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Case 2:19-cr-00065-JLS Document 1 Filed 01/29/19 Page 1 of 10

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF PENNSYLVANIA

UNITED STATES OF A}IERICA CRINIIN.{L NO. 19 -

Date Filed: January 29,2019

.IAI\'IES E. }IOYLAN VIOLATIONS:
18 U.S.C. $ 1343 (wire fraud - 17
counts)
26 U.S.C. S 7206(1) (filing false federal
income tax returns - 4 counts)

INDICTMENT
COUNTS ONE THROUGH SEVENTEEN
Wire Fraud
18 U.S.C. S 1343

THE GRAI{D JURY CHARGES THAT:

At all times relevant to this Indictment:

1. Defendant JAMES E. MOYLAN was a chiropractor with an office on S. 3'd

Street, Philadelphia, PA. Defendant MOYLAN owned a home in Philadelphia, Perursylvania,

on which Ocwen Loan Servicing, LLC held and serviced a mortgage.

2. 298, Inc. ("298") was a non-profit organization, which served as the charitable

arm oflocal 98 of the lntemational Brotherhood of Electrical Workers ("Local 98'), a labor

organization that represented employees working in the electrical construction industry. 298

routinely donated to community and charitable organizations. Defendant JAMES E. MOYLAN

and another person known to the grandjury had signature authority to issue checks on and make

withdrawals from 298's checking account at Prudential Savings Bank.

3. Defendant JAMES E. MOYLAN was the Executive Director of a non-profit

corporation called Neighborhoods for Fair Taxes ("I{FFI"), which he formed 'to advocate for
Case 2:19-cr-00065-JLS Document 1 Filed 01/29/19 Page 2 of 10

fairer tax policy in the City of Philadelphia." During May 20 13 , defendant MOYLAN spent

$4,27 4.85 from an NFFT bank account, described below, for NFFT expenses, which included

legal fees and costs associated with conducting public meetings conceming Philadelphia's

proposed AVI C'AV| pro$am, a property tax assessment system.

4. On or about June 13.2013. Philadel phia CiW Council approved legislation

conceming the City's AVI program.

The Scheme

5. Between in or about July 2013, through in or about January 2016, in the Eastem

District of Pennsylvania and elsewhere, defendant

JAMESE. MOYLAN

devised and intended to devise a scheme to defraud Local 98 and 298, and obtain money and

property from Local 98 and 298 by means offalse and liaudulent pretenses, representations, and

promlses.

Manner and Means

6. It was part of the scheme that, on behalf of NFFT and 298, defendant JAMES E.

MOYLAN solicited and received $50,000 in donations from Local 98. MOYLAN deposited the

$50,000 into NFFT's bank account, and spent $4,274.85 for NFFT expenses. MOYLAN then

stole in excess of$45,000 of the remaining donations to pay his business and personal expenses,

including his credit card bills and home mortgage. MOYLAN also stole thousands of dollars

directly from 298 to pay his home mortgage and office rent.

7. [n or about February 2013, defendant JAMES E. MOYLAN wrote a letter to

Local 98 on behalfof298 requesting that Local 98 provide grant funds to 298 "to assist us in

continuing our mission of community support and benefits."

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Case 2:19-cr-00065-JLS Document 1 Filed 01/29/19 Page 3 of 10

8. On or about February 18, 2013, defendant JAMES E. MOYLAN deposited a

Local 98 Job Recovery Fund check, with the same date, in the amount of$25,000, and made

payable to 298, Inc., into 298's Prudential Savings Bank account in Philadelphia. The memo

line of the check noted "DONATION."

9 . On or about March I , 20 I3 , defendant JAMES E. MOYLAN submitted an

Articles of Incorporation-Nonprofit form to the Pennsylvania Departrnent ofstate, Bureau of
Corporations and Charitable Organizations. MOYLAN identified himself as the incorporator of

a non-profit corporation called Neighborhoods for Fair Taxes, located on S. 3rd Sheet,

Philadelphia, PA, at the same address as his chiropractic business. Moylan claimed that NFFT

was incorporated to "advocate for fairer tax policy in the city of Philadelphia."

10. On March l,2013, the same day NFFT was incorporated, defendant JAMES E.

MOYLAN emailed a letter from MOYLAN, at NFFT, to an employee of Local 98. In the letter,

which was addressed to the Local 98's Business Manager, defendant MOYLAN asked for Local

98's support in NFFT's efforts to protect the "best interest ofour citizens" conceming the city's

proposed Actual Value Initiative ("AVI") property tax program, which was expected to impact

residents' property tax ntes. MOYLAN wrote, "[T]hrough education, instruction and

information dissemination, we can keep the citizens ofPhiladelphia an active part ofthis

process."

I 1. On or about March 26,2013, defendant JAMES E. MOYLAN opened a new

business account at TD Bank in Philadelphia in the name ofNFFT, and identified himself as the

Executive Director of NFFT on the account forms.

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12. On or about March 26,2013, defendant JAMES E. MOYLAN wrote a $25,fi)0

check from 298's bank account, made payable to NFFT. MOYLAN deposited the check in the

NFFT TD Bank account he hadjust opened.

13. On April l, 2013, defendant JAMES E. MOYLAN deposited a Local 98 Job

Recovery Fund check, dated March 28,2013, in the amount of$25,000, and made payable to

NEIGHBORHOODS FOR FAIR TAXES, into the NFFT TD Bank account.

14. From in or about July 2013, through in or about October 2014, defendant JAMES

E. MOYLAN stole the remaining NFFT funds, which amounted to approximately $45,000.

MOYLAN wrote checks to himself, totaling $41 ,700, fiom the NFFT TD Bank account, which

he deposited in his Moylan chiropractic business account at United Savings Bank ('USB") in

Philadelphia. MOYLAN transferred funds by check fiom his chiropractic business account to

his personal account at the Police and Fire Federal Credit Union ("PFFCU") in Philadelphia,

then used $15,600 of this money to pay his home mortgage. He spent the remainder of the

$41,700 deposited in his Moylan chiropractic business account on expenses related to his

chiropractic practice and personal expenditures, including retail purchases, meals, travel and

golf.

15. In or about January 2O16, defendant JAMES E. MOYLAN also stole more than

$7,000 from 298, Inc.'s bank account to pay his home mortgage and his chiropractic office rent.

16. On or about the dates identified below, defendant JAMES E. MOYLAN executed

and attempted to execute the scheme and artifice to deliaud and to obtain money by means of
false and fraudulent pretenses, representations, and promises, by transmitting and causing to be

transmitted, by means of wires in interstate cornmerce, the following wire communications in the

forrn of writings, signs, signals, pictures, and sounds:

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Count Interstate Wire Communication Date

I Wire transfer of $4,038.02 fiom MOYLAN's personal t/29114
account to Ocwen Loan Servicing, LLC, to pay his home
mortgage, processed through Wells Fargo Bank in San
Francisco, CA.
') NFFT TD Bank check number 1005, in the amount of 2lt9n4
$7,500, payable to Jim Moylan, deposited into the Moylan
Chiropractic USB Account, cleared through the Federal
Reserve in Atlanta, GA.

3 Moylan Chiropractic USB account check number 1955, in 2/20/t4
the amount of $3,500, payable to Jirn Moylan, deposited
into MOYLAN's personal account, cleared through the
Federal Reserve in Atlanta, GA.

4 Wire transfer of $4,038.02 from MOYLAN's personal 2/25/14
account to Ocwen Loan Servicing LLC to pay his home
mortgage, processed through Wells Fargo Bank in San
Francisco, CA.

5 A $304.47 debit charge on the NFFT TD Bank account for 419/14
dinner at Cafe Valentino, processed through Jacksonville,
FIa.

6 NFFT TD Bank check number 1007, in the amount of 4t23/14
$5,000, payable to Jim Moylan, deposited into the Moylan
Chiropractic USB Account, cleared through the Federal
Reserve in Atlanta, GA.

7 NFFT TD Bank check number 1008, in the amount of 4/28/14
$5,000, payable to Jim Moylan, deposited into the Moylan
Chiropractic USB Account, cleared through the Federal
Reserve in Atlanta, GA.

8 NFFT TD Bank check number 1009, in the amount of s/30/14
$4,000, payable to Jim Moylan, deposited into the Moylan
Chiropractic USB Account, cleared through the Federal
Reserve in Atlanta, GA.

9 NFFT TD Bank check number 1010, in the amount of 5130114
54,000, to Jim Moylan, deposited into the Moylan
Chiropractic USB Account, cleared through the Federal
Reserve in Atlanta, GA.

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Case 2:19-cr-00065-JLS Document 1 Filed 01/29/19 Page 6 of 10

Count Interstate Wire Communication Date

l0 Moylan Chiropractic USB account check number 1994, in 5l30lt4
the amount of $1,500, payable to Jim Moylan, deposited
into MOYLAN's personal account, cleared through the
Federal Reserve in Atlanta, GA.

ll Moylan Chiropractic USB account check number 1995, in 5/3U14
the amount of $3,500, payable to Jim Moylan, deposited
into MOYLAN's personal account, cleared through the
Federal Reserve in Atlanta, GA.

I2 Wire transfer of $4,038.02 from MOYLAN's personal 6/ 04n4
account to Ocwen Loan Servicing, LLC. to pay his home
mortgage, processed through Wells Fargo Bank in San
Francisco, CA.

l3 NFFT TD Bank check number 101 I , in the amount of t0ltol14
$ 1,200, payable to Jim Moylan, deposited to the Moylan
Chiropractic USB Account, cleared through the Federal
Reserve in Atlanta, GA.

t4 Moylan Chiropractic USB account check number 2030, in t0/t5lt4
the amount of $2,000, payable to James Moylan, deposited
into MOYLAN's personal account, cleared through the
Federal Reserve in Atlanta, GA.

i5 Wire transfer of $3,663.26 from MOYLAN's personal 10t20n4
account to Ocwen Loan Servicing, LLC to pay his home
mortgage, processed through wells Fargo Bank in San
Francisco, CA.

l6 298, Inc. check number 682, in the amount of $3402.22, It6n6
made payable to Neo Genesis 1, LLC, to pay MOYLAN's
chiropractic office rent, cleared through the Federal Reserve
in Atlanta, GA.
Wire transfer of $3,664.83 fiom MOYLAN's personal
t7 I I) I6
account to Ocwen Loan Servicing, LLC to pay his home
mortgage, processed through Wells Fargo Bank in San
Francisco CA.

A1l in violation of Title 18, United States Code, Section 1343.

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Case 2:19-cr-00065-JLS Document 1 Filed 01/29/19 Page 7 of 10

COTJNT EIGHTEEN
Filing a False Federal Income Tax Return
26 u.s.c. $ 7206(1)

THE GRAI{D JURY FURTHTR CHARGES THAT:

l. Paragraph I ofCount One is incorporated here.

2. On or about October 14,2013, in the Eastem District of Pennsylvania and

elsewhere, defendant

JAMES E. MOYLAN

willflrlly made and subscribed a United States income tax retum, Form 1040, for the calendar

year 2012, which was verified by a written declaration that it was made under the penalty of

pe{ury and filed with the Director, lntemal Revenue Service Center, which defendant

MOYLAN did not believe to be true and correct as to every material matter, in that the retum

reported adjusted gross income of $99,141, when in fact, as MOYLAN knew, he had failed to

report all ofhis income and had falsely claimed personal expenses to be business expenses,

resulting in additional taxable income of approximately $80,220.

ln violation of Title 26, United States Code, Section 7206(1).

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Case 2:19-cr-00065-JLS Document 1 Filed 01/29/19 Page 8 of 10

COUNT NINETEEN
Filing a False Federal Income Tax Return
26 u.s.c. $ 7206(1)

TIIE GRANDJURY FI]RTHT'R CHARGES THAT:

l. Paragraph 1 of Count One is incorporated here.

2. On or about October 15,2014, in the Eastem District of Pennsylvania and

elsewhere, defendant

JAMES E. MOYLAI{

willfully made and subscribed a United States income tax retum, Form 1040, for the calendar

year 201 3, which was verified by a written declaration that it was made under the penalty of

pe{ury and filed with the Director, Intemal Revenue Service Center, which defendant

MOYLAN did not believe to be true and correct as to every material matter, in that the retum

reported adjusted gross income of $107,941,when in fact, as MOYLAN knew, he had failed to

report all ofhis income and had falsely claimed personal expenses to be business expenses,

resulting in additional taxable income of approximately $88,226.

In violation of Title 26, United States Code, Section 7206(l).

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Case 2:19-cr-00065-JLS Document 1 Filed 01/29/19 Page 9 of 10

COUNT TWENTY
Filing a False Federal Income Tax Return
26 U.S.C. S 7206(l)

THE GRAND JURYFURTHER CHARGES THAT:

l. Paragraph I of Count One is incorporated here.

2. On or about October 14, 2015, in the Eastem District of Pennsylvania and

elsewhere, defendant

JAMES E. MOYLAI{

willfully made and subscribed a United States income tax retum, Form 1040, for the calendar

year 2014, which was verifred by a written declaration that it was made under the penalty of
pe{ury and filed with the Director, Intemal Revenue Service Center, which defendant

MOYLAN did not believe to be true and correct as to every material matter, in that the retum

reported adjusted gross income of $58,921, when in fact, as MOYLAN knew, he had failed to

report all ofhis income and had falsely claimed personal expenses to be business expenses,

resulting in additional taxable income ofapproximately S80,496.

In violation of Title 26, United States Code, Section 7206(l).

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Case 2:19-cr-00065-JLS Document 1 Filed 01/29/19 Page 10 of 10

COUNT TWENTY. ONE
Filing a False Federal Income
Tax Return
26 U.S.C. S 7206(1)

THE GRAND JURY FURTHER CHARGES THAT:

l. Paragra.ph I ofCount One is incorporated here.

2. On or about September 26, 2016, in the Eastem District of Pennsylvania and

elsewhere, defendant

JAMES E. MOYLAI\

willfully made and subscribed a United States income tax retum, Form 1040, for the calendar

year 2015, which was verified by a written declaration that it was made under the penalty of
pet'ury and filed with the Director, lntemal Revenue Service Center, which defendant

MOYLAN did not believe to be true and correct as to every material matter, in that the retum

reported adjusted gross income of $96,61 1, when in fact, as MOYLAN knew, he had failed to

report all ofhis income and had falsely claimed personal expenses to be business expenses,

resulting in additional taxable income of approximately $41,227.

ln violation of Title 26, United States Code, Section 7206(l).

A TRTJE BILL:

FOREPERSON

,1-J 0"0,$( I

N ARBITTIER WILLIANIS
Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. $ 5ls

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