Sweeney. “So long as there are people with money to invest, there will likely be investment swindlers eager to take their money under false pretenses. The FBI will continue to work with its law enforcement and private sector partners to investigate those whose greed-based schemes rob individuals of their hard-earned money.”

If convicted of all charges, the defendants each face possible prison terms, fines, up to five years of supervised release, and a $1,000 special assessment.

The criminal case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Robert J. Livermore.  The SEC in Colorado investigated and litigated the civil securities fraud charges which formed the basis of the criminal prosecution.

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

Danny Ray Evans, Jr., 26, of Reading, PA, was sentenced today to 225 months in prison for production of child pornography.  Evans, who pleaded guilty to the charges, engaged in a series of “Skype” webcam discussions with at least three different 12 and 13-year old girls during which he threatened and coerced them into engaging in sexually explicit conduct on camera. Evans saved “Screen shots” of these sessions with the minors and also shared the photographs with his father who lives in Georgia.

In addition to the prison term, U.S. District Court Judge James Knoll Gardner ordered five years of supervised release and a $200 special assessment.  The defendant must also register as a sex offender.

The case was investigated by the Federal Bureau of Investigation, the Berks County Detectives, and the Berks County District Attorney's Office.  It was prosecuted by Assistant United States Attorney Michelle Morgan.

Dumar Combs, 24, of Philadelphia, Pennsylvania was charged today by indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.

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

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

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

PHILADELPHIA - Eric Roberts, 32, of Philadelphia, Pennsylvania, was arrested today on an indictment, filed August 18, 2015, charging him with possession of firearm by a convicted felon, announced United States Attorney Zane D. Memeger.

If convicted, defendant faces a mandatory minimum sentence of 15 years in prison with a maximum sentence of life, five years of supervised release, and a substantial fine.

This case was investigated by the Bureau of Alcohol, Tobacco & Firearms and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.

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

PHILADELPHIA - A civil complaint and consent decree were filed yesterday on behalf of the U.S. Small Business Administration (SBA) against Murex Investments I, L.P., a limited partnership in Philadelphia, PA, announced United States Attorney Zane David Memeger.  The complaint alleges that Murex entered into an agreement with the SBA, wherein the SBA provided Leverage to Murex through the guarantee of debentures with a face value of $8.25 million.  Under the terms of that agreement, Murex was prohibited from exceeding a certain level of Capital Impairment and the complaint alleges that Murex has violated that level.  At the time of the violation, $3.4 million of the debentures remained outstanding.

The consent decree provides for the appointment of the SBA as Receiver of Murex for the purpose of marshaling and liquidating Murex’s assets and satisfying the claims of its creditors.  It also provides for a money judgment in the amount of $2,588,850.54 plus interest from the date of the entry of judgment.

The case was referred by SBA counsel Arlene M. Embrey and is being handled by Assistant United States Attorney Richard M. Bernstein.

PHILADELPHIA - Burton Gersh, 69, and Les Sidweber, 73, both of Cherry Hill, NJ, were sentenced today for production of child pornography.  U.S. District Court Judge Paul S. Diamond sentenced Gersh to 60 months in prison and Sidweber to 48 months in prison. The defendants pleaded guilty on May 19, 2015.

According to court documents, Gersh and Sidweber transported two minors, ages 16 and 17, from the Philadelphia area, on multiple occasions, to their homes in Cherry Hill, NJ, where both men photographed the juveniles engaging in sexually explicit conduct.  Minor 1 was orphaned and had been living in the Philadelphia foster care system when a man approached her and asked asked her if she would like to go to a fancy house in Cherry Hill, New Jersey in order to have photographs taken that could be used to launch a modeling career. He eventually took Minor 1 to Gersh’s home, and she brought along her 16 year-old friend, Minor 2, whom she knew from foster care.  The defendant plied the minors with alcohol and promises of a modeling career if they would pose for a photo shoot.  He enlisted the help of Sidweber, a hobbyist photographer, and both defendants took provocative pictures of the two girls.

In addition to the prison term, Gersh must serve seven years of supervised release, pay a $150,000 fine and a $200 special assessment; Sidweber must serve five years of supervised release, pay a $50,000 fine and a $200 special assessment.   

The case was investigated by the Federal Bureau of Investigation with assistance from the Cherry Hill, New Jersey Police Department and was prosecuted by Assistant United States Attorney Michelle Morgan.

PHILADELPHIA - Zoltan Deak, 39, of Hunedoara, Romania, pleaded guilty today to conspiracy to commit wire fraud and conspiracy to commit money laundering.  U.S. District Court Judge Jeffrey L. Schmehl scheduled a sentencing hearing for December 7, 2015.  Deak faces a statutory maximum sentence of 25 years.

Deak was part of an international conspiracy which placed skimming devices on ATM machines and subsequently stole money from the compromised bank accounts.  Most of the skimming devices were placed on ATM machines in Europe.  The stolen account numbers and passcodes were then transmitted to two other members of the conspiracy, Marius Zegrean and Alexandru Dragan, who lived in Reading, Pennsylvania and who previously pleaded guilty.

Zegrean and Dragan took road trips across the United States stopping every few miles to withdraw funds from the compromised bank accounts.  In June 2013, Deak traveled to the United States intending to withdraw funds from the compromised bank accounts and to assist Zegrean place skimming devices on ATM machines in the United States.  Deak, Zegrean, and Dragan took a road trip from Reading, PA to Florida to withdraw funds from previously compromised accounts.  Returning from their trip to Florida, Sheriff Deputies in Clarendon County, South Carolina, stopped Zegrean’s Range Rover and searched their vehicle.  Inside the vehicle, Deputies found approximately $15,000 in stolen funds, 1,704 stolen bank card numbers, and various ATM skimming devices.  Wyomissing Police later seized another stolen 2,879 bank card numbers from Zegrean’s computers.

The case was investigated by the Federal Bureau of Investigation with assistance from the Clarendon County Sheriff and the Wyomissing Police.  Extradition assistance provided by the U.S. Department of Justice, Office of International Affairs.  It is being prosecuted by Assistant United States Attorney Robert J. Livermore.

PHILADELPHIA - Chad Dodge, 35, of Mullica Hill, NJ, was charged by Indictment, unsealed today, with attempted arson and false statement to law enforcement, announced United States Attorney Zane David Memeger and ATF Special Agent-in-Charge Essam Rabadi.  Dodge was arrested this morning by agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

According to the indictment, on April 14, 2014, Dodge attempted to set fire to a building located at 752 South 4th Street, Philadelphia, Pennsylvania.  It is further alleged that on July 8, 2015, Dodge knowingly and willfully made a materially false statement to a Special Agent of the ATF, by stating that he had never handled the timing device found at 752 South 4th Street when, in fact, he had handled the device.

If convicted of all charges, Dodge faces a mandatory minimum of five years in prison with a statutory maximum sentence of 25 years in prison, plus two years of supervised release, a fine of up to $500,000, and a $200 special assessment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Philadelphia Police Department, and the Philadelphia Fire Department.  It is being prosecuted by Assistant United States Attorney V. Paige Pratter.

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

Antonio Carrillo-Ortiz, 53, a native of Mexico, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.

If convicted, the defendant faces a statutory maximum sentence of 10 years in prison, a fine of up to $250,000, up to three years of supervised release, and a $100 special assessment.

The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Nancy Rue.

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

Carmen Basilis, a fugitive and owner of Basilis Tax Services, of Allentown, PA, was arrested this morning on a 58-count indictment charging tax violations, announced United States Attorney Zane David Memeger.  Basilis had been a fugitive since her indictment on September 27, 2011. She is charged with willfully aiding and assisting in the preparation and filing of false federal income tax returns.  According to the indictment, Basilis prepared materially false federal income tax returns for tax years 2005 through 2008 by inflating expenses, deductions and dependency exemptions on the tax returns which caused the filers to receive tax refunds in amounts greater than they were entitled to receive.

An initial appearance was held today in Allentown.  Basilis remains in custody pending an August 17, 2015 detention hearing.  If convicted of all charges, Basilis faces a statutory maximum of 174 years in prison, a fine of $14.5 million, a special assessment of $5,800, and one year of supervised release.

The case was investigated by Internal Revenue Service Criminal Investigations and the United States Department of Labor.  It is being prosecuted by Assistant United States Attorney Floyd J. Miller.

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

PHILADELPHIA – Barbara Stanley, 62, of Nottingham, PA, was convicted by a jury today 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.  The defendant was 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.

U.S. District Court Judge Paul S. Diamond did not yet schedule sentencing. Stanley  faces an estimated advisory sentencing guideline range of 24 to 30 months in prison.

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. It is being prosecuted by Assistant United States Attorneys MaryTeresa Soltis and Mary E. Crawley.

PHILADELPHIA - Christopher Saravello, 38, of Philadelphia, PA, was sentenced today to 96 months in prison for a scheme to extort drugs and money from drug dealers and drug buyers while working as a Philadelphia Police Officer.  Saravello pleaded guilty on February 6, 2015 to one count of conspiracy to commit Hobbs Act extortion and five counts of Hobbs Act extortion.

Between November 2011 and June 2012, while employed as a Philadelphia Police Officer assigned to the 6th District, Saravello conspired with others to rob drug dealers and drug buyers of cash and Oxycontin and other controlled substances.  Saravello’s co-conspirators would alert him to a drug transaction.  Saravello would then interrupt the planned drug transaction, driving up in a marked police vehicle, wearing a police uniform, displaying an official badge and identification, or verbally identifying himself as a police officer.  He then extorted drugs or money from his victims. In two extortions, Saravello used his personal car and, rather than wearing a full uniform, wore clothing identifying himself as a police officer. During one extortion, Saravello unholstered his weapon, pointed his gun at the victim, ordered the victim to stand against a wall and threatened to shoot him if the extortion demand was not complied with. Saravello seized the money or narcotics brought to the transaction by the buyer or seller victim and shared the seized proceeds with his co-conspirators. The scheme resulted in the illegal taking of more than $9,800 in drug money and quantities of Oxycontin and other narcotics.

In addition to the prison term, U.S. District Court Judge Eduardo Robreno ordered three years of supervised release, and a $600 special assessment.

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

PHILADELPHIA - Andre S. Lewis, 26, of Philadelphia, was charged today by indictment with bank robbery and attempted bank robbery, announced United States Attorney Zane David Memeger.  According to the indictment, on June 15, 2015, Lewis robbed the Wells Fargo Bank located at 2843 N. Broad Street, Philadelphia, PA, and, on June 25, 2015 and July 14, 2015, he attempted to rob the Wells Fargo Bank located at 601 W. Erie Avenue, Philadelphia, PA.

If convicted the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a fine of $750,000, and a $300 special assessment.

The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia District Attorney=s Office, and is being prosecuted by Assistant United States Attorney Jessica Natali.

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

PHILADELPHIA - William Keller III, 60, of Norristown Borough, PA, was charged today by indictment with receipt and possession of child pornography, announced United States Attorney Zane David Memeger.  The indictment charges Keller with five counts of receiving child pornography and one count of possessing child pornography.

If convicted, the defendant faces a mandatory minimum five years in prison up to a maximum possible statutory sentence of 110 years in prison, a fine of up to $1.5 million, and up to a lifetime of supervised release.

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 Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Paul W. Kaufman. 

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

PHILADELPHIA - William J. Frio, 59, of Springfield Township, PA, was sentenced today to 60 months in prison for his role in a tax evasion scheme involving the Nifty Fifty’s restaurant chain as well as evasion of his own taxes, structuring of funds he embezzled from the organization, and loan fraud.  Frio, who is an accountant and income tax preparer, provided services to the Nifty Fifty’s organization dating back to 1986.  He pleaded guilty on January 26, 2015, to conspiracy to commit tax evasion, four counts of filing false tax returns, loan fraud and aggravated structuring of financial transactions.  In addition to the prison term, U.S. District Court Judge Mary McLaughlin ordered $1.7 million restitution, a special assessment of $700, and four years of supervised release.

Frio and five others, including the restaurant chain’s owners and managers, participated in a long-running scheme to avoid paying millions of dollars in personal and employment taxes.  The scheme defrauded the Internal Revenue Service by failing to properly account for more than $15 million in gross receipts.  Frio and the owners and principals of Nifty Fifty’s conspired in a scheme to use skimmed cash to pay themselves and people and businesses who supplied goods and services to the Nifty Fifty’s restaurants, providing those persons and businesses with the opportunity to evade the payment of their own taxes.  In 2008, Frio submitted a false loan application to Sovereign Bank, for a $417,000 mortgage for his personal residence.  Frio  submitted to the bank bogus federal income tax returns for 2006 and 2007, and bogus Forms W-2, falsely representing he had earned substantial income from Tanfasia, Inc., when, as the defendant knew, the 2006 and 2007 tax returns that he had actually submitted to the Internal Revenue Service showed far less income than the false returns supplied to Sovereign Bank, and that the defendant had not been employed by Tanfasia, Inc. in 2006 or 2007.  Between January 2009 and November 2009, Frio knowingly structured transactions with Sovereign Bank, totaling more than $2.6 million, as part of a pattern of illegal activity involving transactions of more than $100,000 in a 12-month period.  Frio used his position as the Nifty Fifty’s accountant to embezzle millions of dollars that belonged to the organization.

The case was investigated by IRS-Criminal Investigation and the FBI. It was prosecuted by Assistant United States Attorneys Paul G. Shapiro and Nancy E. Potts.

PHILADELPHIA – Three people were charged today by indictment in an armed bank robbery in Philadelphia, PA, announced United States Attorney Zane David Memeger.  David Thomas, a/k/a David Thompson, 22, Shymeka Miller, a/k/a Shymeka Wright, 24, and Heather Lane, 26, all of Philadelphia, PA, were each charged with armed bank robbery and a related firearm charge for the July 15, 2015 armed robbery of the TD Bank at 5501 Ridge Avenue, Philadelphia.  Thomas is also charged with being a convicted felon in possession of a firearm.

If convicted of the charges, each defendant faces a mandatory minimum sentenced of seven years in prison with a maximum sentence of life, up to five years of supervised release, possible fines, restitution, special assessments, and forfeiture of the firearm and ammunition.

This case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia District Attorney=s Office.  It is being prosecuted by Assistant United States Attorney Ewald Zittlau.

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

PHILADELPHIA - Nysare Alston, 25, Christopher Corley, 27, Hassan Corley, 27, and Kenneth Thomas, 24, all of Philadelphia, Pennsylvania, were charged by indictment, unsealed today, in an alleged robbery spree involving Philadelphia check cashing businesses, announced United States Attorney Zane David Memeger.  The defendants are charged with Hobbs Act robbery and related weapons offenses.

According to the indictment, the defendants committed the following armed robberies: on February 15, 2014, the America’s Cash Express, located at 5045 Wayne Avenue, of more than $49,000; on July 12, 2014, the Diamond Check Cashing, located at 4261 Frankford Avenue, of approximately $34,000; on July 25, 2014, the Ace Check Cashing, located at 2557 W. Sterner Street, of approximately $10,000; on September 10, 2014, Don’s Check Cashing, located at 1202 E. Hunting Park Avenue, of approximately $31,000; and the attempted armed robbery, on August 2, 2014, of Ace Check Cashing, located at 4244 N. Broad Street.

If convicted of all charges, Alston and Thomas each face a mandatory minimum sentence of 82 years in prison; C. Corley faces a mandatory minimum sentence of 32 years in prison; H. Corley faces a mandatory minimum term of seven years in prison; plus fines, supervised release, and special assessments.

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

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

PHILADELPHIA - Michael Goldner, 44, of Glen Mills, PA, pleaded guilty today to a wire fraud and tax evasion after bilking would-be investors.  U.S. District Court Judge Gerald A. McHugh scheduled a sentencing hearing for November 16, 2015.

Goldner was an accountant who owned a real estate investment firm, Arcadia Capital Group, Inc., which he started in 2003 with three other people.  Arcadia ceased operations in the 4th quarter of 2009 and was out of business since the first quarter of 2009.  Prior to 2007 and continuing into 2009, Goldner solicited individuals to invest in various real estate investments.  Goldner promised a promissory note to at least one victim which, he said, would provide for regular payments and “occasional payments on the side.”  One victim invested $25,000 on July 25, 2008, via a wire from his self-directed IRA. That victim then received a promissory note.  At the time of that investment, the Arcadia bank account was overdrawn.  Immediately following that investment, Goldner repaid three earlier investors and made one payment to LG Financial, which held a mortgage on a property Goldner part owned. Records from the Arcadia bank account show that from 2007 until Goldner closed the account in 2009, nearly $10 million was withdrawn from the account with less than $1 million going toward possible real estate deals.  The remaining funds went to Goldner, his associates, and prior investors.

Goldner also owned an interest in Settlement Funds, LLC, and handled the day to day business of the company.  Records from the Settlement Funds LLC bank account, which Goldner used after closing the Arcadia account, through April 2010 show that Goldner used the majority of the funds in the account on himself, his associates, and prior investors.

Goldner also had three tax clients from whom he stole funds the clients gave him to forward to the IRS.  The clients gave Goldner funds to pay their tax obligations to the IRS but, instead, Goldner used the funds for his personal and business expenses.

Goldner faces a maximum possible sentence of 25 years in prison, possible restitution to the victims of more than $6 million, a $200 special assessment, and up to three years of supervised release. 

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

PHILADELPHIA - Francisco Acosta, 39, of Reading, PA, pleaded guilty today to an information charging him with conspiracy to commit bribery offenses, announced United States Attorney Zane David Memeger.  At the time of the offense and until this morning, Acosta was the President of Reading City Council.

Certain anti-corruption statutes were enacted in Reading, PA, to limit the influence of money on political candidates and public officials.  Section 1012 of Reading’s Code of Ethics establishes limits on campaign contributions to candidates seeking public office in Reading and Section 1006(H) of the Code prohibits the awarding of “no-bid contracts” to donors who have given campaign contributions in excess of those limits.  During the guilty plea hearing, Acosta admitted the following:

In the spring of 2015, Acosta conspired with a person identified as “Public Official #1” to repeal these restrictions before the May 19, 2015 primary election through a bribery scheme, in violation of federal criminal law.  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.  Public Official #1 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 and Acosta, 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, neither Acosta nor Public Official #2 would deposit the bribe check until a later date.

Acosta 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.  Then, on April 21, 2015, Acosta made materially false statements to FBI agents who were investigating the bribery scheme.   Acosta falsely denied that he had accepted a bribery offer from Public Official #1 and that he had ever possessed or received the bribe check.  In fact, as Acosta well knew, he had previously agreed to Public Official #1’s bribery offer and still had possession of the bribe check at the time of his false statements to the agents.

Within 24 hours of his interview with FBI agents on April 21, 2015, Acosta took affirmative steps to withdraw from the conspiracy, all without alerting other members of the conspiracy of the FBI’s inquiry into this matter.  Acosta then met with the government at his earliest opportunity in order to accept responsibility for his wrongdoing.  Acosta subsequently absented himself from the vote on the repeal bill, which was defeated unanimously by the remaining members of Reading City Council.

“Elected officials have an obligation to provide their constituents with honest services,” said Memeger. “When officials sell their services, particularly to repeal anti-corruption legislation, as Acosta admitted here, they do tremendous damage to the integrity of our governmental system.  This office remains committed to investigating and prosecuting public corruption at all levels of government.”

“When government officials agree to sell their services, they betray their constituents who rightfully expect high ethical standards,” said FBI Special Agent-in-Charge William F. Sweeney. “The FBI will continue to aggressively investigate allegations of public corruption, and work with our partners to ensure that those who violate their obligation to the public are held accountable.”

After accepting Acosta’s guilty plea, U.S. District Court Judge Juan R. Sanchez scheduled a sentencing hearing for November 18, 2015.  Acosta faces a maximum possible sentence of five years in prison, a fine of up to $250,000, three years of supervised release, and a $100 special assessment.

This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation.  It is being prosecuted by Assistant United States Attorneys Joe Khan and Nancy Beam Winter.

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

PHILADELPHIA – Mark Cooper, 35, of Philadelphia, PA, was charged by indictment, unsealed today, in a conspiracy involving more than 2,000 counterfeit monthly passes for Southeastern Pennsylvania Transportation Authority (SEPTA), announced United States Attorney Zane David Memeger. Cooper is charged with conspiracy to commit access device fraud and possession of access device making equipment.  Kimberly Adams, 35, of Philadelphia, PA, is charged by separate information, also unsealed today.

According to the indictment, between August 2013 and June 2015, Cooper conspired with Adams to produce and sell counterfeit SEPTA monthly TransPasses, which allow passengers to board SEPTA buses, trolleys and subway trains.  Once Cooper created the counterfeit passes, he gave them to Adams who then met customers, predominately City of Philadelphia employees, inside and outside of City Hall and elsewhere, and sold the counterfeit passes, which normally sell for $91, for approximately $50.  Cooper and Adams then split the proceeds.  It is alleged that between August 2013 and June 2015, the defendants counterfeited and sold in excess of 2,000 monthly passes.

“This office will not tolerate fraud involving valuable government property,” said Memeger.  “Those who counterfeit SEPTA passes, as the defendant allegedly did here, will be prosecuted and face serious criminal penalties.” 

“We’re not going to let city employees siphon money away from one of the region’s public agencies—especially not in City Hall of all places,” said Philadelphia Inspector General Kurland. “Our administrative investigation into other employees who were involved in this conspiracy is ongoing.”

If convicted of all charges, the defendants each face a statutory maximum possible sentence of 20 years in prison, a fine of up to $500,000, four years of supervised release, and a $200 special assessment.

The case was initiated by the City of Philadelphia Office of the Inspector General, jointly investigated with the FBI and the SEPTA Office of the Inspector General.  It is being prosecuted by Assistant United States Attorney Karen Marston.

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

Jesus Sandoval-Salvador, a/k/a “Miguel Sandoval-Salvador,” 35, of Reading, PA, was charged yesterday by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about April 10, 2015, Sandoval-Salvador, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about February 6, 2007 and March 1, 2013.

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

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

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

PHILADELPHIA - Tareena Hudson, 41, of Philadelphia, Pennsylvania, was charged today by information with one count of theft of government funds, announced United States Attorney Zane David Memeger.  According to the information, after her uncle’s death in November 2006 until March 2014 the defendant received retirement benefits intended for her uncle. The defendant’s alleged actions resulted in a loss to the government of approximately $102,993.         

If convicted, Hudson faces a maximum possible sentence of 10 years in prison, a three‑year period of supervised release, restitution to the government of $102,993, a $250,000 fine, and a $100 special assessment.

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

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

PHILADELPHIA - Andrew F. Dickson, 51, of Philadelphia, PA, was charged yesterday by indictment with possession of child pornography and receipt of child pornography announced United States Attorney Zane David Memeger.

The indictment alleges that on multiple dates between February 21, 2015 and July 9, 2015, Dickson knowingly possessed child pornography and knowingly accessed the Internet with intent to view child pornography.  It is further alleged that on October 19, 2013, Dickson knowingly received child pornography through the use of the Internet.

If convicted the defendant faces a mandatory minimum sentence of five years in prison with a possible advisory sentencing guideline range of up to 135 months, up to a lifetime of supervised release, a $200 special assessment, plus possible fines and restitution.

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. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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

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

PHILADELPHIA – David Nixon, 50, of Philadelphia, PA, was sentenced today to 15 months in prison for preparing fraudulent income tax returns.  U.S. District Court Judge Mary McLaughlin handed down the sentence for Nixon’s conviction, by a federal jury, on 63 counts of fraud.  In addition to the prison term, Nixon must also serve six months of house arrest, followed by one year of supervised release, and must pay a $6,300 special assessment.

Evidence presented during the trial showed that Nixon, as the owner of Economy Tax Services at 3731 Stanton Street in Philadelphia, prepared materially false federal income tax returns for his clients for tax years 2007 through 2009.  The fraudulent returns included credits for children, earned income credit, tuition and fees, residential energy efficiency credits, incorrect filing status, and false or falsely inflated Form 1040 Schedule A deductions for charitable contributions and employee business expenses.  As a result of the false and fraudulent income tax returns prepared by Nixon, the government contended that the IRS was defrauded of more than $200,000 in fraudulently obtained refunds.

The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Anita Eve.

Peggy Holmes, 48, 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 her mother, after her mother’s death in December 2010 until March 2014.  The defendant’s alleged actions resulted in a loss to the government of approximately $33,952.        

If convicted, the defendant faces a term of imprisonment, a three‑year period of supervised release, restitution to the government of $33,952, a $250,000 fine, and a $100 special assessment.

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

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

PHILADELPHIA – A Member of Congress and four of his associates were indicted today for their roles in a racketeering conspiracy involving several schemes that were intended to further the political and financial interests of the defendants and others by, among other tactics, misappropriating hundreds of thousands of dollars of federal, charitable and campaign funds.

Charged in a 29-count indictment are: Congressman Chaka Fattah Sr., 58, of Philadelphia, Bonnie Bowser, 59, of Philadelphia, Karen Nicholas, 57, of Williamstown, NJ, Herbert Vederman, 69, of Palm Beach, Florida, and Robert Brand, 69, of Philadelphia.  The indictment charges participation in a racketeering conspiracy, bribery, conspiracy to commit wire, honest services and mail fraud, money laundering conspiracy, money laundering, bank fraud, false statements to a financial institution, and multiple counts of mail fraud, wire fraud, and falsification of records.

The charges were announced today by United States Attorney Zane David Memeger, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, FBI Special Agent-in-Charge Edward J. Hanko and IRS-Criminal Investigation Special Agent-in-Charge Akeia Conner.

Specifically, the indictment alleges that, in connection with his failed 2007 campaign to serve as mayor of Philadelphia, Fattah and certain associates borrowed $1 million from a wealthy supporter, and disguised the funds as a loan to a consulting company.  After he lost the election, Fattah allegedly returned to the donor $400,000 that the campaign had not used, and arranged for Educational Advancement Alliance (EAA), a non-profit entity that he founded and controlled, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by Brand.  To conceal the contribution and repayment scheme, the defendants and others allegedly created sham contracts, and made false entries in accounting records, tax returns and campaign finance disclosure statements.

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

The indictment further alleges that Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son’s student loan debt.  To execute the scheme, Fattah and Bowser allegedly arranged for his campaigns to make payments to a political consulting company, which funds the company then used to lessen Fattah’s son’s student loan debt.  According to the allegations in the indictment, between 2007 and 2011, the consultant made 34 successful loan payments on behalf of Fattah’s son, totaling approximately $23,000.

In another alleged scheme, beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for Vederman an ambassadorship or an appointment to the United States Trade Commission.  In exchange, Vederman provided money and other items of value to Fattah.  As part of this scheme, the indictment alleges that the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a sham car sale that never actually took place.

Finally, the indictment alleges that Nicholas obtained $50,000 in federal grant funds that she claimed would be used by EAA to support a conference on higher education.  The conference never took place.  Instead, Nicholas used the grant funds to pay $20,000 to a political consultant, $10,000 to her attorney, and also wrote several checks to herself from EAA's operating account.

“The public expects their elected officials to act with honesty and integrity,” said Memeger.  “By misusing campaign funds, misappropriating government funds, accepting bribes, and committing bank fraud, as alleged in the Indictment, Congressman Fattah and his co-conspirators have betrayed the public trust and undermined faith in government.”

“As charged in the indictment, Congressman Fattah and his associates embarked on a wide-ranging conspiracy involving bribery, concealment of unlawful campaign contributions and theft of charitable and federal funds to advance their own personal interests,” said Assistant Attorney General Caldwell.  “When elected officials betray the trust and confidence placed in them by the public, the department will do everything we can to ensure that they are held accountable.  Public corruption takes a particularly heavy toll on our democracy because it undermines people’s basic belief that our elected leaders are committed to serving the public interest, not to lining their own pockets.”

“These crimes and their cover up constitute a breach of the public trust,” said Hanko. “A founding principle of our democracy is that citizens place their faith and trust in the public servants they elect to represent them.  It is the duty of the FBI, IRS, and Department of Justice to investigate and prosecute those who violate this trust and put personal gain above public service.”

“Public corruption by our elected officials and their associates undermines the American public’s confidence in our government,” said Conner. “When our elected officials and their associates violate the law and create sophisticated financial schemes to enrich themselves, the Internal Revenue Service Criminal Investigation will work diligently with our fellow law enforcement partners to restore the public’s trust.”

The case is being investigated by the FBI and IRS-Criminal Investigation. Assistance was provided by the Department of Justice Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerce Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Paul L. Gray, Trial Attorneys Eric L. Gibson, T. Patrick Martin and Jonathan Kravis of the Criminal Division’s Public Integrity Section. Trial Attorney Bob Dalton of the Criminal Division’s Organized Crime and Gang Section also has provided assistance.

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

PHILADELPHIA – Former Philadelphia Police Officer Jeffrey Walker, 47, of Philadelphia, was sentenced today to 42 months in prison for a scheme in which he planned to rob a drug dealer while on official duty.  Walker pleaded guilty, on February 24, 2014, to attempted robbery which interferes with interstate commerce and carrying a firearm during and in relation to a crime of violence. In addition to the prison term, U.S. District Court Judge Eduardo Robreno ordered three years of supervised release, a $5,000 fine and a $200 special assessment.

Walker told a cooperating witness (CW) that he wanted the CW to help him identify a drug dealer so that Walker could conduct a car stop for suspected drug violations or plant drugs in the car.  On May 21, 2013, the CW informed Walker of a car parked outside of a bar on West Girard Avenue.  Walker drove up to the car, placed drugs inside the car, and then followed the driver when that person left the bar.  When the car was pulled over, Walker took the key to the driver’s home.  Walker and the CW went to the driver’s home.  When they exited the home, Walker was arrested and was in possession of $15,000 that he had taken from the house.

The case was investigated by the FBI and Philadelphia Police Department.  It was prosecuted by Assistant United States Attorneys Anthony Wzorek and Maureen McCartney.

Joel Junior Lantigua-Lora, 28, of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.  The indictment alleges that on or about June 24, 2015, Lantigua-Lora, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about August 23, 2012.

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

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

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

PHILADELPHIA - Kim Meas, 60, a native of Cambodia, was sentenced today to 30 months in prison for schemes to defraud the United States.  Meas was the managing director of LS Services Corporation (“LS”), an employee leasing company in South Philadelphia. He pleaded guilty on November 24, 2014 to two counts of conspiracy to commit an offense against the United States, two counts of transporting illegal aliens and two counts of failure to collect and pay federal income and employment taxes. In addition to the prison term, U.S. District Court Judge Jan E. Dubois ordered restitution to the IRS in the amount of $1.7 million during three years of supervised release, a $600 special assessment, and $23 million in forfeiture.

As the principal corporate officer at LS, Meas negotiated labor leasing contracts with various companies throughout the greater Delaware Valley that leased temporary workers from LS. Meas also established approximately 14 shell companies to create the illusion that the workers that LS leased to other companies were employees of the shell corporations. As such, the shell corporations, and not LS, would be responsible for collecting and paying employment and income taxes for the employees. Meas attempted make it impossible for the IRS to determine the identity of the employer of the illegal aliens, as well as the amount of employment and income taxes that the employer of the illegal aliens was required to pay to the federal treasury. LS also transported the illegal aliens, free of charge, to various work locations in company vehicles. The companies, that leased employees from LS, did not withhold federal income taxes on the wages paid to the employees, nor did these companies collect and pay to the Internal Revenue Service, employment taxes on the income earned by the workers. Meas had two co-conspirators, Ken Sem and Vivi Fnu, who previously pleaded guilty.

This case was investigated by Homeland Security Investigations and Internal Revenue Service Criminal Investigation.  It was prosecuted by Assistant United States Attorney Floyd J. Miller.

PHILADELPHIA – Chester A. Bitterman Jr., 81, and his sons, Craig L. Bitterman, 55, C. Grant Bitterman, 53, and Curtis L. Bitterman, 61, were sentenced for conspiracy to defraud the United States.  At sentencing hearings held on July 15, 17 and 22, U.S. District Court Judge James Knoll Gardner imposed the following sentences:

• Craig L. Bitterman, of Strasburg, PA, was sentenced to serve three years in prison and three years of supervised release with 1,000 hours of community service at a rate of at least 30 hours of service per week, and was ordered to pay a $10,000 fine;
• C. Grant Bitterman, of Willow Street, PA, was sentenced to serve 21 months in prison and three years of supervised release with 1,000 hours of community service at a rate of at least 30 hours of service per week, and was ordered to pay a $7,500 fine;
• Curtis L. Bitterman, of Lacaster, PA, was sentenced to serve 21 months in prison and three years of supervised release with 1,000 hours of community service at a rate of at least 30 hours of service per week, and was ordered to pay a $7,500 fine;
• Chester A. Bitterman Jr., of Willow Street, PA, was sentenced to serve three years’ probation to include six months of home confinement, due in part to his age and ailing spouse confined to hospice care, and was ordered to pay a $5,000 fine.

Each defendant was convicted following a three-week jury trial in October 2010.  Craig Bitterman was additionally convicted of obstruction of justice.  Prior to sentencing, the defendants paid $437,000 in restitution to the Internal Revenue Service (IRS).

According to the evidence at trial, from 1996 to 2005, the Bittermans owned and operated the Bitterman Scale Company, which now operates as Bitterman Scales LLC.  To conceal their income and assets from the IRS, the Bittermans used aliases, offshore bank accounts and a complex series of sham paper transactions to disguise the income.  The defendants transferred their personal and business assets to sham trusts purchased from the Commonwealth Trust Company, a tax protester organization that marketed trust products to clients for the purpose of avoiding federal income tax payment.  The trusts were used to make it appear as though the defendants had little or no assets or income.  In reality, the defendants retained complete access and control over their funds.  In January 2008, the principal owners of the Commonwealth Trust Company were convicted at trial in the Eastern District of Pennsylvania of tax crimes for causing losses of over $17 million and were sentenced to prison.

The defendants paid themselves in cash and arranged bogus payments between the numerous trusts that they had created.  These bogus payments were purported to be leases, management fees and fiduciary fees.  The defendants submitted trust tax returns for their business and took fraudulent deductions for these payments to create the appearance of minimal or no taxable business income.  After the IRS levied the business bank account and receivables, the defendants instructed their customers to pay another trust to thwart IRS collection efforts.  The defendants also placed bogus liens and mortgages on their assets to make it appear to the IRS that the defendants had no assets that could be levied or seized as part of the tax collection process.  Some of the defendants used aliases and bank accounts in the names of trusts to make school tuition payments for their children appear as if they were scholarships from third parties.  In addition, to further conceal their assets from the IRS, at least one defendant used offshore bank accounts in the British Virgin Islands and three of the defendants arranged for sham transfers of real estate to their children.

During the investigation, after Craig Bitterman was served with federal grand jury subpoenas requiring the production of trust records, he failed to produce the records to the grand jury and instead shipped those trust records to Texas and New Mexico in an attempt to conceal them.

The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant U.S. Attorney Vineet Gauri and Trial Attorney Michael C. Vasiliadis of the Tax Division.

PHILADELPHIA - Richard C. Roney, Jr., 46, of Laurel Springs, New Jersey, was charged today by information with four counts of wire fraud related to an alleged scheme that cost lenders more than $750,000, announced United States Attorney Zane David Memeger.

Roney was the owner of a title company called Park Avenue Abstract, Inc., based in Somerdale, New Jersey, which served as the title company on home mortgage transactions.  According to the information, between June 2009 and April 2013, Roney unlawfully withdrew money from his company’s escrow accounts for his personal use and to pay for Park Avenue Abstract’s operating expenses, instead of using that money to close the mortgage transactions.

It is further alleged that while Roney returned much of the money, his misuse of Park Avenue Abstract escrow account funds prevented Park Avenue Abstract from timely satisfying outstanding first mortgages, which ultimately caused lenders to sustain actual losses of over $750,000.

Roney faces a likely advisory sentencing guideline sentence of 27-33 months, as well as a $4,000,000 fine, a $400 special assessment, and full restitution of as much as $751,750.

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

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