Northern District of Georgia
Press releases recorded for this federal judicial district.
Clarkston tax preparer sentenced for multi-year tax fraud and prohibited from preparing future returnsRead the Press Release
ATLANTA - Mohamed Hersi has been sentenced to federal prison for filing false tax returns. Hersi, who owned a tax preparation business, filed false returns on behalf of unwitting clients, collected more than $1 million in preparer fees, and then failed to disclose his own income to the IRS.
“The community trusted Hersi to provide sound tax advice to comply with our tax laws,” said U.S. Attorney Ryan K. Buchanan. “But Hersi betrayed his clients’ trust, pocketed their fees, and then lied on his own returns.”
“Tax return preparer fraud is a serious breach of responsibilities for themselves and on behalf of their clients, leading to degrading trust and confidence of our tax system,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS special agents and our law enforcement partners remain vigilant in upholding the integrity of the tax system and holding individuals accountable for their actions.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Hersi owned and operated Map Wireless Inc., d/b/a “1st Tax Center,” “Metro Tax Center,” and “Investment Financial Services” in Clarkston, Georgia. Between 2016 and 2020, Hersi prepared and filed false income tax returns for his clients that claimed false Schedule C items, withholdings, education credits, expenses, and itemized deductions to obtain inflated refunds to which his clients were not entitled.
On some occasions, Hersi provided one version of the return he planned to file to his clients, then filed a different version with the IRS which included both falsely claimed items and different direct deposit information. During the scheme, Hersi collected over $1.2 million in fees from his clients, but never disclosed that income to the IRS, resulting in a loss of more than $400,000.
Mohamed Hersi, 40, of Decatur, Georgia, was sentenced to two years in prison to be followed by one year of supervised release, and he was ordered to complete 40 hours of community service and to pay restitution in the amount of $439,543. Hersi’s sentence also includes a prohibition on his preparing taxes for others in the future.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Tiffany Dillingham prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta man sentenced for stealing identities to file false unemployment claimsRead the Press Release
ATLANTA - Jeremy Graves has been sentenced for theft of government funds and aggravated identity theft for stealing identities to file fraudulent Unemployment Insurance (“UI”) claims during the COVID-19 pandemic.
“Congress enacted the CARES Act to provide federal funds to assist unemployed workers during a national emergency,” said U.S. Attorney Ryan K. Buchanan. “Graves defrauded this critical program and stole the identities of others to perpetrate the crime. Our office will continue to partner closely with federal, state, and local investigators to prosecute individuals who commit benefits fraud at the expense of citizens for whom this support is essential.”
“Jeremy Graves defrauded multiple state unemployment insurance (UI) systems by using the personally identifying information (PII) of identity theft victims, including the PII of deceased individuals, to submit fraudulent UI claims. DOL-OIG will continue to work with our federal and state partners to protect the integrity of UI benefit programs,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.
According to U.S. Attorney Buchanan, the charges and other information presented in court: During the period from about July 2020 until October 2020, Graves filed approximately 39 UI applications, using 37 different stolen identities, in the states of Georgia, Arizona, California, Maryland, and Nevada. He directed payment of the benefits to designated debit cards. To conceal his identity, he directed the debit cards to be sent to various addresses around the Atlanta area, all near or close by his residence. He then fraudulently received more than $200,000 in UI benefits from the states of Georgia and California.
Graves’s scheme unraveled when the Department of Labor, the agency who oversees the UI program, determined that multiple applications in multiple states had been filed from Graves’s residence. Graves had contacted a bank about multiple UI debit cards issued to multiple individuals. A search of Graves’s cell phone revealed a search history for “unemployment fraud,” “California unemployment,” and several of the addresses where he directed the debit cards be sent.
Jeremy Graves, 39, of Atlanta, Georgia, has been sentenced by U.S. District Judge Sarah E. Geraghty to three years, eleven months in prison to be followed by three years of supervised release, and ordered to pay $209,214 in restitution; $193,179 to Georgia Department of Labor and $16,035 to California EDD. Graves was convicted on the charges on August 23, 2023, after he pleaded guilty.
This case was investigated by the Department of Labor - Office of Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Defendants arraigned in international firearms trafficking caseRead the Press Release
ATLANTA - Grevaughn Sanchez Goodman, Shavonte Justin Summers, Tranquilo G. Goodman, and Demetrius Lamont Randolph, Jr., have been arraigned on federal charges of conspiracy to deal in firearms without a license. Additionally, Grevaughn Goodman was arraigned on a charge of firearms trafficking conspiracy in violation of Title 18, United States Code, Section 933(a)(3), a new statute passed by Congress in June 2022. A fifth defendant, Dexter Wellington Roberts, III, is not yet in federal custody. He is charged with conspiracy to deal in firearms without a license, firearms trafficking conspiracy, and smuggling.
“Illegally purchasing firearms on behalf of others is a serious crime that frequently places guns in the hands of individuals prohibited from possessing a firearm,” said U.S. Attorney Ryan K. Buchanan. “Many of the firearms allegedly traced to the defendants in this case were recovered from criminals in Canada.”
“Among ATF’s top priorities is ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice. This is an excellent example of such an investigation that was worked cooperatively by multiple partner agencies with outstanding results,” said Acting Assistant Special Agent in Charge Raymond Connor.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Beginning in mid-December 2022, Dexter Roberts allegedly began conspiring with a Canadian citizen and other individuals to obtain large numbers of firearms in the southeastern United States and to resell them to others, including in Canada and Mexico.
From December 2022 through February 2023, Roberts personally made retail purchases of at least 49 firearms. In January 2023, Grevaughn Goodman allegedly began purchasing firearms for the conspiracy, buying more than 50 guns from January through April 2023. Tranquilo Goodman, Grevaughn’s brother, allegedly joined the conspiracy by March 2023 and bought at least 11 firearms that month. Shavonte Summers allegedly joined the conspiracy by May 2023, and bought over 50 firearms in May and June 2023. Demetrius Randolph allegedly joined the conspiracy in June 2023, and bought at least 10 guns over two days from five different licensed firearms dealers.
During the investigation of the conspiracy, law enforcement officers completed four bulk seizures of firearms, totaling over 120 weapons in all, and including a load of 47 firearms seized from Roberts in Henry County, Georgia. Additionally, numerous other weapons allegedly purchased by defendants in this case have been seized by law enforcement throughout the United States, Canada, and Mexico.
Grevaughn Sanchez Goodman, a/k/a “The General,” 23, of Homestead, Florida, Shavonte Justin Summers, 22, of Homestead, Florida, Tranquilo G. Goodman, 24, of Miramar, Florida, and Demetrius Lamont Randolph, Jr., 23, of Homestead, Florida, were all arraigned before U.S. Magistrate Judge Linda T. Walker.
Dexter Wellington Roberts, III, a/k/a “Science,” 43, of Austell, Georgia, is not yet in federal custody. Roberts was arrested in mid-October in the Bahamas on another weapons charge. He is charged with conspiracy to deal in firearms without a license, dealing in firearms without a license, firearms trafficking conspiracy and smuggling. Roberts, Goodman, Summers, Goodman and Randolph were indicted by a federal grand jury on October 24, 2023.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from U.S. Department of Commerce’s Bureau of Industry and Security (BIS).
Assistant U.S. Attorney Alana R. Black is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Operator of durable medical equipment companies admits role in $11 million dollar kickback schemeRead the Press Release
ATLANTA – A Texas man and owner of two durable medical equipment companies has pleaded guilty to conspiracy for his role in a scheme to pay illegal kickbacks, resulting in more than $20 million submitted in claims to, and $11 million in payment from, Medicare.
“Medicare is a vital program that exists to assist our most vulnerable citizens,” said U.S. Attorney Ryan K. Buchanan. “Our office will continue to prosecute those who exploit this institutional safety net for personal profit at the expense of patients and taxpayers.”
“When health care companies try to boost their profits through kickbacks arrangements, they compromise the medical system and increase health care costs for everyone,” says Sean Burke, Assistant Special Agent in Charge of FBI Atlanta.” The FBI is committed to preventing illegal financial relationships that undermine the integrity of our public healthcare programs.”
“Kickbacks impose hidden costs on the health care system and can compromise medical decision-making,” said Tamala Miles, Special Agent in Charge with the U.S. Department of Health and Human Services Office of the Inspector General. “Working tirelessly with our law enforcement partners, HHS-OIG will continue to combat the waste of valuable taxpayer dollars and protect the integrity of federal health care programs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between at least in or about June 2016 and February 2019, Simon Orobor owned and operated Devotion Medical Supply, Inc (“Devotion”) and Durable Medical Supply, Inc. (“Durable”), which provided durable medical equipment such as knee, back, shoulder, and wrist braces. Orobor, through another entity called Digital Interventions, LLC, obtained access to thousands of Medicare beneficiaries by paying, on a weekly basis, kickbacks to Individual 1 and Company 1 in exchanged for signed doctors’ orders for braces. Orobor and Individual 1 disguised the nature and source of these kickbacks by designating the payments as marketing expenses, entering into sham contracts, and generating or causing the generation of fraudulent invoices.
In total, Orobor, through Devotion and Durable, used the doctors’ orders obtained through kickbacks to submit claims to Medicare in the approximate amount of $20,555,772 and received Medicare reimbursement in the approximate amount of $11,447,961.
Simon Orobor, 60, of Houston, Texas pleaded guilty to one count of conspiracy to pay health care kickbacks. Sentencing is scheduled for February 15, 2024 before U.S. District Judge Mark H. Cohen.
This case is being investigated by the Federal Bureau of Investigation and Department of Health and Human Services Office of the Inspector General.
Assistant U.S. Attorney David A. O'Neal is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Twenty-Three Gang Members and Associates Indicted on Racketeering, Drug Trafficking, and Firearm ChargesRead the Press Release
A 12-count indictment was unsealed in the Northern District of Georgia charging 23 defendants – all alleged Sex Money Murder (SMM) gang members and associates – with crimes including racketeering conspiracy, drug trafficking, and firearms violations.
According to court documents, SMM is a subset of The Bloods gang, which originated in Los Angeles in the early 1970s. The SMM subset has spread from the Bronx and New York to areas across the East Coast, including Georgia, where it operates inside and outside prisons and jails. The indictment alleges an extensive criminal enterprise in which SMM members, including inmates within the Georgia Department of Corrections (GDOC), orchestrated numerous crimes, including murders, attempted murders, attempted arson, drug trafficking within and outside of GDOC facilities, and wire and bank fraud. Eleven of the defendants were in prison when they allegedly committed or ordered the charged crimes.
“The defendants and their criminal associates are alleged to have committed murder, engaged in stabbings and attempted murder, and distributed thousands of dollars’ worth of illicit drugs inside and outside the Georgia prison system, all to enhance the power and prestige of their gang, the Sex Money Murder set of The Bloods,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “With this RICO indictment, the Criminal Division, along with our federal, state, and local partners, again shows its commitment to hold accountable and bring to justice violent gang members who terrorize our communities and attempt to control our country’s prison systems.”
“Gang activity poses a grave risk of harm to our communities as well as to many of our institutions,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The defendants charged in this case allegedly perpetrated numerous violent and other criminal offenses, including multiple murders, brutal assaults, and drug trafficking crimes, on behalf of the gang Sex Money Murder. For more than a decade, these gang members and their associates allegedly orchestrated a criminal enterprise within and outside of multiple prisons to earn money for, boost their status in, and impose discipline required by the gang. This indictment is the culmination of a lengthy and carefully coordinated federal and state law enforcement investigation aimed at dismantling this violent group.”
“The FBI and its partners will not stand by as members of an elaborate criminal enterprise engage in acts that endanger our communities,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “There are consequences for partaking in illegal activity, and this does not change when some of the bad actors are already behind bars. We will continue to ensure that members of the Sex Money Murder gang face justice for their alleged misconduct, which includes drug trafficking, firearms violations, and egregious violence.”
“It’s alarming to think that these criminals were brazen enough to distribute dangerous drugs and commit heinous crimes while behind bars,” said Special Agent in Charge Robert J. Murphy of the Drug Enforcement Administration (DEA) Atlanta Division. “They must now face the consequences.”
The indictment alleges that the defendants or other SMM members committed multiple acts of violence in furtherance of the racketeering conspiracy, including storming a home and shooting multiple rounds of ammunition into a bathroom, killing a 9-month-old boy; on multiple occasions, incarcerated SMM members murdering, stabbing, or beating other inmates for disrespecting SMM leadership or violating SMM rules; and shooting and killing another SMM member on belief that the member had cooperated with law enforcement.
The following defendants have been charged in the indictment for conduct related to their alleged roles in the Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy and related crimes:
- Ryan Brandt, aka Street Life and Robert Kraft, 44, of Hays State Prison in Trion, Georgia, is charged with RICO conspiracy, conspiring, aiding, and abetting, and possessing a controlled substance and a controlled substance analogue with the intent to distribute;
- Kyle Oree, aka Nasty Nu, 52, of Washington State Prison in Davisboro, Georgia, is charged with RICO conspiracy, conspiring to possess and possessing a controlled substance with intent to distribute and a controlled substance analogue with the intent to distribute;
- Chase Pinckney, aka Chase Pickney, Three Shots, Noriega, and Sinatra, 38, of Ware State Prison in Waycross, Georgia, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Elton Jackson, aka 2gz and John Madden, 41, of Telfair State Prison in Helena, Georgia, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Sean Carr, aka Nut and Nutkase, 51, of FCI Talladega in Talladega, Alabama, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Lavorsia Jones, aka Shitbag, 23, of Dacula, Georgia, is charged with RICO conspiracy and conspiring, attempting, and possessing a controlled substance with intent to distribute and possessing a controlled substance analogue with the intent to distribute;
- Danielle Ford, 49, of Ellenwood, Georgia, is charged with RICO conspiracy, conspiring to possess a controlled substance with intent to distribute, and possessing a controlled substance analogue with the intent to distribute;
- Charlton King, aka Hell’s Militant Camp, 23, of Valdosta, Georgia, is charged with RICO conspiracy;
- Demarco Draughn, aka Shoota B, 28, of Macon State Prison in Oglethorpe, Georgia, is charged with RICO conspiracy;
- Richard Smith, aka Alleyway and Brett Favre, 36, of Ware State Prison in Waycross, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Rontavious Fowler, aka Lil Hot, 26, of Hancock State Prison in Sparta, Georgia, is charged with RICO conspiracy;
- Shavon Thomas, aka Shavon Edwards, 55, of Decatur, Georgia, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Lionel Edwards, aka Tony, Tyson, and Python, 41, of USP Florence in Florence, Colorado, is charged with RICO conspiracy;
- Anthony Jernigan, aka Hell Raiser, 36, of Hays State Prison in Trion, is charged with RICO conspiracy;
- Cedric Pierre, aka Flip, 23, of Robert A. Deyton Correctional Facility in Lovejoy, Georgia, is charged with RICO conspiracy and conspiring to possess and possessing a controlled substance with the intent to distribute;
- Ricardo Sanchez, 40, of Macon State Prison in Oglethorpe, is charged with conspiring to possess and possessing a controlled substance with the intent to distribute;
- Troy McCraine, 57, of Tennessee, is charged with conspiring to possess a controlled substance with the intent to distribute;
- Qawwee Mitchell, 36, of Gainesville, Georgia, is charged with conspiring to possess and possessing a controlled substance with the intent to distribute, possession of a firearm by a convicted felon, and possessing a firearm during and in relation to a drug trafficking crime;
- Sherri Gandy-Torres, 56, of Lakeland, Florida, is charged with conspiring to possess and possessing a controlled substance with the intent to distribute;
- Nyla Blacknell, 43, of Duluth, Georgia, is charged with conspiring to possess and possessing a controlled substance with the intent to distribute and possessing a firearm during and in relation to a drug trafficking crime;
- Tracey Wise, 46, of Milledgeville, Georgia, is charged with conspiring to possess a controlled substance with the intent to distribute;
- Shounnette Wooten, 50, of Gray, Georgia, is charged with conspiring to possess a controlled substance with the intent to distribute; and
- Kierra Williams, 31, of Milledgeville, Georgia, is charged with conspiring to possess a controlled substance and possessing a controlled substance analogue with the intent to distribute.
If convicted, the defendants face penalties including up to life in prison for the racketeering conspiracy, 10 years to life in prison for the narcotics conspiracy and drug trafficking charges, and five years to life in prison for the firearms offenses.
The FBI, the Atlanta-Carolinas High Intensity Drug Trafficking Areas Program, the DEA, and the Georgia Department of Corrections are investigating the case, with valuable assistance from the Georgia Attorney General’s Office, the Georgia Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Prisons, the U.S. Marshals Service, the Georgia Department of Community Supervision, the Georgia State Patrol, the Brookhaven Police Department, the Butts County Sheriff’s Office, the DeKalb County Police Department, the Douglasville Police Department, the East Point Police Department, the Fulton County Sheriff’s Office, the Gwinnett County Police Department, the Marietta Police Department, the Riverdale Police Department, the Sandy Springs Police Department, and the South Fulton Police Department.
Trial Attorney Lisa M. Thelwell of the Criminal Division’s Violent Crime and Racketeering Section (VICAR) and Assistant U.S. Attorney Theodore S. Hertzberg for the Northern District of Georgia are prosecuting the case, and former VICAR Trial Attorney Rebecca R. Dunnan previously prosecuted the case.
The indictment is a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Appraiser in Billion-Dollar Fraudulent Tax Shelter Sentenced to A Year in PrisonRead the Press Release
A North Carolina man was sentenced today to 12 months in prison for his role in conspiring to defraud the United States in a syndicated conservation easement tax shelter scheme – involving inflated charitable contribution deductions – that claimed more than $1.3 billion in fraudulent tax deductions.
According to court documents and statements made in court, from 2008 to 2019, Walter “Terry” Douglas Roberts II, of Flat Rock, North Carolina, conspired with others to fraudulently inflate the value of the conservation easements upon which the tax deductions were based.
At the trial of his co-conspirators, Jack Fisher and James Sinnott, Roberts testified that he became a licensed appraiser in 2007 and began providing appraisals of conservation easements that same year. From 2008 through 2019, as part of the scheme, Roberts said that he fraudulently inflated the values of at least 18 conservation easements by, among other things, not following normal appraisal methods, making false statements and either personally manipulating or relying on knowingly manipulated data to reach a targeted appraisal value – communicated to him by co-conspirators – that would result in the desired tax deduction amount. Roberts admitted that he inflated some of his appraisals by at least 600%. The 18 conservation easements Roberts fraudulently appraised as part of the scheme claimed approximately $466,961,000 in tax deductions, resulting in a tax loss to the IRS exceeding $129,000,000.
Fisher and Sinnott were convicted at trial and are presently awaiting sentencing for their crimes. To date, at least five additional defendants have pleaded guilty to criminal conduct related to Fisher’s syndicated conservation easement tax shelters, including Stein and Corey Agee, Ralph Anderson, James Benkoil and Randall Lenz.
In addition to his prison sentence, U.S. District Judge Timothy C. Batten for the Northern District of Georgia ordered Roberts to serve three years of supervised release, perform 120 hours of community service and pay $129,210,760 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia and Chief James C. Lee of IRS Criminal Investigation (IRS-CI) made the announcement.
IRS-CI and the U.S. Postal Inspection Service investigated the case.
Trial Attorneys Richard M. Rolwing, Grace Albinson, Parker Tobin, Jessica Kraft and Nicholas J. Schilling Jr. of the Tax Division and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section for the Northern District of Georgia prosecuted the case,
Twenty-three gang members and associates indicted on racketeering, drug trafficking, and firearm chargesRead the Press Release
ATLANTA – A 12-count indictment was unsealed last week in the Northern District of Georgia, charging 23 defendants, all alleged Sex Money Murder (SMM) gang members and associates, with racketeering conspiracy, drug trafficking, and firearms violations.
“Gang activity poses a grave risk of harm to our communities as well as to many of our institutions,” said U.S. Attorney Ryan K. Buchanan. “The defendants charged in this case allegedly perpetrated numerous violent and other criminal offenses, including multiple murders, brutal assaults, and drug trafficking crimes, on behalf of the gang Sex Money Murder. For more than a decade, these gang members and their associates allegedly orchestrated a criminal enterprise within and outside of multiple prisons to earn money for, boost their status in, and impose discipline required by, the gang. This indictment is the culmination of a lengthy and carefully coordinated federal and state law enforcement investigation aimed at dismantling this violent group.”
“The defendants and their criminal associates are alleged to have committed murder, engaged in stabbings and attempted murder, and distributed thousands of dollars’ worth of illicit drugs inside and outside the Georgia prison system, all to enhance the power and prestige of their gang, the Sex Money Murder set of The Bloods,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “With this RICO indictment, the Criminal Division, along with our federal, state, and local partners, again shows its commitment to hold accountable and bring to justice violent gang members who terrorize our communities and attempt to control our country’s prison systems.”
“For too long, criminal gangs have wreaked havoc on our streets, destroying families, neighborhoods, and communities. Georgia residents deserve to exist without fear and intimidation inflicted by violent gangs,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “To alleged gang members and others infecting our streets—the FBI and our law enforcement partners will find and prosecute you no matter how long it takes or where you are living.”
“This extremely labor-intensive investigation would not have been possible without the hard work and commitment demonstrated by the investigating Agents, Task Force Officers, and Prosecutors. These indictments are a culmination of the collaborative efforts by all agencies involved; our communities are safer because of this investigation,” said Dan Salter, the Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area.
“It’s alarming to think that these criminals were brazen enough to distribute dangerous drugs and commit heinous crimes while behind bars,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “They must now face the consequences.”
“Gang activity inside correctional facilities throughout our state continues to be a challenge, and we are using every resource at our disposal to combat this issue,” said Georgia Department of Corrections Commissioner Tyrone Oliver. “As one of Governor Kemp’s initiatives is to fight gang activity, our agents work non-stop with our law enforcement partners statewide, and this is yet another example of that vital collaboration,” continued Oliver. “We appreciate the support of our local, state, and federal partners in ensuring that justice is served on these individuals.”
“With the creation of Georgia’s first statewide Gang Prosecution Unit, we’re working with all levels of law enforcement to investigate and prosecute criminal gang activity wherever it occurs,” said Georgia Attorney General Chris Carr. “Alongside our partners at the Georgia Department of Corrections, we will continue to hold accountable those who use a contraband cellphone to direct further violence from behind bars. Our top priority is to protect our fellow Georgians, and that’s exactly what we’re fighting to do each day.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: SMM is a national gang and subset of The Bloods gang, which originated in the early 1970s in Los Angeles, California. The SMM subset spread from the Bronx, New York area across the East Coast, including Georgia, where it operates inside and outside prisons and jails.
The indictment alleges an extensive criminal enterprise in which inmates within the Georgia Department of Corrections (GDOC), often using contraband cellphones, orchestrated numerous crimes, including murders, attempted murders, attempted arson, drug trafficking – within and outside the GDOC, and fraud. Eleven of the defendants were in prison when they allegedly committed or ordered the charged offenses.
The indictment alleges that SMM is organized into subgroups, called “sets” or “lines,” which are responsible for carrying out the affairs of the gang within their individual territories. Typically, each set or line is responsible for representing SMM through the commission of criminal activities, the generation of financial proceeds, the resolution of internal and external conflicts, and the enforcement of strict adherence to SMM rules and protocols. Each set or line has its own “line-up,” or hierarchy of ranked gang members from each territory. A set or line and its leaders fall under higher-ranking national leaders, including the “Royal Flush,” and are ultimately subject to the overall command of “Royal Flush” members.
Certain SMM members hold a specific rank within the gang or within a specific set or line. Specific duties and responsibilities are associated with each rank. The SMM rank structure often includes a delineation between incarcerated members (“behind the wall”) and non-incarcerated members (“on the streets”). In many instances, leadership “behind the wall” also exerts control over membership “on the streets.”
The indictment alleges that the defendants committed multiple acts of violence in furtherance of the racketeering conspiracy, including that:
- On or about May 10, 2014, following the directive of an SMM leader, four SMM members and associates stormed a home in DeKalb County, Georgia and shot multiple rounds of ammunition into a bathroom, killing a nine-month-old boy.
- On or about March 13, 2017, at Autry State Prison in Pelham, Georgia, defendant Cedric Pierre and another SMM member repeatedly stabbed another inmate on orders from defendant Chase Pinckney.
- On or about October 11, 2017, defendant Demarco Draughn murdered an inmate at Hancock State Prison on orders from defendant Anthony Jernigan because the inmate had allegedly violated one of SMM’s rules.
- On or about March 20, 2019, defendant Rontavious Fowler murdered an inmate at Smith State Prison in Glennville, Georgia.
- On or about May 10, 2020, at Hancock State Prison in Sparta, Georgia, SMM members isolated another SMM member in a prison cell, tied him up, and repeatedly stabbed him on suspicion that the SMM member had allegedly violated one of the gang’s rules.
- On or about May 11, 2020, at GDOC’s Special Management Unit, defendants Demarco Draughn and Rontavious Fowler repeatedly stabbed another inmate, as directed by SMM leadership.
- On or about November 5, 2020, defendant Chase Pinckney authorized the beating of an inmate at Ware State Prison in Waycross, Georgia on suspicion that the inmate had allegedly violated one of SMM’s rules.
- On or about December 9, 2020, an SMM member shot and killed another gang member in Griffin, Georgia, on belief that the member had cooperated with law enforcement.
- Between on or about January 31 through on or about February 4, 2021, defendant Cedric Pierre directed SMM members to set fire to a drug customer’s home in Colbert, Georgia.
The following defendants have been charged in the indictment for conduct related to their alleged roles in the RICO conspiracy and related crimes:
- Ryan Brandt, a/k/a Street Life and Robert Kraft, 44, of Hays State Prison in Trion, Georgia, is charged with RICO conspiracy, conspiring, aiding and abetting, and possessing a controlled substance and a controlled substance analogue with the intent to distribute;
- Kyle Oree, a/k/a Nasty Nu, 52, of Washington State Prison in Davisboro, Georgia, is charged with RICO conspiracy and conspiring to possess and possessing a controlled substance and a controlled substance analogue with the intent to distribute;
- Chase Pinckney, a/k/a Chase Pickney, Three Shots, Noriega, and Sinatra, 38, of Ware State Prison in Waycross, Georgia, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Elton Jackson, a/k/a 2gz and John Madden, 41, of Telfair State Prison in Helena, Georgia, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Sean Carr, a/k/a Nut and Nutkase, 51, of FCI Talladega in Talladega, Alabama, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Lavorsia Jones, a/k/a Shitbag, 23, of Dacula, Georgia, is charged with RICO conspiracy, conspiring, attempting, and possessing a controlled substance with the intent to distribute, and possessing a controlled substance analogue with the intent to distribute;
- Danielle Ford, 49, of Ellenwood, Georgia, is charged with RICO conspiracy, conspiring to possess a controlled substance with the intent to distribute, and possessing a controlled substance analogue with the intent to distribute;
- Charlton King, a/k/a Hell’s Militant Camp, 23 of Valdosta, Georgia, is charged with RICO conspiracy;
- Demarco Draughn, a/k/a Shoota B, 28, of Macon State Prison in Oglethorpe, Georgia, is charged with RICO conspiracy;
- Richard Smith, a/k/a Alleyway and Brett Favre, 36, of Ware State Prison in Waycross, Georgia, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Rontavious Fowler, a/k/a Lil Hot, 26, of Hancock State Prison in Sparta, Georgia, is charged with RICO conspiracy;
- Shavon Thomas, a/k/a Shavon Edwards, 55, of Decatur, Georgia, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Lionel Edwards, a/k/a Tony, Tyson, and Python, 41, of USP Florence in Florence, Colorado, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Anthony Jernigan, a/k/a Hell Raiser, 36, of Hays State Prison in Trion, Georgia, is charged with RICO conspiracy;
- Cedric Pierre, a/k/a Flip, 23, of Robert A. Deyton Correctional Facility in Lovejoy, Georgia, is charged with RICO conspiracy and conspiring to possess and possessing a controlled substance with the intent to distribute;
- Ricardo Sanchez, 40, of Macon State Prison in Oglethorpe, Georgia, is charged with conspiring to possess and possessing a controlled substance with the intent to distribute;
- Troy McCraine, 57, of Tennessee, is charged with conspiring to possess a controlled substance with the intent to distribute;
- Qawwee Mitchell, 36, of Gainesville, Georgia, is charged with conspiring to possess and possessing a controlled substance with the intent to distribute, possession of a firearm by a convicted felon, and carrying a firearm during and in relation to a drug trafficking crime;
- Sherri Gandy-Torres, 56, of Lakeland, Florida, is charged with conspiring to possess and possessing a controlled substance with the intent to distribute;
- Nyla Blacknell, 43, of Duluth, state, is charged with conspiring to possess and possessing a controlled substance with the intent to distribute and carrying a firearm during and in relation to of a drug trafficking crime;
- Tracey Wise, 46, Milledgeville, Georgia, is charged with conspiring to possess a controlled substance with the intent to distribute;
- Shounnette Wooten, 50, of Gray, Georgia, is charged with conspiring to possess a controlled substance with the intent to distribute; and
- Kierra Williams, 31, of Haddock, Georgia, is charged with conspiring to possess a controlled substance with the intent to distribute and possessing a controlled substance analogue with the intent to distribute.
Nine of the defendants were arrested on November 8, 2023 and appeared in U.S. District Court in Atlanta, Georgia and Albany, Georgia the same day. Eight additional defendants were arraigned in Atlanta on November 9, 2023.
The case was investigated by the Federal Bureau of Investigation, Atlanta-Carolinas High Intensity Drug Trafficking Areas Program and Drug Enforcement Administration, and Georgia Department of Corrections, with valuable assistance from the Georgia Attorney General’s Office, Georgia Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Prisons, U.S. Marshals Service, Georgia Department of Community Supervision, Georgia State Patrol, Brookhaven Police Department, Butts County Sheriff’s Office, DeKalb County Police Department, Douglasville Police Department, East Point Police Department, Fulton County Sheriff’s Office, Gwinnett County Police Department, Marietta Police Department, Riverdale Police Department, Sandy Springs Police Department, and South Fulton Police Department.
Assistant U.S. Attorney Theodore S. Hertzberg of the Northern District of Georgia, and Trial Attorney Lisa M. Thelwell of the Justice Department’s Violent Crime and Racketeering (VICAR) Section are prosecuting the case, and former VICAR Trial Attorney Rebecca R. Dunnan previously prosecuted the case.
The indictment is a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florida business owners plead guilty for their role in durable medical equipment fraud schemeRead the Press Release
ATLANTA - Brett Weiner and Valerie Desalvo have pled guilty to federal conspiracy charges for their role in buying and selling fake doctors’ orders used to obtain over $1.5 million in fraudulent payments from Medicare.
“Durable Medical Equipment fraud schemes involve much more than simply bilking the Medicare system,” said U.S. Attorney Ryan K. Buchanan. “These schemes exploit our most vulnerable citizens in the name of personal greed, and our office is committed to finding and prosecuting those involved.”
“Health care fraud is all about the money,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully this case and the work of our special agents with their financial expertise will be a deterrent to anyone thinking about abusing federal healthcare programs to line their own pockets.”
“Kickbacks can corrupt medical decision-making, resulting in medically unnecessary durable medical equipment and services. Such schemes can affect the availability of medically needed services and drive up the cost of health care for everyone,” stated Special Agent in Charge Tamala Miles with the U.S. Department of Health and Human Services Office of Inspector General. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Brett Weiner and Valerie Desalvo owned and operated Laboratory Marketing Services, LLC (“LMS”), a business in Boca Raton, Florida. LMS was in the business of, among other things, receiving kickback payments in exchange for patient “leads,” consisting of billable Medicare beneficiaries’ personal identifying information. Defendants Weiner and Desalvo received bribes from DME companies such as Medihealth Medical Solutions, LLC, located in Amory, Mississippi, and Liberty Medical DME, LLC, in Atlanta, Georgia, in exchange for the leads. These “leads” included, among other information, each Medicare beneficiary’s name, Medicare number, diagnoses, pain level, and primary care physician.
Through LMS, Weiner and Desalvo also bought and sold signed doctors’ orders from Nagaindra Srivastav and his company B2B Apps Solutions, LLC in Tampa, Florida, which they sold to DME companies. A substantial portion of the doctors’ orders that Weiner and Desalvo purchased from Srivastav and B2B contained forged signatures or purported approvals of physicians or other health care providers whose names and professional identifying information were used without their authorization or knowledge.
In total, Weiner and Desalvo, through LMS, caused the submission of more than $.15 million in false and fraudulent claims to Medicare, which generated approximately $715,000 in payments, for braces that were procured through the payment of illegal kickbacks and bribes and were ineligible for Medicare reimbursement.
Brett Weiner, 61, of Atlanta, Georgia, and Valerie Desalvo, 58, of Boca Raton, Florida, each pleaded guilty to one count of conspiracy to pay health care kickbacks. Sentencing is scheduled for February 8, 2024, at 10:00 a.m. before U.S. District Judge Steve C. Jones.
This case is being investigated by the Federal Bureau of Investigation and Department of Health and Human Services Office of the Inspector General.
Assistant U.S. Attorney David A. O'Neal is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
DeKalb man charged for allegedly threatening U.S. RepresentativeRead the Press Release
ATLANTA – Sean Patrick Cirillo has been charged with transmitting interstate threats to injure Congresswoman Marjorie Taylor Greene and her staff on November 8, 2023. Cirillo made his initial appearance in federal court today.
“Cirillo’s alleged threats to harm the Congresswoman and her staff are intended to sow fear in our public servants,” said U.S. Attorney Ryan K. Buchanan. “Any individual who threatens or seeks to intimidate government officials should expect to be swiftly charged and vigorously prosecuted.”
“Unlawful threats against our elected officials are an assault against our democracy,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “No one should fear violence because of who they are or what they believe. The FBI will continue to work with our law enforcement partners to seek justice in these cases.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On November 8, 2023, Sean Patrick Cirillo called Congresswoman Greene’s District of Columbia office twice and threatened violence against her, her staff, and their families.
During one of the calls, Cirillo said: “Yeah, I got a bead on her. Like, a sniper rifle. A sniper rifle. And I’m gonna kill her next week. I’m gonna murder her. I’m gonna shoot her in the [expletive] head, okay? Tell the FBI, okay? I’m gonna kill this [expletive]. Tell her. I’ll kill you too if you want.” Cirillo went on to shout, “You don’t think you’re gonna get payback? You’re gonna die! Your family is gonna die! [Expletive!] You don’t think it’s gonna happen when you’re out of power?”
Sean Patrick Cirillo, 34, of DeKalb County, Georgia, was charged by criminal complaint on November 9, 2023. Members of the public are reminded that the criminal complaint only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Bret R. Hobson and Brent Alan Gray are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Drug traffickers sentenced after smuggling millions of dollars worth of cocaine from Haiti hidden in butterRead the Press Release
ATLANTA - Amos Christolin is the last defendant to be sentenced for his role in a scheme to smuggle dozens of kilograms of cocaine hidden in tubs of butter from Haiti and distribute the drugs within the United States, including through the Atlanta area.
“Dangerous drugs smuggled from overseas threaten our communities and risk serious disruption to our international carriers,” said U.S. Attorney Ryan K. Buchanan. “We are grateful for the excellent coordination of our federal, state, and local law enforcement, and international, partners who made this successful investigation and prosecution possible.”
“Together, we were able to prevent a substantial amount of drugs from reaching the streets. I’m proud to stand alongside our partner agencies as we work to stop these criminal enterprises that pollute our neighborhoods with their poison,” said Acting Special Agent in charge Travis Pickard who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI will continue to work with our federal, state and local law enforcement partners to disrupt and dismantle these drug trafficking organizations and prevent them from flooding our communities with illicit drugs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On August 24, 2017, U.S. Customs and Border Protection officers in Miami, Florida conducted a border search of a shipment bound for the Atlanta, Georgia area. The shipment entered the United States from Haiti. The search revealed 28 packages of white powder hidden within tubs of Haitian butter. The packages tested positive for cocaine and weighed approximately 28 kilograms.
Homeland Security Investigations Special Agents in Atlanta made a controlled delivery of the drugs to the shipment’s intended destination, a business in Austell, Georgia. Vital Joseph arrived to pick up the shipment.
Further investigation revealed that the source of supply for these drugs, Jean Yves-Durogel, had shipped at least four previous loads of cocaine hidden in butter from Haiti to Joseph in the United States. Joseph then distributed these drugs to individuals in the Miami, Florida, area previously identified to him by Durogel. One of these individuals was Amos Christolin. In all, agents determined that more than 100 kilograms of cocaine had been shipped from Haiti to the United States. The wholesale price for these drugs would have exceeded $3 million.
Amos Christolin, also known as “Patizan,” 52, of Miami, Florida, has been sentenced to 10 years in prison to be followed by five years of supervised release. A jury convicted Christolin of the charges on August 4, 2023.
U.S. District Judges Amy Totenberg and Steve C. Jones, respectively, previously sentenced the co-defendants as follows:
- Jean Yves Durogel, 48, of Port-au-Prince, Haiti, received a sentence of six years, eight months in prison to be followed by five years of supervised release; and
- Vital Joseph, 47, of Douglasville, Georgia, received a sentence of six years, six months in prison to be followed by five years of supervised release.
This case was investigated by Homeland Security Investigations, with valuable assistance provided by U.S. Customs and Border Protection, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Transportation Office of Inspector General, the Douglas County Sheriff’s Office, Georgia State Patrol, and the Republic of Haiti.
Assistant U.S. Attorneys Nicholas N. Joy and C. Brock Brockington prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Snellville doctor pays $225,000 to resolve allegations for improper billingRead the Press Release
ATLANTA – Saima Syed, M.D. (“Dr. Syed”), Atlanta Medical and Aesthetic Center, Inc. d/b/a AIM Medical Center (“Syed Practice Group”), and Rehan Syed have agreed to pay $225,000 to resolve allegations that they violated the False Claims Act by, among other things, billing the government for office visits that were not medically necessary, were not provided as claimed, and were not supported by patient medical records.
“Physicians who attempt to unlawfully obtain funds from government healthcare programs by padding their bills siphon scarce resources from vital programs,” said U.S. Attorney Ryan K. Buchanan. “This settlement represents our office’s commitment to ensure accountability for physicians who place their greed over following the rules established by Medicare and Medicaid.”
“Physicians who put their own profits above their professional responsibilities to their patients and to honestly billing federal health programs put both patient well-being and taxpayer funding at risk,” said Tamala E. Miles, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Our agency, working closely with our law enforcement partners, will continue to investigate health care fraud schemes to protect these safety net programs and the enrollees relying on them.”
“Our office works diligently to protect the integrity of Georgia’s Medicaid program,” said Georgia Attorney General Chris Carr. “Through enforcement actions like this settlement, we’re able to retrieve taxpayer dollars that have been unlawfully diverted and return them to the public good they’re intended to serve.”
This settlement resolves allegations that from January 2, 2018, to February 12, 2021, Saima Syed knowingly submitted false claims to federal healthcare programs for office visits that were not as complex or lengthy as Saima Syed purported. This is a practice commonly known as “upcoding.” The government also alleged that Saima Syed submitted claims of certain office visits to federal healthcare programs as though she had personally provided the service, even though she was travelling out of the country at the time these services were allegedly performed.
The settlement also resolves allegations in a lawsuit filed by Herretta Pickens and Tahirah McCloud, both of whom are former Syed Practice Group employees, under the qui tam, or whistleblower, provisions of the False Claims Act. The False Claims Act authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States ex rel. Pickens and McCloud v. Atlanta Medical and Aesthetic Center, Inc. d/b/a AIM Medical Center et al., No. 1:20-CV-4556-JPB.
The investigation of this matter was handled by Assistant U.S. Attorney Austin M. Hall, Assistant Attorney General Sara Vann, and Assistant Attorney General Mary Bryan. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The Georgia Attorney General’s Medicaid Fraud Division receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $4,871,744 for Federal FY 2024. The remaining 25 percent, totaling $1,623,912 for FY 2024, is funded by the State of Georgia.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Kennesaw man sentenced for attempting to entice minor for sexRead the Press Release
ATLANTA - Joshua Herrera, who attempted to arrange to meet a minor girl for sex online, has been sentenced to federal prison for enticing a minor to engage in illegal sexual activity.
“Online predators, like Herrera, mistakenly believe that they can anonymously exploit social media and apps to sexually abuse young children,” said U.S. Attorney Ryan K. Buchanan. “But the tireless efforts of federal, state, and local investigators make it possible to hold these perpetrators accountable. We strongly encourage parents to remain vigilant in monitoring their children’s use of electronic devices and to immediately report suspicious activity to law enforcement.”
“The severity of this sentence clearly reflects the threat Herrera posed to the community and is the greatest message the FBI can send to anyone who would think about harming a child in this way,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This is case shows the lengths the FBI will go to thwart child predators and we are thankful for the hard work of our team that connected with Herrera before he could get to an innocent child.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On November 19, 2019, Joshua Herrera communicated online with an undercover special agent and expressed interest in performing sex acts on a minor girl, requested photographs of the child, and arranged to meet the girl. On January 16, 2020, Herrera drove from Athens, Georgia, to a pre-arranged location in metro-Atlanta where he believed he would meet the child. FBI special agents arrested him upon his arrival.
Joshua Herrera, 29, of Kennesaw, Georgia, was sentenced by U.S. District Judge Steven D. Grimberg to 19 and a half years in prison to be followed by a lifetime of supervised release. He is also required to register as a sex offender. Herrera was convicted of the offense on March 30, 2023, after a four-day jury trial.
The FBI investigated this case.
Assistant U.S. Attorneys Stephanie Gabay-Smith and Jesika W. French prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta penitentiary guard pleads guilty to theft from an inmate and PPP fraudRead the Press Release
ATLANTA - Andy Steven Johnson, a correctional officer and member of the Special Investigative Services team at the United States Penitentiary in Atlanta, pleaded guilty to stealing money from an inmate’s CashApp account and also using a business that did not exist to fraudulently apply for a Paycheck Protection Program loan.
“Johnson exploited his position at the prison to victimize inmates and steal from them,” said U.S. Attorney Ryan K. Buchanan. “He also tried to steal pandemic disaster relief funds by defrauding the Paycheck Protection Program, all while being responsible for seizing contraband and investigating misconduct at the prison. The Department of Justice will prosecute corrupt insiders and seek to hold them accountable for their misconduct.”
“Johnson committed brazen acts of theft and fraud. Rather than conducting himself with integrity, he sought to personally gain, stealing from an inmate and attempting to fraudulently obtain pandemic relief funds meant to help those with legitimate hardships. The Department of Justice Office of the Inspector General will aggressively pursue justice for victims of these kinds of shameless acts,” said Sandra D. Barnes, Deputy Assistant Inspector General for the Investigations Division at the DOJ OIG.”
“Lying to gain access to economic stimulus funds will be met with justice,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “SBA OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Since January 2015, Johnson worked as a correctional officer at the U.S. Penitentiary in Atlanta. Starting in December 2018, he was assigned to the Special Investigative Services (“SIS”) team, where he was responsible for conducting investigations into inmate misconduct, including smuggling and possession of contraband. As part of his SIS duties, he searched inmates and seized various types of contraband, including drugs, tobacco, and cell phones. In that role, on January 13, 2021, Johnson seized a contraband mobile phone from an inmate. Instead of processing the phone pursuant to policy, he opened CashApp on the phone and transferred $300 to his own CashApp account. He later transferred those funds into his personal checking account.
Johnson also defrauded the Paycheck Protection Program (“PPP”), which was part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act – a federal law enacted in March 2020 that was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized an initial $349 billion in loans to small businesses for payroll, mortgage interest, rent/lease, and utilities through the PPP program. Congress subsequently increased the amount of funding. PPP loans did not have to be paid back if certain conditions were met.
On March 4, 2021, Johnson submitted an online application for a PPP loan for a business named Performance Customs. Johnson claimed on the application that the business had operated since January 1, 2020; produced an annual revenue of $76,000 and paid an average monthly payroll of $6,333; and would use the PPP loan proceeds to pay wages, rent or mortgage interest, and utilities for the business. Based on that application, Johnson was approved for a forgivable loan of $15,832. In reality, Performance Customs did not exist and Johnson had completely fabricated the information on the application.
Andy Steven Johnson, 42, of Peachtree City, Georgia, pleaded guilty to theft by an employee of the United States and wire fraud. Sentencing is scheduled for February 7, 2024, at 10:00 a.m. before U.S. District Judge Eleanor L. Ross.
Assistant U.S. Attorney Garrett L. Bradford, Chief of the Public Integrity and Civil Rights Section, is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former chief scientist at the Georgia Tech Research Institute sentenced for conspiring to defraud Georgia Tech and the CIARead the Press Release
ATLANTA - James G. Maloney, who served as the Chief Scientist for the Georgia Tech Research Institute (GTRI), has been sentenced to federal prison for conspiring to defraud Georgia Tech and the Central Intelligence Agency (CIA). Maloney’s co-conspirators, James J. Acree and James D. Fraley, III—both of whom pleaded guilty in 2016 and cooperated with the government—were also sentenced.
“Maloney, who was trusted to work on classified contracts for the U.S. government, took advantage of his high position at GTRI to line his own pockets at the public’s expense,” said U.S. Attorney Ryan K. Buchanan. “In addition to losing his job and his top-secret security clearance, Maloney is now facing a prison sentence and will be required to pay more than $1.9 million in restitution.”
“Maloney’s sentence should send a clear message to anyone seeking to abuse their positions for personal gain, the FBI will find you and hold you accountable”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Thanks to our extraordinary partnership with Georgia Tech, even with Maloney’s defense tactics he was unable to avoid the consequences of his crimes. He will now be held accountable with his coconspirators, closing out this lengthy case.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: From early 2007 through late 2013, Maloney, Acree, and Fraley engaged in a scheme to defraud Georgia Tech and the CIA. The men are experts in electromagnetic analysis and measurements and were assigned to GTRI’s Advanced Concepts Laboratory (ACL), where they worked on projects funded by the United States Department of Defense, various intelligence agencies, and private industry.
PCard Fraud
As part of his duties and responsibilities at GTRI, Fraley had access to a Georgia Tech credit card known as a “PCard.” Fraley was only authorized to use his PCard to purchase materials and supplies for official Georgia Tech business. Neither Fraley nor anyone else was allowed to charge personal expenses on a PCard.
Maloney, Acree, and Fraley falsely led GTRI to believe that all of their PCard charges were for official business. In fact, they charged approximately $200,000 in frivolous personal expenses on Fraley’s PCard. Maloney and Fraley also used Fraley’s PCard to pay for remodeling and maintenance expenses related to six rental properties that they owned together in the name of a Georgia corporation called J’s Services, Inc.
Some of the fraudulent PCard charges and some of the remodeling and maintenance expenses for Maloney and Fraley’s rental properties were fraudulently charged to a classified GTRI contract funded by the CIA.
Fraudulent Consulting Activity
In February 2007, Maloney and Acree were reprimanded by GTRI for engaging in outside consulting activity that violated Georgia Tech’s conflict-of-interest policy. Maloney and Acree sent a letter to their supervisor at GTRI, acknowledging that they had used facilities and equipment owned by Georgia Tech for their personal gain and benefit and promising that they would never do so again. But Maloney and Acree continued to engage in outside consulting activity that harmed Georgia Tech, and they were soon joined by Fraley.
Tec-Masters Inc.
From December 2007 through March 2013, while they were employed full-time by Georgia Tech, Maloney, Acree, and Fraley received approximately $500,000 from Picatinny Arsenal, SRA International, and the U.S. Air Force. They obtained those consulting contracts by using Acree’s former employer, Tec-Masters, Inc., as a billing pass-through. Tec-Masters, a defense contractor located in Huntsville, Alabama, performed no labor on any of the projects but merely facilitated the transfer of money from the customers to Maloney, Acree, and Fraley. Maloney, Acree, and Fraley falsely led those customers to believe that the work would be done by GTRI. They fostered this false impression by using their official GTRI telephone numbers and GTRI email addresses in their communications with customers. In addition, they met with customers at GTRI’s headquarters on the Georgia Tech campus and gave customers tours of GTRI’s labs and other facilities. Maloney called this conduct “hiding in plain sight.”
Spectra Research, Inc.
From December 2010 through July 2013, Maloney and Fraley also moonlighted as consultants for Spectra Research, Inc., a defense contractor located in Dayton, Ohio. Spectra paid J’s Services $196,000 for this work. Maloney and Fraley directed Georgia Tech employees under their supervision at GTRI to help perform this consulting work for Spectra. Maloney and Fraley also directed those Georgia Tech employees to bill time for Spectra work to a classified CIA contract, even though that contract had nothing to do with Spectra.
In their outside consulting work, Maloney, Acree, and Fraley violated Georgia Tech’s conflict-of-interest policy and code of business conduct; diverted customers and revenue away from Georgia Tech for their personal gain; and used Georgia Tech facilities and equipment for their personal benefit.
Cover-up
During a routine audit in early 2013, Georgia Tech discovered problematic charges on Fraley’s PCard and scheduled a meeting with him. Maloney suggested to Acree and Fraley that they meet to get their “story straight.” Fraley, fearing that Maloney would seek to shift all the blame to him, recorded the cover-up meetings and provided those recordings to the FBI.
In their cover-up meetings, Maloney asked Acree and Fraley to help him create a fictitious story to mislead Georgia Tech auditors. Maloney also suggested that they try to force Georgia Tech to shut down the audit by telling the auditors that the items charged to Fraley’s PCard were purchased for use on a classified CIA contract, and that the auditors did not need to know further details. That false narrative foreshadowed Maloney’s planned defense in the criminal case.
James G. Maloney, 58, of Marietta, Georgia, was sentenced to five years, ten months in prison to be followed by three years of supervised release and ordered to pay restitution of $1,972,543.61. Maloney was convicted on these charges on May 22, 2023, after he pleaded guilty.
James J. Acree, 58, of Atlanta, Georgia, was sentenced to serve three years on probation, with the first 12 months to be served on home confinement, and ordered to pay restitution of $604,692.56. Acree was convicted on these charges on August 15, 2016, after he pleaded guilty.
James D. Fraley, III, 45, of Canton, Georgia, was sentenced to serve three years on probation, with the first eight months to be served on home confinement, and ordered to pay restitution of $476,960.95. Fraley was convicted on these charges on September 2, 2016, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys John Russell Phillips and Stephen H. McClain and Trial Attorney Emma D. Ellenrieder of the Department of Justice National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Five individuals sentenced for their role in sex trafficking schemeRead the Press Release
ATLANTA – Five individuals have been sentenced for their involvement in a sex trafficking scheme that occurred throughout the Northern District of Georgia. The conduct came to light after a minor victim was reported missing in Miami, Florida when her parents realized she failed to board a flight to Honduras. The minor had been transported by two defendants to Georgia and forced to commit commercial sex acts and participate in “sex parties.”
“Sex trafficking exploits and traumatizes some of the most vulnerable members of our society,” said U.S. Attorney Ryan K. Buchanan. “Sex trafficking victims from immigrant communities can be especially fearful of reporting these crimes. So, our office is grateful for the diligence of our federal, state, and local law enforcement partners who remained steadfast in achieving the trust of the victims in this case and helping to secure justice for these young girls and their families.”
“These criminals were more concerned with their own selfishness and greed than the terrible circumstances they exposed minors to,” said Brian Ozden, Assistant Special Agent in Charge of FBI Atlanta. “These crimes are among the most depraved on the books. With a victim-centered approach, the FBI will continue working with our law enforcement partners to hold those who choose to prey on our most vulnerable citizens accountable.”
“The investigators and U.S. Attorney’s office did a great job prosecuting this case. I am pleased that the Dalton Police Department was able to play a role in getting these individuals off the streets,” said Dalton Police Chief Cliff Cason.
According to U.S. Attorney Buchanan, the charges and other information presented in court: Brian Hernandez Acosta, along with co-defendants Nilageo Alvarez Acosta, Jaime Adam Riano, Anthony Joseph Lawhon, and Brandi Rice Stumpe, conspired to traffic minor girls for commercial sex throughout North Georgia. Beginning in or around November 2015, and continuing until December 2016, the defendants caused at least six girls between 16 and 17 years old to engage in prostitution, including by using force, fraud, and coercion.
Hernandez Acosta, after pursuing some of the girls on Facebook and Snapchat, posted provocative photographs of them in the adult entertainment and escort sections of Backpage.com, a classified advertisement website seized by the Department of Justice. Hernandez Acosta used these ads to solicit men to engage in sex with the minors for money. The advertisements used fake names for the minors and falsely listed the girls’ ages as between 19 through 21 years old.
Hernandez Acosta and his brother, Alvarez Acosta, forced one 16-year-old girl to engage in sex with men after driving her from Florida to Georgia after falsely claiming they would provide the girl a place to live. The defendants required the young girls to engage in sex acts with multiple men each night and kept a large portion of the money they earned. Riano acted as the co-defendants’ driver and transported the minors to hotel locations throughout the district, where the girls were forced to engage in commercial sex acts.
Between July 2016 and December 2016, co-defendants Anthony Joseph Lawhon and Brandi Rice Stumpe hosted numerous sex parties at their residence in Canton, Georgia, where they engaged in sex acts with minor girls and young women, while plying them with alcohol and cocaine. Investigators recovered images of some of this conduct on Hernandez Acosta’s cellphone. Lawhon paid Hernandez Acosta thousands of dollars in exchange for commercial sex and cocaine.
Chief U.S. District Judge Timothy C. Batten, Sr. sentenced the defendants for their respective roles in the criminal scheme as follows:
- Jaime Adam Riano, 34, of East Ridge, Tennessee, was sentenced to seven years in prison to be followed by 10 years of supervised release. Riano pleaded guilty on November 17, 2017, to two counts of sex trafficking children under 18 years old.
- Nilageo Alvarez-Acosta, 37, of Camaguey, Cuba, was sentenced to 23 years in prison to be followed by 20 years of supervised release. Alvarez-Acosta pleaded guilty on April 11, 2019, to the offense of sex trafficking of a minor, transportation of a minor for prostitution, and two counts of conspiracy to commit sex trafficking of a minor.
- Hernandez Acosta, 32 of Havana, Cuba, was sentenced to 30 years in prison to be followed by 20 years of supervised release. Acosta was sentenced after pleading guilty on July 1, 2019, to conducting a child exploitation enterprise, sex trafficking minors by force, fraud, or coercion, sex trafficking of children under 18 years old, transporting a minor in interstate commerce for prostitution, producing child pornography, and distributing cocaine to a person under 21 years old.
- Brandi Rice Stumpe, 40, of Powder Springs, Georgia, was sentenced to five years in prison to be followed by five years of supervised release, including 100 hours of community service. Stumpe pleaded guilty on August 5, 2020, to the offense of conspiracy to commit sex trafficking of a minor.
- Anthony Joseph Lawhon, 44, of Atlanta, Georgia, was sentenced to 10 years in prison to be followed by a lifetime of supervised release after pleading guilty on April 14, 2022, to the offense of conspiracy to commit sex trafficking of a minor.
This case was investigated by the Federal Bureau of Investigation and the Dalton Police Department. The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Georgia Bureau of Investigation, and the Murray County Sheriff’s Office also provided assistance.
Assistant U.S. Attorneys Dash A. Cooper and Phyllis Clerk, and former Assistant U.S. Attorney Suzette Smikle, prosecuted the case.
This case is part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Alabama man indicted for threatening Fulton County District Attorney and Sheriff regarding Trump caseRead the Press Release
ATLANTA - Arthur Ray Hanson, II, has been indicted by a federal grand jury in Atlanta on charges of transmitting interstate threats to injure Fulton County District Attorney Fani Willis and Fulton County Sheriff Patrick Labat because of their connections to the Fulton County, Georgia, investigation of former President Donald Trump. Hanson made his initial appearance in federal court in Huntsville and will be formally arraigned in Atlanta on November 13, 2023.
“Sending interstate threats to physically harm prosecutors and law enforcement officers is a vile act intended to interfere with the administration of justice and intimidate individuals who accept a solemn duty to protect and safeguard the rights of citizens,” said U.S. Attorney Ryan K. Buchanan. “When someone threatens to harm public servants for doing their jobs to enforce our criminal laws, it potentially weakens the very foundation of our society. Our office will labor tirelessly with our federal, state, and local law enforcement partners to help ensure that law enforcement officials are free to serve our communities without the threat of physical attack.”
“Threats against public servants are not only illegal, but also a threat against our democratic process,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI’s mission is to protect the American people and uphold the Constitution. We take this responsibility very seriously and seek to punish those who engage in this type of criminal behavior, and to send the message that such conduct will not be tolerated.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: On August 6, 2023, Arthur Ray Hanson called the Fulton County Government customer services line twice and left two voicemails—the first for Sheriff Labat and the second for District Attorney Willis. During both calls, Hanson threatened violence against the officials.
In his message for the Sheriff, Hanson made statements that included: “if you think you gonna take a mugshot of my President Donald Trump and it’s gonna be ok, you gonna find out that after you take that mugshot, some bad [expletive]’s probably gonna happen to you;” “if you take a mugshot of the President and you’re the reason it happened, some bad [expletive]’s gonna happen to you;” “I’m warning you right now before you [expletive] up your life and get hurt real bad;” “whether you got a [expletive] badge or not ain’t gonna help you none;” and “you gonna get [expletive]ed up you keep [expletive]ing with my President.”
In Hanson’s message for the District Attorney, he made statements that included: “watch it when you’re going to the car at night, when you’re going into your house, watch everywhere that you’re going;” “I would be very afraid if I were you because you can’t be around people all the time that are going to protect you;” “there’s gonna be moments when you’re gonna be vulnerable;” “when you charge Trump on that fourth indictment, anytime you’re alone, be looking over your shoulder;” and “what you put out there, [expletive], comes back at you ten times harder, and don’t ever forget it.”
Arthur Ray Hanson, II, 59, of Huntsville, Alabama, was indicted October 25, 2023. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Bret R. Hobson and Brent Alan Gray are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia emissions inspector pleads guilty to fraudulent emissions testsRead the Press Release
ATLANTA - Mehboobhusain Malik, who performed thousands of fraudulent emissions tests, has pleaded guilty to violating the Clean Air Act.
“The Georgia emissions program exists to protect our community’s air quality,” said U.S. Attorney Ryan K. Buchanan. “With his guilty plea, Malik admits that he essentially sold his position as a licensed emissions inspector by issuing fake emissions certificates for cars that should have failed the test.”
“This case demonstrates how local, state, and federal agencies work together to uphold and enforce laws designed to protect human health and the air that we breathe,” said Sara Lips, Director of Communications and Community Engagement for the Georgia Environmental Protection Division. “It further underscores EPD’s emphasis on compliance and enforcement in the Enhanced Inspection and Maintenance Program to ensure Georgia and Metro Atlanta continues to meet the National Ambient Air Quality Standards.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Under the Clean Air Act (the “Act”), states with areas that exceed the National Ambient Air Quality Standards must implement a vehicle inspection and maintenance program. In Georgia, implementation of the Act requires motor vehicle emissions testing in multiple counties, including Fulton, DeKalb, and Gwinnett. To perform the tests, a licensed emissions inspector logs into the Georgia Analyzer System (“GAS”) using biometric technology, inputs the Vehicle Identification Number and license plate number, and conducts the emissions inspection. Once the test is complete, the GAS uploads the test record to allow the vehicle to be registered if the test is passed, or blocked if the test is failed.
Since May 1, 2002, Georgia has been testing 1996 and newer vehicles by using their On Board Diagnostic (“OBD”) systems to check for emissions compliance. The OBD II is accessed through a 16-pin data connector, generally located beneath the vehicle’s dashboard. Simulators have been developed to allow auto manufacturers to simulate different conditions when they design new engines and/or vehicles. Because the simulators are designed to work with vehicle diagnostic tools, these simulators have the same 16-pin data connection as a vehicle’s actual OBD II system and can be used fraudulently to perform an emissions test.
Mehboobhusain Malik was an emissions inspector for Georgia who used his biometric login to initiate emissions tests. For vehicles that could not pass the emissions test, Malik and his confederates programmed a simulator with the vehicle information of the non-passing vehicle. The emissions test was run while the system was attached to the simulator in order to pass the test. That way, Malik falsely attributed the passing test to the vehicle that was programed into the simulator, allowing the vehicle to be improperly registered.
Malik performed thousands of these fraudulent emissions tests at multiple testing locations in the Atlanta metro area.
Mehboobhusain Malik, 72, of Lilburn, Georgia, pleaded guilty to one count of violating the Clean Air Act. Sentencing is scheduled for January 18, 2024, before U.S. District Judge Mark H. Cohen.
This case is being investigated by the U.S. Environmental Protection Agency-Criminal Investigation Division and the Georgia State Environmental Protection Division.
Assistant U.S. Attorney Christopher J. Huber is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Cobb County man receives 20-year sentence for producing child pornographyRead the Press Release
ATLANTA – Billy Calhoun has been sentenced for producing child pornography. Calhoun convinced multiple minor girls he met online to send him sexually explicit videos and images by pretending he was a teenage boy.
“Calhoun took advantage of the anonymity the Internet provides to target and victimize young girls,” said U.S. Attorney Ryan K. Buchanan. “While social media can provide a forum for young people to safely connect with family and friends, this case should serve as a reminder to parents that vigilance of their children’s online activity is critical.”
“This sentence ensures Billy Calhoun will not harm children in our community for a long time. We hope his victims will be able to recover from the emotional scars left by his actions,” said FBI Atlanta Special Agent in Charge Keri Farley. “The FBI will continue to work to ensure justice is served on those who commit these terrible crimes.”
“Our detectives work tirelessly to make sure the most vulnerable are given a voice and those who would do them harm are brought to justice,” said Cobb County Police Chief Stuart VanHoozer. “We are proud of our working relationship with our local and federal partners to ensure the full weight of the justice system is brought to bear on those who would victimize our communities’ children.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Calhoun came to the attention of law enforcement in February 2020 after the Cobb County Police Department (“CCPD”) received a call from a local middle school regarding the alleged exploitation of one of its teenage students. CCPD was advised that an older male—later identified as Calhoun—brought lunch to a 14-year-old girl. The girl told school administrators that the older male was her boyfriend’s uncle and explained to them that she had a 16-year-old boyfriend, “Zack,” who she met on Instagram several months earlier. Investigators learned that the girl had never actually met or seen “Zack” but that she had sent him nude photos using a cell phone. They also learned that “Zack” bought her gifts, including a cell phone and two laptops. Several weeks after initially speaking with the 14-year-old girl, CCPD learned that Calhoun had attempted to pick her up at school without her mother’s permission. CCPD subsequently arrested Calhoun on state charges.
During a post-arrest interview with CCPD detectives, Calhoun admitted that he was “Zack” and pretended to be a 16-year-old when he learned the girl was 14 years old. Calhoun also admitted to receiving sexually explicit videos from her. CCPD later executed several search warrants on Calhoun’s cellular phones and residence. As a result, the FBI later identified at least three other minor girls Calhoun met online who sent him sexually explicit videos and/or photos. Investigators also discovered at least hundreds of other images and videos of child pornography.
Billy Calhoun, 32, of Acworth, Georgia, was sentenced by Judge William H. Ray, II to 20 years in prison, followed by five years of supervised release. Calhoun will also have to register as a sex offender. Calhoun pleaded guilty to one count of production of child pornography on March 17, 2023.
This case was investigated by the Federal Bureau of Investigation and the Cobb County Police Department.
Assistant U.S. Attorneys Alex R. Sistla and Katie Terry prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Social Security employee pleads guilty to stealing government benefitsRead the Press Release
ATLANTA – Latonja Goodrum, a former Social Security employee who used her position to steal benefits from disabled Supplemental Security Income (SSI) beneficiaries, has pleaded guilty to a federal charge of theft of government funds.
“Disabled and low-income citizens rely on the safety net afforded by the Social Security Administration,” said U.S. Attorney Ryan K. Buchanan. “Goodrum abused her position at the agency to unlawfully access and use sensitive and personal information to steal thousands of dollars from individuals in critical need of these funds.”
“Former SSA employee, Goodrum, admitted to inappropriately using information in SSA records to steal money from SSI recipients, seemingly without regard for their needs. Her actions were selfish and criminal,” said Gail S. Ennis, Inspector General for the Social Security Administration. “She misused her position of public trust with SSA and knowingly took money from individuals who rely on SSA employees for assistance in critical times. My office will continue to investigate those who violate SSA programs and operations. I thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Diane C. Schulman for prosecuting this case.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From approximately June through August 2022, Goodrum, a claims specialist at the Social Security Administration’s field office in Decatur, Georgia, illegally accessed the records of six SSI beneficiaries. Goodrum then used the personal identifying information of these individuals to divert one-time lump sum payments they were due to her own PayPal account. Once the funds were deposited into her PayPal account, Goodrum transferred the money to a personal bank account.
To conceal her scheme, Goodrum, once the deposits arrived in her PayPal account, re-accessed the beneficiaries’ Social Security records to restore their true direct deposit banking information. Goodrum stole more than $15,000 in this way. A supervisor eventually detected the fraud and contacted the Social Security Administration – Office of the Inspector General, which launched an investigation. Goodrum admitted her crime when confronted by law enforcement and has since been terminated from her position.
Sentencing for Goodrum, 55, of Stone Mountain, Georgia, is scheduled for January 22, 2024, at 10:00 am before U.S. District Judge Steven D. Grimberg.
This case is being investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Owners of timeshare resale company sentenced to federal prison for defrauding over 8,000 victims out of $18 millionRead the Press Release
ATLANTA – Jess Kinmont and John P. Wenz, Jr. have been sentenced for operating a timeshare resale scam business that affected more than 8,000 victims nationwide, many of them elderly. The victims lost more than $18 million based on the defendants’ false promises that they could help timeshare owners sell or rent their timeshare properties.
“The defendants monetized their clients’ trust to commit a multi-state fraud scheme that enabled them to steal millions of dollars from more than 8,000 victims, including many seniors who were particularly misled by the defendants’ false promises,” said U.S. Attorney Ryan K. Buchanan. “Kinmont and Wenz solicited hefty up-front fees based on fraudulent representations that they would sell and rent the victims’ timeshare properties. Their sentences demonstrate that federal law enforcement will not cease to prosecute those who commit fraud of this type.”
“For years, Kinmont and Wentz ran the scam without once selling a timeshare interest, only a series of lies,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Exploitation like this has a crippling effect on victims. The FBI and our partners will continue to pursue financial fraudsters who exploit anyone for personal and financial gain.”
“Kinmont and Wenz deserve their time in federal prison for deceiving elderly Americans trying to get out of timeshares” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Kinmont and Wenz lined their pockets by scamming thousands of victims, and we’ll continue to target fraudsters who prey on the American public with the help of our law enforcement partners.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between January 2012 through December 2016, Kinmont and Wenz operated Pro Timeshare Resales, a timeshare resale business. The defendants hired callers and developed scripts for those callers to use in targeting timeshare property owners to defraud.
Using the scripts, the defendants and others acting at their direction called timeshare owners and falsely claimed that Pro Timeshare Resales had a buyer or renter ready and willing to buy or rent their properties for a specific price. The defendants also falsely promised to sell the timeshares quickly, sometimes within a specific time period. But Kinmont and Wenz’s representations and promises were false. In reality, they never sold a single timeshare interest during the five years of the scheme’s operation.
Kinmont and Wenz charged timeshare property owners up to $2,500 in advance while lying and failing to deliver on their promises. Even after the timeshare owners paid the advance fee, Kinmont and Wenz strung some timeshare owners along with additional false claims. For instance, the defendants assured owners that they would soon receive the proceeds from a sale or rental, and often convinced the owners to pay additional purported closing costs or other fees as a part of these fake transactions. Consumers’ requests for refunds were typically denied or ignored. Together, Kinmont and Wenz defrauded at least 8,000 victims of more than $18 million. The district court judge noted at sentencing that the defendants’ fraud scheme was “breathtaking” in scope.
On October 12, 2023, Jess Kinmont, 57, of Port Orange, Florida, was sentenced by Chief Judge Timothy C. Batten, Sr. to seven years in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $11,699,376.60. The sentence was imposed following Kinmont’s guilty plea to wire fraud conspiracy on April 5, 2023.
On October 12, 2023, John P. Wenz Jr., 43, of Palm Coast, Florida, was sentenced by Chief Judge Timothy C. Batten to three years, 10 months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $4,845,425.88. The sentence was imposed following Wenz’s guilty plea to wire fraud conspiracy on April 1, 2021.
This case was investigated by the Federal Bureau of Investigation with valuable assistance from the Federal Trade Commission. The FTC previously prosecuted a civil fraud case against the defendants in the U.S. District Court for the Middle District of Florida.
Assistant U.S. Attorneys Bernita B. Malloy and Jesika W. French prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Atlanta attorney convicted of stealing millions of dollars from clientsRead the Press Release
ATLANTA - Matthew Allen Dickason, who was the owner of an Atlanta law firm, has pleaded guilty to federal charges arising from a scheme to defraud the firm’s clients.
“It is shameful for an attorney to abuse the trust placed in him by his clients, but that is exactly what Dickason did,” said U.S. Attorney Ryan K. Buchanan. “He misappropriated millions of dollars belonging to his clients for his personal benefit with no regard for how his clients would be affected.”
“Wire fraud is an offense that the FBI takes very seriously, especially when innocent victims are being defrauded. In this case, it is especially troubling that the crime was orchestrated by a lawyer who swore an oath to uphold the law and represent his clients with integrity,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Dickason was in debt through his own fault and chose to steal from his clients and firm to pay back that debt and finance his business. Now he will pay back his debt to society in prison.”
“We remain steadfast in our commitment to working with the U.S. Attorney’s Office and our law enforcement partners to aggressively investigate those who threaten HUD programs,” said HUD OIG Special Agent in Charge Jerome Winkle. “The criminal actions by this former attorney violated his clients trust and his oath to uphold the law. His actions put many taxpayer-insured FHA mortgages at risk of default through his scheme.”
“FHFA-OIG aggressively investigates mortgage fraud schemes, and this one was especially egregious,” said Edwin Bonano, Special Agent in Charge of FHFA-OIG’s Southeast District. “The victims lost millions as a result of the scheme perpetrated by someone—an attorney, no less—who should have followed all the tenets of the law.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Matthew Allen Dickason was an attorney licensed to practice law in the State of Georgia and was the owner of Matthew A. Dickason, P.C., a law firm located in Atlanta, Georgia. The firm specialized in real estate law and was responsible for overseeing hundreds of real estate sales transactions totaling tens of millions of dollars.
Dickason accepted funds on behalf of clients seeking to purchase real estate. He was not permitted to use his clients’ money to pay his own debts and expenses. Nevertheless, Dickason misappropriated millions of dollars belonging to his clients. The majority of the misappropriated funds were used to pay his law firm’s operating expenses. After misappropriating client funds, he used new client funds to complete prior real estate transactions.
To hide his fraud, Dickason caused fabricated information to be uploaded into his law firm’s accounting system to make it appear the firm was paying off a seller’s mortgage when, in fact, Dickason was misappropriating client funds for his own use.
Dickason continued to misappropriate client funds until it became impossible to continue. By that point, victims had suffered millions of dollars in losses.
Matthew Allen Dickason, 47, formerly of Atlanta, Georgia, and now living in Wellington, Ohio, pleaded guilty to wire fraud. Sentencing is scheduled for January 17, 2024 before U.S. District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development-Office of Inspector General, and the Federal Housing Finance Agency-Office of Inspector General.
Assistant U.S. Attorney Russell Phillips is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Doctor pleads guilty in dark web murder-for-hire plotRead the Press Release
ATLANTA –James Wan, M.D., has pleaded guilty to paying a hitman he found on the dark web to murder his girlfriend.
“Wan used the dark web to conceal his deadly plan,” said U.S. Attorney Ryan K. Buchanan. “Fortunately, his plot was discovered before anyone was killed or injured.”
"Despite his cowardly concealment on the dark web, Wan’s cold hearted murderous plot was averted due to the exceptional work of our team. He will now face the full consequences of the criminal justice system,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This case shows that the FBI will not tolerate heinous acts of violence and will go to great lengths to protect our citizens.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On April 18, 2022, while in the Northern District of Georgia, Wan accessed a dark web marketplace from his cellular telephone and submitted an order to have a hitman murder his girlfriend. The order included the victim’s name, address, Facebook account, license plate, and car description. In the order, Wan stated: “Can take wallet phone and car. Shoot and go. Or take car.” Wan then electronically transferred a 50% downpayment of approximately $8,000 worth of Bitcoin to the dark web marketplace.
Two days later, Wan messaged the marketplace’s administrator, stating that the transferred Bitcoin did not show up in his escrow account on the site. The next day, the marketplace administrator asked Wan for the Bitcoin address to which Wan had sent the payment. In response, Wan identified the Bitcoin wallet address and provided a screenshot of the transaction. When the administrator said that the address Wan provided was not in their system, Wan replied, “Damn. I guess I lost $8k. I’m sending $8k to escrow now.” Wan then electronically transferred an additional Bitcoin payment worth approximately $8,000 to the marketplace. The administrator confirmed the new address was correct and that the Bitcoin had arrived in the escrow account. The administrator stated that they were proceeding with Wan’s order for a hit and asked whether Wan wanted it done as an “accident or normal shooting.” Wan responded, “accident is better.”
About a week later, on April 29, 2022, Wan electronically transferred another payment of approximately $8,000 worth of Bitcoin to the dark web marketplace to ensure his escrow account contained the total required to complete the order. Shortly thereafter, Wan posted the following in a forum on the dark web marketplace: “How soon should work be done? I have submitted an Order and curious how quickly it should be carried out? Is there a way I can find out any progress? If there is anyone in my location?”
On May 10, 2022, after the value of Bitcoin dropped, Wan electronically transferred another payment of approximately $1,200 worth of Bitcoin to the marketplace to ensure his escrow account still contained the total required to complete the order.
After learning about the threat to the victim’s life, FBI agents notified the victim, provided her protection, and questioned Wan. Wan admitted that he had placed the order, made the payments, and checked the status of the order daily on the dark web marketplace. Records from Wan’s cellular telephone and his Bitcoin wallet corroborated Wan’s confession. After speaking with FBI agents, Wan canceled the order on the dark web marketplace.
James Wan, 54, of Duluth, Georgia, pleaded guilty to one count of using a facility of interstate commerce in the commission of murder-for-hire. The sentencing is scheduled for January 18, 2024, before U.S. District Court Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Bret R. Hobson is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta-based financial advisor sentenced for COVID-relief fraud schemeRead the Press Release
ATLANTA - Paul Kwak has been sentenced for a multi-million-dollar fraud scheme related to a COVID relief program. Three co-conspirators were previously sentenced to prison as well.
“When the government stepped in to help the millions of Americans suffering economically during the pandemic, some sought an opportunity to exploit the system and enrich themselves,” said U.S. Attorney Ryan K. Buchanan. “Kwak not only submitted his own fraudulent applications, but he recruited others to his scheme, resulting in millions of dollars of fraudulent applications to the SBA’s relief program.”
“Profiteering off federal government relief programs intended to support American small businesses is inexcusable,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “This sentencing is further evidence that greed has no place in SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
“Not only did Kwak defraud the government by applying for relief funds for companies that did not exist, but he also recruited and taught others how to do the same,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Let this sentence be a message that the FBI will continue to hold accountable anyone who abuses taxpayer dollars and diverts them from people that actually need them.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Paul Kwak conspired with others to submit millions of dollars of fraudulent EIDL applications in the names of shell companies that had no employees and conducted no business activities.
The EIDL program is an emergency relief program run by the Small Business Administration (SBA) that provided millions of Americans with much needed economic relief during the COVID-19 pandemic. An EIDL application must provide, among other information, the amount of revenue the business generated in the 12 months prior to the application and the number of employees. The applicant must certify that the information is correct and that he or she is legally eligible to apply for an EIDL.
Kwak filed fraudulent EIDL applications and recruited and taught others to file fraudulent applications, totaling over $2 million. Kwak posted related videos on his YouTube channel, where he provided financial and investment advice before the pandemic. In a May 2020 video titled “EIDL, disaster assistance you don’t have to pay back,” Kwak explained, in Korean, that applicants could receive tens of thousands of dollars in assistance without collateral or a co-signor, using only the applicant’s electronic signature. One of his clients, according to Kwak, had recently received $150,000 in EIDL proceeds.
Kwak conspired with others, including Joosoo Choi-Bang, Jon Sun Hun, and Sook Hee Kim, each of whom previously pleaded guilty and were sentenced. Ultimately, the SBA paid over $1 million as a result of the fraudulent applications. Kwak has agreed to forfeit three homes and a Mercedes GLS 580 purchased with fraud proceeds. He has also agreed to forfeit over $1.6 million from multiple bank accounts associated with the fraud.
Paul Kwak, 65, of Braselton, Georgia, was sentenced to three years, four months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $1,198,300. Kwak was convicted of these charges on June 20, 2023, after he pleaded guilty.
Choi-Bang was sentenced to one year, six months in prison to be followed by one year of supervised release. Huh and Kim were sentenced to two years in prison to be followed by one year of supervised release.
This case was investigated by the U.S. Small Business Administration, Office of Inspector General and the Federal Bureau of Investigation.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia doctor ordered to pay $27 million for submitting false claims to MedicareRead the Press Release
ROME, Ga. – A federal district judge has ordered Charles Adams M.D. and his medical practice to pay more than $27 million for violating the False Claims Act (FCA). In June 2023, a federal jury in Rome found that the defendants violated the FCA by submitting false claims to Medicare for chelation therapy reimbursements. Chelation therapy involves the use of drugs to remove heavy metals from the body. The jury found that Medicare reimbursed the defendants more than $1.1 million for these unnecessary treatments. In a post-trial ruling, the federal district judge added penalties to the jury’s verdict, bringing the total amount owed to more than $27 million.
“The Court’s judgment emphasizes the serious consequences that face healthcare providers who submit false claims to Medicare,” said U.S. Attorney Ryan K. Buchanan. “On behalf of those healthcare providers who faithfully bill for medical procedures, and for their patients who rely on the safety net of Medicare, our office will continue to work vigorously with our federal agencies and law enforcement partners to pursue providers who engage in misconduct.”
“Physicians who fraudulently submit unreasonable, medically unnecessary claims put their personal profits over their obligations to both federal health programs and their patients,” said Tamala E. Miles, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “With our law enforcement partners, HHS-OIG is committed to investigating potentially fraudulent billing that can compromise the integrity of our federal health care programs and the well-being of beneficiaries.”
“Providers who undermine the integrity of the health care system will be held accountable for their actions,” said Sean Burke, Assistant Special Agent in Charge of FBI Atlanta. "Actions like this impact every tax paying citizen, in particular, those who rely on federally funded programs for their health care needs.”
According to U.S. Attorney Buchanan, the civil complaint, the court’s final order, and other information presented in court: Adams operated a medical practice in Ringgold, Georgia, known as Full Circle Medical Center. As a part of his internal medicine specialty, Adams administered the drug edetate calcium disodium (“EDTA”) to address a wide range of conditions, including atherosclerosis, high blood pressure, headaches, GI ailments, fatigue, and other generalized symptoms. But these symptoms are not recognized as being treatable using EDTA. According to the U.S. Food and Drug Administration, EDTA is recognized as a treatment only for lead poisoning and lead encephalopathy. Because Dr. Adams’ patients did not have lead poisoning or lead encephalopathy, Medicare would not reimburse his use of EDTA. To receive reimbursement for the EDTA, Dr. Adams falsely claimed to Medicare that his patients suffered from heavy metal poisoning.
In August 2018, the Government filed a civil complaint alleging that between November 2008 and September 2015, Adams and Full Circle knowingly submitted false claims to Medicare for medically unnecessary and “alternative” chelation therapy that Adams administered using EDTA. The complaint also alleged that in connection with this scheme, Adams and Full Circle unlawfully received approximately $1.1 million in Medicare reimbursements.
The case proceeded to a jury trial in Rome, Georgia, in June 2023, before presiding U.S. District Judge William M. Ray, II. The jury found Adams and Full Circle liable for submitting more than 4,400 false claims to Medicare. The jury awarded more than $1.1 million in damages. Under the FCA, Judge Ray was required to treble the jury’s award and to add penalties based on the number of false claims submitted. Judge Ray issued his final decision on August 25, 2023, ordering the defendants to pay a total of $27,567,729 in damages and penalties.
The FCA is the primary authority used by the Civil Division of the U.S. Attorney’s Office to redress fraud, waste, and abuse within federal programs, including Medicare.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation.
The case is being litigated by Assistant U.S. Attorneys Anthony DeCinque and Akash Desai. Former Assistant U.S. Attorney Paris Wynn also worked the case before his departure.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Northern District of Georgia honors first graduate of Accountability, Treatment, and Leadership Court programRead the Press Release
ATLANTA - The U.S. Attorney's Office, the U.S. District Court, the Federal Defender Program, Inc., and the U.S. Probation Office honored the first graduate of the Accountability, Treatment, and Leadership Court (ATL Court) program for the Northern District of Georgia.
“We are proud to work with our fellow stakeholders in the criminal justice system to offer the ATL Court as an alternative to incarceration program for our district,” said U.S. Attorney Ryan K. Buchanan. “Through intense supervision and treatment resources, the ATL Court enhances safety in our district by addressing the root causes of the participants’ previous criminal behavior and places them onto a path of crime-free, productive lives.”
“This program is the result of creative, resourceful, and justice-oriented lawyers and other officials. Our Court is grateful to all of them for their outstanding work,” said Timothy C. Batten, Sr., Chief U.S. District Judge for the Northern District of Georgia.
“The ATL Court’s first graduate faced a lengthy prison sentence and, in one year, she has turned her life completely around and earned a sentence of probation,” said Stephanie A. Kearns, Executive Director, Federal Defender Program, Inc. of the Northern District of Georgia. “This shows exactly why the ATL Court is so effective and valuable to all of us, and why it should continue long into the future.”
“History has been made in the Northern District of Georgia,” said Donna M. High, Chief U.S. Probation Officer for the Northern District of Georgia. “The ATL Court is a collaborative effort between several agencies, that requires a lot of time and commitment. The beauty of our collaboration is that it allows us to know more than we can know by ourselves, and when we do it correctly, everyone wins.”
U.S. Attorney Buchanan delivered an address to the program's first graduate and the current class of participants in the program. U.S. Magistrate Judge Catherine M. Salinas delivered remarks and presented the graduate with a diploma, recognizing her graduation from the program. Representatives of the Federal Defender Program, Inc. and the U.S. Probation Office also addressed the program participants.
Through treatment to address the substance use disorder, mental health condition, or other identified need driving participants' criminal conduct, through incentives to reinforce positive behavior, and through sanction alternatives, the ATL Court program provides an alternative to incarceration for federal defendants.
Participants in the program attend bi-monthly court sessions with members of the ATL Court team. The program provides a high level of supervision for its participants which lasts from 12 to 24 months. Successful completion of the program results in a non-custodial sentence, or a reduction of felony charges to a misdemeanor, or dismissal of the federal case.
Launched in 2022, the ATL Court program was created through a collaborative partnership of the U.S. Attorney's Office for the Northern District of Georgia, the Federal Defender Program, Inc., the U.S. District Court for the Northern District of Georgia, and the U.S. Probation Office. Further description of the program is available at https://www.gand.uscourts.gov/accountability-treatment-and-leadership-court-“atl-court”.For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Undocumented alien and former Marietta teaching assistant have been sentenced to prison for firearms traffickingRead the Press Release
ATLANTA – A previously deported undocumented alien with a violent criminal history, and a former school paraprofessional who fatally abandoned a dog in a hot car while straw purchasing firearms, have been sentenced to federal prison for their roles in trafficking guns later used in shootings.
“Firearms traffickers fuel gun violence in our communities placing citizens at risk of injury and death,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to partnering with our federal, state, and local law enforcement partners to pursue and prosecute criminals whose disregard for life contributes to the illegal flow of guns onto our streets.”
“Although we are very pleased with the success of this operation, unfortunately this operation highlights the persistence of illegal firearms trafficking and demonstrates that this type of crime is real, extant, and must be continuously battled,” said ATF Assistant Special Agent in Charge Alicia Jones. “ATF will continue to work alongside our federal, state and local partners in furtherance of reducing gun crime.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Between February 2022 and June 2022, DeAndre Cannon purchased nearly four dozen firearms on behalf of Conroy Samuels, a convicted felon and undocumented alien, who was living under the assumed identity of “Justin Sheffield.” Samuels used this alias after he served a prison term and was deported from the United States following a conviction for attempted murder.
Cannon, to perpetrate the firearms trafficking scheme with Samuels, falsely represented to federally licensed firearms dealers in the metro-Atlanta area that he was the actual purchaser of the firearms even though he was buying the guns for Samuels and with Samuels’s money. In this way, Cannon sometimes illegally purchased up to 17 firearms in a week. After he received the guns from Cannon, Samuels would distribute them to others. At least two of the firearms that passed from Cannon to Samuels were recovered in Connecticut and linked to multiple shooting incidents in that state.
Cannon and Samuels’s crime spree ended on June 15, 2022, after ATF special agents saw Cannon receive money from Samuels and enter and exit a Jonesboro, Georgia, pawn shop. Although the temperature that day exceeded 95 degrees, Cannon left a dog inside his car for approximately an hour and a half while he straw purchased guns at the pawn shop. When agents encountered Cannon later, they saw that Cannon’s pet was suffering from extreme heat stress. The dog later died despite receiving emergency treatment from Clayton County animal control officers.
On August 2, 2023, Conroy Samuels, also known as “Justin Sheffield,” 50, of Kingston, Jamaica, was sentenced by U.S. District Judge Eleanor L. Ross to four years, nine months in prison to be followed by three years of supervised release. Samuels was convicted of possession of a firearm by a prohibited person, conspiracy to make false statements to a federally licensed firearms dealer, and reentry after deportation after he pleaded guilty on April 20, 2023.
On September 20, 2023, DeAndre Cannon, 34, of Woodstock, Georgia, was sentenced by Judge Ross to four years, two months in prison to be followed by three years of supervised release. Cannon was convicted of conspiracy to make false statements to a federally licensed firearms dealer after he pleaded guilty on June 1, 2023.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Clayton County Police Department.
Assistant U.S. Attorneys Leanne M. Marek and Theodore S. Hertzberg prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man indicted for blowing up ATMRead the Press Release
ATLANTA – Abdurrahim Jalal has been indicted for blowing up a bank automated teller machine and for possession of illegal explosive devices.
“The unlawful use and possession of explosives creates a grave danger to our citizens and first responders who must risk their lives to respond to these violent crimes,” said U.S. Attorney Ryan K. Buchanan. “This indictment is the culmination of investigative work conducted by a team of federal and local law enforcement agencies who recovered bombing materials from Jalal’s home and may have prevented additional explosions.”
“The alleged actions of this individual could have led to innocent people being seriously hurt or killed,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This investigation is proof of the strength and tenacity of the FBI and its law enforcement partners in eliminating acts of violence which threaten the communities we serve.”
“ATF will continue to dedicate federal resources in conjunction with crucial Federal and local law enforcement partners to the pursuit of eradicating and forestalling criminal activity in communities we serve,” said ATF Assistant Special Agent in Charge Alicia Jones.
“This indictment comes as a result of the strong partnerships that exist between local, state, and federal agencies. Working together we can continue to keep our streets safe,” said DeKalb Police Chief Mirtha V. Ramos.
According to U.S. Attorney Buchanan, the charges and other information presented in court: At approximately 3:11 a.m. on March 29, 2023, Jalal blew up an ATM at the Bank of America branch located at the North DeKalb Mall in Decatur, Georgia. Jalal took approximately $88,000 from the vault of the machine after the explosion. Investigators identified Jalal and obtained a warrant to search his home. They found additional destructive devices during that search.
Abdurrahim Jalal, 53, of DeKalb County, Georgia, was indicted by a federal grand jury on September 12, 2023, and had his initial appearance on September 27, 2023. Members of the public are reminded that the indictment contains only charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case was investigated by the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, DeKalb County Police Department and the DeKalb County Fire Rescue.
Assistant U.S. Attorney Dash A. Cooper prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected].
Fulton County jail officer indicted on excessive force chargesRead the Press Release
ATLANTA – Former Fulton County Detention Officer Monique Clark has been indicted by a federal grand jury on charges of using excessive force against a pretrial detainee at the Fulton County Jail.
“We recognize that detention officers have a particularly challenging job as they work to maintain order and protect detainees in our district’s jails and prisons,” said U.S. Attorney Ryan K. Buchanan. “However, this detention officer allegedly abused a handcuffed Fulton County detainee by strangling her and must be held accountable for such outrageous conduct.”
“While those behind bars may have lost their freedom, they retain their humanity — and their civil rights,” said Special Agent in Charge Keri Farley of FBI Atlanta. “This case serves as an example that the FBI is committed to identifying and investigating those law enforcement officers who choose to abandon their oath and violate the public’s civil rights.”
According to U.S. Attorney Buchanan, the charges, information presented in court and other public information: At the time of the alleged misconduct, Monique Clark was employed as a detention officer at Fulton County Jail. On June 5, 2023, while Clark was working at the North Jail Annex in Alpharetta, Clark allegedly strangled a pretrial detainee without any legal justification. The detainee lost consciousness and suffered bodily injury as a result of the assault.
Monique Clark, 32, of Stone Mountain, Georgia, has been indicted on charges of using excessive force against a pretrial detainee. Members of the public are reminded that the indictment contains only charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Department of Justice’s Office of Inspector General.
Assistant U.S. Attorneys Bret R. Hobson and Brent Alan Gray and DOJ Civil Rights Division Trial Attorney Alec C. Ward are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Tax Shelter Promoters Found Guilty in Billion-Dollar Syndicated Conservation Easement Tax SchemeRead the Press Release
A federal jury sitting in Atlanta convicted Jack Fisher and James Sinnott today of conspiracy to defraud the United States, conspiracy to commit wire fraud, aiding and assisting the filing of false tax returns and subscribing to false tax returns. Fisher was also convicted of money laundering.
The convictions stem from Fisher and Sinnott’s fraudulent tax shelter scheme involving syndicated conservation easements dating back nearly two decades. A co-defendant, Clay Weibel, was acquitted. U.S. District Court Chief Judge Timothy Batten for the Northern District of Georgia remanded Fisher and Sinnott into custody pending their sentencing.
According to court documents and evidence presented at trial, Fisher and Sinnott designed, marketed and sold to high-income clients abusive syndicated conservation easement tax shelters based on fraudulently inflated charitable contribution tax deductions, promising them deductions 4.5 times the amount the taxpayer clients paid.
The evidence proved that Fisher and Sinnott used the funds raised from their taxpayer clients to buy land and property holding companies and then had the tax shelters cause the companies to donate the land or a conservation easement over the land – often within days or weeks of purchase. To reach the inflated fair market value of the donations, Fisher and Sinnott primarily used appraisals of the conservation easements and fee simple land donations at valuations often more than 10 times higher than what Fisher and Sinnott actually paid to acquire the property.
The evidence further showed that Fisher and Sinnott backdated or instructed others to backdate false documents to present to the IRS, including subscription agreements, payment documents, engagement letters and other records. Fisher’s accountant, who testified at trial and previously pleaded guilty for his role in the scheme, prepared tax returns claiming charitable contribution tax deductions in the fraudulently inflated amounts reported in the false appraisals, resulting in fraudulent tax deductions flowing to the clients who purchased units in the abusive and illegal tax shelters. The evidence demonstrated that Fisher, Sinnott and others received more than $41 million in payments that were backdated or late for false and inflated tax deductions.
In total, the defendants sold over $1.3 billion in fraudulent tax deductions through this scheme.
The government proved that Fisher and Sinnott made millions from their scheme. Fisher used the illegal proceeds to purchase a Mercedes Benz automobile, a private jet and an RV and trailer. Fisher also used proceeds of the scheme to purchase homes in the United States and on the Caribbean island of Bonaire, which the jury found to be forfeitable.
Fisher and Sinnott face a maximum penalty ranging between three and twenty years in prison for each count of conviction. The government is also seeking the forfeiture of monetary proceeds and real properties purchased by Fisher and Sinnott in connection with their fraud scheme. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia and IRS-Criminal Investigation Chief Jim Lee made the announcement, also thanking U.S. Attorney Dena J. King for the Western District of North Carolina for her office’s assistance.
IRS-Criminal Investigation and the U.S. Postal Inspection Service investigated the case.
Trial Attorneys Richard M. Rolwing, Parker Tobin, Jessica Kraft, Grace Albinson and Nicholas J. Schilling Jr. of the Tax Division and Assistant U.S. Attorney Christopher Huber, who also serves as Deputy Chief of the Complex Frauds Section, for the Northern District of Georgia are prosecuting the case.
Man sentenced for $3.5 million, multi-year fuel credit tax fraudRead the Press Release
ATLANTA - Joseph Oluwafemi Kolawole Akoshile has been sentenced for a $3.5 million tax fraud scheme relating to false tax returns claiming fuel tax credits.
“Akoshile used multiple aliases to steal millions of dollars from American taxpayers by fraudulently using a tax credit designed to aid business owners,” said U.S. Attorney Ryan K. Buchanan. “He laundered the money through multiple accounts he controlled in a failed effort to disguise his criminal scheme.”
“In order to carry out his long running financial fraud, Akoshile and his associates stole the identities of numerous people,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS CI special agents remain committed to investigating those who commit financial crimes, including identity theft. Akoshile’s actions highlights the importance of protecting identifiable information.”
“The Treasury Inspector General for Tax Administration will aggressively pursue those who endeavor to defraud the Internal Revenue Service by exploiting programs which were established to provide assistance to American business owners,” said Mark Morini, Special Agent in charge of TIGTA’s Southeast Field Office. “We appreciate the efforts of the U.S. Department of Justice and our law enforcement partners in this effort.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Joseph Oluwafemi Kolawole Akoshile committed a wide-ranging fraud that resulted in the issuance of more than 100 fraudulent treasury checks worth over $3.5 million. For more than five years, Akoshile and others submitted federal corporate tax returns, claiming fraudulent refunds for a web of corporations set up using stolen identities. The fraudulent tax returns claimed false fuel tax credits, resulting in large refunds. The fuel tax credit is intended to assist legitimate businesses in offsetting fuel taxes they pay for off-road vehicles. The defendant received the fraudulent refund checks and altered them to change the payee to a corporation created for the scheme. Akoshile then laundered these funds through other accounts, including multiple business accounts he controlled in one of his many aliases.
Joseph Oluwafemi Kolawole Akoshile, 57, of Mansfield, Texas, was sentenced to four years, three months in prison to be followed by two years of supervised release and ordered to pay restitution in the amount of $3,606,990.10. Akoshile was convicted on these charges on June 9, 2023, after he pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation and U.S. Treasury Inspector General for Tax Administration.
Assistant U.S. Attorneys Christopher J. Huber and Alana Black prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former executive and three other former employees charged with defrauding MohawkRead the Press Release
ROME, Ga. – Four former employees of Mohawk Industries, Inc. (“Mohawk”), Jana Kanyadan (Mohawk’s former Global Chief Information Officer), Sivakumar Thiyagasamadram, Madhu Shivalingegowda, and Chintan Sandesara have been indicted for allegedly defrauding Mohawk.
“These defendants allegedly took advantage of their positions to advance personal interests at Mohawk’s expense,” said U.S. Attorney Ryan K. Buchanan. “We will prosecute those who abuse their positions of authority to steal from the employers who trust them.”
“These defendants allegedly violated the trust placed in them by their employer,” said Sean Burke, Assistant Special Agent in Charge of FBI Atlanta. “The FBI works hard to make sure greed like this doesn’t pay off and those who commit fraud are held accountable.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Jana Kanyadan served as Mohawk’s Global Chief Information Officer. Sivakumar Thiyagasamadram, Madhu Shivalingegowda, and Chintan Sandesara were Mohawk employees with responsibility for Information Technology (“IT”).
In 2019, Mohawk launched a large, multi-year IT project and outsourced work for the IT project to IT consulting firms. The indictment alleges that the defendants secretly organized and controlled a Georgia company, Meta Technology Platforms, LLC (“Meta Tech”), and used their positions at Mohawk to retain Meta Tech as a Mohawk vendor and divert Mohawk’s outsourced IT consulting work to Meta Tech.
Between approximately May and October of 2022, Meta Tech submitted invoices to Mohawk totaling approximately $3,034,411. The invoices that Meta Tech submitted to Mohawk did not disclose the defendants’ relationship to Meta Tech. The invoices also allegedly charged Mohawk for services that had not been performed, for software that had not been provided, and at inflated hourly rates that Kanyadan approved on Mohawk’s behalf. Mohawk paid Meta Tech approximately $1,857,741.40 based on these fraudulent invoices.
Jana Kanyadan, 53, of Marietta, Georgia, Sivakumar Thiyagasamadram, 54, of Cumming, Georgia, Madhu Shivalingegowda, 38, of Acworth, Georgia, and Chintan Sandesara, 39, of Marietta, Georgia, were indicted by a federal grand jury on September 12, 2023, and had their initial appearances on September 21, 2023. Members of the public are reminded that the indictment contains only charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Tal C. Chaiken is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta meat market owner pleads guilty to $10 million food stamp fraudRead the Press Release
ATLANTA – Uttam Halder has pleaded guilty to conspiracy to commit wire fraud arising from a $10 million scheme to purchase Supplemental Nutrition Assistance Program benefits from low-income recipients. After his arrest, Halder became a fugitive and attempted to flee to Istanbul, where he was apprehended by foreign authorities.
“The defendant exploited a program designed to provide nutritional assistance for needy citizens by enabling stores to pay cash to customers to redeem their food stamp benefits,” said U.S. Attorney Ryan K. Buchanan. “His actions diverted millions of dollars in taxpayer funds for his personal gain. He also tried to evade the consequences of his actions by escaping abroad but was captured and arrested with the assistance of our international law enforcement partners.”
“This investigation and prosecution should send a strong zero-tolerance message to those individuals engaged in the practice of defrauding the taxpayer through SNAP,” said Miles Davis, Special Agent-in-Charge, USDA-Office of Inspector General. “It should also serve as a warning to all stores that participate in the SNAP program as vendors that fraud and trafficking (purchasing those benefits for cash and the sharing of Point-of-Sale terminals) will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer-funded programs.”
“Halder thought that his scheme to defraud the government and his attempt to evade prosecution would be successful, but thanks to HSI and its law enforcement partners, both here and abroad, he was sadly mistaken,” said HSI Atlanta acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Crime does not pay is the lesson we want others, contemplating scams, to take from this case and change their minds.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Uttam Halder owned and operated a small meat market in Atlanta called Big Daddy’s Discount Meat (“Big Daddy’s”). Halder enrolled Big Daddy’s as a retailer for the USDA’s Supplemental Nutrition Assistance Program (“SNAP”) in 2014. SNAP, formerly known as the Food Stamp Program, is designed to alleviate hunger among low-income families by providing benefits on Electronic Benefit Transfer (“EBT”) cards that can be exchanged for eligible food items.
Between 2015 and 2020, Halder loaned his EBT terminals to two stores, Food World and Big Brother Mini Supermarket, contrary to SNAP rules. Co-conspirator Paltu Roy, the operator of Big Brother Mini Supermarket, and another co-conspirator who operated Food World agreed to share profits with Halder from Big Daddy’s terminals used illegally at those stores. After receiving Big Daddy’s EBT terminals, both stores made cash payments to customers in return for redeeming their SNAP benefits at the rate of roughly 50 cents on the dollar. During this six-year period, Big Daddy’s terminals collected more than $10 million in fraudulent redemptions of SNAP benefits, and Halder shared a substantial portion of the profits.
Following his arrest in January 2021, Halder was released on bond. Contrary to his bond conditions, Halder fled and became a fugitive in late 2022. In June 2023, foreign authorities in Turkey located Halder when he attempted to enter Istanbul from Cancun, Mexico with a fake passport. Halder was returned to the United States and placed into custody.
Uttam Halder, 42, of Decatur, Georgia, pleaded guilty to one count of conspiracy to commit wire fraud and one count of failure to appear. The sentencing is scheduled for January 30, 2024, before U.S. District Court Judge Michael L. Brown.
His co-conspirator, Paltu Roy, 51, of Stone Mountain, Georgia, pleaded guilty to one count of conspiracy to commit wire fraud on December 9, 2021. Judge Brown sentenced Roy on April 20, 2022, to three years and one month in prison, three years of supervised release, and a special assessment of $100 and ordered him to pay $3,071,235 in restitution to the USDA.
This case is being investigated by the U.S. Department of Agriculture, Office of Inspector General and Homeland Security Investigations.
Assistant U.S. Attorney Nathan P. Kitchens is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Virginia man convicted of exporting heavy equipment to Iran in violation of U.S. sanctions lawsRead the Press Release
ATLANTA – A federal jury has convicted Jalal Hajavi of conspiring to violate the International Emergency Economic Powers Act (“IEEPA”) and the Iranian Transactions and Sanctions Regulations (“ITSR”), smuggling goods from the United States, unlawfully exporting and reexporting goods from the U.S. to Iran without a license, and unlawfully engaging in transactions and dealings based on his participation in a scheme to unlawfully export heavy equipment from the U.S. to Iran by routing the shipments though the United Arab Emirates.
“Hajavi chose to leverage his Florida business to illegally export materials to Iran rather than to lawfully contribute to the U.S. economy,” said U.S. Attorney Ryan K. Buchanan. “The U.S. trade sanctions against Iran exist to help keep our country and citizens safe. Those who seek to profit by evading these prohibitions will be held accountable.”
“Falsifying export documents in an attempt to obfuscate the transshipment of U.S. commodities through the United Arab Emirates to Iran is a serious violation of U.S. export laws, and will be vigorously investigated,” said John Johnson, Special Agent in Charge, Office of Export Enforcement’s Miami Field Office. “By disrupting illicit procurement networks, we continue to deny U.S. dual-use commodities to countries such as Iran that threaten U.S. national security interests.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Hajavi, through his company JSH Heavy Equipment, LLC, conspired with an individual in Iran to export U.S. heavy machinery indirectly to Iran without first obtaining the required licenses from the Office of Foreign Assets Control (“OFAC”). Hajavi orchestrated the scheme by locating heavy equipment for sale, such as bobcats and wheel loaders, and sending information about the equipment to his co-conspirator in Iran. Hajavi purchased the items from U.S. sellers and used freight forwarding companies to ship the heavy equipment from the U.S. to the U.A.E. Hajavi falsely claimed that the items were destined for his U.A.E. customers, which typically were general trading companies located in free trade zones in the U.A.E. But in truth, Hajavi intended for his Iranian co-conspirator to transship those items from the U.A.E. to Iran in circumvention of the U.S. export licensing requirement.
Utilizing this scheme, Hajavi purchased an Ingersoll Rand blasthole drill from a U.S. company. The drill is a type of heavy machinery used to create holes in the ground that are usually then filled with controlled charges. In a sham transaction, Hajavi sold the drill to a U.A.E. company that, in turn, provided the drill to Hajavi’s Iranian co-conspirator, who shipped the tool to Iran.
In addition to evading OFAC licensing requirements, Hajavi concealed his activities with his Iranian co-conspirator by causing false information to be entered into the Automated Export System (“AES”), a U.S. government database containing information about exports from the United States. Hajavi hired a U.S. freight forwarder to arrange the drill’s export from the U.S. to the U.A.E. As part of the shipping process, the freight forwarder submitted information to AES about the shipment, including the ultimate consignee’s name and the ultimate delivery destination. Hajavi lied to the freight forwarder by claiming that the U.A.E. company was the ultimate consignee and that the ultimate delivery destination was the U.A.E. In fact, Hajavi’s co-conspirator in Iran was the true recipient and Iran was the ultimate delivery destination.
Sentencing for Jalal Hajavi, 59, of Sterling, Virginia, is scheduled for December 14, 2023, at 10:00 a.m. before U.S. District Judge Thomas W. Thrash.
This case is being investigated by the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement.
Assistant U.S. Attorney Tracia M. King and Trial Attorney Emma Dinan Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s office for the Northern District of Georgia celebrates funding awarded for legal services and improved court responses to domestic and sexual violenceRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia is proud to announce that the Department of Justice’s Office on Violence Against Women (OVW) awarded $2,450,000 to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking.
“Congress passed the Violence Against Women Act in 1994 to catalyze federal efforts to combat crimes against women associated with domestic violence, sexual assault, stalking, and other offenses. I am pleased to announce that our district has been awarded funding from the Office on Violence Against Women to provide critical resources to improve the coordination of these investigations,” said U.S. Attorney Ryan K. Buchanan. “Our office is proud to partner with each of the recipients of these grants and dedicated to collaborating even more closely with these organizations, and others, to combat the scourge of domestic violence to make our communities safer.”
“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system’s approach to supporting families affected by violence,” stated OVW Director Rosemarie Hidalgo. “These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.”
The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety.
• OVW awarded $1,350,000 under the Legal Assistance for Victims (LAV) Program to the Northern District of Georgia. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking.
• OVW awarded $400,000 under the Expanding Legal Services Initiative (ELSI) to the Northern District of Georgia. ELSI, which operates under the LAV Program, supports developing new legal services programs.
• OVW awarded $700,000 under the Justice for Families (JFF) Program to the Northern District of Georgia. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence.
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
The U.S. Attorney’s Office conducts training for local law enforcement officers on federal domestic violence topics, including through the Georgia Law Enforcement Executive Development Seminar (FBI GA LEEDS). Our office has implemented two case referral programs with the Fulton County District Attorney’s Office and at the DeKalb County District Attorney’s Office. Through these strategic enforcement initiatives, we expect to identify and prosecute the most serious perpetrators of domestic violence – including offenders who use and possess firearms, which greatly increases the risk of serious injury or death to the victim.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Cherokee Charter Academy schoolteacher and her husband sentenced for child pornography offensesRead the Press Release
ROME, Ga. – A Calhoun man who distributed images of child sex abuse and his wife, a former middle school special education teacher who received those images and deleted text messages to conceal his crimes, have been sentenced to federal prison.
“By sharing images depicting the sexual violation of minors, the defendants re-victimized children whose lives have been forever altered by this abuse,” said U.S. Attorney Ryan K. Buchanan. “The conduct in this case is especially egregious given that one of the defendants, a schoolteacher, occupied a position of trust in the community. The Department of Justice is committed to helping to ensure the safety and well-being of children, so we especially place a high priority on protecting and combating sexual exploitation of minors. We will continue to work with our law enforcement partners to protect children from sexual predators and pedophiles.”
“Finding and arresting predators, like these, who distribute images of children being abused is one of our most important missions and we take it seriously, said HSI Atlanta acting Special Agent in Charge Travis Pickard. “HSI, along with our dedicated law enforcement partners, remains committed to identifying individuals who prey on our most vulnerable population — especially those who hold positions of public trust.”
“The possession and distribution of child pornography poses a great threat to our communities. The GBI is devoted to protecting minors in our state and will continue to work with our local, state, and federal partners to ensure we hold those accountable who sexually exploit children,” said Chris Hosey, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Buchanan, the charges and other information presented in court: Beginning no later than in December 2017, William Sandridge began to send his wife, Allyn Sandridge, text messages detailing his sexual fantasies involving prepubescent children. Some of the messages contained images of children engaged in sexually explicit conduct. At that time, Allyn Sandridge was employed as a special education teacher at a charter school in Canton, Georgia.
At William Sandridge’s direction, Allyn Sandridge periodically deleted her husband’s text messages and used an encrypted messaging application. These steps were intended to avoid detection of and conceal William Sandridge’s crimes.
On December 29, 2022, federal, state, and local law enforcement officers executed a search warrant at the Sandridges’ home acting on a tip received by the Georgia Bureau of Investigation. During the search, investigators discovered multiple cell phones and a desktop computer loaded with graphic images of child sex abuse. Allyn Sandridge cooperated with the investigation immediately and disclosed to the officers the material William Sandridge had sent to her phone.
On September 6, 2023, U.S. District Judge William M. Ray, II sentenced the defendants as follows:
- William Sandridge, 42, of Calhoun, Georgia, was sentenced to seven years and three months in prison to be followed by a lifetime of supervised release. He pleaded guilty to distribution of a visual depiction of a minor engaging in sexually explicit conduct on June 6, 2023.
- Allyn Michelle Sandridge, 42, of Calhoun, Georgia, was sentenced to one year and six months in prison to be followed by a lifetime of supervised release. She pleaded guilty to possession of a visual depiction of a minor engaging in sexually explicit conduct and misprision of a felony on May 25, 2023.
This case was investigated by Homeland Security Investigations, the Georgia Bureau of Investigation, and the Calhoun Police Department.
Assistant U.S. Attorney Theodore S. Hertzberg prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Texas man pleads guilty to posting 2020 election-related threats to Georgia officialsRead the Press Release
ATLANTA - A Texas man has pleaded guilty to posting a message online threatening several Georgia public officials following the 2020 election.
“All across this country our fellow citizens and neighbors, including many retirees, choose to serve as elections officials, poll workers, and in other capacities to help ensure free and fair elections in the United States. They serve out of a patriotic duty and appreciation for our nation and deserve to do so without fear of retaliation or threats of violence,” said U.S. Attorney Ryan K. Buchanan. “Stark threatened officials working at all levels of the election process including elected office holders and a volunteer poll worker. His egregious conduct placed our democracy in jeopardy, striking at the heart of the process we assume to be insulated from such attacks. Our office will remain steadfast in partnering with federal, state, and local authorities to safeguard those who work to secure our elections.”
“This case marks another destructive example of threats of violence to the election community and law enforcement,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Department will not tolerate the criminal targeting of the men and women responsible for administering our elections and ensuring that every eligible voter has the opportunity to exercise the most fundamental right in our democracy: the right to vote.”
“This guilty plea plainly shows that anyone who threatens election officials online will be investigated by the FBI and held accountable for their words” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We must take calls to violence seriously, whatever their form, especially when they have the potential to result in physical harm and undermine the integrity of U.S. elections.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Around Jan. 5, 2021, Chad Christopher Stark posted a message to Craigslist entitled, “Georgia Patriots it’s time to kill [Official A] the Chinese agent - $10,000.” The message included the following: “It’s time to invoke our Second Amendment right it’s time to put a bullet in the treasonous Chinese [Official A]. Then we work our way down to [Official B] the local and federal corrupt judges. It’s our duty as American Patriots to put an end to the lives of these traitors and take back our country by force. . . . If we want our country back we have to exterminate these people. One good loyal Patriot deer hunter in camo and a rifle can send a very clear message to these corrupt governors.. milita up Georgia it’s time to spill blood…. we need to pay a visit to [Official C] and her family as well and put a bullet her behind the ears. Remember one thing local law enforcement the key word being local….. we will find you oathbreakers and we’re going to pay your family to visit your mom your dad your brothers and sisters your children your wife… we’re going to make examples of traitors to our country… death to you and all you communist friends.”
Chad Christopher Stark, 55, of Leander, Texas, pleaded guilty to one count of a sending a threat using a telecommunications device. A sentencing date has not yet been set.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Two years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Department of Justice, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
The FBI is investigating this case.
Assistant U.S. Attorney Brent Alan Gray and Sean F. Mulryne, Director of Enforcement & Litigation in the Election Crimes Branch of the DOJ Criminal Divison’s Public Integrity Section, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Tech professor pleads guilty to tax fraudRead the Press Release
ATLANTA - John Crittenden, a professor of environmental engineering at the Georgia Institute of Technology and the former director of the Brook Byers Institute for Sustainable Systems, has pleaded guilty to tax fraud for lying on his tax returns by overstating his charitable deductions.
“Charitable giving is a virtue. But Crittenden avoided paying hundreds of thousands of dollars in taxes by lying about his charitable deductions to perpetrate a tax fraud scheme involving Chinese nationals,” said U.S. Attorney Ryan K. Buchanan. “Because of his actions Crittenden will no longer be employed by the university and will also be required to pay all taxes owed.”
“Crittenden’s guilty plea is the result of the determination and hard work of federal investigators and prosecutors who aggressively pursue allegations of tax fraud,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is determined to root out and prosecute anyone who would try to undermine the tax return system.”
“No matter the scheme or amount, do not falsify your tax returns,” said IRS Criminal Investigation Acting Special Agent in Charge Demetrius Hardeman. “We have an incredible team of talented, intelligent agents trained to investigate these tax fraud schemes. Crittenden not only has to make amends by paying his owed taxes, but he also faces jail time, fines, and penalties for his decisions. This guilty plea is evidence that fraud does not pay.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: John Crittenden’s academic research focused on scalable water treatment systems and technologies. Crittenden had deep ties to China, in part due to his position at Georgia Tech and his research.
While employed at Georgia Tech and living in the United States, Crittenden partnered with a Chinese national, Duo Li, to operate several companies in China, including Beijing Keruiduo Environmental, Beijing Crittenden Environmental Technology Company, and Kunshan Techfirst. These companies, as well as individuals associated with Duo Li, wired hundreds of thousands of dollars either directly to the charitable donation arm of Georgia Tech, the Georgia Institute of Technology Foundation (GTF), or to Crittenden’s Bank of America account, after which he “donated” the funds to GTF. When the funds arrived at GTF, they were earmarked for Crittenden’s use at Georgia Tech. Regardless of how the funds reached GTF, Crittenden improperly and falsely claimed the transfers to GTF as charitable deductions on his tax returns without recognizing any of the transfers as income.
Crittenden also received transfers to his Bank of America account from Chinese nationals who were participating in post-doctoral research at Georgia Tech or their family members. Crittenden then “donated” these funds to GTF and improperly and falsely took a charitable deduction on his tax returns, while not recognizing any of the funds as income. Neither Georgia Tech nor GTF were aware that Crittenden was conducting this tax fraud scheme.
As part of the plea agreement, prior to sentencing, Crittenden must resign from all positions of employment at the Georgia Institute of Technology and the Georgia Tech Research Institute, pay all taxes owed for tax years 2011 through 2021, and fully cooperate with the Examination Division of the Internal Revenue Service in making a complete and accurate determination of all taxes, penalties, and interest that Crittenden owes.
Sentencing for Crittenden, 73, of Atlanta, Georgia, is scheduled for January 16, 2024, at 10:00 am before U.S. District Judge Leigh Martin May. Crittenden pleaded guilty to a criminal information charging him with making a false statement on a tax return, in violation of Title 26, United States Code, Section 7206(1).
This case is being investigated by the Internal Revenue Service Criminal Investigation and Federal Bureau of Investigation.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man Pleads Guilty to Election-Related Threat Toward Georgia Public OfficialsRead the Press Release
A Texas man pleaded guilty today in the Northern District of Georgia to posting a message online threatening several Georgia public officials following the 2020 election.
“This case marks another destructive example of threats of violence to the election community and law enforcement,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Department will not tolerate the criminal targeting of the men and women responsible for administering our elections and ensuring that every eligible voter has the opportunity to exercise the most fundamental right in our democracy: the right to vote.”
According to court documents, around Jan. 5, 2021, Chad Christopher Stark, 55, of Leander, posted a message to Craigslist entitled, “Georgia Patriots it’s time to kill [Official A] the Chinese agent - $10,000.” The message included the following: “It’s time to invoke our Second Amendment right it’s time to put a bullet in the treasonous Chinese [Official A]. Then we work our way down to [Official B] the local and federal corrupt judges. It’s our duty as American Patriots to put an end to the lives of these traitors and take back our country by force. . . . If we want our country back we have to exterminate these people. One good loyal Patriot deer hunter in camo and a rifle can send a very clear message to these corrupt governors.. milita up Georgia it’s time to spill blood…. we need to pay a visit to [Official C] and her family as well and put a bullet her behind the ears. Remember one thing local law enforcement the key word being local….. we will find you oathbreakers and we’re going to pay your family to visit your mom your dad your brothers and sisters your children your wife… we’re going to make examples of traitors to our country… death to you and all you communist friends.”
“All across this country our fellow citizens and neighbors, including many retirees, choose to serve as elections officials, poll workers, and in other capacities to help ensure free and fair elections in the United States. They serve out of a patriotic duty and appreciation for our nation and deserve to do so without fear of retaliation or threats of violence,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Stark threatened officials working at all levels of the election process including elected office holders and a volunteer poll worker. His egregious conduct placed our democracy in jeopardy, striking at the heart of the process we assume to be insulated from such attacks. Our office will remain steadfast in partnering with federal, state, and local authorities to safeguard those who work to secure our elections.”
“Today’s guilty plea plainly shows that anyone who threatens election officials online will be investigated by the FBI and held accountable for their words” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We must take calls to violence seriously, whatever their form, especially when they have the potential to result in physical harm and undermine the integrity of U.S. elections.”
Stark pleaded guilty today to one count of a sending a threat using a telecommunications device. He faces a maximum penalty of two years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Atlanta Field Office is investigating the case.
Election Crimes Branch Director of Enforcement and Litigation Sean F. Mulryne of the Criminal Division’s Public Integrity Section and Senior Litigation Counsel Brent A. Gray for the Northern District of Georgia are prosecuting this case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Two years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Department of Justice, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
Georgia man sentenced to prison for COVID-19 relief fraud two years after being sentenced by the same court for mortgage fraudRead the Press Release
ATLANTA - Maurice Lawson has been sentenced to federal prison for obtaining nearly a half a million dollars by submitting multiple fraudulent Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) applications.
“Congress enacted the Paycheck Protection Program to provide emergency financial assistance to millions of Americans suffering the economic effects of the COVID-19 pandemic. Lawson took advantage of a federal program that depended on self-reporting to get relief in the hands of American businesses as fast as possible,” said U.S. Attorney Ryan K. Buchanan. “His crimes make it harder for the United States to provide disaster relief during the next large-scale emergency. This office, in coordination with our federal, state, and local law enforcement partners, is dedicated to holding individuals who sought to exploit this critical economic safety net accountable for their conduct.”
“Lawson used his position during an unprecedented national pandemic to steal critical taxpayer money intended to provide relief to legitimate small businesses and employees who desperately needed it,” said Special Agent-in-Charge Jerome Winkle with the HUD Office of Inspector General. “HUD OIG remains steadfast in its commitment to working with the U.S. Attorney’s Office and law enforcement partners to aggressively pursue those who engage in activities that threaten the integrity of HUD and other federal programs.”
“We remain committed to combatting fraud within the Paycheck Protection Program,” said Edwin Bonano, Special Agent in Charge of FHFA-OIG’s Southeast Region. “FHFA-OIG will pursue criminals who created fraudulent schemes to divert PPP funds from those it was meant to aid until they are held fully accountable.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between April 2020 and March 2021, Lawson applied for at least seven PPP or EIDL loans for six different businesses. The applications contained an assortment of false information, including false Tax Forms 940 and 941, fake social security cards, fraudulent addresses, falsified average monthly payroll claims, and false claims of employing between five and 12 employees. In total, Lawson sought $537,120, and received $419,020, in loan proceeds. Among the businesses used to seek these loans was Coastal Drape, LLC – the same company that Lawson used during his mortgage fraud conspiracy, for which he was sentenced in March 2021 to three years of federal probation. Lawson received funds from one of the fraudulent COVID-19 loan applications days after being sentenced for mortgage fraud.
Maurice Lawson, 39, of Lithia Springs, Georgia, has been sentenced to one year, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $437,870.07. Lawson was convicted on these charges on May 16, 2023, after he pleaded guilty.
This case was investigated by the Department of Housing and Urban Development Office of Inspector General and Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorney Alison Prout prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
UBS agrees to pay $1.435 billion for fraud in the sale of residential mortgage-backed securitiesRead the Press Release
ATLANTA – UBS AG and several of its U.S.-based affiliates (together, “UBS”) have agreed to pay $1.435 billion in penalties to settle a civil action filed in November 2018 alleging misconduct related to UBS’ underwriting and issuance of residential mortgage-backed securities (RMBS) issued in 2006 and 2007. UBS will pay the United States $1,435,000,000 in civil penalties in exchange for dismissal of the complaint filed in the action. This settlement resolves the last case brought by a Department of Justice Working Group dedicated to investigating conduct of banks and other entities for their roles in creating and issuing RMBS leading up to the 2008 financial crisis.
“This settlement represents accountability for those entities and individuals who mistakenly believed themselves to be above the law,” said U.S. Attorney Ryan K. Buchanan. “UBS’ conduct in this case played a significant role in causing a financial crisis that harmed millions of Americans. The scope of this settlement should serve as a warning to other financial institutions – both large and small – of the significant penalties that can result when corporations misrepresent vital information to investors and undermine trust in our public markets. We are thankful for the collective efforts of our partners at the U.S. Attorney’s Office for the Eastern District of New York and the investigative agencies to bring this case to resolution.”
“In the wake of the 2008 financial crisis, people all across the country experienced financial ruin and emotional devastation, and many are still recovering nearly 15 years later,” said Associate Attorney General Vanita Gupta. “As this settlement demonstrates, the department and our partner agencies remain committed to holding accountable those who break the law and undermine the well-being of American families.”
“The results achieved by the RMBS Working Group are a testament to the exceptional dedication and hard work by department attorneys over many years,” said Principal Deputy Assistant Attorney General Brian Boynton. “We are grateful for the outstanding support provided by our partners in federal agencies and states that similarly sought to hold responsible those entities that contributed to the 2008 financial crisis.”
“With this resolution, UBS will pay for its conduct related to its underwriting and issuance of residential mortgage-backed securities. The substantial civil penalty in this case serves as a warning to other players in the financial markets who seek to unlawfully profit through fraud that we will hold them accountable no matter how long it takes,” stated U.S. Attorney Breon Peace. “The over $36 billion collected for conduct that fueled the 2008 financial crisis reflects the Department of Justice’s deep commitment to protecting financial markets, investors and the public against fraudulent conduct.”
“The FHFA Office of Inspector General, together with our RMBS Working Group partners, investigated and held accountable those who sought to victimize Fannie Mae, Freddie Mac and investors by selling fraudulent mortgage-backed securities,” said FHFA Inspector General Brian Tomney. “We appreciate our longstanding partnership with the Department of Justice and its vigorous pursuit of justice in this case.”
Following an extensive investigation, the United States filed a complaint alleging that UBS defrauded investors in connection with the sale of 40 RMBS issued in 2006 and 2007. The complaint alleged that UBS knowingly made false and misleading statements to buyers of these securities relating to the characteristics of the mortgage loans underlying the RMBS in violation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. § 1833a (FIRREA). The FIRREA claims were based on alleged violations of the mail, wire, and bank fraud statutes, as well as 18 U.S.C. §§ 1005 and 1014.
The government’s complaint alleged that contrary to UBS’ representations in publicly filed offering documents, UBS knew that significant numbers of the loans backing the RMBS did not comply with loan underwriting guidelines that were designed to assess borrowers’ ability to repay. The complaint further asserted that UBS knew that the property values associated with a significant number of the securitized loans were unsupported, and that significant numbers of the loans had not been originated in accordance with consumer protection laws. UBS was allegedly aware of these significant problems because it had conducted extensive due diligence on the underlying loans prior to the RMBS being issued to determine whether the loans were consistent with representations that would be made to investors. Ultimately, the 40 RMBS sustained substantial losses.
With the UBS settlement announced today, the Department of Justice has collected more than $36 billion in civil penalties from 18 major domestic and foreign banks, originators, and rating agencies for their alleged conduct in connection with mortgages securitized in failed RMBS leading up to the 2008 financial crisis. These resolutions include settlements with eighteen banks, mortgage originators, and rating agencies: Ally Financial; Aurora Loan Services; Bank of America; Barclays; Citigroup; Credit Suisse; Deutsche Bank; General Electric; Goldman Sachs; HSBC; JPMorgan; Moody’s; Morgan Stanley; Nomura; Royal Bank of Scotland; S&P; Société Générale; and Wells Fargo.
Collectively, these matters were handled by 11 U.S. Attorney’s Offices and the Civil Division of the Department of Justice, in conjunction with the RMBS Working Group. The RMBS Working Group was a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that led to the financial crisis. Formed in 2012, the RMBS Working Group brought together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies, including the FHFA Office of Inspector General, the Department of Housing and Urban Development, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Securities and Exchange Commission, and the FBI, to investigate financial fraud in RMBS.
The claims resolved in the settlement are allegations only and there has been no determination of liability.
The government’s case was handled by Assistant U.S. Attorneys Austin M. Hall, Andres H. Sandoval, and former Assistant U.S. Attorney Armen Adzhemyan for the Northern District of Georgia, and Assistant U.S. Attorneys Bonni J. Perlin, Michael J. Castiglione, Richard K. Hayes, Edward K. Newman, and Melanie Speight for the Eastern District of New York, with the support of agents from the Federal Housing Finance Agency-Office of the Inspector General.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
UBS Agrees to Pay $1.435 Billion for Fraud in the Sale of Residential Mortgage-Backed SecuritiesRead the Press Release
UBS AG and several of its U.S.-based affiliates (together, UBS) have agreed to pay $1.435 billion in penalties to settle a civil action filed in November 2018 alleging misconduct related to UBS’ underwriting and issuance of residential mortgage-backed securities (RMBS) issued in 2006 and 2007. This settlement resolves the last case brought by a Justice Department working group dedicated to investigating conduct of banks and other entities for their roles in creating and issuing RMBS leading up to the 2008 financial crisis.
Following an extensive investigation, the United States filed a complaint alleging that UBS defrauded investors in connection with the sale of 40 RMBS issued in 2006 and 2007. The complaint alleged that UBS knowingly made false and misleading statements to buyers of these securities relating to the characteristics of the mortgage loans underlying the RMBS in violation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The FIRREA claims were based on alleged violations of the mail, wire, and bank fraud statutes.
“In the wake of the 2008 financial crisis, people all across the country experienced financial ruin and emotional devastation, and many are still recovering nearly 15 years later,” said Associate Attorney General Vanita Gupta. “As this settlement demonstrates, the department and our partner agencies remain committed to holding accountable those who break the law and undermine the well-being of American families.”
“The results achieved by the RMBS Working Group are a testament to the exceptional dedication and hard work by department attorneys over many years,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are grateful for the outstanding support provided by our partners in federal agencies and states that similarly sought to hold responsible those entities that contributed to the 2008 financial crisis.”
“With this resolution, UBS will pay for its conduct related to its underwriting and issuance of residential mortgage-backed securities. The substantial civil penalty in this case serves as a warning to other players in the financial markets who seek to unlawfully profit through fraud that we will hold them accountable no matter how long it takes,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “The over $36 billion collected for conduct that fueled the 2008 financial crisis reflects the Department of Justice’s deep commitment to protecting financial markets, investors and the public against fraudulent conduct.”
“This settlement represents accountability from those who thought they were above the law,” said U.S. Attorney Ryan Buchanan for the Northern District of Georgia. “UBS’ conduct at issue in this case played a significant role in causing a financial crisis that harmed millions of Americans. We will continue to seek accountability when financial institutions – large or small – misrepresent vital information to investors and undermine trust in our public markets.”
The government’s complaint alleged that contrary to UBS’ representations in publicly filed offering documents, UBS knew that significant numbers of the loans backing the RMBS did not comply with loan underwriting guidelines that were designed to assess borrowers’ ability to repay. The complaint further asserted that UBS knew that the property values associated with a significant number of the securitized loans were unsupported, and that significant numbers of the loans had not been originated in accordance with consumer protection laws. UBS was allegedly aware of these significant problems because it had conducted extensive due diligence on the underlying loans prior to the RMBS being issued to determine whether the loans were consistent with representations that would be made to investors. Ultimately, the 40 RMBS sustained substantial losses.
“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), together with our RMBS Working Group partners, investigated and held accountable those who sought to victimize Fannie Mae, Freddie Mac and investors by selling fraudulent mortgage-backed securities,” said FHFA Inspector General Brian Tomney. “We appreciate our longstanding partnership with the Department of Justice and its vigorous pursuit of justice in this case.”
With the UBS settlement announced today, the Justice Department has collected more than $36 billion in civil penalties from entities for their alleged conduct in connection with mortgages securitized in failed RMBS leading up to the 2008 financial crisis. These resolutions include settlements with the following banks, mortgage originators, and rating agencies: Ally Financial; Aurora Loan Services; Bank of America; Barclays; Citigroup; Credit Suisse; Deutsche Bank; General Electric; Goldman Sachs; HSBC; JPMorgan; Moody’s; Morgan Stanley; Nomura; Royal Bank of Scotland; S&P; Société Générale; and Wells Fargo.
Collectively, these matters were handled by 11 U.S. Attorneys’ Offices and the Justice Department’s Civil Division, in conjunction with the RMBS Working Group. The RMBS Working Group was a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that led to the financial crisis. Formed in 2012, the RMBS Working Group brought together more than 200 attorneys, investigators, analysts, and staff from dozens of state and federal agencies, including the FHFA-OIG, the Department of Housing and Urban Development, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Securities and Exchange Commission, and the FBI, to investigate financial fraud in RMBS.
Assistant U.S. Attorneys Bonni J. Perlin, Michael J. Castiglione, Richard K. Hayes, Edward K. Newman and Melanie Speight for the Eastern District of New York, Austin M. Hall and Andres H. Sandoval, and former Assistant U.S. Attorney Armen Adzhemyan for the Northern District of Georgia handled the case.
The claims resolved in the settlement are allegations only and there has been no determination of liability.
SettlementMetro Atlanta man charged with laundering funds from COVID-19 unemployment relief and submitting fraudulent EIDL loan applicationRead the Press Release
ATLANTA - Austin Martin Siampwizi has been arraigned on federal charges of concealment money laundering, money laundering conspiracy, and wire fraud.
“Money launderers used the COVID-19 pandemic to financially benefit while millions of Americans were suffering,” said U.S. Attorney Ryan K. Buchanan. “We will continue to prosecute individuals who defrauded this program at the expense of vulnerable citizens in need of this critical relief.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to aggressively investigate these types of allegations.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Austin Martin Siampwizi allegedly laundered money procured from fraudulent unemployment claims submitted to the Employment Security Department of Washington State (“ESD”). These claims were filed using personal identifiable information stolen from more than 50 individuals. Additionally, Siampwizi has been charged with wire fraud for allegedly submitting a fraudulent Economic Injury Disaster Loan (“EIDL”) application to the SBA.
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) created a temporary federal program that provided up to 39 weeks of unemployment benefits for those unemployed because of the pandemic and included a provision to provide temporary benefits to individuals who had exhausted their entitlement to regular benefits or were otherwise not eligible. That temporary federal program was administered by state employment agencies. The CARES Act also allowed the U.S. Small Business Administration (“SBA”) to offer funding to business owners negatively affected by the pandemic.
Austin Martin Siampwizi, 46, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge J. Christopher C. Bly. Siampwizi was indicted by a federal grand jury on July 25, 2023.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Department of Labor Office of Inspector General, the U.S. Secret Service, the Internal Revenue Service Criminal Investigation, the Department of Homeland Security-Homeland Security Investigations, Federal Bureau of Investigation, and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Sarah E. Klapman is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia woman sentenced to nearly four years in prison for multi-million dollar COVID-19 relief fraudRead the Press Release
ATLANTA – Lakisha Swope has been sentenced to federal prison for obtaining more than $3.6 million by submitting fraudulent Paycheck Protection Program (“PPP”) applications.
“Congress enacted the Paycheck Protection Program to provide emergency financial assistance to millions of Americans suffering the economic effects of the COVID-19 pandemic. But Swope used the program to commit a nationwide fraud scheme resulting in a nearly four-million-dollar theft of COVID relief funds,” said U.S. Attorney Ryan K. Buchanan. “Her sentence reflects the significance of her criminal conduct and demonstrates the dedication of our office, and federal, state, and local law enforcement partners, to ensure that individuals who seek to exploit this critical economic safety net are held accountable for their crimes.”
“While businesses were suffering and trying their best to make it through the pandemic, Swope chose greed,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Her greed impacted every tax-paying citizen. The FBI and our law enforcement partners will persist in unraveling these fraud schemes and bring criminals to justice.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Lakisha Swope operated a nationwide scheme seeking to obtain fraudulent PPP funds. The investigation revealed that dozens of false PPP applications were filed from Swope’s residence.
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. Additional funding was authorized by Congress in December 2020.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
But in this case, FBI agents, while executing a search warrant of Swope’s residence, seized voluminous documents showing her role in managing a conspiracy to defraud the program, including false PPP applications in the names of dozens of businesses.
To carry out this scheme, Swope flew around the country, including to Texas, Missouri, and Florida, to collect loan fees from business owners she was using to file these false PPP applications. Swope’s criminal conduct led to banks making $3,626,961 in fraudulent PPP payments. Swope used the fraudulently obtained funds on luxury clothing, restaurants, hotels, and vacation rentals.
Lakisha Swope, 45, of Suwanee, Georgia, was sentenced to three years and 10 months in prison to be followed by three years of supervised release and was ordered to pay $3,626,961 in restitution to the U.S. Small Business Administration.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Thomas J. Krepp prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man convicted of fraudulently obtaining U.S. citizenshipRead the Press Release
ATLANTA - A jury has convicted Mezemr Abebe Belayneh for fraudulently obtaining U.S. citizenship by lying about his role in persecuting teenagers in Ethiopia for their political opinions.
“The jury’s verdict is aligned with our commitment to holding accountable human rights violators who lie to enter the United States,” said U.S. Attorney Ryan K. Buchanan. “We are grateful for the remarkable effort and perseverance of our law enforcement partners, who sought justice for the courageous victims, several of whom provided testimony of oppressive violence during the trial.”
“The Department of Justice is committed to protecting human rights, and those who commit atrocities will not find safe refuge in the United States,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Thanks to the courage of the victims of these horrible abuses and the persistence of investigators and prosecutors, Mezemr Abebe Belayneh is finally facing justice for the violence he inflicted on young people in Ethiopia 45 years ago.”
“Homeland Security Investigations (HSI) is committed to identifying and apprehending human rights violators who try to evade justice by seeking shelter in the United States,” said Acting Special Agent in Charge Travis Pickard, who oversees HSI operations in Georgia and Alabama. “The United States is not a safe haven for these criminals, and we will never stop looking for them or seeking justice for their victims.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Mezemr Abebe Belayneh unlawfully obtained U.S. citizenship in 2008 by lying about and concealing that he persecuted and committed acts of violence against political opponents during a period known as “the Red Terror” in Ethiopia. The Red Terror was a campaign of brutal violence in the late 1970s in which Ethiopia’s ruling military council and its supporters detained, interrogated, tortured, and executed thousands of perceived political opponents.
During the Red Terror, Belayneh served as a civilian interrogator at a makeshift prison known as Menafesha in the city of Dilla, Ethiopia. Belayneh detained teenage victims in a crowded prison for weeks or months, interrogated them about their political beliefs, and directed and participated in severe beatings in which they were whipped or hit with sticks. Belayneh also forced prisoners to physically fight one another for the prison guards’ amusement. Belayneh concealed that conduct when he obtained a visa to enter the United States in 2001 and when he naturalized to become a U.S. citizen in 2008.
Mezemr Abebe Belayneh, 67, of Snellville, was convicted by a jury on July 26, 2023. The jury convicted Belayneh of one count of procuring citizenship contrary to law and one count of procuring citizenship to which he was not entitled. He is scheduled to be sentenced on November 1, 2023.
The HSI Atlanta Field Office investigated the case, with coordination provided by the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female mutilation, and the use or recruitment of child soldiers.
Assistant U.S. Attorney Tal C. Chaiken and Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case, with assistance from HRSP Senior Historian Dr. Christopher Hayden. The Justice Department’s Office of International Affairs also provided significant assistance.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE or its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man Convicted of Fraudulently Obtaining U.S. CitizenshipRead the Press Release
A federal jury in the Northern District of Georgia convicted a Georgia man yesterday of fraudulently obtaining U.S. citizenship by lying about his role in persecuting teenagers in Ethiopia for their political opinions.
According to court documents and evidence presented at trial, Mezemr Abebe Belayneh, 67, of Snellville, unlawfully obtained U.S. citizenship in 2008 by lying about and concealing that he persecuted and committed acts of violence against political opponents during a period known as “the Red Terror” in Ethiopia. The Red Terror was a campaign of brutal violence in the late 1970s in which Ethiopia’s ruling military council and its supporters detained, interrogated, tortured, and executed thousands of perceived political opponents.
“The Department of Justice is committed to protecting human rights, and those who commit atrocities will not find safe refuge in the United States,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Thanks to the courage of the victims of these horrible abuses and the persistence of investigators and prosecutors, Mezemr Abebe Belayneh is finally facing justice for the violence he inflicted on young people in Ethiopia 45 years ago.”
“The jury’s verdict is aligned with our commitment to holding accountable human rights violators who lie to enter the United States,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “We are grateful for the remarkable effort and perseverance of our law enforcement partners, who sought justice for the courageous victims, several of whom provided testimony of oppressive violence during the trial.”
During the Red Terror, Belayneh served as a civilian interrogator at a makeshift prison known as Menafesha in the city of Dilla, Ethiopia. Belayneh detained teenage victims in a crowded prison for weeks or months, interrogated them about their political beliefs, and directed and participated in severe beatings in which they were whipped or hit with sticks. Belayneh also forced prisoners to physically fight one another for the prison guards’ amusement. Belayneh concealed that conduct when he obtained a visa to enter the United States in 2001 and when he naturalized to become a U.S. citizen in 2008.
“Homeland Security Investigations (HSI) is committed to identifying and apprehending human rights violators who try to evade justice by seeking shelter in the United States,” said Acting Special Agent in Charge Travis Pickard, who oversees HSI operations in Georgia and Alabama. “The United States is not a safe haven for these criminals, and we will never stop looking for them or seeking justice for their victims.”
The jury convicted Belayneh of one count of procuring citizenship contrary to law and one count of procuring citizenship to which he was not entitled. He is scheduled to be sentenced on Nov. 1 and faces a maximum penalty of 10 years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI Atlanta investigated the case, with coordination provided by the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female mutilation, and the use or recruitment of child soldiers.
Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Tal C. Chaiken for the Northern District of Georgia are prosecuting the case, with assistance from HRSP Senior Historian Dr. Christopher Hayden. The Justice Department’s Office of International Affairs also provided significant assistance.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE or its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Arizona man who extorted Georgia Tech sentenced to prisonRead the Press Release
ATLANTA - Ronald Bell has been sentenced to two years and nine months in prison for extorting Georgia Tech. Bell recruited a security guard to falsely claim that the guard witnessed an assault by its basketball coach in exchange for part of the extortion payout he expected to receive from the university.
“Ronald Bell tried to extort Georgia Tech and ruin the reputation of its basketball coach,” said U.S. Attorney Ryan K. Buchanan. “As federal prosecutors, we have a responsibility to the citizens of this district to pursue accountability and justice for crimes of sexual violence. But in this case Bell attempted to exploit the mission of our office, and law enforcement partners, to combat sexual assault through a brazen effort to enrich himself at the expense of Georgia Tech and a member of its staff. Bell has now been held accountable for his crime.”
“Bell sought to severely damage the reputation of the institution and their coach solely for his own financial gain,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentence proves that the FBI will not tolerate false allegations and will do everything in our power to seek the truth and hold individuals who commit these type of crimes accountable for their selfish actions.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Ronald Bell pleaded guilty to conspiring with his co-defendant, Jennifer Pendley, and a security guard at Georgia Tech, to extort the university by falsely accusing the coach of the men’s basketball team of sexual assault. Bell recruited the security guard to falsely claim that the guard witnessed an assault by the coach. Bell told the security guard that the false accusation of sexual assault could be worth $20 million to Bell and Pendley and promised the guard a share of the money and a new Jeep.
Bell also communicated with representatives of Georgia Tech and demanded money in exchange for not reporting the fictitious sexual assault. For example, he texted a representative of Georgia Tech that: “This is going to get very ugly. GT has made no effort . . . to amicably resolve this . . . I guess this has to get ugly. I tried to resolve this without damaging GT’s reputation . . . .”
After Georgia Tech refused to pay Bell, Pendley filed a lawsuit claiming sexual battery, sexual assault, and intentional infliction of emotional distress. These claims falsely alleged that the guard witnessed the coach sexually assault Pendley. Ultimately, the security guard admitted that his statements were false and that Bell asked him to lie to support the false sexual assault claim.
Ronald Bell, 57, of Oro Valley, Ariz., was sentenced to two years, nine months in prison to be followed by three years of supervised release. Bell was convicted of the charge of conspiracy on March 1, 2023, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office organizes gang resistance education and training for local school resource officersRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia partnered with the Georgia Alliance for School Resource Officers and Educators, the Georgia Public Safety Training Center, and the Georgia Gang Investigators Association last week to provide an intensive law enforcement training, “G.R.E.A.T.” (Gang Resistance Education and Training), for more than 40 police officers from school systems in the Northern District of Georgia.
“Many of law enforcement’s best work happens daily in our schools to keep our children safe while they learn. We are excited to facilitate this training, which will boost the ability of school resource officers to better connect with students in a positive way,” said U.S. Attorney Ryan K. Buchanan. “Our goal is to successfully divert children from the destructive life of crime that gang activity fosters. G.R.E.A.T. offers real-time skills training aimed at preparing officers for interactions with students who may face decisions regarding gang-affiliation, frequently by force. This training enables our office to expand our multi-faceted approach to stemming youth violence, youth incarceration and gang recruitment, providing an excellent addition to our annual summer youth violence intervention programs.”
“The voices of gangs are very loud in our kids' ears. They are robbing them of their opportunity for success. Our voices must be louder! Thanks to the U.S. Attorney, GASROE, GPSTC, and G.R.E.A.T., we can provide our kids with tools to help resist gangs,” said Ronald S. Applin Sr., Chief of Police, Executive Director of Safety, Atlanta Public Schools Police.
“It was an honor to work with the G.R.E.A.T. organization to host this gang intervention training with School Resource Officers (SRO) throughout the Northern District of Georgia. This training is another way to enhance our SROs skills and expertise in protecting our youth from gangs. Furthermore, we are grateful to have strong partnerships with the U.S. Attorney’s Office, Georgia Alliance for School Resource Officers and Educators, and Georgia Gang Investigators Association to bring trainings such as these to support our SROs in building strong relationships with our youth,” said Chris Wigginton, Executive Director, Georgia Public Safety Training Center.
G.R.E.A.T. is an evidence-based gang and violence prevention program built around school-centered, law enforcement officer-instructed classroom curricula. Since its inception, G.R.E.A.T. has been used to train thousands of sworn officers from around the United States as certified G.R.E.A.T. instructors.
The program is designed to prevent and reduce delinquency, youth violence, and gang membership – particularly for children during those formative years when the threat of introduction into gangs is most acute. The program also seeks to help children develop a more positive relationship with law enforcement and to offer students opportunities to model and practice life skills and attitudes needed to treat others with respect and empathy, make better choices, and set positive and achievable goals.
U.S. Attorney Buchanan, during televised remarks this week, emphasized the vital role that positive interactions between school children and law enforcement officers can play in preventing gangs from recruiting children in our communities (see U.S. Attorney’s Interview). “As we work to make our schools and communities safer, we know that building trust is critical,” said U.S. Attorney Buchanan. “G.R.E.A.T. will help these police officers develop skills critical in creating meaningful and positive interactions between students and law enforcement officers. These officers are already committed to keeping our children safe, and we believe this additional training will better enable them to speak directly to gang influences.”
The training arrived just in time for the start of the 2023-2024 school term. Determined to help keep children in the Northern District of Georgia safe in schools and out of gangs, over 40 school resource officers in metro-Atlanta agreed to participate in this week-long, intensive program. These officers, specifically chosen by their respective agencies, serve at over 70 local schools that enroll over 26,000 students. Several of the officers in attendance remarked on the critical need for law enforcement officers to hone skills in connecting with school children and gaining their trust – a central aim of the G.R.E.A.T. training curricula.
The training took place July 17- 21, 2023, at the Georgia Public Safety Training Center in Forsyth, and was presented by the Institute for Intergovernmental Research, a highly experienced team of professionals from around the country with extensive experience in gang prevention and intervention.
This training is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- Driver indicted for possession of a machinegun
Businessman Sentenced for Bribery Scheme and Tax EvasionRead the Press Release
The former executive vice president of an Atlanta engineering firm was sentenced today to five years in prison for paying bribes to two City of Atlanta officials in exchange for steering city business worth millions of dollars to his company, paying bribes to a former DeKalb County, Georgia, official in an attempt to obtain county contracts, and evading over $1.5 million in taxes.
According to court documents, Lohrasb “Jeff” Jafari, 72, of Alpharetta, Georgia, was the executive vice president of PRAD Group, an architectural, design, and construction management firm headquartered in Atlanta that performed services for the City of Atlanta and DeKalb County. Jafari also oversaw PRAD Group’s finances. From January 2003 to February 2017, Adam Smith served as the chief procurement officer (CPO) for the City of Atlanta and supervised the city’s purchasing activities and its expenditure of billions of dollars of public money. From April 2011 to May 2016, Jo Ann Macrina served as the City of Atlanta’s Commissioner of the Department of Watershed Management, a cabinet-level position from which she managed the city’s drinking water and wastewater systems and was responsible for an annual budget exceeding $500 million.
Jafari gave Smith and Macrina cash and other items of value to obtain business with the City of Atlanta. In exchange for those payments, Smith and Macrina conspired with Jafari to ensure that PRAD Group received city business worth millions of dollars, including by agreeing to replace two evaluators on the selection team for the city’s Architectural and Engineering contract and re-scoring an evaluation so that the city would award the contract to Jafari’s company.
During Smith’s tenure as the CPO, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner. For years, Jafari met privately with Smith on multiple occasions, frequently at local restaurants. During these meetings, Jafari and Smith discussed City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was actively seeking additional work and assistance with ongoing city projects. Jafari paid Smith $1,000 in cash in the bathroom of the restaurant after most of the meetings. In return for these bribe payments, Jafari expected Smith to use his position and power to assist Jafari with contracting and procurement with the City of Atlanta. From at least 2014 to January 2017, Jafari paid Smith more than $40,000 in cash with the intent to influence Smith in his role as the city’s CPO.
In February 2017, Jafari became aware of the federal investigation into his bribe payments to Smith and confronted Smith at Atlanta City Hall. Jafari insisted that Smith lie to the FBI by denying that Smith took bribe money from him.
From at least 2013 through May 2016, Macrina met with Jafari to discuss City of Atlanta procurement projects, bids, and solicitations. Often when they met, Jafari was actively seeking contracts, projects, and work with the City of Atlanta. To obtain city work, Jafari promised Macrina a lucrative job with PRAD Group and, directly or through a PRAD Group employee, gave Macrina $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, a luxury shopping trip in Dubai, and landscaping work at her home. Shortly after the City of Atlanta fired her, Macrina began working for Jafari and PRAD Group. Between June and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.
In April and August 2014, the FBI conducted two undercover operations using a confidential source. During two secretly recorded meetings, the confidential source met with Jafari at local restaurants, where Jafari sought assistance from the source to obtain work in DeKalb County. After the meetings, Jafari directed the source to the bathroom of the restaurants where Jafari made cash payments of $1,000 and $1,500.
In addition, from 2014 to 2016, Jafari neither filed personal tax returns, nor paid any income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used money from the PRAD Group’s corporate accounts to pay for various personal expenses, including several luxury vehicles. Jafari evaded the payment of at least $1.5 million in taxes.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Acting Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office made the announcement.
The FBI Atlanta Field Office and IRS-CI investigated the case.
Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section, Trial Attorney Todd Ellinwood of the Justice Department’s Tax Division, and Assistant U.S. Attorneys Jeffrey W. Davis and Nathan P. Kitchens for the Northern District of Georgia prosecuted the case.
Businessman Jeff Jafari sentenced to five years in federal prison for bribing City of Atlanta and DeKalb County officials to obtain contractsRead the Press Release
ATLANTA - Lohrasb “Jeff” Jafari, the former Executive Vice President of Atlanta engineering firm, PRAD Group, Inc., has been sentenced for paying bribes to two City of Atlanta officials in exchange for steering city business worth millions of dollars to his company, paying bribes to a former DeKalb County, Georgia, official in an attempt to obtain county contracts, and evading over $1.5 million in taxes.
“Jeff Jafari paid bribe after bribe to high-ranking government officials in the City of Atlanta and DeKalb County over several years and thereby obtained lucrative city contracts worth tens of millions of dollars,” said U.S. Attorney Ryan K. Buchanan. “The public paid a heavy price from every project unfairly awarded to Jafari’s companies through corruption, and he then compounded his harm by never paying any tax on his substantial personal income. His greed delivered a hard blow to public trust in honest and fair government, but this sentence underscores our commitment to prosecuting corruption in any form.”
"Circumventing the process to hire contractors for the city by accepting bribes to profit personally is one of the highest forms of public corruption," said Keri Farley, Special Agent in Charge of FBI Atlanta. "As this sentencing shows, the FBI and the City of Atlanta will not tolerate anyone who takes advantage of city funds and abuses their position of trust.”
“Residents expect fair and open competition for city contracts,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “City officials who accept bribes undermine the contracting process and diminish trust in the government. IRS Criminal Investigation and our partners will continue investigating and holding those accountable who take the public trust for granted to enrich themselves.”
According to the charges and other information presented in court: From 1984 to 2018, PRAD Group was an architectural, design, and construction management firm headquartered in Atlanta, Georgia, that performed services for the City of Atlanta and DeKalb County, Georgia. Jafari served as PRAD Group’s Executive Vice President and oversaw PRAD Group’s finances.
From January 2003 to February 2017, Adam Smith served as the Chief Procurement Officer (CPO) for the City of Atlanta and supervised the city’s purchasing activities and its expenditure of billions of dollars of public money. From April 2011 to May 2016, Jo Ann Macrina served as the City of Atlanta’s Commissioner of the Department of Watershed Management, a cabinet-level position from which she managed the City’s drinking water and wastewater systems and was responsible for an annual budget exceeding $500 million.
Jafari gave Smith and Macrina cash and other items of value to obtain business with the City of Atlanta. In exchange for those payments, Smith and Macrina conspired with Jafari to ensure that PRAD Group received city business worth millions of dollars, including by agreeing to replace two evaluators on the selection team for the city’s Architectural and Engineering contract and to re-score an evaluation so that Jafari’s company would be awarded a contract.
During Smith’s tenure as the CPO, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner. For years, Jafari met privately with Smith on multiple occasions, frequently at local restaurants. During these meetings, Jafari and Smith discussed City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings Jafari was actively seeking additional work and/or assistance with ongoing city projects. Jafari paid Smith $1,000 in cash in the bathroom of the restaurant after most of the meetings. In return for these bribe payments, Jafari expected Smith to use his position and power to assist Jafari with contracting and procurement with the City of Atlanta. From at least 2014 to January 2017, Jafari paid Smith more than $40,000 in cash with the intent to influence Smith in his role as the city’s CPO.
In February 2017, Jafari became aware of the federal investigation into his bribe payments to Smith and confronted Smith at Atlanta City Hall. Jafari insisted that Smith lie to the FBI by denying that Smith took bribe money from him.
From at least 2013 through May 2016, Macrina met with Jafari to discuss City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was actively seeking contracts, projects, and work with the City of Atlanta. To obtain city work, Jafari promised Macrina a lucrative job with PRAD Group and, directly or through a PRAD Group employee, gave Macrina $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, a luxury shopping trip in Dubai, and landscaping work at her home. Shortly after the City of Atlanta fired her, Macrina began working for Jafari and PRAD Group. Between June and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.
On April 8 and August 21, 2014, the FBI conducted two undercover operations using a confidential source (who at the time, was a high-ranking DeKalb County official). During two surreptitiously recorded meetings, the confidential source met with Jafari at local restaurants, where Jafari sought assistance from the confidential source to obtain work in DeKalb County. After the meetings, Jafari directed the confidential source to the bathroom of the restaurants where Jafari paid the confidential source cash payments of $1,000 and $1,500.
From 2014 to 2016, Jafari neither filed personal tax returns, nor paid any income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used money from the PRAD Group’s corporate accounts to pay for various personal expenses, including several luxury vehicles. Jafari evaded the payment of at least $1.5 million in taxes.
Lohrasb “Jeff” Jafari, 72, of Alpharetta, Georgia, was sentenced before U.S. District Judge Steve C. Jones to five years in prison, three years supervised release, a $300 special assessment, and $909,674 in restitution. In April 2023, Jafari pleaded guilty to one count each of conspiratorial bribery, substantive bribery, and tax evasion.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated the case.
Assistant U.S. Attorneys Jeffrey W. Davis and Nathan P. Kitchens, Trial Attorney Jolee Porter of the Justice Department’s Public Integrity Section, and Trial Attorney Todd Ellinwood of the Justice Department’s Tax Division prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.