Northern District of Georgia
Press releases recorded for this federal judicial district.
Henderson & Sons Funeral Home agrees to resolve alleged violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Henderson & Sons Funeral Home (Henderson), a funeral service operator in Rome, Georgia, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
“Funeral homes have an obligation under the ADA to ensure that people who are deaf and hard of hearing receive the same benefits of their service as those without disabilities,” said U.S. Attorney Byung J. “BJay” Pak. “Anyone who has lost a loved one understands the value of the services provided by funeral homes, and a failure to provide effective communication to family members who are deaf or hard of hearing robs them of that experience.”
The U.S. Attorney’s Office initiated an investigation after receiving a complaint alleging that Henderson failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainant, who is deaf and relies on American Sign Language as her primary means of communication, alleged she requested a sign language interpreter for her family member's funeral, but no interpreter or other auxiliary aid or service was provided. As a result, the complainant attended her loved one’s funeral without the ability to understand what was being said during the service. And while several friends and family members spoke affectionately about their memories of the deceased, the complainant was forced to grieve without the benefit of sharing in those memories.
Under the settlement agreement, Henderson agreed to ensure effective communication to its customers who are deaf or hard of hearing, including providing qualified interpreters at no cost. Among other things, Henderson has agreed to develop an effective communication policy, provide training to all of its personnel on effective communication and relay calls, and provide a report to the U.S. Attorney’s Office regarding its compliance with the settlement agreement. A copy of the settlement agreement can be found
here.
The ADA prohibits discrimination against individuals with disabilities by funeral homes. Under the ADA, funeral homes are required to provide effective communication to individuals who are deaf or hard of hearing. Depending on the needs of the customer and the sensitivity of the information needed to be conveyed, a qualified sign language interpreter may be required to ensure effective communication with the person who is deaf or hard of hearing.
Assistant U.S. Attorney Tiffany Johnson represented the United States in this matter.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 employee of medical packaging company sentenced to federal prison for disrupting PPE shipmentsRead the Press Release
ATLANTA - Christopher Dobbins has been sentenced to federal prison for hacking his former employer and sabotaging their electronic shipping records, causing more than $200,000 in damage and delaying the shipment of personal protective equipment (“PPE”) during the COVID-19 pandemic.
“As businesses worked to get PPE into the hands of those most in need of it, Dobbins chose to hack his former employer and maliciously interrupt that process,” said U.S. Attorney Byung J. “BJay” Pak. “His actions caused delays in the delivery of desperately needed equipment in the midst of a worldwide pandemic.”
“During the height of a world-wide pandemic this defendant disrupted the distribution of critical medical supplies to health care workers on the front lines of the battle,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This swift and efficient result sends a message that anyone who puts the lives of American citizens at risk will be pursued and punished for their egregious behavior.”
According to U.S. Attorney Pak, the charges and other information presented in court: In early March 2020, Dobbins was terminated from his employment at a medical device packaging company. While employed at the company, Dobbins had administrator access to the computer systems containing the company’s shipping information. When his employment was terminated, he also lost his access to the company’s computer systems.
On March 26, Dobbins received his final paycheck from the company. Three days later, on March 29, 2020, he used a fake user account that he had previously created while still employed at the company to log into the company’s computer systems. He then conducted a computer intrusion that disrupted and delayed the medical device packaging company’s shipments of PPEs.
While logged in through the fake user account, Dobbins created a second fake user account and then used that second account to edit approximately 115,581 records and delete approximately 2,371 records. After taking these actions, Dobbins deactivated both fake user accounts and logged out of the system. The edits and deletions to the company’s records disrupted the company’s shipping processes, causing delays in the delivery of much-needed PPEs to healthcare providers.
Christopher Dobbins, 41, of Duluth, Georgia, has been sentenced to one year and one day in prison and ordered to pay restitution in the amount of $221,200. Dobbins was convicted on these charges on July 10, 2020, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Samir Kaushal prosecuted 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, the U.S. Attorney’s Office for the Southern District of Georgia and the Prosecuting Attorneys’ Council of Georgia (PAC). Georgia’s three U.S. Attorneys, the Attorney General of Georgia, the Executive Counsel for the Governor’s Office and the PAC Executive Director 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.
Northern District of Georgia addresses unlawful firearms possession by domestic abusers from all anglesRead the Press Release
ATLANTA – Since 2019, when Attorney General William P. Barr created the Department of Justice’s first ever-Domestic Violence Working Group—galvanizing national efforts to bring federal firearms laws to bear against armed domestic abusers—federal prosecutors in the Northern District of Georgia have taken a multi-faceted approach uniquely tailored to the issues in Georgia.
“Keeping firearms out of the hands of dangerous criminal offenders is one of the Department of Justice’s top priorities,” said Attorney General Barr. “This is especially important when it comes to individuals with prior domestic violence convictions. The statistics are clear that when domestic violence offenders have access to guns, their partners and their families are at much greater risk of falling victim to gun violence. In fact, in some communities across America, roughly half of the homicides are related to domestic violence. The Department of Justice is committed to keeping guns out of the hands of those who are prohibited from having them, and we will continue investigating and prosecuting all domestic violence firearms related crimes.”
“Georgia is one of only a handful of states in which it is not unlawful, under state law, to possess a firearm after a misdemeanor domestic violence conviction,” said U.S. Attorney Byung J. “BJay” Pak. “Similarly, Georgia law does not prohibit firearm possession after the entry of a domestic violence protection order. Federal law, however, makes it a felony to possess a firearm under both circumstances. Federal prosecution of armed offenders with a track record of domestic violence provides an opportunity to prevent additional violence before it occurs.”
“According to the CDC, data suggests that about one in six homicide victims are killed by an intimate partner,” said ATF Acting Director Regina Lombardo. “Nearly half of female homicide victims in the U.S. are killed by a current or former male intimate partner. ATF is committed to aggressively pursuing prohibited possession of firearms due to domestic violence convictions and certain protective orders. It is another way we prevent violent gun crime within our communities.”
The situation in Georgia is particularly grave. Firearms were the cause of death in 73 percent of domestic violence fatalities. Tragically, the problem is not a new one. According to the Georgia Commission on Family Violence, from 2010–2017, at least 758 Georgians died from a firearm in domestic violence-related incidents.
In addition to serving on the national working group and overseeing federal prosecutions in the Northern District of Georgia, U.S. Attorney Pak has endorsed a broad-based effort prioritizing training for local partners and promoting community awareness, which included a virtual community forum on Firearms and Domestic Violence on October 14, 2020.
U.S. Attorney Pak presented the forum moderated by CBS46 anchor Karyn Greer, which included discussions with DeKalb District Attorney Sherry Boston; Janet Paulsen, a survivor of domestic violence; Dr. Lauren Hudak, a doctor of Emergency Room medicine at Grady Memorial Hospital; Sharla Jackson, statewide domestic violence training coordinator for the Prosecuting Attorney’s Council of Georgia; and Brian Johnston, Assistant Special Agent in Charge, Georgia Bureau of Investigation. To listen to the archived forum, please visit our website found at https://www.justice.gov/usao-ndga/project-guardian. Additional information about federal firearms prohibition related to domestic violence is also provided via the above link.
If you or someone you know is being abused, there are community and statewide resources available to you. Call the toll-free, 24-hour hotline for a confidential place to get help and find resources. 1-800-33-HAVEN (1-800-334-2836).
The U.S. Attorney’s Office’s efforts concerning firearms and domestic violence are part of two national Department of Justice programs concerning firearms violations and violent crime: Project Guardian and Project Safe Neighborhood (PSN).
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.
DOJ charges more than 14,200 defendants with firearms-related crimes in FY20Read the Press Release
ATLANTA – The Department of Justice announced it has charged more than 14,200 defendants with firearms-related crimes during Fiscal Year (FY) 2020, despite the challenges of COVID 19 and its impact on the criminal justice process. These cases have been a Department priority since November 2019 when Attorney General William P. Barr announced his commitment to investigating, prosecuting, and combatting gun crimes as a critical part of the Department’s anti-violent crime strategy. These firearms-related charges are the result of the critical law enforcement partnership between United States Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“The number one priority of government is to keep its citizens safe,” said Attorney General Barr. “By preventing firearms from falling into the hands of individuals who are prohibited from having them, we can stop violent crime before it happens. Violating federal firearms laws is a serious crime and offenders face serious consequences. The Department of Justice is committed to investigating and prosecuting individuals, who illegally buy, sell, use, or possess firearms. Reducing gun violence requires a coordinated effort, and we could not have charged more than 14,000 individuals with firearms-related crimes without the hard work of the dedicated law enforcement professionals at the ATF, our U.S. Attorneys’ Offices across the country, and especially all of our state and local law enforcement partners.”
“Our office is committed to combating gun crimes by leveraging federal, state, local law enforcement and community partnerships to comprehensively target these offenses,” said U.S. Attorney Byung J. “BJay” Pak. “In the Northern District of Georgia, we are especially focused on efforts to address domestic violence offenses involving firearms, given the alarming increase in domestic violence since the pandemic began.”
“Protecting the public from violent crime involving firearms is at the core of ATF’s mission,” commented ATF Acting Director Regina Lombardo. “Every day the men and women of ATF pursue and investigate those who use firearms to commit violent crimes in our communities, many of whom are prohibited from possessing firearms from previous convictions. ATF, in collaboration with the U.S. Attorneys’ Offices across the nation, is committed to bringing these offenders to justice for their egregious and violent criminal acts.”
Of the more than 14,200 cases charged, 336 cases have been brought by the Northern District of Georgia, announced U.S. Attorney Pak.
Under federal law, it is illegal to possess a firearm if you fall into one of nine prohibited categories including being a felon, illegal alien, or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to illegally purchase - firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, is also a federal offense.
The Department is committed to prosecuting these firearms offenses as well as using all modern technologies available to law enforcement such as the National Integrated Ballistic Information Network, known as NIBIN, to promote gun crime intelligence. Keeping illegal firearms out of the hands of violent criminals will continue to be a priority of the Department of Justice and we will use all appropriate, available means to keep the law abiding people of this country safe from gun crime.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Couple pleaded guilty to laundering over $500,000 on behalf of India-based phone scammersRead the Press Release
ATLANTA – Husband and wife Mehulkumar Manubhai Patel and Chaitali Dave have pleaded guilty to laundering over $500,000 on behalf of India-based phone scammers.
“Dave and Patel helped criminal India-based call centers prey on and steal from vulnerable members of our community,” said U.S. Attorney Byung J. “BJay” Pak. “While posing as federal agents or tech support, the call centers instructed victims to mail packages of cash that Patel and Dave retrieved using fake identifications. This case exists as an example of our commitment to investigating and prosecuting those who facilitate foreign-based scams.”
“These guilty pleas demonstrate the value of a coordinated, multi-agency approach to combating overseas telephone scams by targeting their facilitators in the United States,” said Gail S. Ennis, Inspector General for Social Security. “We will continue to work with the Department of Justice and our investigative partners to pursue these unscrupulous individuals, who continue to deceive and harm American consumers.”
“It is important to remind family and friends to never provide money or personal information to unknown callers when they receive a suspicious call,” said Andrew Saul, Commissioner of Social Security. “People should just hang up and then go online to oig.ssa.gov to report these scams to Social Security.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Criminal India-based call centers defraud U.S. residents, including the elderly, by misleading victims over the telephone utilizing scams such as Social Security and tech support scams.
As part of their Social Security scam, India-based callers pose as federal agents in order to mislead victims into believing their Social Security numbers were 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 mail cash to aliases used by other members of the fraud network, including Patel and Dave.
As part of the tech support scam, callers allegedly induced victims to send money in exchange for supposed technical support for their computers. The callers then provided nothing in return. At times, callers misled the victims into providing remote access to their computers and the callers would access the victims’ bank accounts. The callers routinely misled the victims by making it appear as though the caller added money to the victims’ bank accounts. The callers then instructed the victims to mail cash to aliases used by other members of the fraud network, including Patel and Dave.
Based on misrepresentations made during the calls, the victims, including Georgia residents, mailed money to a network of individuals that laundered funds on behalf of the overseas fraud network. From on or about May 2019, to on or about January 2020, Patel and Dave laundered over $500,000 sent by dozens of scam victims.
Mehulkumar Manubhai Patel, 36, and Chaitali Dave, 36, of Lexington, South Carolina, pleaded guilty before U.S. District Judge Amy Totenberg on September 1, 2020 and on October 6, 2020 respectively.
The Social Security Administration - Office of the Inspector General is investigating the case with the assistance of the U.S. Secret Service, El Dorado Task Force (New York), Aiken Department of Public Safety (South Carolina), Naperville Police Department (Illinois), Lexington County Sheriff’s Department (South Carolina), Rocky River Police Department (Ohio), Polk County Sheriff’s Office (Florida) and Henrico County Police Division (Virginia).
Special Assistant U.S. Attorney Diane Schulman is prosecuting the case. Former Northern District of Georgia Elder Justice Coordinator and Assistant U.S. Attorney Jolee Porter previously 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.
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 Social Security, SSA will send a letter with payment options and appeal rights. If you suspect you have received a Social Security scam call, report it at https://oig.ssa.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.
Luxury car purveyor extradited on fraud and money laundering chargesRead the Press Release
ATLANTA - Mani Chulpayev, having been arrested in Ukraine and extradited to Atlanta, has been arraigned on federal charges of bank fraud, mail fraud, and money laundering.
“Chulpayev allegedly profited from years of fraud and by catering to drug traffickers looking for flashy cars and a way to launder their ill-gotten cash,” said U.S. Attorney Byung J. “BJay” Pak. “His arrest and extradition show that we will pursue fraudsters and money launderers no matter where they hide.”
“DEA and its law enforcement partners will continue to target drug traffickers and those who support them with criminal acts such as money laundering and wide-scale fraud, as was the case in this investigation,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “The spirited level of law enforcement cooperation made this investigation a success.”
“The arrest of this defendant should serve as an example to individuals that distance does not insulate them from the reach of our investigations and our resolve in the pursuit of justice,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors will continue to work alongside our law enforcement partners to dissect and financially disrupt complex money laundering schemes.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Chulpayev, along with Lyle Livesay, Kimberly Reiss, and others, allegedly operated an enterprise from at least May 2012 to July 2016 in which they obtained luxury cars through fraudulent means, and then leased them out to drug traffickers who paid for the leases using cash from their drug sales.
To build up an inventory of cars, Chulpayev and his associates allegedly recruited straw purchasers – people who would buy luxury cars in their names, but had no intention of actually driving the cars themselves. The straw purchasers would give the cars to Chulpayev to be leased to others, including to drug traffickers who used drug proceeds to pay Chulpayev for the pricey leases. The straw purchasers bought the cars using bank loans, and would finance several luxury vehicles in a short period of time before the new loans showed up on their credit reports. Chulpayev and his associates gave the straw purchasers falsified documents, including fake paychecks, to use for loan applications. Some of the straw purchasers also obtained loans for cars that were not actually for sale so that Chulpayev and his co-conspirators would receive a cash boon from the financing bank to further their scheme.
Chulpayev and his associates would initially make some of the loan payments for the straw purchasers, but then stop, leaving the straw purchasers responsible for making payments. When the straw purchasers inevitably defaulted on the loans, Chulpayev left the banks to try to repossess the cars from the drug traffickers or locate cars that had been moved to other states, stolen, or exported to foreign countries.
A federal grand jury indicted Mani Chulpayev, 43, together with Lyle Stephen Livesay, 33, and Kimberly Ann Reiss, 35, on November 15, 2018, on one count of conspiracy to commit bank fraud and mail fraud, and one count of conspiracy to commit money laundering. Livesay pleaded guilty to the charges on September 14, 2020, before U.S. District Judge Eleanor L. Ross. Reiss is scheduled for a change of plea hearing on October 22, 2020. Chulpayev was arraigned before U.S. Magistrate Judge Regina D. Cannon.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration and United States Postal Inspection Service, with valuable assistance provided by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Marshals Service.
Assistant U.S. Attorneys Garrett L. Bradford, Deputy Chief of the Narcotics and Dangerous Drugs Section, and Irina K. Dutcher are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
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.
Serial sex offender sentenced to 25 years for operating a child pornography chat groupRead the Press Release
GAINESVILLE, Ga. - Terence Dewayne Dixon has been sentenced for running an online chat group that he named “House of 1000 Littles.” The chat group was dedicated to sharing child pornography and discussing child molestation. At the time, Dixon had already been convicted in 2001 of the aggravated sexual assault of a nine-year-old child.
“Dixon disseminated horrific images of child pornography to members of his online chat group,” said U.S. Attorney Byung J. “BJay” Pak. “He also encouraged others to share child pornography that fueled a demand for the violent exploitation of children. This lengthy prison sentence serves as some recompense for the irreparable harm he caused to so many children and their families.”
“The monsters that visited this site and found pleasure in exploiting innocent children now have one less place to sow their evil seeds and one less organizer to help them do it. Dixon’s sentencing is warning to those who revel in and peddle this filth,“ said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta and its state and local partners are hunting down these criminals that look to steal the innocence of our youth.”
“For this defendant to take the images of innocent children and pass them around in order to exploit them and use them to arouse in a sexual nature is absolutely despicable. The GBI is committed to working with our partners to stop this criminal behavior and protect our young ones,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the charges and other information presented in court: As early as November 2017, Terence Dixon created an online chat group and named it “House of 1000 Littles.” Members of Dixon’s group discussed how they were sexually aroused by children and sent one another links to child pornography files on a daily basis until October 2018.
On a single day in January 2018, for example, Dixon shared 21 links containing child pornography with the group. On another date, in February 2018, he bragged that his shared link contained 5,000 videos of child pornography. Investigators identified the majority of his chat group living all across the United States, including in the states of California, Georgia, Illinois, Louisiana, Michigan, New York, Ohio, and Tennessee.
Terence Dewayne Dixon, also known as “Devilman Crybaby”, 38, of Houston, Texas, has been sentenced to 25 years in prison to be followed by a lifetime of supervised release. He was ordered to pay $12,000 in restitution. He must also register as a sex offender upon release. Dixon was convicted of conspiracy to advertise child pornography on July 23, 2020, after he pleaded guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Georgia Bureau of Investigation.
Assistant U.S. Attorney Jennifer Keen prosecuted the case.
This case was brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Convicted felon sentenced to federal prison for trafficking firearmsRead the Press Release
ATLANTA - Wesley Joshua Smith has been sentenced to serve five years in federal prison after pleading guilty to aiding and abetting a separately charged accomplice who illegally obtained more than two dozen handguns that Smith trafficked domestically and internationally.
“Straw purchasing firearms is not a victimless crime,” said U.S. Attorney Byung J. “BJay” Pak. “Straw purchasers and the gunrunners who direct them help to fuel the illicit gun trade in Georgia and beyond – often with the firearms turning up only after another crime has been committed.”
“Mr. Smith put guns in the hands of criminals,” said Arthur Peralta, Special Agent in Charge of ATF in Atlanta. “Buying guns for people you don’t know, or for people who cannot buy them legally, is a federal crime and we will continue to investigate and arrest those individuals who are engaged in this activity.”
According to U.S. Attorney Pak, the charges and other information presented in court: Between December 2019 and February 2020, Smith paid an accomplice to purchase 28 pistols—always two or three at a time—from various licensed firearms dealers in the metropolitan Atlanta area. Smith was unable to purchase those firearms himself as a result of a 2013 conviction for an unrelated firearms offense in the state of Maryland, where he had previously resided.
At the time of each purchase, Smith’s accomplice completed paperwork in which he falsely claimed to be the actual buyer of the firearms when he knew that he was buying the guns for Smith, at Smith’s direction, and with Smith’s money. Within days and weeks of the firearm purchases by Smith and his accomplice, local police officers in Maryland, the District of Columbia, and Canada recovered nearly a half-dozen of these weapons from crime scenes.
On February 10, 2020, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives saw Smith accept a delivery of four, 9mm semiautomatic pistols and four, large capacity 30-round ammunition magazines. Agents arrested Smith after he tried to avoid apprehension by physically resisting an agent and attempting to flee.
Wesley Joshua Smith, a/k/a “Menace,” 34, of Atlanta, Georgia, was sentenced on September 21, 2020, to five years of imprisonment, to be followed by three years of supervised release by Chief U.S. District Judge Thomas W. Thrash, Jr.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
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.
Firearms trafficker attempts to smuggle guns to HaitiRead the Press Release
ATLANTA - Jacques Mathieu has pleaded guilty to attempting to export 12 firearms and approximately 36,000 rounds of ammunition to Haiti by concealing the contraband in a car he intended to ship to the island.
“Firearms traffickers help fuel violence on our streets and outside the United States,” said U.S. Attorney Byung J. “BJay” Pak. “Alert agents found the weapons and ammunition and stopped the shipment before it reached its intended destination.”
“Firearms trafficking poses a very serious threat to the safety of our communities in the U.S. and abroad,” said Arthur Peralta, Special Agent in Charge of ATF in Atlanta. “Jacques Mathieu’s attempts to illegally export firearms is a significant concern for the people of Haiti and we will do everything we can do to stop these illegal firearms from falling into the wrong hands.”
“Special Agents of the Office of Export Enforcement are committed to combating the illicit smuggling of firearms and ammunition internationally,” said P. Lee Smith, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Export Enforcement (OEE) at the Department of Commerce, Bureau of Industry of Security. “Firearms and ammunition illegally exported from the United States often end up in the hands of violent criminals and harm the most vulnerable communities, in this case in the Republic of Haiti. OEE is committed to aggressively investigating international firearms smuggling networks and working with our law enforcement partners to bring violators to justice.”
According to U.S. Attorney Pak, the charges and other information presented in court: In September 2019, Mathieu, a Haitian national, attempted to ship a 2007 Suzuki Grand Vitara to Haiti via the Port of Palm Beach, Florida. He reported on export shipping documents that the car contained 12 boxes of used clothing. However, Customs and Border Patrol (CPB) and Bureau of Industry and Security, Office of Export Enforcement agents searched the car and discovered 12 firearms and approximately 36,000 rounds of ammunition concealed in the boxes.
Jacques Mathieu, 51, of Tucker, Georgia pleaded guilty to the offense of attempting to export firearms and ammunition to the Republic of Haiti. Sentencing is scheduled for January 8, 2021, at 10:00 a.m., before U.S. District Judge Michael L. Brown.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Department of Commerce, Bureau of Industry of Security.
Assistant U.S. Attorney Jennifer Keen is prosecuting the case.
This case is being 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 here: 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.
Business owner sentenced for bribing city of Atlanta official to win contract at Atlanta’s airportRead the Press Release
ATLANTA - Hayat Choudhary, CEO of Atlanta Airport Shuttle Services, Inc., d/b/a Meskerem Restaurant, has been sentenced to federal prison for paying $20,000 in cash to a City of Atlanta Department of Procurement official to secure a contract at the Hartsfield-Jackson Atlanta International Airport.
“The public expects that government contracts are awarded solely based on merit,” said U.S. Attorney Byung J. “BJay” Pak. “As the defendant learned, there are serious consequences for those who believe they can bribe their way into a contract. We will continue to vigorously investigate pay-to-play schemes at all levels of government.”
“Choudhary’s actions erode the public’s trust in a process that is meant to be fair to all contract applicants,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Hopefully this sentencing will help restore some of that trust, or at least send a message that the FBI is determined to pursue anyone who would undermine the integrity of how contracts are awarded.”
According to U.S. Attorney Pak, the charges and other information presented in court: Hartsfield-Jackson Atlanta International Airport (“Atlanta’s airport”) is the principal airport for Georgia and the southeastern United States. In 2017, Atlanta’s airport – the busiest passenger airport in the world at the time – generated more than $500 million in revenue for the City of Atlanta, including approximately $8.8 million in fees and charges from private ground transportation companies (such as taxicabs, limousines, ridesharing, and hotel and parking lot shuttles). One such company was Atlanta Airport Shuttle Services, Inc., d/b/a Meskerem Restaurant, owned and operated by the defendant, Hayat Choudhary.
The City of Atlanta’s Department of Procurement was responsible for acquiring all services for Atlanta’s airport. The Department of Procurement’s “Guiding Principles” commit its personnel to “award contracts that are consistent with the policy, regulations, rules, and laws,” and “without regard for personal gain.”
On or about May 2, 2017, the Department of Procurement announced that the City of Atlanta sought to enter a contract for a vendor to establish and operate a kitchen/restaurant at the Ground Transportation Building at Atlanta’s airport. The kitchen/restaurant would serve the large and growing number of taxi, limousine, and rideshare drivers that provided transportation services to passengers traveling to and from Atlanta’s airport.
The Department of Procurement projected that the kitchen/restaurant at the Ground Transportation Building would generate annual revenue of $200,000, and generate rent payments to the City of Atlanta of $13,000 per year. The City of Atlanta offered a ten-year term for the kitchen/restaurant contract, with a three-year renewal option. Choudhary’s company, Atlanta Airport Shuttle Services, Inc., d/b/a Meskerem Restaurant, was one of the bidders for the contract.
“Official-1” was the Department of Procurement officer responsible for overseeing the bidding process and, thus, influenced the awarding of the kitchen/restaurant contract. After the contract was announced, Choudhary paid a $10,000 bribe to Official-1 to obtain the contract. After the first bribe payment, Official-1 instructed Choudhary that he had to pay another $10,000 to receive the contract. Choudhary paid the second $10,000 bribe. Following Choudhary’s payment of $20,000 to Official-1, the City of Atlanta awarded the contract to Choudhary’s company.
Choudhary, 58, of Lilburn, Georgia, was sentenced by U.S. District Judge Steve C. Jones to one years, ten months’ imprisonment, to be followed by three years’ supervised release.
The Federal Bureau of Investigation investigated this case.
Assistant U.S. Attorney Trevor C. Wilmot 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.
Husband and wife plead guilty to naturalization fraud and conspiring to illegally import and distribute male enhancement products and counterfeit goods from ChinaRead the Press Release
ROME, GA– Irfanali Momin and Shiba I. Momin a/k/a Saguftabanu Momin, husband and wife, have each pleaded guilty to naturalization fraud, and conspiring to illegally import misbranded drug products from China, receive misbranded drugs that had moved in interstate commerce, and to trafficking of counterfeit goods.
“These defendants profited by taking a shortcut—one that could have had devastating consequences for individuals who purchased these products,” said U.S. Attorney Byung J. “BJay” Pak. “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.”
“The health and safety of American consumers are placed at risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in misbranded drugs that are falsely labeled as dietary supplements,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “FDA remains committed to pursuing those who endanger the U.S. public health by importing and distributing fraudulent and potentially dangerous products.”
“Whether it is lying to illegally gain citizenship or illegally importing and selling misbranded pharmaceuticals, Homeland Security Investigations will aggressively pursue those that seek to profit from those fraudulent and dangerous activities,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “The Momins will now face the consequences for their actions thanks to the diligent efforts of all our partners on the Atlanta Document and Benefit Fraud Task Force.”
“The arrest of this couple essentially stopped the flow of illegal products throughout the Southeast that were sold to hundreds of stores and ultimately customers whose health was threatened by using them,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to working with our federal partners to make sure our citizens are protected from those who would choose to do them harm.”
According to U.S. Attorney Pak, 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 names such as “Black Ant King,” “Bull,” “Rhino 7,” “Super Hard,” “Jack Rabbit,” “Zhen Gongfu,” “Stree Overlord,” “Pro Power Max,” “Libigrow,” “Red Mamba,” “Rhino 69,” “Krazzy Rhino,” “Rhino 25,” Hard Steel,” and “Black Mamba.” 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.
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.
Irfanali Momin, 48, and Shiba I. Momin a/k/a Saguftabanu Momin, 42, both of Dahlonega, Georgia, were convicted on September 23, 2020 after pleading guilty to a criminal information. Sentencing for the Momins is scheduled for January 7, 2021, at 11:00 a.m., before U.S. District Judge Steve C. Jones. The Momins were originally arrested on January 8, 2020 after a grand jury returned a multi-count Indictment against them. As a consequence of their guilty pleas to naturalization fraud, Judge Jones will sign an order following sentencing that revokes their U.S. citizenship.
This case is being 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 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.
Prolific sextortionist sentenced to 40 yearsRead the Press Release
ATLANTA - Benjamin Jenkins has been sentenced to 40 years in prison after a jury found him guilty of producing and distributing child pornography that he coerced more than 100 young girls to create.
“Jenkins exploited as many as 150 girls for his perverse satisfaction, causing unbelievable trauma to these children and their families,” said U.S. Attorney Byung J. “BJay” Pak. “The sheer degradation and depravity that Jenkins forced his victims to endure is unimaginable. This sentence will hopefully help these courageous victims and their families heal.”
“No sentence will ever bring back the innocence that this monster stole from hundreds of girls,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “These victims were trapped in a vicious cycle from which they could not escape. We will continue to go after these predators while educating our youth about the dangers of sextortion.”
According to U.S. Attorney Pak, the charges and other information presented in court: Beginning in 2015, Jenkins allegedly used different identities to contact girls between the ages of 13 and 16 years. To lure the girls, he would use different aliases and profiles where he would persuade them to send a sexually suggestive photo of themselves. After a girl sent him a photo, Jenkins would threaten her into sending him more photos and videos by claiming that he would post their photos online or send them to their family and friends. Jenkins instructed the girls on what body parts to show, what poses to make, and what objects to insert into their genitals and anus. If a girl did not provide him with a photo or video quickly enough, he would start a countdown clock: the girl had a certain amount of time to provide him with an image before he started posting her other images online. Jenkins further humiliated his victims by forcing them to send him videos showing them drinking their own urine or licking toilets. He also humiliated many of his victims by making them watch him masturbate.
Once a girl blocked Jenkins online, he would send her explicit photos to her parents and friends with demands that the girl resume communications with him. Jenkins also posted his victim’s nude photos and contact information online with messages for men to contact the girls directly for more photos or for sex. In total, Jenkins sextorted as many as 150 girls or more.
Benjamin Jenkins, 25, of Mableton, Georgia, was sentenced to 40 years in prison to be followed by a lifetime of supervised release. He will also be required to register as a sex offender upon release. Jenkins was charged with nine counts of producing child pornography and three counts of distributing child pornography. He was convicted of all of these charges by a federal jury on January 16, 2020.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with the assistance from the Highland (Illinois) Police Department.
Assistant U.S. Attorneys Paul R. Jones and L. Skye Davis, Deputy Chief of the Violent Crime & National Security Section, prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Twelve charged in multi-year mortgage fraud schemeRead the Press Release
ATLANTA – Twelve defendants have been charged in a mortgage fraud scheme allegedly spanning more than four years and resulting in the approval of more than 100 mortgages based on fabricated documents and false information. Many of the loans are insured by the Federal Housing Administration (FHA) resulting in claims being paid for mortgages that have gone through loan modification.
“These defendants allegedly used their knowledge of the real estate lending process to manipulate the system for their own benefit,” said U.S. Attorney Byung J. “BJay” Pak. “Mortgage fraudsters threaten the soundness of the real estate market in our community. We will investigate and charge anyone who takes advantage of our mortgage lending system for their own personal gain.”
“These charges represent the government's commitment toward combating such alleged criminal activity,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We will steadfastly protect American citizens and the real estate market from predators who drag down our economy by deceit to line their own pockets.”
"What we have here is a group of mortgage industry professionals that have allegedly perpetrated a sophisticated mortgage fraud for profit scheme that was designed to enrich themselves at the expense of a federal housing program,” said Wyatt Achord, Special Agent in Charge, Office of the Inspector General, U.S. Department of Housing and Urban Development. “The efforts that brought forward these charges demonstrate that when law enforcement is made aware of such schemes, we will commit the necessary resources to make sure that fraudsters are brought to justice.”
“As charged, the defendants engaged in a multiyear scheme to defraud Fannie Mae and Freddie Mac. The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) will investigate and hold accountable those who seek to victimize these Government Sponsored Entities supervised and regulated by FHFA”, said FHFA-OIG Special Agent in-Charge Edwin Bonano.
According to U.S. Attorney Pak, the indictment, and other information presented in court: The defendants participated in a scheme in which homebuyers and real estate agents submitted fraudulent loan applications to induce mortgage lenders to fund mortgages. Listing agents Eric Hill and Robert Kelske represented a major nationwide homebuilder, and helped more than 100 homebuyers who were looking to buy a home, but who were unqualified to obtain a mortgage, commit fraud. The agents instructed the homebuyers as to what type of assets they needed to claim to have in the bank, and what type of employment and income they needed to submit in their mortgage applications.
Hill and Kelske then coordinated with multiple document fabricators, including defendants Fawziyyah Connor and Stephanie Hogan, who altered the homebuyers’ bank statements to inflate the their assets and to create bank entries reflecting false direct deposits from an employer selected by the real estate agent. The document fabricators also generated fake earnings statements that matched the direct deposit entries to make it appear that the homebuyer was employed, and earning income, from a fake employer. Other participants in the scheme then acted as employment verifiers and responded to phone calls or emails from lenders to falsely verify the homebuyers’ employment. Defendants Jerod Little, Renee Little, Maurice Lawson, Todd Taylor, Paige McDaniel and Donald Fontenot acted as employment verifiers. Hill and Kelske coordinated the creation and submission of the false information so that the lies to the lenders were consistent.
In another aspect of the scheme, real estate agents Anthony Richard and Cephus Chapman falsely claimed to represent homebuyers as their selling agents in order to receive commissions from the home sales. In reality, these real estate agents had never even met the homebuyers they claimed to represent. To avoid detection, the agents often notified closing attorneys that they would not be available for the home closing, and sent wire instructions for the receipt of their commissions. When these purported selling agents received their unearned commissions, they kicked back the majority of the commissions to Hill or Kelske for enabling them to be added to the deal, keeping a small share for their role in the scheme.
The following defendants have been charged as part of these conspiracies:
• Eric Hill, 50, of Tyrone, Georgia (charged by Information)
• Robert Kelske, 52, of Smyrna, Georgia
• Fawziyyah Connor, 41, of Tyrone, Georgia
• Stephanie Hogan, 57, of Norcross, Georgia
• Jerod Little, 42, of McDonough, Georgia
• Renee Little, 33, of McDonough, Georgia
• Maurice Lawson, 36, of Powder Springs, Georgia
• Todd Taylor, 54, of Fairburn, Georgia
• Paige McDaniel, 49, of Stockbridge, Georgia
• Donald Fontenot, 52, of Locust Grove, Georgia (charged by Information)
• Anthony Richard, 44, of Locust Grove, Georgia
• Cephus Chapman, 49, of Warner Robins, Georgia
Members of the public are reminded that the indictment and informations only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, Department of Housing and Urban Development Office of Inspector General, and Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorney Alison Prout 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.
Convicted child molester sentenced to 25 years for producing child pornography of teens in his careRead the Press Release
ROME, GA– Daniel Strickland, who molested two minors in his care and produced child pornography of them, has been sentenced to 25 years in prison.
“Strickland’s crimes will haunt his victims and their families for years,” said U.S. Attorney Byung J. “BJay” Pak. “Instead of safeguarding the children in his care, he sexually exploited them. Thankfully, one of his victims came forward and reported him to law enforcement. Her courage prevented Strickland from traumatizing other children.”
“Strickland will spend the next 25 years of his life in prison, which should send a strong message to anyone who even contemplates harming a vulnerable and defenseless child,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Along with our state and local law enforcement partners, the FBI is committed to working collectively to prosecute child predators.”
“It is the mission of the Murray County Sheriff’s Office to serve its citizens with dignity and honor. The safety of our children is the utmost importance and dearest to our heart. We are thankful that a victim in this case was brave enough to come forward and bring this matter to our attention so that justice could be served to Strickland,” said Jimmy Davenport, Chief Deputy, Murray County Sheriff’s Office.
According to U.S. Attorney Pak, the charges and other information presented in court: Strickland molested and took sexually explicit photos of two minor girls who had been in his care. Strickland first came to the attention of law enforcement in February 2019 when one of the victims contacted the Murray County Sheriff’s Office (“MCSO”) to report his actions. This victim had been staying at his home when Strickland molested and photographed her.
A subsequent investigation by the FBI and MCSO revealed that Strickland took sexually explicit photos of this girl and another minor girl, who he had babysat several years earlier in 2015. Both girls were approximately 13 years old when Strickland victimized them, and in both cases Strickland abused and photographed them when they were asleep (or appeared to be asleep). In July 2019, he pleaded guilty to two counts of child molestation arising from these incidents in Murray County Superior Court.
Daniel Strickland, 46, of Chatsworth, Georgia, was sentenced to 25 years in prison to be followed by a lifetime of supervised release. He will be required to register as a sex offender upon release. Strickland pleaded guilty to two counts of producing child pornography on June 18, 2020.
This case was investigated by the Federal Bureau of Investigation and Murray County (GA) Sheriff’s Office.
Assistant U.S. Attorneys Alex R. Sistla and Nicholas Hartigan prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia man sentenced to 28 years for producing child pornography and sextorting dozens of girls onlineRead the Press Release
ATLANTA - Edward “Eddie” Okenica, who exploited dozens of girls online for his own sexual gratification, has been sentenced to 28 years of imprisonment after pleading guilty to multiple counts of producing child pornography.
“Okenica victimized dozens of girls as young as 12 years old from his home,” said U.S. Attorney Byung J. “BJay” Pak. “He is a sexual predator who exploited the vulnerability and fragility of his victims by relying on the relative anonymity of social media platforms. This case is a reminder that sextortion remains a huge threat to our youth and to their families and parents need to remain vigilant to guard against it by monitoring their children’s social media activities.”
“The Internet can be used for education, entertainment, collaboration, or it can be a place where criminals and predators lurk waiting to pounce on unsuspecting users. That’s how Okenica used it. He spread his filth, victimizing countless innocent children, all the while thinking he was safe,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this show these predators that there is no hiding from justice and HSI and its partners will work tirelessly to find and prosecute them.”
“The High Technology Crime Unit at the Forsyth County Sheriff’s Office is comprised of dedicated professionals who work diligently to build strong cases against criminals like Okenica who seek to target our children. I am happy that the FCSO could help build a case that the U.S. Attorney’s Office could prosecute federally. We will spare no expense or effort to identify and arrest anyone intent on preying on our most vulnerable,” said Forsyth County Sheriff Ron Freeman.
According to U.S. Attorney Pak, the charges and other information presented in court: For at least two years prior to his arrest in August 2019, Okenica used Snapchat and Instagram to solicit sexually explicit photographs and videos from dozens and dozens of young girls. Okenica convinced many of these girls to send him sexually explicit photos and videos by offering them “bribes” in the form of gift certificates or other token forms of payment. He also frequently demanded that these girls perform sexually humiliating acts, including placing various household objects in their bodies. In many instances, the girls would grow uncomfortable and beg Okenica to stop. But Okenica was indifferent to their pleas, even when the girls cried or harmed themselves.
If the girls expressed an unwillingness to keep producing more photos or videos, Okenica bullied, threatened, and extorted the girls to force them to continue. He threatened to share their videos online with the girls’ friends and/or family, and in multiple cases did in fact carry out his threats. If a girl blocked Okenica on Snapchat or Instagram, he frequently established new accounts to find the child and demand that she send him more sexually explicit photographs and videos.
Investigators positively identified approximately 36 victims in the United States and overseas. But investigators estimate that Okenica coerced as many as 100 minor victims to send him child pornography.
Edward “Eddie” Okenica, 24, of Cumming, Georgia, was sentenced to 28 years in prison to be followed by a lifetime of supervised release. He will be required to register as a sex offender upon release. Okenica pleaded guilty to eleven counts of producing child pornography on March 5, 2020.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations and Forsyth County Sheriff’s Office.
Assistant U.S. Attorneys Alex R. Sistla and Erin Sanders prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta’s former Chief Financial Officer Jim Beard indicted for fraud, possessing machine guns, and obstructionRead the Press Release
ATLANTA – The City of Atlanta’s former Chief Financial Officer, Jimmie “Jim” A. Beard, has been charged in an eight-count federal indictment with wire fraud, theft from the government, possession of machine guns, making a false statement, and obstructing federal tax laws.
“Jim Beard allegedly abused his position as one of the most powerful executives in the City of Atlanta to commit federal crimes for his own gain, including stealing tens of thousands of dollars of the public’s money, possessing machine guns that members of the public cannot have, and obstructing an IRS audit,” said U.S. Attorney Byung J. “BJay” Pak. “Those in government leadership positions have an obligation to set the organization’s culture for ethical conduct. As alleged by the Grand Jury, Beard fundamentally betrayed that obligation.”
“This alleged fraud was not only a violation of the oath taken by this pubic official, but a theft of the public's trust,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Public corruption is one of the FBI's top priorities and we continue to work with our local and federal partners to protect citizens against officials who abuse that trust.”
“Jimmie A. Beard systematically defrauded the City of Atlanta and impeded the IRS from assessing his true tax liability,” said IRS Criminal Investigation Special Agent in Charge James E. Dorsey. “His desire for money, along with the power and luxuries it buys, drove him to allegedly perpetrate crimes violating his position and public trust. Thanks to the financial expertise of IRS-CI special agents, who worked side-by-side with our federal partners to uncover these schemes, Beard will now face the consequences of his actions.”
“ATF will continue to dedicate federal resources in conjunction with crucial Federal and local law enforcement partners to the pursuit of eradicating and forestalling criminal activity in the Atlanta area,” said Beau Kolodka, Assistant Special Agent in Charge, ATF Atlanta Field Division.
According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately November 2011 to May 2018, Beard served as the Chief Financial Officer (“CFO”) of the City of Atlanta. As CFO, Beard directed and managed the Department of Finance. In that capacity, Beard listed his “primary responsibility” as “the oversight and management of the City’s financial condition.”
In June 2012, the City of Atlanta issued Beard a credit card for official City of Atlanta business-related purchases. Before receiving the credit card, Beard signed a user agreement acknowledging the terms and conditions of its use, including agreeing that the credit card “shall be used for business purposes only,” and that “personal charges” were “prohibited.” Further, in 2014, the Department of Finance – which Beard oversaw – issued the City of Atlanta Credit Card Program Policy that imposed terms and conditions on the use of its credit cards, including that “credit card users should use good judgment when using a City credit card.”
Based on his position as CFO and director of the Department of Finance, the City of Atlanta required Beard to complete annually a Financial Disclosure Statement under penalty of perjury. In March 2014, Beard filed a Financial Disclosure Statement, on which Beard attested that in 2013, he was not “self-employed or employed by any corporation, partnership, proprietorship, [or] other business entity besides the City of Atlanta.”
According to the City of Atlanta’s Code of Ethics, City of Atlanta employees may be reimbursed for “travel, meals, and lodging, provided to an official or employee in connection with speaking engagements, participation on professional or civic panels, teaching, or attendance at conferences in an official capacity;” – but the officials or employees “[w]ithin 30 days of receipt of reimbursements … must report such reimbursements on a form [known as a Travel Disclosure Report].” From 2013 to 2018, Beard filed no Travel Disclosure Reports for any of the travel reimbursements that he received.
Between August 2013 and March 2018, Beard devised and executed a scheme to defraud to obtain money and property from the City of Atlanta for private use, including using City of Atlanta funds: (1) to pay for personal travel expenses for himself, his family, and his travel companions; (2) to buy items for personal use, including two machine guns; (3) to pay for travel to conferences or meetings for which the conference or meeting host reimbursed Beard, but Beard kept the money and did not give the reimbursement funds to the City of Atlanta; and (4) to pay for travel that Beard subsequently claimed to the IRS were travel expenses related to his sole proprietorship consulting work that Beard never disclosed to the City of Atlanta on any Financial Disclosure Statement.
In total, Beard allegedly defrauded the City of Atlanta out of tens of thousands of dollars. By way of example only:
• Beard’s City of Atlanta credit card was used to pay more than $3,800 for hotel rooms at the J.W. Marriott Hotel in Chicago for use by Beard’s step-daughter while attending the Lollapalooza Music Festival in 2015 and 2016, though Beard was not even in Chicago.
• Beard’s City of Atlanta credit card was used to pay more than $1,350 for a hotel room at the St. Regis Hotel in Atlanta, including $200 per night for an upgraded room, $70 for private dining, and $80 for rose-petal turndown service, even though: Beard lived in Atlanta; Beard’s wife flew from Florida to stay at the hotel with him; and Beard's work calendar listed the notation “Do Not Schedule – PTO,” (a common initialism for “Paid Time Off”) during one of the days that Beard and his wife stayed at the hotel.
• Beard kept thousands of dollars paid by third parties to reimburse Beard for travel related expenses to attend conferences and meetings, even though the City of Atlanta paid for Beard’s travel, and Beard never filed Travel Disclosure Reports to notify the City of Atlanta that the reimbursements had been paid.
• Beard ordered two custom-built machine guns that he caused to be delivered to Atlanta City Hall, after which Beard illegally took possession of the machine guns for his personal use – even though it was illegal for the machine guns to be possessed by anyone other than law enforcement and military personnel. Beard then had the City of Atlanta issue a $2,641.90 check to pay for the machine guns. In connection with the purchase, Beard completed and submitted a U.S. Department of the Treasury tax exemption form, in which he falsely certified that the machine guns were for the exclusive use of the Atlanta Police Department.
In 2013, Beard earned a salary of approximately $221,108 for his position as CFO for the City of Atlanta. In a Financial Disclosure Statement that Beard filed in March 2014, he stated under penalty of perjury that in 2013 he was not “self-employed or employed by any corporation, partnership, proprietorship, [or] other business entity besides the City of Atlanta.” Yet, Beard submitted to the IRS under penalty of perjury a Form 1040 Individual Income Tax Return for tax year 2013, in which Beard claimed that he owned a personal consulting business, and which incurred more than $33,500 in alleged business losses in 2013, including $12,000 for travel expenses and $7,115 for deducible meals and entertainment expenses.
In July 2015, the IRS advised Beard that it was auditing his 2013 tax return, and requested that Beard provide documentation to support his purported personal consulting business expenses. In his submissions to the IRS, Beard falsely claimed that he incurred airfare, hotel, and meal expenses related to his personal consulting business – when in fact Beard’s submissions to the IRS included: (1) receipts for airfare and hotels that Beard paid for using his City of Atlanta credit card (and that Beard had previously told the City of Atlanta were related to his job as CFO); (2) expense reports for personal meals with his wife and personal companions; and (3) altered receipts that hid from the IRS the fact that the charges were incurred in connection with Beard’s work for the City of Atlanta. Based on Beard’s acts and submissions, the IRS allowed Beard to deduct $12,000 in business travel expenses.
On September 15, 2020, a grand jury returned an indictment against Jimmie “Jim” A. Beard, 56, of Atlanta, Georgia, on eight federal charges, including wire fraud, federal program theft, possession of machine guns, making a false entry on a U.S. Government application, and obstructing the internal revenue laws. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the United States’ burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Internal Revenue Service - Criminal Investigations are investigating this case.
Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity Section, and Trevor C. Wilmot 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 DEA Agent and His Wife Plead Guilty for Roles in Scheme to Divert Drug Proceeds from Undercover Money Laundering InvestigationsRead the Press Release
A former Drug Enforcement Administration (DEA) special agent and his wife pleaded guilty Monday to all charges in a 19-count indictment unsealed against them on Feb. 21, 2020. U.S. Magistrate Judge Thomas Wilson accepted the guilty pleas in U.S. District Court for the Middle District of Florida.
Jose Ismael Irizarry, 46, and his wife, Nathalia Gomez-Irizarry, 36, admitted to participating in a seven-year scheme to divert over $9 million in drug proceeds from undercover money laundering investigations into bank accounts that they and co-conspirators controlled. Irizarry and Gomez-Irizarry are scheduled to be sentenced at a later date.
“In a shocking breach of the public’s trust, former DEA Special Agent Jose Irizarry, together with his wife, Nathalia Gomez-Irizarry, abused his position by illegally diverting millions of dollars in drug proceeds from undercover operations to personally benefit themselves,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Sworn law enforcement agents are entrusted with great responsibility, and the department will hold accountable those who exploit their positions to profit from public corruption.”
“Irizarry joined forces with the same criminal drug organizations he promised to investigate and prosecute, “said U.S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia. “He and his wife now stand as convicted felons, potentially facing years in federal prison with little to show for the betrayal of his oath to uphold the law.”
“This former federal agent turned his back on the people he swore to protect and caved to greed and deceit,” said Special Agent in Charge Michael F. McPherson of the FBI’s Tampa Field Office. “The FBI will not tolerate those who abuse the public trust and will persist in safeguarding the American people from public corruption.”
“HSI is committed to maintaining the public’s confidence in our law enforcement community by rooting out those corrupt individuals and criminal organizations who abuse the U.S. financial system for their own personal gain,” said Acting Special Agent in Charge Kevin Sibley of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Tampa Field Office. “By working in partnership with federal, state, local and international partners, this investigation is a prime example of law enforcement agencies working collaboratively in pursuit of justice.”
“Rather than upholding his oath to stop drug trafficking and money laundering, Irizarry actively participated in these schemes and collected millions of dollars for himself and his associates,” said Special Agent in Charge James F. Boyersmith of the Department of Justice Office of the Inspector General (OIG) Miami Field Office. “Irizarry’s conduct enabled criminals, endangered the public, and jeopardized public trust in law enforcement.”
“DEA worked with the FBI, the U.S. Attorney, and others in law enforcement to investigate and bring Irizarry to justice,” said DEA Acting Administrator Timothy J. Shea. “Law enforcement, at any level, is based upon integrity and public trust. DEA employees work tirelessly every day to keep our communities safe from drug-related crime, and former DEA Special Agent Jose Irizarry’s criminal actions do not reflect the high standards of conduct we demand of our employees and our agents. Corruption and betrayal of the American people - the very people we stand to protect – have no place at DEA, and neither does Mr. Irizarry.”
“It’s never pleasant to employ our unique financial investigative skills against a member of the law enforcement community, but no one dislikes a bad cop more than a good cop,” said Special Agent in Charge Brian Payne of the IRS Criminal Investigation’s (IRS-CI) Tampa Field Office. “Thankfully, the vast majority of federal, state, and local law enforcement officers vigilantly honor the badge, and we take great pride in teaming up with them. Together with our federal partners, we worked tirelessly to uncover the disgrace this particular agent attempted to bring on our profession.”
Irizarry filed for personal bankruptcy protection in December of 2010. As part of his plea, he admitted that soon after his bankruptcy was filed he began to exploit his position of public trust as a special agent to divert funds from undercover DEA money laundering investigations to himself and to co-conspirators. Diverted funds were then used to purchase jewelry, luxury cars, and a home. The scheme lasted throughout Irizarry’s assignments to the DEA’s Miami Field Division and to its office in Cartagena, Colombia. Irizarry resigned from the DEA in January of 2018.
Irizarry further admitted that he and his criminal associates opened a bank account with a stolen identity and then utilized the account to secretly send and receive drug proceeds from active DEA investigations. Gomez-Irizarry admitted that she allowed her bank accounts and a Florida corporation in her name to be used in the scheme. By his own admission, Irizarry was in personal bankruptcy proceedings for nearly the duration of his criminal conduct and failed to disclose any of his illicit income to the U.S. Bankruptcy Court.
Irizarry pleaded guilty to conspiracy to launder monetary instruments, honest services wire fraud, bank fraud, conspiracy to commit bank fraud, conspiracy to commit identity theft, and aggravated identity theft. Gomez-Irizarry pleaded guilty to conspiracy to launder monetary instruments.
Trial Attorneys Joseph Palazzo and Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section and First Assistant U.S. Attorney Kurt Erskine of the Northern District of Georgia, are prosecuting the case.
The FBI, HSI, Justice Department’s OIG, DEA, and IRS-CI investigated the case with significant contributions from former Assistant U.S. Attorney James Mandolfo and investigators William Campbell and Paul Serletti. The U.S. Marshals Service, U.S. Customs and Border Protection, the Justice Department’s Office of International Affairs, the Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office in Bogota, Colombia, the U.S. Attorney’s Offices for the District of Puerto Rico, Southern District of New York, and the Eastern District of Texas, the Colombian Attorney General’s Office (Fiscalia General de la Nacion), the Department of Homeland Security’s Office of Inspector General, and the South Florida Money Laundering Strike Force at the Miami-Dade State Attorney’s Office provided valuable assistance.
Atlanta director and producer indicted for operating cryptocurrency-based investment schemes that cost victims over $2 million in lossesRead the Press Release
ATLANTA - Ryan Felton has been indicted by a federal grand jury on charges arising out of two different cryptocurrency-based investment schemes.
“Initial coin offerings can be used to fund innovative and exciting projects that might not otherwise be able to come to life through traditional funding sources,” said U.S. Attorney Byung J. “BJay” Pak. “The defendant promised investors a stake in innovative ventures and allegedly spent investor funds lavishly on personal expenses.”
"This suspect misled investors to believe their money would fund two innovative ventures, but instead, every penny went to support the suspects lavish personal life style,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is a sad reminder to investors to be very careful where they entrust their money, but also a reminder to anyone motivated by greed that the FBI and our federal partners are committed to holding them accountable for their actions.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: In 2017 and 2018, Felton promoted initial coin offerings (ICO) for two new entities—FLiK and CoinSpark. ICOs are fundraising events during which the issuers of a unique “token” or “coin” set an amount they want to raise, offer it to the public in a crowdsale, and receive cryptocurrency from investors in exchange.
Felton marketed FLiK as an entertainment streaming platform, and he founded CoinSpark as a new cryptocurrency trading exchange. In order to increase, or pump, the price of the coins, Felton made numerous false representations and material omissions before, during and after the ICOs. For example, Felton claimed that all investor funds would go towards the development, launch, and support of the platforms and that private investors made significant investments in the entities. Felton also posed as a potential investor, using fake names, on various internet forums and social media sites in order to further promote false information and build up excitement in CoinSpark. After the ICOs ended, Felton secretly sold thousands of coins on secondary cryptocurrency markets to take advantage of the artificially inflated coin prices based on his misrepresentations and eventually transferred the vast majority of investor funds into his personal financial accounts.
Felton used the vast majority of the investor proceeds to fund his extravagant lifestyle, including an all-cash purchase of a $1.5 million residence and an all-cash purchase of a $180,000 red 2007 Ferrari 599 GTB Fioran Coupe. The government is seeking to forfeit the proceeds of his schemes and previously filed a civil forfeiture action, which is stayed pending the resolution of the criminal prosecution.
Ryan Felton, 46, of Atlanta, Georgia, was indicted on September 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 Federal Bureau of Investigation.
The Securities and Exchange Commission Washington, D.C. Office and the SEC New York Regional Office provided valuable contributions in this case.
Assistant U.S. Attorneys Nathan P. Kitchens, Deputy Chief, Cyber and Intellectual Property Section, and Sekret T. Sneed, Deputy Chief, Asset Forfeiture and Money Laundering 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.
United States seizes domain names used by foreign terrorist organizationRead the Press Release
ATLANTA – The United States has seized “Aletejahtv.com” and “Aletejahtv.org,” two websites which were unlawfully utilized by Kata’ib Hizballah, a Specially Designated National and a Foreign Terrorist Organization.
“Our system of commerce and our infrastructure, whether physical or electronic, is to be used by lawfully,” said U.S. Attorney Byung J. “BJay” Pak. “We will not allow groups that have been rightfully prohibited from obtaining goods and services in the United States to use our internet services – especially to further their terrorist agenda. This seizure underscores national collaboration and a commitment to protecting our commerce and infrastructure.”
“Once again we see designated foreign terrorist organizations turning to the internet to push their message and recruit followers for their violent causes,” said John Demers, Assistant Attorney General for National Security. “We will continue to fight terror recruitment and propaganda efforts in the digital world, as we do elsewhere.”
“The District of Arizona is home to many successful technology companies whose goods and services are capable of being used by individuals across the world,” said United States Attorney Michael Bailey. “We will not allow members of terrorist organizations to illegally use those goods and services to further their propaganda and agenda.”
“The National Security of the United States is, and will always be, the top priority for the Bureau of Industry and Security’s Office of Export Enforcement. Attempts to surreptitiously utilize U.S. based online networks and services to promote Iran backed terrorist propaganda will immediately be disrupted, disabled, and seized,” said P. Lee Smith, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Export Enforcement. “The Bureau of Industry and Security is committed to ensuring the stability of the Iraqi government and protecting our troops and Allied Forces against terrorist acts of violence”
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.
“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.
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 “Aletejahtv.org” are domain names that are owned and operated by a United States company based in Scottsdale, Arizona. Kata’ib Hizballah did not obtain a license from the Office of Foreign Assets Control prior to utilizing the domain names.
On August 31, 2020, pursuant to a seizure warrant, the United States seized “Aletejahtv.com” and “Aletejahtv.org.” Visitors to the site received the following message: THIS WEBSITE HAS BEEN SEIZED. The domains for Aletejahtv.com and Aletejahtv.org have been seized by the United States Government.
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 District of Arizona, 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.
Four defendants, including two illegal aliens, sentenced for operating decade-long cocaine trafficking networkRead the Press Release
ATLANTA – Roberto Garza-Mendez, Shadarrian Grimes, Euklides Gonzalez-Hernandez, and Johnathan Pena have been sentenced for conspiracy to possess with intent to distribute cocaine. Garza-Mendez and Grimes confessed to having trafficked 200 kilograms of cocaine together during a ten-year span.
“Thanks to the diligent efforts of our law enforcement partners, these defendants’ days of distributing cocaine in the Atlanta community have ended,” said U.S. Attorney Byung J. “BJay” Pak. “Also, by seizing these defendants’ drug-related assets, we hope to send a clear message that drug traffickers will not be permitted to profit from the poison they distribute.”
“The sentencings for these criminals slams the door on a major conspiracy to peddle poison (cocaine) in our communities,” said Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “DEA, its multi-level law enforcement partners and the U.S. Attorney’s Office, are committed to tracking down and bringing to justice those who pollute our neighborhoods with illegal drugs.”
According to U.S. Attorney Pak, the charges and other information presented in court: Following a multi-month federal investigation, DEA agents learned the date and time that Garza-Mendez intended to sell several kilograms of cocaine to Grimes. DEA agents and Georgia State Patrol Officers followed Garza-Mendez from his home, stopped his car, and seized the cocaine, as well as a loaded firearm.
Agents then executed a search warrant at Garza-Mendez’s home and seized additional kilograms of cocaine, $18,000 in cash, and a loaded rifle. They also executed a search warrant at Grimes’ home and seized $36,000 in cash that Grimes intended to use to purchase the cocaine from Garza-Mendez. Drug trafficking paraphernalia and a loaded pistol were also present in Grimes’ home.
Garza-Mendez – an illegal alien twice removed from the United States – and Grimes confessed that they had trafficked 200 kilograms of cocaine with each other for more than a decade. Grimes further confessed that he purchased his Suwanee, Georgia, home and other assets, such as diamond watches and a luxury vehicle, with proceeds from the sale of cocaine he obtained from Garza-Mendez.
The DEA investigation also uncovered that Gonzalez-Hernandez and Pena were more recent additions to the Garza-Mendez/Grimes network. Shortly after the arrests of Garza-Mendez and Grimes, agents executed a search warrant at the Conyers, Georgia, residence of Gonzalez-Hernandez, an illegal alien, who agents identified as the operator of a cocaine stash house. Agents seized approximately seven kilograms of cocaine hidden in an air compressor tank in Gonzalez-Hernandez’s apartment. Agents also learned that Pena had been a courier for Garza-Mendez, transporting cocaine and money among the defendants. He was arrested without incident outside his Stone Mountain, Georgia, residence.
The defendants were sentenced by U.S. District Judge Timothy C. Batten, Sr., as follows:
- Roberto Garza-Mendez, 34, of Norcross, Georgia, was sentenced to sixteen years in prison to be followed by five years of supervised release.
- Shadarrian Grimes, 49, of Suwanee, Georgia, was sentenced to twelve years in prison, to be followed by five years of supervised release.
- Euklides Gonzalez-Hernandez, 41, of Conyers, Georgia, was sentenced to five years, three months in prison.
- Johnathan Pena, 27, of Stone Mountain, Georgia, was sentenced to two years, four months in prison, to be followed by five years of supervised release.
All four defendants previously pleaded guilty. As part of their sentences, the Court ordered the defendants’ illegally-acquired assets to be forfeited to the United States. Garza-Mendez and Gonzalez-Hernandez will be deported to Mexico following their terms of imprisonment.
The Drug Enforcement Administration investigated this case.
Assistant U.S. Attorney Trevor C. Wilmot 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.
Tennessee man sentenced for violent attempted armed carjackingRead the Press Release
ROME, Ga. - Michael Sean Conner has been sentenced for a violent carjacking he attempted in Adairsville, Georgia, during which he shot a young man asleep in his truck. Conner will serve this sentence consecutively to a seven-year sentence for a previous carjacking conviction in Tennessee, for a total sentence of 35 years of confinement.
“Conner’s senseless and depraved act left a young man paralyzed from the chest down,” said U.S. Attorney Byung J. “BJay” Pak. “His callous disregard for the lives of others justifies the very lengthy prison sentence he received in this case. Our office is grateful for the careful coordination of our federal, state, and local law enforcement partners whose collaboration ensured the success of this prosecution.”
“Mr. Conner’s sentence can never fully account for the suffering he inflicted on his victims,” said Arthur Peralta, Special Agent in Charge of ATF Atlanta. “In this case, the combined efforts of the Adairsville Police Department, the GBI, the ATF, and the U.S. Attorney’s Office worked to ensure that Mr. Conner will not have an opportunity to hurt anyone else for a very long time.”
“This sentence is the result of an effective partnership between our local and federal agencies. The GBI is dedicated to thoroughly investigating violent offenses leading to successful prosecutions to keep the streets safe from offenders such as Conner,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
“It is unfortunate that this heinous act occurred in the city of Adairsville. As the Chief, I am thankful for the resources provided to us by the GBI, ATF, and U.S. Attorney’s Office to assist in the investigation and prosecute this case to ensure justice was served for the victim,” said Adairsville Chief of Police Mike Jones.
According to U.S. Attorney Pak, the charges and other information presented in court: On May 7, 2018, the victim in this case, a young man unknown to Conner, was driving home to Florida after attending a wedding in Tennessee. He had stopped to nap at a gas station in Adairsville. Conner and two women, Kristy Lynn Davis and Destany Schubert, pulled beside the victim in a second vehicle. Conner tapped on the window of the victim’s truck, pointed a gun at the young man, and demanded that he give up his truck. Conner then shot the victim in the chest as he tried to roll up his window and back away from Conner, leaving him paralyzed from the chest down.
Conner and his female passengers were charged for the crime following Conner’s arrest for committing another armed carjacking in Tennessee within hours of the offense in Georgia.
Michael Sean Conner, 28, of Hixon, Tennessee, was sentenced to 28 years of confinement to be followed by three years of supervised release. The federal sentence will run consecutively to the seven years he is serving in Tennessee for another carjacking. Conner had previously pleaded guilty to the carjacking offense in Tennessee and received a sentence of seven years of confinement. The Georgia sentence will run consecutive to his Tennessee sentence, resulting in a total custodial sentence of 35 years of confinement.
Kristy Lynn Davis, 38, of Summerville, Georgia, who pleaded guilty to acting as Conner’s accessory, was sentenced to on August 13, 2020, to three years in prison to be followed by three years of supervised release.
Destany Schubert, 22, of Fort Oglethorpe, Georgia, who also pleaded guilty to acting as Conner’s accessory, received a sentence on June 19, 2020, of one year, six months in prison, followed by three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Georgia Bureau of Investigation, and the Adairsville Police Department.
Assistant U.S. Attorney Katherine M. Hoffer 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 drug dealer charged with possessing 170 kilograms of heroin and 36 guns in two metro residencesRead the Press Release
ATLANTA – Antonio DaShawn Daniels has been indicted on federal charges related to possession with the intent to distribute heroin, cocaine, and marijuana, and possession of a firearm in furtherance of drug trafficking.
“The quantity of drugs, money, and firearms allegedly controlled by Daniels highlights the scale of heroin and cocaine trafficked into this community by local drug dealers with high-level ties to international drug trafficking organizations,” said U.S. Attorney Byung J. “BJay” Pak. “Daniels allegedly used these ties to flood this district with drugs and reap the financial benefits. We will not tolerate the destruction of lives through the scourge of the drug trade.”
“The arrest of Daniels, along with the seizure of hundreds of kilograms of drugs, dozens of guns, and more than a million dollars in cash, represents a significant victory for DEA, our law enforcement partners, and – most of all – for the people of Atlanta,” said Acting Administrator Timothy J. Shea. “This case illustrates the devastating impact that violence fueled by drug trafficking can have on our communities. Drug traffickers, and the organizations they work with, use fear and violence to enrich themselves with little regard for the communities they destroy in the process. The DEA stands resolute with our law enforcement partners to protect the health, safety, and security of the American people.”
“Our community and our citizens are safer today because of the removal of a massive amount of drugs, weapons and cash that were destined to destroy lives,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI values our partnerships with federal, state and local law enforcement agencies. These results would not be possible without them.”
“This poly-drug trafficker brazenly continued his drug trafficking activities despite having served time in federal prison for drug distribution. His arrest removes yet another dangerous criminal from our streets and sends a clear message to others who may choose to follow the same perilous path. DEA, its law enforcement partners and the U.S. Attorney’s Office will relentlessly pursue and ultimately prosecute criminals like Daniels,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division.
According to U.S. Attorney Pak, the charges, and other information presented in court: In October 2019, federal agents uncovered ledgers from a Mexico-based drug trafficking organization showing that Daniels received just over 1,000 kilograms of cocaine between August 2018 and October 2019. The ledgers reflected that Daniels returned more than $31 million in drug proceeds to the organization that were eventually transported to Mexico.
During the investigation, federal agents identified multiple apartments and homes in the metro-Atlanta area that Daniels allegedly used to prepare and distribute drugs. On July 27, 2020, agents executed federal search warrants at those locations, which resulted in Daniels’ arrest and the seizure of a large amount of drugs, money, and weapons.
- Inside a studio apartment in Atlanta, agents found approximately 28 kilograms of heroin, six kilograms of cocaine, eight kilograms of marijuana, and more than $1 million in cash. There were 41 firearms stashed throughout the apartment, along with kilo-presses, scales, strainers with white powder residue, and a money counter.
- Inside a home in Atlanta, agents found 142 kilograms of heroin and four kilograms of cocaine.
In total, agents seized approximately 170 kilograms of heroin, 10 kilograms of cocaine, eight kilograms of marijuana, more than $1 million in cash, and 41 firearms.
Antonio DaShawn Daniels, a/k/a Freckleface Shawn, 46, of Atlanta, Georgia was indicted on August 11, 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 Drug Enforcement Administration, the Federal Bureau of Investigation, and the Doraville Police Department.
Assistant U.S. Attorney Nicholas Hartigan is prosecuting the case.
This case is presented as a part of Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement), which is an initiative launched by the U.S. Attorney’s Office to partner with federal and local law enforcement to fight the devastating effects that illegally-prescribed painkillers, heroin, and synthetic opioids, such as fentanyl have on our neighborhoods.
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.
U.S. Attorney Pak announces $500,000 award to provide housing to victims of human trafficking in AtlantaRead the Press Release
ATLANTA - U.S. Attorney Byung J. “BJay” Pak announced that Wellspring Living, in the Northern District of Georgia received $500,000 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime (OVC), to provide safe, stable housing and appropriate services to victims of human trafficking.
“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”
“A core mission of this office is the targeting and dismantling of human trafficking organizations operating in this district. The support our anti-trafficking prosecutors and investigators receive from victim advocates and non-governmental organizations, like Wellspring Living, is absolutely critical to our office’s success in combatting these horrific crimes,” said U.S. Attorney Pak. “This grant will provide essential resources to sex trafficking victims who are especially vulnerable due to ongoing fear of reprisal to themselves and their families, a wish to avoid embarrassment and public shame, and a simple desire to move on with their lives.”
“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Kathrine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”
“Wellspring Living is grateful for this investment in survivors of Human Trafficking through the recent OVC award,” said Wellspring Living Executive Director Mary Frances Bowley. “We are honored to work alongside incredible partners like the Justice Department, specifically the U.S. Attorney, to provide a safe and restorative environment for survivors to recover from the complex trauma of trafficking. As our survivors recover, the ability to work cooperatively with prosecutors provides vital progress to end trafficking.”
The grant, awarded to Wellspring Living, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. Wellspring Living is among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflects. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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.
South Georgia cocaine trafficker sentenced to 30 years in federal prisonRead the Press Release
ATLANTA - Alfonzo Jamal Lewis has been sentenced to 30 years in federal prison for trafficking five kilograms of cocaine in 2015.
“Illegal drugs destined to poison communities in southwest Georgia were stopped by our federal and state law enforcement partners,” said U.S. Attorney Byung J. “BJay” Pak. “Their outstanding work resulted in the seizure of a half-million dollars’ worth of cocaine and a lengthy term of imprisonment for a career drug dealer.”
“This investigation is indicative of cooperative federal, state, and local law enforcement efforts to rid our communities of this poison,” said Dan Salter, Executive Director, Atlanta-Carolinas HIDTA.
“This is another example of how partnerships benefit citizens by removing illegal drugs from our streets. It is critical that we continue to collaborate to keep dangerous drugs away from children and families. Fulton County Sheriff’s deputies are dedicated to this important duty and we are grateful to the U.S. Attorney’s Office for its unwavering commitment to this cause,” said Fulton County Sheriff Theodore “Ted” Jackson.
According to U.S. Attorney Pak, the charges and other information presented in court: On multiple occasions in late 2015, Lewis traveled from southwest Georgia to the Atlanta metro area and purchased bulk amounts of cocaine. He then took the cocaine back to the Albany, Georgia area to sell. On August 20, 2015, HIDTA agents observed Lewis entering and exiting a drug stash house in Decatur, Georgia, but did not attempt an arrest.
Four months later, on December 14, 2015, agents observed Lewis entering and exiting a drug stash house in East Point, Georgia. The Fulton County Sheriff’s Office and Georgia State Patrol stopped Lewis’s vehicle for speeding while Lewis was traveling back to Albany from East Point. A deputy sheriff recovered five kilograms of highly-pure cocaine from the backseat and arrested Lewis.
A federal grand jury charged Lewis with conspiracy to possess cocaine with intent to distribute and possession of cocaine with intent to distribute. After a three-day trial, Lewis was convicted on February 5, 2020 of both charges.
Alfonzo Jamal Lewis, a/k/a Pookie, 35, of Albany, Georgia, was sentenced on August 4, 2020, to 30 years in prison to be followed by ten years of supervised release.
The Atlanta-Carolinas HIDTA and Fulton County Sheriff’s Office investigated this case. The Georgia State Patrol, Georgia Bureau of Investigation, Monroe Police Department, Albany Police Department, and U.S. Marshals Service provided valuable assistance.
Assistant U.S. Attorney Theodore S. Hertzberg and former Emory Law School Extern Joseph N. Lenoff 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.
Georgia businessman charged with hoarding and price gouging face masks in violation of Defense Production ActRead the Press Release
ATLANTA - Milton Ayimadu has been arraigned on federal charges of hoarding and price gouging in violation of the Defense Production Act of 1950 (DPA). Ayimadu was charged by a criminal information.
“Ayimadu allegedly saw the unprecedented COVID-19 global pandemic as an opportunity to make a profit,” said U.S. Attorney Byung J. “BJay” Pak. “Desperate to find personal protective equipment during the pandemic, thousands of customers unfortunately paid his inflated prices.”
“It is disheartening that anyone is alleged to have taken advantage of consumers who are desperate to acquire protective equipment that could save theirs, and other people’s lives,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Using the resources of all of our federal partners, we are making every effort to pursue anyone who tries to take advantage of citizens during this global pandemic.”
“The Postal Inspection Service is committed to investigating individuals and companies that intentionally hoard critical protective supplies or sell those items above market prices during the COVID-19 global pandemic,” said Inspector in Charge Tommy D. Coke. “Postal Inspectors will continue to coordinate with our law enforcement partners to ensure these violators are brought to justice.”
“IRS Criminal Investigation will continue to defend our citizens against those exploiting the COVID-19 global pandemic for personal benefit,”, said James E. Dorsey, Special Agent in Charge IRS-Criminal Investigations. “Today’s charges show IRS Criminal Investigation is committed to utilizing our financial expertise wherever we are needed in coordination with other agencies.”
“When the nation needed facemasks the most, Ayimadu decided to turn our fears into dollars,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its partners are working diligently to investigate and arrest those criminals that have decided to use illegal business practices to increase their profits during this global pandemic.”
According to U.S. Attorney Pak, the charges, and other information presented in court: from early March 2020 to May 2020, during the COVID-19 global pandemic, Ayimadu engaged in hoarding and price gouging of more than 200,000 face masks in violation of the DPA.
On March 18, 2020, as COVID-19 spread across the country, the President of the United States invoked the powers of the DPA, which prohibits hoarding and price gouging–that is, selling in excess of prevailing market prices–certain materials that are designated as scarce materials. Because of the rapidly dwindling stock of personal protective equipment needed to care for seriously ill patients and prevent further spread of COVID-19, on March 25, 2020, the Secretary of Health and Human Services, with authority delegated by the President, designated certain health medical resources as scarce materials under the DPA. Among the materials designated were face masks that cover the user’s nose and mouth.
Ayimadu allegedly purchased more than 200,000 face masks from a foreign country for approximately $2.50 each and then re-sold them to American consumers, through his website, BabyPuuPu.com, for approximately $5.00 each—a markup of approximately 100 percent. During the two months in which Ayimadu sold face masks, he engaged in over 22,000 financial transactions. While Ayimadu priced his masks in excess of prevailing market prices to maximize his profits to the detriment of consumers desperate for personal protective equipment during the COVID-19 pandemic, manufacturers of authentic N95 masks continued selling face masks for the pre-pandemic price of under $2.00 per mask.
Milton Ayimadu, a/k/a Don Milton, 22, of Stockbridge, Georgia, was arraigned on August 6, 2020, before U.S. Magistrate Judge Russell G. Vineyard. Members of the public are reminded that the criminal information contains only charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Internal Revenue Service Criminal Investigation, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Tal C. Chaiken and Russell Phillips are prosecuting the case. Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, U.S. Attorney for the District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Five charged in connection with alleged Paycheck Protection Program (PPP) fraud schemeRead the Press Release
ATLANTA - Five small business owners have been indicted in connection with a fraudulent scheme to obtain nearly $4.1 million in loan funding under the Paycheck Protection Program (PPP).
“The PPP was enacted to provide emergency financial assistance to business owners who are suffering the economic effects caused by the COVID-19 pandemic,” said U.S. Attorney Byung J. “BJay” Pak. “The defendants allegedly took advantage of this critical financial assistance to fraudulently obtain funds that other small businesses desperately needed to keep their employees on the payroll. We will continue investigating and prosecuting those who seek to line their own pockets.”
“The allegations against these defendants are disturbing,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Trying to defraud a federal program that provides financial assistance to companies trying to keep their heads above water during a pandemic is something we are very serious about and making every effort to stop.”
“The Paycheck Protection Program is essential to survival for many small businesses during these unprecedented times,” said Small Business Administration Inspector General Hannibal “Mike” Ware. “Our Office will continue to combat fraud schemes that involve using PPP funds for personal gain and greed. I want to thank the Department of Justice and our law enforcement partners for their pursuit of justice.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: In April and May 2020, Darrell Thomas, Andre Lee Gaines, Kahlil Gibran Green, Sr., and Bern Benoit allegedly submitted, or assisted in the submission of, PPP loan applications on behalf of five businesses – Bellator Phront Group Inc. (owned by Thomas), Gaines Reservation and Travel LLC (owned by Gaines), Impact Creations LLC (owned by Green), Transportation Management Services, Inc. (owned by Benoit), and another business – seeking a loan of approximately $800,000 for each company.
In the loan applications, the defendants certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents and forms was true and accurate in all material respects.
In its PPP loan application, each business allegedly reported that it had between 63 and 69 employees, and approximately $319,000 to $332,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019. With the exception of one company’s reporting for one quarter, the five businesses reported an identical number of employees and an identical amount of payroll expenses for each quarter of 2019. In reality, however, none of the businesses had filed a Form 941 for any quarter in 2019 or for the first quarter of 2020. Four of the businesses also submitted with their applications fake bank statements that significantly inflated the funds in the businesses’ bank accounts. Indeed, two of the businesses did not open their bank accounts until after the time period reported on the fake bank statements.
After the PPP loan proceeds were deposited into the businesses’ accounts, Thomas, Gaines, Green, and Benoit transferred more than $2,000,000 into two of Thomas’s businesses: Bellator Phront Group, Inc. and Elite Executive Services, Inc. These transfers were purportedly for payroll services and rental payments, but none of the four businesses that sent money to Thomas’s companies had any legitimate business transaction with either of those companies. In addition, Gaines, through Gaines Reservation and Travel LLC, transferred approximately $335,000 to Carla Jackson’s company, Management Resource Services, Inc. Those payments were purportedly for a project that Management Resource Services, Inc. would perform for Gaines Reservation and Travel LLC, but the investigation revealed that no such project existed.
Based on the investigation, none of the companies allegedly engaged in any business-related transactions or used the PPP loan proceeds for any authorized purposes. In fact, Thomas used some of the funds transferred to Bellator Phront Group Inc. to purchase two luxury vehicles for more than $125,000 each: a Mercedes-Benz S-Class S65AMG and a Land Rover Range Rover. Jackson, meanwhile, used funds that she had received from Gaines Reservation and Travel LLC to make payments on two automobile loans. The other defendants likewise used the funds they received for various personal expenses and withdrawals. During the investigation, federal agents seized nearly $3.1 million dollars in PPP proceeds from ten bank accounts before the Defendants could further deplete these funds, and also seized Thomas’s Land Rover Range Rover.
Darrell Thomas, 34, of Duluth, Georgia, Andre Lee Gaines, 66, of Dallas, Georgia, Kahlil Gibran Green, Sr., 46, of Cleveland, Ohio, and Bern Benoit, 44, of Burbank, California, are charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, making false statements to a federally insured financial institution, and money laundering. Carla Jackson, 52, of Tucker, Georgia, is charged with money laundering. The defendants were indicted on August 4, 2020. Members of the public are reminded that the indictment only contains charges.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General.
Assistant U.S. Attorneys Tal Chaiken and Nathan Kitchens and Department of Justice Trial Attorney Siji Moore 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 online 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.
Five Charged in Connection with an over $4 Million Paycheck Protection Program Fraud SchemeRead the Press Release
Five individuals were charged in an indictment with fraudulently obtaining more than $4 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase luxury vehicles. Authorities have seized a Range Rover worth approximately $125,000, jewelry, over $120,000 in cash, and over $3 million from 10 bank accounts at the time of arrest.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia; Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office; and Special Agent in Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General (SBA OIG) Eastern Region made the announcement.
Darrell Thomas, 34 of Johns Creek, Georgia, Andre Lee Gaines 66 of Dallas, Georgia, Kahlil Gibran Green Sr., 46, of Cleveland, Ohio, and Bern Benoit, 44, of Burbank, California, were charged in an indictment filed in the Northern District of Georgia with conspiracy to commit bank and wire fraud, bank fraud, wire fraud, false statements to a financial institution and money laundering. Additionally, Carla Jackson, 52, of Tucker, Georgia was charged with money laundering. Thomas, Gaines, and Jackson were arrested this morning and appeared this afternoon before U.S. Magistrate Judge Russell G. Vineyard of the Northern District of Georgia.
The indictment alleges that Thomas, Gaines, Green, and Benoit submitted, or assisted in the submission of, PPP loan applications on behalf of five businesses – Bellator Phront Group Inc. (owned by Thomas), Gaines Reservation and Travel LLC (owned by Gaines), Impact Creations LLC (owned by Green), Transportation Management Services, Inc. (owned by Benoit), and Lee Operations LLC – seeking loans of approximately $800,000 for each company. Thomas, Gaines, Green, and Benoit caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ number of employees and payroll expenses. The financial institutions approved and funded over $4 million in loans.
The indictment further alleges that shortly after receiving the PPP funds, Thomas, Gaines, Green, and Benoit transferred the money to secondary bank accounts, including an account controlled by Jackson. After Jackson received the PPP funds, she further distributed the funds. Additionally, Thomas purchased a 2018 Mercedes-Benz S-Class S65AMG and a 2018 Land Rover Range Rover. In the days and weeks following the disbursement of PPP funds, the indictment alleges that Thomas, Gaines, Green, and Benoit did not make payroll payments as they claimed they would on their loan applications.
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.
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 was investigated by the FBI and the SBA OIG. Trial Attorney Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Tal Chaiken and Nathan Kitchens of the Northern District of Georgia are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Atlanta City Councilman Antonio Brown has been Indicted for Attempting to Defraud Several Financial InstitutionsRead the Press Release
ATLANTA – Atlanta City Councilman Antonio Brown has been indicted on multiple fraud charges in connection with Brown’s attempts to defraud several financial institutions by taking out loans and making credit card purchases – and then falsely claiming that he was the victim of identity theft and was not responsible for the charges or repaying the loans.
"For years, Antonio Brown allegedly sought to defraud a number of banks and credit card companies by falsely claiming that he was the victim of identity theft," said U.S. Attorney Byung J. "BJay" Pak. "Brown’s scheme was eventually brought to light, resulting in his indictment by the grand jury."
"This investigation is another example of the power of partnerships in combating financial fraud and identity theft," said Tommy D. Coke, Postal Inspector in Charge of the Atlanta Division. “Postal Inspectors are dedicated to pursuing individuals who seek to defraud for their own financial gain.”
"We are committed to working with our Federal law enforcement partners to aggressively pursue those who falsely claim their identity was stolen in an attempt to defraud financial institutions," said Gail S. Ennis, Inspector General of Social Security. "I thank the U.S. Postal Inspection Service and IRS Criminal Investigation for their efforts in this case, and the United States Attorney’s Office for bringing these charges."
According to U.S. Attorney Pak, the charges, and other information presented in court: Beginning in 2012, Antonio Brown opened a number of credit cards, which he then used to make thousands of dollars’ worth of purchases for his own personal benefit. Brown also obtained over $60,000 in automobile loans to finance the purchases of a Mercedes C300 and a Range Rover. Despite opening and using these credit cards and despite taking the money for the two automobile loans, Brown allegedly falsely claimed that his identity had been stolen and that someone else had made the credit card purchases or had taken out these loans.
The indictment further alleges that Brown provided false information to Signature Bank when applying for a $75,000 loan in August 2017. During the loan application process, Brown provided a personal financial statement falsely claiming that he earned $325,000 per year and had $200,000 in available cash or assets. Brown allegedly knew this information was false because he had recently submitted other loan applications reporting far less income and available cash or assets. For instance, in a July 2017 loan application to another bank, Brown submitted a 2016 federal income tax return reporting that he earned $125,000 per year (which was $200,000 less than what he represented that his income was to Signature Bank). Further, in an August 2017 loan application to yet another bank, Brown claimed he had an annual salary of $175,000 (which was $150,000 less than what he told Signature Bank), and only had $25,000 in available cash and assets (which was $175,000 less than what he told Signature Bank).
U.S. Attorney Pak noted that the charges in the indictment all relate to conduct that occurred before Brown was elected to the Atlanta City Council.
On July 29, 2020, the Grand Jury charged Antonio Brown, 35, of Atlanta, Georgia, with wire fraud, mail fraud, bank fraud, and making false statements on a bank loan application.
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 U.S. Postal Inspection Service, the Social Security Administration Office of Inspector General, and the Internal Revenue Service – Criminal Investigation Division are investigating this case.
Assistant U.S. Attorneys Thomas J. Krepp and Jeffrey W. Davis, Chief of the Public Corruption and Special Matters 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.
Forsyth man sentenced for attempted attack on the White HouseRead the Press Release
ATLANTA - Hasher Jallal Taheb has been sentenced for attempting an attack upon the White House. Taheb also planned attacks on the Statue of Liberty, Washington Monument, Lincoln Memorial, and a synagogue.
“Taheb painstakingly planned an attack on the White House that potentially jeopardized the lives of White House employees and visitors,” said U.S. Attorney Byung J. “BJay” Pak. “We are thankful to members of our community and our federal and state law enforcement partners who identified Taheb’s scheme and worked cooperatively to bring him to justice.”
“Taheb planned to conduct a terrorist attack on the White House as part of what he claimed was his obligation to engage in jihad,” said Assistant Attorney General for National Security John C. Demers. “And that was just one of the iconic American landmarks he wanted to target. Thanks to a tip from a member of the community and the work of the agents, analysts, and prosecutors responsible for this case, the threat posed by the defendant was neutralized and the defendant has now been sentenced for his planned terrorist attack.”
“Because of a tip from the public, the FBI Atlanta Joint Terrorism Task Force and our law enforcement partners began a year-long investigation that resulted in Taheb's arrest and potentially saved many lives,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The phrase 'If you see something, say something' may seem trite, but our citizens are our eyes and ears in our communities, one of our most important weapons in fighting terrorism, and this case exemplifies that.”
According to U.S. Attorney Pak, the charges and other information presented in court: In March 2018, a member of the Atlanta community reported concerns about Taheb to a local law enforcement agency, which then contacted the FBI. The community member reported that Taheb had become radicalized and was making plans to travel abroad. During an undercover operation conducted by the FBI, federal investigators learned that Taheb, in fact, applied for a passport and planned to travel overseas. At the same time, Taheb had begun planning domestic attacks in the United States. His targets initially included the White House and the Statue of Liberty. In December 2018, Taheb broadened his prospective targets in the Washington, D.C. area, to include the Washington Monument, the White House, the Lincoln Memorial, and a synagogue.
During undercover meetings with Taheb in January 2019, Taheb provided sketches of the White House and described the types of weapons and explosives he intended to use in the attacks, including semi-automatic weapons, improvised explosive devices, an anti-tank weapon, and hand grenades. FBI special agents arrested Taheb on January 16, 2019, after Taheb arrived at a pre-arranged location where he expected to obtain semi-automatic assault rifles, explosive devices, and an anti-tank weapon.Federal investigators searched Taheb’s computer following his arrest and found a video that he made. In the video, Taheb addressed “. . . America, its allies, its president, and its people.” He recounted his grievances with American policy and proclaimed that America would not see peace unless it changed its foreign policy, as he was a man who loved death more than Americans love life. He also encouraged other Muslims to fight. After entering his guilty plea, Taheb said that he intended “to carry out a martyrdom operation as a tactic of jihad against America.”
Hasher Jallal Taheb, 23, of Cumming, Georgia, has been sentenced by U.S. District Judge Mark H. Cohen to 15 years in prison to be followed by three years of supervised release. Taheb pleaded guilty to these charges on April 1, 2020.
This case was investigated by the FBI Atlanta Joint Terrorism Task Force. Investigators included the U.S. Secret Service, Homeland Security Investigations, U.S. Customs and Border Protection, Diplomatic Security Service, U.S. Army, Cobb County Police Department, Gwinnett County Police Department, and the FBI. The Forsyth County Sheriff's Office also provided assistance.
The case was prosecuted by Assistant U.S. Attorneys Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, and Matthew Carrico, Deputy Chief of the Organized Crime and Gangs Section, and Trial Attorneys Danielle Rosborough and B. Celeste Corlett of the Department of Justice National Security Division.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Convicted sex offender pleads guilty to operating a child pornography chat groupRead the Press Release
GAINESVILLE, Ga. - Terence Dewayne Dixon has pleaded guilty to conspiracy to advertise child pornography. Dixon ran a Kik chat group that he named “House of 1000 Littles.” In 2018, the chat group involved more than 20 members from around the world who talked about and traded child pornography on a daily basis before the group was shut down in October 2018.
“Dixon and his chat group traded these disgusting files without regard for the lives they impacted,” said U.S. Attorney Byung J. “BJay” Pak. “Individuals who share images of the sexual abuse of children feed the horrific exploitation of children, creating ongoing trauma to these vulnerable young victims and their families each time their image is distributed.”
“It is detestable that this predator delighted in seeing images of children being victimized, but to make matters worse, he organized an online haven for others to discuss and traffic in this filth,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta and its state and local partners will continue to identify and arrest these predators that are victimizing and stealing the innocence of our youth.”
“For this defendant to take the images of innocent children and pass them around in order to exploit them and use them to arouse in a sexual nature is absolutely despicable. The GBI is committed to working with our partners to stop this criminal behavior and protect our young ones,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the charges and other information presented in court: As early as November 2017, Dixon created a chat group on the social media app, Kik, and named it “House of 1000 Littles.” Members of Dixon’s group discussed how they were sexually aroused by children and sent one another links to child pornography files on a daily basis until October 2018. Investigators identified most of the other members of the chat group, living all across the United States, including in Georgia, Michigan, Ohio, Illinois, New York, Louisiana, Tennessee, and California. On one day, in or about January 2018, Dixon shared 21 links. On another occasion, in February 2018, he bragged that his shared link contained 5,000 videos of child pornography.
Sentencing for Terence Dewayne Dixon, also known as “Devilman Crybaby”, 37, of Houston, Texas, has not been scheduled yet.
This case is being investigated by the Department of Homeland Security, Homeland Security Investigations, and the Georgia Bureau of Investigation.
Assistant U.S. Attorney Jennifer Keen is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta man arraigned for embezzling over $200,000 from his disabled father’s VA accountRead the Press Release
ATLANTA – William Dorsey, Jr., has been arraigned for embezzling over $200,000 from his father’s beneficiary account funded by the U.S. Department of Veterans Affairs (VA.)
“We must be diligent in protecting our elderly citizens, especially our veterans,” said U.S. Attorney Byung J. “BJay” Pak. “We are focused on preventing and punishing the exploitation and abuse of our most vulnerable citizens.”
“Fiduciaries assume a solemn duty to care for veterans who served their country through their military service and now are unable to care for themselves. The VA Office of Inspector General is dedicated to working with our law enforcement partners to ensure that any fiduciary who embezzles VA funds intended to provide necessary support to our nation’s disabled veterans is held responsible,” said David Spilker, Special Agent in Charge, VA Office of Inspector General.
According to U.S. Attorney Pak, the charges, and other information presented in court: On May 10, 2010, William Dorsey, Jr., signed a fiduciary agreement agreeing to manage the benefit payments provided by the VA to his father, William Dorsey Sr., a 67-year-old disabled Vietnam veteran diagnosed with Alzheimer’s Disease and dementia. According to medical records from the secure medical center where he resides, William Dorsey, Sr., is wheel-chair bound, cannot communicate, and requires total assistance with his daily activities.
As part of the fiduciary agreement, Dorsey, Jr., agreed to spend the VA benefit funds only for his father’s daily needs, to never comingle funds, to never withdraw cash from the account, and to keep accurate records and receipts. However, by the time he was removed as fiduciary seven years later in May 2017, banking records indicate all of these conditions had been violated, including the direct transfer of money from his father’s account to his own personal account. According to a financial analysis conducted by the VA, over $200,000 remains unaccounted for.
During this same time period, nursing staff reported that Dorsey, Sr., only needed approximately $50-$100 to cover expenses each month, and that William Dorsey, Jr., commonly provided items of inferior quality, such as used oversized clothing and half empty bottles of shampoo. According to one social worker supervisor, the attending nurses felt compelled on occasion to buy “basic necessities” for Dorsey, Sr., out of their own pocket.
William Dorsey, Jr., 42, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Alan J. Baverman. 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 the U.S. Department of Veterans Affairs, Office of the Inspector General, Criminal Investigations Division.
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.
Former Georgia attorney sentenced to two years in federal prison for theft of client fundsRead the Press Release
ATLANTA - Carla B. Gaines, an attorney formerly licensed in Georgia, has been sentenced to federal prison for stealing client money and lying about the theft.
“Gaines stole over $300,000 in client money and then repeatedly lied about it, including twice under oath,” said U.S. Attorney Byung J. “BJay” Pak. “We hope that this prison sentence brings a measure of justice to the defendant’s victims, who were abused and had their trust violated.”
“Gaines compounded her deceit by lying under oath and is another example of the FBI's commitment to holding accountable anyone who violates their sworn oath to uphold the Constitution of the United States,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Her actions not only violated her clients’ trust, but also insulted every lawyer who honors and respects the oath they took.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Carla B. Gaines was an attorney, licensed in Georgia, until she was disbarred on November 18, 2019. From August 2014 through March 2016, she stole $337,400 that she had received from Clayton County, Georgia, government, to hold in escrow for payment to a Georgia business, Kelete, Inc., which owned a gas station and convenience store in College Park, Ga. After the theft, Gaines lied to Clayton County and Kelete to lull them into believing that she still had the money and payment was on the way.
In 2014, Clayton County entered into an agreement with Kelete for Kelete to sell a right of way or easement through Kelete’s property to the County, for $712,400. Gaines was retained to serve as the escrow agent for this real estate transaction. Clayton County transferred $712,400 to Gaines for her to hold in escrow and complete the transaction.
In November 2015, Clayton County and Kelete closed the real estate deal. Gaines paid $375,000 to Kelete and its bank at the time of closing. Under the settlement agreement, Gaines was required to hold the remaining $337,400 in escrow until Kelete removed certain trade fixtures and improvements on the property. In March 2016, Kelete completed the removal and requested the remaining payment of $337,400. But Gaines never paid, despite repeated demands. Instead of holding the $337,400 in escrow as required, Gaines had diverted the funds to pay for personal and law firm expenses.
Beginning in March 2016, when payment was demanded, Gaines repeatedly made false representations to Clayton County and Kelete about whether she had the money and whether payment was on the way. For example, Gaines falsely claimed that the wire was “pending,” that the wire was “stuck,” that she had a check ready for Kelete, that she was “awaiting a call from the bank,” that “the bank was holding the wire,” that she had “straightened out the issue,” and that the “wire should be processed Monday.” These representations were false. No wires were stuck, pending, held, or on their way; and no check was ready. Gaines had far less than $337,400 in her bank accounts at the time she made these misrepresentations.
Kelete sued Gaines to recover the $337,400 it was owed. As part of that civil proceeding, Gaines lied in two depositions, in March 2017 and June 2018. Gaines testified that she had paid a portion of Kelete’s funds to another client, a pastor, in error. Gaines also testified that she had called the pastor and informed him of the mistake, and that he had promised to pay the money back to Gaines. Those representations were false.
Gaines, 61, of Mableton, Georgia, was sentenced to two years in prison to be followed by three years of supervised release, and ordered to pay $330,900 in restitution. She was convicted after pleading guilty to theft from a local government that receives federal funding.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Stephen H. McClain, 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.
Atlanta man convicted of armed assault of federal mail carrierRead the Press Release
ATLANTA, Ga. – Michael Terrell has pleaded guilty to forcibly assaulting a federal mail carrier, and brandishing a firearm in furtherance of that crime of violence.
“Terrell’s conduct is especially egregious as he showed no regard for the life of the mail carrier who was simply doing his job,” said U.S. Attorney Byung J. “BJay” Pak. “This kind of senseless attack jeopardizes the safety of both postal employees and the general public.”
“The safety and security of Postal Service employees is core to the mission of the Postal Inspection Service,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “We will continue to work with our law enforcement partners to help protect our communities from the significant threats posed by criminals.”
“Crime, and the people who commit them, are destroying our communities,” said Arthur Peralta, ATF Special Agent in Charge. “Mr. Terrell’s actions show his complete disregard for his community and the safety of those who live there.”
“This assault on a representative the United States Postal Service (USPS) is disturbing and unacceptable. Criminals who would seek to harm public servants and people who seek to use the USPS as a means to traffic drugs must be held accountable to the fullest extent of the law,” said Atlanta Interim Police Chief Rodney Bryant.
According to U.S. Attorney Pak, the charges, and other information presented in court: On March 2, 2019, the DeKalb County Police Department and U.S. Postal Inspectors investigated the armed assault of a mail carrier at a restaurant in Tucker, Georgia. The mail carrier had just delivered a parcel to the cashier at the restaurant when Terrell grabbed the parcel and followed the mail carrier to his postal vehicle.
Terrell then attempted to block the mail carrier’s access to the vehicle, and forced his way inside the vehicle, and took the keys. Terrell began rummaging through the vehicle looking for the missing contents of the parcel, later determined to have been a large quantity of marijuana. Terrell then pulled a firearm on the mail carrier before fleeing the scene.
At the time of the assault, Michael Terrell, 25, of Decatur, Georgia, was under indictment in Fulton County, Georgia, for possession with intent to distribute marijuana and possession of a firearm in furtherance of a felony on December 7, 2018.
Assistant U.S. Attorney Laurel R. Boatright prosecuted the case.
The U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the DeKalb County Police Department, the City of Atlanta Police Department, and the Georgia State Patrol are investigating this case.
This case is bought as a part of the Project Safe Neighborhoods (PSN) initiative. 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.
U.S. Attorney reminds taxpayers to be careful as tax-day approachesRead the Press Release
ATLANTA - With the extended tax deadline of July 15 for individual taxpayers quickly approaching, the U.S. Attorney’s Office urges caution. It is important to be aware of tax scams and to be compliant in filing and paying federal taxes timely. Tax cheats are becoming more sophisticated in their schemes and are finding new ways to cheat the system as well as gaining access to your personal and tax information.
“Criminals continue to victimize taxpayers with sophisticated tax fraud schemes,” said U.S. Attorney Byung J. “BJay” Pak. “Be honest, truthful, and timely in your tax filings, and beware of others who look to take advantage of you and the tax system.”
“Those taxpayers who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't. As we approach the end of the tax filing season, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today,” said James E. Dorsey, Special Agent in Charge of the Atlanta Field Office. “The convictions and sentencings outlined below emphasize that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system.”
The U.S. Attorney’s Office for the Northern District of Georgia, along with agents of IRS-Criminal Investigation and other law enforcement partners, actively investigates and prosecutes tax fraud and combats criminals willing to steal identities and commit tax fraud on the unsuspecting public. Over the past year, multiple tax investigations were charged and resolved. The following are highlights of some of those cases:
- Larry Scott. Scott was sentenced to two years in prison for failing to disclose to the City of Atlanta that while he served as its Director of Contract Compliance, he also served as the business manager for a consulting firm seeking contracts in the Atlanta-metropolitan area. Scott also failed to report on his taxes the majority of the income earned from the consulting firm.
- Thomas Holmes. Former tax preparation business owner Thomas Holmes pled guilty and was sentenced to three years, one month imprisonment for preparing and filing hundreds of fraudulent federal tax returns between 2011 and 2019. In total, Holmes defrauded the federal government out of more than $2.6 million. When preparing returns for clients, Holmes listed false Schedule C business losses and false Schedule A itemized deductions, causing taxpayers to claim millions of dollars in refunds that they were not entitled to. When the IRS issued those refunds, Holmes frequently kept a portion of the fraudulent refunds for himself and paid the balance to his clients. During the investigation, the IRS revoked Holmes’ e-filing privileges, but Holmes continued to file fraudulent returns through the mail.
- Allan and Stacy Spagnardi. Both Spagnardis were sentenced to four years, three months in prison after using their chiropractic clinic to commit healthcare fraud and for defrauding the Internal Revenue Service. Despite earning well over $1 million in personal income in 2014 and 2015, the Spagnardis failed to file federal income tax returns or pay federal income taxes for those tax years and instead took steps to hide their true income from IRS. After the Spagnardis were indicted, they continued to take steps to hide their income from the IRS, including by filing a false federal income tax return in early 2018.
- Vladimir Pierre a/k/a Jimmy Valentine. Pierre pleaded guilty to theft of government funds and aggravated identity theft. He admitted that between approximately January 2015 and April 2018, he filed over 150 fraudulent returns, a significant number of which involved the use of stolen identities, seeking more than $1 million in refunds. Pierre also admitted that as a result of his scheme he caused more than $340,000 in losses to the federal government. Pierre was sentenced four years, nine months in prison.
- Angela McBride. McBride pled guilty to filing a fraudulent, retaliatory lien against former IRS Commissioner John Koskinen. She was sentenced to one year in prison, with six months to be served in home confinement. After McBride filed a frivolous income tax return for 2013, the IRS notified McBride that she would be subject to a $5,000 penalty unless she filed a corrected tax return. Instead of filing a corrected return, McBride filed a lien with the DeKalb County clerk of court purporting to assign the $5,000 penalty issued against her to then-IRS Commissioner John Koskinen.
- Xiao-Jiang Li. On May 8, 2020, Li pleaded guilty to filing a false tax return, for failing to report foreign income earned in China as a Thousand Talents Program participant and researcher. From 2012 to 2018, Li worked at Chinese universities conducting research, earning at least $500,000 in foreign income that he never reported on his federal income tax returns. Li was sentenced to one year of probation and ordered to pay restitution in the amount of $35,089. He was also ordered to file lawful income tax returns for the years 2012 through 2018 within the first two months of his probation and fully cooperate with the Examination Division, Internal Revenue Service, in making a complete and accurate determination of all taxes, penalties, and interest that he owes.
- Don Terry and Jeffrey Smith. Terry and Smith pleaded guilty to Conspiracy to File False Claims against the United States. Terry and Smith were charged for their role in a tax fraud scheme in which numerous fraudulent and false individual and corporate income tax returns were submitted to IRS falsely claiming refunds. The refund checks were deposited into a bank account controlled by one of the co-conspirators for disbursement among the participants. Terry and Smith both entered a guilty plea to the conspiracy charge on January 27, 2020.
- Barbara Moore. Moore pleaded guilty on June 3, 2020 to a one count Indictment that charged her with Filing a False Claim Against the United States. Moore, who was a tax preparer at the time, submitted a fraudulent corporate income tax return that falsely listed a tax credit used to support the false claim for a tax refund of $104,046.
- Timothy Cobb. Cobb pled guilty to fraud and filing a false tax return. Cobb stole money from investors and then failed to report the stolen income on his federal income tax returns.
- Jo Ann Macrina. Former City of Atlanta Commissioner of the Department of Watershed Management Macrina has been charged with conspiratorial bribery, bribery, and tax evasion in connection with money and other items of value that she accepted from City of Atlanta and DeKalb County contractor Lohrasb “Jeff” Jafari. It is alleged that between June 2016 and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments. She did not report any of these funds on her 2016 income tax return.
- Jim C. Beck. On August 14, 2019, suspended Georgia Insurance Commissioner Beck was charged in a superseding indictment with four counts of aiding in the preparation and filing of false federal income tax returns for the years of 2015 thorough 2018. According to the indictment, Beck’s tax returns for those years were fraudulent because they substantially overstated business expenses and substantially understated business profits associated with two of Beck’s businesses, Creative Consultants and GA Christian Coalition.
- Todd and Julie Chrisley. Reality television stars Todd and Julie Chrisley, along with their accountant, Peter Tarantino, were charged for conspiring to defraud the IRS. The Chrisleys are alleged to have taken steps to avoid paying taxes on the millions of dollars they earned while appearing on the television show "Chrisley Knows Best." They were indicted by a federal grand jury on August 13, 2019.
- Luscious Mack. On November 12, 2019, a federal grand jury indicted Lucious Mack, charging him with 17 counts of filing false claims against the United States and four counts of theft of government money. The false claims charges stem from Mack allegedly filing fraudulent 1040 and 1040X Individual Income Tax Returns and fraudulent 1120 and 1120X Corporate Income Tax Returns. All the tax returns fraudulently claimed tax refunds to which Mack was not entitled. In all, Mack falsely claimed refunds totaling $860,483.
- Alfonzo Stevens. In May 2019, Stevens was indicted on one count of obstructing or impeding the IRS in connection with the collection of his outstanding tax liabilities. The indictment alleges that for more than half-a-decade, Stevens has been impeding the IRS’s collection through various methods.
- Bryan McElroy. McElroy was indicted on charges of attempting to file fraudulent, retaliatory liens against federal government officials.
- Leta Simmons. On July 13, 2020, Leta Simmons of Fairburn, Georgia, was charged with preparing fraudulent federal income tax returns. Simmons conducted a tax return preparation business through which she assisted clients with preparing and filing their returns. On behalf of her clients but without their knowledge or consent, Simmons filed multiple tax returns that unlawfully claimed false business losses and false itemized deductions, resulting in greater tax refunds. Many of Simmons’s clients did not even own or operate businesses. The IRS-CI investigation revealed that Simmons had filed multiple fraudulent returns for the tax years 2013-2017, resulting in a loss to the IRS in excess of $350,000.
Members of the public are reminded that the indictments 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.
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.- Larry Scott. Scott was sentenced to two years in prison for failing to disclose to the City of Atlanta that while he served as its Director of Contract Compliance, he also served as the business manager for a consulting firm seeking contracts in the Atlanta-metropolitan area. Scott also failed to report on his taxes the majority of the income earned from the consulting firm.
Former supervisor in DeKalb County’s Tax Commissioner’s Office pleads guilty to bribery and blackmailRead the Press Release
ATLANTA - Gerald D. Harris, a former supervisor in the DeKalb County Tax Commissioner’s Office, has pleaded guilty to accepting bribe payments from customers to unlawfully register vehicles and then trying to blackmail a bribe payer by threatening to inform on her to the FBI.
“By repeatedly accepting bribe payments, Harris peddled his honor for money and in doing so sold out the citizens of DeKalb County – sometimes for as little as $100 per car,” said U.S. Attorney Byung J. “BJay” Pak. “By then attempting to blackmail one of bribe payers, Harris showed his seemingly limitless greed.”
“Harris’s blatant disregard for the law and abuse of his position help to erode the public's trust in government,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We continually work hard with our partners in law enforcement to regain that trust by seeking justice for those who choose their own financial interest over the taxpayers they serve.”
“I applaud the swift effort of the U.S. Attorney's Office, the FBI and other law enforcement agencies in bringing this case to a quick resolve. The DeKalb County Tax Commissioner's Office remains committed to safeguarding the trust of DeKalb's taxpayers and weeding out individuals who act unlawfully in any way,” said DeKalb County Tax Commissioner Irvin J. Johnson.
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 mid-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 is alleged to have accept at least $30,000 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, Georgia, 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.”
Based on the conduct set forth above, on February 28, 2020, the U.S. Attorney charged Gerald D. Harris, 51, of Fulton County, Georgia, in a criminal information with one count each of federal program bribery and blackmail. Harris pleaded guilty to both counts.
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 Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Assistant U.S. Attorney Nicholas Hartigan 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.
- 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;
Couple arrested for laundering over $400,000 on behalf of India-based phone scammersRead the Press Release
ATLANTA – Federal agents have arrested husband and wife Mehulkumar Manubhai Patel and Chitali Dave for laundering over $400,000 on behalf of India-based phone scammers.
“Criminal India-based call centers sought to prey on vulnerable members of our community and steal from them by misleading them over the phone,” said U.S. Attorney Byung J. “BJay” Pak. “Those, like Patel and Dave, who allegedly launder money in the United States on behalf of foreign-based fraudsters, are the linchpins of those schemes.”
“I commend the Department of Justice and Social Security’s Office of the Inspector General for their aggressive work to fight fraudsters who target Americans through various phone scams,” said Andrew Saul, Commissioner of Social Security. “People who receive suspicious calls should just hang up, and never give out their personal information. They should go online to oig.ssa.gov to report these Social Security scams.”
“This arraignment is a bold statement that we will aggressively pursue overseas phone scammers—and their facilitators in this country—who are stealing Americans’ hard-earned money,” said Inspector General Ennis. “I want to thank the U.S. Attorney’s Office in the Northern District of Georgia for bringing these charges, and our law enforcement partners for their efforts in investigating these scams and bringing the perpetrators to justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Criminal India-based call centers defraud U.S. residents, including the elderly, by misleading victims over the telephone utilizing scams such as Social Security and tech support scams.
As part of their Social Security scam, India-based callers pose as federal agents in order to mislead victims into believing their Social Security numbers were 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 mail cash to aliases used by other members of the fraud network, including Patel and Dave.
As part of the tech support scam, callers allegedly induced victims to send money in exchange for supposed technical support for their computers. The callers then provided nothing in return. At times, callers misled the victims into providing remote access to their computers and the callers would access the victims’ bank accounts. The callers routinely misled the victims by making it appear as though the caller added money to the victims’ bank accounts. The callers then instructed the victims to mail cash to aliases used by other members of the fraud network, including Patel and Dave.
Based on misrepresentations made during the calls, the victims, including a number of Georgia residents, mailed money to a network of individuals that allegedly laundered funds on behalf of the overseas fraud network. From on or about May 2019, to on or about January 2020, Patel and Dave allegedly laundered over $400,000 sent by at least twenty-four victims of the scams.
On June 9, 2020, Mehulkumar Manubhai Patel, 36, and Chitali Dave, 36, both of Lexington, South Carolina, were charged by a federal grand jury with money laundering conspiracy and money laundering. Patel was arraigned on June 19, 2020 before U.S. Magistrate Judge Christopher C. Bly. Defendant Dave was arraigned on July 14, 2020 before U.S. Magistrate Judge Linda T. Walker.
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.
Separately, on July 9, 2020, the U.S. District Court Judge William M. Ray, II sentenced defendant Joish Patel to over two years in prison by for his role in a criminal India-based phone scam. In 2017, Patel picked up over $140,000 dollars in victim funds using fake IDs. Some victims in that case sent money to aliases used by Joish Patel in response to an IRS scam where callers claimed they owed taxes or would be arrested. Other victims were tricked into believing that they needed to send money in order to qualify for loans.
The Social Security Administration - Office of the Inspector General is investigating the Mehulkumar Manubhai Patel and Chitali Dave case, with the assistance of the U.S. Secret Service, Aiken Department of Public Safety (South Carolina), Naperville Police Department (Illinois), Lexington County Sheriff’s Department (South Carolina), Rocky River Police Department (Ohio), and Henrico County Police Division (Virginia). The U.S. Treasury Inspector General for Tax Administration (TIGTA) investigated the Joish Patel case.
Northern District of Georgia Elder Justice Coordinator and Assistant U.S. Attorney Jolee Porter and Special Assistant U.S. Attorney Diane Schulman are prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
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 Social Security, SSA will send a letter with payment options and appeal rights. If you suspect you have received a Social Security scam call, report it at https://oig.ssa.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.
Universal Health Services, Inc. and related entities to pay $122 million to settle False Claims Act allegations relating to medically unnecessary inpatient behavioral health services and illegal kickbacksRead the Press Release
ATLANTA - Universal Health Services, Inc., UHS of Delaware, Inc.(together, UHS), and Turning Point Care Center, LLC (Turning Point), a UHS facility located in Moultrie, Georgia, have agreed to pay a combined total of $122 million to resolve alleged violations of the False Claims Act for billing for medically unnecessary inpatient behavioral health services, failing to provide adequate and appropriate services, and paying illegal inducements to federal healthcare beneficiaries, the Department of Justice announced today. UHS owns and provides management and administrative services to nearly 200 acute care inpatient psychiatric hospitals and residential psychiatric and behavioral treatment facilities nationwide. UHS is headquartered in King of Prussia, Pennsylvania.
“Illegal inducements should never play a role in a patient’s decision regarding treatment, especially when a patient is seeking care for addiction and other behavioral health needs,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “Our office remains committed to pursuing unlawful arrangements that undermine the integrity of federal healthcare programs.”
“The Department of Justice is committed to protecting patients and taxpayers by ensuring that the treatment provided to federal healthcare beneficiaries is reasonable, necessary, and free from illegal inducements,” said Acting Assistant Attorney General Ethan P. Davis for the Department of Justice’s Civil Division. “The Department will continue to be especially vigilant when vulnerable patient populations are involved, like those served by behavioral healthcare providers.”
“Providing top quality health care to service members and their beneficiaries is the primary mission of the Defense Health Agency. It's unfortunate a company tried to take advantage of a system that ensures health care for those men and women who are on the front lines every day protecting our nation," said Lt. Gen. Ronald Place, director, DHA. “We commend the Department of Justice and its partners for bringing justice to those responsible for knowingly defrauding TRICARE beneficiaries.”
“VA OIG continues to be vigilant in holding those accountable who defraud VA programs and ensure that tax payer dollars are appropriately utilized for the care of our nation’s veterans and their dependents. Also, we thank our law enforcement partners and the United States Attorney’s Office for their support,” said Acting Special Agent in Charge Jeffrey Stachowiak, Department of Veterans Affairs, Office of Inspector General.
“The OPM OIG does not tolerate predatory behavior that risks the health and safety of vulnerable patients,” said Thomas W. South, Deputy Inspector General for Investigations for the Office of Personnel Management. “We are grateful for the fine work of our investigators and Department of Justice partners. Today’s settlement demonstrates OPM-OIG’s unwavering commitment to investigating conduct that affects vulnerable FEHBP enrollees.”
“Protecting the health and safety of Medicare and Medicaid patients is one of our primary concerns. Our Corporate Integrity Agreement provides future protection for patients and federal health care programs through controls and monitoring designed to ensure that UHS’s behavioral health facilities provide quality services and medically necessary care to patients,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and Human Services. “This case demonstrates that the government will aggressively pursue allegations of substandard inpatient care.”
As part of a comprehensive civil settlement, UHS will pay the United States and participating states a total of $117 million to resolve allegations that its hospitals and facilities knowingly submitted false claims for payment to the Medicare, Medicaid, TRICARE, Department of Veterans Affairs, and Federal Employee Health Benefit programs for inpatient behavioral health services that were not reasonable or medically necessary and/or failed to provide adequate and appropriate services for adults and children admitted to UHS facilities across the country.
In a separate civil settlement, Turning Point will pay the United States and the State of Georgia $5 million to resolve allegations that it provided free or discounted transportation services to induce Medicare and Medicaid beneficiaries to seek treatment at Turning Point’s inpatient detoxification and rehabilitation program or intensive outpatient program.
The government alleged that, between January 2006, and December 2018, UHS’s facilities admitted federal healthcare beneficiaries who were not eligible for inpatient or residential treatment because their conditions did not require that level of care, while also failing to properly discharge appropriately admitted beneficiaries when they no longer required inpatient care. The government further alleged that UHS’s facilities billed for services not rendered, billed for improper and excessive lengths of stay, failed to provide adequate staffing, training, and/or supervision of staff, and improperly used physical and chemical restraints and seclusion. In addition, UHS’s facilities allegedly failed to develop and/or update individual assessments and treatment plans for patients, failed to provide adequate discharge planning, and failed to provide required individual and group therapy services in accordance with federal and state regulations.
Of the $117 million to be paid by UHS to resolve these claims, the federal government will receive a total of $88,124,761.27, and a total of $28,875,238.73 will be returned to individual states, which jointly fund state Medicaid programs.
With respect to Turning Point, the government alleged that, from January 2007 until May 1, 2019, the facility provided free or discounted transportation services to Medicare and Medicaid beneficiaries to induce them to seek detoxification and rehabilitation treatment at Turning Point’s inpatient or intensive outpatient programs.
The government’s settlement with UHS resolves 18 cases pending in the Eastern District of Pennsylvania, Western District of Michigan, the Eastern District of Michigan, and Northern District of Georgia under the qui tam, or whistleblower, provision of the False Claims Act, which permit private parties to file suit for false claims on behalf of the United States and to share in any recovery. The whistleblower share of the federal portion of the settlement will be $15,862,457.03. The settlement with Turning Point resolves an additional qui tam lawsuit filed in the Northern District of Georgia. The whistleblower in that suit will receive $861,853.64, from the federal share of the Turning Point settlement.
Contemporaneous with the civil settlements announced today, UHS, on behalf of its inpatient acute and residential behavioral health facilities, has entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General (OIG), which will remain in effect for five years. UHS must retain an independent monitor, selected by the OIG, which will assess UHS’s Behavioral Health Division’s patient care protections and report to the OIG. In addition, an independent review organization will perform annual reviews of UHS’s inpatient behavioral health claims to federal health care programs.
The settlement with UHS was the result of a collaborative effort among numerous federal and state agencies. The Commercial Litigation Branch of the Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Eastern District of Pennsylvania handled the cases, with substantial assistance from the U.S. Attorneys’ Offices for the Middle District of Florida, the Northern District of Georgia, the Eastern District of Michigan, the Western District of Michigan, the Middle District of Georgia, the Northern District of Illinois, the Middle District of North Carolina, the Western District of North Carolina, the District of Oregon, the Middle District of Pennsylvania, the Southern District of Texas, the District of Utah, the Eastern District of Virginia, the Western District of Virginia, the Northern District of Oklahoma, and the District of Wyoming, as well as the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation of UHS in partnership with the Office of Inspector General for the Department of Health and Human Services; the Department of Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of Inspector General; the Office of Personnel Management, Office of Inspector General; and the Federal Bureau of Investigation. The Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Georgia handled the Turning Point matter with assistance from the Office of Attorney General of Georgia and the Office of Inspector General for the U.S. Department of Health and Human Services.
The civil settlement with UHS resolved the following captioned cases: United States ex rel. Gardner v. Universal Health Services, Inc., 2:17-cv-03332-AB (E.D. Pa.); United States ex rel. Naylor v. Universal Health Services, Inc., 2:14-cv-06198-AB (E.D. Pa.); United States ex rel. Jain v. Universal Health Services, Inc., et al., No. 2:13-cv-06499-AB (E.D. Pa.); United States ex rel. Chisholm v. Universal Health Services, Inc., et al., 2:17-cv-01892-AB (E.D. Pa.); United States ex rel. Doe, et al. v. Universal Health Services, Inc., et al., No. 2:14-cv-00921 (E.D. Pa.); United States ex rel. Pate v. Behavioral Hospital of Bellaire, et al., 2:15-cv-00554-AB (E.D. Pa.); United States ex rel. Brinson, et al. v. Universal Health Services, Inc., et al., 2:14-cv-07275-AB (E.D. Pa.); United States ex rel. Mitchell v. Turning Point Care Center, Inc., et al., 2:15-cv-00259-AB (E.D. Pa.); United States ex rel. Peterson v. Universal Health Services, Inc., et al., 2:17-cv-01897-AB (E.D. Pa.); United States ex rel. Conaway, et al. v. Universal Health Services, Inc., et al., 2:17-cv-02233-AB (E.D. Pa.); United States ex rel. Eborall v. Universal Health Services, Inc., et al., 2:17-cv-03249-AB (E.D. Pa.); United States ex rel. Sachs, et al. v. Universal Health Services, Inc., et al., 2:17-cv-03604-AB (E.D. Pa.); United States ex rel. Klotz v. Universal Health Services, Inc., et al., 2:17-cv-05163-AB (E.D. Pa.); United States ex rel. Brockman, et al. v. Universal Health Services, Inc., et al., 2:17-cv-05350-AB (E.D. Pa.); United States ex rel. Glass v. Hughes Center, LLC., et al., 2:18-04018-AB (E.D. Pa.); United States ex rel. Parent-Leonard v. Forest View Psychiatric Hospital, et al., No. 1:18-cv-1426 (W.D. Mich.); United States ex rel. Russell, et al. v. Universal Healthcare Services, Inc., et al., No. 1:19-CV-0764 (N.D. Ga.); United States ex rel. McLauchlin, et al. v. Havenwyck Holdings, Inc., et al., No. 2:19-cv-10832 (E.D. Mich.).
Assistant U.S. Attorney Mellori Lumpkin-Dawson represented the United States in the case captioned United States ex rel. Russell, et al. v. Universal Healthcare Services, Inc., et al., No. 1:19-CV-0764 (N.D. Ga.) .
The settlement with Turning Point resolved the case captioned United States ex rel. Heatley v Turning Point Care Center LLC, et al., 1:17-CV-3869-MLBAT (N.D. Ga.).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
This case was handled by Assistant U.S. Attorney Austin Hall for the Northern District of Georgia.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former employee of medical packaging company pleads guilty to disrupting PPE shipments by damaging a computerRead the Press Release
ATLANTA - Christopher Dobbins has pleaded guilty to the charge of reckless damage to a protected computer for deleting and modifying his former employer’s electronic shipping and other business records. Dobbins’s former employer is a medical packaging company that ships, among other things, personal protective equipment (“PPE”) to healthcare providers. Dobbins’s conduct delayed the shipment of PPE during the COVID-19 pandemic.
“Preventing scarce medical supplies from being delivered to healthcare workers and hospitals that need them is illegal,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to the cooperation of the victim company and the hard work of our law enforcement partners, we were able to bring this investigation to a swift conclusion and obtain a conviction for this egregious act.”
“Thanks to the quick reaction of the medical packaging company in contacting the FBI, we were able to react quickly and arrest this disgruntled employee,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “During this world wide epidemic it is imperative that we make sure crucial medical supplies are not disrupted or diverted from the front lines of medical care.”
According to U.S. Attorney Pak, the charges and other information presented in court: In early March 2020, Dobbins was terminated from his employment at a medical device packaging company. While employed at the company, Dobbins had administrator access to the computer systems containing the company’s shipping information. When his employment was terminated, he also lost his access to the company’s computer systems.
On March 26, Dobbins received his final paycheck from the company. Three days later, on March 29, 2020, he used a fake user account that he had previously created while still employed at the company to log into the company’s computer systems. He then conducted a computer intrusion that disrupted and delayed the medical device packaging company’s shipments of PPEs.
While logged in through the fake user account, Dobbins created a second fake user account and then used that second account to edit approximately 115,581 records and delete approximately 2,371 records. After taking these actions, Dobbins deactivated both fake user accounts and logged out of the system. The edits and deletions to the company’s records disrupted the company’s shipping processes, causing delays in the delivery of much-needed PPEs to healthcare providers.
Sentencing for Christopher Dobbins, 40, of Duluth, Georgia, is scheduled for October 16, 2020, at 10:00 a.m., before Chief U.S. District Judge Thomas W. Thrash.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Samir Kaushal is 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.
Former Union General Hospital CEO and two Blairsville doctors sentenced to federal prison for illegally prescribing and obtaining pain pillsRead the Press Release
GAINESVILLE, Ga. - John Michael “Mike” Gowder, James Heaton, and George David Gowder have been sentenced to federal prison. Both Mike Gowder and Heaton were convicted on October 24, 2019, after a two-week jury trial on 102 counts related to illegally prescribing and obtaining more than 15,000 doses of prescription pain medications outside the usual course of professional practice and for no legitimate medical purpose. In addition, Heaton was convicted of 27 counts of issuing illegitimate prescriptions to two female patients. David Gowder pleaded guilty on March 15, 2019, to illegally dispensing opiates outside the scope of professional practice and without a legitimate medical purpose.
“The abuse of prescription drugs and its related criminal activity is a danger in many of our communities - one we have made a central focus of our office,” said U.S. Attorney Byung J. “BJay” Pak. “Jurors in this case sent a clear message that the illicit prescribing and obtaining of controlled substances will not be tolerated.”
Robert J. Murphy, the Special Agent in Charge of the DEA’s Atlanta Field Division stated, “In this case, the dispensing of addictive prescription pain medication under the guise of a licensed medical professional’s care is not about the good of the community or an individual’s specific health needs; it is about the greed of those involved in illegal prescribing practices.” DEA and its law enforcement partners will continue to expend its time, energy and resources in an effort to stem the tide against the growing opioid epidemic. The spirited level of law enforcement cooperation and the prosecution by the U.S. Attorney’s Office made this investigation a success.”
“I simply want to personally thank our federal partners, the DEA and their outstanding agent. Also, Assistant U.S. Attorneys William McKinnon and Laurel Boatright, and especially U.S. Attorney for the Northern District of Georgia BJay Pak, who without his diligent interest in these cases prosecution and conviction would not have been possible. During my 37 years in law enforcement at the state and local level as Sheriff I have never seen or even heard of a federal prosecutor that was so intent on aiding local law enforcement as U.S. Attorney Pak. He helps make the system work as it should with cooperation, assistance, and a pro-found interest in our needs,” said Mack Mason, Sheriff, Union County.
“The Cherokee County Sheriff’s Office (NC) would like to thank all the partners involved with the investigation and prosecution of this case. It is great to know that a good working relationship among law enforcement agencies keeps drug users and dealers from hiding across state lines to conduct their illegal activities,” said Derrick Palmer, Sheriff, Cherokee County, North Carolina.
“An excellent job was done by all, from the local level, to the state level and at the federal level. The public places a great deal of trust in medical professionals and in order to combat the opioid crisis drug dealers in white coats must be weeded out as well,” said Dennis M. Troughton Sr., Director, Georgia Drugs and Narcotics Agency.
According to U.S. Attorney Pak, the charges and other information presented in court: From 2011 to 2015, Mike Gowder served as the Chief Operating Officer and later Chief Executive Officer of Union General Hospital (“the Hospital”) in Blairsville, Georgia. Dr. James Heaton operated a family practice clinic in Blairsville and worked as the Medical Director of the Nursing Home of the Hospital. Dr. David Gowder was the Emergency Room Director of the hospital and a member of the Hospital’s Board of Directors (until April 2015).
On April 11, 2015, Dr. David Gowder was arrested by the Union County Sheriff’s Office after presenting to two local pharmacies three forged oxycodone prescriptions purportedly issued by a hospital colleague. He admitted that he had become addicted to oxycodone. Investigators later learned that, since mid-2011, David Gowder had been routinely writing or “calling in” to local pharmacies high quantity, high-dose opiate prescriptions in the names of family members and fictitious patients (including alleged missionaries). Investigators also learned that many of the prescriptions were filled by hospital employees at the instruction of David Gowder. He also stole pills from some of his patients at the hospital and elsewhere.
During this same time, investigators also learned that Dr. James Heaton had illegally prescribed increasing quantities of hydrocodone and oxycodone to Mike Gowder between 2012 and 2015, knowing that those prescriptions were issued outside the usual course of professional practice and that the pills obtained with the prescriptions had no legitimate medical purpose. Heaton violated numerous standards of medical practice by prescribing the pills to Mike Gowder, without adequately documenting the medical need for the prescriptions in his patient file and without monitoring patient abuse of the pills he obtained. During the three-and-half years in which Heaton prescribed more than 15,000 hydrocodone and oxycodone pills to Mike Gowder, Heaton recorded only six of the prescriptions in his patient file for Mike Gowder.
Starting in 2012, Mike Gowder obtained oxycodone by fraud, subterfuge, and deception by filling the illegal prescriptions from Heaton at different pharmacies in an effort to conceal the large numbers of pills that Heaton was prescribing to him. In addition to filling the prescriptions at pharmacies in Georgia, Mike Gowder often travelled to North Carolina and Tennessee to fill multiple prescriptions a month at pharmacies in those states. On numerous occasions, Heaton wrote two prescriptions for oxycodone for Mike Gowder on the same day. On other occasions, Mike Gowder traveled to North Carolina to fill one prescription, and then traveled to Tennessee to fill a second prescription, to hide the fact that Heaton had written multiple prescriptions to him on the same day. During this time, Mike Gowder recommended that the hospital purchase Heaton’s sleep study, increase Heaton’s compensation for various roles at the hospital, and that Heaton serve as a member of the Hospital Board of Directors.
Investigators also learned that Heaton issued prescriptions for hydrocodone, oxycodone, and methadone to two female patients outside the usual course of professional practice and without a legitimate medical purpose, including by ignoring obvious signs that the two women were abusing the medications and/or had become addicted. Oxycodone, hydrocodone, and methadone are powerful pain medications that are listed as controlled substances under federal law because each has a high potential for psychological and physical abuse and dependence. Oxycodone, which may be combined with acetaminophen, is sold generically under brand names including Percocet, Endocet, Oxycontin, and Roxicodone. Hydrocodone is sold generically or under brand names including Lortab, Vicodin, and Norco. Methadone is an opioid pain medication that is also used in opioid dependence therapy
The defendants in this case have been sentenced as follows:
- John Michael “Mike” Gowder, 62, of Nashville, Tennessee, has been sentenced to one year and one day in prison.
- Dr. James Heaton, 63, of Blairsville, Georgia, has been sentenced to six years in prison.
- Dr. David Gowder, 63, of Blairsville, Georgia, was sentenced to one year, six months in prison on June 10, 2020, after pleading guilty to illegally dispensing opiates outside the scope of professional practice and without a legitimate medical purpose.
The Drug Enforcement Administration, the Union County (Georgia) Sheriff's Office, Cherokee County (North Carolina) Sheriff’s Office, Georgia Drugs and Narcotics Agency, and Zell Miller Mountain Parkway Drug Task Force are investigating this case.
Assistant U.S. Attorney Laurel R. Boatright, Deputy Chief of the Narcotics and Dangerous Drugs Section (PSN), and former Assistant U.S. Attorney William McKinnon prosecuted the case.
This case was brought as part of Operation SCOPE, Strategically Combatting Opioids through Prosecution and Enforcement. SCOPE is our initiative combining our efforts (criminal, civil, and educational) with those of our law enforcement partners to create one unified front in the battle against the opioid/heroin epidemic. One important aspect of Operation SCOPE is to prosecute those who are illegally prescribing, or distributing, painkillers.
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.
Atlanta hospital system to pay $16 million to resolve false claims allegationsRead the Press Release
ATLANTA - Piedmont Healthcare, Inc., an Atlanta-based hospital system, has agreed to pay $16 million to settle allegations that it violated the False Claims Act by billing Medicare and Medicaid for procedures at the more expensive inpatient level of care instead of the less costly outpatient or observation level of care. The settlement also resolves allegations that Piedmont paid a commercially unreasonable and above fair market value to acquire Atlanta Cardiology Group in 2007 in violation of the federal Anti-Kickback Statute.
“Billing the government for unnecessary inpatient services wastes precious government resources and taxpayer dollars,” said U.S. Attorney Byung J. “BJay” Pak. “All appropriate action will be taken to ensure that beneficiaries of federal health care programs received services untainted by overcharges and improper financial incentives.”
“Our watchdog agency will continue to aggressively investigate healthcare providers that attempt to boost their profits by billing Medicare and Medicaid for medically unnecessary services and engaging in kickback schemes,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services Office of Inspector General. “We will not tolerate such greed-fueled schemes, which bilk taxpayer-funded health care programs and undermine the public’s trust in the healthcare industry.”
“Our office will continue to work with our federal partners to ensure that healthcare providers abide by rules that serve as important safeguards for public safety and public resources,” said Georgia Attorney General Chris Carr.
The settlement resolves two separate False Claims Act allegations. First, between 2009 and 2013, Piedmont’s case managers allegedly overturned the judgment of its treating physicians on numerous occasions and billed Medicare and Medicaid at the more expensive inpatient level of care even though the treating physicians recommended performing the procedures at the less expensive outpatient or observation level of care. Second, in 2007 Piedmont allegedly acquired the Atlanta Cardiology Group, a physician practice group, in violation of the federal Anti-Kickback Statute by paying a commercially unreasonable and above fair market value for a catheterization lab partly owned by the practice group.
This settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by a former Piedmont physician under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf the United States and obtain a portion of the government’s recovery. The whistleblower in this case will receive $2,967,400.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Georgia Medicaid Fraud Control Unit, and Health and Human Services—Office of the Inspector General, with substantial assistance from the Department of Justice Civil Division, Commercial Litigation Branch (Frauds Section).
Assistant U.S. Attorney Armen Adzhemyan represented the United States in this matter and Assistant Attorney General James Mooney represented the State of Georgia.
The case is captioned United States and Georgia ex rel. Doe v. Piedmont Healthcare, Inc. et al., 1:16-CV-780. The claims resolved by this settlement are allegations only and there has been no determination of liability.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Reality TV star indicted on federal chargesRead the Press Release
ATLANTA - Maurice Fayne, who stars in Love & Hip Hop: Atlanta, has been indicted by a federal grand jury. Fayne is charged with bank fraud, making a false statement to a federally-insured financial institution, and money laundering, all in connection with a Paycheck Protection Program (PPP) loan. In addition, Fayne is charged with wire fraud in connection with a Ponzi scheme.
“The emergency lending provisions of the Paycheck Protection Program were intended to help small businesses survive the COVID-19 pandemic,” said U.S. Attorney Byung J. “BJay” Pak. “Fayne allegedly used PPP loan proceeds to live a luxurious lifestyle that included leasing a Rolls Royce and purchasing expensive jewelry, as well as making payments to individuals involved in a Ponzi scheme. We intend to investigate and charge anyone who inappropriately diverts these critical funds for personal gain.”
“Despite the difficult times the recent Coronavirus pandemic has caused, the FBI and our federal partners continue to be vigilant in making sure funds provided by programs like PPP are used as intended,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We won't allow anyone's personal greed to misdirect federal emergency assistance to their own pockets, rather than go to the businesses who need it to stay afloat.”
“The Paycheck Protection Program is intended to keep the nation’s small businesses afloat during these unprecedented times,” said Inspector General Hannibal “Mike” Ware of the Small Business Association Office of Inspector General. “It is unconscionable to fraudulently attempt to gain access to PPP funds at the expense of those who need it most. Our office and its law enforcement partners will aggressively investigate false statements made in attempt to receive funds from SBA’s programs . I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: From approximately August 2014 through approximately May 2020, Fayne posed as the owner of a profitable trucking business. In truth, Fayne’s trucking business never generated enough revenue to cover its expenses. Nevertheless, Fayne caused approximately 20 individuals to invest over $5 million in his trucking business. Fayne promised that he would use the investors’ money to purchase and operate trucks. Instead, Fayne used the investors’ money to pay his personal debts and expenses, and to fund an extravagant lifestyle for himself. During the wire fraud scheme, Fayne transferred more than $5 million to a casino to cover his personal gambling and entertainment expenses.
On April 15, 2020, Fayne signed and submitted to United Community Bank (UCB) a PPP loan application in the name of his trucking business, Flame Trucking, stating that the business had 107 employees and an average monthly payroll of $1,490,200. In seeking a loan in the amount of $3,725,500, Fayne certified that the loan proceeds would be used to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule.”
As soon as Fayne took control of the PPP loan proceeds, he began using the PPP loan proceeds for improper purposes, including the following:
- $40,000 for past-due child support;
- $50,000 for restitution owed in a previous fraud case;
- $65,000 in cash withdrawals;
- $85,000 for custom-made jewelry;
- $136,000 to lease a 2019 Rolls-Royce;
- $230,000 to associates who helped him run a Ponzi scheme;
- $907,000 to help an associate start a new business.
Fayne allegedly structured those financial transactions to conceal and disguise the nature, location, source, ownership, and control of the proceeds, which raised red flags at UCB. When UCB asked Fayne to provide additional information about Flame Trucking’s finances, Fayne responded by sending UCB what he represented to be October, November, and December 2019 bank statements for Flame Trucking’s account at Arvest Bank. As Fayne knew, however, those bank statements were fraudulent, because Arvest Bank had shut down Flame Trucking’s account in September 2019.
- When Fayne was interviewed by federal agents, he claimed that he used all of the PPP loan proceeds to pay payroll and other business expenses incurred by Flame Trucking. Fayne expressly denied using any of the PPP loan proceeds for personal purposes.
During the investigation, federal agents seized the following proceeds of Fayne’s bank fraud scheme:
- $617,000 seized from seven bank accounts;
- $136,000 used as a down payment on the 2019 Rolls-Royce;
- $79,482 in cash seized at Fayne’s residence;
- eight Kenworth T-680 trucks;
- six Great Dane refrigerated trailers;
- a $3,750 diamond ring;
- a $24,500 diamond bracelet; and
- a $52,000 Rolex watch.
Maurice Fayne, a/k/a Arkansas Mo, 37, of Dacula, Georgia, was indicted on June 24, 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.
The Federal Bureau of Investigation in conjunction with the Atlanta Complex Financial Crimes Task Force supported by the Gwinnett County Sheriff’s Office, and the Small Business Administration-Office of the Inspector General are investigating this case.
Assistant U.S. Attorneys Russell Phillips, Bernita Malloy, and Michael J. Brown 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.
GBI receives $2.4 million Department of Justice opioid grantRead the Press Release
ATLANTA - The Department of Justice‘s Office of Community Oriented Policing Services (COPS Office) today announced nearly $42 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, fentanyl, carfentanil and prescription opioids. The Georgia Bureau of Investigation will receive $2,474,918 in funding to support investigations into trafficking in heroin, fentanyl, carfentanil or the unlawful distribution of prescription opioids.
“The GBI is a great partner in our efforts to address the heroin and opioid problem in the Northern District through Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement),” said U.S. Attorney Byung J. “BJay” Pak. “This grant award will give the State of Georgia much-needed resources to continue our efforts to prosecute drug dealers and doctors who are illegally prescribing and distributing opioids.”
“The GBI is honored to receive these grant funds from the Justice Department to enhance our current drug strategy to combat illegal and harmful opioids. Having this additional support from our federal partners will help us in our effort to keep Georgia communities healthy and safe,” said Vic Reynolds, GBI Director.
“The scourge of opioid and methamphetamine use continues to take a devastating toll on our nation’s communities,” said COPS Office Director Phil Keith. “By providing these resources to law enforcement to help combat the further spread, the COPS Office is demonstrating our commitment to this Administration’s priority of reducing drug use and protecting our citizens from this public health and safety crisis.”
“The GBI is a steadfast law enforcement partner in combatting the scourge of drug trafficking in the Southern District,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “This funding is a welcome boost for our work to seek and destroy the poison piped into our communities.”
“Georgia will benefit greatly from this federal support backing our state’s fight against illegal drug trafficking,” said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. “The professionals at GBI are heroically engaged in combatting the manufacture and sale of deadly drugs in communities across the Middle District of Georgia. We are all grateful for their relentless effort in this battle.”
Drug overdose deaths and opioid-involved deaths continue to increase in the United States. Deaths from drug overdose are up among both men and women, all races, and adults of nearly all ages, with more than three out of five drug overdose deaths involving an opioid. More than 130 people die every day in the United States after overdosing on opioids, while methamphetamine continues to be one of the most commonly misused stimulant drugs in the world and is the drug that most contributes to violent crime.
The COPS Office is awarding more than $29.7 million in grant funding to 14 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF), of which the GBI is a recipient. AHTF provides three years of funding directly to state-level law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil and other opioids. This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, carfentanil or the unlawful distribution of prescription opioids.
Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is also awarding $12 million to 12 state law enforcement agencies. These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies are being awarded three years of funding through CAMP to support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories, or methamphetamine trafficking.
The AHTF and CAMP funding has a tremendous impact on state investigative and seizure work. During the five month period between October 2019 and February 2020, current AHTF grantees reported the seizure of over $4 million in cash and 1,213 firearms. Similarly, for CAMP, grantees reported seizures of more than $7 million in cash and 1,577 firearms.
The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/ahtf-award.
The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/camp-award.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 135,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.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.
Leader of widespread prison-based drug conspiracy admits guilt, joining seventeen othersRead the Press Release
ATLANTA – Jesus Sanchez-Morales, the leader of an extensive drug conspiracy involving multiple state prisons in Georgia, has pleaded guilty, joining sixteen of his conspirators. Sanchez-Morales, who was incarcerated in a Georgia prison, admitted to brokering innumerable drug transactions throughout the Atlanta area from his prison cell using contraband cell phones. He was already serving a sentence for drug trafficking offenses at the time he committed this offense.
“An insidious network of drug trafficking prison inmates has been disrupted by the apprehension and conviction of Sanchez-Morales and his team,” said U.S. Attorney Byung J. “BJay” Pak. “Inmates tempted to use a phone in state or federal prison now know that when they are caught using a cell phone from prison, they will face more time in prison. And when those cell phones are used for the proliferation of lethal drugs in our community, the consequences will be severe.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented, “DEA is fully committed to pursuing criminals who sell drugs, whether they’re selling them on the streets or inside a prison. This high-level drug trafficker was the “ring-leader” who orchestrated a number of drug transactions throughout metropolitan Atlanta while incarcerated. Consequently, his criminal acts landed him even more deserving time in prison. The spirited level of law enforcement cooperation and the subsequent prosecution by the U.S. Attorney’s Office made this investigation a success.”
According to U.S. Attorney Pak, the charges and other information presented in court: The case resulted from an extensive DEA investigation involving federal court-authorized wiretaps of multiple contraband prison cell phones. During the course of the investigation, agents learned that a network of prison inmates was using contraband cell phones to broker drug transactions throughout the Atlanta area, including arranging to receive drug shipments from out of state and from Mexico. These prison brokers relied on an organized cadre of lieutenants and footmen outside of prison to store, package and distribute multiple varieties of illegal drugs using drug stash houses. Other members of the organization were responsible for laundering the drug proceeds, including sending multiple low-dollar money wires to Mexico using various money remitters.
The drug trafficking and money laundering organization repeatedly threatened violence to uncooperative members. At least 18 firearms were seized, including firearms containing notches, believed to represent instances where the firearm had been used to take a life. At one point, agents learned of a plot to abduct and murder a member of the conspiracy and successfully averted the plan.
Throughout the conspiracy, Sanchez-Morales was frequently referred to as “Patron,” or boss. Thirty-nine participants in total were indicted as part of this conspiracy and charged with a combination of drug, gun, and money laundering offenses.
During the course of the investigation, agents seized more than 175 kilograms of methamphetamine, 25 gallons of liquid methamphetamine, 12,000 fentanyl pills, as well as kilogram-quantities of fentanyl powder, heroin and marijuana. Agents also dismantled two methamphetamine conversion laboratories and seized $343,000 in cash.
In addition to Sanchez-Morales, the following sixteen defendants have been convicted to date before U.S. District Judge Leigh Martin May as part of this case:
- Enrique Rodriguez Govea, a/k/a Gordo, 24, of Atlanta, Georgia, has been sentenced to 10 years in prison, to be followed by five years of supervised release.
- Daniel Gonzalez, a/k/a Burro, 28, of Fairburn, Georgia, has been sentenced to five years and four months in prison, to be followed by five years of supervised release.
Edgar Ochoa-Martinez, a/k/a Michoacano, 35, of Georgia, has been sentenced to 10 years in prison, to be followed by five years of supervised release. - Rafael Alvarez, a/k/a Rafa, 64, of Montgomery, Alabama, has been sentenced to 13 years in prison, to be followed by five years of supervised release.
- Emmanuel DeSantos Nieto, a/k/a Duy, 26, of Union City, Georgia, has been sentenced to 12 years in prison, to be followed by five years of supervised release.
- Benjamin Villareal Perez, a/k/a Durango, 42, of Georgia, has been sentenced to 19 years and eight months in prison, to be followed by five years of supervised release.
- Sentencing for Cristian Hernandez-Lovo, a/k/a Zipote, 28, of Atlanta, Georgia, is set for July 7, 2020.
- August Mario Castillo, 52, of Fairburn, Georgia, has been sentenced to 15 years in prison, to be followed by five years of supervised release.
- Leonardo Rosas, 27, of Fairburn, Georgia, has been sentenced to six years in prison, to be followed by five years of supervised release.
- Shelly Class, 40, of Atlanta, Georgia, has been sentenced to 10 years in prison, to be followed by five years of supervised release.
- David Chavez-Ortiz, 49, of Montgomery, Alabama, has been sentenced to four years in prison, to be followed by five years of supervised release.
- Sentencing for Samantha Fagundes, 24, of Union City, Georgia, is set for June 29, 2020.
- Sentencing for Salvador Valencia-Zavala, 58, an inmate at Dooly State Prison in Unadilla, Georgia, has yet to be set.
- Sentencing for Aszavious Anderson, a/k/a Guapachoso, 43, of Atlanta, Georgia, is set for August 25, 2020.
- Sentencing for Erin Bella Cortez, 32, of Dallas, Georgia, is set for August 5, 2020.
- Sentencing for Allison Daniel, 43, of Covington, Georgia, is set for August 13, 2020.
Sixteen additional defendants have been arraigned and are awaiting trial:
- Juan Torres Chavez, 48, an inmate at Dooly State Prison in Unadilla, Georgia;
- Juan Ramirez, a/k/a Mene, 27, an inmate at Washington State Prison in Davisboro, Georgia;
- Martin Maldonado, 38, an inmate at Washington State Prison in Davisboro, Georgia;
- Joseph Dominic Edwards, 43, of Batesburg, South Carolina;
- Jaime Chavez, a/k/a Nasty, 32, of College Park, Georgia;
- Jordan Bowers, 33, of Red Bank, Tennessee;
- Lilia Martinez Rodriguez, a/k/a Lilly, a/k/a Maria, 58, of Atlanta, Georgia;
- Jesus Molina-Ortiz, a/k/a Oso, 45, of Fairburn, Georgia;
Jamar Tyrone Zanders, 31, of Columbus, Georgia;
- Jason Garcia-Lara, a/k/a Gordo, 24, of Atlanta, Georgia:
- Taurus Basil Stephens, 27, of Vidalia, Georgia;
- Aricus Cantrell Holloway, 36, of Columbus, Georgia;
- Antwonette Jarnez Thomas, 21, of Conyers, Georgia;
- Raheem Jamal Morris, a/k/a Black, 31, of Lithia Springs, Georgia;
- Marvin Gaye Banks, 48, of Cartersville, Georgia;
- Alejandro Vazquez-Lopez, a/k/a Micho, 24, of Mexico.
The following individuals have been charged as part of the drug conspiracy but has not yet been apprehended:- Eusebio Panigua-Paz, a/k/a Margaro, 50, of Mexico.
- Five other defendants remain at large.
Members of the public are reminded that the indictments only contain charges. The defendants who have not been convicted are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
The Drug Enforcement Administration is investigating these cases. The U.S. Marshals Service, Georgia State Patrol, Atlanta Police Department, Cobb County Sheriff’s Office, South Fulton Police Department, Georgia Department of Corrections, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Federal Bureau of Investigation are providing valuable assistance during these investigations.
Assistant U.S. Attorneys Alison B. Prout, Erin H. Harris, and Scott McAfee are prosecuting the cases.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Former City of Atlanta Commissioner of Watershed Management indicted for allegedly accepting bribes from contractor Jeff JafariRead the Press Release
ATLANTA – Former City of Atlanta Commissioner of the Department of Watershed Management Jo Ann Macrina has been charged with conspiratorial bribery, bribery, and tax evasion in connection with money and other items of value that she accepted from City of Atlanta and DeKalb County contractor Lohrasb “Jeff” Jafari. In March 2019, Jafari was charged in a 51 count indictment with conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring. Jafari was separately charged with one additional count of bribery and tampering with a witness in connection with bribes he paid to Macrina.
“Macrina allegedly decided that accepting bribes from Jafari was more important than following the rules established for contracting by the City of Atlanta – and thereby betrayed the public’s trust,” said U.S. Attorney Byung J. “BJay” Pak. “In exchange for those bribe payments, Macrina manipulated the evaluation process to direct work to Jafari’s firm.”
“Circumventing the process to hire contractors for the city by accepting bribes to profit personally is the highest form of public corruption,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is extremely disturbing when the person alleged to have accepted bribes is the head of a department. Our public corruption squad is determined to hold those serving the public in positions of trust accountable.”
Macrina undermined the process of fair and open competition when she accepted bribes from a contractor in exchange for money and other things of value," said James Dorsey, Special Agent in Charge, IRS Criminal Investigation. "In addition, Macrina failed to report bribes and income on her income tax returns. The IRS is committed to aggressively investigating those individuals who engage in corruption. These actions demonstrate our collective efforts to enforce the law and ensure public trust.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From April 2011 through May 20, 2016, Macrina served as the Commissioner of the Department of Watershed Management for the City of Atlanta. PRAD Group, Inc. (“PRAD Group”) was an architectural, design, and construction management and services firm with its headquarters and primary place of business in Atlanta, Georgia. Jafari was the Executive Vice President of PRAD Group at that time. During Macrina’s tenure, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner.
From at least from 2014 through May 20, 2016, Macrina met with Jafari alone and with others, including Adam Smith, the former Chief Procurement Officer, to discuss City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was allegedly actively seeking contracts, projects, and work with the City of Atlanta. In July 2014, the City of Atlanta issued a request for proposal for architectural, engineering, and design services contract FC-7383. Vendors subsequently submitted proposals to earn an opportunity to be one of the firms to service this contract. By late 2014, evaluators chosen from various City departments met on several occasions to score the proposals. JP2, a joint venture led by PRAD Group, scored at the bottom of the rankings. Macrina and others then decided to conduct interviews with the proponent firms and reevaluate the proposals in an effort to alter the final scores. To ensure that certain firms were ultimately selected, Macrina replaced two evaluators that previously represented the Department of Watershed Management with herself and another individual. In July 2015, JP2 was selected as one of six vendor firms for FC-7383. In January 2016, Macrina issued two notices to proceed to JP2 for work for the Department of Watershed Management. Task Order One was valued at over $9 million. Task Order Two was valued at over $2 million.
During this time, Macrina discussed potential employment with Jafari and allegedly accepted items of value from Jafari in exchange for or as a reward for providing Jafari with access to information and preferential treatment with respect to City of Atlanta projects. In particular, Macrina allegedly accepted $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, and landscaping work at her home from Jafari either directly or through an employee of PRAD. On May 20, 2016, Macrina’s employment ended with the City of Atlanta. Shortly thereafter, she began working for Jafari and PRAD Group. Between June 2016 and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments. She did not report any of these funds on her 2016 income tax return.
Also beginning at least in 2014 to January 2017, Jafari paid thousands of dollars in bribe payments to Adam Smith, the then-Chief Procurement Officer of the City of Atlanta. Jafari and Smith met at Atlanta-area restaurants where they discussed City business, among other things, and Jafari would generally pay Smith $1,000 in cash in the restaurant bathroom. Jafari similarly paid bribes to a local official in DeKalb County in April and August of 2014. In exchange for Jafari’s payments to Smith, Smith met with Jafari regularly and provided Jafari with information and counsel regarding the City of Atlanta’s procurement processes, among other information. When PRAD Group or a joint venture in which PRAD Group was a partner became a successful proponent on a City of Atlanta contract or Request for Proposal, Smith approved and submitted the award of those projects. Smith also approved task and/or purchase orders for those projects.
In February 2017, Jafari became aware of the Federal investigation into his payments to Smith, at which time he confronted Smith in an effort to intimidate and persuade Smith to provide false information to federal law enforcement about the payments, instructing Smith to deny taking bribe money from Jafari. Similarly, following the execution of a federal search warrant at PRAD’s offices in 2017, Jafari instructed a PRAD employee to lie to the FBI about gifts that she purchased for Macrina on Jafari’s instructions while she and Macrina were traveling abroad in the spring of 2016.
Between 2014 through 2016, Jafari also willfully failed to pay income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and allegedly used corporate funds for personal expenses, among other things, to avoid the assessment of income tax. In 2014, Jafari owed at least $150,000; in 2015, at least $300,000; and in 2017, at least $700,000 to the IRS. Jafari is additionally charged with numerous counts of money laundering for engaging in financial transactions with funds earned from City of Atlanta work he obtained while he was paying bribes to Adam Smith and Jo Ann Macrina.
On February 26, 2019, a grand jury returned an indictment against Jafari, 69, of Alpharetta, Georgia, on 51 federal charges, including conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring. On June 16, 2020, a grand jury again indicted him on these 51 charges in addition to two new charges relating to payments to Macrina. On June 16, 2020, the grand jury also returned an indictment against Macrina, 63, of Daytona Beach, Florida, on one count each of conspiratorial bribery, bribery, and tax evasion.
Members of the public are reminded that the indictments only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation are investigating these cases.
Assistant U.S. Attorneys Jill E. Steinberg, Deputy Chief of the Criminal Division, Jeffrey W. Davis, Chief of the Public Integrity Section, and Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property 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.
Murray County man pleads guilty to producing child pornographyRead the Press Release
ROME, Ga. - Daniel Strickland has pleaded guilty to producing child pornography of two minors in his care. A federal grand jury had indicted Strickland in November 2019.
“Strickland produced child pornography of children under his supervision,” said U.S. Attorney Byung J. “BJay” Pak. “By bringing this perpetrator to justice, we hope this will be at least a small step toward the victims living a normal life.”
“Much of our success in bringing defendants like this to justice is because of our partnerships with local and state law enforcement agencies like the Murray County Sheriff Office,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. ‘We will never relax our combined resources when it comes to protecting a vulnerable and defenseless child.”
“It is of the utmost importance of the Murray County Sheriff’s Office to provide safety and security to each and every one of our citizens, especially our children,” said Murray County Sheriff Gary Langford.
According to U.S. Attorney Pak, the charges, and other information presented in court: The Murray County, Georgia, Sheriff's Office and the FBI learned in February 2019, that Strickland had allegedly abused a minor girl who was under his care. A subsequent investigation revealed that Strickland took sexually explicit photos of this minor girl, and another minor girl, that he previously babysat. In July 2019, Strickland pleaded guilty to two counts of child molestation arising from these incidents in Murray County Superior Court.
Daniel Strickland, 46, of Chatsworth, Georgia, pleaded guilty to two counts of producing child pornography before U.S. District Court Judge Steven D. Grimberg. Under the terms of Strickland’s plea agreement, the government and Strickland are recommending that the Court impose a sentence of between 20 and 25 years in prison. Sentencing is scheduled for September 16, 2020, at 10:00 a.m.
Anyone with information, or who may have been a victim in this case, please contact the Murray County Sheriff’s Office 706-695-4592 or the Federal Bureau of Investigation at 770-216-3000.
The Federal Bureau of Investigation and the Murray County Sheriff’s Office are investigating this case.
Assistant U.S. Attorneys Alex R. Sistla and Nicholas Hartigan are prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
21-year sentence imposed for multiple armed robberies of businesses in the Gainesville and metro-Atlanta areasRead the Press Release
NEWNAN, Ga. – Ricky Eugene Reid has been sentenced to 21 years in federal prison for the armed robbery of five businesses and the attempted armed robbery of a sixth business.
“Reid’s ten month crime spree terrorized the employees of the businesses he robbed,” said U.S. Attorney Byung J. “BJay” Pak. “The collective efforts of our federal and local law enforcement partners secured his apprehension, culminating in his convictions and this lengthy prison sentence.”
“Mr. Reid’s sentence is appropriate but it will never erase the fear and anguish felt by his victims,” said Arthur Peralta, Special Agent in Charge of ATF in Atlanta. “Mr. Reid had no compassion for the people he terrorized and threatened to shoot, as is the case in many robbery cases. We must come together as a community to promote the idea that crime is not the answer.”
“This is a prime example of how fluid communication and teamwork can result in success. Our community, our officers, and our investigators displayed outstanding courage and perseverance during critical times of the investigation. The formation of professional relationships between all agencies played a vital role in Reid’s arrest. I am proud of all the collaborative efforts and teamwork involved to make our community a safer place,” said Jay Parrish, Chief of Police, Gainesville Police Department.
“The Gwinnett County Police Department is committed to ensure violent crimes are fully investigated to ensure a successful prosecution. Gwinnett Police detectives worked tirelessly alongside several other jurisdictions to help bring this violent offender to justice. The collaborative efforts in working with the United States Attorney’s Office, the ATF and other jurisdictions, ensures these violent offenders are taken off the streets so our neighborhoods and communities are safe,” said Maj. Chris Smith, Commander of the Criminal Investigations Section, Gwinnett County Police Department.
“Ricky Reid terrorized numerous victims in multiple jurisdictions across Northeast Georgia. His arrest and criminal convictions are the direct result of the strong relationships we strive to maintain with our community members and law enforcement partners, both locally and federally. This lengthy prison sentence sends a clear message that our community will not tolerate these types of heinous criminal acts,” said Lt. Todd Templeton, Criminal Investigation Division, Oakwood Police Department.
“The arrest, prosecution, and conviction of Reid is an excellent example of leveraging the resources of local and federal law enforcement to remove a truly dangerous individual from society for many years,” said Billy J. Grogan, Chief of Police, Dunwoody Police Department.
According to U.S. Attorney Pak, the charges, and other information presented in court: Between August 26, 2018, and June 7, 2019, Ricky Reid engaged in a crime spree during which he robbed four department stores, a pizza store, and attempted to rob a fifth department store. While robbing the four department stores, Reid fired a gun multiple times through the front door window, shattering the glass (store employees were in the immediate direction and area of where Reid fired). Reid pointed a gun at employees during each of the robberies and forced them to empty their cash registers. During one robbery, he pursued a store manager at gunpoint who was running away with bank bags from the register and told her “stop” or “I’ll shoot.”
Reid was eventually captured on June 7, 2019, as he was preparing to rob a sixth department store in Buford, Georgia. When law enforcement searched Reid’s vehicle, agents located a firearm inside the vehicle as well as ammunition and black clothing consistent with what Reid wore during his prior armed robberies. Agents eventually learned that Reid was previously employed at one of the department stores.
Ricky Eugene Reid, 34, of Oakwood, Georgia, was sentenced on June 11, 2020, by U.S. District Judge Richard W. Story to 21 years in prison, to be followed by three years of supervised release, and ordered him to pay restitution in the amount of $16,342.42. Reid was convicted of these charges on December 4, 2019, after he pled guilty to multiple counts of Hobbs Act robbery and brandishing a firearm during a crime of violence.Former Assistant U.S. Attorney William McKinnon and Assistant U.S. Attorney Laurel R. Boatright prosecuted this case.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Gainesville Police Department, the Gwinnett County Police Department, the Oakwood Police Department, the Dunwoody Police Department and the Johns Creek Police Department investigated this case.
This case was brought as a part of the Project Safe Neighborhoods (PSN). In keeping with the Attorney Generals 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.
Gainesville men indicted on federal arson charges for setting fire to police car parked at officer’s residenceRead the Press Release
GAINESVILLE, Ga. – Jesse James Smallwood, Delveccho Waller, Jr., Bruce Thompson, Judah Coleman Bailey, and Dashun Martin have been indicted by a federal grand jury for the offenses of conspiring to commit, and commission and attempted commission of, arson of a police car following a protest stemming from the death of George Floyd.
“While using the cover of peaceful protests in Gainesville, the defendants allegedly sought out and intentionally burned a police vehicle,” said U.S. Attorney Byung J. “BJay” Pak. “Those seeking to perpetrate criminal acts of violence toward our law enforcement officers should expect to be prosecuted to the full extent of the law.”
“The FBI Atlanta Field Office is committed to supporting our local and state law enforcement partners in an effort to maintain public safety in the communities we serve,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are not focused on peaceful protests, but instead concentrating on identifying, investigating and disrupting those individuals who are taking advantage of the protests to incite violence and engage in criminal activity.”
“We want our community to know we stand with them during their rights to peacefully protest. Sadly, agitators that do not necessarily share the same goals as our community took this opportunity to target one of our officers at his residence. We will not stand for this type of destruction and violence in our community,” said Jay Parrish, Chief of Police, Gainesville Police Department.
According to U.S. Attorney Pak, the federal charges, and other information: Early on the morning of June 2, 2020, a Gainesville Police Department patrol vehicle was set on fire in the parking lot of a local apartment complex. Officers responded immediately and extinguished a fire in the rear of the patrol vehicle. A witness reported seeing an older model vehicle with no lights parked near the entrance of the apartment building. The witness saw two subjects exit the vehicle and approach the patrol car, after which the witness heard a loud bang followed by a bright light. The witness then saw smoke emanating from the rear of the patrol car.
Based on the information from the witness, investigators issued a radio lookout for the suspects’ vehicle. Shortly thereafter, police officers saw a vehicle matching the witness’s description parked at a nearby gas station and convenience store. The driver, Jesse James Smallwood, agreed to speak to one of the officers and gave permission for his car to be searched. During the search, officers recovered three spent explosives and a flare gun. Smallwood and his passengers, Waller Jr., Thompson, Bailey, and Martin, were all arrested for the arson.
Jesse James Smallwood, 21, Delveccho Waller, Jr., 21, Dashun Martin, 23, Judah Coleman Bailey, 20, all of Gainesville, Georgia, and Bruce Anthony Thompson, 22, of Oakwood, Georgia, were indicted June 16, 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.
The FBI-Gainesville, the Gainesville Police Department, and the Gainesville Fire Department are investigating this case.
Assistant U.S. Attorney Greg Radics is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former hospital director of security pleads guilty to buying firearms with hospital funds and selling the guns for profitRead the Press Release
ATLANTA - Russell Richardson, former DeKalb Medical Center, Inc. (DeKalb Medical) Director of Security, has pleaded guilty to fraudulently using hospital funds to acquire multiple handguns that he then sold for his personal benefit and financial gain.
“Richardson abused his position at the hospital, and manipulated the system for personal profit,” said U.S. Attorney Byung J. “BJay” Pak. “His actions diverted hospital funds that could have been used to purchase critical medical supplies.”
"Richardson violated the trust placed in him as the Director of Security at DeKalb Medical Center,” said Arthur Peralta, Special Agent in Charge of ATF in Atlanta. “Even worse, Mr. Richardson fraudulently obtained and sold guns without any concern as to who they were being sold to or where they would ultimately end up.”
According to U.S. Attorney Pak, the charges and other information presented in court: Richardson, who was then the Director of Security at DeKalb Medical Center, was authorized to submit purchase requests and to approve purchases made on behalf of the Security Department. Richardson abused his position when, beginning in March 2016, he submitted purchasing requests to the hospital for firearms he intended to sell for his personal benefit. Since Richardson also approved the requests, the hospital paid for the firearms that Richardson subsequently took and sold for profit.
Then, starting in July 2017, Richardson used hospital letterhead to place orders directly with the firearms’ vendor. He concealed his gun purchases from the hospital by causing the vendor to send the invoices directly to him. Richardson then submitted false invoices to the hospital that listed the vendor’s name but falsely listed the items purchased. The hospital paid the invoices without knowing the funds were actually for the purchase of numerous firearms.
After acquiring firearms purchased with hospital money, Richardson advertised that he had guns for sale at gun courses he taught in South Carolina and on his social media sites. He eventually sold many of them for 100% profit.
According to ATF records, and Richardson’s own admission, he acquired approximately 100 firearms since the inception of his fraud scheme.
Russell Richardson, 44, of Columbia, South Carolina, was indicted by a grand jury on August 13, 2019, for mail fraud, dealing firearms without a license, and selling firearms to non-state residents. Richardson pleaded guilty one count each of mail fraud and unlawfully transferring firearms to non-state residents. His sentencing has not yet been scheduled.
The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating this case.
Assistant U.S. Attorney Tracia M. King 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.
Department of Justice observes the 15th annual World Elder Abuse Awareness DayRead the Press Release
ATLANTA - U.S. Attorney Byung J. “BJay” Pak joined Attorney General William P. Barr and the entire Department of Justice to observe the 15th Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.
“The investigation and prosecution of criminals who prey upon the elderly is a top priority of my office,” said U.S. Attorney Byung J. “BJay” Pak. “This year, we have brought charges against numerous defendants who attempted to victimize seniors and we will continue to do so in the future. Those individuals who prey on the elderly should know that it will be only a matter of time before we find and prosecute you.”
The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. During this time when seniors are most vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scam and fraud schemes. As the world takes this day to remember the elderly during these uncertain times, the Department of Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to prevent and prosecute fraud on America’s seniors.
The Department will aggressively prosecute fraudsters exploiting the Covid-19 pandemic and targeting seniors offering them fake testing kits and fake help obtaining stimulus and Paycheck Protection Program Funds. On this day dedicated to recognizing our seniors, the Department of Justice sends a strong message that we continue the fight to keep seniors safe a top priority.
Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities. The Northern District of Georgia has brought federal charges in numerous cases of elder fraud.
Major strides have already been made to that end:
- National Elder Fraud Hotline: 833-FRAUD-11
Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices, including the Northern District of Georgia, along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants. - Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors.
- Holding foreign-based perpetrators accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.
- Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019 actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.
Northern District of Georgia Elder Fraud Cases in 2020
In 2020, the U.S. Attorney’s Office for the Northern District of Georgia has prosecuted many defendants who have perpetrated elder fraud, including cases involving romance scams, retirement fraud, impersonation of government officials, identity theft, and timeshare fraud.
Romance scams are a type of online fraud in which victims are targeted by individuals posing as potential paramours. The fraudsters create fake online dating profiles (often with photographs of attractive men or women) and use these fake personas to express a romantic interest in the victims in order to trick them into sending money to them or their co-conspirators under false pretenses. Romance scams frequently target vulnerable individuals who possess significant financial assets, such as retired widows or widowers.
- In United States v. Okang, et al., twenty-four defendants were charged for their involvement in a large-scale fraud and money laundering operation that targeted citizens, corporations, and financial institutions throughout the United States. Business email compromise schemes, romance fraud scams, and retirement account scams, among other frauds, duped numerous victims, including many elderly individuals, into losing more than $30 million.
- In United States v. Alonge, et al., two defendants pleaded guilty based upon their involvement in a Nigeria-based romance scam that tricked victims into sending over $1.8 million. Both defendants were sentenced to ten years in prison and ordered to pay restitution in the amount of $1,835,279.00. The second sentencing occurred in January 2020.
- In United States v. Adara, et al., two defendants pleaded guilty based upon their involvement in a Nigeria-based romance scam. Their sentencings are scheduled for later in 2020.
We also prosecute cases involving India-based centers that scammed U.S. residents, including the elderly. Criminal India-based call centers seek to profit by exploiting U.S. residents through various phone scams, including the impersonation of government officials. The call center operators trick the victims and at times threaten consequences if they do not send money. If the victims agree to pay, the call centers then turn to a network of U.S.-based co-conspirators to liquidate and launder the extorted funds.
- In June 2020 in United States v. Patel, et al., two defendants were indicted for allegedly laundering over $400,000 in funds derived from an India-based tech support and Social Security scams that victimized numerous elderly individuals.
- In United States v. Patel, the defendant pleaded guilty to wire fraud for using fake identifications to retrieve over $150,000 from over 160 victims of India-based tele-fraud. His sentencing is scheduled for July 2020.
- In United States v. Excellent Solutions BPO, et al., eight defendants pleaded guilty and were subsequently sentenced in January 2020 to up to four years and nine months for their involvement in an India-based IRS impersonation scam that victimized thousands of United States residents and resulted in over $3.7 million in losses.
In June 2020, in United States v. Durrell Tyler, the defendant was charged with access device fraud and aggravated identity theft where he possessed and used personal identifying information, including social security numbers, of elderly victims.
In January 2020, Katherine Craig was charged with mail fraud. Craig allegedly embezzled over $1.7 million dollars from a company she was managing and defrauded over 1000 timeshare owners, most of whom were elderly retirees. Craig operated the timeshare resort where she worked without casualty insurance, even though the Lease Agreements required the resort to maintain casualty insurance. Over the years, the buildings at the resort deteriorated through storm damage and neglect and by early 2016, the resort was in such bad shape that Craig was not allowing any timeshare owners to vacation there anymore.
The charges are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
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.
- National Elder Fraud Hotline: 833-FRAUD-11
Georgia resident arrested for scheme to sell illegal products claiming to protect against COVID-19Read the Press Release
ATLANTA - Stephen Matthew Shumaker has been charged with mail fraud and knowingly distributing and selling a misbranded pesticidal device.
“Shumaker allegedly used the COVID-19 pandemic to sell a product that does not provide the benefits he advertised,” said U.S. Attorney Byung J. “BJay” Pak. “We are proud to be part of the Georgia COVID-19 Task Force, which continues to identify and prosecute those who attempt to perpetrate Coronavirus-related fraud schemes.”
“The U.S. Postal Inspection Service will remain vigilant in bringing to justice anyone that seeks to defraud individuals during this pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “This scheme highlights the importance of collaborating with our law enforcement partners to investigate and stop those seeking to take advantage of innocent victims.”
“The defendant is charged with knowingly selling a fraudulent product during the COVID-19 public health emergency in order to make a profit,” said Environmental Protection Agency Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and our partners in law enforcement remain vigilant to protect consumers from this kind of outrageous behavior. To find out how to protect yourself from fraudulent products please see EPA’s compliance advisory, available at https://www.epa.gov/sites/production/files/2020-05/documents/cornavirus-compliance-advisory.pdf.”
“Selling a misbranded pesticidal device as a protection for COVID-19 gives unsuspecting buyers a false sense of hope and places them in danger,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI is proud to support the Georgia COVID-19 task force in protecting our citizens from these fraudsters.”
“The Federal Trade Commission appreciates the opportunity to work with the U.S. Attorney’s Office and the COVID-19 Task Force on such an important case,” said Anna Burns, the Commission’s Southeast Regional Director. “Interagency cooperation is essential to ensuring U.S. consumers are protected from fraud associated with the coronavirus pandemic.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Shumaker allegedly engaged in a scheme to defraud by soliciting thousands of Georgia residents with false claims that the Beyond Guardian Air™ air purifier kills every major viral and bacterial infection, including the COVID-19 coronavirus disease, in the home. According to the EPA, the device for sale is also a misbranded pesticidal device, another violation of federal law.
Stephen Matthew Shumaker, 43, of Marietta, Georgia, appeared before U.S. Magistrate Judge Christopher C. Bly. Members of the public are reminded that a complaint only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Department of Justice recommends that Americans take the following precautionary measures to protect themselves from known and emerging scams related to COVID-19:
• Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
• Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
• Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
• Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
• Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
• Ignore offers from suspicious sources for a COVID-19 vaccine, cure, or treatment. Remember, if a vaccine becomes available, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
• Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
• Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving any donation. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission’s website at www.ftc.gov.
• Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
• Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.
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 U.S. Postal Inspection Service, the Environmental Protection Agency and the U.S. Immigration and Customs Enforcement, Homeland Security Investigations are investigating this case, with valuable assistance from the Federal Trade Commission.
Special Assistant United States Attorney Valerie M. Verduce 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.