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Timothy D. Burns Charged in Multi-Million Dollar Fraud Scheme
PHILADELPHIA – Timothy D. Burns, 33, of Phoenixville, Pennsylvania, was charged today by Information in a $20 million fraud scheme that involved mail fraud, wire fraud and loan fraud.
According to the United States Attorney Zane David Memeger, Burns was the sole owner of ESG Family Services, among other businesses. ESG Family Services provided billing paying and other personal services to clients.
To facilitate his work and, as it developed, his alleged fraud, defendant Burns induced many of his Family Services clients to add him as a signatory to their bank accounts. He also allegedly represented to clients and others that he could acquire shares of Facebook and other social media stock before their public offerings at favorable prices.
Between at least May 2007 and September 2012, Burns converted money entrusted to him by more than 50 clients and would-be investors for his personal gain.
According to the Information, in 2011, without their knowledge or consent, Burns allegedly used his clients’ and investors’ money to buy a shore home in Avalon, New Jersey for more than $4 million and to make a down payment on a commercial office building in Conshohocken, Pennsylvania.
If convicted of all charges, Burns faces an advisory sentencing guideline range of between 151 and 188 months in prison, a $2.5 million fine, a five-year term of supervised release, a $400 special assessment and restitution of just under $20 million.
The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Pamela Foa.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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