PHILADELPHIA, PA — Alan Kane, a 59-year-old attorney from Jamison, Pennsylvania, and Derrell Johnson, 42, of Bensalem, Pennsylvania, were convicted last Friday for their roles in multiple fraudulent activities, as announced by U.S. Attorney Jacqueline C. Romero. The federal jury found Kane guilty of two counts of bankruptcy fraud, one count of filing a false claim in a bankruptcy proceeding, and one count of making a false statement to the FBI. Meanwhile, Johnson was convicted on two counts of making false statements to the FBI.
The convictions stem from a detailed 12-count indictment issued in January, involving Kane, Johnson, and their co-defendant Jonathan Barger, 55, the proprietor of a local plating company. The indictment outlined three distinct fraudulent schemes: the illegal acquisition of a deceased man’s property, the evasion of property taxes owed to the City of Philadelphia on said property, and the deceit of Barger’s creditors through bankruptcy manipulation. Barger, implicated in all three schemes, confessed to all charges in June.
Central to these schemes was the illegal transfer of property ownership. Kane represented Joseph Ruggiero, who fraudulently claimed ownership of a house belonging to a deceased man’s family. Despite being aware of the fraudulent nature of the property deeds, Kane persisted in making false statements to sustain Ruggiero’s ownership claim. Furthermore, Kane filed a bogus counterclaim against the family, asserting that Barger’s company was owed over $133,000 for supposed improvements to the stolen property.
In a contradictory move, Kane also represented Ruggiero before the Social Security Administration, asserting that the fraudulent deeds invalidated Ruggiero’s property ownership to maintain his eligibility for SSI benefits. This manipulation extended to filing a bankruptcy claim for Ruggiero, which served to halt the family’s legal efforts to reclaim their house. Kane then deceitfully submitted a false claim in the bankruptcy proceeding on behalf of Barger’s firm, aiming to secure a portion of the house’s equity should Ruggiero lose possession.
Johnson’s involvement included assisting with the preparation and filing of two fraudulent deeds that effectively transferred ownership of the house illicitly. He also played a role in filing a false claim to evade substantial property taxes owed to the City of Philadelphia. Johnson received payment for his participation in these fraudulent activities, yet when questioned by the FBI, he falsely denied any involvement, claiming ignorance of the fraudulent deeds and misrepresenting the nature of the payments he received.
The consequences for Kane and Johnson are severe, with sentencing scheduled for January 28, 2025. Kane could face up to 20 years in prison, along with other penalties, while Johnson faces a potential 10-year sentence.
U.S. Attorney Romero emphasized the shared objective of these fraudulent schemes: illicit financial gain at the expense of others. Highlighting the impact of such crimes, Wayne A. Jacobs, FBI Philadelphia’s Special Agent in Charge, reaffirmed the Bureau’s dedication to safeguarding financial integrity and prosecuting those who engage in deceitful financial practices.
The investigation was conducted by the FBI, with prosecution led by Assistant United States Attorney Mark Dubnoff and Special Assistant United States Attorney Hannah McCollum.
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