Northern District of Georgia
Press releases recorded for this federal judicial district.
American man who sexually abused multiple Filipino girls sentenced to 50 yearsRead the Press Release
ATLANTA - Stephen Gordon Grimes has been sentenced for producing child pornography overseas and transporting the material to the United States. Over the course of three years, he recorded videos of his sexual abuse of girls as young as four years old.
“Grimes exploited poverty in the Philippines to gain access to multiple young girls,” said U.S. Attorney Ryan K. Buchanan. “He sexually abused these children for multiple years and recorded the crimes. His sentence rightly reflects the harm that he inflicted on these children.”
“I’m thankful for the successful resolution of and I’m happy that the victims can begin the healing process knowing that this predator will no longer be able to prey upon them,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners around the globe work tirelessly to protect the most vulnerable population and hold those who seek to prey upon them, accountable.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: around 2009, Grimes met two Filipino women in an online chat room. These women, who were sisters, agreed to arrange for Grimes to sexually exploit young girls in the Philippines, including the children of one of the women. Grimes worked as a civilian contractor on a Navy ship and often traveled to the Philippines at the end of each contract. He paid one of the women $500 a month to gain exclusive access to his child victims while he was in the Philippines.
Beginning no later than February 2016 and continuing until May 2019, Grimes used a GoPro device to record his sexual abuse of Filipino girls between the ages of four and 13 years. He also used a cell phone camera to record his sexual assault of the girls.
When Grimes traveled from South Korea to Hartsfield-Jackson International Airport in Atlanta on September 29, 2020, special agents with Homeland Security Investigations (HSI) confiscated his computers, cell phone and other electronic devices. A subsequent analysis of these items revealed that he had produced 340 videos and 650 images of his abuse of Filipino girls. The analysis of his computer also showed that he downloaded 523 videos and 4,470 images of child pornography from the internet.
Following Grimes’ arrest, HSI special agents undertook an operation that led to the rescue of the girls whom he had exploited and resulted in the local prosecution of the two women who conspired with Grimes.
Stephen Gordon Grimes, 51, of Lompoc, California, has been sentenced to 50 years in prison to be followed by a lifetime term of supervised release. Grimes was found guilty by a jury on April 7, 2023, of multiple counts of producing child pornography outside the United States, attempting to transport child pornography, and possessing child pornography. Parole does not exist in the federal prison system.
This case was investigated by Homeland Security Investigations.
Assistant U.S. Attorneys Paul R. Jones and Amy M. Palumbo 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.
Justice Department Announces Investigation into Conditions in Fulton County, Georgia JailRead the Press Release
The Justice Department announced today that it has opened a civil investigation into the conditions in the Fulton County Jail in Georgia.
Based on an extensive review of publicly available information and information gathered from stakeholders, the Department has found significant justification to open this investigation, including credible allegations that an incarcerated person died covered in insects and filth, that the Fulton County Jail is structurally unsafe, that prevalent violence has resulted in serious injuries and homicides, and that officers are being prosecuted for using excessive force.
The investigation thus will examine living conditions, medical and mental health care, use of excessive force, and protection from violence. The investigation will also examine whether Fulton County and the Fulton County Sheriff’s Office discriminate against persons with psychiatric disabilities inside the jail.
“People in prisons and jails are entitled to basic protections of their civil rights,” said Attorney General Merrick B. Garland. “We launched this investigation into the Fulton County Jail based on serious allegations of unsafe, unsanitary living conditions at the jail, excessive force and violence within the jail, discrimination against incarcerated individuals with mental health issues, and failure to provide adequate medical care to incarcerated individuals. During this comprehensive review of the conditions of confinement at the Fulton County Jail, the Justice Department will determine whether systemic violations of federal laws exist, and if so, how to correct them.”
“The unconstitutional conditions that we see too often inside jails and prisons have no place in society today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are launching this investigation to determine whether Fulton County’s treatment of people in the jail complies with constitutional standards. We are committed to ensuring jail and prison facilities provide constitutional conditions, in which all people can live safely and receive medical care. Incarceration should never include exposure to unconstitutional living conditions, including the risk of serious harm from violence.”
“All Georgians deserve fairness from the institutions that serve us, including our local jails,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The recent allegations of filthy housing teeming with insects, rampant violence resulting in death and injuries, and officers using excessive force are cause for grave concern and warrant a thorough investigation. This investigation is part of our ongoing efforts to ensure that citizens are safe, and their constitutional rights protected, even while they are in custody.”
Department officials have informed Fulton County officials and the Fulton County Sheriff of the investigation. They pledged to cooperate with the investigation.
The Department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Americans with Disabilities Act (ADA). Both statutes give the Department the authority to investigate systemic violations of the rights of people confined to correctional facilities. The Department’s work has led to important reforms to protect the rights of people in jails and prisons.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorney’s office in the Northern District of Georgia. Individuals with relevant information are encouraged to contact the Department via phone at (888) 473-4092 or by email at [email protected].
Additional information about the Civil Rights Division’s work regarding correctional facilities is available on its website at www.justice.gov/crt/rights-persons-confined-jails-and-prisons.
Department of Justice Announces Investigation into Conditions in Fulton County, Georgia JailRead the Press Release
ATLANTA - The U.S Attorney’s Office for the Northern District of Georgia and the Department of Justice announced that it has opened a civil investigation into the conditions in the Fulton County Jail in Georgia.
“People in prisons and jails are entitled to basic protections of their civil rights,” said Attorney General Merrick B. Garland. “We launched this investigation into the Fulton County Jail based on serious allegations of unsafe, unsanitary living conditions at the jail, excessive force and violence within the jail, discrimination against incarcerated individuals with mental health issues, and failure to provide adequate medical care to incarcerated individuals. During this comprehensive review of the conditions of confinement at the Fulton County Jail, the Justice Department will determine whether systemic violations of federal laws exist, and if so, how to correct them.”
“All Georgians deserve fairness from the institutions that serve us, including our local jails,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The recent allegations of filthy housing teeming with insects, rampant violence resulting in death and injuries, and officers using excessive force are cause for grave concern and warrant a thorough investigation. This investigation is part of our ongoing efforts to ensure that citizens are safe, and their constitutional rights protected, even while they are in custody.”
“The unconstitutional conditions that we see too often inside jails and prisons have no place in society today,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “We are launching this investigation to determine whether Fulton County’s treatment of people in the jail complies with constitutional standards. We are committed to ensuring jail and prison facilities provide constitutional conditions, in which all people can live safely and receive medical care. Incarceration should never include exposure to unconstitutional living conditions, including the risk of serious harm from violence.”
Based on an extensive review of publicly available information and information gathered from stakeholders, the Department has found significant justification to open this investigation, including credible allegations that an incarcerated person died covered in insects and filth; that the Fulton County Jail is structurally unsafe; that prevalent violence has resulted in serious injuries and homicides; and that officers are being prosecuted for using excessive force.
The investigation thus will examine living conditions, medical and mental health care, use of excessive force, and protection from violence. The investigation will also examine whether Fulton County and the Fulton County Sheriff’s Office discriminate against persons with psychiatric disabilities inside the Jail.
The Department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Americans with Disabilities Act (ADA). Both statutes give the department the authority to investigate systemic violations of the rights of people confined to correctional facilities. The department’s work has led to important reforms to protect the rights of people in jails and prisons.
Assistant U.S. Attorney’s Aileen Bell Hughes, Tiffany Dillingham, and Rebeca Ojeda of the Northern District of Georgia are conducting this investigation jointly with the DOJ Civil Rights Division’s Special Litigation Section. Individuals with relevant information are encouraged to contact the department via phone at (404) 581-4626 or by email at [email protected].
Additional information about the DOJ Civil Rights Division’s work regarding correctional facilities is available on its website at https://www.justice.gov/crt/rights-persons-confined-jails-and-prisons.
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.
Mastermind of $10 million Amazon fraud scheme sentenced to 16 years in federal prisonRead the Press Release
ATLANTA - Kayricka Wortham has been sentenced for stealing more than $9.4 million from Amazon.com while employed as a manager for the company. Seven individuals, including Wortham, have now been charged in connection with the scheme.
“The defendant abused her position of trust at Amazon to steal nearly $10 million from the company based on a brazen fraud scheme involving fake vendors and fictitious invoices,” said U.S. Attorney Ryan K. Buchanan. “She then committed new crimes while on bond, even creating a fake dismissal document purporting to be from the court and that included the forged signature of the Chief U.S. District Judge, all for the purpose of misleading a franchising company about the status of her criminal charges. Her prison sentence recognizes the magnitude of her fraud and serves to protect the integrity of our courts and justice system.”
“The Secret Service takes cases of fraud extremely seriously,” said Special Agent in Charge of the U.S. Secret Service’s Atlanta Field Office Steven R. Baisel. “This individual stole millions from a business that employed her – exploiting not only their trust, but our nation’s financial systems. Thanks to the hard work of our partners in the U.S. Attorney’s office, her sentence reflects the seriousness of her crimes and sends a message that this kind of fraudulent activity will not be tolerated.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Kayricka Wortham abused her position at Amazon to submit more than $10 million in fictitious invoices for fake vendors, causing Amazon to pay approximately $9.4 million to Wortham and her co-conspirators.
From about August 2020 to March 2022, Wortham worked as an Operations Manager at the Amazon Warehouse in Smyrna, Georgia. In her position, Wortham supervised others and acted with the authority to approve both new vendors and the payment of vendor invoices for Amazon.
Wortham, who was the leader of the scheme, provided fake vendor information to unknowing subordinates and asked them to input the information into Amazon’s vendor system. Once the information was entered, Wortham approved the fake vendors, enabling them to submit invoices. Wortham and co-conspirators then submitted fictitious invoices to Amazon, falsely representing that the vendors had provided goods and services to Amazon. Wortham approved the invoices, causing Amazon to transfer millions in fraudulent proceeds to bank accounts controlled by her and her co-conspirators.
Wortham conspired with others, including Brittany Hudson, in the scheme. Hudson was in a relationship with Wortham and owned a business, Legend Express LLC, that contracted with Amazon to deliver packages to customers. Hudson allegedly worked with Wortham to submit millions in fictitious invoices for fake vendors to Amazon. Wortham and Hudson purchased expensive real estate and luxury cars, including a nearly $1 million home in Smyrna, Georgia, a 2019 Lamborghini Urus, a 2021 Dodge Durango, a 2022 Tesla Model X, a 2018 Porsche Panamera, and a Kawasaki ZX636 motorcycle, all with fraudulent proceeds from the scheme.
Wortham also recruited co-conspirators Demetrius Hines, who was in Loss Prevention at Amazon, and Laquettia Blanchard, who worked as a Senior Human Resources Assistant at the company. Hines and Blanchard provided names and Social Security numbers to Wortham to create additional fake vendor accounts. Blanchard provided names of relatives and associates. Hines provided stolen personal identifying information that he purchased from JaQuan Frazier, who in turn allegedly purchased the information from Darrel J. Burgo, also known as “Fleet.” Hines and Blanchard were paid in fraudulent proceeds. Hines also recruited Jamar L. James, Sr., another Operations Manager at Amazon’s location in Duluth, Georgia, into the scheme. Like Wortham, James allegedly approved fake vendors and fictitious invoices, including after Wortham left Amazon in March 2022.
While on bond, Wortham and Hudson committed new criminal conduct that resulted in the revocation of their bonds. In January 2023, they were working with CRU Franchising Company to open a hookah lounge in Midtown Atlanta. During the due diligence to close the deal, CRU discovered and asked about the Amazon fraud charges against them. In response, Wortham and Hudson allegedly lied to CRU, claiming that their Amazon-related criminal charges were dismissed. The two then emailed fraudulent court documents to CRU that purported to show dismissal of the charges and contained forged signatures of Chief U.S. District Judge Timothy C. Batten, Sr. and forged seals and signatures of the Clerk of the Court. Hudson also allegedly emailed CRU doctored bank statements and personal financial statements that fraudulently inflated the balances in her accounts to support the franchise deal.
Kayricka Wortham, also known as “Kayricka Dupree” and “Kayricka Young,” 32, of Atlanta, Georgia, was sentenced by Chief U.S. District Judge Timothy C. Batten, Sr., to 16 years in prison to be followed by three years of supervised release and ordered to pay restitution to Amazon in the amount of $9,469,731.45. More than $2.7 million in fraudulent proceeds seized from multiple bank accounts, the residence in Smyrna, and the vehicles purchased with fraudulent proceeds were forfeited. Wortham was convicted of the Amazon fraud charges on November 30, 2022, after she pleaded guilty. She has been indicted for defrauding CRU and forging the signature of a federal judge and seal of the Court. Those charges remain pending.
On June 20, 2023, a federal grand jury indicted Brittany Hudson, 37, of Atlanta, Georgia, and Jamar L. James, Sr., 47, of Calera, Alabama, for conspiracy, wire fraud, and money laundering, and Hudson for forging the signature of a federal judge and seal of the Court. Darrel J. Burgo, 32, of Lawrenceville, Georgia, was charged in the same indictment with conspiracy, access device fraud, and aggravated identity theft. These charges are pending.
For their roles in the scheme, on November 30, 2022, Demetrius Hines pleaded guilty to wire fraud conspiracy; on June 27, 2023, Laquettia Blanchard pleaded guilty to wire fraud conspiracy; and on June 27, 2023, JaQuan Frazier pleaded guilty to misprision of a felony. Judge Batten will sentence these three defendants at a later date.
This case is being investigated by the U.S. Secret Service.
Assistant U.S. Attorneys Stephen H. McClain and Norman L. Barnett are prosecuting the cases.
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 hosts United Against Hate SummitRead the Press Release
The U.S. Attorney’s Office for the Northern District of Georgia partnered with the Chamblee Police Department to host the first of a series of community forums designed to educate the public about hate crimes and other civil rights enforcement tools to address hate crimes, hate incidents, and discrimination.
“Our most recent United Against Hate Summit was one of many ways our office seeks to combat hate crimes and incidents in our district,” said U.S. Attorney Ryan K. Buchanan. “We were honored to be joined by leaders from our community who work tirelessly to address hate incidents and discrimination who attended the summit and served as guest speakers. Like the summit participants, we encourage all citizens in our district to take a stand on hate and report these types of incidents to our office.”
The event, held on June 21, 2023, in Chamblee, Georgia, featured facilitated discussions with several members of the community including:
- Georgia State Representative Esther Panitch, who spoke about her experience as a Jewish woman who received antisemitic fliers at her home and her decision to report the incident.
- Japjee Singh, a young Sikh man who was harassed in school based on his religion and national origin. Following a complaint about the harassment from Singh’s Family and the Sikh Coalition, the U.S. Attorney’s Office and the Department of Justice reached a comprehensive agreement with DeKalb County School District that included, among other things, anti-harassment training and a safety plan to ensure Singh’s safety in the school.
- Brandon White, a gay man who spoke about being beaten and called slurs outside an Atlanta convenience store in 2012. His case resulted in criminal prosecution of his attackers by the U.S. Attorney’s Office and was one of the first successful prosecutions under the federal hate crimes statute based on sexual orientation.
- Gerald Bostock, one of the named plaintiffs in the landmark U.S. Supreme Court decision in Bostock v. Clayton County who spoke about his experience as a gay man who was fired based on his sexual orientation.
Presenters provided interactive video clips and engaged with the community to emphasize the importance of reporting hate crimes and incidents.
Members of the community also heard from community organizations including Disability Link, Georgia Equality, NAACP, ADL, Georgia Consumer Mental Health Network, and Raksha. These grass roots organizations discussed alternatives to DOJ enforcement by highlighting the work they do daily to combat discrimination and hate incidents.
The U.S. Attorney’s Office will host additional United Against Hate events in the coming months to engage with communities across the Northern District of Georgia. These events will encourage further collaboration, support hate crime prevention efforts, and encourage more citizens of our district to report hate crimes and acts.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.
CORRECTION: Please note that Raksha was spelled incorrectly in this release. That has been corrected in the body of this release.
Former Atlanta business-owner sentenced to prison for obtaining millions of dollars in COVID-19 relief fraud, tax identity theft and credit card fraudRead the Press Release
ATLANTA – Jose Fernandez has been sentenced for seeking over $5 million by submitting fraudulent Paycheck Protection Program (“PPP”) applications, filing false tax returns using stolen identities, using credit cards he obtained with stolen identities, and check fraud. He ultimately obtained more than $2 million in fraudulent funds, which he then used for his personal benefit.
“Fernandez committed a litany of frauds, including an attempt to steal millions of dollars from a COVID relief program, financial institutions, and the IRS by stealing the identities of innocent victims to file false tax returns,” said U.S. Attorney Ryan K. Buchanan. “His sentence reflects the scope of his criminal conduct.”
“Fernandez will have many years in prison to think about his long list of crimes and greed. He not only hurt business owners in need of the Covid relief funding, but even stole the identities of family members,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “With our law enforcement partners, we will continue to identify and hold accountable anyone who violates the law to siphon money from these programs into their own pockets.”
“People who commit PPP fraud and identity theft can expect to be held accountable just as Jose Fernandez has,” said Lisa Fontanette, acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “We will continue working with our law enforcement partners to bring to justice individuals who commit these types of crimes that financially harm honest law-abiding citizens and defrauds the U.S. Government.”
“This sentencing holds the defendant in this case accountable for seeking to fraudulently obtain millions of dollars from the Paycheck Protection Program, the IRS, and our Nation’s financial institutions,” said Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “The FDIC OIG remains committed to working with our law enforcement partners to investigate financial crimes and bringing to justice those who threaten to undermine the integrity our Nation’s financial system.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud taxpayer-funded Coronavirus Aid, Relief, and Economic Security Act programs, which were established to provide assistance to American business owners during unprecedented times,” stated Inspector General J. Russell George. “We appreciate the efforts of the U.S. Department of Justice and our law enforcement partners in ensuring individuals engaged in criminal activity are held to account.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: The Coronavirus Aid, Relief, and Economic Security Act (“CARES”) 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.
Fernandez operated multiple small businesses in the metro-Atlanta area from at least as early as 2016 through 2020. Fernandez submitted multiple PPP applications on behalf of several companies controlled by him or his associates that contained materially false information about the companies’ total number of employees, corporate expenses, and revenue. As a result of these false applications, he received over $1.6 million in fraudulent PPP funds. He then used these fraudulently obtained funds to make unauthorized expenditures, including purchases of a home, automobiles, and additional personal items.
Fernandez, who operated a tax preparation business for several years, also stole thousands of identities of his own clients, and of other individuals from a medical supply company, to file false tax returns claiming over $2 million in fraudulent refunds. The IRS was able to stop the vast majority of these funds from being issued to Fernandez.
In addition, Fernandez committed fraud against financial institutions. He obtained fraudulent credit cards in the names of family members and identity theft victims, which he then used to make hundreds of thousands of dollars in fraudulent purchases. Finally, Fernandez obtained blank check stock that was to be used to print tax refund checks for his tax preparation business clients. He used those checks to attempt to fraudulently write more than $900,000 worth of checks to businesses under his control and to pay personal expenses and debt.
Jose Fernandez, 36, of Winter Haven, Florida, has been sentenced to five years and ten months in prison to be followed by three years of supervised release. Fernandez was charged in a five-count criminal information on January 25, 2023, and pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and the Treasury Inspector General for Tax Administration. Also, the Gwinnett County Police Department provided substantial assistance in this investigation.
Assistant U.S. Attorneys Thomas J. Krepp and Tracia M. King 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.
Atlanta man indicted for allegedly distributing fentanyl that killed oneRead the Press Release
ATLANTA - Antonio Milner has been arraigned on federal charges of distributing fentanyl resulting in the death of another. Milner allegedly distributed fentanyl to a person who was found dead in a vehicle alongside I-75.
“Fentanyl is an extraordinarily dangerous substance and even the smallest quantity can be lethal,” said U.S. Attorney Ryan K. Buchanan. “The Department of Justice is committed to prosecuting these cases to combat this scourge plaguing our communities.”
“Fentanyl poisonings and other dangerous drugs are taking a terrible toll on our communities.” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration (DEA) Atlanta Division. “This drug trafficker will face the consequences of his actions.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On December 13, 2022, at approximately 8:00 a.m., the Stockbridge Police Department responded to a request for a welfare check at I-75 Southbound at mile marker 224. Upon arrival, officers located the victim deceased in the driver’s seat of a vehicle. The victim’s cause of death was determined to be fentanyl and morphine toxicity. The DEA traced the victim’s steps and established that Milner had allegedly distributed fentanyl to the victim just prior to her death.
Antonio Milner, 48, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Justin S. Anand. Milner was indicted by a federal grand jury on June 27, 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 Drug Enforcement Administration.
Assistant U.S. Attorney Amy M. Palumbo is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.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.
Federal correctional officer indicted on excessive force and obstruction chargesRead the Press Release
ATLANTA - Justin Newkirk has been arraigned on federal charges of using excessive force against an inmate at the U.S. Penitentiary in Atlanta (“USP-Atlanta”) and for writing a false incident report to justify his use of force.
“Correctional officers perform a particularly challenging and critical job in maintaining order and protecting inmates in our nation’s prisons and jails,” said U.S. Attorney Ryan K. Buchanan. “But this officer’s alleged misconduct of abusing an inmate and then writing a detailed false report to conceal the crime demands accountability.”
“Newkirk allegedly used excessive force and then lied to try to cover up his conduct. The Department of Justice Office of the Inspector General is committed to holding accountable those that abuse their power,” said James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: At the time of the alleged misconduct, Justin Newkirk was employed as a correctional officer at USP-Atlanta. On March 17, 2022, Newkirk allegedly sprayed an inmate with pepper spray repeatedly without any legal justification. Following the assault, Newkirk also allegedly wrote a report in which he falsely claimed that it was necessary for him to use pepper spray after the inmate lunged at him with a closed fist “showing imminent signs of violence.”
Justin Newkirk, 35, of Locust Grove, Georgia, was arraigned before U.S. Magistrate Judge Russell G. Vineyard. Newkirk was indicted by a federal grand jury on June 13, 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 is being investigated by the Department of Justice’s Office of Inspector General.
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 urgent care chain agrees to pay $1,600,000 to resolve False Claim Act allegationsRead the Press Release
ATLANTA - CRH Healthcare, LLC and Peachtree Immediate Care FP, LLC agreed to pay $1,600,000 to resolve allegations that they violated the False Claims Act (FCA) by submitting improperly upcoded Evaluation and Management claims to Medicare for the testing and treatment of patients with suspected exposure to COVID-19 during the Coronavirus pandemic.
“Health care professionals provided an invaluable service to the public during the Coronavirus pandemic. But medical practices that seek to misrepresent the services they provide to patients, and to improperly profit from such practices, must be held accountable,” said U.S. Attorney Ryan K. Buchanan. “The Department of Justice will work diligently to protect taxpayer dollars by ensuring that medical providers fairly and accurately bill federal health care programs.”
"When providers submit improper claims to Medicare, they waste valuable taxpayer dollars," said Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "Health care providers played a critical role in keeping our nation safe during the COVID-19 pandemic, and HHS-OIG is committed to protecting federal health care programs from fraud, waste, and abuse to ensure they can be used for their intended purposes."
“The FBI is thankful for the honesty of the whistleblowers who stepped forward to identify this alleged fraud,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners will continue to pursue reports of medical facilities filing false or misleading claims, choices that ultimately rob our citizens.”
The FCA is a federal law that imposes civil liability on any persons or entities who submit, or cause to be submitted, false claims for payment to the federal government or its contractors. It imposes treble damages (that is, three times the loss caused by the false claims) and a civil penalty between $13,508 to $27,018 per false claim. 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 civil settlement resolves lawsuits filed in the U.S. District Court for the Northern District of Georgia by former employees of CRH Healthcare, LLC, under the qui tam, or whistleblower provisions, of the FCA. Under the FCA, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The whistleblowers will share in $320,000 from the settlement in this matter.
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 civil settlement was reached by Assistant U.S. Attorney Andres H. Sandoval. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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.
Rome jury finds Dr. Charles Adams and full circle medical center liable for False Claims Act violationsRead the Press Release
ROME, Ga. – A federal jury found alternative medicine physician Charles C. Adams, M.D. and his practice group, Charles C. Adams, M.D., P.C. d/b/a Full Circle Medical Center (“Full Circle”), liable for violating the False Claims Act (“FCA”) by submitting false diagnoses to Medicare for chelation therapy reimbursements. Chelation therapy involves the use of drugs to remove heavy metals from the body.
“Healthcare providers who submit false claims to Medicare deplete the funds available to patients in critical need of covered medical procedures,” 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.”
“When providers submit false claims to Medicare, they take valuable, taxpayer-funded resources away from patients,” said Tamala E. Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work with our partners to hold accountable those who attempt to illegitimately profit off of federal health care programs.”
“Federal Medicare funds are much needed but limited. When those funds are diverted by fraudulent means, people suffer,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to work with our law enforcement partners to ensure these programs are not abused.”
According to U.S. Attorney Buchanan, the civil complaint, and other information presented in court: Adams and Full Circle operated a medical practice in Ringgold, Georgia. As a part of his internal medicine specialty, Adams used 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 because EDTA is a procedure only recognized by the Federal Drug Administration to treat lead poisoning and lead encephalopathy, Medicare did not cover the use of EDTA for these non-indicated symptoms. As a result, to receive payment for the procedures Dr. Adams falsely claimed to Medicare that his patients suffered from heavy metal poisoning.
In response, on August 27, 2018, the Government filed a civil complaint alleging that between November 2008 and September 2015, Adams and Full Circle engaged in a scheme involving the knowing submission of 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.
Charles C. Adams’s case proceeded to a jury trial in Rome, Georgia, on June 5, 2023, before presiding U.S. District Judge William M. Ray, II. On June 14, 2023, 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. These damages will be trebled under the FCA, which also requires a civil penalty to be imposed for each claim before the final verdict is entered. The exact amount of the judgment will not be known until the Court decides post-trial motions.
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.
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.
Lab Billing Company Settles False Claims Act Allegations Relating to Unnecessary Respiratory Panels Run on Seniors Receiving COVID-19 TestsRead the Press Release
VitalAxis Inc., a Maryland-based billing company for diagnostic laboratories, has agreed to pay $300,479.58 to resolve False Claims Act allegations that it caused the submission of false claims to Medicare for medically unnecessary respiratory pathogen panels run on seniors who received COVID-19 tests.
Throughout 2020, VitalAxis performed billing services for a diagnostic laboratory in Atlanta, Georgia that provided COVID-19 testing to residents of senior living communities. For one chain of communities, the laboratory directed VitalAxis to bill Medicare for respiratory pathogen panels purportedly ordered by a physician who had not actually ordered the tests and who was ineligible to treat Medicare beneficiaries. VitalAxis found the credentials of a different physician and, without authorization, billed Medicare using that physician’s name. Medicare subsequently paid the laboratory for these medically unnecessary tests.
“Federal health care programs only pay for items or services that are reasonable and medically necessary,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to pursue those who exploited the COVID-19 pandemic by billing the government for wasteful tests that nobody wanted or needed.”
“Unscrupulous companies that exploit the Medicare billing system divert important resources away from the program and abuse patient trust,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “This civil resolution confirms that our district is committed to protecting our federal programs from fraud and holding those accountable who knowingly waste taxpayer dollars.”
“When companies bill for medically unnecessary services, they waste valuable taxpayer dollars and undermine the integrity of federal health care programs,” said Special Agent in Charge Tamala Miles with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “As this settlement illustrates, HHS-OIG is committed to protecting the interests of the American taxpayer and holding health care providers accountable should they attempt to exploit the Medicare program.”
VitalAxis received a credit in connection with the settlement announced today in recognition of their cooperation, including by performing and disclosing the results of an internal investigation, disclosing relevant facts and material not known to the government but relevant to its investigation, providing information relevant to potential misconduct by other individuals and entities, and admitting liability.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Georgia, with assistance from the Department of Health and Human Services, Office of the Inspector General.
This matter was handled by Deputy Director Paul R. Perkins of the Civil Division, Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Mellori Lumpkin-Dawson and Civil Investigator Alena Evans of the U.S. Attorney’s Office for the Northern District of Georgia.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 actors committing civil and criminal fraud 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 www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also 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: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former federal correctional officer sentenced to prison for Paycheck Protection Program fraudRead the Press Release
ATLANTA - Harrescia Hopkins has been sentenced to five months in prison for fraudulently obtaining two Paycheck Protection Program loans while employed as a correctional officer by the Federal Bureau of Prisons. Hopkins obtained the loans in the name of a business that did not exist and used the money on a cruise and other vacations, as well as restaurants and a new SUV.
“While employed in a position of trust, Hopkins lied to steal emergency money intended for businesses suffering during the COVID-19 pandemic,” said U.S. Attorney Ryan K. Buchanan. “We will vigorously prosecute people who exploited these programs particularly when such fraud is committed by government employees and officials.”
“Hopkins’s fraud scheme took money earmarked for those who were legitimately struggling to make ends meet during the height of the COVID-19 pandemic, and she greedily used those funds for personal entertainment and luxury purchases. This sentencing should send a clear message to fraudsters everywhere: you will be brought to justice,” said James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.
“OIG will identify and bring to justice wrongdoers who sought personal gain by theft of taxpayers’ funds,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “I want to thank the U.S. Department of Justice 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: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in or about March 2020 that was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief that the CARES Act provided was the authorization of up to $349 billion in forgivable loans to small businesses for payroll, mortgage interest, rent/lease, and utilities through a program referred to as the Paycheck Protection Program (“PPP”). Congress has since authorized additional PPP funding.
Hopkins, while a Federal Bureau of Prisons correctional officer, applied for two PPP loans for $19,100 each in August 2020 and January 2021. The PPP loan applications were purportedly to help a business named Hopkins Towing and Storage, which she claimed had a gross income of $100,525 in 2019. In reality, Hopkins Towing and Storage was not a real and functioning business. Hopkins also obtained a $4,000 loan from the United States Small Business Administration’s COVID-19 Economic Injury Disaster Loan program.
Hopkins caused the loan proceeds to be deposited into her personal checking account. Hopkins then spent the money on personal expenses – including a Caribbean cruise and other travel, a new Chevrolet Blazer, landscaping for her house, restaurant meals, and retail goods.
Harrescia Hopkins, 34, of Conley, Georgia, was sentenced on June 8, 2023, by U.S. District Judge Sarah E. Geraghty to five months in prison to be followed by two years of supervised release. As part of her sentence, Hopkins was ordered to repay all three loans in full in the amount of $46,004.04. Hopkins pleaded guilty to wire fraud on December 20, 2022.
This case was investigated by the Department of Justice’s Office of Inspector General, and the Small Business Administration’s Office of Inspector General.
Assistant U.S. Attorney Garrett L. Bradford, Chief of the Public Integrity & Civil Rights Section, 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.
Drug trafficker returns to prison for committing PPP and other pandemic relief fraud while on supervised releaseRead the Press Release
ATLANTA - Ashford Richardson has been sentenced to two and a half additional years in prison for fraudulently obtaining a Paycheck Protection Program (“PPP”) loan and Economic Injury Disaster Loan (“EIDL”) shortly after being released from prison on federal drug trafficking charges. He was on supervised release and subject to monitoring by the U.S. Probation Office when he committed these new crimes.
“Richardson had been released from prison for only 10 months when he orchestrated a scheme to steal more than $50,000 of pandemic relief funds that were badly needed by small businesses to continue functioning and support their employees,” said U.S. Attorney Ryan K. Buchanan. “We will continue to utilize all the tools at our disposal to identify and hold accountable individuals who commit fraud.”
“Richardson has not learned the lesson that crime doesn’t pay, and his latest crime is evidence of that. Fortunately, his scheme to steal money intended to help people struggling during the COVID pandemic was caught and he is facing justice,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “This isn’t a victimless crime, every time a fraudster like this stole money, legitimate applicants were unable to get those funds to help themselves and their families.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In July 2013, Richardson was indicted by a federal grand jury for conspiring to distribute multiple kilograms of cocaine. After pleading guilty, he was sentenced to five years and three months in prison to be followed by four years of supervised release. In October 2019, he was released from Bureau of Prisons custody and began his term of supervised release.
In June 2020, Richardson applied for $43,400 from the EIDL program and, the following month, applied for a PPP loan of $14,635. In the applications, he claimed he owned a painting and carpentry business that had over $85,000 in revenue in 2019 but had lost more than $60,000 due to the COVID-19 disaster. Richardson also submitted a 2019 corporate tax return document to support the claimed revenue. However, those figures were false, and the tax return document was fake. The applications were ultimately approved due to his fraud, and Richardson immediately withdrew the funds in cash from his bank account. When he learned that the government was investigating him for these new crimes, he submitted more falsified documents in an effort to further conceal his crimes.
Ashford Leon Richardson, 44, of East Point, Georgia, admitted violating his terms of supervised release and committing wire fraud on June 13, 2023, and was sentenced by Senior U.S. District Judge Richard W. Story to two years and six months in prison to be followed by one additional year of supervised release. He was also ordered to repay $58,489.99 to the U.S. Small Business Administration.
This case is being investigated by Homeland Security Investigations.
Assistant U.S. Attorneys Garrett L. Bradford and Sarah E. Klapman are 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.
Metro Atlanta man sentenced for money laundering conspiracy involving COVID fraud proceedsRead the Press Release
ATLANTA - Oluwagbemiga Otufale has been sentenced for money laundering conspiracy involving fraudulent proceeds of multiple fraud schemes.
“Otufale attempted to take advantage of our country during a time of unprecedented crisis for the most vulnerable in our society,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to work tirelessly with our law enforcement partners to identify and prosecute individuals involved in COVID-19 relief fraud and those who launder the proceeds of that criminal activity.”
“So many individuals needed federal emergency assistance to stay afloat during the pandemic, and Otufale laundered millions of dollars of that assistance money, allowing fraudsters to enjoy their ill-gotten gains and lining his own pockets,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “His greed affects every American taxpayer, and the FBI will continue to hold accountable those who abused tax payer dollars and diverted them from citizens who desperately needed them.”
“Oluwagbemiga Otufale used fraudulent passports and other identity documents to open numerous bank accounts in the names of various shell companies. Otufale used the accounts to launder more than $2.6 million in illicit funds. Most of the laundered funds were the proceeds of fraudulent unemployment claims that were filed in multiple states, including Illinois, Massachusetts, and Washington. These fraudulent claims were filed using the personal identifiable information of unwitting individuals. We will continue to work with our law enforcement partners to safeguard the unemployment insurance system from those who seek to exploit the system,” 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: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act created a temporary federal program that provided up to 39 weeks of unemployment benefits for those unemployed as a result 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.
Otufale laundered money procured from fraudulent unemployment claims submitted to numerous state employment agencies, including those in the states of Washington, Illinois, and Massachusetts. These claims were filed using stolen personally identifiable information of more than 50 individuals. Otufale also laundered proceeds from a business email compromise scheme targeting two Georgia businesses.
Otufale created multiple aliases and sham business entities to open financial accounts in which he deposited the fraudulent proceeds and withdrew cash. In total, Otufale laundered approximately $2.6 million in fraud proceeds through at least six bank accounts.
Oluwagbemiga Otufale, also known as “Joseph Perrone,” “Kelvin Benjamin,” and “Abraham Young,” 45, of Atlanta, Georgia, was sentenced by U.S. District Judge Leigh Martin May to seven years in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $498,450. Otufale was convicted of the charge of money laundering conspiracy on December 7, 2022, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and U.S. Department of Labor, Office of Inspector General.
Assistant U.S. Attorneys Sarah E. Klapman and Tracia King 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.
14 defendants convicted and sentenced for trafficking over 600 kilograms of methamphetamineRead the Press Release
ATLANTA - Two Georgia Department of Corrections inmates, Carmelo Reyes-Lozano and Bautista Toledo-Ramirez, have been sentenced to federal prison for their roles in trafficking large quantities of methamphetamine.
“Keeping our citizens safe by combatting illegal distribution of dangerous drugs within and outside prisons is a top priority of this office,” said U.S. Attorney Ryan K. Buchanan. “These defendants and their 12 conspirators trafficked a staggering amount of illegal narcotics. Their prison sentences reflect the seriousness of their conduct and the grave danger posed to communities impacted by their drug trafficking.”
“Regardless of how sophisticated these criminal organizations think they are, they’re no match for the professionalism and dedication of the DEA,” said Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division. “This case brought 14 people to justice and cut off a significant supply chain for methamphetamine.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: During a federal wiretap investigation in the summer of 2019, the Drug Enforcement Administration (DEA) intercepted several inmates in Dooley State Prison and Washington State Prison using contraband cell phones to discuss narcotics deals. In response, the DEA in February through April 2020, extended the investigation and discovered that Carmelo Reyes-Lozano and Bautista Toledo-Ramirez served as leaders of a drug trafficking organization and were directing a series of drug transactions in the Atlanta area from their prison cells.
On February 15, 2020, agents intercepted communications between Reyes-Lozano and co-defendant Luis Carlos Vite-Garcia discussing a large drug shipment that arrived in the Atlanta area. Federal agents were then able to identify an address in Rex, Georgia being used as a “stash house” for narcotics. Agents searched the stash house pursuant to a warrant and discovered approximately 588 kilograms of methamphetamine (crystal and powder form), approximately 100 gallons of liquid methamphetamine in the process of being converted to a crystal form, a drug ledger, and a Mossberg 500 shotgun. Investigators saw siblings Hector Hugo Miranda-Fernandez (“Miranda”) and Jessie Miranda-Fernandez (“Fernandez”), who conspired with Reyes-Lozano and Toledo-Ramirez, at the residence and arrested Fernandez later that evening.
The next day, agents intercepted a conversation between Reyes-Lozano and Miranda, during which Miranda stated that he was fleeing to Mexico due to the DEA’s discovery of the stash house and his brother’s arrest. On February 20, 2020, agents learned that Miranda was in Texas and traveling to the border. That afternoon, officers with the Encinal Police Department in Texas located and arrested Miranda.
On February 28, 2020, the DEA intercepted another set of communications, this time between Toledo-Ramirez and co-defendant Delshawn Morrow. During the calls, the men discussed plans to smuggle methamphetamine into Washington State Prison. Utilizing intel from these intercepts, investigators arrested co-defendant Bertha Daniels the following day as she entered the prison with approximately 180 grams of methamphetamine hidden on her person. The investigation revealed a video recording of co-defendant Jhojana Pujol delivering the drugs to Daniels in a motel parking lot near the prison on behalf of Toledo-Ramirez.
On March 23, 2020, the DEA intercepted additional communications indicating that Toledo-Ramirez and Reyes-Lozano were coordinating a multi-kilogram methamphetamine deal with co-defendant Jason Lloyd Barnum using co-defendant Jean Pierre as an intermediary. Investigators learned that Pierre was a prolific marijuana trafficker who had supplied several of Toledo-Ramirez’s customers in the past. The following day, co-defendants Vite-Garcia, Carlos Andres-Vite, and Ramon Mora-Montalvo delivered approximately four kilograms of methamphetamine to Barnum. The drugs had been stored at Vite-Garcia’s stash house in Lawrenceville, Georgia. Barnum was arrested with those drugs after he traveled from Florida to the Atlanta area in a vehicle that Pierre owned.
On March 30, 2020, DEA agents intercepted more telephonic communications in which co-defendant Lourdes Ayala-Cruz called Reyes-Lozano to coordinate the purchase of a kilogram of methamphetamine for co-defendant Jose Paralta-Sanchez. Ayala-Cruz and Paralta-Sanchez drove from North Carolina to the Atlanta area to complete the deal. The transaction occurred on April 1, 2020, in the parking lot of a hardware store in Atlanta, and the drugs were delivered to Paralta-Sanchez by Mora-Montalvo. The Gaston County, North Carolina, Police Department arrested Ayala-Cruz with the drugs as she drove back to her home in North Carolina.
On April 6, 2020, investigators arrested Vite-Garcia, Andres-Vite, and Mora-Montalvo en route from Decatur, Georgia to the stash house in Lawrenceville with approximately 10 kilograms of methamphetamine. The DEA searched the Lawrenceville residence that day pursuant to a warrant. During the search, federal agents seized more methamphetamine, approximately two kilograms of heroin, a digital scale, two firearms, and over $22,000 in U.S. currency.
For his role in the conspiracy, Reyes-Lozano, 34, of Jalisco, Mexico, received a sentence imposed by U.S. District Judge Steven D. Grimberg of 17 years, six months in prison, followed by 10 years of supervised release. Reyes-Lozano was convicted on October 19, 2021, after he pleaded guilty.
Bautista-Toledo, 42, of Michoacán, Mexico, received a sentence of 23 years in prison, followed by 12 years of supervised release. Bautista-Toledo was convicted on August 10, 2022, after pleading guilty just days before his trial was set to begin. Reyes-Lozano’s and Bautista-Toledo’s federal sentences will run consecutive to the state prison sentences the men are already serving.
The defendants’ 12 conspirators previously entered guilty pleas for their roles in the drug trafficking conspiracy and received the following sentences imposed by Judge Grimberg:
- Hector Hugo Miranda-Fernandez, 36, of Jalisco, Mexico, was sentenced to eleven years and one month in prison, followed by five years of supervised release.
- Jessie Miranda-Fernandez, 23, of Atlanta, Georgia, was sentenced to four years and nine months in prison, followed by five years of supervised release.
- Luis Carlos Vite-Garcia, 39, of Reynoso, Mexico, was sentenced to 15 years and eight months in prison, followed by 10 years of supervised release.
- Ramon Mora-Montalvo, 29, of Reynoso, Mexico, was sentenced to three years and five months in prison, followed by five years of supervised release.
- Carlos Andres-Vite, 23, of Reynoso, Mexico, was sentenced to three years and 10 months in prison, followed by five years of supervised release.
- Jhojana Pujol, 26, of Boston, Massachusetts, was sentenced to time served in prison, followed by five years of supervised release.
- Delshawn Morrow, 45, of Thomasville, Georgia, was sentenced to 14 years in prison to run consecutive to any sentence he is currently serving, followed by four years of supervised release.
- Bertha Mae-Daniels, 47, of Thomasville, Georgia, was sentenced to 12 months and one day in prison, followed by five years of supervised release.
- Jason Lloyd Barnum, 42, of Irvington, New Jersey, was sentenced to 10 years and one month in prison, followed by five years of supervised release.
- Jose Paralta-Sanchez, 53, of Michoacán, Mexico, was sentenced to five years and 10 months in prison, followed by five years of supervised release.
- Lourdes Suyapa Ayala-Cruz, 44, of Choloma Cortez, Honduras, was sentenced to three years and one month in prison, followed by five years of supervised release.
- Jean Pierre, 46, of Irvington, New Jersey, was sentenced to three years and one month in prison, followed by five years of supervised release.
This case was investigated by the Drug Enforcement Administration, with assistance from the Georgia State Patrol, Gaston County, North Carolina, Police Department and Encinal, Texas, Police Department.
Assistant U.S. Attorneys Rebeca M. Ojeda and C. Brock Brockington, and former Assistant U.S. Attorneys Miguel R. Acosta and Scott McAfee, prosecuted the case.
This effort was 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.
Dozens sentenced for their roles in Atlanta-based fraud and money laundering operation that stole over $30 million from individuals and companiesRead the Press Release
ATLANTA – More than three dozen individuals have been sentenced for their involvement in a large-scale fraud and money laundering operation that targeted individuals, corporations, and financial institutions throughout the United States. The defendants used business email compromise schemes, romance fraud scams, and retirement account scams, among other frauds, to steal more than $30 million from numerous victims.
“The Department of Justice has tirelessly worked for more than four years to obtain justice for dozens of victims impacted by this brazen criminal organization,” said U.S. Attorney Ryan K. Buchanan. “The defendants’ sentences should serve as a stark warning to others that fraud and money laundering crimes are top priorities for this office and our federal, state, and local law enforcement partners.”
“Several members of this conspiracy fraudulently obtained funds from ERISA-covered employee benefit plans. The funds, which originated from unwitting individuals’ retirement accounts, were deposited into personal and business bank accounts that were created in furtherance of this money-laundering conspiracy. The greed of the conspirators caused workers and prospective retirees to lose significant portions of their hard-earned retirement funds. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Employee Benefits Security Administration to protect the integrity of employee benefit plans,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.
“These fraud scams, although not violent, are not victimless and can be devastating to businesses and individuals who fall prey to them,” said Keri Fairly, Special Agent in Charge of FBI Atlanta. “The sentencing of all these individuals shows the FBI’s dedication to working with our partners to hold anyone accountable who would steal from hard working and honest individuals, rather than put in the work themselves.”
“These scammers defrauded individuals and companies with the sole purpose of enriching themselves,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners will continue to work tirelessly to protect the integrity of the nation’s financial infrastructure and ensure that financial crimes do not go unpunished.”
“This sentencing illustrates the Secret Service’s dedication to protecting our nation’s financial systems,” said Steven R. Baisel, Special Agent in Charge of the U.S. Secret Service’s Atlanta Field Office. “We are thankful for our law enforcement partners’ commitment and support as we worked together to bring this case to justice.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: The defendants engaged in multiple fraud and money laundering conspiracies that stole millions of dollars from victims located throughout the United States and abroad. The defendants were charged across several related pending cases.
U.S. District Judge William M. Ray, II, sentenced the following individuals for their respective roles in this criminal scheme:
- Joshua Roberts, also known as “Onyx,” 32, of Houston, Texas, was sentenced to eight years and one month in custody, to be followed by three years of supervised release, and ordered to pay $9,675,739.73 in restitution to victims. He was sentenced on August 10, 2022, after pleading guilty to conspiracy to commit money laundering on March 29, 2022.
- Darius Sowah Okang, also known as “Michael J. Casey,” “Richard Resser,” “Thomas Vaden,” “Michael Lawson,” “Matthew Reddington,” and “Michael Little,” 32, of Stone Mountain, Georgia, was sentenced to seven years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $6,204,119 in restitution to victims. He was sentenced on March 17, 2022, after pleading guilty to conspiracy to commit money laundering and aggravated identity theft on September 2, 2021.
- George Kodjo Edem Adatsi, 39, of Atlanta, Georgia, was sentenced to five years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $3,373,797.43 in restitution to victims. He was sentenced on July 21, 2021, after pleading guilty to conspiracy to commit money laundering on April 7, 2021.
- Benjamin Ibukunoluwa Oye, 29, of Sandy Springs, Georgia, was sentenced to five years in custody, to be followed by three years of supervised release, and ordered to pay $1,163,127.01 in restitution to victims. He was sentenced on March 21, 2023, after pleading guilty to conspiracy to commit bank fraud, aggravated identity theft, conspiracy to commit money laundering, and money laundering on March 4, 2020.
- Prince Sheriff Okai, 29, of Mableton, Georgia, was sentenced to four years and nine months in custody, to be followed by three years of supervised release, and ordered to pay $4,950,586.54 in restitution to victims. He was sentenced on January 12, 2021, after pleading guilty to conspiracy to commit money laundering on October 6, 2020.
- Hamza Abdallah, also known as “Reggie Lewis,” 33, of McDonough, Georgia, was sentenced to four years and nine months in custody, to be followed by three years of supervised release, and ordered to pay $5,051,473.87 in restitution to victims. He was sentenced on February 24, 2021, after pleading guilty to conspiracy to commit money laundering on November 18, 2020.
- Dominique Raquel Golden, also known as “Desire Tamakloe,” “Mellissa Moore,” “Nicole Nolay,” “Raquel Roberts,” “Maria Henderson,” and “Raquel Golden,” 32, of Houston, Texas, was sentenced to four years and six months in custody, to be followed by three years of supervised release, and ordered to pay $7,830,607.05 in restitution to victims. She was sentenced on March 28, 2022, after pleading guilty to conspiracy to commit money laundering on September 30, 2021.
- Kelvin Prince Boateng, 27, of Atlanta, Georgia, was sentenced to three years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $870,333 in restitution to victims. He was sentenced on June 17, 2021, after pleading guilty to conspiracy to commit money laundering on March 2, 2021.
- Jonathan Kojo Agbemafle, also known as “Skinny,” 29, of Kansas City, Missouri, was sentenced to three years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $2,637,625.01 in restitution to victims. He was sentenced on August 8, 2022, after pleading guilty to conspiracy to commit money laundering on April 4, 2022.
- Blessing Oluwatimilehin Ojo, also known as “Timmy,” 37, of Nigeria, was sentenced to three years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $1,711,304 in restitution to victims. He was sentenced on October 26, 2022, after pleading guilty to conspiracy to commit money laundering on July 19, 2022.
- Desire Elorm Tamakloe, also known as “Chubby,” 28, of Smyrna, Georgia, was sentenced to three years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $1,215,357.81 in restitution to victims. He was sentenced on April 18, 2023, after pleading guilty to conspiracy to commit money laundering on October 13, 2022.
- Stephen Abbu Jenkins, also known as “Face,” “Steven Abbu Jenkins,” “Steven Jenkins,” and “Steve Jenkins,” 56, of Atlanta, Georgia, was sentenced to three years and seven months in custody, to be followed by three years of supervised release, and ordered to pay $726,290 in restitution to victims. He was sentenced on February 22, 2023, after pleading guilty to conspiracy to commit money laundering on August 8, 2022.
- Obinna Nwosu, 29, of Douglasville, Georgia, was sentenced to three years and one month in custody, to be followed by three years of supervised release, and ordered to pay $1,045,065.75 in restitution to victims. He was sentenced on December 16, 2020, after pleading guilty to conspiracy to commit money laundering on September 17, 2020.
- Ojebe Obewu Ojebe, 30, of Atlanta, Georgia, was sentenced to three years and one month in custody, to be followed by three years of supervised release, and ordered to pay $893,879.55 in restitution to victims. He was sentenced on September 27, 2022, after pleading guilty to conspiracy to commit money laundering on June 2, 2022.
- Francesco Benjamin, also known as “B-More,” 33, of Atlanta, Georgia, was sentenced to three years and one month in custody, to be followed by three years of supervised release, and ordered to pay $987,070 in restitution to victims. He was sentenced on March 1, 2023, after pleading guilty to conspiracy to commit money laundering on October 19, 2022.
- Chukwukadibia Ikechukwu Nnadozie, also known as “Chuka” and “Michael McCord,” 30, of Fayetteville, Georgia, was sentenced to three years and one month in custody, to be followed by three years of supervised release, and ordered to pay $231,507.19 in restitution to victims. He was sentenced on May 9, 2023, after pleading guilty to conspiracy to commit money laundering on November 28, 2022.
- Abubakar Sadik Ibrahim, 29, of Mableton, Georgia, was sentenced to three years in custody, to be followed by three years of supervised release, and ordered to pay $1,193,750.27 in restitution to victims. He was sentenced on February 1, 2022, after pleading guilty to conspiracy to commit money laundering on September 27, 2021.
- John Ifeoluwa Onimole, 31, of Powder Springs, Georgia, was sentenced to three years in custody, to be followed by three years of supervised release, and ordered to pay $1,117,966.06 in restitution to victims. He was sentenced on April 25, 2023, after pleading guilty to money laundering on December 7, 2022.
- Chadrick Jamal Rhodes, 31, of Atlanta, Georgia, was sentenced to two years and 11 months in custody, to be followed by three years of supervised release, and ordered to pay $120,000 in restitution to victims. He was sentenced on January 31, 2022, after pleading guilty to conspiracy to commit bank fraud and aggravated identity theft on October 12, 2021.
- Chadwick Osbourne Stewart, 43, of Atlanta, Georgia, was sentenced to two years and eight months in custody, to be followed by three years of supervised release, and ordered to pay $60,000 in restitution to victims. He was sentenced on January 26, 2022, after pleading guilty to conspiracy to commit bank fraud and aggravated identity theft on October 22, 2021.
- Macario Lee Nelson, a/k/a “Mac,” 27, of Atlanta, Georgia, was sentenced to two years and eight months in custody, to be followed by three years of supervised release, and ordered to pay $120,000 in restitution to victims. He was sentenced on February 17, 2022, after pleading guilty to conspiracy to commit bank fraud and aggravated identity theft on September 29, 2021.
- Afeez Olaide Adeniran, a/k/a “Ola,” 34, of Atlanta, Georgia, was sentenced to two years and six months in custody, to be followed by three years of supervised release, and ordered to pay $352,830.25 in restitution to victims. He was sentenced on October 6, 2022, after pleading guilty to conspiracy to commit money laundering on August 18, 2022.
- Kahlia Andrea Siddiqui, 31, of Chamblee, Georgia, was sentenced to two years and six months in custody, to be followed by three years of supervised release, and ordered to pay $325,811 in restitution to victims. She was sentenced on February 22, 2023, after pleading guilty to conspiracy to commit money laundering on August 9, 2022.
- Solomon Agyapong, also known as “Gumpe,” 34, of Marietta, Georgia, was sentenced to two years and six months in custody, to be followed by three years of supervised release, and ordered to pay $496,123.92 in restitution to victims. He was sentenced on April 18, 2023, after pleading guilty to conspiracy to commit money laundering on October 11, 2022.
- Christopher Akinwande Awonuga, 31, of Fayetteville, Georgia, was sentenced to two years and three months in custody, to be followed by three years of supervised release, and ordered to pay $113,276.27 in restitution to victims. He was sentenced on January 8, 2020, after pleading guilty to conspiracy to commit bank fraud on August 22, 2019.
- Emanuela Joe Joseph, 37, of Lawrenceville, Georgia, was sentenced to two years and three months in custody, to be followed by three years of supervised release, and ordered to pay $442,557.08 in restitution to victims. She was sentenced on February 21, 2023, after pleading guilty to conspiracy to commit money laundering on October 26, 2022.
- Seth Appiah Kubi, 63, of Dacula, Georgia, was sentenced to two years in custody, to be followed by one year of supervised release. He was sentenced on July 7, 2020, after pleading guilty to aggravated identity theft on March 4, 2020.
- Oluwafunmilade Onamuti, also known as “Mathew Kelvin,” 29, of Duluth, Georgia, was sentenced to one year and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $167,195 in restitution to victims. He was sentenced on July 21, 2021, after pleading guilty to conspiracy to commit money laundering on April 7, 2021.
- Paul Chinonso Anyanwu, 31, of Hampton, Georgia, was sentenced to one year and six months in custody, to be followed by three years of supervised release, and ordered to pay $57,000 in restitution to victims. He was sentenced on December 19, 2019, after pleading guilty to conspiracy to commit money laundering on September 18, 2019.
- Casey Broderick Williams, 29, of Covington, Georgia, was sentenced to one year and one day in custody, to be followed by three years of supervised release, and ordered to pay $60,000 in restitution to victims. He was sentenced on June 2, 2022, after pleading guilty to conspiracy to commit bank fraud and aggravated identity theft on July 30, 2019.
- Alexus Ciera Johnson, 29, of Mableton, Georgia, was sentenced to one year and one day in custody, to be followed by three years of supervised release, and ordered to pay $106,879 in restitution to victims. She was sentenced on May 22, 2023, after pleading guilty to conspiracy to commit money laundering on October 11, 2022.
- Egale Veonzell Woods, Jr., 44, of East Point, Georgia, was sentenced to one year in custody, to be followed by three years of supervised release, and ordered to pay $165,007.19 in restitution to victims. He was sentenced on April 21, 2021, after pleading guilty to conspiracy to commit money laundering on March 4, 2020.
- Gregory Thomas Hudson, 42, of Powder Springs, Georgia, was sentenced to 10 months in custody, to be followed by 10 years of supervised release, and ordered to pay $125,291.45 in restitution to victims. He was sentenced on June 27, 2022, after pleading guilty to conspiracy to commit bank fraud on March 14, 2022.
- Uchechi Chidimma Odus, also known as “Uche,” 26, of Atlanta, Georgia, was sentenced to 10 months in custody, to be followed by three years of supervised release, and ordered to pay $83,345.47 in restitution to victims. She was sentenced on May 17, 2023, after pleading guilty to conspiracy to commit money laundering on December 21, 2022.
- Matthan Bolaji Ibidapo, also known as “B.J.,” 30, of Colorado Springs, Colorado, was sentenced to eight months in custody, to be followed by three years of supervised release with a portion to be served in home confinement and ordered to pay $82,490.50 in restitution to victims. He was sentenced on February 21, 2023, after pleading guilty to conspiracy to commit money laundering on November 1, 2022.
- Tyler Keon Roussell, 28, of Atlanta, Georgia, was sentenced to six months in custody, to be followed by six years of supervised release with a portion served in home confinement, and ordered to pay $368,400.49 in restitution to victims. He was sentenced on February 21, 2022, after pleading guilty to conspiracy to commit bank fraud on May 16, 2019.
- Monique Wheeler, 32, of Atlanta, Georgia, was sentenced to three months in custody, to be followed by three years of supervised release with a portion to be served in home confinement, and ordered to pay $71,010 in restitution to victims. She was sentenced on December 2, 2022, after pleading guilty to money laundering on July 13, 2022.
- Chineda Obilom Nwakudu, 28, of McDonough, Georgia, was sentenced to three years of probation with a portion to be served in home confinement and ordered to pay $123,645.85 in restitution to victims. He was sentenced on February 22, 2023, after pleading guilty to conspiracy to commit money laundering on August 23, 2019.
- Ahamefule Aso Odus, 30, of Atlanta, Georgia, was convicted by a jury on January 30, 2023, of conspiracy to commit money laundering and multiple substantive money laundering offenses. His sentencing is pending.
- Motswana Mulongo, also known as “David Mulongo” and “Henry Tipton,” 38, of Decatur, Georgia, was convicted of conspiracy to commit money laundering on March 10, 2023. His sentencing is scheduled for June 22, 2023.
- Oumar Bouyo Mbodj of Kennesaw, Georgia, is deceased, and charges filed against him were dismissed.
This investigation was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) program—the keystone drug, money laundering, and transnational organized crime enforcement program of the Department of Justice.
This case was investigated by the Department of Labor, Office of Inspector General, Federal Bureau of Investigation, U.S. Secret Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The investigating agencies received considerable support from the Department of Labor, Employee Benefits Security Administration, and numerous federal, state, and local law enforcement authorities.
Assistant U.S. Attorneys Kelly K. Connors and Russell Phillips 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.
Woodstock pain management doctor and clinics pay $625,000 to resolve false claims act allegationsRead the Press Release
ATLANTA – James Ellner, M.D., and his Woodstock, Georgia pain management practice, Georgia Pain Management, P.C., and ambulatory surgical center, Samson Pain Center, P.C, agreed to pay $625,000 to resolve allegations that they violated the False Claims Act (FCA) by submitting improper claims to the Medicare and TRICARE programs for evaluation and management services and medically unnecessary urine drug screening tests.
“The federal government expects that physicians and their practices will properly bill Medicare and TRICARE for services they provide,” said U.S. Attorney Ryan K. Buchanan. “The Department of Justice will work diligently to hold healthcare providers accountable when they break the rules and overbill federal healthcare programs.”
“Health care fraud abuse like this case erodes the trust patients have in the health care system,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Government subsidized programs like Medicare help protect the healthcare needs of deserving Americans and the FBI is determined to work with our partners to prevent people from illegally profiting off of them."
“When providers submit improper claims, they threaten the integrity of taxpayer-funded health care programs and take those valuable resources away from their intended recipients,” said Tamala Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is committed to protecting federal health care programs from fraudulent and wasteful practices at the hands of providers.”
The FCA is a federal law that imposes civil liability on any persons or entities who submit, or cause to be submitted, false claims for payment on the federal government or its contractors. It imposes treble damages (that is, three times the loss caused by the false claims) and a civil penalty between $12,537 to $25,076 per false claim. The FCA is the primary authority used by the Civil Division of the United States Attorney’s Office to redress fraud, waste, and abuse within federal programs, including, but not limited to, Medicare and TRICARE.
The United States alleges that between May 1, 2015, and December 31, 2019, James Ellner and Georgia Pain Management, P.C. (Georgia Pain) submitted false claims to the Medicare and TRICARE programs for evaluation and management (E&M) services that were not reimbursable under federal health care programs. Medicare generally prohibits healthcare providers from separately billing for E&M services provided on the same day as another medical procedure, unless the E&M services are significant, separately identifiable, and above and beyond the usual preoperative and postoperative care associated with the medical procedure. If an E&M service satisfies these criteria, the provider can use a billing code known as “Modifier 25” to bill for the significant and separately identifiable E&M services. In this case, the United States alleges that Georgia Pain used Modifier 25 to improperly unbundle routine E&M services that were not separately billable from other minor surgical procedures performed on the same day; and as a result, Georgia Pain claimed reimbursement from Medicare and TRICARE that it was not due.
The United States also alleges that Ellner and Georgia Pain entered into an arrangement that violated the Anti-Kickback Statute, whereby a reference laboratory paid the salary of an individual who functioned as a free employee of Georgia Pain in exchange for Ellner’s referral of urine drug tests – many of which were medically unnecessary.
The civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by a former employee for Georgia Pain, under the qui tam, or whistleblower provisions, of the FCA. United States ex rel. Amy Tyson v. Georgia Pain Management, P.C., Samson Pain Center, P.C., and James Ellner, M.D., Civil Action 1:18-cv-5520. Under the FCA, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The whistleblower will receive $118,000 from the settlement.
The civil settlement was reached by Assistant U.S. Attorney Mellori Lumpkin-Dawson. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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 Clayton County men sentenced to prison after discharging machinegun at federal agentsRead the Press Release
ATLANTA - Anthony Maseda and Erik Arreola-Torres have been sentenced for their roles in a scheme to convert semi-automatic firearms into machineguns and sell the fully automatic firearms out of a Clayton County, Georgia, residence. Arreola-Torres fired at federal special agents and local law enforcement officers using a fully automatic machinegun when the investigators arrived at the home to execute a search warrant.
“Maseda and Arreola-Torres jeopardized the lives of multiple law enforcement officers and community residents during an investigation by law enforcement officers of the defendants’ machinegun trafficking scheme,” said U.S. Attorney Ryan K. Buchanan. “This office and its law enforcement partners will identify, target, and prosecute those individuals who threaten the safety of our communities by creating and selling automatic firearms. We commend the work of our dedicated agency partners in this case and are grateful no one was injured during this violent incident.”
“Because of the combined efforts of ATF and its law enforcement partners, criminal elements have been surgically removed from the community of Clayton County and placed where they belong: into the criminal justice system to be processed and prosecuted for illegal gun activity,” said Alisha Jones, Assistant Special Agent in Charge of ATF’s Atlanta Field Division.
“This investigation re-affirms the importance of our agency’s collaboration with our federal partners. The arrests resulting from this joint investigation with the ATF surely saved lives in Clayton County and likely in the metropolitan region. The Clayton County Police Department will continue to partner with our Federal and State law enforcement agencies to reduce violent crimes in our community,” said Clayton County Police Chief Kevin Roberts.
According to U.S. Attorney Buchanan, the charges and other information presented in court: From January through March of 2022, Anthony Maseda and Erik Arreola-Torres conducted a firearm and machinegun trafficking operation out of a home in Jonesboro, Georgia. Maseda, a previously convicted felon, and leader of the operation, illegally imported auto sear devices, also known as “switches”, from China. Possessing an auto sear is a felony offense under federal law, even when the device is not installed in a firearm.
Using auto sears, Maseda converted numerous firearms into fully automatic machineguns and then advertised the sale of machineguns, auto sears, and semi-automatic firearms on his public Instagram page. Federal special agents obtained a warrant to search the Jonesboro residence after Maseda and Arreola-Torres sold a machinegun, a semi-automatic firearm, and multiple switches to an undercover informant at the home.
On the morning of March 3, 2022, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Clayton County Police Department, executed the search warrant at the Jonesboro house. As law enforcement officers stood outside the home, Arreola-Torres picked up a machinegun and fired towards agents and officers from inside the residence, unloading dozens of rounds in the investigators’ direction. Fortunately, no one was hit or injured.
After securing the scene and taking Maseda and Arreola-Torres into custody, agents located within the residence six fully automatic machineguns, four additional auto sears, five additional firearms, numerous firearm parts and magazines, ammunition, bullet proof body armor, and distribution quantities of marijuana and digital scales. One of the firearms had an obliterated serial number.
Erik Arreola-Torres, 20, of Jonesboro, Georgia, was sentenced on May 7, 2023, by U.S. District Judge Steven D. Grimberg to ten years and one month in prison to be followed by three years of supervised release. He pleaded guilty to possession of a machinegun and conspiracy to engage in the business of dealing in firearms without a license on October 17, 2022.
Anthony Maseda, 21, of Jonesboro, Georgia, was also sentenced by Judge Grimberg to nine years in prison to be followed by three years of supervised release. He pleaded guilty to possession of a machinegun on October 13, 2022.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clayton County Police Department.
Assistant U.S. Attorney Annalise K. Peters 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.
Former chief scientist for GTRI pleads guilty to 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 pleaded guilty to conspiring to defraud Georgia Tech and the Central Intelligence Agency (CIA). Maloney’s conspirators, James J. Acree and James D. Fraley, III, pleaded guilty to the same charge in 2016.
“These defendants violated the trust placed in them by Georgia Tech and the CIA in allowing their judgment to be clouded by greed,” said U.S. Attorney Ryan K. Buchanan. “The seven-year delay in resolving Maloney’s case resulted from Maloney’s ploy to evade criminal liability by threatening to reveal classified information during the course of his trial in a failed attempt to force the government to dismiss the case. But as Maloney discovered, the government will not be bullied or threatened by a criminal defendant.”
“Maloney’s guilty plea 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 sentenced 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. They 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 supposed to use his PCard only 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, Maloney, Acree, and Fraley charged approximately $200,000 in personal expenses on Fraley’s PCard, including, two four-wheelers and a trailer, two Sony 52-inch flat-screen televisions, Apple computers, iPads, OtterBox protective cases, iPods, Kindle E-readers, Leica and Nikon digital cameras, video cameras, a mini micro pinhole video camcorder pen, a night vision monocular, two pairs of binoculars, Bose headphones, a 3D printer, sports watches with heart-rate monitors, sunglasses, materials used to perform private consulting contracts, computer monitors and solar panels for a private hunting club, a personal video network for home use, and an uninterruptible power supply for a tennis ball machine. Maloney and Fraley also used Fraley’s PCard to pay for remodeling and maintenance expenses related to six rental properties 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 charged to a classified GTRI contract that was 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 it 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 “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 competing and billing for, and performing, 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 benefit; and used Georgia Tech facilities and equipment for their personal gain and 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 our 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 “weave a story around” a fictitious set of facts designed 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, 57, of Marietta, Georgia, pleaded guilty on May 22, 2023, to conspiracy to commit mail and wire fraud. Sentencing for all three defendants will be scheduled at a later date, before Senior U.S. District Judge Richard W. Story.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys 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 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 Georgians indicted for pandemic-related fraudRead the Press Release
ATLANTA – A federal grand jury has indicted individuals in two separate cases for fraud related to the COVID-19 pandemic. Kenneth Wilkerson was indicted for his fraudulent acquisition of several Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) for small businesses as well as his illegal possession of multiple firearms. Jeremy Graves was indicted for filing multiple fraudulent applications for unemployment insurance benefits using victims’ stolen personal identifying information.
“While communities suffered from the effects of the pandemic, the federal government worked to help small businesses and individuals avoid catastrophic economic disaster through the CARES Act,” said U.S. Attorney Ryan K. Buchanan. “We will continue to investigate and prosecute those who illegally obtained these loans and work diligently to recover these funds intended to support struggling business owners and families.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division stated, “No matter how much Wilkerson tried to conceal his money laundering activities behind Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds, this was a drug trafficking operation, generating hundreds of thousands of dollars in illicit proceeds.”
“The defendant allegedly chose to illegally possess firearms,” said Alisha Jones, Assistant Special Agent in Charge of ATF’s Atlanta Field Division. “We will continue to pursue those who seek to circumvent the law.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs. We will continue to work with our law enforcement partners to aggressively investigate these types of allegations,” 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 indictments, and other information presented in court: Kenneth Wilkerson allegedly submitted at least nine loan applications to financial institutions, authorized lenders, and the Small Business Administration that contained fraudulent information regarding gross revenues and fake employees at his various companies. He also allegedly submitted fraudulent tax forms and bank statements to support his loan applications. Wilkerson allegedly received more than $383,000 from Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) that he failed to spend on authorized business purposes.
Jeremy Graves allegedly used stolen identification documents to apply for and obtain unemployment insurance (UI) benefits – a program that was expanded during the COVID-19 pandemic with CARES Act funds, in multiple states, including Georgia, California, Maryland, and Nevada. In his applications, Graves listed various addresses, including his own, as the applicant’s mailing address. Debit cards loaded with UI benefits were then mailed to those addresses. Graves allegedly called the bank associated with the debit cards to activate the cards, request new cards, and make other inquiries. The individuals whose identities were stolen and used to apply for the UI benefits did not apply, or give anyone permission to apply, for UI benefits on their behalf. Graves allegedly received over $230,000 in UI benefits to which he was not entitled.
Kenneth Wilkerson, 39, of Atlanta, Georgia, was charged in a 16-count superseding indictment with two counts of possession of a firearm by a convicted felon, two counts of bank fraud, eleven counts of wire fraud, and one count of money laundering. Wilkerson allegedly submitted fraudulent applications seeking more than $800,000 in PPP and EIDL funds for various, seemingly defunct businesses.
Jeremy Graves, 38, of Atlanta, Georgia, was charged in a 26-count indictment with 11 counts of wire fraud, eight counts of aggravated identity theft, and seven counts of theft of government funds. Graves allegedly applied for and obtained UI benefits in multiple states using stolen identities.
Members of the public are reminded that the indictment only contains 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.
The Kenneth Wilkerson case is being investigated by the Internal Revenue Service Criminal Investigation, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Jeremy Graves case is being investigated by the Department of Labor – Office of Inspector General.
Assistant U.S. Attorneys Rebeca M. Ojeda and Mary Webb are prosecuting Kenneth Wilkerson. Special Assistant U.S. Attorney Diane C. Schulman is prosecuting Jeremy Graves.
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.
Fentanyl distributor sentenced to prisonRead the Press Release
GAINESVILLE, Ga. - Jamerris Head has been sentenced to 12 years for selling fentanyl after pleading guilty to distribution of a controlled substance on July 13, 2022.
“Fentanyl has claimed too many lives, especially from our youth,” said U.S. Attorney Ryan K. Buchanan. “We are grateful to our law enforcement partners for working hard to prevent this deadly drug from claiming more lives in accidental overdoses.”
“Fentanyl poisonings have taken a terrible toll on our communities.” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “This criminal must now face the consequences of his actions.”
“Fentanyl is a dangerous and highly toxic drug that has wreaked havoc in far too many communities. Disrupting the manufacturers and distributers of this poison remains a high priority for the GBI’s drug enforcement offices,” said Mike Register, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between April and August of 2021, Jamerris Head sold multiple ounces of fentanyl on several occasions during controlled purchases by law enforcement. At the time of his arrest, agents seized approximately one kilogram of fentanyl, in both pill and powder form, and two firearms.
Jamerris Head, 39, of Buford, Georgia, was sentenced to 12 years in prison to be followed by five years of supervised release.
This case was investigated by the Drug Enforcement Administration and the Georgia Bureau of Investigation’s Appalachian Regional Drug Enforcement Office.
Assistant U.S. Attorney Jennifer Keen prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.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.
Appraiser in Billion-Dollar Conservation Easement Fraud Scheme Pleads GuiltyRead the Press Release
A North Carolina land appraiser pleaded guilty today to conspiring to defraud the United States as part of a syndicated conservation easement tax shelter scheme – involving inflated charitable contribution deductions based on a fraudulent appraisal value of a conservation easement on land – 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 Shelby, North Carolina, conspired with others to defraud the United States by fraudulently inflating the value of the conservation easements upon which the tax deductions were based.
Roberts 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 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, in order to reach a targeted appraisal value – communicated to him by coconspirators – that would result in the desired tax deduction amount.
Roberts inflated some of his appraisals by at least 70%. The 18 conservation easements Roberts fraudulently appraised claimed approximately $466,961,000 in tax deductions, resulting in a tax loss to the IRS exceeding $129,000,000.
Roberts is scheduled to be sentenced on Nov. 14 and faces a maximum penalty of five years in prison, as well as a period of supervised release, restitution, and monetary penalties. 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 James C. Lee made the announcement.
IRS-CI and U.S. Postal Inspection Service are investigating the case.
Trial Attorneys Richard M. Rolwing, Grace Albinson, Parker Tobin, Jessica Kraft, and Nicholas J. Schilling Jr., of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section for the Northern District of Georgia are prosecuting the case. Assistant U.S. Attorney Brittney Campbell for the District of Idaho, formerly of the Tax Division, also previously worked on this case.
Passenger who discharged firearm at airport during Thanksgiving holiday travel season sentenced to federal prisonRead the Press Release
ATLANTA - Kenny Wells has been sentenced to ten years in prison for possessing a firearm after having been previously convicted of multiple felony offenses. Wells made headlines when he recklessly discharged a firearm at Hartsfield–Jackson Atlanta International Airport on the busy weekend before Thanksgiving in 2021. Wells created enormous panic throughout the airport and forced a lockdown of the airport and surrounding area for over two hours after he discharged a firearm detected inside a bag he had carried into an airport security screening area.
“Wells is a multi-convicted felon who should not have been in possession of a firearm,” said U.S. Attorney Ryan K. Buchanan. “His behavior, particularly occurring at the world’s busiest airport, was especially dangerous. Fortunately, no one was injured when Wells discharged his firearm. He has now been held accountable for the consequences of his conduct.”
“Kenny Wells is a very violent individual who displays a total lack of concern for the lives of others. This sentence represents the seriousness of his crime,” said ATF Special Agent in Charge Alicia Jones. “This sentence also ensures that Wells will not be able to hurt or terrorize anyone else for a very long time.”
“The Atlanta Police Department (APD) is committed to the safety of travelers and employees at Hartsfield–Jackson Atlanta International Airport. The egregious actions of Kenny Wells, a convicted felon, are disturbing. He endangered the lives of multiple innocent travelers and airport personnel,” said Atlanta Police Chief Darin Schierbaum. “The conviction of Kenny Wells proves the effectiveness of our law enforcement partnerships, the dedication of the members of the various agencies that protect the world’s busiest airport, and our commitment to bringing criminals and repeat offenders to justice.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On November 20, 2021, Wells traveled to Hartsfield–Jackson Atlanta International Airport for a flight to New Orleans, Louisiana. This was the Saturday before Thanksgiving, so the airport was filled with passengers and traffic in the area was particularly high.
At approximately 1:30 p.m., Wells joined a security line to be screened by Transportation Security Administration (TSA) officers. A TSA officer noticed something unusual inside a bag that Wells carried as the item went through an X-ray portal. The officer then moved the bag to a separate area for a closer inspection as Wells stood watching nearby. As the officer lifted a top layer of clothing inside the bag, Wells lunged forward and reached for a firearm concealed in the bag. Wells discharged the firearm as he grabbed the weapon and fled the area. People immediately panicked, with those nearby falling to the floor to protect themselves. Law enforcement officers responded by issuing an alert of a possible active shooter at the airport. Passengers in the domestic terminal area stampeded out of the airport, while passengers beyond the check-in kiosks were rushed to the concourse tunnels for protection.
The airport and surrounding area were placed in lockdown for more than two hours. This public safety precaution prevented passengers from boarding flights and pilots from allowing passengers to deplane from aircraft parked on the runways.
During the confusion, Wells escaped from the airport by blending in with the fleeing crowds. Surveillance cameras captured him at a nearby parking garage where he was seen discarding an object in a large metal trash can. Law enforcement officers later retrieved a firearm from the same trash can. Because Wells left his boarding pass at the TSA checkpoint, law enforcement was able to identify him as the person who discharged the firearm, discarded the firearm in the parking garage trashcan, and caused widespread panic in the airport.
Kenny Wells, 44, of Atlanta, Georgia, has been sentenced to ten years in prison to be followed by three years of supervised release. On January 4, 2023, Wells was convicted of the charge of possessing a firearm while being a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1), after entering a guilty plea.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Atlanta Police Department.
Assistant U.S. Attorney Paul R. Jones 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.
Group responsible for 200 kilograms of methamphetamine sentenced to prisonRead the Press Release
GAINESVILLE, Ga. - Almarud Duarte, David Garcia, Eduardo Penaloza-Pacheco, and Kevin Tello have been sentenced for their respective roles in conspiring to sell kilogram amounts of methamphetamine. Law enforcement officers seized approximately 200 kilograms of methamphetamine during the investigation.
“Illicit drugs devastatingly impact our communities, resulting in significant suffering by those addicted to the substances and the families who love them,” said U.S. Attorney Ryan K. Buchanan. “We thank our law enforcement partners for their dedication to combatting the scourge of drug trafficking and helping to keep our streets safe.”
“Finding, arresting and prosecuting the criminals trafficking illegal drugs greatly improves the safety of the community by preventing this poison from finding its way onto our streets,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Disrupting and dismantling drug trafficking organizations is one of HSI’s highest priorities and we are proud of the work that we and our partners are doing.”
“I’m pleased to see these offenders will spend time behind bars for their crimes,” said Hall County Sheriff Gerald Couch. “As you can see from this case, and so many others now under investigation, it takes teamwork to get these dangerous narcotics off of our streets. The Hall County Sheriff’s Office remains committed to the fight against illegal drugs pouring into our communities.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From May 2021 to August 2021, the defendants conspired to, and did, distribute kilogram amounts of methamphetamine. Kevin Tello and David Garcia supplied the drugs to Almarud Duarte, who then sold the methamphetamine. Additionally, on June 28, 2021, Eduardo Penaloza-Pacheco sold a kilogram of methamphetamine supplied to him by Tello. Law enforcement officers then seized approximately 200 kilograms of methamphetamine during a search of Garcia’s residence.
Duarte, Garcia, and Tello pled guilty to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Penaloza-Pacheco pled guilty to distribution of methamphetamine. U.S. District Judge Richard W. Story sentenced the defendants as follows:
- Almarud Duarte, 27, of Oakwood, Georgia, pleaded guilty on January 23, 2023, and was sentenced to nine years in prison to be followed by five years of supervised release.
- David Garcia, 42, of Duluth, Georgia, pleaded guilty on June 1, 2022, and was sentenced to 14 years in prison to be followed by five years of supervised release.
- Eduardo Penaloza-Pacheco, 38, of Gainesville, Georgia, pleaded guilty on May 16, 2022, and was sentenced to five years in prison to be followed by five years of supervised release.
- Kevin Tello, 27, of Lawrenceville, Georgia, pleaded guilty on May 1, 2022, and was sentenced to eight years in prison to be followed by five years of supervised release.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation Safe Streets Task Force, the Hall County Multi-Agency Narcotics Squad, the Drug Enforcement Administration, the Gwinnett County Metro Task Force, and the Georgia State Patrol.
Assistant U.S. Attorney Jennifer Keen 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.
Atlanta drug trafficking organization has been successfully dismantledRead the Press Release
ATLANTA - Esteban Niere has been sentenced for conspiring to distribute cocaine and methamphetamine. Niere was a member of a drug trafficking organization operating in southwest Atlanta that was successfully disrupted following a federal, state, and local law enforcement investigation.
“This group of drug traffickers targeted vulnerable communities in our district for distributing illegal narcotics,” said U.S. Attorney Ryan K. Buchanan. “Through the diligent efforts of our federal, state, and local law enforcement partners, we dismantled the organization’s distribution chain and prosecuted the suppliers. This case demonstrates our commitment to removing dangerous drugs from our streets as well as the dealers who peddle them.”
“The DEA is committed to deploying resources to combat and interrupt the dangerous drug trafficking organizations that have set up business in the Atlanta area,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “We will continue to work aggressively to hold accountable those who are trafficking dangerous drugs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2019, DEA special agents identified a prolific drug trafficker, Kevin Clark, who coordinated multiple narcotics transactions in and around his residence in southwest Atlanta. Through an investigation that followed, law enforcement was able to disrupt and eventually dismantle a drug trafficking organization comprising Clark’s sources-of-supply, including Esteban Niere, Alejandro Elias-Miranda, and Eduardo Gutierrez, and mid-level traffickers, including Christopher Jones, Christopher Allen, and Tierre Freeman. Law enforcement also seized multiple vehicles, firearms, cash, and jewelry, which were used in the commission, or purchased with the proceeds, of the offenses.
Each of the following defendants in the case pleaded guilty to the charge of drug trafficking conspiracy and received the following sentences imposed by U.S. District Judge Michael L. Brown:
- Kevin Clark, 46, of Atlanta, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of seven years, three months in prison, to be followed by five years of supervised release.
- Esteban Niere, a/k/a “Perfecto Neri-Diaz,” 50, of San Luis Potosi, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of ten years in prison, to be followed by five years of supervised release.
- Eduardo Gutierrez, a/k/a “Santos Campos-Rios,” 43, of Morelia, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of sentence of six years, eight months in prison, to be followed by five years of supervised release.
- Christopher Jones, 42, of Norcross, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of 15 years in prison, to be followed by 10 years of supervised release.
- Tierre Freeman, a/k/a “Tierre Ford,” 46, of Stockbridge, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of 10 years in prison, to be followed by four years of supervised release.
- Christopher Allen, 48, of Austell, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of two years in prison, to be followed by four years of supervised release.
- Lamon Brown, 50, of Jonesboro, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of two years, seven months in prison, to be followed by three years of supervised release.
- Alejandro Elias-Miranda, 37, of Toluca, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of six years, eight months in prison, to be followed by eight years of supervised release.
This case was investigated by the Drug Enforcement Administration, the U.S. Marshals Service, and the Georgia Bureau of Investigation, with valuable assistance provided by the Georgia State Patrol, Atlanta Police Department, Gwinnett County Police Department, Henry County Police Department, Douglasville Police Department, Rockdale County Sheriff’s Office, Cartersville Police Department, Forsyth County Sheriff’s Office, Covington Police Department, Troup County Sheriff’s Office, and the Lee County Sheriff’s Office.
Assistant U.S. Attorney 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.
Summer camps must modify policies to accommodate children with disabilitiesRead the Press Release
ATLANTA - Parents are making plans to send their children to summer camps as the school year comes to an end. To ensure that children with disabilities can attend summer camps in the same way as children without disabilities, the U.S. Attorney’s Office announced today that it has sent the attached flyer to summer camps located within the Northern District of Georgia to remind these groups of their legal obligations under the Americans with Disabilities Act (ADA).
“Summer camps provide fun and important developmental opportunities for children and offer parents and caregivers a safe place for their children to socialize with one another during the summer,” said U.S. Attorney Ryan K. Buchanan. “Children with disabilities deserve an equal opportunity to safely participate in camp activities and programs. This is not an option; it is the law.”Under the ADA, summer camps, whether private or run by municipalities and counties, must afford reasonable modifications to ensure that children with disabilities can participate fully in camp programs and activities. Camps must evaluate each child on an individual basis and train their staff in the requirements of the ADA. Camps must also pay for the cost of any reasonable modifications necessary for a child with a disability to participate in camp activities.
For more information, please visit www.ada.gov or call our Civil Rights Hotline at (404) 581-4626.
For inquiries, 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.
Conyers man indicted for selling “tranq dope” mixture of fentanyl and xylazine that killed one and injured anotherRead the Press Release
ATLANTA – Masi Lenard Fears has been arraigned on federal charges of Distribution of a Controlled Substance Resulting in Serious Bodily Injury or Death, stemming from his sale of a lethal combination of fentanyl and xylazine (commonly referred to as “tranq”).
“The use of illicit fentanyl is already deadly and now drug dealers seek to increase their unlawful profits by mixing fentanyl with xylazine – a powerful sedative used by veterinarians,” said U.S. Attorney Ryan K. Buchanan. “The emergence of ‘tranq’ or ‘tranq dope’ in our community is beyond alarming and so our office is committed to partnering with our federal, state, and local law enforcement partners and community stakeholders to help educate the public about this significant threat.”
“Adding xylazine to an already dangerous drug like illicit fentanyl illustrates the ruthlessness of drug dealers’ pursuit of higher profits,” said Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division. “But the DEA remains relentless in bringing drug dealers to justice.”
“The reckless disregard for life by drug dealers can wreak havoc in any community,” said Conyers Deputy Chief of Police Kim Lucas. “It will not be tolerated in our city, and we are grateful for the partnership with the DEA and the work by the U.S. Attorney’s Office to hold such persons accountable.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In March 2021, Masi Fears allegedly sold two men a $20 amount of a powdery substance at a gas station in Conyers, Georgia. The men believed they were buying cocaine or heroin, but the powder Fears sold them was actually a deadly combination of fentanyl and xylazine (commonly referred to as “tranq”). The men used some of Fears’ fentanyl/xylazine powder, which quickly killed one of the men and caused serious injury to the other.
The Conyers Police Department (CPD) investigated the incident and identified Fears as the dealer of the narcotics. Fears was in possession of a loaded handgun when CPD officers later arrested him.
Masi Lenard Fears, 36, of Conyers, Georgia, was arraigned before U.S. Magistrate Judge John K. Larkins III. Fears was indicted by a federal grand jury on April 11, 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.
According to a recent DEA Public Safety Alert, “DEA has seized xylazine and fentanyl mixtures in 48 of 50 States. The DEA Laboratory System is reporting that in 2022 approximately 23% of fentanyl powder and 7% of fentanyl pills seized by the DEA contained xylazine.” The full Public Safety Alert is available at https://www.dea.gov/alert/dea-reports-widespread-threat-fentanyl-mixed-xylazine.
This case is being investigated by the U.S. Drug Enforcement Administration (DEA) and the Conyers Police Department.
Assistant U.S. Attorney Thomas Forsyth 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.
Veterans Affairs Medical Center doctor accused of sexually assaulting female veteran patientsRead the Press Release
ATLANTA - Rajesh Motibhai Patel, a primary care physician at the Veterans Affairs Medical Center in Decatur, Georgia, has been indicted on multiple counts of violating his patients’ constitutional right to bodily integrity while acting under color of law and for engaging in unwanted sexual contact.
“Our Veterans have made incredible sacrifices for our country and deserve the best medical treatment and highest quality of care,” said U.S. Attorney Ryan K. Buchanan. “Patel allegedly sexually abused his female patients and violated his oath to do no harm to patients under his care.”
“Veterans and their families expect and deserve the highest quality of health care delivered in a safe and accountable setting,” said VA Inspector General Michael J. Missal. “The VA Office of Inspector General is committed to working with our law enforcement partners to ensure the safety of those who entrust their health care to the providers and staff at VA’s 1,200 medical facilities.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Between 2019 and 2020, Rajesh Motibhai Patel, a physician at the Veterans Affairs Medical Center, allegedly assaulted four of his female patients during routine exams, groped their breasts, and improperly touched their vaginal area.
Investigators believe that Dr. Rajesh Motibhai Patel, 68, of Lilburn, Georgia, may have victimized additional patients. If you have information related to Dr. Patel that could further the investigation, or if you suspect that a particular person may have been one of his victims, please call the VA-OIG tipline at (770) 758-6646.
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 Veterans Affairs, Office of Inspector General.
Assistant U.S. Attorneys Erin N. Spritzer and Jennifer Keen 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.
Former elementary school teacher sentenced for sexually abusing childrenRead the Press Release
ATLANTA - Stefan Zappey has been sentenced to federal prison for sexually abusing four of his former elementary school students near Stuttgart, Germany.
“Zappey abused a critical position of trust as an elementary school teacher and sexually abused multiple students,” said U.S. Attorney Ryan K. Buchanan. “His crimes were horrific, and the community is safer now that he no longer has access to children.”
“Zappey presented himself as a dedicated teacher, but in reality, he is the most dangerous type of predator, an educator who uses his position of trust to gain access to children and victimize them for his own sick gratification,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI remains committed to protecting children and is thankful for the law enforcement partnerships that make it possible to stop people like Zappey from victimizing anyone else.”
“The successful prosecution of Stefan Zappey demonstrates the Justice Department’s commitment to prosecuting U.S. citizens who prey on young and vulnerable children regardless of where and when the crimes occurred,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Zappey’s offenses are especially egregious because he was entrusted with teaching the children of our brave service members overseas. The courage of the victims and the perseverance of investigators and prosecutors ensured that Zappey’s offenses were exposed and will prevent him from abusing even more children.”
“Victimizing and preying on DoD dependents is unacceptable,” said Ryan Hall, Special Agent-in-Charge of the Department of the Army Criminal Investigation Division’s Europe Field Office. “Army CID will continue to work closely with our law enforcement partners to investigate these crimes and bring the perpetrators to justice.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Stefan Zappey sexually abused four of his former elementary school students between 2006 and 2010. At the time, Zappey was employed by the Department of Defense Education Activity (DODEA) federal school system as a first- through third-grade teacher at Patch Elementary school. The school is located on a U.S. military installation near Stuttgart, Germany.
Specifically, in 2019, Army criminal investigators were notified that one of Zappey’s former students reported that Zappey touched her inappropriately under her clothing when she was a student at Patch Elementary in 2009 and 2010. An investigation that followed revealed that four of Zappey’s former students reported that Zappey placed his hand inside their underwear and directly touched their genitals on multiple occasions. The victims were between six and eight years old and were elementary school students at the time of the sexual abuse. At trial, other students and faculty members of Patch Elementary reported that Zappey frequently hugged students, had them sit on his lap, and touched their backs and stomachs under their clothes.
Stefan Zappey, 57, of Stuttgart, Germany, has been sentenced to life in prison, and to pay a special assessment of $800.00. Zappey was found guilty by a jury on January 18, 2023.
This case was investigated by the Federal Bureau of Investigation and U.S. Army Criminal Investigative Division.
Assistant U.S. Attorney Leanne M. Marek and Trial Attorney Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section 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.
Former Elementary School Teacher Sentenced to Life in Prison for Sexually Abusing ChildrenRead the Press Release
A former school teacher was sentenced today to life in prison for sexually abusing elementary school students on a U.S. military installation in Germany.
According to court documents and evidence presented at trial, Stefan Zappey sexually abused four of his former elementary school students between 2006 and 2010. At the time, Zappey was a teacher for first through third grade students at an elementary school in Germany. The school is part of the Department of Defense Education Activity, which serves dependents of U.S. military service members stationed overseas.
“The successful prosecution of Stefan Zappey demonstrates the Justice Department’s commitment to prosecuting U.S. citizens who prey on young and vulnerable children regardless of where and when the crimes occurred,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Zappey’s offenses are especially egregious because he was entrusted with teaching the children of our brave service members overseas. The courage of the victims and the perseverance of investigators and prosecutors ensured that Zappey’s offenses were exposed and will prevent him from abusing even more children.”
“Zappey abused a position of trust as an elementary school teacher and sexually abused multiple students,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “His crimes were horrific, and the community is safer now that he no longer has access to children.”
In 2020, one of Zappey’s former students notified Army criminal investigators that Zappey touched her under her clothing when she was a student at the school in 2009 and 2010. Further investigation revealed that Zappey sexually abused four of his former students by placing his hand inside their underwear and directly touching them on multiple occasions. The victims were between six and eight-years-old at the time of the sexual abuse. Other students and faculty members reported that Zappey frequently hugged students, had them sit on his lap, and touched their backs and stomachs under their clothes.
On Jan. 18, a jury convicted Zappey of four counts of aggravated sexual abuse of a child and four counts of abusive sexual contact.
“Cases like these demonstrate the FBI’s dedication to protecting children from those who seek to exploit their innocence,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our partners remain committed to pursuing justice for our most innocent victims and those who are unable to defend themselves.”
“Victimizing and preying on Department of Defense dependents is unacceptable,” said Special Agent in Charge Ryan Hall of the Department of the Army Criminal Investigation Division’s (Army CID) Europe Field Office. “Army CID will continue to work closely with our law enforcement partners to investigate these crimes and bring the perpetrators to justice.”
The FBI and Army CID investigated the case.
Trial Attorney Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Leanne M. Marek for the Northern District of Georgia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Russian charged with money laundering and illegally transmitting more than $150 millionRead the Press Release
ATLANTA - Feliks Medvedev has been indicted on one count of operating an unlicensed money transmitting business and 39 counts of money laundering.
“Medvedev allegedly used the American banking system to illegally transmit more than $150 million,” said U.S. Attorney Ryan K. Buchanan. “These types of criminal actions pose a serious danger to the integrity of our financial system.”
“Money laundering is not a victimless crime.” said FBI special agent in charge Keri Farley, “The FBI is committed to the fight against money laundering and to find those who are trying to hide right in our own backyard and illegally send cash overseas.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Feliks Medvedev allegedly registered eight companies in Georgia that were used to transmit over $150 million in a series of 1,300 transactions. The companies were purportedly headquartered in Buford, Georgia, and Dacula, Georgia. But the companies did not generate typical business expenses or maintain employees. The money was used, in part, to purchase more than $65 million in overseas gold bullion. Medvedev, a Russian citizen who resides in North Georgia, allegedly transferred millions overseas from multiple bank accounts in Georgia.
Feliks Medvedev, 41, of Buford, Georgia, was indicted by a federal grand jury for these offenses on April 11, 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 Christopher J. Huber and Radka T. Nations 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.
Romanian man sentenced for car burglary crimes in the Chattahoochee River National Recreation AreaRead the Press Release
ATLANTA - Mihail Ilie has been sentenced for violations of the federal Assimilative Crimes Act for possession of burglary tools and attempted car burglary in the Chattahoochee River National Recreation Area.
“National Parks and Recreational Areas serve as refuges for people to relax and enjoy the outdoors without fear of being targeted by criminals like Ilie,” said U.S. Attorney Ryan K. Buchanan. “This case is an example of the importance of citizens reporting property crimes. Without the reports from other visitors to the park who were victims of car burglaries, Rangers would not have identified and arrested Ilie in the act of committing another offense.”
“Parks are places where people tend to let their guard down. Their minds enter a safe mode and they become less vigilant when they start their hike or bike ride,” said Jeston Fisher, Chief Ranger, Chattahoochee River National Recreation Area. “Law Enforcement at Chattahoochee River National Recreation Area and around the Metro Atlanta area work very hard to deter crime and more importantly, educate the visitors. Please help by remembering to leave your valuables at home or take them with you when you recreate.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In August and September 2022, Park Rangers at the Chattahoochee River National Recreation Area began investigating a rash of car burglaries. The burglaries fit a pattern. The passenger door lock of the car would be forced with a special tool, and any credit and debit cards left in the car would be stolen. The cards would then be used almost immediately at local malls to make high dollar amount purchases, such as jewelry and Apple products.
Hikers returning to their cars sometimes did not immediately recognize they had been victimized because many drivers unlocked their cars with key fobs and approached from their driver’s side door. Using trail cameras and other investigative techniques, Rangers identified two vehicles frequently present when burglaries were reported.
On September 10, 2022, a Law Enforcement Park Ranger saw Ilie crouched between one of these suspicious vehicles and another car he appeared to be tampering with, and arrested him in the act of breaking into the other car. Ilie was using a young girl, then just 12 years old, as a lookout. A search of Ilie’s car revealed receipts for jewelry and Apple products, including some out of state purchases, and burglary tools.
After an initial appearance on September 12, 2022, Ilie was detained pending trial as a flight risk. On October 4, 2022, a grand jury indicted Ilie with two felony violations of the federal Assimilative Crimes Act for possession of burglary tools and attempted car burglary. Ilie was convicted of these charges on December 12, 2022, after he pleaded guilty.
Mihail Ilie, 24, of Lawrenceville, Georgia, was sentenced on April 25, 2023, to one year and a day in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $802.
This case was investigated by the National Park Service.
Assistant U.S. Attorney Alana R. 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.
Atlanta man indicted on multiple counts of bank fraud and identity theft based on falsified money ordersRead the Press Release
ATLANTA - Jeremiah Carbon has been indicted on federal bank fraud and aggravated identity theft charges, arising from a scheme to defraud banks by depositing hundreds of fraudulent money orders into multiple bank accounts to enrich himself and his co-conspirators by more than $1.5 million. He also has been charged with possessing a firearm as a convicted felon.
“Carbon allegedly engaged in a scheme in 2019 through 2022 to defraud multiple banks by copying hundreds of blank money orders that he used to pay himself and his co-conspirators,” said U.S. Attorney Ryan K. Buchanan. “He also allegedly stole and used the identities of others to perpetrate and conceal the scheme.”
“The Secret Service is committed to defending our nation’s financial security and pursuing those who aim to exploit it,” said Steven R. Baisel, Special Agent in Charge of the U.S. Secret Service’s Atlanta Field Office. “We appreciate our partnership with the U.S. Attorney’s Office and will continue to work alongside each other to ensure that individuals who engage in fraudulent activities are held accountable.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Carbon allegedly used multiple fake driver’s licenses, and stolen driver’s license numbers belonging to several individuals, to purchase hundreds of blank money orders from dozens of different locations of a popular retail store in the Atlanta area. He and his co-conspirators then made copies of the blank money orders and deposited them into multiple bank accounts, often listing a fictitious purchaser’s name.
After depositing funds from the fraudulent money orders into bank accounts opened in his and his co-conspirators’ names, Carbon returned the original money orders to the retail store locations for a full refund. Between 2019 and 2022, Carbon allegedly purchased, copied, and returned more than 1,500 money orders, resulting in stolen funds of over $1.5 million.
Jeremiah Carbon, 34, of Atlanta, Georgia, was indicted on April 18, 2023, in an 11-count indictment alleging charges of conspiracy to commit, and commission of, bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349; aggravated identity theft, in violation of Title 18, United States Code, Section 1028A; and possession of a firearm while being a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1). 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 U.S. Secret Service.
Assistant U.S. Attorney Bethany Rupert 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.
Businessman Pleads Guilty to Bribing City of Atlanta and DeKalb County Officials to Obtain ContractsRead the Press Release
The former executive vice president of PRAD Group Inc. pleaded guilty to paying bribes to two City of Atlanta officials in exchange for steering city business worth millions of dollars to his company, to paying bribes to a former DeKalb County, Georgia, official in an attempt to obtain county contracts, and to evading over $1.5 million in taxes.
According to court documents, Lohrasb “Jeff” Jafari, 72, of Alpharetta, Georgia, oversaw PRAD Group’s finances. From 1984 to 2018, PRAD Group was an architectural, design, and construction management firm headquartered in Atlanta that performed services for the City of Atlanta and DeKalb County.
From January 2003 to February 2017, Adam Smith was 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 while Jafari was actively seeking additional work and/or assistance with ongoing city projects. After most of the meetings, Jafari paid Smith $1,000 in cash in the bathroom of the restaurant. 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. In response, Jafari confronted Smith at City Hall to convince Smith to lie to the FBI by instructing Smith to deny taking 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 while 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 and 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 Aug. 21, 2014, the FBI conducted two undercover operations using a confidential source (who at the time was a high-ranking DeKalb County official). During the 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 between $1,000 and $1,500 in cash.
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 took 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.
Jafari pleaded guilty to one count each of conspiratorial bribery, substantive bribery, and tax evasion. He is scheduled to be sentenced on July 19 and faces a statutory maximum of five years in prison for conspiracy to commit bribery, 10 years for substantive bribery, and five years for tax evasion. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In January 2018, Smith was sentenced to two years and three months in prison after pleading guilty to conspiratorial bribery. In February 2023, Macrina was sentenced to four years and six months in prison after being convicted at trial of conspiratorial and substantive bribery.
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 Special Agent in Charge James E. Dorsey of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office made the announcement.
The FBI Atlanta Field Office and IRS-CI are investigating the case.
Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section, Trial Attorney Todd Ellinwood of the Tax Division, and Assistant U.S. Attorneys Jeffrey W. Davis and Nathan P. Kitchens for the Northern District of Georgia are prosecuting the case.
Businessman Jeff Jafari pleads guilty to bribing City of Atlanta and DeKalb County officials to obtain contractsRead the Press Release
ATLANTA - Lohrasb “Jeff” Jafari, the former Executive Vice President of PRAD Group, Inc., has pleaded guilty to paying bribe money to two City of Atlanta officials in exchange for steering city business worth millions of dollars to his company, to paying bribes to a former Dekalb County official in an attempt to obtain county contracts, and to evading more than $1.5 million in taxes.
“Contractors and the public deserve a fair and impartial government procurement process,” said U.S. Attorney Ryan K. Buchanan. “For years, Jeff Jafari corrupted, and attempted to corrupt, those processes in the City of Atlanta and DeKalb County by paying tens of thousands of dollars in bribe payments to several high-ranking government officials. Not surprisingly, after illegally obtaining city contracts he never paid a dime of personal income tax on millions of dollars he earned.”
“Jafari tried to buy his way around a process that is meant to be fair to all contract applicants, and in doing so contributed to the public’s distrust in government,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Today's plea is the direct result of the FBI and our partners continuous hard work and commitment to end public corruption in the city of Atlanta”
“Jafari bribed city government officials to avoid fair competition in bidding for government contracts,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Greed consumed Mr. Jafari, after being awarded the government contracts, he willfully failed to file tax returns reporting the income and pay the appropriate taxes undermining the American tax system.”
According to U.S. Attorney Buchanan, 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 for the City of Atlanta. From that position, Smith supervised the City of Atlanta’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. As Watershed’s Commissioner, Macrina held 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 conspiring 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 Chief Procurement Officer, 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/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 of Atlanta’s Chief Procurement Officer.
In February 2017, Jafari became aware of the federal investigation into his bribe payments to Smith and confronted Smith at 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 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 between $1,000 and $1,500 in cash.
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 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, pleaded guilty to one count each of conspiratorial bribery, substantive bribery, and tax evasion. Sentencing is scheduled for July 19, 2023, at 11:00 a.m., before U.S. District Judge Steve C. Jones.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation are investigating 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, 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.
Former physician's assistant sentenced for health care fraud after posing as a licensed practitionerRead the Press Release
ATLANTA - Theresa Pickering has been sentenced to federal prison for committing health care fraud by posing as a licensed physician’s assistant, which resulted in approximately $147,000 in attempted losses to insurers.
“Pickering previously served prison time for similar conduct,” said U.S. Attorney Ryan K. Buchanan. “Then in blatant disregard for the law and safety, she knowingly placed patients at significant risk by again posing as a licensed medical provider.”
“Pickering did not learn from her previous fraud conviction. Instead, she chose to continue to endanger patient lives through theft and lies,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentence will serve as a reminder to others that the FBI will not tolerate healthcare providers who engage in schemes that defraud the industry and put innocent patients at risk.”
"This individual egregiously lied about her qualifications to obtain access to patient information, which she then used to steal from federal health care programs," said Tamala Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG is proud to work alongside our law enforcement partners to hold accountable those who put patients at risk and undermine the integrity of federal health care programs."
“At OPM OIG, our number one priority is protecting patients from harm,” said Conrad J. Quarles, Deputy Assistant Inspector General for Investigations, OPM OIG. “This sentencing demonstrates our commitment to working with our Federal partners to hold accountable those that would seek to put the safety of Federal health care enrollees at risk.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On or about September 24, 2019, Pickering was hired as a licensed physician’s assistant at a family practice in Norcross, Georgia. But Pickering was not a licensed physician’s assistant in Georgia at that time, nor had she been a licensed physician’s assistant in any state since March 2014. After Pickering served a prison sentence for a 2015 fraud and narcotics case related to her illegal practice as a physician’s assistant in the State of Mississippi, Pickering relocated to Georgia and again obtained employment as a licensed physician’s assistant at the Norcross-based family practice.
While employed at the practice, Pickering treated patients, diagnosed illnesses, ordered diagnostic tests and lab work, and handled sick visits and prescribed drugs to patients – none of which was authorized by law based on her lack of licensure and exclusion from federal health care programs. Pickering also issued prescriptions, including prescriptions for controlled substances, in the name of Doctor 1, a physician contracted by the practice, and without Doctor 1’s permission. Pickering caused the practice to submit at least approximately $147,000 in fraudulent claims for reimbursement to Medicare and numerous private insurance companies.
Theresa Pickering, 55, of Norcross, Georgia, was sentenced on April 18, 2023, to two years, nine months in prison to be followed by three years of supervised release. She was also ordered to pay restitution in the amount of $48,742.30.
This case was investigated by the Federal Bureau of Investigation, Department of Health and Human Services, Office of Inspector General, and Office of Personnel Management, Office of the Inspector General.
Assistant U.S. Attorney David A. O'Neal 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.
Man Sentenced for Bribery Schemes Involving Millions of Dollars in U.S.-Funded Military Contracts and Visa FraudRead the Press Release
A Georgia man was sentenced today to three years and 10 months in prison for his roles in two bribery conspiracies – one related to a U.S. military contracts fraud scheme and one related to a Department of State visa fraud scheme.
According to court documents, Orlando Clark, 57, of Smyrna, was a manager of projects who deployed to Afghanistan to evaluate bids for U.S.-funded reconstruction contracts awarded by the U.S. military in 2011 and 2012. At that time, Clark and co-conspirator Todd Coleman, an analyst at a different U.S. company who also deployed to Afghanistan, received approximately $400,000 in bribes from an Afghan company. The bribes were paid in return for Clark and Coleman assisting the company in obtaining millions of dollars through at least 10 contracts that involved the construction of an Afghan police station and a security checkpoint for U.S. forces.
To conceal their conduct, Clark and Coleman registered fictitious companies in Georgia and opened bank accounts to which bribes were sent via wire transfers from Afghanistan. Clark and Coleman also created false invoices to make it appear as though they were involved in a car-exporting business in the United Arab Emirates. In reality, Clark and Coleman used the bribe payments to purchase personal items, such as BMW cars. During the scheme, Coleman and Clark also travelled to the United Arab Emirates to receive cash bribes, which they smuggled into the United States without declaring the currency.
In addition, between 2015 and 2020, Clark also received bribes to sign false letters of recommendation for visas authorized for Afghan nationals who worked as translators with U.S. forces in Afghanistan. Clark signed over 10 letters in which he falsely claimed to have supervised the applicants and in which he stated, without any factual basis, that he had no reason to be believe that they posed a threat to U.S. national security.
On Feb. 9, Coleman was sentenced to two years and nine months in prison for his role in the U.S. military contracts bribery scheme.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, Inspector General John F. Sopko of the Special Inspector General for Afghanistan Reconstruction (SIGAR), Inspector General Robert P. Storch of the Department of Defense, Special Agent in Charge Stanley A. Newell of the Defense Criminal Investigative Service (DCIS) Transnational Operations Field Office, and Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office made the announcement.
The SIGAR, DCIS, and NCIS investigated the case.
Trial Attorney Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Russell Phillips for the Northern District of Georgia prosecuted the case.
Fugitive financial advisor indicted for $10 million investment fraud schemeRead the Press Release
ATLANTA – Former Berkely Lake financial adviser Christopher Burns has been indicted for his role in an investment fraud scheme that defrauded dozens of investors of millions of dollars.
“Burns obtained then violated the trust of his clients to fund his lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan. “He betrayed investors and stole their savings with promises of safe investments that would yield high rates of return. Individuals who brazenly cheat their clients should expect to be held accountable. The authorities are continuing to search for Burns, and anyone with information about his whereabouts should contact the FBI.”
“Burns is charged for allegedly stealing millions of dollars from clients in an illegal investment fraud scheme. Financial crimes of this nature can cause significant disruptions to the lives of those who are victimized, and the FBI is dedicated to holding these criminals accountable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is still seeking the public’s help in locating Burns and will continue to pursue him no matter how long he tries to evade the law.”
“Ponzi schemes, such as the one Burns carried out, inflict emotional and financial damage on its victims,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation and our federal law enforcement partners are committed to removing unscrupulous financial advisors from our financial system and ensuring they are brought to justice.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Burns, an Atlanta financial adviser, conducted business through several entities, including Investus Advisers, LLC, Investus Financial, LLC, Dynamic Money, and Peer Connect, LLC. Investors were promised that their money would be loaned to businesses that needed financing and with little to no risk. In some cases, Burns falsely described the investments as secured by the protection of collateral and personal guarantees. In other cases, he falsely claimed that he would pool investors’ money to lend it to startup businesses and charities. But in reality, he used investors’ money to repay prior investors and to fund his business and his lavish lifestyle. Burns is alleged to have defrauded dozens of victims of at least $10 million.
On April 11, 2023, a federal grand jury charged Christopher Burns, age 40, of Berkeley Lake, Georgia, with 10 counts of wire fraud, two counts of mail fraud, and four counts of money laundering. Burns was previously charged in a criminal complaint on October 23, 2020, with one count of mail fraud.
Burns has not been seen since he left his home on September 24, 2020, one day before he was scheduled to relinquish documents related to his businesses to the Securities and Exchange Commission. The vehicle he was driving was found abandoned in Dunwoody, Georgia. Inside the vehicle were copies of three cashier’s checks totaling more than $78,000. If you have any information about Burns’s location or if you think you were defrauded, please contact the FBI-Atlanta field office at 770-216-3000 or go to tips.fbi.gov
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 and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Alison B. Prout 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.
Five current and former police officers convicted in multi-million-dollar COVID-19 loan schemeRead the Press Release
NEWNAN, Ga. – Former Fulton County Sheriff’s Office deputy Katrina Lawson has been found guilty by a federal district court jury of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering in connection with a wide-ranging Paycheck Protection Program and Economic Injury Disaster Loan program small business loan scheme.
“The jury found Lawson guilty on all charges brought against her, adding to the previous convictions of 11 of her co-conspirators,” said U.S. Attorney Ryan K. Buchanan. “In a time of crisis when the federal government sought to save small businesses from the significant, negative impacts of COVID-19, Katrina Lawson and her co-conspirators stole funds intended for these vulnerable businesses.”
“The verdict clearly illustrates that individuals who engage in fraudulent activities will be held accountable for their actions,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “An extensive investigation by Postal Inspectors revealed the defendant and her co-conspirators took advantage of COVID-19 funds that were designated to assist small businesses for their own financial gain.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On August 11, 2020, agents from the U.S. Postal Inspection Service (USPIS) conducted a search at Alicia Quarterman’s residence in Fayetteville, Georgia related to an ongoing narcotics trafficking investigation. Inspectors seized Quarterman’s cell phone and a notebook during the search.
In the phone and notebook, law enforcement discovered evidence of a Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program scheme masterminded by Lawson (Quarterman’s distant relative and best friend). Lawson’s cell phone was also seized later as a part of the investigation.
The text messages found in Lawson’s and Quarterman’s cell phones revealed that Lawson had identified a vulnerability in the PPP and EIDL programs and exploited it. Because of Congress’s goal of getting CARES Act funding into the hands of small businesses as quickly as possible, both programs relied heavily on the honesty of the applicants seeking funds. As a result, Lawson and Quarterman recruited several other people, who did not actually own registered businesses, to provide them with their personal and banking information. Once Lawson ultimately obtained that information, she completed fraudulent applications and submitted them to the Small Business Administration and banks for forgivable small business loans and grants.
Lawson was responsible for recruiting more than 200 individuals to participate in this PPP and EIDL fraud scheme. Three of the individuals she recruited were active sheriff’s deputies and one was a former U.S. Army military policeman. Lawson submitted PPP and EIDL applications seeking over $6 million in funds earmarked to save small businesses from the impacts of COVID-19. She and her co-conspirators ultimately stole more than $3 million. Lawson used a portion of these funds to purchase a $74,492 Mercedes Benz, a $13,500 Kawasaki motorcycle, $9000 worth of liposuction, and several other expensive items.
Several of Lawson’s co-defendants were previously convicted as a part of this case on charges of conspiracy to commit wire fraud and theft of government funds, mail fraud, money laundering, or related offenses:
- Alicia Quarterman, 40, of Fayetteville, Georgia;
- Tranesha Quarterman, 35, of Atlanta, Georgia, a former U.S. Army military policeman;
- Nikia Wakefield, 44, of Rockville, Maryland;
- Darryl Washington, 68, of Atlanta, Georgia;
- Adarin Jones, a/k/a Adrian Jones, 44, of Atlanta, Georgia;
- Katie Quarterman, 30, of Atlanta, Georgia;
- Victor Montgomery, 45, of Washington, D.C.;
- India Middleton, 36, of Accokeek, Maryland, a former Arlington County Sheriff’s Office deputy;
- Jeffrey Moffett, 54, of Jonesboro, Georgia, a former Fulton County Sheriff’s Office deputy; and
- Stephanie R. Cooper, 50, of Decatur, Georgia, a current Fulton County Sheriff’s Office deputy.
Sentencing for Katrina Lawson, 43, of Houston, Texas, is scheduled for July 6, 2023, at 10:00 a.m., before U.S. District Judge Timothy C. Batten, Sr. In determining the actual sentence, the Court will consider the U.S. Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Miguel R. Acosta, Alex Sistla, Radka Nations, and Chris Huber are prosecuting 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.
Smyrna resident sentenced for $3.3 million multi-state covid-19 Unemployment Insurance fraud schemeRead the Press Release
ATLANTA - Rowlando Hatter, Jr. has been sentenced for conspiring to submit false claims for COVID-related Unemployment Insurance benefits using the personal identifying information of more than 100 victims and causing state workforce agencies in five states to pay a combined $3,300,000 in fraudulently obtained benefits.
“The CARES Act provided vital assistance to unemployed Americans at the height of the pandemic,” said U.S. Attorney Ryan K. Buchanan. “Hatter diverted funds from this federal program and removed potential assistance crucial for citizens fighting to survive and to support their families.”
"Rowlando Hatter Jr. engaged in a scheme with his co-defendant, Clyde Parker Jr., to defraud multiple state workforce agencies, including the California Employment Development Department, by filing Unemployment Insurance (UI) claims in the names of unwitting individuals to fraudulently obtain UI benefits. We will continue to work with our law enforcement partners to safeguard the UI system from those who exploit these benefit programs,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor Office of Inspector General.
"It is disgraceful that unscrupulous individuals used a public health emergency and global pandemic for their own financial gain,” said HSI Atlanta Special Agent in Charge Katrina Berger. “HSI and our partners will continue to work diligently to prevent these crimes and hold the criminals accountable.”
“The defendant took advantage of a federal program designed to provide relief to those who were in need of economic assistance,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service. “The sentencing demonstrates our commitment to investigate and bring to justice individuals that choose to defraud others for their own financial gain.”According to U.S. Attorney Buchanan, the charges and other information presented in court: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law on March 27, 2020. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways. One way was the inclusion of a provision that provided temporary benefits for individuals who had exhausted their entitlement to regular Unemployment Insurance (“UI”) benefits. The Act also aided those who were ineligible for regular UI payments and were self-employed or had limited recent work history. Individuals applied for regular and pandemic-related UI benefits by submitting an online application to their state workforce agency.
Rowlando Hatter obtained the personal identifying information (“PII”) of unwitting victims. He used that information on applications that fraudulently requested COVID-related UI benefits. Hatter electronically submitted those applications to several states, including Georgia, California, Arizona, Maryland, and Michigan.
The state workforce agencies paid approved claims by issuing debit cards that were mailed to addresses in the metro-Atlanta area and in Michigan, and that were controlled by Hatter and co-conspirator Clyde Parker. Some of those addresses included UPS mailboxes opened by Hatter and Parker. Hatter and Parker used the debit cards at various ATMs to withdraw cash. Hatter kept the proceeds after paying Parker a fee.
As a result of the scheme, more than 200 claims were submitted to the various state workforce agencies between May 2020 and October 2020 using the PII of approximately 124 individuals who had no knowledge of the fraud. In total, the state workforce agencies paid approximately $3,300,000 on the bogus claims submitted in this fraud scheme.
Rowlando Hatter Jr., 32, of Smyrna, Georgia, has been sentenced by U.S. District Judge Steve C. Jones to five years, nine months in prison to be followed by three years of supervised release. Judge Jones also ordered Hatter to pay restitution in the amount of $2,930,410.50. Hatter was convicted of conspiracy to commit mail and wire fraud, and aggravated identity theft, after pleading guilty to those charges on December 13, 2022.
Clyde Parker, 32, of Troy, Michigan, was sentenced on January 20, 2023, to four years in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $596,348.50.
This case was investigated by the U.S. Department of Labor Office of the Inspector General, Homeland Security Investigations, and the U.S. Postal Inspection Service. Special assistance was provided by the Federal Bureau of Investigation – Sacramento, California and the Georgia Department of Labor.
Assistant U.S. Attorneys Tracia M. King and Thomas J. Krepp prosecuted the case.
This case was sponsored by the Georgia Unemployment Insurance Task Force. The Task Force is comprised of federal and state agencies throughout Georgia that are dedicated to combat COVID-related Unemployment Insurance Benefits Fraud.
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 U.S. Postal Service mail carrier sentenced for scheme to deliver drugs through the mailRead the Press Release
ATLANTA – Former mail carrier Robert Elliot Sheppard was sentenced to three years of prison for recruiting fellow mail carriers, and teaching them how to deliver packages of cocaine and marijuana while he was on disability leave.
“Sheppard accepted bribes from a drug trafficker to hand-deliver packages of narcotics on his mail route and even found carriers to replace him in his absence to ensure that he continued to profit from these crimes,” said U.S. Attorney Ryan K. Buchanan. “His greed resulted in dangerous drugs going into our community and ensnared two of his coworkers in a scheme of drug trafficking and bribery.”
“Sheppard put not only his future at risk, but the safety of residents on his routes in danger by agreeing to work with drug dealers,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The vast majority of Postal workers are honest. The FBI wants to make it clear if anyone decides to violate the public trust, we will dedicate significant resources toward finding and prosecuting them for their crimes.”
“The vast majority of U.S. Postal Service employees would never violate the public trust in this manner. But for those who do, the USPS Office of Inspector General, along with our law enforcement partners, will aggressively investigate these federal crimes to protect the sanctity of the U.S. Mail,” said Special Agent in Charge Jonathan Ulrich. “This sentence is a testament to the dedication of the investigative and legal teams and should send a strong message to any employee who thinks of conspiring with drug traffickers.”
“Sheppard recklessly recruited two mail carriers to deliver packages of drugs and was paid for doing so. Through his actions, Sheppard endangered the communities he served and betrayed the trust bestowed upon him by the USPS,” said DeKalb County District Attorney Sherry Boston. “The DeKalb County District Attorney’s Office, with its law enforcement partners, will continue to seek out and prosecute those who use their official positions for personal gain.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2015, Sheppard worked as a U.S Postal Service (USPS) mail carrier. In exchange for receiving bribes, Sheppard used his position to deliver five-pound packages of drugs through the U.S. mail to Dexter Frazier, a local drug trafficker who sold cocaine and marijuana.
In 2016, Frazier approached Sheppard about delivering additional drug packages. Sheppard was on disability leave from the USPS at that time and unable to intercept and deliver packages. But he offered to recruit other mail carriers to deliver drugs for Frazier in exchange for referral fees in the form of a mix of cash and marijuana. Frazier agreed to the arrangement.
Sheppard then contacted two coworkers, Tonie Harris and Clifton Lee. Sheppard explained to Harris and Lee that they could earn bribes for delivering packages of drugs along their mail routes, and taught them how to arrange the deliveries to avoid detection. Harris and Lee agreed to participate in the scheme, and Sheppard gave their phone numbers to Frazier. Frazier then coordinated the illegal deliveries with Harris and Lee. Harris and Lee each delivered three packages for Frazier believing they contained two kilograms of cocaine or 10 pounds of marijuana, per parcel.
U.S. District Judge Steve C. Jones sentenced Robert Elliott Sheppard, 61, of East Point, Ga., to three years in prison to be followed by three years of supervised release. He was also ordered to pay a fine in the amount of $30,000. Sheppard pleaded guilty to the offenses of conspiracy to possess with intent to distribute cocaine and marijuana, and unlawfully using the mail to commit that crime, on August 3, 2022.
Other participants in the scheme previously pleaded guilty and received the following sentences imposed by Judge Jones:
- Dexter Bernard Frazier, a/k/a “Dec,” 60, of Fairburn, Georgia, was sentenced on June 13, 2018, to nine years in prison to be followed by 10 years of supervised release. He was also ordered to pay restitution in the amount of $10,700. Frazier pleaded guilty to the offense of attempt to distribute cocaine and marijuana on March 6, 2018.
- Clifton Curtis Lee, a/k/a “Cliff,” 46, of Lithonia, Georgia, a letter carrier assigned to the Sandy Springs Post Office, was sentenced on June 18, 2018, to three years, 10 months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,800. Lee pleaded guilty to the offenses of attempt to distribute cocaine and bribery of public officials on February 28, 2018.
- Tonie Harris, 59, of Decatur, Georgia, a letter carrier assigned to the Sandy Springs Post Office, was sentenced on August 14, 2018, to three years, one month in prison to be followed by four years of supervised release. He was also ordered to pay restitution in the amount of $1,450. Harris pleaded guilty to the offenses of attempt to distribute cocaine and marijuana and bribery of public officials on March 20, 2018.
This was investigated by the Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General, and the DeKalb County District Attorney’s Office.
Assistant U.S. Attorney Garrett L. Bradford prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.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.
Florida man sentenced to nine years in federal prison for his role in international health care fraud schemeRead the Press Release
ATLANTA – Nagaindra Srivastav has been sentenced on conspiracy and kickback charges for his role in selling fraudulent doctors’ orders to his co-conspirators who used the orders to obtain more than $48 million in fraudulent payments from Medicare.
“Srivastav knowingly sold fake doctors’ orders to conspirators around the United States,” said U.S. Attorney Ryan K. Buchanan. “These orders were used to cause massive losses to the Medicare program and to taxpayers. Health care and telemedicine fraud is a high priority for the Department and this office, and we will vigorously pursue those who exploit our health care system for personal gain.”
“This defendant left a number of victims in his wake, including American taxpayers,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Health care costs are driven up when doctors and staff bill for unnecessary services and the FBI and our partners will continue to use every resource in our power to stop it.”
"This individual exploited the Medicare program for personal financial gain. Not only does this behavior undermine the integrity of federal health care programs; it also wastes valuable taxpayer dollars," said Tamala Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "As this case demonstrates, HHS-OIG and our law enforcement partners will not tolerate attempts to steal from federal health care programs and defraud the American taxpayer."
According to U.S. Attorney Buchanan, the charges and other information presented in court: Srivastav was the owner of B2B Apps Solutions (“B2B”), a Florida-based company. Through B2B, Srivastav and his co-conspirators created and operated an internet-based platform that individuals and businesses in the health care industry used for the purchase and sale of physician orders for Durable Medical Equipment (“DME”), such as ankle, back, knee, and leg braces.
Through B2B, Srivastav paid and received remuneration for the referral of federal health care business. To accomplish this scheme, Srivastav created a website, RepsHub, in which DME companies and others uploaded potential DME-patient information, called “leads,” which were generally obtained through telemarketing campaigns targeting beneficiaries for whom DME products could be billed. In addition, and in conjunction with his selling of physician orders, Srivastav also offered and sold leads, which he obtained through call centers controlled by himself and his co-conspirators.
Srivastav purchased the physicians’ orders that he sold to his customers from purported telemedicine companies based in the Philippines and Pakistan. These orders lacked medical necessity, and Srivastav was notified on numerous occasions that the purported authorizing physician had not actually spoken with the patient, signed the order, or prescribed the braces. The physicians’ orders that Srivastav sold were used to obtain more than $48 million in fraudulently obtained payments from Medicare.
Nagaindra Srivastav, 58, of Tampa, Florida, has been sentenced by U.S. District Judge Steve C. Jones to nine years in prison, to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $48,150,692.49. On October 19, 2022, Srivastav was convicted of conspiracy to pay and receive kickbacks, in violation of Title 18 United States Code, Section 371, and solicitation and receipt of kickbacks, in violation of Title 42, United States Code, Section 1320a-7b, after he pleaded guilty.
Judge Jones also sentenced Brian Tisdale, 46, of Amory, Mississippi. Tisdale was one of Srivastav’s customers who operated two DME companies in Mississippi and Georgia. Tisdale received a sentence of three years and six months in prison, to be followed by three years of supervised release. Tisdale was also ordered to pay restitution in the amount of $4,675,093.80. On December 16, 2022, Tisdale was convicted of conspiracy to commit health care fraud and to pay kickbacks, in violation of Title 18, United States Code, Section 371, after he pleaded guilty.
This case was investigated by the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
Assistant U.S. Attorney David A. O'Neal 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 investment advisor pleads guilty to multimillion-dollar Ponzi schemeRead the Press Release
ATLANTA - John J. Woods, the former President of Southport Capital and manager of Horizon Private Equity, III, LLC, has pleaded guilty to operating a Ponzi scheme that defrauded hundreds of investors out of more than $25 million.
“Woods promised investors low-risk investments, profitable returns, and a diversified portfolio, all while secretly using money raised from new investors to primarily pay earlier investors,” said U.S. Attorney Ryan K. Buchanan. “Investors should respond with caution to financial offers that sound too good to be true and are cloaked in the promise of low risk and high rates of return.”
“It is the FBI’s hope that today’s guilty plea will provide some sense of relief to those victims that have suffered so much by Mr. Woods greed- fueled conduct,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This case serves as another reminder that investors need to be careful, and do their research, when deciding who to trust with their hard-earned money.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Woods operated a Ponzi scheme until being shut down by the U.S. Securities and Exchange Commission in 2021. Woods solicited investors to invest in a fund called, “Horizon Private Equity.” Woods, and other investment adviser representatives acting under his direction, promised potential Horizon investors rates of return of six to seven percent on their investment and that Horizon would earn a return by investing their money in, for example, government bonds, stocks, or small real estate projects. Woods and his confederates also assured investors that Horizon investments carried minimal risk and were safe because Horizon had a diverse portfolio.
Contrary to these representations, the money received from new investors was not invested in a diverse portfolio; and money collected from new investors was used largely to pay returns to previous investors. In fact, Horizon was able to pay guaranteed returns to investors only by raising and using new investor money. As a part of the scheme, Woods caused Horizon to issue monthly statements to investors that fraudulently misled investors by failing to disclose that the Horizon investments had not generated a positive percentage of return sufficient to cover the interest.
As of the end of July 2021, Horizon investors were owed more than $110,000,000 in principal investment amounts. And over 400 investors, residing in at least 20 different states, held investments in Horizon. Losses are still being calculated, but investors have lost more than $25 million because of Woods’s scheme to defraud.
Sentencing for John J. Woods, 58, of Marietta, Georgia, has not yet been scheduled. He pleaded guilty to a criminal information charging a single offense of wire fraud, in violation of Title 18, U.S. Code, Section 1343.
This case is being investigated by the Federal Bureau of Investigation. The SEC provided valuable assistance. The SEC’s separate civil case is SEC v. Woods et al., No. 1:21-CV-03413-SDG (N.D. Ga.).
Assistant U.S. Attorneys Angela Adams and Stephen H. McClain 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.
Atlanta man sentenced to federal prison in connection with a multimillion-dollar international cyber and fraud schemeRead the Press Release
ATLANTA - Christian Akhatsegbe has been sentenced for wire and computer fraud conspiracy, access device fraud, and aggravated identity theft related to a multi-million-dollar cyber-fraud scheme perpetrated through email phishing, credential harvesting, and invoice fraud. His brother, Emmanuel Aiye Akhatsegbe, who is believed to be residing in Nigeria, was also charged in the scheme and remains a fugitive.
“The far-reaching scope of this defendant’s criminal conduct is astonishing,” said U.S. Attorney Ryan K. Buchanan. “Hiding behind several aliases, Christian Akhatsegbe and his conspirators stole employee credentials, unlawfully accessed computers, and attempted to scam companies out of more than 12 million dollars. And not content to limiting his criminal conduct to these schemes, Akhatsegbe also engaged in hundreds of thousands of dollars of COVID-19-related loan fraud. The relentless efforts of determined corporate-law enforcement partnerships, in conjunction with excellent investigative work across the globe, exposed Akhatsegbe’s crimes and he will now serve a sentence in federal prison as well as pay restitution to his victims.”
“Operation Dark Nimbus is a perfect example of how the FBI won’t let geographic boundaries stop us from pursuing and prosecuting anyone who inflicts tremendous financial pain to U.S. citizens,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “These criminals felt like they were safe hiding behind their computers and aliases. Hopefully this sentence and the ultimate capture of Emmanuel sends a message to anyone who thinks they can prey on our citizens and get away with it.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between approximately August 2019 through November 2020, Christian Akhatsegbe, together with his brother, Emmanuel Aiye Akhatsegbe, and others, engaged in spear phishing, credential harvesting, and business email compromise schemes, which involved sending phishing emails to employees of companies and agencies in the United States and the United Kingdom using stolen SendGrid email marketing accounts, stealing and harvesting the employee access credentials on computer servers, using the stolen credentials to access the victims’ computers, and then sending fraudulent invoices to victims requesting payment of funds to bank accounts in Hong Kong.
In November 2019, for example, an employee of a company in the United Kingdom received a phishing email, which resulted in their credentials being logged, stolen, and later stored on a computer server that was accessed and maintained by Christian Akhatsegbe and his conspirators. Using the stolen credentials, the conspirators sent an email to another employee of the company that appeared to originate from one of the company’s vendors. The email attached a fraudulent invoice in the amount of $434,383.45 with wiring instructions to a bank in Hong Kong. The victim company later paid the fraudulent invoice and wired the funds to Hong Kong.
Similarly, in December 2019, using credentials stolen from a Massachusetts victim company employee, Christian Akhatsegbe and his conspirators sent an email to another employee of the company that appeared to originate from one of the company’s vendors. The email attached a fraudulent invoice in the amount of $498,000 and requested that the victim send payment to a bank in Hong Kong. The victim paid the invoice, together with a second invoice in the same amount, wiring a total of $996,000 to a bank account in Hong Kong.
In January and April 2020, Christian Akhatsegbe and his conspirators perpetrated a similar scheme against two other United Kingdom-based companies, sending fraudulent invoices in the amount of $498,000 and $980,000, respectively. But these victim companies recognized the invoices as fraudulent and did not remit payment. In total, the conspirators sent victim companies fraudulent invoices in the amount of $12,861,290.59. Of this amount, victims paid invoices in the total amount of $2,268,329.69.
The investigation further revealed that Christian Akhatsegbe utilized stolen identities to submit 40 fraudulent applications for COVID-19 Economic Injury Disaster loans in the amount of $2,905,100 during the time period of July 2020 to September 2020. The U.S. Small Business Administration in turn approved loans in the amount of $220,700.
Christian Akhatsegbe, 36, of Atlanta, Georgia, has been sentenced to seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,001,083.45. Akhatsegbe was convicted on these charges on April 12, 2022, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation. Valuable assistance has also been provided by Microsoft Corporation’s Digital Crimes Unit and the City of London Police in the United Kingdom.
Assistant U.S. Attorney Michael Herskowitz and Natalie Tecimer, Trial Attorney of the Department of Justice, Criminal Division, Computer Crime & Intellectual Property Section, 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 man sentenced to 20 years in federal prison for hate crime shootingRead the Press Release
ATLANTA – Larry Edward Foxworth has been sentenced to federal prison for shooting into Clayton County, Georgia, convenience stores to kill those inside based upon their race and ethnicity.
“Foxworth used a firearm to commit a brazen and heinous hate crime,” said U.S. Attorney Ryan K. Buchanan. “He fired repeatedly into convenience stores in his effort to kill those inside based solely on the color of their skin. This abhorrent act of violence and intimidation left the victims, their families, and the community traumatized, and merits the prison sentence Foxworth received. The Department of Justice and our federal law enforcement partners will continue to vigorously prosecute hate crimes.”
“The defendant fired a gun into a store wanting to kill people who he thought were Black or Arab,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Hate-fueled violence not only traumatizes the victims, but it threatens and intimidates an entire community. This sentence demonstrates the importance of holding accountable those who commit racially-motivated violence. The Justice Department is committed to aggressively prosecuting those individuals who carry out hate crimes in our country.”
“Hopefully this lengthy sentence proves that the FBI will not tolerate intimidation and violence against anyone because of their race or ethnicity,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI’s Civil Rights Program will continue to use every resource available to ensure criminals, like Foxworth, that commit bias-motivated violent crimes are held accountable and removed from our streets.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: At approximately 2:35 a.m. on July 30, 2021, Foxworth fired numerous rounds from a Glock pistol through a window and a door of a gas station convenience store located in Jonesboro, Georgia. Just minutes later, at approximately 2:57 a.m., he again fired multiple rounds from the same handgun through the windows and door of a different convenience store located nearby. Both stores were open and occupied when Foxworth fired the shots, but no one was hit by the gunfire.
Clayton County Police Department officers arrested Foxworth shortly after the second attack. After his arrest, Foxworth told officers that he had targeted the stores because he wanted to kill Arab and Black people, and he believed that there were people inside the stores who belonged to those groups. Foxworth expressed hope that he had killed his targets, and professed belief in white supremacist ideology.
Larry Edward Foxworth, 48, of Jonesboro, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to 20 years in prison, to be followed by five years of supervised release. He was also ordered to pay restitution of $1,000. On December 16, 2022, Foxworth pleaded guilty to the offense of hate crime based on actual or perceived race or color, in violation of Title 18, United States Code, Section 249(a), and the offense of discharging a firearm during the commission of that crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii).
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Brent Alan Gray and Trial Attorney Alec C. Ward of the Department of Justice’s Civil Rights 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.
Georgia White Supremacist Sentenced for Federal Hate Crime for Racially-Motivated ShootingsRead the Press Release
A federal judge in Atlanta today sentenced Larry Edward Foxworth, 48, of Jonesboro, Georgia, to 240 months in prison for shooting into two convenience stores attempting to kill those inside because he believed they were Black or Arab.
According to court records, at approximately 2:35 a.m. on July 30, 2021, Foxworth fired numerous rounds from a Glock pistol through a window and door of a gas station convenience store located in Jonesboro, Georgia. Just minutes later, at approximately 2:57 a.m., he again fired multiple rounds from the same handgun through the windows and door of a different gas station convenience store located nearby. Both stores were open and occupied when Foxworth shot into the businesses. No one was injured during either shooting.
Clayton County Police Department officers arrested Foxworth shortly after the second attack. After his arrest, Foxworth told officers that he had targeted the stores because he wanted to kill Arab and Black people, and he believed that there were people inside the stores who belonged to those groups. Foxworth expressed hope that he had killed his targets, and professed belief in white supremacist ideology.
“The defendant fired a gun into a store wanting to kill people who he thought were Black or Arab,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Hate-fueled violence not only traumatizes the victims, but it threatens and intimidates an entire community. This sentence demonstrates the importance of holding accountable those who commit racially-motivated violence. The Justice Department is committed to aggressively prosecuting those individuals who carry out hate crimes in our country.”
“Foxworth used a firearm to commit a brazen and heinous hate crime,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “He fired repeatedly into convenience stores in his effort to kill those inside based solely on the color of their skin. This abhorrent act of violence and intimidation left the victims, their families, and the community traumatized, and merits the prison sentence Foxworth received. The Department of Justice and our federal law enforcement partners will continue to vigorously prosecute hate crimes.”
“Hopefully this lengthy sentence proves that the FBI will not tolerate intimidation and violence against anyone because of their race or ethnicity,” said Special Agent in Charge Keri Farley of FBI Atlanta Field Office. “The FBI’s Civil Rights Program will continue to use every resource available to ensure criminals, like Foxworth, that commit bias-motivated violent crimes are held accountable and removed from our streets.”
The FBI Atlanta Field Office and the Clayton County Police Department investigated the case.
Assistant U.S. Attorney Brent Alan Gray for the Northern District of Georgia and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section prosecuted the case.
For more information and resources on the department’s efforts to combat hate crimes, visit justice.gov/hatecrimes.
Fentanyl distributors sentenced to federal prisonRead the Press Release
ATLANTA - Geno Demons, Jr., and Raymond Dexter Hicks, have been sentenced for conspiracy to possess with the intent to distribute more than 400 grams of fentanyl.
“Demons and Hicks were involved in the distribution of large quantities of fentanyl, a drug that is steadily funneling poison into our communities,” said U.S. Attorney Ryan K. Buchanan. “These sentences reflect the societal danger posed by this illicit drug and the seriousness with which the courts treat those who traffic it.”
“These two defendants directly contributed to the nation’s ongoing opioid epidemic by pushing the dangerous drug fentanyl,” said Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division. “They’ve now been brought to justice and will face significant time behind bars.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In January 2021, the DEA, using an undercover agent, met with Demons and Hicks, who were attempting to sell two kilograms of fentanyl. Special agents arrested the men following the meeting. The investigators recovered loaded pistols from both men during their arrests, as well as two kilograms of fentanyl in Hicks’ car. The investigation revealed that Demons was working for a Mexico-based source of supply and distributing kilogram quantities of fentanyl with Hicks. Both men admitted to conducting multiple additional drug transactions as part of the charged conspiracy.
Geno Demons, Jr., 38, of Stockbridge, Georgia, was sentenced on March 9, 2023, by U.S. District Judge Mark H. Cohen, to 12 years, seven months in prison, to be followed by five years of supervised release. Demons pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, in violation of Title 21, United States Code, Section 846, on November 14, 2022.
Raymond Dexter Hicks, 59, of Stockbridge, Georgia, was sentenced by U.S. District Judge Thomas W. Thrash, Jr., on January 17, 2023, to six years, six months in prison, to be followed by five years of supervised release. Hicks also pleaded guilty to the offense of conspiracy to possess with intent to distribute a controlled substance, in violation of Title 21, United States Code, Section 846, on July 23, 2021.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Cal Leipold prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.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.
Former Sheriff Victor Hill sentenced to federal prison for civil rights violationsRead the Press Release
ATLANTA – Former Clayton County Sheriff Victor Hill has been sentenced for violating the civil rights of six pre-trial detainees at the Clayton County, Georgia, Jail by ordering the detainees strapped into restraint chairs for hours without legal justification.
“This district is fortunate to be served by thousands of law enforcement officers who bravely perform their duties with great honor, but former Sheriff Victor Hill is not one of them,” said U.S. Attorney Ryan K. Buchanan. “Former Sheriff Victor Hill chose to disregard the welfare of some within his control. The evidence was clear in this case, there was absolutely no justification for Hill to order pretrial detainees to be strapped into restraint chairs for hours on end. These men suffered painful injuries. Without question, his actions not only hurt the victims but eroded the public’s trust in law enforcement. Hill brazenly abused his power and has been held accountable by a jury and a judge and will go to federal prison. Hill rejected one of the most basic tenets of law enforcement: that the U.S. Constitution forbids an officer – even a sheriff – from using unreasonable force.”
“All of our communities pay a significant price when law enforcement officials abuse their power. We hope this sentence brings some closure to the victims of civil rights violations,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentencing should send a strong message to any law enforcement officer who wants to follow their own version of the law. Badges and guns don’t come with the authority to ignore the Constitution. They come with the responsibility to protect it.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: At the time Hill committed these crimes, his Sheriff’s Office “Inmate Restraint Chair Policy” stated that, “a restraint chair may be used by security staff to provide safe containment of an inmate exhibiting violent or uncontrollable behavior and to prevent self-injury, injury to others or property damage when control techniques are not effective.” Consistent with the Fourteenth Amendment’s Due Process Clause, the policy emphasized that use of a restraint chair would “never be authorized as a form of punishment.” Hill flagrantly disregarded these policies, and a jury convicted him of violating the constitutional rights of the following victims:
Victim R.P.
On December 8, 2019, Clayton County Police Department (CCPD) responded to a robbery in progress. An officer saw R.P. standing with a firearm at the driver’s window of a car occupied by two men. R.P. ran into his apartment when he saw the officer. Officers used a patrol car’s public address system to convince R.P to exit his apartment. R.P. eventually complied with the commands and was taken into custody without further incident. R.P. told officers that he believed the men in the car had come there to rob him. R.P. was charged with aggravated assault and possession of a firearm by a convicted felon.
A CCPD officer transported R.P. to the Clayton County Jail. According to the officer, R.P. offered no resistance and caused no trouble after he was arrested.
According to R.P. and other trial witnesses, when R.P. arrived at the jail, he was immediately taken to a holding cell with about 15 other inmates. R.P. heard people yelling, “Sheriff on deck.” Hill, escorted by the Clayton County Sheriff’s Office (CCSO) Scorpion Response Team (SRT) arrived at the cell. Hill questioned R.P. about the incident which led to his arrest. When R.P. attempted to explain, Hill ordered the SRT to strap R.P. into a restraint chair which was then wheeled into the jail’s medical unit. While R.P. was strapped in the chair, R.P. could feel his blood pressure rising and his hands swelling. R.P. yelled for help and urinated on himself. R.P. spent at least four hours in the chair and the restraints cut and scarred one of his wrists.
Victim D.B.
On February 2, 2020, deputies of the CCSO’s vice operations obtained a search warrant for D.B.’s home in Hampton, Georgia, based on incriminating evidence found in trash outside the residence. While CCSO was waiting to execute the search warrant, D.B. left his home and drove away at a high rate of speed. Deputies stopped D.B. and detained him after finding a small amount of marijuana in his car. During the search of D.B.’s home, deputies allegedly found several stolen firearms. D.B. sat in the back of a patrol car for several hours while deputies searched his home. D.B. caused no trouble for the deputies during his detention at the scene or during the drive to the jail.
According to D.B. and other witnesses, when D.B. arrived at the jail, he was put in a holding cell. Within minutes, Hill and several members of the SRT arrived. Hill asked D.B. questions about his alleged offenses until D.B. stated he no longer wanted to answer Hill’s questions. At that point, Hill ordered D.B. to be strapped into a restraint chair. D.B. was handcuffed behind his back and strapped in the chair for approximately seven hours. The restraints were so tight that D.B. suffered cuts to both wrists which caused him to bleed. The scars on D.B.’s wrists remain visible more than three years later.
Victim J.A.
In February 25, 2020, a man identified as J.A. was accused of assaulting two women during a dispute at a Clayton County grocery store several weeks earlier. He was arrested by Forest Park, Georgia, Police Department officers and CCSO deputies without incident. According to Clayton County records, J.A. was unarmed, not under the influence of drugs, and offered no resistance. A short time later, J.A. was booked into the Clayton County jail as a pretrial detainee. During the booking process, J.A. was escorted by a group of officers and SRT members to the fingerprinting area where Hill confronted J.A. A deputy recorded the interaction with a cell phone.
Hill asked J.A. what he had been doing in Clayton County on the day of the alleged assault. J.A. replied, “It’s a democracy, sir. It’s the United States.” Hill snapped back, “No, it’s not. Not in my county.” When J.A. asked whether he was entitled to a fair and speedy trial, Hill replied, “Roll that chair around here. You stay out of Clayton County, you understand me? You sound like a dummy.” When J.A. asked again whether he was entitled to a fair and speedy trial, Hill replied, “You entitled to sit in this chair, and you’re entitled to get the hell out of my county and don’t come back. That’s what you’re entitled to. You sound like a damn jackass. Don’t you ever put your hand on a woman like that again. You’re fortunate that wasn’t my mother or grandmama or you wouldn’t be standing there. Now, sit there and see if you can get some damn sense in your head.”
During J.A.’s interaction with Hill, J.A. was surrounded by law enforcement personnel, was handcuffed most of the time, and never posed a threat to anyone. Despite those facts, J.A. was strapped into a restraint chair and left there for hours per Hill’s orders.
Victim C.H.
On April 26, 2020, C.H., who had just turned 17 years old, allegedly vandalized his family home during an argument with his mother. Shortly thereafter, a CCSO deputy apprehended C.H. near his home without incident and turned C.H. over to the custody of the CCPD. Clayton County records indicate C.H. was unarmed, not under the influence of drugs, and offered no resistance.
The deputy, a CCSO supervisor, then spoke with Hill on the phone, texted Hill a photograph of C.H. handcuffed and seated in a CCPD vehicle, and had the following text exchange with Hill:
Hill: “How old is he?”
Deputy: “17”
Hill: “Chair”
A few hours later, early on April 27, 2020, C.H. was booked into the Clayton County jail as a pretrial detainee pending trial on charges stemming from the incident at his home. Although C.H. had been compliant with law enforcement during and after his arrest and never posed a threat to anyone, he was strapped into a restraint chair and left there for hours per Hill’s orders.
Victim G.H.
In April 2020, G.H. and a CCSO deputy had a payment dispute over some landscaping work G.H. did for the deputy in Butts County, Georgia. The work and dispute were unrelated to the deputy’s employment with CCSO. After learning about the dispute, Hill called G.H. on April 23, 2020. During the call, Hill identified himself as the Clayton County Sheriff and asked G.H. why he was harassing his deputy. G.H. replied that Hill should tell his deputy to pay his bill and added, “you can go f--- yourself.” Unsure whether the caller had actually been the Clayton County Sheriff, G.H. used FaceTime to call back several times until Hill answered and removed a face mask he was wearing. After the FaceTime calls, Hill texted G.H., warning him not to call or text anymore. G.H. responded via text, “So this is Victor Hill correct[?]” Hill responded with a second text warning for G.H. not to call or text him anymore. Although G.H. did not call or text again, Hill instructed a CCSO deputy to swear out an arrest warrant against G.H. for harassing communications.
The next day, April 24, 2020, Hill texted G.H., “[T]his is Sheriff Victor Hill. We have a warrant for your arrest. Would you like to turn yourself in, or have my Deputies find you?” G.H. did not respond. The next morning, April 25, 2020, Hill again texted G.H., “My Deputies are actively looking for you. We have not and will not agree for you to turn yourself in when you want to. Turn yourself in today.” Meanwhile, Hill had sent a fugitive squad armed with handguns and AR-15 rifles to Butts County to arrest G.H. on the misdemeanor arrest warrant.
After retaining a lawyer, G.H. turned himself in at the CCSO during the evening of April 27, 2020. Clayton County records indicate that G.H. was unarmed, not under the influence of drugs, and offered no resistance. Shortly thereafter, G.H. was booked into the Clayton County jail as a pretrial detainee pending trial on the harassing communications charges. Surveillance footage from the jail shows G.H. interacting with jail personnel for more than half an hour, during which time he appeared cooperative and compliant before Hill arrived and confronted him. Immediately upon Hill’s arrival, although G.H. was surrounded by law enforcement personnel, remained compliant, and never posed a threat to anyone, G.H. was strapped into a restraint chair and left there for at least four hours per Hill’s orders.
Victim W.T.
On May 11, 2020, a Georgia State Patrol (GSP) trooper observed W.T. driving at 85 miles per hour on 1-75 in Clayton County. The trooper initiated a traffic stop and W.T. immediately pulled his vehicle over to the shoulder. W.T. presented a suspended Florida driver’s license. The trooper took W.T. into custody and drove W.T. to the Clayton County Jail without incident.
According to W.T. and other witnesses, when W.T. arrived at the jail, he was instructed by officers to face the wall. In response, W.T. turned and rested his head on the wall. Hill saw this and it angered him. Hill ordered that W.T., who was restrained in handcuffs, be strapped into a restraint chair. Members of the SRT assisted deputies to strap W.T. into the chair where he remained for approximately five hours and suffered significant pain. W.T. urinated three times while confined to the chair.
Victor Hill, 58, was sentenced by U.S. District Judge Eleanor L. Ross to 18 months in federal prison. After Hill serves his prison sentence, he will be on supervised release for six years, during which time he cannot have any role in law enforcement. Hill was found guilty by a jury on October 26, 2022.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Brent Alan Gray and Bret R. Hobson 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 ticketing specialist pleads guilty to defrauding Delta Air LinesRead the Press Release
ATLANTA - Aquil Muhammad, who sold fraudulently issued Delta Air Lines tickets, has pleaded guilty to a charge of conspiracy to commit wire fraud.
“Muhammad exploited his position of trust at Delta to enrich himself by selling fraudulent tickets,” said U.S. Attorney Ryan K. Buchanan. “He was even bold enough to use his personal email address as the contact person for some of the illegal transactions.”
“With this guilty plea, Muhammad acknowledges his criminal wrongdoing and can now be held accountable for his selfish actions,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will always strive to expose corrupt employees that take advantage of their trusted positions of employment.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Aquil Muhammad worked as a Delta Air Lines ticketing specialist in Minneapolis, Minnesota. In 2016, he began issuing no-fare tickets to various individuals, including family members and other acquaintances.
Muhammad issued non-revenue tickets without a corresponding Non-Cash Incentive Certificate. That is, he issued free tickets, without compensation to Delta. These non-revenue tickets generated tax liability to Delta even though they had no associated cost. Muhammad also created fraudulent Transportation Credit Vouchers and Delta Travel Vouchers to cover the required taxes.
Muhammad issued these non-revenue tickets from late 2016 through December 2017. He ultimately issued more than 230 tickets, with a lost revenue total of approximately $447,000. Each of the tickets were issued using Muhammad’s unique agent security identifier. In addition, many of the tickets included Muhammad’s personal email address as the contact for the passenger. He would sell these free tickets, often being paid through Square.
Sentencing for Aquil Muhammad, 36, of Minneapolis, Minnesota, is scheduled for June 7, 2023, at 1:30 p.m., before U.S. District Judge Victoria M. Calvert.
This case is being investigated by the Federal Bureau of Investigation.
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.
Georgia Cyber Fraud Task Force marks two years addressing the laundering of cyber-enabled fraud proceeds in the metro-Atlanta areaRead the Press Release
ATLANTA – Cyber-enabled crimes cost Georgia residents almost $144 million in 2021, with losses attributed to business email compromise schemes, investment scams, and confidence or romance scams topping the list of frauds. Nationally, these losses are in the billions. The Georgia Cyber Fraud Task Force, which investigates and prosecutes these cases, comprises local, state, and federal agencies throughout Georgia, committed to sustained community outreach, as well as training for law enforcement and prosecutors to better respond to cyber-enabled crime.
Cyber-fraudsters perpetrate these scams by utilizing a network of participants who each play an integral part in the success of the scam. One critical actor in these schemes is the “money mule”: the party responsible for opening a U.S. bank account, usually a business account, and accepting proceeds from a variety of frauds and forwarding the funds as directed, often to accounts overseas. The mission of the Georgia Cyber Fraud Task Force (CFTF) is to identify quality leads for investigation of suspected money mules in the Atlanta area and reduce the amount of time and resources necessary to impact those mules through judicial intervention.
Money mules act as a sort of contractor in the economy of cyber-enabled fraud, rather than the perpetrator interacting with a victim. The money flowing into money mule accounts represents proceeds from a variety of fraud types and numerous victims, and the money may flow out to second-tier recipients who remain unaware of one another. The anonymity with which these fraud schemes operate works to the advantage of the perpetrators. The sheer volume of victims who funnel money into a mule’s account – who may operate more than a dozen bank accounts – poses a daunting obstacle for law enforcement.
Untangling the web of bank accounts associated with a single mule, and the victims who deposited money into those accounts, may require more than a year of law enforcement time and resources. But focusing investigative efforts on identifying and removing money mules from fraud operations makes it harder for fraudsters to direct victim funds into U.S. bank accounts. Impacting the ability of fraudsters to move stolen funds reduces the success of these fraud schemes.
Most law enforcement activity is initially victim-centric; a victim contacts their local law enforcement agency to report that they have been defrauded. But in cyber-enabled fraud schemes the money and the person who received it are rarely in the same location, or the same state, as the victim who reports the crime. Typically, law enforcement traces the funds to an out-of-state account and then must pass the lead off to law enforcement in that jurisdiction and hope that the investigation continues. The CFTF is addressing this investigative challenge in two ways: first, by proactively dealing with money mules in our area of responsibility, and second, by taking referrals from law enforcement across the country who have identified funds from their local victims that have landed in bank accounts in our area.
During the past year, the CFTF has continued to refer leads to local and state law enforcement for investigation of money mules. These leads originate from victim complaints made to the FBI’s Internet Crime Complaint Center, known as “IC3,” as well as law enforcement leads from around the country through the StopTheMuleGa initiative.
- Bernard Kaba, 62, of Morrow, Georgia, was sentenced on August 30, 2022, to 10 years of probation and ordered to pay $50,000 in restitution to victims after pleading guilty to theft by taking in connection to his receipt of business email compromise (BEC) fraud proceeds.
- Borin Khoun, 45, of Lawrenceville, Georgia, was sentenced on July 27, 2022, after pleading guilty to two indictments charging him with theft in connection with his receipt of fraud proceeds from romance and inheritance scams. Khoun was sentenced to 15 years, with the first 90 days to be served in custody followed by nine months of work release, and the remainder on probation. Khoun was also fined $1,500 and ordered to pay $234,479.58 in restitution to victims.
- Olayemi Fadipe, 41, of Snellville, Georgia, was charged by accusation for theft by receiving in connection with his participation in a romance/confidence fraud scheme.
- Stella Mae Zebic, 43, of Brookhaven, Georgia, was indicted in DeKalb County, Georgia, on January 17, 2023, on charges of theft by taking, computer crimes, and identity fraud in connection with her participation in a BEC scheme.
- Jaysen Robinson, 24, of Dunwoody, Georgia, was indicted in Fulton County, Georgia, on December 6, 2022, on charges of theft by taking and money laundering in connection with his participation in a BEC scheme that targeted a law firm.
- Augustus Edmund, 62, of Conyers, Georgia, was indicted in Hall County, Georgia, on February 15, 2023, on two counts of theft by taking for his role in a BEC scheme. The indictment alleges that he took over $200,000 from a non-profit organization in August 2021.
- Ugochinyere Anazodo, 44, of Suwannee, Georgia, was indicted in Gwinnett County, Georgia, on February 15, 2023, on charges of racketeering, theft, and money laundering in connection with his participation in several cyber-enabled fraud schemes, including romance and confidence frauds and a BEC fraud that resulted in a loss to the Georgia Department of Transportation.
- Chigbogwu Nnamani, 53, of Marietta, Georgia, was indicted in Gwinnett County on February 8, 2023, for theft by taking in connection with his participation in a BEC scheme.
Members of the public should keep in mind that indictments contain only allegations against the individual against whom the indictment is obtained. A defendant is presumed innocent until proven guilty, and it will be the government’s burden at trial to prove the defendant guilty beyond a reasonable doubt of the allegations contained in the indictment.
If you have been the victim of a cyber-enabled fraud scheme such as a business email compromise or a confidence fraud, report the fraud to your bank, your local law enforcement agency, and the Internet Crime Complaint Center at www.IC3.gov.
Business email compromise schemes rely on victims trusting their email communications are secure. If you are sending or receiving large sums of money, confirm the transaction instructions in person or in a phone call that you initiate. If you are engaged in online relationships, beware of individuals who make excuses not to meet in person and any requests for money.
You can find more information about online scams and how to protect yourself by visiting www.ic3.gov or the Georgia Attorney General’s Consumer Protection Division www.consumer.georgia.gov.
To help small businesses, non-profits, and places of worship safeguard their data and devices, the Attorney General’s Consumer Protection Division created Cybersecurity in Georgia. This comprehensive guide includes critical tips and information on the different types of cyber threats, protecting your data and network, training employees about cybersecurity, planning for and responding to a security breach, cyber insurance, and more. Download your free copy here.
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.