Suspended attorney Alan Kane and his associate Derrell Johnson have been convicted by a federal jury for their roles in a fraudulent scheme to steal a Philadelphia home from a deceased couple’s family. Kane, 59, was found guilty of bankruptcy fraud, filing a false claim, and making false statements to the FBI, while Johnson, 42, was convicted of making false statements to federal investigators. Both await sentencing in January 2025.

Fraudulent Scheme to Steal Family Home

According to the U.S. Attorney's Office for the Eastern District of Pennsylvania, Kane and Johnson, along with a third man, Jonathan Barger, engaged in fraudulent schemes to claim ownership of a house on Loney Street in Philadelphia, once owned by Edward and Evelyn Kraftsow. After their deaths, their son, William Kraftsow, inherited the property but passed away in 2016 without a will, leaving the house to his cousins.

In 2017, Barger and Johnson paid an accomplice to file a fraudulent deed, backdated to 2009, falsely claiming Evelyn Kraftsow had transferred the property to a fictitious person, Antonio Rossi. This deed, with forged signatures and a fraudulent notary stamp, set the stage for the conspirators to take control of the property.

Alan Kane Bankruptcy Fraud Case : Kane's Role in the Scheme

As part of the fraudulent plot, Kane, a once-practicing attorney in Pennsylvania, represented Joseph Ruggiero, Barger's father-in-law, in state court after the Kraftsow family contested the fraudulent ownership. Despite knowing the deeds were fake, Kane made false statements in support of Ruggiero’s ownership and filed a false counterclaim seeking over $133,000 for alleged home improvements by Barger, using a fake invoice as evidence.

Additionally, Kane filed fraudulent claims in bankruptcy proceedings to further delay the family’s efforts to reclaim the home. By filing for bankruptcy on Ruggiero's behalf in 2019, Kane was able to stall the family's lawsuit and claimed equity in the home for Barger in case Ruggiero lost the property.

Sentencing and Consequences

Kane faces a maximum possible sentence of 20 years in prison, three years of supervised release, and a $1 million fine. Johnson faces up to 10 years in prison and a $500,000 fine. Barger, who pleaded guilty in June 2024, is scheduled for sentencing in February 2025.

The FBI, which led the investigation, emphasized that the case underscores its commitment to rooting out white-collar crime that erodes public trust in financial systems.

The U.S. Attorney's Office has vowed to continue holding those accountable for engaging in such schemes. As U.S. Attorney Jacqueline Romero stated, the defendants' actions were motivated by greed, cheating the family and defrauding the public.