Northern District of Georgia
Press releases recorded for this federal judicial district.
Idaho man charged with hacking into the computers of the City of Newnan and metro-Atlanta medical clinicsRead the Press Release
NEWNAN, Ga. - Robert Purbeck, of Meridian, Idaho, made his initial appearance before a U.S. Magistrate Judge in Boise, Idaho. Purbeck was indicted in the Northern District of Georgia on March 2, 2021 for computer fraud and abuse, access device fraud, and wire fraud.
“This alleged cyber-criminal and extortionist targeted the City of Newnan as well as medical clinics in our District, stealing over 60,000 records containing personal information of our citizens,” said Acting U.S. Attorney Kurt R. Erskine. “He then allegedly attempted to extort a Florida orthodontist, threatening to sell the social security number of his minor child unless the orthodontist submitted to a payment demand. Now, this defendant must answer for his alleged crimes in the Northern District of Georgia.”
“The charges against Purbeck highlight the need to remain vigilant in our cybersecurity efforts,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The theft of intellectual property to be used to extort citizens is a very serious crime and one the FBI will diligently pursue, no matter if you are hiding behind a computer screen.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Between June 23, 2017 and April 28, 2018, Purbeck allegedly purchased, on a criminal marketplace, the username and passwords to computer servers belonging to multiple Georgia victims. He then allegedly used these credentials to access the victims’ computers and stole sensitive personally identifiable information, including:
- Medical records and other documents that contained names, addresses, birth dates, and social security numbers of over 43,000 people from a Griffin, Georgia, medical clinic;
- Police reports and other documents containing personal information of over 14,000 people from the City of Newnan; and
Personal information of over 7,000 people from a Locust Grove, Georgia, medical practice.
On June 25, 2018, Purbeck allegedly hacked into the computers of an orthodontist in Florida and stole medical records of over 1,800 people. Purbeck then allegedly threatened, harassed, and attempted to extort the orthodontist, demanding a ransom payment in Bitcoin. Purbeck also allegedly threatened to disclose and sell the stolen patient and personal information unless the orthodontist paid the ransom demand. Purbeck allegedly identified the name and social security number of the orthodontist’s minor child and threatened to disclose and sell their personal information as well. During the course of this attempted extortion, Purbeck allegedly sent numerous harassing e-mails and text messages to the orthodontist and his patients.
Robert Purbeck, a/k/a Lifelock, a/k/a Studmaster, 41, of Meridian, Idaho, was indicted by a federal grand jury in the Northern District of Georgia on March 2, 2021. 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, Atlanta Field Office, with valuable assistance provided by the FBI Boise Resident Agency.
Assistant U.S. Attorneys Michael Herskowitz, Chief of the Cyber and Intellectual Property Crimes Section and Nathan Kitchens, Chief of the Public Integrity and Special Matters Section, and the U.S. Department of Justice Computer Crimes and Intellectual Property Section (CCIPS) are prosecuting the case. The U.S. Attorney’s Office for the District of Idaho has also provided valuable assistance in this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Defendants charged with stealing millions of dollars from the Paycheck Protection Program (PPP)Read the Press Release
ATLANTA – Lakisha Swope and Treisha Pearson have been arraigned on charges of conspiracy, wire fraud, bank fraud, and money laundering after allegedly participating in a scheme to steal over $3.5 million from the Paycheck Protection Program (PPP).
“Swope and Pearson allegedly stole millions of dollars destined to help small business owners,” said Acting U.S. Attorney Kurt R. Erskine. “PPP dollars often provide a bridge for businesses suffering from the effects of the pandemic. However, PPP funds are not unlimited, and those who seek to enrich themselves fraudulently through this program will be prosecuted.”
“These two defendants are accused of misdirecting federal emergency assistance from businesses who need it to stay afloat, to their own pockets, during a pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Their alleged greed affects every tax paying citizen and the FBI will make every effort to make sure funds provided by programs like PPP are used as intended.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Lakisha Swope and Treisha Pearson, together with others, allegedly submitted false PPP applications for a number of entities claiming over $5 million in loans. These PPP applications allegedly contained materially false information such as false representations regarding the applicant entities’ total number of employees and average monthly payroll.
As a result of these false statements, lenders issued over $3.5 million in PPP loans to these various entities. Swope and Pearson, along with other members of the conspiracy, then allegedly used the fraudulently obtained funds for unauthorized expenditures including luxury clothing, restaurants, personal rent, hotels, and vacation rentals.
Lakisha Swope, 43, of Alpharetta, Georgia and Treisha Pearson, 49, of Brookhaven, Georgia, face charges of conspiracy, wire fraud, bank fraud, and money laundering. Both defendants were indicted on February 24, 2021.
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 defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia couple sentenced for importing and distributing male enhancement products and counterfeit goods from China as well as naturalization fraudRead the Press Release
ROME, Ga. - Irfanali Momin and Shiba I. Momin a/k/a Saguftabanu Momin, husband and wife, have been sentenced to prison for naturalization fraud and conspiring to illegally import and distribute misbranded drug products from China and traffic counterfeit goods. The Momins have also been criminally denaturalized as result of their convictions for naturalization fraud.
“The defendants built their business and earned their citizenship through fraud,” said Acting U.S. Attorney Kurt R. Erskine. “And, by illegally importing and distributing products containing drugs that can only be obtained in the United States with a prescription written by a licensed medical professional, the Momins put profit over public safety.”
“This announcement demonstrates that those who subvert the regulatory functions of the FDA by distributing misbranded drugs containing undeclared prescription drug ingredients and counterfeit tobacco products will be held accountable for their actions,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to bring to justice those who place American consumers at risk by selling these illegal and potentially dangerous products.”
“The Momins lived a life of lies in this country from their fraudulent citizenship to their business of selling illegal products to customers whose health was threatened by the use of those products,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Now they will pay for their deception in prison time and loss of their citizenship. The FBI is committed to working with our federal partners to protect our citizens against anyone who would choose to do them harm.”
“The Momins will now face the consequences of their lies and schemes to illegally gain citizenship and import and sell misbranded pharmaceuticals. Their actions not only placed unsuspecting purchasers at risk, they also threatened the integrity of the US immigration system,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Homeland Security Investigations and its law enforcement partners will aggressively pursue those that seek to profit from these fraudulent and dangerous activities.”According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Between August 2014 and November 2018, the Momins ordered and sold male enhancement products from China marketed under various names. These products contained sildenafil, the active pharmaceutical ingredient in Viagra, and/or tadalafil, the active pharmaceutical ingredient in Cialis. Both Viagra and Cialis can be obtained in the U.S. only with a prescription from a doctor.
The Momins had in fact received more than a dozen notices from the FDA advising them to not sell these products. The FDA has also warned consumers for more than half-a-decade to not purchase or use such “all natural” sexual products because they could have serious side effects, especially in men who are taking nitrates and suffer from diabetes, high blood pressure, high cholesterol, or heart disease.
In order to evade import restrictions, the Momins’ China-based suppliers mislabeled the boxes containing the illegal pills to make it appear that the boxes contained items that can be legally imported into the U.S., such as beauty products, health products, and health supplies. The Momins admitted to selling between $550,000 and $1.5 million in illegal drug products over the course of the conspiracy. They also sold various counterfeit goods from their warehouse in Dalton, Georgia, including counterfeit designer watches, headphones, e-cigarette devices, and tobacco rolling papers.
Earlier, in October 2013, the Momins both applied to become naturalized U.S. citizens. On his application form, Irfanali Momin falsely stated that he had never been married before and did not disclose that he had in fact been married to two women at the same time. During an interview with USCIS in June 2014, Irfanali Momin made the same false declarations. Based upon his false statements, Irfanali Momin became a naturalized U.S. citizen on August 16, 2014. On her application form, Shiba I. Momin a/k/a Saguftabanu Momin, falsely stated that she did not go by any other names when in fact she knew that her actual name was Shiba I. Momin, but she was only passing as Saguftabanu Momin. The investigation had revealed that Shiba I. Momin had originally obtained a Georgia’s driver’s license in her real name only to later obtain a fraudulent license in the name Saguftabanu Momin—the name she used to apply for and fraudulently receive U.S. citizenship on August 1, 2014. If USCIS had been aware of these facts, it would have denied her citizenship
On February 12, 2021, Irfanali Momin, 48, and Shiba I. Momin a/k/a Saguftabanu Momin, 42, both of Dahlonega, Georgia, were each sentenced by U.S. District Judge Steve C. Jones to one year, six months in prison to be followed by three years of supervised release and ordered to pay a special assessment of $200. They were both convicted on September 23, 2020 after pleading guilty to a criminal information. On February 23, 2021, Judge Jones issued orders revoking their U.S. citizenship.
This case was investigated by the Food and Drug Administration, Office of Criminal Investigations, Homeland Security Investigations, and the Federal Bureau of Investigation.
Assistant U.S. Attorney Alex R. Sistla 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.
Local, state and federal prosecutors launch Georgia Cyber Fraud Task ForceRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia has joined forces with Metro-Atlanta District Attorneys, the Office of the Attorney General, the FBI Atlanta Field Office, U.S. Secret Service, state, and local law enforcement to combat the criminal movement of cyber fraud proceeds through banks in the Atlanta area by employing Business Email Compromise (BEC) fraud schemes.
“We are grateful for the participation and commitment of our metro District Attorneys to come together in a coordinated effort to address this criminal enterprise,” said Acting U.S. Attorney Kurt Erskine. “The money mules that facilitate the transfer of fraud proceeds make these cyber fraud crimes lucrative. Interrupting that flow of money is an important part of disrupting the criminal enterprise. Working together creates a strong network of prosecutors and law enforcement, across counties, who are addressing the problem through criminal prosecution and community outreach. It is this kind of intelligence and resource sharing that make our law enforcement efforts more effective and our businesses and citizens safer.”
“Those perpetrating BEC scams can target anyone who relies on email for both personal and professional communications,” said Georgia Attorney General Chris Carr. “In fact, in recent years, the FBI reported BEC crimes account for 40 percent of all cybercrime losses. Our Prosecution Division is joining federal, state and local partners to educate Georgia citizens and businesses about the telltale signs and stop the criminals facilitating this crime.”
“As District Attorney I’m committed to protecting the citizens of Clayton County from any and all crimes. The advancements in technology have created new ways to victimize the citizens of the State of Georgia. I look forward to working with the Georgia Cyber Fraud Task Force and the other agency partners,” said Clayton County District Attorney Tasha Mosley.
“Our Office is pleased to join the Georgia Cyber Fraud Task Force in the fight against cyber fraud. Our small businesses and senior citizens have been victimized by cyber fraud crimes at home and abroad. By focusing on individuals who move those stolen funds here in Georgia together we can make a real difference in this fight. Prevention is most important. Anyone who uses email and/or cellular communication is susceptible to cyber fraud. Be suspicious. Verify all such requests with a phone call. Understand that once the money is sent, it's gone,” said Cobb County District Attorney Flynn D. Broady Jr.
“Cyber fraud knows no bounds. By working with our local, state, and federal partners, we can curtail the fraud that harms businesses and individuals- often elder persons-who are unwittingly caught up in these fraudulent schemes. The DeKalb County District Attorney’s Office welcomes the opportunity to join forces with law enforcement agencies across the state and across the country,” said DeKalb County District Attorney Sherry Boston.
"I promised the citizens of Fulton County that I would modernize the efforts of our office to protect our community from criminal enterprises. This opportunity to join with the Acting U.S. Attorney and fellow metro Atlanta District Attorneys to fight BEC fraud schemes is an important part of that process,” said Fulton County District Attorney Fani T. Willis.
“Financial cyber fraud is a crime that our office takes seriously. It is not a victim-less crime and must be prosecuted at every turn! Our District is thankful for the Cyber Fraud Task Force and the opportunity to continue working to curb this type of crime,” said Patsy Austin-Gatson, District Attorney, Gwinnett Judicial Circuit.
“The FBI makes it a top priority to investigate these cyber-crimes that have affected thousands of victims, many of them elderly citizens, small businesses, and people whose entire livelihoods have been wiped out by scammers,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “But it takes more than one law enforcement agency. Together with our federal, state, and local partners we are taking on this problem by educating our community and investigating and prosecuting criminals to make it less lucrative to commit these crimes.”
“We are proud to join with our law enforcement partners to collaboratively bring to justice those who prey on our communities,” said Special Agent in Charge Steven Baisel, U.S. Secret Service Atlanta Field Office. “The damage these schemes cause to people is often devastating. Any effort we can make to turn the tide of these crimes is worthwhile.”
“With advancements in technology, now more than ever, Georgians and Georgia businesses are highly susceptible to online fraud. By partnering with the members of this task force, the GBI plans to use the expertise we have in cyber investigations to help combat these fraudulent schemes,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
“I’m confident that the work of the Georgia Cyber Fraud Task Force will change the behavior of criminals and unmask those who hide behind computers and technology to commit such heinous crimes. The collaborative efforts among law enforcement partners will put the pressure on scam artists and make them think twice before committing any type of fraud schemes in the metro Atlanta area,” said Chief Rodney Bryant, Atlanta Police Department.
“Cyber fraud is a daily threat that continues to grow at an alarming rate with Business Email Compromise (BEC) schemes costing individuals and corporations millions of dollars each year. We are excited to be a part of this Cyber Fraud Task Force with dedicated investigators and prosecutors from the local, State, and Federal levels. Gathering the best fraud investigators and prosecutors in one Task Force is the innovative formula needed to combat these sophisticated criminal networks that operate without jurisdictional boundaries,” said Chief Kenneth DeSimone, Sandy Springs Police Department.
“Cyber criminals are not constrained by geographical boundaries when they conduct their fraudulent schemes against our communities. The Smyrna Police Department continually and actively fosters relationships with our local, state, and federal law enforcement partners to actively seek out and apprehend these criminals no matter where they are,” said Chief Robert Harvey, Smyrna Police Department.
Business Email Compromises exploit the fact that so many of us rely on email to conduct business—both personal and professional. In a BEC scam, criminals send an email message that appears to come from a known source making a legitimate request, as in the examples below:
- A vendor a company regularly uses sends an invoice with an updated bank account number.
- A company CEO asks their assistant to purchase dozens of gift cards to send out as employee rewards, and then asks for the serial numbers so they can email them out right away.
A homebuyer receives a message from their title company with instructions on how to wire the down payment.
In scams like these, the unsuspecting victim sends thousands—or even hundreds of thousands—of dollars to the criminal.
Over the last five years, BEC crimes have evolved into the predominant cyber threat businesses face.
In 2020, the FBI IC3 – the primary law enforcement arm to combat BEC crimes – reported 1,303 incidents with $462,967,963.72 in losses and $380,211,432.04 reported frozen by financial partners (yielding a 79 percent success rate of funds frozen).
From global reporting, comprised of multiple law enforcement and financial partners, between 2016 and 2019, businesses have lost at least $26 billion as a result of BEC scams. Based on the most recent FBI IC3 report, losses from BEC attacks grew another 6 percent in 2020—accounting for 45 percent of all cybercrime losses over the course of the year.
Surprisingly, a quarter of all BEC attackers had a home base in the United States. Nearly half of U.S.-based BEC actors were located in five states with clusters of actors around a handful of metro areas, including the metro-Atlanta area.
By making a coordinated and concerted effort to focus on suspects moving fraud proceeds in the metro-Atlanta area, the Cyber Fraud Task Force hopes to disrupt the financial structure that makes BEC fraud schemes so lucrative for criminals. Additionally, the task force aims to partner with community leaders and organizers to educate the public about avoiding these scams.
The Cyber Fraud Task Force is comprised of members from the U.S. Attorney’s Office for the Northern District of Georgia, the Office of the Georgia Attorney General, FBI Atlanta, the Georgia Bureau of Investigation, the U.S. Secret Service Atlanta Field Office, the Atlanta Police Department, the Sandy Springs Police Department, the Smyrna Police Department, the DeKalb County District Attorney’s Office, the Gwinnett County District Attorney’s Office, the Fulton County District Attorney’s Office, the Clayton County District Attorney’s Office, and the Cobb County District 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.- A vendor a company regularly uses sends an invoice with an updated bank account number.
Canton man sentenced for attempted overseas transport of child pornographyRead the Press Release
ATLANTA - Nathaniel Barber has been sentenced to prison for trying to leave the country with a cell phone and a tablet containing more than 100 files of child pornography. Barber belonged to an online group that shared videos and photographs of child pornography.
“Every video and image of child pornography is a crime scene depicting the sexual abuse of a child,” said Acting U.S. Attorney Kurt R. Erskine. “This case reaffirms our office’s determination to leverage our federal, state, and local law enforcement partnerships to prosecute individuals who revictimize exploited children by downloading and viewing these horrific images.”
“Stopping predators from spreading this filth, that victimizes innocent children every time it is shared, is one of the most important actions we do,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Luckily, he was not able to complete his trip and others engaged in this depravity should be on the lookout because we won’t stop searching for them.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: in January 2020, special agents with Homeland Security Investigations received a tip that Nathaniel Barber might be traveling outside the country to commit sex crimes against minors. The agents learned that he had purchased a plane ticket to the Philippines and was departing from Hartsfield-Jackson Atlanta International Airport on January 28, 2020. Agents approached Barber at the boarding gate and questioned him about his trip.
Barber denied that he was traveling to the Philippines to engage in sex with anyone under the age of 18 years. But he admitted that he possessed child pornography on a tablet and cell phone. A forensic search of the items revealed that Barber had joined an online group where members posted and shared child pornography. Barber had downloaded seven videos and 133 images of child pornography, with many of the materials depicting girls under 10 years old being sexually abused.
Nathaniel Barber, 40, of Canton, Georgia, was sentenced to five years in prison to be followed by ten years of supervised release and ordered to pay a special assessment in the amount of $5,100. Barber was convicted of attempted international transport of child pornography on November 17, 2020, after he pleaded guilty.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
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 U.S. 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.
Robber and attempted murderer receives life sentenceRead the Press Release
ATLANTA - Dravion Sanchez Ware, who shot a woman in the back at point-blank range as she trembled on the floor during one of his robberies, has been sentenced to life in federal prison for the robberies of nine Asian owned-and-operated businesses in Atlanta, Doraville, Duluth, Roswell, Stone Mountain, and Norcross between October and November 2017.
“Ware terrorized the victims of these robberies and nearly killed one woman,” said Acting U.S. Attorney Kurt R. Erskine. “The complete disregard for the lives of his victims was shocking, and he received an appropriate sentence. We hope this provides some peace to the victims by ensuring that Ware will never again terrorize the communities of our district.”
This sentence is a statement that anyone who carries out such evil and inflicts such trauma on innocent citizens has no right to be in our communities,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The sentence will not erase the traumatic scars his crimes left behind, but hopefully his victims can rest easier knowing Ware will not traumatize them or anyone else for the rest of his life.”
“The GBI Crime Lab was instrumental in this case. Expert analysis and testimony helped lead to a successful prosecution. The GBI is committed to provide the highest quality forensic services in all cases. For over a month, these gang members targeted and terrorized the Asian business community. This sentence is evidence that this behavior will not be tolerated in the state of Georgia,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
“Ware and Smith are indicative of the criminals who terrorize our communities and make them unsafe. Each day we put on our uniforms and put our lives on the line to fight crime, investigate cases like these, and do what it takes to keep our communities safe. When the courts convict these perpetrators, we are all vindicated. This news empowers us to keep doing the work we were called to do.” Atlanta Interim Police Chief Rodney Bryant.
“Continued cooperation between multiple local, state and federal agencies produces results. Results that keep our communities and streets safe. People rarely see the many man hours that went into this investigation. Fortunately, they get to see the results,” said Chief Chuck Atkinson, Doraville Police Department.
“The successful outcome and sentencing of these cases is a testament of the importance of agencies working together. Unlike police departments, criminals are not bound by jurisdictional boundaries and these cases are proof that great things happen when agencies proactively share information, work together, and compare cases. The State of Georgia is now a safer place thanks to the cooperation between local, state, and federal partners that enabled the removal of these dangerous criminals from our communities. Although the victims of these crimes will forever be traumatized, we hope these sentences are the beginning of their journey to healing and recovery,” Chief Kenneth DeSimone, Sandy Springs Police Department.
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Between October 7th and November 10, 2017, Ware and his fellow gunman, Tabyron Rashad Smith, targeted Asian-run businesses in Metro-Atlanta for armed robberies. Of the at least nine businesses they robbed, three were located in Atlanta, two in Doraville, and one each in Norcross, Duluth, Stone Mountain, and Roswell, Georgia.
During the robberies, Ware frequently pistol-whipped defenseless victims that did not resist him, sending at least one man to the hospital. Ware also shot three women, one of whom was kneeling on the floor face down at the time. Fortunately, all three women survived.
Smith and Ware were captured on November 21st and 22nd, 2017, respectively, after a multi-jurisdictional investigation.
- Dravion Sanchez Ware, 25, of Atlanta, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr. to serve five concurrent life terms in prison, plus six concurrent 20-year terms, as well as to pay restitution in the amount of $135,951.81. Ware was convicted by a jury on August 2, 2019, for conspiracy to commit Hobbs Act robberies, five counts of Hobbs Act robbery, and five counts of discharging or brandishing a firearm during the robberies.
- Tabyron Rashad Smith, 26, of Atlanta, Georgia, pleaded guilty on July 23, 2019, to one count of conspiracy to commit Hobbs Act robberies and four counts of discharging or brandishing a firearm during several of the robberies. Judge Batten sentenced Smith to serve 27 years in prison, followed by three years on supervised release and to pay restitution in the amount of $135,951.81.
This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Doraville Police Department, the Fulton County Police Department, the Gwinnett County Police Department, the Atlanta Police Department, the Roswell Police Department, and the Sandy Springs Police Department.
Assistant U.S. Attorney Bret R. Hobson and former Assistant U.S. Attorney Timothy H. Lee prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] 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.
- Dravion Sanchez Ware, 25, of Atlanta, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr. to serve five concurrent life terms in prison, plus six concurrent 20-year terms, as well as to pay restitution in the amount of $135,951.81. Ware was convicted by a jury on August 2, 2019, for conspiracy to commit Hobbs Act robberies, five counts of Hobbs Act robbery, and five counts of discharging or brandishing a firearm during the robberies.
Foreign currency trader sentenced for investment fraud schemeRead the Press Release
ATLANTA – Kevin Perry, who ran an investment fraud scam that began when he was a teenager and resulted in more than $430,000 in losses to investors, has been sentenced to three years and five months in federal prison.
“Perry’s fraud caused unsuspecting investors to lose their hard-earned money,” said Acting U.S. Attorney Kurt R. Erskine. “During this pandemic, many have lost jobs and businesses while criminals continued to prey on unsuspecting citizens. Perry’s brazen actions, which included his continued scamming after a complaint was filed ordering him to cease, landed him in prison.”
“Perry carelessly continued his fraudulent investments even after a civil complaint was filed against him, thinking he was untouchable”, said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Hopefully, this sentence sends a message that the FBI will find criminals who greedily prey on investors, no matter how clever they believe their scheme to be.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Kevin Perry led investors to believe that his investment company, Lucrative Pips, was successfully earning substantial profits by investing in the foreign currency (or “FOREX”) market. Perry induced investors to send money by signing agreements that claimed the investors’ initial investments were secure from loss.
In actuality, Lucrative Pips was never registered as a commodity pool operator with the Commodity Futures Trading Commission (CFTC.) Also, Perry had never generated the historical returns represented to investors. Instead, he was using investor money to enrich himself or to pay off other investors, with the goal of enticing others to invest with him.
Even after the CFTC filed a civil complaint against Perry, he continued to make fraudulent investment pitches to potential investors, which included falsely promising an undercover FBI agent that an investment of $10,000 would return a profit of $19,000 to $25,000 per month.
Kevin Perry, 23, of Cartersville, Georgia was sentenced to three years and five months in prison and three years of supervised release, and he was ordered to pay $438,799 in restitution and a special assessment of $100.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Thomas J. Krepp and Nathan P. Kitchens, Chief of the Public Integrity and Special Matters Section, prosecuted the case. The Commodities and Futures Trading Commission provided invaluable assistance throughout the course of the investigation.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florida woman sentenced for her role in telephone scamRead the Press Release
ATLANTA - Karla Suzanne Spiker has been sentenced for her role laundering money for an international telephone scam. Spiker began laundering money after having been a victim of a mortgage scam, which is believed to have originated in India.
“These scams are a nationwide problem, and they typically target the most vulnerable members of our society,” said Acting U.S. Attorney Kurt Erskine. “Most of these scams originate outside the United States, and their success depends on individuals, like Spiker, who agree to launder the money. Spiker made a choice to engage in this conduct and could have walked away at any time, but she chose not to.”
“Telephone scams that seek to prey on us are a seemingly unrelenting nuisance,” said U.S. Secret Service Special Agent in Charge Steven Baisel. “Catching people who help to perpetrate these criminal schemes helps us all.”
“We are committed to working with our law enforcement partners to combat Social Security-related telephone scams by targeting their facilitators in the United States,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to aggressively pursue those who make these calls to profit by deceiving and harming American consumers. I want to thank the U.S. Secret Service and the U.S. Attorney’s Office for their unwavering support of our efforts.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Spiker worked as a money launderer for scammers, who are believed to be located in India. Typically, the scammers send out robocalls claiming to have an urgent message for the victim and, when the victim, mostly elderly or otherwise vulnerable, returns the call, the scammers threaten or cajole the victims into sending money.
The scammers that Spiker worked for operated two different scams. In the first, they told victims that their Social Security number (SSN) was used in a crime and they would be arrested, or their SSN canceled, unless they paid money. In the second, the scammers offered the victims a reduced mortgage payment if they first paid a fee. Once the victim agreed to make the payment, the scammers directed them to wire money or send money orders to individuals, like Spiker, in the United States who worked for the scammers.
Since at least June 2019 until July 2020, Spiker received money from victims all over the United States. She used various fake IDs to pick up money wired to an Orlando-area store. Victims also mailed money orders to her directly. Spiker was introduced to the scam when she was a victim of the mortgage scam.
After paying money to reduce her mortgage payment, and realizing that she had been scammed, she was recruited to receive money from other victims.
In July 2020, law enforcement executed a search warrant on Spiker's residence. Inside, they found 52 fake IDs each bearing her image with a different name. Spiker admitted that she had been working with the scammers since June 2019, that she picked up approximately five or six money transactions each week, and that she received a percentage from each cash pick up. Spiker communicated with the scammers by text message or email and had never met anyone in person. Spiker admitted that she picked up over $300,000 in scam funds.
Karla Suzanne Spiker, 47, of Orlando, Florida, was sentenced to one year, three months in prison to be followed by two years of supervised release, and ordered to pay restitution in the amount of $114,265.80 Spiker has been convicted on these charges on October 30, 2020, after she pleaded guilty.
This case was investigated by the U.S. Secret Service and Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman prosecuted 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.
Kurt R. Erskine named acting U.S. Attorney for Northern District of GeorgiaRead the Press Release
ATLANTA - Kurt R. Erskine has been named Acting U.S. Attorney for the Northern District of Georgia effective February 1, 2021, by virtue of the Vacancies Reform Act. Bobby L. Christine resigned as Acting U.S. Attorney for the Northern District of Georgia, but remains the Presidentially-appointed U.S. Attorney for the Southern District of Georgia.
Six charged in connection with a $2.7 million Paycheck Protection Program fraud schemeRead the Press Release
ATLANTA - Six individuals, who operated as part of a larger group, have been indicted for fraudulently obtaining approximately $1.5 million in Paycheck Protection Program (PPP) loans on behalf of five businesses based in Georgia and South Carolina. Five others involved in this scheme have already pleaded guilty.
“The CARES Act, and the PPP, designated funds to aid struggling businesses during a pandemic,” said Acting U.S. Attorney Bobby L. Christine. “American businesses use these funds to help keep their companies and employees afloat during this unprecedented time. Scammers on the other hand seek an easy payday. We will continue investigating and prosecuting those who attempt to line their own pockets with these critical funds.”
"The FBI and our federal partners will make every effort to stop anyone from defrauding a federal program that provides financial assistance to companies trying to keep their heads above water during a pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “These defendants alleged personal greed affects every tax paying citizen in this country.”
“Conspiring to use SBA program funds for personal gain and greed is unconscionable,” said SBA OIG Eastern Region Special Agent-in-Charge Amaleka McCall-Brathwaite. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to Acting U.S. Attorney Christine, the charges and other information presented in court: Rodericque Thompson allegedly recruited Micah Baisden, Travis Crosby, Keith Maloney, Tabronx Smith, and Thomas Wilson to apply for PPP loans on behalf of their respective businesses:
- PowerHouse Sports Academy, LLC,
- Faithful Transport Services, LLC,
- KMJ Transport, LLC,
- Market Yourself, LLC,
- Rare Breed Nation, LLC.
In exchange for a percentage of the loan proceeds, Thompson allegedly helped Baisden, Crosby, Maloney, Smith, and Wilson to obtain a $300,000 PPP loan by submitting loan applications that contained numerous false and misleading statements about their businesses. For example, each of the loan applications claimed to have 16 employees and monthly wages of $120,000. Additionally, identical fraudulent quarterly tax returns were submitted in connection with each loan application. The indictment alleges that the defendants used the PPP loan funds for impermissible purposes.
The group fraudulently obtained approximately $3 million in PPP loans. To date, authorities have recovered approximately $1,195,784.98, of the stolen money. Six were charged in an indictment filed in the Northern District of Georgia with conspiracy to commit bank fraud, bank fraud, false statements to a financial institution, and money laundering. They are:
- Rodericque Thompson, 43, of Atlanta, Georgia,
- Micah K. Baisden, 30, of Doraville, Georgia,
- Travis C. Crosby, 31, of Wellford, South Carolina,
- Keith A. Maloney, Jr., 33, of Port Wentworth, Georgia,
- Tabronx W. Smith, 43, of Buford, Georgia,
- Thomas D. Wilson, 30, of Atlanta, Georgia.
The following five individuals have pleaded guilty in connection with this alleged scheme:
- Antonio D. Hosey, 38, of Atlanta, Georgia, pleaded guilty to a one-count information charging conspiracy to commit wire fraud and money laundering (20-CR-396-LMM);
- Timothy Williams, 30, of Atlanta, Georgia, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-339-LMM);
- Stanley Dorceus, 34, of Marietta, Georgia, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-320-LMM);
- Kenneth L. Wright, Jr., 33, of Atlanta, Georgia, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-285-LMM); and
- Mark A. Stewart, 54, of Greenville, South Carolina, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-319-LMM).
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This case is being investigated by the FBI, the Small Business Administration Office of the Inspector General, and the Treasury Inspector General for Tax Administration (TIGTA.)
Special Assistant U.S. Attorney Diane C. Schulman of the U.S. Attorney’s Office for the Northern District of Georgia, and Trial Attorney Michael P. McCarthy of the DOJ Criminal Division’s Fraud 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 DeKalb County Sergeant sentenced for possessing equipment to make fraudulent credit cards and ID’sRead the Press Release
ATLANTA - Claude Goines has been sentenced to prison for running a fake credit card and ID lab. Goines operated a carding lab where he manufactured fraudulent credit cards and driver's licenses while he was on a work release program related to an earlier fraud conviction.
“Identity theft and credit card fraud has become an all too common problem,” said Acting U.S. Attorney Bobby L. Christine. “The actions of thieves like Goines can severely damage citizens’ lives and credit. In some cases, it can take years to repair. We encourage all citizens to monitor their credit for any suspicious activity, and if they find any, to contact law enforcement immediately.”
“It is clear that Goines was determined to continue to hurt citizens by stealing their identities to line his own pockets,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Particularly disturbing is the fact that he is a former law enforcement officer sworn to protect citizens.”
“This sentencing should send the message, to other identity thieves and fraudsters, that crime doesn’t pay. This type of crime has quickly become a serious threat to our communities because of how much damage they can do so quickly,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Goines, a repeat offender and former member of law enforcement, thought he could get away with his crimes and prosper, but thanks to the hard work and vigilance of HSI and its law enforcement partners he was wrong.”
“Unfortunately, some people have a difficult time breaking their cycle of criminal behavior,” said U.S. Secret Service Special Agent in Charge Steve Baisel. “Goines, and others like him, seem to find the lure of victimizing others greater than the potential consequences of their actions. We will not stop our efforts to bring to justice those who prey on others.”
According to U.S. Attorney Christine, the charges and other information presented in court: Claude Goines is a former detention officer at the DeKalb County Sheriff’s Office in Decatur, Georgia, where he rose to the rank of sergeant. While he was on a work release program related to an earlier fraud conviction, Goines operated a carding lab where he manufactured fraudulent credit cards and driver's licenses.
When federal agents executed a search of the lab, Goines was present while counterfeit cards were being produced. The lab contained multiple laptops, USB storage devices, cell phones, printers, blank card stock, security holograms for driver’s licenses of several U.S. states, two handguns, and other related items. Goines imported fraudulent holograms to be used with the fake Georgia driver's licenses he produced.
Claude Goines, 35, of Lilburn, Georgia, has been sentenced to two years, six months in prison to be followed by three years of supervised release. Goines was convicted on these charges on October 28, 2020, after he pleaded guilty to charges of access device fraud and possession of device-making equipment.
This case was investigated by the U.S. Secret Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Federal Bureau of Investigation.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds 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.
Eight defendants sentenced for distribution of methamphetamine in Operation Night TrainRead the Press Release
GAINESVILLE, Ga. – Eight defendants have been sentenced for conspiracy to distribute methamphetamine, possession with the intent to distribute methamphetamine, and money laundering as part of Operation Night Train, a long-term Organized Crime Drug Enforcement Task Forces (OCDETF) investigation in Gainesville, Georgia.
“Methamphetamine continues to plague our communities,” said Acting U.S. Attorney Bobby L. Christine. “This prosecution demonstrates that our federal, state, and local partners remain committed to taking these dangerous drug dealers off of our streets. We are grateful to the many law enforcement agencies who partnered with us on these cases.”
“Because of the results of this case our communities are safer and other drug traffickers in Georgia have been put on notice that we will not tolerate their efforts to spread these dangerous drugs,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “They will face the combined force of our federal, state and local law enforcement partners.”
“Georgians deserve to live in a safe and drug-free environment. We will continue to work diligently with all of our partners to investigate and dismantle drug trafficking organizations that threaten the safety of our communities,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to Acting U.S. Attorney Christine, the charges and other information presented in court: Teofilo Carlos Santana Medrano ran a multi-kilogram methamphetamine distribution organization in the Gainesville, Georgia, area. He was supplied by Maria Maldonado and Salome Urieta Jaimes. Santana distributed methamphetamine to other members of his organization.
Eight defendants in the case have been sentenced after pleading guilty:
- Timothy Barnes, 53, of Jasper, Georgia, was sentenced on January 28, 2021, to 11 years, eight months in prison, to be followed by 10 years of supervised release. Barnes was convicted on September 8, 2020, after he pleaded guilty to possession with the intent to distribute methamphetamine.
- Teofilo Carlos Santana Medrano, 29, of Gainesville, Georgia, was sentenced on October 14, 2020, to 18 years in prison to be followed by five years of supervised release. Santana was convicted on February 19, 2020 after he pleaded guilty to conspiracy to distribute methamphetamine.
- Michael Johnny Davis, 57, of Canton, Georgia, was sentenced on October 26, 2020, to four years, nine months in prison to be followed by six years of supervised release. Davis was convicted on July 23, 2020, after he pleaded guilty.
- Maria Isabel Gonzalez Maldonado, a/k/a Lili, 38, of Atlanta Georgia, was sentenced on November 20, 2020, to eight years, one month in prison to be followed by five years of supervised release. Maldonado was convicted on March 19, 2020, after she pleaded guilty to conspiracy to possess methamphetamine.
- John Johnson, 50, of Mershon, Georgia, was sentenced on November 20, 2020, to three years, eight months in prison to be followed by four years of supervised release. Johnson was convicted on August 13, 2020, after he pleaded guilty to possession with the intent to distribute methamphetamine.
- Mitchell Lingerfelt, 45, of Ball Ground, Georgia, was sentenced on October 29, 2020, to five years, three months in prison to be followed by seven years of supervised release. Davis was convicted on July 23, 2020, after he pleaded guilty to conspiracy to possess methamphetamine with the intent to distribute and possession with the intent to distribute methamphetamine.
- Carlos Neftali Lemus Salmeron, 29, of Lawrenceville, Georgia, was sentenced on August 14, 2020, to six years in prison to be followed by five years of supervised release. Salmeron was convicted on September 3, 2019, after he pleaded guilty to possession with the intent to distribute methamphetamine.
- Salome Urieta Jaimes, a/k/a “Gucci”, 39, of Guerrero, Mexico was sentenced on August 14, 2020, to nine years, two months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $200.00. Jaimes was convicted on January 31, 2020, after he pleaded guilty to possession with the intent to distribute methamphetamine and money laundering.
The remaining defendant, Lesli Arroyo Alvarado, 24, of Lawrenceville, Georgia, pleaded guilty to possession with the intent to distribute methamphetamine on July 2, 2020. She fled prior to her sentencing. Anyone with information regarding her whereabouts is asked to contact to the FBI.
This case is being investigated by the Federal Bureau of Investigation, the FBI North Georgia Major Offenders Task Force, the Department of Homeland Security Investigations, the Georgia Bureau of Investigation, the Hall County Sheriff’s Office, the Rhea County, Tennessee, Sherriff’s Office, the GBI Appalachian Regional Drug Enforcement Office, the Georgia National Guard Counter Drug Task Force, and the Georgia Department of Public Safety.
Assistant U.S. Attorney Calvin A. Leipold, III and former Assistant U.S. Attorney William McKinnon prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Cypriot hacker pleads guilty to extorting website operators with stolen user dataRead the Press Release
ATLANTA – Joshua Polloso Epifaniou, a Cypriot national, has pleaded guilty to accessing multiple major websites based in the United States without authorization, stealing user data, and demanding that the website operators pay a ransom to prevent his release of the data. Epifaniou is the first Cypriot national to be extradited from Cyprus to the United States.
“Epifaniou hacked into U.S.-based websites and threatened the disclosure of stolen personal information belonging to users, unless the websites paid him large ransoms,” said Acting U.S. Attorney Bobby L. Christine. “His arrest, extradition, and conviction demonstrate our resolve to bring to justice any hackers, no matter where they reside.”
“This conviction represents the determination of FBI investigators to hold cyber criminals accountable for extorting U.S. companies and citizens no matter where they may be hiding,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “However, the successful prosecution of this case would not have been possible without the help of our federal and foreign partners, including the government of Cyprus.”
According to Acting U.S. Attorney Christine, the charges and other information presented in court: Between at least October 2014 and November 2016, Epifaniou was a teenage hacker in Cyprus who searched website traffic rankings to identify potential targets of his extortion scheme. After selecting targets, Epifaniou worked with co-conspirators to steal personally identifiable information from user and customer databases at victim websites. Epifaniou stole the sensitive information either by directly exploiting a security vulnerability at the websites or by obtaining a portion of the victim website’s user data from a co-conspirator who had hacked into the victim network. Once the personally identifiable information was obtained, Epifaniou used proxy servers located in foreign countries to log into online email accounts and send messages to the victim websites threatening to leak the sensitive data unless a ransom was paid in cryptocurrency.
During his scheme, Epifaniou’s victims included:
- An online sports news website owned by Turner Broadcasting System Inc. in Atlanta, Georgia;
- A free online game publisher based in Irvine, California;
- A hardware company based in New York, New York;
- An online employment website headquartered in Innsbrook, Virginia;
- A consumer report website headquartered in Phoenix, Arizona.
Prior to the plea, Epifaniou paid nearly $600,000 in restitution to the victims, and Epifaniou agreed to forfeit an additional $389,113 and nearly 70,000 euros to the government in his plea agreement.
On September 19, 2017, Joshua Polloso Epifaniou, 21, of Nicosia, Cyprus, was indicted on one count of wire fraud conspiracy, two counts of wire fraud, one count of computer fraud conspiracy, and one count of extortion related to a protected computer. In addition, Epifaniou pleaded guilty to one count of computer fraud in a 24-count indictment transferred from the District of Arizona for purposes of his plea.
Sentencing is scheduled for March 3, 2021, at 10:00 a.m., before U.S. District Judge Mark H. Cohen.
This case is being investigated by the Federal Bureau of Investigation. Foreign law enforcement partners also made significant contributions to the investigation, including the exceptional support and cooperation provided by the Office for Combating Cybercrime of the Cyprus Police. Valuable assistance also was provided by the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Arizona.
Assistant U.S. Attorney Nathan P. Kitchens, Chief of the Public Integrity and Special Matters 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.
Gangster Disciples leaders sentenced to prisonRead the Press Release
ATLANTA - Shauntay Craig, a/k/a Shake, and Donald Glass, a/k/a Smurf, both leaders of the national gang, the Gangster Disciples, have been sentenced for racketeering conspiracy involving murder. Glass was also sentenced for firearms crimes.
“Members of the Gangster Disciples left a trail of death and destruction across Georgia and much of the United States,” said Acting U.S. Attorney Bobby L. Christine. “The sentence for these two gang leaders sends a resounding message to those who seek to inflict irreparable harm on their communities in furtherance of a violent gang. It should reassure citizens that we will use every asset we have to abolish gang activity.”
“As leaders of the Gangster Disciples, these defendants terrorized communities across the country by engaging in, and ordering others to engage in, multiple acts of violence, including murder,” said Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division. “The significant sentences imposed upon defendant Craig for his national leadership role in the gang, and defendant Glass for his creation of an army of teenagers who shot and killed indiscriminately, demonstrate that even the most sophisticated and ruthless gangs are no match for the coordinated efforts of federal, state, and local law enforcement.”
“The Gangster Disciples are a ruthless gang that preyed upon our communities for far too long, and Craig and Glass were the driving force behind the devastation the gang caused,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is our goal to dismantle these organized, violent criminal enterprises and we could not do it without the efforts of the FBI led Safe Streets Gang Task Force and its state and local partners.”
“We are glad justice is being served and hope this sentencing sends a message that no one is above the law,” said DeKalb County Police Chief Mirtha V. Ramos.
“Each time we take a dangerous criminal off or our streets and out of our communities, we all win. The arrest of these violent gang members sends a resounding message that criminal activity will not be tolerated in Atlanta and puts their fellow gang members and other violent suspects on notice, that we will find you and hold you accountable.” Atlanta Police Department Interim Chief Rodney Bryant.
According to Acting U.S. Attorney Christine, the charges and other information presented in court: The Gangster Disciples are a national gang with roots in Chicago, Illinois, dating back to the 1970’s. The gang is highly structured, with a hierarchy of leadership posts known as “Positions of Authority” or “POAs.” The gang strictly enforces rules for its members, the most important of which is “Silence and Secrecy” – a prohibition on cooperating with law enforcement. Violations of the rule are punishable by death. Evidence at trial showed that the Gangster Disciples were responsible for twenty-four shootings from 2011 through 2015, including twelve murders.
Shauntay Craig was a Board Member, the highest-ranking position in the Gangster Disciples. He was responsible for violence, drug trafficking, and murders, including orchestrating the murder of a government informant in Colorado to protect his drug empire.
Donald Glass led the H.A.T.E. Committee, a specialized enforcement team within the Gangster Disciples that reigned terror through its numerous murders, shootings, and robberies. As leader of the H.A.T.E. Committee, Glass ordered his band of teenage shooters, including a juvenile who Glass groomed to be an assassin, to shoot and kill more than ten people.
- Shauntay Craig, 42, of Birmingham, Alabama, has been sentenced to 40 years in prison to be followed by five years of supervised release. Craig was convicted on August 30, 2019, after he pleaded guilty to the offense of racketeering conspiracy involving murder and drug trafficking.
- Donald Glass, 30, of Decatur, Georgia, has been sentenced to life plus ten years in prison to be followed by five years of supervised release. Glass was convicted on May 16, 2019, following a jury trial, of the offenses of racketeering conspiracy involving murder, discharging a firearm during and in relation to a crime of violence, and causing death through the use of a firearm for the murder of Robert Dixon.
This case was investigated by the Federal Bureau of Investigation’s Safe Streets Gang Task Force, Atlanta Police Department, DeKalb County Police Department, Aurora Police Department (Colorado), Internal Revenue Service Criminal Investigation, the United States Marshal’s Service, the United States Postal Inspection Service, and the Georgia Department of Corrections, with significant assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Kim S. Dammers, Principal Deputy Chief of the Department of Justice Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorneys Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, and Erin N. Spritzer of the Northern District of Georgia, and Department of Justice Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang 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.Gangster Disciples Leaders Sentenced to PrisonRead the Press Release
Two leaders of the national gang the Gangster Disciples were sentenced today for a racketeering conspiracy involving murder.
Shauntay Craig, aka Shake, 42, of Birmingham, Alabama, was sentenced to 40 years in prison. Craig pleaded guilty in August 2019 to racketeering conspiracy involving murder and drug trafficking.
Donald Glass, aka Smurf, 30, of Decatur, Georgia, was sentenced to life plus 120 months in prison. Glass was convicted by a federal jury in May 2019 of racketeering conspiracy involving murder, discharging a firearm during and in relation to a crime of violence, causing death through the use of a firearm for the murder of Robert Dixon, and other firearms crimes.
“As leaders of the Gangster Disciples, these defendants terrorized communities across the country by engaging in, and ordering others to engage in, multiple acts of violence, including murder,” said Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division. “The significant sentences imposed upon defendant Craig for his national leadership role in the gang, and defendant Glass for his creation of an army of teenagers who shot and killed indiscriminately, demonstrate that even the most sophisticated and ruthless gangs are no match for the coordinated efforts of federal, state, and local law enforcement.”
“Members of the Gangster Disciples left a trail of death and destruction across Georgia and much of the United States,” said Bobby L. Christine, Acting U.S. Attorney of the Northern District of Georgia. “The sentence for these two gang leaders sends a resounding message to those who seek to inflict irreparable harm on their communities in furtherance of a violent gang. It should reassure citizens that we will use every asset we have to abolish gang activity.”
“The Gangster Disciples are a ruthless gang that preyed upon our communities for far too long, and Craig and Glass were the driving force behind the devastation the gang caused,” said Chris Hacker, Special Agent in Charge of the FBI’s Atlanta Field Office. “It is our goal to dismantle these organized, violent criminal enterprises and we could not do it without the efforts of the FBI led Safe Streets Gang Task Force and its state and local partners.”
Craig was a Board Member, the highest-ranking position in the Gangster Disciples. He was responsible for violence, drug trafficking, and murders, including orchestrating the murder of a government informant in Colorado to protect his drug empire.
Glass led the H.A.T.E. Committee, a specialized enforcement team within the Gangster Disciples that reigned terror through its numerous murders, shootings, and robberies. As leader of the H.A.T.E. Committee, Glass ordered his band of teenage shooters, including a juvenile who Glass groomed to be an assassin, to shoot and kill more than 10 people.
According to the charges and other information presented in court, the Gangster Disciples are a national gang with roots in Chicago dating back to the 1970s. The gang is highly structured, with a hierarchy of leadership posts known as “Positions of Authority” or “POAs.” The gang strictly enforces rules for its members, the most important of which is “Silence and Secrecy” – a prohibition on cooperating with law enforcement. Violations of the rule are punishable by death. Evidence at trial showed that the Gangster Disciples were responsible for 24 shootings from 2011 through 2015, including 12 murders.
This case was investigated by the FBI Atlanta’s Safe Streets Gang Task Force, Atlanta Police Department, DeKalb County Police Department, Aurora Police Department (Colorado), IRS – Criminal Investigation, the U.S. Marshal’s Service, the U.S. Postal Inspection Services, and the Georgia Department of Corrections, with significant assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Kim S. Dammers, Principal Deputy Chief of the Criminal Division’s Organized Crime and Gang Section (OCGS), Assistant U.S. Attorneys Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section and Erin N. Spritzer of the Northern District of Georgia, and OCGS Trial Attorney Conor Mulroe prosecuted the case.
Case manager and property agent plead guilty to stealing federal funds designated to help homeless veteransRead the Press Release
ATLANTA - Camelia Revels, a former case manager at HOPE Atlanta, and Katrise Jones, a property agent, have pleaded guilty to a criminal information charging them with conspiring to steal approximately $124,000 in federal funds intended to help homeless veterans.
“The defendants betrayed the trust of veterans who came to them for help,” said Acting U.S. Attorney Bobby L. Christine. “The victims are men and women who sacrificed for their country and deserve more than being taken advantage of for personal greed.”
David Spilker, Special Agent in Charge at the U.S. Veterans Affairs Office of Inspector General (VA OIG) stated, “VA OIG’s continued oversight of VA’s grant programs, which are used to provide housing for at-risk homeless veterans, is one of the agency’s highest priorities because it safeguards the integrity of VA’s programs designed to end veteran homelessness. As detailed in the charging document, the defendants’ fraud scheme adversely impacted the well-being of homeless veterans, their families, and the programs designed to assist them during a time of need.”
“This is a case of financial predators that actively sought to pilfer federal housing funds fittingly dedicated to assist our nation’s homeless veterans,” said Wyatt Achord, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General. “It is our mission to tirelessly root out such individuals with the intent to willfully undermine federal housing programs dedicated toward improving the quality of life of those who devotedly served in our country’s armed services.”
According to Acting U.S. Attorney Christine, the charges and other information presented in court: The U.S. Department of Veterans Affairs (VA) and U.S. Department of Housing and Urban Development (HUD) provide funds through a variety of programs, including the Supportive Services for Veterans program (SSVF), in order to assist homeless veterans. SSVF monies are in turn provided as grants to various organizations, including HOPE Atlanta (a/k/a Traveler’s Aid of Metropolitan Atlanta).
HOPE Atlanta is a non-profit organization dedicated to combatting homelessness that has served metro-Atlanta for more than 100 years. Between approximately October 2013 and November 2015, Revels was employed at HOPE Atlanta as a case manager for the SSVF program. As part of her duties, Revels was responsible for confirming a veteran’s eligibility to participate in the SSVF program, assisting veterans in finding suitable housing, and preparing the SSVF vouchers to secure issuance of funds. Although Revels did not have final approval over SSVF vouchers, she provided all the relevant information to her supervisor, including the name of the vendor to whom the check would be issued on behalf of a veteran.
Among the vendors Revels provided to her supervisor as the payee were companies that were owned and operated by Jones, including Stratford Corporate Realty, Strategic Consultants, and Reserve at Bay Bridge. Jones was supposed to act as a “property agent,” who would assist the veterans find suitable housing. In other words, rather than listing the rental property as the payee, Revels provided one of Jones’s companies.
In December 2014, HOPE Atlanta learned that Jones was not making rental payments on behalf of veterans who received SSVF funds and directed Revels to no longer work with her. Revels ignored this directive but continued her scheme with Jones. In particular, Revels did not disclose to HOPE Atlanta that the “vendors” receiving SSVF funds were various entities controlled and operated by Jones. As part of the conspiracy, Revels and Jones in fact opened a joint bank account in the name of Strategic Consultants—one of Jones’s companies—in which stolen SSVF funds were deposited. The scheme lasted until November 2015 when HOPE Atlanta learned that Revels had continued to work with Jones and that Jones’s companies had continued to receive SSVF funds that were not being used to help homeless veterans.
Separately, Jones also stole HUD-VA Supportive Housing funds (VASH) funds from the Marietta Housing Authority (MHA) in August and September 2015. HUD-VASH is a collaborative program between HUD and VA that combines HUD rental assistance (Housing Choice Vouchers) with VA supportive services to help veterans and their families who are homeless. To receive the VASH funds, an individual must represent that they are the owner of the property to be rented or a registered agent of the property owner. MHA also required the applicant to show that the mortgage payments for the property were up to date (or otherwise the owner held free and clear title to the property). MHA imposed these latter requirements to avoid placing veterans in properties that were subsequently foreclosed upon.
Jones falsely misrepresented to MHA that she was a registered agent of a large, legitimate property management company in order to participate in the VASH program. As a result of Jones’s misrepresentations to MHA, she received approximately $3,000 on behalf of several veterans for rental payments but never made the payments.
Sentencing for Camelia Revels, 50, of Hiram, Georgia, is scheduled for April 6, 2021 at 10:00 a.m. Sentencing for Katrise Jones, 47, of Lexington, South Carolina, is scheduled for April 15, 2021 at 9:30 a.m. Both sentencings will be held before U.S. District Judge Mark H. Cohen.
This case is being investigated by the Department of Veterans Affairs, Office of the Inspector General, Office of Inspector General-Department of Housing and Urban Development, and the Cobb County Police Department.
Assistant U.S. Attorney Alex R. Sistla 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.
Career criminals sentenced for trafficking fentanyl-laced heroin between Florida and AtlantaRead the Press Release
ATLANTA – William Brown, Ronald Williams, and McLane Ricardo Haddocks III have been sentenced for trafficking and conspiring to trafficking fentanyl and heroin. The three were long-time Florida drug dealers, and both Brown and Williams had been released from prison only a few months before resuming their criminal conduct in Atlanta, Georgia.
“Synthetic opioids such as fentanyl killed tens of thousands of Americans, destroyed countless families, and devastated communities throughout our nation in 2020,” said Acting U.S. Attorney Bobby L. Christine. “The outstanding efforts of the federal law enforcement officers and prosecutors in this district ensures that lifelong criminals like these defendants are brought to justice instead of flitting in and out of state prisons.”
“ATF is committed to working with our federal partners to target those responsible for drug trafficking and gun violence in our communities,” said John Schmidt, Assistant Special Agent in Charge of ATF’s Atlanta Field Division. “This coordinated effort between ATF and our partners demonstrates our continued dedication to identify, target, and investigate criminals who lessen the quality of life in our neighborhoods. The sentences will help ensure these individuals are not able to continue with their illegal activities.”
According to Acting U.S. Attorney Christine, the charges and other information presented in court: In July 2019, ATF agents observed William Brown and Ronald Williams—two multi-convicted felons with lengthy criminal histories in Florida—sell approximately three ounces of fentanyl-laced heroin in the parking lot of an apartment complex in southwest Atlanta, Georgia.
A few weeks later, Brown and Williams met with McLane Ricardo Haddocks, III—a career criminal who had relocated from Florida to Georgia after serving numerous prison terms for trafficking in cocaine, fleeing from police, and violating probation. Brown, Williams, and Haddocks drove to a public storage facility in Stockbridge, Georgia where Williams retrieved a plastic baggie of fentanyl-laced heroin and handed it to Haddocks. Shortly thereafter, while under surveillance by ATF, Haddocks sold approximately five ounces of fentanyl-laced heroin to a government informant in a hotel parking lot.
Williams and Brown took their drug trafficking operation from Florida to Georgia. The drug deal that agents witnessed in July 2019 was committed only three months after Williams’s release from a Florida prison for a gun crime. Williams had previously spent more than a half-decade in prison for trafficking cocaine, violating probation, and unlawful possession of a firearm.
Similarly, Brown had been released from prison in Florida just nine months before the July 2019 drug transaction. He too had spent more than a half-decade in Florida prisons for possession of cocaine, selling cocaine within 1,000 feet of a park, sale of marijuana, armed robbery, aggravated battery, and trafficking hydromorphone.
All three defendants pleaded guilty. They were sentenced by U.S. District Judge Michael L. Brown as follows:
- William Brown, 31, of Jupiter, Florida, was sentenced on January 12, 2021, to 15 years in prison followed by eight years of supervised release.
- Ronald Williams, a/k/a Mandela, 43, of Riviera Beach, Florida, was sentenced on March 9, 2020, to 12 years, seven months in prison followed by six years of supervised release. Additionally, Williams agreed to forfeit his interest in more than $100,000 worth of seized jewelry.
- McLane Ricardo Haddocks III, a/k/a Rick, 43, of Stockbridge, Georgia, was sentenced on December 3, 2020, to five years, 10 months in prison followed by four years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Theodore S. Hertzberg 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.
Cartersville businessman indicted for filing false tax returns and health care fraudRead the Press Release
ROME, Ga. - Mohammed Ajmal was arraigned today, charged with three counts of making and subscribing a false tax return, two counts of health care fraud, and two counts of false statements related to health care matters. Co-defendant Faisal Shahzad, who was arraigned in December 2020, was charged with making a false statement to a federal agent.
“Ajmal was a successful businessman who attempted to game the system by allegedly filing false tax returns to conceal kickbacks,” said Acting U.S. Attorney Bobby L. Christine. “He also allegedly submitted false income statements to obtain free healthcare for his children, while his brother, Shahzad, is alleged to have lied to a federal agent to help conceal the crimes.”
“It doesn’t matter if your earnings are legal or illegal; income is income,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “Everyone has equal responsibility for reporting their earnings to the Internal Revenue Service and we are dedicated to enforcing the law.”
“This was a GBI investigation that began as an illegal commercial gambling case and led authorities to discover a plethora of other crimes. The partnerships the GBI has with local, federal, and other state agencies are important to ensure all possible crimes are uncovered, investigated, and prosecuted successfully,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to Acting U.S. Attorney Christine, the charges, and other information presented in court: Through various corporations Mohammed Ajmal owned several gas stations and convenience stores in the Cartersville, Georgia, area. Many of the stores contained coin operated amusement machines, known as “COAMs”. COAMs are regulated by the Georgia Lottery Corporation.
Between 2013 and 2015, the Georgia Lottery Corporation issued administrative regulations under Georgia law which resulted Ajmal receiving less revenue from the COAMs. Ajmal then contacted the company holding the master license for the COAMs in his properties, and allegedly conveyed that if it wanted to continue operating COAMs on Ajmal’s properties, it would have to pay additional money, or kickbacks, to Ajmal. To disguise the kickback payments, Ajmal allegedly told the company to write checks to Ajmal’s relatives, including his brother, Shahzad. Ajmal then allegedly used the monies for his own benefit, including to build a new home. From 2015 through 2018, the amount of the kickbacks totaled $2,292,847. Ajmal allegedly did not report any of this income on his tax returns for 2015 through 2017; as a result, Ajmal allegedly paid less federal tax than he actually owed for all three years.
As part of this investigation, on June 14, 2019, an IRS-CI agent interviewed Faisal Shahzad at his workplace. During this interview, Shahzad allegedly falsely told the agent that checks made out by the company to him were for work he performed for the company.
In addition, Ajmal allegedly defrauded and made false statements to PeachCare for Kids, which is a publicly subsidized health insurance program for children in low- and moderate-income Georgia families. To enroll a child in PeachCare for Kids, parents must show that the family’s income is below certain limits. Because Ajmal’s income was well over the eligibility limit, Ajmal’s children were not eligible for PeachCare for Kids.
In order to enroll his children anyway, Ajmal allegedly understated his income by faxing false income verification forms and supporting documentation to the program. The income verification forms allegedly did not report any self-employment income for Ajmal or his wife, but instead listed fictitious employment and attached copies of purported paychecks which were never cashed. While the children were enrolled in the PeachCare for Kids program, Ajmal and his wife obtained medical and dental care and prescription drugs for them at public expense.
Mohammed Ajmal, 47, of Cartersville, Georgia, was arraigned before U.S. Magistrate Judge Walter E. Johnson. Ajmal, and Faisal Shahzad, 30, also of Cartersville, Georgia, were indicted by a federal grand jury on December 8, 2020. 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 Internal Revenue Service Criminal Investigation and the Georgia Bureau of Investigation, with valuable assistance provided by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Cartersville Police Department, Bartow County Sheriff’s Office, and Bartow-Cartersville Drug Task Force.
Assistant U.S. Attorneys Alana Black and Michael Herskowitz 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.
Bobby L. Christine named acting U.S. Attorney for Northern District of GeorgiaRead the Press Release
ATLANTA – Bobby L. Christine has been named Acting U.S. Attorney for the Northern District of Georgia. U.S. Attorney Christine is currently the U.S. Attorney for the Southern District of Georgia, and will remain in that position while assuming the additional role in the Northern District.
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.
Bobby L. Christine named Acting U.S. Attorney for Northern District of GeorgiaRead the Press Release
Bobby L. Christine has been named Acting U.S. Attorney for the Northern District of Georgia. U.S. Attorney Christine is currently the U.S. Attorney for the Southern District of Georgia, and will remain in that position while assuming the additional role in the Northern District.
U.S. Attorney Bobby L. ChristineU.S. Attorney Pak submits resignationRead the Press Release
ATLANTA - U.S. Attorney Byung J. “BJay” Pak has announced his resignation effective January 4, 2021. Pak is departing the office after serving for more than three years as the chief federal law enforcement officer for the Northern District of Georgia, which consists of 46 counties in Northwestern Georgia and which has offices in Atlanta, Rome, Gainesville, and Newnan. He was nominated as U.S. Attorney by President Donald Trump in July 017, confirmed by the United States Senate on September 28, 2017, and sworn in as the District’s 25th Presidentially appointed U.S. Attorney on October 10, 2017.
“It has been the greatest honor of my professional career to have been able to serve my fellow citizens as the U.S. Attorney for the Northern District of Georgia. I have done my best to be thoughtful and consistent, and to provide justice for my fellow citizens in a fair, effective and efficient manner. I am grateful to President Trump and the United States Senate for the opportunity to serve, and to former Attorneys General Sessions and Barr for their leadership of the Department,” said U.S. Attorney Byung J. “BJay” Pak.
Pak was born in Seoul, South Korea, and immigrated to the United States when he was nine years old. He resides with his family in Gwinnett County, Georgia. Pak worked in private practice until he began his government service as an Assistant U.S. Attorney in the Northern District of Georgia in 2002. He felt called to public service in the wake of the September 11th terrorist attacks on the United States, and he served for six years, prosecuting a wide variety of cases, including drug trafficking, money laundering, intellectual property, and white-collar crimes.
Additionally, Pak served as a State Representative in the Georgia House of Representatives from 2011 to 2017.
“As I look back at my almost a decade serving the Department of Justice (and this office in particular), the most memorable and fulfilling moments involve working very closely with our law enforcement partners in keeping our communities safe. I take with me fond memories and the utmost respect I have for every one of the men and women who wear the badge. They are truly everyday heroes. My hope is that my tenure in the office will be remembered for our efforts to serve and to support those brave agents and officers. I have witnessed first-hand the fortitude and grace of victims of crime and have taken to heart the awesome responsibility of speaking for those who cannot speak for themselves,” said Pak.
During his time as U.S. Attorney, Pak served on several national committees. He served as Chair of the Attorney General’s Advisory Committee’s Subcommittee on Civil Rights; Vice Chair of the Committee on Management, People, and Performance; and as a member of the Domestic Violence and White-Collar Fraud Working Groups. Pak also served on the Commission on Law Enforcement and the Administration of Justice Technology Working Group, and on the Committee that developed the standards for a National Decertification Index - a database to track excessive use of force incidents by police officers.
The U.S. Attorney’s Office for the Northern District of Georgia consists of three Divisions: Criminal, Civil, and Administrative. The accomplishments of each Division during Pak’s tenure are many and varied.
Criminal
Foremost among the office’s accomplishments during Pak’s tenure has been the commitment to working together and improving relationships with federal, state and local law enforcement partners in an effort to reduce violent crime in targeted areas throughout the District. As part of the Department of Justice priority programs Project Safe Neighborhoods and Project Guardian, the office has worked hand in hand with District Attorneys, federal, state and local law enforcement, and community partners to address gun violence. Working with an outstanding research partner, our efforts have been data-driven and evaluated for effectiveness. Our endeavors have been successful as reflected by recent statistics showing significant reductions in gun violence throughout the District. Our Innovative Prevention and Reentry Initiative involves the Credible Messenger Program, where the Department partners with rehabilitated ex-offenders who serves as trained mentors to those violent offenders reentering society from incarceration. Early data shows the program is highly effective in reducing recidivism.
In addition, the office pursued and successfully prosecuted numerous priority cases in the areas of public corruption, drug trafficking, drug delivery resulting in death, drug distribution and illegal prescribing by medical professionals, cybercrime, fraud, insider trading, sex trafficking and exploitation of minors, environmental crimes and illegal immigration. During Pak’s service as U.S. Attorney, the office increased the number of criminal cases prosecuted by over 30% versus FY17, with an emphasis on taking cases that should be handled on the federal level to best serve the victims of crime, regardless of the amount of financial loss or quantity of drugs.
Civil
The office’s Civil Division has wide areas of responsibility, from defending federal agencies and employees in civil matters to immigration, discrimination matters, prisoner litigation, and civil rights. The Affirmative Civil Enforcement has been highly successful, bringing cases and negotiating the return of millions of taxpayer dollars that individuals and businesses had obtained by fraudulent means. The Defensive Section handled a significant number of cases, including a large number of lawsuits related to immigration matters. The Civil Division continues to focus upon important polling place access discrimination cases throughout the District with the goal of ensuring that every eligible citizen will be able to cast a vote regardless of any disability. The office continued its long practice of protecting the civil rights of all citizens regardless of their nationality, gender, or disability.
Administrative
With the dual factors of the current pandemic and the longest government shutdown in United States history, the office’s Administrative Division has been exceedingly productive during the past three years. The Division handled a vast array of COVID-related issues, including sanitation of workspaces, acquisition of safety equipment, telework policies and procedures, and employee assistance.
In addition to these Divisions, the office has implemented a robust outreach effort, with emphasis on the law enforcement and intelligence communities, prison reentry initiatives, and the media. Pak also made efforts to reach out to the citizens of the Northern District of Georgia directly, with many television, radio, and public appearances, to keep the public informed of what the Office of the U.S. Attorney does.
"For the past three years, I have had the great fortune to work with the highly skilled attorneys and staff in the Northern District of Georgia,” Pak said. “This office is blessed with experienced leaders, and fearless colleagues who truly understand the importance of working together for the benefit of their fellow citizens and for justice. Likewise, the staff that supports the attorneys in the office – administrative personnel, legal assistants, paralegals and investigators, those responsible for outreach to law enforcement, victims, community partners, the media, and to those assigned to security and intelligence – are some of the most dedicated people I have seen. Their roles in fulfilling the mission of the office of pursuing justice cannot be underestimated. I have strived to serve these employees of the U.S. Attorney’s Office as their leader during these past three years, the last of which was one of the most trying the office has ever endured. I have greatly enjoyed working with each and every one of them. Throughout the past three years, I have endeavored to serve them and to tell the story of the great accomplishments of the office. While the public words are mine, the accomplishments belong to them.”
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 registered broker admits to involvement in options trading schemeRead the Press Release
ATLANTA - Bart Ross pleaded guilty to a criminal information charging him with conspiracy to commit wire and securities fraud arising from a years-long scheme to manipulate the prices of short-term call options in large, publicly traded companies.
“Ross and others were able to cheat the market by perfectly timing their trades on false rumors of their own design,” said U.S. Attorney Byung J. “BJay” Pak. “We will fight all forms of securities fraud, whether it involves defrauding investors, insider trading, pump-and-dump schemes, or the type of sophisticated market manipulation at issue here.”
“Manipulating the market to fraudulently profit is not a victimless crime,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Ross will now be sentenced for fraudulently profiting from the elaborate scheme and hopefully the public’s trust in a fair market will be restored.”
According to U.S. Attorney Pak, the charges and other information presented in court: Between approximately February 2017 and January 2020, Ross and at least four other individuals conspired to execute a scheme in which they traded securities—primarily short-term call options—in large, publicly traded companies (often Fortune 500 companies) based on materially false rumors about those companies that they themselves generated and disseminated. These materially false rumors were intended to drive up the price of the securities (both the underlying stock and options).
Call options are essentially a contract that gives the options’ holder the right, but not the obligation, to buy shares of the underlying stock at a set price per share—the option’s strike price—on or before a set future date (the option’s expiration date). Generally, the holder of a call option benefits when the price of the underlying stock increases. Short-term call options are ones that generally expire within a week.
Ross, who was formerly registered as a broker with the Financial Industry Regulatory Authority (“FINRA”), and the co-conspirators generated the rumors. They would frequently exchange drafts of a proposed rumor among themselves using the Trillian instant messaging application. After a rumor was formulated and finalized, one of the co-conspirators, identified as Individual-1 in the criminal information, was responsible for disseminating the rumor via Trillian to multiple accounts, which would in turn, result in the false rumor being disseminated over one or more market subscription services, including Trade The News, TradeXchange, and Benzinga, as well as various Twitter accounts.
Before Individual-1 disseminated the rumor, Ross and the other co-conspirators would acquire a position in the publicly traded company that was the subject of the materially false rumor. The co-conspirators typically purchased short-term call options before (sometimes just minutes or seconds before) Individual-1 disseminated the rumor. The conspirators often (but not always) purchased short-term call options because the price of such options is more sensitive than the price of the underlying stock. It was therefore possible for Ross and the others to earn a greater percentage return by trading short-term call options rather than the underlying stock. Ross and the conspirators profited from their scheme by selling the options (or other securities) after they increased in price. They would typically sell off their positions shortly after the rumor was disseminated (and after the price of the option or underlying stock had increased).
Ross executed approximately 49 trades based on the generation and dissemination of false rumors, including in March and April 2018, when Ross traded short-term call options in Disney and Ben Franklin Resources, respectively. Overall, Ross earned approximately $35,000 in profits from the scheme.
Bart Ross, 56, of Sandy Springs, Georgia, is scheduled to be sentenced March 26, 2021 at 9:30 a.m., before U.S. District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation. The Securities and Exchange Commission, which provided assistance in this case, also filed a civil enforcement action and consent judgment against Ross today in the U.S. District Court for the Northern District of Georgia.
Assistant U.S. Attorneys Alex R. Sistla and Thomas J. Krepp 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 United States Postal Service employee pleads guilty to stealing cash and gift cards from the mailRead the Press Release
ATLANTA – Former Postal employee Markeyta McAllister pleaded guilty to Obstruction of United States Mail for stealing cash and gift cards from more than 15 letters.
“While most U.S. Postal Service employees serve Americans with integrity and honesty – McAllister did not,” said U.S. Attorney Byung J. “BJay” Pak. “By opening peoples’ mail to steal money and gift cards, McAllister betrayed both the citizens she supposedly served and the reputation of her fellow employees.”
“The majority of postal employees are hard-working public servants dedicated to moving mail to its proper destination,” U.S. Postal Service Office of Inspector General Special Agent in Charge Imari R. Niles said. “Unfortunately, McAllister decided to betray the public’s trust and steal from postal customers. This plea demonstrates that USPS OIG special agents take these cases seriously, and that postal employees who steal mail are throwing away their careers and could end up in jail.”
According to U.S. Attorney Pak, the charges and other information presented in court: From July 7, 2014 to December 3, 2019, McAllister served as a mail-processing clerk assigned to sort mail deliverable to Duluth, Georgia at a postal facility in the Atlanta-metropolitan area. As a United States Postal Service employee, McAllister pledged to “preserve and protect the security of all mail in [her] custody from unauthorized opening, inspection, tampering, delay, reading of the contents or covers, or other unauthorized acts.” Furthermore, McAllister attested that she “fully underst[ood] that it is a crime, punishable by fine or imprisonment, or both, to knowingly or willfully obstruct or delay the mail, or to steal or attempt to steal mail of any kind.”
Despite swearing to preserve and protect the integrity of the United States postal system, McAllister effected a scheme to open mailed letters and to steal prepaid/gift cards and cash from within those letters. For example, from September to October 2019:
- McAllister stole a $200 prepaid Visa card from a letter addressed to a resident of Duluth, Georgia and on October 3, 2019, McAllister used the gift card;
- McAllister stole a $150 prepaid Visa card from a letter addressed to a resident of Duluth Georgia and McAllister used the gift card; and
- McAllister stole a $25 prepaid Visa card from a letter addressed to a resident of Duluth, Georgia and video surveillance footage depicts McAllister using the card at a Kroger Store in Jefferson, Georgia.
In total, as a U.S. Postal Service employee, McAllister stole cash and prepaid/gift cards from at least 15 letters in 2019.
On December 3, 2019, McAllister gave federal law enforcement officers a recorded statement where she admitted to stealing prepaid/gift cards from the mail.
From McAllister's vehicle, federal agents recovered: (a) two gift card sleeves, (b) three prepaid cards, (c) several store receipts for purchases made with prepaid/gift cards, and (d) two opened envelopes not addressed to McAllister.
On November 23, 2020, McAllister, 30, of Jefferson, Georgia, was charged via criminal information with Obstruction of U.S. Mail. McAllister pleaded guilty to that charge on December 17, 2020.
U.S. Postal Service – Office of Inspector General is investigating the case.
Assistant U.S. Attorney Jeffrey W. Davis 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.
- McAllister stole a $200 prepaid Visa card from a letter addressed to a resident of Duluth, Georgia and on October 3, 2019, McAllister used the gift card;
Prolific turtle trapper indicted for illegally trapping thousands of freshwater turtlesRead the Press Release
ATLANTA - Nathan Horton has been indicted by a federal grand jury for allegedly illegally trapping and exporting thousands of freshwater turtles in Georgia in violation of the Lacey Act, which regulates the trafficking and labeling of wildlife, fish, and plants.
“Illegal wildlife trafficking both decimates species and undermines the rule of law,” said U.S. Attorney Byung J. “BJay” Pak. “We are committed to working with our law enforcement partners to prosecute those who violate our nation’s wildlife protection statutes for the sake of illegal profit.”
“The U.S. Fish and Wildlife Service, Office of Law Enforcement, considers the illegal trapping and commercialization of Georgia’s protected turtle species a high priority, and we will continue to work closely with our State partners to protect the irreplaceable natural resources,” said Assistant Director Ed Grace.
“Wildlife crime has no place in Georgia! It is no longer lawful to trap freshwater turtles on a commercial basis in Georgia or export them out of the state, period. Georgia is filled with pristine natural resources and diverse ecosystems that are protected daily by Georgia DNR. I want to say thank you to our Georgia Game Wardens and federal partners for their hard work on this case and for strictly upholding our state’s conservation laws,” said Commissioner Mark Williams, Georgia Department of Natural Resources.
According to U.S. Attorney Pak, the charges, and other information presented in court: the Lacey Act, 16 U.S.C. §§ 3371-3378, regulates the trafficking and labeling of wildlife, fish, and plants and makes it unlawful for individuals to, among other things, knowingly export and sell wildlife that has been illegally taken in violation of state law.
In Georgia, the Department of Natural Resources (“GA-DNR”) regulates the collecting, trapping, exporting, trading, and selling of freshwater turtles from land belonging to the State of Georgia. Like it does with other wildlife, such as deer and bears, GA-DNR regulates both the number of freshwater turtles that may be collected and the manner in which they may be trapped. In this respect, Georgia defines by statute that a lawful turtle trap “must be constructed of netting and shaped as hoop nets . . . [and] must also have one open muzzle or throat at least 32 inches wide with a ring ten inches in diameter made into the rear of the trap to permit fish to escape.”
The indictment and other information before the court alleges that beginning by at least July 2015 and continuing until at least July 2017, Horton shipped thousands of freshwater turtles from Georgia to California that had been trapped using turtle nets that were illegal under Georgia law. Although Horton held a Commercial Turtle Permit during this time and GA-DNR sends all commercial permit holders the applicable Georgia statutes and GA-DNR regulations on turtle traps, Horton repeatedly used illegal traps to capture freshwater turtles. Indeed, in October 2016 and August 2017, while holding a commercial permit, GA-DNR cited Horton for using illegal traps to capture freshwater turtles. Among the species of turtles Horton allegedly trapped illegally were: Stripe-necked musk turtle (Sternotherus minor peltifer), Loggerhead musk turtle (Sternotherus minor), Common musk turtle or stinkpot or eastern musk turtle (Sternotherus odoratus), and Eastern mud turtles (Kinosternon subrubrum).
Nathan Horton, 36, formerly of Bainbridge, Georgia, was indicted for violating the Lacey Act. He was arraigned on December 10, 2020 before U.S. Magistrate Judge Justin S. Anand. 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. Fish and Wildlife Service Office of Law Enforcement and Georgia Department of Natural Resources.
Assistant U.S. Attorneys Alex R. Sistla and Samir Kaushal are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Georgia women charged with bribing former Supervisor in DeKalb County’s Tax Commissioner’s OfficeRead the Press Release
ATLANTA – Lesbia Lily Gonzalez Moreno and Ailin Michelle Maldonado have been charged with paying bribes to Gerald D. Harris, a former Supervisor in DeKalb County’s Tax Commissioner’s Office, in exchange for Harris unlawfully registering vehicles.
“Moreno and Maldonado allegedly paid multiple bribes to register illegally vehicles without the necessary documentation,” said U.S. Attorney Byung J. “BJay” Pak. “Whether you offer a bribe or take a bribe, corruption betrays the trust of our citizens in government and will subject you to federal prosecution.”
“When public officials take or pay bribes, they are tarnishing the reputations of every government official,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal, state and local partners will do everything in our power to arrest and punish those who violate the public’s trust in hopes of restoring it.”
“Bribing government officials in exchange for official acts undermines the government’s integrity and its ability to effectively serve its citizens. Today is the first step in holding Moreno and Maldonado accountable for their actions. The DeKalb County District Attorney's Office, along with its law enforcement partners, remains committed to prosecuting anyone who engages in such activity,” said District Attorney Sherry Boston, Stone Mountain Judicial Circuit.
“The Georgia Department of Revenue was proud to assist our federal partners in the course of this investigation. The Department’s Motor Vehicle Division is responsible for motor vehicle tag and title processing and registration statewide. Our duties include ensuring that there is integrity throughout this process and so we will continue to work diligently with both our federal and local partners to enforce the law and maintain the public trust.” David Curry, Georgia State Revenue Commissioner.
“We continue to support the efforts of law enforcement officials to root out illegal and unethical behaviors by persons in positions of public trust,” said DeKalb Tax Commissioner Irvin Johnson. “I applaud the work of our office staff and our partners in law enforcement who quickly isolated this illegal activity and brought those involved to justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: the DeKalb County Tax Commissioner’s Office is an agency of DeKalb County, Georgia, responsible for the billing and collection of property taxes, processing of Homestead Exemptions, and collecting delinquent taxes. In addition, the Motor Vehicle Division of the DeKalb County Tax Commissioner’s Office handled all aspects of motor vehicle registrations, including: (a) managing the collection of motor vehicle taxes, (b) issuing vehicle tags and titles, and (c) processing vehicle registration renewals for citizens and businesses located in DeKalb County, Georgia.
From July 2017 to November 2019, Harris served as the Supervisor of Tax Tag Clerks for the DeKalb County Tax Commissioner’s Office. In that position, Harris oversaw the Tax Commissioner North Office’s clerks who processed motor vehicle registrations and renewals for customers. As a supervisor, Harris generally interacted with customers only if a dispute existed between clerks and customers. Similarly, based on his supervisory role, the Motor Vehicle Division did not issue Harris a cash drawer or a credit card terminal, nor was Harris responsible for processing transactions or payments with customers.
From at least May 2019 to November 8, 2019, Moreno and Maldonado repeatedly paid Harris bribe payments to register unlawfully vehicles for owners without presenting a valid Georgia driver’s license or identification card. Under state law, a vehicle owner could not register a vehicle or receive a license plate unless they presented a valid Georgia driver’s license or identification card at the time of application. Nevertheless, in exchange for bribe payments, typically $200 per vehicle, Harris unlawfully registered and obtained license places for owners identified by Moreno and Maldonado. During this period, Moreno and Maldonado each gave Harris thousands of dollars in bribe payments.
On July 14, 2020 Harris pleaded guilty to federal program bribery and blackmail and was sentenced to two years in prison.
Lesbia Lily Gonzalez Moreno, 46, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Justin S. Anand. Ailin Michelle Maldonado, 24, of Norcross, Georgia, made an initial appearance before a U.S. Magistrate Judge in Denver, Colorado. Moreno was indicted by a federal grand jury on nine counts of honest services wire fraud on December 1, 2020. That same day, Maldonado was indicted by a federal grand jury on seven counts of honest services wire fraud in a separate indictment.
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.
The FBI, DeKalb County District Attorney’s Office, Georgia Department of Revenue, and DeKalb County Tax Commissioner’s Office are investigating this case.
Assistant U.S. Attorney Nicholas Hartigan is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta man pleads guilty for misrepresenting a COVID-19 test to his employerRead the Press Release
ATLANTA - Santwon Antonio Davis has pleaded guilty to wire fraud related to a scheme to defraud his employer in May 2020 by submitting a fraudulent COVID-19 medical excuse letter. He also pleaded guilty to bank fraud related to a scheme to defraud a mortgage company while he was on bond for the earlier COVID-19 wire fraud charge.
“The defendant caused unnecessary economic loss to his employer and distress to his coworkers and their families,” said U.S. Attorney Byung J. “BJay” Pak. “We will take quick action through the Georgia COVID-19 Task Force to put a stop to Coronavirus-related fraud schemes.”
“Davis’ streak of lies ended when he took advantage of a pandemic to cause undue harm to the company he worked for and their employees,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal and state partners remain vigilant in detecting, investigating and prosecuting any fraud related to this crisis we are all facing.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Davis, who was employed by a company with a facility located in the Atlanta, falsely claimed to have contracted COVID-19 and submitted a falsified medical record to his employer. In concern for its employees and customers, the corporation closed its facility for cleaning and paid its employees during the shutdown. This caused a loss in excess of $100,000 to the corporation and the unnecessary quarantine of several of the defendant’s coworkers.
During the COVID-19 fraud investigation, agents uncovered a previous incident in which the defendant submitted fraudulent documentation to obtain benefits from his employer. Specifically, in the fall of 2019, the defendant created and submitted false documentation to support a paid bereavement leave claim for the death of his child. This child never existed and was fabricated so that the defendant could obtain benefits to which he was not entitled.
Finally, while on pretrial release in the original COVID-19 case, the defendant submitted a mortgage application with numerous fraudulent statements, including a falsified earnings and employment history. The mortgage company discovered the fraud, in part, after seeing the news stories related to his original COVID-19 charge.
Santwon Antonio Davis, 35, of Atlanta, Georgia, pleaded guilty before U.S. District Judge William M. Ray, II, to a wire fraud charge related to a scheme to defraud his employer and to a bank fraud charge relating to the mortgage fraud. Davis was previously charged via an information with wire fraud in May 2020. He pleaded guilty admitting that he falsely represented he had COVID-19 and to other fraud offenses that were uncovered during the COVID-19 fraud investigation. Sentencing has not yet been scheduled.
This case is being investigated by the Federal Bureau of Investigation. The U.S. Department of Housing and Urban Development Office of the Inspector General offered valuable assistance in this investigation.
Assistant U.S. Attorneys Sarah Klapman and Russell Phillips are prosecuting the case.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.
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.
Utah resident indicted for operating fake charities that falsely claimed donations would benefit veteransRead the Press Release
ATLANTA - Travis Peterson has been indicted by a federal grand jury on mail and wire fraud charges for operating a fraudulent charity scheme. For years he allegedly used millions of robocalls to urge people to donate vehicles and other valuable items by falsely claiming their donations would go to veterans’ charities and were tax-deductible.
“Thousands were allegedly defrauded by Peterson's false claims that he wanted to help veterans,” said U.S. Attorney Byung J. “BJay” Pak. “Many veterans face significant financial challenges, and Peterson allegedly exploited the generosity and good intentions of those who donated to support those who served our nation.”
“While fraud is always wrong, Peterson’s exploitation of the public’s trust and charitable giving, providing false assurances that the donations were going to help veterans’ charities, is especially egregious,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “The US Postal Inspection Service remains vigilant in keeping fraudsters from using the U.S. Mail to commit their offenses.”
“Peterson used millions of illegal robocalls to convince people to donate to his fake veterans’ charities and, in turn, hurt legitimate charities that do great work on behalf of our service-members,” said Anna Burns, Director of the Federal Trade Commission’s Southeast Region. “This announcement shows that putting a stop to illegal robocalls and protecting well-meaning Americans from fraudulent charities remains a top priority for cooperation between law enforcement agencies around the nation.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: Between approximately April 2012 and July 2018, Peterson established and registered multiple corporate entities, including Vehicles for Veterans LLC, Medal of Honor, Act of Valor, Donate Real Estate LLC, Donate That Car LLC MI, Donate That Car LLC NV, Telefunding LLC, Tiny Towns R.E. LLC, Victims Relief LLC, Veterans of America, and Saving Our Soldiers in Nevada, Michigan and Utah. Each of these companies was purportedly a tax-exempt charitable organization that Peterson established to help veterans and their families. None of these companies, however, was an actual charity with tax exempt status. Peterson in fact never owned or operated a single charity that benefitted veterans.
Using millions of robocalls, as well as multiple websites and newspaper advertisements, Peterson allegedly defrauded thousands of people around the country into believing they were donating vehicles and other property to benefit veterans. Peterson and those working at his direction falsely informed would-be donors that their donations would be used to benefit veterans and were tax deductible. Peterson himself did not pick up and sell the donated vehicles. Rather, he contracted with third-party auto auction companies to handle the logistics of acquiring and selling the donated vehicles. After the vehicles were sold, the auction companies would remit any proceeds to bank accounts controlled by Peterson. None of these funds went to the benefit of veterans. Peterson instead allegedly used them for own personal expenses, including to pay for online dating services and to purchase an all-terrain vehicle. As a result, Peterson defrauded donors of more than $500,000.
The FTC had previously filed a complaint against Peterson in the U.S. District Court for the District of Utah arising from this same fraudulent scheme. On April 1, 2019, the court entered a stipulated order and judgment which permanently banned Peterson from soliciting charitable contributions and from using robocalls, as well as prohibiting him from making misrepresentations that a charitable contribution is tax-deductible. The order also imposed a $541,032.10 monetary judgment against Peterson and required that he forfeit 88 vehicles. The FTC’s investigation of Peterson is part of a broader initiative by the agency to combat illegal robocalls. More information about several of the FTC’s recent enforcement actions, including Peterson’s, is available online: https://www.ftc.gov/news-events/press-releases/2019/03/ftc-crackdown-stops-operations-responsible-billions-illegal.
Travis Peterson, 53, of St. George, Utah, was indicted on December 9, 2020. 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. The Cleveland and Atlanta Regional Offices of the Federal Trade Commission provided invaluable contributions in this case.
Assistant U.S. Attorney Alex R. Sistla is prosecuting the case, which was begun by former Special Assistant U.S. Attorney Valerie Verduce.
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.
Defense contractors charged and sentenced for Turkey-based defense contracting fraud schemeRead the Press Release
ATLANTA – Multiple defense contractors have been charged and/or sentenced for participating in a multi-million-dollar defense contracting fraud scheme based out of Turkey.
“Our nation relies on the defense contracting process to carry out important duties,” said U.S. Attorney Byung J. (“BJay”) Pak. “When contractors circumvent the rules they agreed to follow, they jeopardize the lives of those servicemen they signed up to serve.”
“This conspiracy to steal military technology was not only fraudulent, it endangered lives,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is dedicated to working with our federal partners to seek justice for anyone who would subvert the defense contracting process, but more importantly, threaten the safety of the men and women in the U.S. military.”
“The Bureau of Industry and Security, Office of Export Enforcement will aggressively pursue violators of U.S. export controls,” said Acting Special Agent in Charge Alan Berkowitz. “Working closely with our law enforcement partners, our joint investigation disrupted an ongoing conspiracy to divert U.S. military technology and protect our warfighters.”
“Compromising the Department of Defense contracting process threatens the safety of our warfighters and the strength of our national defense,” said Special Agent in Charge Cynthia A. Bruce, DCIS Southeast Field Office. “We will aggressively pursue those who abuse the contracting system and hold them accountable for their criminal schemes.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Murat Gonenir, along with at least two other defendants, participated in an extensive Turkey-based scheme to defraud the U.S. military. The defendants applied for and obtained access to a sensitive Department of Defense (“DOD”) contracting database housing some of the military’s most sensitive schematics, which is only lawfully accessible by U.S. and Canadian citizens or permanent residents.
Once the defendants obtained access to the database, they downloaded thousands of sensitive schematics for parts such as a handle casting for an 105 millimeter tray assembly for an AC-130H Gunship, and catapult/arresting gear for Nimitz and Forrestal Class aircraft carriers. Gonenir obtained access to this sensitive database by falsely claiming he was a U.S. or Canadian citizen or permanent resident.
The defendants offered bids on numerous defense contracts for these sensitive schematics that required them to produce these parts in the United States. Instead, they produced these parts in Gonenir’s manufacturing plants in Turkey and then falsely claimed to the DOD that the parts had been lawfully produced in the United States. The DOD paid millions of dollars to the various defense contractors who took part in this scheme as a result of these false statements.
DOD testing revealed that various parts produced at Gonenir’s plants were of such inferior design that they could have resulted in serious injury or death to U.S. military personnel if the parts had been put into production. Several members of the conspiracy were told that DOD testing had determined that at least one of the parts had failed inspection. However, the defendants kept producing parts in Turkey and falsely claiming the parts were produced in the United States.
The defendants and their sentences are as follows:
- Murat Gonenir, 59, of Cankaya, Turkey was sentenced to three years, five months in prison and three years of supervised release, and he was ordered to pay $1,487,950.77 in restitution and a special assessment of $100.
- Batur Ustol, 61, of Atlanta, Georgia, was sentenced to two years and six months in prison and three years of supervised release for his role in the conspiracy, and he was ordered to pay $100,000 in restitution and a special assessment of $100. In a related matter.
- Suleyman Sevket Bayraktar, 43, of Fountain Valley, California, was sentenced to six months in prison, six months of home confinement, and three years of supervised release, and he was ordered to pay $161,925 in restitution and a special assessment of $100.
This case was investigated by the Department of Commerce – Bureau of Industry & Security, Federal Bureau of Investigation, and the Department of Defense Criminal Investigative Service.
Assistant U.S. Attorney Thomas J. Krepp and Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Section prosecuted the cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta man indicted for stealing $11 million while in prisonRead the Press Release
ATLANTA –Arthur Cofield and two others have been indicted for conspiracy to commit bank fraud and money laundering. Cofield is currently serving a prison sentence in a Georgia Correctional facility in Butts County, Georgia.
“Some prisoners aren’t interested in rehabilitation or paying their debt to society,” said U.S. Attorney Byung J. “BJay” Pak. “The allure of millions of dollars in gold, coupled with contraband prison cellphones, allegedly was enough for Cofield to commit a brazen million-dollar fraud scheme from the confines of his prison cell.”
“This elaborate fraud scheme is truly shocking in its scope and nature,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “The U.S. Postal Inspection Service is committed to ensuring the U.S. Mail is not utilized as a tool in this type of fraud and to holding the responsible parties fully accountable for their actions.”
“The Secret Service worked closely with our partners and shared information and resources to ultimately bring this criminal to justice,” said Steven R. Baisel, Special Agent in Charge of the Secret Service's Atlanta Field Office. “Today’s indictment proves that there is no such thing as anonymity for those engaging in fraudulent schemes.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Cofield is an inmate at the Georgia Diagnostic and Classification Prison in Butts County, Georgia, serving a 14-year sentence for armed robbery. He is also currently under indictment in Fulton County, Georgia, charged with attempted murder.
In June 2020, using a contraband cell phone, Cofield obtained multiple means of identification for victim S.K., and gained access to an online account owned by S.K., and managed by Charles Schwab. On June 5, 2020, Cofield impersonated S.K., and called a Charles Schwab customer service representative to inquire about opening a checking account. The customer service representative informed Cofield that a form of identification and utility bill would be required to complete the verification process. At Cofield’s request, a co-conspirator texted Cofield with a picture of S.K.’s driver’s license and a Los Angeles, California, Department of Water and Power utility bill.
On June 8, 2020, Cofield submitted via email a purchase inquiry to Money Metals Exchange, LLC, a precious metals dealer based in Idaho, for the purchase of gold coins. Purporting to be S.K., while communicating with representatives of Money Metals Exchange, LLC, Cofield agreed to purchase 6,106 American Gold Eagle one-ounce coins for the price of $10,998,859.92. That same day, a female co-conspirator claiming to be calling on behalf of her husband contacted a Charles Schwab customer service representative and inquired about the verification procedures to initiate a wire transfer.
Later, Cofield impersonated S.K., and called a Charles Schwab customer service representative to inquire about sending a wire transfer in the amount of $11,000,000. During the call, Cofield falsely claimed to be S.K., and referenced the earlier call made by the female co-conspirator. Based on these false representations, Charles Schwab wired $11,000,000 from the account belonging to S.K., to an account controlled by Money Metals Exchange, LLC.
On June 13, 2020, Cofield hired a private security company to transport the purchased gold coins from Boise, Idaho, to Atlanta, Georgia, by chartered private plane. On June 16, 2020, the private security team landed at the Atlanta Signature Airport and met with co-defendant Eldridge Maurice Bennett. Bennett presented a false identification document to the private security team and took possession of the gold coins.
In July 2020, Cofield contacted the landowner of a six-bedroom residence located near West Paces Ferry, in Atlanta, Georgia, and offered to buy the property for $4.4 million. The landowner eventually received approximately $720,000 in cash as down payment from Eldridge Bennett and a woman Cofield described as his wife, Eliayah Bennett. At the closing on September 1, 2020, Eldridge Bennet conveyed the remaining $3.7 million in cash to the landowner.
Arthur Cofield, 29, Eldridge Bennett, 63, and Eliayah Bennett, 25, all of Atlanta, Georgia, were indicted for multiple counts of conspiracy to commit bank fraud and money laundering. Both Eldridge Bennett and Eliayah Bennett were arraigned before U.S. Magistrate Judge Justin S. Anand. Cofield is expected to be arraigned at a later date upon production from the Georgia Department of Corrections.
This case is being investigated by the U.S. Postal Inspection Service and the U.S. Secret Service.
Assistant U.S. Attorney Scott McAfee 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.
Home health care owner sentenced to more than five years for defrauding Georgia MedicaidRead the Press Release
ATLANTA –Diandra Bankhead, the owner and operator of Elite Homecare (“Elite”), an Atlanta-based home healthcare provider, has been sentenced for defrauding Medicaid out of nearly $1 million. Between September 2015 and April 2018, Bankhead submitted thousands of fraudulent claims for services that were never provided to medically fragile children under the Georgia Pediatric Program (“GAPP”).
“It is outrageous that Bankhead profited off children who suffered from significant physical and cognitive disabilities,” said U.S. Attorney Byung J. “BJay” Pak. “For years her scheme exploited Medicaid-eligible children and their families by billing for services never performed and for children never seen, diverting critical resources from those who needed them most.”
“Bankhead’s greed-fueled scheme, designed to enrich herself, came at the expense of disabled children and taxpayers. Instead she faces years of imprisonment – a fate awaiting those stealing Medicaid funds,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working closely with our State and Federal law enforcement partners we will bring to justice those who illegally drain this vital program.”
"Bankhead’s lack of concern for the needs of fragile children to profit rather than care for them is very troubling, and now she must pay the price for her greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Not only did she deny care to children in need, she also stole taxpayer dollars from a Medicaid program that should have gone to those who need them.”“Our Medicaid Fraud Division, in cooperation with our state and federal partners, will remain vigilant in maintaining the integrity of public programs and prosecuting those who take advantage of them,” said Attorney General Chris Carr. “This case is especially egregious as it involves someone purporting to help serve children in need all the while neglecting their responsibility to devote these funds for those purposes. This behavior is unacceptable.”
According to U.S. Attorney Pak, the charges and other information presented in court: GAPP is an in-home nursing program designed to serve Medicaid-eligible children under the age of 21 years of age based on a medical necessity. The program offers in-home skilled nursing services for medically fragile children who require nursing services, and personal care services, including feeding, bathing, dressing, personal hygiene, preparation of meal, and assisting with the mobility and ambulation of members.
Medically fragile children who are eligible for services under GAPP typically suffer from significant physical and cognitive disabilities, including autism, blindness, cerebral palsy, Down syndrome, epileptic seizures, and/or paralysis.
Bankhead's scheme began in September 2015 and continued until April 2018. Over that time, Elite Homecare submitted more than 5,400 claims to Georgia Medicaid—the vast majority of which were fraudulent—and for which Elite received $1.2 million in reimbursement. Bankhead defrauded Medicaid in a number of ways, including:
- Submitting fraudulent credentialing information to the State of Georgia Department of Community Health in order to become a certified GAPP provider, including falsely representing that a registered nurse (“RN”) —without her knowledge or authorization—served as Elite’s RN Supervisor.
- Falsely representing to Medicaid that an RN or RN Supervisor had conducted the initial evaluation of putative GAPP members as required by applicable regulations.
- Submitting fraudulent claims for in-home nursing services allegedly provided to families who had not retained Elite to provide any services.
- Submitting fraudulent claims in which Elite employees allegedly provided more than 24 hours of services in a given day.
- Submitting fraudulent claims where Elite employees were impossibly providing services to multiple children simultaneously.
- Submitting fraudulent claims in the names of multiple individuals, including RNs, who did not provide the services in question, and did know that their identities and credentials were being used.
- Submitting fraudulent claims that had been “upcoded” – that is claims which fraudulently increased the amount Medicaid paid Elite – by materially misrepresenting the level of care provided and the level of licensing for the individual allegedly providing the services. For example, Elite submitted fraudulent claims to Medicaid purporting that an RN (billed at $40/hour) had rendered the services when in fact an licensed professional nurse (billed at $30/hour) and/or personal care service provider (billed at $20/hour) had actually done so.
- Preparing fraudulent supporting documentation for the in-home nursing services that were never provided, including fraudulent patient care charts.
Among the fraudulent claims that Bankhead submitted to Georgia Medicaid for services that were never performed were for services allegedly provided to an infant girl after she had passed away and three children, all under the age of thirteen, who suffered from cerebral palsy or Downs Syndrome. These children were entirely dependent on others to complete the most basic tasks of life—feeding themselves, clothing themselves, bathing, and even standing up to walk.
In addition to the underlying fraud, Bankhead also failed to truthfully and completely disclose her finances to the United States Probation Office as required by her plea agreement. Rather, the information presented at sentencing established that Bankhead entered into a kickback arrangement with another Atlanta-based home health provider under which she “sold” twenty of Elite’s former clients in exchange for receiving a percentage of the Medicaid billings tied to those clients going forward. Such arrangements are generally unlawful under the federal Anti-Kickback Statute.
Bankhead, 43, of Atlanta, Georgia was sentenced by U.S. District Court Judge Thomas W. Thrash, Jr. to five years and three months in federal prison, and three years of supervised release, and ordered to pay $999,999, in restitution. On August 28, 2019, Bankhead pleaded guilty to a criminal information pursuant to a written plea agreement charging her with one count of health care fraud.
This case was investigated by the Department of Health and Human Services, Georgia Medicaid Fraud Control Unit, and Federal Bureau of Investigation.
Assistant U.S. Attorney Alex R. Sistla prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia man sentenced for smuggling protected turtlesRead the Press Release
ATLANTA - A federal judge sentenced Kuo Pin (“Kenny”) Cheng for illegally smuggling protected turtles from Asia, including at least two endangered species, in violation of the Convention on International Trade in Endangered Species Treaty (“CITES”), the Lacey Act, and the Endangered Species Act.
“Illegal trafficking in fish and wildlife is big business all over the globe,” said U.S. Attorney Byung J. “BJay” Pak, “Laws protecting endangered species were enacted to preserve our treasures in the wild. We are committed to working with our law enforcement partners to protect endangered wildlife.”
“This arrest and conviction show what collaboration can achieve to protect threatened and endangered species,” said Aurelia Skipwith, Director of the U.S. Fish and Wildlife Service. “I applaud Service Regional Director Leo Miranda and the office of law enforcement for their collaborative work in leading this effort in conservation of our precious species. We take the business of protecting turtles and other species seriously.”
“This investigation involved inter-agency coordination to uncover an illegal trafficking operation,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors are charged with defending the nation’s mail system from illegal use and we will continue to work with our law enforcement partners to ensure the individuals responsible are brought to justice.”
According to U.S. Attorney Pak, the charges and other information presented in court: The United States and approximately 180 other countries are signatories to CITES, a multilateral treaty that provides a mechanism for regulating the international trade of wildlife and plants whose continued survival is considered threatened by trade. The United States has implemented CITES as part of the Endangered Species Act of 1973, which makes it unlawful, among other things, for any person to import wildlife contrary to the provisions of CITES.
Between October 2018 and January 2019, Cheng received at least 28 shipments from Hong Kong containing more than 150 live turtles. Among the turtles Cheng received were multiple CITES-protected species, as well as two species of turtles—the Asian Spotted Pond turtle (Geoclemys hamiltonii) and Three-Keeled Asian (Melanochelys tricarinata)—that are classified as endangered under the Endangered Species Act. Cheng attempted to avoid detection by having the shipments labeled as “toys” or “truck” and addressed to fake names. After receiving the turtles, Cheng sold them to other collectors in the United States that he met online. Cheng admitted to earning approximately $40,000 from the sales of the illegally imported turtles.
Kuo Pin (“Kenny”) Cheng, 56, of Marietta, Georgia, was sentenced by U.S. District Judge Amy Totenberg, to one year of probation and ordered to forfeit $10,000. On August 21, 2019, Cheng pleaded guilty to one count of unlawfully smuggling turtles in violation of federal law.
This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement, and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Alex R. Sistla 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.
Unemployment insurance task force targets fraud during COVID pandemicRead the Press Release
ATLANTA - A new state-wide, interagency task force focused on combatting unemployment insurance (UI) benefit fraud in the wake of the COVID-19 pandemic is supporting investigating agencies and encouraging citizens to report suspected UI fraud.
“Unemployment insurance provides a lifeline to many Americans facing economic hardships and job losses,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “This type of fraud victimizes not only the intended recipients, but also the employers who pay into the program. Through our partnerships, these criminals will be extradited and prosecuted.”
“The sole purpose for unemployment insurance is to support people suffering during this unprecedented time in our nation’s history. It is unconscionable that individuals are corrupting the unemployment insurance system by essentially stealing benefits from our neighbors who are most in need at this time,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “My hope is that this task force will support law enforcement’s ongoing efforts to quickly identify scammers and bring them to justice, while protecting the integrity of the unemployment benefit system.”
“Every dime of taxpayer money diverted into the pockets of scam artists is less money available to help citizens who truly need assistance during difficult times,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “We’re confident that with the vigilance of our law enforcement partners, we will identify and shut down those who would steal from these programs.”
The Georgia Unemployment Insurance (UI) Fraud Task Force’s mission is to combat fraud schemes targeting the UI benefits program, which is funded by both the federal and the state governments and is administered by the Georgia Department of Labor. In response to the devastating negative economic impacts of the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed into law in March 2020. Among many benefits for citizens and businesses, the CARES Act includes a provision of temporary benefits for individuals who have exhausted their entitlement to regular unemployment compensation, as well as coverage for individuals who are not eligible for regular unemployment compensation, are self-employed or have limited recent work history.
During the COVID-19 pandemic, fraudsters have been perpetrating numerous lucrative UI fraud schemes at a significant rate. State and local law enforcement agencies are at the forefront in uncovering these schemes. The Georgia UI Fraud Task Force supports these agencies by providing assistance with evidence collection, offering guidance investigating complex fraud schemes, and referring cases for federal prosecution, among other needs. Representatives from agencies including the Georgia Department of Labor, the Georgia Bureau of Investigation (GBI), Georgia’s Office of the Attorney General, FBI, the U.S. Secret Service, Homeland Security Investigations (HSI), IRS--Criminal Investigation, the U.S. Postal Inspection Service, Social Security Administration--Office of the Inspector General and all three of Georgia’s U.S. Attorney’s Offices serve on Georgia’s UI Fraud Task Force.
“We place a huge emphasis on maintaining the integrity of the unemployment insurance program and welcome the support of law enforcement agencies across the state to assist in identifying and prosecuting those committing fraud,” said Georgia Labor Commissioner Mark Butler. “These criminals are not only harming those they are taking benefits from but are also slowing down the process for the many Georgians depending on payments to make ends meet during this pandemic.”
“At a time when many American citizens have lost their jobs, or are temporarily out of work because of the COVID-19 pandemic, it is disheartening to think that anyone would fraudulently take advantage of the government funds they deserve,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We will fight this criminal behavior, along with our many partners in law enforcement, to stop anyone who attempts to profit off the backs of those in need.”
“So many Georgians have suffered hardships due to unemployment since the start of the pandemic. The CARES Act was passed to provide relief; however, fraudsters have used this opportunity to steal from the government. The GBI is a proud member of this Task Force and will work diligently to ensure that those who choose to abuse these benefits are investigated and prosecuted,” said Vic Reynolds, GBI Director.
“The Secret Service is proud to partner with so many agencies who are committed to eliminating these fraud and identity theft schemes,” said Steven R. Baisel, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “This task force is particularly important during these unprecedented times when those stolen funds should have been used to help unsuspected victims when they need it most.”
“This taskforce will truly prove that crime doesn’t pay,” said Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta and its partners are committed to hunting down these criminals that are stealing the resources and benefits that have been set aside to help people in our communities.”
Georgians are encouraged to be vigilant, as fraudsters often make use of unsuspecting victims’ bank accounts and logins to funnel illegally obtained unemployment payments. The Georgia UI Fraud Task Force advises the public to exercise caution when receiving emails promising “easy money” or unsolicited online requests to open personal bank accounts and share those account numbers online. Elders and prior victims of identity theft or email compromise are especially vulnerable targets of these schemes.
People can report UI abuse with the Georgia Department of Labor by visiting https://www.dol.state.ga.us/public/uiben/fraud/reportType. Anyone with information about allegations of attempted fraud involving COVID-19 can report potential scams to the National Center for Disaster Fraud (NCDF) by calling 866-720-5721 or by visiting 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 pharmacy operators sentenced to federal prison for more than $4 million WIC fraud schemeRead the Press Release
Three owners and operators of an Atlanta pharmacy have been sentenced to federal prison for a multi-million dollar fraud scheme that targeted the Georgia Women, Infants, and Children (“WIC”) program. The defendants bought WIC vouchers from low-income recipients at a discount and then fraudulently sought reimbursement from the federal government at a higher dollar amount as if they had actually provided nutritious food to those recipients.
“The defendants abused a program intended to assist those most in need and diverted public funds to satisfy their own greed,” said U.S. Attorney Byung J. “BJay” Pak. “Vendors who buy WIC vouchers abuse the trust placed in them to serve pregnant woman and young children, and they will be shut down and prosecuted.”
“This investigation and prosecution should send a strong zero-tolerance message to those individuals engaged in the practice of defrauding the taxpayer funded WIC program,” said Jason Williams, Special Agent-in-Charge, USDA-Office of Inspector General. “It should also serve as a warning to all stores that participate in the WIC program as vendors that fraud and trafficking (purchasing those benefits for cash) will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer-funded programs.”
According to U.S. Attorney Pak, the charges and other information presented in court: Pauline Mediko Badiki and Ferdinand Mediko were siblings who owned and operated Poly-Plex Pharmacy, which is located in the Bankhead neighborhood of Atlanta. Monica Mediko, who was Ferdinand Mediko’s wife, worked there as a pharmacy technician. In 2005, Poly-Plex became an authorized vendor of the WIC program, which is a U.S. Department of Agriculture food grant program administered statewide by the Georgia Department of Public Health. The WIC program provides healthy foods to low-income pregnant women, as well as infants and children up to age five who are nutritionally at risk. WIC recipients receive benefits in the form of paper vouchers, which can be exchanged at authorized vendors only for the healthy foods listed on the vouchers. As part of their participation as authorized vendors, the defendants received training on WIC program rules, including the prohibition on buying vouchers.
From at least 2009 through June 2013, the defendants bought WIC vouchers from low-income mothers for a fraction of their face value instead of providing the infant formula and nutritious food listed on the vouchers. After purchasing the vouchers, the defendants deposited them into their bank accounts as if they had provided recipients with the healthy foods listed on the vouchers and sought reimbursement from the U.S. Department of Agriculture.
During the time frame of the conspiracy, the defendants deposited tens of thousands of WIC vouchers that resulted in approximately $6.5 million in reimbursements from federal funds, which far surpassed the WIC redemptions from much larger big-box grocery stores located just miles away. More than $4 million of these redemptions were fraudulent and not supported by Poly-Plex’s actual inventory of food and infant milk during the same time period.
Pauline Mediko Badiki, 56, of Atlanta, Georgia and Ferdinand Mediko, 58, of Atlanta, Georgia, were sentenced to four years and six months in prison, and Monica Mediko, 53, of Atlanta, Georgia, to three years in prison by U.S. District Judge Eleanor L. Ross. Each defendant was also sentenced to two years of supervised release and a special assessment of $3700, and they will be ordered to pay restitution in an amount to be determined at a later hearing. The defendants were convicted at trial on December 10, 2019 of wire fraud conspiracy and 12 counts each of wire fraud, theft of government funds, and WIC fraud.
This case was investigated by the U.S. Department of Agriculture, Office of the Inspector General.
Assistant U.S. Attorneys Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crimes Section, and Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney Pak announces the appointment of sixteen new Assistant U.S. AttorneysRead the Press Release
ATLANTA – U.S. Attorney Byung J. “BJay” Pak announced the appointment of sixteen new Assistant U.S. Attorneys (AUSA) who will immediately employ their talents to support the Northern District of Georgia’s (NDGA) mission to enforce the law and defend the interests of the citizens we serve in this district.
“We are grateful to have such talented and dedicated professionals answer the call to represent the United States in federal court,” said U.S. Attorney Byung J. “BJay” Pak. “These outstanding Assistant U.S. Attorneys have proven that they are committed to excellence in their service to our country, and the citizens of the Northern District of Georgia.”
The following AUSAs joined our Criminal Division:
- Radka Nations served as an Attorney with DOJ Criminal Division/ Fraud Section, in the Foreign Corrupt Practices Act (FCPA) unit, where she worked on many high profile investigations and received numerous awards, including the DHS 2015 and 2017 Outstanding Financial Investigation Awards. Radka earned her J.D. from the University of Georgia School of Law and her Master of Science in Law from the University of Sofia School of Law in Bulgaria.
- Erin Harris served as a SAUSA assigned to us from the HIDTA program. She was also an AUSA in the General Crimes Unit of the USAO for the Eastern District of Michigan for two years. Prior to entering government service, Erin was an associate with Morgan Lewis & Brockius in Chicago. Erin earned her B.A. in political science from the University of Michigan and her law degree from the George Washington University Law School in Washington, D.C.
- Greg Radics served as an Assistant Chief Counsel for the U.S. Department of Homeland Security – Immigration and Customs Enforcement and served as a SAUSA in our General Crimes Section. Greg previously served a detail to our office (2010-2012) and HSI (as an embedded attorney) and was a Senior Assistant District Attorney in the Northeastern Judicial Circuit for nine years. Greg earned his B.A. in Criminal Justice from the University of Georgia and his law degree from the University of Memphis, Cecil C. Humphreys School of Law.
- Tal Chaiken joins us from Riley Safer Holmes & Cancila LLP, where she was a partner, handling complex civil litigation and white collar criminal matters. Previously, she was an associate with Schiff Hardin LLP, in Chicago. Tal received her B.A. in Economics, with honors, from the University of Chicago, where she was on the Dean’s list all four years. She earned her law degree from the University of Chicago, serving as the Managing Editor of the University of Chicago Legal Forum.
- Sarah Klapman served as a career law clerk for the Hon. Richard Story. She previously worked as a litigation associate at the Atlanta office of Miller & Martin, where she was a member of the Litigation and White Collar & Corporate Investigations Section, and she has also served as a Staff Attorney for the Federal Defender’s Program in Atlanta. Sarah earned her law degree from the University of Virginia School of Law, and she received her B.S., magna cum laude, Phi Beta Kappa, and M.S., both in chemistry, from Furman University.
- D’Juan Jones served as an associate with Wilkinson Walsh + Eskovitz in Washington D.C., where he handled pharmaceutical litigation. Previously, he clerked for Hon. LaShann Dearcy Hall, U.S. District Judge for EDNY, and he was an associate at Sidley Austin LLP in New York. D’Juan received his B.A. from Wake Forest University, where he was a Magnolia Scholar, and he earned his law degree, cum laude, from Howard University, where he was a Staff Editor for the Howard Human & Civil Rights Law Review.
- Mary Webb returned to our office after serving as a Vice President of Litigation with Rooms to Go. Mary was an AUSA in our office from 2013-2018, and before that, an associate at Bondurant Mixson & Elmore LLP in Atlanta. She has also served as a law clerk for Hon. R. Lanier Anderson, U.S. Court of Appeals for the 11th Circuit. Mary received her undergraduate degree in English and Political Science, summa cum laude, Phi Beta Kappa, from the University of Georgia and her law degree from Yale Law School, where she was a Coker Fellow, and an editor of the Yale Journal on Regulation.
- Nicholas Joy previously served our office as a SAUSA with the HIDTA program. Prior to that, Nick served for 7 years as a Trial Counsel with the Navy Judge Advocates General Corps (where he continues to serve as a reservist), handling a variety of legal matters and prosecuting criminal cases. Nick received his B.A., magna cum laude, in History and Classical Studies, from the University of Pennsylvania, and he earned his law degree from Harvard Law School.
- Tyler Mann served as a SAUSA with the HIDTA program. Prior to this, he was an Assistant District Attorney with the DeKalb County District Attorney’s Office for three years, and he worked as an associate at Troutman Sanders LLP for six years. Tyler also served as the Chief of Staff for State Senator Jason Carter and as legal Counsel for the Georgia Senate Democratic Caucus. He received his undergraduate degree, in Biomechanical Engineering and Political Science, from Yale University, and he earned his law degree from the University of Michigan Law School.
- Michael Qin served as an associate with Kellogg, Hansen Todd, Figel & Frederick PLLC in Washington D.C. Prior to that, he served as a law clerk to then-Judge Neil M. Gorsuch of the U.S. Court of Appeals for the 10th Circuit, and he was an Honors Program attorney with the Federal Communications Commission. Michael received a B.S. in Computer Science and another in Applied Mathematics, both with highest honors, from Georgia Tech, and he earned his law degree, magna cum laude, from Harvard Law School, where he was an Executive Editor of the Harvard Law Review.
- Lauren Macon served as a Senior Associate in the Securities Litigation Group of Alston & Bird LLP, where she handled both white collar defense and related civil matters. Lauren received her law degree with Highest Honors, Order of the Coif, from the University of North Carolina, where she also served as the Contributing Editor of the North Carolina Law Review. She received her B.A. from UNC-CH as well, and she was a Summer Clerk for the Hon. Justice Paul Martin Newby of the Supreme Court of North Carolina.
- Rebeca Ojeda previously served as an associate with King & Spalding-Atlanta, where she handled complex and mass torts litigation. Additionally, she has been an active volunteer, serving as the chair of K&S’s pro bono subcommittee, the Team leader of K&S’s United Way Campaign, as Vice President of the Georgia Hispanic Bar Association (which awarded her the Rising Star Award), and as Young Lawyers Division Representative to the Hispanic National Bar Association. Rebecca received her B.A. in Economics and English, cum laude, from Vanderbilt University, and received her law degree, with honors, from the University of Texas School of Law in Austin, where she was the Editor in Chief of the American Journal of Criminal Law.
- Amy Palumbo served as an Assistant District Attorney in the Queens District Attorney’s Office for five years, where she prosecuted major violent crimes. Prior to that, she was a litigation associate with Jones Day, in their New York Office. She earned her law degree from Harvard Law School, where she was a Line Editor for the Environmental Law Review. She also interned with the USAO in Boston during law school. Amy earned her B.A., in Political Science, Psychology and History, cum laude, from Tulane University, where she attended on a full scholarship.
The following AUSA’s joined our Civil Division:
- Tiffany Moore previously served as FLU Coordinator and Asset Forfeiture AUSA in the Western District of North Carolina and as FLU Coordinator and Civil Defensive AUSA in the Southern District of Georgia. Prior to joining the U.S. Attorney’s Office, she was senior law clerk to the Hon. W. Louis Sands, United States District Court Judge for the Middle District of Georgia and practiced commercial and securities litigation at Eversheds Sutherland. Tiffany is a graduate of Spelman College and the University of Georgia School of Law. During her studies, she completed graduate level business and environmental studies coursework with the UGA Terry College of Business in New Zealand and Fiji and an international law curriculum with the ABA/London College of Law.
- Aaron Ross served as Chief of the Litigation Strategy Division of the DeKalb County Law Department, where he worked since 2014. Prior to that, he was a litigation associate at Kilpatrick Townsend & Stockton for six years. Aaron received his B.A. from Northwestern University and his law degree from Emory University School of Law, where he was the Notes and Comment Editor of the Emory Law Journal.
- Trishanda Treadwell was previously a partner with Parker, Hudson, Rainer & Dobbs, LLP. She also worked as an associate with King & Spalding. Trish received her J.D. cum laude from Georgia State University College of Law, where she was the Student Writing Associate Editor of the Law Review, President of the Student Bar Association, and a member of the Board of Visitors. She earned her B.A. cum laude from Oglethorpe University.
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.
- Radka Nations served as an Attorney with DOJ Criminal Division/ Fraud Section, in the Foreign Corrupt Practices Act (FCPA) unit, where she worked on many high profile investigations and received numerous awards, including the DHS 2015 and 2017 Outstanding Financial Investigation Awards. Radka earned her J.D. from the University of Georgia School of Law and her Master of Science in Law from the University of Sofia School of Law in Bulgaria.
India-based VoIP provider and its director indicted for facilitating millions of scam robocalls to AmericansRead the Press Release
ATLANTA – A first-of-its-kind indictment was unsealed today against Indian-based Voice over Internet Protocol (VoIP) provider, E Sampark, and its Director, Gaurav Gupta, who pushed out tens of millions of scam calls to American consumers on behalf of India-based phone scammers. Pursuant to a consent permanent injunction, a federal court has also ordered a Florida-based server farm to stop providing E Sampark and Gupta with servers used to help perpetuate the fraud scheme. The consent permanent injunction seeks to prevent E Sampark and Gupta from further victimizing U.S. consumers through the use of the servers located in Florida.
“The defendants bombarded American consumers with scam calls, causing emotional and financial devastation, including to vulnerable and elderly individuals,” said U.S. Attorney Byung J. “BJay” Pak. “Those who facilitate fraudulent calls into the United States will be investigated and brought to justice.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who defraud taxpayers by impersonating employees of the Internal Revenue Service,” said J. Russell George, the Treasury Inspector General for Tax Administration. “I wish to thank the U.S. Department of Justice and our law enforcement partners involved in this first-of-its-kind indictment. Taxpayers must remain cautious of unsolicited telephone calls from individuals claiming to be Internal Revenue Service employees. If any taxpayer believes they or someone they know has been a victim of an Internal Revenue Service impersonation scam, they should report it to the Treasury Inspector General for Tax Administration at tips.tigta.gov or by calling 1-800-366-4484.”
According to U.S. Attorney Pak, the Indictment, and the Complaint: Defendant Gaurav Gupta directed and operated E Sampark, d/b/a VG-Tech Serve Private Limited, a Voice Over IP (VoIP) company that allegedly sent calls from criminal India-based call centers to victims in the United States, both directly and through VoIP providers located in the United States. From May 2015 to June 2020, the defendants passed tens of millions of scam calls from India into the United States, leading to reported victim losses of over $20 million. The callers purported to be legitimate government agencies and businesses and misled victims over the phone. The callers allegedly used multiple frauds, including Social Security impersonation, IRS impersonation, and loan scams.
As part of a Social Security scam, India-based callers posed as federal agents in order to mislead victims into believing their Social Security number was involved in crimes. Callers threatened arrest and the loss of the victims’ assets if the victims did not send money. The callers directed victims to send cash to aliases used by other members of the fraud network, and to transfer funds via gift cards to the callers. In one instance in November 2019, the callers kept a Marietta, Georgia woman on the phone for over eleven hours while they convinced her that her Social Security number had been compromised, that there was a warrant for her arrest in Texas, and that she should tell no one about the purported investigation. The callers told the victim that her assets were going to be frozen and that she should purchase gift cards in order to protect her money. Per the callers’ directions, the victim went around Cobb County to purchase over $35,000 in gift cards, including Target, GameStop, Sephora, and Nordstrom gift cards. The callers had the victim provide them with the numbers on the back of the cards, which allowed them to steal the funds from her. E Sampark and Gupta allegedly connected the victim with the fraudsters.
As part of the IRS impersonation scam, India-based callers posed as IRS or Treasury officials and defrauded the U.S. residents into believing they owed money to the IRS or would be arrested and fined if they did not pay alleged back taxes, fines, and fees immediately. For example in April 2017, a Georgia resident received numerous calls from an individual who claimed to work for the IRS. A caller told the victim that he owed $28,000 to the IRS in back taxes and that if he did not pay, he would be arrested. After the victim explained that he could not pay the full amount, the caller directed him to send two wire transfers for $500 and $1,990 to two aliases in order to resolve the issue. The victim followed the caller’s instructions, and the funds sent by wire transfer were retrieved by a co-conspirator in South Carolina. Again, E Sampark and Gupta allegedly connected the victim with the fraudsters.
As part of the loan scam, India-based callers misled American consumers into believing that the callers worked for lending institutions and that the victims were eligible for fictitious loans. The India-based callers directed the victims to pay upfront fees to demonstrate their ability to repay the loan. At times, the callers directed victims to provide their bank account information and made it appear as though they had deposited funds into the victims’ accounts. The callers then told the victims to withdraw the funds and transfer them via wire transfer and gift cards. After the victims sent the funds, the deposits that the callers supposedly made bounced. The victims received nothing in return.
Defendants Gupta and E Sampark maintained approximately sixty servers in Florida that the company used at times to connect criminal India-based callers with American consumers. The servers contained over 130,000 recordings of scam calls, including robocall voicemail recordings and conversations between the India-based scammers and U.S.-based victims.
Northern District of Georgia Assistant U.S. Attorney, Jolee Porter, who is currently detailed to the DOJ’s Consumer Protection Branch, and Assistant U.S. Attorney Elizabeth McBath are prosecuting the criminal case. Northern District of Georgia Assistant U.S. Attorney Armen Adzhemyan is handling the civil injunction matter.
The U.S. Treasury Inspector General for Tax Administration (TIGTA), Fraud and Schemes Division is investigating the case, with the assistance of the Social Security Administration Office of Inspector General; Homeland Security Investigations; Department of Homeland Security Office of Inspector General; the Houston, Texas Police Department; and the Matagorda County, Texas Sheriff’s Office.
U.S. Attorney Pak thanked TIGTA for its investigation of the case, and the DOJ’s Consumer Protection Branch for their substantial coordination efforts. He also expressed appreciation to AT&T’s Global Fraud Management Organization for apprising the U.S. Attorney’s Office of the alleged offenses.
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.
The public should exercise caution with any caller who claims to be a government employee. Government agencies will never threaten you with immediate arrest or other legal action if you do not send cash, retail gift cards, wire transfers, or internet currency. They will also never demand secrecy from you in resolving a debt or any other problem. If you need to send a payment to IRS or Social Security, the agency will send a letter with payment options and appeal rights. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
The public is reminded that gift cards are for gifts, not for payments. If a stranger purporting to be a legitimate business or government agency demands payment with a gift card, hang up. Anyone who demands payment by gift card is a scammer. Once you buy the gift card, the callers typically demand the number on the back of the gift card. That number lets the caller immediately steal the money loaded onto the card. For more information, visit https://www.consumer.ftc.gov/articles/paying-scammers-gift-cards
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.
Gunman sentenced to 27 years for armed robberies that targeted Asian-run businessesRead the Press Release
ATLANTA – A federal judge has sentenced Tabyron Rashad Smith, the first of two gunmen convicted for robbing nine Asian owned-and-operated businesses in Atlanta, Doraville, Duluth, Roswell, Stone Mountain, and Norcross in October and November 2017, to 27 years in prison.
“Smith and his fellow gunman, Dravion Sanchez Ware, terrorized, threatened, and injured their innocent victims,” said U.S. Attorney Byung J. “BJay” Pak. “This lengthy prison sentence hopefully provides some peace to the victims by ensuring Smith cannot terrorize anyone for decades to come.”
“Once again, the FBI would like to thank our many state and local law enforcement partners for helping to bring this month-long terror in the Asian business community to an end,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “To the victims, some of whom were shot and some of whom were pistol-whipped, your emotional scars can never be erased. But we can promise you these two men will not threaten you for a long, long time.”
“The GBI Crime Lab was instrumental in this case. Expert analysis and testimony helped lead to a successful prosecution. The GBI is committed to provide the highest quality forensic services in all cases. For over a month, these gang members targeted and terrorized the Asian business community. This sentence is evidence that this behavior will not be tolerated in the state of Georgia,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
“The fact that Tabyron Smith has been sentenced is a win for the victims, metro-Atlanta, law enforcement and the criminal justice system,” City of Atlanta Interim Chief Rodney Bryant. “The collaborative efforts from multijurisdictional agencies is a testament to the hard work that goes into arresting, prosecuting and keeping hardened criminals off our streets. Additionally, I look forward to continuing collaborations to make our communities safe.”
“This effort highlights the great cooperation between our local and federal law enforcement partners. As a result of this combined effort this violent predator will no longer be a threat to the community,” said Chief Chuck Atkinson, Doraville Police Department.
“The successful outcome and sentencing of these cases is a testament of the importance of agencies working together. Unlike police departments, criminals are not bound by jurisdictional boundaries and these cases are proof that great things happen when agencies proactively share information, work together, and compare cases. The State of Georgia is now a safer place thanks to the cooperation between local, state, and federal partners that enabled the removal of these dangerous criminals from our communities,” said Chief Kenneth DeSimone. Sandy Springs Police Department.
According to U.S. Attorney Pak, the charges, and other information presented in court: Between October 7 and November 10, 2017, Smith and Ware, both of whom are members of the Bloods, committed multiple armed robberies of Asian-run businesses in Metro-Atlanta. Smith participated in at least nine armed robberies, including robberies of three businesses in Atlanta, two in Doraville, and one business in each of the following cities: Norcross, Duluth, Stone Mountain, and Roswell, Georgia. Ware shot victims in the Doraville robbery and pistol-whipped several other victims in the other robberies.
Smith was captured on November 21, 2017, after the FBI led a multi-jurisdictional investigation that included participation of the Georgia Bureau of Investigation, the Doraville Police Department, the Fulton County Police Department, the Gwinnett County Police Department, the Atlanta Police Department, the Roswell Police Department, and the Sandy Springs Police Department.
Smith pled guilty on July 23, 2019, to one count of conspiracy to commit Hobbs Act robberies and four counts of discharging or brandishing a firearm during several of the robberies. The shooter, Ware, was convicted by a jury on August 2, 2019, for conspiracy to commit the Hobbs Act robberies, five counts of Hobbs Act robbery, and five counts of discharging or brandishing a firearm during the robberies.
Tabyron Rashad Smith, 25, of Atlanta, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to serve 27 years in prison followed by five years on supervised release and to pay restitution in the amount of $135,951.81.
Sentencing for Dravion Sanchez Ware, 25, of Atlanta, Georgia is scheduled for 10:00 a.m., January 7, 2021.
Assistant U.S. Attorney Bret R. Hobson and former Assistant U.S. Attorney Timothy H. Lee prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] 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.
Pharmacy pays $250,000 to resolve Controlled Substances Act violationsRead the Press Release
ATLANTA – Caduceus USA Medical Pharmacy, LLC (“Caduceus”) has agreed to surrender its DEA registration and pay $250,000 to resolve allegations that it failed to keep proper records of the controlled substances that it purchased, maintained and dispensed in violation of the Controlled Substances Act (CSA). These requirements are designed to prevent the diversion of controlled substances. Prior to surrendering its registration, Caduceus supplied controlled substances to a chain of occupational medicine clinics operated by an affiliated entity.
“We trust pharmacies to scrupulously follow the CSA’s recordkeeping requirements so that the DEA can carry out its mission to prevent the diversion of controlled substances into illicit channels,” said U.S. Attorney Byung J. “BJay” Pak. “When pharmacies don’t live up to their obligations, our office will vigorously pursue the violations using a variety of enforcement mechanisms.”
“This pharmacy spun a web of deception when it failed to keep proper records of controlled substances it purchased, maintained and dispensed,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Such careless behavior allows for substances to be diverted and sold on the black market with no measure of accountability. The surrender of the pharmacy’s DEA registration and monetary fine are proactive steps that DEA Diversion and its law enforcement partners will take to discourage other negligent healthcare providers from engaging in similar unlawful behavior.”
The government alleges that Caduceus failed to keep accurate records of the controlled substances that it purchased and dispensed, failed to complete the required biennial inventory, failed to maintain records of controlled substances separately from its ordinary business records, and distributed a controlled substance not authorized by its registration. Caduceus has acknowledged that it dispensed and distributed controlled substances in noncompliance with 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, and requires individuals and entities registered with the DEA to maintain complete and accurate records of all controlled substances and security systems so that no controlled substances are lost, stolen, or inappropriately dispensed. Violations of the recordkeeping requirements subject DEA registrants to civil monetary penalties of up to $14,502 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 Mellori Lumpkin-Dawson.
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 Police Officer and Gangster Disciples Member Sentenced to PrisonRead the Press Release
A former DeKalb County, Georgia, police officer and member of the Gangster Disciples was sentenced to 15 years in prison followed by five years of supervised release for racketeering conspiracy involving murder, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia.
Vancito Gumbs, 28, of Stone Mountain, Georgia, claimed to be a “hitman” for the Gangster Disciples while at the same time serving as a police officer. Evidence showed that Gumbs relayed sensitive law enforcement information to the gang and provided a firearm to a fellow gang member.
According to the charges and other information presented in court, the Gangster Disciples are a national gang with roots in Chicago dating back to the 1970s. The gang is highly structured, with a hierarchy of leadership positions known as “Positions of Authority” or “POAs.” The gang strictly enforces rules for its members, the most important of which is “Silence and Secrecy” – a prohibition on cooperating with law enforcement. Violations of the rule are punishable by death.
Evidence at trial showed that the Gangster Disciples were responsible for 24 shootings from 2011 through 2015, including 12 murders. Gumbs, who had been photographed flashing a hand sign used by the Gangster Disciples, was a self-professed “hitman” for the gang while serving as a police officer. While he was employed as a DeKalb County police officer, federal agents captured Gumbs on recorded phone calls with the “Chief Enforcer” for the Georgia Gangster Disciples. Evidence showed that during these calls, Gumbs relayed law enforcement information to the gang and provided a firearm to a fellow gang member. On later calls, the Chief Enforcer noted that he had Gangster Disciples police officers at his disposal.
Among other criminal activity, the Gangster Disciples engaged in the commission of murders. The jury found that Gumbs joined or remained in the racketeering conspiracy while knowing and agreeing that the gang engaged in murder.
This case was investigated by the FBI, Atlanta Police Department, and DeKalb County Police Department.
Principal Deputy Chief Kim S. Dammers of the Criminal Division’s Organized Crime and Gang Section (OCGS), Assistant U.S. Attorneys Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, Erin N. Spritzer of the Northern District of Georgia, and Trial Attorney Conor Mulroe of OCGS prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former DeKalb County police officer and Gangster Disciples member sentenced to prisonRead the Press Release
ATLANTA - Vancito Gumbs, a former DeKalb County police officer and member of the Gangster Disciples, has been sentenced for racketeering conspiracy involving murder.
“Vancito Gumbs moonlighted as a member of the Gangster Disciples while serving as a DeKalb County Police Officer,” said U.S. Attorney Byung J. “BJay” Pak. “His brazen disregard for his sworn duty as a police officer, betrayal of the public’s trust, and disregard for human life warrants the significant sentence he received in this case.”
“It is reprehensible for a law enforcement officer sworn to serve and protect the public to instead serve a ruthless gang that has preyed upon, and threatened the well-being of the good people in his community,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Because of the efforts of the FBI's Safe Streets Gang Task Force and its state and local partners, our community is safer and Gumbs is no longer a part of it.”
“No one is above the law and this sentencing demonstrates that everyone is held accountable for their actions even if they wear a badge,” said DeKalb Police Chief Mirtha V. Ramos.
According to U.S. Attorney Pak, the charges and other information presented in court: The Gangster Disciples are a national gang with roots in Chicago dating back to the 1970s. The gang is highly structured, with a hierarchy of leadership posts known as “Positions of Authority” or “POAs.” The gang strictly enforces rules for its members, the most important of which is “Silence and Secrecy” – a prohibition on cooperating with law enforcement. Violations of the rule are punishable by death. Evidence at trial showed that the Gangster Disciples were responsible for twenty-four shootings from 2011 through 2015, including twelve murders.
Gumbs, who had been photographed flashing a hand sign used by the Gangster Disciples, was a self-professed “hitman” for the gang while serving as a police officer. While he was employed as a DeKalb County Police Officer, federal agents captured Gumbs on recorded phone calls with the “Chief Enforcer” for the Georgia Gangster Disciples. Evidence showed that during these calls, Gumbs relayed law enforcement information to the gang and provided a firearm to a fellow gang member. On later calls, the Chief Enforcer noted that he had Gangster Disciples police officers at his disposal.
Vancito Gumbs, 28, of Stone Mountain, Georgia, was sentenced to 15 years of imprisonment, followed by five years of supervised release. Gumbs was convicted on May 16, 2019, of the offense of RICO conspiracy following a jury trial.
This case was investigated by the Federal Bureau of Investigation, Atlanta Police Department, and DeKalb County Police Department.
Kim S. Dammers, Principal Deputy Chief of the Department of Justice Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorneys Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, and Erin N. Spritzer of the Northern District of Georgia, and Department of Justice Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang 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.
Atlanta woman charged with unemployment insurance benefit fraud and identity theftRead the Press Release
ATLANTA - Kadeidra Ra'Shawon White has been arraigned on federal charges of wire fraud, aggravated identity theft, and possession of fifteen or more unauthorized access devices.
“During the COVID-19 pandemic, unemployment benefits have provided a lifeline to many Americans facing economic hardships and job losses,” said U.S. Attorney Byung J. “BJay” Pak. “This defendant lined her pockets with this money and drained critical resources when they were most needed to combat the financial impact of the pandemic.”
“An important mission of the U.S. Department of Labor, 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 and state workforce agency partners to pursue individuals who seek to undermine the integrity of the unemployment insurance program,” said Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.
“In a time of vulnerability in our country, Postal Inspectors are ever vigilant in bringing to justice individuals who exploit the Covid-19 crisis for their own financial gain,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “An important mission of the U.S. Postal Inspection Service is to protect the integrity of the U.S. Mail system and we will continue to work with our law enforcement partners to investigate and hold criminals accountable for their illegal activities.”
“This investigation and subsequent indictment demonstrates the commitment the Secret Service and our law enforcement partners have in aggressively pursuing those who commit access device fraud and identity theft,” said Steven R. Baisel, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “These charges prove our continuing resolve to eliminate corruption, particularly when the funds should have been used to help our neediest families.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In response to the COVID-19 pandemic, on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act created a temporary federal program that provides up to 39 weeks of unemployment benefits and also instituted a temporary additional unemployment benefit of $600 per week.
From at least June 2020, through October 8, 2020, White is alleged to have filed fraudulent online applications for unemployment benefits with the States of Arizona, Ohio, and Nevada. The online applications were filed in victims’ names without their permission and included the victims’ dates of birth, Social Security numbers, and other personally identifiable information.
As a result of the online applications, unemployment benefits were issued in the victims’ names and transferred onto debit cards. The debit cards were then mailed to addresses within the Atlanta area that were associated with or accessible to the defendant. It is further alleged that on or about October 8, 2020, the defendant possessed at least fifteen unauthorized access devices, including Social Security numbers and debit cards.
Kadeidra Ra'Shawon White, 27, of Clarkston, Georgia, was arraigned before U.S. Magistrate Judge Alan J. Baverman, charged with seven counts of wire fraud, seven counts of aggravated identity theft, and one count of possession of fifteen or more unauthorized access devices. White was indicted by a federal grand jury on October 28, 2020. 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. Department of Labor, Office of Inspector General, U.S. Postal Inspection Service, and U.S. Secret Service.
Assistant U.S. Attorney Kelly K. Connors 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 Director of Security sentenced to prison for defrauding hospital to acquire firearmsRead the Press Release
ATLANTA - Russell Richardson has been sentenced for fraudulently using hospital funds to acquire 93 firearms for profit as well as his personal use.
“Richardson abused his position as the hospital’s Security Director and manipulated the system to acquire firearms for his personal benefit,” said U.S. Attorney Byung J. “BJay” Pak. “He fraudulently caused the hospital to spend money that should have gone towards the purchase of medical necessities, not to line his pockets.”
“Mr. Richardson betrayed the trust of his position” said Arthur Peralta, Special Agent in Charge of ATF Atlanta. “This sentence should send a strong message to anyone who would set aside their values, ethics and common sense in a similar fashion.”
According to U.S. Attorney Pak, the charges and other information presented in court: While Richardson was the Director of Security at DeKalb Medical Center, Inc., he received authorization to purchase a few firearms for the Security Department. Between June 2016 and April 2018, Richardson placed additional orders for approximately 93 firearms and falsely represented to the vendor that the firearms were likewise for the department.
The vendor invoiced the hospital for the additional firearms and provided the invoices to Richardson. He then fraudulently caused the hospital to mail payments to the vendor by submitting fake invoices that listed false descriptions of the items purchased. Richardson took possession of all the firearms and sold many them for 100% profit while keeping some for use in gun classes he taught.
Russell Richardson, 44, of Columbia, South Carolina, was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to one year, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $83,275.21.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Tracia M. King prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former supervisor in DeKalb County’s Tax Commissioner’s Office sentenced to prison for bribery and blackmailRead the Press Release
ATLANTA - Gerald D. Harris, a former supervisor in DeKalb County’s Tax Commissioner’s Office, has been sentenced to two years in federal prison for accepting bribe payments from customers to unlawfully register vehicles and for attempting to blackmail a bribe payer by threatening to inform on her to the FBI.
“By accepting bribe payments, Harris sold his integrity for money – and, in doing so, betrayed the trust of the citizens of DeKalb County,” said U.S. Attorney Byung J. “BJay” Pak. “Then, in a truly bold display of audacity, Harris tried to blackmail one of the individuals who had previously paid him bribes.”
“Harris' flaunting of the law tarnished every government official and erodes the public's trust in their positions,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Now we must work even harder with our partners in law enforcement to regain that trust and hopefully this sentencing is a step in that direction.”
“Mr. Harris traded his integrity for money and, in doing so, dishonored the hard work and dedication exemplified by the vast majority of DeKalb County employees. Today, Mr. Harris is being held accountable for his crimes. The DeKalb County District Attorney’s Office, along with its law enforcement partners, will continue to seek and root out corruption, restoring the public’s trust in its government,” said DeKalb County District Attorney Sherry Boston.
“I am happy this matter is concluding. Our office will continue to be vigilant in guarding the public trust and serving the citizens of DeKalb County,” said Irvin Johnson, DeKalb Tax Commissioner.
According to U.S. Attorney Pak, the charges, and other information presented in court: the DeKalb County Tax Commissioner’s Office is an agency of DeKalb County, Georgia responsible for the billing and collection of property taxes, processing of homestead exemptions, and collecting delinquent taxes. In addition, the Motor Vehicle Division of the DeKalb County Tax Commissioner’s Office handled all aspects of motor vehicle registrations, including: (a) managing the collection of motor vehicle taxes, (b) issuing vehicle tags and titles, and (c) processing vehicle registration renewals for citizens and businesses located in DeKalb County.
From July 2017 to November 2019, Harris served as the Supervisor of Tax Tag Clerks for the DeKalb County Tax Commissioner’s Office. In that position, Harris oversaw the Tax Commissioner - North Office’s clerks who processed motor vehicle registrations and renewals for customers.
From approximately November 2018 to November 2019, Harris accepted bribe payments from customers to unlawfully register vehicles or renew vehicle registrations. For example, Harris accepted bribe payments:
- To register vehicles to individuals who did not have Georgia driver’s licenses or identification cards as required, typically in exchange for $200 per vehicle;
- To register vehicles that did not have the required accompanying documentation (such as: titles or Forms MV-1 title/tag application), typically in exchange for $500 to $1,000 per vehicle; and
- To renew vehicles that had not passed emissions tests by falsely entering that the vehicles had emissions exemptions, typically in exchange for $100 per vehicle.
In total, Harris accepted more than $35,000 in bribe payments.
In addition to accepting bribe payments, Harris also attempted to blackmail one of the individuals who had been paying him bribe money. On November 18, 2019, DeKalb County Tax Commissioner’s Office fired Harris for accepting bribe payments (as fully detailed above). On the same date, Harris admitted to the FBI that he had accepted thousands in bribe payments in exchange for illegally registering/renewing vehicles for several people, including a person identified as Individual-1.
On December 12, 2019, Harris met with Individual-1 at an Atlanta gas station. During the meeting, Individual-1 (who did not know that Harris had been fired) gave Harris registration documentation so that Harris could register four vehicles. Indvidual-1 gave Harris checks and cash to cover the costs of the required fees and taxes for each vehicle. Given that Harris no longer worked for the DeKalb County Tax Commissioner’s Office, Harris obviously could not register the four vehicles for Individual-1. Nevertheless, Harris accepted and kept the money from Individual-1.
Then on December 17, 2019, Individual-1 sent a series of text messages to Harris requesting that Harris return the registration documentation and money. On December 17 and 18, 2019, Harris sent a series of text messages to Individual-1 where Harris stated that: (a) he was under investigation by the FBI, (b) the FBI has a video of Harris and Individual-1 meeting, (c) “[a]ll of us can be in trouble,” (d) Harris needed to know “how much” money will he be paid not to give information to the FBI, and (e) Harris is “not going to prison empty handed. It’s that simple.”
On July 14, 2020, Gerald D. Harris, 51, of Fulton County, Georgia, pleaded guilty to federal program bribery and blackmail. Based on that conduct, the Court sentenced Harris to two years in prison, and three years of supervised release.
The FBI, DeKalb County District Attorney’s Office, Georgia Department of Revenue, and DeKalb County Tax Commissioner’s Office investigated this case.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Assistant U.S. Attorney Nicholas Hartigan prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former corrections officer pleads guilty providing drugs to prison inmatesRead the Press Release
ROME, Ga. – Former correctional officer Michael L. Jones pleaded guilty to accepting bribes to provide prison inmates with methamphetamine, marijuana, and tobacco, all of which were destined to be smuggled into Floyd County Correctional Institution (“FCCI”) in Rome, Georgia.
“Correctional officers across the state serve our citizens by faithfully executing their duties with integrity,” said U.S. Attorney Byung J. “BJay” Pak. “Jones, however, violated both the oath of his office and the law when he provided drugs to prison inmates. As a result, Jones must now account for his betrayal of trust.”
“Jones jeopardized the safety of staff and inmates by smuggling drugs into the Floyd County Correctional Institution and his actions also fostered criminal activity inside and outside the facility,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “By violating his sworn oath he betrayed every honest, hardworking corrections officer.”
“The GDC maintains a zero-tolerance policy for individuals who choose to disregard their oath and jeopardize our non-negotiable mission of public safety. We appreciate the support of our federal partners to see that justice is served on this former officer.”
According to U.S. Attorney Pak, the charges, and other information presented in court: the Floyd County Correctional Institution (“FCCI”) in Rome, Georgia is a medium-security prison that houses state and county offenders. FCCI also provides a general labor force that supports Floyd County Government, including employing inmates to work at the Rome/Floyd Recycling Center.
From approximately June 20, 2017 to September 26, 2019, Jones served as a Floyd County Corrections Officer. During his service, Jones supervised inmates detailed to work at the recycling center.
From that position, from approximately April to September 2019, Jones executed a conspiracy in which he collected contraband packages from the friends and families of prison inmates. For a price (usually $200 per package), Jones delivered the packages to inmates who were detailed to work at the Floyd County Recycling Center. Thereafter, the inmate/s smuggled the methamphetamine, marijuana, and tobacco contained in the packages into FCCI. Typically, the inmates or their associates paid Jones via Cash App, a mobile payment service based in San Francisco, California.
For example, on September 26, 2019, Jones was assigned to oversee a group of inmates who had been detailed to work at the Rome/Floyd Recycling Center. On that date, Jones intended to deliver several contraband packages to an inmate on the work detail; however, law enforcement thwarted Jones’s plan. In particular, law enforcement officers caught Jones with: (a) several packages containing marijuana and tobacco in his boots, and (b) three packages containing marijuana and more than 13 grams of methamphetamine in his truck. All of the contraband packages were tightly wrapped with black electrical tape. Based on that conduct, Jones was arrested.
The U.S. Attorney’s Office charged Michael L. Jones, 31, of Chattooga County, Georgia, with conspiratorial drug trafficking and extortion under the color of official right. Jones pleaded guilty to both charges.
Federal Bureau of Investigation and Georgia Department of Corrections are investigating this case.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, is prosecuting the case. Former Assistant U.S. Attorney DeLana Jones previously 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.
Local businessman pleads guilty to bribing IRS Agent to avoid paying back taxesRead the Press Release
ATLANTA – Local business owner Dauda Saibu has pleaded guilty to attempting to pay over $15,000 in bribe money to an IRS Revenue Agent to reduce his federal taxes.
“Rather than pay his taxes like every other law-abiding American, Saibu attempted to bribe an IRS Revenue Agent,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to the prompt reporting of the agent, Saibu was exposed and his scheme ended with him now facing time in prison.”
“The act of bribery is an attempt to corrupt the administration of the Internal Revenue laws,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Any such attempt will be aggressively investigated and prosecuted to preserve the integrity of the American tax system.”
According to U.S. Attorney Pak, the charges and other information presented in court: As a result of an audit of Saibu's 2014 tax return, the IRS calculated that Saibu owed approximately $187,000 in back taxes. On October 11, 2019, Saibu met with a Revenue Agent to discuss his 2014 tax return. At the end of the meeting, Saibu attempted to give the Revenue Agent a cash bribe.
The Revenue Agent properly reported Saibu’s bribe offer and subsequently agreed work with federal law enforcement authorities. On October 22, 2019, Saibu had two meetings with the Revenue Agent to discuss the results of the IRS’s audit. During these audio and video recorded meetings, Saibu proposed that if the Revenue Agent reduced his tax liability to 20% of the actual amount owed, Saibu would pay the Revenue Agent a $10,000 cash bribe. To memorialize the deal, Saibu wrote: (a) “$10,000” on a piece of paper and gave it the Revenue Agent; and (b) “20% of total amount I owed $187,000” on another piece of paper. After a brief negotiation, Saibu offered to pay the Revenue Agent an additional $5,000, for a total of $15,000.
On October 23, 2019, Saibu again met with the Revenue Agent. During the audio and video recorded meeting, Saibu paid the Revenue Agent $10,000 in cash in exchange for the Revenue Agent reducing the amount Saibu owed in back taxes from approximately $187,000 to $47,485.33. Saibu also confirmed that he would pay the Revenue Agent an additional $5,000 at a later date.
On February 28, 2020, Dauda Saibu, 63 of Atlanta, Georgia, was charged via criminal information with bribing a federal official and pleaded guilty to that charge today. Sentencing has not yet been scheduled.
This case is being investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorneys Jeffrey W. Davis, Public Integrity and Special Matters section chief, and David A. O'Neal 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.
Metro Atlanta brothers sentenced to federal prison for gun traffickingRead the Press Release
ATLANTA – A pair of Union City, Georgia, brothers have been sentenced after pleading guilty to numerous federal firearms offenses. Antonio Turrentine, a convicted felon, was sentenced for dealing firearms without a license and possessing firearms after having been convicted of a felony offense. His older brother, Dominique Turrentine, was sentenced for unlicensed firearms dealing.
“The Turrentine brothers sought to trade in firearms and illegal drugs; conduct that often fuels violence and death in our communities,” said U.S. Attorney Byung J. “BJay” Pak. “Smart and proactive work by federal law enforcement ensured that the Turrentines will pay for their crimes rather than profit from them.”
“Placing guns in the hands of criminals is a particularly insidious offense,” said Arthur Peralta, Special Agent in Charge of ATF Atlanta. “Turrentine, and others like him, circumvent the gun laws that are designed to protect communities and supply guns that are sometimes used to victimize innocent people and terrorize our communities.”
According to U.S. Attorney Pak, the charges and other information presented in court: between August 2019 and January 2019, Antonio Turrentine sold a total of 32 firearms, including assault rifles, shotguns, and semi-automatic pistols loaded with large capacity magazines, to an informant participating in an ATF-sting operation. Turrentine sold several stolen guns, including one that had been used in a murder. Turrentine knew which of the guns had been reported stolen, and he advised the informant to “ship” those particular weapons out-of-state.
During some of the gun deals, Turrentine was accompanied and assisted by his older brother, Dominique Turrentine. Along with the guns, the Turrentine brothers occasionally sold illegal drugs, specifically marijuana and methamphetamine, to the informant while armed. At no time was either brother licensed by ATF to engage in the business of selling firearms. Additionally, Antonio Turrentine was specifically prohibited from possessing firearms because he had been convicted of a drug trafficking offense in 2016. At the time of their federal crimes, both men were on probation for having trafficked drugs in Oklahoma.
The Turrentine brothers were arrested on February 27, 2020, after arriving at an agreed-upon location where they expected to sell guns and a pound of marijuana. At the time of their arrests, both men were carrying loaded semi-automatic pistols. The marijuana was concealed inside a Girl Scouts cookies box.
Antonio Turrentine, 29, of Union City, Georgia, was sentenced on July 29, 2020, by U.S. District Judge J. P. Boulee to 10 years in prison followed by three years of supervised release.
Dominique Turrentine, 30, also of Union City, Georgia, was sentenced on November 5, 2020, by U.S. District Judge J. P. Boulee to three years, six months in prison. His sentence will be followed by two years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Georgia Department of Community Supervision.
Assistant U.S. Attorney Theodore S. Hertzberg 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.
This case was also brought as part of Project Guardian, a national Department of Justice initiative to reduce gun violence and enforce federal firearms laws, including those related to firearms trafficking. More information about Project Guardian can be found at https://www.justice.gov/projectguardian.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office for the Northern District of Georgia will monitor voting procedures in Fulton and Gwinnett CountiesRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia and the Department of Justice (”DOJ”) announced plans for voting rights monitoring in Fulton and Gwinnett Counties for the Nov. 3, 2020 general election. The DOJ historically has monitored in jurisdictions in the field on election day, and is again doing so this year. The department will also take complaints from the public nationwide regarding possible violations of the federal voting rights laws through its call center.
“Every citizen must be able to vote without interference or discrimination,” said U.S. Attorney Byung J. “BJay” Pak. “On Election Day, Civil Division staff from my office will be monitoring voting procedures at polling places throughout Fulton and Gwinnett Counties. Free and fair elections are critical to our democracy, and my office will continue to devote resources to protect this fundamental right.”
“Federal law entrusts the Civil Rights Division with protecting the right to vote for all Americans,” said Eric S. Dreiband, Assistant Attorney General for the Civil Rights Division. “Our federal laws protect the right of all American citizens to vote without suffering discrimination, intimidation, and harassment. The work of the Civil Rights Division around each federal general election is a continuation of its historical mission to ensure that all of our citizens can freely exercise this most fundamental American right.”
The Civil Rights Division enforces the federal voting rights laws that protect the rights of all citizens to access the ballot. Since the passage of the Voting Rights Act in 1965, the division has regularly monitored in a variety of elections around the country throughout every year to protect the rights of all voters, and not just in federal general elections.
On Nov. 3, the United States Attorney’s Office and the Civil Rights Division plan to send personnel to two jurisdictions in the Northern District of Georgia to monitor for compliance with the federal voting rights laws.
As in past years, monitors will focus on compliance with the Voting Rights Act, and the other federal voting rights laws enforced by the division. Monitors will include civil rights personnel from the Civil Rights Division and civil personnel from the U.S. Attorney’s Office. Civil Rights Division personnel and the U.S. Attorney’s Office will maintain contact with state and local election officials.
The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act, and the Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
On Election Day, Civil Rights Division personnel will be available all day to receive complaints from the public related to possible violations of the federal voting rights laws by a complaint form on the department’s website https://civilrights.justice.gov/ or by telephone toll-free at 800-253-3931.
Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or submit a complaint through a link on the department’s ADA website, at https://www.ada.gov/.
Complaints related to disruption at a polling place should always be reported immediately to local election officials (including officials in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.
Last week, the Justice Department announced its overall plans for the general election to protect the right to vote and secure the integrity of the voting process through the work of the Civil Rights Division, Criminal Division, National Security Division, and U.S. Attorney’s Offices.
More information about the federal civil rights laws is available on the Civil Rights Division’s website at https://www.justice.gov/crt.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
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.
Managing partner of Chicago travel agency pleads guilty to computer password traffickingRead the Press Release
ATLANTA - Gennady Podolsky, a dual Ukrainian and American citizen, and managing partner of Vega International Travel Services, Inc., has pleaded guilty to trafficking in computer passwords.
“Companies or individuals who use travel agents trust them to work in their best interests,” said U.S. Attorney Byung J. “BJay” Pak. “Podolsky violated that trust when he trafficked in passwords associated with Delta Air Lines SkyBonus accounts without authorization, fraudulently accruing Delta SkyBonus points for the purchase of eCert tickets. Corrupt individuals who engage in fraudulent activity will be caught and prosecuted.”
“There are victims when someone fraudulently accumulates frequent flyer miles in the travel industry. Large corporations, like Delta Air Lines, lose significant profits,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This case is an example of how the FBI will do everything in its power to protect companies and arrest anyone who conducts such corrupt behavior.”
According to U.S. Attorney Pak, the charges and other information presented in court: Vega International Travel Services, Inc. (“Vega Travel”) was a small, full service travel agency located in Chicago, Illinois. Vega Travel's services included booking air travel for its clients, many of whom were living abroad. Podolsky was Vega Travel’s managing partner and lead travel agent.
Delta Air Lines is a major United States airline headquartered in Atlanta, Georgia. Delta utilizes computer servers for electronic ticket management and email messaging. Delta also operates a frequent-flyer program for individuals called SkyMiles, and a similar program for businesses called SkyBonus, that allows individuals and businesses to earn points for free travel and other valuable perks.
Enrolled businesses can earn points under the SkyBonus program at the same time traveling passengers earn points under the SkyMiles program. Enrolled businesses receive a unique user ID and password, and can redeem accrued Sky Bonus points for flight reward certificates, ticket upgrades, and other benefits. The reward certificates for free air travel are requested through the SkyBonus website. Delta issues the certificates, known as “Delta eCerts,” via email to the recipient's email address. To redeem an eCert for free travel, the reward recipient enters an eCert number during the booking process and selects an eligible flight.
Podolsky created a bogus account under the name of "RGI International" in order to fraudulently accrue SkyBonus points. Podolsky also caused others to use aliases in their communications with Delta. Podolsky further transferred the password for RGI International’s bogus SkyBonus account to a Vega International Travel Service, Inc. employee, in order for the employee to unlawfully access Delta's SkyBonus computer system and book Vega's customers for air travel on Delta.
In so doing, Podolsky caused the Sky Bonus account number for "RGI International" to be associated with those customers' tickets, even though those customers were not employees of any entity called RGI International. By unlawfully transferring the password to RGI International's bogus account, Podolsy ensured the account fraudulently accrued Delta SkyBonus points for the purchase of eCert tickets.
Sentencing for Gennady Podolsky, 44, of Chicago, Illinois is scheduled for January 27, 2021, at 11:00 a.m. before U.S. District Judge Steve C. Jones. As part of the plea agreement, Podolsky has agreed to pay $1,000,000 as restitution to Delta Air Lines prior to sentencing and has further agreed not to engage in any business with Delta Air Lines or any company associated with Delta Air Lines at any time in the future.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Bernita Malloy, John S. Ghose and Glenn D. Baker 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.
United States seizes more domain names used by foreign terrorist organizationRead the Press Release
ATLANTA – The United States has seized “Aletejahtv.com” and “kataibhezbollah.com,” two websites that were unlawfully utilized by Kata’ib Hizballah, a Specially Designated National and a Foreign Terrorist Organization.
“We will be steadfast in protecting our electronic infrastructure and commerce system from use by terrorist groups,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia. “This seizure shows that we will continue to leverage our national reach to stop these groups from using U.S.-based resources to further their terrorist agenda.”
“Seizures like these are critical to preventing designated entities and terrorist organizations from using U.S. websites to recruit new members and promote their twisted world views,” said Assistant Attorney General for National Security John C. Demers. “While this case is a reminder that terrorists don’t need to step foot in our country to further their aims, today’s actions show that the Department will do what it takes to stop them.
“The internet is continuously updating with new threats to our nation’s safety, but we will continue to rise and meet this challenge,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The success of this seizure should serve as a message to others that would threaten the safety of our communities: We will continue to fight terror groups and their propaganda no matter the domain.”
“The Bureau of Industry and Security’s Office of Export Enforcement will continue to aggressively disrupt Iranian backed terrorist organizations such as Kata’ib Hizballah from utilizing U.S. based online networks and services in violation of U.S. law,” said P. Lee Smith, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Export Enforcement at the Department of Commerce. “The Bureau of Industry and Security is committed to protecting our war fighters and Allied Forces from terrorist acts of violence inspired and directed via online networks.”
On July 2, 2009, the U.S. Secretary of Treasury designated Kata’ib Hizballah, an Iran-backed terrorist group active in Iraq, as a Specially Designated National for committing, directing, supporting, and posing a significant risk of committing acts of violence against Coalition and Iraqi Security Forces. On the same day, the U.S. Department of State designated Kata’ib Hizballah as a Foreign Terrorist Organization for committing or posing a significant risk of committing acts of terrorism.
On August 31, 2020, pursuant to a seizure warrant in the District of Arizona, the United States seized “Aletejahtv.com” and “Aletejahtv.org.” “Aletejahtv.com” and “Aletejahtv.org,” acted as Kata’ib Hizballah’s media arm and published internet communications such as videos, articles, and photographs. These communications included numerous articles designed to further Kata’ib Hizballah’s agenda, particularly destabilizing Iraq and recruiting others to join their cause. They also functioned as a live online television broadcast channel, “Al-etejah TV.” Portions of the communications expressly noted that they were published by Kata’ib Hizballah.
Within weeks, federal agents located the content from “Aletejahtv.com” and “Aletejahtv.org” on “Aletejahtv.com” and “kataibhezbollah.com,” including the Kata’ib Hizballah flag and the words “Islamic Resistance, Kataib Hizbollah.” The content even included false information about COVID-19 designed to damage perception of the United States in the minds of Iraqi citizens and to destabilize the region to the benefit of Iran.
Federal law prohibits designated entities like Kata’ib Hizballah from obtaining or utilizing goods or services, including website and domain services, in the United States without a license from the Office of Foreign Assets Control. “Aletejahtv.com” and “kataibhezbollah.com” are domain names that are owned and operated by a United States company based in Reston, Virginia. Kata’ib Hizballah did not obtain a license from the Office of Foreign Assets Control prior to utilizing the domain names.
On October 14, 2020, pursuant to a seizure warrant issued in the Eastern District of Virginia, the United States seized “Aletejahtv.com” and “kataibhezbollah.com.”
This seizure was investigated by the Department of Commerce, Bureau of Industry and Security, Atlanta Resident Office.
Assistant U.S. Attorneys from the Northern District of Georgia, Assistant U.S. Attorneys from the Eastern District of Virginia, and trial lawyers from the Department of Justice National Security Division prosecuted the seizure.
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.
United States Seizes More Domain Names Used by Foreign Terrorist OrganizationRead the Press Release
The United States has seized “Aletejahtv.com” and “kataibhezbollah.com,” two websites that were unlawfully utilized by Kata’ib Hizballah, a Specially Designated National and a Foreign Terrorist Organization.
“Seizures like these are critical to preventing designated entities and terrorist organizations from using U.S. websites to recruit new members and promote their twisted world views,” said Assistant Attorney General for National Security John C. Demers. “While this case is a reminder that terrorists don’t need to step foot in our country to further their aims, today’s actions show that the Department will do what it takes to stop them.”
“We will be steadfast in protecting our electronic infrastructure and commerce system from use by terrorist groups,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia. “This seizure shows that we will continue to leverage our national reach to stop these groups from using U.S.-based resources to further their terrorist agenda.”
“The internet is continuously updating with new threats to our nation’s safety, but we will continue to rise and meet this challenge,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The success of this seizure should serve as a message to others that would threaten the safety of our communities: We will continue to fight terror groups and their propaganda no matter the domain.”
“The Bureau of Industry and Security’s Office of Export Enforcement will continue to aggressively disrupt Iranian backed terrorist organizations such as Kata’ib Hizballah from utilizing U.S. based online networks and services in violation of U.S. law,” said P. Lee Smith, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Export Enforcement at the Department of Commerce. “The Bureau of Industry and Security is committed to protecting our war fighters and Allied Forces from terrorist acts of violence inspired and directed via online networks.”
On July 2, 2009, the U.S. Secretary of Treasury designated Kata’ib Hizballah, an Iran-backed terrorist group active in Iraq, as a Specially Designated National for committing, directing, supporting, and posing a significant risk of committing acts of violence against Coalition and Iraqi Security Forces. On the same day, the U.S. Department of State designated Kata’ib Hizballah as a Foreign Terrorist Organization for committing or posing a significant risk of committing acts of terrorism.
On Aug. 31, 2020, pursuant to a seizure warrant in the District of Arizona, the United States seized “Aletejahtv.com” and “Aletejahtv.org.” “Aletejahtv.com” and “Aletejahtv.org,” acted as Kata’ib Hizballah’s media arm and published internet communications such as videos, articles, and photographs. These communications included numerous articles designed to further Kata’ib Hizballah’s agenda, particularly destabilizing Iraq and recruiting others to join their cause. They also functioned as a live online television broadcast channel, “Al-etejah TV.” Portions of the communications expressly noted that they were published by Kata’ib Hizballah.
Within weeks, federal agents located the content from “Aletejahtv.com” and “Aletejahtv.org” on “Aletejahtv.com” and “kataibhezbollah.com,” including the Kata’ib Hizballah flag and the words “Islamic Resistance, Kataib Hizbollah.” The content even included false information about COVID-19 designed to damage perception of the United States in the minds of Iraqi citizens and to destabilize the region to the benefit of Iran.
Federal law prohibits designated entities like Kata’ib Hizballah from obtaining or utilizing goods or services, including website and domain services, in the United States without a license from the Office of Foreign Assets Control. “Aletejahtv.com” and “kataibhezbollah.com” are domain names that are owned and operated by a United States company based in Reston, Virginia. Kata’ib Hizballah did not obtain a license from the Office of Foreign Assets Control prior to utilizing the domain names.
On Oct. 14, 2020, pursuant to a seizure warrant issued in the Eastern District of Virginia, the United States seized “Aletejahtv.com” and “kataibhezbollah.com.” Visitors to the site received the following message:
This seizure was investigated by the Department of Commerce, Bureau of Industry and Security.
Assistant U.S. Attorneys from the Northern District of Georgia, Assistant U.S. Attorneys from the Eastern District of Virginia, and trial lawyers from the Department of Justice National Security Division prosecuted the seizure.
U.S. Attorney Pak appoints Assistant U.S. Attorney Brent Gray District Election OfficerRead the Press Release
ATLANTA – U.S. Attorney Byung J. “BJay” Pak announced that Assistant U.S. Attorney (AUSA) Brent Gray will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSA Gray has been appointed to serve as the District Election Officer (DEO) for the Northern District of Georgia and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
“Every American citizen must be able to vote without interference or discrimination. And as they cast their votes, Americans need to feel confident that their votes will be counted without any threat of being fraudulently stolen,” said U.S. Attorney Byung J. “BJay” Pak. “It is imperative that anyone who has specific information about discrimination or election fraud make that information available to my office, the FBI, or the Civil Rights Division. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Pak stated that AUSA/DEO Gray will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: (404) 581-6001.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (770) 216-3000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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.