Eastern District of Pennsylvania

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

Sophia Beltz, 54, of Philadelphia, PA was charged today by information with one count of theft of government funds, in connection with her alleged scheme to collect Social Security Administration Retirement Insurance Benefits intended for her father, after her father’s death, announced United States Attorney Zane David Memeger. According to the information, the defendant received the retirement benefits intended for her father, who died in February 1997, until her fraud was discovered in August 2012. The information alleges that her conduct resulted in a loss to the government of approximately $172,133.

If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment; 3 years of supervised release; a $250,000 fine; restitution of $172,133; and a $100 special assessment.

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

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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

Malik Burton, 21, Kyle Gumbs, 20, and Rayvaughan White, 21, all of Freeport, NY, were charged today by indictment with a counterfeiting scheme in which they allegedly passed counterfeit $100 bills at shopping centers and other retail establishments in Bucks County, announced United States Attorney Zane David Memeger. They are each charged with one count of conspiracy and one count of possessing and passing counterfeit currency. According to the indictment, on November 15, 2012, the defendants passed and attempted to pass approximately $5,700 in counterfeit currency at the Neshaminy Mall in Bensalem, among other locations.

If convicted, each defendant faces a maximum possible sentence of 25 years imprisonment, a fine of $500,000, a three-year term of supervised release, and a $200 mandatory special assessment.

The case was investigated by United States Secret Service and the East Lampeter Township Police Department and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.

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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 - William Andrews, 52, of Philadelphia, was sentenced today to 145 months in prison for a drug distribution conspiracy involving approximately 7,000 pills of a mixture and substance containing a detectable amount of oxycodone. Andrews obtained oxycodone pills from various sources, including a licensed physician who issued prescriptions authorizing Andrews to obtain oxycodone pills from licensed pharmacies. Andrews then supplied oxycodone pills to his alleged co-conspirator, Joseph Fareri, for the purpose of selling the pills to customers, typically charging $20 for a 30 milligram pill. Andrews also sold oxycodone pills to customers.

In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered six years of supervised release. Andrews pleaded guilty on April 11, 2013 to the conspiracy, to a charge of distribution, and a charge of distribution within 1,000 feet of a protected area. His co-defendant, Joseph Fareri, was sentenced on February 4, 2013 to 86 months in prison; co-defendant John Marshall is awaiting trial.

The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Attorney General’s Office. It is being prosecuted by Assistant United States Attorneys David Troyer and Frank Labor and Special Assistant United States Attorneys Erik Olson and Heather Castellino of the Pennsylvania State Attorney General’s Office.

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

PHILADELPHIA - Michael Wilkerson, 47, of Pottstown, PA, and Denise Haines, 43, of Birdsboro, PA, were convicted today of engaging in a scheme to defraud JP Morgan Chase’s predecessor, Chase Manhattan Bank, by fraudulently obtaining home loans valued at more than $6 million for properties located in Schwenksville and Glenmoore, Montgomery County, PA.

Michael Wilkerson, pastor of New Millennium Life Restoration Fellowship, with locations in Phoenixville and Spring City, recruited several of his congregants, and the congregants’ families and friends, to participate in a number of real estate transactions. If they had good credit and acted as “straw purchasers” - meaning they would sign loan documents as the purchaser of a house and attend the property settlement - Michael Wilkerson would pay them $15,000. Wilkerson paid the recruits another $5,000 if they referred other straw purchasers to him. Wilkerson recruited at least six individuals who agreed to be straw purchasers of homes. Denise Haines, a mortgage broker with American Group Mortgage Corporation, submitted fraudulent loan applications in the transactions to Chase Manhattan Bank. These fraudulent loan applications falsely represented the appraised value of the homes, the identification of the “straws,” the source of funds, the borrower’s income and assets, and their intent to take possession of the homes as their primary residence. Based on the representations made in the loan documents, Haines knew she could get Chase Manhattan Bank to approve the loans with little verification of the information on the loan applications.

Wilkerson’s wife Joyce, who pleaded guilty, assisted in the scheme by writing out the checks to the “straws,” and also pretended to be a co-purchaser of each of the homes at the time of settlement. Lee Garell, a real estate broker who pleaded guilty, prepared the sales paperwork for each of the homes that was sold to the “straws” and, along with Michael Wilkerson, dictated the fraudulent terms set out in the settlement sheets.

When the loans were funded at the time of settlement, the defendants manipulated the documents prepared at settlement and, later, forwarded the settlement documents to Chase Manhattan Bank to make it appear to the bank that the “straws” brought considerable cash to the closings. In fact, all of the money involved at the settlement actually came from Chase Manhattan Bank. The defendants shared in the profits from the fraudulent sales.

After settlement on the homes, Michael Wilkerson took possession of all of the homes, rented at least two of them and lived in another. He paid the mortgages with the proceeds from the fraudulent mortgage transactions and with rental income for approximately six months, then told the “straw” purchasers that they had to pay the mortgages. This last act led to the loans falling into default and then foreclosure, resulting in a loss of approximately $3 million.

U.S. District Court Judge Mitchell S. Goldberg scheduled a sentencing hearing for June 3, 2013 for Michael Wilkerson and for June 17, 2013 for Denise Haines. Each face a maximum possible sentence of 180 years in prison, five years supervised release, a fine of up to $6 million, and a $600 special assessment. Sentencing hearings are scheduled for Garrell and Joyce Wilkerson on April 30, 2013 and May 6, 2013, respectively.

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

President Obama established the Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

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

PHILADELPHIA – Louis Fazzini, 46, of Caldwell, N.J., was sentenced today to
55 months in prison for his participation in a racketeering conspiracy involving illegal gambling and theft from an employee benefit plan. U.S. District Court Judge Eduardo C. Robreno also ordered Fazzini to serve three years of supervised release following his prison term.
On Oct. 5, 2012, Fazzini pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. At the time of the plea colloquy, he admitted that, as a “made” member of the North Jersey crew of the Philadelphia LCN Family, he operated a sports bookmaking business and devised a fraudulent scheme to obtain health benefits through a “no show” job controlled by the LCN in furtherance of the racketeering conspiracy. As a “no show” employee, he would perform no work or productive services, while still receiving health benefits.

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

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

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

PHILADELPHIA - Darlene Johnson, 49, Sheryl McPhail, 49, and Tracey Hill, 49, all of Philadelphia, were charged today in a four count information alleging that they engaged in a scheme to defraud the Internal Revenue Service with false claims of First Time Home Buyer Credits (FTHBCs), announced United States Attorney Zane David Memeger. The defendants are each charged with one count of conspiracy to submit false claims to a government agency and submitting a false claim to a government agency.

According to the information, Johnson prepared tax returns for individuals whose names and identifying information she received from McPhail and Hill. In those returns, Johnson submitted false claims to the government, on behalf of clients, totaling approximately $390,680.65 and received FTHBCs totaling approximately $367,180.65. Johnson paid McPhail and Hill out of the proceeds from the returns where the FTHBC was fraudulently received. Johnson is charged with two additional counts of submitting a false claim to a government agency.

If convicted, Johnson faces a maximum possible sentence of 25 years imprisonment, a fine of up to $1 million, three years of supervised release, and a $400 special assessment. McPhail and Hill each face a maximum possible sentence of 15 years imprisonment, a fine of up to $500,000, three years supervised release, and a $200 special assessment.

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

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

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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 - Ronnie Lee Durham, a/k/a “Ronnie Lee Johnson,” and “R.P.J.,” 50, of Alexandria, Virginia and formerly of Feasterville, PA is charged by Indictment, unsealed yesterday, with stealing and using the social security number of another person, announced United States Attorney Zane David Memeger. Durham is charged with four counts of Social Security Fraud and one count of Aggravated Identity Theft. He was arrested in Virginia.

According to the indictment, the defendant used the Social Security number and date of birth of an individual residing in another state to open bank accounts, obtain a debit card, and obtain employment. In March 2011, Durham, using the name Ronnie Lee Johnson, went to work for a company in Langhorne, PA, where he had access to client files. Between March and April of 2011, Durham allegedly accessed the identifying information of “RJP,” who resided in Mississippi, and rented an apartment in Feasterville, PA, using RJP’s date of birth and social security number. It is further alleged that Durham opened bank and credit card accounts using RJP’s information and also secured a job with a New Jersey company using that information.

If convicted, the defendant faces a maximum possible sentence of 22 years imprisonment, a three-year period of supervised release, a $1.25 million fine, and a $500 special assessment.

The case was investigated by the Social Security Administration, Office of Inspector General, the Diplomatic Security Service, and the Lower Southampton Police Department. 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

PHILADELPHIA - Adriano Sotomayor, 54, of Margate, New Jersey, pleaded guilty, late today, to 17 counts of wire fraud in connection with a scheme to defraud members of the Dominican Sisters of the Rosary of Fatima (“Sisters of Fatima”), and others, between May 2009 and February 2012. Sotomayor was captured by the FBI Fugitive Squad in Las Vegas, Nevada, on February 27, 2012. He went on the run November 16, 2011, one day after he was indicted.

The defendant launched his scheme by causing an elderly nun to believe that she had been named in a will as the beneficiary of an estate estimated at approximately $2.1 million. In order to lure the elderly nun into this scheme, the defendant caused his victim to believe that the man who notified her about the will was a Catholic priest from New Jersey, and the testator was one of his parishioners. Sotomayor fraudulently induced the elderly nun to begin sending money to him in Atlantic City, New Jersey, by telling her that she needed to pay taxes, processing fees, and various legal fees associated with the fictitious will. He went on to target other victims in Levittown and Philadelphia who initially sent money to him on the elderly nun’s behalf. Sotomayor caused at least 50 victims to send a total of at least $1.3 million from Pennsylvania and elsewhere to him in New Jersey over a two year period. The defendant received wire transfers at the Trump Plaza Hotel and Casino, the Showboat Hotel and Casino, and Bally’s Park Place, among other places.

U.S. District Court Judge Eduardo C. Robreno scheduled a sentencing hearing for June 12, 2013. Sotomayor faces a possible advisory sentencing guideline range of 70 to 188 months in prison.

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

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

PHILADELPHIA – Miqueas Santana, 43, was charged today by information with embezzlement and money laundering in a case that contributed to the closure of the Borinquen Federal Credit Union (BFCU), announced United States Attorney Zane David Memeger. According to the information, Between July 2009 and June 2011, Santana, with the permission and approval of the former manager of BFCU, withdrew money from his BFCU bank accounts without depositing sufficient money into the accounts to cover the withdrawals, resulting in deficit account balances in his five personal and business savings and checking accounts of more than $500,000.  Santana used this money to purchase multiple pieces of real estate throughout Philadelphia. 

BFCU was a federal credit union in Philadelphia.  In June 2011, the National Credit Union Association took over the operation of the BFCU, but within two weeks, closed the credit union and liquidated its assets.  Its former manager, Ignacio Morales, has previously been convicted of multiple counts relating to embezzlement from BFCU and conspiracy to defraud the government regarding the cashing of fraudulent tax refund checks.  Morales is currently serving a 7 ½ year sentence for his crimes.   

If convicted of all charges,Santanafaces a maximum sentence of 40 years imprisonment, 5 years supervised release, a $1,250,000 fine (or a $1,000,000 fine plus twice the value of the criminally derived property) and a $200 special assessment.

This case was investigated by the United States Postal Inspection Service, the Internal Revenue Service, and the Federal Bureau of Investigation.  It is being prosecuted by Assistant United States Attorney Arlene D. Fisk.

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

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

Eric Young, 39, and Calvin Johnson, 41, both of Philadelphia, Pennsylvania, were charged today by Indictment with one count of conspiracy to commit bank fraud and one count of bank fraud, announced United States Attorney Zane David Memeger.

According to the indictment, Young and Johnson ran a scheme in which they hired individuals to open bank accounts, made phony deposits, and made withdraws from the accounts knowing there were insufficient funds. The indictment alleges that the defendants defrauded the banks of more than $100,000 between December 2011 and August 2012.

If convicted on all counts, Young and Johnson each face a maximum possible sentence of 35 years imprisonment, a five-year period of supervised release, a fine of up to $1.25 million, a $200 special assessment, and full restitution.

The case was investigated by the Bensalem Police Department and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Patrick J. Murray.

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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 - Justin Williams, a/k/a “New York Ice”, a/k/a “Pimp Juice”, 38, of NY, NY, is charged by indictment, unsealed today, with the sex trafficking of minors, announced United States Attorney Zane David Memeger. According to the indictment, between November 2011 and January 2012, Williams recruited young females to work as prostitutes in his business, created Internet advertisements in which he advertised various females as available for purchase for purposes of prostitution, and engaged in acts of physical violence to force the victims to remain in his business. The advertisements that Williams created featured pictures of the victims, either scantily clad, or topless with their hands covering their breasts, the price, and a phone number to call to arrange a meeting with a female. Williams allegedly forced the victims to engage in sex acts with clients.

If convicted, the defendant faces a 15-year mandatory minimum and maximum life sentence in prison, supervised release and a fine of up to $500,000.

The case was investigated by the FBI and is being prosecuted by Michelle Morgan.

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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 - Shawn Sisco, 48, of Philadelphia, PA, was charged today by Indictment with preparing false income tax returns for her clients, announced United States Attorney Zane David Memeger. According to the indictment, Sisco, who owned Sisco Accounting, a home-based tax preparation business, falsified the itemized deductions on her clients’ returns in order to obtain refunds in amounts larger than the filers would have otherwise received if Sisco had truthfully prepared the tax returns. According to the indictment, the bogus expense deductions included: medical and dental expenses; charitable contributions; mortgage interest; cell phone expenses; property tax expenses; clothing and shoe expenses; laundry expenses; and maintenance expense.

If convicted the defendant faces a maximum possible sentence of 93 years of imprisonment, a fine of $7.750 million, a special assessment of $3,100 and 1 year of supervised after she is released from prison.

The case was investigated by Internal Revenue Service Criminal Investigation and 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

Eric Ponder, 43, of Yeadon, Pennsylvania, 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. Ponder is charged with conspiracy to commit loan and wire fraud, loan fraud, and wire fraud. He allegedly received approximately $1 million through his participation in this mortgage fraud scheme.

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. Ponder, who held himself out as a real estate developer, is alleged to have helped cause the submission of numerous fraudulent loan applications that resulted in mortgages being unwittingly issued by various banks by, among other things, knowingly 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. 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. 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.

The information alleges that a Philadelphia-based property settlement company, “KREW Settlement Services,” was at the center of the conspiracy. Most of the mortgages were unpaid and most of the properties fell into foreclosure.
If convicted, Ponder the defendant faces a maximum possible sentence 55 years in prison, five years of supervised release, a fine of $1.5 million or twice the gross gain resulting from the offense, 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 - Kevin Michael McGinty, 25, of Philadelphia, was sentenced yesterday to the statutory maximum sentence of 60 months in prison for the illegal straw purchase of firearms. McGinty made a false statement when he certified that he was the actual buyer of five firearms from Delia’s Gun Shop, 6104 Torresdale Avenue, Philadelphia, Pennsylvania. The purchases were made on February 10, 2012.

In addition to the prison term, U.S. District Court Judge Berle M Schiller ordered a $1,000 fine and three years of supervised release.

This 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 Jennifer Chun Barry.

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

PHILADELPHIA - Former Philadelphia city employee John D. McDaniel, 39, of Philadelphia, pleaded guilty today to one count of wire fraud for allegedly stealing $100,000 from a campaign/political committee. A sentencing hearing is scheduled for May 14, 2013. McDaniel, the former Treasurer of the campaign/political committee for a Philadelphia City Councilperson, was recently fired from his city-paid airport job after the city Board of Ethics identified numerous reporting irregularities by McDaniel in the campaign’s required city filings.

Between 2010 and 2011, McDaniel used several methods to routinely and, at times, without authorization, withdraw funds from the committee account, which funds he then used for his own purposes and other purposes. At times, McDaniel wrote and cashed checks to himself, and wrote checks to Progressive Agenda, a political action committee which he controlled, from which he then took stolen funds. McDaniel concealed the theft by filing false and incomplete campaign finance reports.

McDaniel faces a statutory maximum sentence of 30 years imprisonment, 5 years supervised release, a $250,000 fine, and a $100 special assessment.

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

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 - Dennis Nicholas, 62, Bernadette Nicholas, 64, both of Newtown Square, PA, and Kevin McAllister, 59, of Drexel Hill, PA, were sentenced today for engaging in schemes to defraud Wilmington Trust Federal Savings Bank and Malvern Federal Savings Bank that involved properties valued at more than $35.5 million. Dennis Nicholas was sentenced to 72 months in prison; Bernadette Nicholas was sentenced to 42 months in prison; McAllister was sentenced to 20 months in prison

In addition to the prison terms, U.S. District Court Judge Legrome D. Davis ordered Bernadette Nicholas and Kevin McAllister to jointly pay restitution to Wilmington Trust in the amount of $2.5 million; ordered Bernadette Nicholas to pay restitution to Malvern Federal Savings in the amount of $2.5 million; and ordered Dennis Nicholas to pay restitution to Malvern Federal Savings in the amount of $2,755,909.27.

Bernadette Nicholas was a mortgage broker who intentionally misrepresented material facts to Wilmington Trust about borrowers’ income and assets, the potential rental income and accurate appraisals of properties. She falsified borrowers’ tax returns and documents relating to the true source and amount of the down payments being made by borrowers, and forged borrowers’ signatures on loan documents.

Kevin McAllister was a loan officer with Wilmington Trust working in conjunction with Nicholas to approve mortgage loans for borrowers who did not meet Wilmington Trust’s criteria for income, assets, and credit scores, in return for bribes and kickbacks from Nicholas. As a result, Nicholas and McAllister caused the approval of loans totaling more than $30 million.

Bernadette Nicholas received a mortgage broker’s commission equivalent to approximately two to three percent of the total amount of a funded loan at the time of loan settlement. During the years 2004, 2005, and 2006, Bernadette Nicholas received approximately $1.2 million as the result of the loans funded by Wilmington Trust. She deposited the money into accounts maintained by Dennis Nicholas who then paid Kevin McAllister equivalent to approximately one percent of the amount of the funded loan, which was a kickback/bribe for getting the questionable loan approved and funded. McAllister made $379,075 in kickbacks. None of the defendants reported the income on their taxes.

Dennis Nicholas was convicted at trial on July 19, 2012 of bank fraud, bank bribery, loan application fraud, and filing false and fraudulent income tax returns. Bernadette Nicholas pleaded guilty to those same charges on October 31, 2011. McAllister pleaded guilty on October 31, 2011 to bank fraud, bank bribery, loan application fraud, and tax evasion.

Another defendant, Wayne Rosen, who was charged in a scheme with Bernadette Nicholas to defraud Malvern Federal, will be sentenced February 25, 2013. Nicholas brokered the sale of an apartment building between Rosen and mortgage clients and sought a $1.6 million loan from Malvern Federal for her clients. Nicholas altered the borrowers’ income tax returns prior to submitting them to Malvern Federal and falsely represented the borrowers’ income, the amount of the borrowers’ down payment, and the details of a subordination agreement between Rosen and the borrowers on the borrowers’ loan application and supporting documents. At settlement on the apartment building, Dennis Nicholas, Bernadette Nicholas and Rosen falsely represented to Malvern Federal that the borrower had made a down payment. Bernadette Nicholas and Rosen applied for a $3.5 million loan to refinance an existing loan that they had on a medical building. In order to influence Malvern Federal’s actions, Bernadette Nicholas, Dennis Nicholas and Rosen prepared and caused to be prepared fraudulent leases which misrepresented the potential rental flow income of their medical building and caused these leases to be submitted to Malvern Federal.

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

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

Deiby Ovalle-Pinto, 29, of Guatemala, was charged today by Indictment with illegal re-entry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about February 6, 2013, Ovalle-Pinto, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about June 19, 2003.

If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, not more than three years supervised release, a $250,000 fine and a $100 special assessment.

The case was investigated by the Enforcement and Removal Operations of Immigration and Customs Enforcement of the United States Department of Homeland Security and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.

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 - Marquan Greggs, 22, of Philadelphia, was sentenced yesterday to 78 months for a charge of possession of a firearm by a convicted felon.  Greggs was arrested after a police chase on March 1, 2011, during which he threw a stolen firearm with 10 rounds of ammunition into the street in the 800 block of E. Hilton Street, Philadelphia.  Greggs was on parole at the time for two drug trafficking convictions.  Greggs pleaded guilty to the charge on April 24, 2012.

In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered a $1,000 fine, three years of supervised release, and a $100 special assessment.

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

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

PHILADELPHIA - H. Warren Hogeland, 75, of Richboro, PA, and Kenneth Miller, 76, of Brookhaven, PA, pleaded guilty today to taking part in a fraud scheme involving seven other judges at Philadelphia Traffic Court. Hogeland was a Bucks County Senior Magisterial District Judge; Miller was a Delaware County Senior District Judge. Both accepted assignments with Traffic Court when their services were requested. The two defendants admitted to participating in the practice of giving breaks on traffic citations to friends, family, the politically-connected, and business associates. Specifically, Hogeland presided over a ticket issued to Miller’s son and declared Miller’s son “not guilty” without him having to make an appearance. Additionally, Miller arranged for a ticket, received by “J.B.,” to be declared “not guilty.” Both defendants pleaded guilty to mail fraud; Hogeland also pleaded guilty to conspiracy.
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.

U.S. District Court Judge Robert F. Kelly scheduled sentencing hearings for both Hogeland and Miller on May 24, 2013. Each defendant faces a possible advisory sentencing guideline range of zero to six months in prison, before variances or departures.

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

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

Dung Ngoc Nguyen, 53, of Mississauga, Ontario, Canada, pleaded guilty today to drug trafficking and money laundering charges before the Honorable Lawrence F. Stengel. Sentencing is scheduled for May 8, 2013.

During the summer of 2006, special agents with the Department of Homeland Security were investigating two Philadelphia-based drug traffickers, John Q. Le and his then-girlfriend, Hanh Duong. Le was one of the largest drug dealers on the east coast with a network of customers stretching from New Jersey to Florida. Le imported large quantities of marijuana from various drug trafficking organizations in Canada. Nguyen worked for one of these Canadian organizations as a broker. Nguyen took drug purchase orders from Le and Duong, made arrangements for the marijuana to be smuggled into the United States, and made arrangements for the drug proceeds to be smuggled back to Canada. During the duration of the conspiracy, Nguyen admitted that she arranged to smuggle between 700 and 1,000 kilograms of marijuana into the United States. The drugs were usually delivered, via courier, directly to Le's house in West Chester, PA.

The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations and was prosecuted by Assistant United States Attorneys David E. Fritchey and 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 - Masai Skief, 32, of Philadelphia, PA, was sentenced today to 36 months in prison for abusing his leadership positions at a Philadelphia charter school in order to enrich himself. Skief pleaded guilty to two counts of wire fraud in August 2013. He was the chief executive officer of Harambee Institute of Science and Technology Charter School (“Harambee Charter School”) and the president and chief administrative officer of a related non-profit organization, Harambee Institute, Inc. (“Harambee Institute”). In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered Skief to pay restitution in the amount of $88,000, a $200 special assessment, and ordered three years of supervised release, during which time Skief is not permitted to work in an administrative capacity at any school or in any capacity at Harambee Institute and Charter School.

Harambee Charter School, a non-profit corporation, was established to educate children from kindergarten to eighth grade. Harambee Institute was a separate non-profit established to provide students with educational services and vocational training. For its students, Harambee Charter School created a scholarship fund intended to benefit those who intended to attend a “historically black institution of higher education in the United States.”

Skief engaged in a scheme to improperly obtain the funds of both the scholarship fund and Harambee Institute. First, Skief improperly withdrew $9,000 from the scholarship fund in order to purchase a house for himself in Philadelphia. Then, through his control of the bank accounts of Harambee Institute, Skief converted for his own personal use approximately $79,000 from Harambee Institute. He did this primarily through a series of improper cash withdrawals from the bank accounts of Harambee Institute. 

Skief also made substantial efforts to conceal his illegal activities, both during and after the fraud. In particular, he attempted to disguise a significant portion of his improper cash withdrawals from the accounts of Harambee Institute as labor costs for Harambee Institute, when there were no such labor costs associated with the improper withdrawals. Skief directed an accountant to create IRS forms to reflect this false information. Skief also directed others to lie for him to federal agents and to a federal grand jury about the use of the funds that the defendant had unlawfully converted.  Finally, even after agreeing to plead guilty, Skief continued to steal from Harambee Institute, taking over $12,000 in additional funds, some of which he stole while awaiting sentencing.

“This is an example of our commitment to investigating allegations of significant fraud and abuse involving education funds – taxpayer dollars that are intended for the educational development of children,” said Steven Anderson, Special Agent in Charge of the U.S. Department of Education Office of Inspector General.  “Mr. Skief knowingly and willfully abused his position of trust for personal gain and did so at the expense of the children he promised to serve. Deservedly, he will now be held accountable for cheating these  children, their families, and taxpayers.”

The case was investigated by the Federal Bureau of Investigation and the United States Department of Education Office of Inspector General. It was prosecuted by First Assistant United States Attorney Louis D. Lappen and Assistant United States Attorney Joseph J. Khan.

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

PHILADELPHIA - Anthony Oluwole Ojo, 44, of Ontario, Canada, was sentenced yesterday to 45 months in prison for running a scam in which he pretended to be a relative of his victims and in need of help. Ojo, and/or others working with him, would telephone his victims, most of whom were elderly, from Canada, and would claim to be the victim's grandson. The victims were told their grandson had been arrested and needed money to pay legal expenses. Ojo, and/or those working in concert with him, would instruct the victim to wire funds, using Western Union, MoneyGram or a similar service, to a fictitious name provided by Ojo. The victim would do so at which point Ojo, using a false means of identification in the fictitious name provided to the victim, would receive the wired funds. If the victim complied, Ojo would then contact the victim again to obtain more money. In one instance, an elderly victim was tricked into wiring money on numerous occasions resulting in a loss to her of $106,400. As a result of the scheme, Ojo defrauded more than 120 victims of at least $643,503.97, in total. Ojo pleaded guilty to three counts of wire fraud on May 14, 2012.

In addition to the prison term, U.S. District Court Judge Joel H. Slomsky ordered Ojo to pay restitution of $643,503.97. Ojo also faces possible deportation.

The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Linwood C. 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 - John Angell, 41, of Smyrna, DE, was sentenced today to 35 years in prison for his conviction on 11 counts of traveling to have sex with a minor and 1 counts of aggravated sexual abuse of a child under the age of 12. Between June 2001 and June 2007, Angell, while working as a driver for the father of Minor 1, would drive the victim between the father’s house in the Eastern District of Pennsylvania and the mother’s house in the state of New York. On several occasions during that time period, Angell sexually assaulted Minor 1 while stopped at various rest areas.

In addition to the prison term, U.S. District Court Judge William H. Yohn, Jr. ordered 15 of supervised release, and ordered Angell to pay a $2,200 special assessment and a $1,000 fine.

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

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

PHILADELPHIA - An indictment was filed and an information unsealed today charging two business associates in the hedge fund management industry with defrauding institutional investors and causing collective losses of more than $311 million, announced United States Attorney Zane David Memeger. Helmut Kiener, 53, of Aschaffenburg, Germany, is charged by indictment with four counts of wire fraud, two counts of bank fraud, and three counts of money laundering, based on allegations that he devised and directed various investment fraud schemes in concert with his partner John C. Tausche. Tausche, 61, of Blowing Rock, North Carolina, is charged by information with one count of bank fraud and one count of money laundering, based on his alleged involvement in the scheme.

Kiener, a German national, controlled several hedge funds - including K1 Global Limited and K1 Invest - which he marketed to international investors. Tausche, a U.S. citizen, controlled several offshore hedge funds collectively called the Oceanus Funds. According to the charges, between March 2005 and December 2008, Kiener allegedly devised a scheme to defraud Bear Stearns entities by representing to Bear Stearns that, under Kiener’s management, Bear Stearns investment funds would be diversified and independently managed. However, the indictment alleges that Kiener actually funneled Bear Stearns money from K1 through the Oceanus Funds and back to K1, so as to give the false impression that the funds were growing in size and were viable investments. Kiener and Tausche, it is alleged, knowingly and intentionally fostered the false appearance that the K1 Funds were increasing in value, in order to induce Bear Stearns to continue to invest in the K1 Funds. Both defendants allegedly provided false and misleading information to Bear Stearns in response to inquiries regarding the K1 and Oceanus Funds, repeatedly and falsely representing that the funds were diversified and independently managed. The indictment alleges that, as a result of the scheme, Kiener earned sales agent fees all while Bear Stearns invested and lost approximately $82 million.

The information filed against Tausche alleges a similar scheme against Barclays Bank, involving the K1 Funds and the Oceanus Funds. The information alleges that this scheme caused losses to Barclays Bank of $137 million.

It is further alleged that starting in 2007, Barclays Bank, Bear Stearns, and BNP Paribas (“BNPP”) invested with Kiener in two offshore funds named Consistent Return Ltd. and Mezzanine Financing Ltd. Kiener represented that both Consistent Return Ltd. and Mezzanine Financing Ltd. were legitimate investment funds, and the indictment alleges that the three institutional investors together invested more than $100 million in these funds. However, the indictment alleges that Kiener actually directed a third party to create these offshore funds, and that Kiener then used the funds for his own purposes including, but not limited to, the purchase of: oceanfront real estate in Delray Beach, Florida valued at over $21 million; a Bombardier executive jet; a Bell helicopter; luxury cars such as a Bentley, a Mercedes and a Maybach; two luxury watercraft; and over $8 million in upgrades to his real estate.

If convicted of all charges, Kiener faces a maximum possible statutory sentence of 200 years in prison, restitution, and a maximum possible fine of $7.936 million; Tausche faces a maximum possible statutory sentence of 40 years in prison, restitution, and a maximum possible fine of $1.974 million.

The case was investigated by the Foreign Corruption Investigation Group, Homeland Security Investigations - Miami Field Office, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the German police force Kriminalpolizeiinspektion Unterfranken, with assistance from Barclays Bank, BNP Paribas, and Bear Stearns/J.P. Morgan Chase Bank. The Office of International Affairs in the Justice Department’s Criminal Division also provided valuable assistance in this matter. It is being prosecuted by Assistant United States Attorneys Jennifer Arbittier Williams and Suzanne Ercole.

View: Indictment | Information

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

Marcus Akiem Ricketts, 35, of Boyertown, Pennsylvania was charged today by indictment with armed bank robbery and using and carrying a firearm during a crime of violence, announced United States Attorney Zane David Memeger. These charges stem from the July 2, 2012, armed robbery of the Manufacturers and Traders Trust Company (“M&T Bank”), formerly located at 760 North Pottstown Pike, in Exton, Pennsylvania of approximately $27,906.

If convicted, Ricketts faces a 7-year mandatory minimum term of imprisonment, five years of supervised release, a $500,000 fine, and a $200 special assessment.

This case was investigated by the Federal Bureau of Investigations, the Uwchlan Township Police Department, the Upper Uwchlan Township Police Department, the West Whiteland Township Police Department, the Chester County Sheriff’s Department, the Chester County Detectives, and the Chester County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.

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

Abdullah Sirleaf, 19, of Philadelphia, PA, was charged today by indictment with robbery and gun charges for holdups at six different business, in Philadelphia and Lansdowne, PA, in June and July of 2013, announced United States Attorney Zane David Memeger.   Sirleaf is charged with the armed robberies of: Metro Self Storage, 2240 Island Ave., Philadelphia, on June 15, 2013; Gulla’s Auto Tag & Insurance, at 6301 Buist Avenue, Philadelphia, on June 17, 2013; the Sunoco gas station/convenience store, 2500 Island Avenue, Philadelphia, on June 21, 2013; Kerrs Building Materials, Inc., 1528 Washington Avenue, Philadelphia, on June 22, 2013; the 7-Eleven store, 1337 S. 58th Street, Philadelphia, on June 28, 2013; and the Papa John’s Pizza, 7 N. Lansdowne Avenue, Lansdowne, PA, on July 3, 2013. 

If convicted of all charges,thedefendant faces a mandatory minimum term of 107 years in prison with a maximum of life. He would also face up to five years of supervised release, a possible fine,   a $1,100 special assessment, and restitution.

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

Click here to view the indictment

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

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

PHILADELPHIA - Dion Reid, 35, of Philadelphia, PA, was charged today by indictment with two counts of honest services fraud and two counts of possession with intent to distribute a controlled substance, announced United States Attorney Zane David Memeger. The indictment alleges that Reid, a former corrections officers employed by the Philadelphia Prison System, conspired and agreed with a prisoner inside the prison to smuggle in marijuana, Xanax pills, tobacco, and cellular telephones.

If convicted the defendant faces a maximum possible sentence of 50 years imprisonment, three years supervised release, a $1 million fine, and a $400 special assessment.

The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the City Office of Inspector General. It is being prosecuted by Assistant United States Attorney David L. Axelrod.

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 - Joseph Fareri, 52, of Philadelphia, PA, was sentenced today to 86 months in prison and six years of supervised release for his role in a drug conspiracy. Fareri was charged, with co-defendants William Andrews and John Marshall, with conspiracy to distribute oxycodone and distributing oxycodone within 1,000 feet of a school. The indictment alleged that the defendants intentionally distributed approximately 7,000 pills. Fareri pleaded guilty and admitted to distributing 691 pills. Andrews pleaded guilty and will be sentenced February 28, 2013. Marshall is awaiting trial.

Andrews obtained oxycodone pills from various sources, including a licensed physician who issued prescriptions to defendant Andrews authorizing the defendant to obtain oxycodone pills from licensed pharmacies. Andrews then supplied oxycodone pills to Fareri, an admitted member of the Pagan’s Outlaw Motorcycle Club, for the purpose of selling the pills to customers, typically charging $20 for a 30 milligram pill. Andrews also sold oxycodone pills to customers. When Andrews was not available to make deliveries of oxycodone pills, defendant Marshall allegedly made the deliveries to Andrews’ customers.

The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Attorney General’s Office. It is being prosecuted by Assistant United States Attorneys David Troyer and Frank Labor and Special Assistant United States Attorneys Erik Olson and Heather Castellino of the Pennsylvania State Attorney General’s Office.

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 and three separate informations, unsealed today, charge nine elected judges along with three other individuals in a fraud conspiracy that allegedly involved frequent and pervasive “ticket-fixing” at the Philadelphia Traffic Court. The defendants participated in a widespread culture of giving breaks on traffic citations to friends, family, the politically-connected, and business associates. The defendants include: • Michael J. Sullivan (sitting Judge, Traffic Court)
• Michael Lowry (sitting Judge, Traffic Court)
• Robert Mulgrew (former Judge, Traffic Court)
• Willie Singletary (former Judge, Traffic Court)
• Thomasine Tynes (former Judge, Traffic Court)
• Mark A. Bruno (Chester County Magisterial District)
• H. Warren Hogeland (Bucks County Senior Magisterial District Judge)
• Kenneth Miller (Delaware County Senior District Judge)
• Fortunato N. Perri, Sr. (Senior Judge, Traffic Court)
• William Hird (former Director of Records, Traffic Court)
• Henry P. Alfano (local businessman)
• Robert Moy (local businessman)

The 77-count indictment was announced by United States Attorney Zane David Memeger and Acting Special Agent-in-Charge John Brosnan.

According to the indictment, Philadelphia ward leaders, local politicians and associates of the Democratic City Committee regularly contacted defendants seeking preferential treatment on specific tickets. Additionally, defendants were regularly contacted by family, friends and associates seeking a “break” on tickets. These defendants accepted these requests and either gave the preferential treatment directly or communicated the request to another judge to whom the case was assigned.

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, these 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.

The defendants allegedly used their personal assistants and courtroom staff to communicate requests to “fix tickets” to other judges. The indictment further alleges that the conspiracy also involved a cover-up which consisted of shredding paperwork, speaking in code, and trusting only certain individuals to carry out the fraud scheme.

Three judges - defendants Lowry, Mulgrew, and Tynes - are each charged with committing perjury before the federal grand jury. One judge - defendant Singletary - and defendant Hird are charged with lying to the FBI when they were approached and asked questions about ticket fixing at Traffic Court.

Defendant Henry P. Alfano regularly gave defendant Fortunato N. Perri, Sr. free auto repairs, free towing, free videos, and free seafood in exchange for “fixing” tickets. According to the indictment, Alfano would give Perri traffic citation numbers, the names of offenders, or the actual citations to arrange “fixing” the ticket. Perri conveyed the information to William Hird.
Hird, in turn, conveyed the request to the assigned judge. Court authorized intercepted telephone conversations reveal that Perri prioritized assisting Alfano and Alfano made sure to take care of Perri.. Perri told Alfano “when you call, I move, brother, believe me. I move everybody.” After multiple free repairs on his cars and family members’ cars, Perri allegedly told Alfano their relationship was “becoming like a one way street. I like a two way street.” To which Alfano responded “if I need something, you’re going to do it.”

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, not only for Perri, but also for various Philadelphia ward leaders.

Defendant Michael J. Sullivan, in addition to requests from ward leaders, also assisted friends and customers of his bar, the Fireside Tavern. According to the indictment, Sullivan directed associates who wanted their tickets “fixed” to leave them at his tavern where they were placed in a box behind the bar. Defendant Sullivan would assure his associates that the ticket would be “fixed.” In one recorded call, Sullivan told a ticket holder, “I know you’re broke” and “it don’t matter which judge would be hearing the case, because “you’re good,” meaning the “fix” was conveyed.

Defendant Willie Singletary and Thomasine Tynes allegedly “fixed” tickets on behalf of defendant Robert Moy, who owned “Number One Translations,” a business located in Philadelphia. Moy, it is alleged, would guarantee paying customers favorable results on their Traffic Court citations based on his relationship with both Singletary and Tynes. According to the indictment, Moy even advertised in a local newspaper that he “Tackles the traffic ticket, and guarantees no points or fewer points.” Ticket holders took their citations to defendant Moy, paid Moy hundreds of dollars in cash, were instructed not to appear in Traffic Court, and ultimately were found not guilty by either Tynes or Singletary.

In addition to the conspiracy charging a longstanding and widespread practice of fixing tickets, the indictment specifically lists 50 separate citations as being “fixed.” These tickets involved driving at unsafe speeds, driving an unregistered vehicle, texting while driving, operating an ATV on the highway, running a red light, making a prohibited u-turn, careless driving, not using a child safety restraint, and towing a vehicle without a towing agreement, among others. Yet, these ticket holders unjustly incurred no penalties for their vehicle code violations.

“Our judicial system requires that the finder of fact determine guilt or innocence impartially,” said Memeger. “Ignoring this basic rule of justice, the judges in this case allegedly routinely "fixed" traffic tickets by giving preferential treatment to people with whom they were politically and socially connected. In addition to depriving the City of Philadelphia and the Commonwealth of Pennsylvania of funds rightfully owed by traffic violators, their allegedly corrupt conduct also undermined the confidence that law abiding citizens have in the Philadelphia Court System. Those who seek to game the system by refusing to follow the rules need to be held accountable by the rule of law they swore to uphold.”

“The citizens of Philadelphia expect and deserve public officials who perform their duties free of deceit, favoritism, bias, self-enrichment, concealment and conflict of interest,” said Brosnan. “Everyone is entitled to the same treatment in Traffic Court, regardless of their personal relationships, regardless of political considerations, and regardless of the personal preferences of court officials.”

The moneys that would have been received from adjudicated citations would have been equally divided between the City of Philadelphia and the Commonwealth of Pennsylvania and used to fund, for example, the City of Philadelphia’s general fund; the Philadelphia Parking Authority; the First Judicial District’s procurement department; the funds lost to the Commonwealth of Pennsylvania would have paid for Emergency Medical Services training; MCARE, which helps compensate people injured by medical malpractice; and the Access to Justice Fund, which provides money for legal aid for low income people and victims of domestic violence.

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

Indictment.pdf | Hogeland Information.pdf | Perri Information.pdf | Miller Information.pdf | Charges.pdf |Defendants.pdf

UNITED STATES ATTORNEY'S OFFICE Contact: EASTERN DISTRICT, PENNSYLVANIA PATTY HARTMAN
Suite 1250, 615 Chestnut Street Media Contact
Philadelphia, PA 19106 215-861-8525
COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT http://www.usdoj.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

PHILADELPHIA - Richard Minicozzi, M.D., 79, of Philadelphia, was sentenced today to seven years in prison for conspiracy to distribute controlled substances and 17 counts of distribution of controlled substances for running a pill mill out of his office located at 731 Morris Street in Philadelphia. Minicozzi was distributing hydrocodone (“Vicodin”), and alprazolam (“Xanax”) and was selling prescriptions for oxycodone. Minicozzi ordered the drugs from a supplier and had them shipped to his office in small boxes which he then sold to cash-paying customers who had no legitimate need for the drugs and without a physical examination. Minicozzi and his office assistant, Joan Israel, who previously pleaded guilty, created phony medical records for his drug-buying customers.

In addition to the prison term, U.S. District Court Judge J. Curtis Joyner also ordered three years supervised release, a $40,000 fine, and a $1,800 special assessment.

The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement
Administration, and the Philadelphia Police Department and was prosecuted by Assistant United
States Attorney Mary Kay Costello.

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

PHILADELPHIA - Mark Olkowski, 62, of North Wildwood, NJ, a business partner in K & O Sports, was indicted today on tax charges, announced United States Attorney Zane David Memeger. K&O sports, on Moyamensing Avenue, is a South Philadelphia distributor of t-shirts and other clothing items for labor unions, municipalities, and political candidates.

According to the indictment, Olkowski under-reported, by approximately $250,000, K & O’s gross partnership receipts to the Internal Revenue Service on K & O’s partnership tax returns from 2006 through 2009. Olkowski also allegedly failed to report all of his "flow through" partnership income on his personal income tax returns during that same time period. It is further alleged that Olkowski failed to report as income the value of personal expenses he paid with corporate funds, and failed to report as income significant sums of cash received by K & O but which he retained and did not deposit to K & O business accounts.

Olkowski is charged with filing four false personal income tax returns and four false partnership tax returns for his business during 2006 through 2009. Olkowski is also charged with 15 counts of wire fraud concerning approximately $25,000 in allegedly improper unemployment compensation benefits he received while he held an ownership interest in K & O Sports and was receiving income from K & O.

If convicted, Olkowski faces a maximum possible sentence of over 100 years in prison, five years supervised release, a $5.75 million fine, and a $2,300 assessment.

The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul L. Gray and John M. Gallagher.

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 - Joseph McIntyre, 38, of Philadelphia, was sentenced today to six months incarceration for his role in a conspiracy to illegally distribute anabolic steroids. McIntyre, a former Philadelphia Police Officer, was charged in an indictment that named 14 others including fellow officers Keith Gidelson and George Sambuca. McIntyre pleaded guilty, August 24, 2011, to conspiracy, possession with intent to distribute anabolic steroids, and possession with intent to distribute anabolic steroids.

The indictment charged Gidelson with operating the anabolic steroid distribution organization in Philadelphia and throughout the United States, acquiring steroids from foreign suppliers and then selling the steroids to his co-conspirators who distributed to their own customers. McIntyre bought the steroids from Gidelson for his own use and to distribute to others. Numerous intercepted calls and text messages between the men demonstrate that McIntyre discussed with Gidelson the acquisition of steroids from Gidelson’s suppliers; the acquisition from Gidelson of specific types of anabolic steroids for McIntyre’s customers; and the use and effects of the steroids Gidelson and McIntyre were distributing. In many of these intercepted calls and text messages, McIntyre discussed acquiring steroids for people who worked at a local night club.

In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered three years of supervised release, a $300 special assessment, and ordered McIntyre to pay a fine of $10,000.

The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Philadelphia Police Department, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney David L. Axelrod.

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

Keith McCracken, 34, of Philadelphia, was charged today by Indictment with one count of bank robbery announced United States Attorney Zane David Memeger. In particular, the indictment charges the defendant with having robbed the M&T Bank, 7121 Frankford Avenue, Philadelphia, on December 31, 2012.

If convicted, McCracken faces a maximum sentence of 20 years imprisonment, a three-year term of supervised release, a $250,000 fine, and a $100 special assessment.

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

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 - Dragos Ungurean, 30, of Wyomissing, PA, was sentenced today to 63 months in prison for attempting to rob the Wyomissing branch of M & T Bank. He pleaded guilty to the charge on June 27, 2012. On March 19, 2012, Ungurean walked into the bank, at 800 Penn Avenue in Wyomissing, threatened to blow up a bomb or explosive device attached to his person, and demanded money. Ungurean was subdued and handcuffed after a scuffle with an on-duty plain clothes investigator, George R. Bell, Jr., from the Wyomissing Police Department. The officer was utilizing the bank as a customer at the time of the attempted robbery. The bomb or explosive device was fake.

In addition to the prison term, U.S. District Court Judge Lawrence F. Stengel ordered three years of supervised release and a $1,000 fine. The judge also referred to the actions of investigator Bell as “heroic” for subduing the defendant on his own.

This case was investigated by the Federal Bureau of Investigation, Allentown, PA Resident Agency, the Wyomissing, Berks County Police Department, and the Berks County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Ewald Zittlau.

UNITED STATES ATTORNEY'S OFFICE Contact: PATTY HARTMAN
EASTERN DISTRICT, PENNSYLVANIA Media Contact
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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

PHILADELPHIA - Ignacio Morales, a/k/a “Nacho,” 49, of Philadelphia, was sentenced today to 90 months in prison for conspiracy to defraud the government in a case that led to the closure of the Borinquen Federal Credit Union (BFCU).  Morales used his position as the bank’s Manager to misuse and embezzle more than $2.3 million of BFCU funds through a variety of schemes, and between 2006 and June 2011, Morales further enriched himself by cashing hundreds of fraudulent U.S. tax refund checks through BFCU, keeping 20% of each check for himself as commission.  Morales pleaded guilty September 4, 2012.

BFCU was a federal credit union in Philadelphia.  Between 2008 and 2009, Morales embezzled $600,000 from BFCU to purchase real estate, and during the period of September through December 2009, he took $560,000 from BFCU to attempt to purchase 15 kilograms of cocaine.  In September 2008, he failed to deposit $700,000 into an account of a BFCU member, and instead used the money for his own purposes.  Morales also allowed a member of the BFCU board of directors to withdraw money from a BFCU account despite the absence of funds in the account resulting in a deficit of approximately $500,000.  Morales then intentionally altered bank records and other reports provided to the National Credit Union Administration and their auditors in order to conceal his misuse of BFCU funds.  In June 2011, the National Credit Union Administration took over the operation of the BFCU but closed the credit union within a month and liquidated its assets.

In addition to the conspiracy to defraud the government with respect to claims, Morales pleaded guilty to misapplication and embezzlement, false reports on federal credit institution entries, engaging in monetary transaction in property derived from specified unlawful activity, filing false federal income tax returns, and attempted possession with intent to distribute more than five kilograms of cocaine. 

In addition to the prison term, U.S. District Court Judge R. Barclay Surrick ordered restitution to the National Credit Union Administration $2.3 million, restitution to the IRS $7,311,747.50, five years of supervised release, and a special assessment of $800.      

This case was investigated by the United States Postal Inspection Service, the Internal Revenue Service, and the Federal Bureau of Investigation.  It is being prosecuted by Assistant United States Attorney Arlene D. Fisk.

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

Raylene Wilson, 43, of Salisbury, Maryland, was charged today by Indictment with one count of identity theft and one count of using a false Social Security number, announced United States Attorney Zane David Memeger.

If convicted, Wilson faces a maximum possible sentence of 20 years in prison; a $500,000 fine; three years of supervised release; and a $200 special assessment.

The case was investigated by the United States Postal Inspection Service, the Social Security Administration’s Office of Inspector General, and Westtown-East Goshen Police Department and is being prosecuted by Assistant United States Attorney Vineet Gauri.

Click here to view the indictment

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

First Hate Crimes Case Of Its Kind In The Country Also Charges Murder

PHILADELPHIA - Linda Weston, her daughter and three co-defendants are charged in a 196-count indictment, unsealed today, with racketeering conspiracy, murder in aid of racketeering, hate crimes, sex trafficking, kidnapping, forced human labor, theft, fraud, and other violent crimes. The indictment alleges that Weston and her associates carried out a racketeering enterprise that targeted victims with mental disabilities and as part of a scheme to steal disability payments from the victims and the Social Security system. As part of the scheme, Weston persuaded each victim to make her the designated recipient of their Social Security disability payments in exchange for the promise of a comfortable place to live. Once appointed as the designated recipient of disability payments, Weston, aided by the co-defendants, subjected the victims to subhuman conditions of captivity.

According to the indictment, the defendants beat the victims, kept them captive in locked closets, basements and attics, deprived them of adequate food and medical care, and moved them between Pennsylvania, Texas, Virginia, and Florida in order to further the scheme and evade law enforcement. According to the indictment, some of the victims endured this abuse for years, until October 15, 2011, when Philadelphia Police officers rescued them from the sub-basement of an apartment building in the city’s Tacony section. The enterprise allegedly victimized six disabled adults and four children.

Today’s indictment was announced by United States Attorney Zane David Memeger, Assistant Attorney General for the Civil Rights Division Thomas E. Perez, FBI Acting Special Agent-in-Charge John Brosnan, Special Agent-in-Charge Michael McGill with the Social Security Administration’s Office of Inspector General, and Philadelphia Police Commissioner Charles Ramsey.

Along with Weston and her daughter Jean McIntosh, the indictment charges Weston’s paramour, Gregory Thomas, Sr., Eddie Wright, and Nicklaus Woodard. According to the indictment, the defendants used isolation, intimidation, threats of violence and violence to control the victims and each defendant had a role in the racketeering enterprise:

● Linda Weston was the leader and organizer of the enterprise that operated from at least as early as the Fall of 2001 through October of 2011. She enticed all of the adults into coming to live with the enterprise and controlled all aspects of their captivity.

● Jean McIntosh was also a leader of the enterprise who acted as her mother’s right hand woman. She assisted in confining, controlling, disciplining, housing, and transporting the victims.

● Gregory Thomas, Sr. assisted in obtaining, confining, controlling, housing, and transporting the victims. He installed locks on the doors and windows of every residence where the victims were kept to prevent them from escaping.

● Eddie Wright assisted in confining, controlling, housing, and transporting the victims.

● Nicklaus Woodard assisted in confining, controlling and disciplining the victims.

The conduct of each defendant is set forth in the overt act section of the indictment and generally describes criminal activity from the Fall of 2001 to October 15, 2011 when the Philadelphia Police rescued the victims from the sub-basement of the apartment building. The indictment charges that in confining the victims, the defendants practiced what is described as “abusive control and confinement techniques” in which the defendants:

a. confined the victims to locked basements, rooms, closets, attics, and apartments; b. sedated the victims by putting drugs in the food and drink served to them by Weston and others, at Weston’s direction; c. subdued the victims by serving them a low calorie, high starch diet consisting exclusively of Ramen noodles, beans and stew and generally limited them to, at most, one meal a day; d. punished the victims by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats, and hammers or other objects, including the butt of a pistol, when the victims tried to escape, stole food, or otherwise protested their confinement and treatment.

The indictment alleges that Weston’s use of these techniques caused the deaths of two of the victims. For example, in 2002, Weston met M.L. and lured her to come live with the family. M.L. was forced to cook, clean, wash clothes, and babysit without compensation. M.L. was beaten when she tried to escape or when she begged for food and was not provided with any medical attention for her injuries. When Weston moved the enterprise to Virginia in 2008, M.L. died of bacterial meningitis and starvation. Weston allegedly ordered other members of the household to move M.L.’s body to a bedroom and stage the scene before calling law enforcement and the next day the family left for Philadelphia. In addition, in April 2005, Weston and Thomas allegedly targeted victim D.S. who they saw standing on a street corner. They brought D.S. to the WF home at 2211 Glenview Avenue in Philadelphia. D.S. was kept in the basement with the other victims, fed a substandard diet, and not allowed to use the bathroom. On June 26, 2005, D.S. was found dead in the basement. Weston allegedly ordered other members of the household to move D.S.’s body to a bedroom and stage an accidental overdose before calling law enforcement.

The indictment also alleges that Weston forced two female captives to engaged in prostitution while the enterprise operated in Killeen, Texas and West Palm Beach, Florida.

The defendants are charged in four counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. The Shepard-Byrd Act criminalizes certain acts of physical violence causing bodily injury motivated by any person's actual or perceived disability, race, color, national origin, religion, sexual orientation, gender, or gender identity.

“The physically and mentally disabled are among the most vulnerable in our society. They deserve to be treated with respect and compassion, not violence,” said Memeger. “Linda Weston and others, in fact, decided to prey on these victims specifically because of their physical and mental challenges and they did so through violence, fear and intimidation for the purpose of stealing social security payments that were meant for the victims’ long-term care. “Shocking” does not begin to describe the criminal allegations in this case where the victims were tied-up and confined like zoo animals and treated like property akin to slaves. Hopefully, today’s announcement of a 196-count indictment will help begin the process of restoring the victims’ faith in humanity.”
“The allegations in this indictment describe a scheme to physically abuse and subjugate persons with disabilities for purposes of de-humanizing them, stealing their money, and unlawfully obtaining their labor,” said Assistant Attorney General Thomas E. Perez of the Department of Justice’s Civil Rights Division. “The laws against violently assaulting individuals because of their disabilities and those that prohibit human trafficking were designed to combat conduct aimed at vulnerable members of society, such as the alleged victims in this case.”

“Today’s Indictment represents just one more step towards closure and healing, not only for the victims of this heinous hate crime, but for the community as a whole,” said Special Agent-in-Charge John Brosnan. “The FBI, along with the United States Attorney’s Office, the Philadelphia Police Department and the Social Security Administration Office of Inspector General remain committed to protecting each and every citizen’s civil rights, and will aggressively investigate any violation of those rights, bringing the perpetrators to justice.”

“The Office of the Inspector General investigates many cases involving the misuse of Social Security benefits by representative payees, but thankfully, we've never seen a case involving this level of cruelty and inhumanity to our most vulnerable beneficiaries,” said Special Agent-in-Charge Michael McGill. “We're pleased to see justice served, and grateful to the U.S. Attorney and our investigative partners for their unflagging support in this investigation.”

If convicted of all charges, each of the defendants faces a statutory maximum sentence of life in prison with advisory guideline sentencing ranges that involve substantial terms of imprisonment. Weston potentially faces the death penalty and also faces mandatory restitution of approximately $212,000 and special assessments.

The case was investigated by the Federal Bureau of Investigation, the Social Security Administration Office of Inspector General, the Internal Revenue Service Criminal Investigation, the Philadelphia Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, West Palm Beach Field Office. It is being prosecuted by Assistant United States Attorneys Richard P. Barrett, Faithe Moore Taylor, and Department of Justice Civil Rights Division Trial Attorney Betsy Biffl. The case was originally charged by the Philadelphia District Attorney’s Office.

Indictment.pdf | Charges Chart.pdf | Defendant Chart.pdf

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

PHILADELPHIA – A superseding indictment was filed today against Dorothy June Brown, 75, of Haverford, Pennsylvania, charging her and with two additional counts of wire fraud and one additional count of obstruction of justice in connection with schemes to defraud three charter schools of more than $6.7 million. Charged with Brown in the 67-count superseding indictment are Joan Woods Chalker, 74, of Springfield, Pennsylvania, Michael A. Slade, Jr., 31, of Philadelphia, Pennsylvania, Courteney L. Knight, 65, of King of Prussia, Pennsylvania, and Anthony Smoot, 50, of New Castle, Delaware.
All five defendants were previously named in a 62-count indictment, filed on July 24, 2012. The original indictment alleges that Brown used her private management companies, Cynwyd Group and AcademicQuest, to defraud the Agora Cyber Charter School (“Agora”) and the Planet Abacus Charter School (“Planet Abacus”) soon after she founded the schools in 2005 and 2007, respectively. Brown is also charged with defrauding the Laboratory Charter School of Communication and Languages (“Laboratory”), a school she founded in 1997, by using Laboratory funds to pay the wages of an employee at one of Brown’s private management companies.
The new indictment includes an additional wire fraud scheme alleging that Brown and Chalker caused Laboratory to pay them approximately $214,095 in compensation that they were not entitled to receive. It further alleges that Brown and Chalker obstructed justice by fabricating Laboratory records and policies to make it falsely appear as if they were owed the payments from Laboratory due to unused vacation and sick time. The superseding indictment also includes new charges that Slade and Knight obstructed justice by fabricating board resolutions of Laboratory and another school, the Ad Prima Charter School.
Each of the wire fraud and obstruction of justice counts carry a maximum possible sentence of 20 years in prison. If convicted, the defendants face substantial terms of imprisonment and significant fines and other financial penalties.
This case was investigated by the United States Department of Education - Office of Inspector General and the Federal Bureau of Investigation. The Philadelphia Controller's Office provided assistance. It is being prosecuted by Assistant United States Attorney Anthony Kyriakakis.

Click here to view the indictment

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
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PHILADELPHIA - Brothers Jose Tirado, 38, and Victor Tirado, 36, both of Philadelphia, were charged by indictment, unsealed today, in a tax fraud conspiracy, announced United States Attorney Zane David Memeger and IRS Special Agent-in-Charge Akeia Conner. Jose Tirado, an officer in the 25th District of the Philadelphia Police Department, was arrested this morning.

According to the indictment, between January 2008 and March 2010, the two men obtained names, dates of birth, and Social Security Numbers, of individuals, including children. In some cases, the brothers allegedly recruited the individuals to provide the identifying information. With that information, Jose Tirado allegedly prepared federal individual income tax returns that falsely and fraudulently inflated earned income amounts in order to obtain tax refunds that included Earned Income Tax Credits. In some cases, he listed false dependents on the tax returns. He then allegedly filed the false income tax returns with the IRS in electronic form using the TurboTax® computer software program and directed the IRS to deposit refunds generated from the false income tax returns to one of two Bank of America Bank Accounts. Jose Tirado and other individuals, known and unknown to the grand jury, received tax refunds issued by the IRS that were generated because of the allegedly false tax returns that were submitted. In total, $507,974 in false claims were submitted.
Each of the brothers is charged with conspiracy to defraud the government with respect to claims; Jose Tirado is additionally charged with 14 counts of false claims; Victor Tirado is charged with three counts of false claims.

If convicted of all counts, Jose Tirado faces a maximum statutory sentence of 80 years in prison, mandatory restitution of $407,787.94, up to five years of supervised release, a fine of up to $3.75 million, and a $1,500 special assessment; Victor Tirado faces a maximum statutory sentence of 25 years in prison, mandatory restitution of $407,787.94, up to five years of supervised release, a fine of up to $1,000 fine, and a $400 special assessment.

The case was investigated by the Internal Revenue Service Criminal Investigations, the Federal Bureau of Investigation, and the Philadelphia Police Department of Internal Affairs. It is being prosecuted by Ashley Lunkenheimer.

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 - Timothy Gormley, 52, of North Wales, PA, was sentenced today to 42 months in prison for five counts of violating the International Emergency Economic Powers Act (IEEPA). Gormley was employed by Amplifier Research, in Souderton, Pennsylvania, a manufacturer and supplier of microwave amplifiers with both domestic and foreign customers. On November 30, 2011, the Department of Commerce (DOC), Office of Export Enforcement, received a voluntary self-disclosure from Amplifier Research. Many of their products are classified under an Export Control Classification Number and require a license for export to most destinations outside of Europe. These amplifiers are controlled for National Security reasons, and have application in military systems which include radar jamming, weapons guidance systems, and other uses. Amplifier Research became aware that Gormley had committed numerous violations of government regulations, between June 7, 2006 and June 28, 2011.

Gormley pleaded guilty on October 17, 2012, admitting that he had: altered invoices and shipping documents to conceal the correct classification of amplifiers to be exported so that they would be shipped without the required licenses; listed false license numbers on export paperwork for defense article shipments; and lied to fellow employees about the status and existence of export licenses. Gormley's actions resulted in at least 50 unlicensed exports of national security sensitive items to destinations including China, India, Hong Kong, Taiwan, Thailand, Russia, Mexico, and other countries. When Gormley admitted to the conduct, he explained it by saying he was "too busy" to obtain the licenses. Gormley claimed he was overwhelmed at work and that was his only excuse.

In handing down her sentence, U.S. District Court Judge Gene E.K. Pratter cited the risk to the community in allowing National Security goods to be exported without proper licenses and the need for deterrence. In addition to the prison term, Judge Pratter ordered three years of supervised release and fined Gormley $1,000.

The case was investigated by the Department of Commerce and was prosecuted by Assistant United States Attorney Nancy Winter.

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

PHILADELPHIA - Michael Moore, 45, of Chadds Ford, PA, pleaded guilty today to infringing copyrighted work related to broadcasts of hockey games. Moore admitted that he copied and sold, over the internet, copyrighted recordings of hockey games, parts of hockey games, and other hockey-related material between May 15, 2006 and November 10, 2006. He also admitted to copyright infringement between 2007 and 2010 as well.

Moore operated the website WWW.HDHOCKEY.TV which offered DVDs containing recordings of copyrighted television broadcasts of hockey games, and other copyrighted works, from the National Hockey League and other professional hockey leagues, for $19.99 plus shipping. Moore also operated WWW.BROADSTREETBULLY.COM. For $9.95 per month, subscribers to the website could download an unlimited number of video clips of copyrighted television broadcasts of hockey games, and other copyrighted works such as team and player profiles, from the NHL and other professional hockey leagues. Neither site had the permission of the NHL or any other professional hockey league to reproduce or distribute these recordings. Among the products he sold was an Olympic Games hockey match. When FBI agents searched Moore’s house in 2008, they seized more than 2,000 VHS tapes of copyrighted broadcasts of hockey games and hockey-related material, and commercial-grade equipment for copying the contents of VHS tapes to DVDs. Also seized was equipment to record satellite broadcasts, and equipment to copy multiple DVDs at a time.

U.S. District Court Judge Berle M. Schiller scheduled sentencing for April 15, 2013. Moore faces a maximum statutory sentence of five years in prison, a fine of up to $250,000. He has also agreed to forfeit $155,612 in proceeds as well as certain seized items.

The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Albert S. Glenn and Trial Attorney Evan Williams of the Criminal Division's Computer Crimes and Intellectual Property Section, United States Department of Justice.

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
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Adebowale Ayodeji Owoaje, 31, of Nigeria, pleaded guilty today to 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.

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.
U.S. District Court Judge Mary A. McLaughlin scheduled a sentencing hearing for April 15, 2013. Owoaje faces a maximum possible sentence of 80 years in prison, a three year period of supervised release, a fine of up to $1 million, and a $400 special assessment.

The case was investigated by Homeland Security Investigations and is being 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 - Kenneth W. Smith, Jr., 26, of Philadelphia, PA, pleaded guilty in federal court today in connection with a hoax called in to authorities, on September 6, 2012, about explosives on an aircraft. Smith was charged with and pleaded guilty to malicious false information about an explosive, and false information and hoaxes. U.S. District Court Judge Gene E.K. Pratter scheduled a sentencing hearing for April 16, 2013. On September 6, 2012, Smith placed a telephone call to the Philadelphia Airport Police reporting that someone had allegedly carried an explosive substance onto an aircraft bound for Dallas-Ft. Worth Airport when Smith knew the statement was false. The report resulted in the flight being turned around and brought back to Philadelphia. Smith admitted he told police that an individual had carried liquid explosives onto the plane and that he targeted that individual in order to “avenge” a female.

Smith faces a maximum possible sentence of 15 years in prison, a fine of up to $500,000, special assessments, supervised release and restitution for the costs associated with the crimes. He has agreed to write a letter of apology to every passenger on board the flight, to reimburse the costs of emergency response, and to pay restitution to his victims

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Philadelphia Police Department, the Transportation Security Administration, and the U.S. Department of Transportation Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.

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

PHILADELPHIA - Tracy Martin, 48, and Marie Hinds, 41, both of Allentown, PA were charged today by indictment with orchestrating the straw purchase of two guns, announced United States Attorney Zane David Memeger. According to the indictment, Martin directed Hinds to purchase a 9mm pistol and a .32 caliber pistol for him, in January 2011, from an Army Navy store in Whitehall, PA. The couple allegedly lied on the federal firearms form by indicating that the guns were for Hinds. The indictment further alleges that Martin lied to an agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives by claiming the guns were secured in a safe in his home when he knew they were not.

If convicted, Martin faces a maximum possible sentence of 15 years in prison, three years of supervised release, a fine of up to $750,000; Hinds faces a maximum possible sentence of 10 years in prison, three years of supervised release, and a fine of up to $500,000.

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

Click here to view the indictment

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525

Michael Green, 30, of Philadelphia, PA, was charged by an indictment unsealed today with one count of conspiracy to distribute 280 grams or more of cocaine base (“crack”) and one count of conspiracy to distribute marijuana, announced United States Attorney Zane David Memeger. According to the indictment, Mr. Green was the leader of a drug trafficking organization that conspired to distribute approximately five kilograms of a mixture and substance containing crack in northwest Philadelphia and Montgomery County from at least March 2006 until at least July 8, 2009. Mr. Green also allegedly conspired to distribute marijuana between March 2009 and November 2009.

If convicted of both charges, the defendant faces a maximum possible sentence of life imprisonment with a mandatory minimum of 10 years imprisonment, five years to lifetime supervised release, a $10,250,000 fine, and a $200 special assessment.

The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Kishan Nair.

Click here to view the indictment

UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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Johnny Reyes-Agramonte, a/k/a “Johnny Reyes-Castillo,” a/k/a “Santo Johnny Reyes-Castillo,” a/k/a “Juan Sierra,” 44, 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 December 6, 2012, Reyes-Castillo, 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 April 10, 1997, June 16, 1999, and May 11, 2004.

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

The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations 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
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PHILADELPHIA - Sheila Kaye Jameson, 55, of Blandon, PA, was sentenced today to 48 months in prison for embezzlement and tax fraud. In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered restitution in the amount of $1,864,024 to EnerSys and its insurer, and taxes owed to the IRS in the amount of $256,447 (excluding penalties and interest), and three years of supervised release three years. She must report to the Bureau of Prisons on March 11, 2013.

Jameson was a Logistics Analyst for EnerSys Corporation in Reading, Pennsylania, when she embezzled approximately $1.8 million dollars from EnerSys Corporation by using a shell corporation, Aries Consulting Group. She created Aries Consulting for the purpose of sending bogus invoices to EnerSys, requesting payment which Aries Consulting Group was not entitled to receive. Jameson also failed to include any of the embezzled income on federal income tax returns that she filed with the Internal Revenue Service. She pleaded guilty to mail fraud and filing false tax returns.

The case was investigated by the FBI and the Internal Revenue Service Criminal Investigation 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

PHILADELPHIA - Jackson Doggette, 22, of Philadelphia, was sentenced today to 13 years in prison for three armed robberies committed between August and October 2011. Doggette and co-defendant Marvin Gibson, 39, also of Philadelphia, brandished a handgun while robbing the Metro PCS store, located at 3613 Germantown Avenue, on August 24, 2011 of approximately $50; the Metro PCS store, located at 3154 N. Broad Street, on September 9, 2011, of approximately $850; and the Rite Aid store, located at 810 S. Broad Street, on October 18, 2011 of approximately $2230. Both defendants pleaded guilty to Hobbs Act Robbery and firearms charges. Doggette pleaded guilty June 25, 2012. Gibson was sentenced on October 1, 2012, to 15 years in prison.

In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered Doggette to pay restitution in the amount of $3,130, a $500 special assessment and ordered five years of supervised release.

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

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