United States Attorney David Metcalf announced the sentencing of Alan Kane, a 60-year-old attorney from Jamison, Pennsylvania. Kane was sentenced by United States District Court Judge Michael M. Baylson to 12 months and a day in prison and three years of supervised release. He was also ordered to pay a restitution of $160,072 and a fine of $1,000 for his involvement in multiple fraud schemes.
In September, a federal jury convicted Kane on charges that included 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.
Kane's indictment in January 2024 described three fraud schemes he was involved in, alongside two co-defendants. These included a scheme to steal a deceased man’s family house, defrauding the City of Philadelphia of property taxes owed on the stolen house, and a scheme to defraud a co-defendant's creditors through bankruptcy.
In an attempt to retain possession of the stolen house, Kane represented Joseph Ruggiero and made false statements about the property's deeds, despite knowing they were fraudulent. He also filed a false counterclaim against the deceased’s family, asserting that co-defendant Jonathan Barger’s company deserved over $133,000 for purported improvements made to the house.
Kane further complicated the legal proceedings by representing Ruggiero before the Social Security Administration under contradictory claims, ensuring the latter continued to receive SSI benefits. Additionally, Kane filed bankruptcy proceedings for Ruggiero posing that the latter had valid title to the house, a claim he used to block the family’s recovery attempts.
Jonathan Barger pleaded guilty to all charges related to the fraudulent schemes and is due for sentencing on May 12.
U.S. Attorney Metcalf stated, “As officers of the court, attorneys have an ethical and professional obligation to uphold the law,” condemning Kane for misuse of his law license to commit federal crimes.
FBI Special Agent Wayne A. Jacobs underlined the impact of such frauds, stating, “White-collar crimes may not involve physical violence, but they are far from victimless.” Jacobs stressed the FBI's commitment to maintaining the integrity of financial systems and holding defrauders accountable.
The investigation was conducted by the FBI and prosecuted by Assistant United States Attorney Mark Dubnoff and Special Assistant United States Attorney Hannah McCollum.