Elwyn employees arrested for orchestrating $920k kick-back scheme
Media, PA – Today Pennsylvania State Police Acting Troop Commander Lieutenant James J. Hennigan and Delaware County District Attorney Katayoun M. Copeland announced the arrest of four individuals who operated a kick-back scheme that involved the manipulation of the Elwyn organization’s time keeping system, stealing nearly $1 million dollars over a 21-month period. The announcement comes at the conclusion of a long-term investigation by Pennsylvania State Police Troopers Francis Pawlowski and John Eissler and prosecution of the case led by Assistant District Attorney William J. Judge, Jr.
In addition to identifying 37 individuals who face charges for perpetrating varying levels of fraud against the Elwyn organization, the fraud investigation has resulted in the arrest of four individuals who were employed as supervisors at Elwyn including, Tyloneous Wilson, 40, Karriemah Williams, 34, Lakiea Gay, 36, and Terrance Chatman, 28. The individuals face felony theft charges.
On May 30, 2017, the Pennsylvania State Police in Media was notified of an internal investigation that had commenced at the Elwyn organization, headquartered in Middletown Township. Accountants had observed an excessive amount of overtime being paid to multiple employees at several Elwyn housing sites throughout Delaware County. An investigation into the fraud was immediately launched. Through the course of the investigation, it was discovered that four supervisors were manipulating the time keeping system and fraudulently adding extra hours and shifts to their respective employee’s time sheets. Elwyn employees are required to clock in upon arrival at work, and clock out upon completion. The extra hours did not correlate with the clocking in and out times.
Based on the review and comparison of the employee punches, supervisor edits, work schedules, and employee sign in sheets, investigators determined the extra hours to be fraudulent. Further investigation revealed that four supervisors, Tyloneous Wilson, Karriemah Williams, Lakiea Gay, and Terrance Chatman, made special arrangements with their subordinates. The supervisors would edit the subordinates’ time sheets and input extra overtime. The supervisors would not require the subordinate to work the extra hours, and in return the subordinates would either pay their supervisor with a portion of the proceeds or perform extra job-related favors. These supervisors managed more than 37 employees at ten different offsite locations throughout Delaware County. In total, as part of the kick-back scheme, they stole a total of $920,004 from Elwyn.
“Following the discovery of suspicious, fraudulent activity, Elwyn immediately launched an internal audit and review, and contacted authorities,” said District Attorney Katayoun M. Copeland. “As the result, an intensive forensic investigation was launched by the Pennsylvania State Police, resulting in the arrest of 41 individuals who will be held accountable for their unmitigated greed. Four of those individuals are supervisors who we hold to a higher standard of conduct, including setting an example to their colleagues. Instead of helping others, as is the very mission of their employer, Elwyn, these individuals took advantage of their position of authority, orchestrating an elaborate kick-back scheme for their own selfish gain and profit. I commend Elwyn investigators, and PSP Trooper Francis Pawlowski and Trooper John Eissler for their diligent work on this case.”
OFFICE OF THE DISTRICT ATTORNEY
DELAWARE COUNTY COURTHOUSE
MEDIA, PENNSYLVANIA 19063
KATAYOUN M. COPELAND LT. JAMES J. HENNIGAN
DISTRICT ATTORNEY ACTING TOOP COMMANDER
FOR IMMEDIATE RELEASE
DATE: January 16, 2019
CONTACT PERSON: Emily H. Harris, 610.891.4252