Multi-Agency Fraud Investigation in Venango County Leads to Nearly 200 Charges Against Two Men

Joanne Bauer

Joanne Bauer

Published November 1, 2017 4:20 am
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VENANGO CO., Pa. (EYT) — The Oil City Police Department filed nearly 200 criminal charges against two men following a long-term, multi-agency investigation into a scheme that defrauded businesses and private residents in Venango County.

Court documents indicate 57-year-old John E. Longendorfer III, of Franklin, (pictured on left) and 52-year-old James Edward Ertell, of Houtzdale, (pictured on right) were arraigned on October 31 in front of Magisterial District Judge Andrew F. Fish on fraud-related charges.

The arrests are the result a joint effort of authorities from Pa. State Police Troopers of the Franklin barracks; Agency Karen See of the Pa. Board of Probation and Parole Franklin Sub-Office; and Officers of the Oil City Police Department.

According to a criminal complaint filed by Patrolman Culp, of the Oil City Police Department, John E. Longendorfer III and James E. Ertell entered into a criminal conspiracy beginning approximately on September 14, 2015, when they were both incarcerated at SCI Houtzdale, and ended on approximately July 2, 2017. The conspiracy was such that together they would commit a series of frauds, forgeries, and identity thefts to obtain large amounts of U.S. currency.

The complaint states that after the release of Longendorfer, he and Ertell allegedly began to use a system in which they would exchange letters via the U.S. Postal Service to commit their crimes. Longendorfer would communicate to Ertell instructions and directions on how to create what appeared to be legal documents from various attorneys from the Philadelphia, Pa. area. Ertell would then create the documents, forge the signatures of the attorneys assuming their identity and mail the letters to Longendorfer.

Longendorfer would then allegedly take the documents to several businesses and lending institutions in the Venango County area. He presented them as true and credible documents, authored by attorneys or their staff, in which the targeted victims could rely upon, which created a false impression. In doing this, Longendorfer was able to secure $525,000.00 in a Northwest Savings Bank business account using a fraudulent check created on his Woodforest Bank checking account. Longendorfer actually did receive $5,000.00 in fronted cash which he deposited into a Citizens Bank jointly-held personal account, the complaint indicates.

Additionally, Longendorfer allegedly used these same fraudulently created documents to begin contracts and negotiations with several local businesses under the guise he was starting a business(es) of his own. This included several real estate properties from Howard Hanna, multiple vehicles from Allegheny Toyota, office equipment from Hagan Business Equipment, and the purchase of one of the chains of “Attic” antique and collectibles stores in Oil City, the complaint continues.

Longendorfer allegedly shared his fictitious story with private citizens, as well. He told several people that he was receiving a large cash settlement and that he was starting a business(es) of his own to include rental properties. Through this portion of his fraud, Longendorfer obtained cash from two co-workers promising that they would have rental units. Lastly, he took funds from his girlfriend advising her that he would assume the payments for the house bills, and he never paid the debts, according to the complaint.

The above information was obtained through a series of search warrants by Oil City Patrolman Culp. One for the briefcase belonging to Longendorfer, obtained by PSP-Franklin, on an unrelated investigation. A second search warrant was served at SCI Houtzale for documents seized during a search of Ertell’s cell by prison staff.

Documents obtained from the services of both warrants supported and corroborated the investigation. Additionally, Patrolman Culp received statements from the law offices of both A. Charles Peruto Jr. and Joseph C. Santaguida, in which they unequivocally stated they have never represented Longendorfer in any legal matter. Further statements and/or documents were collected from the private citizens who were victimized, the complaint states.

During the investigation, it was discovered that Longendorfer and Ertell were interrupted in the middle of their conspiracy. Documentation was uncovered indicating that the men were finalizing plans to make an attempt to secure an additional $1.4 million using a scheme centered around a medical malpractice settlement, according to Chief Wenner, of the Oil City Police Department.

Preliminary hearings are scheduled for 8:30 a.m. on Wednesday, November 8, in front of Judge Fish.

Longendorfer faces the following charges:

– Theft By Deception-False Impression, Felony 1
– Conspiracy — Theft By Deception-False Impression, Felony 1
– Bad Checks, Felony 3
– Receiving Stolen Property, Felony 3
– Conspiracy — Theft By Unlawful Taking-Movable, Felony 1
– Conspiracy — Possession Instrument Of Crime W/Intent, Misdemeanor 1 (27 counts)
– Possession Instrument Of Crime W/Intent, Misdemeanor 1 (27 counts)
– Conspiracy — Forgery — Unauthorized Act In Writing, Felony 3 (nine counts)
– Identity Theft, Felony 3 (three counts)
– Conspiracy — Identity Theft, Felony 3
– Theft By Unlawful Taking-Movable Property, Misdemeanor 2 (four counts)
– Theft By Deception-False Impression, Misdemeanor 2 (four counts)
– Theft By Unlawful Taking-Movable Property, Misdemeanor 1 (two counts)
– Theft By Deception-False Impression, Misdemeanor 1 (four counts)
– Theft By Unlawful Taking-Movable Property, Misdemeanor 2 (six counts)
– Theft By Deception-False Impression, Misdemeanor 2 (five counts)

Unable to post $75,000.00 monetary bail, Longendorfer is lodged in the Venango County Jail.

Ertell faces the following charges:

– Conspiracy — Theft By Unlawful Taking-Movable Property, Felony 1
– Theft By Unlawful Taking-Movable Property, Felony 1
– Conspiracy — Theft By Deception-False Impression, Felony 1
– Theft By Deception-False Impression, Felony 1
– Conspiracy — Possession Instrument Of Crime W/Intent, Misdemeanor 1 (27 counts)
– Possession Instrument Of Crime W/Intent, Misdemeanor 1 (27 counts)
– Conspiracy — Forgery — Unauthorized Act In Writing, Felony 3 (five counts)
– Forgery — Unauthorized Act In Writing, Felony 3 (five counts)
– Conspiracy — Identity Theft, Felony 3
– Identity Theft, Felony 3
– Conspiracy — Forgery — Unauthorized Act In Writing, Felony 3 (four counts)
– Forgery — Unauthorized Act In Writing, Felony 3 (four counts)
– Conspiracy — Identity Theft, Felony 3
– Identity Theft, Felony 3

He is also lodged in the Venango County Jail on $75,000.00 monetary bail.

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