Northern District of Georgia
Press releases recorded for this federal judicial district.
Gynecologist and pharmacist plead guilty to operating massive “pill mill” networkRead the Press Release
ATLANTA – Anthony Mills, a former Atlanta gynecologist, and Raphael Ogunsusi, a licensed pharmacist who owned two pharmacies, have pleaded guilty for their roles in operating an Atlanta-area “pill mill” network that supplied addicts and drug dealers with large amounts of dangerous prescription drugs through illegal prescribing and dispensing.
“Mills and Ogunsusi are now admitted drug dealers who violated the public’s trust by engaging in black-market sales of staggering amounts of dangerous opioid pills,” said U.S. Attorney Ryan K. Buchanan. “With opioid overdoses continuing to rise in Georgia, our office will continue to devote resources to prosecuting licensed professionals who fuel rather than help to stem the opioid epidemic.”
“The dispensing of addictive prescription pain medication under the guise of a doctor’s care isn’t about the good of the community or an individual’s specific health needs – it’s about greed,” said Robert J. Murphy, the Special Agent in Charge of the DEA’s Atlanta Field Division. “Individuals like these defendants who operated a ‘pill mill’ are nothing more than drug dealers who are licensed to wear white coats and carry stethoscopes. They will now face the consequences for their criminal actions.”
“These pleas should serve as a warning to any medical professional considering exploiting their patients for profit: you will be caught, you will be prosecuted, and you will pay a steep price,” said Lisa Fontanette, Assistant Special Agent in Charge IRS Criminal Investigation, Atlanta Field Office. “IRS-CI remains committed to working with our law enforcement partners to bring those seeking to enrich themselves at the expense of their patients, to justice.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Anthony Mills was a medical doctor licensed to practice medicine in the State of Georgia since 1997, and whose specialty was listed with the medical board as “Gynecology.” Since at least October 2018, Mills operated a “pill mill” out of his personal residence, where he issued prescriptions for controlled substances (such as large quantities of oxycodone) to drug addicts and drug dealing “sponsors” in exchange for cash payments. Mills did not obtain necessary prior medical records of his “patients,” conduct physical exams, or do anything to establish a valid patient-physician relationship. Instead, he issued prescriptions in the names of individuals he never met or evaluated. Some of the prescriptions that Mills issued were in the names of individuals whose identities had been stolen and others who were incarcerated or deceased at the time Mills wrote the prescriptions.
A large percentage of the illegitimate prescriptions written by Mills to drug-dealing sponsors were filled by licensed pharmacist Raphael Ogunsusi through his pharmacies, Evansmill Pharmacy and Retox Pharmacy. Ogunsusi knew that Mills operated a pill mill out of his home, and that Mills prescribed in excess of medically appropriate dosages and combinations of controlled substances. But Ogunsusi nonetheless dispensed controlled substances pursuant to prescriptions issued by Mills and others, which Ogunsusi knew were issued without a legitimate medical purpose and outside the usual course of professional practice.
Ogunsusi accepted large cash payments in exchange for filling these illegal prescriptions, including as much as $900 to fill just one prescription for oxycodone and $500 to fill one prescription for Percocet. Ogunsusi knew these prices were well above the market value for legitimate prescriptions. To disguise the significantly inflated prices that he was charging to dispense illegal controlled substance prescriptions, Ogunsusi falsified, and directed others to falsify, the pricing information on his pharmacy computers to give the appearance that he had charged market prices for the controlled substance prescriptions. Ogunsusi also required sponsors to purchase a battery of additional non-controlled substances, which he referred to as the “Shebang,” as a condition for filling illegal controlled substance prescriptions. The purpose of these non-controlled substances was to maximize profits for his illegal dispensing. Ogunsusi also directed his pharmacy employees, including another licensed pharmacist, to dispense the illegal prescriptions.
Ogunsusi also pled guilty to money laundering based upon his purchase of an airplane using the proceeds of his illegal drug dispensing and distribution.
In addition to Mills and Ogunusi, pharmacist Moses Kirigwi, as well as sponsors Brittany Tinker and Keandre Bates, pleaded guilty to conspiring with Mills and Ogunsusi. Criminal charges remain pending against eight additional defendants.
Anthony Mills, 56, of Atlanta, Georgia, will be sentenced on February 7, 2023. Keandre Bates and Moses Kirigwi will be sentenced on February 6, 2023. Sentencing dates for Ogunsusi and Brittany Tinker have not yet been scheduled.
This case is being investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys David A. O’Neal and Laurel Boatright Milam are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Ex-husband of former State of Georgia employee pleads guilty to stealing over $1.3 million by creating fake students with non-existent disabilitiesRead the Press Release
ATLANTA – Kevin M. Gregory has pleaded guilty to conspiring with ex-wife and former Georgia Vocational Rehabilitation Agency counselor Karen C. Lyke to forge educational records and to create fake students with non-existent disabilities and illnesses, as part of their sophisticated, multi-year scheme to steal more than $1.3 million.
“Gregory and Lyke exploited a government program designed to empower some of the most vulnerable Americans to achieve their educational and vocational goals,” said U.S. Attorney Ryan K. Buchanan. “Driven by greed, Gregory and Lyke forged medical, educational, and financial records to invent sham students with non-existent disabilities, resulting in an elaborate conspiracy that swindled taxpayers out of more than $1.3 million.”
“Gregory and Lyke stole money targeted for some of society’s most vulnerable. Their greedy actions also impact every taxpayer,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI, alongside our law enforcement partners, will continue to work tirelessly to hold accountable those who steal taxpayer funds.”
“Theft of government money a serious crime that deprives our most vulnerable citizens of vital assistance,” 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.”
“The Georgia Vocational Rehabilitation Agency is committed to protecting the interests of Georgia’s taxpayers and our constituents. Therefore, we notified the Georgia Office of Inspector General as soon as we suspected fraud in this matter. We are also continuing to implement and refine protocols to prevent and catch such incidents of fraud even earlier to ensure both our clients and public funds are secure,” says GVRA Executive Director Chris Wells.
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 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”) 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, mailed a check to the client for the requested educational expenses. From June 2015 to March 2019, Karen C. Lyke served as a GVRA counselor in its Norcross, Georgia office. During the time of the conspiracy, Lyke and Gregory were married.
From approximately May 2016 to November 2020, Gregory and Lyke conspired to steal money from the GVRA by claiming educational expenses for approximately 13 fake students. Gregory and Lyke used the names of actual friends and relatives (including Gregory’s own name) as the names of the fake disabled students seeking tuition assistance from the GVRA.
Gregory and Lyke used the names of friends and relatives to fake medical records to create the appearance that the approximately 13 fake students qualified for tuition assistance from the GVRA. Gregory and Lyke claimed that these fake students suffered from disabilities or illnesses like AIDS, cancer, psychosocial impairments, or muscular dystrophy.
As proof of identification, Gregory and Lyke 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.
Gregory and Lyke 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, Gregory and Lyke caused more than 230 checks to be mailed to approximately 13 friends and relatives for claimed educational expenses. In fact, none of the 13 fake students attended any of the purported colleges or universities.
The GVRA mailed the checks to post office boxes that Gregory and Lyke opened in their own names. After receiving the GVRA checks, Gregory and Lyke either deposited the GVRA checks into their own bank accounts, or gave the GVRA checks to their friends and relatives to be deposited. The friends and relatives funneled most of the GVRA funds back to Gregory and Lyke after depositing the GVRA checks.
After Lyke left the GVRA in March 2019, Gregory and Lyke continued to submit forged paperwork to the GVRA for non-existent educational expenses. Based on the false submissions, the GVRA issued checks to the fake students for bogus educational expenses. Gregory and Lyke 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 Gregory and Lyke 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 invented) needed the computers to further their educational goals; and
- Gregory was a GVRA client who needed a computer to further his educational goals.
Gregory and Lyke arranged for at least six computers to be shipped to Lyke’s attention at the GVRA office in Norcross. Upon delivery, Lyke stole the computers and computer accessories from the GVRA. Gregory and Lyke then sold at least five of the computers on eBay using Gregory’s account. Gregory and Lyke kept one computer for personal use. In total, Gregory and Lyke stole at least seven computers with various accessories worth approximately $32,000.
Based on this conduct, the U.S. Attorney charged Kevin M. Gregory, 40, of Toledo, Ohio, in a criminal information with one count of conspiracy to commit federal program theft. Gregory pleaded guilty to that charge before U.S. District Judge J.P. Boulee.
On September 1, 2022, Karen C. Lyke, 37, of Toledo, Ohio, also pleaded guilty to one count of conspiracy to commit federal program theft.
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.
Georgia man who laundered millions from romance scams, Business Email Compromises, and other online fraud receives 25-year sentenceRead the Press Release
ATLANTA - Elvis Eghosa Ogiekpolor has been sentenced to 25 years in federal prison for money laundering and conspiracy to commit money laundering after being convicted at trial. Ogiekpolor opened and directed others to open at least 50 fraudulent business bank accounts that received over $9.5 million dollars from various online frauds, including romance frauds and business email compromise scams (“BECs”). He then laundered the fraud proceeds using other accounts, including dozens of accounts overseas.
“Ogiekpolor and his co-conspirators were part of a broader international network of online fraudsters and money launderers who wreaked havoc and devastation on unsuspecting individuals and businesses,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our office’s unrelenting commitment to hold accountable those who prey on the vulnerabilities of victims and seek to exploit our nation’s banking system.”
“There is no way we can make the victims of Ogiekpolor and this network whole again, but we hope this sentence will at least give them solace that people are being held accountable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI makes it a top priority to investigate these cyber-crimes and the greedy criminals behind them.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Beginning in at least October 2018 and continuing until August 2020, Ogiekpolor directed at least eight so-called “money mules” – including six who testified against him at trial – to open more than 50 fraudulent business bank accounts in Georgia in the names of a dozen sham companies. The sham companies did not occupy physical premises, earn legitimate income, or pay wages to employees. Ogiekpolor instructed the money mules to open multiple accounts at once and, if one bank closed an account for suspected fraud or other suspicious activity, to simply open additional fraudulent accounts at different banks. Ogiekpolor then provided the accounts to other co-conspirators to receive the proceeds from multiple romance frauds, BEC scams, and other frauds impacting dozens of victims in the U.S. and elsewhere, as well as multiple businesses.
Romance scams are a type of online fraud in which victims are targeted by individuals posing as potential paramours. The fraudsters create fake online dating profiles (often with photographs of attractive men or women) and use these fake personas to express strong romantic interest in the victims to entice them into sending money under false pretenses. Romance scams frequently target vulnerable individuals who possess significant financial assets, such as retired widows or widowers. In Ogiekpolor’s case, unsuspecting victims would typically wire funds directly into one of his fraudulent accounts, or mail checks or cash to Ogiekpolor’s money mules in Georgia. Once the fraud proceeds posted to his accounts, Ogiekpolor laundered the funds, including wiring hundreds of thousands of dollars to overseas accounts, and withdrawing substantial amounts in cash and cashier’s checks.
Multiple romance fraud victims, mainly women, testified at trial. The victims recounted how they met male strangers online and were soon convinced they were in a romantic relationship with the men, even though the victims were in communication with the individuals for months without meeting in person. Often these men claimed they wanted to start a life with the victims and were eager to live with them as soon as some kind of issue was resolved. For example, one romance fraud victim was convinced to wire $32,000 to one of the accounts Ogiekpolor controlled because her “boyfriend” (one of the men online) claimed a part of his oil rig needed to be replaced but that his bank account was frozen. This victim borrowed against her retirement and savings to provide the funds, which ultimately required her to refinance her home to pay back the loan. Another victim testified that she was convinced to send nearly $70,000 because the man she met on eHarmony claimed to need money to promptly make payment on several invoices due to a frozen bank account. The 13 romance fraud victims who testified at trial represented just a small number of such victims who were defrauded into sending money to Ogiekpolor’s accounts.
BEC scams also commonly involve an employee of a company who has been fooled into responding to email messages that appear to be, but are not, legitimate (“spoof emails”). At trial, the jury heard from several businesses – representing just a small sample of the total number of companies defrauded – who had been victimized by spoof emails. In each case, the victim-business believed it was making a payment, often several hundreds of thousands of dollars, to a long-standing vendor only to subsequently learn that they had been tricked into sending the money to an account controlled by Ogiekpolor and thereby defrauded.
In addition to Ogiekpolor, several of his co-conspirators have been convicted of conspiracy to commit money laundering in connection with this case, including:
- Vere Whyte, 35, of Stone Mountain, Georgia, who pleaded guilty on November 15, 2021;
- Kutina Crawford, 49, of Lithonia, Georgia, who pleaded guilty on May 2, 2022;
- Ebony Parks, 28, of Jonesboro, Georgia, who pleaded guilty on May 11, 2022;
- Tiffany Gaines, 42, of Conyers, Georgia, who pleaded guilty on May 16, 2022; and
- Tamara Gaines, 48, of Conyers, Georgia, who pleaded guilty on July 11, 2022.
Elvis Eghosa Ogiekpolor, 46, of Norcross, Georgia, was sentenced by U.S. District Judge William M. Ray, II, to 25 years in prison to be followed by three years of supervised release. The Court will schedule a hearing for a later date at which time it will determine the amount of restitution that Ogiekpolor owes. He was charged by a federal grand jury in February 2022 with one count of conspiracy to commit money laundering and 15 counts of substantive money laundering. A federal jury convicted him of these charges on May 31, 2022, following an eight-day trial.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Alex R. Sistla and Radka T. Nations prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta tax preparer sentenced to prison for filing false client returnsRead the Press Release
ATLANTA - Kyle Self has been sentenced for defrauding the IRS through the submission of false tax returns on behalf of clients.
“Kyle Self scammed the American taxpayers to enrich himself by illegally inflating the amount of tax refunds due to his clients,” said U.S. Attorney Ryan K. Buchanan. “This case serves as a stark warning to other corrupt tax preparers that we will find and prosecute those who exploit the tax system for their personal gain.”
“By submitting fraudulent tax returns Self took advantage of the tax system ultimately for his benefit,” said IRS-Criminal Investigation Assistant Special Agent in Charge Lisa Fontanette. “IRS-Criminal Investigation is committed to investigating tax fraud and other financial crimes and making sure those who abuse the tax system to enrich themselves are brought to justice. We also want taxpayers to choose their tax preparer wisely and look for preparers that will review the return with you. Taxpayers should be wary of any individuals promoting and using schemes to submit false filings to IRS. Should you come across such a scheme, please report it to IRS Criminal Investigation.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Self owned and operated a tax preparation business called DeKalb Tax Services, LLC, which also operated under the names “Tax Shield” and “Instant Tax.” Self filed false tax returns on behalf of his clients between 2015 and 2018 to generate fraudulent tax return payments. Self falsified information related to Schedule Cs, IRA deductions, tuition deductions, capital losses, and head of household filing status, which resulted in a loss to the IRS of $428,175.
For one taxpayer, for example, Self falsely included numerous false statements to inflate her return, claiming that she incurred capital losses on investments, which did not exist. Self fraudulently claimed IRA deductions for the same taxpayer, even though she had no IRA account. Self further claimed deductions for tuition and fees, even though neither the taxpayer nor her son attended school. Self claimed that the taxpayer suffered business losses related to her work as an Uber driver, a job which she had never held. Self also fraudulently reported that the taxpayer’s son was disabled. Self kept much of the money for himself after generating the fraudulently inflated returns.
Kyle Self, 48, of Atlanta, Georgia, has been sentenced to one year, six months in prison to be followed by one year of supervised release and ordered to pay restitution in the amount of $422,936. Self was convicted on these charges on January 11, 2022, after he pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney David A. O'Neal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
South Carolina man convicted of COVID-19 Relief fraud in first Atlanta PPP trialRead the Press Release
ATLANTA – A federal jury in Atlanta convicted a South Carolina man of fraudulently obtaining a $300,000 forgivable Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“During the depths of the pandemic, Travis Crosby decided to steal federal relief funds meant to help struggling businesses,” said U.S. Attorney Ryan K. Buchanan. “Crosby has now been convicted of fraud in Atlanta’s first PPP fraud trial and will soon be sentenced for his theft.”
“Crosby’s personal greed affects every tax paying citizen in this country and took away from government funds intended to provide relief to small business and employees who desperately needed it during the pandemic,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This conviction serves as a message that the FBI and our federal partners remain vigilant to make sure funds provided by programs like PPP are used as intended.”
“The Treasury Inspector General for Tax Administration will aggressively pursue those who attempt to defraud the Coronavirus 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 US Attorney’s Office to ensure this criminal activity is held to account.”
“Conspiring to defraud SBA robs the nation of vital resources intended to support the nation’s small businesses,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs every day. I am continually grateful to the U.S. Attorney’s Office for its leadership and dedication to shining a light on darkness wherever it may be.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Travis Crosby conspired to submit a PPP loan application on behalf of Crosby’s company, Faithful Transport Services LLC (Faithful Transport). The loan application falsely inflated the number of employees and average monthly payroll for Faithful Transport, inducing a larger PPP loan than Crosby could legitimately obtain. Crosby and a co-conspirator also caused the submission of a forged tax document to support the false statements in the loan application. Crosby then engaged in a series of sham transactions with various individuals to make it appear that he was paying them payroll for work at Faithful Transport when, in reality, these individuals returned the vast majority of the funds to Crosby.
Crosby is the 11th defendant to be convicted as part of the Justice Department’s prosecution of a $3 million, Atlanta-based PPP fraud ring. Previously, 10 other members of the scheme were charged by the U.S. Attorney’s Office for the Northern District of Georgia and the DOJ Fraud Section. All other defendants pleaded guilty prior to trial. To date, authorities have recovered approximately $1.2 million of the stolen money.
Travis Crosby, 32, of Wellford, South Carolina, was convicted of conspiracy to commit bank fraud, bank fraud, making a false statement to a bank, and money laundering. He is scheduled to be sentenced on January 10, 2023.
Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 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.
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 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.
The FBI Atlanta Field Office; the SBA-OIG; and the TIGTA investigated the case.
Assistant U.S. Attorney Christopher J. Huber for the Northern District of Georgia, Trial Attorney Matthew Reilly of the Criminal Division’s Fraud Section are prosecuting the case. Special Assistant U.S. Attorney Diane D. Schulman for the Northern District of Georgia and Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section provided significant assistance.
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.
Barrow County man sentenced for kidnapping ex-girlfriendRead the Press Release
GAINESVILLE, Ga. - Ralph Haywood Jones, Jr., has been sentenced after shooting two women on June 10, 2019, including his ex-girlfriend – the mother of his children – whom he shot, kidnapped, and drove to South Carolina where he abandoned her in a parking lot without seeking medical attention. Jones left the other woman, a friend of his ex-girlfriend, lying in a driveway in Winder, Georgia, and bleeding from a gunshot wound to the abdomen.
“Jones’s horrific violence resulted in significant trauma to his victims, their families, and his children,” said U.S. Attorney Ryan K. Buchanan. “Fortunately, the quick response of our local law enforcement partners prevented the victims’ deaths. The intersection of domestic and firearms violence poses a serious risk to public safety and remains a top priority for our office and federal, state, and local law enforcement.”
“The only thing to be thankful for after Jones’s reign of terror is that no one was killed, even though he showed a disregard for human life,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Through the Project Safe Neighborhoods initiative, the FBI will continue to work with our partners to save lives and remove violent offenders from our streets.”
“This investigation represents a great example of several layers of agencies working together to help protect our citizens and help bring justice to victims of a terrible violent crime. Officers and medical responders of local agencies in Georgia initially responded and then collaborated with officers in South Carolina and helped get treatment for the injured and arrest Jones. During the investigation, federal authorities became involved to assist in the investigation and the US Attorney’s office persistently pursued a strong prosecution. A great team effort of multiple agencies. The Winder Police department appreciates the teamwork. Because of these efforts, a violent offender is taken off the streets,” said Chief Jim Fullington, Winder Police Department.
“Cooperation between law enforcement agencies is critical to citizen safety and the events of June 10th, 2019, demonstrates that,” according to Oconee County Sheriff Mike Crenshaw. “After receiving information from the Winder Police Department that a suspect in a crime from their jurisdiction may be located in Oconee County, SC, we located the victim in a vehicle in the parking lot of the store in Fair Play. Based on information we had obtained, Jones was located just down the road and was arrested and charged with a being a Fugitive from Justice in our County. The Sheriff's Office also assisted Winder Police with obtaining a search warrant for the vehicle. The importance of cooperation between law enforcement agencies cannot be overstated and we are grateful that Jones is being held accountable for the crimes he has committed.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On June 10, 2019, Ralph Jones and his ex-girlfriend were scheduled to visit their children during a supervised visitation. His ex-girlfriend asked a friend to accompany them on the trip because she did not want to be left alone with Jones during the car ride.
As the trio prepared for the drive, Jones shot the friend of his ex-girlfriend in the abdomen and left her lying in a driveway in Winder, Georgia. He also shot his ex-girlfriend in the back of the neck. Jones drove his ex-girlfriend to Fair Play, South Carolina, where he abandoned her, along with his car, in a store parking lot. Officers found her bleeding and incoherent from the gunshot wound. Jones was arrested hiding in bushes near the store.
Ralph Haywood Jones, Jr., 30, of Winder, Georgia, has been sentenced to 25 years in prison to be followed by five years of supervised release. Jones pled guilty to kidnapping on April 18, 2022.
This case was investigated by the Federal Bureau of Investigation, the Winder Police Department, and the Oconee County, South Carolina Sheriff’s Office.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
Assistant U.S. Attorney Jennifer Keen 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.
Couple charged with using fictitious employer accounts and stolen identities to fraudulently obtain more than $1.5 million in Unemployment Insurance benefitsRead the Press Release
ATLANTA - Shenita Daniel and Wayne A. Lowe, Jr., have been indicted for allegedly using numerous stolen identities to fraudulently claim Unemployment Insurance (“UI”) benefits under fictitious employer accounts registered with the Georgia Department of Labor. The scheme resulted in the fraudulent payment of more than $1.5 million in UI benefits, including Pandemic Unemployment Assistance and Lost Wage Assistance – programs that were created and expanded to assist individuals experiencing unemployment due to the COVID-19 pandemic.
“During the height of the pandemic in 2020, criminals exploited the availability of COVID-19 unemployment benefits to illegally enrich themselves,” said U.S. Attorney Ryan K. Buchanan. “The defendants allegedly used the identities of numerous victims to illegally obtain proceeds meant to help citizens who desperately needed these funds to support themselves and their families during a time of emotional and economic crisis. In doing so, hey diverted more than $1.5 million in government benefits.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance benefit programs. We will continue to work with our law enforcement partners to investigate these types of allegations," said Mathew Broadhurst, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
“The defendants share one trait in common – greed,” said Special Agent in Charge James E. Dorsey, IRS Criminal Investigation, Atlanta Field Office. “Their desire for money, power and material items, drove them to perpetrate crimes against our unemployment insurance system and prey upon many individuals within our community. The financial expertise and diligence of IRS-CI special agents and partnership with other federal and state law enforcement officers we collectively uncovered these schemes, and now these criminals face the consequences of their actions.”
Dr. Joseph V. Cuffari, Inspector General of the Department of Homeland Security, stated, “The DHS Office of Inspector General will continue to prioritize investigations of individuals who take advantage of programs meant to help those in need and work with our law enforcement partners to bring those who commit fraud to justice.”
“These two individuals stole money from the COVID-19 unemployment insurance program during the pandemic for their own financial gain,” said Tommy D. Coke, Inspector-in-Charge of the Atlanta Division, U.S. Postal Inspection Service. “The U.S. Postal Inspection Service remains committed to working with our law enforcement partners to investigate and prosecute individuals who exploited this program which was designed to assist hard working Americans that were suffering from financial hardships.”
“Along with being tasked by the federal government to provide financial assistance to those unemployed through no fault of their own, it is equally important for our agency to uphold the integrity of the program by monitoring each of the stakeholders for truthful and accurate information,” said Georgia Labor Commissioner Mark Butler. “We were glad to be a partner in potentially bringing justice to an unjust situation meant to extort state and federal dollars for wrongful gain.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Starting in June 2020, Shenita Daniel and Wayne A. Lowe, Jr. allegedly created several fictitious employer accounts with the Georgia Department of Labor. Through these accounts, they submitted false information to the Georgia Department of Labor that was used, in part, to determine whether persons associated with the employer were entitled to receive benefits. This information included the names and personal identifying information for purported employees, which were actually stolen identities of individuals who had no knowledge of the scheme and did not consent to the use of their information. Daniel and Lowe also allegedly submitted false hiring dates and false quarterly wage information for the purported employees.
Within a few days of creating these fictitious employer accounts, claims for UI benefits were allegedly submitted to the Georgia Department of Labor using the stolen identities of persons listed as purported employees of the sham companies.In addition to filing fraudulent claims for UI benefits in Georgia, Daniel and Lowe allegedly used some of the same stolen identities to submit fraudulent claims for UI benefits in California.
The Georgia Department of Labor approved and paid UI claims through the issuance of debit cards mailed to various addresses in the metro-Atlanta area. The Georgia Department of Labor paid more than $1.5 million in UI benefits as a result of the scheme.
Daniel and Lowe allegedly withdrew the fraudulently obtained proceeds through transactions at retail stores, restaurants, and ATM cash withdrawals. Starting in December 2020, they began making large monthly cash deposits of the fraud proceeds into a bank account for a company called Simplicity Cares LTD. Daniel was listed as the company’s Chief Executive Officer, and Lowe was listed as the company’s Chief Financial Officer.
Prior to December 2020, Daniel and Lowe never received payroll payments from this bank account. Daniel and Lowe allegedly started making payroll payments to themselves after the large cash deposits began.
The indictment charges Shenita Daniel, 42, of Atlanta, Georgia, and Wayne A. Lowe Jr., 43, of Union City, Georgia, with conspiracy, mail fraud, wire fraud, aggravated identity theft, and conspiracy to commit money laundering. 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 U.S. Department of Labor – Office of Inspector General, the Internal Revenue Service Criminal Investigation, the U.S. Department of Homeland Security (“DHS”) – Office of Inspector General, and the United States Postal Inspection Service. Special assistance was provided by the Georgia Department of Labor and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorneys Tracia M. King and Kelly K. Connors are prosecuting the case.
This investigation was sponsored by the Georgia Unemployment Insurance Fraud Task Force. The mission of the Task Force is to combat fraud schemes targeting the Unemployment Insurance Benefits program, which is federally and state funded, and administered by the Georgia Department of Labor.
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
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 employee Mitzi Bickers sentenced to 14 years in federal prisonRead the Press Release
ATLANTA – Former City of Atlanta Director of Human Services, Mitzi L. Bickers, has been sentenced to 14 years in prison for accepting approximately $3 million in bribe money to influence government contracts, money laundering, lying to the City of Atlanta to maintain her salary and cabinet-level position, and failing to disclose more than $600,000 in income on her federal tax return.
“For years, Mitzi Bickers masterminded a sophisticated scheme to steer City of Atlanta contracts worth millions of dollars to two businessmen,” said U.S. Ryan K. Buchanan. “By abusing her position, power, and connections, Bickers corrupted the City’s procurement practices, creating a pay-to-play environment where bribe money was rewarded over merit and quality of work. Bickers’ substantial prison sentence serves as a blistering message to anyone tempted to sell the public’s trust for a lake home or an SUV and serves as a reminder that law enforcement officers remain committed to the investigation of corrupt public officials.”
“The actions of Mitzi Bickers not only traded the public’s trust for personal gain, but this was also a shame to her oath of office and her duty to the City of Atlanta. This sentence demonstrates no one is above the law,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Together with our law enforcement partners, the FBI will continue to investigate public officials and those who wish to wrongly influence public officials for personal gain.”
“High ranking City officials hold positions of power and trust not only in their official capacity but also in the eyes of the public. That trust is broken when such officials abuse their power and commit crimes,” said James E. Dorsey, IRS-Criminal Investigation Special Agent in Charge. “Mitzi Bickers failed to uphold the trust and duty bestowed to her by the taxpayers of the City of Atlanta, to serve the public’s interest and not her own. Bickers chose a lakefront home over the best interest of the people of Atlanta.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: While with the City of Atlanta as its Director of Human Services and after leaving the City as a claimed “business consultant,” Bickers accepted more than $2.9 million in bribe payments directly and on behalf of other public officials to steer valuable contracts to businessmen Elvin R. Mitchell, Jr. and Charles P. Richards, Jr.
From February 2010 to May 2013, Bickers served as the City of Atlanta’s Director of Human Services. Even though she held a high-level position with the City, Bickers sold sensitive, non-public information to Mitchell and Richards that was critical to their ability to obtain certain valuable contracts. In effecting the bribery scheme, Bickers accepted money in two distinct ways: (1) Mitchell and Richards paid Bickers “up-front” money, where Bickers arranged for Mitchell and Richards to pay her bribe money in advance of the work to secure the award of a contract; and (2) Mitchell and Richards paid Bickers “kick-backs,” where Bickers instructed Mitchell and Richards to inflate the cost of their work with the City so that Mitchell and Richards could then pay Bickers a percentage of what they earned. Between 2010 and 2013, Mitchell’s and Richards’s companies received City of Atlanta contracts worth millions of dollars for emergency snow removal, sidewalk repair and maintenance, and bridge reconstruction.
In an effort to conceal her relationship with Mitchell and Richards, Bickers filed numerous false City of Atlanta Financial Disclosure forms. For example, Bickers swore under penalty of perjury that in 2011, she engaged in no financial relationships with any outside businesses and did not receive more than $5,000 in income from any outside sources. In fact, Bickers had accepted more than $600,000 in bribe money from Mitchell and Richards during that period.
In 2011, Bickers used most of this bribe money to purchase a $775,000 lakefront home in Jonesboro, Georgia. In that same year, Bickers lied on her federal income tax return by claiming that she earned only $57,896 (resulting in a tax refund of $3,924). In fact, in 2011, Bickers had accepted over $600,000 in bribe payments and owed the IRS more than $200,000 in taxes.
In 2013, the media exposed Bickers’s financial ties to the political consulting firm Pirouette Companies (which was incorporated by Bickers’s girlfriend but operated by Bickers). Shortly thereafter, Bickers resigned her position with the City of Atlanta. After leaving the City of Atlanta, Bickers continued to receive millions of dollars in bribes from Mitchell and Richards to obtain additional City of Atlanta contracts. Bickers spent the proceeds of the bribery scheme on luxury merchandise and travel, four Yamaha jet skis, and a GMC Acadia Denali.
Ultimately, between 2010 and 2014, Bickers accepted more than $2.9 million in bribe money from Mitchell and Richards to secure several lucrative City of Atlanta contracts. In this same period, the City of Atlanta paid Mitchell’s and Richards’s businesses at least $15 million for these government contracts.
On October 22, 2018, a Federal grand jury returned a 12-count Superseding Indictment charging Mitzi Bickers with conspiratorial and substantive bribery, wire fraud, money laundering, obstruction of justice, and tax fraud offenses.
On March 23, 2022, after an approximately two-week trial, a jury convicted Bickers of nine of the 12 counts, including conspiracy to commit bribery, wire fraud, money laundering, and filing a false tax return. The jury acquitted Bickers on two counts of bribery and one count of obstruction.
U.S. District Judge Steve C. Jones sentenced Mitzi L. Bickers, 57, of Atlanta, Georgia, to 14 years in prison, three years of supervised release, and ordered her to pay $2,955,106 in restitution to the City of Atlanta. Bickers also forfeited to the government her lake home, a GMC Acadia Denali, and four Yamaha jet skis because Bickers purchased these items with the proceeds from the bribery conspiracy.
- Elvin R. Mitchell Jr., 68, of Atlanta, Georgia, pleaded guilty to conspiratorial bribery and money laundering and was ultimately sentenced to four years in prison.
- Charles P. Richards Jr., 70, Tucker, Georgia, pleaded guilty to conspiratorial bribery and was ultimately sentenced to one year, eight months in prison.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated the case.
Assistant U.S. Attorneys Jeffrey W. Davis, Nathan P. Kitchens, Tiffany R. Dillingham, and Kelly Connors prosecuted the case. The case was previously prosecuted by former U.S. Attorney Kurt R. Erskine.
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.
Founders, members, and associates of the Ghostface Gangsters gang convicted of RICO conspiracy, drug, and firearm offensesRead the Press Release
ATLANTA - Twenty-five defendants, including three of the seven founders of the Ghostface Gangsters Gang (“GFG”), have pleaded guilty to multiple charges, including Racketeer Influenced and Corrupt Organization Act (RICO) conspiracy, conspiracy to distribute a controlled substance, attempted murder, maiming, possession of a controlled substance with intent to distribute, use of a firearm during a crime of violence, use of a firearm during a drug trafficking crime, and possession of a firearm in furtherance of a drug trafficking crime.
“On the street and from behind bars, Ghostface Gangsters have trafficked drugs and orchestrated and perpetrated horrific acts of violence,” said U.S. Attorney Ryan. K. Buchanan. “Thanks to the tireless and coordinated efforts of our federal, state, and local law enforcement partners, 25 gang members and associates charged in this case have pleaded guilty, including three of the men who created this dangerous criminal organization.”
“ATF will continue to dedicate federal resources in conjunction with those crucial law enforcement contributions of local agencies to the pursuit of eradicating and forestalling criminal gang activity,” said ATF Assistant Special Agent in Charge, Atlanta Field Division, Beau Kolodka.
“The Cobb County Police Department is proud of the work of our investigators and civilian staff who work hand in hand with other local, state, and federal agencies in these types of cases. The perseverance and diligence required of such interagency cooperation is what is necessary to ensure such violent criminals are charged and prosecuted accordingly. We remain dedicated to protecting our citizens and bringing to justice those who would seek to do them harm. In this particular case, Cobb County Police investigators worked long hours and gathered an inordinate amount of evidence to help secure this indictment. We are especially proud of the sincere dedication of all involved. And we vow to continue to work in such a fashion on future cases as well,” said Cobb County Police Chief Stuart VanHoozer.
According to U.S. Attorney Buchanan, the charges and other information presented in court: GFG, a whites-only gang, was originally organized in or about 2000 in a Georgia county jail. Within GFG, the seven founding members are known as “pillars.” All GFG members trace their gang “bloodline” directly back to one of the pillars. GFG members and associates engaged in drug distribution and acts of violence involving murder, kidnapping, assault, and witness intimidation. GFG operated both within and outside the Georgia prison system.
Within the past year, three GFG pillars charged in the case have been convicted and will be, or have been, sentenced by U.S. District Judge Michael L. Brown as follows:
- On August 25, 2022, Jeffrey Alan Bourassa, a/k/a “JB,” “Babyface,” and “Kid,” 40, of Cobb County, Georgia, a GFG founding pillar, pleaded guilty to conspiracy to commit racketeering. He is scheduled to be sentenced on October 25, 2022.
- On July 22, 2021, David Gene Powell, a/k/a “Davo,” 45, of Cobb County, Georgia, a GFG pillar, pleaded guilty to conspiracy to commit racketeering. On February 23, 2022, Powell was sentenced to four years, one month of imprisonment.
- On June 9, 2021, Joseph M. Propps, Jr., a/k/a “JP,” 44, of Smyrna, Georgia, a GFG pillar, pleaded guilty to conspiring to distribute at least 500 grams of methamphetamine. On October 5, 2021, Propps was sentenced to 10 years, one month of imprisonment.
Earlier during the case:
- On September 22, 2021, Victor Manuel DeJesus, a/k/a/ “VG Vic,” 40, of Gwinnett County, Georgia, pleaded guilty to conspiracy to commit racketeering and using a firearm during a crime of violence. The latter charge arose from a 2016 incident during which DeJesus violently carjacked a woman at gunpoint and threatened to kill her. He took the car and picked up co-defendant Christopher Marlow, a/k/a “Loco,” 43, of Marietta, Georgia. Together, they fled from a Cobb County deputy sheriff. DeJesus shot at the deputy from inside the car and discarded the gun through a window. DeJesus was sentenced to 25 years of imprisonment in connection with the shooting and his role in the RICO Conspiracy. Marlow was sentenced to 20 years of imprisonment for attempted murder and aiding and abetting DeJesus’s discharge of a firearm.
- On August 24, 2021, Richard Brian Sosebee, a/k/a “Dirty,” 47, of Hall County, Georgia, pleaded guilty to conspiracy to commit racketeering and using a firearm during a drug trafficking crime. The latter charge arose from a 2016 incident during which Sosebee shot a victim in the eye during a drug deal gone bad, causing the victim permanent injury. He was sentenced to 22 years of imprisonment on December 7, 2021.
- On July 22, 2021, Jennifer Barteski, 37, of Conyers, Georgia, a GFG associate, pleaded guilty to possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of that crime. She was sentenced on November 18, 2021, to seven years in prison.
- Between February 19, 2019 and April 26, 2021, Cody Ryan Todd, 32, of Carroll County, Georgia, Timothy Wilkins, a/k/a “Dino,” 36, of Woodstock, Georgia, Jonathan Stubbs, 33, of Hamilton County, Tennessee, William J. Goodman, 28, of Paulding County, Georgia, Brie Dewitt, 45, of Woodstock, Georgia, Toby James Ogletree, 47, of Spalding County, Georgia, and Kevin Scott Sosebee, a/k/a “Sosa,” 31, of Cobb County, Georgia, pleaded guilty to RICO conspiracy. Ogletree also pleaded guilty to conspiring to distribute and possess with intent to distribute controlled substances. Sosebee, who was sentenced to 24 years of imprisonment, also pleaded guilty to discharging a firearm in connection with a 2017 incident during which he shot four times at a Cobb County police officer. The officer was pursuing Sosebee from inside a police vehicle, swerved to avoid the bullets, and avoided injury.
- Between August 10, 2018 and March 5, 2020, GFG members Mark Avon Lefevre, a/k/a “Ghost,” 37, of Cobb County, Georgia, Christopher Lasher, a/k/a “Retta,” 39, of Marietta, Georgia, Christopher Steven Jones, a/k/a “Red,” 39, of Canton, Georgia, Samantha Miller, 31, of Cobb County, Georgia, Genevieve Waits, 40, of Cleveland, Ohio, Kayli Brewer, 31, of Cobb County, Georgia, Brittany Nicole Jones, 35, of Rockdale County, Georgia, and Hailey Sizemore, 32, of Douglas County, Georgia, pleaded guilty to conspiring to distribute and possess with intent to distribute controlled substances, including methamphetamine, cocaine, marijuana, and Xanax.
- On December 5, 2019, Christopher Jarman Davis, 32, of Walker County, Georgia pleaded guilty to maiming another GFG member. While co-defendant Jonathan Stubbs held the other gang member at gunpoint, Davis used an axe to slice a GFG tattoo off that other gang member’s chest as a punishment for violating gang rules.
- On October 4, 2018, Randall Arthur Lee Chumley, 40, of Jasper, Georgia pleaded guilty to possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime and was sentenced on December 10, 2020, to 160 months of imprisonment.
- On April 20, 2018, Kelly Ray Shiflett, 34, of Rome, Georgia pleaded guilty to possession of a firearm by a convicted felon.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cobb County Police Department, along with assistance from the Georgia Department of Corrections and the following law enforcement agencies: Marietta Cobb Smyrna (MCS) Organized Crime Task Force and Narcotics Unit, Cobb Anti-Gang Enforcement (CAGE) Unit, Cobb County Sheriff’s Office, Marietta Police Department, Cherokee County Sheriff’s Office, Ball Ground Police Department, Douglas County Sheriff’s Office, Douglasville Police Department, Federal Bureau of Investigation, Floyd County Sheriff’s Office, Floyd County Police Department, Rome/Floyd Metro Task Force, Carrollton Police Department, Gainesville Police Department, Pickens County Sheriff’s Office, Jefferson County (Alabama) Sheriff’s Office, Georgia Department of Community Supervision, Walton County Sheriff’s Office, Newton County Sheriff’s Office, Covington Police Department, Drug Enforcement Administration, Murray County Sheriff’s Office, and the Catoosa County Sheriff’s Office.
Assistant U.S. Attorneys Theodore S. Hertzberg and Erin N. Spritzer of the Northern District of Georgia and Trial Attorney Kristen S. Taylor of the Justice Department’s Organized Crime and Gang Section are prosecuting the case, which was investigated and initiated by former Assistant U.S. Attorneys Katherine M. Hoffer and Jolee Porter.
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 man sentenced for producing child pornographyRead the Press Release
ATLANTA - Derrick Hunt has been sentenced for producing child pornography. Hunt concealed a 13-year-old girl at his apartment for three weeks in the summer of 2012 and recorded his sexual encounters with her.
“Hunt assaulted a vulnerable young girl by plying her with drugs and alcohol in order to sexually abuse her,” said U.S. Attorney Ryan K. Buchanan. “Sexual predators use every opportunity, including leveraging social media platforms, to lure children into these kinds of exploitive situations. The experience of this victim and her family is the kind of nightmare scenario for unsuspecting parents that we encourage citizens to try to avoid through vigilant monitoring of their children’s social media activities.”
“Predators like Hunt have no place in civilized society. Their victims, in this case a 13-year-old girl, will likely never fully recover from the abuse they endured,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Our warning to predators is that the FBI will go to great lengths to protect our most vulnerable citizens from those who seek to manipulate and do them harm.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On June 18, 2012, Hunt saw a Facebook posting from a 13-year-old girl stating that she wanted to run away from her family’s home. Hunt knew that she was 13 years old, but he still agreed to pick her up. He took her to his apartment in Roswell and gave her alcohol, marijuana and opioids.
Over the next several weeks, Hunt engaged in numerous sex acts with the girl, many of them while she was impaired from alcohol or drugs. All of the sex acts occurred in Hunt’s living room area where he positioned a camera to record his sex acts with the child. On July 7, 2012, Hunt arranged for the girl’s father to pick her up at a restaurant. Hunt was unaware that the child’s father had arranged for the police to be present at the meeting location. Hunt was arrested when he dropped off the victim at approximately 2:30 AM.
Fulton County charged Hunt locally with child molestation offenses. But he was released on bond and fled the state. The U.S. Attorney’s Office then obtained an arrest warrant for Hunt for the federal offense of production of child pornography via a criminal complaint. He was arrested under an alias in Las Vegas, Nevada, on August 30, 2019.
Derrick Hunt, 39, of Roswell, Georgia, was sentenced to 17 years and six months in prison to be followed by supervised release for life. Hunt was convicted on these charges on May 16, 2022, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Paul R. Jones 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 postal worker sentenced to 30 years in prison for producing child pornography and possessing stolen mailRead the Press Release
ROME, Ga. - Stacy Keith Wisener, a repeat sex offender, has been sentenced to three decades in federal prison for sexually abusing an 11-year-old girl and producing child pornography depicting the abuse. Wisener also received a concurrent term of imprisonment for possessing mail he had stolen from the U.S. Postal Service processing facility where he worked.
“After his release from Georgia’s sex offender registry, Wisener resumed his predatory activities,” said U.S. Attorney Ryan K. Buchanan. “His horrific targeting of this child is unbelievable. The extraordinary courage of Wisener’s young victim, and outstanding cooperation between investigators and prosecutors on the federal, state, and local levels, brought this repeat child predator to justice.”
“Wisener’s decision to continue to exploit children, even after working to get off the sex offender registry, now puts him in prison for decades,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “It is difficult to measure the pain and suffering this victim has endured. This case serves as an example of the FBI and our partners’ commitment to bring to justice despicable predators that prey on vulnerable children for their own gratification.”
“This defendant wasted a second chance after being removed from the sex offender registry by reoffending, this time with far more egregious crimes. The GBI is committed to working with our partners to protect our young ones who are most vulnerable,” said Georgia Bureau of Investigation Assistant Director John Melvin.
“Given the horrid nature of Wisener’s conduct, we are especially grateful for the hard work and dedication of the investigative and legal teams,” said Special Agent in Charge Scott Pierce, USPS Office of Inspector General, Southern Area Field Office. “This sentence, likely leading to life behind bars, is a critical step in protecting those most vulnerable to predators like Wisener. The USPS Office of Inspector General will continue to work hand-in-hand with our local, state and federal partners to hold accountable any Postal Service employee who chooses to violate the law.”
“We are thankful for the strong relationships that we have with our state and federal partners. In complex cases like these, those partnerships help secure convictions which will ensure that no other child will ever be terrorized by this man. I would like to sincerely thank all of the individuals who played a role in securing this conviction for these appalling crimes,” said Paulding County Sheriff Gary Gulledge.
According to U.S. Attorney Buchanan, the charges and other information presented in court: for approximately four years, Wisener sexually molested a minor girl and routinely photographed and videotaped himself assaulting her. The abuse began in 2017, just a few months after a Paulding County Superior Court judge granted Wisener’s application to be removed from Georgia’s sex offender registry. Wisener had been added to the registry in 2003, when he pleaded guilty to molesting a different child under the age of 16. For that crime, Wisener was sentenced to probation in lieu of any jail time.
In October 2021, the victim, who Wisener had started molesting in 2017 when she was 11 years old, reported the abuse to her parents and local law enforcement. The Paulding County Sheriff’s Office immediately obtained a warrant to search Wisener’s home, where many of the assaults occurred. Deputies found and seized multiple data storage devices, including hard drives, flash drives, SD cards, micro-SD cards, and compact discs. A camera, a video camera, and a computer were also seized. Many of the seized devices contained child pornography, including but not limited to photographs and videos of Wisener molesting the victim.
During the search, deputies also located thousands of pieces of unopened mail, including packages, that bore the names and addresses of people other than Wisener. Wisener stole these items from the Postal Service processing and distribution facility on Crown Road in Atlanta.
Stacy Keith Wisener, 60, of Dallas, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to 30 years in prison to be followed by lifetime supervised release. Additionally, Wisener was ordered to pay restitution in the amount of $175,000, a $5,200 special assessment, and to forfeit his house as property he had used to produce child pornography. Finally, Wisener was required to re-register as a sex offender.
Wisener was convicted of the federal child exploitation and stolen mail possession charges on April 29, 2022, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, Georgia Bureau of Investigation, Paulding County Sheriff’s Office, and United States Postal Service Office of Inspector General. The Paulding County District Attorney’s Office and United States Marshals Service provided valuable assistance.
Assistant U.S. Attorneys Leanne M. Marek and Theodore S. Hertzberg prosecuted the case. Assistant U.S. Attorney Cynthia B. Smith is representing the government in the related civil forfeiture action against Wisener’s house.
This case was 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 created phony clients with non-existent disabilities to steal over $1.3 millionRead the Press Release
ATLANTA – Former Georgia Vocational Rehabilitation Agency counselor Karen C. Lyke (formerly known as Karen C. Gregory) has been charged with 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.
“By exploiting her position with the Georgia Vocational Rehabilitation Agency, Lyke allegedly orchestrated a sophisticated, long-term scheme to fleece taxpayers of more than $1.3 million through doctored records and the creation of fake students with non-existent disabilities,” said U.S. Attorney Ryan K. Buchanan. “Lyke’s alleged enterprise was uncovered through the collaborative efforts of the Georgia Office of Inspector General in partnership with the FBI.”
“Through her alleged scheme, Karen Lyke targeted money meant for those with disabilities trying to improve their lives,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “I’m proud of the work of the FBI and our law enforcement partners for their work in this case. We will continue to work together to stop those who steal taxpayer funds.”
“Not only is theft of government money a serious crime that will be vigorously investigated, but all too often it also deprives our most vulnerable citizens of vital assistance,” said Georgia 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.”
“The Georgia Vocational Rehabilitation Agency is committed to protecting the interests of Georgia’s taxpayers and our constituents. Therefore, we notified the Georgia Office of Inspector General as soon as we suspected fraud in this matter,” says GVRA Executive Director, Chris Wells.
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 a close relative (the “Family Member”) allegedly conspired to steal money from the GVRA by claiming educational expenses for approximately 13 fake students. Lyke and the Family Member used the names of actual friends and relatives as the names of the fake disabled students seeking tuition assistance from the GVRA.
Lyke and the Family Member allegedly 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. Lyke and the Family Member claimed that these fake students suffered from disabilities or illnesses like AIDS, cancer, psychosocial impairments, or muscular dystrophy.
As proof of identification, Lyke and the Family Member provided the GVRA with manufactured images of fake driver’s licenses that listed the names of their friends and relatives. In one instance, the Family Member 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 the Family Member 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 allegedly uploaded the sham driver’s licenses, transcripts, financial aid reports, and other documentation into the GVRA’s electronic database.
Based on false documentation, Lyke caused more than 230 checks to be mailed to approximately 13 friends and relatives for claimed educational expenses. In fact, none of the 13 fake students attended any colleges or universities.
The GVRA mailed the checks to post office boxes that Lyke and the Family Member opened in their own names. After receiving the GVRA checks, Lyke and the Family Member allegedly 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 the Family Member after depositing the GVRA checks.
After Lyke left the GVRA in March 2019, Lyke and the Family Member allegedly 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 the Family Member 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 the Family Member resulting in the theft of approximately $1.3 million.
From approximately August 2016 to February 2019, Lyke and the Family Member also allegedly conspired to steal several high-value computers from the GVRA. Lyke stole multiple computers in her capacity as a GVRA counselor by ordering:
- Several computers by falsely submitting paperwork to the GVRA claiming that three genuine GVRA clients needed computers to further their educational goals. In fact, the GVRA clients did not know that Lyke had ordered the computers under their names and never received the computers;
- Three computers by falsely submitting paperwork to the GVRA claiming that three fake students (that Lyke and the Family Member created) needed the computers to further their educational goals; and
- One computer by falsely submitting paperwork to the GVRA claiming that the Family Member was a GVRA client and 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 the Family Member then sold at least five of the computers on eBay using the Family Member’s account. Lyke and the Family Member kept one computer for personal use. In total, Lyke and the Family Member allegedly stole at least seven computers with various accessories worth approximately $32,000.
Based on the conduct alleged above, the U.S. Attorney charged Karen C. Lyke, 37, of Toledo, Ohio, in a criminal information with one count of conspiring to commit federal program theft. Lyke has stated her intent to plead guilty to the charge.
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.
Members of the public are reminded that the information only contains a charge. The defendant is presumed innocent of the charge and it will be the government’s burden to prove her guilt beyond a reasonable doubt at trial if the defendant foregoes entry of a guilty plea and the matter is indicted.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta based rapper Paper Lovee sentenced to federal prison for firearm possessionRead the Press Release
ATLANTA – Ibnisa Durr has been sentenced to federal prison for possessing a firearm after a felony sentence. Durr fled from officers in a highspeed chase on Georgia 400 before ultimately crashing his vehicle and attempting to throw a bag containing a loaded firearm over an interstate guardrail.
“Durr has a serious criminal history, which includes robbery and aggravated assault convictions,” said U.S. Attorney Ryan K. Buchanan. “His reckless conduct seriously endangered the lives of innocent motorists and officers. However, the coordinated efforts of multiple law enforcement agencies led to Durr’s capture, and subsequent sentence.”
“The message from this sentencing is clear. Anyone who thinks about possessing an illegal firearm and compounding that crime by fleeing from police and putting innocent civilians in danger, will get caught, and when they do, they will serve significant time in prison,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Thanks to the assistance from our local law enforcement partners, the threat from this criminal is eliminated from our streets.”
“Anytime we take a career criminal off the streets of our great city, it’s a win-win situation for the city and the citizens of Atlanta,” said Interim Chief Darin Schierbaum. “The collaborative efforts of the Atlanta Police Department and the Sandy Springs Police Department is another example of two law enforcement agencies working together to bring a criminal to justice.”
“Lawlessness and criminal behavior should not be tolerated in a civilized society. This sentence imposed will serve as a reminder to all who would commit violent crimes, that you will pay a high personal price for your misdeeds. Metro Atlanta law enforcement will always work together to make our cities, roads, and neighborhoods a safe place for all,” said Sandy Springs Police Chief Kenneth DeSimone.
According to U.S. Attorney Buchanan, the charges and other information presented in court: On May 30, 2021, officers with the Atlanta Police Department (APD) responded to a residence in Atlanta, after receiving reports that a person had been shot. When they arrived, APD discovered the victim had been shot multiple times with non-life-threatening injuries. Through a subsequent investigation, APD identified Durr as the shooter and obtained a warrant for his arrest.
Approximately three months after the shooting, APD’s Fugitive Unit located Durr and observed him enter a vehicle. When APD attempted to take Durr into custody, he sped away, and a highspeed chase ensued on Georgia 400. During the chase, Durr attempted to elude police by rapidly changing lanes, which led him to crash into two police vehicles, as well as an uninvolved motorist’s vehicle. Durr tried to flee on foot, and in doing so, he attempted to throw a bag containing a loaded firearm over a nearby guardrail. The firearm was recovered by the arresting officers.
Ibnisa Durr (“Paper Lovee”), 26, of Atlanta, Georgia, was sentenced by U.S. District Judge J.P. Boulee to seven years and four months in prison to be followed by three years of supervised release. On May 25, 2022, he pleaded guilty to the offense of felon-in-possession of a firearm.
This case was investigated by the Federal Bureau of Investigations, the Atlanta Police Department and the Sandy Springs Police Department.
Assistant U.S. Attorney Dash A. Cooper prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] 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.
Lithonia man operating federal student loan discharge scam sentenced to federal prisonRead the Press Release
ATLANTA – De’reek Banks has been sentenced for operating a scheme that caused approximately $48,000,000 in outstanding federal student loans to be fraudulently discharged by exploiting a program intended for disabled military veterans. Banks illegally pocketed about $891,000 in payments from more than 500 student loan borrowers. Many of these borrowers mistakenly believed that they had paid Banks for legitimate student debt relief services.
“This defendant brazenly stole funds from innocent student loan borrowers by exploiting a financial aid program intended to assist military vets who sacrificed their health for the security of our country,” said U.S. Attorney Ryan K. Buchanan. “He tricked borrowers into believing that he could legitimately obtain federal student loan discharges for them while attempting to defraud the U.S. government of almost 50 million dollars.”
“The sentencing demonstrates the commitment of the US Postal Inspection Service to bring to justice fraudsters who seek to exploit victims and federal programs for their own personal gain,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “We are proud to work with our law enforcement partners to unravel and stop this type of fraudulent scheme.”
“I’m proud of the OIG Special Agents and our law enforcement colleagues whose efforts brought about this action,” said Reginald J. France, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southeastern Regional Office. “The OIG is committed to fighting student aid fraud in all its forms and we will continue to work with our partners to pursue anyone who participants in these types of crimes.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: De’reek Banks offered to help student loan borrowers obtain discharges for federal student loans in exchange for a fee. Banks claimed that special government programs existed for authorizing the discharge of the borrowers’ loans. But Banks’s business relied on false statements he made to Federal Student Aid, an office of the U.S. Department of Education responsible for providing billions in financial aid to students.
Banks made false representations to the agency, and fabricated hundreds of Department of Veterans Affairs letters using a fake letterhead, claiming that the borrowers were military veterans who were eligible for student loan discharges due to a total or permanent disability (“TPD”). Banks then used these letters to apply for special TPD discharges with Federal Student Aid that caused the student loan borrowers’ debts to be erased even though the borrowers did not lawfully qualify for the discharge. Banks caused approximately $48,000,000 in student loans to be fraudulently discharged through his scheme.
On August 22, 2022, De’reek Banks, 41, of Lithonia, Georgia, was sentenced to six years in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $910,416.69. He pleaded guilty to theft of government property.
This case was investigated by the U.S. Department of Education, Office of Inspector General and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Samir Kaushal, Deputy Chief of the Cyber and Intellectual Property Crime 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.
Smyrna doctor surrenders DEA registration and pays $100,000 to resolve Controlled Substances Act violationsRead the Press Release
ATLANTA – Keith Jeffords, M.D., has agreed to pay $100,000 in penalties and refrain from applying for a DEA registration for a period of five years to resolve allegations that he issued prescriptions for controlled substances while his medical license was suspended by the Georgia Composite Medical Board, in violation of the Controlled Substances Act (CSA). The CSA requirements are designed to prevent the diversion of controlled substances and ensure that controlled substances are dispensed and prescribed by authorized individuals. Prior to agreeing that he would not hold a registration for a period of five years, Dr. Jeffords voluntarily surrendered his registration to the DEA.
“A suspended medical license means that a doctor cannot write prescriptions for controlled substances, period,” said U.S. Attorney Ryan K. Buchanan “When physicians ignore this basic requirement of the Controlled Substances Act, our office will vigorously pursue the violations.”
“While in the midst of this country’s prescription opioid epidemic, eliminating physicians who disregard both state and federal licensing requirements and who continue to prescribe opioids is an important part of DEA’s mission,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This medical doctor surrendered his DEA registration and will refrain from applying for a registration for a period of time and will pay a fine. This case was a success because of the hard work and dedication put forth by DEA and its law enforcement partners.”
Keith Jeffords operates a plastic surgery practice in Smyrna, Georgia. Jeffords wrote prescriptions for powerful opioids after the Medical Board summarily suspended his license on November 22, 2021. As part of the settlement, Jeffords acknowledged that he distributed controlled substances in violation of the CSA and its implementing regulations.
The CSA was enacted by Congress to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications. The CSA prohibits DEA registrants without a valid state medical license from issuing prescriptions for controlled substances. DEA registrants who issue prescriptions without a valid medical license are subject to civil monetary penalties for each violation.This case was investigated by the Drug Enforcement Administration.
The civil settlement was reached by Assistant U.S. Attorneys Austin Hall and Adam Nugent.
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.
Network of Atlanta-based cocaine traffickers, money launderers, and fraudsters sentenced to years in prison and forfeiture of over $3.9 millionRead the Press Release
ATLANTA – Tory Lenard Troup has been sentenced as the Atlanta-based leader of a ring of repeat offenders who moved large quantities of cocaine through Atlanta and laundered criminal proceeds using a network of bank accounts, business entities, and purchases of luxury and high-performance cars, homes, jewelry, and cosmetic surgery. Members of the group also obtained fraudulent loans from the Paycheck Protection Program and the COVID-19 Economic Injury Disaster Loan Program.
“This network of drug traffickers victimized our community in many ways, including by distributing dangerous drugs and exploiting the banking system and pandemic disaster funds while buying homes in our neighborhoods as a way to conceal their illegal profits,” said U.S. Attorney Ryan K. Buchanan. “Through a successful multi-year, cross-agency investigation and resulting seizure of assets, the main culprits will serve prison sentences and lose the spoils of their crimes.”
“This sentencing deals a major blow to Troup’s drug trafficking organization, and is a major step in keeping drugs off the streets of metro Atlanta and elsewhere,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This criminal organization has reached its final chapter, as these defendants will now spend well-deserved time in prison.”
“Homeland Security Investigations will continue to utilize our expertise to combat the movement of illicit narcotics and proceeds in an effort to stop our communities from being poisoned by greedy criminals,” said HSI Miami Special Agent in Charge Anthony Salisbury. “Through the collaborative efforts with our partners, this narcotics trafficking network has been dismantled and their flow of dangerous narcotics into the United States has been stopped.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: in 2008, Tory Troup, shortly after his release from prison in 2007 for his second federal drug trafficking conviction, organized other convicted drug traffickers, including Franklin Troup, Joseph Alexander, and Rodriquez Redding, to form a new criminal operation. They worked together to source cocaine from Colombia, the Bahamas, and Texas; transported the drugs by private plane, car, and UPS shipments to the Atlanta area; and distributed the drugs to customers in Atlanta and South Carolina. One customer, Lidurrius Bailey, converted the cocaine into large batches of crack (nearly 400 grams at a time) for further distribution. They also smuggled bulk quantities of marijuana, up to nine bales at a time, into the Miami area by boat.
The group transported some of its drug proceeds by having people drive the cash in cars or shipping bundles of cash through the mail, FedEx, or UPS. And to minimize the risk of detection by law enforcement they used a multi-faceted money laundering operation to covertly gather payments, and move those proceeds from customers in Atlanta and South Carolina to Texas, using a network of bank accounts held by multiple individuals, including Troup’s wife, LaShana Johnson, as well as a girlfriend in Houston. Troup also enlisted a business entity and its bank accounts to collect and launder illegal profits disguised as revenue from legitimate business operations. The conspirators then used their illegal profits to buy luxury cars, often in other people’s names, all in an effort to avoid drawing law enforcement attention.
For example, Redding convinced two of his relatives to purchase and register a $92,000 Mercedes CL 63 AMG and a $65,000 Mercedes CLS 550 in their names with his drug money, drawing them into his web of crimes and ultimately subjecting them to the arrival of federal agents at their door. The group also concealed drug profits by buying properties, many of them homes in residential neighborhoods. Elgin Jordan, who sourced some of the drugs for members of the operation, accumulated 14 properties. Many of the homes sat vacant or were rented, preventing lawful citizens from purchasing the properties and peacefully residing in those neighborhoods. Members of the group also used their profits to buy expensive jewelry and even cosmetic surgery, most often paying cash in the mistaken belief that they could avoid law enforcement detection by doing so.
For many years the group managed to operate their scheme without law enforcement intervention due to their extensive concealment efforts, tight code of loyalty, and threats to others. But ultimately a collaboration of multiple federal agencies conducting a comprehensive financial investigation, in combination with evidence from local agencies, a wiretap, drug and money seizures, information from cooperating sources who feared violent retribution, and undercover recordings, produced a series of federal charges that dismantled the organization.
Redding and Johnson, two of the conspirators granted bond while their charges were pending, continued their criminal efforts and fraudulently obtained Paycheck Protection Program loans and an Economic Injury Disaster Loan Program advance for businesses that did not exist. As a result, the court imposed additional sentences and/or restitution obligations.
Tory Lenard Troup, 52, of Atlanta, Georgia, was sentenced to eight years in prison followed by 15 years of supervised release and ordered to forfeit two residential properties and $840,124. He pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and conspiracy to commit money laundering on June 2, 2021.
The following individuals were previously sentenced:
- Franklin Benson Troup, 51, of Austell, Georgia, was sentenced to eight years in prison followed by 15 years of supervised release and ordered to forfeit $690,000. He pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and conspiracy to commit money laundering on June 2, 2021.
- Joseph Anthony Alexander, 52, of Coral Springs, Florida, was sentenced to 11 years and three months in prison followed by five years of supervised release and ordered to forfeit $111,860. He pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and conspiracy to commit money laundering on March 11, 2019.
- Rodriquez Deonte Redding, a/k/a “Rodriguez Redding,” a/k/a “Dreek,” 38, of Atlanta, Georgia, was sentenced to seven years in prison followed by five years of supervised release and ordered to pay $46,666 in restitution to the U.S. Small Business Administration and PPP lenders. He pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and conspiracy to commit money laundering on June 2, 2021, and pleaded guilty to a charge of committing wire fraud while on pretrial release on January 21, 2022.
- LaShana Michele Johnson, a/k/a “LaShana Troup,” 50, of Atlanta, Georgia, was sentenced to four years of probation and ordered to pay $10,000 in restitution to the U.S. Small Business Administration. She pleaded guilty to a charge of conspiracy to commit money laundering on June 7, 2021.
- Lidurrius Bailey, 49, of Fayetteville, Georgia, was sentenced to 10 years in prison followed by five years of supervised release and forfeited $709,985 and jewelry valued at $31,750. He pleaded guilty to a charge of possession with intent to distribute cocaine and cocaine base on October 23, 2015.
- Elgin Demarco Jordan, 48, of Atlanta, Georgia, was sentenced to eight years in prison followed by four years of supervised release and ordered to forfeit 14 properties with a total tax assessed value of over $1.5 million. He pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and heroin and conspiracy to commit money laundering on June 2, 2016.
This case was investigated by the Drug Enforcement Administration, Department of Homeland Security – Homeland Security Investigations, and Internal Revenue Service – Criminal Investigation, with valuable assistance provided by the Fulton County Sheriff’s Office and Atlanta Police Department.
Assistant U.S. Attorney Garrett L. Bradford, Deputy Chief of the Public Integrity and Special Matters section, 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.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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.
Convicted Iraqi gun smuggler sentenced to nearly eight years in prisonRead the Press Release
SAVANNAH, GA: An Iraqi national has been sentenced to federal prison after being convicted of attempting to smuggle guns through the Port of Savannah.
Nihad Al Jaberi, 43, of Clarkston, Ga., was sentenced to 94 months in prison after a U.S. District Court jury in February convicted him on charges of Smuggling, Failure to Notify a Common Carrier, and Submitting False or Misleading Export Information, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered that Al Jaberi be referred to U.S. Immigration and Customs Enforcement for deportation after completion of his prison term, and if not deported, Al Jaberi must serve three years of supervised release.
There is no parole in the federal system.
“Our law enforcement partners performed outstanding work in detecting and stopping this shipment hidden guns,” said U.S. Attorney Estes. “This interception will hold Al Jaberi accountable while preventing deadly weapons from heading to a dangerous and unstable country.”
As proven at trial, Al Jaberi is an Iraqi citizen and legal permanent resident of the United States who attempted in August 2020 to hide six .308-caliber long-range rifles and three handguns in a shipment labeled as “71 Pieces of Spare Auto Parts with No License Required.” Al Jaberi obtained the firearms through straw purchases at various Atlanta-area sporting goods stores before disassembling the guns and hiding them among used automotive parts in a container that authorities intercepted at the Port of Savannah.
“Illegally exporting firearms is a violation of our nation’s export control laws and often has serious consequences in the United States and abroad,” said Acting Special Agent in Charge Jonathan Carson, U.S. Department of Commerce, Office of Export Enforcement (OEE), Miami Field Office. “This outcome demonstrates the effectiveness of OEE, working with our law enforcement partners, to disrupt the illegal export of sensitive, controlled items.”
“ATF’s central objective is ensuring the safety of local residents,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “In order to accomplish this mission, ATF will aggressively and acutely target individuals who seek to diminish the general welfare through illegal firearms trafficking.”
“HSI’s work to prevent the smuggling of illegal weapons protects communities around the globe,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners are committed to catching and prosecuting those involved in this illegal trade.”
“Customs and Border Protection officers at Savannah seaport work tirelessly alongside partnering agencies to stop illicit shipments into and out of the country,” said, David Santos, Acting Area Port Director CBP Savannah. “We can only imagine where these guns could have ended up.”
The case was investigated by U.S. Department of Commerce Office of Export Enforcement; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; and U.S. Customs and Border Protection, and prosecuted for the United States by Southern District of Georgia Special Assistant U.S. Attorney Darron J. Hubbard and Assistant U.S. Attorney Jennifer G. Solari, and by Northern District of Georgia Assistant U.S. Attorney Theodore S. Hertzberg.
Correctional officer indicted for Paycheck Protection Program fraudRead the Press Release
ATLANTA - Harrescia Hopkins, a correctional officer employed at the U.S. Penitentiary in Atlanta, Georgia, has been arraigned on federal charges of wire fraud for fraudulently obtaining two Paycheck Protection Program ("PPP") loans. Hopkins was indicted by a federal grand jury on August 9, 2022.
“Hopkins was employed in a position of trust to help safeguard our community,” said U.S. Attorney Ryan K. Buchanan. “But during a time of extreme economic need in our nation due to the COVID-19 pandemic she chose to defraud taxpayers and improperly take funds intended to help struggling businesses survive.”
“Hopkins allegedly tried to take advantage of the system by fraudulently obtaining PPP funds earmarked for those who were legitimately struggling to make ends meet during the height of the COVID-19 pandemic,” said James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in or about March 2020 that was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief that the CARES Act provided was the authorization of up to $349 billion in forgivable loans to small businesses for payroll, mortgage interest, rent/lease, and utilities through a program referred to as the Paycheck Protection Program (“PPP”). Congress has since authorized additional PPP funding.
The PPP allowed qualifying small businesses and other organizations to receive PPP loans. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and principal on a PPP loan to be entirely forgiven if the business spent the loan proceeds on these expense items within a designated period of time and used a certain percentage of the PPP loan proceeds for payroll expenses.
Hopkins, while a Federal Bureau of Prisons correctional officer, allegedly applied for two PPP loans for $19,100 each in August 2020 and January 2021. The PPP loan applications were purportedly to help a business named Hopkins Towing and Storage, which she claimed had a gross income of $100,525 in 2019. In reality, Hopkins Towing and Storage was not a real and functioning business, and Hopkins caused the loan proceeds to be deposited into her personal checking account.
Harrescia Hopkins, 33, of Stone Mountain, Georgia, was arraigned before U.S. Magistrate Judge Christopher C. Bly. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Department of Justice, Office of Inspector General.
Assistant U.S. Attorney Garrett L. Bradford, Deputy Chief of the Public Integrity and Special Matters Section, is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Rome-area methamphetamine distributor and money launderer sentenced after trialRead the Press Release
ROME, Ga. - Juan Cain Valencia-Ramirez has been sentenced for conspiring to distribute large quantities of methamphetamine and to launder drug money.
“This defendant was responsible for importing, processing and distributing hundreds of kilograms of methamphetamine in the metro-Atlanta and Northwest Georgia areas,” said U.S. Attorney Ryan K. Buchanan. “His long history of methamphetamine dealing and eluding arrest has ended thanks to the coordinated efforts of DEA and other federal and local law enforcement partners.”
“No matter how sophisticated the techniques get for smuggling drugs, the DEA and its law enforcement partners remain a step ahead of criminals and will deny them the opportunity to destroy communities with their insidious drugs,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This investigation was a success as it dismantled a once-thriving meth ring in North Georgia.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In April 2018, Juan Cain Valencia-Ramirez operated a methamphetamine processing and distribution cell in Rome, Georgia. Valencia-Ramirez processed liquid methamphetamine imported in vehicle gas tanks from Mexico and coordinated the distribution of the drugs in metro-Atlanta and Northwest Georgia. He also directed associates to deposit thousands of dollars in drug money that he funneled through bank accounts.
Valencia-Ramirez had remained an elusive law enforcement target because he frequently changed phones and relied on associates to complete drug deals. But federal investigators successfully tracked Valencia-Ramirez’s phone to his residence in Rome following an undercover methamphetamine purchase during which DEA agents recorded a phone call with him.
Undercover agents again recorded a phone call with Valencia-Ramirez during an attempted methamphetamine purchase in September 2018. In October 2018, DEA agents, the Dalton Police Department, and the Rome/Floyd Metro Task Force searched Valencia-Ramirez’s stash house located in a wooded area outside Rome. During the search, investigators recovered approximately 176 kilograms of crystal methamphetamine (worth more than $1.1 million at 2018 prices), evidence of a methamphetamine processing lab, and several firearms. The drugs were buried in caches of camouflaged ice chests and plastic bins concealed in the woods around the property.
Valencia-Ramirez fled to Houston, Texas, following the search, where he continued managing his methamphetamine and money laundering operation. In November 2018, DEA agents searched a stash house belonging to Valencia-Ramirez in Houston where they seized approximately 17 kilograms of methamphetamine. DEA agents eventually located him in June 2019 in Smyrna, Georgia, and arrested him. That same day, agents searched the residence of two of Valencia-Ramirez’s co-defendants, Javier Rivera and Jasmine Garcia, and found more methamphetamine and firearms.
Juan Cain Valencia-Ramirez, a/k/a “Chapa,” 39, of Rome, Georgia, was sentenced to 22 years, one month in prison to be followed by five years of supervised release. On November 1, 2021, a jury convicted Valencia-Ramirez of the offenses of conspiracy to distribute methamphetamine, distribution of methamphetamine, attempted distribution of methamphetamine, and conspiracy to launder money.
The following co-defendants pleaded guilty, including several who have been sentenced:
- Javier Rivera, 26, of Lawrenceville, Georgia, was sentenced to 17 years and one month of imprisonment, followed by five years of supervised release. He pleaded guilty to the offenses of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking offense, and conspiracy to launder money on December 11, 2020.
- Luis Perez, 28, of Norcross, Georgia, was sentenced to 11 years and 10 months of imprisonment, followed by five years of supervised release. He pleaded guilty to the offense of conspiracy to distribute methamphetamine on March 12, 2020.
- Ricky McPherson, 26, of Rome, Georgia, was sentenced to five years and five months of imprisonment, followed by five years of supervised release. He pleaded guilty to the offense of conspiracy to distribute methamphetamine on October 16, 2019.
- Jasmine Garcia, 24, of Lawrenceville, Georgia, pleaded guilty to the offenses of conspiracy to distribute methamphetamine, conspiracy to launder money, and possession of a firearm in furtherance of a drug trafficking offense on December 1, 2020, and is awaiting sentencing.
This case was investigated by the Drug Enforcement Administration, with assistance provided by IRS Criminal Investigations, the Dalton Police Department, and the Rome/Floyd Metro Task Force.
Assistant U.S. Attorneys John DeGenova and Nicholas 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.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former U.S. Postal Service worker pleads guilty to scheme to deliver drugs through the mailRead the Press Release
ATLANTA – Former mail carrier Robert Elliott Sheppard has pleaded guilty to drug trafficking charges for recruiting fellow mail carriers to deliver packages of controlled substances while he was on disability leave.
“Postal carriers occupy a position of trust in our communities and Sheppard violated that trust by exploiting his role as a mail carrier to traffic kilogram amounts of cocaine as well as marijuana,” said U.S. Attorney Ryan K. Buchanan. “Sheppard’s conduct is especially egregious because he recruited other postal carriers to participate in his criminal scheme once he was on disability leave. His conduct and greed potentially exposed countless innocent postal workers and the public to dangerous drugs and to the violence that these crimes frequently cause.”
“Sheppard’s greed taints the public’s trust in U.S. Postal Service employees, the majority of whom are hard-working and trustworthy individuals dedicated to delivering mail safely throughout our communities,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI wants it to be clear that public corruption remains our number one criminal program priority and, as such, we have dedicated significant resources toward the identification, investigation, and prosecution of any individuals involved in similar such conduct.”
“We appreciate the outstanding effort by both the investigative and legal teams,” said Special Agent in Charge Scott Pierce, USPS Office of Inspector General, Southern Area Field Office. “The vast majority of Postal Service employees are honest, hardworking individuals who would never dream of violating the public trust in this manner. An employee who decides otherwise, however, will be aggressively investigated by OIG special agents. This case serves as an excellent example of the successful collaboration between the USPS OIG, our federal and state law enforcement partners, and the U.S. Attorney’s Office to pursue and prosecute Postal Service employees involved in criminal activity.”
“Sheppard enlisted the help of two co-workers to smuggle drugs through the United States Postal system, entangling them in a drug conspiracy and furthering dangerous criminal activity. They have been brought to justice. It is now Sheppard’s time to be held accountable for his selfish actions. The DeKalb County District Attorney’s Office will continue to work with its law enforcement partners to ensure public officials like Sheppard will be brought to justice,” said DeKalb County District Attorney Sherry Boston.
According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2014, Sheppard worked as a U.S Postal Service (USPS) mail carrier. In exchange for bribes, he used his position to deliver five-pound packages of drugs through the U.S. mails to Dexter Frazier, a local drug trafficker who sold cocaine and marijuana.
In 2016, Frazier approached Sheppard about delivering additional drug packages. Sheppard was on disability leave from the USPS at that time and unable to intercept and deliver packages. So Sheppard offered to recruit other mail carriers to deliver drugs for Frazier if Frazier paid Sheppard referral fees consisting of a mix of cash and marijuana. Frazier agreed.
Sheppard then contacted two coworkers, Tonie Harris and Clifton Lee. Sheppard explained to Harris and Lee that in exchange for payment, Frazier needed them to deliver packages of drugs. Sheppard instructed Harris and Lee how to arrange the deliveries to avoid detection. Harris and Lee agreed to participate in the scheme after which Sheppard gave their phone numbers to Frazier. Frazier then coordinated the illegal deliveries with Harris and Lee. Harris and Lee each delivered three packages for Frazier believing they contained two kilograms of cocaine or 10 pounds of marijuana.
Robert Elliott Sheppard, 60, of East Point, Ga., has pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and marijuana and unlawfully using the mail to commit that crime. Sentencing for Sheppard is scheduled for November 3, 2022.
Other participants in the scheme previously pleaded guilty and received the following sentences imposed by U.S. District Judge Steve C. Jones:
- Dexter Bernard Frazier, a/k/a “Dec,” 60, of Fairburn, Georgia, was sentenced on June 13, 2018, to nine years in prison to be followed by 10 years of supervised release. He was also ordered to pay restitution in the amount of $10,700. Frazier pleaded guilty to the offense of attempt to distribute cocaine and marijuana on March 6, 2018.
- Clifton Curtis Lee, a/k/a “Cliff,” 46, of Lithonia, Georgia, a letter carrier assigned to the Sandy Springs Post Office, was sentenced on June 18, 2018, to three years, 10 months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,800. Lee pleaded guilty to the offenses of attempt to distribute cocaine and bribery of public officials on February 28, 2018.
- Tonie Harris, 59, of Decatur, Georgia, a letter carrier assigned to the Sandy Springs Post Office, was sentenced on August 14, 2018, to three years, one month in prison to be followed by four years of supervised release. He was also ordered to pay restitution in the amount of $1,450. Harris pleaded guilty to the offenses of attempt to distribute cocaine and marijuana and bribery of public officials on March 20, 2018.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General, and the DeKalb County District Attorney’s Office.
Assistant U.S. Attorney Garrett L. Bradford, Deputy Chief of the Public Integrity and Special Matters Section, is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
or 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 men charged with aiming laser pointers at police helicoptersRead the Press Release
ATLANTA - Daniel Maloney, Fredy Contreras, Timothy Wilson, and Theodore Rowe have been arraigned on federal charges of aiming laser pointers at police helicopters. All four were indicted by a federal grand jury on July 13, 2022.
“Pointing lasers at an aircraft is extremely dangerous,” said U.S. Attorney Ryan K. Buchanan. “A laser aimed at an aircraft blinds the pilot and makes it difficult if not impossible for the persons in the cockpit to read their instruments. Persons who are found pointing lasers at aircraft will be prosecuted.”
“When aimed at an aircraft, a beam of light from a handheld laser can illuminate a cockpit, disorienting and temporarily blinding the pilot or pilots of the craft, and in this case, preventing police from completing important public safety work,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “It's not a game. It's a federal felony that the FBI and our law enforcement partners take very seriously.”
“Irresponsibly using and aiming a laser device at any civil, commercial, military, or law enforcement aircraft seriously compromises safe aviation operations,” said Todd Damiani, Special Agent in Charge, Department of Transportation Office of Inspector General, Southeastern Region. “These arrests on federal charges should serve as a warning that engaging in this dangerous and criminal activity is unacceptable.”
“The Atlanta Police Department takes the safety of our officers seriously, whether on the ground or in the air,” said Interim Atlanta Police Chief Darin Schierbaum. “The fact that these defendants used laser pointers to endanger the lives of members of our Phoenix Air Unit and the safety of people on the ground, is very disturbing. The federal charges brought forth against these men sends a message that irresponsible actions and criminal activity will not be tolerated.”
“The Gwinnett Police Department is thankful for the diligence the FAA and FBI both have for continuing the mission of educating the public on how dangerous it is to point a laser at any aircraft. Our department will not allow these offences interfere with the Aviation Unit’s operations and the department’s mission of serving and protecting the residents of Gwinnett with first class law enforcement service, including airborne response,” said Chief James D. McClure, Gwinnett County Police Department.
According to U.S. Attorney Buchanan, the charges, and other information presented in court, each defendant aimed a laser pointer at a police helicopter as the helicopter was assisting officers on the ground: Around 9:50 p.m. on February 13, 2020, a Gwinnett County Police Department helicopter was assisting officers in looking for a robbery suspect who had fled into a wooded area. Daniel Maloney saw the helicopter in the air and pointed a red laser at it, temporarily blinding the pilot and the tactical flight officer. They had to stop looking for the robbery suspect, switch to infrared vision, and look for the source of the red laser. Ground units went to Maloney’s home, where an officer found Maloney still pointing his laser at the helicopter.
Around 9:00 p.m. on November 9, 2020, as a Gwinnett County Police Department helicopter was assisting officers on the ground looking for a stolen vehicle, it was hit at least twice with a green laser. Using the infrared camera, the tactical officer was able to identify the home that the laser was aimed from. Officers on the ground went to the home, where Fredy Contreras admitted that he had been shining the laser at the helicopter.
In the early evening hours of May 26, 2021, an Atlanta Police Department helicopter was assisting grounds units with looking for a missing 6-year-old boy. The helicopter was struck several times by a green laser. After switching over to protective eye gear that minimized the light from the laser, the pilot was able to identify the home where the laser strikes were coming from. Officers on the ground went to the home, where Timothy Wilson admitted that he had been shining the laser at the helicopter.
Around 10:30 p.m. on July 1, 2021, Gwinnett County Police Department received a call about a suspicious person wandering in the middle of a busy road. A Gwinnett County Police Department helicopter was sent to help locate this person. While searching for the person, the helicopter was struck multiple times by a green laser. The tactical flight officer switched to the infrared camera to identify the source. Officers on the ground went to a home in Lawrenceville, where Theodore Rowe admitted that he pointed the laser at the helicopter.
Daniel Maloney, 55, of Snellville, Georgia, Fredy Contreras, 48, of Lilburn, Georgia, Timothy Wilson, 61, of Atlanta, Georgia, and Theodore Rowe, 51, of Lawrenceville, Georgia, were arraigned before U.S. Magistrate Judge Justin S. Anand. 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 each defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, the Department of Transportation Office of the Inspector General, the Atlanta Police Department, and the Gwinnett County Police Department.
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.
Felon sentenced for illegally possessing firearms following roadway shootingRead the Press Release
ATLANTA – Rico Laprince Southall has been sentenced for possession of a firearm by a convicted felon following an incident where he was arrested after firing multiple gunshots at a family member on a public road in Cobb County, Georgia. Southall’s gunfire also struck another motorist’s vehicle.
“Southall’s illegal possession and dangerous use of these weapons are serious crimes that show how gun violence is a risk to all of us,” said U.S. Attorney Ryan K. Buchanan. “Keeping firearms out of the hands of convicted felons and individuals with violent criminal histories is essential to protecting the citizens of the district and reducing gun violence. Fortunately, no one was injured or killed because of this defendant’s egregious disregard for the safety of our community.”
“ATF will continue to work alongside our Federal, State and local partners in furtherance of reducing violent crime ,” said ATF Atlanta Field Division Special Agent in Charge Ben Gibbons.
"The Cobb County Police Department is exceptionally proud of the actions of the officers, detectives, and civilian staff who were involved in this case and countless other cases like this. The sacrifice these men and women make each time they place the badge and vest on to protect the people of Cobb County is a testament to their character, selflessness, and bravery. The impact of their actions is simply impossible to measure. Through the continued work of seizing illegal guns and removing very violent offenders from our streets, far fewer of our Cobb County community members are shot, killed, and maimed. We are thankful for the continued strong support from Project Safe Neighborhoods, the ATF, and our other federal partners, and we're equally grateful for the dedication of our local officers, detectives, and civilians here in Cobb County,” said Cobb County Police Chief Stuart VanHoozer.
According to the charges, and other information presented in court: On April 1, 2021, Southall targeted the victim, a member of his family, as she drove in Powder Springs, Georgia. Southall pursued the victim’s vehicle through the residential area and fired multiple rounds at her vehicle, all while he and the victim were travelling on a public road. Several rounds struck the victim’s vehicle and entered the passenger compartment of the vehicle, with at least one round striking an unoccupied infant safety seat. Southall also struck another motorist’s vehicle.
When Cobb County Police Department officers arrested Southall, he possessed a weapon equipped with an extended magazine and a revolver that was reported stolen out of Pennsylvania. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) adopted the case and presented it to the U.S. Attorney’s Office for federal prosecution. Southall’s Cobb County charges are pending.
On July 13, 2022, Judge Eleanor L. Ross sentenced Southall to seven years in prison, to be followed by three years of supervised release. Southall pleaded guilty on April 13, 2022.
Assistant U.S Attorney Norman L. Barnett prosecuted the case. Former Assistant U.S. Attorney D’Juan Jones was the initial prosecutor for this case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Cobb County Police Department investigated the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] 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.
Convicted felon and two others charged with trafficking fully automatic, privately manufactured ghost gunsRead the Press Release
Jelani Kazmende, Wiley Martin, and Robert Louis Jeffords, Jr., have been arraigned on federal charges of dealing firearms without a license, possession of machineguns, possession of unregistered firearms, and conspiracy. Kazmende, Martin, and Jeffords were indicted by a federal grand jury on July 12, 2022.
“Equipped with large capacity magazines, illegal machineguns like those allegedly transported, possessed, and sold by these defendants present immediate danger to our community,” said U.S. Attorney Ryan K. Buchanan. “To protect the community, this office and its partners will identify, target, and prosecute to the fullest extent those who peddle these weapons unlawfully.”
“With distressing regularity, we see the damage that criminals can inflict on our communities with weapons of war," said Keri Farley, Special Agent in Charge of FBI Atlanta. “Illegal guns have no place in Georgia and the FBI will continue to work diligently with our partners to remove these dangerous criminals and weapons from our streets.”
“Because of the combined efforts of ATF and its law enforcement partners, criminal elements have been surgically removed from the community of Marietta and placed where they belong: into the criminal justice system to be processed and prosecuted for illegal activity,” said Alisha Jones, Assistant Special Agent in Charge of ATF’s Atlanta Field Division.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On June 2, 2022, outside of a restaurant in Marietta, Georgia, Jelani Kazmende allegedly provided five privately manufactured “ghost guns” to Wiley Martin, a multi-convicted felon who was then serving a term of state probation. “Ghost guns” refers to firearms, including a frame or receiver, completed, assembled, or otherwise produced by a person other than a licensed manufacturer, and without a serial number placed by a licensed manufacturer at the time the firearm was produced.
The firearms that Kazmende allegedly gave to Martin lacked any genuine manufacturer’s makings or legitimate serial numbers. Inside of each firearm was a drop-in “auto sear device” designed to allow the firearms to fire multiple rounds with a single pull of the trigger. Following his receipt of the firearms, Martin sold all five weapons—and a sixth full-auto pistol—to undercover FBI agents.
On June 16, 2022, Kazmende and Martin met Robert Louis Jeffords, Jr., outside of the same turkey leg restaurant where Kazmende and Martin had met two weeks prior. Kazmende, Martin, and Jeffords removed from Jeffords’s truck 16 privately manufactured firearms chambered in various calibers. Separately, Jeffords carried 17 drop-in auto sear devices into the restaurant. Once the firearms had been converted to fire automatically, Martin intended to sell the guns to the undercover FBI agents again. However, before the transaction could be attempted, law enforcement officers surrounded the restaurant and arrested all three defendants. They also recovered each of the guns and auto sear devices.
Jelani Kazmende, 38, of Marietta, Georgia, Wiley Martin, 42, of Acworth, Georgia, and Robert Louis Jeffords, Jr., 62, of Forest City, North Carolina, were arraigned before Chief U.S. Magistrate Judge Russell G. Vineyard on federal charges of dealing firearms without a license, possession of machineguns, possession of unregistered firearms, and conspiracy. 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 and Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Cobb County Police Department, Marietta Police Department, Sandy Springs Police Department, Douglasville Police Department, Georgia State Patrol, and Fulton County Sheriff’s Office.
Assistant U.S. Attorney Theodore S. Hertzberg 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 mayoral candidate sentenced for stealing from the Paycheck Protection ProgramRead the Press Release
ATLANTA - Olivia Ware, a former mayoral candidate for the City of Conyers, has been sentenced to prison for using a company she started to steal over $323,000 from the Paycheck Protection Program (PPP).
“Ware shamelessly took advantage of a program designed to assist others in need during an unprecedented challenge to our nation,” said U.S. Attorney Ryan K. Buchanan. “In her various public roles, including running for mayor, Ware asked people to trust in her ability to lead. Unfortunately, what she has shown is a willingness to defraud taxpayers to enrich herself.”
“It is shameful that Ware tried to profit from a bad situation. This scheme took desperately needed money away from people struggling during the COVID pandemic,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “This isn’t a victimless crime, every time a fraudster like this stole money, legitimate applicants were unable to get those funds to help themselves and their families.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: the PPP was an emergency funding program created to assist small business owners and their employees during the coronavirus pandemic. PPP loans were fully guaranteed by the Small Business Administration but were underwritten and issued by authorized financial institutions.
Before the pandemic, Olivia Ware formed a Georgia company called Let’s Talk About the Family, Inc. (Let’s Talk), where she identified herself as its CEO. But the investigation revealed that Let’s Talk had not filed federal or state records indicating it paid any taxes or wages to any employees for several years prior to 2020. Yet in April 2020, Ware submitted a PPP loan application to an authorized PPP lender for Let’s Talk.
The application attached fictitious and forged federal tax records purporting to show Let’s Talk was earning millions of dollars in revenue and had 54 employees prior to the pandemic. Ware also sent the bank a list of Let’s Talk’s 54 purported employees, identified by their names and other personal information, purporting that Let’s Talk paid hundreds of thousands of dollars a year in salaries. However, many of the so-called employees, when contacted by federal agents, reported that they had never even heard of Ware or Let’s Talk.
As a result of the materially false information from Ware, a bank issued $323,100 in PPP funds to Let’s Talk. Ware then spent the fraudulently obtained PPP proceeds for her own benefit, including to buy a $24,000 swimming pool, furniture, and a multitude of other home improvement items. She also used stolen PPP funds to pay down the mortgage on her primary residence.
Olivia Ware, 63, of Oxford, Georgia, was sentenced to two years in prison to be followed by three years of supervised release and was ordered to pay $323,100 in restitution to the Small Business Administration. The sentence was imposed following Ware’s guilty plea to bank fraud on March 23, 2022.
This case was investigated by the U.S. Department of Homeland Security – Homeland Security Investigations.
Assistant U.S. Attorneys Trevor C. Wilmot and Bernita B. Malloy prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta film producer pleads guilty for $2.5 million cryptocurrency-based investment scamsRead the Press Release
ATLANTA - Ryan Felton has pleaded guilty to multiple counts of wire fraud, securities fraud, and money laundering charges on the fourth day of his jury trial arising from his fraudulent promotion of two cryptocurrency investment schemes that cost investors millions in losses.
“The defendant used 21st century technology to perpetrate an age-old fraud: lying to investors to steal their money and fund his own lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan. “Felton’s conviction should serve as a warning to anyone who seeks to capitalize on emerging technology to victimize others.”
“The technology has advanced, but the crime remains the same, and those who invest in cryptocurrency must be wary of opportunities that appear too good to be true,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is committed to protecting investors from sophisticated cryptocurrency scammers that seek to capitalize on the novelty of digital currency.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: In 2017, Felton promoted an initial coin offering (ICO) for a new entertainment streaming platform, FLiK, which he promised would surpass Netflix. ICOs are fundraising events during which the issuers of a unique cryptocurrency “token” or “coin” set an amount they want to raise, offer it to the public in a crowd sale, and receive cryptocurrency from investors in exchange.
In order to increase, or pump, the price of FLiK coins, Felton falsely represented to investors that a prominent Atlanta rapper and actor was a co-owner of FLiK, the United States military had agreed to distribute the streaming platform to service members, and FLiK was finalizing licensing deals with major film and television studios. In reality, the rapper had no role in the company beyond authorizing a promotional social media post, FLiK had no military contract, and Felton never had discussions with any studio about licensing content. Felton further claimed that he was actively developing the platform and would use all funds raised in the ICO to launch FLiK. After the ICO closed, Felton dumped more than 40 million FLiK coins on trading markets, causing the value of FLiK coins to plummet.
Instead of using investor funds to develop the platform, Felton diverted approximately $2.4 million in investor proceeds from the ICO and trading markets to his personal account. He used the vast majority of the investor proceeds to fund his extravagant lifestyle, including all-cash purchases of a $1.5 million residence, a $180,000 red 2007 Ferrari 599 GTB Fioran Coupe, a new $58,250 Chevy Tahoe, and approximately $30,000 in diamond jewelry.
In 2018, Felton promoted a second ICO for a new company, CoinSpark, which was a cryptocurrency trading exchange. In order to attract investors to the ICO, Felton promised that Spark coin investors would receive 25% of the trading exchange’s profits in the form of dividends. Felton further claimed that a global accounting firm would audit CoinSpark’s finances on a quarterly basis, but, in reality, he never spoke with the accounting firm. Felton also posed as a potential investor, using fake names, on various internet forums and social media sites to further promote false information and build up excitement in CoinSpark.
After raising more than $200,000 in the ICO, Felton announced that CoinSpark would not pay Spark investors a dividend and offered ICO investors a refund. Felton then repeatedly rejected or ignored investor requests for refunds. The CoinSpark exchange ultimately launched months after its promised delivery date but had significant technical issues and minimal trading activity. Instead of applying ICO proceeds to CoinSpark, Felton again diverted significant funds to his personal bank account.
Ryan Felton, 48, of Atlanta, Georgia, pleaded guilty to twelve counts of wire fraud, ten counts of money laundering, and two counts of securities fraud on the fourth day of his jury trial. Sentencing will be scheduled at a later date before U.S. District Court Judge J.P. Boulee.
This case is being investigated by the Federal Bureau of Investigation.
The SEC Washington, D.C. Office and the SEC New York Regional Office provided valuable contributions in this case.
Assistant U.S. Attorneys Sekret T. Sneed and Nathan P. Kitchens 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 Mayor of Stonecrest sentenced to prison for stealing COVID-19 relief fundsRead the Press Release
ATLANTA – Jason Lary, the former Mayor of the City of Stonecrest, has been sentenced for using his elected office to steal hundreds of thousands of dollars in federal COVID-19 relief funds allocated to the city.
“Lary betrayed the trust placed in him by the citizens of Stonecrest by stealing the very funds meant to help his constituents weather the COVID-19 pandemic,” said U.S. Attorney Ryan K. Buchanan. “The people of Stonecrest deserved better, and corrupt officials can expect severe consequences for using their offices to commit crimes.”
“It is extremely disheartening when an elected official, someone sworn to protect the community they serve, violates that oath by stealing relief funds intended to aid their community”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.”
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. The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. In July 2020, the DeKalb County Board of Commissioners voted to disburse some of the relief funds to its municipalities, including a $6.2 million grant to Stonecrest.
Stonecrest was required to spend the relief funds in accordance with the CARES Act. In general, according to the Department of the Treasury, relief funds could “only be used to cover costs that – [were] necessary expenditures incurred due to the public health emergency . . . . and were incurred during the period that [began] on March 1, 2020, and [ended] on December 30, 2020.” Examples of eligible expenditures were medical expenses, public health expenses, and grants to small businesses to reimburse the costs of business interruption caused by required closures.
In September 2020, Jason Lary, then the Mayor of Stonecrest, signed a resolution acknowledging these CARES Act requirements. The resolution also adopted a funding plan for most of Stonecrest’s relief funds. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. In practice, the Stonecrest Cares Program directed relief funds to churches and non-profit organizations in and around Stonecrest. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (“Small Business Program”).
Stonecrest did not disburse the $6 million allocated to the Stonecrest Cares Program and Small Business Program. Instead Lary worked behind the scenes to form a private company, Municipal Resource Partners Corporation, Inc. (“MRPC”), recruit its CEO, open its bank accounts, and ensure that Lania Boone, his convicted co-conspirator, would be hired as MRPC’s bookkeeper. Then, Lary caused the city to enter a contract with MPRC to disburse the relief funds as directed by Stonecrest.
In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program. The application included the question, “are you willing to allocate 25% of your grant to marketing your business?” Hundreds of businesses applied for relief funds, but most of the applicants were rejected. Ignoring input from the official selection committee, from about November 2020, until about February 2021, Boone signed dozens of checks on behalf of MRPC, directing relief funds to individuals, businesses, churches, and non-profit organizations of Lary’s own choosing.
Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. First, Lary conspired with Boone to steal relief funds before they were disbursed by MRPC. In January 2021, Boone used her access to one of MRPC’s bank accounts to wire transfer approximately $108,000 of relief funds to a mortgage servicing company. Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boone’s son’s college tuition and rent.
Second, Lary told churches that received relief funds from the Stonecrest Cares Program that they were required to contribute a portion of those funds for purposes identified by Lary. For example, Lary presented a check for $150,000 in relief funds to “Church 1,” on the condition that $50,000 be given to a company called Real Estate Management Consultants, LLC (“REMC”). Lary did not tell Church 1 at this time that he actually controlled REMC. And while Lary falsely stated that the $50,000 would be used to assist with home repairs for people who could not afford them due to COVID-19, in reality he used the money for his own purposes, including to pay off his outstanding federal, state, and local tax liabilities.
As another example, Lary presented a check from MRPC for $50,000 to “Church 2.” Later, a person acting on Lary’s behalf told Church 2 to contribute $4,500 of the relief funds to REMC, purportedly for rent assistance. Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee.
Third, Lary and others acting on his behalf solicited relief funds from businesses that received grants under the Small Business Program. Lary and others falsely claimed that the money would be each business’s “contribution” to Stonecrest-related marketing and advertising. Yet Lary and others asked that these “contributions” be given not to Stonecrest, but to entities called Visit Us, Inc. and Battleground Media, LLC. Lary did not tell the businesses that he controlled these entities. In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds. The relief funds deposited into the Visit Us and Battleground Media accounts were used by Lary to benefit himself and his associates. For example, Lary used relief funds held by Visit Us to pay for an associate’s political advertising.
Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media.
Jason Lary, 60, of Stonecrest, Georgia, has been sentenced to four years and nine months in prison to be followed by three years of supervised release. He 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, Lary’s co-conspirator, pleaded guilty to conspiracy on February 11, 2022. She is scheduled to be sentenced on August 15, 2022.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Trevor C. Wilmot 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.
U.S. Attorney Ryan K. Buchanan appointed to serve on Attorney General Merrick B. Garland’s Advisory CommitteeRead the Press Release
ATLANTA – Attorney General Merrick B. Garland has announced the appointment of U.S. Attorney Ryan K. Buchanan of the Northern District of Georgia to serve on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). The AGAC was created in 1973 and advises the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys and elevates the voices of U.S. Attorneys in Department of Justice policies. Buchanan, along with 12 other U.S. Attorneys from around the United States, will serve on the AGAC.
“These U.S. Attorneys will represent the views of dedicated federal prosecutors across the country and provide advice and insight into essential matters facing the Department,” said Attorney General Garland. “I look forward to working alongside them in carrying out the Department’s core priorities of upholding the rule of law, keeping our country safe, and protecting civil rights.”
“It’s a great honor to be selected for the AGAC,” said U.S. Attorney Ryan K. Buchanan, “I am excited and grateful for the opportunity to partner with the Attorney General and the leadership of the Department of Justice on issues affecting the Northern District of Georgia, the U.S. Attorney Office community, and our federal, state, and local stakeholders.”
The Senate confirmed Buchanan’s appointment as U.S. Attorney for the Northern District of Georgia in April 2022. U.S. Attorney Buchanan began his career as a law clerk to the Honorable Inge P. Johnson of the U.S. District Court for the Northern District of Alabama. From 2006 to 2009, he was a litigation associate at McGuireWoods. From 2010 to 2013, Buchanan served as an Assistant United States Attorney in the Northern District of Alabama. He joined the U.S. Attorney’s Office in the Northern District of Georgia in 2013 and has held the positions of National Security and Anti-Terrorism Council Coordinator since 2017 and Deputy Chief of the Violent Crime and National Security Section since 2018. Buchanan received his J.D. from Vanderbilt University Law School in 2005 and his B.S. from Samford University in 2001.
The AGAC appointees include U.S. Attorney Damian Williams for the Southern District of New York (Chair); U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania (Vice Chair); U.S. Attorney Darcie McElwee for the District of Maine; U.S. Attorney Trini Ross for the Western District of New York; U.S. Attorney Sandra Hairston for the Middle District of North Carolina; U.S. Attorney Brandon Brown for the Western District of Louisiana; U.S. Attorney Dawn Ison for the Eastern District of Michigan; U.S. Attorney Gregory Harris for the Central District of Illinois; U.S. Attorney Andrew Luger for the District of Minnesota; U.S. Attorney Gary Restaino for the District of Arizona; U.S. Attorney Cole Finegan for the District of Colorado; and U.S. Attorney Matthew Graves for the District of Columbia.
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.
Sandy Springs man sentenced for Tricare and Medicare fraud schemeRead the Press Release
ATLANTA - Brett Sabado has been sentenced for his role in a scheme to defraud Tricare and Medicare by submitting fraudulent claims for compound medications and durable medical equipment (DME). Sabado also agreed to pay $950,000 as part of an “ability to pay” civil settlement in order to resolve violations of the False Claims Act for causing false claims for DME to be submitted to the Medicare Program. This resolution is the result of a global investigation involving the criminal and civil divisions of the Northern District of Georgia and the Southern District of California.
“Instead of putting patient care first, the defendants decided their best interests were more important,” said U.S. Attorney Ryan K. Buchanan. “Healthcare providers and pharmacies who use their positions of trust to game the system, specifically designed to maximize their profits, put their patients at risk and divert scarce government resources.”
“Through federal healthcare programs like Medicare and TRICARE, the United States provides essential medical care for the elderly and disabled, and to service members and their families,” said U.S. Attorney Randy Grossman of the Southern District of California. “It is crucial that the American people know that taxpayer funds are being used for these important purposes and not diverted through the schemes of fraudsters. I am proud of the coordination and cooperation among districts and agencies reflected in this outcome,” he added, commending the work of the attorneys and agents in the SDCA and NDGA U.S. Attorneys’ Offices, and at DCIS, FBI, and HHS-OIG, in employing the range of criminal and civil remedies to reach this resolution.”
“This sentence will hold Sabado accountable for the damage he caused to Medicare and every taxpayer in this country,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Government subsidized programs like Medicare help protect the healthcare needs of deserving Americans and the FBI is determined to work with our partners to prevent people from illegally profiting off of them.”
“HHS-OIG is committed to protecting beneficiaries of federal health care programs from fraud and safeguarding valuable taxpayer dollars,” said Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to investigate and hold accountable any providers who egregiously take advantage of their patients for illegitimate financial gain.”
“Compounding pharmacy fraud bilked the Defense Health Agency of over a billion dollars and exploited not only the military, but all citizens,” said DoD Inspector General's Defense Criminal Investigative Service (DCIS) Southeast Field Office Special Agent in Charge Cynthia A. Bruce. “I thank the U.S. Attorney's Office and our investigative team for their tireless effort to untangle this web of crime, trace the assets, and hold these individuals accountable.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Sabado and his co-conspirators received illegal kickbacks for Tricare referrals and prescriptions of compound medication formulations including pain creams, scar creams, and multi-vitamins that they specifically devised to maximize profits.
Sabado operated NHS, a pharmaceutical company that caused compounding pharmacies to submit false claims for these prescriptions to Tricare. The compounding pharmacies paid NHS a portion of the Tricare reimbursement, and NHS paid a portion of its proceeds to healthcare marketing companies that pushed providers into prescribing these unnecessary compound medications.
Sabado further executed the scheme by creating an online portal database used by NHS to facilitate the referral of prescriptions through NHS to the compounding pharmacies. Sabado and others at NHS used claims data to track the referrals made to compounding pharmacies and to invoice those pharmacies for the illegal kickbacks owed to NHS for the referrals. Sabado ultimately caused a loss of $4.5 million to Tricare.
Sabado also conspired with the owners of DME supply companies to submit false and fraudulent claims for medically unnecessary DME such as arm, leg, back, wrist, and neck braces to Medicare. Specifically, Sabado warehoused, packaged, and shipped thousands of fraudulent DME orders to Medicare beneficiaries. Sabado knew that the DME orders were supported by sham prescriptions written by telemedicine physicians who, in many instances, never spoke with or examined the Medicare beneficiaries for whom the physicians ordered DME. Nonetheless, Sabado continued to package and ship DME that Medicare beneficiaries neither requested nor needed.
For his part in this scheme, Sabado received between $5 and $15 for each medically unnecessary brace he shipped. Sabado also received a percentage of all Medicare reimbursement for the braces. Sabado ultimately caused a loss of almost $70 million to Medicare.
Sabado further engaged in similar conduct involving the submission of false and fraudulent claims to Tricare, the New Jersey State Health Benefits Program, and private health care benefits programs for expensive and medically unnecessary compounded medication in other states.
Brett Sabado, 34, of Sandy Springs, Georgia, was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to five years in prison to be followed by three years of supervised release.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services - Office of Inspector General, the Federal Bureau of Investigation, and the Defense Criminal Investigative Service.
The civil resolution was reached by Assistant U.S. Attorney Mellori Lumpkin-Dawson. The criminal case was prosecuted by Assistant U.S. Attorneys Angela Adams and Bernita Malloy in the Northern District of Georgia. A related case in the Southern District of California, United States v. Charles Ronald Green and Melinda Elizabeth Green, Case No. 3:20-cr-01566-DMS, SDCA (San Diego)), was prosecuted by Assistant U.S. Attorneys Valerie Chu and Kevin Larsen.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Metro Atlanta man charged with money laundering related to COVID-19 Unemployment Insurance benefit fraudRead the Press Release
ATLANTA - Oluwagbemiga Otufale has been arraigned on federal charges of conspiracy and money laundering. Otufale was indicted by a federal grand jury on June 21, 2022
“Money launderers function as the financiers of criminal organizations, enabling the victimization of our communities while hiding behind a shield of anonymity built through a maze of aliases, bank accounts, and business transactions,” said U.S. Attorney Ryan K. Buchanan. “We will continue to bring sophisticated money launderers to justice, especially the criminals who exploited the pandemic to steal from those in need.”
“It is disheartening to see the lengths that some individuals will go to take advantage of people in need during a national and world crisis,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “No matter how elaborate or complicated the fraud scheme, the FBI and our partners will work to uncover it and bring those responsible to justice.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance benefit programs. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Mathew Broadhurst, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act created a temporary federal program that provided up to 39 weeks of unemployment benefits for those unemployed as a result of the pandemic and included a provision to provide temporary benefits to individuals who had exhausted their entitlement to regular benefits or were otherwise not eligible. That temporary federal program was administered by state employment agencies.
Oluwagbemiga Otufale allegedly laundered money procured from fraudulent unemployment claims submitted to state employment agencies in Washington, Illinois, and Massachusetts. These claims were filed using stolen personally identifiable information of over a hundred individuals. Otufale also allegedly laundered proceeds from a business email compromise scheme targeting two Georgia businesses. Additionally, Otufale allegedly created multiple aliases and sham business entities to open financial accounts in which he deposited the fraudulent proceeds.
Oluwagbemiga Otufale, a/k/a Joseph Perrone, a/k/a Kelvin Benjamin, a/k/a Abraham Young, 44, of Riverdale, Georgia, who was arraigned before U.S. Magistrate Judge J. Elizabeth McBath, was charged with money laundering conspiracy and concealment money laundering as a result of these activities. 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 Labor, Office of Inspector General.
Assistant U.S. Attorneys Sarah E. Klapman and Tracia King 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
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Georgia Unemployment Insurance Task Force. The Task Force is comprised of federal and state agencies throughout Georgia that are dedicated to combat COVID-related Unemployment Insurance Benefit Fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Johns Creek man pleads guilty to defrauding elderly manRead the Press Release
ATLANTA - Aziz Choukri has pleaded guilty to wire fraud after admitting that he defrauded a 79-year-old retiree of approximately $650,000.
“Fraud schemes targeting the elderly are a particularly egregious type of fraud that often deplete the victims’ entire life savings,” said U.S. Attorney Ryan K. Buchanan. “This conviction affirms our commitment to prosecuting those who prey on our most vulnerable citizens.”
“The victimization of the elderly through financial scams represent one of the most significant types of cases the Secret Service investigates to combat fraud,” said Special Agent in Charge Steven Baisel of the U.S. Secret Service Atlanta Field Office. “Those who prey on the vulnerable and cheat them out of their life savings through their cunning lies and financial schemes must recognize that the Secret Service, along with our many law enforcement partners, will prosecute them to the fullest extent of the law and bring a measure of justice to the victims.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2016, Choukri met the victim, then 79 years old, at a fitness facility in Alpharetta, Georgia. Choukri cultivated a close relationship with the elderly victim to gain his trust. Choukri convinced the victim to invest almost $650,000 in his music management company. Choukri convinced the victim that the investment carried no risk and was guaranteed to earn a return.Specifically, Choukri promised that the victim would be compensated the full amount of any investment, plus interest, and even told the victim that he would guarantee him a $1,000,000 return. Choukri did not tell the victim that the money would be used to fund Choukri’s lifestyle.
Instead of using the money as an investment in a music business, Choukri used the victim’s money largely on Choukri’s own personal expenses, including, among other things, Choukri’s activities of daily living (e.g., fast food, gas, and uber), payments for his daughter’s college tuition and sorority expenses, dental work for his girlfriend, payments to his girlfriend for tutoring and babysitting, and repayment of a personal loan. Choukri also transferred a significant amount of the victim’s money to his children’s accounts and withdrew thousands of dollars in cash. Notably, Choukri’s accounts show that almost all of Choukri’s income in 2016 and 2017 was from the victim.
Aziz Choukri, 59, of Johns Creek, Georgia, pleaded guilty to wire fraud on June 16, 2022. Sentencing is scheduled for September 14, 2022, before U.S. District Court Judge Eleanor L. Ross.
This case is being investigated by the U.S. Secret Service.
Assistant U.S. Attorneys Angela Adams and Tal C. Chaiken are prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
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 business owner pleads guilty to dumping hazardous wasteRead the Press Release
ROME, Ga. - Amin Ali, who directed the dumping of over 100 drums and other containers of chemicals, including hazardous waste, has pleaded guilty to a charge of disposal of hazardous waste without a permit.
“Ali disregarded the health and safety of citizens by trying to conceal his illegal dumping,” said U.S. Attorney Ryan K. Buchanan. “He also broke the law regarding the proper handling of hazardous materials. Our office takes protection of the environment very seriously and will continue to prosecute those who seek to destroy our precious natural resources.”
“The defendant illegally disposed of numerous drums containing hazardous waste in violation of the Resource Conservation and Recovery Act,” said Special Agent in Charge Charles Carfagno of EPA-CID’s Southeast Area Branch. “This guilty plea demonstrates that EPA will hold accountable for such criminal behavior and that EPA and DOJ will continue to vigorously prosecute those that choose to violate our environmental statutes.”
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 and is designed to protect human health and the environment by requiring the proper and safe management of hazardous waste from the time it is created until the time it is disposed of properly. RCRA prohibits the treatment, storage, and disposal of hazardous waste without a permit issued under the statute. 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 the 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 had over 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 left 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.
Sentencing for Amin Ali, 56, of Dalton, Georgia, is scheduled for September 20, 2022, at 1:30 p.m. before U.S. District Judge Leigh Martin May. Ali pleaded guilty on June 22, 2022.
This case is being investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, 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.
Motocross coach indicted for child exploitation crimesRead the Press Release
ATLANTA - Ryan Meyung, a motocross instructor who traveled the country building motocross tracks and mentoring children has been indicted for multiple child exploitation offenses.
“Meyung allegedly produced, transported, and possessed child pornography while working with children as a motocross coach,” said U.S. Attorney Ryan K. Buchanan. “Victimizing children is heinous and horrific. With the help of our law enforcement partners, we will relentlessly pursue these types of sexual predators.”
“There is no place in our society for those who prey on innocent children and individuals who use their position of trust to gain access to children are particularly heinous,” said HSI Nashville Special Agent in Charge Jerry C. Templet. “We are thankful to our special agents and our law enforcement partners who do the difficult but important work of investigating these crimes and safeguarding our nation’s children.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Ryan Meyung allegedly engaged six different minor victims in sexually explicit conduct to produce images of child sexual abuse, and transported and possessed visual images of child sexual abuse. The alleged crimes occurred between 2019 and 2021. He was arrested on state charges in December 2021 and has remained in custody.
Meyung was known to frequent states including Georgia, Indiana, Kentucky, Michigan, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, and Tennessee.
Ryan Meyung, 30, was charged with six counts of producing child pornography, one count of transporting child pornography, and one count of possessing child pornography. 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 Homeland Security Investigation (HSI) Chattanooga jointly with the Hamilton County Sheriff’s Office (Tennessee), the Chattanooga Police Department, and HSI field offices throughout the country.
Assistant U.S. Attorney Erin N. Spritzer of the U.S. Attorney’s Office for the Northern District of Georgia, and the Justice Department’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
Investigators believe Meyung may have victimized additional children. If you have information related to Meyung that could further law enforcement’s investigation, or if you suspect that a particular child may have been one of his victims, you are encouraged to call the HSI Tip-line at 866-347-2423 or https://www.ice.gov/tipline.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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.
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.
Military contractors indicted for $7 million procurement fraud schemeRead the Press Release
ATLANTA - A federal grand jury has indicted a company and three individuals in an alleged fraud scheme involving military contracts totaling over $7 million. The three-count indictment charges Envistacom LLC, its President Alan Carson, a vice president Valerie Hayes, and the owner of another company, Philip Flores, each with one count of conspiracy to defraud the United States and two counts of major fraud.
“The United States relies upon its contractors to be honest and forthright in their dealings,” said U.S. Attorney Ryan K. Buchanan. “When they allegedly provide false information to obtain contracts, they harm the American taxpayer and the integrity of the system. We will diligently work to bring such companies and their executives to justice.”
“Collusion and fraud undermine competition in the procurement process to the detriment of U.S. taxpayers,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Investigating and prosecuting criminal activity remains a top priority for the Department of Justice and all members of the Procurement Collusion Strike Force.”
“The indictment of these individuals demonstrates the resolve and dedication of the Defense Criminal Investigative Service and our investigative partners in protecting the integrity of the Department of Defense contracting system,” said Special Agent in Charge Cynthia A. Bruce, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “Contractors who circumvent the contracting process for their own personal gain will be thoroughly investigated and held accountable for their fraudulent actions.”
“Such alleged activity by government contractors who provide services to the Army will not be tolerated,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division’s (Army CID) Major Procurement Fraud Field Office. “We will continue to investigate allegations of this nature and do everything in our power to see that persons responsible are held accountable and brought to justice.”
According to U.S. Attorney Buchanan and the indictment: From at least September 2014 through at least November 2016, the defendants and others conspired by preparing and procuring purported “competitive quotes” from other companies, which were sham quotes that were intentionally higher than the proposal prices and/or price quotes from Envistacom and Flores’ company to ensure the sole-source awards.
The conspirators also concealed that the defendants prepared the independent government cost estimates and other procurement documents for the award of these contracts and made false statements, representations and material omissions to federal government contracting officials regarding these estimates being legitimate independent cost estimates and the sham quotes being “competitive.”
Alan Carson, 51, of Atlanta, Georgia, Valerie Hayes, 56, of Callaway, Maryland, and Philip Flores, 51, of Fredericksburg, Virginia, were indicted on May 25, 2022. The defendants are 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 Defense Criminal Investigative Service and the U.S. Army Criminal Investigation Division.
Assistant U.S. Attorney Christopher Huber for the Northern District of Georgia, and the DOJ Antitrust Division’s Washington Criminal II 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.
ADA settlement with Atlanta YMCA ensures equal opportunities for children with diabetesRead the Press Release
ATLANTA - The U.S. Attorney's Office for the Northern District of Georgia has entered into a settlement agreement with The Villages at Carver Family YMCA located in Atlanta, Georgia, to resolve allegations that the YMCA violated the Americans with Disabilities Act (ADA) by failing to reasonably modify policies and procedures for a child with diabetes.
“After-school programming provides opportunities for children to socialize with other children, and these programs are necessary for parents and caregivers who work and need a safe place for the children to go after school,” said U.S. Attorney Ryan K. Buchanan. “Children with diabetes should have an equal opportunity to participate in these after-school programs, and we commend the YMCA for working cooperatively with my office to achieve this goal.”
This matter was initiated by a complaint filed with the Department of Justice Civil Rights Division. The complainant alleged that the Atlanta YMCA violated the ADA by denying a child the opportunity to participate in the YMCA's after-school program because of her diabetes. The YMCA refused to provide daily insulin injections to the child, which left her unable to attend the after-school program.
Title III of the ADA prohibits discrimination on the basis of disability in the full and equal enjoyment of the goods, services, facilities, and privileges of any place of public accommodation. The Atlanta YMCA is a private entity that operates childcare facilities that are places of "public accommodation" within the meaning of Title III of the ADA.
Based on the Agreement, the YMCA will adopt a non-discrimination policy to ensure ADA compliance. The YMCA will also provide mandatory training for all employees who work in the after-school program. Additionally, the YMCA will pay $5,000 in compensation to the complainant.
This matter was handled by Assistant U.S. Attorney, Aileen Bell Hughes, Special Counsel and former Assistant U.S. Attorney Soo Jo, Civil Rights Unit, U.S. Attorney’s Office.
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 couple sentenced for carjacking, bank robbery, drug trafficking, and weapons crime spreeRead the Press Release
ATLANTA - Quantavious Cedron Arnold and Ericka Brewster have been sentenced to federal prison for carrying out a two-week crime spree during which they robbed a bank and fled in a car Arnold had stolen at gunpoint just two days earlier.
“Outstanding coordination between the FBI and local law enforcement ended Arnold’s crime spree,” said U.S. Attorney Ryan K. Buchanan. “This office will continue to target individuals like Arnold and Brewster who perpetrate, abet, and seek to profit from violent crime in our community.”
“Both Arnold and Brewster have extensive violent criminal histories, and once again put innocent civilians at risk during the span of their two-week crime spree,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The sentence demonstrates the FBI’s commitment to work with our local law enforcement partners to convict these repeat offenders at the federal level, where they face stiffer penalties and no opportunity for parole.”
“Keeping the citizens and visitors of the City of Atlanta is a priority for the Atlanta Police Department. The convictions of Quantavious Cedron Arnold and Ericka Brewster sends a resounding message to criminals that violent crimes will not be tolerated in our city,” said Atlanta Interim Police Chief Darin Schierbaum. “The Atlanta Police Department is proud of the effort put forth by investigators to bring these criminals to justice. The sentencing of repeat offenders proves the effectiveness of our law enforcement partnerships, the dedication of the members of the various agencies, and our commitment to solving and closing cases.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On November 12, 2019, Arnold and two other people perpetrated a carjacking outside a convenience store in southwest Atlanta. Arnold threatened his victim with a semiautomatic pistol equipped with an extended magazine before he and his accomplices stole the man’s car.
Two days later, on November 14, 2019, Arnold used the stolen car to drive himself and his girlfriend, Brewster, to a bank branch in DeKalb County, Georgia. Arnold and Brewster entered the bank and waited in line until Arnold approached the teller counter, pulled out a gun, and threatened to kill people unless the teller surrendered thousands of dollars of cash. After pocketing the money, Arnold and Brewster fled from the bank and back into the stolen car, which they later abandoned.
A week later, an Atlanta police officer located and arrested Arnold in a wooded area down the block from the store where Arnold had committed the carjacking just ten days earlier. At the time of his arrest, Arnold had the gun used during the bank robbery, a distribution quantity of crack cocaine, and a digital scale. FBI agents arrested Brewster later.
Both Arnold and Brewster are convicted felons with extensive criminal histories. Brewster’s history includes convictions for fraud, theft, and forgery offenses. Arnold’s history includes repeated convictions for unlawful gun possession, drug trafficking, and violent crimes, such as aggravated assault, battery, and burglary. Both defendants were serving multiple terms of state probation when they committed their federal crimes. Arnold had been sentenced to two of those probation terms less than four months before he committed the carjacking and bank robbery.
U.S. District Judge Leigh Martin May sentenced the defendants as follows:
- Quantavious Cedron Arnold, 30, of Atlanta, Georgia, was sentenced on June 14, 2022, to 25 years of imprisonment, to be followed by three years of supervised release, and ordered to pay $8,200.00 in restitution. Arnold was convicted at trial on January 14, 2022, of possession of cocaine with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. Before the trial, he pled guilty to carjacking, armed bank robbery, possession of a firearm by a convicted felon, and two counts of brandishing a firearm during a crime of violence.
- Ericka Brewster, 31, of Jonesboro, Georgia, was sentenced on November 12, 2020, to four years, six months of imprisonment, to be followed by five years of supervised release, and ordered to pay $8,200 in restitution. Brewster pled guilty on November 6, 2020, to one count of armed bank robbery.
This case was investigated by the Federal Bureau of Investigation with assistance from the Atlanta Police Department, DeKalb County Police Department, Georgia Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Theodore S. Hertzberg and Annalise K. Peters prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former physician's assistant indicted for health care fraud, aggravated identity theft, and illegally prescribing controlled substancesRead the Press Release
ATLANTA - Theresa Pickering has been arraigned on federal charges of health care fraud, aggravated identity theft, and distribution of controlled substances. Pickering was indicted by a federal grand jury on June 7, 2022.
“By posing as a licensed physician's assistant, Pickering placed her own interests above the safety of the patients that entrusted her with their most important asset – their health,” said U.S. Attorney Ryan K. Buchanan. “This office will use every tool at its disposal to combat this type of unprofessional, unsafe, and unlawful behavior.”
“Pickering had a chance to turn her life around after serving time for previous fraud, but instead choose to commit further crimes, proving that she has not learned from her prior convictions,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI and our partners will not tolerate anyone that puts our citizen’s health care at risk, and we remain determined to expose and bring them to justice.”
“This provider took advantage of her access to patient information for financial gain, undermining both patient trust and the integrity of federal health care programs,” said Tamala Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to investigate and prosecute such egregious conduct.”
“When a provider seeks to practice medicine without a license, it puts patients at great risk,” said Amy K. Parker, Special Agent in Charge, Office of Personnel Management, Office of the Inspector General (OPM-OIG). “The OPM OIG will always prioritize keeping patients safe and holding unscrupulous providers accountable.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On or about September 24, 2019, Pickering was hired as a licensed physician’s assistant a family practice in Norcross, Georgia. Pickering, however, was not a licensed physician’s assistant in Georgia and has not been a licensed physician’s assistant in any state since March 2014.
After serving a prison sentence for 2015 state and federal fraud and narcotics convictions related to Pickering’s illegal practice as a physician’s assistant in Mississippi, Pickering relocated to Georgia and obtained employment at the family practice in Norcross.
While employed there, Pickering treated patients, diagnoses illnesses, ordered diagnostic tests and lab work, handled sick visits and prescribed drugs to patients, none of which was authorized by law based on her lack of licensure and exclusion from federal health care programs.
Pickering also issued prescriptions, while posing as a physician’s assistant, including prescriptions for controlled substances, in the name of Doctor 1, a physician contracted by the practice, without Doctor 1’s permission. Pickering caused the practice to submit at least approximately $147,000 in fraudulent claims for reimbursement to Medicare and numerous private insurance companies.
Theresa Pickering, 53, of Norcross, Georgia, was arraigned before U.S. Magistrate Judge Russell G. Vineyard. 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, Department of Health and Human Services, Office of Inspector General, and Office of Personnel Management, Office of the Inspector General.
Assistant U.S. Attorney David A. O'Neal 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 Bartow County EMT sentenced to prison for distributing child pornographyRead the Press Release
ATLANTA - Bryan David Somers has been sentenced to 12 years and six months in prison for the receipt and distribution of child pornography. Prior to his arrest, Somers was an EMT and a substitute teacher at a local elementary school.
“By receiving and distributing these images, Somers participated in the continuing abuse and exploitation of children,” said U.S. Attorney Ryan K. Buchanan. “The pictures and videos document the abuse of real children at the hands of depraved individuals. Distributing those images over the internet means the most horrifying thing in a child’s life is shared around the world, in perpetuity.”
“Stopping predators like Somers, who collect and distribute these horrific images of children being abused, is one of our highest priorities,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “We will continue to work with our law enforcement partners to ensure everyone involved in this unconscionable crime faces justice and our children protected.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In June 2019, a Polk County Police Officer, who is a member of the Georgia Internet Crimes Against Children task force, discovered a computer in Cartersville, Georgia was sharing child pornography over the internet. The lead was sent to the Bartow County Sheriff’s Office and Homeland Security Investigations.
During their investigation, agents learned that the IP address sharing child pornography was assigned to Somers. Agents also learned that Somers was employed as an EMT and a substitute teacher at a local elementary school. HSI agents, with assistance from the Georgia Bureau of Investigation, Bartow County Sheriff’s Office, and Polk County Police Department, executed a federal search warrant at Somers’s townhouse in July 2019.
Law enforcement seized and searched the computers found in Somers’s bedroom. A forensic analysis resulted in the recovery of a file that contained child pornography and revealed that Somers had downloaded hundreds of files with titles indicating they contained child pornography. Investigators also determined that Somers had attempted to remove these images from his devices to prevent discovery of this evidence. After a trial in March of 2022, a jury of Somers’s peers found him guilty of distributing and receiving child pornography.
Bryan David Somers, 43, of Cartersville, Georgia, was sentenced by U.S. District Judge J.P. Boulee to 12 years, six months in prison, to be followed by 25 years of supervised release for the receipt and distribution of child pornography.
This case was investigated by the Department of Homeland Security, with assistance from the Georgia Bureau of Investigations, the Bartow County Sheriff’s Office, and the Polk County Police Department.
Assistant U.S. Attorneys Katherine I. Terry and Paul R. Jones 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.
North Georgia man charged with killing postal carrierRead the Press Release
GAINESVILLE, Ga. - Larry Steven Grogan has been charged by a federal grand jury with the murder of U.S. Postal Service mail carrier Asa Wood, Jr. In connection to the murder, Grogan is also charged with assault on a federal employee using a deadly weapon, discharge of a firearm resulting in death, and felon in possession of a firearm.
“Asa Wood dedicated his life to serving his family and his community,” said U.S. Attorney Ryan K. Buchanan. “His murder is tragic and heartbreaking. The exceptional joint investigation conducted by the U.S. Postal Inspection Service and Banks County Sheriff’s Office resulted in the defendant’s arrest, and we are committed to seeking justice for Mr. Wood and his family.”
“The Postal Inspection Service extends our condolences to the family and close friends of Asa Wood, Jr who served his community as a diligent letter carrier and a beloved member of the U.S. Postal Service family,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors were fortunate to work alongside the Banks County Sheriff’s Office to bring a swift resolution to this case by taking a dangerous criminal off the street. The protection of our postal employees is an integral part of our mission, and we are pleased to see justice being served against this defendant who chose to callously take the life of Mr. Wood.”
“We are tremendously grateful for the remarkable collaboration of agencies that emerged during this tragic incident that led to the capture of the perpetrator,” stated Banks County Sheriff Carlton Speed. “Mr. Wood was a beloved husband, father and community member. He is greatly missed by all who had the gift of knowing him.”
According to U.S. Attorney Buchanan and the indictment: On August 7, 2021, Asa Wood, Jr., was delivering mail in Commerce, Georgia. He had been a mail carrier for over 20 years. While he was temporarily stopped near a mailbox, Grogan allegedly shot Wood in the left femur and drove away. Asa Wood died in his postal vehicle at the scene.
Residents on the road where the shooting occurred called 911 and provided information that helped identify Grogan as the shooter. Later that day, Banks County Sheriff’s Office deputies encountered Grogan and attempted to stop him. Grogan then exited his car and allegedly shot at the deputies. Banks County deputies successfully arrested Grogan without injury.
Larry Steven Grogan, 50, of Danielsville, Georgia, has been charged with murder, assault on a federal employee using a deadly weapon, discharge of a firearm resulting in death, and felon in possession of a firearm. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Postal Inspection Service and the Banks County Sheriff’s Office.
Assistant U.S. Attorney Jennifer Keen 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.
Violent recidivist sentenced to 10 years in prison for using a stolen identity to buy gunsRead the Press Release
ATLANTA - Dawuan Na’jee Williams, a multi-convicted felon, has been sentenced to federal prison for using another person’s name and date of birth to purchase more than two dozen firearms, some of which were later used in a shooting and other crimes.
“Because he’s a felon several times over, Williams could not lawfully possess or purchase firearms,” said U.S. Attorney Ryan K. Buchanan. “He then skirted federal law by utilizing stolen identification information to purchase firearms and will spend the next decade in federal prison.”
The Bureau of Alcohol, Tobacco Firearms and Explosives, Special Agent in Charge, Jeffrey L. Matthews, of the Newark Field Division said, “This is a reminder that all would-be firearms traffickers and those that contribute to violent crime in our communities are on our radar and there is no safe haven. ATF is deliberate and calculated in our approach to stem violent gun crimes from devastating our neighborhoods, while exploiting investigative leads derived from the National Integrated Ballistic Information Network (NIBIN), connecting crime guns to crime scenes, and leveraging our expertise to support investigations across multiple jurisdictions.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Williams purchased more than two dozen firearms and large-capacity ammunition magazines from federally licensed firearms dealers in North Georgia and the Atlanta metro area between May 2020 and June 2021. Some of these guns were used in crimes just days after Williams obtained them.
For example, in May 2021, police officers in Newark, New Jersey, recovered a loaded semiautomatic pistol from a crime scene just eight days after Williams bought that firearm. In early July 2021, police officers in Tallahassee, Fla. responded to the location of a shooting and recovered a pistol that Williams purchased approximately four weeks earlier. In late July 2021, ATF agents seized several guns from Williams’s residence. Those guns included a pistol Williams purchased two months before ATF recovered it. NIBIN analysis linked that pistol to a shell casing recovered from the scene of the Tallahassee shooting. In connection with that incident, authorities in Florida charged Williams with various offenses, including attempted murder and aggravated assault. Those charges remain pending.
During the entirety of his buying spree, Williams was strictly prohibited from purchasing firearms because he had been convicted previously of numerous felonies, including home invasion robbery, robbery, terroristic threats, kidnapping, aggravated battery, drug trafficking, grand theft, and criminal use of personal identification information. During each sale, Williams used identification information belonging to a victim who was unaware of Williams’s identity theft.
Dawuan Na’jee Williams, 40, of Jonesboro, Georgia, was sentenced by U.S. District Judge Steven D. Grimberg to ten years in prison, to be followed by three years of supervised release. Williams pleaded guilty on February 9, 2022, to one count of presenting false identification to a federally licensed firearms dealer.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Theodore S. Hertzberg, Firearms Trafficking Coordinator for the Northern District of Georgia, prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] 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.
Pharmacist sentenced to over 15 years in prisonRead the Press Release
ATLANTA - Thomas Ukoshovbera A. Gbenedio has been sentenced for illegally dispensing and distributing controlled substances from his pharmacy. After Gbenedio was found guilty by a jury, he attempted to flee the country to avoid prison.
“Gbenedio used his pharmacy as a pill-mill to supply highly-addictive narcotics to drug dealers and drug addicts,” said U.S. Attorney Ryan K. Buchanan. “His greed exacerbated the opioid epidemic that continues to plague our community. After the jury found him guilty, he then attempted to leave the country, but was quickly apprehended by law enforcement. Now, he will serve a significant prison sentence.”
“As the nationwide trend toward the non-medical use of prescription drugs swells, the need for an organized, immediate, and effective response increases correspondingly,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “The abuse of a trusted medical professional (a pharmacist in this case) like Mr. Gbenedio will not be tolerated. He will now face the consequences of his unlawful acts. This case is a perfect example of the success that can be achieved when DEA and its law enforcement partners work collaboratively confront, engage and eliminate the distribution of controlled substances by medical practitioners. Doing so will help to stem the tide against this country’s opioid epidemic.”
“Justice is served due to collaborative efforts of multiple law enforcement partnerships,” said Michael Yeager, U.S. Marshal for the Northern District of Georgia.
“This investigation emphasizes the commitment of the FBI and our partners in combatting the opioid epidemic in our country,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The public must trust in medical professionals, and the FBI will continue to investigate those who abuse their responsibilities and endanger others by engaging in criminal activity.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Gbenedio was a licensed pharmacist who owned Better Way Pharmacy in Mableton, Georgia. An investigation into Gbenedio began after Georgia Drug & Narcotics Agency (GDNA) agents conducted a routine inspection at Better Way and noticed that several of Gbenedio’s customers were driving long distances - including from Kentucky and Alabama - to get prescriptions filled at Better Way. Several of the prescriptions were for large quantities of highly addictive opioids, like oxycodone, and many of the prescriptions were purportedly from the same physician.
The investigation later revealed that the prescriptions being filled by Gbenedio between 2014 and 2016 were not real prescriptions; they were fake or fraudulent and otherwise illegal. Gbenedio charged his customers up to $1,000 to fill the illegal prescriptions for controlled substances.
After a two-week jury trial, Gbenedio was convicted of 70 counts of illegally dispensing and distributing controlled substances and one count of refusing an administrative inspection warrant.
Once the jury announced its verdict, Gbenedio was ordered to report to Probation for location monitoring. Instead of reporting, Gbenedio attempted to flee. He ultimately was apprehended at the Dallas-Fort Worth airport with the assistance of U.S. Marshals Service, Customs and Border Protection, and the Federal Bureau of Investigation.
Thomas Ukoshovbera A. Gbenedio, 72, of Mableton, Georgia, was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to 15 years, eight months in prison to be followed by three years of supervised release and ordered to pay a fine in the amount of $200,000. Gbenedio had been found guilty by a jury on October 29, 2021.
This case was investigated by the Drug Enforcement Administration, U.S. Marshals Service, and Federal Bureau of Investigation.
Assistant U.S. Attorneys Angela Adams and Erin N. Spritzer 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.
Reality TV stars convicted of fraud and tax evasionRead the Press Release
ATLANTA, Ga. – Following a three-week trial, a federal jury found Todd and Julie Chrisley guilty of conspiring to defraud community banks out of more than $30 million of fraudulent loans. The jury also convicted Todd and Julie Chrisley and their accountant, Peter Tarantino, of a number of tax crimes, including conspiring to defraud the IRS. The Chrisleys were found guilty of tax evasion, and Peter Tarantino was found guilty of filing two false corporate tax returns on behalf of the Chrisleys’ company. The jury also found Julie Chrisley guilty of wire fraud and obstruction of justice.
“The jury found that Todd and Julie Chrisley committed multiple fraud schemes for several years and their accountant, Peter Tarantino, filed false corporate tax returns on their behalf,” said U.S. Attorney Ryan K. Buchanan. “This office and our partner agencies will continue to vigorously investigate and prosecute white collar criminals who flout the law.”
“As today’s outcome shows, when you lie, cheat and steal, justice is blind as to your fame, your fortune, and your position,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “In the end, when driven by greed, the verdict of guilty on all counts for these three defendants proves once again that financial crimes do not pay.”
“Todd Chrisley, Julie Chrisley and their Certified Public Accountant, Peter Tarantino, conspired to evade the assessment and payment of the Chrisley’s income taxes. The Chrisleys and Tarantino knew the law was clear on taxable income and who is required to file and pay taxes,” said James E. Dorsey, Special Agent in Charge, IRS-Criminal Investigation. “These convictions should send a clear message regardless of your fame or notoriety, everyone will be held accountable for paying their fair share of taxes.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Before Todd and Julie Chrisley became reality television stars, they conspired to defraud community banks in the Atlanta area to obtain more than $30 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 banks to obtain the millions of dollars in fraudulent loans. The Chrisleys then 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 the fraudulently obtained loans.
The evidence further showed that in 2014, while Todd Chrisley was in bankruptcy proceedings, Julie Chrisley again manufactured financial documents and lied to real estate agents to obtain a luxury rental house in Los Angeles, California. As soon as the Chrisleys began renting the house, they failed to pay rent, and the homeowner filed an eviction lawsuit.
Around the time that Todd Chrisley filed for bankruptcy, the Chrisleys became the stars of their own reality show, which was recorded in Atlanta and later in Nashville. The evidence at trial showed that while they were 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 that received their income earned from their show and other entertainment ventures. 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. One day after the IRS requested information about bank accounts in Julie Chrisley’s name, the Chrisleys transferred ownership of the corporate bank account to Todd Chrisley’s mother in an effort to further hide his income from the IRS. All the while, Todd Chrisley operated the loan-out company behind the scenes and controlled the company’s purse strings.
While the Chrisleys were earning millions and evading paying Todd Chrisley’s delinquent back taxes, they also failed to file tax returns or pay any taxes for the 2013, 2014, 2015, and 2016 tax years. At one point, Todd Chrisley falsely claimed on a radio program that he paid $750,000 to $1 million in federal income taxes every year, even though he had not filed or paid his personal income tax returns for years. Tarantino was also 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.
Finally, Julie Chrisley was convicted of obstruction of justice. After learning of the grand jury investigation, she 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 Todd Chrisley’s mother. Julie Chrisley transmitted this document with the intent of impeding the grand jury’s investigation into her and her husband and avoiding prosecution.
Sentencing for Todd and Julie Chrisley, and Peter Tarantino, has been scheduled for Thursday, October 6, 2022, at 9:30 a.m.
This case is being investigated by the FBI and IRS Criminal Investigation.
Assistant U.S. Attorneys Thomas J. Krepp and Annalise K. Peters 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.
Third defendant sentenced for trafficking guns to BarbadosRead the Press Release
ATLANTA - Rashad Sargeant has been sentenced for his role in trafficking firearms to Barbados. Together with his co-defendant, David Johnson, Sargeant shipped at least 30 firearms to Barbados after obliterating the serial numbers from the firearms and packing them inside false compartments in boxes.
“Firearms trafficking fuels violence in communities within the United States and abroad,” said U.S. Attorney Ryan K. Buchanan. “We will continue to actively leverage partnerships with federal, state, local, and international law enforcement partners to stem the illegal flow of firearms.”
“This case and ultimate conviction highlights the fact that illegal gun trafficking not only affects our local communities but has implications far beyond our borders” said ATF Assistant Special Agent in Charge Alicia Jones. “At a time when gun crime is on the rise, this case reinforces the need for ATF and our partners to be vigilant in investigating and prosecuting individuals who supply both the domestic and international illegal arms trade.”
“Disrupting the flow of illegal guns inevitably saves lives and reduces overall crime, so I’m glad we were able to stop this scheme to illegally export guns to Barbados,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this highlight the great results that can be achieved when agencies work together to protect our communities.”
“The Office of Export Enforcement is committed to disrupting the illegal export of firearms from the United States,” said Nasir Khan, Acting Special Agent in Charge of the U.S. Department of Commerce’s Office of Export Enforcement, Miami Field Office. “We will continue to work with U.S. and international law enforcement partners to penalize violators of our export laws.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: David Johnson recruited Shunquez Stephens, and others to unlawfully purchase guns from federally licenses firearms dealers. Stephens, and the other “straw purchasers”, made false statements to the licensed dealers by swearing that that they were purchasing the guns for themselves.
Sargeant and Johnson would then take possession of the guns and use false identifications to mail the guns to Barbados through common carriers like UPS, FedEx, and DHL.
Rashad Sargeant, 27, of College Park, Georgia, has been sentenced to three years, ten months in prison to be followed by three years of supervised release after pleading guilty on September 2, 2021.
David Johnson, 31, of Belleville, Illinois, was previously sentenced on March 17, 2022, and sentenced to three years, ten months in prison to be followed by three years of supervised release after pleading guilty on July 22, 2021.
Shunquez Stephens, 28, of Flowery Branch, Georgia, was previously sentenced on September 30, 2021, and sentenced to three years of probation after pleading guilty on June 21, 2021.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Industry and Security, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Jennifer Keen prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Justice Department secures settlement against DeKalb County, Georgia, after officials terminated a sexual harassment complainantRead the Press Release
ATLANTA - The Department of Justice announced it has reached a settlement agreement with DeKalb County, Georgia, that will resolve its lawsuit alleging the county violated Title VII of the Civil Rights Act of 1964 when it retaliated against former administrative assistant Cemetra Brooks, first by extending her probationary period and then by terminating her employment during the extended period, because she made a sexual harassment complaint. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, national origin, sex and religion and prohibits retaliation against employees for opposing employment practices that are discriminatory under Title VII.
“Discrimination in the workplace is toxic,” said U.S. Attorney Ryan K. Buchanan. “An employee who faces discrimination in the workplace should be able to freely exercise their rights under Title VII without fear of retaliation.”
“Probationary employees are especially vulnerable to discrimination as they have fewer employment protections than permanent employees and are often reluctant to file a complaint since it could easily cost them their jobs,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This settlement agreement underscores that Title VII’s protections apply equally to probationary employees. The Civil Rights Division stands ready to vigorously enforce the law when employees who complain about sexual harassment are subject to retaliation.”
According to the Justice Department’s complaint filed in the U.S. District Court for the Northern District of Georgia, during her initial six-month probation, Brooks filed a sexual harassment complaint with DeKalb County alleging her supervisor, the deputy director of the county’s Facilities Management Department, subjected her to unwelcome sexual advances, comments and conduct. these claims were later investigated and substantiated by the county. The United States’ lawsuit further alleges that, just one month after Brooks complained, the deputy director’s supervisor, the director, contacted human resources asking for information from the county’s still-active investigation of Brooks’ complaint that would help him fire Brooks while she remained on probation. According to the lawsuit, on advice of a high-level county official, the director extended Brooks’ probation by three months instead. However, near the end of her extended probation, the director fired Brooks without giving her any reason.
Under the settlement agreement, submitted for court entry and approval, the county will pay Brooks $190,000 for lost wages and compensatory damages. The agreement also requires the county to develop, and submit to the Justice Department for approval, anti-discrimination and anti-retaliation policies and to provide the supervisors and managers in its Facilities Management Department with training on those policies and on the types of workplace conduct that constitute unlawful employment practices under Title VII.
The Atlanta District Office of the Equal Employment Opportunity Commission (EEOC) investigated and attempted to resolve Brooks’ charge of discrimination before referring it to the Department of Justice as an enforcement action. More information about the EEOC’s jurisdiction is available on its website at www.eeoc.gov.
Assistant U.S. Attorney Aileen Bell-Hughes, Civil Rights Enforcement Coordinator, handled this matter for the U.S. Attorney’s Office for the Northern District of Georgia.
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 www.justice.gov/crt/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.
U.S. Attorney's Office and Fulton County District Attorney launch Summer Initiative to support youth as part of violence-prevention strategyRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia and the Fulton County District Attorney’s Office launched the second annual Project Safe Neighborhoods (PSN) Credible Messenger Youth Summer Violence Intervention (the “Summer Mentorship Program”) at the Atlanta Police Foundation’s At-Promise Center.
“Last summer’s intensive mentoring efforts yielded a success rate of nearly 90%,” said U.S. Attorney Ryan K. Buchanan. “This type of structured and deliberate engagement is proven to decrease recidivism and bolsters community safety. We are pleased to partner with community leaders, law enforcement and families to support these youth, get them connected to college and career resources, and keep them actively engaged for the summer.”
“Credible Messenger makes Fulton County safer. By matching at-risk youth with mentors who can help them avoid a life trapped in the criminal justice system, we save lives that would be lost to crime or to incarceration. Our partnership with the U.S. Attorney and the U.S Department of Justice to bring this program to Fulton County is a great example of what partnership and cooperation can do for the citizens we serve.”
“The successful transition of youth into their community is one of our top priorities,” said Tyrone Oliver, Commissioner of the Department of Juvenile Justice. “Our partnership with the Northern District of Georgia’s Project Safe Neighborhoods has demonstrated improved outcomes for justice-involved youth, including reducing recidivism.”
The Summer Mentorship Program will engage up to 25 youth between the ages of 14 and 17 who are on juvenile or adult probation, in a 10-week intensive mentorship initiative. Through 10 hours of mentor engagement per week, youth will participate in support forums, career readiness training, community engagement and evidenced-based, cognitive-behavioral, life-skills sessions utilizing the Forward Thinking and Project EGRESS Curriculum. Youth who satisfy the program’s requirements will receive a weekly stipend, made possible by a generous donation from CHRIS 180, formerly known as CHRIS Kids.
This initiative is being implemented by a team of Southeast Credible Messengers, in connection with the PSN Prevention and Reentry strategy of the U.S. Attorney’s Office. Southeast Credible Messengers are a Community-Based Collaboration between organizations and individuals working together to achieve common goals: positive youth and young adult mentorship, recidivism reduction, public safety, and family & community engagement. The Southeast Credible Messenger team for this initiative includes the Offender Alumni Association, Inc. (OAA), Freedom is a Choice, Inc., EGRESS Consultants & Services, LLC., and Mothers Against Gang Violence, Inc.
We would also like to thank leadership from the Georgia Department of Juvenile Justice, Office of Reentry Services, Fulton County Juvenile Court and the local business community for their continued partnership and support of the summer program.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office secures agreement in race discrimination lawsuit involving Atlanta-based property owners and management companyRead the Press Release
ATLANTA - The U.S. Attorney’s Office announced that the U.S. District Court for the Northern District of Georgia has approved a consent decree resolving the department’s Fair Housing Act lawsuit alleging race discrimination in housing by the owners and manager of two rental properties in Cedartown, Georgia. The defendants are Crimson Management LLC; Benefield Housing Partnership (doing business as Cedartown Commons); and Cedartown Housing Associates (doing business as Cedarwood Village).
“Access to housing opportunities remains unequal for African-American housing applicants all too often,” said U.S. Attorney Ryan K. Buchanan. “My office will continue to devote resources to eradicate this injustice and we will continue to hold housing providers accountable for racial discrimination in violation of the Fair Housing Act.”
“It is unacceptable that race discrimination in housing persists in our nation more than a half-century after President Johnson signed the Fair Housing Act into law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This Justice Department is committed to vigorously enforcing our civil rights laws by holding housing providers responsible when they perpetuate racial segregation or otherwise engage in prohibited discrimination.”
The lawsuit, filed in May 2020, alleged that the defendants steered Black housing applicants who are elderly or have a disability away from Cedarwood Village, a predominantly white housing complex, to Cedartown Commons, a housing complex that is inferior in appearance, location and amenities to Cedarwood Village. Most residents of Cedartown Commons are Black. The lawsuit further alleged that the defendants subjected Black residents who are elderly or have a disability to less favorable rental terms, conditions and privileges as compared to similarly situated white tenants. The defendants’ policies allegedly perpetuated segregation at the two properties.
This case was jointly litigated by attorneys of the U.S. Attorney’s Office for the Northern District of Georgia and the Justice Department’s Civil Rights Division. Under the court-approved decree, the defendants are required to pay $83,000 in damages to three former tenants who were allegedly harmed as a result of the defendants’ racial steering; pay a civil penalty to the United States; implement nondiscriminatory policies and procedures; complete fair-housing training; and submit periodic reports to the Justice Department.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online at https://civilrights.justice.gov/. Individuals may also report such discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online at https://www.hud.gov/fairhousing/fileacomplaint.
Assistant U.S. Attorney Aileen Bell-Hughes, Civil Rights Enforcement Coordinator, handled this matter for the U.S. Attorney’s Office for the Northern District of Georgia.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gang leader convicted of federal charges in connection with nightclub shooting and subsequent murder of 17-year-old witnessRead the Press Release
ATLANTA, Ga. - A federal jury found Maurice Antonio Kent 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.
“The 135 Pirus gang is a violent criminal organization whose members committed a multitude of crimes, including the horrific execution of a 17-year-old witness,” said U.S. Attorney Ryan K. Buchanan. “Kent and his fellow gang members demonstrated an absolute disregard for human life and have now been brought to justice as a result of the strong partnership between federal and local law enforcement. This case, which culminated in a jury verdict convicting Kent of all charges, reflects our office’s resolve to tirelessly investigate and prosecute gangs who drive violence in our communities.”
“The brutal and tragic violence perpetrated by Kent and his fellow gang members is completely shocking and deplorable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “With this conviction, Kent will no longer be able to commit senseless violence and homicidal acts on our streets. The FBI remains unwavering in our resolve to work with our partners to ensure that individuals like Kent are held accountable for their crimes and to eliminate gang violence from our communities.”
“Gang and organized crime have no place in our community,” said Brookhaven Police Deputy Chief Brandon Gurley. “Organized crime knows no boundaries, and neither should we. The collaboration with the U.S. Attorney’s Office was instrumental to ensure that Kent and his associates were all held accountable for the violent crimes they committed in our city and throughout Georgia.”
“In reference to this investigation, I’d like to credit the Violent Repeat Offender Program (VRO) which is a program conducted by the U.S. Attorney’s Office for the Northern District of Georgia and has been in place for many years,” said Cartersville Police Chief Frank McCann. “The VRO program puts federal, state, and local law enforcement officers together monthly to take violent repeat offenders off our streets. Positive results when we all work together!”
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. Kent was a gang leader in northwest Georgia with leadership authority over members in the vicinity of Cartersville and Rome, Georgia. The 135 Pirus are governed by a set of rules, which, among other commands, prohibit its members from cooperating with law enforcement.
In the early morning hours of May 13, 2017, an argument occurred outside a Brookhaven 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 believed he was “snitching.” Two days later, 135 Pirus gang members devised a plan to lure the teenager to Bartow County, Georgia, where they shot and killed him with Kent’s gun, leaving the boy’s body on a rural road.
The jury also heard evidence that eight months prior to the nightclub shooting, in September 2016, 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.
In addition to Maurice Antonio Kent a.k.a., “Savage Duze,” 32, of Cartersville, Georgia, a number of other 135 Pirus gang members and associates were previously convicted in this case, including:
- Christopher Nwanjoku, a.k.a. “Problem,” 30, a 135 Pirus leader from Lawrenceville, Georgia, was convicted of RICO Conspiracy;
- Jamel Dupree Hughes, a.k.a. “Savage,” 27, a 135 Pirus member from Atlanta, Georgia, was convicted of 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,” 29, a 135 Pirus member from Cartersville, Georgia, was convicted of murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in death;
- Jennifer Foutz, a.k.a. “Rose,” 30, a 135 Pirus member from Acworth, Georgia, was convicted of murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in death; and
- Michael Kent, a.k.a. “Wikked,” 32, a 135 Pirus associate from Atlanta, Georgia, who is Maurice Antonio Kent’s twin brother, was convicted of RICO Conspiracy.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. The sentencing hearing for Kent and the other defendants will be scheduled at a later date.
This case is being 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 the office’s Project Safe Neighborhoods (PSN) Co-coordinator, and Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime 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 Georgia Insurance Commissioner John Oxendine charged with health care fraud and money laundering schemeRead the Press Release
ATLANTA - John W. Oxendine has been arraigned on federal charges of conspiracy to commit health care fraud and conspiracy to commit money laundering. Oxendine was indicted by a federal grand jury on May 17, 2022.
The indictment alleges that Oxendine conspired to obtain kickbacks for unnecessary genetic and toxicology lab tests, and used his insurance business to hide those kickbacks,” said U.S. Attorney Ryan K. Buchanan. “Patients go to their healthcare provider for treatment with the expectation that their treatment or test is necessary, not a scam for fraud.”
“These allegations describe someone who was more motivated by personal greed than their duty to provide appropriate and necessary care to patients,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI, along with our partners, will continue to investigate healthcare fraud to ensure these individuals who willingly defraud the American people are brought to justice.”
“Providers who exploit their positions as health care professionals for financial gain undermine patient trust and waste taxpayer dollars,” said Special Agent in Charge Tamala E. Miles, with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work tirelessly alongside our law enforcement partners to investigate any bad actors who attempt to defraud federal health care programs.”
“Health care providers who engage in kickback schemes to maximize profits violate the integrity of the Department of Defense health care system and betray the trust of their patients,” stated Special Agent in Charge Cynthia A. Bruce, Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “Trusted healthcare professionals whose greed overcomes their moral obligations to those seeking medical treatment have no place in the DoD healthcare community and will be aggressively pursued for prosecution.”According to U.S. Attorney Buchanan, the charges, and other information presented in court: John W. Oxendine allegedly conspired with Dr. Jeffrey Gallups and others to submit fraudulent insurance claims for medically unnecessary Pharmacogenetic, Molecular Genetic, and Toxicology testing. Physicians associated with Jeffrey Gallups’s ENT practice were pressured to order medically unnecessary Pharmacogenetic, Molecular Genetic, and Toxicology testing from a testing lab in Texas. As part of the health care fraud scheme, the lab company agreed to pay Oxendine and Gallups a kickback of 50% of the net profit for eligible specimens submitted by Gallups’s practice to the lab company for the testing.
In total, the lab company submitted claims seeking over $2,500,000 in payment for laboratory tests ordered by Gallups’s practice. The insurance companies paid over $600,000 to the lab company as a result of these claims. The lab company then paid $260,000 in kickbacks through Oxendine's insurance services business. Oxendine used a portion of the kickback money to pay debts on behalf of Gallups, paying a $150,000 charitable contribution and $70,000 in attorney’s fees.
This case is related to United States v. Gallups, 1:21-cr-00370-SCJ, in which Dr. Jeffrey Gallups pleaded guilty to health care fraud.
John W. Oxendine, 60, of Duluth, Georgia was indicted on May 17, 2022. 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, Department of Health and Human Services Office of the Inspector General, and the Defense Criminal Investigative Service.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, 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.
Federal inmate and Alabama correctional officer sentenced for attempting to smuggle methamphetamine into federal prisonRead the Press Release
ATLANTA – Julius Stoudemire and Jennifer Deramus have each been sentenced after their convictions for attempting to smuggle methamphetamine into United States Penitentiary Atlanta (“USP Atlanta”), a federal prison.
“Introducing contraband into a federal prison endangers the safety and security of inmates, guards, and visitors alike,” said U.S. Attorney Ryan K. Buchanan. “Jennifer Deramus, a correctional officer, was uniquely positioned to know those dangers and now faces significant prison time of her own.”
“Maintaining the secure environment of federal correctional facilities is key to the safety of staff, inmates, and the effort to deter future criminal conduct”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Thanks to the vigilant guards at USP Atlanta, Stoudemire and Deramus will be held accountable for their blatant criminal activity.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In June 2019, Jennifer Deramus was a long-time correctional officer at a county jail in Prattville, Alabama. Her fiancée, Julius Stoudemire, was an inmate at USP Atlanta. On June 2, 2019, Deramus visited Stoudemire at USP Atlanta. After she went to the visitors’ restroom in the general population visiting room, she carried a cylindrical package to her seat across from Stoudemire. A guard watching the visitation area from a surveillance camera saw Deramus and Stoudemire acting unusually and sent another guard to investigate. Guards confiscated the package, and subsequent laboratory testing confirmed that the package contained methamphetamine. Deramus later made false statements to an FBI Agent about the events of that day.
Jennifer Deramus, 53, of Prattville, Alabama, was sentenced by U.S. District Judge Steven D. Grimberg to five years in prison, to be followed by four years of supervised release. On November 15, 2021, she was convicted by a jury of conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute a controlled substance, attempting to provide a prohibited object to a federal inmate, and aiding and abetting a federal inmate’s attempt to obtain a prohibited item.
Julius Stoudemire, 45, of Prattville, Alabama, was sentenced by Judge Grimberg to nine years and four months in prison, to be followed by three years of supervised release. On November 5, 2021, Stoudemire pleaded guilty to one count of attempting to obtain a prohibited object as a federal inmate.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Tal C. Chaiken and Phyllis Clerk 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.
Mastermind of $11.1 million Paycheck Protection Program fraud scheme sentenced to fifteen yearsRead the Press Release
ATLANTA – Darrell Thomas has been sentenced after pleading guilty to conspiracy to commit bank fraud and wire fraud and to money laundering for masterminding a scheme to obtain 14 fraudulent loans totaling approximately $11.1 million from the Paycheck Protection Program (“PPP”). To date, a total of twenty-three individuals have been charged in connection with the fraudulent scheme.
“Thomas took advantage of pandemic relief funds intended for struggling small businesses to line his own pockets,” said U.S. Attorney Ryan K Buchanan. “Every dollar he took diverted funds from legitimate business owners suffering the effects of the COVID-19 pandemic who desperately needed assistance to pay their employees. The sentence imposed today shows that fraud does not pay.”
“Thomas orchestrated a massive fraudulent scheme to greedily line his pockets with stolen government funds that were intended to provide relief to small businesses and their employees during the COVID-19 Pandemic”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully, Thomas enjoyed his short-lived fun with all the luxury items purchased with stolen tax payer money, as he will now pay for his crimes with a lengthy prison sentence.”
“The charges and last week’s sentencing show IRS Criminal Investigation’s commitment to defend the integrity of the pandemic relief programs,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “We will continue to contribute our financial expertise to identify fraud, trace the funds, and bring the criminals to justice.”
“These results demonstrate the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those who attempt to corruptly interfere with Federal tax administration,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the work of the U.S. Attorney's Office and our law enforcement partners to ensure this criminal activity is held to account.”
“OIG continues to bring to justice those persons who would seek to exploit federal programs for unlawful personal gain,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
According to U.S. Attorney Buchanan, the second superseding indictment, and other information presented in court: From April 2020 through August 2020, Darrell Thomas orchestrated a PPP loan scheme involving at least fourteen fraudulent loans. Each of the fourteen businesses obtained a PPP loan between $700,000 and $850,000, for a total of over $11.1 million. The loan applications certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents and forms was true and accurate in all material respects.
The PPP loan applications reported that each business had between 59 and 69 employees and approximately $295,000 to $342,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses. In reality, however, none of the businesses had employees or payroll expenses. The Form 941s, bank statements, and W2 payroll spreadsheets had all been fabricated. Indeed, some of the supporting documents the businesses submitted were substantively identical, including identical Form 941s and identical bank statements.
After the PPP loan proceeds were deposited into the businesses’ accounts, the businesses transferred more than $5.5 million of the PPP loan proceeds into accounts controlled by Darrell Thomas, purportedly for rental payments and payroll. However, none of the businesses had any legitimate business with any of the businesses or accounts to which they sent the proceeds. Based on the investigation, none of the companies allegedly engaged in any business-related transactions or used the PPP loan proceeds for any authorized purposes. Instead, the businesses used the funds for various personal expenses. In connection with the investigation, the United States seized more than $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items.
Darrell Thomas, 36, of Johns Creek, Georgia, was sentenced by U.S. District Judge J. P. Boulee to fifteen years in prison, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $13,206,752.10. On June 16, 2021, he pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering. As part of his guilty plea, Thomas admitted his participation in fraudulent conduct totaling more than $14.7 million, including approximately $11.1 million in fraudulent PPP loans, more than $1.15 million in fraudulent Economic Injury Disaster Loans, and more than $2.4 million in fraudulent automobile loans.
He also agreed to forfeit various assets, including more than $2.1 million in seized funds, three luxury vehicles – a 2018 Mercedes-Benz S-Class S65AMG, a 2018 Land Rover Range Rover, and a 2017 Acura NSX – and several items of jewelry, including a gold Rolex.
To date, a total of twenty-three individuals have been charged in connection with the fraudulent scheme. Eleven other individuals have pleaded guilty and six other individuals have been sentenced, while the remaining eleven individuals’ charges remain pending.
The following defendants have either pleaded guilty based on their roles in the fraudulent scheme or have been sentenced to date:
- Charles Petty a/k/a Charles Knight, 49, of Stone Mountain, Georgia, pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc. On February 23, 2022, Judge Boulee sentenced Petty to three years and ten months’ imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $830,417 in restitution and a special assessment of $100.
- Khalil Gibran Green, Sr., 47, of Cleveland, Ohio, pleaded guilty on September 1, 2020, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Impact Creations LLC. On January 14, 2021, Judge Boulee sentenced Green to three years and five months’ imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $830,000 in restitution, forfeiture of $157,035.71, and a special assessment of $100.
- Bern Benoit, 45, of Burbank, California, pleaded guilty on March 11, 2021, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Transportation Management Services Inc. On September 8, 2021, Judge Boulee sentenced Benoit to two years and three months’ imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $1,105,217 in restitution, forfeiture of $461,433.36, and a special assessment of $100.
- Charmaine Redding, 28, of Macomb, Michigan, pleaded guilty on July 14, 2021, to one count of conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc. On October 21, 2021, Judge Boulee sentenced Redding to two years and three months’ imprisonment and three years of supervised release, and Judge Boulee ordered her to pay $1,159,138.31 in restitution and a special assessment of $100.
- Charles Hill IV, 46, of Norcross, Georgia, pleaded guilty on September 29, 2021, to one count of conspiracy to commit wire fraud in connection with the loan obtained by his business, Infinite Education Services Inc. On January 12, 2022, Judge Boulee sentenced Hill to five years’ probation, with the first twenty-seven months to be served on home detention. Judge Boulee ordered him to pay $1,004,805 in restitution and a special assessment of $100.
- Andre Lee Gaines, 67, of Dallas, Georgia, pleaded guilty on June 17, 2021, to one count of making false statements to the FBI in connection with the loan obtained by his business, Gaines Reservation and Travel. On October 5, 2021, Judge Boulee sentenced Gaines to five years of probation and ordered him to pay restitution of $806,710 and a special assessment of $100.
- Denesseria Slaton, 53, of McDonough, Georgia, pleaded guilty on June 16, 2021, to one count of conspiracy to commit bank fraud wire fraud in connection with the loan obtained by Transportation Management Services Inc. Slaton’s sentencing is set for June 21, 2022.
- Jesika Blakely, 34, of Atlanta, Georgia, pleaded guilty on March 15, 2022, to one count of conspiracy to commit money laundering in connection with her involvement in Thomas’s scheme. Blakely’s sentencing is set for June 29, 2022.
- Amanda Christian, 34, of Blythewood, South Carolina, pleaded guilty on March 23, 2022, to one count of conspiracy to commit wire fraud in connection with the loan obtained by Mickies Auto and Tire LLC. Christian’s sentencing is set for June 30, 2022.
- Derek Parker, 57, of Rochester Hills, Michigan, pleaded guilty on April 14, 2022, to one count of conspiracy to commit wire fraud in connection with the loan obtained by his business, D Parker Holdings Inc. Parker’s sentencing is set for July 28, 2022.
- Rick McDuffie, 51, of Little Rock, South Carolina, pleaded guilty on April 27, 2022, to one count of conspiracy to commit wire fraud in connection with the loan obtained by his business, Mickies Auto and Tire LLC. McDuffie’s sentencing is set for August 23, 2022.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General.
Assistant U.S. Attorneys Tal Chaiken and Nathan Kitchens of the Northern District of Georgia and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section 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.
Father and son plead guilty to attempted trafficking of guns to MexicoRead the Press Release
GAINESVILLE, Ga. - Othon Marban, Sr., and Othon Marban, Jr., have pleaded guilty to conspiracy to transfer firearms to an out-of-state resident and making false statements to a federally licensed firearms dealer, in connection with their attempted trafficking of approximately 50 guns to Mexico.
“The defendants’ thwarted attempt to traffic guns to Mexico highlights the determination of our office and our law enforcement partners to stop the illegal gun trade both within and outside our district,” said U.S. Attorney Ryan K. Buchanan. “I commend our federal, state and local law enforcement for remaining vigilant and protecting our communities.”
“Stopping the trafficking of illegal guns saves lives and reduces crime, I’m pleased that we were able to stop this scheme to illegally export guns to Mexico,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this highlight the great results that can be achieved when agencies work together to protect our communities here and abroad.”
“This case is a perfect example of how our agencies work in concert to keep our communities safe,” said Hall County Sheriff Gerald Couch. “I applaud our deputies for being alert as they were patrolling I-985, which is the busiest primary corridor in our county. They saw a problem with a basic traffic violation and pulled over the offender. As a result, we were able to get dozens of illegal weapons off our streets. I’m proud of everyone involved.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On the morning of December 3, 2021, Hall County Sheriff’s Office deputies stopped a truck travelling on I-985 South for traffic violations. Investigators recovered 51 guns wrapped in cellophane during a search of the vehicle. Marban, Sr. and Marban, Jr. admitted that they were en route to Mexico with the firearms. Further investigation of the defendants revealed that they previously purchased additional guns and that they traveled to Mexico earlier in 2021.
Othon Marban, Sr., 56, of Gainesville, Georgia, pleaded guilty on May 9, 2022, and Othon Marban, Jr., 20, also of Gainesville, Georgia, pleaded guilty on May 16, 2022. Sentencing has not yet been scheduled.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Hall County Sheriff’s Office.
Assistant U.S. Attorney Jennifer Keen is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] 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.