Eastern District of Pennsylvania

William E. Gardner, 67, of Warminster, Pennsylvania was charged today by information  with one  count  of  theft  of  Government  funds,  and  one  count  of  social security  fraud, announced  United  States  Attorney Zane D. Memeger.   The information alleges that between  May 22, 2005 and  January  2014, William E. Gardner  implemented  a  scheme   to  receive  and  convert  to  his  own   use  survivor's insurance benefits intended for a family member for a period of almost nine years after the family  member's  death,  resulting  in  total  losses  to  the government  of  approximately $104,615.

If convicted the defendant faces a maximum possible sentence of 15 years in prison,  a  $500,000.00   fine,  three  years  supervised  release,  and  restitution  of $104,615.

The case was investigated by the Social Security  Administration's Office of the Inspector  General and is being prosecuted  by Special  Assistant  United  States Attorney Thomas Moshang III.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Carl O’Neal of Queens, NY, was charged today by indictment with attempting to possess with intent to distribute 500 grams or more of cocaine, in May 2014, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible sentence of 40 years’  imprisonment, five years’ supervised release, a $5 million fine, and a $100 special assessment.

The case was investigated by Immigration and Customs Enforcement – Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Anita Eve.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Jonathan A. Miller, Jr., 56, of Morrisville, Pennsylvania was charged on June 3, 2014, by indictment with possession of a firearm and ammunition by a convicted felon. The indictment charges that Miller committed this offense in Penndel, Pennsylvania on January 19, 2013.                   
If convicted,Miller faces a maximum sentence of ten years imprisonment.  Miller also faces a maximum period three years supervised release, a $250,000 fine, and a $100 special assessment. 
This case was investigated by the Federal Bureau of Investigation and the Penndel Police Department, and is being prosecuted by Assistant United States Attorney Andrea G. Foulkes.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – Khusen Akhmedov, 23, of Philadelphia, PA and Lancaster, PA, was sentenced today to 27 months in prison for his role in a health care fraud scheme involving Penn Choice Ambulance Inc., operating from Philadelphia, PA, Huntingdon Valley, PA and Camp Hill, PA.  Akhmedov pleaded guilty on December 5, 2013, to conspiracy to commit health care fraud, false statements relating to health care matters, and paying kickbacks to patients, a total of 16 counts.  Akhmedov, an EMT for Penn Choice, was indicted with Penn Choice owner Anna Mudrova and operators Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, and Valeriy Davydchik, all of whom have pleaded guilty.

The scheme involved more than $3.6 million in fraudulent claims submitted to Medicare.  The defendants conspired to defraud Medicare by recruiting patients who were able to walk and could travel safely by means other than ambulance and who therefore were not eligible for ambulance transportation under Medicare requirements.  The defendants, and others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants knew that the patients could be transported safely by other means and that many of them walked to the ambulance for transport.  The defendants, themselves, or through others, paid illegal kickbacks to the patients as part of scheme. The defendants billed Medicare for these ambulance services as if those services were medically necessary and, as a result of the fraudulent billing, the Medicare program sustained losses of more than $1.5 million for this medically unnecessary method of transportation.

In addition to the prison term, U.S. District Court Judge Juan R. Sànchez ordered three years of supervised release, restitution in the amount of $582,665, joint and several with the co-defendants, a special assessment of $1,600 and forfeiture of any assets traceable to the offense.

In prior proceedings, defendants Valeriy Davydchik and Yury Gerasyuk, both ambulance drivers, were each sentenced to 24 months in prison; the corporation was ordered to pay restitution of $1,548,583.93 and ordered to cease all operations. The remaining defendants are awaiting sentencing.

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Thomas Silber, 50, of Yardley, PA, was charged today, by indictment with 10 counts of knowingly receiving, and attempting to receive, visual depictions, that is, DVD movies, depicting child pornography.  According to the indictment, between February 2007 and October 2010, Silber received 10 DVD movies, using the internet, which were shipped and transported in interstate and foreign commerce, and contained materials that had been shipped and transported in interstate and foreign commerce. The producing of these visual depictions involved the use of minors engaging in sexually explicit conduct, and such visual depictions were of minors engaging in sexually explicit conduct.

If convicted the defendant faces a maximum possible sentence of 200 years in prison, a lifetime of supervised release, and a $1,000 special assessment.

The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the U.S. Postal Inspection Service.  It and is being prosecuted by Assistant United States Attorney Michelle Morgan.

Click here to view the indictment

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Marcus Akiem Ricketts, 37, of Boyertown, PA, pleaded guilty yesterday to four armed bank robberies in Pennsylvania and using and carrying a firearm during a crime of violence.  Ricketts was charged, federally, with four robberies: on June 8, 2010, at the Sovereign Bank, located at 258 East High Street, Pottstown, Pennsylvania; on January 24, 2012, at the Citizens Bank, located at 209 Lancaster Avenue, Devon, Pennsylvania; on April 12, 2012, at the First Niagara Bank, located at 502 State Avenue, Emmaus, Pennsylvania; and on July 2, 2012, at the Manufacturers and Traders Trust Company (“M&T Bank”), formerly located at 760 North Pottstown Pike, in Exton, Pennsylvania.  In addition to those robberies, Ricketts pleaded guilty to seven others.  The banks were located in Bucks, Berks, Chester, Delaware, Lehigh, and Montgomery counties.  Ricketts admitted to committing 11 total bank robberies, six of which were pending investigation.

Ricketts faces 25 years in prison including a seven year mandatory term, five years of supervised release, a fine of up to a $1.25 million, a $500 special assessment and restitution of approximately $194,436.  A sentencing hearing is scheduled for September 17, 2014.

This case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Chester County Sheriff’s Department, the Chester County Detectives, and the police departments for Easttown Township, Emmaus, Lower Merion, Pottstown, Uwchlan, Shillington Township, Warminster, and West Whiteland, Pennsylvania.  In addition, the District Attorney’s offices for the counties of Berks, Bucks, Chester, Lehigh and Montgomery were also involved in the investigation.  This case is being prosecuted by Assistant United States Attorneys Jeffery W. Whitt and Jessica Natali.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Geraldine Jones, 68, of Philadelphia, was charged by information, filed on May 30, 2014, with one count of theft of government funds, announced United States Attorney Zane David Memeger.  According to the information, the defendant received retirement and pension benefits from the Social Security Administration and the Department of Veterans Affairs that were intended for a deceased individual, after that individual’s death in May 1999, until her fraud was discovered in early 2014.  The defendant’s alleged actions resulted in a loss to the Social Security Administration of approximately $103,356 and a loss to the Department of Veterans Affairs of approximately $52,442, for a total loss to the government of approximately $155,798.          

If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a three-year period of supervised release, restitution to the government of $155,798, a $250,000 fine, and a $100 special assessment.

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

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

John Bernhardt, 30, of Philadelphia, PA, was charged by information with one count of theft of Government funds and one count of social security fraud, announced United States Attorney Zane David Memeger.  The information alleges that between June 2010 and October 2012, John Bernhardt implemented a scheme to receive and convert to his own use disability insurance benefits intended for the use of another, for over two years, resulting in total losses to the government of approximately $27,191.

If convicted, Bernhardt faces a maximum possible sentence of 15 years in prison, a $500,000 fine, three years of supervised release, and restitution of $27,191.  

The case was investigated by the Social Security Administration’s Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – Indictments were filed yesterday charging a Pennsylvania attorney and his client in a bankruptcy fraud scheme, announced United States Attorney Zane David Memeger.  Pietro A. Barbieri, esq., 61, of Exton, PA, was retained by Deborah Messner, 59, of Glenmoore, PA, for a divorce and bankruptcy matter.  Barbieri is charged with bankruptcy fraud, agent concealing property in bankruptcy, and attempted obstruction of official proceeding.  Messner is charged with concealing property in bankruptcy and two counts of false oath in bankruptcy proceeding.

According to the indictments, in February 2009, Messner and Barbieri began discussing Messner’s bankruptcy and she transferred possession of a Chevrolet Corvette to her father.  In April of 2009, while assisting her in her divorce settlement, Barbieri allegedly advised Messner to set up an Individual Retirement Account (IRA) where she could deposit the $193,000 in proceeds from the divorce.  According to the indictments, Barbieri advised Messner that “additional time will be required in order to protect this substantially larger fund from the grasp of the United States Bankruptcy Court.”  It is further alleged that Barbieri later advised “If your funds are in place at the time you declare bankruptcy then they are not subject to confiscation.”

On May 19, 2009, after withdrawing $125,000 from the IRA account, Messner, with Barbieri’s counsel, filed a bankruptcy petition for relief under Chapter 7.  In the petition, Messner claimed $84,410 in exempt assets and sought relief from unsecured debts totaling $86,861.47.  Messner allegedly concealed the transfer of the Chevrolet Corvette, the divorce settlement proceeds, all of her unsecured creditors, and $22,000 which she transferred to pay Barbieri’s fee.  

It is further alleged that on Jun 30, 2009, both Messner and Barbieri appeared at a Section 341 Meeting of Creditors and provided false statements about the bankruptcy petition’s accuracy; that they appeared at a Rule 2004 bankruptcy proceeding on October 7, 2009 and, again, Messner provided false testimony; and that Barbieri false represented that the IRA began to receive monies as part of the divorce settlement on August 1, 2009.

If convicted of all charges, Barbieri faces a statutory maximum sentence of 35 years in prison, a fine of up to $1million, three years of supervised release, and a $400 special assessment; Messner faces a statutory maximum sentence of 15 years in prison, a fine of up to $750,000, three years of supervised release, and a $300 special assessment.

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

Barbieri Indictment.pdf | Messner Indictment.pdf

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Steven W. Johnson, Ph.D., 49, of Elkins Park, PA, was charged, yesterday, by indictment, with mail fraud and theft from a program receiving federal funds, announced United States Attorney Zane David Memeger.  The charges arise from his misuse of federal funds for cancer research to conduct a for-profit business, while he was employed as a researcher by the University of Pennsylvania School of Medicine.

If convicted the defendant faces a maximum possible sentence of 210 years imprisonment, a 3 year period of supervised release, and a $2.75 million fine.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Richard Lee, 55, of Swarthmore, PA, was charged today by Information with willfully failing to file a tax return, announced United States Attorney Zane David Memeger.  The Information alleges that Lee had approximately $90,371 in gross income in 2010, which required him to file a federal 2010 tax return.   The Information alleged that he willfully failed to file the return.

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

The case was investigated by Internal Revenue Service, Criminal Investigation, and is being prosecuted by Assistant United States Attorney Sarah L. Grieb.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA - Damian Gasdaska, 37, of Phillipsburg, NJ, was charged today by Indictment with one count of conspiracy, six counts of wire fraud, seven counts of bank fraud, and one count of aggravated identity theft, announced United States Attorney Zane David Memeger.

The indictment alleges that Gasdaska and his co-conspirators, Randall McMahon, of Easton, PA, and John Cordero, of Breinigsville, PA, both charged elsewhere, obtained and used personal identifying information to create false identities which he then utilized in various ways, such as applying for credit cards and purchasing or renting vehicles. One way in which Gasdaska obtained the personal identifying information was from old court records.  Gasdaska allegedly took steps to create favorable credit profiles for these false identities, and to improve the individuals’ credit profiles. These steps included obtaining reports on the individuals, requesting the modification of information in the reports, and engaging in transactions in the names of the false identities to improve their credit profiles.  Gasdaska allegedly prepared or obtained false driver’s licenses, social security cards, college identifications, insurance cards, employment records, and bills and invoices. He allegedly provided some of the fraudulent credit cards he acquired to his co-conspirators and kept some for himself.  

According to the indictment, during the conspiracy, Gasdaska used Post Offices boxes in the name of the false identities to receive mail for various purposes, such as in connection with credit card applications, and used computers at public libraries to further the conspiracy. After co-conspirators made their purchases, they often provided the purchased items to Gasdaska who then sold them and paid the co-conspirators for their illegal services.

If convicted the defendant faces a maximum possible sentence of 335 years in prison, a five-year period of supervised release, a $9million fine, a $1,500 special assessment, and restitution.

The case was investigated by United States Secret Service, the United States Postal Inspection Service, Immigration and Customs Enforcement Homeland Security Investigations, and the Lehigh County Auto Theft and Insurance Fraud Task Force.  It is being prosecuted by Assistant United States Attorney Patrick J. Murray.

Click here to view the indictment

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – Eric Esposito, 43, of Philadelphia, PA, was sentenced today to 27 months in prison for conducting an illegal gambling business on behalf of the Philadelphia La Cosa Nostra Family.  In addition to the prison term, U.S. District Judge Eduardo C. Robreno ordered three years of supervised release and a fine of $4,000.

On Feb. 21, 2014, after a week-long contested trial, a jury convicted Esposito of conducting an illegal gambling business involving the use of video poker machines at a private social club known as the “First Ward Republican Club” located in South Philadelphia.  According to evidence presented at trial, Esposito was a fully initiated mob solider who worked in concert with other mob members to carry out the illegal gambling business on behalf of the Philadelphia La Cosa Nostra Family. 

A total of 13 leaders, members and associates of the Philadelphia La Cosa Nostra Family have been convicted by a jury or pleaded guilty as part of this case.  To date, 12 defendants have been sentenced and one is awaiting sentencing.

The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigations, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, and the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration.  Additional assistance was provided by the New Jersey Department of Corrections.

The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania.  Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – Matthew Kolodesh, a/k/a “Matvei Kolodech,” 52, of Churchville,  PA, was sentenced May 23, 2014 to 176 months in prison and ordered to pay $16.2 million in restitution to Medicare and $16.2 million in a forfeiture money judgment for orchestrating a scheme to defraud Medicare through his home hospice business, among other crimes, announced United States Attorney Zane David Memeger.  
In October 2013, following a four week jury trial, a federal jury found Kolodesh guilty of conspiracy to commit health care fraud, 21 counts of health care fraud, 11 counts of money laundering, and two counts of mail fraud.  From 2003 to 2008, Kolodesh’s business, Home Care Hospice, Inc. (“HCH”), located on Grant Avenue in NE Philadelphia, submitted false claims to Medicare totaling approximately $16.2 million for patients that were not eligible for hospice services, and for patients that never received the level of hospice services billed by HCH.  Ineligible patients were patients who were not terminally ill and patients who were on service for more than six months.  

The scheme was successful because nurses and other staff participated in a massive fraud that involved altering patient records to make patients appear eligible for hospice services, when in reality they were not.  HCH even tricked Medicare auditors.  At the direction of Kolodesh, and co-owner and co-conspirator Alex Pugman, who was the Director of HCH, HCH nurses and supervisory staff routinely “fixed” patient files and re-wrote nursing documentation to make patients appear sicker “on paper,” by showing decline in medical condition through false entries for infections, fever, and weight loss, among other things.  Old records were destroyed.  The staff was also paid to falsely document 24 hour periods of high cost, intensive hospice care than was actually provided to the patient.

In order to buildup patient enrollment, Kolodesh and Pugman also paid health care professionals, including doctors, for referring patients to HCH, even when those patients were not eligible or appropriate for hospice services.  In an effort to mask the kickback scheme, HCH fraudulently represented that some of those health care professionals were paid for servicesas medical directors, advisors, or hospice physicians.

“This massive fraud on a critical federal program costs taxpayers dearly,” said United States Attorney Zane David Memeger. “This sentence makes clear that the justice system will punish severely those criminals who engage in this type of fraud and abuse.  We will continue to work diligently with our federal partners to bring to justice those who defraud the government and deprive federal programs of valuable tax dollars.”         

“Medicare is a crucial component of our nation's healthcare system,” said FBI Special Agent-in-Charge Edward J. Hanko. “This sentence sends a clear message to anyone looking to game that system and steal taxpayers’ money: we will catch you, and we will put you away.”

“Kolodesh’s 14 year prison sentence is a clear message to those stealing from Medicare,” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the U.S. Department of Health and Human Services in Philadelphia.  “We will keep working with our partners to protect our health care system from fraud, waste, and abuse and to send thieves to prison.”     

Kolodesh siphoned $7.77 million dollars from HCH’s bank account for his own personal enrichment.  His spouse was set up as a sham CEO of the company and received millions of dollars in salary draws and bonuses.  Kolodesh also used funds for extensive renovations to his mansion, travel expenses for his family and friends, college tuition for his son, and a luxury automobile.  He siphoned substantial sums of cash from the HCH operating account through cash kickback arrangements with various HCH vendors using a system of phony and inflated invoicing, and through a charitable donation scam arranged with a local synagogue in which he was a member.

The mail fraud convictions stemmed from another scam orchestrated by Kolodesh which involved the Philadelphia Development Corporation (PIDC).  In 2005, Kolodesh and Pugman applied for a low-interest loan worth $2.5 million with PIDC, a program designed to stimulate business investment and create jobs in the city of Philadelphia.  The loan money was to be used to acquire and renovate a property for the business and to create 50 bona fide jobs in Philadelphia at 2801 Grant Avenue, the site of HCH.  However, between August 2005 and July 2009, the job quota was not being met.  To prevent default on the loan, Kolodesh set up a sham office at the Grant Avenue location purportedly for Community Home Health (“CHH”), his Bucks County health care business.  Kolodesh falsely identified 73 CHH employees as working at that office location on Grant Avenue who, in fact, did not work there.

The case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General.  It was prosecuted by Assistant United States Attorney Suzanne B. Ercole and Trial Attorney Margaret Vierbuchen of the Organized Crime and Gang Section in the Justice Department’s Criminal Division.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – The United States filed a complaint in U.S. District Court today in a whistleblower suit against a now-defunct, for-profit Philadelphia provider of hospice services, Home Care Hospice, Inc. (HCH), and its owners and operators, announced First Assistant United States Attorney Louis D. Lappen.  In its complaint, the government alleges that HCH, its Executive Director and owner Alex Pugman, its Development Executive Svetlana Ganetsky, and its de facto owner Matthew Kolodesh violated the False Claims Act when they falsely claimed and received millions of taxpayer dollars intended for dying Medicare recipients in need of hospice care.  The government further alleges that Pugman, Ganetsky, Kolodesh, and HCH Chief Executive Officer Malvina Yakobashvili thereby unjustly enriched themselves at the expense of the United States.  Pugman and Ganetsky, who have pleaded guilty to related criminal charges, are husband and wife, as are Kolodesh and Yakobashvili.  In October 2013, a federal jury in the Eastern District of Pennsylvania found Kolodesh guilty of related criminal charges.  See http://www.justice.gov/usao/pae/News/2013/October/kolodesh_release.htm

The Medicare hospice benefit is available for a patient who elects palliative treatment (medical care focused on providing relief from pain, stress, and symptoms of terminal illness) and has a life expectancy of only six or fewer months, if the patient’s disease runs its normal course.  A Medicare patient receiving hospice services no longer receives services designed to cure the patient’s terminal illness.  Medicare reimburses for different levels of hospice care, including continuous home care (also called crisis care), which is available only for a patient who is experiencing acute medical symptoms resulting in a brief period of crisis and who requires the immediate, short-term provision of skilled-nursing services in order to remain at home.  The reimbursement rate for crisis care services is the highest daily rate a hospice can bill Medicare, and hospices are paid hundreds of dollars more on a daily basis for each patient they certify as having received crisis care services rather than routine home hospice services.

The government’s complaint alleges that HCH, Pugman, Ganetsky, and Kolodesh knowingly submitted false claims and records (including fabricated records) to Medicare for purported hospice care for patients who were not terminally ill and thus not eligible for the Medicare hospice benefit.  The government further alleges that these defendants knowingly submitted or caused the submission of false claims and records (including fabricated records) to Medicare for crisis care services that were not necessary or not actually provided.  The government contends that, as a result of the conduct alleged in the complaint, these defendants violated the False Claims Act and cost the Medicare Program millions of dollars. 

Under qui tam (whistleblower) provisions of the False Claims Act, certain private citizens may bring civil actions on behalf of the United States and may share in any recovery.  If the United States intervenes in an action and proves that a defendant has knowingly submitted false claims, it is entitled to recover three times the damage that resulted and a penalty of $5,500 to $11,000 per claim.  This suit was originally filed on behalf of the United States by Maureen Fox and Cathy Gonzales, former HCH employees who discovered the alleged fraud.  After they internally reported the alleged fraud, HCH fired Ms. Fox, and Ms. Gonzales quit her position.  The qui tam action remained in civil suspense for seven years while the United States criminally investigated and prosecuted the perpetrators.  In 2012, while the case was still in suspense, and without filing its own complaint at that time, the United States intervened in Ms. Fox’s and Ms. Gonzales’ False Claims Act claims against HCH, Pugman, Ganetsky, and Kolodesh.  In a related action in the Eastern District of Pennsylvania, filed in 2008, the United States obtained injunctive relief restraining financial accounts of HCH, Pugman, Ganetsky, Kolodesh, and Yakobashvili that the United States contends resulted from the alleged fraud.    

The case is being investigated by the Office of Inspector General of the U.S. Department of Health and Human Services, and the Organized Crime Section of the Federal Bureau of Investigation, and has been assigned to Assistant United States Attorneys Gerald B. Sullivan and Eric D. Gill.  The civil claims asserted against HCH, Pugman, Ganetsky, Kolodesh, and Yakobashvili are allegations only, and there has been no determination of civil liability.

Click here to view the indictment

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – Jermaine Hairston, 38, of Philadelphia, Pennsylvania, was charged by indictment, filed yesterday, with health care fraud and aggravated identity theft, announced United States Attorney Zane David Memeger.

According to the indictment, the defendant obtained the identifying information of a practicing physician, and used it to call in prescriptions to pharmacies in Philadelphia, in the names of various Medical Assistance recipients.  Hairston would pick up the prescription medication, generating a claim to the patient’s health insurance, and then sell the medication for cash.

If convicted, Hairston faces a maximum possible sentence of 132 years in prison, with a mandatory minimum of two years, three years of supervised release, a $3.5 million fine and a $1,400 special assessment.

The case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration’s Office of Criminal Investigation, and the United States Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant United States Attorney Elizabeth Abrams.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA - Jorge Bautista-Banda, a/k/a “Cochito,” a/k/a Jorge Batista-Banda, 32, of Mexico, is charged in a two-count indictment with conspiracy to distribute five kilograms or more of cocaine, and money laundering, announced United States Attorney Zane David Memeger. 

According to the indictment, from July 2013 to April 23, 2014, Bautista-Banda was a member of a conspiracy that distributed more than 100 kilograms of cocaine, supplied by a Mexican-based cocaine distribution organization, which was sold and distributed in the Philadelphia area.  Bautista-Banda was arrested on April 23, 2014, in connection with an alleged attempt to make a structured cash deposit of $8,000 to a corporate bank account at a bank in Philadelphia.  The indictment further alleges that on April 23, 2014, following his arrival in Philadelphia from Texas, Bautista-Banda  received $100,000 cash which he was directed to launder through the use of structured cash deposits to “pass through” accounts designated by Mexican sources.  The indictment charges that after receiving the cash, Bautista-Banda proceeded to the Bank of America branch at 932 Walnut Street where he attempted to make a cash deposit of $8,000.  The indictment further alleges that Bautista-Banda was in possession of an additional $68,000 in United States currency that he had in his hotel room in Philadelphia.

On September 24, 2013, Bautista-Banda received a sum of $145,000 in cash representing proceeds of the operations of a Philadelphia-based cocaine trafficking conspiracy.  After receiving the cash, Bautista-Banda allegedly made multiple deposits, at various bank branches, in amounts less than $10,000, the purpose of which was to avoid the filing of currency transaction reports.

If convicted, Jorge Bautista-Banda faces a maximum penalty of life in prison, with a mandatory minimum of 10 years, at least five years supervised release, and a fine of $10.5 million.

This case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.

Click here to view the indictment

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA - Nikolaos Frangos, 38, George Capuzello, 42, both of Campbell, Ohio, and Mikhail Zubialevich, a/k/a “Russian Mike,” 41, of Princeton, New Jersey were charged by indictment, unsealed today, in a conspiracy related to the disturbance of protected Peregrine Falcons, announced United States Attorney Zane David Memeger. The indictment charged the three defendants with conspiring to falsify, conceal and cover up a material fact in a matter within the jurisdiction of the Fish and Wildlife Service and the US Department of Transportation, witness tampering, and harboring an alien.  Capuzello was also charged with perjury and Zubialevich was also charged with making a false statement. The defendants were arrested today.

According to the indictment, the defendants were involved, to varying degrees, in the refurbishment of the Girard Point Bridge in Philadelphia, which, for many years, had been a nesting site for peregrine falcons.  As a condition of the work contract, the company, The Liberty-Alpha Joint Venture, agreed to refrain from working in the areas of the falcons’ nests during nesting season.  On June 4, 2011, Capuzello allegedly directed Zubialevich and another worker to perform grinding or sanding in the “restricted zone” which frightened and disturbed the falcons and caused them to abandon their nest. During a subsequent investigation into the disturbance of the falcons, the three defendants allegedly conspired to cover up the identity of one of the workers, who was an illegal alien and was partly responsible for disturbing the Peregrine Falcons.  It is further alleged that Frangos and Capuzello intimidated another person, J.W., in order to prevent or delay communication with a Special Agent relating to the possible commission of a federal offense.

If convicted Frangos faces a maximum possible sentence of 35 years in prison, Capuzello faces a maximum possible sentence of 40 years in prison, and Zubialevich faces a maximum possible sentence of 20 years in prison.  

The case was investigated by the Federal Bureau of Investigation, the Office of Inspector General of the Department of Labor, the Office of Inspector General of the Department of Transportation, the Environmental Protection Agency Criminal Investigation Division, the Office of Inspector General of the Social Security Administration, U.S. Immigration and Customs Enforcement Homeland Security Investigations,and Amtrak Office of Inspector General.  The case has been assigned to Assistant United States Attorney Paul G. Shapiro.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – Action Manufacturing Company, headquartered in Bristol, Bucks County, pled guilty today to storing explosive hazardous waste illegally at its facility in Atglen, Chester County, PA, announced United States Attorney Zane David Memeger.  The defendant has agreed to pay a fine of $1.2 million, and will face a five-year term of probation and a special assessment of $800.  Its president has agreed to resign, and the company will comply with a schedule for disposing of the backlog of waste built up over many years. A sentencing hearing is scheduled for August 27, 2014.

Action Manufacturing makes timing and arming devices for munitions and explosives.  In its manufacturing process, Action Manufacturing mixes explosive powders, and also fills boosters, detonators and other items with explosive powders.  Action Manufacturing's production process generates explosive solid waste, and the law requires that it be disposed of in accordance with the Resource Conservation and Recovery Act.  The company admitted that, instead of sending its waste to an approved treatment, storage and disposal facility, it stockpiled explosive hazardous waste at its Atglen facility without a permit.  In November 2011, civil inspectors from EPA's Land and Chemicals Division and the Pennsylvania Department of Environmental Protection inspected the Atglen site, and found the illegally stored waste, including scrap parts and components that were years or even decades overdue for disposal. 

Action Manufacturing also admitted that it violated Department of Transportation recordkeeping regulations for transporting explosive material on the public roads.

“The defendant’s illegal business practices threatened the lives and safety of workers and neighbors,” said David G. McLeod, Special Agent in Charge of EPA’s criminal enforcement program in the Middle Atlantic States. “By creating a risk for detonation and release of hazardous waste, the company also threatened to pollute the environment. Today’s plea demonstrates EPA’s commitment to prosecute those who endanger public safety and a clean environment by ignoring the law.”

The case was investigated by the EPA’s Criminal Investigations Division and the U.S. Department of Transportation Office of Inspector General.  It is being prosecuted by Assistant United States Attorney Elizabeth Abrams.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA - Steven Pitchersky, 65, of Rancho Mirage, California, was sentenced today to 51 months in prison for a scheme to defraud Ally Bank that resulted in losses to the bank of approximately $5.3 million. Pitchersky, who pleaded guilty to wire fraud on September 23, 2013, operated Nationwide Mortgage Concepts (“NMC”), a California mortgage lender.

Between August 2009 and January 2011, Ally was the warehouse lender for thousands of mortgage loans in which NMC borrowed from Ally’s warehouse line of credit to refinance first mortgages held by other financial institutions. Pitchersky made misrepresentations to Ally to secure the warehouse line of credit including his false representation that NMC had a current $10 million warehouse line of credit with a company named MPL. Pitchersky stated that the contact person for MPL was a man named “Rick Jay” and he listed a phone number for Rick Jay. The phone number that was provided, however, was actually for Pitchersky’s cell phone, and MPL was the name of another business entity that Pitchersky ran. Over the next three years, Pitchersky represented to Ally multiple times that he had a warehouse lending relationship with this company. 

Pitchersky used NMC’s $10 million warehouse line with Ally to obtain funds to refinance thousands of mortgages held by other banks for NMC customers. Ally required NMC to disburse funds through a third-party, commonly referred to as a title company. Pitchersky used a company called Hanover as the title company but, unbeknownst to Ally, Pitchersky had created Hanover. This subterfuge allowed Pitchersky to have complete control over money NMC acquired from Ally’s warehouse line. Between December 2010 and January 2011, Ally advanced NMC approximately $5.3 million to pay off 23 first mortgages for NMC clients. NMC failed to use these funds to pay off these mortgages and instead used the money to pay off first mortgages for other customers. At the end of January 2011 Ally discovered that defendant and NMC had not used this money to pay off the 23 loans and ended the warehouse agreement with NMC.

In addition to the prison term, U.S. District Court Judge John R. Padova ordered restitution in the amount of $3,242,888, five years of supervised release and a $100 special assessment.

In total, $17.2 billion in federal taxpayer bailout funds were invested in GMAC Inc., since rebranded as Ally Financial Inc., through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP). As of April 9, 2014, Treasury owned 17 percent of Ally Financial, and $4.1 billion of the TARP investment remained outstanding.

“Greed got the best of Pitchersky and, for his crimes, he will spend the next [XX] years in federal prison.” said Christy Romero, Special Inspector General for TARP (SIGTARP).  “Defrauding a recipient is the same as defrauding American taxpayers who funded TARP. Pitchersky drew down millions of dollars on a warehouse line of credit with Ally through lies and false pretenses, faking that he used Ally’s funds to pay off refinanced mortgages while, instead, he used the money in part to fund his luxurious lifestyle and extravagant art collection. SIGTARP and our law enforcement partners will bring justice to those committing crimes that threaten taxpayers’ TARP investments.”

The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program, and the Department of Veterans Affairs Office of Inspector General.  It was prosecuted by Assistant United States Attorney David L. Axelrod.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

An information was filed today charging Airmatic, Inc., a company located at 284 Three Tun Road, Malvern, PA, with one count of mail fraud for allegedly defrauding the City of Philadelphia of approximately $556,633.03. Airmatic allegedly supplied unapproved, off-contract products to various City departments in violation of its agreements with the City.  The case was announced by United States Attorney Zane David Memeger and City of Philadelphia Inspector General Amy Kurland.

According to the information, Airmatic submitted false and fraudulent invoices to the City’s accounts payable department in order to conceal that it was providing off-contract products. Instead of reflecting the unapproved, off-contract products that were actually being provided, the invoices billed for items that were approved pursuant to the City’s agreements with defendant Airmatic.  It is further alleged that Airmatic inflated the cost of the unapproved, off-contract items and products it provided to the City by an average of approximately 87% and profited from this scheme in the amount of approximately $556,633.03.  For example, in one instance Airmatic falsely invoiced the City for a bearing assembly, an expensive industrial product and approved contract item, when, in fact, Airmatic delivered 12 asphalt rakes, items for which the defendant had no contract.  To disguise the transaction, Airmatic manipulated the invoice and billed the City for the price of the bearing assembly, which the City never received, resulting in an extravagant profit margin on the sale of the rakes.  Between January 2007 and August 2012, hundreds of similar transactions took place.   

If convicted the defendant faces a maximum possible sentence of five years of probation, a $500,000 fine or twice the pecuniary gain/loss, a $400 special assessment, and restitution to the City of Philadelphia.

The case was investigated by the City of Philadelphia Office of Inspector General and the FBI. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Brian Bethman, of Lafayette Hill, Pennsylvania, was charged by indictment, filed on  May 15, 2014, smuggling goods into the United States, trafficking in counterfeit labels, and criminal copyright infringement, announced United States Attorney Zane David Memeger.

According to the indictment, between April 2010 and April 2011, Bethman smuggled in more than 6,000 audiovisual copies of movies and television shows that were protected by copyright.  The television shows included, but were not limited to, House, Criminal Minds, NCIS, Weeds, The Office, and Royal Pains; the movies included, but were not limited to, Justfied, The Pacific, Dead Like Me, and Bambi. Bethman is charged with seven counts of smuggling goods into the United States, one count of trafficking in counterfeit labels, and one count of criminal copyright infringement.

If convicted the defendant faces a maximum possible sentence of 30 years in prison.

The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Special Assistant United States Attorney Karen A. Fox.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

William J. Frio, 58, of Folsom, PA, is charged by indictment, unsealed today, in a tax evasion scheme involving the Nifty Fifty’s restaurant chain, announced United States Attorney Zane David Memeger.  Frio is charged with conspiracy to commit tax evasion by operating the Nifty Fifty’s 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 is also charged with filing his own false tax returns, aggravated structuring of financial transactions, and loan fraud.

Frio is an accountant and income tax preparer who has provided services to the Nifty Fifty’s organization since 1986.  According to the indictment, Frio conspired and agreed with the owners and principals of Nifty Fifty’s, all of whom have been charged separately, 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.

It is further alleged that, in 2008, Frio submitted a false loan application to Sovereign Bank, for a $417,000 mortgage for his personal residence.  Frio allegedly 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.  It is further alleged that 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. As explained in the indictment Frio used his position as the Nifty Fifty’s accountant to embezzle hundreds of thousands of dollars of funds that belonged to the organization.

If convicted, Frio faces a maximum possible sentence of 57 years in prison, full restitution to the IRS and a fine of up to $2.75 million.   

The case was investigated by the Internal Revenue Service Criminal Investigation Division and the Federal Bureau of Investigation.  It is being prosecuted by Assistant United States Attorneys Paul G. Shapiro and Nancy E. Potts.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Nicolas Colon, 23, of Philadelphia, Pennsylvania, was charged today by indictment with one count of disabling and attempting to disable a mass transportation vehicle and one count of conveying false information concerning an attempt to disable a mass transportation vehicle, announced United States Attorney Zane David Memeger.  

According to the indictment, on or about March 16, 2014, Colon placed objects and debris on the subway train tracks of the Broad Street Line of the Southeastern Pennsylvania Transportation Authority (“SEPTA”).  On or about March 18, 2014, Colon allegedly provided a false name, false date of birth, and false Social Security number to law enforcement officers investigating the Broad Street Line incident.

If convicted of both counts, Colon faces a maximum possible sentence of 40 years in prison, a $500,000 fine, three years of supervised release and a $200 special assessment.

The case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force in Philadelphia, including the SEPTA Transit Police Department.  The case is being prosecuted by Assistant United States Attorney Vineet Gauri.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – An information, filed on May 7, 2014, charges Action Manufacturing Company with illegal storage of explosive hazardous waste at its facility in Atglen, Chester County, PA, and transportation of hazardous material in violation of regulations, announced United States Attorney Zane David Memeger. 

Action Manufacturing makes timing and arming devices for munitions and explosives.  Its manufacturing process generates explosive solid waste, that must be disposed of in accordance with the Resource Conservation and Recovery Act.  According to the information, instead of sending its waste to an approved treatment, storage and disposal facility, Action Manufacturing stockpiled identified explosive hazardous waste at its Atglen facility without a permit, including scrap parts and components that were years or even decades overdue for disposal.  Action Manufacturing also violated Department of Transportation recordkeeping regulations for transporting explosive material on the public roads.

If convicted, Action Manufacturing faces a maximum possible sentence of five years of probation, with a mandatory minimum term of one year of probation, a $50,000 fine for violating transportation regulations, and fine of $100,000 per day for its storage violation, and a special assessment of $800.

The case was investigated by the Environmental Protection Agency's Criminal Investigations Division, and the United States Department of Transportation Office of Inspector General.  It is being prosecuted by Assistant United States Attorney Elizabeth Abrams.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – Hakim King, 28, of Philadelphia, PA, was sentenced today to 498 months in prison for his role in two armed robberies of convenience stores.  King and his co-defendant, Rezekiel Harris, robbed a Wawa on Bryn Mawr Avenue in Radnor, on February 9, 2012, and, on February 12, 2012, robbed a Sunoco A-Plus store, on Conshohocken State Road in Bala Cynwyd.  In one of the robberies, a victim was hit by debris when the defendants fired a gun was fired into the concrete floor before taking the store’s $1,225 in proceeds. King was convicted at trial on April 8, 2014, of two counts each of robbery which interfered with interstate commerce and using and carrying a firearm during a crime of violence.

In addition to the prison term, U.S. District Court Judge Michael Baylson ordered five years of supervised release, $1,914 in restitution, and a $400 special assessment.

Rezekiel Harris, was sentenced on May 6, 2014 to 20 years in prison.

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

An indictment was unsealed today charging Joshua Moses, a/k/a “Roy R. Moses,” 32, of Philadelphia, Pennsylvania, with two counts of convicted felon in possession of firearm, announced United States Attorney Zane D. Memeger.

If convicted, defendant faces a maximum of 20 years in prison, three years of supervised release, and a $500,000 fine.

This case is part of Project Safe Neighborhoods, a federal initiative designed to identify and prosecute firearms offenders in federal court, where the defendant is likely to receive a substantial sentence upon conviction.

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

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

An indictment was unsealed yesterday charging Jucontee Thomas Woewiyu, a/k/a “Jucontee Thomas Smith,” 68, of Collingdale, Pennsylvania, with lying on his application for U.S. citizenship by not disclosing his alleged affiliation with a violent political group in Liberia, announced United States Attorney Zane David Memeger.  Woewiyu is charged with seven counts of perjury, two counts of fraudulently attempting to obtain citizenship, four counts of fraud in immigration documents, and three counts of false statements in relation to naturalization.

According to the indictment, Woewiyu was residing in the U.S. when he formed the Association for Constitutional Democracy in Liberia (ACDL) to advocate against the regime of Master Sergeant Samuel K. Doe in Liberia. Woewiyu, and others, also formed the National Patriotic Front of Liberia (NPFL) a military organization committed to the violent overthrow of the Doe government.  The ACDL provided funding to the NPFL.  In 1990, a splinter group captured and executed Doe.  The NPFL, however, persisted with a brutal campaign for control of the country.  An attack, in October of 1992 by NPFL forces, left scores of residents of Monrovia dead.  According to the indictment, Woewiyu presided as NPFL Minister of Defense during a brutal military campaign during which perceived adversaries were tortured, civilians were executed, girls and women were raped and forced into sex slavery, and humanitarian aid workers were murdered. 

In his application for U.S. Citizenship, Woewiyu responded that he had not ever advocated for the overthrow of any government by force or violence and that he had never persecuted any person because of race, religion, national origin, membership in a particular social group or political opinion.

If convicted the defendant faces a maximum possible sentence of 110 years imprisonment, a $4 million fine, not more than 3 years supervised release and a $1,600 special assessment.

The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

An Information was filed charging Jelani Christmas, 30, of Philadelphia, PA, with being a felon in possession of three firearms, ammunition and a large capacity magazine, announced United States Attorney Zane David Memeger.

If convicted the defendants face a maximum possible sentence of ten years imprisonment and $250,000 fine.

The case was investigated by the ATF, and is being prosecuted by Assistant United States Attorney Alicia M. Freind.

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

Click here to view the indictment

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Joseph N. Reilly, 69 of Philadelphia, Pennsylvania, was charged today by information with mail fraud, announced United States Attorney Zane David Memeger.  According to the information, Reilly, who owned Joseph N. Reilly Real Estate, Inc., diverted more than $1 million in client funds to himself, between January 2009 and April 2011, defrauding approximately 50 clients.

Reilly, through his company, acted as a property manager for his clients, collecting rent and utilities payments for owners.  He also paid utility and real estate tax bills. Reilly mailed monthly statements to tenants and property owners.  According to the information, Reilly sent at least one statement to a property owner indicating that the balance in the owner’s account was $490,565.58 when, in fact, the balance was $86.80.  

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

The case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant United States Attorney Judy G. Smith.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA - Christopher Saridakis, 45, of Wilmington DE, pleaded guilty today to securities fraud for giving another person confidential information about a company’s stock.  Saridakis was a senior executive at GSI Commerce, Inc. (“GSIC”), when he provided material, non-public information regarding eBay’s pending acquisition of GSIC.  U.S. District Court Judge Stewart Dalzell scheduled a sentencing hearing for September 19, 2014.

On March 20, 2011, Saridakis, who was privy to discussions of a merger, sent a series of text messages to a Confidential Witness (“CW1”) that began with the defendant asking if CW1 “...own[ed] our [GSIC] shares?”  CW1 replied, “no, but it’s cheap.”  This response led Saridakis to tell CW1 “you should.”  CW1 responded with “ok,” to which Saridakis replied, “soon.”  On March 22, 2011, following the receipt of the text messages, while in possession of the inside information, and knowing defendant Saridakis’ position as a senior executive at GSIC, CW1 purchased and caused to be purchased 25,000 shares of GSIC stock on margin for approximately $470,000.  On June 20, 2011, CW1 received $737,500 in exchange for the 25,000 shares of GSIC, equating to an illicit profit of $260,304, as a result of the text messages.  Saridakis also shared the same material non-public information with other individuals.

Saridakis faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $5 million fine, and a $100 special assessment.

The case was investigated by the FBI.  The case is being prosecuted by Assistant United States Attorney Joel D. Goldstein.  Saridakis and others have been charged in a parallel civil matter by the Securities and Exchange Commission.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA - Christopher Saridakis, 45, of Wilmington DE, pleaded guilty today to securities fraud for giving another person confidential information about a company’s stock.  Saridakis was a senior executive at GSI Commerce, Inc. (“GSIC”), when he provided material, non-public information regarding eBay’s pending acquisition of GSIC.  U.S. District Court Judge Stewart Dalzell scheduled a sentencing hearing for September 19, 2014.

On March 20, 2011, Saridakis, who was privy to discussions of a merger, sent a series of text messages to a Confidential Witness (“CW1”) that began with the defendant asking if CW1 “...own[ed] our [GSIC] shares?”  CW1 replied, “no, but it’s cheap.”  This response led Saridakis to tell CW1 “you should.”  CW1 responded with “ok,” to which Saridakis replied, “soon.”  On March 22, 2011, following the receipt of the text messages, while in possession of the inside information, and knowing defendant Saridakis’ position as a senior executive at GSIC, CW1 purchased and caused to be purchased 25,000 shares of GSIC stock on margin for approximately $470,000.  On June 20, 2011, CW1 received $737,500 in exchange for the 25,000 shares of GSIC, equating to an illicit profit of $260,304, as a result of the text messages.  Saridakis also shared the same material non-public information with other individuals.

Saridakis faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $5 million fine, and a $100 special assessment.

The case was investigated by the FBI.  The case is being prosecuted by Assistant United States Attorney Joel D. Goldstein.  Saridakis and others have been charged in a parallel civil matter by the Securities and Exchange Commission.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – An indictment was unsealed yesterday charging four people, including a Philadelphia Police Department (“PPD”) dispatcher, in a conspiracy to give an unfair advantage to certain tow truck operators in exchange for bribes, announced United States Attorney Zane David Memeger.  Dorian Parsley, 44, of Philadelphia, Stepfon Flowers, 24, of Philadelphia, William Cheeseman, 42, of Delran, NJ, and Chad Harris, 22, of Philadelphia, are charged with conspiracy and bribery.  Parsley, who was the dispatcher, and Flowers, are also charged with honest services fraud.

According to the indictment, between February 2011 and December 2013, Parsley used her position as a civilian radio dispatcher to provide confidential police information, such as locations of automobile accidents, locations of PPD squad cars, and vehicle registration information, to tow truck operators who provided her with cash bribe payments. Stepfon Flowers, who worked for K&B Autocraft in Philadelphia, allegedly paid Parsley $100 to $150, weekly, for the confidential information.

In September 2012, the indictment alleges, Flowers connected William Cheeseman, an owner of K&B Auto Body, with Parsley so that Cheeseman could also receive the confidential police information in exchange for cash bribe payments.  In April 2013, Chad Harris, a tow truck driver for K&B Auto Body, also received Parsley’s contact information allegedly for the same purpose.  According to the indictment, Parsley would surreptitiously text information that came into PPD dispatch from her personal cellphone directly to those tow truck operators.  For an additional cash fee, Parsley allegedly agreed to provide certain tow truck operators with the name and address of a vehicle owner by running the license plate and vehicle registration through the PPD dispatch computer.  PPD computers automatically access the National Crime Information Center (“NCIC”) located in West Virginia when a vehicle registration was inputted.

Flowers allegedly collected some of the weekly bribe payments for Parsley.

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

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – An indictment filed today charges Dale Mentzer, 36, of Waymart, PA, and Heath DeRizzo, 37, of Manheim, PA, in a half-dozen armed robberies, in Berks, Chester, Lebanon, and Northampton Counties, between July 11, 2013 and July 19, 2013, announced United States Attorney Zane David Memeger.  The pair was charged with two counts of interference with interstate commerce by robbery, four counts of bank robbery, two counts of use and carrying of a firearm during a crime of violence, and two counts of convicted felon in possession of a firearm.  A third defendant, Samantha Henderson, 23, of Fredericksburg, PA, was charged with accessory to robbery after the fact.

According to the indictment, Mentzer and DeRizzo committed armed robberies at a Sovereign Bank branch in Kutztown, on July 11, 2013; a Northwest Savings Bank branch in Myerstown, on July 16, 2013; a First Cornerstone Bank branch in Phoenixville and The Rodeway Inn motel in Muhlenberg, on July 18, 2013; a National Penn Bank branch, on July 19, 2013; and, that same day, Cihylik Farms in Allen Township.  Henderson is charged with assisting Mentzer and DeRizzo hinder and prevent their apprehension, trial, and punishment.

If convicted, defendants Mentzer and DeRizzo each face a minimum mandatory term of 32 years in prison up to life, a fine of up to $2.5 million, five years of supervised release and a $1,000 special assessment. Henderson faces a maximum possible sentence of 10 years in prison, three years of supervised release, a fine of up to $250,000, and a $100 special assessment.

The case was investigated by the Federal Bureau of Investigation-Allentown Resident Agency, Pennsylvania State Police, East Pikeland Township Police Department, Northampton Police Department, Kutztown Police Department, Muhlenberg Township Police Department, Worcester County Bureau of Investigation, and FBI Baltimore-Salisbury Resident Agency. It is being prosecuted by Assistant United States Attorney John Gallagher.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – James Enowitch, 48, of Cromwell, CT, pleaded guilty today to mail fraud and aiding and abetting mail fraud, in connection with the operation of a number of fraudulent diploma mills, announced United States Attorney Zane David Memeger.  Between 2003 and 2012, Enowitch sold $5 million worth of fake degrees throughout the world.  He profited more than $700,000 from this fraudulent scheme. 

As early as 2003, Enowitch began operating a diploma mill, through which he advertised and sold diplomas for a fee, requiring no course work for those “diplomas.”  Enowitch and his alleged co-schemer ultimately operated at least seven different websites, through which they sold fraudulent degrees in the name of Redding University, Suffield University Glendale University, Greenwood University, and Bryson University.  Those purported universities were actually diploma mills in that they had no faculty, offered no academic curricula or services, required no course or class work, and were not recognized by the United States Department of Education.  Part of the scheme to which Enowitch pleaded guilty was a fraudulent accrediting body, called the “National Distance Learning Accreditation Council” (“NDLAC”), used to claim, falsely, that the diploma mills were “nationally accredited.” 

Enowitch admitted that he and others created phony transcripts stating that the purchaser had taken courses that the purchaser had never taken; allowed purchasers to create their own transcripts and backdate degrees; and provided fraudulent verification services to back up the fake degrees, in case an employer or other party sought verification. The degree packages ranged in price from $475 to $550 for associates, bachelors, masters, and doctoral-level degrees, with a “multi-degree discount” for buying more than one.  For an additional fee, purchasers could also allegedly select grades for the phony courses included in their transcripts. 

The defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $250,000 fine, a $100 special assessment, and an order of forfeiture.     

The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, the Defense Criminal Investigative Service, and U.S. Immigrations and Customs Enforcement Homeland Security Investigations.  It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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Maria Falu, 37, of Philadelphia, PA, was charged today by Information with preparing and filing materially false tax returns, announced United States Attorney Zane David Memeger.  The Information alleges that Falu owned Casa de Taxes and Genesis Tax Services, LLC, at 2934 North 5th Street, in Philadelphia, and prepared tax returns.  The Information alleges that from 2011 to 2013, Falu prepared false tax returns for the tax years 2010, 2011, and 2012, for a number of individuals, by reporting false income, false expenses, and false tax credits, resulting in tax losses of approximately $117,171.

If convicted, the defendant faces a maximum possible sentence of 18 years of imprisonment.

The case was investigated by Internal Revenue Service, Criminal Investigation, and is being prosecuted by Assistant United States Attorney Sarah L. Grieb.

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA - Santos Centeno, 47, of Camden, New Jersey, was sentenced today to 15 years in prison for random muggings near Philadelphia’s Independence Hall.  On June 15, 2012, Centeno and his nephew, Baldwin Centeno, were standing on 4th Street at National Independence Park when the victim approached them.  The victim’s car was missing and he was asking for help when Centeno and his nephew began beating him for no reason.  The victim suffered traumatic brain injuries, facial fractures, and other serious injuries for which he required hospitalization.  A jury convicted the pair of assault resulting in serious bodily injury and assault by striking, beating, or wounding.  In another incident, Centeno mugged a couple, walking near the park, of their cell phone and money.  He was also convicted in that assault.  His nephew was sentenced in April to 57 months in prison.

In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered three years of supervised release, $6,461 restitution, and a $220 special assessment.

The case was investigated by the Philadelphia Police Department and the National Park Service, United States Department of the Interior. It is being prosecuted by Assistant United States Attorney Denise S. Wolf. 

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
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PHILADELPHIA – Derek and Danita Willis, 49 and 35, respectively, of Russellville, Arkansas, pleaded guilty today to taking part in a scheme, between January 2006 and January 2012 that defrauded the City of Philadelphia out of more than $1 million. The couple pleaded guilty to five counts of mail fraud, obstruction of justice for the destruction of documents related to the fraud scheme, and perjury for knowingly making false statements to the grand jury on May 8, 2012.  A sentencing hearing is scheduled for October 10, 2014.

The Willis’ owned Laser Cartridge Plus, Inc. (LCP), a business located in Russellville.  They were contacted by Calvin Duncan who, at the time, worked for the Philadelphia Water Department (PWD) as a mailroom clerk.  As part of his responsibilities, Duncan was responsible for mail deliveries and purchasing supplies, including printer ink and toner cartridges, for the administrative offices of PWD. 

Duncan submitted requests for approval to purchase printer ink and toner cartridges, falsely claiming that the cartridges were for PWD employees.  After receiving the printer ink and toner cartridges from the approved vendors at the City of Philadelphia’s expense, Duncan sold the printer ink and toner cartridges to Laser Cartridge Plus, Inc. at prices significantly lower than those usually charged by ink and toner cartridge vendors.  The Willis’ knew that the cartridges had been stolen.  Derek Willis dealt directly with Duncan prior to 2005 when he tasked Danita Willis with arranging to buy the illegally obtained printer ink and toner cartridges from Duncan.  Duncan mailed the illegally obtained printer ink and toner cartridges to LCP using United Parcel Service (UPS).

The scheme caused the City of Philadelphia to pay approximately $1,368,091.19 on purchase orders and shipping costs for printer ink and toner cartridges never intended to be used by PWD employees.  Additionally, Derek and Danita Willis paid Duncan approximately $545,412.79, which was not due to him, for the printer ink and toner cartridges purchased with the City of Philadelphia funds and shipped to LCP using PWD’s UPS shipping account.  Duncan pleaded guilty on August 9, 2013 and will be sentenced on July 18, 2014.

Derek Willis faces a maximum possible sentence of 120 years in prison, a maximum fine of $2.25 million, a $900 special assessment, and supervised release; Danita Willis faces a maximum possible sentence of 110 years in prison, a maximum fine of $1.75 million, a $700 special assessment, and supervised release.

The case was investigated by the Federal Bureau of Investigation and the City of Philadelphia Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Tomika N. Stevens.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – Derek and Danita Willis, 49 and 35, respectively, of Russellville, Arkansas, pleaded guilty today to taking part in a scheme, between January 2006 and January 2012 that defrauded the City of Philadelphia out of more than $1 million. The couple pleaded guilty to five counts of mail fraud, obstruction of justice for the destruction of documents related to the fraud scheme, and perjury for knowingly making false statements to the grand jury on May 8, 2012.  A sentencing hearing is scheduled for October 10, 2014.

The Willis’ owned Laser Cartridge Plus, Inc. (LCP), a business located in Russellville.  They were contacted by Calvin Duncan who, at the time, worked for the Philadelphia Water Department (PWD) as a mailroom clerk.  As part of his responsibilities, Duncan was responsible for mail deliveries and purchasing supplies, including printer ink and toner cartridges, for the administrative offices of PWD. 

Duncan submitted requests for approval to purchase printer ink and toner cartridges, falsely claiming that the cartridges were for PWD employees.  After receiving the printer ink and toner cartridges from the approved vendors at the City of Philadelphia’s expense, Duncan sold the printer ink and toner cartridges to Laser Cartridge Plus, Inc. at prices significantly lower than those usually charged by ink and toner cartridge vendors.  The Willis’ knew that the cartridges had been stolen.  Derek Willis dealt directly with Duncan prior to 2005 when he tasked Danita Willis with arranging to buy the illegally obtained printer ink and toner cartridges from Duncan.  Duncan mailed the illegally obtained printer ink and toner cartridges to LCP using United Parcel Service (UPS).

The scheme caused the City of Philadelphia to pay approximately $1,368,091.19 on purchase orders and shipping costs for printer ink and toner cartridges never intended to be used by PWD employees.  Additionally, Derek and Danita Willis paid Duncan approximately $545,412.79, which was not due to him, for the printer ink and toner cartridges purchased with the City of Philadelphia funds and shipped to LCP using PWD’s UPS shipping account.  Duncan pleaded guilty on August 9, 2013 and will be sentenced on July 18, 2014.

Derek Willis faces a maximum possible sentence of 120 years in prison, a maximum fine of $2.25 million, a $900 special assessment, and supervised release; Danita Willis faces a maximum possible sentence of 110 years in prison, a maximum fine of $1.75 million, a $700 special assessment, and supervised release.

The case was investigated by the Federal Bureau of Investigation and the City of Philadelphia Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Tomika N. Stevens.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
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Keith Stroud, 34, of New Castle, Delaware, was charged today by indictment with possession of heroin with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of firearm, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible sentence of lifetime imprisonment, a five year period of supervised release, a $1 million fine, and a $300 special assessment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Delaware County Criminal Investigation Division, and the City of Chester Police Department.  It is being prosecuted by Assistant United States Attorney Jeanine Linehan.

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
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PHILADELPHIA - Christopher Saridakis, 45, of Wilmington DE, was charged today by information with securities fraud, announced United States Attorney Zane David Memeger.  According to the information, Saridakis, a senior executive at GSI Commerce, Inc. (“GSIC”), provided material, non-public information regarding eBay’s pending acquisition of GSIC.

It is further alleged that on March 20, 2011, Saridakis, who was privy to discussions of a merger, sent a series of text messages to CW1 that began with the defendant asking if CW1 “...own[ed] our [GSIC] shares?”  CW1 replied, “no, but it’s cheap.”  This response led Saridakis to tell CW1 “you should.”  CW1 responded with “ok,” to which Saridakis replied, “soon.”  According to the information. on March 22, 2011, following the receipt of the text messages, while in possession of the inside information, and knowing defendant Saridakis’ position as a senior executive at GSIC, CW1 purchased and caused to be purchased 25,000 shares of GSIC stock on margin for approximately $470,000.  On  June 20, 2011, CW1 received $737,500 in exchange for the 25,000 shares of GSIC, equating to an illicit profit of $260,304, as a result of the text messages.  Saridakis allegedly also shared the same material non-public information with family members and his neighbor.

If convicted the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $5 million fine, and a $100 special assessment.

U.S. Attorney Memeger credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, for the investigation. He also thanked Scott Friestad, an associate director in the U.S. Securities and Exchange Commission’s (“SEC”) Washington DC office. Saridakis and others have been charged in a parallel civil matter by the SEC.

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

NORRISTOWN – A fourth man was charged federally, yesterday, in a case involving sex with a minor who was exploited.  Mark Wilczopolski, 22, of Birdsboro, PA, is one of four men charged federally and locally.  Two additional men are charged by the Montgomery County District Attorney’s Office. In a joint press conference with Montgomery County District Attorney Risa Ferman, United States Attorney Zane David Memeger, today, announced the indictment against Wilczopolski, a/k/a “Wilco,” who is charged federally with using the Internet to entice a minor to engage in sexual conduct, receipt of child pornography and possession of child pornography.  Wilczopolski will also be prosecuted, on local charges, by the Montgomery County District Attorney’s office.  Wilczopolski is expected to make an initial appearance today in magistrate court.

            Charged in related federal indictments are: Christopher Steele, a/k/a “Mike Dozor,” 33, of Newark, DE, who was indicted on March 6, 2014, for use of an internet to entice a minor to engage in sexual conduct, interstate travel with intent to engage in illicit sexual conduct with a minor, and receipt of child pornography; Matthew Krapf, 43, of Collegeville, PA, who was indicted on January 23, 2014, on 10 counts, each, of using or inducing a child to pose for child pornography, use of the Internet to entice a minor to engage in sexual contact, three counts of distribution of child pornography, and one count of possession of child pornography; and Jason Scott Becktold, a/k/a “Scotty,” 42, of Oklahoma City, Oklahoma, who was indicted on January 23, 2014, on four counts, each, of using or inducing a child to pose for child pornography, and use of the internet to entice a minor to engage in sexual conduct.  The four men, and two others, were initially charged by the Montgomery County District Attorney. The cases listed here were adopted for federal prosecution.

            According to the indictments, each of the defendants had contact, via the Internet, with Minor #1 and enticed Minor #1 to engage in sexual conduct and transmit it over the Internet. Krapf also traveled to meet Minor #1 for the purpose of having sexual intercourse, and is charged with doing the same with four other minor boys.  In one instance, defendant Krapf traveled to meet Minor #1 and brought Minor #2 with him for the purpose of all three having sexual intercourse, which defendant Krapf videotaped and photographed, and then transmitted to others over the Internet.

            According to Becktold’s indictment, Becktold induced Minor #1 to engage in sexual activity with himself and with other Minors, record video of the activity and transmit the video to him via the Internet.  Becktold also induced Minor #1 to place a concealed recording device in a locker room to record other minor boys in various states of dress and undress.

            Defendant Steele, according to his indictment, traveled from the state of Delaware to Pennsylvania for the purpose of engaging in sex with Minor #1 and enticed Minor #1 to engage in sexual activity over the Internet. 

            “The internet continues to provide child predators with access to children who cannot appreciate the tremendous physical and mental dangers they face at the hands of criminals who prey on children for sex,” said Memeger.  “In order to combat this far too common threat, federal, state and local law enforcement partners must work together to bring those who victimize our children to justice.”

            “The greatest responsibility of law enforcement is to protect our most vulnerable citizens,” said Ferman. “Keeping children safe is our number one priority. This case highlights the dangers our children face when communicating with strangers online. An unfortunate reality of our world is there are adults willing to manipulate and exploit vulnerable youth for their own base motives. Working together, the Limerick Township Police Department, the Montgomery County District Attorney’s Office, and the Department of Homeland Security and the United States Attorney's Office for the Eastern District of Pennsylvania have taken six alleged child predators off the street. I commend and thank our law enforcement partners for the strong collaboration and cooperation that allowed us to stop these acts of abuse against vulnerable kids.”

          “HSI hereby puts child predators on notice: there is no refuge for child sexual predators who believe they can pursue their perverse behavior with impunity online; they cannot escape justice and there will be serious consequences for their actions,” said HSI Philadelphia Assistant Special Agent- in-Charge William Walker. “HSI will continue to diligently work with our partners at the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Montgomery District Attorney’s Office and other local, state, federal and international law enforcement agencies to combat the sexual exploitation of children.”

            All four defendants are in federal custody.  Matthew Krapf is scheduled for trial on May 19, 2014.  If convicted of all federal charges, he faces a mandatory minimum sentence of 15 years in prison with a maximum sentence of life.
            Christopher Steele is scheduled for trial on June 2, 2014.  If convicted of all federal charges, he faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life. 
            Jason Scott Becktold is scheduled for trial on September 15, 2014.  If convicted of all federal charges, he faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life. 
            Mark Wilczopolski is scheduled for an initial appearance this afternoon in federal court.  If convicted of all charges, he faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life.

            The cases were investigated by the Limerick Township Police, Montgomery County Detectives, and Immigration and Customs Enforcement Homeland Security Investigations.  The federal cases are being prosecuted by Assistant United States Attorney Michelle Rotella.

Click here to view the indictment

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PHILADELPHIA - Reynaldo Estrada, 50, of Brookhaven, PA, pleaded guilty today to charges arising out of his theft of personal identifying information of hospital patients.  Estrada pleaded guilty today to one count each of conspiracy to commit identity theft, aggravated identity theft, and aiding and abetting the use of a false Social Security number.

Between October 2010 and October 2011, while he was working for Crozer Chester Medical Center’s Environmental Services Department and at Community Hospital in Chester, Pennsylvania, Estrada stole scores of treatment authorization forms containing the names, addresses, dates of birth, and Social Security numbers of patients.  Estrada admitted today that he gave the forms to co-conspirators Rafael Henriquez Polanco and Yanira Lopez, who paid him for the stolen identities, knowing that the forms would be used as a part of a tax fraud scheme.  Polanco and Lopez are charged in a separate indictment with using the identifying information provided by Estrada to prepare and file approximately 144 false and fraudulent federal individual income tax returns claiming bogus refunds in excess of $1.7 million.  Both Polanco and Lopez have pleaded guilty to all charges against them.

U.S. District Court Judge Mitchell S. Goldberg scheduled Estrada’s sentencing for July 31, 2014. Estrada faces a mandatory minimum sentence of two years in prison.

The case was investigated by Internal Revenue Service Criminal Investigations, U.S. Immigration and Customs Enforcement Homeland Security Investigations, U.S. Department of State Diplomatic Security Service, and U.S. Department of Labor Office of Inspector General.  It is being prosecuted by Assistant United States Attorney Kevin Brenner.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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An Indictment was filed today charging Marquis Wilson, 23, Malcolm Moore, 23, Martril Foster, 21, and Calia Kane, 19, all of Philadelphia, PA, with conspiracy to commit armed bank robbery, armed bank robbery, carrying and using a firearm during and in relation to a crime of violence, and aiding and abetting, announced United States Attorney Zane David Memeger.  According to the indictment, Calia Kane, who was a teller at the Wells Fargo bank branch in Bala Cynwyd, conspired with the three co-defendants, and sent them a signal, on November 4, 2013, of an opportune moment to commit the robbery. The armed robbers left the bank with $81,059. On November 12, 2013, Kane cased the Wells Fargo branch in Phoenixville and, again, signaled her co-conspirators about an opportune moment to rob the bank. The armed robbers left the bank with $70,470.  All four defendants are in custody.

If convicted the defendants face a maximum possible sentence of lifetime imprisonment, with a mandatory minimum sentence of thirty-two years imprisonment consecutive to any other sentence imposed, and a $1,250,000 fine.

The case was investigated by the FBI, Lower Merion Township Police Department, and the East Pikeland Township Police Department, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PHILADELPHIA - Amedisys Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that they violated the False Claims Act by submitting false home healthcare billings to the Medicare program.  Amedisys, a Louisiana-based for-profit company, is one of the nation’s largest providers of home health services and operates in 37 states, the District of Columbia, and Puerto Rico. 

 The settlement was announced today by United States Attorney Zane David Memeger and the Department of Justice.  It resolves allegations that, between 2008 and 2010, certain Amedisys offices improperly billed Medicare for ineligible patients and services.  Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase its Medicare payments.  These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients. 

“Combating Medicare fraud and overbilling is a priority for my office, other components of the Department of Justice, and United States Attorneys’ Offices across the country,” said Memeger. “We have recovered billions of dollars in Federal health care funds from schemes such as the one alleged in this case.  Those are health care dollars that should be spent on legitimate medical needs.  This settlement should send a message to all healthcare providers in the Eastern District of Pennsylvania, including home health providers, that we will continue to dedicate our full attention and resources to pursuing similar violations of the False Claims Act.”

Additionally, this settlement resolves certain allegations that Amedisys maintained improper financial relationships with referring physicians.  The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that home healthcare providers may have with doctors who refer patients to them.  The United States alleged that Amedisys’ financial relationship with a private oncology practice in Georgia – whereby Amedisys employees provided patient care coordination services to the oncology practice at below-market prices – violated statutory requirements.

“It is critical that scarce Medicare home health dollars flow only to those who provide qualified services,” said Stuart F. Delery, Assistant Attorney General for the Civil Division.  “This settlement demonstrates the Department’s commitment to ensuring that home health providers, like other providers, comply with the rules and don’t misuse taxpayer dollars.”

Amedisys also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General that requires the companies to implement compliance measures designed to avoid or promptly detect conduct similar to that which gave rise to this settlement. 

“Improper financial relationships and false billing, as alleged in this case, can shortchange taxpayers and patients,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services.  “Our compliance agreement with Amedisys contains strong monitoring and reporting provisions to help ensure that people in Federal health programs will be protected.” 

This settlement resolves seven lawsuits pending against Amedisys in federal court – six in the Eastern District of Pennsylvania and one in the Northern District of Georgia – that were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. As part of today’s settlement, the whistleblowers – primarily former Amedisys employees  – will collectively split over $26 million.

For the United States Attorney’s Office for the Eastern District of Pennsylvania, this investigation and settlement were handled by Assistant United States Attorneys Gregory B. David and Eric D. Gill.  The United States’ investigation was conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division; the United States Attorneys’ Offices for the Northern District of Alabama, Northern District of Georgia, Eastern District of Kentucky, District of South Carolina, and Western District of New York; the Department of Health and Human Services’ Office of Inspector General; the FBI; the Office of Personnel Management’s Office of Inspector General; the Defense Criminal Investigative Service of the Department of Defense; and the Railroad Retirement Board’s Office of Inspector General.

The claims settled by the agreement are allegations only, and there has been no determination of liability.  The lawsuits are captioned United States ex rel. CAF Partners et al. v. Amedisys, Inc. et al. 10-cv-2323 (E.D. Pa.); United States ex rel. Brown v. Amedisys, Inc. et al., 13-cv-2803 (E.D. Pa.); United States ex rel. Umberhandt  v. Amedisys, Inc., 13-cv-2789 (E.D. Pa.); United States ex rel. Doe et al. v. Amedisys, Inc., 13-cv-3187 (E.D. Pa.); United States ex rel. Ognen et al. v. Amedisys, Inc. et al. 13-cv-4232 (E.D. Pa.); United States ex rel. Lewis v. Amedisys, Inc., 13-cv-3359 (E.D. Pa.); and United States ex rel. Natalie Raven et al. v. Amedisys, Inc. et al., 11-cv-0994 (N.D. Ga.).  

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $19.2 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.

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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PHILADELPHIA – A federal jury, today, returned guilty verdicts against Rahim McIntyre, 34, of Philadelphia, PA, who was charged with three counts of sex trafficking. McIntyre, a/k/a “King Kobra,” caused Internet advertisements to be created in which he advertised various females as available for purchase for purposes of prostitution.  The advertisements featured pictures of the females, scantily clad, a description of each female, and a phone number to call to arrange a meeting with a female employed by McIntyre as a prostitute. McIntyre was convicted of using force and coercion to cause the women to engage in prostitution.

A sentencing hearing is scheduled for July 21, 2014.  The defendant faces a maximum possible sentence of life imprisonment, with a minimum mandatory of 15 years, a $750,000 fine, five years up to a lifetime of supervised release and a $300 special assessment. 

McIntyre’s brother, Rashaad McIntyre, was charged in December 2012 with sex trafficking of minors and production of child pornography. He pleaded guilty and is awaiting sentencing.

The case was investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania State Police Criminal Intelligence Center, and the Philadelphia First Judicial Court Warrant Unit.  It is being prosecuted by Assistant United States Attorney Michelle Morgan. 

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA - Baldwin Centeno, 26, of Camden, New Jersey, was sentenced today to 57 months in prison for randomly beating a man, near Philadelphia’s Independence Hall, who was merely asking for assistance. On June 15, 2012, Centeno and his uncle, Santos Centeno, 47, were standing on 4th Street at National Independence Park when the victim approached them.  The victim’s car was missing and he was asking for help when Centeno and his nephew began beating him for no reason.  The victim suffered traumatic brain injuries, facial fractures, and other serious injuries for which he required hospitalization.  A jury convicted Centeno of assault resulting in serious bodily injury and assault by striking, beating, or wounding. Santos Centeno, who was convicted of an additional incident, will be sentenced May 5, 2014.

In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered three years of supervised release, $6,000 restitution, an $8,000 fine, and a $200 special assessment.

The case was investigated by the Philadelphia Police Department and the National Park Service, United States Department of the Interior. It is being prosecuted by Assistant United States Attorney Denise S. Wolf. 

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA - Mohammad Hassan Khalid, 20, a Pakistani citizen and U.S. lawful permanent resident who resided in Maryland, was sentenced today to five years in prison for conspiracy to provide material support to terrorists.  Khalid participated in a scheme to support, recruit and coordinate members of a conspiracy in their plan to wage violent jihad in and around Europe.  He pleaded guilty on May 4, 2012.

Khalid conspired with Jamie Paulin-Ramirez and Colleen LaRose, a/k/a “Jihad Jane”, who were charged separately, in a conspiracy to provide material support to terrorists. LaRose also pleaded guilty to conspiracy to kill in a foreign country, making false statements and attempted identity theft and was sentenced to 10 years in prison; Paulin-Ramirez pleaded guilty to conspiracy to provide material support to terrorists and was sentenced to eight years in prison.

In addition to the prison term, U.S. District Court Judge Petrese B. Tucker ordered three years of supervised release, with limited access to computers, and a $100 special assessment.  The sentencing result was announced by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward Hanko, and Assistant Attorney General for National Security John Carlin.

Khalid's co-defendant, Ali Charaf Damache, a/k/a “Theblackflag," an Algerian man who resided in Ireland, is in custody in Ireland, pending extradition to the United States.

From about 2008 through July 2011, Khalid and Damache conspired with LaRose, Paulin-Ramirez, and others, to provide material support and resources to terrorists, including logistical support, recruitment services, financial support, identification documents and personnel. Khalid, Damache and others devised and coordinated a violent jihad organization consisting of men and women from Europe and the United States divided into a planning team, a research team, an action team, a recruitment team and a finance team; some of whom would travel to South Asia for explosives training and return to Europe to wage violent jihad. 

As part of the conspiracy, Khalid, Damache, LaRose, and others recruited men online to wage violent jihad in South Asia and Europe.  In addition, Khalid, Damache, LaRose, and others allegedly recruited women who had passports and the ability to travel to and around Europe in support of violent jihad.  LaRose, Paulin-Ramirez, and others traveled to and around Europe to participate in and support violent jihad.  In addition, Khalid, LaRose, and others also solicited funds online for terrorists.

For example, in July 2009, Khalid posted or caused to be posted an online solicitation for funds to support terrorism on behalf of LaRose and later sent electronic communications to multiple online forums requesting the deletion of all posts by LaRose after she was questioned by the FBI.  In August 2009, Khalid sent a questionnaire to LaRose in which he asked another potential female recruit about her beliefs and intentions with regard to violent jihad.  In addition, Khalid received and concealed the location of a U.S. passport that LaRose had stolen from another individual.

The Khalid case was investigated by the FBI Field Division in Baltimore, in conjunction with the FBI's Joint Terrorism Task Force in Philadelphia, and the FBI Field Divisions in New York and Washington, D.C.  Authorities in Ireland also provided assistance in this matter.

The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams and Trial Attorney Matthew F. Blue, from the Counterterrorism Section of the Justice Department's National Security Division.  The Office of International Affairs in the Justice Department's Criminal Division also provided assistance.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

Matthew Cenac, 23, of Easton, PA, was charged today by Information with the possession of child pornography, announced United States Attorney Zane David Memeger.

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

The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations.  It is being prosecuted by Assistant United States Attorney Sherri A. Stephan.

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.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525

PHILADELPHIA – James Enowitch, 48, of Cromwell, CT, was charged today by information with mail fraud and aiding and abetting mail fraud, in connection with the operation of a number of fraudulent diploma mills, announced United States Attorney Zane David Memeger. As a result, between 2003 and 2012, Enowitch allegedly sold $5 million worth of fake degrees throughout the world. 

According to the information, as early as 2003, Enowitch began operating a diploma mill, through which he and another co-schemer advertised and sold diplomas for a fee, but required no course work for those diplomas.  It is charged that Enowitch and his co-schemer eventually operated at least seven different websites, through which they sold fraudulent degrees, including ReddingUniversity.net, GlendaleUniversity.com, SuffieldUniversity.com,SuffieldUniversity.org, GreenwoodUniversity.org, BrysonUniversity-Edu.org and WorryFreeDegree.com.  It is further alleged that each of the seven websites was linked to an entity of the same name, owned by Enowitch and his co-schemer, and that those entities were diploma mills in that they had no faculty members, offered no academic curricula or services, required no course or class work, and were not recognized by the United States Department of Education.  It is further alleged that Enowitch and his co-schemer went so far as to create a fraudulent accrediting body, called the “National Distance Learning Accreditation Council” (“NDLAC”), in order to claim that their diploma mills were accredited. 

According to the information, Enowitch and others created phony transcripts that represented that the purchaser had taken certain coursework that the purchaser had never taken; allowed purchasers to create their own transcripts and backdate degrees; and provided fraudulent verification services to back up the fake degrees, in case an employer or other party sought verification.  Enowitch and his co-schemer allegedly advertised degree packages ranging from $475 to $550 for associates, bachelors, masters, and doctoral-level degrees, with a “multi-degree discount” for buying more than one.  For an additional fee, purchasers could also allegedly select grades for the phony courses included in their transcripts. 

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

The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, the Defense Criminal Investigative Service, and U.S. Immigrations and Customs Enforcement Homeland Security Investigations.  It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.

Click here to view the indictment

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

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525