Eastern District of Pennsylvania

PHILADELPHIA – Blair Thomas, Jr., 29, of East Lansdowne, PA, was charged today, by indictment with the robbery of a bank in Springfield, PA, and the attempted armed robberies of postal employees in Yeadon and in Darby, PA, announced United States Attorney Zane David Memeger. Thomas is also charged with being a convicted felon in possession of a firearm. 

According to the indictment, on January 22, 2014, Thomas, armed with a .45-caliber Ruger, attempted to rob a United States Postal Service employee at the Yeadon Post Office, located at 709 Church Lane, of money orders. On that same date, Thomas, again armed with a .45-caliber Ruger, attempted to rob a United States Postal Service employee at the Darby Post Office, located at 801 Main Street, of money orders.  On January 23, 2014, it is alleged that Thomas robbed the Wells Fargo Bank, at 888 Baltimore Pike in Springfield, of approximately $1,890. According to a criminal complaint filed on January 29, 2014, on each of the incidents Thomas wore a mask to disguise his appearance.   

If convicted of these charges, Thomas faces a mandatory minimum sentence of 30 years in prison with a maximum sentence of life, up to five years of supervised release, a fine of up to $1.5 million, and a $600 special assessment.

The U.S. Attorney’s Office in the District of Delaware also indicted Thomas today on separate federal charges (for more information on that case, go to www.justice.gov/usao/de).  

The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Jessica Natali.

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

Matthew Krapf, 43, of Collegeville, PA, is charged by Indictment, unsealed today, with numerous counts of child exploitation, announced United States Attorney Zane David Memeger. Krapf is charged with 10 counts, each, of using or inducing a child to pose for child pornography, use of an interstate commerce facility to entice a minor to engage in sexual contact, three counts of distribution of child pornography, and one count of possession of child pornography. He is currently in federal custody awaiting trial.

According to the indictment, Krapf abused the children at locations in Bucks and Montgomery counties.

If convicted of all charges, Krapf faces a maximum possible sentence of life imprisonment, and a mandatory minimum of 15 years. 

The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, Montgomery County District Attorney’s Office, and the Limerick Township Police Department, and is being prosecuted by Assistant United States Attorney Michelle Rotella.

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

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

PHILADELPHIA - William Butler, 48, of Philadelphia, PA, was charged today by Indictment with committing four armed bank robberies at two separate Center City banks, in January 2014, announced United States Attorney Zane David Memeger.

According to the indictment, Butler was armed with a knife when he robbed the Republic Bank branch, at 1818 Market Street, on January 17th and January 27th and the Citizens Bank branch, at 1701 John F. Kennedy Boulevard, on January 24th and January 28th.  Butler took just over $11,000 total in the four robberies.

If convicted, Butler faces a maximum possible sentence of 100 years in prison, five years of supervised release, a $1 million fine, and a $400 special assessment.

The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department. It 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

PHILADELPHIA – Former Philadelphia Police Officer Jeffrey Walker pleaded guilty today to a scheme in which he planned to rob a drug dealer while on official duty.  Walker pleaded to attempted robbery which interferes with interstate commerce and carrying a firearm during and in relation to a crime of violence.

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

U.S. District Court Judge Eduardo C. Robreno scheduled a sentencing hearing for May 21, 2014.  Walker faces an advisory sentencing guideline range of up to 10 years in prison.

The case was investigated by the FBI and Philadelphia Police Department.  It is being prosecuted by Assistant United States Attorney Anthony Wzorek.

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

James Robinson, 34, of Philadelphia, Pennsylvania, was charged today by Indictment with Felon in Possession of Firearm, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible sentence of 10 years imprisonment, a three year period of supervised release, a $250,000 fine, and a $100 special assessment

The case was investigated by ATF and is being prosecuted by Assistant United States Attorney Jeanine Linehan.

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

Richard M. Gordon, 65, of Philadelphia, PA, was sentenced today to 30 months in prison for conversion of government property.  Gordon implemented a scheme to steal from the Department of Veterans Affairs (VA) by using another veteran’s identity to obtain unauthorized healthcare benefits and to receive a VA non-service connected disability pension.  For over seven and a half years, defendant Gordon continuously defrauded the VA, and ultimately converted more than $178,000 in government healthcare benefits and pension payments that he knew he was not entitled to receive. 

Gordon, who reported that he is the founder and director of Veterans Support Group of America, was convicted of conversion of government property after pleading guilty in July 2013.

In addition to the prison term, Judge Eduardo C. Robreno also ordered the defendant to serve 3 years of supervised release, and to pay full restitution of $178,607.20.
"Mr. Gordon went to great lengths to not only defraud the Department of Veterans Affairs, but to avoid detection," said Jeffrey G. Hughes, Special Agent in Charge of Northeast Field Office of the Office of the Inspector General of the Department of Veterans Affairs.  "The VA Office of Inspector General is committed to bringing Mr. Gordon and other individuals, who take valuable resources away from deserving veterans and their families, to justice. We would like to extend our gratitude to the Department of State, Department of Homeland Security-Immigration and Customs Enforcement (DHS-ICE), and the Dutch International Police for their assistance with this investigation."
The case was investigated by the Office of the Inspector General of the Department of Veterans Affairs, and was prosecuted by Special Assistant United States Attorney Thomas Moshang III.

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

PHILADELPHIA - A second superseding indictment1 was unsealed today charging five more defendants with participating in an alleged jewelry store robbery ring, announced U.S. Attorney Zane David Memeger. The indictment alleges that the defendants committed eight jewelry store robberies between July 13, 2011 and November 3, 2012, of more than $3,502,544 worth of merchandise.
Darrell Williams, 43, David Story, 45, Rufus Lawson, 47, Kenneth L. Williams, 51, Anthony Lockwood, 36, and Derrick Sherrill, 41, all of Philadelphia, are charged with conspiracy to commit robbery which interferes with interstate commerce. Those defendants are also charged, along with Brian Sheed, 21, and Amin Abdur-Rahe Shabazz, 22, both of Philadelphia, with robbery which interferes with interstate commerce. Darrell Williams, Story, Lawson, Kenneth L. Williams, and Lockwood are also charged with using and carrying a firearm during a crime of violence. The second superseding indictment adds the conspiracy charge, three robbery counts, and two firearms counts. Defendants Lawson, Sheed and Shabazz were charged in the previous indictment.

The indictment details the robberies as follows: on July 13, 2011, Darrell Williams and David Story committed an armed robbery of the Tourneau jewelry store at 160 North Gulph Road, in King of Prussia, Pennsylvania; on January 9, 2012, Darrell Williams, Story, Rufus Lawson, Anthony Lockwood, and Kenneth L. Williams robbed Govberg Jewelers, located at 292 Montgomery Avenue, in Ardmore, Pennsylvania; on February 22, 2012, Darrell Williams, Story, Lawson, and Kenneth L. Williams committed an armed robbery of Bernie Robbins Jewelers, located at 595 E. Lancaster Avenue, in Saint Davids, Pennsylvania; on April 13, 2012, Darrell Williams, Story, and Lawson committed a second armed robbery of the Tourneau store in King of Prussia; on August 22, 2012, Story committed a third robbery of the Tourneau store.
If convicted, Darrell Williams, David Story, Rufus Lawson, and Kenneth L. Williams each face a maximum sentence of life in prison; Darrell Williams and Story face a mandatory
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
2 minimum sentence of 57 years; Lawson faces a mandatory minimum sentence of 32 years; Kenneth Williams faces a mandatory minimum sentence of seven years; defendants Lockwood, Sherrill, Sheed, and Shabazz each face a maximum sentence of 20 years in prison. All defendants also face possible fines, supervised release and special assessments.

This case is being investigated by the FBI Violent Crimes Task Force, Philadelphia Police Department, Radnor Township Police Department, Lower Merion Township Police Department, Upper Merion Township Police Department, Limerick Township Police Department, Upper Providence Township Police Department, Evesham Township (New Jersey) Police Department, Lawrence Township (New Jersey) Police Department, U.S. Federal Probation, Pennsylvania State Parole, and Philadelphia County Probation. The case is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.

Release.pdf
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

PHILADELPHIA – Kidada Savage, 30, of Philadelphia, was sentenced today to life in prison for her role in the October 9, 2004, firebombing that killed six members of a federal witness’s family.  Savage is the sister of Kaboni Savage who ordered the firebombing and who was sentenced to death for 12 counts of murder in aid of racketeering.  Kidada Savage was convicted, on May 13, 2013, of six counts of murder in-aid-of racketeering, all related to the firebombing of Eugene Coleman’s family home.  Kaboni and Kidada Savage were also convicted of conspiracy to commit murder in aid of racketeering, retaliating against a witness by murder, and of using fire to commit a felony (the Coleman murders). Coleman was a federal witness at the time.  Six people, including four children, were killed in the arson. 

Today’s penalty verdict was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, and Special Agent-in-Charge Edward J. Hanko of the FBI’s Philadelphia Division.

Kidada Savage acted as a go-between for her brother, who was in federal custody awaiting a drug trial, and Lamont Lewis, who committed the firebombing.  Lewis pleaded guilty and is awaiting sentencing.  Robert Merritt and Steven Northington were also convicted in the case. Northington was sentenced to life; Merritt is awaiting sentencing.

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department.  The United States Bureau of Prisons, the United States Marshals Service, and HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation. The case was prosecuted by Assistant United States Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin, of the Criminal Division’s Capital Case Unit at the U.S. Department of Justice.         

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 – Kidada Savage, 31, of Philadelphia, was sentenced today to life in prison, and a consecutive ten-year sentence, for her role in the October 9, 2004, firebombing that killed six members of a federal witness’s family. Savage is the sister of Kaboni Savage who ordered the firebombing and who was sentenced to death for 12 counts of murder in aid of racketeering. Kidada Savage was convicted, on May 13, 2013, of six counts of murder in aid of racketeering, all related to the firebombing of Eugene Coleman’s family home. Kidada Savage was also convicted of retaliating against a witness by murder, and of using fire to commit a felony (the Coleman murders). Coleman was a federal witness at the time. Six people, including four children, were killed in the arson.

Today’s sentence was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, and Special Agent-in-Charge Edward J. Hanko of the FBI’s Philadelphia Division.

Kidada Savage acted at the behest of her brother, who was in federal custody awaiting a drug trial, and recruited Lamont Lewis to commit the firebombing. Lewis pleaded guilty and is awaiting sentencing. Robert Merritt and Steven Northington were also convicted in the case. Northington was sentenced to life; Merritt is awaiting sentencing.

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation. The case was prosecuted by Assistant United States Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin, of the Criminal Division’s Capital Case Unit at the U.S. Department of Justice.

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 Pickup, 30, and Shawn Workman, 20, both of Philadelphia, Pennsylvania, were charged today by indictment in an arson conspiracy that caused damage to company that  does business with the United States Navy, announced United States Attorney Zane David Memeger.  According to the indictment, on December 16, 2012, the defendants set a fire inside a factory owned by Arco Sales Company, located at 2211 Wakeling Street, in Philadelphia. Arco manufactured and sold renewable and non‑renewable aircraft, missile components, and Naval items to federal government agencies throughout the United States.

The indictment alleges that the defendants committed a burglary at the factory earlier in the day, stealing liquor and computer equipment.  They allegedly set the fire to destroy any evidence they left behind. The arson resulted in a four-alarm fire that completely destroyed the factory.

If convicted the defendants face a mandatory minimum sentence of five years in prison up to a maximum of 20 years, a $250,000 fine, and up to three years of supervised release.

The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Jeanine Linehan. 

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 -- Specialty pharmaceuticals company Endo Health Solutions, Inc. and its subsidiary Endo Pharmaceuticals Inc. (Endo), which is headquartered in Malvern, Pennsylvania, have agreed to pay $171.9 million to resolve civil allegations of off-label marketing of their adhesive pain patch Lidoderm. The civil resolution is the result of whistleblower allegations filed in the Eastern District of Pennsylvania and was announced today by the Department of Justice and United States Attorney Zane David Memeger. Separately handled and announced today by the Department of Justice and the Office of the United States Attorney for the Northern District of New York is Endo Pharmaceuticals Inc.’s additional deferred prosecution agreement to pay $20.8 million in criminal forfeiture and fines to resolve related criminal liability. The criminal resolution is discussed at http://www.justice.gov/opa/pr/2014/February/14-civ-187.html.

Civil Settlement in Eastern District of Pennsylvania. Lidoderm was FDA approved only for relief of pain associated with post-herpetic neuralgia (“PHN”), a painful condition that affects some individuals with a history of shingles. The civil settlement resolves allegations under the False Claims Act that, between March 1999 and December 2007: (1) Endo knowingly promoted Lidoderm for treatment of non-FDA-approved (off-label) conditions, including lower back pain and chronic pain; (2) because uses of the product for those conditions were not medically accepted indications, federal health care programs did not cover such uses; and (3) Endo’s off-label promotion caused providers to submit false reimbursement claims for such non-covered uses to Medicare, Medicaid, and other federal health care programs. Of the $171.9 million that Endo has agreed to pay to resolve these civil claims, the company will pay $137,700,172 to the United States and $34,209,981 to various States and the District of Columbia.
Under qui tam (whistleblower) provisions of the federal False Claims Act, certain private citizens may bring civil actions on behalf of the United States and may share in any recovery. The settled Lidoderm civil allegations include those originally brought by whistleblower Peggy Ryan in the first of three qui tam lawsuits now pending in federal court in the Eastern District of Pennsylvania. Ms. Ryan is a former Endo sales representative whose sales territory included upstate New York. The whistleblower share of the settlement has not yet been determined.
“Off-label marketing can undermine the doctor-patient relationship and adversely influence the clear and honest judgment of doctors that their patients rely on and trust. Pharmaceutical companies have a legal obligation to promote their drugs for only FDA-approved uses. This obligation takes precedence over the company’s bottom line,” said Memeger.

“FDA’s drug approval process is designed to ensure that companies market their products for uses that are proven to be safe and effective,” said Stuart F. Delery, Assistant Attorney General for the Civil Division of the United States Department of Justice. “We will hold accountable those who circumvent that process in pursuit of financial gain.”

Corporate Integrity Agreement. As part of the settlement, Endo Pharmaceuticals Inc. agrees to enter into a Corporate Integrity Agreement (“CIA”) with the Office of Inspector General of the U.S. Department of Health and Human Services (“HHS”). The CIA requires Endo to implement measures designed to avoid or promptly detect conduct similar to that which allegedly gave rise to this matter, including measures requiring: (1) an internal risk assessment and mitigation program; (2) numerous internal and external reviews of promotional and other practices; (3) key executives and individual Board members to sign compliance certifications; and (4) public reporting of information about Endo’s financial arrangements with physicians.

“By marketing Lidoderm for uses not covered by Federal health care programs, Endo profited at the expense of taxpayers and could have put patients at risk,” said Daniel R. Levinson, the HHS Inspector General. “Under our CIA Endo agrees to promote its products legally, while board members and top executives are specifically held accountable for compliance.”
Investigating these matters were the Federal Bureau of Investigation; the FDA’s Office of Criminal Investigations; the Defense Criminal Investigative Service of the Department of Defense; and the respective Inspector Generals’ Offices for HHS, the U.S. Postal Service, and the U.S. Office of Personnel Management.

The civil settlement was jointly handled: in the Eastern District of Pennsylvania, by Civil Chief Margaret L. Hutchinson, Deputy Chief Mary Catherine Frye, and Assistant U.S. Attorney Gerald B. Sullivan, with analysis by Auditors Denis J. Cooke and Dawn Wiggins; and at the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division, by Trial Attorney Brian McCabe. Assistance was provided by the HHS Office of Counsel to the Inspector General; the FDA’s Office of Chief Counsel; and the National Association of Medicaid Fraud Units.

The settled civil claims are allegations only. There has been no determination of civil liability. The civil lawsuits are docketed in the Eastern District of Pennsylvania as U.S.A. et al. ex rel. Ryan v. Endo Pharmaceuticals Inc., No. 05-cv-3450; U.S.A., et al. ex rel. Weathersby, et al., No. 10-cv-2039; and U.S.A. ex rel. Dhillon v. Endo Pharmaceuticals, No. 11-cv-7767.

Release.pdf
Libodem Fully Executed Settlement Agreement.pdf
Coporate Intgerity Agreement - HHS.pdf

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

ADVANCE PAY SCHEME BILKED ENTREPRENEURS OF MILLIONS

PHILADELPHIA – Matthew McManus, 45, of Glenside, Pennsylvania, was convicted today for his role in an advance fee fraud scheme that defrauded hundreds of victims searching for commercial financing.  McManus was charged with five other defendants, all of whom have pleaded guilty.  Their scheme defrauded more than 1,900 victims out of more than $26 million. A sentencing hearing is scheduled for May 21, 2014.  McManus faces a potential advisory guideline sentence of 15 years in prison with a statutory maximum possible sentence of 105 years in prison.

Defendant Andrew Bogdanoff, of Scottsdale, Arizona, was the founder and chairman of Remington Financial Group (later renamed Remington Capital) and ran the company with defendant McManus until 2008 in Arizona and Pennsylvania.  After McManus left the company in 2008, defendant Shayne Fowler, also of Scottsdale, replaced McManus as Bogdanoff's right-hand man.  Defendant Joel Nathanson, of San Diego, California, was one of Remington's most proficient employees and helped Remington defraud many victims.  Defendant Frank Vogel, of Rochester Hills, Michigan, was a Michigan-based broker who referred numerous victims to Remington in exchange for large kickbacks. Aaron Bogdanoff, also of Scottsdale, was also charged in the conspiracy. 

Between 2005 and 2011, the defendants fraudulently induced hundreds of people to pay Remington fees in excess of $10,000 a piece, based on false representations that Remington had lenders and/or investors ready to provide financing for the victims' projects.  To facilitate this fraud, the defendants issued each victim a "letter of interest," commonly referred to as an LOI.  Almost every LOI Remington issued stated that Remington had a lender or investor interested in financing the victim's project.  Remington issued an LOI to every victim even though no Remington employee had spoken to any funding source and Remington knew that it was unlikely to find funding for the project.

The LOI was written to fraudulently lead victims to believe that Remington either was an actual lender or had spoken to lenders that had already expressed interest in the customer's project. Neither was true.  Additionally, the financing terms Remington included in the LOI were unrealistic and were used solely to induce customers to pay Remington's advance fees.  In addition to the false representations in the LOI, the defendants and other Remington employees also told victims the following lies to further induce victims to pay Remington=s fees:  a) Remington had five investors or lenders interested in their project; b) Remington was the actual lender for the project; c) Remington funded or "closed" 80 percent of its deals; d) the victim would get funding for the project once the advance fee was paid and/or;  e) Remington would provide funding through its funding source Northbridge.  After a customer paid Remington's fee, McManus and Andrew Bogdanoff instructed Remington employees to find problems with the projects so that Remington could blame its failure to provide financing on the victim.  The defendants did this to help protect Remington from civil and criminal complaints. 

After the FBI and IRS conducted search warrants in Arizona and Colorado in March 2011, defendant Matthew McManus attempted to distance himself from the fraudulent scheme by obstructing justice and lying to federal agents.  He was convicted of these charges, as well.

Some of the defendants used sophisticated means to perpetuate the fraud.  For instance, in 2010, defendants Fowler and Andrew Bogdanoff used Remington's website to advertise an anti-fraud policy and stated falsely that Remington had recently provided information to the Federal Bureau of Investigation and local law enforcement authorities about a suspected email scam.  Remington posted this information to ensure that if potential customers used an internet search engine to search for allegations about Remington's fraud, they would be directed to Remington's website rather than third-party internet sources that contained negative information about Remington.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations with assistance from the Pennsylvania Securities Commission.  It is being prosecuted by Assistant United States Attorney David Axelrod.

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 today, and arrests made, in a case charging ten members of Ironworkers Local 401 with allegedly participating in a conspiracy to commit criminal acts of extortion, arson, destruction of property, and assault, in order to force construction contractors to hire union ironworkers. Specifically, the indictment charges RICO  conspiracy, violent crime in aid of racketeering, three counts of arson, two counts of use of fire to commit a felony, and conspiracy to commit arson. Eight of the ten individuals named in the indictment are charged with conspiring to use Ironworkers Local 401 as an enterprise to commit criminal acts. Joseph Dougherty, 72, of Philadelphia, the Financial Secretary/Business Manager of Local 401, was one of the eight individuals charged with racketeering conspiracy. The indictment details incidents in which the defendants threatened or assaulted contractors or their employees, and damaged construction equipment and job sites as part of a concerted effort to force contractors to hire and pay Local 401 workers, even when those workers performed no function. Among the criminal acts set forth in the indictment is the December 2012 arson of a Quaker Meetinghouse under construction in Philadelphia.

Charged with Dougherty are: business agents Edward Sweeney, 55, of Philadelphia; Francis Sean O’Donnell, 43, of Warminster, PA; Christopher Prophet, 43, of Richboro, PA; William O’Donnell, 61, of Cherry Hill, NJ; union members James Walsh, 49, William Gillin, 42, Richard Ritchie, 44, Daniel Hennigar, 53, and Greg Sullivan, 49, all of Philadelphia.

The charges were announced today by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward J. Hanko, Special Agent-in-Charge John Spratley with the Department of Labor’s Office of Inspector General, and Special Agent-in-Charge Sam Rabadi with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

According to the indictment, the defendants had a network of individuals, friendly to the Ironworkers Local 401, to help identify construction projects and job sites where work was being performed without using Local 401 members.  The indictment alleges that business agents would approach construction foremen at those work sites and imply or explicitly threaten violence, destruction of property, or other criminal acts unless union members were hired.  The defendants relied on a reputation for violence and sabotage, which had been built up in the community over many years, in order to force contractors to hire union members.  It is alleged that the defendants created “goon” squads, composed of union members and associates, to commit assaults, arsons, and destruction of property.  One such squad referred to itself as the “The Helpful Union Guys,” “T.H.U.G’s.” 

In the December 2012 arson of the Quaker Meeting House, the indictment alleges that after the contractor refused to hire union ironworkers, defendants Walsh, Gillin, and Hennigar went to the construction site at 20 East Mermaid Lane, in Philadelphia. They set a crane on fire and cut steel beams and bolts.  In another episode set forth in the indictment, members of Local 401 picketed a construction site near King of Prussia Mall between May and June of 2010 because the contractor did not hire union workers. It is alleged defendant Richard Ritchie and three others later resorted to violence when they assaulted some of the non-union workers with baseball bats.  In the July 2013 episode, the indictment alleges that defendants Sweeney and O’Donnell, under Dougherty’s direction, set up a picket line and threatened the contractor of an apartment complex under construction at 31st and Spring Garden Streets, if he did not hire Local 401 members.  According to the indictment, the contractor relinquished his profits and turned the job over to a union-affiliated contractor as a result of the threats. 

“While unions have the right to legally advocate on behalf of their members, my office will not tolerate the conduct of those who use violence to further union goals,” said United States Attorney Zane David Memeger. “Union officials and members who commit arson, destroy property, use threats of physical harm, and engage in other acts of violence to extort victims on behalf of their union need to be criminally prosecuted. Today’s indictment makes that clear.”

“The strong-arm tactics we have seen in this case are outrageous and brazen – and an unfortunate blow to the worthy intentions of unionism,” said Hanko. “The fight for workers’ rights may sometimes call for tough tactics, but violence, intimidation, arson, and sabotage are crimes which won’t be tolerated. This investigation has been wide-ranging, but it is far from over. Now that this indictment has been unsealed, we expect to hear from more victims and will aggressively pursue all other leads we receive.”

If convicted of all charges, defendants Dougherty, Sweeney, Walsh, and Gillin each face a mandatory minimum term of 35 years in prison up to a statutory maximum of 130 years; defendant Hennigar faces a mandatory minimum term of 15 years in prison up to a statutory maximum of 40 years; defendant Sullivan faces a mandatory minimum term of five years in prison up to a statutory maximum of 40 years; defendants Prophet and Ritchie face a statutory maximum of up to 40 years in prison; defendants Francis and William O’Donnell each face a statutory maximum of 20 years in prison.

The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration.  It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance from Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.

Click here to view the indictment
Click here to view the defendant chart

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

Antonio Persinger, 32, of Philadelphia, PA, was charged today by Indictment with escape from The Kintock Group Residential Reentry Center, located at 301 E. Erie Avenue, Philadephia, on November 13, 2013, announced United States Attorney Zane David Memeger.

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

The case was investigated by the Federal Bureau of Prisons and the United States Marshals and is being prosecuted by Assistant United States Attorney Arlene Fisk.

Click here to view the indictment

1An 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

Thomas C. Phelan, 35, of Wayne, PA, was sentenced today to 33 months in prison for his leadership of a mortgage fraud conspiracy involving nearly $1 million in fraudulent loan proceeds.  Phelan established Phelan Mortgage Associates (PMA), a mortgage brokerage business based in Feasterville, PA.  From August 2006 until February 2009, Phelan worked with PMA employees and others to defraud lending institutions out of nearly $1 million.  On October 15, 2013, Phelan pleaded guilty to all counts of an indictment charging him with conspiracy to commit loan and wire fraud, three counts of loan fraud and one count of wire fraud.

At sentencing, U.S. District Court Judge Robert F. Kelly heard testimony from individual victims of Phelan’s loan fraud, calling the scheme “a heartless crime.”  In addition to the 33-month prison sentence, the Court ordered that the defendant pay restitution of $850,670 to two lenders, and a mandatory assessment of $500. 

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

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

PHILADELPHIA - Sherelle Pratt, 49, of Philadelphia, was charged by Indictment, unsealed today, with filing false tax returns, aiding and assisting other individuals in preparing and filing false tax returns, theft of government property, and aggravated identity theft, announced United States Attorney Zane David Memeger. Pratt was arrested today.

According the Indictment Pratt is an IRS employee.  Pratt, according to the indictment, is alleged to have prepared federal income tax returns for a number of individuals during tax years through 2006 through 2008.  Pratt caused the refunds, and stimulus payments that the filers were supposed to receive, to be deposited into her personal bank account.  In some cases, she gave the filers a portion of the refunds and stimulus payments.  In other instances, according to the indictment, Pratt kept the refund and stimulus payments.

 If convicted, the defendant faces a maximum possible sentence of 33 years in prison, including a two year minimum mandatory sentence, a fine of up to $2.25 million dollars, a special assessment of $900, and two years of supervised release.

The case was investigated by the Treasury Inspector General for Tax Administration, Philadelphia Field Office and the Internal Revenue Service’s Criminal Investigation Division  and is being prosecuted by Assistant United States Attorney Floyd J. Miller.

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

Phillip Eric Weems, 36, of Philadelphia, was sentenced today to 121 months in prison for running an elaborate check-cashing scheme in which he created more than $1.2 million worth of forged and counterfeit securities. Weems recruited more than 70 co-conspirators who presented forged and counterfeit checks to check cashing businesses, financial institutions, and dog breeders. In addition to the fraud conspiracy, Weems was charged with straw purchasing three firearms. He pleaded guilty on January 30, 2013 to conspiracy to utter counterfeit and forged securities, uttering a forged security and aiding and abetting, uttering a counterfeit security and aiding and abetting, and three counts of aiding and abetting the making of false statements to federal firearms licensees.

Weems’ organization made and uttered dozens of forged checks of the County of Montgomery (PA) District Justice Courts, Avis Budget Group, A-Worx Staffing, Inc., Royal Car Center, Inc., Staples, Inc., The Wedge Medical Center, P.C., Gentile Realty Co., and a local general contractor. Weems also registered fake corporations with the Commonwealth of  Pennsylvania, often using names of real franchise corporations to make an additional 488 checks appear legitimate. He opened 15 business checking accounts in the names of the fake corporations with financial institutions, including Bank of America, Wachovia, Sovereign, and TD Bank, and deposited enough money in each to make the accounts appear to have adequate funds. He cashed 294 checks at multiple check cashing companies, often on the same day, and then would often withdraw the balance of funds from the accounts before the checks could be processed. He conducted this scheme from January of 2009 through November of 2009.

In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered Weems to pay restitution in the amount of $182,956.36, a $600 special assessment, and ordered three years of supervised release.

The case was investigated by the FBI and was prosecuted by Assistant United States Attorney Ashley Lunkenheimer. 

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

PHILADELPHIA – Joseph Vito Mastronardo, Jr., 63, of Meadowbrook, PA, pleaded guilty today to conspiring to participate in a racketeering enterprise (RICO), conducting an illegal gambling business, four counts of conspiring to launder money, eight counts of interstate travel in aid of racketeering, transmitting wagering information, and aggravated structuring of cash deposits.  The guilty pleas stem from his leadership of the Mastronardo Bookmaking Organization, a multi-million dollar sports betting operation with bettors throughout the U.S.  No sentencing date has been scheduled.

Mastronardo, Jr., is one of 19 defendants charged in the case; three defendants were charged by information and sixteen defendants were charged by indictment.  In the indictment, fifteen of the sixteen defendants were charged with conspiring to participate in a racketeering enterprise (RICO) and conducting an illegal gambling business. With today’s guilty plea, 11 of the 16 defendants charged in the indictment have pleaded guilty.

At its peak, the organization had more than 1,000 bettors and was generating millions of dollars a year.  According to the indictment, between January 1, 2005 and January 1, 2011, the organization utilized internet websites (www.betroma.com and www.betrose.com) and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing, and other sporting events.  Residents of Costa Rica staffed the internet websites and answered the telephones.  In 2006 and 2010, law enforcement seized over $2,100,000 of cash that Mastronardo hid in and around his home, including in specially-built secret compartments and in PVC pipes that were buried in his backyard. 

Joseph Vito Mastronardo, Jr., ran the organization by using the internet, telephone, Skype, e-mail, United States mail, and in-person communication. The Mastronardo Bookmaking Organization laundered the gambling proceeds by using a check cashing agency, two private bank accounts, and numerous international bank accounts.  On occasion, Mastronardo, Jr., also provided instructions so that a losing bettor could pay a gambling debt through a charitable donation.

Joseph V. Mastronardo, Jr., supervised the agents, sub-agents, office employees, and websites.  He laundered millions of dollars of betting proceeds, collected debts, and instructed others to collect debts.  Other indicted defendants who have pleaded guilty include: Mastronardo=s son, Joseph F. Mastronardo, who worked as an office employee, collected debts, and performed other financial duties; Eric Woehlcke, who worked as an office employee, collected debts, and was a sub-agent; Joseph and Anna Rose Vitelli, who owned J & A Check Cashing, which was used to launder the gambling proceeds; and Patrick Tronoski, Schuyler Twaddle, Michael Loftus, Michael Squillante, David Rounick, and Ronald Gendrachi.

            The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, the Montgomery County Detective Bureau, and the Montgomery County District Attorney=s Office.  It is being prosecuted by Assistant United States Attorney Jason P. Bologna and Department of Justice Trial Attorney Kelly Pearson.

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

Istvan Merchenthaler, 43, of Downingtown, PA, was charged by indictment, unsealed today, with one count of possession of unregistered firearms and one count of being a fugitive in possession of a firearm and ammunition, announced United States Attorney Zane David Memeger.  Specifically, Merchenthaler is charged with possessing approximately 60 plastic PVC pipe improvised explosive devices (“IEDs”), approximately 400 cardboard tube IEDs, a 9mm Cobray M-11 semi-automatic machine pistol, and ammunition.  Merchenthaler has been in federal custody since February 16, 2013.

If convicted of both counts, Merchenthaler faces a maximum possible sentence of 20 years in prison, a $500,000 fine, 3 years of supervised release and a $200 special assessment.

On September 23, 2013, the federal grand jury in the District of Maryland issued an indictment charging Merchenthaler with two (2) counts of being a fugitive in possession of firearms and ammunition and one (1) count of possessing an unregistered destructive device. 

On August 6, 2013, the federal grand jury in the Eastern District of North Carolina issued an indictment charging Merchenthaler with two (2) counts of being a fugitive in possession of firearms and ammunition and one (1) count of possessing an unregistered destructive device. 

On March 7, 2013, the federal grand jury in this District issued a superseding indictment charging Merchenthaler with four (4) counts of wire fraud, two (2) counts of aggravated identity theft, four (4) counts of money laundering, two (2) counts of filing false tax returns, and two (2) counts of interstate transportation of stolen goods.  According to the superseding indictment, from at least about May 2006 to about February 2013, Merchenthaler claimed to be the founder of PhoneCard USA, a company that was purportedly a “premier distribution source” for prepaid phone cards and cell phones.  Merchenthaler, who used a number of aliases, falsely claimed that PhoneCard USA had “lucrative contracts” with major retail chain stores including Walmart, 7-Eleven, and BJ’s Wholesale Club.  Further, Merchenthaler falsely claimed to have friendships with executives at Walmart and 7-Eleven.  In reality, Merchenthaler operated a “Ponzi” scheme, stealing over $2 million from over 200 investors and using much of these funds for his own benefit and to perpetuate his scheme.

Both the Maryland and North Carolina prosecutions of Merchenthaler have been transferred to this District.  All of the above cases have been consolidated before United States District Judge Robert F. Kelly. 

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Bomb Disposal Unit, the Montgomery County Bomb Squad, the Montgomery County Sheriff’s Office, the East Whiteland Police Department, the East Whiteland Fire Department, the Malvern Fire Department, and the Chester County District Attorney’s Office.  The case is being prosecuted by Assistant United States Attorney Vineet Gauri.

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

Ryan Joseph Hribick, 32, of Coatesville, Pennsylvania, was charged yesterday by indictment with one count of possession of unregistered firearms, one count of manufacturing and dealing explosive materials, one count of conspiracy to obstruct justice, and one count of witness tampering, announced United States Attorney Zane David Memeger.  

According to the indictment, Hribick possessed, manufactured, and dealt cardboard tube improvised explosive devices (“IEDs”) for several years.  After federal agents searched his home, Hribick allegedly instructed and conspired with others to destroy and conceal cardboard tubes and flash powder – which Hribick was using to manufacture IEDs – so as to keep that evidence from federal agents and the federal grand jury. In addition, the indictment alleges that Hribick attempted to influence the testimony of a federal grand jury witness regarding the destruction and concealment of evidence.

This case has been assigned to United States District Judge Robert F. Kelly.

If convicted of all counts, Hribick faces a maximum possible sentence of 60 years in prison, a $1 million fine, 3 years of supervised release and a $400 special assessment.

The case was investigated by the Federal Bureau of Investigation.  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 - Gomer Thomas Williams, 54, of Philadelphia, PA, was charged today by information with one count of wire fraud in connection with a scheme to defraud clients of the legal firm where he worked.  Williams was an attorney and associate with the Philadelphia law firm, Spector Gadon & Rosen (“Spector”).  According to the information, between 2007 and 2012, Williams defrauded four of his trust and estate clients of approximately $503,361 by diverting funds from his clients’ accounts to his personal accounts, and by overbilling his clients for legal work that was not performed. 

For the trusts, Williams was the trustee, and, for the estates, Williams was the administrator and/or executor. Williams exercised complete control over the victim-clients’ funds, including controlling their checking accounts.  The information alleges that he abused his fiduciary position in transferring funds from their accounts to pay his own personal expenses, including his mortgage.

If convicted, Williams faces a potential advisory sentencing guideline range of 33 to 41 months in prison, a $100 special assessment, a possible fine, and up to three years of supervised release.

The case was investigated by the FBI and is being prosecuted by First Assistant United States Attorney Louis D. Lappen.

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 - David Barnhouse, 24, of Horsham, PA, was charged today by superseding indictment with emailing a bomb threat to the Willow Grove Park Mall website and hacking a computer to make it appear as if someone else sent the threat. Barnhouse is charged with threats, unauthorized access to a protected computer, resisting and impeding federal officers, obstruction of service of judicial process, destruction of records in a federal investigation, and destruction of property to prevent seizure.

According to the indictment, on June 20, 2013, Barnhouse hacked into the Verizon FiOS router of his neighbor and, using their Internet service, posted the following message:

“We have planted an explosive device somewhere in the mall, and will detonate it unless all members of the Islamic faith imprisoned in the United States are freed by 7pm on June 23.  Even if you search the mall for 72 consecutive hours, you will NEVER find it.”

By using the neighbor’s Verizon service, the defendant made it appear that the neighbors had posted the threat. As a result, on June 20, 2013, FBI agents, believing that the neighbors had posted it, executed a search warrant at the neighbor’s home.  After conducting a search and interviewing the neighbors, the agents concluded that they were not the source of the threat.

The indictment further alleges that when agents returned, in November 2013, to execute a search warrant at Barnhouse’s home, Barnhouse tried to activate encryption by unplugging his computer and, during that attempt, fought and struggled with agents.

If convicted of all charges, Barnhouse faces a maximum possible sentence of 37 years in prison, a fine of up to $1.2 million, and up to three years of supervised release.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Jeanine Linehan and Michael L. Levy. 

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 - Shawn Sisco, 49, of Philadelphia, PA, was sentenced today to 12 months and one day in prison for preparing false federal income tax returns. Sisco, who owned Sisco Accounting, a home-based tax preparation business, falsified the itemized deductions on her clients' returns in order to obtain refunds in amounts larger than the filers would have otherwise received. A federal jury found her guilty after a 3-day trial. Sisco, in a statement to federal investigators, claimed that she prepared between 250 and 300 federal income tax returns, annually, and charged a fee of between $150 and $250 per return. Her scheme defrauded the IRS of approximately $163,000. Some of Sisco’s clients have been audited as a result of the fraud and have entered into payment agreements with the IRS.

In addition to the prison term, U.S. District Court Judge Petrese B. Tucker ordered Sisco to pay a fine in the amount of $10,000, a $2,800 special assessment, and ordered one year of supervised release. 

According to the testimony of trial witnesses, Sisco prepared tax returns which were false because the returns claimed that her clients had made substantial charitable contributions when many of her clients were unaware of the fact that Sisco had included charitable contributions.  The contributions that Sisco recorded were as high as $15,000 for filers who earned incomes between $40,000 and $103,000 per year. The false returns also claimed large miscellaneous deductions, and job-related expense deductions which the witnesses testified they had no knowledge of. The bogus expense deductions included: medical and dental expenses; mortgage interest; cell phone expenses; property tax expenses; clothing and shoe expenses; laundry expenses; and maintenance expense.

The case was investigated by the Internal Revenue Service Criminal Investigations. The case was prosecuted by Assistant United States Attorney Floyd J. Miller. 

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

Nicholas Aquilante, 49, of Philadelphia, PA, was charged today by indictment, January 21, 2014, with bank robbery, announced U.S. Attorney Zane David Memeger. The indictment charges that Aquilante committed a robbery of Republic Bank, located at 833 Chestnut Street in Philadelphia, Pennsylvania, on July 5, 2013.

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

This case has been investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.

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 - Thaddeus Vaskas, 50, of Tunkhannock PA, was sentenced today to 14 years in prison for one count of possession of child pornography. Vaskas pleaded guilty to that charge on March 21, 2013. Vaskas is a repeat offender, having been sentenced to 20 months in prison for a 2001 conviction for possession of child pornography. Agents with the Department of Homeland Security searched the home in Bethlehem, PA, where he was living in 2007, and found multiple images of minors engaging in sexually explicit conduct on his computer.

In addition to the prison term, U.S District Court Judge Harvey Bartle, III, ordered Vaskas to pay a  a special assessment of $100, and ordered 15 years of supervised release.

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

The case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations, and was prosecuted by Assistant United States Attorney Paul G. Shapiro.

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

PHILADELPHIA – William Hird, 68, of Philadelphia, PA, pleaded guilty today to taking part in a fraud scheme involving judges at the former Philadelphia Traffic Court. Hird, who was Director of Records at the time, pleaded guilty to 18 counts, including conspiracy, wire fraud, mail fraud and lying to the FBI when questioned about ticket fixing at Traffic Court. Hird is the fourth defendant to plead guilty in the fraud conspiracy that the government alleges involved frequent and pervasive “ticket-fixing” at the Philadelphia Traffic Court. U.S. District Court Judge Robert F. Kelly has not yet set a sentencing date. Hird faces a possible advisory sentencing guideline range of 12 to 18 months in prison, before variances or departures.

 Former traffic court judge Fortunato Perri, Sr., who pleaded guilty on March 13, 2013, would receive traffic citation numbers, the names of offenders, or the actual citations to arrange "fixing" the ticket and would convey the information to William Hird. Hird, in turn, allegedly conveyed the request to the assigned judge or the judge’s staff. Hird was extremely loyal to Perri given that Perri helped Hird move up the ladder to a high-level administrator at Traffic Court. Recorded conversations demonstrate that Hird acceded to Perri's requests to "fix" certain tickets. Given Hird's position at Traffic Court and access to the judges, Hird was able to facilitate requests for ticket fixing for Perri.      

As part of the scheme, tickets were "fixed" by either being dismissed, finding the ticket holder "not guilty," or finding the ticket holder guilty of a lesser offense. In many cases, the ticket holder did not even appear in Traffic Court, yet their ticket was "fixed." As a result, the ticketholders paid lesser or no fines and costs, and evaded the assessment of "points" on their driving record. This widespread "ticket-fixing" defrauded both the Commonwealth of Pennsylvania and the City of Philadelphia of funds, and allowed potentially unsafe drivers to remain on the roads.

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Anthony J. Wzorek.

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

PHILADELPHIA - Robertito Fontan, 42, a former narcotics officer with the Philadelphia Police Department, was found guilty today of two counts of making false statements to federal investigators concerning his romantic relationship with one of the police department’s confidential informants.

In 2003, Fontan recruited Person #1 to become a confidential informant and recommended her as a confidential informant to other law enforcement officers.  Several months later, Fontan became intimately involved with Person #1.  During their relationship, Fontan gave gifts and money to Person #1.  In 2007, the Drug Enforcement Administration (ADEA@) began investigating Person #1=s former paramour, a suspected drug dealer, and Fontan was assisting with the investigation. 

In 2008, the FBI began investigating a suspected leak of information in the DEA investigation.  As part of the leak investigation, the FBI interviewed Fontan about his intimate relationship with Person #1.  The jury found that Fontan lied to agents about his relationship with Person #1 and about giving gifts and money to Person #1. 

Fontan faces a maximum possible sentence of 10 years in prison.  A sentencing hearing is scheduled for April 28, 2014.

The case was investigated by the FBI and the Philadelphia Police Department.  It is being prosecuted by Assistant United States Attorney Neuman Leverett.

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

Leonard Stango, 66, of Philadelphia, PA, was charged today by Indictment with aggravated structuring of financial transactions and filing false tax returns, announced United States Attorney Zane David Memeger. It is alleged that between 2006 and 2009, Stango participated in a sports bookmaking operation in which he received over $5 million in proceeds from bettors. The indictment charges that Stango then withdrew approximately $2.5 million in amounts of $10,000 or less in order to avoid his banks’ currency transaction reporting requirements. It is alleged that Stango did not report any income from his bookmaking activities on his federal income tax returns for 2006 through 2008, and as a result he underreported his income in each year by several hundred thousand dollars.

If convicted, the defendant faces a maximum possible sentence of 22 years of imprisonment, threeyears of supervised release, a $900,000 fine, a $500 special assessment, and criminal forfeiture.

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

1An Indictment/ Information/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

Cua Thach, 31, of Philadelphia, PA, was charged by Indictment in a bribery scheme, announced United States Attorney Zane David Memeger.  According to the indictment, Thach offered $1,500 in bribes to an Investigator of the United States Department of Labor, Wage and Hour Division, who was investigating Thach’s company, CNS Agency, Incorporated.

If convicted, Thach faces a maximum possible sentence of 15 years in prison, a $250,000 fine, three years of supervised release and a $100 special assessment.

The case was investigated by the United States Department of Labor Office of Inspector General, the Federal Bureau of Investigation, and the Department of Labor Wage and Hour Division.  It is being prosecuted by Assistant United States Attorney Paul G. Shapiro.

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 – Iveliza Perez, 25, of Camden, NJ, pleaded guilty today to attempting to smuggle approximately two kilograms of cocaine into the United States from Jamaica using wedge heels. Perez was charged with conspiracy to possess with intent to distribute 500 or more grams of cocaine. A sentencing hearing is scheduled for May 23, 2014.  Perez faces a mandatory minimum sentence of five years in prison with a maximum possible sentence of 40 years.

In early to mid-May 2013, Perez was approached by two individuals about participating in an operation to smuggle cocaine from Jamaica into the United States. The two individuals offered to pay her $500 before traveling to Jamaica and stated that they would pay her another $3,000 to $4,000 upon returning with the drugs which were to be hidden in shoes. Perez met with other co-conspirators on several occasions before the trip. The co-conspirators paid for her flight and took care of all of the arrangements for her to stay at a villa in Montego Bay, Jamaica. While Perez was at the villa, one of her co-conspirators arranged to have her bags packed with the cocaine, hidden in three pairs of wedge heels. The defendant and the co-conspirator returned from Jamaica together and were supposed to be picked up from the airport by the other co-conspirator. Upon her return to the U.S., the defendant was caught at the airport with 1.992 kilograms of cocaine concealed in her luggage.

The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations and U.S. Customs and Border Protection with assistance from the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.

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

Jeffrey Stephen Horn, 43, of Phoenixville, PA, is charged by information, filed today, with distribution of child pornography, announced United States Attorney Zane David Memeger.  The indictment charges Russell with one count of distributing child pornography between June 13 and June 17, 2012. 

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

The case was investigated by the Federal Bureau of Investigation (including members of the FBI Child Exploitation Task Force) and the New Britain Township Police Department and is being prosecuted by Assistant United States Attorney Albert S. Glenn.

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 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

PHILADELPHIA - Hakeem Paris, 23, of Philadelphia, was sentenced today to 30 years and one month in prison for two armed robberies which he committed in 2010. A federal jury convicted Paris, on December 12, 2012, of one count of conspiracy to commit robbery which interfered with interstate commerce, one count of robbery which interfered with interstate commerce, one count of attempted robbery which interfered with interstate commerce, two counts of using and carrying a firearm during a crime of violence, and one count of being a convicted felon in possession of a firearm. 

On May 10, 2010, Paris conspired with another person to commit a gun-point robbery of Bridesburg Pizza, located at 4776 Richmond Street, in Philadelphia, where he ordered the employees of the pizza shop to move to the back of the store while holding them at gunpoint. One of the victims later stated “I thought we were dead. I truly believed he was going to kill all of us because he kept saying he was going to shoot us.”  Less than two weeks later, on May 23, 2010, he attempted to rob the Wawa convenience store located at 4371 Richmond Street, in Philadelphia.

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

This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It was prosecuted by Assistant U.S. Attorney Thomas M. Zaleski.

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

Liberado Peralta, 69, of Allentown, Pennsylvania, was charged today by indictment with one count of conspiracy to defraud the United States with respect to claims and three counts of aggravated identity theft, announced United States Attorney Zane David Memeger.

In a related case, Florentina Peralta, a/k/a “Cindy Peralta,” Jose Peralta, a/k/a “Tony Peralta,” and Fayez Antonios were each charged today by information with the same offenses, and Jose Peralta was also charged with one count of making false statements to obtain a loan insured by the Department of Housing and Urban Development.  

If convicted, each defendant other than Jose Peralta faces a maximum possible sentence of 16 years’ imprisonment, three years’ supervised release, a $1 million fine, and a $400 special assessment.  Jose Peralta’s maximum sentence is 18 years’ imprisonment, 3 years’ supervised release, a $1.25 million fine, and a $500 special assessment.

The cases were investigated by the Internal Revenue Service and the Office of the Inspector General for the Department of Housing and Urban Development.  It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.

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 - Neel Jackson, 35, of Philadelphia, PA, pleaded guilty today to health care fraud in connection with a scheme involving Brotherly Love Ambulance, Inc. A sentencing hearing is scheduled for April 17, 2014.

            In July 2010, Feda Kuran, charged elsewhere, began operating Brotherly Love Ambulance, Inc. with a co-schemer.  Jackson, an Emergency Medical Technician (EMT) employed by Brotherly Love, transported patients by ambulance when those patients could have been transported safely by other means and were, therefore, not eligible for ambulance service under Medicare and Medicaid requirements.  Jackson and others completed paperwork including “run sheets” representing that patients needed ambulance services, when he knew that they were able to walk or to be transported by public transportation or para-transit van.  In addition, Jackson gave envelopes he understood to contain cash or other payments to induce patients to allow Brotherly Love to transport them and/or to induce them to remain with Brotherly Love.  Finally, Jackson received payments for referring patients to Feda Kuran and/or Brotherly Love.  As a result of Jackson’s actions, the Medicare program paid more than $200,000 in inappropriate bills.  As a result of the overall scheme at Brotherly Love, the Medicare program paid more than $2 million in inappropriate bills. 

            The defendant faces a maximum possible sentence of 10 years of in prison, three years of supervised release, a $250,000 fine, a $100 special assessment, and an order of restitution and forfeiture.     

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

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 Bernard Lopez, 57, of Philadelphia, with theft of government funds for allegedly taking, for his own benefit, the Social Security Administration benefits check issued to another person, announced United States Attorney Zane David Memeger.  

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

The case was investigated by the Social Security Administration Office of Inspector General and the Federal Bureau of Investigation.  It is being prosecuted by Assistant United States Attorney Richard Barrett.

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 - Neel Jackson, 35, of Philadelphia, PA, was charged today by Information with Health Care Fraud and aiding and abetting health care fraud, announced United States Attorney Zane David Memeger.

In July 2010, Feda Kuran, who is charged elsewhere and has pleaded guilty, began operating Brotherly Love Ambulance, Inc. with a co-schemer. According to the Information, Jackson, an Emergency Medical Technician (EMT) employed by Brotherly Love, transported patients by ambulance when those patients could have been transported safely by other means and were, therefore, not eligible for ambulance service under Medicare and Medicaid requirements. It is further alleged that Jackson and others completed paperwork, including “run sheets,” representing that patients needed ambulance services, when he knew that they were able to walk or to be transported by public transportation or para-transit van.  In addition, it is alleged that Jackson gave envelopes he understood to contain cash or other payments to induce patients to allow Brotherly Love to transport them and/or to induce them to remain with Brotherly Love. Finally, it is alleged that Jackson received payments for referring patients to Feda Kuran and/or Brotherly Love. According to the Information, as a result of Jackson’s actions, the Medicare program paid more than $200,000 in inappropriate bills. As a result of the overall scheme at Brotherly Love, it is alleged that the Medicare program paid more than $2 million in inappropriate bills. 

If convicted, the defendant faces a maximum possible sentence of 10 years of in prison, three years of supervised release, a $250,000 fine, a $100 special assessment, and an order of restitution and forfeiture.     

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

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 - Jamie Paulin-Ramirez, 35, a U.S. citizen and former resident of Colorado, was sentenced today to eight years in prison for one count of conspiracy to provide material support to terrorists.  Ramirez, a co-defendant of Colleen LaRose, a/k/a “Jihad Jane,” pleaded guilty to the charge on March 8, 2011.  In addition to the prison term, U.S. District Court Judge Petrese B. Tucker ordered three years of supervised release and ordered Ramirez to pay a fine of $2,500 and a $100 special assessment.

The sentence was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General for National Security John Carlin, and FBI Special Agent-in-Charge Ed Hanko.

According to documents filed with the court, Ramirez, LaRose and others conspired to obtain military-style training in South Asia and then traveled to and around Europe to participate in, and in support of, violent jihad.  In a series of electronic communications dated July 19, 2009, one co-conspirator (identified as CC#2 in the superseding indictment) directed another to recruit online "some brothers that can travel freely . . . with eu passports . . . [A]nd I also need some sisters too."  The co-conspirator further explained that "sister fatima will be in charge of other sister care. . . .[W]e have already organized everything for her. . . . [W]e are will[ing] to die in order to protect her no matter what the risk is."

Ramirez exchanged email messages with LaRose during the summer of 2009, in which LaRose invited Ramirez to join her in Europe to attend a training camp.  For example, on Aug. 1, 2009, LaRose sent electronic communications to Ramirez stating that "soon i will be moving to Europe to be with other brothers & sisters . . . . when i get to europe, i will send for you to come be with me there . . . . [T]his place will be like a training camp as well as a home."  In electronic communications dated on or about August 7, 2009, CC #2 recruited another individual to find brothers and sisters to go to a "camp for [military-style] training . . . and th[e]n come back to europe to do the job . . . . [T]he job is to [k]nock down some individual[s] that are harming islam."  CC#2 goes on to explain that he is structuring "an ORGANIZATION" divided into a "plan[n]ing team . . . research team . . . action team . . . recruitment team . . . finance team."

Ramirez accepted LaRose's invitation to travel to Europe and asked to bring along her minor male child.  On Sept, 12, 2009, Ramirez traveled to Ireland with her child with the intent to live and train with jihadists.  The day after she arrived in Ireland, Ramirez married CC#2, whom she had never before met in person, in an Islamic ceremony, knowing and intending that her presence in Europe, her marriage to CC#2, and her future actions would provide support for the conspiracy.

This case was investigated by the FBI Field Division in New York, the FBI's Joint Terrorism Task Force in Philadelphia, the FBI Field Division in Denver, and the FBI Field Office in 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 Matthew F. Blue, a Trial Attorney from the Counterterrorism Section in 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

The United States announces that it has settled claims under the False Claims Act with St. Mary Medical Center (SMMC) for improperly administering certain physician income guarantee agreements.  SMMC voluntarily disclosed the allegations and has agreed to pay $2,339,224.70 to resolve the matter.

According to the self-disclosure and the investigation that followed, between January 2005 and August 2010, SMMC had 15 physician income guarantee agreements for recruited physicians and failed to properly administer the terms of certain recruitment contracts. This resulted in net overpayments to certain recruited physicians.  Because those physicians and their practices referred patients to SMMC for medical treatment that was billed to federally funded programs, the United States alleges that false claims were submitted to the government.  After it discovered the problem, SMMC took corrective action to resolve the improper payments, and disclosed the matter to the United States Attorney’s Office.

This matter was handled by Department Health and Human Services Office of the Inspector General, including Attorney Sandra Sands and AATS Audit Manager Bernard Siegel with the Office of Audit Services, and Assistant United States Attorney Susan Dein Bricklin.

Settlement Agreement, Part 1.pdf | Settlement Agreement, Part 2.pdf

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

PHILADELPHIA - Colleen R. LaRose, aka "Jihad Jane," 50, was sentenced today to 10 years in prison for conspiracy to provide material support to terrorists, conspiracy to kill in a foreign country, making false statements and attempted identity theft.  LaRose, a former resident of Montgomery County, Pennsylvania, pleaded guilty to the charges on February 1, 2011.  The sentence was handed down by U.S. District Court Judge Petrese B. Tucker.  In addition to the prison term, LaRose was ordered to pay $2,500 fine, $400 special assessment, and must complete five years of supervised release.

The sentencing result was announced by Acting Assistant Attorney General for National Security John Carlin, United States Attorney for the Eastern District of Pennsylvania Zane David Memeger, and Special Agent‑in‑Charge Ed Hanko of the Federal Bureau of Investigation's Philadelphia Division.

            “This case clearly underscores the evolving nature of the terrorist threat we now face in this country,” said Memeger.  “The Internet has made it easier for those who want to attack the American way of life to identify like-minded individuals to carry out their terroristic plans.   While today's significant sentence will help protect the community from any future threat posed by the defendant, we as a nation must remain vigilant in identifying and stopping others who are susceptible to engaging in acts of homegrown violent extremism.”

            “Today’s sentence sends a strong message to those attracted to a terrorist ideology,” said Special Agent in Charge Edward J. Hanko. “Our Joint Terrorism Task Forces and partners in the law enforcement and intelligence communities remain committed to tracking terrorists at every level, whomever and wherever they are.”

            “Today, Colleen LaRose is being held accountable for her efforts to provide support to terrorists and encourage violence against individuals overseas,” said Acting Assistant Attorney General Carlin. “I want to thank the many agents, analysts and prosecutors who helped bring about today’s result.”
LaRose was charged by indictment in March 2010.  A superseding indictment was filed in April 2010, adding co‑defendant Jamie Paulin Ramirez, a U.S. citizen and former resident of Colorado.  Ramirez pleaded guilty and will be sentenced on January 8, 2014.

According to documents filed with the court, LaRose and her co‑conspirators recruited men on the Internet to wage violent jihad in South Asia and Europe, and recruited women on the Internet who had passports and the ability to travel to and around Europe in support of violent jihad. 

LaRose and her co‑conspirators used the Internet to establish relationships with one another and to communicate regarding their plans, which included martyring themselves, soliciting funds for terrorists, soliciting passports and avoiding travel restrictions (through the collection of passports and through marriage) in order to wage violent jihad.  LaRose also stole another individual's U.S. passport and transferred it in an effort to facilitate an act of international terrorism.

            In addition, LaRose received a direct order to kill a citizen and resident of Sweden, and to do so in a way that would frighten Athe whole Kufar [non‑believer] world.@  LaRose agreed to carry out her murder assignment, and she and her co‑conspirators discussed that her appearance and American citizenship would help her blend in while carrying out their plans.  LaRose later traveled to Europe and tracked the intended target online in an effort to complete her task.

This case was investigated by the FBI's Joint Terrorism Task Force in Philadelphia, the FBI Field Division in New York, the FBI Field Division in Denver, and the FBI Field Office in Washington, DC.  Authorities in Ireland and Sweden provided assistance in this matter.  The Office of International Affairs in the Justice Department=s Criminal Division also provided assistance.  The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams, in the Eastern District of Pennsylvania, and Matthew F. Blue, Trial Attorney from the Counterterrorism Section in the Justice Department's National Security 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 - Mary Joyner, 25, of Philadelphia, PA, was charged today by Information with theft of public funds from the Department of Veterans Affairs (“VA”), announced United States Attorney Zane David Memeger.  It is alleged that the defendant submitted fraudulent time sheets while she was assigned to the VA Medical Center in Philadelphia, Pennsylvania, and took compensation for nursing aide services that she had not rendered.  The VA paid approximately $87,000 for such services that it never received.

If convicted, the defendant faces 10 years of imprisonment, a term of supervised release after imprisonment of three years, a $250,000 fine, and a $100 special assessment.

The case was investigated by the Veteran’s Affairs Office of Inspector General and is being prosecuted by Assistant United States Attorney M. Beth Leahy.

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

Princess Rosario, 37, a former employee of Mortgage IT in Allentown, was charged today by Information with one count of conspiracy to commit bank fraud, wire fraud affecting financial institutions, and the making of false statements to obtain loans insured by the Department of Housing and Urban Development, announced United States Attorney Zane David Memeger.

According to the Information, Rosario conspired with eight former employees of Madison Funding, a loan origination company, to defraud Mortgage IT into providing mortgage loans to people seeking to purchase real estate who were not creditworthy.  Rosario allegedly helped loan officers and loan processors at Madison Funding falsify information on loan applications to Mortgage IT in order to get the loans approved.

The Information alleges that Rosario was paid for the business she generated for Mortgage IT, and that Mortgage IT wound up selling its interest in the loans to secondary investors, such as Citibank, Bank of America, and Wells Fargo, so that it would lose money if the borrowers ultimately defaulted on the loans, which many did.

If convicted, Rosario faces a maximum possible sentence of five years’ imprisonment, a $250,000 fine, three years of supervised release, and a $100 special assessment. 

Her co-conspirators at Madison Funding included Joel Tillett, Jason Boggs, Claribel Gonzalez, Seemon Georges, Denise Peralta, Florentina Peralta, Ghovanna Gonzalez, and Angela Diaz, all of whom have already been charged and have pleaded guilty to mortgage fraud-based charges.

The case was investigated by the Offices of the Inspector General for the Department of Housing and Urban Development, the FDIC, and the Federal Housing Finance Agency. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.

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

Former Allentown-based real estate agents, Jose Antigua, 36, and Melquisidec Caraballo, 42, were charged today by Information with one count of conspiracy to commit bank fraud and wire fraud affecting financial institutions, announced United States Attorney Zane David Memeger.

According to the Information, from at least October 2006 until at least August 11, 2008, Antigua and Caraballo conspired with each other and two former employees of Madison Funding, a loan origination company, to defraud lenders into loaning money to their real estate clients who were not creditworthy. The Information alleges that Antigua and Caraballo helped numerous clients, who were unemployed or under-employed, buy real estate by referring them to Madison Funding employees Claribel Gonzalez and Florentia Peralta, knowing that Gonzalez and Peralta would submit fraudulent loan applications to lenders such as Mortgage IT, Countrywide, and Bank of America, on behalf of those clients.

In total, Antigua and Caraballo helped their clients obtain more than $1.7 million in fraudulent loans, many of which have since gone into default, costing the lenders, secondary investors, and insurers hundreds of thousands of dollars.

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

Gonzalez and Peralta were charged with multiple mortgage fraud-based crimes in a separate indictment and have pleaded guilty to those charges.  Six other former Madison Funding employees also have pleaded guilty to mortgage fraud-based charges.  Gonzalez and Peralta are scheduled to be sentenced on February 11, 2014.

The case was investigated by the Offices of the Inspector General for the Department of Housing and Urban Development, the FDIC, and the Federal Housing Finance Agency.  It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.

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

Andrew Sweeney, 66, of Wayne, Pennsylvania, was charged today by indictment with theft from an employee retirement fund, announced United States Attorney Zane David Memeger. According to the indictment, Sweeney, the President of Sweeney Seed Company, failed to pay monies, withheld from employees’ paychecks, to the employees’ IRA accounts and, instead, used the funds for unauthorized purposes.  Sweeney allegedly embezzled $41,165.18 intended for the Sweeney Seed Company employee retirement account.

If convicted, Sweeney faces a maximum possible sentence of five years in prison, restitution, a $250,000 fine, and three years of supervised release.

The case was investigated by Department of Labor and the United States Secret Service and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.

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

A superseding indictment was filed today adding four people to a multi-year bank fraud and identity theft scheme, announced United States Attorney Zane David Memeger. Benjamin Easley, 36, of Darby, PA, Jonathan Weeks, 42, of Upper Marlboro, NJ, Roderic Grady, 23, and Martina Grady, 25, both of New Castle, DE, were added to an indictment charging Derrick Floyd, 36, of Philadelphia, and Cynthia Nowicki, 47, of Eagleville, PA.  The defendants are charged with conspiracy, bank fraud and aggravated identity theft in a scheme involving numerous individuals, to defraud banks such as PNC Bank, Wells Fargo Bank, TD Bank, Republic Bank and Wachovia Bank.

Using the stolen account information of a PNC Bank customer, the indictment alleges that the defendants made fraudulent withdraws from the victim bank account and transferred the money to a TD Bank account set up by Derrick Floyd.  Floyd then visited multiple TD Bank branches between October 4, 2011 and October 7, 2011, making large withdrawals.  It is further alleged that these defendants conspired with Shaun Mays, Laddis Taylor, and Norman Ross, all charged elsewhere, in obtaining or attempting to obtain more than $400,000 through fraudulent withdrawals and wire transfers involving at least seven victim bank accounts.

If convicted, Easley faces a maximum possible sentence of 175 years in prison and a fine of up to $7.75 million; Nowicki faces a maximum possible sentence of 67 years in prison and a fine of up to $1.5 million; Weeks, R. Grady and M. Grady each face a maximum possible sentence of 37 years in prison and a fine of up to $1.5 million; and Derrick Floyd faces a maximum possible sentence of 35 years in prison and a fine of up to $1.25 million.

The case was investigated by Federal Bureau of Investigation and United States Secret Service.  It is being prosecuted by Assistant United States Attorney K.T. Newton.

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

Mohammad Hamdan, a/k/a "Alex Hamdan," 36, of Raleigh, North Carolina and Mohammad Sabbar, a/k/a "Ali," 31, of Schnecksville, Pennsylvania, are charged by indictment , unsealed today, with conspiracy to commit extortion, extortion, and aiding abetting have been arrested, announced United States Attorney Zane David Memeger. The defendants were arrested today.

If convicted, the defendants face a maximum possible sentence of 40 years imprisonment, three years of supervised release, a $500,000 fine and a $200 special assessment.

The case was investigated by the U.S. Department of Transportation's Office of Inspector General and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.

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 - Kermit Gosnell, 72, of Philadelphia, was sentenced today to 360 months in prison for running a pill mill out of his clinic located at 3801-3805 Lancaster Avenue in Philadelphia.  Gosnell pleaded guilty on July 9, 2013 to 12 counts including conspiracy to distribute controlled substances (oxycodone, alprazolam, and codeine), distribution and aiding and abetting the distribution of oxycodone, and maintaining a place for the illegal distribution of controlled substances.  In addition to the prison term, U.S. District Court Judge Cynthia M. Rufe ordered a fine in the amount of $50,000, a $1200 special assessment, and $200,000 in forfeiture.  

Gosnell, with the assistance of several of his former office staff at Family Medical Society, A Division of Women’s Medical Society, Inc. (“WMS”), ran a prescription pill mill from June of 2008 through February 18, 2010.  Gosnell wrote fraudulent prescriptions for hundreds of thousands of prescription pills and the frequently-abused syrups Phenergan and Promethazine with Codeine, to drug “seekers,” who met with Gosnell briefly for a cursory exam or no exam.  Gosnell wrote and sold prescriptions from his medical office for over 600,000 pills containing oxycodone (a Schedule II controlled substance, brand names Percocet, Endocet and OxyContin) including over 100,000 pills of the highly addictive OxyContin 80mg; over 800,000 pills containing alprazolam (a Schedule IV controlled substance, brand name Xanax); and over 27,000 ounces of cough syrup containing codeine (a Schedule V controlled substance, brand name Phenergan with Codeine cough syrup) to cash-paying customers without there being any medical necessity for these prescriptions.  Gosnell and his staff allowed customers to purchase multiple prescriptions under multiple names; customers could place orders for refills in person, over the phone, or by leaving a message on a WMS office answering machine; the WMS office staff would give the refill orders to Gosnell, who, without seeing the customer, would write the requested prescription and give it to WMS staff who would then collect cash and “tips” from customers.  Gosnell went from writing several hundred prescriptions for controlled substances per month filled at pharmacies in 2008 to over 2,300 filled at pharmacies in January of 2010.  Gosnell charged from $115.00 to $150.00, with a follow up visit fee of $50.00 and a $20 fee for refills of controlled substances for cash paying customers.

The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Department of Health and Human Services Office of Inspector General, the Philadelphia Police Department, and the Philadelphia District Attorney’s Office.  It was prosecuted by Assistant United States Attorneys Joan E. Burnes and Jessica Natali.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
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Brian Welsh, 22, of Philadelphia, Pennsylvania, is charged by Indictment , unsealed today, with one count of receipt of child pornography, one count of distribution of child pornography, and one count of possession of child pornography announced United States Attorney Zane David Memeger. The indictment alleges that on April 30th, Welsh was in possession of child pornography; that on May 23, 2012, Welsh received visual images of child pornography; and that on June 24, 2012, Welsh distributed child pornography. Welsh was arrested Decemeber 3, 2013 and is awaiting a detention hearing. 

If convicted the defendant faces a maximum possible sentence of 50 years in prison.

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

The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations 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

Gregory Fresta, 45, of Cherry Hill, NJ, was charged today by Indictment with mail fraud in connection with a scheme to defraud a family trust, announced United States Attorney Zane David Memeger.  A $1 million testamentary trust was established in a Will created by Fresta’s father for the benefit of Fresta’s younger brother who was a minor at the time of the father’s death.  According to the indictment, Fresta used the United States mail in furtherance of the fraud scheme to send multiple requests for funds from the trust under the guise that the funds were going to be used for the benefit of the trust beneficiary. Upon receiving the money, the defendant used the funds for his own personal use. 

If convicted, Fresta faces a maximum possible sentence of 280 years of imprisonment, a fine of $3.5 million, a special assessment of $1,400 and 3 years of supervised release.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Floyd J. Miller.

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

PHILADELPHIA - Roger Eichenholtz, 70, of Westchester County, New York, was charged today by Indictment with one count of threats, announced United States Attorney Zane David Memeger. After losing civil litigation over a business, Eichenholtz sent a numbering of harassing emails to his opponents threatening further litigation.  On September 24, 2013, Eichenholtz sent another email threatening civil and criminal litigation.  He concluded the email with the following:  

PLAN B- if for some unforeseen miracle, you escape justice, I have access to a “Side Bolt 45.cal with 6 silver bullets that have your name on them.”     

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

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

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

PHILADELPHIA – A federal jury, yesterday, convicted Francis Aponte, 47, of Philadelphia, of possession of a firearm by a convicted felon. On June 17, 2012, Aponte was standing on the sidewalk near Indiana Avenue and 4th Street when two Philadelphia Police Officers spotted him shooting a gun into the air. The officers approached and saw Aponte throw the handgun – a .380 caliber Indian Arms semi-automatic – to the ground.  Aponte was arrested and charged as a convicted felon in possession of a firearm.  A sentencing hearing is scheduled for March 4, 2014.  Aponte faces a mandatory minimum term of 15 years in prison with a maximum sentence of life, up to five-years of supervised release, a maximum fine of $250,000, and a $100 special assessment.

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

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