Middle District of Georgia
Press releases recorded for this federal judicial district.
Forsyth Man Sentenced for Passing Fraudulent Financial InstrumentsRead the Press Release
G.F. Peterman, III, Acting United States Attorney for the Middle District of Georgia, announced that Carmen Deck Trevitt, Jr., age 60, of Forsyth, Georgia, was sentenced today to serve 27 months in Federal prison for two counts of passing fraudulent financial instruments. Mr. Trevitt was sentenced by the Honorable Marc T. Treadwell, United States District Judge, in Macon, Georgia. Judge Treadwell also ordered Mr. Trevitt to pay a $10,000.00 fine.
Mr. Trevitt entered a guilty plea to these charges on June 17, 2015. His plea agreement stipulated that on September 23, 2011 and November 1, 2011, Mr. Trevitt submitted two separate fictitious obligations to the Internal Revenue Service (IRS) in Macon, Georgia, to pay his liabilities. The first document was in the amount of $700,000.00, payable to the “United States Treasury for Credit to the IRS” dated September 16, 2011. The second document submitted indicated the same payee as the previous one; however, the amount was listed as $500,000.00 and was dated October 26, 2011. Both of the fictitious obligations, which purported to be “International Bills of Exchange”, had no financial value.
The investigation was initiated in November 2011 by the Treasury Inspector General for Tax Administration (TIGTA). TIGTA agents reported that Mr. Trevitt had filed numerous frivolous documents with the IRS in an attempt to impede and obstruct the collection of approximately $645,000 in outstanding tax liabilities. For example, Mr. Trevitt filed documents purportedly appointing various federal officials as fiduciaries and thus claiming to make these individuals responsible for his tax liabilities. He also submitted documents to the IRS declaring he and his spouse were deceased, thus stopping enforcement activities.
“Anyone who owes the amount of taxes owed by Mr. Trevitt has obviously been blessed with great good fortune by the opportunities afforded by life in the United States. It is then sad and unfortunate to see such a person go to these great lengths to avoid the legitimate tax obligations expected from all the citizens of this great nation” said Acting U.S. Attorney G.F. “Pete” Peterman, III.
The case was investigated by the Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Sonja B. Profit prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Columbus Man Convicted on Drug & Firearm ChargesRead the Press Release
Dyrell Leshaun Davis, age 32, of Columbus, Georgia was convicted, following a 3-day jury trial, on January 6, 2016, on one count of possession of a controlled substance and one count of possession of a firearm by a convicted felon. Chief U.S. District Court Judge Clay D. Land was the presiding judge.
Evidence presented at trial showed that on April 25, 2014, officers with the Special Operations Unit of the Columbus Police Department executed a search warrant at Mr. Davis’ residence based upon a controlled buy of marijuana that had been made from him at the residence during the previous week. The search revealed approximately 48 grams of packaged marijuana, found hidden inside a bedroom light fixture; a small digital hand held scale; and a loaded handgun found in the kitchen garbage can. The firearm had been reported stolen in July 2013.
Mr. Davis has two prior felony convictions for aggravated assault in Muscogee Superior Court, one in March 2003 and in March 2008.
“Guns and drugs are a deadly combination under any circumstances. When the person who possesses them has previously been twice convicted of violent felonies, it becomes even more so, making the prosecution of this type of case so important for safety in the community,” said Acting United States Attorney G. F. “Pete” Peterman, III.
Possession of a controlled substance carries a maximum sentence of five (5) years in prison. Possession of a firearm by a convicted felon is punishable by a maximum sentence of ten (10) years imprisonment, a fine of up to $250,000, or both. Mr. Davis will be sentenced in about 60 days following a presentence investigation. He remains in custody following this conviction.
The case was investigated by Columbus Police Department’s Lead Investigator S/A Robert Yates and S/A Will Panoke, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Mel Hyde is prosecuting the case on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Three Former Civilian Military Employees and One Military Contractor Sentenced for Bribery Scheme at Georgia Military BaseRead the Press Release
Eight Defendants Convicted to Date in Base-Centered Corruption Probe
Three former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one former employee of a military contractor were sentenced to prison following their guilty pleas to bribery and conspiracy offenses arising from their handling of military trucking contracts and theft of surplus military equipment, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia.
Mitchell Potts, 50, of Sylvester, Georgia, the former head of the Defense Logistics Agency (DLA) Transportation Office at the MCLB was sentenced to 10 years in prison for two counts of bribery. Jeffrey Philpot, 38, of Tifton, Georgia, the former lead transportation assistant under Potts in the DLA Transportation Office, was sentenced to seven years in prison for two counts of bribery. Shelby Janes, 69, of Albany, the former inventory control manager of the Distribution Management Center’s Fleet Support Division (FSD) at the MCLB, was sentenced to two years in prison for bribery. Kelli Durham, 35, of Leesburg, Georgia, the former manager of United Logistics (ULOC), an Albany-based trucking company and transportation broker, was sentenced to six months in prison for conspiracy to commit wire fraud. Collectively, the defendants were ordered to pay more than $2 million in forfeiture and restitution.
According to court documents, between 2008 and 2012, Potts and Philpot accepted hundreds of thousands of dollars in bribes from Christopher Whitman, ULOC’s co-owner, to assure that ULOC was awarded commercial trucking contracts from the base. These contracts were loaded with gratuitous requirements, such as expedited service, expensive trailers and exclusive use, which requires that freight be shipped separately from other equipment, even if that results in a truck not being filled to capacity. At Whitman’s direction, Durham fraudulently re-brokered the loads obtained from DLA to independent truck drivers, but used far fewer trucks without the additional service requirements for which the government paid. To conceal the fraudulent re-brokering, Durham altered government-issued bills of lading and falsified delivery certifications. Durham also submitted false invoices to the government for payment. As a result of these contracts, ULOC grossed more than $37 million over less than four years and cost the government approximately $20 million in overcharges.
Potts and Philpot admitted to participating in a separate bribery scheme in which they accepted bribes from truck drivers and a broker affiliated with another trucking company that did business with DLA at the MCLB. Between the two schemes, Potts took more than $275,000 in bribes, including cash, free rent, home improvements, meals, a hunting trip and other things of value. Philpot accepted a total of nearly $575,000 in bribes, including cash, a casino getaway, home improvements and collector items such as rare coins, a baby grand piano, a Werlitzer jukebox, firearms and a vehicle.
Court documents further show that Janes accepted nearly $100,000 in bribes from Whitman and used his position within FSD to help Whitman steal more than $1 million in surplus military equipment from the base, including bulldozers, cranes and front-end loaders. To accomplish the thefts, Janes removed the surplus items—many of which had returned from conflict theatres abroad and been designated for refurbishment or auction—from Marine Corps inventory lists and arranged for Whitman’s company to transport them off the base. Whitman then arranged to improve the stolen equipment and sell it to private purchasers.
Earlier this year, a jury in the Middle District of Georgia convicted Whitman, Shawn McCarty, a former DLA transportation assistant, and Bradford Newell, a former FSD contractor, of multiple counts of bribery, honest services fraud, theft of government property and obstruction of justice in connection with the schemes. On Sept. 10, 2015, Whitman was sentenced to 22 years, McCarty was sentenced to 10 years and Newell was sentenced to five years. Whitman was ordered to forfeit $18,860,313.75, McCarty was ordered to forfeit $15,410,151.55 and Newell was ordered to forfeit $513,600. Potts, Philpot, Janes and Durham all cooperated with the government’s investigation and testified in the trial. Furthermore, in February 2014, C.W. Smith, who helped arrange the sale of the surplus military equipment Whitman stole from the base, pleaded guilty to theft of government property and was subsequently sentenced to probation.
The Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General and the Department of Labor Office of the Inspector General investigated the case. Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia prosecuted the case. Assistant Deputy Chief Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Danial Bennett of the Middle District of Georgia are handling forfeiture and restitution.
Three Former Civilian Military Employees and One Military Contractor Sentenced for Bribery Scheme at Georgia Military BaseRead the Press Release
WASHINGTON – Three former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one former employee of a military contractor were sentenced to prison following their guilty pleas to bribery and conspiracy offenses arising from their handling of military trucking contracts and theft of surplus military equipment, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney G.F. Peterman III of the Middle District of Georgia.
Mitchell Potts, 50, of Sylvester, Georgia, the former head of the Defense Logistics Agency (DLA) Transportation Office at the MCLB was sentenced to 10 years in prison for two counts of bribery. Jeffrey Philpot, 38, of Tifton, Georgia, the former lead transportation assistant under Potts in the DLA Transportation Office, was sentenced to seven years in prison for two counts of bribery. Shelby Janes, 69, of Albany, the former inventory control manager of the Distribution Management Center’s Fleet Support Division (FSD) at the MCLB, was sentenced to two years in prison for bribery. Kelli Durham, 35, of Leesburg, Georgia, the former manager of United Logistics (ULOC), an Albany-based trucking company and transportation broker, was sentenced to six months in prison for conspiracy to commit wire fraud. Collectively, the defendants were ordered to pay more than $2 million in forfeiture and restitution.
According to court documents, between 2008 and 2012, Potts and Philpot accepted hundreds of thousands of dollars in bribes from Christopher Whitman, ULOC’s co-owner, to assure that ULOC was awarded commercial trucking contracts from the base. These contracts were loaded with gratuitous requirements, such as expedited service, expensive trailers and exclusive use, which requires that freight be shipped separately from other equipment, even if that results in a truck not being filled to capacity. At Whitman’s direction, Durham fraudulently re-brokered the loads obtained from DLA to independent truck drivers, but used far fewer trucks without the additional service requirements for which the government paid. To conceal the fraudulent re-brokering, Durham altered government-issued bills of lading and falsified delivery certifications. Durham also submitted false invoices to the government for payment. As a result of these contracts, ULOC grossed more than $37 million over less than four years and cost the government approximately $20 million in overcharges.
Potts and Philpot admitted to participating in a separate bribery scheme in which they accepted bribes from truck drivers and a broker affiliated with another trucking company that did business with DLA at the MCLB. Between the two schemes, Potts took more than $275,000 in bribes, including cash, free rent, home improvements, meals, a hunting trip and other things of value. Philpot accepted a total of nearly $575,000 in bribes, including cash, a casino getaway, home improvements and collector items such as rare coins, a baby grand piano, a Werlitzer jukebox, firearms and a vehicle.
Court documents further show that Janes accepted nearly $100,000 in bribes from Whitman and used his position within FSD to help Whitman steal more than $1 million in surplus military equipment from the base, including bulldozers, cranes and front-end loaders. To accomplish the thefts, Janes removed the surplus items—many of which had returned from conflict theatres abroad and been designated for refurbishment or auction—from Marine Corps inventory lists and arranged for Whitman’s company to transport them off the base. Whitman then arranged to improve the stolen equipment and sell it to private purchasers.
Earlier this year, a jury in the Middle District of Georgia convicted Whitman, Shawn McCarty, a former DLA transportation assistant, and Bradford Newell, a former FSD contractor, of multiple counts of bribery, honest services fraud, theft of government property and obstruction of justice in connection with the schemes. On Sept. 10, 2015, Whitman was sentenced to 22 years, McCarty was sentenced to 10 years and Newell was sentenced to five years. Whitman was ordered to forfeit $18,860,313.75, McCarty was ordered to forfeit $15,410,151.55 and Newell was ordered to forfeit $513,600. Potts, Philpot, Janes and Durham all cooperated with the government’s investigation and testified in the trial. Furthermore, in February 2014, C.W. Smith, who helped arrange the sale of the surplus military equipment Whitman stole from the base, pleaded guilty to theft of government property and was subsequently sentenced to probation.
The Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General and the Department of Labor Office of the Inspector General investigated the case. Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia prosecuted the case. Assistant Deputy Chief Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Danial Bennett of the Middle District of Georgia are handling forfeiture and restitution.
Middle District of Georgia U.S. Attorney's Office Collects $14,874,864.54 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
MACON – Acting U.S. Attorney G.F. Peterman, III announced today that the Middle District of Georgia collected $14,874,864.54 in criminal and civil actions in Fiscal Year 2015.
“I am proud of the fact that this is the largest sum ever collected by the United States Attorney’s Office for the Middle District of Georgia. While this is the result of hard work by our entire Civil and Criminal Divisions staffs, it is due especially to fine work by our Health Care Fraud attorneys in several major cases and by the overall work of our Financial Litigation Unit, who is responsible for collections in all cases in our seventy county district.”
Attorney General Loretta E. Lynch announced that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year (FY) ending Sept. 30, 2015. Collections in FY 2015 represent more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 93 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $16.2 billion in payments made directly to the Justice Department, and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients.
In measuring collections recovered in FY 2015, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2015.
Among the top 20 debt collections, the largest came from financial institutions whose risky practices led up to the 2008 financial crisis and collapse of the U.S. housing market, including $8.2 billion of the settlement in August 2014 with Bank of America Corporation, which included $5 billion in penalties for claims under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) – the largest FIRREA penalty ever - and $687 million from the February 2015 settlement with McGraw Hill Financial Inc. and Standard & Poor’s Financial Services LLC.
The department continued to make polluters pay to safeguard the environment and the taxpayer, collecting $1.8 billion of the total $5.1 billion settlement of the Tronox Inc. bankruptcy in January 2015, the majority of which is being used for cleanups of Kerr-McGee sites, including on tribal lands and in low-income communities across the United States. From the November 2014 settlement with Hyundai and Kia, the automakers paid $93.6 million to the United States, of a $100 million civil penalty owed to the United States and the California Air Resources Board, to resolve violations concerning the testing and certification of vehicles sold in America.
As in previous years, recoveries for health care fraud were among the largest, including $807 million from DaVita Healthcare Partners to settle two False Claims Act cases which involved kickback schemes and fraudulent billing of the federal government.
Growing out of the international scheme to manipulate the London Interbank Offer Rate (LIBOR), the department obtained resolutions from several banks. Notably, Deutsche Bank entered into a deferred prosecution agreement in which it admitted its role in fraud and price-fixing conspiracies by rigging Yen LIBOR contributions with other banks and paid $625 million in penalties, in addition to regulatory penalties and disgorgements imposed by other agencies. A Deutsche Bank subsidiary in the United Kingdom also pleaded guilty for its role in the rate manipulation.
Additionally, in March, Commerzbank AG, agreed to pay a $79 million fine to the department, in addition to a $563 million forfeiture, as part of a global settlement of charges for violating the International Emergency Economic Powers Act and the Bank Secrecy Act. For six years Commerzbank knowingly and willfully moved approximately $263 million through the U.S. financial system on behalf of sanctioned entities in Iran and Sudan.
The Swiss Bank Program yielded more than $350 million in penalties from dozens of Swiss banks that reached non-prosecution agreements with the department in FY 2015.
The Department collected hundreds of millions of dollars in criminal fines and penalties from companies involved in conspiracies to subvert competitive markets. Over the last year, the Department collected fines greater than $10 million from nine companies involved in price-fixing conspiracies, including more than $200 million from auto parts suppliers and over $100 million from ocean freight companies. The department has also brought civil suits to stop anticompetitive behavior and collected civil penalties and disgorgement that deprived companies of the proceeds of illegal pre-merger coordination.
Former Tifton Banking Company CEO and President Enters Plea to FraudRead the Press Release
A former bank president entered a guilty plea today for his role in a bank fraud scheme in which he hid underperforming and at-risk loans from the bank and the Federal Deposit Insurance Corporation (FDIC), among others, announced Acting U.S. Attorney G.F. Peterman, III of the Middle District of Georgia.
Gary Patton Hall Jr., 49, of Tifton, Georgia, pled guilty before Senior U.S. District Court Judge Hugh Lawson in Macon, Georgia to one count of conspiracy to commit bank fraud and one count of conspiracy to commit fraud against the United States.
According to facts stipulated in the plea agreement, Mr. Hall was the president and Chief Executive Officer of Tifton Banking Company (TBC) from August 2005 until June 2010. During that time, Mr. Hall was engaged in an ongoing scheme to mislead the bank and its loan committee about loans TBC made to local individuals and businesses. As part of the scheme, Mr. Hall hid past due loans from the FDIC and the TBC loan committee, which resulted in the bank continuing to approve and renew delinquent loans and loans for which the collateral was lacking. Several of the borrowers eventually defaulted on the loans, resulting in millions of dollars in losses to TBC and others.
Mr. Hall admitted that in certain transactions in which he exercised approval authority, Mr. Hall hid his personal and business interests. In one instance, Mr. Hall approved loans to the buyer of a condominium in Panama City Beach, Florida, owned by Mr. Hall himself. In doing so, he made false representations about the loans to TBC's loan committee and failed to disclose his personal interest in the transaction. When the buyer's loan payments became delinquent, Mr. Hall hid the loans from both the FDIC and state regulators. Mr. Hall received $50,000 profit from the sale of his condominium in this transaction, the entire purchase price being funded by an unsecured loan to the buyer approved by him. The buyer eventually declared bankruptcy resulting in a loss of more than $400,000 to TBC.
Mr. Hall also admitted to making fraudulent representations which led to commercial loan guarantees being issued by the United States Small Business Administration and the United States Department of Agriculture on two other loan transactions. The loans were made by TBC, and guaranteed by the government agencies, to refinance earlier non-performing commercial loans made by TBC as part of the scheme to mislead bank regulators and hide the bank's true financial condition. Those guaranteed loans resulted in losses to the bank and the agencies of more than $2 million.
TBC was closed by the Georgia Department of Banking and Finance in November 2010 due to its poor financial condition. At that time, TBC had not repaid the $3.8 million it received from the Department of Treasury's Troubled Asset Relief Program.
Mr. Hall faces a potential statutory penalty often (10) years imprisonment and a potential fine of up to twice the loss amount, or both. Hall agreed in entering the plea that he owes restitution to the bank and federal agencies in the amount of $3,931,018 for losses suffered.
Acting United States Attorney G.F. Peterman, III said, "The greed of Mr. Hall and the abuse of the trust placed in him by the Tifton Banking Company and its depositors, investors, and employees, as well as the taxpayers of the United States, has had a deleterious effect on his community and its faith in the banking industry. Others have paid a high price for his misdeeds. Hopefully today's plea of guilty to his crimes can facilitate some degree of healing for those he has harmed."
"While the taxpayer entrusted Hall, the President and CEO of Tifton Banking Company, with 3.8 million of TARP funds, Hall abused that trust to deceive the banking regulators, the public and the bank's loan committee," said Christy Goldsmith Romero, Special Inspector General for TARP (SIGTARP). "Hall covered up past due loans to mask the poor financial condition of the bank and hid his personal and business interests in loans. His crime directly caused over 3.9 million in losses to the bank and federal agencies. Tifton Banking Company failed in 2010 causing a total loss to the taxpayer of the 3.8 million in TARP funds plus over 50 thousand dollars in missed dividends. SIGTARP and its law enforcement partners will continue to investigate vigorously the financial industry and bankers to bring accountability and justice for TARP-related crime."
Jason T. Moran, Special Agent in Charge, FDIC Office of lnspector General, stated: "The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have joined the United States Attorney's Office and our law enforcement colleagues in investigating the fraud that led to the conviction of Mr. Hall. It is particularly troubling when bank insiders violate the public trust and engage in activities that impact the safety and soundness of our nation's banks."
The case was investigated by the FBI, the Special Inspector General for the Troubled Asset Relief Program, the Small Business Administration's Office of the Inspector General, the Federal Deposit Insurance Corporation's Office of the Inspector General, the Department of Agriculture's Office of Inspector General and the Tift County Sheriff’s Office. The case is being prosecuted by Senior Trial Attorney N. Nathan Dimock of the Criminal Division's Fraud Section and Assistant U.S. Attorney Robert McCullers of the Middle District of Georgia.
"The SBA Office of Inspector General will aggressively investigate and seek criminal prosecution or civil remedies when fraud is perpetrated against the SBA by corrupt lenders," said Inspector General Peggy E. Gustafson. "SBA's loan programs are designed to provide eligible small businesses access to capital to finance and grow their businesses, not those engaged in illegal activity. I would like to thank the U.S. Attorney's Office for its dedicated leadership and professionalism throughout this investigation."
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney's Office, at (478) 621-2603.
Former Bank Employee Sentenced for Misapplying Customers' FundsRead the Press Release
Lindi D. Vickers, aged 39, of Bartow, Georgia, was sentenced today to serve forty-six (46) months in prison and pay restitution in the amount of $273,420.59 for misapplying bank customers’ funds, according to a statement made by Acting United States Attorney G. F. “Pete” Peterman, III. The sentence was handed down in Macon by the Honorable Leslie J. Abrams, United States District Judge for the Middle District of Georgia.
Ms. Vickers entered a guilty plea to one count of misapplication of funds by a bank employee. The facts stipulated in court were that between December 2010 and August 2014, Ms. Vickers, using her position as an assistant manager at State Bank and Trust Company (“State Bank”) in Macon, Georgia, transferred funds totaling $263,700.00 from customer accounts on fifty-seven (57) separate occasions. The transfers were made without the knowledge or permission of the bank customers to other accounts at State Bank under Ms. Vickers’ control, from which she could convert the money to her own use. The count of conviction involved the transfer of $15,000 from a customer’s account by Ms. Vickers on August 15, 2014.
As a result of this conviction, Ms. Vickers will be prohibited from employment by any federally insured financial institution except with the prior written consent of the Federal Deposit Insurance Corporation.
“This case involves an abuse of the trust placed in Ms. Vickers both by the bank for whom she worked as well as by the customers she was supposed to serve. Her crime is made even more reprehensible by its deliberate and long term, repeated nature,” said Acting United States Attorney Peterman.
The case was investigated by the Macon Resident Agency of the Federal Bureau of Investigation, and by the Bibb County Sheriff’s Department. Assistant United States Attorney Paul C. McCommon III prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Grady County Residents Convicted of Burning Houses for InsuranceRead the Press Release
United States Attorney for the Middle District of Georgia, Michael J. Moore, today announced the convictions on Friday of three individuals in an insurance fraud scheme in federal court in Albany, Georgia, following a three and a half week long trial.
Elbert Walker, Jr. a/k/a “Shula”, of Cairo, Georgia, was convicted of conspiracy to commit arson and mail, wire, bank and bankruptcy fraud and false declarations to a court as well as several firearms offenses. Darryl Burk, of Cairo, Georgia, was convicted of conspiracy to commit mail fraud. Shirley Burk, of Cairo, Georgia, was convicted of conspiracy to commit arson, mail fraud and false declarations to a court. The jury deliberated just over one day before returning the verdicts. Senior United States District Court Judge W. Louis Sands presided over the trial.
The evidence presented at trial showed that between 1996 and 2006, Elbert Walker, Jr. was the owner and operator of Southside Grocery in Camilla, Georgia; Northside Home Remodeling in Cairo and Moultrie, Georgia; J and J Hauling, Roofing and Construction in Cairo, Georgia; North Broad Mini Market in Thomasville, Georgia; Rainbow Club located in Pelham, Georgia; Chickasaw Club in Cairo, Georgia; and Zock Rock Publishing and Promotions, Inc. located in Cairo, Georgia. Co-defendants Darryl Burk and Shirley Denise Burk were residents of Grady County, Georgia and relatives of Elbert Walker, Jr.
The three defendants conspired to destroy residential dwellings in the Grady, Mitchell, Thomas and Colquitt County areas by intentionally setting fire to them. They then defrauded insurance providers by falsely claiming that proceeds of insurance policies should be paid to them. In addition, the trio defrauded lending institutions in order to obtain financing for residential mortgage loans for the properties and presented counterfeit and forged checks associated with the proceeds of said insurance policies. Finally, Mr. Walker and Mrs. Burk defrauded the United States Bankruptcy Court and United States District Court.
The properties involved in the conspiracy were located at 1097 Bondvilla Drive in Cairo, Georgia; 410 Oak Street in Thomasville, Georgia; 555 Baggs Ferry Road in Camilla, Georgia; 605 S. Harney Street in Camilla, Georgia; and 608 Oak Circle in Moultrie, Georgia.
The evidence showed that Mr. Walker was previously convicted of Welfare Fraud Conspiracy in New Jersey. In 2007 and 2011, agents executed search warrants at his residence in Cairo, Georgia and located multiple firearms in his possession. Some of these firearms also had obliterated serial numbers.
U.S. Attorney Michael Moore said, “This scheme had been ongoing for several years and I commend the dedicated effort of the investigators and prosecutors who brought this long-running criminal activity to a conclusion. This is an outstanding example of how cooperation between local, state and federal authorities can bring about justice that would not be achieved by any one entity acting alone.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; United States Secret Service, Georgia State Fire Marshal’s Office, Grady County Sheriff’s Office, Pelham Police Department, and Moultrie Fire Department. Assistant U.S. Attorney Leah McEwen and Special Assistant U.S. Attorney Harry Foster prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
U.S. Attorney Departure AnnouncementRead the Press Release
Michael J. Moore has announced his resignation as the United States Attorney for the Middle District of Georgia. Mr. Moore submitted his resignation to the President on Monday, November 9, 2015.
Mr. Moore was appointed to the position by President Barack Obama on October 6, 2010. Mr. Moore served on the Terrorism and National Security Subcommittee, the White Collar/Fraud Subcommittee, the Criminal Practice Subcommittee, and the Health Care Fraud Working Group of the Attorney General’s Advisory Committee.
As United States Attorney, Mr. Moore oversaw the prosecution of several matters involving national security, including export cases involving individuals who were selling military parts and supplies to terrorist organizations. He oversaw the prosecution against Con Agra, resulting in the largest criminal fine ever imposed for food safety violations. He also oversaw the prosecution of Stewart and Michael Parnell for their involvement in the deadly salmonella outbreak in connection with Peanut Corporation of America, resulting in record-setting prison sentences for their roles as corporate executives. Mr. Moore recently announced the indictment of 37 individuals for their involvement in a multi-state sex trafficking ring, an investigation that freed 15 women from sexual slavery. During his tenure, he took an aggressive approach to prosecuting violent criminals as well as corrupt public officials.
Mr. Moore was responsible for the Middle District of Georgia’s dramatic increase in health care fraud investigations and the successful pursuit of those making false or inflated claims to the United States.
Mr. Moore took an active role in civil rights matters and investigations. He oversaw numerous cases involving the brutal mistreatment of arrestees and prison inmates. He helped bring to conclusion a longstanding school desegregation order and personally mediated a landmark settlement guaranteeing adequate representation for children and individuals in the Superior Courts.
“As U.S. Attorney for the Middle District of Georgia, Michael J. Moore has been a faithful advocate for the people of his district and an outstanding guardian of our nation’s laws,” said Attorney General Loretta Lynch. “During his tenure, Michael helped lead the successful prosecution of a multi-state sex trafficking ring; held food companies accountable for knowingly selling dangerously tainted products; made Georgia’s Middle District a leader in combatting health care fraud; and promoted civil rights and equal opportunity, both within his office and in his district at large. He has fulfilled his responsibilities with tireless devotion, unimpeachable integrity, and exemplary skill, and his leadership and commitment have made a significant contribution to the cause of justice and the rule of law. I thank him for his distinguished service, and I look forward to all he will achieve in the years to come.”
“Even now, as I prepare for what is to come, I am overwhelmed with gratitude for the incredible honor of representing the United States of America. I want to thank the President for the trust he placed in me. I also thank both Attorney General Lynch and former Attorney General Holder for their leadership and friendship over these last five years. I have had the great pleasure of working alongside a staff of outstanding and dedicated public servants. I want to thank our federal, state, and local law enforcement partners. Together we have accomplished much; together we have made a difference. I will forever be grateful for the honor of serving the nation as the United States Attorney,” said United States Attorney Michael J. Moore.
29 Defendants Arrested for Human Trafficking Offenses Following Undercover InvestigationRead the Press Release
Federal authorities arrested 29 people in 13 cities across eight states Thursday on sex trafficking and related charges in a sweeping operation dubbed “Operation Safe Haven” announced United States Attorney, Middle District of Georgia Michael J. Moore.
The operation, led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), began in Moultrie, Georgia and identified a loosely affiliated organization that coordinates the movement of Hispanic females throughout the southeastern United States. The traffickers within this organization work as independent operators and coordinate the movement and delivery of women for sexual purposes.
According to a five-count indictment filed in the U.S. District Court for the Middle District of Georgia, at least one of the victims identified during the investigation was a minor when she was trafficked. Law enforcement officers rescued 15 potential victims of fraud, force or coercion, in the brothels and residences searched yesterday.
“Human sex trafficking is a cancer that we must cut out, and then aggressively fight with all of our resources. Sometimes the trafficking victims are kidnapped and forced into sexual servitude through violence. Other times the victims are lured with the promise of a better life, and then held hostage by predators who literally financially imprison them or intimidate them with threats of harm or shame to them or their families. No matter the circumstances that brought these women into sexual servitude, they are victims. And whether the weapons used by the traffickers cause physical, mental or emotional harm, they are predators, and we will track them down no matter the cost. This investigation has been an example of the outstanding cooperation between federal and state agencies. I applaud their efforts. I also want to thank my colleagues, US Attorneys George Beck, Joyce Vance and Chris Canova for their partnership and assistance,” said U.S. Attorney Michael Moore.
The indictment charges six people with conspiracy to participate in the sex trafficking of a minor. 38 people are charged with conspiracy to transport a person in interstate commerce for prostitution – nine suspects remain at large after 29 were arrested Thursday. Three of the network’s customers have been charged with promoting the prostitution.
Individuals charged with conspiracy to engage in sex trafficking of a minor face up to life imprisonment and a $250,000 fine. Individuals charged with conspiracy to transport a person in interstate commerce for purposes of prostitution and individuals charged with promoting prostitution face imprisonment up to five years and a $250,000 fine. All defendants are presumed innocent until proven guilty.
The female victims’ identities are being protected while HSI ensures they receive emergency medical assistance, food and shelter. HSI provides relief to victims of human trafficking by allowing for their continued presence in the United States during criminal proceedings. Victims may also qualify for a T visa, which is issued to victims of human trafficking who have complied with reasonable requests for assistance in investigations and prosecutions.
“As previous investigations have shown, and “Operation Safe Haven” yet again confirms, the sex trafficking of foreign women in the United States is done by loosely organized criminal networks who have little, if any regard for the women they victimize,” said Special Agent in Charge Nick S. Annan, ICE Homeland Security Investigations in Atlanta. “This investigation identified women victimized through fraud, force and coercion, including underage teens. To the criminals behind these illegal enterprises, these women are just pieces of meat used to pull a quick profit and then discarded or passed on to the next trafficker down the line.”
“Operation Safe Haven” is the first major investigation supported by the Joint Task Force for Investigations (JTF-I) since it became fully operational in July 2015. JTF-I first identified this operation as a priority investigation in January. The task force directed significant funding, intelligence, and analytical support to bolster the special agents investigating this criminal network from the HSI Savannah office.
"This operation highlights exactly what the Secretary charted us to do through these task forces,” said Dave Marwell, Director of DHS Joint Task Force – Investigations. “By strategically applying the broad resources of DHS against a priority investigation, criminal organizations don't stand a chance. We will continue to focus our efforts to ensure we are dismantling criminal organizations that traffic women into the US for the purposes of sexual slavery."
U.S. Customs and Border Protection’s (CBP) Air and Marine Operations (AMO) became involved with Operation Safe Haven in July 2014. AMO’s Jacksonville Air and Marine Branch flew more than 115 flight hours and launched 38 separate missions in furtherance of this dynamic investigation, using covert aerial surveillance to track suspects and identify multiple target locations. AMO’s presence greatly increased the situational awareness of agents on the ground. Multiple air assets and crews were committed to this investigation, including crews from AMO’s Miami, New Orleans and Houston locations.
“Collaboration is crucial in a mission of this caliber,” said Director Daniel Meagher, Air Operations at the Jacksonville Air and Marine Branch. “I am proud to say that our unique capabilities contributed to both the success of this mission and to the safety of all those involved.”
Operation Safe Haven was led by HSI-Savannah with assistance from Savannah Chatham Metropolitan P.D, Savannah State University P.D., Chatham Narcotics Team, Colquitt County SO, Pierce County SO, CBP AMO, ICE Enforcement and Removal Operations, Coast Guard Investigative Service and Gwinnett County District Attorney's Office.
Anyone who suspects instances of human trafficking is encouraged to call the HSI tip line at 1-866-DHS-2-ICE (866-347-2423) or the Human Trafficking Hotline at 1-888-373-7888. Online tips can be submitted at www.ice.gov/tipline. Anonymous calls and tips are welcome.
DEFENDANTS
HOME TOWN
AGE
(1) Jose Roberto Laines a/k/a “El Viejon”
Moultrie, GA
59
(2) Galdino Benitez
Moultrie, GA
57
(3) Carmen Michelle Pecina
Moultrie, GA
42
(4) Yamileth Hernandez a/k/a “Yamileth Portillo” and “Gabby”
(5) Maria Mercado a/k/a “Marisol”
Duluth, GA
51
(6)Heriberta Caraballo a/k/a “Cristina” and “La Columbiana”
Louisiana
55
(7) Juan Ortiz Bojorquez
Louisiana
39
(8) Juan Jose Sotelo a/k/a “Don Jose”
Prairieville, LA
(9) Antonio Flores Esparza a/k/a “Tonio”
Pensacola, FL
34
(10) Jose Trujillo a/k/a “El Gordo”
Houston, TX
53
(11) Germania Guzman a/k/a “Deborah”
Houston, TX
56
(12)Flor Torres
Columbia, SC
34
(13) Uvaldo Barrioz Perez
Moultrie, GA
37
(14) John McLeod
Moultrie, GA
33
(15) Juan Gomez
Hartsfield, GA
52
(16) Evelyn Patricia Yanes, a/k/a “Patty”
Houston, TX
42
(17) Arnold Campbell
Houston, TX
29
(18) Leti LNU
Atlanta, GA
(19) Alejandro Monterrey
Norcross, GA
53
(20) Carlos Perez a/k/a “Chema”
Atlanta, GA
(21) Bernabe Carbajal, a/k/a “El Chaparro”
Montgomery, AL
36
(22) Gloria Isabel Reyes, a/k/a ”Estela Reyes,” Gloria Dominguez”, “Dona Gloria”
Forest, MS
60
(23) Milton Ivan Dominguez
Forest, MS
43
(24) Luis Roberto Dominguez
Mississippi
41
(25) Amada Garcia a/k/a “Marlene”
Taylor, SC
46
(26) Jaime Ramirez Villeda
Winston-Salem, NC
34
(27) Ernesto Trejos Villeda
Winston-Salem, NC
32
(28) Alba Blandon a/k/a “Dona Alba”
Sunset, LA
55
(29) Mauro Lira a/k/a “Chino”
Hattiesburg, MS
24
Statesboro Man Convicted on Identity Theft ChargesRead the Press Release
Jai Devon Lee, age 39, of Statesboro, Georgia, was convicted on October 27, 2015 of identity theft, aggravated identity theft and fraud in connection with access devices following a two-day jury trial in Valdosta. Senior U.S. District Court Judge Hugh Lawson presided over the trial.
Evidence presented at trial showed that in June 2014, Mr. Lee possessed documents containing personal identifying information, including names, social security numbers, and dates of birth of more than 1000 individuals, intended to be used for fraudulent purposes. A tip was made to the U.S. Secret Service office in Albany, Georgia on June 19, 2014 informing the agency that Mr. Lee was trying to arrange to sell the personal identifying information (PII) through the source for $50 each. A meeting was arranged at a Valdosta restaurant on June 25, 2014 between Mr. Lee and a Lowndes County Sheriff’s Office detective posing as a buyer who would purchase 900 of the documents for $45,000.00. Mr. Lee arrived with a backpack containing a shoebox filed with the stolen identifying information he intended to sell, as well as a folder containing more stolen identifying information, including some personal credit reports. Mr. Lee was taken into custody at that time and charged.
U.S. Attorney Michael Moore said, “This conviction in this case is the result of the good work and cooperation between the Lowndes County Sheriff’s Office and the Secret Service. Identity theft crimes wreak havoc for those whose information is stolen. The frustration that these victims suffer in having to monitor their credit reports and request new credit cards and checking accounts is not lost on federal law enforcement agencies. We’ll continue to pursue those who commit these crimes. As we prepare for sentencing, I expect that the only number Mr. Lee has on his mind is the number of years he can expect to spend in federal prison.”
“Identity theft is an ever-increasing problem throughout the country. The U.S. Secret Service remains committed to aggressively investigating those responsible for committing identity theft for the purpose of defrauding the nation’s financial system. Victims that have their personally identifiable information (PII) stolen have their lives invaded in a way that often causes long lasting financial consequences. Along with our law enforcement partners we will continue to pursue those committing these crimes,” said Clint A. Bush, Resident Agent in Charge, Albany, Georgia Resident Office, United States Secret Service.
Sentencing will take place on February 24, 2015 at 9:30 am in Valdosta. Mr. Lee has an extensive criminal record, including nine (9) prior felony convictions, and faces a possible maximum sentence of twenty-two (22) years imprisonment.
The case was investigated by the United States Secret Service and the Lowndes County Sheriff’s Office. Assistant United States Attorney Robert D. McCullers is prosecuting the case on behalf of the Government.
Gun Charges Bring 15-Year Sentence to Ellaville Repeat OffenderRead the Press Release
Robert C. Brown, aged 45, of Ellaville, Georgia, was sentenced on October 22, 2015 to serve 15 years (180 months) in federal prison for possession of a firearm by a convicted felon. The sentence was handed down by U.S. District Court Judge Leslie J. Abrams in Albany, Georgia.
Mr. Brown pled guilty to the charge on April 20, 2015. As part of his plea, he admitted that he has three prior felony convictions in the State of Georgia: 1) aggravated assault in Sumter County on May 3, 1991; 2) burglary in Schley County on December 7, 2000; and 3) burglary in Schley County in a separate case on December 7, 2000.
On January 26, 2014, Mr. Brown sold a firearm to a local resident. During a subsequent parole search of Mr. Brown’s residence, conducted on January 28, 2014, seven firearms were found in a bedroom closet.
“Mr. Brown received this lengthy sentence because he is deemed a career criminal under federal law. Not only is he prohibited from owning firearms at all, he made matters worse by selling them, as well,” said United States Attorney Michael J. Moore.
The case was investigated by the Schley County Sheriff’s Office and the Georgia Department of Corrections. Assistant United States Attorney Jim Crane prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Drug Defendants SentencedRead the Press Release
United States Attorney for the Middle District of Georgia, Michael J. Moore, announced the Oct. 15, 2015 sentencing of Roger Ross, age 50 of Miami, Florida and Odell Cleveland, age 47, of Cairo, Georgia. Mr. Ross was sentenced to serve a term of 360 months imprisonment followed by a term of supervised release of 8 years. Mr. Cleveland was sentenced to serve a term of 63 months imprisonment followed by a term of supervised release of 3 years. The two men were convicted of Conspiring to Distribute Cocaine and Crack Cocaine and multiple counts of Using a Communication Facility in Furtherance of Drug Trafficking Activity.
Mr. Ross was determined to be a Career Offender based on his prior convictions for: 1) Possession of Cocaine with the Intent to Distribute on December 20, 1984, in the Superior Court of Thomas County, Georgia; 2) Sale of Cocaine –two counts- on March 30, 1988, in the Superior Court of Grady County, Georgia; 3) Conspiracy to Possess with Intent to Distribute Cocaine on May 8, 1998, in the United States District Court for the Southern District of Florida, Miami Division and 4) Conspiracy to Possess with the Intent to Distribute Cocaine Base on July 21, 1999, in the United States District Court for the Middle District of Georgia.
“We will continue to use our federal resources to clean up our communities and give drug dealers a new address – the federal prison,” said U.S. Attorney Moore. “These convictions were the result of the strong collaborative efforts of our local, state, and federal agencies. They are to be commended for their good work.”
The case was investigated by the Drug Enforcement Administration, Columbus, GA and Miami, FL, the Thomas County Vice/Narcotics Squad, Cairo Police Department, Pelham Police Department and the Georgia State Patrol. Assistant U.S. Attorney Leah E. McEwen is prosecuting the case for the Government.
For additional information, please contact Pamela Lightsey at (478) 621-2603.
Georgia Man Pleads Guilty to Operating Unlicensed Money Transmitting BusinessRead the Press Release
WASHINGTON – A Columbus, Georgia, resident pleaded guilty to one count of operating an unlicensed money transmitting business, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia announced today.
According to court documents, between February 2013 and March 2014, Sawan Shah, aka Sunny, 43, owned, operated and managed several money transmitting companies in the Columbus area. Shah offered check-cashing services to the public, including cashing checks that exceeded $1,000. Shah knew that he and his companies were required to be registered with Financial Crimes Enforcement Network (FinCEN) and with the state of Georgia. Neither Shah nor any of the businesses he controlled were registered with FinCEN or the state of Georgia as a money transmitting business or as a check cashier.
Several individuals approached Shah about cashing tax refund checks that were issued in the names of other individuals. Shah agreed to do so and did not require proof of identification for the individuals listed on the checks. Shah charged fees between 10 and 30 percent of the check’s worth, due to his knowledge that the checks were involved in tax fraud. In 2013 and 2014, Shah cashed approximately 567 federal tax refund checks that totaled $1,357,476.18. Those refund checks were the result of fraudulent claims for refund submitted in the names of stolen identities.
A sentencing hearing has been scheduled for Jan. 26, 2016. Shah faces a statutory maximum sentence of five years in prison. Shah agreed to a forfeiture order in the amount of $1,357,476.18.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Moore commended special agents of Internal Revenue Service-Criminal Investigation and the U.S. Secret Service, who investigated the case, and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts against stolen identity tax refund fraud may be found on the division’s website.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Bainbridge Man Pleads Guilty to Bank RobberyRead the Press Release
Ryan O. Harris, age 22, of Bainbridge, Georgia, pled guilty October 13, 2015 to one count of bank robbery before Honorable Leslie J. Abrams in Albany, Georgia, United States District Judge, Albany, Georgia.
The following facts supported the plea of guilty: On July 16, 2015, at about 9:45 a.m., the defendant, Ryan O. Harris, entered the Family Bank, a federally insured financial institution, located on E. College Street, in Bainbridge, Georgia. Harris went to a customer island and began writing something. One of the tellers then asked Harris if he needed any assistance. Thereafter Harris turned and left the bank without conducting any banking business. This incident was recorded on the video surveillance tape in the bank.
At about 1:30 p.m., Harris re-entered Family Bank, dressed in the same clothes and carrying a black backpack. Harris approached the teller counter and stated, “Fill it up, I ain’t got all day,” to the teller. He stated to another teller, “You, too,” meaning for the second teller to assist filling the back pack with money. Harris then displayed a pistol to the tellers. This pistol was later recovered and determined to be a spray painted BB gun.
The tellers filled the backpack with currency, and in addition with bait money and dye packs. Harris then ran out of the bank. All of the above was captured on surveillance video.
The bank employees called 911. Law enforcement responded and began looking for a suspect in the vicinity. A Bainbridge Public Safety Officer spotted Harris fleeing on foot and gave chase briefly before Harris eluded him.
Harris was apprehended a short time later by other officers and taken into custody. The officers read Harris his Miranda rights. One officer asked Harris why he robbed the bank, to which Harris replied that he was tired of being broke. An officer then asked, “So you decided to rob a bank?” Harris replied, “Yeah.”
Officers recovered the black backpack containing the money, now-exploded dye packs and bait bills, and the BB pistol all in close vicinity to the place where Harris was apprehended.
The case was investigated by the Bainbridge Department of Public Safety and the Federal Bureau of Investigation. Assistant United States Attorney Jim Crane prosecuted the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Fitzgerald Resident Convicted of Embezzling More Than $79,000 in Social Security BenefitsRead the Press Release
Larry T. Hyman, age 59, of Fitzgerald, Georgia, was convicted, following a 3-day jury trial, of conspiracy to embezzle government monies, on October 7, 2015, in the United States District Court in Albany. Senior United States District Court Judge W. Louis Sands presided over the trial.
Codefendant Gussie Scott pleaded guilty to the same charge on June 9, 2014 and is awaiting sentencing.
Mr. Hyman and Ms. Scott were charged with conspiracy to embezzle $79,826 in Social Security benefits from a deceased person, “W.B.”. For a period of almost eight years after W.B.’s death in 2005, Mr. Hyman, who had his name added as a joint signatory to W.B.’s Bank of America account, continued to withdraw and spend W.B.’s Social Security benefits.
The evidence presented at trial showed that in mid-November 2013 a representative of the Social Security Administration sent letters and made phone calls to W.B. in an attempt to verify his status. Ms. Scott spoke by telephone to the representative from the Social Security Administration. She falsely stated that her name was “Cindy Jones” and that she was a niece of W.B. Ms. Scott further stated that W.B. was not at home, but that she would have him call the Social Security representative back later in the day. The government’s evidence at trial showed that Mr. Hyman knew of Ms. Scott’s call to the Social Security Administration and that he continued to make ATM withdrawals from W. B.’s account after the call.
U.S. Attorney Michael Moore said, “Mr. Hyman stole money intended as benefits for those who spent a lifetime investing in the Social Security program. He enriched himself at the expense of our senior citizens and children and families with severe medical needs and issues. Social security is intended to provide succor and support for the deserving and the needy, not the greedy and avaricious. My office shall continue to work hand in hand with the Social Security Administration in hand to bring to justice those like Mr. Hyman, who steal from the deserving to enrich themselves.”
“The Social Security Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public’s trust by failing to report Social Security beneficiary deaths and continuing to receive the deceased’s benefits. I’m grateful that the U.S. Attorney’s Office shares our determination to protect the integrity of the SSA’s programs for those who rely on them now and into the future,” stated Special Agent-in-Charge Margaret Moore-Jackson.
“The U.S. Secret Service takes seriously the theft of government monies and will take appropriate investigative steps when such acts are committed against the U.S. Treasury. This cooperative effort between the Social Security Office of the Inspector General, the U.S. Secret Service, and the United States Attorney’s Office tells those who may commit such acts that there is always a price to pay for defrauding the hardworking tax payers of this nation,” said Resident Agent In Charge Clint Bush.
The case was investigated by the Social Security Office of the Inspector General and the United States Secret Service. Assistant U.S. Attorney Jim Crane prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
31 Defendants Charged with Drug Trafficking, Firearms and Money Laundering Offenses Following Undercover InvestigationRead the Press Release
United States Attorney for the Middle District of Georgia, Michael J. Moore, announced today that an indictment was returned by a grand jury sitting in the United States District Court in Macon, Georgia on September 9, 2015, which charged 31 defendants with drug trafficking, firearms and money laundering offenses. During “Makon Money”, Federal agents, assisted by state and local law enforcement officers, investigated a large scale drug organization based in Macon, Georgia. Over the course of the investigation, federal agents seized large amounts of cocaine, marijuana, and cash.
Penalties for the charges range from a mandatory minimum 5 years up to life in prison without parole. Fines range from $250,000 to 10 million dollars.
United States Attorney Michael Moore stated, “This drug distribution conspiracy was literally responsible for putting tons of poison on the streets of Middle Georgia. Just like we have done here, my office will use all of our resources to make sure that drug dealers go to prison.”
Thomas Noyes, Inspector in Charge of the Charlotte Division stated, “Postal Inspectors’ primary objectives are to rid the mail of illicit drug trafficking, preserve the integrity of the mail, and most important, provide a safe environment for postal employees and the American public. This is an excellent example of partnership between law enforcement agencies.”
“IRS Criminal Investigation is proud to be an integral part of this multi-agency OCDETF investigation,” stated Veronica F. Hyman-Pillot, Special Agent in Charge of the Atlanta Field Office. “It is our goal as financial investigators to assist our law enforcement partners in dismantling drug trafficking organizations at every level. IRS-CI has the financial investigators and expertise that is critical to locating the money and prosecuting the offenders.”
A copy of the indictment is attached. The indictment is only an allegation of criminal conduct. Each person is presumed innocent until and unless proven guilty in a court of law.
The case was investigated by the US Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), the Internal Revenue Service – Criminal Investigation (IRS-CI), the U.S. Department of Homeland Security, the Bibb County Sheriff’s Office, and the Oconee Regional Drug Task Force. Assistant U.S. Attorneys Charles Calhoun and Beth Howard are prosecuting the case for the Government.
For additional information, please contact Pamela Lightsey at (478) 621-2603.
DEFENDANTS
AGE
HOMETOWN
1) JAMES MAXWELL, aka SONNY SPOON
42
Lizella, GA
2) IRA CHRISTOPHER JACKSON
31
Missouri City, TX
3) FREDERICK CARTER
38
Pearland, TX
4) ALEJANDRO SOLORIO
37
Arcata, CA
5) RICHARD HARVEY
26
Arcata, CA
6) CYRON NORMAN
29
Walnut Creek, CA
7) ROME OWENS
24
Arcata, CA
8) SHUKREE SIMMONS
37
Atlanta, GA
9) BERNARD ENGRAM
49
Macon, GA
10) JERIMEE PARKER
37
Macon, GA
11) JOSEPH PIERRE BROWN
40
Macon, GA
12) MICHAEL THOMPSON
42
Macon, GA
13) DONZELL HUDSON
44
Oglethorpe, GA
14) BRIONI JOHNSON
34
Macon, GA
15) CHANCELLOR LUCEAR
34
Macon, GA
16) ALFRED BROWN
32
Macon, GA
17) ADRIAN GREEN
31
Hawkinsville, GA
18) JAMES FAULKES
36
Macon, GA
19) MAURICE PEARSON
36
Macon, GA
20) VONTRAY JOHNSON
31
Macon, GA
21) RODERICK PAUL
43
Cordele, GA
22) WILLIAM STORY
38
Macon, GA
23) KENNA MIDDLETON
34
Macon, GA
24) SHANNA LEWIS
35
Macon, GA
25) AARON HALL
33
Macon, GA & Houston, TX
26) TYREE WALKER
42
Macon, GA
27) CHRISTOPHER DARKINS
41
Houston, TX
28) WILLIAM SHAMONE LEWIS
36
Macon, GA
29) KELLY TIMMS
Unknown
Jackson, GA
30) CAMERON KELLEY
34
Houston, TX
31) JARVIS SMITH
25
Macon, GA
Albany Man Sentenced to 27 Years for Trafficking MethamphetamineRead the Press Release
Kenneth E. Thornton, age 36, of Albany, Georgia was sentenced September 24, 2015 to 324 months (27 years) imprisonment for Conspiracy to Possess with Intent to Distribute Methamphetamine. The sentence was handed down by the Honorable W. Louis Sands, United States District Court Judge, in Albany, Georgia.
During the investigation, authorities determined that Mr. Thornton previously owned a sheet metal and air conditioner repair business in the Albany/Leesburg area. In 2013, he began to establish a wholesale network for the distribution of methamphetamine, operating out of Panama City, Florida. He had a source of supply in the Atlanta, Georgia area, and, by utilizing a group of associates, distributed methamphetamine in the Albany, Georgia and Panama City, Florida areas. Mr. Thornton became a significant trafficker, utilizing couriers and vehicles equipped with lock boxes secured to the underside of vehicles, in order to transport the drugs.
He pled guilty on April 9, 2015 and was held accountable for 15 to 45 kilograms of methamphetamine.
“Through the strong partnerships between state, local, and federal agencies Mr. Thornton’s drug distribution network was dismantled,” said United States Attorney Michael Moore. “Methamphetamine is a scourge in our communities, and we must continue to do everything we can to stop its distribution at the source.”
Investigating agencies include the Drug Enforcement Agency--Columbus, GA and Panama City, FL, the Georgia Bureau of Investigation -- Sylvester, the Bureau of Alcohol, Tobacco, Firearms, and Explosives--Columbus, and the Sheriff’s Departments in Coweta, Lee and Quitman counties in Georgia and Bay County Florida. Assistant United States Attorney Leah McEwen prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Two South Georgia Residents Sentenced on Dog Fighting and Firearms ChargesRead the Press Release
United States Attorney Michael J. Moore announced today that Raymond Lee Hendrix a/k/a “Georgia Lee” and “Lee”, of Echols County, Georgia; and Willie Henderson, of Lowndes County, Georgia, were sentenced in United States District Court in Valdosta to by the Honorable Hugh Lawson, Senior District Court Judge.
Mr. Hendrix pled guilty on June 25, 2015 to one count of conspiracy to travel in interstate commerce in aid of unlawful activities and to sponsor and exhibit a dog in an animal fighting venture. He received a sentence of 16 months imprisonment.
Mr. Henderson entered a plea of guilty to one count of conspiracy to travel in interstate commerce in aid of unlawful activities and to sponsor and exhibit a dog in an animal fighting venture and to one count of possession of a firearm by a convicted felon on June 25, 2015. Mr. Henderson was sentenced to the maximum term of imprisonment of 60 months on Count One followed by a sentence of 63 months imprisonment on Count Two with 33 months, to be served consecutively, for a total sentence of 93 months imprisonment.
In their plea agreements, Mr. Hendrix and Mr. Henderson admitted that between January 2008 and August 2013, they operated Clyattville Kennels, maintaining and training American Pit Bull Terriers for other dog fighters in exchange for a “tipping fee”, breeding and registering American Pit Bull Terriers and participating in organized dog fight gambling events throughout the Southeast. In addition, Mr. Henderson admitted to possessing a rifle and shotgun, after having been convicted of a felony. A copy of each plea agreement is attached.
United States Attorney Michael Moore stated, “Today’s sentencing establishes that ‘man’s best friend’ always deserves humane and respectful treatment. Perhaps the time these defendants spend locked in cages will send a strong message that cruel treatment of animals will never be tolerated.”
Echols County Sheriff Randy Courson stated, “This case has been years in the making with a lot of hard work and many man hours of agencies working together to eliminate the cruel and inhumane treatment of these animals for profit.”
The case resulted from an inter-agency investigation conducted by the Federal Bureau of Investigation, United States Department of Agriculture – Office of Inspector General, Echols County (Georgia) Sheriff’s Office, Auburn (Alabama) Police Department, Bainbridge (Georgia) Department of Public Safety, Alabama Alcoholic Beverage Control Board, Lee County (Georgia) Sheriff’s Office along with assistance from the Humane Society of the United States and the American Society for the Prevention of Cruelty to Animals. Assistant United States Attorney Julia C. Bowen prosecuted the case for the Government.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office at (478) 621-2603.
Former U.S. Army Specialist Sentenced to 30 Months in Prison for Taking Bribes While Deployed in AfghanistanRead the Press Release
WASHINGTON – A former specialist with the U.S. Army stationed at Forward Operating Base (FOB) Gardez, Afghanistan, was sentenced today to 30 months in prison for accepting a $20,000 bribe from a truck driver in exchange for allowing him to take thousands of gallons of fuel from the base.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Brian Stretch for the Northern District of California and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.
Anthony Don Tran, 28, of Stockton, California, pleaded guilty on June 9, 2015, to bribery of a public official. In addition to imposing the prison term, U.S. District Judge Beth L. Freeman of the Northern District of California ordered Tran to pay $69,000 in restitution and to forfeit a vehicle that he purchased with bribe proceeds as well as $11,437.
In connection with his guilty plea, Tran admitted that, in exchange for approximately $20,000 in cash, he permitted a local Afghan fuel truck driver to depart FOB Gardez without downloading roughly 12,000 gallons of fuel purchased by the U.S. government and designated for the base. Tran admitted that, on May 21, 2013, after returning to the U.S., he used the cash to purchase a 2010 Dodge Challenger.
Tran also admitted to accepting at least $1,000 in cash from another member of his unit, former U.S. Sergeant Seneca Darnell Hampton, 31, of Columbus, Georgia, in exchange for Tran’s agreement not to report Hampton or former U.S. Sergeant First Class James Edward Norris, 33, of Fort Irwin, California, for also taking cash bribes in exchange for fuel. Both Hampton and Norris previously pleaded guilty to one count of conspiracy to commit bribery of a public official and one count of money laundering. Hampton was sentenced to 24 months in prison, and Norris was sentenced to 51 months in prison. In addition, both Hampton and Norris were ordered to pay restitution and to forfeit vehicles purchased with bribe proceeds.
The case was investigated by the U.S. Army Criminal Investigation Command, the Office of the Special Inspector General for Afghanistan Reconstruction, the Defense Criminal Investigative Service and the Defense Contract Audit Agency’s Investigative Support Division. The case is being prosecuted by Trial Attorneys John Keller and Sean Mulryne of the Criminal Division’s Public Integrity Section and the U.S. Attorney’s Offices of the Northern District of California and Middle District of Georgia.
Former Peanut Company President Receives Largest Criminal Sentence in Food Safety Case; Two Others Also Sentenced for Their Roles in Salmonella-Tainted Peanut Product OutbreakRead the Press Release
WASHINGTON – Two former officials of and one broker for the Peanut Corporation of America (PCA) were sentenced to prison today in Albany, Georgia, for their roles in a conspiracy to defraud their customers by shipping salmonella-positive peanut products before the results of microbiological testing were received and falsifying microbiological test results, the Department of Justice announced today.
Stewart Parnell, 61, of Lynchburg, Virginia, the former owner and president of PCA, was sentenced by Senior U.S. District Court Judge W. Louis Sands of the Middle District of Georgia to serve 336 months in prison to be followed by three years of supervised release. Michael Parnell, 56, of Midlothian, Virginia, who worked at P.P. Sales and was a food broker who worked on behalf of PCA, and is Stewart Parnell’s brother, was sentenced to serve 240 months in prison to be followed by three years of supervised release. Mary Wilkerson, 41, of Edison, Georgia, who held various positions at PCA’s Blakely, Georgia, plant including receptionist, office manager and quality assurance manager, was sentenced to serve 60 months in prison to be followed by two years of supervised release. Judge Sands will issue a restitution order at a later date.
The Parnell brothers were convicted by a federal jury on Sept. 19, 2014, of multiple counts of conspiracy, mail and wire fraud and the sale of misbranded food. Stewart Parnell was also convicted of the introduction of adulterated food into interstate commerce. Stewart Parnell and Mary Wilkerson were also convicted of obstruction of justice. Stewart Parnell was found guilty of all but one of the 68 felony counts with which he was charged on Feb. 15, 2013.
Expert evidence at trial showed that tainted food led to a salmonella outbreak in 2009 with more than 700 reported cases of salmonella poisoning in 46 states. According to the Centers for Disease Control and Prevention (CDC), based on epidemiological projections, that number translates to more than 22,000 total cases including nine deaths. The court found that the evidence presented at trial linked Stewart and Michael Parnell’s conduct, and specifically PCA’s contaminated peanut products, to the victims’ illnesses. The court also found that steps taken by the CDC to link reported illnesses to the specific strain of salmonella found in PCA products established that Stewart and Michael Parnell’s conduct was the proximate cause of the victims’ illnesses.
“Americans should be able to trust that the food we buy for ourselves and our families is safe,” said Acting Associate Attorney General Stuart F. Delery. “The sentences handed down today to officials associated with the Peanut Corporation of America demonstrate the consequences for those whose criminal actions threaten that trust by introducing contaminated food into the marketplace. Our prosecution is just one more example of the forceful actions that the Department of Justice, with its agency partners, takes against any individual or company who compromises the safety of America’s food supply for financial gain.”
The government presented evidence at trial to establish that Stewart Parnell and Michael Parnell – with former PCA operations manager Samuel Lightsey, 50, and Daniel Kilgore, 46, both of Blakely – participated in several schemes by which they defrauded PCA customers and jeopardized the quality and purity of their peanut products. Specifically, the government presented evidence that the defendants misled customers about the presence of salmonella in their products. For example, the Parnells, Lightsey and Kilgore fabricated certificates of analysis (COAs) accompanying various shipments of peanut products. COAs are documents that summarize laboratory results, including test results concerning the presence or absence of pathogens in food. According to the evidence, on several occasions, the Parnells, Lightsey and Kilgore participated in a scheme to fabricate COAs that stated that the food at issue was free of pathogens when in fact there had been no testing of the food or tests had revealed the presence of pathogens.
The government also presented evidence that when the U.S. Food and Drug Administration (FDA) officials visited PCA’s Blakely plant to investigate the outbreak, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to questions posed by those officials.
“Today’s sentencing sends a powerful message to officials in the food industry that they stand in a special position of trust with the American consumer, and those who put profit above the welfare of their customers and knowingly sell contaminated food will face serious consequences,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work aggressively with its partners to ensure that the American people are protected from food that is adulterated or misbranded within the meaning of the Food, Drug, and Cosmetic Act and pursue any person who fails to abide by the vital food safety protections in the law. We are dedicated to using all the tools that we have at our disposal to ensure that the processors and handlers of our food have the public’s safety forefront in their minds.”
“The sentence that was handed down today means that executives will no longer be able to hide behind the corporate veil,” said U.S. Attorney Michael J. Moore of the Middle District of Georgia. “The tragedy of this case is that at a peanut processing plant in Middle Georgia, protecting the public lost out to increasing of profits. This case was never just about shipping tainted peanut product; it was about making sure individual wrong doers were held accountable and the losses suffered by the victims and their families are never forgotten.”
Judge Sands took into account the fraud loss of PCA’s corporate victims when imposing today’s sentence. The court found that Stewart Parnell and Mary Wilkerson should be held accountable for more than $100 million but less than $200 million in losses, and Michael Parnell should be held accountable for more than $20 million but less than $50 million in losses. The court also found the government established evidence that Stewart Parnell and Mary Wilkerson should be accountable for harming more than 250 victims, and Michael Parnell should be accountable under federal sentencing guidelines for harming more than 50 victims. The court additionally found that the Parnells should have known that their actions presented a reckless risk of death or serious bodily injury.
“At the outset, the FBI saw this case as a serious breach of the public’s trust by a corporation and its officers who were expected to comply with the various regulations that would ensure their products safe for consumption,” said Special Agent in Charge J. Britt Johnson of FBI Atlanta Field Office. “They did not and lives were lost. The lengthy prison sentences handed down today in federal court clearly reflects the magnitude of the criminal conduct of these corporate officers and it is hoped that these sentences can provide some solace to those victims or their families who suffered so much from that criminal conduct and waited so long for justice.”
“Americans expect and deserve the highest standards of food safety and integrity,” said Dr. Stephen Ostroff, FDA Acting Commissioner. “Those who choose profits over the health and safety of U.S. consumers are now on notice that the FDA, working with the Department of Justice, will strive to use the full force of our justice system against them.”
Lightsey and Kilgore are scheduled to be sentenced on Thursday, Oct. 1, in Albany.
The case was prosecuted by Trial Attorneys Patrick Hearn and Mary M. Englehart of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Alan Dasher of the Middle District of Georgia. Acting Associate Attorney General Delery, Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Moore thank the investigative efforts of the FBI and FDA’s Office of Criminal Investigations.
Retired Railroad Worker Sentenced for Disability FraudRead the Press Release
David E. Hunnicutt, age 58, of Macon, Georgia was sentenced September 16, 2015 by the Honorable Marc T. Treadwell, United States District Judge, in Macon, Georgia. Mr. Hunnicutt was sentenced to 12 months and a day imprisonment, he was ordered to pay $273,060.52 in restitution to the Railroad Retirement Board (RRB), and he was ordered to serve one (1) year on supervised release following imprisonment. On April 2, 2015, Hunnicutt pled guilty to an indictment which charged him with the offense of “False Statement,” a violation of 18 U.S.C. § 1001(a)(3). The maximum penalties for violation of this law are five (5) years imprisonment, a $250,000 fine, three (3) years supervised release, and a $100 mandatory assessment fee.
The RRB takes the place of Social Security for railroad workers and their families. Mr. Hunnicutt was employed as a brakeman for Norfolk Southern Corporation railroad from September 1979 through December 2001. On August 8, 2002, he filed for disability with the RRB. He reported no self-employment to the RRB on his application. At the time of his application, Hunnicutt was informed that he had a responsibility to report earnings and employment to the RRB, and he was informed that it is a crime to make a false statement to the RRB in order to receive disability benefits. Mr. Hunnicutt was granted disability and received payments from the RRB beginning September 2002 through 2013.
An investigation by the RRB Office of Inspector General established that Hunnicutt was the incorporator of Mid-Georgia Tractor Service, Inc. (MGTS) in 1997. MGTS was a domestic profit corporation, the business of which was landscape design, lawn maintenance, and irrigation. In addition to being the incorporator of this business, evidence showed that from 1997 through 2013 Hunnicutt was an active participant in the business, that he listed himself as owner of the business on a company internet website, that he was an officer and agent of the business, and that he wrote checks on the business account and received income from the business. On January 16, 2012, Hunnicutt filed a “Continuing Disability Report” with the RRB in which he falsely stated to the Board that he had no self-employment from June 1, 2002 through January 16, 2012.
“Disability payments are a great benefit for those who need them, often meaning the difference between making ends meet and facing personal financial ruin,” United States Attorney Michael Moore said. “The system is geared to help those who need it, not serve as a means of additional income for those who are not truly disabled. Mr. Hunnicutt failed to be honest about his situation. These types of claims put the disability compensation program in jeopardy by draining funds meant to help those who need it. In the Middle District of Georgia we will continue to use our resources to investigate and prosecute fraud with the hopes that these programs continue to be available for those who lawfully seek assistance.”
The case was investigated by the Railroad Retirement Board, Office of the Inspector General. Assistant United States Attorney Paul McCommon prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Former Middle School Teacher Sentenced for Child PornographyRead the Press Release
Former teacher Brian O. Brannen, age 42, formerly of Albany, Georgia was sentenced September 17, 2015 by the Honorable W. Louis Sands, United States District Judge in Albany, Georgia. Mr. Brannen was sentenced to 78 months imprisonment for possession of child pornography and will be required to register as a sex offender.
On April 3, 2014, a young woman who had been staying with Mr. Brannen reported to law enforcement that she had seen child pornography and other pornographic images on his computer. The Dougherty County Sheriff’s Office executed a search warrant at Mr. Brannen’s apartment and discovered the images of child pornography located in a folder on the desktop computer. These files had names and descriptions that were extremely graphic and correctly identified the files as depictions of child pornography.
While under pretrial supervision, Mr. Brannen was arrested by Dooly County Sheriff’s Office for Terroristic Threats and Acts on September 3, 2014. Based on his arrest, his pretrial bond was revoked. He has remained in custody since that time.
“Child pornography offenses are always disturbing because the child victims are robbed of their innocence and dignity at a tender age,” United States Attorney Michael J. Moore said. “This case is made even worse because Mr. Brannen maintained this material where it was seen by a young woman staying in his home and because he abused the privilege of being allowed to be out on bond awaiting trial. His inability to conform his conduct to what our society rightfully expects certainly warrants the sentence imposed.”
The case was investigated by the Dougherty County Sheriff’s Office together with the Department of Homeland Security. Assistant United States Attorney Jim Crane prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Two Contractors and One Former Civilian Employee Sentenced in Bribery Scheme at Georgia Military BaseRead the Press Release
The Defendants Received 22 Years, 10 Years and Five Years in Prison Respectively
A former civilian employee and a former contractor of the Marine Corps Logistics Base (MCLB) in Albany, Georgia, as well as one outside contractor were sentenced today to prison terms for bribery and fraud arising from their handling of military trucking contracts and theft of surplus military equipment.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.
Christopher Whitman, 48, of Sylvester, Georgia, co-owner of United Logistics, an Albany-based trucking company and freight transportation broker, was sentenced to 22 years in prison for his conviction of 43 counts of honest services wire fraud, five counts of bribery, five counts of obstructing justice and one count of theft of government property. Shawn McCarty, 36, of Albany, Georgia, a former employee at the MCLB-Albany, was sentenced to 10 years in prison for his conviction of 15 counts of honest services wire fraud, one count of bribery and one count of obstructing justice. Bradford Newell, 43, of Sylvester, a former contractor at the MCLB-Albany, was sentenced to five years in prison for his conviction of 13 counts of honest services wire fraud, one count of bribery, and one count of theft of government property. All three were found guilty by a jury in the Middle District of Georgia on March 3, 2015, following a five-week trial.
In addition to imposing the prison terms, the court ordered each defendant to forfeit assets reflecting losses to the government attributable to the bribery and fraud schemes. Whitman was ordered to forfeit $18,860,313.75; McCarty was ordered to forfeit $15,410,151.55; and Newell was ordered to forfeit $513,600. Whitman was specifically ordered to surrender assets derived from the schemes, including more than 100 parcels of real property, several boats and vehicles, and rental income estimated to be worth more than $14 million.
According to the evidence presented at trial, between 2008 and 2012, Whitman paid more than $800,000 in bribes to three former officials of the Defense Logistics Agency (DLA) at the MCLB-Albany, including McCarty, to obtain commercial trucking contracts from the base. The evidence showed that contracts included unnecessary costly provisions, such as expedited service, expensive trailers and exclusive use (i.e., a requirement that freight be shipped separately from other equipment). Evidence presented at trial and in a post-trial forfeiture hearing established that Whitman’s company grossed more than $37 million, and resulted in government losses and an improper benefit to Whitman of more than $20 million.
The evidence further demonstrated that Whitman paid nearly $200,000 in bribes to Newell and the former inventory control manager of the Distribution Management Center at MCLB-Albany, both of whom used their official positions to help Whitman steal from the base more than $1 million in surplus military equipment, including bulldozers, cranes and front-end loaders. According to the trial evidence, in exchange for the bribe payments, Newell and the inventory control manager removed the surplus items from Marine Corps inventory and arranged to have them transported off the base by Whitman’s company. The evidence showed that, after having the equipment refurbished, Whitman sold it to private purchasers.
Five other individuals have pleaded guilty to their roles in the corruption and fraud schemes. In October 2013, Kelli Durham, the former manager of Whitman’s company, pleaded guilty to conspiracy to commit wire fraud, admitting to intentionally overbilling the United States for services the company did not perform, resulting in losses ranging from $7 million to $20 million. In May 2013, Mitchell Potts and Jeffrey Philpot pleaded guilty to bribery for collectively accepting more than $700,000 in bribes from Whitman. In February 2013, Shelby Janes pleaded guilty to bribery for receiving nearly $100,000 in bribes from Whitman. These defendants have not yet been sentenced. In February 2014, C.W. Smith, a Whitman associate who helped arrange the sale of the surplus military equipment Whitman stole from the base, pleaded guilty to theft of government property.
The case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County, Georgia, District Attorney’s Office; Defense Criminal Investigative Service; DLA Office of the Inspector General; and the Department of Labor Office of the Inspector General. The case is being prosecuted by Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The forfeiture is being handled by Assistant Deputy Chief Darrin McCullough of the Asset Forfeiture and Money Laundering Section and the U.S. Attorney’s Office of the Middle District of Georgia.
Columbus Man Convicted on Drug & Firearm ChargesRead the Press Release
Arsenio Brundidge, age 28, of Columbus, Georgia was convicted following a jury trial Sept. 10, 2015 on one count of cocaine possession and one count of possession of a firearm by a convicted felon. Chief U.S. District Court Judge Clay D. Land was the presiding judge.
The evidence showed that on November 3, 2014, Deputy Sheriff Clinton Powell of the Muscogee County Sheriff’s Office attempted to serve Brundidge with outstanding arrest warrants. Brundidge attempted to flee, but was captured by Powell and other deputies after a brief chase. During his flight, Brundidge discarded a weapon, which was recovered and found to be a fully loaded Jiminez Arms 9 mm handgun. The weapon had been reported as stolen approximately one month earlier. At the time of his arrest, Brundidge was also found to be in possession of a small amount of both marijuana and cocaine.
Brundidge has an extensive criminal record, including seven prior felony convictions. Sentencing has been set for December 15, 2015.
The case was investigated by the Muscogee County Sheriff’s Office, the Columbus Police Department, and Special Agents Will Panoke and Brian Queener of the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Mel Hyde is prosecuting the case on behalf of the Government.
Georgia Hospital System and Physician to Pay More Than $25 Million to Settle Alleged False Claims Act and Stark Law ViolationsRead the Press Release
Columbus Regional Healthcare System (Columbus Regional) and Dr. Andrew Pippas have agreed to pay more than $25 million to resolve allegations that they violated the False Claims Act by submitting claims in violation of the Stark Law. Today’s settlement also resolves allegations that Columbus Regional and Pippas submitted claims for payment to federal health care programs that misrepresented the level of services they provided. Under the settlement agreement, Columbus Regional has agreed to pay $25 million, plus additional contingent payments not to exceed $10 million, for a maximum settlement amount of $35 million, and Pippas has agreed to pay $425,000.
“The maximum amount of this settlement, some $35 million, is appropriate given the number of alleged violations involving the False Claims Act and the Stark Act,” said U.S. Attorney Michael Moore of the Middle District of Georgia. “Access to health care is on everyone’s mind, especially with respect to rural communities. The type of conduct alleged in this case puts that access at risk. This settlement reflects on the one hand, the Department of Justice’s commitment to make sure that hospitals and physicians who commit violations of federal law are held to account, and on the other hand, especially with the requirement of the monitoring agreement, makes sure that we continue to have appropriately functioning health care providers accessible to the wide array of communities they serve.”
The Stark Law prohibits physician referrals of certain health services for Medicare and Medicaid patients if the physician has a financial relationship with the entity to which he or she refers the patient. The United States alleged that between 2003 and 2013, Columbus Regional provided excessive salary and directorship payments to Pippas that violated the Stark Law.
The United States also alleged that from May 2006 through May 2013, Columbus Regional submitted claims to federal health care programs for services at higher levels than supported by the documentation, and between 2010 and 2012, they submitted claims to federal health care programs for radiation therapy at higher levels than the therapy that was provided.
Of the $25.425 million that Columbus Regional and Pippas have agreed to pay to resolve their respective civil claims, they will pay $24,666,040 to the federal government for federal healthcare program losses and $758,960 to the state of Georgia for the state share of its Medicaid losses.
Also as part of the settlement, Columbus Regional will enter into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services-Office of the Inspector General (HHS-OIG) that requires Columbus Regional to implement measures designed to avoid or promptly detect future conduct similar to that which gave rise to this settlement.
“Increasing referrals by self-dealing and violating the Stark statute – as the government contended in this case – undermines impartial medical judgment at the expense of patients and taxpayers,” said Special Agent in Charge Derrick L. Jackson of HHS-OIG. “Charging federal health care programs for pricier services than those actually provided will not be tolerated.”
The settlements resolve allegations filed in two lawsuits by Richard Barker, a former Columbus Regional executive, in federal court in Columbus, Georgia. The lawsuits were filed under the qui tam, or whistleblower, provisions of the federal False Claims Act and the Georgia False Medicaid Claims Act, which permit private individuals to sue on behalf of the federal and state governments, respectively, for false claims and to share in any recovery. Mr. Barker’s share of the settlement has not yet been determined.
This illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.9 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The civil settlement was handled by the U.S. Attorney’s Office of the Middle District of Georgia and the Civil Division’s Commercial Litigation Branch. These matters were investigated by HHS-OIG’s Office of Investigations, with assistance from the HHS Office of Counsel to the Inspector General and Office of General Counsel and Center for Medicare and Medicaid Services, and the state of Georgia’s Medicaid Fraud Control Unit.
The civil lawsuits are captioned United States ex rel. Barker v. Columbus Regional Healthcare System, et al., Case No. 4:12-cv-108 (M.D. Ga.) and United States ex rel. Barker v. Columbus Regional Healthcare System, et al., Case No. 4:14-cv-304 (M.D. Ga.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former Monroe Public Works Director Pleads Guilty to BriberyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Hugh Stephen Worley, age 53, of Bethlehem, Georgia entered a plea of guilty on August 28, 2015, to one count of bribery before the Honorable C. Ashley Royal, U.S. District Court Judge, in Athens, Georgia.
Mr. Worley served as Director of Public Works for the City of Monroe in Walton County, Georgia for approximately seventeen years. He was terminated in January of 2013 for “violations of personnel policies and procedures.” One such violation involved the rental of an Asphalt Paver from a local company.
In 2008 or 2009, Sims Paving, Inc., a Monroe business, acquired an Asphalt Paver that could be used for small patching and paving jobs. Mr. Worley went to see the owner, Mr. Sims, about a paver that could be used for smaller jobs, such as paving the driveways in the City of Monroe Cemetery. In 2012, Mr. Sims and Mr. Worley came to a verbal agreement that the City would rent the paver for a total of $20,000 over four months. After the agreement, Mr. Worley told Mr. Sims on four separate occasions that he could use $1,000. He did not tell Mr. Sims about his need for the cash until after the agreed upon Paver rental. Fearful that Mr. Worley would renege on the rental deal, Mr. Sims gathered $1,000 together on the four separate occasions. The Paver was never used to pave the cemetery driveways. It sat idle at a cost of $20,000 to the City of Monroe. Mr. Worley admits he engaged in illegal course of conduct with Mr. Sims.
Mr. Worley will be subjected to up to 10 years of incarceration and a $250,000 fine. He will also have to forfeit up to $28,771.61.
“We count on those who work in local government positions to do their jobs with integrity and recognize that they are the stewards of the citizens’ tax money and trust,” said U.S. Attorney Michael Moore. “Instead of using his skills and resources to help the people of Monroe, Mr. Worley used his position to enrich himself at a cost to the people he was supposed to be serving.”
The case was investigated by the Federal Bureau of Investigation, Athens division. Assistant United States Attorney Danial Bennett is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Athens-Clarke County Coroner Pleads Guilty to Possession of Stolen FirearmRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Bobby Tribble, age 62, of Athens, Georgia entered a plea of guilty on August 28, 2015 to one count of possession of a stolen firearm before the Honorable C. Ashley Royal, U.S. District Court Judge, in Athens.
In December of 2014, Mr. Tribble was an employee of firearm merchant Franklin’s of Athens. A customer came to purchase a firearm and Mr. Tribble assisted him to complete the transaction according to the Firearm Transfer Record (ATF Form 4473). Shortly thereafter, another Franklin’s employee came across an empty box associated with a Springfield 9mm pistol at the store. When this employee reviewed the ATF Form 4473, he discovered it was supposedly purchased by the customer. The customer, confused as to why Franklin’s had shipped him an empty box for a firearm he did not purchase, contacted the store, bringing the matter to the attention of the management team, the Athens-Clarke Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. An ATF investigation revealed and Mr. Tribble admits that he stole a total of five firearms from Franklin’s of Athens.
Mr. Tribble may face up to 10 years imprisonment, a $250,000 fine, or both. He will be expected to voluntarily surrender his Georgia Peace Officer’s Standards and Trainings (POST) certification
“A man who will steal guns has no business working in a gun store or holding a POST certification,” said U.S. Attorney Michael Moore. “I appreciate the help of the management at Franklin’s and the good work of our local, state and federal partners. Guns in the possession of good, law-abiding people is a positive thing; a gun in the hands of someone who steals it is quite a different matter and will not be tolerated.”
The case was investigated by the Athens-Clarke County Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Atlanta Field Division. Assistant United States Attorney Danial Bennett is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Trio Convicted of Multiple Narcotics Charges in Federal Wiretap CaseRead the Press Release
On August 24, 2015, Eddie Lee Perry, aged 44, of Cairo, Georgia; Joseph Davenport, aged 52, of Thomasville, Georgia; and Chad Ragin, aged 42, of Opalocka, Florida were convicted in United States District Court of all counts of an indictment charging them with conspiracy to possess with intent to distribute cocaine and crack cocaine, possession of cocaine and crack cocaine with intent to distribute (Davenport), use of a telephone in furtherance of a drug crime (Perry and Davenport), conspiracy to falsify records in a Federal investigation (Ragin), and falsifying records in a Federal investigation (Ragin). A copy of the indictment is attached. The guilty verdict is the result of a nine-day jury trial held in Albany, Georgia before the Honorable W. Louis Sands, Senior United States District Court Judge.
Evidence presented at trial showed that during 2013, the three defendants were part of a criminal organization that distributed cocaine and crack cocaine in Cairo, Georgia. Mr. Ragin acted as a courier of drugs and money between Mr. Perry and Roger Ross, of the Miami, Florida area. Mr. Davenport “cooked” the powder cocaine converting it into crack cocaine. The organization was responsible for trafficking/distributing kilogram quantities of cocaine.
Mr. Perry faces a mandatory minimum sentence of twenty years imprisonment. Mr. Davenport will receive a mandatory life sentence. Mr. Ragin is facing ten years to life imprisonment on Count 19 and twenty years imprisonment each on Counts 20 and 21. Sentencing will take place in about 60 days following a presentence investigation.
U.S. Attorney Michael Moore said, “Through outstanding cooperation between local, state and federal agencies, we have dismantled another large-scale drug distribution organization. We will continue to use every tool available to take the drugs off the streets and put the dealers in the jails.”
“Residents of Cairo should not have to live with drug dealers operating in their community,” stated Daniel R. Salter, Special Agent in Charge, U.S. Drug Enforcement Administration, Atlanta Field Division, “and these convictions will help protect the citizens of Cairo and the surrounding area. DEA will continue to work closely with our partners to protect our communities from the scourge of dangerous drugs.”
The case was investigated by the Thomas County Vice/Narcotics Squad, the Thomasville Police Department, the Grady County Sheriff’s Office, the Cairo Police Department, the Pelham Police Department, the Georgia State Board of Pardons and Paroles District Office and the U.S. Drug Enforcement Administration. Assistant United States Attorney Leah E. McEwen prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Bainbridge Drug Dealer Sentenced to 25 YearsRead the Press Release
Leonard Hoskins, aged 42, of Bainbridge, Georgia, was sentenced on August 18, 2015 to serve 25 years (300 months) in federal prison for possessing methamphetamine with the intent to distribute it. The sentence was handed down by the Honorable Leslie J. Abrams, United States District Court Judge, in Albany, Georgia.
Mr. Hoskins entered a plea of guilty to the charge on March 26, 2015. As a part of his plea agreement, Mr. Hoskins admitted that during 2013 and 2014, he obtained multiple ounces of methamphetamine “Ice” from a source in the Atlanta, Georgia area and distributed it in Bainbridge, Georgia. During a traffic stop for speeding on I-75 on June 6, 2014, Mr. Hoskins was found to be in possession of one pound of methamphetamine and $3,433.00 in U.S. currency.
“Methamphetamine has become a modern scourge in South Georgia, the Middle District of Georgia, and the country as a whole. A pound of methamphetamine is a large amount, and merits the equally large sentence of 25 years meted out to Mr. Hoskins. I commend the local, state and federal law enforcement authorities whose good work prevented the distribution of this significant quantity of illegal drugs into our community as well as removing Mr. Hoskins from the drug business for the next quarter century,” said United States Attorney Michael J. Moore.
“The success of this investigation speaks of the continued collaboration between our local, state and federal law enforcement partners in targeting and dismantling meth distribution rings that profit by spreading their poison in our communities. Strong partnerships such as this one underscore the power of our combined forces and demonstrate our collective impact on the war against meth,” said Daniel R. Salter, Special Agent in Charge of the U.S. Drug Enforcement Administration’s Atlanta Field Division.”
The case was investigated by the Bainbridge Department of Public Safety, Crisp County Sheriff’s Office, the Georgia State Patrol and the U.S. Drug Enforcement Administration. Assistant United States Attorney Leah E. McEwen represented the Government in the prosecution of the case.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Scruggs and Richardson Sentenced for Treasury Check FraudRead the Press Release
William Scruggs, age 46, and Paul Richardson, age 40, both of Macon, Georgia, were sentenced in the United States District Court on August 13, 2015, by the Honorable Marc T. Treadwell. Both Mr. Scruggs and Mr. Richardson had previously entered a plea of guilty to Conspiracy to Defraud the United States.
Mr. Scruggs received a sentence of 24 months in prison and Mr. Richardson received a sentence of 21 months in prison for his role in the offense. Mr. Richardson, who was on supervised release following his 2006 plea for Distribution of more than 50 Grams of Cocaine Base (crack cocaine), also had his supervised release revoked. Mr. Scruggs and Mr. Richardson must also jointly and severally pay a total of $282,561.26 in restitution.
Between July 2012 and January 2013, Mr. Scruggs received a total of 54 forged United States Treasury checks from Mr. Richardson, as well as other individuals. Mr. Richardson admitted that he brought between 12 and 15 forged Treasury checks to Mr. Scruggs. Mr. Richardson and the other individuals provided Mr. Scruggs the Treasury checks with a signed endorsement on the back of the check, which matched the name of the payee. Mr. Scruggs would then deposit the checks into the bank account for his business, Diamond Auto Painting, in Macon, Georgia. Mr. Scruggs claimed at the time of depositing that he had done work for the payee of the check, but later admitted that the checks were forged and fraudulent and that he had not met or provided services for the named payee.
Investigators were able to determine that many of the Treasury checks deposited in Mr. Scruggs’ Diamond Auto bank account were generated by tax returns which used stolen identities. There was no evidence to suggest that Mr. Scruggs and Mr. Richardson were involved in the identity theft or filing of the fraudulent tax returns.
Mr. Scruggs would retain 25% of the amount of the checks for himself. Mr. Richardson admitted that he retained 10% of the value of the checks he provided to Mr. Scruggs, and returned the remaining portion of the check to another individual. The total amount of the 54 Treasury checks was $282,561.26. Mr. Richardson admitted that the loss amount attributed to the checks he provided to Mr. Scruggs was more than $30,000, but less than $70,000.
“Today’s sentencing demonstrates IRS Special Agent’s continued commitment to pursue refund fraud,” said Veronica F. Hyman-Pillot, Special Agent in Charge IRS Criminal Investigation. “The use of the innocent taxpayer’s identities to generate a fraudulent tax refund check is a crime. IRS-Criminal is focused on bringing those who conspire to prepare, file, or negotiate fraudulent refunds proceeds to justice.”
This case was investigated by the United States Secret Service, the Internal Revenue Service- Criminal Investigations, the United States Department of the Treasury- Office of Inspector General, and the Macon Police Department. Assistant United States Attorney Beth Howard prosecuted the case for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Covington Woman Sentenced for Student Loan FraudRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced Kamiecy Lashia Waller, age 33, of Covington, Georgia was sentenced August 13, 2015 by the Honorable Marc T. Treadwell, United States District Judge for the Middle District of Georgia in Macon, Georgia.
Ms. Waller was sentenced to 33 months imprisonment and ordered to pay restitution in the amount of $229,424.00 to the Department of Education for mail fraud involving a scheme to obtain Government issued student loans.
On May 16, 2012, Jasper County Sheriff’s Office executed an arrest warrant for Ms. Waller pursuant to a tip that she was committing fraudulent activity at her home in Monticello, Georgia. Ms. Waller was subsequently interviewed by the Covington Police Department and admitted to using the internet to apply for and fraudulently obtain federal student aid loans for more than thirty individuals. These individuals were not eligible for the student loans because they did not have either a GED or a high school diploma.
A search warrant of Ms. Waller’s residence uncovered state drivers licenses, tax forms, social security cards and school documents, as well as documents written by Ms. Waller detailing course information from Rio Salado College, the primary online academic institution targeted by the scheme. A subsequent investigation revealed that over the course of two years, Ms. Waller actively recruited approximately thirty-two students in furtherance of her scheme to defraud. Typically, she would charge the participant a minimum of $650 for getting them registered in college and taking the online courses for them until financial aid was paid and an overage check sent to the student or Ms. Waller.
Law enforcement determined some of the checks were deposited directly into Ms. Waller’s bank account. Other checks were sent through the U.S. Postal Service to her or to the participant. Ms. Waller’s fraudulent submissions caused the Department of Education to award $430,639.00. Of that, $229,424.00 was actually dispersed to the target college.
"Student loan programs often provide the only way for would-be college students to pursue a college degree,” U.S. Attorney Michael Moore said. “In that regard, they are almost sacred to those students who can't afford to follow their dreams without access to student loans. Through her scheme, Ms. Waller stole loan money from a program that has as its only purpose making a college education accessible. Her actions jeopardized the dreams of deserving students, and now she'll be sitting in prison for almost as long as it would take to get a college degree. There is something quite ironic in the sentence handed down by the court."
The case was investigated by the Department of Education Office of Inspector General, Special Agent Christopher Maisano. Assistant United States Attorney Sonja Profit represented the Government in the prosecution of the case.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Sandersville Drug Dealer Sentenced to 30 YearsRead the Press Release
Antonio Donyal Tarver, age 39, from Sandersville, Georgia, was sentenced to 30 years imprisonment August 3, 2015 by the Honorable Leslie J. Abrams in Macon, Georgia. Mr. Tarver was found guilty by a jury on April 8, 2015 of one count of possession with intent to distribute more than 28 grams of cocaine base (“crack”) and one count possession with intent to distribute cocaine.
The Government’s evidence at trial proved that on July 3, 2013, a Georgia State Patrol Trooper attempted to stop Mr. Tarver on Highway 24 in Eatonton, Georgia for speeding. Instead of pulling over, Mr. Tarver led the Trooper on a chase. Mr. Tarver eventually ran a red light and gained some distance on the Trooper. Mr. Tarver then made an abrupt turn into the industrial area of Horton Components where he turned behind a van trailer and abandoned his vehicle. When the Trooper turned the corner by the van trailer, he saw Mr. Tarver’s abandoned vehicle continue forward and crash into a pole. The Trooper was able to locate Mr. Tarver following a foot chase.
A few hours later, an employee at Horton Components contacted the Putnam County Sheriff’s Office about a shopping bag he observed on the roof of the van trailer where Mr. Tarver had abandoned his vehicle. The Putnam County Sheriff’s Office arrived and retrieved the bag, finding what was later confirmed to be 143.33 grams of cocaine base (“crack”) and 292.98 grams of cocaine. The bags that the cocaine was packaged in were processed by the GBI for latent prints and a GBI latent print examiner confirmed that Mr. Tarver’s left ring finger and right thumb print were present on two of the bags.
At the time of this offense, Mr. Tarver was on supervised release following his 2006 plea to Distribution of Cocaine Base in the Middle District of Georgia. Mr. Tarver’s supervised release was revoked as a result of this conviction.
“With the sentencing of Mr. Tarver to federal prison, for the next 30 years there will be one less drug distributor on the streets of Middle Georgia. Whether we get them as a group, or one by one, my office will work to make sure that we use the necessary resources to make sure that drug dealers are in prison, not in our neighborhoods. I want to especially thank the Georgia Bureau of Investigation for the outstanding work on the fingerprint analysis in this case. The successful prosecution of Mr. Tarver’s case was the result of great collaborative work by the Georgia State Patrol, the Georgia Bureau of Investigation, the Putnam County Sheriff’s Office, and the Eatonton Police Department,” said U.S. Attorney Michael Moore.
This case was investigated by the Georgia State Patrol, the Georgia Bureau of Investigations, the Putnam County Sheriff’s Office, and the Eatonton Police Department. The case was prosecuted by Assistant United States Attorneys Beth Howard and Charles Calhoun.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney’s Office at 478-621-2603.
Four Sentenced for Filing over 1100 Fraudulent Tax Returns in South GeorgiaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that the three following defendants were sentenced on July 27, 2015 in United States District Court by the Honorable W. Louis Sands, Senior U.S. District Court Judge.
Patrice Taylor, age 34, of Ashburn, Georgia, was sentenced today to serve 84 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Mrs. Taylor was also ordered to pay restitution in the amount of $1,107,802.00 to the Internal Revenue Service.
Mrs. Taylor pled guilty to the charges on February 11, 2015. As a part of her plea agreement, Mrs. Taylor admitted that she conspired with her husband, Antonio Taylor, and Jarrett Jones to file over 1,100 fraudulent tax returns between January 2011 and February 2013. At least 1,089 of the returns were filed electronically from two IP addresses registered to Mrs. Taylor, both located at their home. From January 2012 to October 2012, a cell phone subscribed to Mrs. Taylor was used to call the Internal Revenue Service’s Automated Electronic Filing PIN Request 114 times.
Evidence presented by the United States at the sentencing hearing further showed that the identities, including the Social Security Numbers of 5 persons who were patients at Tift Regional Hospital were used by Mrs. Taylor to file fraudulent federal income tax returns. Mrs. Taylor was employed at Tift Regional Hospital during the time of the conspiracy. In addition, the Government’s evidence showed that the identities of 531 sixteen year olds were also used to file fraudulent federal income tax returns.
In January 2012, Mrs. Taylor filed her own fraudulent federal income tax return requesting a refund in the amount of $6,776. She claimed a dependent that she was not authorized by law to claim.
Jarrett Jones, aged 38, of Ty-Ty, Georgia, pled guilty to conspiracy to commit wire fraud and aggravated identity theft on October 9, 2014. He was sentenced by Judge Sands to 20 months imprisonment and ordered to pay restitution in the amount of $94,959.00.
Victoria Davis, aged 26, of Cordele, Georgia, entered her guilty plea on July 9, 2014 to one count of theft of government property and one count of aggravated identity theft. She was sentenced to serve 12 months in the Bureau of Prisons and pay restitution in the amount of $6,256.00.
Antonio Taylor was sentenced by Judge Sands on July 28, 2015 to serve 147 months in the Bureau of Prisons for his participation in the conspiracy. He was also ordered to pay restitution in the amount of $1,107,802 to the Internal Revenue Service. Mr. Taylor pled guilty to one count of conspiracy to commit wire fraud and aggravated identity theft on March 13, 2015. He has been in custody since the time of his arrest on March 12, 2014 and remains in custody.
“The stealing of a person’s identity to take money from the United States Treasury wreaks havoc not just on the individual victim, but also on every law-abiding taxpayer. These folks aren’t stealing from nameless, faceless people; they are stealing from each of us,” said U.S. Attorney Michael Moore.
“Identity theft is an ongoing problem in the United States. It is our duty as IRS Criminal Investigation to investigate identity theft and refund fraud and vigorously pursue those individuals who undermine the integrity of the U.S. tax system,” stated Special Agent in Charge Veronica F. Hyman-Pillot. “This case is a good example of solid investigative work on everyone’s part. We are proud to have prevented additional people from being victimized by these individuals, and causing further financial damage and personal inconvenience.”
The case was investigated by the Internal Revenue Service, assisted by the Ashburn Police Department. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Desai Sentenced for Distribution of "Ice" and Possession of Multiple FirearmsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Nimesh Vijay Desai, age 33, of Columbus, Georgia was sentenced today by the Honorable Clay D. Land, Chief United States District Judge in Columbus, Georgia. Mr. Desai was sentenced to serve 130 months in prison for distribution of methamphetamine and possession of a firearm during a drug trafficking crime.
On April 13, 2015, Mr. Desai pled guilty to distribution of methamphetamine and possession of a firearm during a drug trafficking crime. He made several sales of methamphetamine, also known as “ice.”, to an undercover agent. A search warrant of Mr. Desai’s residence in June 2012 revealed 15 weapons of various makes and models. He attempted to flee but was captured by the U.S. Marshal’s Service in East Point, Georgia. At that time, he was in possession of methamphetamine and a Colt .45 caliber handgun. Mr. Desai in total is responsible for 26.2 grams of “ice” which he intended to distribute.
“I commend the cooperation of the federal and local authorities in bringing this investigation. Their collaborative efforts took at least one drug dealer and his guns off the streets,” said U.S. Attorney Michael Moore.
The case was investigated by the Muscogee County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Melvin E. Hyde prosecuted the case for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Columbus Woman Sentenced to Serve 65 Months for Filing over 180 False Tax ReturnsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Danielle Wallace, age 36, of Columbus, Georgia, was sentenced July 28, 2015 to 65 months imprisonment for wire fraud, aggravated identity theft and filing false income tax returns before the Honorable Clay D. Land, Chief U.S. District Court Judge, in Columbus, Georgia. She was also ordered to pay $100,186 in restitution.
Ms. Wallace pled guilty to the charges on May 5, 2015. As a part of her plea agreement, Ms. Wallace admitted she filed over 180 fraudulent tax returns between January 1, 2014 and March 24, 2014. During this time, Ms. Wallace was employed by Blue Cross/Blue Shield fielding telephone calls from customers. She would obtain personal information from the customers during the calls and then file false income tax returns through “Simple Cash 1,” a tax preparation business she owned and operated in Columbus for the sole purpose of filing false claims. The attempted and actual loss, or the amount of funds which was obtained by fraud, is approximately $494,000.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigations and prosecutions of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
“In the Middle District of Georgia, we have made fighting financial fraud a priority. These cases require intensive and detailed investigations, and often involve a number of defendants. My advice to the fraudsters is simple – stop breaking the law. If you don’t, we are going to catch you and make every effort to give you a unique personal identification number – one that is found only on a federal prison inmate’s uniform,” said U.S. Attorney Michael Moore.
For more information on the task force, please visit www.StopFraud.gov.
The case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service and the Harris County Sheriff’s Office. Assistant United States Attorneys Melvin E. Hyde, Jr. and Chuck Byrd prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Turner County Man Sentenced to Prison for Tax Fraud and Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Tomeka D. Wilburn, aged 32, of Ashburn, Georgia, was sentenced on July 23, 2015, before the Honorable W. Louis Sands, Senior United States District Court Judge, in Albany, Georgia as follows:
Mr. Wilburn was sentenced to 87 months in the Bureau of Prisons for one count of wire fraud and one count of aggravated identity theft. Mr. Wilburn was also ordered to make restitution in the total amount of $58,648 to the Internal Revenue Service.
On December 12, 2014, Mr. Wilburn entered a written plea agreement in which he pled guilty to two counts of the indictment. As set forth in the plea agreement, Wilburn admitted that he electronically filed approximately 74 fraudulent federal income tax returns in the names of third parties.
The investigation into Mr. Wilburn began on April 12, 2012, when the Ashburn Police Department executed a search warrant on Wilburn’s residence while investigating an unrelated burglary. The search revealed 15 pre-paid debit cards in the names of third parties and other documents indicating a resident of the house was engaged in fraudulent tax filing and identity theft. Mr. Wilburn admitted to an Ashburn Police Officer that he had been “doing Turbo Taxes.”
As the plea agreement further states, “while the investigation into Mr. Wilburn’s fraudulent tax filing was going on, he returned to criminal activity. On March 21, 2014, Ashburn Police Department executed a second search warrant at Wilburn’s residence which showed he had continued to be involved in fraud and identity theft.
The plea agreement stipulated that the intended or attempted loss to the government was greater than $120,000, but less than $200,000. Wilburn actually succeeded in obtaining $58,648 in fraudulent refunds from the I.R.S.
“Thanks to the great investigative work of the Ashburn Police Department what started as a burglary investigation resulted in thwarting an identity theft and tax fraud scheme,” said Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “As the defendant in this case has learned, stealing from the American people will not be tolerated and you will be held accountable.”
“This is a great example of the benefits to be gained by local, state and federal agencies working together as a team. I am proud that my office was part of this team and helped bring Mr. Wilburn’s various criminal activities to an end,” said Michael J. Moore, United States Attorney for the Middle District of Georgia.
The case was investigated by the Internal Revenue Service - Criminal Investigation and the Ashburn Police Department. Jim Crane prosecuted the case on behalf of the government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Two South Georgia Residents Plead Guilty to Dog Fighting and Firearms ChargesRead the Press Release
United States Attorney Michael J. Moore announced today that Raymond Lee Hendrix a/k/a “Georgia Lee” and “Lee”, of Echols County, Georgia; and Willie Henderson, of Lowndes County, Georgia, entered guilty pleas to a number of charges in United States District Court in Valdosta. The pleas were entered on June 25, 2015 before the Honorable Hugh Lawson, Senior District Court Judge.
Mr. Hendrix pled guilty to one count of conspiracy to travel in interstate commerce in aid of unlawful activities and to sponsor and exhibit a dog in an animal fighting venture. He faces a maximum sentence of five (5) years imprisonment, a maximum fine of $250,000.00, or both.
Mr. Henderson entered a plea of guilty to one count of conspiracy to travel in interstate commerce in aid of unlawful activities and to sponsor and exhibit a dog in an animal fighting venture and to one count of possession of a firearm by a convicted felon. His plea will subject him to a maximum sentence of five (5) years imprisonment, a maximum fine of $250,000.00, or both on the dog fighting charge and a maximum term of imprisonment of ten (10) years, a $250,000.00 fine, or both on the firearms charge.
In their plea agreements, Mr. Hendrix and Mr. Henderson admitted that between January 2008 and August 2013, they operated Clyattville Kennels, maintaining and training American Pit Bull Terriers for other dog fighters in exchange for a “tipping fee”, breeding and registering American Pit Bull Terriers and participating in organized dog fight gambling events throughout the Southeast. In addition, Mr. Henderson admitted to possessing a rifle and shotgun, after having been convicted of a felony. A copy of each plea agreement is attached.
Sheriff Randy Courson with the Echols County Sheriff’s Office stated, “This case has been years in the making with a lot of hard work and many man hours of agencies working together to eliminate the cruel and inhumane treatment of these animals for profit.”
The case resulted from an inter-agency investigation conducted by the Federal Bureau of Investigation, United States Department of Agriculture – Office of Inspector General, Echols County (Georgia) Sheriff’s Office, Auburn (Alabama) Police Department, Bainbridge (Georgia) Department of Public Safety, Alabama Alcoholic Beverage Control Board, Lee County (Georgia) Sheriff’s Office along with assistance from the Humane Society of the United States and the American Society for the Prevention of Cruelty to Animals. Assistant United States Attorney Julia C. Bowen is prosecuting the case for the government.
The Court set sentencing for Mr. Hendrix and Mr. Henderson for September 23, 2015 at 9:30 am in Valdosta.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office at (478) 621-2603.
Pair Sentenced for Treasury Check Fraud SchemeRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced today that Peachess S. Wilson, aged 32, of Albany, Georgia, and Katoria M. Greene, aged 34, also of Albany, Georgia, were sentenced on July 15, 2015 by the Honorable W. Louis Sands, Senior United States District Court Judge, in Albany, Georgia, for their involvement in a Treasury check fraud scheme. Ms. Green was sentenced to 120 months (10 years) in the Bureau of Prisons, and Ms. Wilson, to 42 months in the Bureau of Prisons. In addition, both defendants were ordered to pay restitution in the amount of $732,427 to the United States Treasury. Ms. Wilson and Ms. Greene were charged in separate charging documents. However, both were jointly involved in criminal activity. Ms. Green pleaded guilty to three fraud-related offenses: theft of government property, aggravated identity theft, and fraud in connection with access devices. Ms. Wilson pleaded guilty to two counts of theft of government property and two counts of aggravated identity theft. As set forth in their plea agreements, Ms. Wilson had a business checking account in the name of an entity called “Spunkie’s” at SunTrust bank, Albany, Georgia. Ms. Greene and others obtained numerous United States Treasury checks payable to third parties by fraud. Many of these Treasury checks were generated by the filing of fraudulent on-line tax returns in the names of the third parties without their knowledge. Wilson deposited approximately $732,427 of fraudulently obtained Treasury checks into her SunTrust account. Ms. Wilson would then make cash withdrawals from her account and distribute the proceeds or write checks on her account to herself or to “straw” payees who would cash the checks and give her cash back. The case was investigated by the United States Secret Service. Assistant United States Attorney Jim Crane represented the Government in the prosecution of these cases. Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.Elbert County Felon Sentenced for Conspiring to Distribute More Than $130,000 in Methamphetamine While in PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that David Benton, age 49, of Elberton, Georgia was sentenced today to serve 227 months in Federal prison for conspiring to possess with intent to distribute methamphetamine. Mr. Benton was sentenced by the Honorable C. Ashley Royal, Untied States District Judge, in Athens, Georgia.
On October 1, 2013, Mr. Benton was sentenced to state prison for possession of methamphetamine with intent to distribute, fleeing and attempting to elude a police officer, four counts of possession of a firearm by a convicted felon, and theft by receiving stolen property. While in prison, authorities monitored Mr. Benton’s phone calls and learned that he had recruited an accomplice to dig up ammunition boxes buried in South Carolina containing methamphetamine and sell the illegal drugs. On December 7, 2013, law enforcement intercepted Mr. Benton’s accomplice, who led the police to the ammunition boxes, which contained 1.3 kilograms of methamphetamine, with a street value of approximately $130,000.00.
“Mr. Benton told his accomplice on recorded phone calls that selling drugs would make them rich,” said U.S. Attorney Michael Moore. “Instead of getting rich, Mr. Benton bought himself another twenty years in federal prison.”
The case was investigated by the Piedmont Northern Multi-Agent Narcotics Squad, the Elbert County Sheriff’s Office, the Elberton Police Department and the Anderson County Sheriff’s Office in South Carolina. Assistant United States Attorney Peter Leary prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Lowndes County, Georgia, Sheriff's Deputy and Civilian Co-Conspirators Sentenced for Civil Rights Conspiracy ChallengeRead the Press Release
Former Lowndes County Sheriff’s Deputy Jason Stacks, 29, was sentenced today to serve 21 months in prison and two years supervised release for his role in a civil rights conspiracy aimed at stealing money from Hispanic motorists, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division and U. S. Attorney Michael J. Moore of the Middle District of Georgia. Also sentenced today were two civilians – Gloria Gallego and Miguel Angel Reyes – who will serve 24 months and 30 months in prison, respectively, as well as three years supervised release for conspiring with Stacks to use his law enforcement authority to unlawfully detain and steal money from the motorists.
On May 6, 2014, Stacks pleaded guilty to a civil rights conspiracy charge, admitting that he participated in a plan with the civilians to subject Hispanic motorists to unlawful traffic stops so that his co-conspirators could then demand that the motorists pay money in order to avoid arrest and/or deportation. On Mar. 26, 2015, Gallego and Reyes pleaded guilty to the same charge. According to information made public in the plea hearings, Stacks, while acting as a sheriff’s deputy, unlawfully detained at least four motorists on Aug. 17, 2013. One of the motorists, who was identified in the plea documents by the initials T.C., was unlawfully detained by Stacks and then approached by Gallego and Reyes, who posed as bilingual passers-by who wanted to help T.C. Gallego and Reyes told T.C. in Spanish that he would be sent to jail or deported if he did not pay them $500. When T.C. responded that he did not have $500 in his car, the conspirators agreed to let T.C. go home to get the money from his relatives. Gallego and Reyes drove T.C. to his residence and took $300 in cash from him. Stacks, Gallego, and Reyes then divided the money among them.
“Stacks abused his authority by engaging in a scheme with two accomplices to target and steal money from those he was sworn to protect,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will hold accountable officers who violate their oath by violating the civil rights of members of the public.”
“Law enforcement officers take an oath to protect and serve the public and, based on the duty and responsibility that imposes, the public in turn invests them with great authority and respect,” said U.S. Attorney Moore. “The abuse of that power and authority, such as happened here, lessens that respect and trust by the public in all law enforcement, thus victimizing not only the victims specifically targeted but all law enforcement officers everywhere as well as the public generally.”
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division, with the assistance of the United States Attorney’s Office for the Middle District of Georgia and the Lowndes County Sheriff’s Office.
Former Lowndes County, Georgia Sheriff's Deputy and Civilian Co-Conspirators Sentenced for Civil Rights Conspiracy ChargeRead the Press Release
WASHINGTON – Former Lowndes County Sheriff’s Deputy Jason Stacks, 29, was sentenced today to serve 21 months in prison and two years supervised release for his role in a civil rights conspiracy aimed at stealing money from Hispanic motorists, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division and U. S. Attorney Michael J. Moore of the Middle District of Georgia. Also sentenced today were two civilians – Gloria Gallego and Miguel Angel Reyes – who will serve 24 months and 30 months in prison, respectively, as well as three years supervised release for conspiring with Stacks to use his law enforcement authority to unlawfully detain and steal money from the motorists.
On May 6, 2014, Stacks pleaded guilty to a civil rights conspiracy charge, admitting that he participated in a plan with the civilians to subject Hispanic motorists to unlawful traffic stops so that his co-conspirators could then demand that the motorists pay money in order to avoid arrest and/or deportation. On Mar. 26, 2015, Gallego and Reyes pleaded guilty to the same charge. According to information made public in the plea hearings, Stacks, while acting as a sheriff’s deputy, unlawfully detained at least four motorists on Aug. 17, 2013. One of the motorists, who was identified in the plea documents by the initials T.C., was unlawfully detained by Stacks and then approached by Gallego and Reyes, who posed as bilingual passers-by who wanted to help T.C. Gallego and Reyes told T.C. in Spanish that he would be sent to jail or deported if he did not pay them $500. When T.C. responded that he did not have $500 in his car, the conspirators agreed to let T.C. go home to get the money from his relatives. Gallego and Reyes drove T.C. to his residence and took $300 in cash from him. Stacks, Gallego, and Reyes then divided the money among them.
“Stacks abused his authority by engaging in a scheme with two accomplices to target and steal money from those he was sworn to protect,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will hold accountable officers who violate their oath by violating the civil rights of members of the public.”
“Law enforcement officers take an oath to protect and serve the public and, based on the duty and responsibility that imposes, the public in turn invests them with great authority and respect,” said U.S. Attorney Moore. “The abuse of that power and authority, such as happened here, lessens that respect and trust by the public in all law enforcement, thus victimizing not only the victims specifically targeted but all law enforcement officers everywhere as well as the public generally.”
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division, with the assistance of the United States Attorney’s Office for the Middle District of Georgia and the Lowndes County Sheriff’s Office.
Albany Man Pleads Guilty to Filing 62 Fraudulent Tax ReturnsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Bryant T. Johnson, aged 26, of Albany, Georgia entered a guilty plea to one count of wire fraud and one count of aggravated identity theft on June 17, 2015 before the Honorable W. Louis Sands, Senior U. S. District Court Judge, in Albany.
In March 2012, a juvenile in the Dougherty County School System was interviewed about the theft of 65 “Student Emergency Contact Cards” from a local high school personnel office. The cards contained identity data, including date of birth and Social Security numbers, of students and were recovered from his backpack. The juvenile admitted that he had talked about using the stolen cards with Mr. Johnson. A search warrant of Mr. Johnson’s home recovered evidence which linked him to 62 online federal income tax returns linked to him via e-mail, hard copy address, or other data. The filings claimed a total of $419,028. Mr. Johnson actually received a total of $76,631. The police also seized numerous pre-paid debit cards in the name of 3rd parties that were funded with fraudulent income tax refunds.
For wire fraud, Mr. Johnson faces 20 years maximum imprisonment, a fine of $250,000, or both. For aggravated identity theft, he faces a mandatory minimum of two years imprisonment consecutive to any other term of imprisonment imposed, a fine of $250,000, or both. Sentencing is set for September 10, 2015 before Judge Sands.
“Identity theft has become one of the most pervasive crimes in our community and its results can be devastating to the victims who often lose their money and their property as well as suffer injury to their credit rating and their reputation. It is my policy that my office shall prosecute the perpetrators of these types of crimes to the fullest extent of the law,” said United States Attorney Michael J. Moore.
"IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system," stated Acting Special Agent in Charge, James E. Dorsey. "Individuals who devise schemes to steal public money face federal prosecution and federal prison."
The case was investigated by the Internal Revenue Service - Criminal Investigation and the Dougherty County School System Police Department. Assistant United States Attorney Jim Crane is prosecuting the case on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Joint ATF, GBI and Athens Clarke County Police Violent Crime Reduction Partnership Leads to Nineteen Defendants' ArrestsRead the Press Release
MACON, GEORGIA – The Bureau of Alcohol, Tobacco, Firearms and Explosive’s (ATF), the Georgia Bureau of Investigation and the Athens Clarke County Police Department (ACCPD) are working jointly on an initiative aimed at the prevention and reduction of violent crime which has resulted in fifteen (15) indictments charging nineteen (19) defendants with a variety of federal firearms and drug offenses announced United States Attorney Michael J. Moore of the Middle District of Georgia. All of these charges are brought within the Athens Division of the Middle District of Georgia.
Those charged in the referenced indictments include the following, to-wit:
Shamier O’Neal Berry, age 21, of Athens, Georgia, was arrested today as a result of an indictment charging distribution of cocaine.
Steven Maurice McKinley, age 22, of Athens, Georgia, was detained today as a result of an indictment charging distribution of methylphenidate and marijuana.
Terrance Jerome Clarke, age 27, of Athens, Georgia, was detained today as a result of an indictment charging two (2) counts of possession of a firearm by a convicted felon, three (3) counts of distribution of drugs and two (2) counts of possession of a firearm in furtherance of a drug trafficking crime.
Cicognac Octavius Rivers, age 25, of Athens, Georgia, was detained today as a result of an indictment charging possession of a firearm by a convicted felon.
Frederick Mitchell, Sr., age 82, of Athens, Georgia, was arrested today as a result of an indictment charging conspiracy to possess with intent to distribute cocaine and distribution of cocaine.
Frederick Mitchell, Jr., age 45, of Athens, Georgia, was arrested today as a result of an indictment charging conspiracy to possess with intent to distribute cocaine and two (2) counts of distribution of cocaine.
Christopher Randall Boss, age 31, of Athens, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Tirrell Deon Bush, age 41, of Athens, Georgia, was arrested today as a result of an indictment charging two (2) counts of distribution of cocaine.
Chasity Caldwell age 33, of Athens, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Dontavous Malcom, age 22, of Athens, Georgia, was arrested today as a result of an indictment charging three (3) counts of distribution of cocaine.
Quometric Quashaun Smith, age 28, of Athens, Georgia, was arrested today as a result of an indictment charging possession of an unregistered firearm and possession of a firearm with an obliterated serial number.
Shammar D. Whitehead, age 26, of Athens, Georgia, was arrested today as a result of an indictment charging distribution of cocaine and possession of a firearm in furtherance of a drug trafficking crime.
Jamie Lee Bowen, age 31, of Maysville, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Royce Van Court, Jr., age 32, of Winder, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Cherry Whatley, age 47, of Winder, Georgia, was arrested today as a result of an indictment charging two (2) counts of false statements in the acquisition of a firearm.
Demarcus Ellison, age 21, of Athens, Georgia, was detained today as a result of an indictment charging two (2) counts of distribution of cocaine.
Xavier Chavez Johnson, age 24, of Athens, Georgia, was arrested today as a result of an indictment charging possession with intent to distribute methamphetamine.
More arrests are expected.
“This initiative demonstrates how committed ATF, along with ACCPD and the GBI, are to reducing violent crime that affects the community. It truly is a joint effort, bringing all resources to a common goal, which is to reduce violent crime,” said ATF Assistant Special Agent in Charge Aldino Ortiz.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The cases were investigated by the ATF and Athens Clarke County Police Department.
Two Sisters-In-Law and Former Tax Return Preparers Sentenced to Prison for Conspiring to Defraud the United StatesRead the Press Release
WASHINGTON – Two Georgia sisters-in-law were sentenced today in the U.S. District Court in Macon, Georgia, for their involvement in a conspiracy to defraud the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Angela Miller, 48, of Milledgeville, Georgia, and Lee Lynwood, 47, of Eatonton, Georgia, were each sentenced to serve 12 months and one day in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $44,214.62. On Feb. 10, Miller and Lynwood pleaded guilty to conspiracy to defraud the United States.
According to court documents, from at least January 2008 through at least March 2010, Miller and Lynwood operated a tax return preparation business and conspired to inflate their clients’ federal tax refunds by manipulating the tax returns to reflect false business income or loss amounts and to claim deductions and credits, such as the First-Time Homebuyer Credit, that the clients were not entitled to receive.
Miller and Lynwood also took steps to continue their scheme by impeding the Internal Revenue Service’s (IRS) efforts to shut down their ability to electronically file tax returns. In May 2008, the IRS notified Miller and Lynwood that their Electronic Filing Number (EFIN) for filing electronic returns at their tax preparation business, A&L Tax Services, was being revoked. Miller and Lynwood then had an acquaintance apply for another EFIN in her name, which Miller and Lynwood used to continue to file fraudulent tax returns and conceal their preparation from the IRS. Further, Miller and Lynwood changed the name of their business to B&F Tax Services and caused a bank account for the B&F Tax Services to be opened in the acquaintance’s name as a nominee.
Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance, as well as Trial Attorneys Alexander R. Effendi and Hayden M. Brockett of the Tax Division, who prosecuted the case.
Deputy Sheriff Convicted for Withholding Evidence Favorable to A DefendantRead the Press Release
WASHINGTON – A federal jury in Albany, Georgia, today convicted three sheriff’s deputies on various federal offenses related to the cover-up of a 2012 incident in which a fourth deputy used force during the arrest of a civilian. The charges against Decatur County Captain Elizabeth Croley, Decatur County Deputy Christopher Kines and Decatur County Deputy Robert Wade Umbach related to a September 2012 incident in which former Grady County Deputy Sheriff Wiley Griffin, IV—who is the son of Decatur County Sheriff Wiley Griffin, III— used force against Aaron Parrish during an arrest at the Bainbridge BikeFest. The jury found that Croley, Kines and Umbach obstructed justice when they later helped cover up defendant Griffin’s actions. Specifically, the jury convicted Croley of obstructing justice by writing a false report and convicted Kines and Umbach of engaging in misleading conduct by lying to an FBI agent about the incident. Croley was also convicted of violating Aaron Parrish’s constitutionally protected right to a fair trial by intentionally withholding material exculpatory evidence from the District Attorney’s Office, and, in turn from Aaron Parrish’s criminal defense attorney, during a criminal prosecution of Parrish arising out of the same BikeFest incident.
Croley, Kines and Umbach will be sentenced by the Honorable W. Louis Sands, Senior U.S.District Court Judge for the Middle District of Georgia, at a later date to be set by the court.
The same jury that convicted the three Decatur County officers of obstruction acquitted Griffin on a civil rights count charging him with having used excessive force against Parrish and acquitted Kines and Umbach of obstructing justice by writing false reports.
During a trial that lasted more than two weeks, the jury heard evidence that Griffin struck Parrish in the eye with a metal flashlight while Parrish was being restrained on the ground by other deputies, including Kines and Umbach. The government presented evidence that Captain Croley and Deputies Kines and Umbach then helped cover up the incident by, among other things, Croley writing a false report and Kines and Umbach misleading the FBI by stating that they did not see Griffin at the scene.
The government also presented evidence that, after Parrish complained to the Decatur County Sheriff’s Office about the abuse he had suffered at BikeFest, the Sheriff’s Office opened a criminal investigation led by Croley that eventually resulted in felony criminal charges against Parrish. During that investigation, Croley took a witness statement from a civilian eyewitness who provided information that would have been materially helpful to Parrish’s defense. However, rather than providing that statement to the District Attorney so that it could then be provided to Parrish’s defense attorney for use at trial, Croley intentionally removed the exculpatory statement from the case file. This conduct formed the basis of the civil rights charge on which defendant Croley was convicted.
At sentencing, Croley will face a maximum sentence of 20 years for her false report and one year for the civil rights violation involving hiding exculpatory evidence. Kines and Umbach face maximum sentences of 20 years for making misleading statements to the FBI.
“As the jury recognized through its verdict, there are serious consequences when law enforcement officers lie to cover up the misconduct of a fellow officer and when an officer intentionally stacks the deck against an accused person by hiding evidence that could show the person’s innocence,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “When officers engage in this type of outrageous behavior, the Department of Justice stands ready to enforce the law and protect the civil rights of all Americans.”
“This case reflects that the rule of law applies to all and that the FBI will present for prosecution the facts as it finds them,” said Special Agent in Charge J. Britt Johnson of the FBI Atlanta Field Office. “Today's verdicts conclude an extensive investigation and prosecution that needed to be heard and the FBI is satisfied that it was."
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Trial Attorneys Christine M. Siscaretti and Risa Berkower of the Justice Department’s Civil Rights Division, with support from the U.S. Attorney’s Office for the Middle District of Georgia.
United States Settles Kickback Allegations with Georgia HospitalRead the Press Release
WASHINGTON – The Department of Justice announced today that the United States has settled a False Claims Act lawsuit with Health Management Associates (HMA) and Clearview Regional Medical Center for $595,155. The lawsuit filed in the Middle District of Georgia alleged that from 2008 to 2009 the hospital paid kickbacks to an obstetric clinic that served primarily undocumented Hispanic women, in return for referral of those patients for labor and delivery at the hospital. The hospital then billed the Medicaid program in Georgia for the services provided to the referred patients. Clearview, located in Monroe, Georgia, was named Walton Regional Medical Center and was owned by hospital operator HMA during the time period relevant to the lawsuit. Clearview is now owned by Community Health Systems (CHS), which purchased HMA in January 2014.
“This resolution illustrates our commitment to ensuring that health care providers who pay kickbacks in return for patient referrals are held accountable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Schemes such as this one corrupt the health care system and take advantage of vulnerable patients.”
“The Medicaid program is a vital part of the government’s efforts to make sure that everyone has access to health care,” said U.S. Attorney of the Middle District of Georgia Michael Moore. “Instead of providing health care services to expectant mothers in its area and receiving payment for those services from Medicaid, the hospital participated in a scheme to pay kickbacks in exchange for having pregnant women from outside its market funneled to its facility with the goal of increasing the amount of Medicaid money the hospital could claim.”
The United States’ complaint alleges that HMA’s Walton Regional Medical Center paid kickbacks to Hispanic Medical Management doing business as Clinica de la Mama (Clinica) and related entities, in return for Clinica’s agreement to send pregnant women to Walton Regional for deliveries paid for by Medicaid, in violation of the federal Anti-Kickback Statute. The kickbacks were disguised as payments for a variety of services allegedly provided by Clinica.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“Hospitals that pay kickbacks to clinics for referrals of undocumented pregnant patients are taking advantage of both these vulnerable women and the taxpayer-funded Medicaid program,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Atlanta Regional Office. “Our agency is dedicated to investigating such corrosive kickback schemes, which undermine the public’s trust in medical institutions and the financial health of government health care programs.”
“The FBI is proud of the role it played in bringing forward today’s settlement, said Special Agent in Charge J. Britt Johnson of the FBI Atlanta Field Office. “The FBI will continue to provide significant investigative assets and resources to ensure that the integrity of federally funded health care programs such as Medicaid are protected from providers who would abuse them.”
As part of the settlement, HMA and Clearview will pay the State of Georgia an additional $396,770 to settle Georgia’s claims under the Georgia False Medicaid Claims Act. The Medicaid program is a jointly funded federal-state program that provides health care to the poor and disabled. Although undocumented aliens are not eligible for regular Medicaid coverage, the Medicaid program provides coverage for emergency conditions, including childbirth, for undocumented aliens.
The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it did in this case against Walton Regional, as well as several other defendants, including Clinica de la Mama and four hospitals owned by Tenet Healthcare Corporation. The litigation against the non-settling defendants is ongoing. The relator, Ralph D. Williams, the chief financial officer of Walton Regional from April 2009 to October 2009, will receive $119,031 from the United States’ portion of the settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the Middle and Northern Districts of Georgia, HHS-OIG, FBI and the Office of the Attorney General for the State of Georgia.
The case is captioned United States ex rel. Williams v. Health Mgmt. Assocs. Inc., et al., No. 3:09-CV-130 (M.D. Ga.).
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Former U.S. Army Specialist Pleads Guilty to Taking A Bribe While Deployed in AfghanistanRead the Press Release
WASHINGTON – A former specialist with the U.S. Army pleaded guilty to accepting a bribe from an Afghan truck driver at Forward Operating Base Gardez, Afghanistan (FOB Gardez), in exchange for allowing the driver to take thousands of gallons of fuel from the base for resale on the black market. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.
Anthony Don Tran, 28, of Stockton, California, pleaded guilty before U.S. District Court Judge Beth L. Freeman of the Northern District of California to one count of bribery of a public official.
According to admissions made in conjunction with his guilty plea, in exchange for $20,000 in cash, Tran permitted a local Afghan fuel truck to depart FOB Gardez without downloading roughly 12,000 gallons of fuel purchased by the U.S. government and designated for the base. Tran admitted that, on May 21, 2013, after returning from deployment, he purchased a 2010 Dodge Challenger with the cash derived from the bribe.
In addition, Tran admitted to accepting at least $1,000 in cash from two other members of his unit, U.S. Army sergeants James Edward Norris and Seneca Hampton, in exchange for Tran agreeing not to report them for also taking bribes for fuel. Both Norris and Hampton previously pleaded guilty to their roles in the scheme. On May 21, 2015, Norris was sentenced to serve 51 months in prison. Hampton is scheduled to be sentenced on July 28, 2015.
Pursuant to his plea agreement, Tran agreed to forfeit the proceeds he received from the bribery scheme as well as to pay full restitution. Sentencing has been scheduled for Sept. 22, 2015.
The case is being investigated by the U.S. Army Criminal Investigation Command, the Office of the Special Inspector General for Afghanistan Reconstruction, the Defense Criminal Investigative Service and the Defense Contract Audit Agency, Investigative Support Division. The case is being prosecuted by Trial Attorneys John Keller and Sean Mulryne of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Michael Solis and Danial Bennett of the Middle District of Georgia.
Armed Felon Who Led Police on Interstate Chase Sentenced to 96 MonthsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that James Marcus Lloyd, III, age 41, from Charleston, South Carolina was sentenced today by the Honorable Leslie J. Abrams, United States District Judge in Macon, Georgia. Mr. Lloyd was sentenced to 96 months in prison for being a felon in possession of a firearm. He was convicted by jury on March 4, 2015. This is his third federal conviction-he was previously convicted in federal court of cocaine distribution in 2000 and being a felon in possession of a firearm in 2005.
On June 24, 2013, Mr. Lloyd was stopped by a deputy with the Greene County Sheriff’s Office on Interstate 20 for several traffic violations. As the deputy stepped from his police car, Mr. Lloyd drove off, leading the police on a high-speed chase. During the chase, which reached speeds of 95 miles per hour, Mr. Lloyd passed numerous vehicles in the emergency lane, including semi-trailer tanker trucks. Eventually, Mr. Lloyd abandoned his car in the median of the Interstate and fled on foot before being caught and arrested by the police. In the path that Mr. Lloyd ran, a short distance from his car, the police found a loaded semi-automatic 9mm pistol.
“Mr. Lloyd seems determined to be armed, with this being his second federal conviction for this offense,” said U.S. Attorney Michael J. Moore. “He is also dangerous, putting in jeopardy the lives of himself, the officers trying to apprehend him, and anyone who had the misfortune to be on the road at the time of his latest arrest. He is precisely the sort of person this statute was passed to protect us against. It is good to know society will be free of the threat he poses for the next eight years.”
The case was investigated by the Greene County Sheriff’s Department and the Bureau of Alcohol, Tobacco, and Firearms (ATF). Assistant United States Attorneys Tamara Jarrett and Peter Leary prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Humane Law Enforcement Awards Presented for Georgia Dog Fighting CaseRead the Press Release
The Humane Society of the United States presented 2014 Humane Law Enforcement Awards to the federal, state, and local agencies responsible for a successful dogfighting case that resulted in the rescue of more than 140 dogs in Georgia. After a four-year long investigation, seven individuals have been prosecuted in connection to the “229 Boys Kennel Club, Inc.” who bred, purchased, sold, and trained American Pit Bull Terriers for the purpose of dogfight gambling.
A special awards ceremony took place June 2, 2015 at the United States Attorney’s Office in the Middle District of Georgia in honor of the cooperative agencies that brought the individuals to justice: the Georgia Bureau of Investigation, Sylvester and Americus Field Offices; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Department of Agriculture Office of Inspector General; the U.S. Marshals Service; and the Albany Police Department. Assistant United States Attorney Julia C. Bowen prosecuted the case on behalf of the Government.
“People who breed animals simply for the sport of killing them show a lack of conscience that is shocking,” United States Attorney Michael Moore said. “These people literally gamble in the flesh and blood of man’s best friend. My office will continue to dismantle any organization in Middle Georgia whose primary objective is to commit criminal conduct through such cruel methods.”
The Humane Society of the United States celebrates the work of law enforcement to crack down on animal fighting, puppy mills, the illegal wildlife trade, poaching, and other forms of cruelty and abuse. Humane Law Enforcement Award recipients exemplify the best of law enforcement in protecting animals from needless violence and harm.
“The Humane Society of the United States recognizes the hard work, dedication and strength of spirit it takes to investigate and prosecute animal cruelty,” said Chris Schindler, manager of animal fighting investigations for The HSUS. “We are grateful for all the agencies who take on these cases, and we are privileged to honor those who stand out among the rest. The agencies involved in bringing down a number of dogfighters in Georgia are commended for their efforts and success.”