Northern District of Georgia
Press releases recorded for this federal judicial district.
Repeat sex offender sentenced to twenty-two yearsRead the Press Release
ATLANTA - Justin Levi Marino has been sentenced for the possession and distribution of child pornography and for violating the conditions of his supervised release for a prior child exploitation federal conviction.
“Child pornography is an especially heinous crime involving those who exploit and abuse children and infants to produce these disturbing and horrific images, and the individuals who create the demand for this vile material by possessing and distributing it,” said U.S. Attorney Ryan K. Buchanan. “The collaborative efforts of the FBI, U.S. Probation Office, and the U.S. Marshals Service made it possible to stop this predator from continuing to victimize more children and their families.”
“Each time Marino viewed or distributed the unconscionable images of innocent young children, they were re-victimized,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The fact he is a repeat sex offender only underscores why we strive every day to protect our children and will continue to use every law enforcement resource available to identify and prosecute individuals who exploit them in such a manner.”
“Due to the hard work of multiple components of the Department of Justice, Justin Levi Marino is no longer able to menace society and will never again victimize children with his deviant behavior. Child predators are a scourge on our community, and the U.S. Marshals Services considers it amongst our highest priorities to remove these offenders from our communities,” said Thomas E. Brown, U.S. Marshal for the Northern District of Georgia.
According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2007, the U.S. District Court for the Northern District of Georgia sentenced Justin Levi Marino to 12 years and six months for using a computer to entice a minor to engage in sexual activity.
A little more than one year after completing this sentence, in June 2020, during the initial lockdown stages of the global COVID-19 pandemic, a concerned citizen contacted the Atlanta Police Department on the suspicion that a 16-year-old child, who had been reported missing in another state, was living with Marino in his apartment in the Atlanta area. The U.S. Probation Office for the Northern District of Georgia was notified and immediately obtained an arrest warrant based on Marino’s suspected violation of his supervised release condition prohibiting contact with a child under the age of 18 years old. The U.S. Probation Office and the U.S. Marshals Service for the Northern District of Georgia recovered the minor and arrested Marino at his apartment.
Following Marino’s arrest, the FBI recovered hundreds of images of child pornography and chats on various social media applications from his cell phone. Investigators also established that Marino distributed images of child pornography to other users.
Justin Levi Marino, 45, of Poland, Ohio, was sentenced to 22 years in prison to be followed by a lifetime term of supervised release. Marino pleaded guilty to the charges of possession and distribution of child pornography on August 26, 2022.
This case was investigated by the Federal Bureau of Investigation, and the U.S. Marshals Service.
Assistant U.S. Attorney Sekret T. Sneed 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 embassy employee sentenced to imprisonment for domestic violence against his spouseRead the Press Release
ATLANTA - - Ilirjan Shema has been sentenced for the violent assault of his spouse, a U.S. diplomat serving overseas in the U.S. embassy housing in Moldova.
“Domestic violence is physical abuse with the potential for generational harm,” said U.S. Attorney Ryan K. Buchanan. “There is never an excuse for this behavior. Holding these perpetrators accountable is an important function of the justice system and one that this office takes seriously.”
“As the lead agency in this investigation, the Diplomatic Security Service demonstrated its strong commitment to making sure those who commit domestic violence against diplomatic personnel face consequences,” said Andrew Wroblewski, Assistant Director for Domestic Operations, U.S. Department of State’s Diplomatic Security Service (DSS). “Our strong relationship with our law enforcement partners and the U.S. Attorney’s Office continues to be essential in the pursuit of justice for all victims.”
According to the charges and information presented in court: Ilirjan Shema accompanied his family to Chisinau, Moldova, where his spouse, an employee of the U.S. Department of State, was assigned to work as a Foreign Service Officer at the U.S. Embassy. While in Moldova, Shema obtained a family member position to work at the Embassy.
On April 10, 2021, while inside their official residence provided by the embassy, Shema attacked his wife, striking her, throwing her to the ground, and strangling her in the presence of the couple’s two children. The attack resulted in physical injuries. Shema was subsequently arrested in Aug. 5, 2021, when he traveled from Albania to Atlanta, Georgia.
Ilirjan Shema, also known as “Lily,” age 46, of Atlanta, Georgia, was sentenced by U.S. District Judge Stephen Grimberg to one year, six months in prison to be followed by three years of supervised release. He was also ordered to pay restitution to the victim and to participate in a program for domestic violence upon release from prison. Shema was convicted of the charge of assault, in violation of Title 18, United States Code, Section 2261(a)(1), on November 8, 2023, after he pleaded guilty.
This case was investigated the U.S. Department of State’s Diplomatic Security Service (DSS) Office of Special Investigations.
Assistant U.S. Attorney Stephanie Gabay-Smith and Trial Attorney Brian Morgan of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
CEO of Atlanta engineering firm pleads guilty to failing to pay payroll taxesRead the Press Release
ATLANTA - Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes.
“Payroll taxes critically fund social insurance programs, including Social Security and Medicare,” said U.S. Attorney Ryan K. Buchanan. “Johnson refused to pay payroll taxes while withholding those funds from his employee’s paychecks for years.”
“Johnson’s failure to pay over employment tax withheld from his employees is unlawful and ultimately impacts his employees future Social Security benefits,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Johnson pleading guilty today is evidence of IRS Criminal Investigation and its partners working hard to hold employers accountable when they steal from their employees and other honest tax paying citizens.”
“The U.S. Department of Labor will use all resources available to hold fiduciaries who fail to work in the interest of plans and participants accountable,” said Mark Seidel, Acting Regional Director of EBSA’s Atlanta Regional Office in Atlanta, Georgia. “Getting retirees and workers their contributions in a timely manner is vital to their livelihood. We will remain steadfast in continued work with our federal and state partners to ensure fiduciaries follow the laws or face consequences, including when necessary, debarment from serving as a fiduciary or trustees of any retirement plan. Fiduciaries who need assistance on proper management of employee benefit plans may contact the Employee Benefits Security Administration for compliance assistance.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Charles Johnson, Sr., was the President and CEO of Williams-Russell and Johnson, Inc., an engineering firm headquartered in Atlanta. While running the firm, Johnson failed to pay significant amounts of withheld income and employment taxes to the Internal Revenue Service; pension (401(k)) payments to the firm’s retirement plan; and health insurance premiums to the health insurer. These funds were collected and withheld from employee paychecks for multiple years, stretching from at least 2015 to 2019.
As president and CEO of the firm, Johnson held a fiduciary responsibility to withhold the required income and employment taxes and pay that amount to the IRS. He was also a plan fiduciary for the retirement and health plans, required to pay the withheld amounts.
As a result, Charles Johnson, Sr., 82, of Atlanta, Georgia, was charged via a two-count Criminal Information alleging failure to account for and pay employment taxes and theft from an employee benefit plan. The Information charges that Johnson failed to pay $1.4 million in employment taxes and failed to pay more than $480,000 to the firm’s 401(k) plan and its health insurer for premium payments. He has pleaded guilty to the offense of failure to pay taxes and agreed to pay $1.4 million in restitution to the United States and an additional $210,000 to the employees who participated in the employee benefit plans.
This case is being investigated by the Internal Revenue Service Criminal Investigation and the U.S. Department of Labor-Employee Benefits Security Administration.
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.
Arizona man pleads guilty to extorting Georgia TechRead the Press Release
ATLANTA - Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion.
“The defendant tried to extort Georgia Tech and egregiously tarnish the reputation of the university’s coach with a false claim of sexual assault,” said U.S. Attorney Ryan K. Buchanan. “By his guilty plea he acknowledged the lie and his criminal conduct, and will now face the consequences for his crime.”
“Bell sought to severely damage the reputation of the institution and their coach solely for his own financial gain,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate false allegations and will do everything in our power to seek the truth and hold individuals who commit these type of crimes accountable for their selfish actions.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Ronald Bell pleaded guilty to conspiring with his co-defendant, Jennifer Pendley, and a security guard at Georgia Tech, to falsely accuse the coach of Georgia Tech men’s basketball team of sexual assault. Bell admitted he recruited the security guard to falsely claim that the guard witnessed an assault. Bell told the security guard that the false accusation of sexual assault could be worth $20 million and promised the guard a share of the money.
Bell also communicated with representatives of Georgia Tech and demanded money in exchange for not reporting the claimed sexual assault. For example, he texted a representative of Georgia Tech that: “This is going to get very ugly. GT has made no effort . . . to amicably resolve this . . . I guess this has to get ugly. I tried to resolve this without damaging GT’s reputation . . . .”
After Georgia Tech refused to pay the bribe, Pendley filed a lawsuit claiming sexual battery, sexual assault, and intentional infliction of emotional distress. These claims falsely alleged that the guard witnessed the coach sexually assault Pendley. Ultimately, the security guard admitted that his statements were false and that Bell asked him to lie to support the false sexual assault claim.
Pendley previously pled guilty to conspiracy to commit extortion on February 22, 2023.
Sentencing for Ronald Bell, 56, of Oro Valley, Arizona, is scheduled for June 8, 2023 at 11:00 a.m., before U.S. District Judge Thomas W. Thrash.
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.
Former City of Atlanta official sentenced for accepting bribesRead the Press Release
ATLANTA – Former City of Atlanta Commissioner of Watershed Management Jo Ann Macrina has been sentenced to four years and six months in prison for accepting bribes from an Atlanta contractor in exchange for steering city business worth millions of dollars to the contractor’s company.
“Jo Ann Macrina was entrusted to safeguard the water supply for millions of Atlanta residents but instead resorted to corruption by steering work to a city contractor in exchange for cash, luxury items, and a lucrative job offer,” said U.S. Attorney Ryan K. Buchanan. “We are committed to working closely with our partners to rid local government of those who allow personal greed to lead to the abuse of positions of trust.”
“Macrina exploited her position to feed her own greed,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This case is especially disturbing because she was the head of a department. This conviction reflects our continuing commitment to root out corruption and bring to justice those who abuse positions of power.”
“By enriching herself through bribes, Jo Ann Macrina abused her public trust,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “The sentence she received serves notice to public officials that they are not above the law and will be held accountable for using public funds for their own use.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Macrina served as the Commissioner of Atlanta’s Department of Watershed Management from 2011 through May 2016. During Macrina’s tenure, the City of Atlanta awarded millions of dollars in contracts to an architectural, design, and construction management and services firm based in Atlanta. Macrina took multiple steps to steer lucrative contracts toward the firm’s joint venture. Those actions included casting aside prior final scores ranking potential vendors where the joint venture ranked near the bottom, replacing two evaluators who previously represented the Department of Watershed Management with herself and Macrina’s employee, and scoring the joint venture higher than all other evaluators during a reevaluation.
In exchange for providing the firm’s executive vice president with access to confidential information and preferential treatment on City of Atlanta projects, Macrina was offered a job and accepted things of value. For instance, Macrina accepted $10,000 in cash, a diamond ring, a room at a luxury hotel in Dubai, and landscaping work at her home from the firm’s executive vice president either directly or through another employee of the firm. Shortly after Macrina’s employment with the City of Atlanta ended, she began working for the firm. Between June 2016 and September 2016, the firm and its executive vice president paid Macrina $30,000 in four separate payments.
Jo Ann Macrina, 66, of Daytona Beach, Florida, was sentenced by U.S. District Judge Steve C. Jones to four years and six months in prison, to be followed by three years of supervised release, and $40,000 in restitution. Macrina was convicted of conspiracy and federal program bribery on October 14, 2022, following a jury trial.
This case was investigated by the Federal Bureau of Investigation and IRS Criminal Investigation.
Assistant U.S. Attorney Nathan P. Kitchens for the Northern District of Georgia and Trial Attorney Jolee Porter of the Justice Department’s Public Integrity Section prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former City of Atlanta Official Sentenced for Accepting BribesRead the Press Release
A former City of Atlanta Commissioner of Watershed Management was sentenced today to four and a half years in prison for accepting bribes from an Atlanta contractor in exchange for steering city business worth millions of dollars to the contractor’s company.
According to court documents, Jo Ann Macrina, 66, of Daytona Beach, Florida, served as the Commissioner of Atlanta’s Department of Watershed Management from 2011 through May 2016. During Macrina’s tenure, the City of Atlanta awarded millions of dollars in contracts to an architectural, design, and construction management and services firm based in Atlanta. Macrina took multiple steps to steer lucrative contracts toward the firm’s joint venture. Those actions included casting aside prior final scores ranking potential vendors where the joint venture ranked near the bottom, replacing two evaluators who previously represented the Department of Watershed Management with herself and Macrina’s employee, and scoring the joint venture higher than all other evaluators during a reevaluation.
In exchange for providing the firm’s executive vice president with access to confidential information and preferential treatment on City of Atlanta projects, Macrina was offered a job and accepted things of value. For instance, Macrina accepted $10,000 in cash, a diamond ring, a room at a luxury hotel in Dubai, and landscaping work at her home from the firm’s executive vice president either directly or through another employee of the firm. Shortly after Macrina’s employment with the City of Atlanta ended, she began working for the firm. Between June 2016 and September 2016, the firm and its executive vice president paid Macrina $30,000 in four separate payments.
In October 2022, Macrina was convicted at trial of conspiracy and federal program bribery.
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, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Keri Farley of the FBI Atlanta Field Office, and Special Agent in Charge James Dorsey of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office made the announcement.
The FBI Atlanta Field Office and IRS-CI investigated the case.
Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Nathan P. Kitchens for the Northern District of Georgia prosecuted the case.
Georgia woman charged with stealing over $450,000 in government and retirement benefitsRead the Press Release
ATLANTA - Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. The indictment alleges that Smith stole more than $450,000 in Social Security Administration (SSA) retirement benefits and New York State Local and Retirement System (NYSLRS) benefits intended for M.S., who died in 2006 and was no longer eligible to receive those funds.
“Smith allegedly stole money that taxpayers and government employees faithfully paid into these retirement systems and to which she was not entitled,” said U.S. Attorney Ryan K. Buchanan. “This joint investigative effort is another excellent example of how collaboration between federal and state investigative partners help to uncover benefits fraud.”
“For nearly 15 years, the beneficiary’s death was allegedly concealed by Smith so that she could illegally obtain Social Security benefits, which is a federal crime. These charges exemplify that my office will continue to pursue those who defraud the Social Security Administration,” said Gail S. Ennis, Inspector General for the SSA. “I thank the New York Office of the State Comptroller for investigating with us.”
“The defendant callously took advantage of her mother-in-law’s death to profit at the expense of New York’s retirement system and the Social Security Administration,” said New York State Comptroller Thomas P. DiNapoli, who is trustee of the New York State Common Retirement Fund. “She has now been brought to justice and we will seek full restitution. I thank U.S. Attorney Buchanan and the Social Security Administration Office of the Inspector General for their partnership on this matter.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In approximately September 2005, M.S., Smith’s former mother-in-law, began receiving SSA and NYSLRS benefits directly deposited into a bank account that was solely in M.S.’s name. At the time of M.S.’s death in September 2006, Smith served as her caretaker and handled her finances. Smith had access to M.S.’s bank account as M.S.’s caretaker.
After M.S. died, neither Smith nor anyone else notified SSA or NYSLRS of M.S.’s passing. Nor did Smith close M.S.’s bank account. Instead, Smith kept M.S.’s bank account open into which SSA and NYSLRS continued to deposit funds until early 2021. Smith knew exactly when those monthly benefits were deposited, and each month she allegedly withdrew the funds from the account almost as soon as they were deposited.
In total, SSA deposited $194,351.00 and NYSLRS deposited $264,699.53 into the account. Smith, who was interviewed in connection with this investigation, admitted that she stole the money and that she knew that she was not entitled to the funds.
Sandra D. Smith, 49, of Morrow, Georgia, was arraigned before U.S. Magistrate Judge Justin S. Anand. Smith was charged with 20 counts of wire fraud in violation of Title 18, United States Code, Section 1343, and 10 counts of theft of government funds in violation of Title 18, United States Code, Section 641. 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 Social Security Administration - Office of the Inspector General and New York Office of the State Comptroller.
Special Assistant U.S. Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man sentenced to two years in prison for assault of a federal officer and destruction of government propertyRead the Press Release
ATLANTA – Richard Tyler Hunsinger has been sentenced for his role in an attack on the Atlanta Field Office of Immigration and Customs Enforcement, involving improvised explosive devices, during a protest in the summer of 2020.
“The U.S. Attorney’s Office will always defend citizens’ rights to peacefully protest,” said U.S. Attorney Ryan K. Buchanan. “But destruction of government property and throwing Molotov cocktails in buildings is unacceptable. Rather than catalyzing constructive dialogue, such dangerous actions foment violence, tear at the fabric of our community, and endanger lives. Prosecution and prison are the end result of engaging in this unlawful conduct.”
“The increase in assaults on federal law enforcement officers—and law enforcement in general and their property—is troubling and will not be tolerated,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully this sentencing sends the message that the FBI will continue to work with our partners to hold violent protesters accountable for their actions that damage our communities.”
“Stopping violent criminals, like Hunsinger, who target law enforcement officers is one of the most important things we can do to protect our communities,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “We are thankful for the hard work done in this case and hope that this sentence serves as a warning to anyone else thinking of committing such heinous acts.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On July 23, 2020, Richard Tyler Hunsinger promoted a protest entitled, “Rally Against Fascism.” The event was to occur at the Department of Homeland Security Immigration and Customs Enforcement’s Field Office located in Atlanta, Georgia (the “DHS Building”).
On July 25, 2020, at approximately 11:30 P.M., a crowd of protesters gathered at the DHS building. Hunsinger and others, wearing dark clothing, gloves, and face coverings, breached the fences of the building and began vandalizing the structure. Hunsinger smashed at least four windows of the front entry of the DHS building using a hammer. He later lit and threw a Molotov Cocktail into the facility. At the same time, other individuals used rocks, cinder blocks, fireworks, and other materials to cause extensive damage to the building.
Law enforcement later recovered a broken bottle used to make a Molotov Cocktail which contained Hunsinger’s DNA on it, and an additional Molotov Cocktail and a modified firework covered in nails from inside the facility. Damage to the building and clean-up costs totaled more than $78,000.00.
Richard Tyler Hunsinger, 29, of Fairfax, Virginia, who was a resident of Atlanta, Georgia at the time of the offense, was sentenced to two years, eight months in prison to be followed by three years of supervised release, including eight months of home confinement. Hunsinger will also be required to pay restitution in an amount to be determined by the Court at a later date. Hunsinger was convicted on October 25, 2022, after he pleaded guilty to the offenses of assault on a federal officer in violation of Title 18, United States Code, Sections 111(a)(1) and (b), and destruction of government property in violation of Title 18, United States Code, Section 1361.
This case was investigated by the Federal Bureau of Investigation in conjunction with the Homeland Security Investigations (HSI) and the Federal Protective Service.
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.
Repeat domestic violence abuser sentenced to 30 years in prison for drug trafficking and firearm offensesRead the Press Release
ATLANTA - Jamaul Raheem Boyce, a multi-convicted felon with a history of committing domestic violence offenses, has been sentenced to prison after being convicted at trial for firearm and drug trafficking offenses. Boyce ran a drug trafficking operation from his Clayton County, Georgia, apartment that he shared with his girlfriend and her three young children.
“Boyce is a violent felon and domestic abuser,” said U.S. Attorney Ryan K. Buchanan. “His prior convictions for aggravated assault, aggravated stalking, aggravated battery, family violence battery, and obstruction of a law enforcement officer speak to his disregard for others and the law.”
“This investigation and sentence are another example of ATF remaining on the frontline of preventing violent crime through excellent cooperation with our law enforcement partners,” said ATF Assistant Special Agent in Charge Beau Kolodka. “Through this cooperative effort we were able to apprehend and successfully prosecute a violent and dangerous individual which posed a significant threat to the public.”
“DCS provides individuals under our supervision the resources and support they need to succeed. It is unfortunate that certain individuals chose to not take advantage of these opportunities and instead impose havoc within our communities. We are appreciative of our partners in law enforcement who helped in this effort and remain committed to protecting the citizens of Georgia,” said Brian Tukes, Deputy Director of External Affairs, Georgia Department of Community Supervision.
“The collaborative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Georgia Department of Community Supervision, and our agency reflects the vision that the Clayton County Police Department will establish safer communities through partnership and collaborations. The arrest of Jamaul Raheem Boyce is the result of effective law enforcement teamwork at the state, federal, and local level. We will continue similar operations to apprehend dangerous criminals who operate in Clayton County,” said Chief Kevin Roberts, Clayton County Police Department.
According to U.S. Attorney Buchanan, the charges and other information presented in court: On June 21, 2019, a U.S. Marshals task force served a parole violation arrest warrant for Jamaul Boyce at his apartment in Clayton County. The arrest warrant was issued following Boyce’s previous arrest for aggravated assault against his girlfriend, which violated the terms of his parole. Boyce was on parole at the time for a separate domestic violence conviction against a different woman.
When deputies knocked on the door and announced their presence, Boyce’s girlfriend and her three young children complied with law enforcement’s instructions to exit the apartment. After Boyce ignored this order, deputies entered the residence and found Boyce hiding in a bedroom closet with multiple loaded firearms and bulletproof vests lying near him. The officers also saw suspected illicit drugs.
The deputies reported their findings to Clayton County police, who obtained a search warrant for the apartment. During a search that followed, Clayton County police recovered distribution quantities of methamphetamine, powder cocaine, crack cocaine, suspected heroin, and assorted pills, as well as drug distribution paraphernalia such as pill presses. Officers also discovered a loaded AR-15 style rifle with an extended magazine, two loaded handguns, two bulletproof vests, and a smoke bomb. These loaded firearms were all readily accessible to the three young children at the residence.
Jamaul Raheem Boyce, 40, of East Point, Georgia, was sentenced by U.S District Judge J.P. Boulee to 30 years in prison to be followed by a life term of supervised release. On September 19, 2022, a jury found Boyce guilty of possession of a firearm by a convicted felon, possession of a firearm by a person convicted of a domestic violence misdemeanor, possession with intent to distribute methamphetamine and cocaine, and possession of a firearm in furtherance of drug trafficking.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Georgia Department of Community Supervision, and the Clayton County Police Department.
Assistant U.S. Attorneys Annalise K. Peters and Erin N. Spritzer 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 sailor sentenced to federal prison for distributing child pornography and bestiality videosRead the Press Release
NEWNAN, Ga. – Former U.S. Navy sailor William Vincent has been sentenced to federal prison for distributing child pornography and a video of himself engaging in a sex act with a dog.
“In addition to collecting and trafficking horrific images of child rape, Vincent sexually abused an animal,” said U.S. Attorney Ryan K. Buchanan. “With Vincent now unable to exploit the most vulnerable amongst us, our community is safer.”
“This case is particularly disturbing because of the age of the victims and large number of abhorrent videos that were filmed and distributed. Predators like Vincent are appalling and have no place in civilized society,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is thankful for our law enforcement partnerships that make it possible to put sexual predators, like Vincent, behind bars for significant periods of time where they cannot victimize any more innocent children, or animals.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Starting in August 2020 and continuing for several months thereafter, William Vincent used a cloud-based instant messaging service to unlawfully distribute child pornography and bestiality videos. Vincent was unaware that the recipient of the videos was an undercover employee of the FBI. Vincent initially sent a video depicting himself engaging in sexual acts with a dog. He then sent the undercover employee a video of an adult man sexually abusing an infant child.
FBI agents executed a federal search at Vincent’s home once they were able to pinpoint his address. The agents’ search uncovered numerous digital storage devices, including a memory card containing more than 970 videos of child sexual abuse and dozens of bestiality videos. Agents also recovered the dog depicted in the video that Vincent sent the undercover employee.
William Vincent, 31, of Peachtree City, Georgia, was sentenced by Chief U.S. District Judge Timothy C. Batten, Sr. to 10 years in prison with credit for one year, nine months served to be followed by 15 years of supervised release. Vincent was convicted of one count of distributing child pornography and one count of distributing an animal crush video, after he entered a guilty plea on September 13, 2022. Under federal law, the definition of “animal crush video” includes the obscene depiction of actual sexual abuse of a live non-human mammal, bird, reptile, or amphibian.
This case was investigated by the Federal Bureau of Investigation. The Peachtree City Police Department provided assistance.
Assistant U.S. Attorneys Theodore S. Hertzberg and Leanne Marek 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.
Fugitive defendant who fled during trial convicted by federal jury for laundering millions of dollars stolen from fraud victims throughout the U.S.Read the Press Release
ATLANTA – Following a nine-day trial, Ahamefule Aso Odus has been convicted by a federal jury on 12 counts of money laundering stemming from his role in a massive money laundering operation. Odus fled after testifying during his trial and is currently a fugitive.
“Odus and his co-conspirators laundered millions of dollars stolen from companies and individuals throughout the United States and abroad,” said U.S. Attorney Ryan K. Buchanan. “Although Odus is on the run, he cannot and will not evade justice for his crimes. We will continue to devote our office’s time and resources to uncovering these kinds of complex schemes and holding accountable those individuals who perpetrate them.”
“As the only defendant in “Operation Five Fingers” who refused to take a plea and elected to go to trial, this swift jury conviction proves the massive amount of evidence that law enforcement had of Odus and his coconspirators crimes,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “No matter how elaborate or complicated the fraud scheme, the FBI and our federal partners will continue to uncover and unravel them to protect American citizens and businesses.”
“Ahamefule Aso Odus Jr. facilitated the theft of retirement plan assets by knowingly receiving fraudulently obtained funds from an individual’s ERISA covered retirement account into his business bank account. 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.
According to U.S. Attorney Buchanan, the charges and other information presented in court: Ahamefule Aso Odus and his co-conspirators acted as money launderers for unknown fraudsters who scammed unsuspecting individuals and companies out of millions of dollars. Members of the conspiracy, including Odus, created sham companies and registered them with the Georgia Secretary of State. Those companies did not maintain a physical place to conduct business, did not earn legitimate income, and did not pay wages to employees. Instead, the conspirators used these sham companies to open bank accounts and then funnel fraud money through the accounts.
Upon receipt of the fraud proceeds, Odus and his co-conspirators quickly converted the money to their own use, and to the use of their criminal associates, through wire transfers, over-the-counter cash withdrawals, and the purchase of cashier’s checks. This conduct involved monetary transactions of more than $10,000 that were designed to conceal and disguise the nature, location, source, ownership, and control of these fraudulent proceeds.
Odus is one of 41 people originally charged in four related fraud and money laundering cases, known collectively as “Operation Five Fingers.” Together, members of this criminal organization laundered more than $30 million in fraud proceeds from victims of computer-enabled scams, including business email compromise schemes, romance fraud schemes, and retirement account takeover schemes.
To date, 39 of the 41 “Operation Five Fingers” defendants have been convicted. Twenty-five of the defendants have been sentenced, with sentences ranging from six months to eight years of incarceration. Charges against one defendant were dismissed after he died while he was a fugitive, and one defendant is scheduled to enter a guilty plea on March 10, 2023.
On January 30, 2023, a jury convicted Odus on one count of conspiracy to commit money laundering and three counts of concealment money laundering. The jury also convicted him of eight counts of transactional money laundering. In a bifurcated proceeding after the verdict, the jury forfeited $73,896 that had been seized from Odus.
Sentencing for Ahamefule Aso Odus, 30, of Atlanta, Georgia, is scheduled for May 9, 2023, at 9:30 a.m. before U.S. District Judge William M. Ray II.
This case was investigated by the Department of Labor, Office of Inspector General, the Federal Bureau of Investigation, the United States Secret Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations 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. The investigating agencies received considerable assistance from numerous federal, state, and local law enforcement authorities throughout the investigation.
Assistant U.S. Attorneys Kelly K. Connors and Russell Phillips 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.
Four Georgia men sentenced for international firearms trafficking schemeRead the Press Release
ATLANTA – Four men have been sentenced to federal prison for their roles in trafficking more than 160 firearms, some of which were smuggled out of the country and recovered from various crime scenes.
“Firearms trafficking is a serious crime that fuels violence,” said U.S. Attorney Ryan K. Buchanan. “By placing firearms in the hands of convicted felons and other prohibited persons, straw purchasers of firearms, like the defendants in this case, play a key role in propagating violence in our community. This case sends a clear message: straw purchases will lead to prosecution.”
“This investigation and sentence is another example of ATF remaining on the frontline of preventing violent crime through excellent cooperation with our law enforcement partners. Through this cooperative effort we were able to apprehend and successfully prosecute violent and dangerous individuals which posed a significant threat to the public,” said ATF Assistant Special Agent in Charge Beau Kolodka.
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between May 2021 and continuing through early March 2022, Romeo Swofford directed other individuals, including co-defendants Emmanuel Barden and Cemonte Wade, to obtain upwards of 160 handguns from federally licensed firearms dealers within the Atlanta area. Barden and Wade deceived the licensed dealers by falsely representing that they were buying guns for themselves. In truth, Swofford was the actual purchaser who paid for and took possession of the guns once the transactions were completed.
Swofford sought to acquire guns so he could profit from reselling them to convicted criminals and other people who would use, possess, or export them unlawfully. To facilitate these illegal gun sales, Swofford used hand tools to obliterate the serial numbers on dozens of the firearms. But nearly 20 of the guns Swofford sold were recovered from crime scenes in Canada where law enforcement authorities successfully restored the serial numbers Swofford attempted to remove.
On March 9, 2022, federal agents watched Swofford accompany Wade to two different Cobb County gun stores. Wade purchased three Glock semiautomatic pistols before relinquishing them to Swofford. Afterwards, Swofford and Wade met co-defendant Medford Layatte Daniels, Jr. outside a deli in the Edgewood neighborhood of Atlanta. Swofford then moved guns, drugs, and a scale into Daniels’s van. Both Swofford and Daniels were armed with loaded pistols. Daniels was on probation for unrelated gun and drug crimes at the time.
U.S. District Judge Jean-Paul “J.P.” Boulee sentenced the defendants as follows:
- Romeo Swofford, a/k/a “Lil Richie,” 21, of Lithonia, Georgia, was sentenced to 10 years, one month in prison to be followed by three years of supervised release after pleading guilty to conspiracy to make false statements to a federally licensed firearms dealer and aiding and abetting false statements to a federally licensed firearms dealer.
- Medford Layatte Daniels, Jr., a/k/a “NFNC Freak,” 26, of Conley, Georgia, was sentenced to nine years, three months in prison to be followed by five years of supervised release after pleading guilty to receipt of a firearm by a person under indictment and carrying a firearm during and in relation to a drug trafficking crime.
- Emmanuel Marquis Barden, 23, of Decatur, Georgia, was sentenced to four years, nine months in prison to be followed by three years of supervised release after pleading guilty to conspiracy to make false statements to a federally licensed firearms dealer.
- Cemonte Deshon Wade, 23, of Ellenwood, Georgia, was sentenced to three years, one month in prison to be followed by three years of supervised release after pleading guilty to conspiracy to make false statements to a federally licensed firearms dealer.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Theodore S. Hertzberg and 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.
Atlanta promoter and entrepreneur indicted for Paycheck Protection Program fraudRead the Press Release
ATLANTA - Travis Lee Harris has been arraigned on federal charges stemming from his fraudulent acquisition of a Paycheck Protection Program loan for small businesses. Harris was indicted by a federal grand jury on January 3, 2023.
“Congress established the Paycheck Protection Program to help small businesses, not to be easy money for anyone willing to lie on a loan application,” said U.S. Attorney Ryan K. Buchanan. “We will continue to investigate and prosecute anyone who defrauded taxpayers out of the funds meant to sustain the economy during the COVID-19 crisis.”
“Providing false information to defraud SBA’s pandemic-related programs is a crime,” said U.S. Small Business Administration Office of the Inspector General’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “OIG is committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In June 2020, Travis Harris signed a Paycheck Protection Program (PPP) loan application for his business, Atlanta Luxury Cars & Trucks LLC, in the amount of $968,405. Harris’ application was based on fraudulent information about the business’ number of employees, payroll, and revenue. Based on Harris’ fraudulent representations, the lender deposited the $968,405 into one of Harris’ bank accounts for Atlanta Luxury Cars & Trucks LLC. Harris soon began transferring the PPP loan funds into his personal bank accounts.
Travis Lee Harris, 41, of Atlanta, Georgia, was arraigned on an indictment charging the offense of wire fraud, in violation of Title 18, United States Code, Section 1343, on January 18, 2023, before U.S. Magistrate Judge John K. Larkins III. 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 Small Business Administration's (SBA-OIG) Office of Inspector General.
Assistant U.S. Attorneys Thomas Forsyth and Alison Prout 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.
Former Elementary School Teacher Convicted of Sexually Abusing ChildrenRead the Press Release
A federal jury convicted a former elementary school teacher yesterday for sexually abusing four former students.
According to court documents and evidence presented at trial, Stefan Zappey, 56, of Stuttgart, Germany, was employed by the Department of Defense Education Activity (DODEA) between 2001 and 2021 and taught first through third grade at Patch Elementary school, which is located on a U.S. military installation near Stuttgart. Army criminal investigators were notified in 2020 that one of Zappey’s former students reported that he touched her inappropriately under her clothing between 2009 and 2010. Investigators interviewed four of Zappey’s former students who reported that Zappey placed his hand inside their underwear and touched their genitals. 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. The victims were between six and eight years old at the time of the sexual abuse.
Zappey was convicted of four counts of aggravated sexual abuse of a child and four counts of abusive sexual contact. He is scheduled to be sentenced on May 2 and faces a mandatory minimum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Acting Special Agent in Charge Lisa Yockel of the Department of Army Criminal Investigation Division (CID) Europe Field Office made the announcement.
The FBI and Army CID Europe Field Office investigated the case.
Trial Attorney Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Leanne Marek of the U.S. Attorney’s Office for the Northern District of Georgia are prosecuting 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 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.
Eleven sentenced in connection with a $3 million Paycheck Protection Program fraud schemeRead the Press Release
ATLANTA – Eleven men, eight from the metropolitan Atlanta-area, and three from South Carolina, have been sentenced for their roles in obtaining approximately $3 million in Paycheck Protection Program (PPP) loans on behalf of ten businesses based on Georgia and South Carolina.
“The CARES Act and the PPP designated funds to aid struggling businesses during a pandemic,” said U.S. Attorney Ryan Buchanan. “American businesses needed these funds to keep their companies and employees afloat during a national emergency and world-wide pandemic. These defendants took advantage of that program to obtain money to which they were not lawfully entitled. We will continue investigating and prosecuting those who attempt to steal these critical funds.”
“The FBI and our partners will not tolerate anyone who misdirects federal emergency assistance intended for business who actually need it to stay operational," said Keri Farley, Special Agent in Charge of FBI Atlanta. "This sentence serves as a message that the FBI and our federal partners remain committed to making sure funds provided by programs like PPP are used as intended."
“Individuals that conspire to defraud SBA programs will be brought to justice,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “These sentences demonstrate that those that defraud the nations vital economic programs will be held accountable. I want to thank the U.S. Department of Justice for its leadership and dedication to pursuing justice.”
“We will continue to aggressively pursue those who defrauded the Paycheck Protection Program which was funded by taxpayers and designed to assist businesses during the pandemic,” said J. Russell George, Treasury Inspector General for Tax Administration. “We appreciate the efforts by our federal partners and the U.S. Attorney’s Office to hold these individuals to account.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Rodericque Thompson recruited Micah Baisden, Travis Crosby, Stanley Dorceus, Keith Maloney, Tabronx Smith, Mark Stewart, Timothy Williams, Thomas Wilson, and Kenneth L. Wright, Jr., to apply for fraudulent PPP loans on behalf of their respective businesses:
- PowerHouse Sports Academy, LLC;
- Faithful Transport Services, LLC;
- Elevate Yourself, LLC;
- KMJ Transport, LLC;
- Market Yourself, LLC;
- The Infinity Group of SC, LLC;
- Bamigi Brand;
- Rare Breed Nation, LLC;
- Lux Realty; and
- Lux Automotive.
In exchange for approximately 50 percent of the loan proceeds, Thompson helped each business owner obtain a $300,000 PPP loan by submitting fraudulent loan applications that contained numerous false and misleading statements about their businesses.
For example, each of the loan applications claimed that the relevant business employed 16 individuals and paid monthly wages of $120,000. Additionally, identical fraudulent quarterly tax returns were submitted in connection with each loan application. After they received the funds, the business owners wrote “payroll” checks to individuals who did not work for their businesses and then either kept the money for themselves or gave the money to Thompson. They hoped to hide the fraud and expected to get the loans forgiven by writing “payroll” on the checks.
Antonio Hosey, who was not a business owner, acted as a go-between with the business owners and Thompson by recruiting a group of check cashers who cashed the false “payroll” checks from the business owner defendants and then gave the cash to Hosey who, in turn, gave it to Thompson.
The group fraudulently obtained approximately $3 million in PPP loans. To date, authorities have recovered approximately $1,195,784.98 of the stolen money. Ten of the defendants involved in this scheme pleaded guilty. Travis Crosby, the sole defendant to go to trial, was convicted on September 22, 2022, after a two-day trial. All of the defendants have received the following sentences:
- Kenneth L. Wright, Jr., 34, of Atlanta, Georgia, was sentenced to one year and one day in prison to be followed by three years supervised release, and ordered to pay restitution in the amount of $242,177.81 on January 8, 2021. Wright was convicted on August 20, 2020, of conspiracy to defraud the United States and making false statements to a federal agency.
- Thomas D. Wilson, 32, of Atlanta, Georgia, was sentenced to one year, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $300,000, on October 24, 2022. Wilson was convicted of bank fraud on April 14, 2021.
- Micah K. Baisden, 31, of Atlanta, Georgia, was sentenced to one year, six months in prison to be followed by three years of supervised release, and order to pay restitution in the amount of $300,000, on November 8, 2022. Baisden was convicted of bank fraud on May 20, 2021.
- Rodericque Jarmaine Thompson, 45, of Atlanta, Georgia, was sentenced to five years, ten months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $2,732,259.47, on November 9, 2022. Thompson was convicted of conspiracy to commit bank fraud on May 20, 2021.
- Keith A. Maloney, 35, of Yemassee, South Carolina, was sentenced to one year, three months in prison to be followed by three years supervised release, and ordered to pay restitution in the amount of $114,828.19, on November 10, 2022. Maloney was convicted of bank fraud on May 4, 2021.
- Antonio D. Hosey, 50, of Atlanta, Georgia, was sentenced to one year and one day in prison to be followed by three years supervised release, and order to pay restitution in the amount of $463,779.79, on November 16, 2022. Hosey was convicted of conspiracy to defraud the United States on November 19, 2020.
- Stanley Dorceus, 36, of Marietta, Georgia, was sentenced to three months in prison to be followed by three years supervised release, and ordered to pay restitution in the amount of $207,829.85, on November 29, 2022. Dorceus was convicted of conspiracy to defraud the United States and making false statements to a federal agency on August 26, 2020.
- Mark A. Stewart, 56, of Greenville, South Carolina, was sentenced to four months in prison to be followed by two years supervised release, and ordered to pay restitution in the amount of $300,000, on December 6, 2022. Steward was convicted of conspiracy to defraud the United States and making false statements to a federal agency on September 25, 2020.
- Timothy Williams, 32, of Atlanta, Georgia, was sentenced to one year, three months in prison to be followed by three years supervised release, and ordered to pay restitution in the amount of $869,427.54, on December 8, 2022. Williams was convicted of conspiracy to defraud the United States and making false statements to a federal agency on October 13, 2020.
- Tabronx W. Smith, 45, of Buford, Georgia, was sentenced to one year, five months in prison to be followed by two years supervised release, and ordered to pay restitution in the amount of $118,818.45, on December 20, 2022. Smith was convicted of bank fraud on June 8, 2021.
- Travis C. Crosby, 32, of Wellford, South Carolina, was sentenced to three years, ten months in prison to be followed by three years supervised release, and order to pay restitution in the amount of $897,172.61. Crosby was convicted of conspiracy to commit bank fraud, bank fraud, false statement to a bank, and money laundering.
This case was investigated by the Federal Bureau of Investigation, Small Business Administration – Office of Inspector General, and the Treasury Inspector General for Tax Administration.
Special Assistant U.S. Attorney Diane C. Schulman, Assistant U.S. Attorney Christopher J. Huber, and DOJ Trial Attorneys Michael McCarthy and Matthew Reilly 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.
Conyers doctor pays $1,850,000 to resolve allegations that she performed and billed for medically unnecessary cataract surgeries and diagnostic testsRead the Press Release
ATLANTA –Aarti D. Pandya, M.D. and Aarti D. Pandya, M.D. P.C. (“Pandya Practice Group”) have agreed to pay approximately $1,850,000 to resolve allegations that they violated the False Claims Act by, among other things, billing the government for cataract surgeries and diagnostic tests that were not medically necessary, tests that were incomplete or of worthless value, and office visits that did not provide the level of service claimed.
“Physicians who perform procedures and tests without a legitimate medical need place profits ahead of patients and subject those patients to unnecessary risk,” said U.S. Attorney Ryan K. Buchanan “This settlement represents our office’s commitment to ensuring accountability for physicians who subject patients to unwarranted medical care and waste taxpayer funds.”
"We must assure patients and taxpayers that healthcare is dictated by clinical needs, not fiscal greed,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This settlement should serve as a reminder that the FBI will not tolerate healthcare providers who engage in schemes that defraud the industry and put innocent patients at risk.”
“Care coordination for beneficiaries should account, first and foremost, for the medical appropriateness of services that patients need to maintain their well-being,” stated Special Agent in Charge Tamala E. Miles with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Subjecting individuals to extraneous procedures just to bilk the health care programs on which they rely is the antithesis of proper medical care. HHS-OIG and our law enforcement partners are dedicated to investigating providers who allegedly threaten the safety of patients and the integrity of the federal health care system.”
“We are committed to fully investigating providers who falsely bill the Department of Defense (DoD) health care system to enrich themselves using funds intended for military members and their families,” stated Special Agent in Charge Darrin K. Jones, DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “We thank the U.S. Attorney’s Office and our investigative partners for their dedication to protecting America’s warfighters.”
This settlement resolves allegations that from January 1, 2011 to December 31, 2016, Pandya knowingly submitted false claims to federal healthcare programs for medically unnecessary cataract extraction surgeries and YAG laser capsulotomies. The government alleged that Pandya performed these procedures on patients that did not qualify for the procedure under accepted standards of medical practice and, in some cases, caused injury to her patients. Additionally, the government alleged that Pandya falsely diagnosed patients with glaucoma to justify unnecessary diagnostic testing and treatment that was billed to Medicare. The government alleged that many of the diagnostic tests that Pandya ordered were not properly performed, were performed on a broken machine, or were not interpreted in the medical record, as required by Medicare.
This settlement resolves allegations in a lawsuit filed by Laura Dildine, a former Pandya Practice Group employee, under the qui tam, or whistleblower, provisions of the False Claims Act (FCA). The FCA authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States ex rel. Dildine v. Aarti D. Pandya, M.D. et al., No. 1:13-CV-3336-LMM. The United States intervened in this lawsuit in 2018.
After the government intervened in the qui tam action, HHS imposed a payment suspension on the Pandya Practice Group that precluded it from receiving any reimbursement from Medicare for Part B claims. The payment suspension was imposed on October 23, 2019. Pandya and the Pandya Practice Group unsuccessfully challenged the payment suspension in district court. As part of the settlement of the government’s claims in this case, the Pandya Practice Group agreed to forfeit the suspension amount to the government. The payment suspension will also be lifted as part of the settlement.
To protect federal health care programs and beneficiaries going forward, Pandya and the Pandya Practice Group have entered into a detailed, multi-year Integrity Agreement and Conditional Exclusion Release (IA) with OIG that is more robust than OIG’s standard agreement. The IA includes training and reporting requirements and enhanced material breach provisions. The IA also requires that Pandya and the Pandya Practice Group hire an Independent Review Organization to conduct annual claims reviews to determine whether the items and services furnished were medically necessary and appropriately documented, and whether the claims were correctly coded, submitted, and reimbursed. OIG did not release its permissive exclusion authority and will provide such a release only after Pandya and the Pandya Practice Group have satisfied their obligations under the IA.
The investigation of this matter and the litigation against Aarti D. Pandya, M.D., and the Pandya Practice Group were handled by Assistant U.S. Attorneys David A. O’Neal, Austin M. Hall, and Akash Desai. 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.
Restaurant manager sentenced to prison for embezzling $300,000 from employerRead the Press Release
ATLANTA - Scott Spilberg has been sentenced to prison for embezzling over $300,000 from his employer by using his company charge card for personal visits to adult entertainment clubs.
“Spilberg was trusted by his employer and betrayed that trust by shelling out more than $300,000 of company funds at adult entertainment clubs,” said U.S. Attorney Ryan K. Buchanan.
“This greedy defendant abused his position to fund his own lifestyle. Because of his actions, the restaurant, and people he was chosen to lead suffered the impacts,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “People who brazenly steal from their employers should expect to be held accountable.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Spilberg was hired as the manager at Houck's Grille in August 2020. Beginning in October 2020, at the height of the COVID-19 pandemic, Spilberg began using his company issued debit card to pay for his visits to two adult entertainment clubs. Ultimately, he visited the clubs more than 50 times during an 11-month period, charging over $300,000 to the company debit card. The loss of this money caused a significant hardship to the restaurant and threatened the livelihood of its 40 employees and forced it to borrow COVID-relief funds to stay in business.
Scott Spilberg, 56, of Canton, Georgia, was sentenced to two years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $300,533.78. Spilberg was convicted on September 19, 2022, after he pleaded guilty to the offense of wire fraud.
This case was investigated by the Federal Bureau of Investigation with the assistant of the Roswell Police Department.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man Pleads Guilty to Bribery and Visa Fraud ConspiraciesRead the Press Release
A Georgia man pleaded guilty today for his roles in two bribery conspiracies — one related to U.S. government reconstruction contracts in Afghanistan and one related to a U.S. Department of State visa fraud scheme.
According to court documents, Orlando Clark, 57, of Smyrna, managed reconstruction projects in Afghanistan on behalf of a U.S. company. In 2011 and 2012, Clark conspired with an analyst at a different U.S. company, who evaluated bids for U.S.-funded reconstruction contracts that were awarded by the U.S. military, to receive approximately $400,000 in bribes from an Afghan company in return for assisting it in obtaining millions of dollars in contracts. To conceal his criminal conduct, Clark registered fictitious companies and bank accounts in Georgia – to which he sent bribe payments via wire transfers from Afghanistan – and created invoices to make it appear as though he was involved in a car-exporting business. In reality, Clark used the bribe payments funneled through these accounts to enrich himself and purchase personal items, including two BMWs.
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 believe that they posed a threat to U.S. national security.
Clark pleaded guilty to conspiracy to commit bribery of a public official and conspiracy to commit visa fraud. He is scheduled to be sentenced on April 12 and faces a maximum penalty of five years in prison on each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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); Special Agent in Charge Peter Tolentino of the Economic Crimes Field Office of the Naval Criminal Investigative Service (NCIS); Special Agent in Charge Stanley A. Newell of the Transnational Operations Field Office of the Defense Criminal Investigative Service (DCIS); and Supervisory Special Agent Gregory Batman, Chief of the Criminal Investigations Division of the U.S. Department of State Diplomatic Security Service (DOS-DSS) made the announcement.
SIGAR, NCIS, DCIS, and DOS-DSS are investigating 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 are prosecuting the case.
Georgia man pleads guilty to federal hate crimeRead the Press Release
ATLANTA - Larry Edward Foxworth has pleaded guilty in federal court to shooting into multiple Clayton County convenience stores to kill those inside based upon their race and ethnicity.
Foxworth used a firearm to commit a heinous hate crime that traumatized his victims as well as the communities who rely on these businesses,” said U.S. Attorney Ryan K. Buchanan. “The vigorous prosecution of such abhorrent acts of violence and intimidation with the assistance of our federal partners is a top priority for this office.”
“No one should have to live in fear of being targeted for deadly violence because they are Black or Arab American,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This defendant, who professed support for a white supremacist organization, is being held accountable for an abhorrent act of violence motivated by race and national origin. This conviction should make clear that the Justice Department stands ready to prosecute any individual who carries out a violent hate-motivated crime in our country.”
“Hate-fueled violent crimes ripple through communities, making entire groups feel unsafe and unwelcome, spawning fear and anger”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Prosecuting hate crimes is a top priority of the FBI. We will not back down from obtaining justice for victims of hate-based violence.”
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 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. Thankfully no one was injured during either shooting.
Clayton County Police Department officers arrested Foxworth shortly after the second attack. Foxworth admitted that he intended to kill people inside and outside the stores. He also made multiple statements to law enforcement officers that he was targeting African American individuals and others whom he perceived to be Arab. Foxworth expressed hope that he had killed his targets and professed beliefs in white supremacist ideology and an allegiance to a white supremacist organization.
Sentencing for Larry Edward Foxworth, 48, of Jonesboro, Georgia, is scheduled for March 16, 2023, at 10:00 a.m. Foxworth pleaded guilty to a federal hate crime and use of a firearm during the commission of that crime of violence before U.S. District Judge Mark H. Cohen on December 15, 2023.
This case is being investigated by the Federal Bureau of Investigation and Clayton County Police Department.
Assistant U.S. Attorney Brent Alan Gray and Trial Attorney Alec C. Ward of the Department of Justice’s Civil Rights 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 supervisor in local tax office charged with committing fraud while waiting to report to federal prison on bribery and blackmail chargesRead the Press Release
ATLANTA - Gerald D. Harris, a former supervisor in DeKalb County’s Tax Commissioner’s Office, has been charged with wire fraud for falsely claiming that he could register a stolen vehicle by bribing an employee in the tax office.
“In 2020, Harris pleaded guilty to bribery and blackmail for accepting cash to unlawfully register vehicles and for extorting one of the individuals who had paid him bribe money,” said U.S. Attorney Ryan K. Buchanan. “Based on the COVID-19 pandemic, the sentencing judge compassionately gave Harris almost six months to report to prison. Rather than use that time to arrange his affairs – in a brazen display of audacity, Harris allegedly executed a separate wire fraud scheme.”
“Harris clearly had no remorse after his bribery and blackmail conviction, as he didn’t skip a beat in allegedly implementing a separate wire fraud scheme immediately after he was sentenced,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully, this charge will send the message that the FBI takes fraud schemes very seriously and just because you have been convicted of one crime does not mean that you are immune from further charges.”
“Unfortunately, Harris did not learn from his previous bad conduct. Instead of using the court's grace to better his situation, he brazenly used that time to steal money. Hopefully, this indictment will send a clear message that this conduct will not be tolerated,” DeKalb County District Attorney Sherry Boston.
“The Georgia Department of Revenue maintains a close working partnership with all the county Tax Commissioners offices as they serve as title and registration agents for the state. We find it unacceptable and unfortunate that any individual would violate the trust provided them to perform their official duties. The Agency is committed to assisting with any investigation into reported violations of this trust,” said Frank O'Connell, Commissioner, Georgia Department of Revenue.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: The DeKalb County Tax Commissioner’s Office (the “Tax Commissioner’s Office”) is responsible for the billing and collection of property taxes. The Motor Vehicle Division of the Tax Commissioner’s Office handles all aspects of motor vehicle registrations, including: (a) managing the collection of motor vehicle taxes; (b) issuing vehicle tags and titles; and (c) processing vehicle registration renewals for citizens and businesses located in the county.
From July 2017 to November 2019, Harris served as the Supervisor of Tax Tag Clerks for the Tax Commissioner’s Office. Harris unlawfully exploited his position by accepting more than $35,000 bribe payments from customers to unlawfully register vehicles or renew vehicle registrations.
After being fired from the Tax Commissioner’s Office, Harris also attempted to blackmail one of the individuals who had been paying him bribe money. In December 2019, Harris sent a series of text messages to the individual stating that he was under investigation by the FBI; that the FBI had a video of Harris with the individual; that “[a]ll of us can be in trouble”; that Harris needed to know “how much” money he would receive to not share this information to the FBI; and that Harris was “not going to prison empty handed. It’s that simple.”
Based on this conduct, the U.S. Attorney charged Harris with bribery and blackmail via a criminal information. Harris pleaded guilty to both charges and, on November 10, 2020, received a sentence of two years in prison. The Court gave Harris approximately six months to report to prison in consideration of safety protocols resulting from the COVID-19 pandemic.
In early March 2021, while awaiting his report to federal prison, Harris met an individual (“Person 1”). Even though Harris had been terminated from his position with the Tax Commissioner’s Office, Harris claimed that he had the key to the office and that he ran the office. Harris also falsely claimed to Person 1 that in exchange for a payment of between $1,200 and $1,500 per vehicle Harris could obtain vehicle tags for stolen vehicles, and that for a payment of $4,000 Harris could obtain a Commercial Driver’s License for Person 1.
On March 22, 2021, Person 1 asked Harris about obtaining a tag for a vehicle, even though Person 1 did not have the vehicle’s title or any other documentation required to register the vehicle. In response, Harris falsely stated that he knew a woman who could register the vehicle if Person 1 paid the woman a $1,000 bribe payment.
On March 23, 2021, Harris again falsely claimed to Person 1 that the woman wanted a $1,000 bribe payment to register the vehicle. As a result, Person 1 gave Harris $1,000 in cash. But Harris then kept the $1,000 in cash, stopped all communications with Person 1, and never obtained a vehicle tag for Person 1.
Based on this conduct, on December 13, 2022, a federal grand jury charged Harris, 54, of Union City, Georgia, with three counts of wire fraud. 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 United States’ burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation, DeKalb County District Attorney’s Office, and Georgia Department of Revenue are investigating this case.
Assistant U.S. Attorney Jeffrey W. Davis is prosecuting the case. Assistant U.S. Attorney Nicholas Hartigan previously prosecuted this 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.
Cartersville businessman sentenced to federal prison for filing a false tax returnRead the Press Release
ROME, Ga. - Mohammed Ajmal, a Cartersville businessman, has been sentenced for making and subscribing a false tax return. Ajmal failed to report income from over two million dollars in “kickback” payments from the use of coin-operated amusement machines in his service stations and convenience stores.
“Ajmal exploited his relatives in his plan to cheat the IRS out of hundreds of thousands of dollars,” said U.S. Attorney Ryan K. Buchanan. “Ajmal is now headed to federal prison and will be required to pay full restitution as part of his sentence.”
“Consumed by greed, Mohammed Ajmal utilized his family members to hide income generated from kickbacks and filed a false tax return because he failed to report the income,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation will continue to pursue anyone who commits tax fraud. Those harboring ideas on cheating the tax system, take note that prison time is a consequence for such actions.”
“The GBI Commercial Gambling Unit investigated this case along with federal and local partners. This defendant seeking to defraud the government by evading taxes is being held accountable,” said Michael J. Register, Director, the Georgia Bureau of Investigation.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Ajmal owned several gas stations and convenience stores in the Cartersville, Georgia, area through various corporations. Many of the stores contained coin-operated amusement machines, known as “COAMs.” COAMs are regulated by the Georgia Lottery Corporation.
Between 2013 and 2015, the Georgia Lottery Corporation issued administrative regulations under Georgia law, which resulted in Ajmal receiving less revenue from the COAMs. In response, Ajmal contacted the company holding the master license for the COAMs and conveyed that the company must pay him additional money, or kickbacks, if the company wished to continue operating COAMs on Ajmal’s properties.
To disguise the kickback payments, Ajmal told the company to write checks to his relatives. Ajmal then used the monies for his own benefit, including to build a new home. From 2015 through 2018, the amount of the kickbacks totaled $2,292,847. Ajmal did not report any of this income on his tax returns for 2015 through 2017. So Ajmal paid less federal tax than he actually owed for those years.
Mohammed Ajmal, 49, of Cartersville, Georgia, has been sentenced to two years in prison to be followed by one year of supervised release and ordered to pay restitution in the amount of $734,232.05. Ajmal was convicted of making and subscribing a false tax return on July 12, 2022, after he pleaded guilty.
This case was investigated by Internal Revenue Service Criminal Investigation and the Georgia Bureau of Investigation, with valuable assistance provided by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Cartersville Police Department, Bartow County Sheriff’s Office, and the Georgia Lottery Corporation.
Assistant U.S. Attorneys Alana Black and Michael Herskowitz 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.
Stonecrest’s former Senior Economic Development Manager pleads guilty to theft of COVID-19 relief fundsRead the Press Release
ATLANTA - Clarence Boone, the former Senior Economic Development Manager of Stonecrest, pleaded guilty to conspiring with his wife, Lania Boone, and the former Mayor of Stonecrest, Jason Lary, to steal pandemic relief funds intended to support small businesses in Stonecrest.
“Boone and the former Mayor conspired to fraudulently line each other’s pockets with relief funds that were desperately needed by struggling businesses in Stonecrest,” said U.S. Attorney Ryan K. Buchanan. “We will continue to uncover and prosecute those who exploit government positions and COVID relief programs to fuel their own greed.”
“CARES Act funds were intended to help people and businesses harmed by the pandemic, not to line the pockets of public officials entrusted to lead a community”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to work with our local, state, and federal partners to ensure stolen relief funds are returned to the public, and individuals involved in this type of fraud are prosecuted to the fullest extent of the law.”
“Like the rest of the country, the residents and businesses of Stonecrest community looked to its government for vital assistance in response to the COVID-19 pandemic. Instead of being a trustworthy steward of CARES Act funding, Clarence Boone and his co-conspirators schemed to misappropriate those funds to enrich themselves at the expense of those less fortunate. The DeKalb County District Attorney’s Office will continue to work with its law enforcement partners to bring these bad actors to justice,” said DeKalb County District Attorney Sherry Boston.
According to U.S. Attorney Buchanan, the charges and other information presented in court: In March 2020, the President signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act into law in response to the economic fallout of the COVID-19 pandemic. Under the CARES Act, the federal government distributed COVID-19 relief funds to individual Americans, federal agencies, and state and local governments, including $125 million to DeKalb County. DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest.
In September 2020, Jason Lary, the former Mayor of Stonecrest, allocated $5 million of the relief funds to a Small Business Program which would disburse relief funds based on applications submitted by local businesses. Lary placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. Lary also made the defendant’s wife, Lania Boone, the bookkeeper charged with distributing relief funds. The three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest.
On October 28, 2020, for example, Clarence Boone and Lary circumvented the application process and directed more than $50,000 to a business that they knew was not conducting any legitimate operations, and Lania Boone ultimately wrote the check to disburse the funds. Later, in March 2021, after learning of an investigation into the city’s handling of relief funds and knowing that the business had never filed paperwork to support the grant, Clarence Boone attempted to conceal the scheme by directing the business’s owner to submit an application that contained false statements, even though the Small Business Program had already ceased operations.
Later in December 2020 and January 2021, Clarence Boone coordinated with Lary and Lania Boone to use $108,155.52 of relief funds to pay off the mortgage on Lary’s lakefront home in Macon, Georgia, and used more than $7,600 of relief funds to pay college tuition, a meal plan, books, and rent for Clarence Boone’s son.
Clarence Boone, 60, of Decatur, Georgia, pleaded guilty to conspiracy to commit federal program theft and is scheduled to be sentenced on March 13, 2023. His coconspirators previously pleaded guilty and received the following sentences:
- Jason Lary received a sentence of four years and nine months in prison to be followed by three years of supervised release and was ordered to pay restitution in the amount of $119,607.69. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022.
- Lania Boone received a sentence of six months and one day in prison to be followed by three years of supervised release and was ordered to pay restitution in the amount of $7,657.47. Lania Boone pleaded guilty to conspiracy to commit federal program theft on February 11, 2022.
This case is being investigated by the Federal Bureau of Investigation and the DeKalb County District Attorney’s Office.
Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. Former Assistant U.S. Attorney Trevor Wilmot previously 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 operating out of Alpharetta home sentenced to 25 years in federal prisonRead the Press Release
ATLANTA - Giovani Orozco Ramirez has been sentenced for drug trafficking activities that put large quantities of methamphetamine, heroin, cocaine, and firearms within reach of his young children.
“The defendant, besides dealing deadly illegal drugs, showed a reckless disregard for his children’s safety by keeping these drugs and loaded guns within their plain sight,” said U.S. Attorney Ryan K. Buchanan. “This investigation successfully put an end to his dangerous crimes.”
“Drug distribution delivers misery to communities everywhere. DEA’s mission is about removing the supply before it gets to the consumer. This defendant will no longer be able to distribute the poison that destroys our communities,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
“This is another example as to why partnerships with our federal law enforcement agencies are so vital toward the fight to eradicate illicit drugs from the Communities we serve. We are extremely grateful for the initial work by the DEA and the dedication of the U.S. Attorney’s Office to see this case through to a very successful prosecution. Stopping this criminal element and their nexus goes a long way to strengthening the Quality of Life for us all,” said Chief Mark Mitchell, Johns Creek Police Department.
According to U.S. Attorney Buchanan, the charges and other information presented in court: On April 26, 2017, agents began surveillance at Orozco Ramirez’s home in Alpharetta, Georgia. Orozco Ramirez drove to a meeting in Johns Creek, Georgia to show a potential customer one kilogram of methamphetamine out of a larger quantity that Orozco Ramirez planned to sell. Orozco Ramirez asked for two hours to coordinate a 22-kilogram methamphetamine transaction. Orozco Ramirez left the meeting location and drove back to his home.
Later that day, agents executed a federal search warrant at Orozco Ramirez’s home. Orozco Ramirez’s four minor children were in the hallway of the home. As agents began the search, they realized that the home did not have any working electricity. Co-defendant Brayan Razo Bermudez was in the lower level of the home.
In various locations throughout the house, agents found a total of more than 22 kilograms of methamphetamine, 1.2 kilograms of heroin, and 1.8 kilograms of cocaine. The methamphetamine had a purity of 98 percent and, at an agreed price of $9,200 per kilogram, was worth more than $200,000. Next to the drugs were four fully loaded firearms, including an AR-15 rifle, a shotgun, a pistol, and a revolver. In the house, agents also found another pistol and $53,797 in cash. Neither Orozco Ramirez nor Razo Bermudez were lawfully present in the United States.
Additional investigation revealed that Razo Bermudez and another co-conspirator, Eduardo Reyes Gonzalez, were working together to launder drug proceeds by structuring deposits into bank accounts. Razo Bermudez would deposit funds into a series of bank accounts in the Atlanta area, while Reyes Gonzalez would make withdrawals in McAllen, Texas from those same accounts. The purpose of these transactions was to deliver drug proceeds while disguising the nature, source, and ownership of the money.
Giovani Orozco Ramirez, 31, of Guerrero, Mexico, has been sentenced to 25 years in prison to be followed by five years of supervised release. On June 17, 2022, a jury convicted Orozco Ramirez of the offenses of conspiracy to distribute methamphetamine; possession with intent to distribute methamphetamine, heroin, and cocaine; possession with intent to distribute methamphetamine on premises where minors are present; possession of a firearm in furtherance of a drug trafficking offense; and possession of a firearm by an illegal alien.
In addition to Orozco Ramirez, the following defendants pleaded guilty and have been sentenced:
- Bryan Razo Bermudez, 34, of Michoacan, Mexico, was sentenced to 17 years of imprisonment, followed by five years of supervised release. He pleaded guilty to the offenses of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine on premises where minors are present, possession of a firearm in furtherance of a drug trafficking offense, and money laundering conspiracy on February 21, 2019.
- Eduardo Reyes Gonzalez, 28, of McAllen, Texas, was sentenced to one year, six months of imprisonment, followed by three years of supervised release. He pleaded guilty to money laundering on June 5, 2018.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Nicholas N. Joy 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.
Airline passenger with box cutter who caused flight to be diverted has been indictedRead the Press Release
ATLANTA - William Allen Liebisch has been charged with interfering with the duties of a flight crew after he brought a box cutter aboard a Fronter Airlines flight and told a fellow passenger that he wanted to stab someone, which required the pilot to make an emergency landing in Atlanta.
“People have the right to travel in peace and free from fear of their fellow passengers,” said U.S. Attorney Ryan K. Buchanan. “Passengers who disrupt flights with threats of violence will quickly learn that they will be answering for their conduct in federal court.”
“The FBI is committed to doing its part to prevent violence, intimidation, and threats of violence that endanger passenger and flight crew safety on commercial flights”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully this indictment proves that the federal government takes all threats on aircrafts seriously and violators who disrupt travel will be prosecuted to the fullest extent of the law.”
“Unruly passenger behavior is unsafe and disruptive to the traveling public, as well as the flight crew,” said Todd Damiani, Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General, Southern Region. “We will continue to work with our law enforcement partners to pursue and hold accountable those who choose to engage in such reckless activity while aboard commercial aircraft.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: On November 11, 2022, Liebisch was a passenger aboard a Frontier Airlines flight from Cincinnati, Ohio, to Tampa, Florida. He passed through the Transportation Security Administration (TSA) security checkpoint in the Cincinnati airport, where TSA officers found a box cutter in his possession but mistakenly believed that they had rendered it inoperable by removing its blade.
Once the flight had taken off, Liebisch inserted a spare blade that was stored in the handle of the box cutter. A passenger saw Liebisch use the box cutter to clean his nails. Another passenger reported to two flight attendants that Liebisch said that he was going to stab someone. Because there were no law enforcement officers on the flight, one attendant asked two male passengers to assist. One passenger stood in the back nearby while the other took the seat of the passenger who made the report to the flight attendants. Both men and a flight attendant tried to keep Liebisch calm and under control for the remainder of the flight.
While this was happening, the captain made an emergency landing at the nearest airport, which was Hartsfield-Jackson Atlanta International Airport. Once the plane landed, the passengers were instructed to deplane immediately and to leave their belongings on the plane. Atlanta Police Department (APD) officers were at the gate but did not get on the plane to avoid antagonizing Liebisch, who was in the rear of the plane with the two male passengers. As the last passengers deplaned, Liebisch charged toward a flight attendant at the front of the plane while holding his box cutter. One of the passengers tackled him from behind, and APD officers rushed on the plane to subdue Liebisch. He stopped resisting as soon as they said they would use a taser on him if he did not comply. A subsequent search of his carry-on bag uncovered a second box cutter.
After Liebisch’s arrest, the plane was not able to continue its trip to Tampa until the following morning.
William Allen Liebisch, 42, of Cincinnati, Ohio, has been charged with interfering with the duties of a flight crew, and carrying a weapon aboard an airplane. The magistrate court ordered him to remain in custody pending trial. 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 the U.S. Department of Transportation Office of Inspector General.
Assistant U.S. Attorney Paul R. Jones 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.
Former Assistant Atlanta City Attorney and police officer charged in $7 million PPP fraud schemeRead the Press Release
ATLANTA - Shelitha Robertson, who formerly served as an Assistant City Attorney and a police officer for the City of Atlanta, has been indicted for an alleged scheme to defraud the Paycheck Protection Program (PPP), a federal stimulus program authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“Robertson allegedly stole millions of dollars in taxpayer money intended to help small businesses stay afloat during the pandemic,” said U.S. Attorney Ryan K. Buchanan. “CARES Act loans were designed to help sustain small businesses during the pandemic, not to serve as a source of personal enrichment. We will continue to vigorously investigate and prosecute anyone who fraudulently obtains these critical funds.”
“This indictment charges the defendant with defrauding a government stimulus program designed to help those most in need during the pandemic,” said Federal Deposit Insurance Corporation Inspector General Jay N. Lerner. “We will continue to work with U.S. Attorneys and our law enforcement partners to hold accountable individuals that aim to undermine the integrity of the banking sector. Trusted members of our communities, such as former law enforcement officers and public officials, should be held to the highest standards.”
“The Paycheck Protection Program was intended to help businesses keep their workforce employed during the COVID-19 crisis, not to fund a personal lifestyle,” said U.S. Small Business Administration Office of Inspector General Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG is committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who attempt to abuse the Coronavirus Aid, Relief, and Economic Security Act and its Paycheck Protection Program, which was created to assist legitimate business owners during the pandemic,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of our law enforcement partners and the U.S. Attorney’s Office to ensure individuals engaged in criminal activity are held to account.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Shelitha Robertson and other co-conspirators allegedly submitted fraudulent PPP loan applications on behalf of various companies they owned and controlled. The indictment alleges that Robertson fraudulently obtained over $7 million in PPP loan funds, which was not used for payroll or other permitted business expenses. Robertson allegedly used loan proceeds to purchase luxury items, including a Rolls-Royce, a motorcycle, and jewelry, and to transfer funds to family members and co-conspirators.
Shelitha Robertson, 60, of Atlanta, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. 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 Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), the U.S. Small Business Administration Office of Inspector General (SBA-OIG), and Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorney Bernita Malloy, and Trial Attorney Ariel Glasner of the DOJ Criminal Division’s Fraud Section, are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 192 defendants in more than 121 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
In May 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 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 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 Assistant Atlanta City Attorney and Police Officer Charged in $7 Million PPP Fraud SchemeRead the Press Release
A federal grand jury returned an indictment today charging a Georgia woman with a scheme to defraud the Paycheck Protection Program (PPP), a federal stimulus program authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Shelitha Robertson, 60, of Atlanta, and other co-conspirators allegedly submitted fraudulent PPP loan applications on behalf of various companies they owned and controlled. The indictment alleges that Robertson fraudulently obtained over $7 million in PPP loan funds, which was not used for payroll or other permitted business expenses. Robertson allegedly used loan proceeds to purchase luxury items, including a Rolls-Royce, a motorcycle, and jewelry, and to transfer funds to family members and co-conspirators.
Robertson, who formerly served as an Assistant City Attorney and a police officer in Atlanta, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering. If convicted, she faces a maximum penalty of 20 years in prison on each of the conspiracy and wire fraud charges, and a maximum penalty of 10 years in prison on the money laundering charge.
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 Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration Office of Inspector General (SBA-OIG), and Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The FDIC-OIG, SBA-OIG, and TIGTA are investigating the case.
Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Bernita Malloy for the Northern District of Georgia are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 192 defendants in more than 121 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
In May 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 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 via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Cobb County Sheriff’s Deputy sentenced to prison for child pornography distributionRead the Press Release
ATLANTA - Peter Bilardello, a former Cobb County Deputy Sheriff assigned to the agency’s Sex Offender Unit, has been sentenced to federal prison for distributing child pornography online after entering a guilty plea to the charge in August 2022.
“Bilardello’s crimes constitute a horrific breach of the public’s trust,” said U.S. Attorney Ryan K. Buchanan. “Law enforcement officers like Bilardello, who was responsible for protecting the community from sex offenders, bear a special obligation. It is an especially sad day when those who take an oath to enforce laws to protect potential victims actually break the law and victimize instead. The metro-Atlanta law enforcement community remains committed to working collaboratively and quickly to investigate such reprehensible conduct.”
“Every time pornographic images are distributed online, that child is continuously re-victimized,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate predators who prey on our children, especially ones like Bilardello, who were sworn law enforcement officers that took an oath to protect the citizens of our community.”
“The public places a great amount of trust in law enforcement officers,” said Cobb County Police Chief Stuart VanHoozer. “When a law enforcement officer breaks that trust, it reflects on all officers across this profession. I stand with the honorable women and men of the Cobb County Police Department, with Sheriff Owens and those who serve under his command, and with the remainder of law enforcement professionals across this nation who find acts such as these by law enforcement officers abhorrent. We greatly appreciate U.S. Attorney Buchanan and all our federal partners who allow stronger sentencing and help local agencies like Cobb Police make our community safer. Finally, to the detectives who must work these types of cases routinely, thank you for doing things even most police officers don’t want to do and thank you for the objective and hard work on this case in particular.”
“Bilardello’s actions erode the trust the public places in law enforcement officers,” said Cobb County Sheriff Craig Owens. “I commend the Cobb County Police Department and the U.S. Attorney’s Office for their swift action in investigating these heinous crimes and stopping the spread of child pornography. Justice was served, and this sentence makes clear that no one is above the law, especially those sworn to protect and serve the public.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In August 2021, Cobb County Police began investigating a report from the National Center for Missing and Exploited Children (NCMEC) about suspected child pornography distribution online. The report, which was based on information submitted to NCMEC by the social media company MeWe, indicated that a MeWe account user who was located in Marietta, Georgia, had uploaded and shared approximately 12 images depicting young children engaged in sexually explicit conduct.
Cobb County Police executed a search warrant on the social media account and learned that the account user was Peter Bilardello, who was an active Cobb County Deputy Sheriff. Bilardello had been employed by the Cobb County Sheriff’s office for approximately 17 years. During the time that he was distributing child pornography online he worked in the agency’s Sex Offender Unit where his job duties included maintaining, verifying, and updating the list of registered sex offenders residing in Cobb County.
After identifying Bilardello as the social media account owner, Cobb County Police promptly obtained and executed search warrants for Bilardello’s home and cell phone, and confirmed that Bilardello had uploaded and shared child pornography on MeWe. Investigators also recovered more than 300 images and videos depicting young children engaged in sexually explicit conduct from his cell phone, as well as multiple chats online about his pedophilic desire for young children. Bilardello was immediately arrested and resigned from the Cobb County Sheriff’s Office.
Peter Bilardello, 52, of Marietta, Georgia, was sentenced to five years, ten months in prison to be followed by ten years of supervised release. He was taken into federal custody immediately following sentencing and must register as a sex offender. Bilardello was convicted of one count of distributing child pornography on August 29, 2022, after he entered a guilty plea.
This case was investigated by the Federal Bureau of Investigation and Cobb County Police Department.
Assistant U.S. Attorney Annalise K. Peters 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 State of Georgia employee sentenced to five years in federal prison for stealing $1.3 million earmarked for citizens with disabilitiesRead the Press Release
ATLANTA – Former Georgia Vocational Rehabilitation Agency counselor Karen C. Lyke (formerly known as Karen C. Gregory) has been sentenced to five years in prison for forging educational records and creating fake students with non-existent disabilities and illnesses in an elaborate, multi-year scheme to steal more than $1.3 million.
“The State of Georgia trusted Lyke to serve some of its most vulnerable citizens – Georgians with significant disabilities and illnesses,” said U.S. Attorney Ryan K. Buchanan. “Driven by greed more than integrity, Lyke betrayed that trust and masterminded a complex scheme to invent fake students with non-existent disabilities through forging medical, educational, and financial records. Based on her sophisticated conspiracy, Lyke cheated taxpayers out of more than $1.3 million.”
“Lyke abused her trusted counselor position to line her own pockets, and for that she will spend time in prison,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentencing should serve as a message that the FBI and our partners will not tolerate anyone driven by personal greed to steal American tax payer money that should be going to those who need it.”
“This sentence provides accountability for an absolutely brazen crime that resulted in the largest criminal fraud OIG has ever investigated,” said State Inspector General Scott McAfee. “OIG will continue to uphold the integrity of state programs and ensure taxpayer dollars are used for their intended purpose.”
“This should serve as a reminder that fraud related to the services and resources the Georgia Vocational Rehabilitation Agency provides to our clients will not be tolerated. We are committed to protecting the interests of Georgia taxpayers and our constituents,” says GVRA Executive Director Chris Wells. “As soon as we suspected fraud in this matter, we notified the Georgia Office of the Inspector General. Additionally, we took immediate action to prevent such incidents of fraud even earlier to ensure both our clients and public funds are secure.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: The State Vocational Rehabilitation Services Program is a federally funded program administered by the U.S. Department of Education that offers grant money to assist states to provide services to individuals with disabilities. To be eligible for the State Vocational Rehabilitation Services Program, individuals must have a physical or mental impairment that results in a substantial impediment to employment and require services to achieve employment and to maximize career goals. Across the country, state vocational rehabilitation agencies offer various services to individuals with disabilities, including tuition assistance for vocational training and college education.
The Georgia Vocational Rehabilitation Agency (“GVRA”) operates Georgia’s vocational rehabilitation program. Between 2017 and 2020, the GVRA annually received at least $100,000,000 in federal funds. The GVRA’s Vocational Rehabilitation Program helped people with disabilities (known as “clients”) to find and maintain employment, including by providing funding and tuition assistance for college education.
During this time, the GVRA assigned counselors to assist its clients, including helping clients to obtain tuition assistance. To obtain tuition assistance, a client was required to provide the GVRA with documentation to support obtaining GVRA funds, including: (a) medical records demonstrating a disability related to employment, (b) a driver’s license, (c) proof of registration for classes, and (d) financial aid information.
After receiving the information, the client’s GVRA counselor reviewed the documentation and, if the counselor approved the request for tuition assistance, a check was mailed to the client for the requested educational expenses. From June 2015 to March 2019, Lyke served as a GVRA counselor in its Norcross, Georgia office.
From approximately May 2016 to November 2020, Lyke and her husband, Kevin M. Gregory (who has been separately charged) conspired to steal money from the GVRA by claiming educational expenses for approximately 13 fake students. Lyke and Gregory used the names of actual friends and relatives as the names of the fake disabled students seeking tuition assistance from the GVRA.
Lyke and Gregory used the names of friends and relatives to create fake medical records to make it appear that the approximately 13 fake students qualified for tuition assistance from the GVRA. They claimed that these fake students suffered from disabilities or illnesses like AIDS, cancer, psychosocial impairments, or muscular dystrophy.
As proof of identification, Lyke and Gregory provided the GVRA with manufactured images of fake driver’s licenses that listed the names of their friends and relatives. In one instance, Gregory created a fake driver’s license in his cousin’s name, by using a mug shot image of an unknown individual from the Internet as the driver’s license photograph.
Lyke and Gregory then used photo-editing software to alter authentic college transcripts, financial aid reports, and proofs of registration from actual GVRA clients to support claims that the fake students attended schools like the Georgia Institute of Technology, Georgia State University, or the University of Georgia. Lyke then uploaded the sham driver’s licenses, transcripts, financial aid reports, and other documentation into the GVRA’s electronic database.
Based on false documentation, Lyke and Gregory caused more than 230 checks to be mailed to approximately 13 friends and relatives for bogus educational expenses. In fact, none of the 13 fake students attended any of the claimed colleges or universities.
The GVRA mailed the checks to post office boxes that Lyke and Gregory opened in their own names. After receiving the GVRA checks, Lyke and Gregory either: (a) deposited the GVRA checks into their own bank accounts, or (b) gave the GVRA checks to their friends and relatives to be deposited. The friends and relatives funneled most of the GVRA funds back to Lyke and Gregory after depositing the GVRA checks.
After Lyke left the GVRA in March 2019, Lyke and Gregory continued to submit forged paperwork to the GVRA for non-existent educational expenses. Based on the false submissions, the GVRA continued to issue checks to the fake students for bogus educational expenses. Lyke and Gregory used the stolen GVRA funds to pay for various personal expenses, including cars, jewelry, high-end guitars, and the down payment on a new home. In total, based on the false documentation they created, the GVRA mailed more than 230 checks to Lyke and Gregory resulting in the theft of approximately $1.3 million.
From approximately August 2016 to February 2019, Gregory and Lyke also conspired to steal several high-value computers from the GVRA. Using her position as a GVRA counselor, Lyke and Gregory stole multiple computers by submitting phony paperwork to the GVRA claiming that:
- Three genuine GVRA clients needed computers to further their educational goals when, in fact, the GVRA clients did not know that Lyke had ordered the computers under their names and never received the computers;
- Three fake students (that Gregory and Lyke created) needed the computers to further their educational goals; and
- Gregory was a GVRA client who needed a computer to further his educational goals.
Lyke arranged for at least six computers to be shipped to her attention at the GVRA office in Norcross. Upon delivery, Lyke stole the computers and computer accessories from the GVRA. Lyke and Gregory then sold at least five of the computers on eBay using Gregory’s account. Lyke and Gregory kept one computer for personal use. In total, Lyke and Gregory stole at least seven computers with various accessories worth approximately $32,000.
Based on the conduct above, on September 1, 2022, Karen C. Lyke, 37, of Toledo, Ohio, pleaded guilty to a criminal information charging her with conspiring to commit federal program theft. Lyke was sentenced to five years in prison followed by three years of supervised released and was ordered to pay $1,347,531.76 in restitution to the U.S. Department of Education and the GVRA.
On October 4, 2022, Kevin M. Gregory, 40, of Toledo, Ohio, pleaded guilty to a criminal information charging him with conspiring to commit federal program theft. Gregory is scheduled to be sentenced on January 11, 2023.
The Federal Bureau of Investigation and Georgia Office of Inspector General are investigating the case. The Georgia Vocational Rehabilitation Agency also provided valuable investigative assistance.
Assistant U.S. Attorneys Jeffrey W. Davis and Jesika W. French 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 Amazon employees plead guilty to $10 million fraudRead the Press Release
ATLANTA - Kayricka Wortham and Demetrius Hines have pleaded guilty to defrauding Amazon.com, Inc., and stealing nearly $10 million from the company, while employed at the company in managerial and loss prevention roles.
“The defendants abused their trusted positions to steal nearly $10 million from the company over the course of just a few months,” said U.S. Attorney Ryan K. Buchanan. “This staggering fraud was fueled by pure greed, as evidenced by the high-end real estate, luxury cars, and expensive jewelry that the defendants quickly accumulated with their fraudulent proceeds.”
“These defendants attempted to hide their scheme in plain sight by using their unique roles within their company to conceal the actions from which they fraudulently benefitted,” said U.S. Secret Service Atlanta Special Agent in Charge Steven Baisel. “The defendants ultimately learned that the highly skilled investigators with the Secret Service are uniquely proficient in their work to uncover illicit financial schemes, regardless of attempts to evade law enforcement. I am proud of the investigative team responsible for bringing these defendants before our justice system.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Kayricka Wortham and Demetrius Hines used their positions at Amazon.com, Inc., to submit more than $10 million in fictitious invoices for fake vendors, causing Amazon to pay approximately $9.4 million to Wortham, Hines, and their co-conspirators.
From about August 2020 to March 2022, Wortham worked as an Operations Manager at Amazon. She was employed at the company’s warehouse in Smyrna, Georgia. In her position, Wortham supervised others and acted with authority to approve new vendors and the payment of vendor invoices.
Hines was a Loss Prevention Multi-Site Lead at Amazon. He also worked at the Smyrna warehouse and at other company sites. In his position, Hines was responsible for preventing loss, monitoring security risks, and protecting people, products, and information at 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, thereby enabling those vendor accounts to submit invoices to Amazon. Wortham and her co-conspirators, including Hines, then submitted fictitious invoices for payment. These invoices falsely represented that the fake vendors had provided goods and services to Amazon. The payments for these invoices, typically approved by Wortham, went to bank accounts controlled by Wortham and her co-conspirators.
Wortham recruited other individuals to act as purported vendor contacts for the fake vendors entered into Amazon’s system. She recruited Hines into the scheme and asked him to supply individuals’ information that could be used as fake vendor contacts.
In total, Wortham and her co-conspirators received about $9.4 million from the scheme. They spent the fraudulent proceeds for personal benefit, including purchasing real estate, luxury cars, and expensive jewelry.
As part of her sentencing, Kayricka Wortham, a/k/a “Kayricka Dupree,” a/k/a “Kayricka Young,” 31, of Atlanta, Georgia, will forfeit more than $2.7 million in fraudulent proceeds seized from multiple bank accounts, a residence located in Smyrna, that was purchased with over $900,000 in fraudulent proceeds, and a 2019 Lamborghini Urus, a 2021 Dodge Durango, a 2022 Tesla Model X, a 2018 Porsche Panamera, and a Kawasaki ZX636 motorcycle, all of which were purchased with fraudulent proceeds.
Demetrius Hines, 35, of Smyrna, Georgia, will forfeit more than $600,000 in fraudulent proceeds seized from multiple bank accounts and a 2022 Suzuki GSX1300 Motorcycle, a 2013 Ford Shelby Mustang, a 2021 Ford F-150 Black Widow, a Rolex Day-Date watch, a diamond bracelet, and a diamond necklace, all of which were purchased with fraudulent proceeds.
Wortham and Hines pleaded guilty to conspiracy to commit wire fraud. Sentencing for Wortham is scheduled for March 8, 2023, at 10:30 a.m., before U.S. District Judge Timothy C. Batten, Sr. Sentencing for Hines is scheduled for March 8, 2023, at 11:00 a.m., before Judge Batten.
Brittany Hudson, 37, of Atlanta, Georgia, has also been charged with conspiracy to commit wire fraud. The Criminal Information alleges that Hudson was in a relationship with Wortham and owned a business, Legend Express LLC, which contracted with Amazon to deliver packages to customers. Hudson allegedly conspired with Wortham to submit fictitious invoices for fake vendors as part of the scheme. Her case is pending.
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 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.
Eight gang members sentenced to federal prison for their roles in the execution of a teenage gang member for suspected "snitching"Read the Press Release
ATLANTA – Gary Terrell Davis, an associate of the 135 Piru gang responsible for a series of violent acts throughout the Northern District of Georgia, is the last defendant to be sentenced for his role in a federal RICO conspiracy. The main targets in the case, including lead defendant Maurice Antonio Kent, were previously convicted and sentenced for their roles in the execution-style murder of a 17-year-old boy and other offenses.
“The pain and fear these defendants caused through their senseless violence has forever altered the lives of the victims, the victims’ families, and the witnesses brave enough to assist investigators.” said U.S. Attorney Ryan K. Buchanan. “We are grateful to our law enforcement partners for their perseverance in investigating the various acts of violence and threats of violence committed by this gang over the years and for bringing a measure of closure to those who have been impacted. While the perpetrators of these crimes are now in prison, tragically the gang culture that promoted these violent acts remains a scourge in our community. At-risk teens remain vulnerable to the lure of gang culture and require our collective diligence to avoid this dangerous path.”
“The members of the 135th Street Pirus gang were willing to violently assault and kill people for the smallest perceived sign of disrespect,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI and the Safe Streets Gang Task Force are committed to working with our partners to ensure that individuals are held accountable for their crimes and to eliminate gang violence from our communities.”
“This case is a great example of how collaboration with our local and federal partners is necessary to fight organized crime,” stated Brookhaven Chief of Police Brandon Gurley. “We are grateful for the relentless work of the U.S. Attorney’s Office to hold this final defendant accountable for the violent crimes he committed in our city and throughout Georgia.”
“Again, I’d like to credit the Project Safe Neighborhoods (PSN), a program conducted by the U.S. Attorney’s Office for the Northern District of Georgia that has been in place for many years,” said Cartersville Police Chief Frank McCann. “The PSN program puts federal, state, and local law enforcement officers together regularly to remove violent repeat offenders from our streets.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: The 135 Pirus gang originated in Compton, California, and has a national presence, including in the Northern District of Georgia. Maurice Antonio Kent, a.k.a. “Savage Duze,” 32, the lead defendant charged in the RICO Conspiracy, was a gang leader in northwest Georgia with leadership authority over members in the vicinity of Cartersville and Rome, Georgia.
In the early morning hours of May 13, 2017, an argument occurred outside a Brookhaven, Georgia, nightclub between a California-based 135 Pirus gang member and a rival gang member. At that time, Kent fired multiple rounds into a crowd of people outside the club, critically wounding the other gang member as well as a club security guard. During his flight from the scene, Kent tossed the firearm from a vehicle just before he was apprehended by police. Soon after being arrested and while in custody, Kent learned that a 17-year-old fellow gang member, who may have witnessed the shooting, was interviewed by law enforcement. Kent suspected the teen of “snitching.” Two days later, 135 Pirus gang members devised a plan to lure the teenager to Bartow County, where they shot and killed him with Kent’s gun, leaving the boy’s body on a rural road.
At Kent’s federal trial earlier this year, a jury heard evidence that eight months prior to the nightclub shooting, Kent committed a drive-by shooting of a man standing in his front yard in Cartersville, Georgia. After that shooting, Kent threw the firearm into Lake Allatoona. The FBI later recovered the gun from the bottom of the lake and matched cartridge casings and a bullet from the drive-by shooting to Kent’s firearm.
On May 18, 2022, the jury found Maurice Antonio Kent a.k.a., “Savage Duze,” 32, of Cartersville, Georgia, guilty of RICO Conspiracy, violent crime in aid of racketeering, discharging a firearm during the commission of those violent crimes, and possession of a firearm as a convicted felon. On August 24, 2022, the Court sentenced Kent to 40 years in prison to be followed by three years of supervised release.
Gary Terrell Davis, a.k.a. “Bhody,” 36, of Cartersville, Georgia, was sentenced to seven years in prison to be followed by three years of supervised release.
In addition to Kent and Davis, the following 135 Pirus gang members and associates were previously convicted and sentenced in this case:
- Christopher Nwanjoku, a.k.a. “Problem,” 30, a 135 Pirus leader from Lawrenceville, Georgia, received a sentence of 25 years in prison, to be followed by three years of supervised release. Nwanjoku pled guilty to RICO Conspiracy.
- Jamel Dupree Hughes, a.k.a. “Savage,” 28, a 135 Pirus member from Atlanta, Georgia, received a sentence of 26 years and two months in prison, to be followed by three years of supervised release. Hughes pled guilty to murder in aid of racketeering, use of a firearm in furtherance of a crime of violence resulting in death, attempted murder in aid of racketeering, and discharge of a firearm in furtherance of a crime of violence.
- Cedric Sams, Jr., a.k.a. “Awall,” 30, a 135 Pirus member from Cartersville, Georgia, received a sentence of 20 years in prison to be followed by three years of supervised release. Sams pled guilty to murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in death.
- Michael Kent, a.k.a. “Wikked,” 32, a 135 Pirus associate from Atlanta, Georgia, who is Maurice Antonio Kent’s twin brother, was sentenced to 20 years in prison to be followed by three years of supervised release. Michael Kent pled guilty to RICO Conspiracy.
- Jennifer Foutz, a.k.a. “Rose,” 30, a 135 Pirus member from Acworth, Georgia, was sentenced to 12 years in prison, to be followed by three years of supervised release. Foutz pled guilty to aiding and abetting murder in aid of racketeering and aiding and abetting the use of a firearm in furtherance of a crime of violence resulting in death.
- DaSean Dorey, 29, a 135 Pirus member from Decatur, Georgia, was sentenced to ten years in prison, to be followed by three years of supervised release. Dorsey pled guilty to aiding and abetting murder in aid of racketeering and aiding and abetting the use of a firearm in furtherance of a crime of violence resulting in death.
This case was investigated by the FBI Safe Streets Gang Task Force, with valuable assistance provided by the Brookhaven Police Department, the Bartow County Sheriff’s Office, the Cartersville Police Department, and the Georgia Department of Community Supervision.
Assistant U.S. Attorneys Jessica Morris, who serves as a Project Safe Neighborhoods Coordinator, and Michael Herskowitz, 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.
Roswell fentanyl dealer and his supplier sentenced to federal prison for causing overdose deathRead the Press Release
ATLANTA - Hubert Nathans has been sentenced to federal prison for selling fake Roxicodone pills containing fentanyl to multiple people in Roswell, Georgia, in 2017 and 2018, including pills that resulted in the death of one buyer and serious bodily injury to another. Nathans’ drug supplier, Edward Culton, was sentenced to federal prison earlier this year.
“Nathans and Culton remorselessly sought to profit from drug addiction at any cost,” said U.S. Attorney Ryan K. Buchanan. “Their greed resulted in the tragic death of one person and the near-death of another. As the opioid epidemic continues to rage nationwide, these significant sentences should make clear that opioid suppliers and dealers will be held accountable for the devastation they wreak in our communities.”
“Last year, more than 100,000 people died of drug poisoning, many of which were caused by fentanyl – that’s more than double the occupancy of Truist Park” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “These two defendants contributed to this staggering statistic and will therefore spend a lengthy time behind bars.”
“The success of this investigation is a result of the collaborative efforts of ATF and our local partners,” said ATF Assistant Special Agent in Charge Beau Kolodka “ATF will continue to dedicate federal resources in conjunction with the crucial contributions of local agencies towards the eradication illegal drug and firearm activity.
“Each and every pill distributed by Nathans and Culton in our community represented the potential for another life lost. We remain committed to working hand-in-hand with our law enforcement partners to stem the tide of overdose deaths, and to aggressively pursuing the entire criminal ecosystem that contributes to them,” said Roswell Police Chief James Conroy.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In the fall of 2017, the Roswell Police Department began an investigation after reports that Nathans was distributing opioids that had led to overdoses. Law enforcement eventually confirmed that Nathans was distributing fake Roxicodone pills containing fentanyl and that Edward Culton, who was living in a high-rise apartment in the Buckhead section of Atlanta, was his supplier.
On February 15, 2018, agents arrested Culton and Nathans. Agents seized almost 1000 pills containing fentanyl during a search of Culton’s apartment. The investigation further revealed that Nathans sold fentanyl pills supplied by Culton to 24-year-old T.C. on October 2, 2017, and that those pills caused T.C.’s overdose death.
After learning of T.C.’s death, Nathans egregiously returned to dealing fentanyl and, three months later, sold pills to 30-year-old E.M., who also would have died had she not received emergency treatment at a local hospital.
Hubert Nathans, 33, of Roswell, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to 12 years in prison followed by 15 years of supervised release. He was convicted of these charges on August 13, 2018, after he pleaded guilty to conspiring to distribute and possessing with intent to distribute fentanyl that caused overdoses resulting in death and serious bodily injury.
Edward Culton, 29, of Atlanta, Georgia, was sentenced to 18 years, three months in prison to be followed by five years of supervised release. He was convicted of these charges on September 8, 2022, after he pleaded guilty to conspiring to possess fentanyl with intent to distribute and aiding and abetting the distribution of fentanyl.
This case was investigated by the Drug Enforcement Administration, the Roswell Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorneys Tyler Mann and Nicholas Hartigan 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.
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.
Television personalities sentenced to years in federal prison for fraud and tax evasionRead the Press Release
ATLANTA – Todd and Julie Chrisley have been sentenced to 12 and seven years, respectively, in federal prison after a jury convicted them of bank and tax fraud offenses following a nearly three-week jury trial.
“Over the course of a decade, the defendants defrauded banks out of tens of millions of dollars while evading payment of their federal income taxes” said U.S. Attorney Ryan K. Buchanan. “Their lengthy sentences reflect the magnitude of their criminal scheme and should serve as a warning to others tempted to exploit our nation’s community banking system for unlawful personal gain.”
“As this sentencing proves, when you lie, cheat, and steal, justice is blind to your fame, fortune, and position,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is proud to work with our law enforcement partners at the IRS and the U.S. Attorney's office to pursue and prosecute individuals that are driven by greed to evade the law.”
“The Chrisleys defrauded financial institutions and the Federal Government through tax evasion and other fraudulent means in an effort to minimize their tax liability, but project an image of wealth,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “This sentencing serves notice that no matter a person’s celebrity status, there are severe consequences for defrauding the American tax system.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Todd and Julie Chrisley conspired to defraud community banks in the Atlanta area to obtain more than $36 million in personal loans. The Chrisleys, with the help of their former business partner, submitted false bank statements, audit reports, and personal financial statements to Georgia community banks to obtain the loans. The Chrisleys spent the money on luxury cars, designer clothes, real estate, and travel – and used new fraudulent loans to pay back old ones. After spending all the money, Todd Chrisley filed for bankruptcy and walked away from more than $20 million of these fraudulently obtained loans.
Later, while earning millions from their TV show, Todd and Julie Chrisley, along with their accountant, Peter Tarantino, conspired to defraud the Internal Revenue Service. Throughout the conspiracy, the Chrisleys operated a loan-out company. To evade collection of half a million dollars in delinquent taxes owed by Todd Chrisley, the Chrisleys opened and kept the corporate bank accounts only in Julie Chrisley’s name. But after the IRS requested information about bank accounts in Julie Chrisley’s name, the Chrisleys transferred ownership of the corporate bank account to a relative to further conceal their income from the IRS.
In addition, the Chrisleys failed to file tax returns or pay any taxes for the 2013, 2014, 2015, or 2016 tax years. As a part of the tax evasion scheme, Tarantino was convicted of filing two false corporate tax returns for the loan-out company, which falsely claimed that the company earned no money and made no distributions in 2015 and 2016.
The Chrisleys also attempted to obstruct justice before being charged as well as during the trial. After learning of the grand jury investigation, Julie Chrisley submitted a fraudulent document in response to a grand jury subpoena to make it appear that the Chrisleys had not lied to the bank when they transferred ownership of the loan-out company’s bank account to their relative.
On June 7, 2022, a jury convicted the Chrisleys on all counts of a superseding indictment, including conspiracy to commit bank fraud, bank fraud, wire fraud, and conspiracy to commit tax evasion. The jury convicted Julie Chrisley of an additional charge of obstruction of justice. Tarantino was also convicted of multiple tax-related violations.
U.S. District Judge Eleanor L. Ross sentenced the defendants as follows:
- Todd Chrisley, 54, of Brentwood, Tennessee, has been sentenced to 12 years in prison to be followed by three years of supervised release.
- Julie Chrisley, 49, of Brentwood, Tennessee, has been sentenced to seven years in prison to be followed by three years of supervised release.
- Peter Tarantino, 60, of Alpharetta, Georgia, has been sentenced to three years in prison to be followed by three years of supervised release.
As part of sentencing, the Court ordered both Todd and Julie Chrisley to pay restitution and will determine the exact amount at a later date.
This case was investigated by the FBI and IRS Criminal Investigations.
Assistant U.S. Attorneys Thomas J. Krepp, Annalise K. Peters, Alex R. Sistla, Sekret T. Sneed, Vivieon K. Jones, and Amy Palumbo 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.
10 charged in business email compromise and money laundering schemes targeting Medicare, Medicaid, and other victimsRead the Press Release
ATLANTA - The U.S. Department of Justice announced charges against 10 defendants in multiple states in connection with multiple business email compromise (BEC), money laundering, and wire fraud schemes that targeted Medicare, state Medicaid programs, private health insurers, and numerous other victims and resulted in more than $11.1 million in total losses.
“These defendants defrauded numerous individuals, companies, and federal programs, resulting in millions of dollars in financial losses to vital federal programs meant to provide assistance to those in need,” said U.S. Attorney Ryan K. Buchanan. “We pledge to continue to work alongside our federal and state partners to investigate and prosecute those who engage in fraud and money laundering activities resulting in financial and psychological harm to members of our communities.”
“The Criminal Division and our partners are committed to holding accountable those who seek to line their own pockets through sophisticated business email compromise and money laundering schemes targeting public and private health insurers as well as individual victims,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these cases demonstrate, we will work tirelessly to combat fraud affecting Medicare and Medicaid, which are vital in providing health care to millions of Americans, including some of our most vulnerable citizens.”
“These allegations depict a brazen effort to siphon monies, in part, from essential health care programs to instead fund personal gain,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “A top concern of HHS-OIG is the integrity of programs such as Medicare and Medicaid, so it is an utmost priority to pursue individuals who financially exploit them. This coordinated action is a prime example of the commitment that HHS-OIG and our law enforcement partners have to defending the federal health care system against fraud.”
“Millions of American citizens rely on Medicaid, Medicare, and other health care systems for their health care needs. These subjects utilized complex financial schemes, such as BECs and money laundering, to defraud and undermine health care systems across the United States,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Elder fraud and romance fraud schemes utilized by the subjects often target our most vulnerable citizens and the FBI is committed to pursuing justice for those who were victimized by these schemes.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: The charges stem primarily from BEC schemes in which individuals posing as business partners are alleged to have fraudulently diverted money from victims’ bank accounts into accounts they or co-conspirators controlled (sometimes through the use of recruited “money mules”) by using spoofed email addresses, bank account takeovers, and similar fraudulent methods designed to deceive victims into believing they were making legitimate payments. The prosecutions allege schemes that fraudulently diverted payments intended for hospitals to provide medical services to patients.
For example, fraudulent emails from accounts resembling those associated with actual hospitals were allegedly sent to public and private health insurance programs requesting that future reimbursements be sent to new bank accounts that did not belong to the hospitals.
Unwittingly, five state Medicaid programs, two Medicare Administrative Contractors, and two private health insurers allegedly were deceived into making payments to the defendants and their co-conspirators instead of depositing the reimbursement payments into bank accounts belonging to the hospitals.
The defendants and their co-conspirators allegedly laundered the proceeds fraudulently obtained from these health care benefit plans and from other victims by, among other things, withdrawing large amounts of cash, layering them through other accounts they or their co-conspirators opened in the names of false and stolen identities and shell companies, transferring them overseas, and purchasing luxury goods and exotic automobiles.
This week, charges were unsealed against six defendants in the Northern District of Georgia and against one defendant in the District of South Carolina. In addition, one defendant was previously charged in the Northern District of Georgia and one was previously charged in the Eastern District of Virginia. A third defendant previously charged in the Northern District of Texas has entered a guilty plea and been sentenced. The alleged schemes caused more than $4.7 million in losses to Medicare, Medicaid, and private health insurers, and $6.4 million in losses to other federal government agencies, private companies, and individuals, such as elderly romance fraud victims who were deceived into sending hundreds of thousands of dollars to the defendants and their co-conspirators.
The seven defendants against whom charges were unsealed this week are:
- Biliamin Fagbewesa, 31, of Columbia, South Carolina, was charged by indictment in the District of South Carolina on November 8 with three counts of money laundering and one count of unlawful procurement of naturalization. According to court documents, Fagbewesa allegedly used a stolen identity to open bank accounts in the name of a shell company to receive more than $1.4 million of proceeds fraudulently diverted from a state Medicaid program, a hospital, and others, approximately $583,000 of which Fagbewesa laundered and spent on, among other things, Fagbewesa’s rental payments.
- Patrick Ndong-Bike, 32, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with four counts of money laundering. According to court documents, Ndong-Bike allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $2.4 million of proceeds of BEC fraud and other similar schemes, approximately $679,000 of which Ndong-Bike laundered and spent, including proceeds that were fraudulently diverted from Medicare and several private companies.
- Desmond Nkwenya, 35, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with two counts of money laundering and one count of bank fraud. According to court documents, Nkwenya allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $308,000 derived from BEC fraud and other similar schemes, all of which Nkwenya laundered. Nkwenya also allegedly received approximately $119,000 as a result of a fraudulent Paycheck Protection Program loan application.
- Cory Smith, 29, of Atlanta, Georgia was charged by indictment in the Northern District of Georgia on November 15 with three counts of money laundering. According to court documents, Smith allegedly opened a bank account in the name of a false identity and used that account receive and launder more than $57,000 fraudulently diverted from a private company in a BEC scheme.
- Chisom Okonkwo, 26, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with three counts of wire fraud, two counts of aggravated identity theft, and six counts of money laundering. According to court documents, Okonkwo allegedly used stolen and false identities to open accounts in the names of shell companies that received approximately $830,000 in proceeds from BEC fraud and other similar schemes, approximately $535,000 of which Okonkwo allegedly laundered through a variety of transactions, including withdrawing large amounts in cash. Okonkwo also allegedly paid for a luxury car through a fraudulent loan she obtained in the name of a stolen identity.
- Olugbenga Abu, 45, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with one count of bank fraud, one count of wire fraud, and four counts of money laundering. According to court documents, Abu allegedly used a false identity to open a bank account that received and laundered more than $95,000 of BEC fraud proceeds. Abu also allegedly obtained a fraudulent loan of more than $341,000 and fraudulently sought an additional $65,000 of loan proceeds from the Small Business Administration (SBA).
- Trion Thomas, 50, of Stone Mountain, Georgia, was charged by information in the Northern District of Georgia on September 21 with conspiracy to commit money laundering. According to court documents, Thomas allegedly received and laundered $93,000 of Medicare payments that had been fraudulently diverted because of a BEC scheme that targeted Medicare.
The three defendants previously charged are:
- Malachi Mullings, 29, of Sandy Springs, Georgia, was charged in the Northern District of Georgia on February 22 with conspiracy to commit money laundering and seven substantive money laundering offenses. According to court documents, Mullings used numerous bank accounts opened in the name of a shell company, The Mullings Group LLC, to receive and launder millions of dollars derived from BEC schemes targeting a health care benefit program, private companies, and individual romance scam victims. In one instance, Mullings laundered $310,000 fraudulently diverted from a state Medicaid program that had been intended as reimbursement for a hospital. In another instance, Mullings received $260,000 from a romance scam perpetrated on an elderly victim, which he subsequently used to purchase a Ferrari.
- Adewale Adesanya, 39, of Jonesboro, Georgia, pleaded guilty in the Northern District of Texas on June 2 to conspiracy to commit money laundering and use of a false passport. According to court documents, Adesanya used a false passport in the name of “Timi Graig” to create a shell company for the purpose of opening bank accounts to receive and launder more than $1.5 million obtained from BEC schemes targeting two state Medicaid programs, the IRS, the SBA, a private company, and two elderly romance scam victims. On September 15, Adesanya was sentenced to four years in prison.
- Sauveur Blanchard Jr., 49, of Richmond, Virginia, was charged by indictment in the Eastern District of Virginia on September 8, 2021, with conspiracy to commit money laundering and four substantive money laundering offenses. According to court documents, Blanchard allegedly opened bank accounts in the names of shell companies to receive and launder more than $55,000 in Medicaid payments intended for a hospital but fraudulently diverted to Blanchard’s account. Trial in this matter is currently scheduled for January 9, 2023.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The HHS-OIG; FBI Omaha Field Office and Seattle Field Office; IRS Criminal Investigation; U.S. Department of Homeland Security Homeland Security Investigations; U.S. Department of State Diplomatic Security Service; U.S. Secret Service; Department of the Army Criminal Investigation Division; U.S. Department of the Treasury Office of Inspector General; Federal Deposit Insurance Corporation Office of Inspector General; Arkansas Medicaid Fraud Control Unit; Wisconsin Department of Justice Division of Criminal Investigation; Minnesota Commerce Fraud Bureau; and Polk County Sheriff’s Office in Iowa are investigating the cases.
Assistant U.S. Attorney Kelly K. Connors for the Northern District of Georgia, Trial Attorneys Gary Winters, Chris Wenger, and Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force are prosecuting the cases, along with Assistant U.S. Attorney Kaitlin Cooke for the Eastern District of Virginia, and Assistant U.S. Attorney Amy Bower for the District of South Carolina. Assistant U.S. Attorney Rachel Scherle for the Southern District of Iowa provided significant assistance in the investigation of these cases. The case against Adewale Adesanya in the Northern District of Texas was prosecuted by the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marty Basu and former Assistant U.S. Attorney Erica Hilliard for the Northern District of Texas.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
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.
10 Charged in Business Email Compromise and Money Laundering Schemes Targeting Medicare, Medicaid, and Other VictimsRead the Press Release
The U.S. Department of Justice announced charges today against 10 defendants in multiple states in connection with multiple business email compromise (BEC), money laundering, and wire fraud schemes that targeted Medicare, state Medicaid programs, private health insurers, and numerous other victims and resulted in more than $11.1 million in total losses.
“The Criminal Division and our partners are committed to holding accountable those who seek to line their own pockets through sophisticated business email compromise and money laundering schemes targeting public and private health insurers as well as individual victims,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these cases demonstrate, we will work tirelessly to combat fraud affecting Medicare and Medicaid, which are vital in providing health care to millions of Americans, including some of our most vulnerable citizens.”
The charges stem primarily from BEC schemes in which individuals posing as business partners are alleged to have fraudulently diverted money from victims’ bank accounts into accounts they or co-conspirators controlled (sometimes through the use of recruited “money mules”) by using spoofed email addresses, bank account takeovers, and similar fraudulent methods designed to deceive victims into believing they were making legitimate payments.
“These defendants defrauded numerous individuals, companies, and federal programs, resulting in millions of dollars in financial losses to vital federal programs meant to provide assistance to those in need,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “We pledge to continue to work alongside our federal and state partners to investigate and prosecute those who engage in fraud and money laundering activities resulting in financial and psychological harm to members of our communities.”
“In the District of South Carolina, we’ve seen a marked increase in email scams, identity theft, and related money laundering schemes,” said U.S. Attorney Adair Boroughs for the District of South Carolina. “These indictments demonstrate our unwavering commitment to fighting internet crime and holding internet fraudsters accountable, particularly when their schemes target taxpayer-funded programs intended to benefit the most vulnerable among us.”
The prosecutions announced today include alleged schemes that fraudulently diverted payments intended for hospitals to provide medical services to patients. For example, fraudulent emails from accounts resembling those associated with actual hospitals were allegedly sent to public and private health insurance programs requesting that future reimbursements be sent to new bank accounts that did not belong to the hospitals. Unwittingly, five state Medicaid programs, two Medicare Administrative Contractors, and two private health insurers allegedly were deceived into making payments to the defendants and their co-conspirators instead of depositing the reimbursement payments into bank accounts belonging to the hospitals. The defendants and their co-conspirators allegedly laundered the proceeds fraudulently obtained from these health care benefit plans and from other victims by, among other things, withdrawing large amounts of cash, layering them through other accounts they or their co-conspirators opened in the names of false and stolen identities and shell companies, transferring them overseas, and purchasing luxury goods and exotic automobiles.
“These allegations depict a brazen effort to siphon monies, in part, from essential health care programs to instead fund personal gain,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “A top concern of HHS-OIG is the integrity of programs such as Medicare and Medicaid, so it is an utmost priority to pursue individuals who financially exploit them. This coordinated action is a prime example of the commitment that HHS-OIG and our law enforcement partners have to defending the federal health care system against fraud.”
“Millions of American citizens rely on Medicaid, Medicare, and other health care systems for their health care needs. These subjects utilized complex financial schemes, such as BECs and money laundering, to defraud and undermine health care systems across the United States,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Elder fraud and romance fraud schemes utilized by the subjects often target our most vulnerable citizens and the FBI is committed to pursuing justice for those who were victimized by these schemes.”
This week, charges were unsealed against six defendants in the Northern District of Georgia and against one defendant in the District of South Carolina. In addition, one defendant was previously charged in the Northern District of Georgia and one was previously charged in the Eastern District of Virginia. A third defendant previously charged in the Northern District of Texas has entered a guilty plea and been sentenced. The alleged schemes caused more than $4.7 million in losses to Medicare, Medicaid, and private health insurers, and $6.4 million in losses to other federal government agencies, private companies, and individuals, such as elderly romance fraud victims who were deceived into sending hundreds of thousands of dollars to the defendants and their co-conspirators.
The seven defendants against whom charges were unsealed this week are:
- Biliamin Fagbewesa, 31, of Columbia, South Carolina, was charged by indictment in the District of South Carolina on Nov. 8 with three counts of money laundering and one count of unlawful procurement of naturalization. According to court documents, Fagbewesa allegedly used a stolen identity to open bank accounts in the name of a shell company to receive more than $1.4 million of proceeds fraudulently diverted from a state Medicaid program, a hospital, and others, approximately $583,000 of which Fagbewesa laundered and spent on, among other things, Fagbewesa’s rental payments. If convicted of the top count, he faces a maximum penalty of 20 years in prison.
- Patrick Ndong-Bike, 32, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with four counts of money laundering. According to court documents, Ndong-Bike allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $2.4 million of proceeds of BEC fraud and other similar schemes, approximately $679,000 of which Ndong-Bike laundered and spent, including proceeds that were fraudulently diverted from Medicare and several private companies. If convicted of the top count, he faces a maximum penalty of 20 years in prison.
- Desmond Nkwenya, 35, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with two counts of money laundering and one count of bank fraud. According to court documents, Nkwenya allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $308,000 derived from BEC fraud and other similar schemes, all of which Nkwenya laundered. Nkwenya also allegedly received approximately $119,000 as a result of a fraudulent Paycheck Protection Program loan application. If convicted of the top count, he faces a maximum penalty of 30 years in prison.
- Cory Smith, 29, of Atlanta, Georgia was charged by indictment in the Northern District of Georgia on Nov. 15 with three counts of money laundering. According to court documents, Smith allegedly opened a bank account in the name of a false identity and used that account receive and launder more than $57,000 fraudulently diverted from a private company in a BEC scheme. If convicted of one of the counts, he faces a maximum penalty of 20 years in prison.
- Chisom Okonkwo, 26, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with three counts of wire fraud, two counts of aggravated identity theft, and six counts of money laundering. According to court documents, Okonkwo allegedly used stolen and false identities to open accounts in the names of shell companies that received approximately $830,000 in proceeds from BEC fraud and other similar schemes, approximately $535,000 of which Okonkwo allegedly laundered through a variety of transactions, including withdrawing large amounts in cash. Okonkwo also allegedly paid for a luxury car through a fraudulent loan she obtained in the name of a stolen identity. If convicted of the top count, she faces a maximum penalty of 20 years in prison.
- Olugbenga Abu, 45, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with one count of bank fraud, one count of wire fraud, and four counts of money laundering. According to court documents, Abu allegedly used a false identity to open a bank account that received and laundered more than $95,000 of BEC fraud proceeds. Abu also allegedly obtained a fraudulent loan of more than $341,000 and fraudulently sought an additional $65,000 of loan proceeds from the Small Business Administration (SBA). If convicted of the top count, he faces a maximum penalty of 30 years in prison.
- Trion Thomas, 50, of Stone Mountain, Georgia, was charged by information in the Northern District of Georgia on Sept. 21 with conspiracy to commit money laundering. According to court documents, Thomas allegedly received and laundered $93,000 of Medicare payments that had been fraudulently diverted because of a BEC scheme that targeted Medicare. If convicted, he faces a maximum penalty of 20 years in prison.
The three defendants previously charged are:
- Malachi Mullings, 29, of Sandy Springs, Georgia, was charged in the Northern District of Georgia on Feb. 22 with conspiracy to commit money laundering and seven substantive money laundering offenses. According to court documents, Mullings used numerous bank accounts opened in the name of a shell company, The Mullings Group LLC, to receive and launder millions of dollars derived from BEC schemes targeting a health care benefit program, private companies, and individual romance scam victims. In one instance, Mullings laundered $310,000 fraudulently diverted from a state Medicaid program that had been intended as reimbursement for a hospital. In another instance, Mullings received $260,000 from a romance scam perpetrated on an elderly victim, which he subsequently used to purchase a Ferrari. If convicted of the top count, he faces a maximum penalty of 20 years in prison.
- Adewale Adesanya, 39, of Jonesboro, Georgia, pleaded guilty in the Northern District of Texas on June 2 to conspiracy to commit money laundering and use of a false passport. According to court documents, Adesanya used a false passport in the name of “Timi Graig” to create a shell company for the purpose of opening bank accounts to receive and launder more than $1.5 million obtained from BEC schemes targeting two state Medicaid programs, the IRS, the SBA, a private company, and two elderly romance scam victims. On Sept. 15, Adesanya was sentenced to four years in prison.
- Sauveur Blanchard Jr., 49, of Richmond, Virginia, was charged by indictment in the Eastern District of Virginia on Sept. 8, 2021, with conspiracy to commit money laundering and four substantive money laundering offenses. According to court documents, Blanchard allegedly opened bank accounts in the names of shell companies to receive and launder more than $55,000 in Medicaid payments intended for a hospital but fraudulently diverted to Blanchard’s account. Trial in this matter is currently scheduled for Jan. 9, 2023. If convicted of any of the counts, he faces a maximum penalty of 20 years in prison.
In each case, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The HHS-OIG; FBI Omaha Field Office and Seattle Field Office; IRS Criminal Investigation; U.S. Department of Homeland Security Homeland Security Investigations; U.S. Department of State Diplomatic Security Service; U.S. Secret Service; Department of the Army Criminal Investigation Division; U.S. Department of the Treasury Office of Inspector General; Federal Deposit Insurance Corporation Office of Inspector General; Arkansas Medicaid Fraud Control Unit; Wisconsin Department of Justice Division of Criminal Investigation; Minnesota Commerce Fraud Bureau; and Polk County Sheriff’s Office in Iowa are investigating the cases.
Trial Attorneys Gary Winters, Chris Wenger, and Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force are prosecuting the cases, along with Assistant U.S. Attorney Kelly Connors for the Northern District of Georgia, Assistant U.S. Attorney Kaitlin Cooke for the Eastern District of Virginia, and Assistant U.S. Attorney Amy Bower for the District of South Carolina. Assistant U.S. Attorney Rachel Scherle for the Southern District of Iowa provided significant assistance in the investigation of these cases. The case against Adewale Adesanya in the Northern District of Texas was prosecuted by the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marty Basu and former Assistant U.S. Attorney Erica Hilliard for the Northern District of Texas.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment and an information are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Charged for Participation in LockBit Global Ransomware CampaignRead the Press Release
A criminal complaint filed in the District of New Jersey was unsealed today charging a dual Russian and Canadian national for his alleged participation in the LockBit global ransomware campaign.
Mikhail Vasiliev, 33, of Bradford, Ontario, Canada, is in custody in Canada and is awaiting extradition to the United States.
“This arrest is the result of over two-and-a-half-years of investigation into the LockBit ransomware group, which has harmed victims in the United States and around the world,” said Deputy Attorney General Lisa O. Monaco. “It is also a result of more than a decade of experience that FBI agents, Justice Department prosecutors, and our international partners have built dismantling cyber threats. Let this be yet another warning to ransomware actors: working with partners around the world, the Department of Justice will continue to disrupt cyber threats and hold perpetrators to account. With our partners, we will use every available tool to disrupt, deter, and punish cyber criminals.”
“Yesterday's successful arrest demonstrates our ability to maintain and apply relentless pressure against our adversaries,” said FBI Deputy Director Paul Abbate. “The FBI's persistent investigative efforts, in close collaboration with our federal and international partners, illustrates our commitment to using all of our resources to ensure we protect the American public from these global cyber threat actors.”
According to court documents, LockBit is a ransomware variant that first appeared in or around January 2020. It has become one of the most active and destructive ransomware variants in the world. Since first appearing, LockBit has been deployed against at least as many as 1,000 victims in the United States and around the world. LockBit members have made at least $100 million in ransom demands and have extracted tens of millions of dollars in actual ransom payments from their victims. The FBI has been investigating the LockBit conspiracy since in or around March 2020.
According to court documents, Vasiliev allegedly participated in the LockBit campaign. He is charged with conspiracy to intentionally damage protected computers and to transmit ransom demands. If convicted, he faces a maximum of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey, Assistant Director Bryan Vorndran of the FBI’s Cyber Division, and Special Agent in Charge James Dennehy of the FBI Newark Field Office made the announcement.
Trial Attorneys Jessica C. Peck and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Andrew M. Trombly and David E. Malagold of the Cybercrime Unit for the District of New Jersey are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Northern District of Georgia and the U.S. Attorney’s Office for the Western District of Pennsylvania.
The case is being investigated by the FBI Newark Field Office, Newark Cyber Crimes Task Force, with assistance from the FBI Atlanta Field Office, the FBI Pittsburgh Field Office, the FBI Miami Field Office, the FBI’s Legal Attaché-Ottawa, the Jersey City Police Department, the New Jersey State Police, and the New Jersey Office of Homeland Security and Preparedness. The Justice Department’s Office of International Affairs has also provided valuable assistance.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Embassy Employee Pleads Guilty to Domestic ViolenceRead the Press Release
A former employee of the U.S. Embassy in the Republic of Moldova pleaded guilty yesterday in a domestic violence case involving his wife, a U.S. diplomat working at the Embassy.
According to court documents, Ilirjan Shema, 46, accompanied his family to Chisinau, Moldova, where his spouse, an employee of the U.S. Department of State, was assigned to work as a Foreign Service Officer at the U.S. Embassy. While in Moldova, Shema obtained a family member position to work at the Embassy. On April 10, 2021, while inside their official residence provided by the embassy, Shema attacked his wife, striking her, throwing her to the ground, and strangling her. The attack resulted in physical injuries. Shema was subsequently arrested on Aug. 5, 2021, when he traveled from Albania to Atlanta, Georgia.
Shema pleaded guilty to a charge of interstate domestic violence. He is scheduled to be sentenced on Feb. 23, 2023 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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, and Principal Deputy Assistant Secretary and Director Carlos Matus of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.
The DSS Office of Special Investigations is investigating the case with the assistance of the Regional Security Office, U.S. Embassy in Chisinau, Republic of Moldova.
Trial Attorney Brian Morgan of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Stephanie Gabay-Smith for the Northern District of Georgia are prosecuting the case.
Atlanta man convicted of laundering over $12 million in stolen identity tax refund fraud schemeRead the Press Release
ATLANTA – A federal jury has found Thomas Addaquay guilty of 29 counts of fraud-related offenses in a stolen identity tax refund fraud scheme, including conspiracy to commit wire fraud, wire fraud, money laundering conspiracy, and money laundering.
“Addaquay and his co-defendants used the personal information of taxpayers to enrich themselves,” said U.S. Attorney Ryan K. Buchanan. “Many of Addaquay’s victims testified in court that they were unaware that their identities had been stolen until they filed tax returns. Theft of tax dollars affects everyone, and this office will bring to justice anyone who seeks to disrupt and take advantage of our tax system at the expense of innocent taxpayers.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From at least 2011 to at least 2016, Thomas Addaquay fraudulently obtained the names, social security numbers, and dates of birth of taxpayers to prepare and file false federal income tax returns. The filing of these fraudulent tax returns resulted in the issuance of thousands of tax refund checks.
Addaquay, to cash these tax refund checks issued in the names of the victims whose identities he stole, represented to a third-party payment processor that he had received the tax refund checks from customers who used the services of his check cashing business, United Consolidated Accounting and Business Services, Inc. Relying on Addaquay’s misrepresentations, the third-party payment processor processed the tax refund checks and wired more than $12 million into business bank accounts controlled by Addaquay.
Sentencing for Thomas Addaquay, 48, of Atlanta, Georgia, is scheduled for January 31, 2023, before U.S. District Judge Leigh Martin May. Addaquay’s co-defendants previously pleaded guilty and will also be sentenced by Judge May:
- Sacoya Lyons pleaded guilty to one count of conspiracy to commit wire fraud. Sentencing is set for January 5, 2023; and
- Nana Addaquay, Thomas Addaquay’s brother, pleaded guilty to one count of money laundering conspiracy. Sentencing is set for January 17, 2023.
Internal Revenue Service Criminal Investigation is investigating the case.
Assistant U.S. Attorneys Sekret T. Sneed and Angela Adams are prosecuting the case. Former Assistant U.S. Attorney Jeff Brown was the initial prosecutor on the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Virginia man pleads guilty to assault of a federal officer and destruction of government propertyRead the Press Release
ATLANTA - Richard Tyler Hunsinger has pleaded guilty to assault on a federal officer and destruction of government property stemming from his use of a homemade explosive device during a protest which threatened the lives of two federal officers during the summer of 2020.
“The citizens of this district have the right to peacefully protest,” said U.S. Attorney Ryan K. Buchanan. “But those who exploit peaceful protests by committing acts of violence, like throwing Molotov cocktails into buildings where law enforcement agents are working, and destroying government property, must be held accountable.”
“Anyone who assaults a law enforcement officer or destroys government property is dangerous and an extreme threat to public safety,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate protesters who turn violent and destructive and will aggressively pursue individuals that undermine the rule of law. Thankfully, no one was seriously injured during Hunsinger’s act of terror.”
“Finding, arresting and prosecuting violent criminals, like Hunsinger, who target law enforcement officers is one of the most important operations there is,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “We are thankful for the hard work done by all of the agencies involved in this case and hope that this sentence serves as a warning to anyone else thinking of committing such heinous acts.”
“The Atlanta Police Department respects every citizen’s right to protest, and we will do everything in our power to protect those rights. However, when a citizen decides to destroy government property, threaten other human beings with bodily harm and use explosive devices during a protest, their actions become criminal and therefore they must be held accountable. We hope this sends a strong message to others, that if you commit these types of acts during a protest, we will find you, and you will be arrested and prosecuted.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On July 23, 2020, Hunsinger began organizing a protest titled “Rally Against Fascism.” The event was scheduled to occur at the Atlanta-Field Office of the Department of Homeland Security, Immigration and Customs Enforcement (the “DHS building”).
On July 25, 2020, at approximately 11:30 p.m., a crowd gathered at the DHS building for the rally and protested outside a fenced area in front of the building. Hunsinger and others, wearing dark clothing and face coverings, breached the fences and began vandalizing the building.
While the DHS building was occupied by at least two federal employees, Hunsinger smashed at least four windows of the front entry of the structure and then lit and threw a Molotov cocktail into the building through a smashed glass door. At the same time, other individuals utilized rocks, cinder blocks, modified fireworks, more Molotov cocktails, and additional materials, to cause extensive damage to the building totaling more than $46,000.00.
Richard Tyler Hunsinger, 29, of Fairfax, Virginia, pleaded guilty to assault on a federal officer in violation of Title 18, United States Code, Sections 111(a)(1) and (b), and destruction of government property, in violation of Title 18, United States Code, Section 1361. Sentencing is scheduled for January 24, 2023, at 10:30 a.m., before U.S. District Judge Amy Totenberg.
This case is being investigated by the Federal Bureau of Investigation and the Department of Homeland Security with assistance from the Atlanta Police Department.
Assistant U.S. Attorney Matthew Carrico is prosecuting this 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.
North Georgia businessman sentenced to prison for dumping hazardous wasteRead the Press Release
ROME, Ga. - Amin Ali has been sentenced for disposing of hazardous waste without a permit after dumping hundreds of drums in a chicken house in North Georgia.
“Ali abused the North Georgia environment by illegally dumping hundreds of drums of waste,” said U.S. Attorney Ryan K. Buchanan. “The environmental laws are designed to keep Georgia’s natural beauty available and safe for future generations and this office will work to enforce those laws.”
“This sentence serves as a reminder that if you choose to undermine environmental regulations by illegally dumping hazardous waste, you will be held accountable for your crimes,” said Special Agent in Charge Chuck Carfagno, of EPA CID Southeast Area Branch. “EPA and its state partners worked together to address the environmental problems and bring the defendant to justice.”
“This case demonstrates how local, state, and federal agencies work together to uphold and enforce laws designed to protect human health and the environment. The Georgia Environmental Protection Division appreciates and would like to acknowledge the hard work and dedication of the women and men who collectively held the responsible party accountable for his actions and developed plans to remediate this release. Such blatant violations of our environmental laws pose serious risk to the surrounding community and to the natural resources of the State of Georgia and must be redressed,” said Sara Lips, Director of Communications and Community Engagement, Georgia DNR Environmental Protection Division.
According to U.S. Attorney Buchanan, the charges and other information presented in court: The Resource Conservation and Recovery Act (RCRA) addresses the problem of hazardous waste transportation, treatment, storage, and disposal. The RCRA is designed to protect human health and the environment by requiring the proper and safe management of hazardous waste – from the creation through the disposal of the waste material. The RCRA prohibits the treatment, storage, and disposal of hazardous waste without a permit issued under the statute. The RCRA also prohibits the transportation of hazardous waste to a facility that lacks a permit to accept hazardous waste.
The defendant, Amin Ali, owned and controlled Goldstar Investment Group LLC, 7 Days Property Management Inc., and Rock Springs Farming LLC. Through these entities, he owned property in Dalton, Georgia (a warehouse formerly owned by a chemical company) and in Rock Springs, Georgia (a farming property containing several old chicken houses).
In August 2021, Ali possessed more than 100 drums and other containers of chemicals, including many containing hazardous waste, moved from the Goldstar property to the Rock Springs property. The drums were discarded in one of the old chicken houses, with some of the drums left in an open trench to be buried. Some of the contents of the drums spilled and leaked into the surrounding soil.
Subsequent testing of the drums and soil revealed the presence of benzene, lead, and chromium. In addition, the contents of the drums were reactive and ignitable.
After being alerted through a call to emergency services, Catoosa County, Georgia, Sheriff, Catoosa County Code Enforcement, Catoosa County Fire, Georgia Environmental Protection Division Emergency Response, Georgia Environmental Protection Division Hazardous Waste Management Section, and EPA Emergency Response responded to the scene. Ultimately, the cost of the clean-up exceeded $500,000.
Amin Ali, 56, of Dalton, Georgia, has been sentenced to two months in prison to be followed by one year of supervised release and ordered to pay a $25,000 fine and restitution in the amount of $32,596.93. Ali was convicted on June 22, 2022, after he pleaded guilty to the charges.
Working with our U.S. Department of Justice partners, the U.S. Attorney’s Office for the Northern District of Georgia seeks to secure environmental justice for all communities, to ensure that everyone enjoys the same degree of protection from environmental and health hazards and equal access to a healthy environment in which to live, learn, play and work. U.S. Attorney Buchanan encourages residents to contact the U.S. Attorney’s Office via email at [email protected] when also contacting local, state, or federal agency hotlines or websites to report environmental, health and safety concerns. Notifying our Office helps us protect the community from harmful violations of federal health & safety laws. For more information, see https://www.justice.gov/usao-ndga/environmental-justice.
This case was investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division and the Georgia Environmental Protection Division Law Enforcement Unit.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Hacker and Dark Market operator arraigned on federal chargesRead the Press Release
ATLANTA - Daniel Kaye has been arraigned on charges of access device fraud and money laundering conspiracy. Kaye’s charges arise from his alleged operation of The Real Deal, a Dark Web market that sold, among other things, hacking tools and stolen login credentials, and his laundering of funds he received from that market.
“While living overseas, this defendant allegedly operated an illegal website that made hacking tools and login credentials available for purchase, including those for U.S. government agencies,” said U.S. Attorney Ryan K. Buchanan. “This case is a timely reminder, during National Cybersecurity Awareness Month, that federal law enforcement will make those accused of breaking U.S. laws face their day in court, regardless of where they reside in the world.”
“This case is an example of our persistent determination to work with our international partners to hold criminals accountable no matter how sophisticated their cyber fraud or their geographic location,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Let this indictment be a message that the FBI and our partners place a high priority on the investigation and prosecution of hackers who intrude into our infrastructure and threaten the personal security of our citizens.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Kaye allegedly operated The Real Deal, a Dark Web market for illicit items, including stolen account login credentials for U.S. government computers; stolen account login credentials for social media accounts and bank accounts; stolen credit card information; stolen personally identifiable information; illegal drugs; botnets; and computer hacking tools. The market was organized into categories, such as “Exploit Code,” “Counterfeits,” “Drugs,” “Fraud & More, “Government Data,” and “Weapons.” The market allowed vendors to create accounts and list their products. These vendors maintained profile pages offering a rating system where buyers could rank vendors.
The indictment alleges that Kaye listed for sale on The Real Deal login credentials for U.S. government computers belonging to the U.S. Postal Service, the National Oceanic and Atmospheric Administration, the Centers for Disease Control and Prevention, the National Aeronautics and Space Administration, and the U.S. Navy. The indictment further alleges that Kaye, along with an individual (or individuals) known as “thedarkoverlord,” trafficked in stolen social security numbers; and that Kaye possessed 15 or more stolen login credentials for Twitter and LinkedIn. Finally, the indictment alleges that Kaye laundered cryptocurrency he obtained from The Real Deal through Bitmixer.io, a website that offered Bitcoin “mixing” services and, through its “mixing” algorithm, sought to keep its users anonymous, private, and immune to Bitcoin blockchain tracing analysis.
On April 13, 2021, a federal grand jury returned an indictment charging Kaye with five counts of access device fraud for unauthorized solicitation, in violation of 18 U.S.C. § 1029(a)(6), one count of using and trafficking in unauthorized access devices, in violation of 18 U.S.C. § 1029(a)(2), two counts of possession of unauthorized and counterfeit access devices, in violation of 18 U.S.C. § 1029(a)(3), and one count of money laundering conspiracy, in violation of 18 U.S.C. § 1956(h). Kaye was overseas at the time the indictment was filed and, in September 2022, consented to his extradition from Cyprus to the United States.
Daniel Kaye, also known as “Popopret,” “Bestbuy,” “TheRealDeal,” “Logger,” “David Cohen,” “Marc Chapon,” “UserL0ser,” “Spdrman,” “Dlinch Kravitz,” “Fora Ward,” and “Ibrahim Sahil,” 34, of London, England, was arraigned before U.S. Magistrate Judge Linda T. Walker. 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. Also the Department of Justice’s Office of International Affairs, Cyprus Ministry of Justice and Public Order, Cyprus Police, German Bundeskriminalamt, and United Kingdom National Crime Agency, assisted in this investigation.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case.
October is recognized as National Cybersecurity Awareness Month. Unfortunately, criminals continue to victimize people online by exploiting their personal security, financial safety, and identity. To help victim service providers and allied professionals better serve victims of cybercrime and keep them safer online, the Office for Victims of Crime Training & Technical Assistance Center offers many resources to update the field about cybersecurity and the tools available to serve victims. Please visit their website to learn more: https://www.ovcttac.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 pleads guilty for his role in international health care fraud schemeRead the Press Release
ATLANTA – Nagaindra Srivastav has pleaded guilty to conspiracy and kickback charges for his role in selling fraudulent doctors’ orders to his co-conspirators, who used the orders to obtain at least $25 million in fraudulent payments from Medicare.
“Srivastav and his co-conspirators targeted our most vulnerable citizens to line their pockets with taxpayer money,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to finding and prosecuting those who exploit telemedicine and use it as a platform for their criminal schemes.”
“Healthcare fraud touches every corner of the United States. Srivastav’s actions cost taxpayers at least $25 million dollars,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “His criminal conduct was driven by personal greed. This guilty plea will serve as a reminder to others that the FBI and its law enforcement partners will investigate and prosecute individuals illegally exploiting healthcare technology for their own riches.”
“Health care fraud is not a victimless crime and those who defraud federal health care programs carelessly waste valuable taxpayer dollars and contribute to the rising cost of health care,” said Special Agent in Charge Tamala E. Miles, at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, HHS-OIG remains committed to investigating and holding accountable perpetrators of health care fraud.”
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, or leg braces.
Through B2B, Srivastav paid and received remuneration for the referral of federal health care business. To accomplish this, 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. Although Srivastav never personally submitted claims to Medicare or any other health care program, he is responsible for at least $25 million in federal health care program reimbursement.
Sentencing for Nagaindra Srivastav, 58, of Tampa, Florida, is scheduled for January 19, 2023, at 10:30 a.m., before U.S. District Judge Steve C. Jones.
This case is being 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 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.
Press release by U.S. Attorney Ryan K. Buchanan relating to the November 2022 General ElectionRead the Press Release
ATLANTA – U.S. Attorney Ryan K. Buchanan announced that Assistant U.S. Attorney (AUSA) Brent Gray will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Gray has been appointed to serve as the District Election Officer (DEO) for the Northern District of Georgia, and in that capacity is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Ryan K. Buchanan. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
U.S. Attorney Buchanan added, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
"The franchise is the cornerstone of American democracy,” said U.S. Attorney Buchanan. “We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”
In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Gray will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: (404) 581-6001.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 770-216-3000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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.
Arizona couple indicted for attempting to extort Georgia TechRead the Press Release
ATLANTA - Ronald Bell was arraigned before Magistrate Judge Regina Cannon on charges arising from a conspiracy to extort the Georgia Institute of Technology by falsely claiming an individual associated with its basketball program committed sexual assault. Bell and co-defendant Jennifer Pendley were indicted on these charges by a federal grand jury on August 24, 2022.
“The defendants are alleged to have falsely accused Georgia Tech’s coach of sexual assault,” said U.S. Attorney Ryan K. Buchanan. “They then demanded a large payment in exchange for a retraction of the claim. The Federal Bureau of Investigation and our other federal law enforcement partners are especially proficient in exposing false allegations designed to extort money. Individuals who attempt to perpetrate such criminal schemes at the expense of law-abiding citizens will be caught and prosecuted.”
“Once again, greed does not pay,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “These defendants sought to damage the reputations of the institution and coach for their own financial gain. The FBI will not stop in bringing people who try and commit this type of fraud to justice. “
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Ronald Bell and his girlfriend, Jennifer Pendley, allegedly conspired with each other, and a Georgia Tech security guard, to falsely accuse an individual associated with Georgia Tech’s men’s basketball team of sexual assault. Bell is alleged to have recruited the security guard to claim falsely that he witnessed an assault of Pendley. Pendley filed a lawsuit claiming sexual battery, sexual assault, and intentional infliction of emotional distress.
Bell allegedly told the security guard that the false accusation of sexual assault could be worth $20 million and promised the guard a share of the money. Bell is also alleged to have communicated with representatives of Georgia Tech and demanded money in exchange for not reporting the claimed sexual assault. Ultimately, the security guard admitted to law enforcement that his statements were false and that Bell asked him to participate in the scheme to support the false sexual assault claim.
The indictment alleges Ronald Bell, 56, and Jennifer Pendley, 50, both from Oro Valley, Arizona, committed conspiracy to transmit a threat interstate, conspiracy to extort property from another, and attempted extortion. 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.
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.
Jury convicts North Carolina man of methamphetamine traffickingRead the Press Release
ATLANTA. – Rodney Dwayne Brendle has been convicted by a jury on two methamphetamine trafficking charges. Just after his initial trial date was set in 2021, Brendle removed his geolocation ankle monitor and became a fugitive from justice. He was later arrested in Oregon.
“Brendle and his co-defendants traveled several hours from North Carolina to Lilburn, Georgia, to purchase a large amount of methamphetamine,” said U.S. Attorney Ryan K. Buchanan. “His conviction following a jury trial serves as a reminder to those residing inside and outside of our district that prosecutions of narcotics traffickers remain a priority for this office and for our federal, state, and local law enforcement partners.”
“The cocktail of deadly chemicals used to manufacture methamphetamine is a recipe for disaster,” said Robert J. Murphy Special Agent in Charge of the DEA Atlanta Field Division. “‘Meth’ not only is volatile and toxic, but it destroys families, communities, and lives. Because of the collective effort between DEA and its law enforcement counterparts, the prosecution of this case and the subsequent guilty verdict were made possible.”
According to U.S. Attorney Buchanan, the charges and other information presented at trial: On June 14, 2019, Drug Enforcement Administration (DEA) agents and other law enforcement officers conducted surveillance of an apartment complex associated with Alexis Figueroa, a narcotics trafficker in Doraville, Georgia. The investigators saw Figueroa complete multiple narcotics transactions that day.
The investigators continued to surveil Figueroa as he drove from the apartment complex to a store in Lilburn. The investigators watched as Figueroa arrived in the store’s parking lot and picked up Rodney Dwayne Brendle’s co-defendant, James Cantley. Cantley entered Figueroa’s vehicle and obtained approximately two kilograms of methamphetamine from Figueroa for $10,000. Brendle and a second co-defendant, Adam Henderson, watched from the front of the store as the transaction occurred. The evidence presented at trial revealed that Brendle, Cantley, and Henderson drove from North Carolina to Georgia to purchase the drugs. Georgia State Patrol officers, working in conjunction with DEA, arrested Brendle, Cantley, and Henderson after the three men departed the parking lot of the store in Brendle’s vehicle.
Brendle was indicted by a federal grand jury on August 27, 2019, on one count of conspiracy to possess with intent to distribute a controlled substance and one count of possession of a controlled substance with intent to distribute. He was already on probation at that time as result of a state court felony guilty plea for possession of methamphetamine in North Carolina.
In addition, while on pretrial supervision awaiting the start of his trial, Brendle removed a geolocation ankle monitor and became a fugitive from justice. He was later arrested in Oregon and returned to the Northern District of Georgia to stand trial. Following a five-day trial, but after deliberating under only two hours, a jury returned guilty verdicts on both counts of the indictment on October 12, 2022. Brendle’s sentencing hearing is scheduled before U.S. District Judge Amy Totenberg in January 2023.
The charges against the co-defendants have also been resolved as follows:
- James Kristoffer Cantley, 40, of Newton, North Carolina, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, and was sentenced to 10 years, one month in prison to be followed by five years of supervised release;
- Adam Shane Henderson, 47, of Hickory, North Carolina, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, and is awaiting sentencing; and
- Alexis Figueroa-Lozano, 23, of Doraville, Georgia, pleaded guilty to trafficking in illegal drugs, and was sentenced to 15 years of confinement in Georgia state court.
This case was investigated by the Drug Enforcement Administration with assistance from the Georgia State Patrol.
Assistant U.S. Attorneys Miguel R. Acosta and Sandy Strippoli 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 woman charged with defrauding FEMA in connection with $156 million Hurricane Maria contractRead the Press Release
ATLANTA – Tiffany Brown has been indicted for allegedly defrauding the Federal Emergency Management Agency (“FEMA”) in connection with a nearly $156 million contract she was awarded that required Brown to provide 30 million self-heating meals to the residents of Puerto Rico in the aftermath of Hurricane Maria in 2017.
“It is unconscionable that Brown would exploit the disaster that Hurricane Maria wrought on Puerto Rico,” said U.S. Attorney Ryan K. Buchanan. “The residents of Puerto Rico—fellow Americans—were depending on and expecting the very best from its federal government, and from one another, during this unprecedented disaster. Our office will not hesitate to prosecute those who attempt to defraud the government during times of great need.”
“The DHS Office of Inspector General extends appreciation to the U.S. Department of Justice and our law enforcement partners for their continued collaboration. This indictment sends a clear message that the theft of federal disaster funds will not be tolerated,” said Dr. Joseph V. Cuffari, Inspector General, U.S. Department of Homeland Security.
“Fraudsters looking to profit off of individuals who are already suffering from the impact of a natural disaster is an appalling and inexcusable crime,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI and our partners will aggressively pursue any person who seeks to line their pockets by defrauding the government during times of tragedy.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On September 20, 2017, Hurricane Maria made landfall as a Category 4 hurricane in Puerto Rico. As a result, officials issued a major disaster declaration, and—shortly thereafter on September 25 and 26, 2017—FEMA issued a solicitation seeking vendors to provide 40,000,000 self-heating meals per week to the island. FEMA made clear that it required meals that were actually self-heating, and that meals requiring a microwave or heating by some external source—such as boiling water—were unacceptable.
On September 28, 2017, Brown submitted a proposal to FEMA falsely representing that her Georgia-based company, Tribute Contracting LLC (“Tribute”), could provide the necessary self-heating meals. In doing so, Brown allegedly misrepresented that Tribute and she:
- Could deliver 10 million meals per day utilizing 210 trucks;
- Prepositioned its inventory and would have more than 300,000 meals in its possession before an emergency response;
- Were equipped with the “vehicles, staff, and know-how to meet. . delivery needs 24 hours a day, 7 days a week”; and
- Partnered with a major logistics agency to meet FEMA’s delivery requirements.
Brown allegedly not only lacked any of these capabilities but had plagiarized significant portions of her proposal. On October 1, 2017, Brown followed-up with FEMA about her proposal and allegedly represented falsely that she had firm confirmation from her “core suppliers for 30 million self-heating meals in 30 days” and that she could begin delivering one million self-heating meals a day beginning on October 7, 2017. In reality, Brown had neither secured any suppliers to provide the self-heating meals nor arranged with any shippers or logistics agencies to deliver these meals.
On October 3, 2017, FEMA awarded Tribute and Brown a $155,982,000 contract that required Brown to deliver 30,000,000 self-heating meals between October 7, 2017 and October 23, 2017, beginning with a delivery of one million meals on October 7. Brown had still not secured a supplier for any self-heating meals when she was awarded the FEMA contract. Nevertheless, between October 7 and 9, Brown allegedly continued to falsely misrepresent the status of her suppliers and timing of deliveries. On October 11, 2017, Brown submitted to FEMA a voucher and supporting documentation (i.e., bills of lading) requesting a payment of $255,000 based on false representations that she had delivered 50,000 self-heating meals.
Although Brown had procured 50,000 meals from a small Georgia vendor, these meals were not self-heating, and Brown in fact never delivered any self-heating meals as required under the FEMA contract. Indeed, after submitting the fraudulent voucher, Brown allegedly was still trying to secure a vendor who could supply the millions of self-heating meals that the FEMA contract required.
On October 19, 2017, Brown continued to claim to FEMA that she would supply the required meals. That same day, FEMA terminated its contract with Brown and Tribute. Even after the contract was terminated, Brown allegedly made false representations to FEMA in an effort to secure additional payments from FEMA for costs that Brown had purportedly incurred while trying to fulfill the contract.
Tiffany Brown, 43, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Regina D. Cannon, charged with 11 counts of major disaster fraud, 14 counts of wire fraud, one count of theft of government money, and three counts of money laundering. 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. Brown was indicted by a federal grand jury on September 27, 2022.
This case is being investigated by the Department of Homeland Security, Office of Inspector General, and Federal Bureau of Investigation, with substantial assistance from the Federal Emergency Management Agency’s Office of Chief Counsel.
Assistant U.S. Attorneys Alex R. Sistla and Jessica Morris 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 City of Atlanta official convicted for accepting bribesRead the Press Release
ATLANTA – A federal jury has convicted former City of Atlanta Commissioner of Watershed Management Jo Ann Macrina for accepting bribes from an Atlanta contractor in exchange for steering city business worth millions of dollars to the contractor’s company.
“Jo Ann Macrina betrayed the citizens of Atlanta by accepting cash, luxury items, and the promise of a future job in return for steering lucrative City of Atlanta contracts to a local businessman,” said U.S. Attorney Ryan K. Buchanan. “Public officials who enrich themselves at the expense of the citizens they are pledged to serve exact a heavy toll on taxpayers, the economy, and the public trust. We remain committed to prosecuting officials who violate their oath to the public.”
“Circumventing the process to hire contractors for the city by accepting bribes to profit personally is the highest form of public corruption,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “As this verdict shows, the people of the City of Atlanta and the FBI will not tolerate anyone who takes advantage of city funds and abuses their position of trust.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Jo Ann Macrina served as the Commissioner of Atlanta’s Department of Watershed Management from 2011 through May 2016. During Macrina’s tenure, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group Inc. (PRAD Group), an architectural, design, and construction management and services firm based in Atlanta. To ensure that PRAD Group received city business worth millions of dollars, Macrina replaced two evaluators who previously represented the Department of Watershed Management with herself and another individual and engaged in other efforts to alter scores that had previously been assigned to potential contractors.
Macrina also discussed potential employment with and accepted things of value from Lohrasb “Jeff” Jafari, who was the executive vice president of PRAD Group. In exchange, Macrina provided Jafari with access to confidential information and preferential treatment with respect to City of Atlanta projects.
Macrina accepted $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, and landscaping work at her home from Jafari either directly or through another employee of PRAD Group. Shortly after Macrina’s employment with the City of Atlanta ended she began working for Jafari and PRAD Group. Between June 2016 and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.
Jo Ann Macrina, 65, of Daytona Beach Shores, Florida, was convicted of conspiracy and federal program bribery. She is scheduled to be sentenced at a later date.
The FBI Atlanta Field Office and IRS Criminal Investigation investigated the case.
Assistant U.S. Attorney Nathan P. Kitchens and Trial Attorney Jolee Porter of the Justice Department’s Public Integrity Section are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former City of Atlanta Official Convicted for Accepting BribesRead the Press Release
A federal jury convicted the former City of Atlanta Commissioner of Watershed Management today for accepting bribes from an Atlanta contractor in exchange for steering city business worth millions of dollars to the contractor’s company.
According to court documents and evidence presented at trial, Jo Ann Macrina, 65, of Daytona Beach Shores, Florida, served as the Commissioner of Atlanta’s Department of Watershed Management from 2011 through May 2016. During Macrina’s tenure, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group Inc., an architectural, design, and construction management and services firm based in Atlanta. In order to ensure that PRAD Group received city business worth millions of dollars, Macrina replaced two evaluators who previously represented the Department of Watershed Management with herself and another individual, and engaged in other efforts to alter scores that had previously been assigned to potential contractors.
The evidence presented at trial established that Macrina also discussed potential employment with and accepted things of value from Lohrasb “Jeff” Jafari, who was the executive vice president of PRAD Group, in exchange for providing Jafari with access to confidential information and preferential treatment with respect to City of Atlanta projects. Macrina accepted $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, and landscaping work at her home from Jafari either directly or through another employee of PRAD Group. Shortly after Macrina’s employment with the City of Atlanta ended, she began working for Jafari and PRAD Group. Between June 2016 and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.
Macrina was convicted of conspiracy and federal program bribery. Her sentencing will be scheduled at a later date. She faces up to 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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; Special Agent in Charge Keri Farley of the FBI Atlanta Field Office; and Assistant Special Agent in Charge Lisa Fontanette of the IRS Criminal Investigation made the announcement.
The FBI Atlanta Field Office and IRS Criminal Investigation investigated the case.
Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Nathan P. Kitchens for the Northern District of Georgia are prosecuting the case.
Justice Department files race discrimination and retaliation lawsuit against Bartow CountyRead the Press Release
ATLANTA - The Justice Department announced that it has filed a lawsuit against Bartow County, Georgia, alleging that the County violated Title VII of the Civil Rights Act of 1964 when it subjected former employee Carlen Loyal to a racially hostile work environment, retaliated against former employee Bobby Turner, and fired both men, who are Black. Title VII is a federal statute that prohibits employers from discriminating on the basis of sex, race, color, national origin and religion. Title VII also forbids employers from retaliating against employees for complaining about discrimination in the workplace or otherwise asserting their rights under Title VII.
“No one should be forced to labor in an environment where employers condone racial slurs and employees are expected to tolerate them,” said U.S. Attorney Ryan K. Buchanan. “It is also unacceptable for an employer to foster a work environment where employees with the courage to report such abhorrent behavior experience retaliation from supervisors and face termination of their jobs. Our office will vigorously and continuously leverage our resources to address this type of illegal discrimination in the workplace.”
“No employee should have to endure racial harassment or retaliation in the workplace, especially racial slurs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Punishing employees for reporting harassment and discrimination to their supervisors is illegal and undermines the basic statutory protections designed to identify and root out racial harassment in workplaces across the country.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Loyal was employed at the County’s Road Department for almost 10 years. Loyal’s brother-in-law, Turner, was also employed by the Road Department for several years. In 2019, Loyal complained to his supervisor that a white co-worker sent him a text message referring to him as an “n-word.”
After Loyal’s complaint, the human resources (HR) director called Loyal into his office, where he subjected Loyal to additional, severe racial harassment in front of the employee who sent the racist text message. The HR director also demanded to know whether Loyal had informed anyone else of the text message, and Loyal responded that he had informed Turner. Just over two weeks later, the County accused Loyal and Turner of misconduct and terminated their employment. The complaint alleges that Loyal and Turner, each of whom had been promoted several times, had no prior history of discipline with the County before Loyal complained about race discrimination.
Loyal and Turner filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Atlanta District Office investigated the charges and found reasonable cause that the County violated Title VII. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
The United States, through this lawsuit, seeks to require the County to develop and implement policies that would prevent discrimination and retaliation. The United States also seeks monetary relief for Loyal and Turner to compensate them for damages that they sustained as a result of the alleged discrimination and retaliation.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
This case is being handled by Assistant U.S. Attorney Trishanda Treadwell and Senior Trial Attorney Jeremy Monteiro of the DOJ Civil Rights Division’s Employment Litigation Section.
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.
DermaTran and three other pharmacies pay over $6.8 million to settle civil claimsRead the Press Release
ATLANTA - DermaTran Health Solutions, LLC; Pharmacy Insurance Administrators, LLC; Legends Pharmacy; TriadRx; and the former owners of Lake Side Pharmacy and related entities, agreed to pay $6,876,564 to resolve allegations that they violated the False Claims Act by waiving copays, charging the government higher prices than permitted, and trading federal healthcare business with other pharmacies.
“Waiving copays and charging the government higher prices leads to overutilization and costs federal programs millions of dollars in unnecessary spending,” said U.S. Attorney Ryan Buchanan. “Our office will continue to enforce the False Claims Act to recover government payments that result from such misconduct.”
“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. “The FBI will not stand by when there are allegations of companies operating corporate wide schemes to illegally line their pockets.”
“Fraud through compounding pharmacies bilked billions out of TRICARE and undermined the integrity of our healthcare system designed to care for our service members and their families,” stated Cynthia Bruce, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS). “I appreciate the partnership among involved law enforcement agencies and the U.S. Attorney’s Office to bring this matter to justice.”
“The OPM OIG has no tolerance for businesses that knowingly take advantage of FEHBP, violating the rules to make a profit,” said Amy K. Parker, Special Agent in Charge, OPM OIG. “I am extremely proud of the hard work of our investigators, analysts, and other law enforcement partners because overcharging the government is not a victimless crime – it contributes to higher premium prices and harms the financial integrity of the FEHBP.”
“The U.S. Postal Service, Office of Inspector General, will continue to tirelessly investigate those who commit frauds against federal benefit programs and the U.S. Postal Service. This settlement is a clear message that the USPS OIG is dedicated to rooting out corruption and bringing to justice those responsible for these crimes, said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General Northeast Area Field Office. The USPS OIG would like to thank our law enforcement partners and the Department of Justice for their efforts in this investigation”.
“Health care providers that try to boost their profits by submitting fraudulent claims to Federal health care programs threaten the integrity of those programs and drive up prices for everyone,” said Tamala E. Miles, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General. “We work tirelessly alongside our law enforcement partners to protect the integrity of Federal health care programs and to ensure the appropriate use of taxpayer dollars.”
The government alleged that in 2012, pharmacy DermaTran Health Solutions, LLC (“DermaTran”), opened in Rome, Georgia, for the purpose of making and selling custom “compound” pain creams. DermaTran’s owners during the relevant time include DIII Consulting, LLC; SRM Holdings, LLC; Gussenhoven Holdings, LLC; Sam Moss; and Robert Gussenhoven. At the same time, another company named Pharmacy Insurance Administrators, LLC (“PIA”), was created to handle the billing for DermaTran. During the relevant time, PIA was a subsidiary of Insurance Administrative Solutions, LLC; which was a subsidiary of Gulfcoast Administrators, LLC; which was majority-owned by Life & Health Holdings, Inc.; which was a subsidiary of State Mutual Insurance Company.
Compound pain creams were very lucrative. Government-backed health insurance programs such as TRICARE (for the military) and the Federal Employees Health Benefits Program (for federal workers) would reimburse hundreds of dollars for these prescriptions. But the government programs imposed certain restrictions to limit spending. For example, patients were required to contribute to the cost of the prescription in the form of copays. The government programs also limited payments to the “usual and customary price”—the price charged to a cash-paying, uninsured patient.
The Government alleged that DermaTran and PIA found ways to avoid these restrictions. DermaTran and PIA created a copay-waiver program where patients would have their copays waived based on a brief, unverified statement of economic need. DermaTran and PIA also misled the government programs about the price being charged to uninsured, cash-paying patients by falsely stating that that price was high when, in fact, it was only $30. As a result, there were days that veterans were charged $600+ for pain creams, while uninsured patients were charged only $30.
Eventually, various auditors uncovered these problems and began to terminate DermaTran from their networks. The Government alleged that DermaTran, looking for a way to continue to earn money, began selling its out-of-network prescriptions to other pharmacies. The other pharmacies could fill the prescriptions because they were still in network. After filling the lucrative prescriptions, the other pharmacies remitted a portion of the proceeds to DermaTran and PIA. The government alleged that this arrangement constituted an illegal kickback. The other pharmacies that participated in this prescriptions-for-money scheme included Legends Pharmacy (in Texas), Lake Side Pharmacy (in Alabama), and TriadRx (in Alabama).
The Government’s False Claims Act claims based on the above allegations are being settled. PIA will contribute $6.5 million to the settlement. DermaTran is no longer operating and was sold in an arm’s-length transaction to a third-party buyer last year for the price of $40,000. That amount will be turned over to the government as part of the settlement. MLDP of Texas, LP (a/k/a “Legends Pharmacy”) will pay $59,293. TRIAD Rx, Inc. will pay $166,547. Lake Side Pharmacy is no longer in business, but former owners of Lake Side Pharmacy will pay $110,724. The former owners include Titan Medical Marketing, LLC; Donald Wayne Bogue; George Takashi Elkins; James Bernard Bogue, Jr.; Robert Joseph Puckett, Jr.; Robert Joseph Puckett, Sr.; Stephen Weston Wilson; and Charles Franklin Taylor, Jr.
This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by a former accountant for DermaTran, under the qui tam, or whistleblower provisions, of the False Claims Act. United States ex rel. Doe v. DermaTran Health Solutions, LLC, et al., Civil Action No. 1:17-CV-1765. Under the False Claims Act, 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 $1,434,775 from the settlements. PIA will also pay her attorney’s fees.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the FBI, the Defense Criminal Investigative Service, the US Office of Personnel Management – Office of the Inspector General, the U.S. Postal Service – Office of Inspector General, and the Health and Human Services – Office of Inspector General.
The civil settlement was reached by Assistant U.S. Attorney Anthony DeCinque.
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.
Four Colombians sentenced for $1.4 million international drug money laundering schemeRead the Press Release
ATLANTA - Gilberto Lopez-Giraldo, Raul Lopez-Giraldo, Guillermo Escobar, and Alexander Duque-Casanova have been sentenced for engaging in a more than $1.4 million drug money laundering conspiracy involving major cities from across the United States to Cali, Colombia.
“Illegal drug proceeds provide the critical lifeblood for drug traffickers,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to disrupting the ability of international drug cartels to profit from their illegal activities by seeking to evade law enforcement detection through money laundering operations conducted within the United States.”
“These criminals thought their scheme would go undetected and they could profit from their criminal activities, but they were wrong,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI, along with our Federal and international partners, is committed to dismantling these organizations no matter where they attempt to operate, and targeting their illicit proceeds is just one of our many tools.”
“This is a victory in the ongoing war against drugs trafficking,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “Concealed income will eventually come to light. Coordination with other agencies and leveraging each of our strengths is the key in the fight against drugs trafficking and money laundering. Thanks to the financial expertise and diligence of our agents, these criminals are now off the street and being held accountable for their actions.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Gilberto and Raul Lopez-Giraldo, Escobar, and Duque-Casanova were members of a money laundering crew based in Cali, Colombia, who conspired to coordinate the collection of money from drug traffickers in cities across the United States, including Atlanta, Chicago, and New York. The group laundered the money through a network of bank accounts in the United States and elsewhere.
The money from these accounts was used to purchase electronics and other goods in the United States then resold on the black market in Colombia. The purpose of this scheme was to secretly convert the drug money collected in the United States into Colombian pesos for drug trafficking organizations.
During the investigation, the defendants and their co-conspirators orchestrated the collection of illicit drug proceeds totaling approximately $1,496,817.
For example, during an undercover operation on November 21, 2012, investigators received $149,980 in U.S. currency from two conspirators who arrived in a truck in the parking lot of a store in Duluth, Georgia. The money was wrapped in bundles and hidden in a box inside a garbage bag. Agents conducting surveillance of the meeting followed the truck from the parking lot to a residence in Norcross, Georgia, that was later determined to be a methamphetamine conversion lab. Republic of Colombia authorities lawfully intercepted telephone conversations between the defendants and other conspirators related to the $149,980 in drug proceeds.
The defendants were later indicted on five counts of money laundering in the Northern District of Georgia, and, with cooperation of Colombian officials, arrested and extradited to the United States. On March 7, 2022, the defendants pleaded guilty to one count of conspiracy to commit money laundering and received the following sentences:
- Gilberto Lopez-Giraldo, 51, of Cali, Colombia, has been sentenced to five years, ten months in prison.
- Raul Lopez-Giraldo, 40, of Cali, Colombia, has been sentenced to five years in prison.
- Guillermo Escobar, a/k/a Memo, 54, of Cali, Colombia, has been sentenced to six years, six months in prison.
- Alexander Duque-Casanova, 48, of Cali, Colombia, has been sentenced to three years, ten months in prison.
The Court adjusted the sentence of each defendant downward by 12 months from these terms of incarceration to account for the length of time the defendants spent in custody in Colombia while awaiting extradition to the United States. One co-defendant, Harby Mayor-Mejia, remains at large outside the United States.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service Criminal Investigation agents in Atlanta, Chicago, and Colombia.
Assistant U.S. Attorneys Nicholas N. Joy, Laurel Boatright Milam, and Tyler A. Mann 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.