Eastern District of Pennsylvania

PHILADELPHIA - Feda Kuran, 37, of Philadelphia, PA, pleaded guilty today to a health care fraud scheme that involved billing Medicare for ambulance services that were not medically necessary, that were not actually provided, or that were induced by illegal kickbacks.  During this health care fraud scheme, the defendant also gave and received illegal kickbacks.  As a result, the Medicare program paid more than $2,015,712 for the fraudulent bills.  Kuran pleaded guilty to one count of Health Care Fraud and one count of violating the Anti-Kickback Statute.  U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for July 24, 2013.  Kuran faces a maximum possible sentence of 15 years in prison, three years of supervised release, a $250,000 fine, a $200 special assessment, and restitution to Medicare.  In addition, the defendant has agreed to forfeiture and a money judgment against her for more than $2 million.   

            As documents filed in connection with the plea revealed, in July 2010, the defendant began operating Brotherly Love Ambulance, Inc. with a co-schemer.  Kuran, or others acting at her direction, 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.  Not only were those patients able to be safely transported by means other than ambulance, but also many of the patients were observed walking to and from ambulances.  The defendant and others billed Medicare for ambulance services for patients who were transported by Brotherly Love employees in personal vehicles or who drove themselves or took public transportation to their destinations.  In addition, the defendant and other employees paid kickbacks to some patients to induce them to allow Brotherly Love Ambulance, Inc. to transport them.  Brotherly Love paid other patients so that the ambulance company could use those patients’ information to bill for transportation that Brotherly Love Ambulance never actually provided.  The defendant also agreed that she received kickbacks from other ambulance companies to refer patients to the other ambulance companies. 

            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

PHILADELPHIA - SugarHouse HSP Gaming, LP, has agreed to pay the United States $650,000 to resolve claims that it performed unauthorized work at the SugarHouse casino and entertainment complex along the Delaware River in Philadelphia, in violation of the Clean Water Act and the Rivers and Harbors Act.  The resolution was announced by United States Attorney Zane David Memeger. 

The Clean Water Act requires SugarHouse to obtain a United States Army Corps of Engineers (“Army Corps”) permit before discharging dredged and/or fill material into waters of the United States.  The Rivers and Harbors Act requires SugarHouse to obtain an Army Corps permit for all work in or affecting navigable waters of the United States.    

As a result of an investigation by the Army Corps, the United States asserts that from 2009 to 2010, SugarHouse, and or persons acting on its behalf, conducted work and discharged dredged and/or fill material into waters of the United States, at the SugarHouse site, without an Army Corps permit, in violation of the Clean Water Act and the Rivers and Harbors Act.  Specifically, despite three cease and desist letters by the Army Corps, SugarHouse performed unauthorized work on several occasions at areas immediately surrounding the casino that included along Piers 42 and 43.  The settlement agreement attaches an aerial photo showing the location of each alleged violation, and contains more information regarding when each violation occurred, and when subsequent remedial measures were taken.  The unauthorized work remaining at the final location is permitted pursuant to the terms of the settlement agreement. 

“This case reinforces our commitment to protecting the environment by ensuring that corporations either follow environmental laws or face serious sanctions,” Memeger said. 

To ensure that the environment receives the maximum benefit from this resolution, the settlement requires SugarHouse to pay the majority of the money, $625,000, to the Brandywine Conservancy, which is an Army Corps-approved non-profit conservation organization with demonstrated experience in land and water conservation.  The Army Corps will ensure that the $625,000 will be used towards protecting waters and wetlands in the five county area.  The remaining $25,000 payment will be made to the United States as a civil penalty in accordance with the Clean Water Act and the Rivers and Harbors Act. 

This case was handled by Assistant United States Attorney Stacey L. B. Smith.  United States Army Corps of Engineers agency counsel, Barry Gale, and surveillance and enforcement biologists, Jeffrey Steen and Kevin Maley, conducted site visits, and shared technical and legal expertise. 

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 - Adebowale Ayodeji Owoaje, 31, of Nigeria, was sentenced today to 24 months in prison for wire fraud in a scheme to defraud individuals who were selling items and applying for jobs on Craigslist.com. Using various aliases while he was located overseas, Owoaje used e-mail to reach an agreement with the individuals on the sale price of items or terms of employment, including funds for a purported bonus or training materials. Owoaje pleaded guilty on January 15, 2013. He has been in federal custody since March 2012.

From overseas, Owoaje sent counterfeit cashier’s checks to his co-conspirators here in the United States. Based on instructions from Owoaje, a co-conspirator typed amounts on counterfeit cashier’s checks that exceeded the sales price or bonus agreed to by Owaoje and the individuals. The co-conspirator then mailed the counterfeit cashier’s checks to the individuals.

Owoaje informed individuals that a check in the wrong amount was sent to them by “mistake.” Owaoje then asked individuals to deposit that check in their bank account and to keep the amount Owoaje owed the individual plus an additional sum for their trouble. Owoaje instructed individuals to wire the balance of the money via Western Union to a co-conspirator, whom Owoaje falsely represented to individuals as his secretary or shipping agent. Only after wiring this money did individuals learn that the cashier’s checks they received were counterfeit.
In addition to the prison term, U.S. District Court Judge Mary A. McLaughlin ordered $193,175.86 in restitution, three years of supervised release and a $400 special assessment.

The case was investigated by Immigrations and Customs Enforcement Homeland Security Investigations and was prosecuted by Assistant United States Attorney Vineet Gauri.

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

PHILADELPHIA – Patrick Mergen, 40, of Sewell, NJ, was sentenced yesterday to 25 years in prison for using a child to produce child pornography.  He pleaded guilty on November 20, 2012.  In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered 10 years of supervised release, computer monitoring, no unsupervised contact with minors, and sex counseling.   

            The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Michael Levy.

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

Dwight Berry, 28, Antonio Ellis, 27, Jermau Johnston, 18, all of Philadelphia, and Aski Washington, 33, of Darby, are charged by indictment , filed yesterday, in a conspiracy to rob a drug dealer’s stash house, announced United States Attorney Zane David Memeger.  The defendants are charged with conspiracy to commit Hobbs Act robbery, attempted Hobbs Act robbery, conspiracy to possess with the intent to distribute five kilograms or more of cocaine, attempted possession with intent to distribute five kilograms or more of cocaine, and carrying a firearm during and in relation to a crime of violence.  Berry, Washington, and Ellis are also charged with possession of a firearm by a convicted felon. 
According to the indictment, on March 13, 2013, after weeks of planning, the defendants met at a predetermined location in Philadelphia.  Defendants Berry and Johnston got into the minivan of Person #1 armed with two loaded firearms and zip ties.  They then drove to a convenience store to purchase gloves for Johnston to use in the robbery.  Defendants Ellis and Washington followed in a separate car carrying gloves, a mask, a can of lighter fluid, a lighter, and an empty back pack.  The defendants met with Person #2 and, with everyone present, discussed the plan to rob the stash house which they believed contained 10 kilos of cocaine and was guarded by two armed guards. They drove to a final meeting place before the robbery where law enforcement moved in before the defendants could carry out their plan.
If convicted of all charges, the defendants face a mandatory minimum sentence of 15 years in prison up to life imprisonment, a fine of up to $20 million, five years supervised release, and a $500 special assessment.  In addition, Berry, Washington, and Ellis each face an additional $250,000 fine and an additional $100 special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.

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

Emerson Flowers, 49, of Collingdale, PA, was charged today by Indictment with passport fraud, and use of a Social Security number assigned on the basis of false information. These offenses arise from the defendant’s attempt to obtain a U.S. Passport on January 18, 2013 using fraudulent identification in that name, announced United States Attorney Zane D. Memeger.

If convicted, the each defendant faces a maximum possible sentence of 15 years in prison, a fine of up to $500,000, a three-year term of supervised release, and a $200 mandatory special assessment.

The case was investigated by United States State Department and the Social Security Administration and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.

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 - Lamont Lucas, 47, of Philadelphia, PA, was charged by indictment[Note:1]1, unsealed today, with sexual abuse of a ward, providing contraband in a prison, and instigating or assisting an attempted escape, announced United States Attorney Zane David Memeger. Lucas was arrested this morning.

According to the indictment, between February 2012 and May 2012, while working as a guard at the Federal Detention Center in Philadelphia, Lucas engaged in sexual acts with the inmate.  It is further alleged that Lucas gave the inmate sterling silver earrings and assisted in an attempted escape by the inmate.

If convicted of all charges, Lucas faces a maximum possible sentence of 20 ½ years in prison.

The case was investigated by the U.S. Department of Justice Office of Inspector General with the assistance of the Federal Detention Center in Philadelphia.  It is being prosecuted by Assistant United States Attorney A. Nicole Phillips.

Click here to view the indictment

1An 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

Medicare Billed $3.6 Million for Unnecessary Ambulance Rides

PHILADELPHIA – An indictment was unsealed today charging Penn Choice Ambulance Inc., operating from Philadelphia, PA, Huntington Valley, PA and Camp Hill, PA, its owner, Anna Mudrova, and operators Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, Valeriy Davydchik, and Khusen Akhmedov, with conspiracy to commit health care fraud.  The alleged scheme involved more than $3.6 million in fraudulent claims submitted to Medicare.  The defendants were also charged with related crimes including making false statements in connection with health care matters, aggravated identity theft, paying kickbacks to patients, and money laundering, announced United States Attorney Zane David Memeger.  

Valeriy Davydchik, 58, and Khusen Akhmedov, 22, Mikhail and Irina Vasserman, both 50, and Aleksandr Vasserman, 29, all of Philadelphia, were arrested this morning.  Mudrova, 40, Gerasyuk, 41, also of Philadelphia, will make a court appearance tomorrow.  According to the indictment, the defendants conspired to defraud Medicare by recruiting patients who were able to walk and could travel safely by means other than ambulance and who therefore were not eligible for ambulance transportation under Medicare requirements.  It is alleged that the defendants, and others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants knew that the patients could be transported safely by other means and that many of them walked to the ambulance for transport.  It is further alleged that the defendants themselves, or through others, paid illegal kickbacks to the patients as part of scheme. The defendants allegedly billed Medicare for these ambulance services as if those services were medically necessary and, as a result of the allegedly fraudulent billing, the Medicare program sustained losses of more than $1.5 million for this medically unnecessary method of transportation.

             If convicted, the defendants face substantial terms of imprisonment and fines.  If convicted, Penn Choice Ambulance Inc. faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations.  All defendants could also be excluded from participating in federal health care programs.     

Bank accounts and other assets were seized which are subject to criminal forfeiture proceedings.     

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

Click here to view the indictment

An Indictment is an accusation, as is an Information.  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 - Daniel F. Dangler, 30, of Philadelphia, was sentenced today to three months in jail followed by seven months of home confinement for aiming the beam of a laser at an aircraft in the special aircraft jurisdiction of the United States. Dangler aimed a laser pointer at a Philadelphia television news helicopter on July 18, 2012. He pleaded guilty on October 17, 2012. U.S. District Court Judge John R. Padova also ordered three years of supervised release.

The news helicopter was on assignment when the news photographer noticed the helicopter cockpit light up with a bright green light. He instructed the pilot not to look in the direction of the beam. A green laser beam is more powerful than a red laser beam but either can cause retina damage to the crew of an aircraft. The helicopter crew was able to identify the house from which the laser originated, uniformed officers responded and Dangler was questioned. Initially he denied using the laser but, on a subsequent interview with FBI agents, he admitted to knowingly shining the laser beam at the helicopter.

On February 14, 2012, President Barack Obama signed the FAA Modernization and Reform Act of 2012, which modernizes the nation’s aviation system. This Act establishes a new criminal offense for aiming the beam of a laser at an aircraft in the special aircraft jurisdiction of the United States, or at the flight path of such an aircraft. The statute was enacted in response to a growing number of incidents of pilots being distracted or even temporarily blinded by laser beams.

The FAA also has a civil case pending against Dangler in which Dangler could be fined up to $11,000.

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It was prosecuted by Special Assistant United States Attorney Pedro de la Torre.

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

Derrick Parks, 40, of Philadelphia, Pennsylvania, was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.

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

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

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

Mark Murphy, 47, of Williamstown, NJ, was charged today by Information with participating in a mortgage fraud conspiracy involving more than 100 Philadelphia properties and more than $20 million in fraudulent loan proceeds, announced United States Attorney Zane David Memeger. Murphy is charged with one count of conspiracy to commit loan and wire fraud, and one count of loan fraud. The information also seeks the criminal forfeiture of over $324,000 from Murphy.

Murphy is the fifth defendant charged in this district with participating in a massive mortgage fraud conspiracy that operated between May 2004 and February 2009, primarily in the West Philadelphia section of the city of Philadelphia, involving KREW Settlement Services. KREW is a Philadelphia real estate settlement company that is alleged to have been at the center of the conspiracy. Murphy is alleged to have directly participated in securing a $324,000 mortgage loan from Washington Mutual Bank on 4930 Kingsessing Avenue in Philadelphia based on the submission of a false loan application and other false documents. The information alleges that other co-conspirators helped prepare the false supporting documentation, including false appraisal and false tax returns for Murphy, and failed to record Washington Mutual Bank’s mortgage.

The four co-conspirators charged in this district with participating in the same mortgage fraud conspiracy involving KREW are: Willie G. Manley Jr., Eric Ponder, Rashika J. Moon, and Dontaya S. Devore. According to the information, co-conspirator Willie G. Manley, charged elsewhere, was an accountant who created false income documents, such as W-2 forms, paystubs, and Form 1040 income tax returns, which were submitted to lenders. Co-conspirator Eric Ponder, charged elsewhere, is alleged to have held himself out as a real estate developer and helped cause the submission of numerous fraudulent loan applications that resulted in mortgages being unwittingly issued by various banks by, making false statements on loan applications in his own name and helping secure mortgages in the names of others by recruiting “straw buyers” whose identity and fraudulent information was used to obtain the loans. Ponder is also alleged to have submitted false invoices for construction work never performed on the properties in order to justify payments to him from the settlement proceeds of loans in the names of the straw buyers.

The conspiracy also included grossly inflated appraisals, false title insurance policies, false receipts for home repairs that were never performed, and straw buyers who knowingly allowed their names and identities to be used to purchase the properties and defraud the banks.

If convicted, Murphy faces a maximum possible sentence 35 years imprisonment, 5 years supervised release, a fine of $1,250,000 or twice the value of the property involved in the transactions, and a $200 special assessment

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

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 - Edward Montgomery, also known as “One-Eye Eddie,” 35, of Philadelphia, Pennsylvania, was sentenced today by the Honorable Gene E.K. Pratter to 21 months in prison followed by 39 months of supervised release for violating the terms of a previously imposed term of supervised release.

On July 20, 2009, Montgomery was sentenced to 60 months in prison followed by 4 years of supervised release by the Honorable Christopher C. Connor of the United States District Court for the Middle District of Pennsylvania for trafficking crack cocaine in Lewiston, Pennsylvania. Montgomery was released from federal prison on August 3, 2012.

On August 25, 2012, only three weeks after being released from prison, Montgomery fired into a group of young men sitting on the steps of a vacant house in the 1200 block of North Hollywood Street. Montgomery hit two people in what was apparently a drug-related shooting. One of the victims had a drug trafficking case pending in state court. In addition to being charged by the state for this offense, Montgomery’s federal probation officer filed a notice that this conduct violated the terms of Montgomery’s supervised release.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Robert J. Livermore.

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

PHILADELPHIA - Grace Marie Perez-Jimenez, 27, of Reading, PA, was sentenced today to 28.5 years in prison for kidnapping a 14 year-old child for ransom over a drug debt. In 2011, Perez sold "crack" cocaine to a Reading resident. On November 3, 2011, after the drug customer failed to pay her $500, Perez abducted the customer's 14-year old child, as the child walked home from school in Reading, Pennsylvania. Inside the car, Perez physically assaulted the 14-year old victim, threatening to kill the child by saying, for example, “you see this right here (referring to the gun), if I don't get my money you may not be going home to mom.” The victim was then blindfolded and handcuffed to a chair. Reading Police assisted the kidnapping victim's mother to arrange a ransom drop. Perez's co-defendant, Samantha Conrad, was captured on a video recording retrieving the first drop of pre-recorded ransom money. After the first $500 ransom payment, Perez drove to Philadelphia, along with the minor child, in Perez's gold Mitsubishi and used the $500 to buy "PCP" to later sell in Reading. Perez demanded more money and a second ransom drop was placed in the mailbox of Perez's mother.

Finally, after the second ransom payment and hours of psychological torture, the child was released with the threat that Perez would kill the 14 year old victim and the family if anyone was told the identity of the kidnappers. Perez pleaded guilty on July 12, 2012 to conspiracy to kidnap, kidnapping, conspiracy to distribute phencyclidine ("PCP"), possession with intent to distribute phencyclidine ("PCP"), collection of extension of credit by extortionate means, possession of a firearm in furtherance of a crime of violence, and one count of possession of a firearm by a convicted felon.

In addition to the prison term, U.S. District Court Judge James Knoll Gardner ordered Perez to pay a $5,000 fine, a $700 special assessment, and ordered five years of supervised release.

This case was investigated by the Federal Bureau of Investigation, the Reading Police Department, and the Berks County District Attorney's Office. It was prosecuted by Assistant U.S. Attorney Jessica Natali.

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

Joseph White, 46, of Oxford, Pennsylvania was sentenced today to eight years in prison by the Honorable Stewart Dalzell for possession of a firearm by a convicted felon. During the evening of April 12, 2012, Pennsylvania State Police were called to White’s home in Oxford for a domestic disturbance. Prior to this date, White was convicted in Pennsylvania on several felony charges including drug trafficking and receiving stolen property. When the troopers arrived that night, they found White in possession of a loaded .44 caliber revolver and a loaded shotgun and placed White under arrest. The troopers later returned to his home with a search warrant and seized 91 additional firearms, including a machine gun, a sawed-off shotgun, parts to a rocket launcher, and a large quantity of ammunition. White pleaded guilty January 7, 2013.

In addition to the prison term, White was ordered to pay a $1,500 fine, a $100 special assessment, and was ordered to complete three years of supervised release.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennsylvania State Police. It was prosecuted by Assistant United States Attorney Robert J. Livermore.

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

Dontaya S. Devore, 38, of Philadelphia, was charged today by Information with participating in a mortgage fraud conspiracy involving more than 100 Philadelphia properties and more than $20 million in fraudulent loan proceeds, announced United States Attorney Zane David Memeger. Devore is charged with conspiracy to commit loan and wire fraud, false statement in connection with Federal Housing Administration loan, and loan fraud. The information also seeks the criminal forfeiture of over $467,000 from Devore.

Devore is the fourth defendant charged in this district with participating in a massive mortgage fraud conspiracy that operated between May 2004 and February 2009, primarily in the West Philadelphia section of the city of Philadelphia involving KREW Settlement Services, a Philadelphia real estate settlement company that is alleged to have been at the center of the conspiracy. Devore is alleged to have directly participated in several fraudulent loan applications by purchasing properties in her name based on the submission of false loan applications and other false documents.

The other three co-conspirators charged in this district with participating in the same mortgage fraud conspiracy involving KREW are Willie G. Manley Jr., Eric Ponder, and Rashika J. Moon. According to the information, co-conspirator Willie G. Manley, charged elsewhere, was an accountant who created false income documents, such as W-2 forms, paystubs, and Form 1040 income tax returns, which were submitted to lenders. Co-conspirator Eric Ponder, charged elsewhere, is alleged to have held himself out as a real estate developer and helped cause the submission of numerous fraudulent loan applications that resulted in mortgages being unwittingly issued by various banks by, making false statements on loan applications in his own name and helping secure mortgages in the names of others by recruiting “straw buyers” whose identity and fraudulent information was used to obtain the loans. Ponder is also alleged to have submitted false invoices for construction work never performed on the properties in order to justify payments to him from the settlement proceeds of loans in the names of the straw buyers. The information also alleges that another co-conspirator, Rashika J. Moon, had the legal authority to sign checks from KREW’s bank account and directly participated in numerous fraudulent loan applications by purchasing properties in her name based on the submission of false loan applications and other false documents, or by later “selling” many of those properties to “straw buyers” whose identities and fraudulent information were used to obtain other loans.

The conspiracy also included grossly inflated appraisals, false title insurance policies, false receipts for home repairs that were never performed, and straw buyers who knowingly allowed their names and identities to be used to purchase the properties and defraud the banks.

If convicted, Devore faces a maximum possible sentence 37 years imprisonment, 5 years supervised release, a fine of $1.5 million or twice the value of the property involved in the transactions, and a $300 special assessment

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

Click here to view the indictment

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

COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT
HTTP://www.justice.gov/usao/pae

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

Jamal Craig, 43, of Philadelphia, Pennsylvania was charged by Indictment today with one count of Hobbs Act Robbery, and one count of brandishing, using and carrying a firearm during a crime of violence, announced United States Attorney Zane David Memeger. According to the indictment, defendant robbed the Pizza Hut, located at 2530 Aramingo Avenue, Philadelphia, PA on January 25, 2013.

If convicted, defendant faces a mandatory minimum of seven years in prison with a maximum possible sentence of life, consecutive to any other sentence, five years of supervised release, a $500,000 fine, restitution and a $200 special assessment.

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

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

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 - Feda Kuran, 37, of Philadelphia, PA, pleaded guilty today to a health care fraud scheme that involved billing Medicare for ambulance services that were not medically necessary, that were not actually provided, or that were induced by illegal kickbacks.  During this health care fraud scheme, the defendant also gave and received illegal kickbacks.  As a result, the Medicare program paid approximately $2,015,712 for the fraudulent bills.  Kuran pleaded guilty to one count of Health Care Fraud and one count of violating the Anti-Kickback Statute.  U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for July 24, 2013.  Kuran faces a maximum possible sentence of 15 years in prison, three years of supervised release, a $250,000 fine, a $200 special assessment, and restitution to Medicare.  In addition, the defendant has agreed to forfeiture and a money judgment against her for more than $2 million.   

As documents filed in connection with the plea revealed, in July 2010, the defendant began operating Brotherly Love Ambulance, Inc. with a co-schemer.  Kuran, or others acting at her direction, 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.  Not only were those patients able to be safely transported by means other than ambulance, but also many of the patients were observed walking to and from ambulances.  The defendant and others acting on behalf of Brotherly Love Ambulance also caused bills to be submitted to Medicare for ambulance services for patients who were transported by Brotherly Love employees in personal vehicles or who drove themselves or took public transportation to their destinations.  In addition, the defendant and other employees paid kickbacks to some patients to induce them to allow Brotherly Love Ambulance, Inc. to transport them.  Brotherly Love paid other patients so that the ambulance company could use those patients’ information to bill for transportation that Brotherly Love Ambulance never actually provided.  The defendant also agreed that she received kickbacks from other ambulance companies to refer patients to the other ambulance companies. 

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

1An 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

Mario Tiatenco-Nolasco, a/k/a “Tiatenco Mario Nolasco,” a/k/a “Mario Nolasco,” 23, of Philadelphia, Pennsylvania, was charged today by Indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about January 30, 2013, Tiatenco-Nolasco, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about August 27, 2010.

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

The case was investigated by Immigration and Customs Enforcement (“ICE”) and is being prosecuted by Assistant United States Attorney Virgil B. Walker.

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

Carlos Enrique Romero-Peguero, a/k/a “Juan Rodriguez-Perez,” 40, of Philadelphia, Pennsylvania, was charged today by Indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about March 7, 2013, Romero-Peguero, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about August 28, 1997, April 24, 1998, January 27, 2000 and August 8, 2001.

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

The case was investigated by Immigration and Customs Enforcement Removal and Enforcement Operations and is being prosecuted by Assistant United States Attorney Roberta Benjamin.

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

Rashika J. Moon, 42, of Carneys Point, New Jersey, was charged today by Information with participating in a mortgage fraud conspiracy involving more than 100 Philadelphia properties and more than $20 million in fraudulent loan proceeds, announced United States Attorney Zane David Memeger. Moon is charged with conspiracy to commit loan and wire fraud, false statement in connection with Federal Housing Administration loan, and loan fraud. The information also seeks the criminal forfeiture of over $1.7 million from Moon.

The information alleges a massive mortgage fraud conspiracy that operated between May 2004 and February 2009, primarily in the West Philadelphia section of the city of Philadelphia. Moon, is alleged to have been associated with KREW Settlement Services, a Philadelphia real estate settlement company that is alleged to have been at the center of the conspiracy. Moon is alleged to have had the legal authority to sign checks from KREW’s bank account. Moon is also alleged to have directly participated in numerous fraudulent loan applications by either purchasing properties in her name based on the submission of false loan applications and other false documents, or by later “selling” many of those properties to “straw buyers” whose identities and fraudulent information were used to obtain other loans. Many of the fraudulent loan applications are alleged to have included falsely-inflated sales prices and falsely-inflated appraisals, causing the lenders to loan more money than the properties than they were truly worth. Most of the mortgages were unpaid and most of the properties fell into foreclosure.

According to the information, co-conspirator Eric Ponder, charged elsewhere, held himself out as a real estate developer and helped cause the submission of numerous fraudulent loan applications that resulted in mortgages being unwittingly issued by various banks by, making false statements on loan applications in his own name and helping secure mortgages in the names of others by recruiting “straw buyers” whose identity and fraudulent information was used to obtain the loans. Ponder is also alleged to have submitted false invoices for construction work never performed on the properties in order to justify payments to him from the settlement proceeds of loans in the names of the straw buyers. The information also alleges that another co-conspirator, Willie G. Manley, charged elsewhere, was an accountant who created false income documents, such as W-2 forms, paystubs, and Form 1040 income tax returns, which were submitted to lenders. The conspiracy also included grossly inflated appraisals, false title insurance policies, false receipts for home repairs that were never performed, and straw buyers who knowingly allowed their names and identities to be used to purchase the properties and defraud the banks.

If convicted, Moon faces a maximum possible sentence 37 years imprisonment, 5 years supervised release, a fine of $1,500,000 or twice the value of the property involved in the transactions, and a $300 special assessment

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

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

PHILADELPHIA - Arlene Gerson, 46, of Philadelphia, pleaded guilty today to conspiracy to distribute oxycodone and attempted distribution of oxycodone, announced United States Attorney Zane David Memeger. Sentencing has been set for July 12, 2013 before the Honorable Stewart Dalzell of the United States District Court for the Eastern District of Pennsylvania. She faces an advisory sentencing guideline range of 57 to 71 months in prison.

Gerson was working as a pharmacist at various locations, including a health clinic run by the City of Philadelphia known as Health Center #5. Gerson used that position to access blank prescription pads, doctors’ identification information, patient identification information, and patient health insurance information in creating phony prescriptions. Gerson or one of their associates then took the false prescription to a pharmacy to be filled. Gerson and her associates then allegedly sold a portion of the controlled substances for a profit.

The case was investigated by FBI, the Philadelphia Office of Inspector General, the Drug Enforcement Administration, and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Robert Livermore.

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

PHILADELPHIA - MedEx Ambulance, Inc., located in Feasterville, PA, and its owners, Aleksandr N. Zagrodony and Sergey Zagorodny, pleaded guilty to all counts of a 41-count Indictment charging them with health care fraud, false statements in connection with health care matters, wire fraud, and conspiracy to commit health care fraud and wire fraud, announced United States Attorney Zane David Memeger.

Defendant MedEx Ambulance was incorporated in 2004, and its owners operated an ambulance company that transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The Zagorodny brothers, or others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants and their employees knew that the patients could be transported safely by other means and, in fact, many of the patients were able to walk. The defendants billed for the ambulance services as if those services were medically necessary. As a result of the fraudulent billing, the Medicare program paid more than $2.5 million for this inappropriate method of transportation.

Aleksandr Zagorodny and Sergey Zagorodny face a maximum sentence of 370 years of imprisonment, three years of supervised release, a fine of $10.25 million, mandatory restitution currently estimated at in excess of $2.6 million, and a $4,100 special assessment. MedEx faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations. All defendants could be excluded from participating in federal health care programs if convicted.

Agents previously seized four ambulances owned by MedEx Ambulance, purchased for over $200,000, which are subject to criminal forfeiture proceedings. Three bank accounts also were seized, and the funds contained in those accounts, as well as other assets, including the company headquarters, are subject to criminal forfeiture proceedings.

Sentencing is scheduled for July 2, 2013 before the Honorable Berle M. Schiller.

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

PHILADELPHIA - Three Philadelphia men are charged with conspiracy and Hobbs Acts robbery in a home invasion of the owner of an Upper Darby business, announced United States Attorney Zane David Memeger. A superseding indictment, filed yesterday, charges Jeramiah Stokes, 23, Tyreek Styles, 25, and Tyrone Styles, 24, all of Philadelphia, with the December 3, 2011 armed robbery of the owner of the Secane Deli and Grill in Upper Darby. According to the superseding indictment, the defendants and two other co-conspirators followed the owner home, forced their way into the home at gunpoint, and forced the business owner and the business owner’s family to give them money, some of which were the business proceeds of Secane Deli and Grill. The defendants are also charged with Hobbs Act robbery, and use, carrying, and discharging a firearm during a crime of violence. Defendant Tyrone Styles allegedly fired the gun as the three defendants and two co-conspirators fled the scene.

If convicted of all charges, each of the defendants faces a mandatory term of 10 years in prison, up to a life sentence, fines, supervised release, and a special assessment of $300.

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

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

PHILADELPHIA - Domeen Flowers, 49, of Maitland, Florida, was sentenced today to 28 months in prison for an identity theft scheme in which she stole the personal information of a taxpayer. Flowers, a former employee of the Internal Revenue Service in Philadelphia, used her position with the IRS to make unauthorized computer entries into the IRS’ Integrated Data Retrieval System. After accessing the system, Flowers obtained personal identifying information pertaining to a taxpayer, identified as “E.R.” She then used the information to apply for credits from different credit card companies in E.R.’s name. Flowers pleaded guilty to the crime on August 16, 2012.

“Identity theft committed by IRS employees is a serious violation of the public’s trust,” said Treasury Inspector General for Tax Administration J. Russell George. “It has the potential to harm the lives of taxpayers and undermine their faith in our Nation’s system of tax administration.”

In addition to the prison term. U.S. District Court Judge Eduardo Robreno ordered Flowers to pay restitution to the credit card companies and pay a special assessment of $900. Flowers must also serve two years of supervised release. She was immediately taken in to custody.

The case was investigated by Treasury Inspector General for Tax Administration Philadelphia Field Office and 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

Jayme Dinan, 29, of Philadelphia, Pennsylvania was charged today by Indictment with two counts of bank robbery, announced United States Attorney Zane David Memeger.

In criminal cases If convicted the defendant faces a maximum possible sentence of 40 years imprisonment, a $500,000 fine, a three year period of supervised release, and a $200 special assessment.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Joseph A. LaBar.

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

Kenny Martinez, 25, Richard Thomas Moore, 28, both of Philadelphia, and Fernando Martinez, 33, of Ponce, Puerto Rico, are charged in a one-count indictment, filed today, with conspiracy to distribute 500 grams or more of cocaine, announced United States Attorney Zane David Memeger. The indictment alleges that between March 5, 2013 and March 7, 2013, the defendants orchestrated the delivery, by express mail, of approximately one kilogram of cocaine. The package was sent from Ponce, Puerto Rico to Moore’s Philadelphia address where Fernando Martinez allegedly accepted it. It is further alleged that Moore then delivered the package to 4625 Boudinot Street. The mail parcel was interdicted from the mail by United States Postal Inspectors on March 6, 2013, in Philadelphia, Pennsylvania.

If convicted, Fernando Martinez and Richard Thomas Moore each face a maximum penalty of 40 years imprisonment, a mandatory minimum term of 5 years imprisonment, at least 4 years supervised release, and a fine of $5,000,000. Kenny Martinez faces a maximum penalty of life imprisonment, a mandatory minimum term of 10 years imprisonment, at least 8 years supervised release, and a fine of $10,000,000.

The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.

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

PHILADELPHIA - An indictment, filed today, charges eight people, including two federal prison inmates, with conspiracy to distribute 500 grams of methamphetamine, announced United States Attorney Zane David Memeger. The indictment alleges that federal inmates Jose Cardenas-Covarrubias and Donaciano Contreras-Monje, imprisoned at FCI McKean, initiated the sale of large amounts of methamphetamine to two law enforcement officers posing as Philadelphia drug dealers.
According to the indictment, defendant Silvestre Garcia-Andaya spoke with the undercover officers by telephone and negotiated a price for the delivery of large quantities of methamphetamine. Defendants Garcia-Andaya, Erika Garcia, and Alfredo Moralez-Bustos came to Philadelphia from California to meet with the “buyers” and discuss the delivery. On February 20, 2013, it is alleged that Garcia-Andaya and defendant Esau Zendejaz-Bustos delivered approximately 11 pounds of methamphetamine to one of the undercover officers and, the next day, another two pounds to the officer, accepting $10,000 as a partial payment. It is further alleged that on March 6, 2013, Garcia-Andaya met with defendants Rodolfo Luviano and Juan Antonio Lopez, who drove from Oklahoma to Philadelphia, to accept a delivery of methamphetamine.

In addition to the conspiracy, Garcia-Andaya is charged with distributing 500 grams or more of methamphetamine and possession with intent to distribute; Zendejas-Bustos is charged with distributing 500 grams or more of methamphetamine, possession with intent to distribute cocaine, and possession with intent to distribute marijuana; Luviano and Lopez are also charged with distributing 500 grams of more of methamphetamine.

If convicted, each defendant faces a mandatory ten years in prison with a maximum possible sentence of life, a mandatory term of five years supervised release to lifetime supervised release, a fine of up to $10 million, and a $100 special assessment.

The case was investigated by the Drug Enforcement Administration and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney David L. Axelrod.

INFORMATION REGARDING THE DEFENDANTS

Silvestre Garcia-Andaya, 31, of Lynwood, CA
Erika Garcia, 25, of Lynwood, CA
Alfredo Moralez-Bustos, 30, of Fresno, CA
Esau Zendejas-Bustos, 26, of Lincoln University, PA
Jose Cardenas-Covarrubias, 29, FCI McKean
Donaciano Contreras-Monje, 37, FCI McKean
Rodolfo Luviano, 24, of Oklahoma City, OK
Juan Anthonio Lopez, 22, of Tulsa, OK

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

PHILADELPHIA - Dr. Abdur Razzak Tai, 79, of Kissimmee, Florida was sentenced today to six years in prison for a fraud scheme involving a trust fund set up to compensate victims of the Fen-Phen diet drug. Tai, who practiced cardiology under the name A. Razzak Tai, M.D., and through Tri-County Doctors, Inc. and Medical Legal Consultants, Inc., was convicted in September of 2011 on six counts of mail fraud and seven counts of wire fraud.

American Home Products Corporation, later known as Wyeth, entered into a class action settlement, which established a Trust to pay benefits to persons injured by Fen-Phen with money contributed by Wyeth. Between 1997 and 2009, Tai devised a scheme to defraud the Seventh Amendment, the Trust and Wyeth, and to obtain money and property from them by means of false and fraudulent representations. He reviewed the echocardiograms of more than 1,100 patients who filed claims with the American Home Product Settlement Trust in Philadelphia and falsely certified that the patients’ tests showed that they had sustained heart damage. In reality, many of those claimants had not been harmed.

For at least one lawyer, Dr. Tai was paid a set fee of $100 for each echocardiogram that he read. In addition, Tai was to be compensated $1,500 for each claimant who qualified for benefits when that patient’s claim was paid. Dr. Tai wrote reports and signed certifications attesting that claimants had suffered heart damage on some occasions when he knew that the tests showed that they had not and, on other occasions, when he knew that he had not personally reviewed the test results to determine whether they had suffered heart damage. By misreporting measurements from the echocardiogram, the severity of a claimant’s medical condition could be exaggerated, thereby improperly qualifying the claimant for hundreds of thousands of dollars more in benefits. Dr. Tai certified that some patients qualified for the increased settlement benefits when he knew they did not.

At trial, Dr. Tai testified that his medical reports had been forged by the mass-tort lawyer who had hired him and who had paid him on a contingency fee basis. The jury returned a verdict of guilty on all 13 counts after deliberating for less than two hours.

In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered Tai to pay restitution in the amount of $4.5 million, a $15,000 fine, a special assessment of $1,300, and ordered three years of supervised release. Tai was immediately remanded.

The case was investigated by the FBI and U.S. Postal Inspection Service and was prosecuted by Assistant United States Attorney Paul 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 - Joel Stout, 32, of Elizabethtown, PA, pleaded guilty today to participating in a fraud conspiracy involving the unauthorized certification of inspections of aircraft at the Flying Tigers, Inc., a former airplane mechanical repair business in Marietta, PA. Stout’s father, Jay Stout, the president of Flying Tigers, Inc., and Howard Gunter, a retired FAA examiner, are also charged in the scheme which involved aircraft parts and inspections. Stout pleaded guilty to all seven counts of conspiracy and mail fraud charged.

Between October 2006 and October 2009, Joel Stout was employed as a Flying Tigers’ airplane mechanic. His inspection authority certification had expired on March 31, 2006. Flying Tigers performed annual inspections on aircraft, despite the absence of a certified mechanic with inspection authority. In order to conceal the absence of an IA, Flying Tigers, Joel Stout and his conspirators: did not fill out the aircraft and engine log books, leaving no written record of the inspections; forged the signature of a certified mechanic as having performed inspections; arranged

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

PHILADELPHIA- Temple University has agreed to a $100,000 settlement to resolve allegations arising from overbilling for neurology services. The settlement agreement, which was reached on February 22, 2013, was announced by United States Attorney Zane David Memeger. The overbilling to Medicaid and Medicare programs arose from services rendered at Temple University's own facilities as well as services rendered at Frankford Hospital by Temple physicians. Temple University submitted claims for medical services that were improperly coded higher than the appropriate codes that were supported by the documentation for those services. Upon review of the documentation underlying these claims, Temple University agreed that the coding was not accurate and thus, that the government paid more than it should have for the services Temple University physicians provided. Under the parties' settlement agreement, Temple University will pay $100,000.00 to the United States.

“As we continue to seek to contain healthcare costs, the United States cannot tolerate overbilling to government healthcare programs,” said Memeger. “Unfortunately, this type of fraud and waste is a serious problem facing our healthcare system. To help ensure the continued viability of these critical healthcare programs for our citizens, we must be vigilant about preventing these financial drains on the system.”

This resolution was handled by Assistant U.S. Attorneys Veronica J. Finkelstein and Susan R. Becker.

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

Tanika Victoria Little, 34, of Philadelphia, Pennsylvania, was charged today by indictment with one count of illegally possessing a firearm with obliterated serial numbers, announced United States Attorney Zane David Memeger. The indictment alleges that on October 1, 2012, Little knowingly possessed a Glock model 19, 9mm pistol, serial #TN460US, with a forcibly removed serial number plate from the frame and scratched serial number on the slide of the firearm.

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 United States Secret Service, the Office of the Attorney General Commonwealth of Pennsylvania Gun Violence Task Force, and is being prosecuted by Assistant United States Attorney Anita Eve.

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

Maurice M. Connelly, 20, of Philadelphia, PA was charged today by Indictment with three counts of robbery which interferes with interstate commerce and three counts of using, carrying, and brandishing a firearm during a crime of violence, announced United States Attorney Zane David Memeger. These charges stem from Connelly’s involvement in three separate gun-point robberies of store robberies; one on June 24, 2012, June 25, 2012, and August 27, 2012.

If convicted the defendant faces a maximum possible sentence of life imprisonment, with a mandatory minimum 57-year sentence consecutive to all other sentences, a $1,500,000 fine, 5 years supervised release, and a $600 special assessment.

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.

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

Richard Haines, Jr., 59, of Lancaster, PA, was charged today by indictment with enticing a minor to engage in sexually explicit conduct so that he could take pictures of the conduct and with possession of child pornography, announced United States Attorney Zane David Memeger.

If convicted the defendant faces a maximum possible sentence of 130 years with a 15 year mandatory minimum; 5 years up to a lifetime of supervised release; $1,250,000 fine; restitution; forfeiture and $500 special assessment.

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

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

PHILADELPHIA - Diane Williams, 51, of New York, NY, was charged today by indictment with conspiracy to commit bank fraud, bank fraud, and aggravated identity theft in connection with a scheme to use stolen bank cards to buy department store gift cards, announced United States Attorney Zane David Memeger.

According to the indictment, between January 2011 and February 2012, a co-conspirator, unknown to the grand jury, obtained stolen bank cards that had been issued by Bank of America and recruited Williams as a “shopper.” The role of the shopper was to use the victims’ identification information and stolen bank cards to buy gift cards and other merchandise. Williams, working with the co-conspirator, allegedly obtained the dates of birth, addresses, Social Security numbers, bank account numbers, and other means of identification of unknowing victims. She allegedly used this information and the stolen bank cards to fraudulently buy at least $243,029.78 worth of store gift cards and merchandise from Target, Walgreens, Walmart, and other stores in Pennsylvania, New York, and New Jersey. It is further alleged that Williams and the co-conspirator obtained and possessed bank cards that had been stolen from a Pitney-Bowes distribution center in Reading, Pennsylvania. The co-conspirator allegedly paid Williams for her work by giving her cash equal to a portion of the value of the gift cards or other merchandise she purchased in each store.

If convicted, Williams faces a total statutory maximum of 47 years in prison, five years of supervised release, a fine of $2.75 million, and a $700 special assessment.

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

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

PHILADELPHIA - Three Philadelphia men are charged with conspiracy and Hobbs Acts robbery in a superseding indictment filed yesterday, announced United States Attorney Zane David Memeger. Marcus Jones, 23, Jonte King, 22, and Maleek Brown, 22, are charged with planning and carrying out the March 14, 2012 armed robbery of the Peralta Grocery Store, located at 6935 Dicks Avenue, Philadelphia. According to the indictment, Brown acted as the getaway driver while Jones and King, brandishing firearms, robbed the store. The indictment further charges Jones and King with the March 24, 2012 armed robbery of the Golden Kingdom II Restaurant, located at 7100 Elmwood Avenue, Philadelphia. The indictment further charges Jones with the March 22, 2012 armed robbery of Aya’s Pizza, located at 7144 Elmwood Avenue, in Philadelphia.

If convicted of all charges, Jones faces a mandatory 57 years in prison up to life; King faces a mandatory 32 years in prison, up to life; Brown faces a mandatory seven years in prison up to life. Each defendant also faces possible fines, mandatory special assessments, and supervised release.

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

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

PHILADELPHIA - Allie Speight, 58, of Philadelphia, was sentenced today to 160 months in prison for a loan fraud scheme that included aggravated identity theft, bank fraud, wire fraud, and money laundering. Speight pleaded guilty on April 16, 2012 to orchestrating a scheme to induce others to obtain loans as straw borrowers in return for receiving a percentage of the loans. Co-defendant Jerome Manker received funds from the loans for construction and rehabilitation work that he never performed.

Speight and co-defendant Maurice Thomas would act as brokers, scouting for depressed properties and enticing others to purchase the properties by obtaining loans that were far in excess of the properties' values. Speight and Thomas used a mortgage broker in Pittsburgh to prepare and submit loan applications that contained false W-2 statements and pay stubs, mostly from the fictitious company of "Allied Construction and Development, Corp.," owned by Allie Speight. The mortgage broker, John Polosky, charged elsewhere, received payments from the loan proceeds outside of the payments identified in the HUD-1 settlement sheets for the loans. Speight and Thomas received at least 10-percent of the loan proceeds that they helped to broker. In many cases, Speight and Thomas allegedly created forged letters from the straw borrowers that directed title companies to send the proceeds to Fred A. Johnson, Jr., charged elsewhere, an accountant based in West Philadelphia. Johnson then laundered the loan proceeds by disbursing the monies to various bank accounts according to Speight's and Thomas' directions. By misdirecting the funds to Johnson, the lenders were not aware that the loan monies were ultimately disbursed to individuals not entitled to receive the funds, including Speight, Thomas, and members of Speight's family. More than $3 million in loans were obtained during the course of the conspiracy.

Speight was also charged with a scheme to obtain loans from Wachovia Bank using straw borrowers. Co-defendants Jerome Manker and Andrea McCrea, a former Wachovia employee, submitted loan applications that contained false documents. Over the course of three loans, Manker and McCrae obtained from Wachovia over $300,000 in loan proceeds. In July 2007, after McCrea was no longer working for Wachoiva, McCrea bribed another Wachovia employee to push a third Manker loan using a straw borrower.

In addition to the prison term - 24 months of which is a mandatory term for the aggravated identity theft - U.S. District Court Judge Juan R. Sanchez ordered Speight to pay restitution in the amount of $2,037,700, joint and severally with his co-defendants who have already been sentenced.
Maurice Thomas was sentenced to 78 months in prison; Jerome Manker was sentenced to 51 months in prison; Andrea McCrea was sentenced to 12 months and one day in prison.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorneys Daniel Velez and Christopher Diviny.

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

PHILADELPHIA - Crystal Graham, 42, of Philadelphia, was charged today by indictment with filing false claims with the United States through federal income tax returns she prepared for clients, announced United States Attorney Zane David Memeger. According to the indictment, Graham created bogus wage statements and other false financial information which she placed on tax returns that she prepared for individuals for the purpose of obtaining tax refunds in the names of the filers. The refunds were based on the filer’s alleged entitlement to the First Time Home Buyer’s Credit and the Earned Income Tax Credit which are two tax credits that could result in a tax refund in 2008 even when the filer had little, if any, taxes withheld from income in that year.

According to the Indictment, Graham had her clients sign statements giving her the authority to deposit the clients’ refund checks into her savings account, or to have the refund checks placed on prepaid access devices. This gave Graham the ability to take a substantial portion of the fraudulent refunds before giving her clients the remainder.

If convicted, Graham faces a maximum possible statutory sentence of 55 years in prison, a fine of $2.75 million, a special assessment of $1,100, and three years of supervised release.

The case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Floyd J. Miller.

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

Edward Schaeffer, 29, and William Webb, 50, both of Philadelphia, were charged today by Indictment with conspiracy, interference with interstate commerce by robbery, and brandishing a firearm during a crime of violence, announced United States Attorney Zane David Memeger. The indictment alleges that the defendants conspired to target approximately 19 pharmacies in order to steal prescription pharmaceuticals, including oxycontin, oxycodone, and percocet.

If convicted, the defendants face a maximum sentence of life imprisonment, five years of supervised release, a fine of up to $1.25 million, and a $500 special assessment. They face a mandatory 32 years in prison consecutive to any other sentence.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, Abington Twp. Police Department and Glenolden Borough Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.

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

PHILADELPHIA - Barry Jones, 67, of Philadelphia, was sentenced today to 21 months in prison for devising and executing a scheme to defraud the City of Philadelphia out of more than $1.2 million. Jones, who was charged with one count of mail fraud, was the president of Mara Management Services Inc. (“Mara”) when he knowingly submitted false bills in connection with a series of computer services contracts that Mara had entered into with City agencies.

Between July 2004 and June 2008, Mara had contracts to provide computer programming, maintenance, and consulting services to multiple agencies, including the City’s revenue and water departments, and Community Behavioral Health (“CBH”), a charitable corporation contracted by the City to provide mental health and substance abuse services for Philadelphia County Medicaid recipients. Mara hired subcontractors to perform much of the work on these contracts, repeatedly overstating the number of hours that these subcontractors worked on the projects in order to get inflated monthly payments from the City’s agencies and CBH.

Jones also overstated the number of hours that he was working on the contracted-for projects and between 2006 and 2008, he even sought and received compensation from the City for work by a subcontractor who had stopped working on the projects in 2005. In total, Jones caused the City to make payments to Mara totaling more than $5.9 million between January 1, 2005 and June 30, 2008, in connection with Mara’s contracts with the Revenue Department, the Water Department, and CBH. Jones admitted that he kept approximately $2.7 million for himself, which greatly exceeded the amount he was entitled to receive from the City.

In addition to the prison term, U.S. District Court Judge Robert F. Kelly ordered Jones to pay restitution in the amount of $1.2 million and ordered three years of supervised release.

The case was investigated by the United States Postal Inspection Service and the City of Philadelphia’s Office of the Inspector General. It was prosecuted by Assistant United States Attorney Mark B. Dubnoff.

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 Manilla, 51, of Worcester, PA, pleaded guilty today to possession of firearms by a convicted felon. Manilla was found to be in possession of multiple firearms and ammunition when police investigated the November 2010 shooting death of a hunter. Manilla, who fired the fatal shot, was prohibited from possessing any weapons because of his conviction on aggravated assault for the 1985 beating of another man.

U.S. District Court Judge Jan E. DuBois scheduled a sentencing hearing for June 27, 2013. Manilla faces a maximum statutory sentence of 10 years in prison, a fine of up to $250,000, three years of supervised release, and a $100 special assessment.

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

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

Aaron Thomas, 47, of Philadelphia pleaded guilty today to six counts of bank robbery, announced United States Attorney Zane David Memeger. Thomas pleaded guilty to robbing six banks: (1) PNC Bank located on Old York Road in Abington on August 10, 2012; (2) TD Bank located on City Avenue in Philadelphia, on August 8, 2012; (3) TD Bank located on City Avenue in Philadelphia on May 17, 2011; (4) TD Bank located on Moreland Road in Abington, on September 17, 2009; (5) TD Bank located on Grant Avenue in Philadelphia, on September 17, 2009; and (6) TD Bank located on Old York Road in Abington on July 24, 2009. Thomas was apprehended by Abington Police following the PNC Bank robbery on August 10, 2012 after a vehicle and foot pursuit through the streets of Abington and Philadelphia which resulted in two police officers being injured and several vehicles damaged. Thomas has two prior convictions for bank robbery.

Sentencing is scheduled for June 12, 2013 before the Honorable Lawrence F. Stengel.

The case was investigated by Federal Bureau of Investigation, the Abington Township Police Department, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert J. Livermore.

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 indictment was unsealed today charging eleven people in a conspiracy that involved secreting packets of heroin inside the body, in order to smuggle the drugs into the United States from the Dominican Republic, drug charges and kidnapping. The indictment names defendants Higinio Castillo and Michael Nunez-Rodriguez as the alleged leaders of the Castillo Drug Smuggling Organization (CDSO). Members of the CDSO acted as couriers and recruited other individuals to act as couriers smuggling the drugs inside their bodies or in luggage. The CDSO paid the couriers’ travel expenses, helped them obtain U.S. Passports, and drove them to and from the U.S. airports. The indictment alleges that the CDSO operated in Philadelphia from November 2010 through March 2012 smuggling at least six kilograms of heroin into the United States during that time period.

Charged with Castillo and Nunez-Rodriguez are: Philip Osley, Yeltsin Genao, Kelvin Perez, Adrian DeJesus, Tommy Figueroa, Argenes Peralta, Carlos Ruben Cotto-Leon, Dilcy Herminia Almanzar, and Jiliana Urena, all of Philadelphia. The charges were announced today by United States Attorney Zane David Memeger and Special Agent-in-Charge John Kelleghan with U.S. Immigration and Customs Enforcement Homeland Security Investigations.

The CDSO allegedly enforced its hold on couriers and prevented theft of its product through threats and intimidation. The indictment alleges that on August 24, 2011, defendants Nunez-Rodriguez, Genao and Perez drove from Camden, NJ, to Philadelphia to locate “S.R.,”a person believed to have stolen the heroin that he was tasked with smuggling. The defendants drove S.R. to a house on 19th Street in Philadelphia where Castillo and DeJesus were waiting. The five conspirators interrogated S.R. by binding his hands and feet, making threats on his life, and discharging a firearm at close range. S.R. was eventually released with no serious physical injury. The indictment further alleges that on September 5,2011, defendants Nunez-Rodriguez and Figueroa went to the homes of courier “C.D.” after C.D. did not appear at the airport the previous night as expected. Figueroa pointed a gun at the person who answered the door and forced his way into the home to search for C.D. The defendants left after not finding C.D.

According to the indictment, the couriers traveled to and from the Dominican Republic on commercial flights that landed at Philadelphia International Airport, Newark Liberty International Airport in Newark, NJ, and JFK International Airport in Brooklyn, NY.

Defendant DeJesus was taken in to custody last night; the remaining defendants have been in federal custody.

If convicted of all charges, each defendant faces a mandatory minimum sentence of 10 years in prison up to life in prison, a mandatory minimum five years of supervised release up to a lifetime of supervised release, possible fines, and mandatory special assessments. Defendants convicted of firearm charges face an additional consecutive mandatory term of seven years in prison. The government is also seeking forfeiture of all assets derived from any criminal activity.

The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations with assistance from United States Customs and Border Protection, the Philadelphia Police Department, Pennsylvania State Police, and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Nancy Rue.

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

PHILADELPHIA - Lawrence Fudge, 47, of Philadelphia, was sentenced today to 144 months in prison for running a fraud and identity theft ring in Philadelphia for at least six years. Fudge pleaded guilty in December 2012 to conspiracy, six counts of bank fraud, eight counts of access device fraud and 18 counts of aggravated identity theft. Through the course of the scheme, Fudge recruited bank employees and an insurance company employee to abuse the trust placed in them by their employers and pass on to him the bank account and personal information of dozens of victims. He insulated himself from the actual fraudulent transactions by recruiting others to find sources of victim information and by finding “check runners” to conduct the fraudulent transactions at the banks, to open the fraudulent retail store credit accounts and to make the purchases at the retail stores with those fraudulently-opened accounts. With others, he traveled within and outside Pennsylvania to run his fraud and identity theft scheme. In addition, Fudge admitted that he committed additional crimes of the same nature between September 1, 2011 and November 14, 2012 while he was on pretrial release on this case.

Found in Fudge’s red Toyota truck at the time of his initial arrest, on August 30, 2011, were a number of documents and other items, including driver’s licenses and documents with personal and bank account information in the names of individuals who had not previously been identified by law enforcement as victims. The intended amount of fraud and attempted fraud that is attributed to the illegal activities of Lawrence Fudge and his ring - from conducting fraudulent transactions against victims’ bank accounts and opening retail store credit accounts in victims’ names and then making purchases with those accounts - is more than $357,030.

Examples of Fudge’s fraud include: in August 2011, accounts at Home Depot, Lowe’s and Target were opened using the identity of victim C.S. More than $8,000 in purchases were made with those fraudulent accounts and more than $1,500 was fraudulently withdrawn from her Bank of America bank account. In that same time frame, accounts at Lowe’s, Target and Sam’s Club were opened using the identity of victim M.W. with more than $15,000 in purchases made with those fraudulent accounts, and additional accounts at Best Buy and Staples attempted to be opened. Also in that same time frame, accounts at Home Depot, Lowe’s, Best Buy and Target were opened using the identity of victim P.V. with more than
$10,000 in purchases made with those fraudulent accounts.

Several of the victims have detailed the emotional distress and negative impact these crimes had on their lives. They describe their fear, their feelings of violation, and the lack of safety they now feel and, indeed, may always feel. One victim, who is a widow, described how the theft of the identity of her deceased husband left her “shaken to the core,” with the realization that her husband’s insurance policy, meant to protect his family, was the means of the theft of his identity and her security.

In addition to the prison term, U.S. District Court Judge Lawrence F. Stengel ordered restitution of $311,878, a special assessment of $3,300, and 10 years of supervised release.

The case was investigated by United States Postal Inspection Service and Federal Bureau of Investigation, with the assistance of multiple local police departments. It was prosecuted by Assistant United States Attorney K.T. Newton.

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 Internal Revenue Service employee Patricia Fountain, 35, Larry Ishmael, 40, and Calvin Johnson, Jr., 35, all of Philadelphia, PA, were found guilty yesterday of committing a series of tax refund schemes that defrauded the U.S. Government. A federal jury found each of the three defendants guilty of multiple counts of both conspiracy and filing false claims/tax returns to the IRS. For abusing her public office, Fountain was also found guilty of extortion. Johnson, Jr. was also found guilty of filing false claims while he was on pretrial release. Collectively, the defendants’ schemes cost the IRS well over $1 million.

Each of the defendants solicited claimants whose personal information the defendants used to file false tax returns claiming the Telephone Excise Tax Refund (TETR) in 2007 and the First Time Homebuyer Credit in 2009. Fountain also claimed the TETR by filing false tax returns for herself and for Ishmael, and used one of the claimant’s information to file a false tax return in 2008. Johnson, Jr. also used claimants’ information to file false tax returns in 2012, while he was being supervised on pretrial release in this case.

For each of the schemes, which Fountain engineered using inside information from the IRS, the defendants charged claimants a cash fee. With respect to her TETR scheme, Fountain warned that she would “red flag” those claimants who did not pay her a $400 fee. She then filed amended returns for those whom she believed had not paid the fee, causing the IRS to demand payment from certain claimants who had previously received TETRs. Fountain and Ishmael pooled their cash fees for their mutual use, including an $11,299 down payment on a Mercedes Benz R350, which Fountain structured by paying $9,900 in cash and charging the rest to a credit card.

Sentencing hearings for the defendants are scheduled for Fountain and Ishmael for June 17, 2013. Johnson’s sentencing hearing is scheduled for June 18, 2013. Pending sentencing, Ishmael and Johnson are being detained in federal custody and Fountain is being supervised on home detention. Fountain faces an expected advisory sentencing guideline range of 188 to 235 months in prison; Ishmael faces an expected advisory sentencing guideline range of 78 to 97 months; Johnson, Jr., faces an expected advisory sentencing guideline range of 108 to 135 months in prison. The defendants could also be ordered to pay restitution to the IRS, and fines, in addition to the mandatory special assessments. Co-defendants Andre Bruce, Howard Chilsom, William Martin, and Calvin Johnson, Sr. previously pleaded guilty.

The case was investigated by the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. It is being prosecuted by Assistant United States Attorney Joe Khan and Department of Justice, Tax Division Trial Attorney Tiwana L. Wright.

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

PHILADELPHIA - Fortunato Perri, 76, of Philadelphia, PA, pleaded guilty today to taking part in a fraud scheme involving nine other judges at Philadelphia Traffic Court. Perri pleaded guilty to conspiracy to commit wire fraud and mail fraud, one count of mail fraud, and two counts of wire fraud. He faces a possible advisory sentencing guideline range of zero to six months in prison, before variances or departures.

Perri admitted receiving free auto repairs, free towing, free videos, and free seafood from a co-defendant in exchange for “fixing” tickets. Perri 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, Director of Records, charged elsewhere. Hird, in turn, allegedly conveyed the request to the assigned judge. Court authorized intercepted telephone conversations reveal that Perri prioritized assisting the co-defendant from whom he received free services.

Defendant Hird, it is alleged, 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 allegedly 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 driver’s 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.

Perri is the third defendant to plead guilty. Co-defendants H. Warren Hogeland, who was a Bucks County Senior Magisterial District Judge, and Kenneth Miller, who was a Delaware County Senior District Judge, admitted to participating in the practice of giving breaks on Philadelphia traffic citations to friends, family, the politically-connected, and business associates. They entered their guilty pleas on February 12, 2013 and will be sentenced on May 24, 2013.

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.

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

A one-count information was filed today against Troy Czukoski, 42, of Exton, PA, charging that on October 18, 2012, he possessed more than 150 but less than 300 images of children engaging in sexually explicit conduct, announced United States Attorney Zane David Memeger. At the time of the investigation, Czukoski was serving as Principal of the Springton Lake Middle School in the Rose Tree Media School District in Delaware County.

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

If convicted the defendant faces a maximum possible sentence of 10 years incarceration, which includes a mandatory five year term up to a lifetime of supervised release, a $250,000 fine and a $100 special assessment.

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

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

PHILADELPHIA - Rafael Henriquez Polanco, 30, and his wife, Yanira Lopez, 27, are charged by information, filed today, with a tax fraud and identity theft scheme in which they sought more than $1.7 million in fraudulent tax refunds, announced United States Attorney Zane David Memeger. Defendant Polanco is separately charged by indictment with possession with intent to distribute 500 grams or more of cocaine, and possession with intent to distribute 28 grams or more of cocaine base (“crack”). Defendant Polanco is an illegal alien from the Dominican Republic, and, prior to his arrest in 2012, he and his wife resided together in Chester Springs, Pennsylvania.

According to the Information, between January 2008 and September 2011, defendants Polanco and Lopez obtained the names, dates of birth, and social security numbers of patients of Community Hospital in Chester, Pennsylvania and Crozer-Chester Medical Center in Upland, Pennsylvania, by paying employees of the hospitals to steal confidential medical forms. Defendants Polanco and Lopez then utilized the stolen identities to file fraudulent individual income tax returns with the IRS claiming fraudulent refunds. In support of the false returns, the defendants allegedly submitted phony Forms W-2 (Wage and Tax Statement) and listed one of several return addresses in Chester, Pennsylvania, or Philadelphia, Pennsylvania, which addresses the defendants controlled. The defendants utilized some of those homes to grow marijuana. The Information further alleges that Polanco and Lopez opened several bank accounts, and paid others to open bank accounts, using false identities for the purpose of depositing the fraudulently procured tax refund checks. Lopez, a former bank teller, utilized her knowledge of bank procedures to further this aspect of the scheme. It is alleged that between February 23, 2009 and September 16, 2011, the defendants caused the United States Department of the Treasury to issue federal tax refund checks totaling $257,710.79.

It is further alleged that between October 26, 2008 and May 18, 2010, defendant Lopez devised a scheme to fraudulently obtain unemployment benefits from the Commonwealth of Pennsylvania. In furtherance of this scheme, Lopez represented to the Commonwealth that she was unemployed, when in fact she was employed full-time at Brandywine Maintenance, Inc., in Spring City, Pennsylvania, where she worked under the alias “Leslie Serrano.”

The defendants are each charged with conspiracy to defraud the government, aggravated identity theft, passport fraud, and presentation of an immigration application containing a false statement. Lopez is additionally charged with wire fraud.

If convicted, defendant Polanco faces 32 years’ imprisonment, including a mandatory two year term of imprisonment, three years supervised release, a $1,000,000 fine, a $400 special assessment, and full restitution. If convicted, defendant Lopez faces 52 years’ imprisonment, including a mandatory two year term of imprisonment, three years supervised release, a $1,250,000 fine, a $500 special assessment, and full restitution. Forfeiture of all proceeds and all property involved in defendant Lopez’s wire fraud offense also may be ordered.

The case was investigated by the U.S. Department of State Diplomatic Security Service, the Department of Labor, the Internal Revenue Service – Criminal Investigations, and Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Kevin Brenner and Maureen McCartney.

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

PHILADELPHIA - One former and one active Philadelphia police officer were charged by indictment, unsealed today, with extortion in an alleged loan-sharking scheme. According to the indictment, Gary Cottrell, 46, a former 14th district police officer, made high interest loans to others, including Cheryl L. Stephens, 46, an active 18th district police officer. Cottrell, who was arrested this morning, is charged with four counts of making an extortionate extension of credit, four counts of collecting an extension of credit by extortionate means, and eight counts of obstruction; Stephens is charged with two counts of making false statements to the grand jury. The charges were announced today by United States Attorney Zane David Memeger and FBI Acting Special Agent-in-Charge John Brosnan.

The indictment alleges that during the time he worked as a police officer and for a time after he left the Philadelphia Police Department, Cottrell operated a business in which he extended credit to borrowers, typically in amounts ranging from several hundred dollars to several thousand dollars. He allegedly required each borrower to repay the amount of money he loaned to them plus interest. The interest generally was in an amount equal to $25 for every $100 borrowed and generally had to be repaid in four weeks. The interest rate on these loans was substantially greater than the legally enforceable rate of 25% per annum. The indictment further alleges that some of the individuals borrowing money from Cottrell understood that he would use force, if necessary, to collect the money he loaned them plus the interest, and Cottrell did use force and the threat of force to collect money from borrowers. At times Cottrell allegedly sent threats of force to the borrowers via text messages.

It is further alleged Stephens falsely testified that Cottrell did not charge interest on her loan from him, and did not tell her to deny paying interest when talking to law enforcement officers.

If convicted, Cottrell faces a maximum statutory sentence of 320 years in prison, three years of supervised release, a $4 million fine, and a $1,600 special assessment. Stephens faces a maximum statutory sentence of 10 years in prison, three years of supervised release, a $500,000 fine, and a $200 special assessment.

The case was investigated by the Federal Bureau of Investigation/Philadelphia Police Department Public Corruption Task Force and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Anthony J. Wzorek and Special Assistant United States Attorney Vicki J. Markovitz.

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

PHILADELPHIA - Istvan Merchenthaler, 42, of Coatesville, PA, was charged today in a superseding indictment with seven additional counts stemming from an alleged investment fraud scheme. Merchenthaler is now charged with a total of four counts of wire fraud, two counts of aggravated identity theft, four counts of money laundering, two counts of filing false tax returns, and two counts of interstate transportation of stolen property, announced United States Attorney Zane David Memeger.

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. 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.

Merchenthaler, who used a number of aliases, approached investors and persuaded them to make investments in PhoneCard USA. In his marketing materials, Merchenthaler claimed that these investments would finance the “exponential growth” of PhoneCard USA and would provide investors with “generous returns” on their investments.

In addition, Merchenthaler falsely claimed that PhoneCard USA had “lucrative contracts” with major retail chain stores “covering territories that span the east coast.” In these materials, and in his communications to investors, Merchenthaler falsely claimed PhoneCard USA had contracts with these major retail chain stores, including Walmart, 7-Eleven, and BJ’s Wholesale Club. In reality, Merchenthaler had no such contracts with these major retail chain stores. Further, Merchenthaler falsely claimed to have friendships with executives at Walmart and 7-Eleven.

According to the superseding indictment, Merchenthaler stole two cars from dealerships while on pretrial release. Merchenthaler is now in federal custody.

If convicted, the defendant faces a maximum possible sentence of 170 years of imprisonment, a $3.5 million fine, 3 years of supervised release, and an $1,400 special assessment. Merchenthaler also faces a mandatory minimum of two years imprisonment.

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

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

Lawrence Nicoletti, 60, of Phoenixville, Pennsylvania, was charged today by information with one count of theft of government funds, in connection with his alleged scheme to collect retirement benefits intended for his father-in-law, after his father-in-law’s death, announced United States Attorney Zane David Memeger. According to the Information, the defendant’s father-in-law was a United States Postal Service worker who received Social Security Administration Retirement and Survivor’s Insurance benefits, as well as Office of Personnel Management Civil Service Retirement System benefits. The information alleges that Nicoletti’s father-in-law died in December 2005 but the defendant took the retirement benefits intended for his father-in-law until the fraud was discovered in the summer of 2012. This resulted in a loss to the government of approximately $188,564.70.

If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment; 3 years of supervised release; a $250,000 fine; restitution of $188,564.70; and a $100 special assessment.

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

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