A former business development manager for the $1 billion Philadelphia Federal Credit Union will be sentenced in June for his role in helping Pennsylvania public officials, including an elected judge, launder drug money.
Kevin M. Biederman, who worked at the credit union from 2012 to March 2016, pleaded guilty to conspiracy to commit money laundering and bank bribery Friday in U.S. District Court in Philadelphia.
Three Bucks County public officials were also charged with conspiracy to commit money laundering, money laundering, wire fraud, mail fraud and extortion.
According to the court documents, from June 2015 to November 2016, the public officials and Biederman conspired to launder $400,000 in cash during an undercover police investigation that included a cooperating witness. The undercover cops told the county officials the money that needed to be laundered came from illegal drug trafficking, health care and bank fraud schemes.
The public officials charged the undercover cops a total of $80,000 in money laundering fees and allegedly paid off Biederman to prepare packets of fake documents to make the money laundering transactions look legitimate.
What's more, Biederman solicited and accepted a bribe of $1,600 to influence PFCU approval for a loan. However, court documents do not reveal details about the type of loan, its amount or for whom.
The public officials named in the indictment are John I. Waltman of Trevose, a former Bucks County magisterial district judge, Robert P. Hoopes of Doylestown, former director of public safety for Lower Southhampton Township, and Bernard T. Rafferty of Langhorne a former Pennsylvania deputy constable and the owner of Raff's Consulting LLC.
In carrying out the money laundering transaction scheme, federal prosecutors said Hoopes withdrew funds from his Customers Bank account and deposited the funds into Raff's Consulting account at PFCU. Rafferty then obtained a check drawn on Raff's Consulting account at PFCU in an amount equal to 80% of the total amount of cash to be laundered for the undercover cops.
At the direction of Waltman, Hoopes and Rafferty, Biederman prepared bogus documents including Raff's Consulting invoices, non-disclosure agreements, consulting contracts, zoning applications, land surveys and other fake documents, which provided a pretext for the money laundering transactions, federal prosecutors said.
In an unmarked police cruiser, Hoopes drove to an office building to meet the undercover cops in June 2016. After they arrived with a duffel bag stuffed with $100,000 in cash, Hoopes gave the undercover agents the Raff's Consulting check for $80,000 and the packet of bogus documents. Taking the duffel bag from the undercover cops, Hoopes walked to the parking lot where Waltman and Rafferty were waiting in another car.
After the public officials split the $20,000 money laundering fee, Rafferty deposited $80,000 in cash in his consulting firm's account at PFCU, according to court documents.
This money exchange to launder the cash occurred two more times in July and August, according to federal prosecutors.
Philadelphia FCU said it had been aware of the federal investigation and fully cooperated with authorities.
The Bucks County officials are also facing wire fraud, mail fraud and extortion charges for accepting a $1,000 bribe and the promise of future money laundering fees and broker fees to use their positions as public officials to fix a traffic case for an associate who was working with undercover cops. They have pleaded not guilty to all charges.
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