Middle District of Georgia
Press releases recorded for this federal judicial district.
Princess L. Eatmon Sentenced to PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the sentencing of Princess L. Eatmon, age 25, formerly a resident of Dougherty County, Georgia, on March 21, 2013, in Albany, by the Honorable W. Louis Sands, United States District Judge for the Middle District of Georgia.
Eatmon was sentenced by Judge Sands to serve 48 months in the custody of the Bureau of Prisons followed by three years of supervised release. She was also ordered to pay restitution to the United States Department of Education in the amount of $139,087.
On May 7, 2012, Ms. Eatmon pleaded guilty to a one count Information which charged her with conspiracy to commit wire fraud, a violation of 18 U.S.C. 1343 i/c/w/1349. During the period from January 1, 2010, through December 30, 2011, Ms. Eatmon fraudulently applied for and received student loans and grants from the U.S. Department of Education on behalf of at least 27 bogus students. The purported students were real persons in the Albany area who knowingly gave their personal identifying data to Ms. Eatmon in order to obtain federal student aid by fraud. Neither Ms. Eatmon nor the bogus students had any intention of actually furthering their education.
Using her home computer and the internet, Ms. Eatmon enrolled other persons in on-line universities, and applied for and received federal student loans and grants for them. Ms. Eatmon would, for a short period of time, turn in some course work on behalf of the students; however, once she received the federal monies for the bogus student, she would “drop out” of the course. None of the “students” which she enrolled completed any course work or had any intention to perform the course work themselves. The sole purpose of enrolling the “students” in on-line universities was to defraud the federal government into sending monies to Ms. Eatmon and her co-conspirators. Two other defendants have been convicted of conspiring with Ms. Eatmon in the same scheme: Kevinall Wheeler, who pleaded guilty on August 13, 2013, and Dontreal Jenkins, who was convicted by a jury of conspiring with Ms. Eatmon (and of other offenses) on January 11, 2013.
“Students from all walks of life depend on student loans and grants so they can further their education. When Ms. Eatmon committed this fraud, she stole money that could have been used to help deserving students go to college. My office is committed to pursuing those who commit fraud,” said U.S. Attorney Michael Moore.
On October 15, 2012, while awaiting sentencing in this case, Ms. Eatmon was charged separately with theft of United States Treasury checks and aggravated identity theft in connection with a completely different on-line tax scheme. Because of this new offense, Ms. Eatmon’s bond was revoked and she has been in custody since that date. On January 3, 2013, Ms. Eatmon entered a separate plea of guilty to these charges. Sentencing on this second set of charges will be held at a later date.
The case was jointly investigated by the Dougherty County Police Department, the United States Department of Education, Office of Inspector General and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Jim Crane.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.Georgia Tax Return Preparer Sentenced to PrisonRead the Press Release
Sentenced to More Than 11 Years in Prison for Preparing False Tax Returns Claiming Hundreds of Thousands of Dollars in RefundsWASHINGTON – Tyrone Thompson was sentenced today to 137 months in prison by U.S. District Judge Hugh Lawson in the Middle District of Georgia for conspiracy and filing fraudulent tax returns in order to receive tax refunds, to which the defendant was not entitled, the Justice Department and Internal Revenue Service (IRS) announced. In addition to Thompson, the scheme involved four others who had already been sentenced. Judge Lawson also ordered Thompson to pay $516,363 in restitution to the IRS. In October 2012, all five defendants pleaded guilty to filing a false claim for tax refunds. In addition, Thompson pleaded guilty to conspiracy to file false claims for tax refunds.
According to court documents, Thompson organized a scheme in which he prepared and filed fraudulent federal income tax returns using the names of other individuals. He included with the returns fictitious Schedules C reporting business income and losses and also claimed false First-Time Homebuyer Credits, in order to obtain tax refunds to which he and his co-defendants were not entitled. He directed fraudulently-obtained refunds to be deposited to his co-defendants’ bank accounts. The attempted tax refund fraud exceeded $400,000.
“Today’s lengthy jail sentence sends a strong message that those who would consider committing tax fraud should think carefully about the serious risks involved,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “As millions of honest, hard-working taxpayers prepare and file their tax returns, they should be assured that those who would shirk their civic duty or try to ‘game the system’ will be investigated by the IRS and, where appropriate, criminally prosecuted by the Department of Justice.”
“These folks are stealing from every good tax paying citizen, and we won’t tolerate it,” said U.S. Attorney for the Middle District of Georgia Michael J. Moore.
“Tyrone Thompson organized a scheme to file fraudulent tax returns using the identities of third parties in order to receive false refunds,” said Richard Weber, Chief, IRS Criminal Investigations. “Mr. Thompson cheated the government by filing false Schedule C and false First-Time Homebuyer Credit forms to increase the fraudulent tax refunds. IRS Criminal Investigation has made investigating refund fraud a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system.”
Assistant Attorney General Keneally commended the efforts of Special Agents of IRS - Criminal Investigation, who investigated the case, and Trial Attorneys Charles Edgar and Alexander Effendi of the Tax Division, who prosecuted the case.
For additional information, please contact Sue McKinney, Public Affairs Specialist at (478) 621-2602.
James Edward Calloway and Desi Surtane Hansford Indicted for Bribery Concerning A Governmental Program Receiving Federal FundsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that on March 12, 2013, a Federal Grand Jury in Macon, Georgia, indicted two City of Forsyth Councilmen on public corruption charges. James Edward Calloway, age 60, and Desi Surtane Hansford, age 35, both of Forsyth, Georgia, were charged in the Three Count federal indictment with the following charges: Bribery Concerning a Governmental Program Receiving Federal Funds involving $5,0000.00 or more, all in violation of Title 18, United States Code, Section 666 (a)(1)(B).The indictment alleges that the defendants, elected officials, presided over a standing subcommittee responsible for receiving bids and selecting an independent company to administer services for the City of Forsyth. The alleged corruption occurred from December 27, 2012 to March 11, 2013 and involved a solicitation of $20,000.00 from the defendants to a service provider in exchange for influence regarding a city contract.
Mr. Calloway has been a Councilman for more than twenty years. Mr. Hansford has served for six years. The defendants face a maximum penalty of ten years imprisonment, a $250,000.00 fine and a period of supervised release for each count.
An indictment is merely an accusation and each defendant is presumed innocent unless and until they are proven guilty.
The case was initiated and investigated by the Federal Bureau of Investigation, Macon Division. Assistant United States Attorney Sonja Profit is prosecuting the case for the Government. For additional information, please contact Sue McKinney, Public Affairs Specialist at (478) 621-2602.
Armed Bank RobberyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces the sentencing in the United States District Court, Macon Division, of Kerivonte Davis, age 26 of Wrightsville, Georgia,and Jimmy Brown age 25 of Fort Valley, Georgia. Mr. Davis and Mr. Brown entered guilty pleas in October and November, 2012 respectively. Both defendants were sentenced on February 27, 2013 for Armed Bank Robbery and Brandishing a Firearm During a Crime of Violence, in violation of Title 18 United States Code, Sections 2113(a) and (d) and 924(c)(1)(A)(i) and (ii). The defendants appeared before the Honorable C. Ashley Royal, United States District Court, Macon, Georgia.Mr. Davis was sentenced to 188 months imprisonment for two counts of Armed Bank Robbery to be followed by a consecutive sentence of imprisonment of 84 months for Brandishing a Firearm During an Armed Bank Robbery, for a total prison sentence of 272 months. Mr. Brown was sentenced to 63 months imprisonment for Armed Bank Robbery to be followed by a consecutive sentence of imprisonment of 84 months for Brandishing a Firearm During an Armed Bank Robbery, for a total prison sentence of 147 months.
A third defendant, Gregory Green age 27 of Byron, Georgia, was previously sentenced by Judge Royal to a total prison term of 113 months.
On May 28, 2010, while wearing masks and carrying firearms, the three entered the Atlantic Southern Bank in Lizella, Georgia, ordered the employees to the ground and stole more than $13,000.00. On December 16, 2010, defendants Davis and Green, again wearing masks and carrying firearms, entered the Atlantic Southern Bank in Bonaire, Georgia, and stole more than $23,000.00.
United States Attorney Michael Moore said, “It is an act of pure cowardice to hide behind a mask and a gun while terrorizing innocent people. I will not tolerate it, and my office will spare no resource in making sure that this type of crime is met with the full force of the law.”
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney, Verda M. Colvin and Jennifer Kolman prosecuted the case for the Government. For additional information contact Sue McKinney, Public Affairs Specialist, at 478-621-2602.
Former Officials and Broker of Peanut Corporation of America Indicted Related to Salmonella-Tainted Peanut ProductsRead the Press Release
Allegations Include Mail and Wire Fraud, Introduction of Adulterated and Misbranded Food into Interstate Commerce with Intent to Defraud or Mislead, and ConspiracyWASHINGTON – A 76-count indictment was unsealed yesterday charging four former officials of the Peanut Corporation of America (PCA) and a related company with numerous charges relating to salmonella-tainted peanuts and peanut products, the Justice Department announced today. Stewart Parnell, 58, of Lynchburg, Va.; Michael Parnell, 54, of Midlothian, Va.; and Samuel Lightsey, 48, of Blakely, Ga., have been charged with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy. Stewart Parnell, Lightsey and Mary Wilkerson, 39, of Edison, Ga., were also charged with obstruction of justice.
Also yesterday, an information filed against Daniel Kilgore, 44, of Blakely was unsealed. On the same day that charges against Kilgore were filed, he pleaded guilty to that information, which charged him with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy.
The investigation into the activity at PCA began in 2009, after the Food and Drug Administration and the U.S. Centers for Disease Control and Prevention traced a national outbreak of salmonella to a PCA plant in Blakely as the likely source. As alleged in the indictment, the Blakely plant was a peanut roasting facility where PCA roasted raw peanuts and produced granulated peanuts, peanut butter, and peanut paste; PCA sold these peanut products to its customers around the country.
The charging documents charge that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to manufacture and ship salmonella-contaminated peanuts and peanut products, and in so doing misled PCA customers. As alleged in the indictment, those customers ranged in size from small, family-owned businesses to global, multibillion-dollar food companies.
“When those responsible for producing or supplying our food lie and cut corners, as alleged in the indictment, they put all of us at risk,” said Stuart F. Delery, who heads the Justice Department’s Civil Division. “The Department of Justice will not hesitate to pursue any person whose criminal conduct risks the safety of Americans who have done nothing more than eat a peanut butter and jelly sandwich.”
Although PCA is now no longer in business, the allegations against each of the defendants arise from his or her conduct while at PCA and a related company. The following allegations are set forth in the indictment: Stewart Parnell was an owner and president of PCA; Michael Parnell, who worked at P.P. Sales, was a food broker who worked on behalf of PCA; Lightsey was the operations manager at the Blakely plant from on or about July 2008 through February 2009; and Wilkerson held various positions at the Blakely plant – receptionist, office manager and quality assurance manager – from on or about April 2002 through February 2009. As charged in the information, Kilgore served as operations manager of the PCA plant in Blakely from on or about June 2002 through May 2008.
“We all place a great deal of trust in the companies and individuals who prepare and package our food, often times taking it for granted that the public’s health and safety interests will outweigh individual and corporate greed,” said Michael Moore, U.S. Attorney for the Middle District of Georgia. “Unfortunately and as alleged in the indictment, these defendants cared less about the quality of the food they were providing to the American people and more about the quantity of money they were gathering while disregarding food safety. This investigation was complex and extensive, and I credit the cooperation of our federal agencies with not only making sure that the cause of this outbreak was uncovered and the people responsible called to account, but also with working hard every day to make sure that parents across the country can feel confident that the food they are feeding their children is safe.”
The charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in several schemes by which they defrauded PCA customers about the quality and purity of their peanut products and specifically misled PCA customers about the existence of foodborne pathogens, most notably salmonella, in the peanut products PCA sold to them. As the charging documents allege, the members of the conspiracy did so in several ways – for example, even when laboratory testing revealed the presence of salmonella in peanut products from the Blakely plant, Stewart Parnell, Michael Parnell, Lightsey and Kilgore failed to notify customers of the presence of salmonella in the products shipped to them.
In addition, the charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to fabricate certificates of analysis (COAs) accompanying various shipments of peanut products. COAs are documents that summarize laboratory results, including results concerning the presence or absence of pathogens. As alleged in the charging documents, on several occasions these four defendants participated in a scheme to fabricate COAs stating that shipments of peanut products were free of pathogens when, in fact, there had been no tests on the products at all or when the laboratory results showed that a sample tested positive for salmonella.
After the salmonella outbreak that gave rise to this investigation, FDA inspectors visited the plant several times in January 2009. According to the indictment, the inspectors asked specific questions about the plant, its operations, and its history, and, in several instances, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to these questions.
“The charges announced today show that if an individual violates food safety rules or conceals relevant information, we will seek to hold them accountable,” said FDA Commissioner Margaret A. Hamburg, M.D. “The health of our families and the safety of our food system is too important to be thwarted by the criminal acts of any individual or company.”
Stewart Parnell, Michael Parnell, and Samuel Lightsey are each charged with two counts of conspiracy; multiple counts of introducing adulterated food into interstate commerce with the intent to defraud; multiple counts of introducing misbranded food into interstate commerce with the intent to defraud; multiple counts of interstate shipment fraud; and multiple counts of wire fraud. Stewart Parnell, Lightsey and Wilkerson are also charged with multiple counts of obstruction of justice.
Kilgore pleaded guilty to one count of conspiracy to commit fraud, one count of conspiracy to introduce adulterated and misbranded food into interstate commerce, eight counts of introducing adulterated food into interstate commerce with the intent to defraud, six counts of introducing misbranded food into interstate commerce with the intent to defraud, eight counts of interstate shipment fraud, and five counts of wire fraud.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “The FBI was brought in to this matter to provide additional resources and expertise to a complex and very serious investigation. We fully understand the victim impact as a result of this salmonella outbreak and will be asking to hear from other possible victims in this matter.”
The PCA indictment can be viewed at: www.justice.gov/iso/opa/resources/61201322111426350488.pdf.
Kilgore’s filed information can be viewed at: www.justice.gov/iso/opa/resources/22820132211141246302.pdf.
Individuals who feel that they may have been affected by or have become ill from tainted PCA products, and businesses that purchased products that were recalled as a result of the outbreak, should visit the following website for further details: https://forms.fbi.gov/pca-salmonella-tainted-product-case/
The case is being prosecuted by Trial Attorneys Patrick Hearn and Mary M. Englehart of the Consumer Protection Branch of the Civil Division of the Department of Justice and Assistant U.S. Attorney Alan Dasher of the Middle District of Georgia. Marietta Geckos, formerly a Trial Attorney with the Consumer Protection Branch, also worked on the prosecution. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations and the FBI.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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Three Armed Career Criminals Plead GuiltyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that three Georgia residents entered pleas of guilty in three separate Indictments before the Honorable Clay D. Land, United States District Judge for the Middle District of Georgia, in Columbus, Georgia, under the Armed Career Criminal Act of 1984. The Act provides for a mandatory minimum sentence of fifteen (15) years up to a maximum of life imprisonment for felons who possess a firearm after having been previously convicted of three or more prior violent felonies or serious drug crimes. Sentencing is scheduled for all three defendants on August 15, 2013.Jason Scott Carney of Columbus, Georgia, age 46, entered a guilty plea to Possession of a Firearm by a Convicted Felon, in violation of Title 18 United States Code, Section 922(g)(1) and 924(e)(1). The remaining counts were dismissed in consideration of this plea. Mr. Carney has sixteen (16) previous arrests and five (5) prior felony convictions.
Russell Scott Delevie of Columbus, Georgia, age 35, entered his guilty plea to Count One,
Possession of a Firearm by a Convicted Felon, in violation of Title 18 Unites States Code, Section 922(g)(1) and 924(e)(1). Mr. Delevie has eleven (11) previous arrests and five (5) prior felony convictions.Tommy Nykeal Johnson of Shellman, Georgia, age 36, entered a guilty plea to a One Count Indictment charging him with Possession of a Firearm by a Convicted, in violation of Title 18 United States Code, Section 922(g)(1)and 924(e)(1). Mr. Johnson has sixteen (16) previous arrests and five (5) prior felony convictions.
United States Attorney for the Middle District of Georgia Michael J. Moore stated that, “The Armed Career Criminal Act is one of the strongest weapons federal prosecutors have in fighting violent crime and making sure that repeat offenders are locked away when they illegally possess a firearm. These three defendants have been thorns in the side of their communities, and hopefully their lengthy incarcerations will provide some relief to the law-abiding citizens in the Columbus area.”
These cases were investigated by the Bureau of Alcohol, Tobacco, and Firearms and were prosecuted by Assistant United States Attorney Crawford Seals.
Questions concerning these cases should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office, at (478) 621-2602.
Georgia Man Admits Taking Bribes to Allow $1 Million Theft of Government Equipment from Marine BaseRead the Press Release
WASHINGTON – A retired employee of the Marine Corps Logistics Base Albany (MCLB-Albany) pleaded guilty today to receiving bribes in exchange for allowing heavy equipment to be stolen from the base for resale, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.Shelby C. Janes, 67, of Albany, Ga., pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During his guilty plea, Janes, the former civilian inventory control manager of the distribution management center at MCLB-Albany, admitted to participating in a scheme in which he assisted an individual, referred to in court documents as “Person A,” in stealing heavy equipment – such as cranes, bulldozers and front-end loaders – from the base. Person A, the owner of a commercial trucking business that was routinely contracted by the MCLB’s Defense Logistics Agency, then arranged to sell the equipment to private purchasers.
According to court documents, while working at the distribution management center, Janes was responsible for supervising a number of employees in the inventorying of obsolete equipment returning from the Fleet Marine Corps. This equipment was sent to MCLB-Albany for one of two purposes: to be demilitarized and disposed of through eventual sale or destruction, or to be rehabilitated, repaired and redistributed to the Fleet Marine Corps. To accomplish the theft scheme, Janes and one of his employees, referred to in court documents as “Public Official A,” facilitated the theft of the equipment, including by letting the equipment be driven off the base. Janes admitted that to facilitate the unlawful removal of the equipment, he typically prepared a false DD Form 1348 authorizing the Defense Logistics Agency to release the equipment to Person A, and that the equipment was then sold to private purchasers for tens of thousands of dollars.
Janes also admitted that he received payments from Person A after the sale of the stolen equipment, often delivered to him by Public Official A on behalf of Person A in the form of a check or cash, totaling approximately $98,500 during the approximately 15-month scheme. Janes admitted that the total loss to the Department of Defense from the theft of government equipment was approximately $1,075,000.
At sentencing, Janes faces a maximum potential penalty of 15 years in prison and a fine of twice the gain or loss from the offense. As part of his plea agreement with the United States, Janes agreed to forfeit the bribe proceeds he received from the scheme, as well as to pay full restitution to the Department of Defense. A sentencing date has not yet been set.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Justice Department’s Criminal Division Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Department of Defense, Office of Inspector General Defense Criminal Investigative Service.
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Distribution of Cocaine Base AKA Crack CocaineRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that two defendants from Eatonton, Georgia, Frank Eugene Mathis, age 37, and Shellany Omar Denham, age 29, entered pleas of guilty to Distribution of Cocaine Base a/k/a Crack Cocaine, in violation of Title 21 United States Code Section 841(a)(1) and 18 United States Code Section 2, before the Honorable C. Ashley Royal, United States District Court, Macon, Georgia. Sentencing has been set for April 24, 2013.Frank Eugene Mathis pled guilty to distributing more than 28 grams of cocaine base a/k/a crack cocaine. In addition, Mathis pled guilty to Possession of a Firearm by a Convicted Felon, in violation of Title 18 United States Code, Section 922(g)(1) and 924(a)(2).
This case was investigated by Putnam County Sheriff’s Office, Lt. Harry Luke and Drug Enforcement Administration Special Agent Hub Jordan. The case was prosecuted by Assistant United States Attorney Verda Colvin.
For additional information please contact Sue McKinney, Public Affairs Specialist at (478) 621-2602.
Joseph W. Jordan Sentenced to PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces the sentencing of Joseph Wiley Jordan, age 64, a resident of Dougherty County, Georgia, on January 30, 2013, in Albany, Georgia by the Honorable W. Louis Sands, United States District Judge for the Middle District of Georgia.
On June 4, 2012, Jordan was found guilty by a jury of four felony counts: Count One, Conspiracy to Make Bribes or Kickbacks to a Bank Officer, and Counts Three, Four and Five, Substantive Acts of Bribes and Kickbacks to a Bank Officer.
Defendant Jordan was sentenced to fifteen (15) months in the custody of the Bureau of Prisons and two years of supervised release after serving his sentence. Defendant Jordan was allowed to remain on bond pending his surrender to the Bureau of Prisons.
The case was jointly investigated by Agents of the Federal Bureau of Investigation and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Jim Crane for the Middle District of Georgia.
“This prosecution was successful because of the cooperation of our law enforcement partners and the hard work of the agents and the prosecutor assigned to the case,” said U.S. Attorney Michael Moore.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.
Georgia Tax Return Preparer Sentenced to Jail for Identity TheftRead the Press Release
WASHINGTON - Willie C. Grant, a tax return preparer from Macon, Ga., was sentenced to 60 months in prison by for filing false claims for tax refunds, theft of government money and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. U.S. District Court Chief Judge C. Ashley Royal also ordered Grant to pay over $200,000 in restitution to the IRS.
According to court documents, from 2003 through 2008, Grant owned and operated a tax return preparation business, Grant Income Tax Bookkeeping and Check Cash (GIT) out of his home in Macon. During this time period, Grant filed false federal income tax returns in the names of deceased individuals and used many of his former clients’ names and Social Security numbers to file wholly fraudulent returns without their knowledge or consent. Grant directed the IRS to either electronically deposit refunds into his personal or business bank accounts or issue paper refund Treasury checks which he cashed or deposited into bank accounts he controlled. Grant spent the proceeds of his false refund scheme on personal items including expensive cars and personal living expenses. Grant admitted that that he abused his position of private trust as a professional paid tax preparer in committing these crimes.
“Honest taxpayers are doubly harmed when they entrust return preparers with their information, who turn out to be thieves who steal that information to enrich themselves by making fraudulent refund claims,” said Assistant Attorney General Kathryn Keneally. “The Justice Department will investigate and prosecute stolen identity refund fraud in all of its various forms.”
“When Mr. Grant stole these identities and defrauded the IRS, he victimized not only the people whose names and social security numbers he used, but every tax paying citizen in the United States. My office, with the continued cooperation of our law enforcement partners, will make sure that people like Mr. Grant are held to account for their fraud,” said Michael Moore, U.S. Attorney for the Middle District of Georgia.
“Mr. Grant used a foundation of fraud and deceit in order to cheat the government and victimize innocent taxpayers and is now being held accountable for his egregious behavior,” said Richard Weber, Chief IRS Criminal Investigation. “As a paid tax preparer, Grant held a position of trust in the eyes of his clients. He violated that trust and caused immeasurable harm to innocent victims. 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 those individuals whose identities were stolen, as well as the U.S. tax system.”
Assistant Attorney General Keneally commended the efforts of special agents of IRS – Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Charles M. Edgar, Jr. and Justin K. Gelfand, who prosecuted the case.
Middle District of Georgia Grant Funds AvailableRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced today that grant funds are available to Middle District agencies through a Department of Justice solicitation.
The U.S. Department of Justice, Office of Justice Programs’ Bureau of Justice Assistance is seeking applications for funding under the FY 2013 Violent Gang and Gun Crime Reduction Program, also known as Project Safe Neighborhoods. In FY 2013, the Middle District is eligible to apply for up to $150,000 in grant funds to be used for enforcement, deterrence and prevention of gang and gun violence.
Applications are sought from state agencies, units of local government and non-profit organizations. Interested agencies are asked to submit a detailed budget, a narrative of the strategy, and purpose to the U.S. Attorney’s Office by February 19, 2013. A Selection Committee will review the applications, meet with the applicants and choose the agencies for which the Steering Committee will solicit funding in the grant application.“In this time of ever limited resources, we are very pleased to be able to assist Middle District agencies in locating funding opportunities such as this grant,” U.S. Attorney Michael Moore stated.
Interested organizations and agencies may contact Pamela Lightsey, Law Enforcement Coordinator, at 478-621-2603 for information regarding the application process and deadline.
The Grant Announcement can be viewed at: www.bja.gov/Funding/13PSNsol.pdf
Former Bank Teller ConvictedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that on January 16, 2013, a federal jury in Albany, Georgia, convicted defendant Victoria Metz, a former bank teller and a resident of Albany, Georgia, of 16 felony offenses. After a two day trial, the jury convicted defendant Metz of ten (10) counts of Embezzlement of Government Property in violation of Title 18 United States Code, Sections 641 & 2 and six (6) counts of Aggravated Identity Theft in violation of Title 18 United States Code, Sections 1028A and 2. Metz was acquitted of four (4) counts of Aggravated Identity Theft (Counts 13, 14, 15 and 17). United States District Court Judge W. Louis Sands presided over the trial.
The government’s evidence at trial showed that Metz, a former teller at Colony Bank in Leesburg, Georgia, knowingly cashed 23 stolen United States Treasury checks, all IRS refund checks of tax payers which bore the forged endorsements of the payees. Metz received the checks from a third party. On three occasions, Metz received $600 to $1,000 from the third party for her actions. Ms. Metz will be sentenced in approximately two months at a date scheduled by the Court.
“We take financial crimes and identity theft seriously, and will pursue individuals who attempt to profit from these schemes with the full resources of this office, said U.S. Attorney Moore.”
The case was investigated by the United States Secret Service andAssistant United States Attorney Jim Crane handled the prosecution.
For additional information, please contact Sue McKinney at the U.S. Attorney’s Office, at 478-621-2602.
Cordele, Georgia, Resident Indicted for Using Stolen Identities on False Tax ReturnsRead the Press Release
WASHINGTON – A federal grand jury in Macon, Ga., returned an indictment charging Kimberly Michelle Banks, a resident of Cordele, Ga., with crimes involving the use of stolen identities on false federal income tax returns in order to obtain refunds to which Banks was not entitled.
According to the six-count indictment, which charges her with aggravated identity theft and wire fraud, Banks illegally obtained stolen identity information and used this information to prepare false tax returns claiming refunds. She then electronically submitted these returns to the Internal Revenue Service and had the refunds deposited onto prepaid debit cards.
An indictment is merely a formal charge by the grand jury. The defendant is presumed innocent unless and until proven guilty in a U.S. District Court.
The case is being prosecuted by Trial Attorneys Alexander R. Effendi and Justin K. Gelfand of the Justice Department’s Tax Division and Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia. The case was investigated with the assistance of the IRS.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.
Dontreal Jenkins and Trevayne Jones Convicted of Embezzlement of Government Property and Aggravated Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that on January 11, 2013, a federal jury in Albany, Georgia, convicted defendants Dontreal M. Jenkins, and Trevayne D. Jones, both of Albany, Georgia, on Counts 1 through 5 of a superseding indictment on the following charges: Conspiracy to Embezzle Public Monies, United States Treasury checks in the amount of $700,000, Counts 2 and 4, Embezzlement of Government Property, and Counts 3 & 5, and Aggravated Identity Theft.
From about January 28, 2011, and continuing through on or about May 12, 2011, Jenkins and Jones, acting with others in a conspiracy to embezzle public monies, stole and cashed United States Treasury checks using, without lawful authority, the names and signatures of the intended payees. The jury further found Jones guilty on an additional count of misleading statements to law enforcement in connection with the embezzlement offense. Jenkins was convicted on an additional count of conspiracy to commit mail and wire fraud in connection with a scheme in which he participated to obtain student loan monies by fraud from the United States Department of Education.
The defendants face a maximum penalty of ten years per count as to each act of embezzlement, a $250,000 fine, and supervised release. Sentencing will be scheduled before Judge W. Louis Sands, United States District Judge for the Middle District of Georgia at a later date.
This theft of United States Treasury checks case was investigated by the United States Secret Service and the United States Department of Education Office of Inspector General investigated the student loan fraud. Assistant United States Attorney Jim Crane handled the prosecution.
For additional information, please contact Sue McKinney at the U.S. Attorney’s Office, at 478-621-2602.
Georgia Men Plead Guilty to Bribing Official to Secure Government ContractsRead the Press Release
WASHINGTON – Two men employed by a machine products vendor in Albany, Ga., have pleaded guilty to bribing a public official working for a military organization at the Marine Corps Logistics Base Albany (MCLB-Albany) to secure contracts for machine products, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Thomas J. Cole Jr., 43, and Fredrick W. Simon, 55, both of Albany, each pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During their guilty pleas, Cole, the general manager of an Albany-based machine products vendor, and Simon, an employee responsible for processing sales orders, admitted to participating in a scheme to secure sales order contracts from the Maintenance Center Albany (MCA) at MCLB-Albany by subverting a competitive bid process. The MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been utilized in military missions in Afghanistan and Iraq, as well as other parts of the world. To accomplish the scheme, Cole and Simon bribed a MCA purchase tech responsible for placing machine product orders. Cole and Simon admitted to participating in the scheme at the purchase tech’s suggestion, after Simon had spoken with the purchase tech about how his company could obtain business from the MCA. Cole and Simon admitted that, at the purchase tech’s request, they paid the purchase tech a bribe of at least $75 for each of the more than 1,000 sales orders MCA placed with their company. According to court documents, the purchase tech would transmit sales bids to Simon and then communicate privately to him exactly how much money the company should bid for each particular order. Cole and Simon admitted that these orders were extremely profitable, often times exceeding the fair market value of the machine products, sometimes by as much as 1,000 percent.
Cole and Simon further admitted that, at the purchase tech’s urging, in 2011 they began routing some orders through a second company, owned by Cole, because the volume of orders MCA placed with the first company was so high. They also admitted that the purchase tech increased the bribe required for orders as the scheme progressed. Cole and Simon admitted to paying the purchase tech approximately $161,000 in bribes during the nearly two-year scheme. Cole admitted to personally receiving approximately $209,000 in proceeds from the scheme; Simon admitted to personally receiving approximately $74,500. Both admitted that the total loss to the Department of Defense from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
At sentencing, Cole and Simon each face a maximum penalty of 15 years in prison and a fine of not more than twice the pecuniary loss to the government. As part of their plea agreements with the United States, Cole and Simon both agreed to forfeit the proceeds they received from the scheme, as well as to pay full restitution to the Department of Defense. Sentencing has not yet been scheduled.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Defense Criminal Investigative Service.