Northern District of Georgia
Press releases recorded for this federal judicial district.
California man who falsely claimed ties to Moroccan royal family in $10 million dollar advance fee fraud scheme is sentencedRead the Press Release
ATLANTA - Hassan Ra El, a/k/a Rasheem Harrson Crockett has been sentenced to federal prison for defrauding business owners around the country to pay over $10 million dollars in advance fees for business loans, a scheme in which he falsely claimed to be a member of the Moroccan Royal Family.
“The defendant has been held responsible for his elaborate advance fee loan scheme that took advantage of individuals and businesses that hoped to raise needed capital,” said U.S. Attorney Byung J. “BJay” Pak. “We encourage consumers and business owners to be careful about whom they enter business relationships with, and to scrutinize websites and marketing materials carefully for any indication of fraud.”
“Postal Inspectors unraveled a sophisticated advanced fee scheme by following the financial tracks of this defendant,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “The sentencing handed down in this case should serve as a warning to individuals who intend to misuse the U.S. Mails through deceptive practices.”
According to U.S. Attorney Pak, the charges and other information presented in court: Hassan Ra El operated a scheme to defraud business owners across the country who were seeking loans. El claimed that he was a wealthy investor and a member of the Moroccan Royal Family. El fraudulently claimed that he had access to Moroccan Royal Family funds that would be used to fund business loans. El created fraudulent documentation showing that insurance companies were offering default insurance policies on the loans. El convinced prospective loan applicants that they had to pay default insurance fees, typically 10% of the loan amount, before the loans would fund. When the loans failed to fund, El used fees from later loan applicants to partially refund fees from previous loan applicants.
In furtherance of the scheme, El created fraudulent bank statements purportedly showing that he or companies that he controlled had millions in bank accounts. El also created fraudulent email accounts and correspondence purportedly from insurance executives stating that loans had been approved. El used fees from loan applicants to fund his lifestyle, pay his living expenses, and to rent high-end automobiles, including a Ferrari, Range Rover and Lamborghini. El fraudulently induced victims to pay over $10 million dollars in advance fees. Neither El nor his companies funded any of the promised loans and loan applicants lost over $5 million dollars in the fraud scheme.
Hassan Ra El, a/k/a Rasheem Harrson Crockett, 45, of Chino Hills, California, was sentenced by U.S. District Judge William M. Ray II to 13 years and 11 months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,510,001. El was convicted of mail fraud on January 15, 2020, after he pleaded guilty. He was previously convicted of two counts of felony theft by deception in Douglas County, Georgia, for defrauding loan clients in 2006. After his convictions in Douglas County, El formerly changed his name from Rasheem Harrson Crockett to Hassan Ra El and continued to defraud prospective business owners seeking capital.
This case is being investigated by the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Jeffrey Brown and Erin Sanders are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia U.S. Attorneys and FBI warn that criminal instigators could face federal prosecutionRead the Press Release
ATLANTA – Attorney General William P. Barr has directed federal law enforcement actions aimed at apprehending and charging the violent criminal agitators who have taken over peaceful protests and are engaging in violations of federal law. The U.S. Attorneys from the Northern, Middle, and Southern Districts of Georgia, along with the Federal Bureau of Investigation (FBI) are employing the FBI Joint Terrorism Task Force (JTTF) to identify criminal organizers and instigators, coordinating federal resources with state and local partners, and seeking federal prosecutions where applicable.
“The Attorney General has made it clear that those who instigate or carryout violence will be arrested and prosecuted,” said U.S. Attorney Byung J. “BJay” Pak. “Americans enjoy the right to peacefully assemble and protest. However, when it turns violent and destructive, a line has been crossed. We are employing every federal asset our districts have to assist our state and local partners as they work to maintain order and public safety.”
“The right to peaceful protest is protected by the First Amendment, but there is no cover for the violent, needless destruction of personal property, and the chaos we have witnessed across the country over the past several days. Let me be clear: anyone who chooses that criminal path will be aggressively prosecuted by our office,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “I want to thank our federal, state, and local law enforcement officers, and Georgia’s National Guard, who are on the ground protecting our lawful right of expression, as well as our property and safety.”
“Peaceful demonstrations throughout the Southern District in recent weeks have been a model for appropriate exercises of citizens’ constitutional right to express their grief and concerns,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “If anyone, whether locals or outside individuals, escalates to unlawful behavior and disrupts our communities, we stand ready to assist local law enforcement with federal resources to safeguard the lives and property of our citizens.”
“The FBI is dedicated to protecting our citizens and upholding the Constitution,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The Constitution gives every citizen the right to protest peacefully, but when a few people abuse the rights of the many peaceful protesters by stoking violence and destroying property, we must enforce the law. Federal prosecutions are a tool we will use to assist our state and local law enforcement partners who are on the front lines trying to maintain order.”
Attorney General Barr’s statement is available here: https://www.justice.gov/opa/pr/attorney-general-william-p-barrs-statement-riots-and-domestic-terrorism
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Woman Pleads Guilty to COVID-19 Related Federal Offense for Selling Unregistered Pesticides on eBayRead the Press Release
A Georgia woman who sold an unregistered pesticide, which she claimed protected against viruses such as COVID-19, has pleaded guilty to violating the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).
Rong Sun, aka Vicky Sun, 34, of Fayetteville, Georgia, pleaded guilty today before U.S. Magistrate Judge John K. Larkins III. Sentencing has been scheduled for June 29 before Judge Larkins III.
“Registration under FIFRA helps ensure that pesticides sold in the U.S. work and are safe for humans. The trafficking in snake-oil remedies outside of FIFRA is a criminal act and anyone who does so, especially during this pandemic, will find federal law enforcement ready to stop them,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “The U.S. Department of Justice will not stand by while criminal conduct risks people’s health and safety.”
“We will act quickly and decisively to protect the health of our community,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia. “As Georgia and the country battle a global pandemic, we need safe and effective treatments, not ones that threaten the health of our citizens.”
“This case shows that consumers need to be cautious of products that make unsubstantiated claims of controlling viruses,” said U.S. Environmental Protection Agency (EPA) Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and our law enforcement partners continue to work to stop the sale of these illegal products. Consumers can help protect themselves by visiting epa.gov/coronavirus for a list of approved products.”
“Playing on people’s fears during this pandemic by offering false hope and the empty promise of protection is not only dangerous, it’s also reprehensible and illegal,” 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 are trying to take advantage of Americans during this pandemic.”
“A large part of the U.S. Postal Inspection Service mission is to ensure public trust in the mail,” said Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service (USPIS) Atlanta Division. “When individuals challenge that mission, Postal Inspectors will aggressively investigate those seeking to deceive during this crisis for their own financial gain.”
According to the charges and other information presented in court, the defendant sold an unregistered pesticide, “Toamit Virus Shut Out,” through eBay, claiming that it would help protect individuals from viruses. Marketed as “Virus Shut Out” and “Stop The Virus,” the pesticide took the form of a card-shaped device to be worn around the user’s neck. The eBay listing depicted the removal of viruses by wearing the “Virus Shut Out” and “Stop The Virus” product. Additionally, the listing stated that “its main ingredient is ClO2, which is a new generation of widely effective and powerful fungicide recognized internationally at present. Bacteria and viruses can be lifted up within 1 meter of the wearer’s body, just like a portable air cleaner with its own protective cover.” It also stated that “[i]n extraordinary times, access to public places and confined spaces will be protected by one more layer and have one more layer of safety protection effect, thus reducing the risks and probability of infection and transmission.”
Under FIFRA, the EPA regulates the production, sale, distribution and use of pesticides in the United States. A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest, which includes viruses. Pesticides must be registered with the EPA. Toamit Virus Shut Out was not registered, and it is illegal to distribute or sell unregistered pesticides. Sun imported the pesticide from Japan and later sold it to individuals around the United States.
The EPA has taken steps to block the importation and sale of Toamit Virus Shut Out in the United States: https://www.epa.gov/newsreleases/epa-administrator-wheeler-talks-retailers-and-third-party-marketplace-platforms-discuss and https://www.epa.gov/newsreleases/us-epa-acts-protect-public-unregistered-virus-shut-out-product-imported-honolulu-and.
This case is being investigated by the EPA-Criminal Investigation Division, HSI, and USPIS.
Senior Counsel Krishna Dighe of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of Complex Frauds, are prosecuting the case.
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 year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fayetteville woman pleads guilty to COVID-19 related federal offense for selling unregistered pesticides on eBayRead the Press Release
NEWNAN, Ga. - Rong Sun, who sold an unregistered pesticide as protection against viruses such as COVID-19, has pleaded guilty to violating the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).
“We will act quickly and decisively to protect the health of our community,” said U.S. Attorney Byung J. “BJay” Pak. “As Georgia and the country battle a global pandemic, we need safe and effective treatments, not ones that threaten the health of our citizens.”
“Registration under FIFRA helps ensure that pesticides sold in the U.S. work and are safe for humans. The trafficking in snake-oil remedies outside of FIFRA is a criminal act and anyone who does so, especially during this pandemic, will find federal law enforcement ready to stop them,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “The U.S. Department of Justice will not stand by while criminal conduct risks people’s health and safety.”
“This case shows that consumers need to be cautious of products that make unsubstantiated claims of controlling viruses,” said Environmental Protection Agency (EPA) Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and our law enforcement partners continue to work to stop the sale of these illegal products. Consumers can help protect themselves by visiting epa.gov/coronavirus for a list of approved products.”
“Playing on people’s fears during this pandemic by offering false hope and the empty promise of protection is not only dangerous, it’s also reprehensible and illegal,” 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 are trying to take advantage of Americans during this pandemic.”“A large part of the U.S. Postal Inspection Service mission is to ensure public trust in the mail,” said Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service Atlanta Division. “When individuals challenge that mission, Postal Inspectors will aggressively investigate those seeking to deceive during this crisis for their own financial gain.”
According to U.S. Attorney Pak, the charges and other information presented in court: The defendant sold an unregistered pesticide, Toamit Virus Shut Out, through eBay, claiming that it would help protect individuals from viruses. The pesticide was marketed as “Virus Shut Out” and “Stop The Virus.” The eBay listing depicted the removal of viruses by wearing the “Virus Shut Out” and “Stop The Virus” product. Additionally, the listing stated that “its main ingredient is ClO2, which is a new generation of widely effective and powerful fungicide recognized internationally at present. Bacteria and viruses can be lifted up within 1 meter of the wearer’s body, just like a portable air cleaner with its own protective cover.” It also stated that “In extraordinary times, access to public places and confined spaces will be protected by one more layer and have one more layer of safety protection effect, thus reducing the risks and probability of infection and transmission.”
The listing further claimed that Toamit is “Office and home essentials during viral infections reduce transmission risk by 90%.”Under FIFRA, the EPA regulates the production, sale, distribution and use of pesticides in the United States. A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest. The term “pest” includes viruses. Pesticides are required to be registered with the EPA. Toamit Virus Shut Out was not registered and it is illegal to distribute or sell unregistered pesticides. Sun imported the pesticide from Japan and later sold it to individuals around the United States.
The EPA has taken steps to block the importation and sale of Toamit Virus Shut Out in the United States: https://www.epa.gov/newsreleases/epa-administrator-wheeler-talks-retailers-and-third-party-marketplace-platforms-discuss and https://www.epa.gov/newsreleases/us-epa-acts-protect-public-unregistered-virus-shut-out-product-imported-honolulu-and.The charges carry penalties of up to one year in prison and a $100,000 fine. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing for Rong Sun, a/k/a Vicky Sun, 34, of Fayetteville, Georgia, is set for June 29, 2020 at 10:00 a.m., before U.S. Magistrate Judge John K. Larkins III.
This case is being investigated by the Environmental Protection Agency-Criminal Investigation Division, Homeland Security Investigations, and U.S. Postal Inspection Service.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds, and Senior Counsel Krishna Dighe of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division 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.
IT manager sentenced for hacking into and sabotaging his former employer’s computer networkRead the Press Release
ATLANTA – Charles E. Taylor has been sentenced to federal prison for hacking his former Atlanta-based employer and sabotaging their internal communications network, causing more than $800,000 in damage.
“Taylor deliberately sabotaged the computer network he had been entrusted to protect because he was upset with his former employer,” said U.S. Attorney Byung J. “BJay” Pak. “Corporate insiders like Taylor cause significant losses through hacking activity each year, and companies must remain vigilant against insider threats to their network security.”
“Taylor used sabotage to betray the trust placed in him by his employer, causing extreme hardship for the company and his fellow employees,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “No amount of subterfuge will protect cyber criminals from being unmasked, arrested and prosecuted by FBI investigators and federal prosecutors.”
According to U.S. Attorney Pak, the charges and other information presented in court: In 2013, Taylor, a resident of Jacksonville, Arkansas, was hired as a systems administrator for a lumber and building materials wholesaler. In early 2018, a large Atlanta-based building products distributor acquired the company. Taylor kept his job as a senior systems engineer after the merger, but he was unhappy with the newly combined company and resigned in July 2018.
A month after his departure, Taylor conducted a multi-stage sabotage campaign targeting the company’s network. Using information he gained in his employment, Taylor logged into the network remotely without authorization and used encryption methods to hide his network connections. In mid-August 2018, Taylor changed passwords for network routers located at dozens of company warehouses. Company employees were unable to access the routers, and the company replaced them shortly thereafter at a cost of roughly $100,000.
Days later, Taylor issued a shutdown command for a central command server on the company’s network, crippling internal communications at the company. As the company worked to restore its network over a two-day period, employees at several of its branches were forced to take customer orders by hand and field incoming orders using their personal cell phones. In total, the server sabotage cost the company over $700,000 dollars in lost profits and remediation costs.
Charles E. Taylor, 60, of Jacksonville, Arkansas, was sentenced by U.S. District Judge J.P. Boulee to one year and six months in prison, to be followed by three years of supervised release - one year of which will be served on home detention - and ordered to pay restitution in the amount of $834,510. Taylor was convicted of computer fraud on February 19, 2020, after he pleaded guilty.
The Federal Bureau of Investigation investigated this case.
Assistant U.S. Attorney Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crimes 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 charged for misrepresenting to his employer that he had tested positive for COVID-19Read the Press Release
ATLANTA – Santwon Antonio Davis has been charged with defrauding his employer by allegedly faking a positive COVID-19 medical excuse letter, causing the employer to stop business and sanitize the workplace. Davis has since admitted that he did not have COVID-19.
“The defendant caused unnecessary economic loss to his employer and distress to his coworkers and their families,” said U.S. Attorney Byung J. “BJay” Pak. “We will take quick action through the Georgia COVID-19 Task Force to put a stop to criminals preying on Georgia companies and the public with Coronavirus-related fraud schemes.”
“Scammers continue to take advantage of the COVID-19 pandemic through a variety of means,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We receive numerous complaints every day and this case is a reminder that we remain vigilant in detecting, investigating and prosecuting any wrongdoing related to the crisis.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The defendant, who was employed by a Fortune 500 company with a facility located in the Atlanta, Georgia area, falsely claimed to have contracted COVID-19 and submitted a falsified medical record to his employer. In concern for its employees and customers, the corporation closed its facility for cleaning and paid its employees during the shutdown. This caused a loss in excess of $100,000 to the corporation and the unnecessary quarantine of several of the defendant’s coworkers.
Santwon Antonio Davis, 34, of Morrow, Georgia, made his initial appearance before U.S. Magistrate Judge Justin S. Anand. Members of the public are reminded that the 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 Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorneys Russell Phillips and Sarah Klapman 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.
U.S. Attorney Pak and the Department of Justice salute law enforcement officers during Police WeekRead the Press Release
ATLANTA – In honor of National Police Week, U.S. Attorney Byung J. “BJay” Pak salutes the service and sacrifice of federal, state, local, and tribal law enforcement. The week will be observed through Saturday, May 16, 2020.
“There is no more noble profession than serving as a police officer,” said Attorney General Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”
“In 2019, the State of Georgia lost seven peace officers, four of whom were from the Northern District of Georgia,” said U.S. Attorney Byung J. “BJay” Pak. “These officers died while serving and protecting their communities. Along with 744 officers who lost their lives in the line of duty before them, we honor these officers for their service and their sacrifice. We also thank the families of these officers, and express our deepest sympathies for their loss.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.
Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019, including four officers here in the Northern District of Georgia].
- Deputy Nicholas Blane Dixon
Hall County Sheriff’s Office, End of Watch July 8, 2019 - Deputy Michaela Elizabeth Smith
Murray County Sheriff’s Office, End of Watch July 3, 2019 - Deputy Spencer Allen Englett
Forsyth County Sheriff’s Office, End of Watch April 4, 2019 - Officer James Joseph “JJ” Biello
Atlanta Police Department, End of Watch April 28, 2019
Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.
The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial were read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil was livestreamed for the public. To view the online event, please visit www.LawMemorial.org.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
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.
- Deputy Nicholas Blane Dixon
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office sue Atlanta-based property owners and management company for housing discrimination against African-AmericansRead the Press Release
ATLANTA - The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Georgia have filed a lawsuit against Crimson Management LLC, Benefield Housing Partnership d/b/a Cedartown Commons, and Cedartown Housing Associates, d/b/a Cedarwood Village, alleging housing discrimination against African-American applicants who are elderly or have a disability, in violation of the Fair Housing Act.
“More than 50 years after the passage of the Fair Housing Act, cases like this demonstrate that there is still work to be done to ensure that all people, regardless of race and color, have equal access to housing,” said U.S. Attorney Byung J. “BJay” Pak. “My office will continue to devote resources to investigate and eradicate housing discrimination.”“Congress enacted the Fair Housing Act in 1968 to protect Americans from the racially motivated violence and discrimination that has stained our nation’s history. More than five decades later, our nation regrettably continues to suffer the scourge of racial bias,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to fight to protect the rights of all Americans to rent and own their homes without regard to their race.”
The lawsuit alleges that from at least 2012 to 2018, the defendants steered African-American housing applicants who are elderly or have a disability away from Cedarwood Village, a predominantly white housing complex, to Cedartown Commons, a predominantly African-American housing complex, which is inferior in appearance, location, and amenities to Cedarwood Village. Both complexes are located in Cedartown, Georgia. The complaint also alleges that the defendants subjected African-American residents who are elderly or have a disability to less favorable rental terms, conditions, and privileges as compared to similarly situated white tenants, and denied these African-American applicants more desirable units at the Village.
This lawsuit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct, which must be proven in federal court.
Fighting illegal housing discrimination is a priority for the U.S. Attorney’s Office for the Northern District of Georgia. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination at the defendants’ properties may contact the U.S. Attorney’s Office by calling (404) 581-4626 and email any questions to [email protected]. You can also report complaints to the by calling 1-800-896-7743, and select option number 1 to leave a message, or sending an e-mail to [email protected].
Assistant U.S. Attorney Aileen Bell Hughes, Civil Rights Enforcement Coordinator, is handling this matter for the Northern District of Georgia.
The year 2020 marks the 150th anniversary of the Justice Department. 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.
Reality TV personality charged with bank fraudRead the Press Release
ATLANTA – Maurice Fayne, who stars in Love & Hip Hop: Atlanta, has been arrested on federal bank fraud charges arising from a Paycheck Protection Program (“PPP”) loan that he obtained in the name of Flame Trucking.
“The defendant allegedly took advantage of the emergency lending provisions of the Paycheck Protection Program that were intended to assist employees and small businesses battered by the Coronavirus,” said U.S. Attorney Byung J. “BJay” Pak. “We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain.”
“The defendant allegedly stole money meant to assist hard-hit employees and businesses during these difficult times, and instead greedily used the money to bankroll his lavish purchases of jewelry and other personal items,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program.”
“At a time when small businesses are struggling for survival, we cannot tolerate anyone driven by personal greed, who misdirects federal emergency assistance earmarked for keeping businesses afloat,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal partners remain vigilant during this Coronavirus pandemic to make sure funds provided by programs like PPP are used as intended.”“The defendant allegedly egregiously sought personal gain from a program intended to assist hardworking Americans in this challenging time,” said Special Agent-in-Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General (SBA OIG) Eastern Region. “SBA OIG and its law enforcement partners will aggressively pursue allegations of wrongdoing to maintain the integrity of 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 charges, and other information presented in court: Maurice Fayne is the sole owner of a Georgia corporation called Flame Trucking. On April 15, 2020, Fayne signed and submitted to United Community Bank (“UCB”) a PPP loan application in the name of 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.”UCB ultimately funded the loan for $2,045,800. Within days, Fayne allegedly used more than $1.5 million of the PPP loan proceeds to purchase $85,000 in jewelry, including a Rolex Presidential watch, a diamond bracelet, and a 5.73 carat diamond ring for himself, to lease a 2019 Rolls Royce Wraith, to make loan payments, and to pay $40,000 for child support. Such payments are not an authorized use of PPP funds under the CARES Act.
On May 6, 2020, Fayne was interviewed by federal agents and admitted that he submitted a PPP loan application on behalf of Flame Trucking. Fayne claimed that he used all of the PPP loan proceeds to pay payroll and other business expenses incurred by Flame Trucking and denied using any of the PPP loan proceeds to pay his personal debts and expenses.
On May 11, 2020, agents executed a search at Fayne’s residence in Dacula and seized approximately $80,000 in cash, including $9,400 that Fayne had in his pockets, and the jewelry he purchased with the PPP funds. Agents also executed seizure warrants for three bank accounts that Fayne owned or controlled and seized approximately $503,000 in PPP funds.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
Maurice Fayne, a/k/a Arkansas Mo, 37, of Dacula, Georgia, was charged with bank fraud. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the 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 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.
Assistant U.S. Attorneys Russell Phillips, Bernita Malloy, and Michael J. Brown are prosecuting the case.
Georgia’s COVID-19 Task Force warns the public to be on the lookout for potential increased criminal activity related to federal stimulus checks, fake COVID-19 cures, personal protective equipment (PPE) price gouging and fair housing violations. The public can report potential scams to the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]. The public can also file complaints with the Attorney General’s Office by calling 800-869-1123 (toll-free) or at www.consumer.ga.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Reality TV Personality Charged with Bank FraudRead the Press Release
A reality TV personality who stars in Love & Hip Hop: Atlanta, has been arrested on federal bank fraud charges arising from a Paycheck Protection Program (PPP) loan that he obtained in the name of Flame Trucking.
Maurice Fayne, aka Arkansas Mo, 37, of Dacula, Georgia, was charged with bank fraud and made his initial appearance this afternoon before U.S. Magistrate Judge Justin S. Anand.
“The defendant allegedly stole money meant to assist hard-hit employees and businesses during these difficult times, and instead greedily used the money to bankroll his lavish purchases of jewelry and other personal items,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program.”
“The defendant allegedly took advantage of the emergency lending provisions of the Paycheck Protection Program that were intended to assist employees and small businesses battered by the Coronavirus,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia. “We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain.”
“At a time when small businesses are struggling for survival, we cannot tolerate anyone driven by personal greed, who misdirects federal emergency assistance earmarked for keeping businesses afloat,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “The FBI and our federal partners remain vigilant during this Coronavirus pandemic to make sure funds provided by programs like PPP are used as intended.”
“The defendant allegedly egregiously sought personal gain from a program intended to assist hardworking Americans in this challenging time,” said Special Agent in Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General (SBA OIG) Eastern Region. “SBA OIG and its law enforcement partners will aggressively pursue allegations of wrongdoing to maintain the integrity of 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 the charges and other information presented in court, Fayne is the sole owner of a Georgia corporation called Flame Trucking. On April 15, 2020, Fayne signed and submitted to United Community Bank (UCB) a PPP loan application in the name of 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.”
UCB ultimately funded the loan for $2,045,800. Within days, Fayne allegedly used more than $1.5 million of the PPP loan proceeds to purchase $85,000 in jewelry, including a Rolex Presidential watch, a diamond bracelet, a 5.73 carat diamond ring for himself, and to pay $40,000 for child support. Such payments are not an authorized use of PPP funds under the CARES Act.
On May 6, 2020, Fayne was interviewed by federal agents and admitted that he submitted a PPP loan application on behalf of Flame Trucking. Fayne claimed that he used all of the PPP loan proceeds to pay payroll and other business expenses incurred by Flame Trucking and denied using any of the PPP loan proceeds to pay his personal debts and expenses.
On May 11, 2020, agents executed a search at Fayne’s residence in Dacula and seized approximately $80,000 in cash, including $9,400 that Fayne had in his pockets, and the jewelry he purchased with the PPP funds, and further discovered a 2019 Rolls-Royce Wraith, which still had a temporary dealer tag on it. Agents also executed seizure warrants for three bank accounts that Fayne owned or controlled and seized approximately $503,000 in PPP funds.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
The charges are merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and SBA OIG are investigating the case.
Assistant Chief L. Rush Atkinson of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Russell Phillips, Bernita Malloy, and Michael J. Brown of the Northern District of Georgia are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Justice Department Sues Atlanta-Based Property Owners and Management Company for Housing Discrimination Against African AmericansRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Crimson Management LLC, Benefield Housing Partnership d/b/a Cedartown Commons, and Cedartown Housing Associates, d/b/a Cedarwood Village, alleging that they violated the Fair Housing Act by intentionally discriminating on the basis of race against African-American applicants for housing.
“Congress enacted the Fair Housing Act in 1968 to protect Americans from the racially motivated violence and discrimination that has stained our nation’s history. More than five decades later, our nation regrettably continues to suffer the scourge of racial bias,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to fight to protect the rights of all Americans to rent and own their homes without regard to their race.”
“More than 50 years after the passage of the Fair Housing Act, cases like this demonstrate that there is still work to be done to ensure that all people, regardless of race and color, have equal access to housing,” said U.S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia. “My office will continue to devote resources to investigate and eradicate housing discrimination.”
The lawsuit, filed in the U.S. District Court for the Northern District of Georgia, alleges that from at least 2012 to 2018, the defendants steered African-American housing applicants who are elderly or have a disability away from Cedarwood Village, a predominantly white housing complex, to Cedartown Commons, a predominantly African-American housing complex, which is inferior in appearance, location, and amenities to Cedarwood Village. Both complexes are located in Cedartown, Georgia. The complaint also alleges that the defendants subjected African-American residents who are elderly or have a disability to less favorable rental terms, conditions, and privileges as compared to similarly situated white tenants, and denied these African-American applicants more desirable units at the Village.
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct, which must be proven in federal court.
Fighting illegal housing discrimination is a top priority for the Justice Department. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination at the defendants’ properties may contact the Justice Department by calling 1-833-591-0294 to leave a message, or sending an e-mail to [email protected].
Sixty one year old Polk County man who met teenage girls online indicted on multiple counts of producing child pornographyRead the Press Release
ROME, Ga. - Virgil “Bud” Jesse Dupree, Jr., has been arraigned on multiple counts of producing and possessing child pornography.
“We have zero tolerance for those who target and victimize children,” said U.S. Attorney Byung J. “BJay” Pak. “This case is a reminder of the types of predators that lurk online, and that parents need to be vigilant in monitoring their children’s social media activity.”
“Our investigators are confronted every day with the reality that some people are intent on hurting and abusing our young children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “That is why we are committed to protecting them and to prosecuting anyone who tries to harm them.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Since at least May 2016, Dupree communicated with teenage girls he met on an online messenger service. While chatting with these girls, Dupree allegedly induced at least four minor girls to send him sexually explicit images and videos of themselves over the Internet. During the execution of a search warrant at his residence in May 2019, agents recovered multiple electronic devices containing thousands of images and videos of child pornography. These images included sexually explicit images and videos of the girls that he met online.
Virgil “Bud” Jesse Dupree, Jr., 61, of Rockmart, Georgia, was arraigned before U.S. Magistrate Judge Walter E. Johnson. Dupree was indicted by a federal grand jury on March 10, 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.
Anyone with information, or who may have been a victim in this case, please contact the FBI at 770-216-3000.
The Federal Bureau of Investigation is investigating this case, with cooperation from the Polk County Police Department.
Assistant U.S. Attorney Alex R. Sistla 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.
Aviation maintenance student pleads guilty to bribing examiner to pass FAA mechanic’s examinationRead the Press Release
ATLANTA - Aviation maintenance student Frank A. Jalion Amaro has pleaded guilty to bribing an FAA Designated Mechanic Examiner in exchange for receiving a passing score on the FAA’s Airframe and Powerplant examination.
“The public trusts that the men and women who perform maintenance on commercial aircraft have the proper credentials and qualifications,” said U.S. Attorney Byung J. “BJay” Pak. “By attempting to buy his certification, Amaro took the easy way out and could have put the safety of those citizens who fly in jeopardy.”
“This investigation demonstrates that ensuring the safety of the Nation’s air transportation system remains a high priority for both the Office of Inspector General (OIG) and the Department of Transportation (DOT),” said Todd A. Damiani, Regional Special Agent-in-Charge, DOT-OIG. “Thanks to the cooperation and dedicated efforts of the Federal Aviation Administration, its Designated Mechanic Examiner workforce, and our prosecutorial partners, we successfully prevented the aircraft maintenance certification of an unethical and ill-qualified individual.”
According to U.S. Attorney Pak, the charges, and other information presented in court: the Federal Aviation Administration (“FAA”) is an agency of the United States Department of Transportation that is responsible for the regulation and oversight of civil aviation in the United States, including the operation and development of the National Airspace System and the management of commercial space transportation. The FAA’s primary mission is to ensure the safety of civil aviation.
As part of its responsibility to protect the integrity and safety of the American civil aviation system, the FAA requires mechanics and repairmen to obtain an Airframe and Powerplant Certificate to perform maintenance on aircraft and approve equipment for returns to service. To receive an Airframe and Powerplant Certificate, the FAA requires mechanics to complete 1900 hours of classroom and practical training and to pass several tests covering 43 technical subjects.
Amaro was a student at an aviation maintenance school in Las Vegas, Nevada. In late 2019, Amaro was preparing to take the examination to obtain an FAA Airframe and Powerplant Certificate. On November 19, 2019, Amaro contacted an FAA Designated Mechanic Examiner (“FAA Examiner”) in the Atlanta-metropolitan area. As a Designated Mechanic Examiner, the FAA authorized the FAA Examiner to perform activities on its behalf, including administering the Airframe and Powerplant examination.
Beginning on November 19, 2019, Amaro (using an alias and fake phone number) contacted the FAA Examiner and offered to pay the FAA Examiner a bribe payment in exchange for receiving a passing score on the Airframe and Powerplant examination. The FAA Examiner immediately reported Amaro’s bribe solicitation and, thereafter, agreed to work with federal law enforcement authorities.
Over the next several weeks, Amaro and the FAA Examiner agreed that Amaro would take the Airframe and Powerplant examination in Duluth, Georgia on December 16, 2019. As part of the agreement, Amaro offered to pay the FAA Examiner $500 upfront and $2,000 on the day of the test, in exchange for receiving a passing score on the Airframe and Powerplant examination.
On December 9, 2019, Amaro sent the FAA Examiner $500 via a mobile payment service. On December 16, 2019, Amaro met the FAA Examiner in Duluth, Georgia, and paid the FAA Examiner $2,000 in cash for a passing score on the Airframe and Powerplant examination.
On March 5, 2020, the U.S. Attorney charged Frank A. Jalion Amaro, 21, of Las Vegas, Nevada, in a criminal information with bribery. Amaro pleaded guilty to that charge.
The Department of Transportation – Office of Inspector General is investigating this case.
Assistant U.S. Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office teams up with the SEC, Georgia Secretary of State, and AARP to provide Georgians with information on COVID-19 scamsRead the Press Release
ATLANTA – U.S. Attorney Byung J. “BJay” Pak will join representatives from the Securities and Exchange Commission (SEC), Georgia Secretary of State, and the AARP in a tele-town hall meeting to provide information to Georgia residents to help them identify and avoid fraudulent schemes related to the Coronavirus (COVID-19).
“Scammers are taking advantage of the global pandemic in order to swindle U.S. residents, including many seniors, out of their hard-earned money,” said U.S. Attorney Byung J. “BJay” Pak. “Our public outreach efforts are designed to provide knowledge that will empower Georgia’s seniors to identify, guard against, and report such scams.”
“As our country deals with the impact of COVID-19, fraudsters will use these events to lure investors into scams. We are pleased to partner with the United States Attorney’s Office in Atlanta, the Georgia Secretary of State and the AARP to talk with seniors and other investors about ways to recognize and report these schemes,” said SEC Atlanta Regional Director, Richard R. Best.
“Led by the Securities and Charities Division and its Director Noula Zaharis, we have been warning Georgians about potential scams since the early days of coronavirus in our state,” said Secretary of State Brad Raffensperger. “These frauds take advantage of the elderly and the scared, robbing them of the money they need to get through tough times. I am excited to partner with the U.S. Attorney Pak and the Securities and Exchange Commission to get the word out and protect the people of Georgia.”
U.S. Attorney Pak, SEC Atlanta Regional Director Richard R. Best, Georgia Secretary of State Securities and Charities Division Director Noula Zaharis, and AARP Georgia State President Lee Baker will be the speakers. The moderator for the event will be seven-time Emmy award winner, and host of GPB’s Lawmakers, Donna Lowry. The tele-town hall will happen on Thursday, May 21, 2020 from 6:20 p.m., until 7:20 p.m.
AARP members will receive an email inviting them to participate in the town hall. Those who wish participate may register here https://vekeo.com/georgiasecstate/.
During the current health crisis, federal investigators and prosecutors continue to fulfill their critical mission of protecting public safety. Federal officials have prioritized the disruption, investigation and prosecution of crimes related to COVID-19, including fraudulent schemes, unapproved treatments, and scams related to stimulus money. During the tele-town hall, federal officials will discuss the current COVID-19 schemes and will provide tips on how to avoid becoming a victim.
The U.S. Attorney’s Office for the Northern District of Georgia is part of Georgia’s COVID-19 Fraud Task Force. This Task Force works to better protect the citizens of Georgia from criminal fraud arising from the pandemic. 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. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Emory University professor and Chinese “Thousand Talents” participant convicted and sentenced for filing a false tax returnRead the Press Release
ATLANTA – Xiao-Jiang Li has pleaded guilty to a criminal information charging him with filing a false tax return and was sentenced by a U.S. District Judge on the same day. Dr. Li, a former Emory University professor and Chinese Thousand Talents Program participant, worked overseas at Chinese Universities and did not report any of his foreign income on his federal tax returns.
“This defendant thought that he could live two, separate lives—one here at Emory University and one in China as a Thousand Talents Program participant,” said U.S. Attorney Byung J. “BJay” Pak. “Eventually, the truth caught up to this defendant, and he is now a convicted felon who is ordered to repay over $35,000 to the IRS.”
“The Department of Justice remains vigilant over programs such as the Thousand Talents Program that recruits professors and researchers to work for China,” said Assistant Attorney General for National Security John C. Demers. “In this case, Li was caught in his lack of transparency. We are grateful for the work our partners have done to bring light to this case.”
“IRS Criminal Investigation is diligent when it comes to enforcing tax laws directed at those who attempt to defraud our nation’s tax system," said James E. Dorsey, Special Agent in Charge of Atlanta Field Office. “This sentencing is an example that federal tax crimes will not go unpunished. Those consequences include being a convicted felon and paying back all the taxes owed including penalties and interest.”
“Li's actions demonstrated a flagrant disrespect for the law and taxpayers,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal partners will always pursue individuals like Li, who victimize innocent taxpayers for their own personal gain.”
“Our watchdog agency will continue to aggressively investigate anyone who does not adhere to agency rules regarding the disclosure of foreign funding and affiliations,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work closely with our law enforcement partners to bring these types of cases to justice.”
According to U.S. Attorney Pak, the charges and other information presented in court: In late 2011, while employed at Emory University, Li joined the Thousand Talents Program, a Chinese-government talent recruitment initiative that targets professors and researchers to work in China. Starting in 2012 and continuing until 2018, Li, while still working at Emory University researching, among other things, the use of large animal models to investigate Huntington’s disease, also worked at two Chinese universities—first at the Chinese Academy of Sciences and then at Jinan University—conducting similar large animal model research. Over those six years, Li earned at least $500,000 in foreign income that he never reported on his federal income tax returns.
Li’s false income tax returns came to light after the National Institutes of Health (“NIH”) reviewed Li’s NIH research grant applications and became concerned that he had failed to disclose, among other things, foreign research activity. Those concerns prompted Emory University, and later, federal law enforcement, to investigate the matter, which revealed Li’s false tax returns.
Xiao-Jiang Li, 63, of Atlanta, Georgia, pleaded guilty on May 8, 2020, and 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.
The Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, and Department of Health and Human Services OIG investigated this case.
Assistant U.S. Attorney Samir Kaushal and Department of Justice National Security Division Trial Attorney Matthew J. McKenzie prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Emory University Professor and Chinese “Thousand Talents” Participant Convicted and Sentenced for Filing a False Tax ReturnRead the Press Release
On May 8, 2020, Dr. Xiao-Jiang Li, 63, of Atlanta, Georgia, pleaded guilty to a criminal information charging him with filing a false tax return and has been sentenced by a U.S. District Judge on the same day. Dr. Li, a former Emory University professor and Chinese Thousand Talents Program participant, worked overseas at Chinese Universities and did not report any of his foreign income on his federal tax returns.
“The Department of Justice remains vigilant over programs such as the Thousand Talents Program that recruits professors and researchers to work for China,” said Assistant Attorney General for National Security John C. Demers. “In this case Li was caught in his lack of transparency. We are grateful for the work our partners have done to bring light to this case.”
“This defendant thought that he could live two, separate lives — one here at Emory University and one in China as a Thousand Talents Program participant,” said U.S. Attorney Byung J. “BJay” Pak. “Eventually, the truth caught up to this defendant, and he is now a convicted felon who is ordered to repay over $35,000 to the IRS.”
"As this case demonstrates, the FBI is committed to working with our partners to prevent individuals from utilizing the Chinese Government’s talent plan programs to commit fraud against the United States government and our universities," said Acting Assistant Director Robert R. Wells of the FBI's Counterintelligence Division.
"Li's actions demonstrated a flagrant disrespect for the law and all taxpayers," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "The FBI and our federal partners will always pursue individuals like Li, who victimize innocent taxpayers for their own personal gain."
“IRS Criminal Investigation is diligent when it comes to enforcing tax laws directed at those who attempt to defraud our nation’s tax system," said James E. Dorsey, Special Agent in Charge of Atlanta Field Office. “This sentencing is an example that federal tax crimes will not go unpunished. Those consequences include being a convicted felon and paying back all the taxes owed including penalties and interest.”
“Our watchdog agency will continue to aggressively investigate anyone who does not adhere to agency rules regarding the disclosure of foreign funding and affiliations,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work closely with our law enforcement partners to bring these type cases to justice.”
According to the charges and other information presented in court: In late 2011, while employed at Emory University, Li joined the Thousand Talents Program, a Chinese-government talent recruitment initiative that targets professors and researchers to work in China. Starting in 2012 and continuing until 2018, Li, while still working at Emory University researching, among other things, the use of large animal models to investigate Huntington’s disease, also worked at two Chinese universities — first at the Chinese Academy of Sciences and then at Jinan University — conducting similar large animal model research. Over those six years, Li earned at least $500,000 in foreign income that he never reported on his federal income tax returns.
Li’s false income tax returns came to light after the National Institutes of Health (NIH) reviewed Li’s NIH research grant applications and became concerned that he had failed to disclose, among other things, foreign research activity. Those concerns prompted Emory University, and later federal law enforcement, to investigate the matter which revealed Li’s false tax returns.
Li was sentenced to one year of probation on a felony charge and was 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 IRS, in making a complete and accurate determination of all taxes, penalties, and interest that he owes.
The IRS Criminal Investigations, FBI, and Department of Health and Human Services investigated this case.
Assistant U.S. Attorney Samir Kaushal and Department of Justice National Security Division Trial Attorney Matthew J. McKenzie prosecuted the case.
Justice Department files statement of interest to protect rights of military and overseas voters in GeorgiaRead the Press Release
ATLANTA – The Department of Justice (DOJ) filed a Statement of Interest in the Northern District of Georgia to help ensure that uniformed service members serving their country away from home, their family members absent with them, and American citizens living overseas have the opportunity to participate fully in Georgia’s 2020 federal elections. The Statement of Interest is part of the Department of Justice’s continued efforts to enforce the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA).
“The right to vote is fundamental to our democracy,” said U.S. Attorney Byung J. Pak. “My office will continue to devote resources to ensure that this fundamental right is protected for all citizens, especially the men and women serving in our military overseas.”
“Our filing today reflects the Justice Department’s unwavering commitment to ensuring that military and overseas voters are afforded a meaningful opportunity to participate in federal elections,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We will continue to ensure that the ability of our brave men and women serving in the military and our citizens residing overseas to participate fully in all federal elections is not infringed, and we will also continue to closely monitor challenges to voting practices to ensure that those challenges do not result in a violation of federal law.”
The lawsuit in question, brought by private plaintiffs, involves constitutional challenges to several aspects of Georgia’s upcoming federal primary election, including the Secretary of State’s decision to hold the state’s 2020 primary election on June 9. Among other possible relief relating to the COVID-19 pandemic, the plaintiffs have asked the court to postpone Georgia’s primary election until June 30.
The Statement of Interest explains that UOCAVA requires states to transmit absentee ballots to military and overseas voters who have requested them at least 45 days before any federal election, including federal runoff elections. Under the plaintiffs’ proposed schedule, Georgia would not be able to transmit ballots for any federal runoff election by June 27, the 45-day deadline for the state’s August 11 primary runoff election, which the plaintiffs did not seek to reschedule. The Statement of Interest does not take a position on whether the court should grant a request to adjust the election calendar, or on the merits of any of the private plaintiffs’ claims. But the Statement notes that if the court does change the election dates, any new election schedule should comply with UOCAVA to avoid the real possibility of disenfranchising military and overseas voters.
UOCAVA requires states to allow uniformed service voters serving away from home (those serving both overseas and within the United States) and their families who are absent with them and American citizens residing overseas to register to vote and to vote absentee for all elections for federal office. In 2009, Congress enacted the MOVE Act, which made significant amendments to UOCAVA. Among those changes was a requirement that states transmit absentee ballots to UOCAVA voters who have timely requested ballots, by mail or electronically at the voter’s option, no later than 45 days before federal elections.
More information about UOCAVA and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about possible violations of the federal voting rights laws may be reported to the Justice Department’s Civil Rights Division at 1-800-253-3931.
Assistant U.S. Attorney Aileen Bell Hughes, Civil Rights Enforcement Coordinator, is handing this matter 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.
Justice Department Files Statement of Interest to Protect the Rights of Military and Overseas Voters in GeorgiaRead the Press Release
WASHINGTON – The Department of Justice today filed a Statement of Interest in a Georgia federal court to help ensure that uniformed service members serving their country away from home, their family members absent with them, and American citizens living overseas have the opportunity to participate fully in Georgia’s 2020 federal elections. The Statement of Interest is part of the Department of Justice’s continued efforts to enforce the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA).
“Our filing today reflects the Justice Department’s unwavering commitment to ensuring that military and overseas voters are afforded a meaningful opportunity to participate in federal elections,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We will continue to ensure that the ability of our brave men and women serving in the military and our citizens residing overseas to participate fully in all federal elections is not infringed, and we will also continue to closely monitor challenges to voting practices to ensure that those challenges do not result in a violation of federal law.”
“The right to vote is fundamental to our democracy,” said Byung J. Pak, U.S. Attorney for the Northern District of Georgia. “My office will continue to devote resources to ensure that this fundamental right is protected for all citizens, especially the men and women serving in our military overseas.”
The lawsuit in question, brought by private plaintiffs, involves constitutional challenges to several aspects of Georgia’s upcoming federal primary election, including the Secretary of State’s decision to hold the state’s 2020 primary election on June 9. Among other possible relief relating to the COVID-19 pandemic, the plaintiffs have asked the court to postpone Georgia’s primary election until June 30.
The Statement of Interest explains that UOCAVA requires states to transmit absentee ballots to military and overseas voters who have requested them at least 45 days before any federal election, including federal runoff elections. Under the plaintiffs’ proposed schedule, Georgia would not be able to transmit ballots for any federal runoff election by June 27, the 45-day deadline for the state’s August 11 primary runoff election, which the plaintiffs did not seek to reschedule. The Statement of Interest does not take a position on whether the court should grant a request to adjust the election calendar, or on the merits of any of the private plaintiffs’ claims. But the Statement notes that if the court does change the election dates, any new election schedule should comply with UOCAVA to avoid the real possibility of disenfranchising military and overseas voters.
UOCAVA requires states to allow uniformed service voters serving away from home (those serving both overseas and within the United States) and their families who are absent with them and American citizens residing overseas to register to vote and to vote absentee for all elections for federal office. In 2009, Congress enacted the MOVE Act, which made significant amendments to UOCAVA. Among those changes was a requirement that states transmit absentee ballots to UOCAVA voters who have timely requested ballots, by mail or electronically at the voter’s option, no later than 45 days before federal elections.
More information about UOCAVA and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about possible violations of the federal voting rights laws may be reported to the Justice Department’s Civil Rights Division at 1-800-253-3931.
District Attorneys, Solicitors strengthen fight against COVID-19 related fraudRead the Press Release
ATLANTA – The Prosecuting Attorneys’ Council of Georgia (PAC), the overarching judicial branch government agency charged with assisting State of Georgia prosecuting attorneys in their efforts against criminal activity, has joined forces with the Governor’s Office, U.S. Attorneys and Georgia’s Attorney General as the newest member of the Coronavirus (COVID-19) Fraud Task Force.
“Because our state has begun the process of re-opening does not mean scammers are going to stop,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “We will deploy all available enforcement tools against anyone who tries to take advantage of people during this pandemic. District Attorney’s from across the state are joining the Task Force and providing us even stronger prosecution partnerships.”
The Executive Director of PAC, Pete Skadalakis, will serve on the task force alongside Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office.
“When we announced the COVID-19 Fraud Task Force in early April, we made it clear that any attempts to take advantage of Georgians as we continue to navigate this public health crisis would not be tolerated,” said Governor Brian P. Kemp. “Today, that commitment remains the same. I am grateful Pete Skandalakis and the Prosecuting Attorneys’ Council are joining the task force. I know they will be a great help as we continue to prioritize the safety and well-being of all Georgians.”
“Our office is proud to partner with all three of our U.S. Attorneys, the Governor’s Office and now the Prosecuting Attorneys’ Council of Georgia. Given the extremely high volume of activity in these unprecedented times, this network will allow us to leverage our unique assets and ensure that price gougers and fraudsters are held accountable,” said Attorney General Chris Carr.
“The Prosecuting Attorneys’ Council of Georgia is proud to join in this effort,” said Pete Skandalakis, PAC Executive Director. “Sadly, it is all too common for bad actors to prey on our most vulnerable citizens, especially during times of crisis. We must all work together to protect unsuspecting Georgians against criminal acts of fraud.”
Formed in April 2020, Georgia’s COVID-19 Task Force is aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. The task force enhances communication between partner agencies to more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. 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. The Executive Director of PAC, Pete Skadalakis, will serve on the task force alongside Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office.
Georgia’s COVID-19 Task Force warns the public to be on the lookout for potential increased criminal activity related to federal stimulus checks, fake COVID-19 cures, personal protective equipment (PPE) price gouging and fair housing violations. The public can report potential scams to the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]. The public can also file complaints with the Attorney General’s Office by calling 800-869-1123 (toll-free) or at www.consumer.ga.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.
Business owner pleads guilty to 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 pleaded guilty to bribery 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.
“Pay-to-play bribery schemes cause citizens to lose trust in the integrity of the contracting process,” said U.S. Attorney Byung J. “BJay” Pak. “Public corruption involving government officials is reprehensible. Our office remains committed to eliminating corruption in government at all levels, and we want to thank the City of Atlanta for its cooperation in this investigation.”
“Choudhary tried to buy his way around a process that is meant to be fair to all contract applicants,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “His actions erode the public's trust in government and that's why the FBI and our law enforcement partners are determined to prosecute those who would undermine the integrity of how contracts are awarded.”
According to U.S. Attorney Pak, the charges and other information presented in court: The City of Atlanta’s 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 who 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 result in 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 official 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.
Based on his conduct, Hayat Choudhary, 58, of Lilburn, Georgia, was charged in a Criminal Information with, and pleaded guilty to, conspiracy to commit bribery.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Trevor C. Wilmot 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.
U.S. Attorney’s Office and law enforcement agencies are combatting sexual harassment in housing during Coronavirus pandemicRead the Press Release
ATLANTA – As the nation adopts measures to slow the spread of COVID-19, many Georgians have lost their jobs and countless more have seen their wages curtailed. These losses have forced many to seek abatements or suspensions of their rent, with reports that nearly one third of Americans were unable to pay their April rent at the beginning of the month. During this time, predatory practices have been identified and are particularly disturbing as some landlords exploit our current national crisis by sexually harassing people in need of housing.
“Many landlords responded to these circumstances with understanding and care, trying to work with their tenants to weather the current crisis,” said U.S. Attorney Byung J. “BJay” Pak. “However, there have been reports of landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct. Such behavior is despicable, and illegal.”
Sexual harassment in housing includes demands for sex or sexual acts in order to buy, rent, or continue renting a home. It also includes other unwelcome sexual conduct that makes it hard to keep living in or feel comfortable in your home. The Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division of the Department of Justice. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.
Attorney General William Barr has directed the Department of Justice Civil Rights Division and every U.S. Attorney's Office to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis. To report sexual harassment in housing to the DOJ, we have a toll-free phone number (1-844-380-6178), as well as an email address ([email protected]) and webpage.
The U.S. Attorney’s Office for the Northern District of Georgia and the Department of Justice (DOJ) will work with all federal agencies, as well as state, and local officials on reports of housing-related sexual harassment. We stand ready to take aggressive action against this misconduct whenever it 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.
Federal law enforcement leaders address discrimination amid Coronavirus pandemicRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia, in conjunction with the Federal Bureau of Investigation, reminds citizens the law enforcement mission of the Justice Department to detect, investigate, and prosecute wrongdoing during the COVID-19 crisis continues. A crucial part of this mission is ensuring all citizens are free from harassment or discrimination because of their ethnicity.
“All of us in law enforcement are committed to the safety of citizens amidst this crisis. Every citizen without distinction,” said U.S. Attorney Byung J. “BJay” Pak. “However, harassing people based on their real or perceived race or ethnicity is unacceptable and we will prosecute hate crimes and anti-discrimination violations to the fullest extent of the law.”
“During the COVID-19 pandemic, we want to remind everyone that any violent criminal act against any person because of their race, ethnicity or national origin is a hate crime,” said Special Agent in Charge Chris Hacker, of the FBI Atlanta field office. “This includes violence toward Asian Americans or individuals from East Asian countries. The FBI will use all authority granted to us by federal law to investigate and hold those who commit violent acts accountable for their actions.”
There is a significant disparity between hate crimes that actually occur and those reported to law enforcement. It is critical to report hate crimes not only to show support for the individual(s) directly impacted, but also to send a clear message that the community will not tolerate these kinds of crimes. Reporting also enables law enforcement to fully understand the scope of the problem in a community and assign resources toward preventing and addressing crimes of bias and hate.
Attorney General William Barr and Assistant Attorney General for Civil Rights Eric Dreiband have called upon department prosecutors throughout the country to watch for hate-motivated acts of violence. If you or someone you know are in immediate danger, please call 911. If you believe you have been the target or victim of a hate crime or other violation of your civil rights, please contact the FBI Atlanta Field Office by calling (770) 216-3000 or submitting a tip online https://www.fbi.gov/tips
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 charged with sabotaging electronic shipping records leading to the delay of PPE to healthcare providersRead the Press Release
ATLANTA - Christopher Dobbins, a former employee of a medical device packaging company, has been charged by criminal complaint for conducting a computer intrusion into his former employer’s package shipping system and deleting shipping information.
“This defendant allegedly disrupted the delivery of personal protective equipment in the middle of a global pandemic,” said U.S. Attorney Byung J. “BJay” Pak. “Scarce medical supplies should go to the healthcare workers and hospitals that need them during the pandemic. The Department of Justice is dedicated to moving quickly on cases like this to bring criminal opportunists to justice and protect the public during these challenging times.”
“The FBI is making it a priority during the worldwide pandemic to make sure crucial supplies are not being disrupted or diverted from the front lines of medical care,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are grateful to the medical packaging company for promptly reporting this disruption to their delivery of important medical supplies, so that we could react quickly.”
According to U.S. Attorney Pak, the criminal complaint, and other information presented in court: On March 29, 2020, Christopher Dobbins allegedly conducted a computer intrusion that disrupted and delayed the medical device packaging company’s shipments of personal protective equipment (“PPE”).
While employed at the company, Dobbins had administrator access to the computer systems containing the company’s shipping information. In early March 2020, Dobbins was terminated from his employment at the company, losing his access to the company’s computer systems. On March 26, Dobbins received his final paycheck from the company. Three days later, Dobbins used a fake user account that he had previously created while employed at the company to log into the company’s computer systems.
Once logged in through the fake user account, Dobbins allegedly 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, the complaint alleges, 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, 40, of Duluth, Georgia, will have his initial appearance before U.S. Magistrate Judge Russell G. Vineyard. He was charged by criminal complaint on April 15, 2020.
Members of the public are reminded that the criminal 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 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 [email protected].
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 resident arrested for selling illegal products claiming to protect against virusesRead the Press Release
ATLANTA - Rong Sun, a/k/a Vicky Sun made her initial appearance on federal charges of illegally selling an unregistered pesticide, illegally importing the unregistered pesticide, and mailing a prohibited article. Sun was charged with a criminal complaint filed by the U.S. Attorney’s Office on April 8, 2020.
“The defendant took advantage of the current worldwide crisis to sell an illegal product with the claim that it protects individuals from viruses,” said U.S. Attorney Byung J. “BJay” Pak. “We will take quick action through the Georgia COVID-19 Task Force to put a stop to criminals preying on the public with Coronavirus-related fraud schemes.”
“In an event of this magnitude, the public needs facts, not fiction, on the best ways to protect themselves from viruses,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “We must all remain vigilant against unsubstantiated or false claims that products ward off viruses. Those marketing such illegal products should beware they may end up on the radar of federal investigators, and be vigorously prosecuted.”
“Reliance on fraudulent products may increase the spread of COVID-19 and exacerbate the current public health emergency,” said Environmental Protection Agency (EPA) Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and our law enforcement partners are working hard to keep these illegal products off the shelves, off the internet, and out of this country. We ask American consumers to help by checking the list of approved products found at epa.gov/coronavirus before making any purchases.”
“The sale of this product not only violates several federal laws, it also gives people a false hope. During a global crisis, like we are experiencing right now, it is incredibly dangerous and reckless to exploit people’s fear for profit,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta, in conjunction with our law enforcement partners, will continue to prioritize our efforts to protect Americans from COVID-19 fraud.”
“The U.S. Postal Inspection Service will pursue those individuals that are illegally utilizing the mail system to defraud victims during this coronavirus pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “With the collaborative investigative efforts of our law enforcement partners, we remain resolute to pursue and bring to justice any criminals involved in these deceptive schemes.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The defendant allegedly sold an unregistered pesticide, Toamit Virus Shut Out, through eBay, claiming that it would help protect individuals from viruses. The pesticide was marketed as “Virus Shut Out” and “Stop The Virus.” As shown below, the eBay listing depicted the removal of viruses by wearing the “Virus Shut Out” and “Stop The Virus” product.
Additionally, the listing stated that “its main ingredient is ClO2, which is a new generation of widely effective and powerful fungicide recognized internationally at present. Bacteria and viruses can be lifted up within one meter of the wearer’s body, just like a portable air cleaner with its own protective cover.” It also stated that “In extraordinary times, access to public places and confined spaces will be protected by one more layer and have one more layer of safety protection effect, thus reducing the risks and probability of infection and transmission.”
The listing further claimed that Toamit is “office and home essential during viral infections reduce transmission risk by 90%.”
The Federal Insecticide, Fungicide and Rodenticide Act, FIFRA, regulates the production, sale, distribution and use of pesticides in the United States. A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest. The term “pest” includes viruses. Pesticides are required to be registered with the EPA. Toamit Virus Shut Out was not registered and it is illegal to distribute or sell unregistered pesticides. In addition, Sun allegedly imported the pesticide from Japan, violating the anti-smuggling law and then sent it via U.S. Postal Service priority mail.
The EPA has taken steps to block importing of Toamit Virus Shut Out and its sale within the United States: https://www.epa.gov/newsreleases/epa-administrator-wheeler-talks-retailers-and-third-party-marketplace-platforms-discuss and https://www.epa.gov/newsreleases/us-epa-acts-protect-public-unregistered-virus-shut-out-product-imported-honolulu-and.
Rong Sun, a/k/a Vicky Sun, 34, of Fayetteville, Georgia, made her initial appearance before U.S. Magistrate Judge Alan J. Baverman. Members of the public are reminded that the 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 Environmental Protection Agency-Criminal Investigation Division, Homeland Security Investigations, and U.S. Postal Inspection Service are investigating this case.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds, and Senior Counsel Krishna Dighe of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division are prosecuting the case.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
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 Resident Arrested for Selling Illegal Products Claiming to Protect Against VirusesRead the Press Release
A Georgia resident made her initial appearance on federal charges of illegally importing and selling an unregistered pesticide, Toamit Virus Shut Out, through eBay, claiming that it would help protect individuals from viruses.
Rong Sun, aka Vicky Sun, 34, of Fayetteville, Georgia, was charged with a criminal complaint filed by the U.S. Attorney’s Office on April 8, 2020, and made her initial appearance today before U.S. Magistrate Judge Alan J. Baverman.
“In an event of this magnitude, the public needs facts, not fiction, on the best ways to protect themselves from viruses,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “We must all remain vigilant against unsubstantiated or false claims that products ward off viruses. Those marketing such illegal products should beware they may end up on the radar of federal investigators, and be vigorously prosecuted.”
“The defendant took advantage of the current worldwide crisis to sell an illegal product with the claim that it protects individuals from viruses,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia. “We will take quick action through the Georgia COVID-19 Task Force to put a stop to criminals preying on the public with Coronavirus-related fraud schemes.”
“Reliance on fraudulent products may increase the spread of COVID-19 and exacerbate the current public health emergency,” said Environmental Protection Agency (EPA) Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and our law enforcement partners are working hard to keep these illegal products off the shelves, off the internet, and out of this country. We ask American consumers to help by checking the list of approved products found at epa.gov/coronavirus before making any purchases.”
“The sale of this product not only violates several federal laws, it also gives people a false hope. During a global crisis, like we are experiencing right now, it is incredibly dangerous and reckless to exploit people’s fear for profit,” said U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) acting Special Agent in Charge Robert Hammer, who oversees operations in Georgia and Alabama. “HSI Atlanta, in conjunction with our law enforcement partners, will continue to prioritize our efforts to protect Americans from COVID-19 fraud.”
“The U.S. Postal Inspection Service will pursue those individuals that are illegally utilizing the mail system to defraud victims during this coronavirus pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “With the collaborative investigative efforts of our law enforcement partners, we remain resolute to pursue and bring to justice any criminals involved in these deceptive schemes.”
According to the charges, the defendant sold an unregistered pesticide, Toamit Virus Shut Out, through eBay, claiming that it would help protect individuals from viruses. The pesticide was marketed as “Virus Shut Out” and “Stop The Virus.”
Additionally, the listing stated that “its main ingredient is ClO2, which is a new generation of widely effective and powerful fungicide recognized internationally at present. Bacteria and viruses can be lifted up within one meter of the wearer’s body, just like a portable air cleaner with its own protective cover.” It also stated that “In extraordinary times, access to public places and confined spaces will be protected by one more layer and have one more layer of safety protection effect, thus reducing the risks and probability of infection and transmission.”
The listing further claimed that Toamit is “office and home essential during viral infections reduce transmission risk by 90%.”
The Federal Insecticide, Fungicide and Rodenticide Act, FIFRA, regulates the production, sale, distribution and use of pesticides in the United States. A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest. The term “pest” includes viruses. Pesticides are required to be registered with the EPA. Toamit Virus Shut Out was not registered and it is illegal to distribute or sell unregistered pesticides. In addition, Sun allegedly imported the pesticide from Japan, violating the anti-smuggling law and then sent it via U.S. Postal Service priority mail.
The EPA has taken steps to block importing of Toamit Virus Shut Out and its sale within the United States: https://www.epa.gov/newsreleases/epa-administrator-wheeler-talks-retailers-and-third-party-marketplace-platforms-discuss and https://www.epa.gov/newsreleases/us-epa-acts-protect-public-unregistered-virus-shut-out-product-imported-honolulu-and.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The EPA-Criminal Investigation Division, HSI, and U.S. Postal Inspection Service are investigating this case.
Senior Counsel Krishna Dighe of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds are prosecuting the case.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
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.
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.
Top federal and state prosecutors form Georgia COVID-19 Fraud Task ForceRead the Press Release
ATLANTA - Georgia’s leading state and federal prosecutors announce a new Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic.
The task force will enhance 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. 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.
“My office is honored to work with this task force in our state’s fight against the spread of COVID-19. As a team, we are committed to putting Georgians first to ensure their safety and well-being as we address this public health state of emergency,” said Governor Brian P. Kemp.
“Thieves never stop searching for ways to take advantage of unsuspecting people,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “Citizens can rest assured that we will bring every asset to bear against fraudsters and those who use this crisis as an opportunity to commit fraud. Also, we encourage anyone who believes they are the victim of a scam, or may have been contacted by someone stating they represent a government agency, to contact this task force immediately.”
“Our office has received hundreds of complaints regarding scams, price gouging and other issues related to the COVID19 pandemic, and we won’t tolerate those who are taking advantage of consumers and interfering with our frontline workers’ response to the crisis,” said Attorney General Chris Carr. “This partnership between the State of Georgia and our U.S. Attorneys will enable us to work together to investigate and, as appropriate, prosecute those who violate our laws. We will leave no stone unturned as we protect all Georgians.”
“Opportunistic criminals are targeting the most vulnerable among us with COVID-19 scams, but our office and law enforcement and prosecutorial partners remain vigilant,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “We continue to detect, investigate and prosecute criminal conduct, and reassure our law-abiding citizens that their safety and security is our primary focus.”
“To all would-be scammers: Anyone who uses this pandemic to defraud Georgians will be investigated and prosecuted to the fullest extent of the law,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “The creation of this unified task force better prepares us to investigate and prosecute criminal acts of fraud related to the COVID-19 pandemic. The law enforcement community is strong in our state. I want to thank our partners at the local, state and federal level dedicated to protecting our citizens from fraudsters.”
Within each task force member agency, an appointed fraud complaint coordinator will oversee the cases and remain in regular contact with partner law enforcement agencies. The appointed coordinators are: Russell Phillips, Assistant U.S. Attorney, U.S. Attorney’s Office for the Northern District of Georgia , Jim Crane, Assistant U.S. Attorney, U.S. Attorney’s Office for the Middle District of Georgia; David Dove, Executive Counsel, Office of the Governor of Georgia; Anne Infinger, Deputy Attorney General, Consumer Protection Division, Office of the Attorney General of Georgia; and Patrick Schwedler, Assistant U.S. Attorney, U.S. Attorney’s Office for the Southern District of Georgia.
The public is urged to be on the lookout for any of these COVID-19 scams, which can be reported to the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]:
- Treatment scams: Scammers are selling fake vaccines, medicines, and cures for COVID-19.
- Supply scams: Scammers are claiming they have in-demand products, like cleaning and household supplies, and medical supplies, but when an order is placed, the scammer takes the money and never delivers the order.
- Charity scams: Scammers are fraudulently soliciting donations for non-existent charities to help people affected by the COVID-19 crisis. Scammers often use names that are similar to the names of real charities.
- Phishing scams: Scammers, posing as national and global health authorities, such as the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending fake emails and texts to trick the recipient into sharing personal information like account numbers, Social Security numbers, and login IDs and passwords.
- App scams: Scammers are creating COVID-19 related apps that contain malware designed to steal the user’s personal information.
- Provider scams: Scammers pretending to be doctors and hospitals demand payment for COVID-19 treatment allegedly provided to a friend or family member of the victim.
- Investment scams: To promote the sale of stock in certain companies—particularly small companies, about which there is little publicly available information—scammers are making false and misleading claims that those companies can prevent, detect or cure COVID-19.
The Consumer Protection Division (CPD) of the Office of the Attorney General of Georgia has received more than 600 complaints of price gouging or scams related to COVID-19, the majority regarding food, toilet paper, water and hand sanitizer. The public can file complaints with the CPD by calling 800-869-1123 (toll-free) or at www.consumer.ga.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.
Kansas man charged with attempting to travel overseas to engage in sex acts with minorsRead the Press Release
ATLANTA - Timothy Brown has pleaded not guilty on a federal charge of attempting to travel to the Philippines for the purpose of engaging in illicit sex with a minor. Brown was stopped at Hartsfield-Jackson Atlanta International Airport as he prepared to board an international flight.
“Brown was minutes away from boarding a flight to travel to the Philippines where he allegedly planned to have sex with minor girls,” said U.S. Attorney Byung J. “BJay” Pak. “Swift work by our law enforcement partners prevented Brown from boarding the plane.”
“A sexual predator’s desire to take the innocence of a minor isn’t bound by international boundaries,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta, in conjunction with our overseas offices will continue to work tirelessly to detect and catch these predators before they have a chance to destroy a child’s life.”
According to U.S. Attorney Pak, the charges, and other information presented in court: On February 3, 2020, agents with Homeland Security Investigations (HSI) approached Brown in the international concourse at Hartsfield-Jackson Atlanta International Airport. Brown had just flown in from his hometown, and had tickets to fly to Tokyo, Japan, where he would then transfer flights to proceed to Manila.
Brown consented to a search of his cell phone after being approached by federal law enforcement officials. While searching his phone, investigators found communications between Brown and individuals with whom he was arranging to engage in sex acts with minor-aged girls. During one of the exchanges, Brown allegedly stated that he would condition his payment for sex upon the age of the child and whether she was a virgin.
Timothy Brown, 48, of Wichita, Kanas, pleaded not guilty before U.S. Magistrate Judge Alan J. Baverman. Brown was indicted by a federal grand jury on March 3, 2020. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Paul R. Jones 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.
Department of Justice makes $850 million available to help public safety agencies address COVID-19 pandemicRead the Press Release
ATLANTA – The Department of Justice has announced that it is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, will allow eligible state, local and tribal governments to apply immediately for these critical funds. The department is moving quickly to make awards, with the goal of having funds available for drawdown within days of the award.
“Law enforcement resources are stretched thin at every level,” said U.S. Attorney Byung J. “BJay” Pak. “These funds will be used to directly reinforce critical needs as leaders work to address every contingency.”
“This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are grateful to the Congress for making these resources available and for the show of support this program represents.”
The solicitation, posted by the Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund successful applicants as a top priority on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to Jan. 20, 2020, subject to federal supplanting rules.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency funding. A complete list of eligible jurisdictions and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.
The Coronavirus Emergency Supplemental Funding program can be viewed at https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://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.
Georgia man pleads guilty to attempting to attack the White House with explosivesRead the Press Release
ATLANTA - Hasher Jallal Taheb, who planned an attack on the White House using weapons and explosives, has pleaded guilty to a charge of attempting to destroy, by fire or an explosive, a building owned by or leased to the United States.
“Taheb hatched a dangerous plan that would have resulted in unimaginable injury,” said U.S. Attorney Byung J. “BJay” Pak. “We are grateful to community members who noticed his dangerous evolution and alerted law enforcement. Along with our federal, state and local partners, we will remain vigilant in order to disrupt these types of attacks before they happen.”
“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 admitted his guilt and will now be held accountable for his crime.”
“This plea is the result of a more than year-long intensive investigation by FBI Atlanta's Joint Terrorism Task Force, which was because of a tip from the community,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Our citizens are our most important weapons in fighting terrorism, our eyes and ears in our communities, and why we say to please contact law enforcement if you see or hear something suspicious.”
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 specifically alerted law enforcement that Taheb had become radicalized and was making plans to travel abroad.
During an undercover operation conducted by the FBI, federal investigators learned in October 2018 that Taheb planned to travel overseas and that he had applied for a United States passport in July 2018. The FBI also learned that Taheb had begun planning domestic attacks in the United States as part of his desire to engage in “jihad.” His targets initially included the White House and the Statue of Liberty. Later, 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, he produced sketches of the White House and described the types of weapons and explosives he wished 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 he arrived at a pre-arranged location where he expected to obtain semi-automatic assault rifles, explosive devices, and an anti-tank weapon.
Sentencing for Hasher Jallal Taheb, 23, of Cumming, Georgia, is scheduled for June 23, 2020, at 9:30 a.m., before U.S. District Judge Mark H. Cohen.
The Federal Bureau of Investigation’s Joint Terrorism Task Force, which includes the U.S. Secret Service, is investigating this case. The Forsyth County Sheriff Office and Gwinnett County Police Department also provided assistance.
Assistant U.S. Attorneys Ryan K. Buchanan and Matthew Carrico and Trial Attorneys Danielle Rosborough and B. Celeste Corlett of the Department of Justice National Security Division are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Man Pleads Guilty to Attempting to Attack the White House with ExplosivesRead the Press Release
Today Hasher Jallal Taheb, 23, of Cumming, Georgia, has pleaded guilty to a charge of attempting to destroy, by fire or an explosive, a building owned by or leased to the United States. Taleb had planned an attack on the White House using weapons and explosives. As part of the plea agreement, the defendant and the government agreed that the defendant should receive a 15-year sentence of imprisonment.
“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 admitted his guilt and will now be held accountable for his crime.”
“Taheb hatched a dangerous plan that would have resulted in unimaginable injury,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “We are grateful to community members who noticed his dangerous evolution and alerted law enforcement. Along with our federal, state and local partners, we will remain vigilant in order to disrupt these types of attacks before they happen.”
“This plea is the result of a more than year-long intensive investigation by FBI Atlanta’s Joint Terrorism Task Force, which was because of a tip from the community,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Our citizens are our most important weapons in fighting terrorism, our eyes and ears in our communities, and why we say to please contact law enforcement if you see or hear something suspicious.”
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 specifically alerted law enforcement that Taheb had become radicalized and was making plans to travel abroad.
During an undercover operation conducted by the FBI, federal investigators learned in October 2018 that Taheb planned to travel overseas and that he had applied for a United States passport in July 2018. The FBI also learned that Taheb had begun planning domestic attacks in the United States as part of his desire to engage in “jihad.” His targets initially included the White House and the Statue of Liberty. Later, 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, he produced sketches of the White House and described the types of weapons and explosives he wished to use in the attack, including semi-automatic weapons, improvised explosive devices, an anti-tank weapon, and hand grenades. FBI special agents arrested Taheb on Jan. 16, 2019, after he arrived at a pre-arranged location where he expected to obtain semi-automatic assault rifles, explosive devices, and an anti-tank weapon.
Sentencing for Taheb is scheduled for June 23, 2020, at 9:30 a.m. before U.S. District Judge Mark H. Cohen.
The Federal Bureau of Investigation’s Joint Terrorism Task Force, which includes the U.S. Secret Service, investigated this case. The Forsyth County Sheriff Office and Gwinnett County Police Department also provided assistance.
Assistant U.S. Attorneys Ryan K. Buchanan and Matthew Carrico and Trial Attorneys Danielle Rosborough and B. Celeste Corlett of the National Security Division’s Counterterrorism Section are prosecuting the case.
Former Accenture employee pleads guilty to wire fraudRead the Press Release
ATLANTA - Jaiswinkumar Jagdishbhai Patel, who submitted fraudulent travel reimbursement vouchers to his employer over a period of several years, has pleaded guilty to one count of wire fraud.
“Patel was a trusted employee who used the frequent travel required for his job as an opportunity to steal from his employer,” said U.S. Attorney Byung J. “BJay” Pak. “Eventually, he was caught by his employer and now faces the potential of significant prison time.”
“Patel violated the trust placed in him by the company that hired him and now he will find out what price he will have to pay for his actions,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will continue to work hard to protect companies against anyone who would attempt to profit from false claims.”
According to U.S. Attorney Pak, the charges and other information presented in court: Patel was employed by Accenture PLC as a business consultant who frequently traveled as a part of his employment. To receive reimbursement for his travel related expenses, Patel was directed to submit his travel receipts for expenses like hotels, rental cars, and plane tickets to the company. However, in March 2012, he began submitting fraudulent vouchers for reimbursement for his travel.
Rather than submitting the true invoices for his expenses, Patel would modify and create receipts to show additional or higher travel, lodging, and food expenses than he had actually incurred. After modifying the true invoices and creating forged receipts, Patel would submit these fraudulent business expenses, often times from his home in the Atlanta, Georgia area, via email and the postal mail, to travel voucher reviewers that were located in other states. Accenture would then make reimbursement payments to Patel, relying on the falsified documentation. Patel submitted approximately 347 fraudulent expense transactions to Accenture throughout the course of his employment, resulting in a theft of over $112,000 until he was caught and fired by Accenture on January 17, 2017.
Sentencing for Jaiswinkumar Jagdishbhai Patel, 42, of Hampton, Georgia, is scheduled for June 24, 2020, at 9:30 a.m., before U.S. District Judge Mark H. Cohen.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Miguel R. Acosta 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.
U.S. Attorney urges the public to report suspected COVID-19 fraudRead the Press Release
ATLANTA - U.S. Attorney Byung J. “BJay” Pak is urging the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected].
In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes.
“The Department of Justice will take swift action to shut down fraud schemes related to COVID-19,” said U.S. Attorney Byung J. “BJay” Pak. “We will use every resource at our disposal to detect these schemes and prosecute those who use this pandemic to perpetrate fraud.”
Some examples of these schemes include:
- Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
- Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
- Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
- Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
- Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.
In a memorandum to U.S. Attorneys issued March 19, 2020, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities. Assistant U.S. Attorney Russell Phillips was named the Northern District of Georgia Coronavirus Fraud Coordinator.
The NCDF can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes. The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.
To find more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
California man sentenced for hacking an Atlanta-based companyRead the Press Release
ATLANTA - Christian William Kight, a/k/a Drillo, has been sentenced for extortion, computer fraud, and wire fraud for hacking into an Atlanta-based computer analytics company and attempting to extort money from the company in exchange for the return of their intellectual property.
“This defendant hid behind his computer to extort companies in this district and elsewhere,” said U.S. Attorney Byung J. “BJay” Pak. “As a result of the exemplary work of law enforcement and the cooperation of the victim, he is headed to federal prison. This case highlights the positive outcomes that are possible for businesses and the community when the private sector works with law enforcement to bring cyber criminals to justice.”
“Kight’s scheme against this company is unfortunately all too common and highlights the ever-growing need to remain vigilant in cybersecurity efforts”, said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Hopefully this sentence sends a message to the thieves hiding behind their computers, if you violate our laws, the FBI will make sure you pay the price.”
“Computer hacking is a serious crime, and the theft of intellectual property threatens the fabric of our economy. The partnership between the Georgia Attorney General’s Office and the United States Attorney’s Office for the Northern District of Georgia is just one example of law enforcement working together to keep Georgia citizens, individual and corporate, safe,” said Georgia Attorney General Chris Carr.
According to U.S. Attorney Pak, the charges and other information presented in court: Kight gained unauthorized access to the computer networks and servers of multiple companies and organizations, including a computer analytics company in the Northern District of Georgia. Once on the victim’s network, Kight concealed his identity, exfiltrated data files, and deleted data and log files. He then sent a series of emails to the victim demanding money in exchange for the release of their data.
When the company announced their intention to contact law enforcement, Kight further threatened to send reputation-harming letters to the company’s clients and disseminate the data he had stolen. The victim nonetheless contacted the FBI and reported the hack and extortion demands. Once identified through the FBI investigation, a search of Kight’s computer equipment and encrypted email account revealed evidence of this crime as well as his scheme to extort multiple victims.
Christian William Kight, a/k/a Drillo, 29, of San Clemente, California, was sentenced by Chief U.S. District Judge Thomas W. Thrash, Jr., to seven years, eight months in prison to be followed by three years of supervised release, a $900 fine, and $42,001.00, in restitution. Kight was convicted on these charges on December 3, 2019, after he pleaded guilty.
The Federal Bureau of Investigation investigated this case.
Special Assistant U.S. Attorney Laura D. Pfister prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia DFCS employee pleads guilty to aggravated identity theftRead the Press Release
ATLANTA - Tamika Anderson, a Georgia Division of Family and Children Services (“DFCS”) employee, has pleaded guilty to aggravated identity theft after she stole more than 100 identities while employed at Georgia DFCS.
“DFCS provides critical services to some of Georgia's neediest and most vulnerable residents,” said U.S. Attorney Byung J. “BJay” Pak. “These citizens depend on DFCS and its employees to do the right thing. For a state employee to exploit these people by stealing their identities is reprehensible.”
“This case is an unfortunate example of an individual who violated her position of trust to illegally enrich herself,” said Steven R. Baisel, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “The Secret Service will continue to collaborate with our law enforcement partners to target and arrest individuals who commit these types of crimes.”
According to U.S. Attorney Pak, the charges and other information presented in court: in September 2018, Anderson and a co-conspirator, Cassandra Clayton, agreed to sell people's identities, including their names and Social Security numbers, to a third-party for $4,000, with Anderson keeping $3,600. Anderson obtained the identities while working at Georgia DFCS from unsuspecting clients and sent them to Clayton by text message. Clayton did not work for Georgia DFCS, but was responsible for completing the sale to the third-party at a restaurant in McDonough, Georgia. Unbeknownst to Anderson and Clayton, the “buyer” was an undercover agent. Anderson and Clayton knew, however, that the identities were supposed to be used for other fraudulent conduct. In total, Anderson stole over 100 identities over just a couple of weeks.
Cassandra Clayton, 44, of Jonesboro, Georgia, previously pleaded guilty to conspiracy to commit access device fraud. On January 23, 2020, Clayton was sentenced to three years’ probation.
Sentencing for Tamika Anderson, 29, of Jonesboro, Georgia, is scheduled for June 10, 2020, before U.S. District Judge Eleanor L. Ross.
The U.S. Secret Service is investigating this case.
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.
Dozens charged in Atlanta-based money laundering operation that funneled $30 million in proceeds from computer fraud schemes, romance scams, and retirement account fraudRead the Press Release
ATLANTA – Federal agents have arrested twenty-four individuals 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 into losing more than $30 million.
“Fraud schemes, like the ones perpetrated and facilitated by these defendants, inflict considerable losses on citizens, companies, and the financial system,” said U.S. Attorney Byung J. “BJay” Pak. “Some of these schemes target the elderly and often deplete the victims’ entire life savings. These arrests affirm the Department of Justice’s commitment to prosecuting those who prey on our most vulnerable citizens.”
“The FBI would like to thank our numerous federal, state and local law enforcement partners who helped make these arrests possible,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “There is no way we can make the victims of these schemes, many who have lost their life savings, whole again. Hopefully the arrests and pending prosecutions will at least give them solace that someone is being held accountable for their losses.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud relating to employee benefit plans. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
“This investigation and subsequent arrests is due to the level of cooperation and information sharing by all law enforcement partners involved,” said Steven R. Baisel, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “The Secret Service will continue to collaborate with the U.S. Attorney’s Office and our partners to safeguard the nation’s critical financial infrastructure and the people in our communities.”
“No one deserves to have their hard-earned money stolen from them, so identifying and arresting these defendants makes everyone in the community safer,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Foreign nationals arrested in this scheme will be placed into removal proceedings upon completion of their criminal sentence.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: The defendants served as money launderers for other individuals throughout the world who conducted cyber-enabled fraud, including business email compromise schemes, romance scams, and retirement account scams, targeted at companies and individuals across the United States.
A “business email compromise” (BEC) is a type of computer intrusion that occurs when an employee of a company is tricked into interacting with an email message that appears to be, but is not, legitimate. The fraudulent email instructs the victim to wire money to a bank account controlled by conspirators.
A “romance scam” is a type of online fraud that occurs when an individual user of an internet dating website is targeted for fraud by an imposter posing as a potential paramour. The scammer creates a fake online dating profile that depicts photographs of an attractive man or woman alongside descriptions of the fictitious person. The scammer then uses this fake person to express romantic interest in the victim in order to trick him or her into sending money to the scammer. The scammer frequently targets vulnerable individuals who possess significant financial assets, such as retired widows or widowers.
A “retirement account scam” is a type of online fraud that occurs when a third party administrator (TPA) for retirement investment accounts is tricked into authorizing a money distribution to an imposter posing as the true accountholder. The imposter often starts the scam by calling the TPA, identifying himself or herself as an actual accountholder, and requesting a withdrawal distribution form. Once the imposter receives the withdrawal distribution form, the imposter returns the completed form to the TPA. The form is completed with the accountholder’s real personal identifying information (PII)—often stolen via BEC schemes, data breaches, and other hacking offenses—and bank account information for an account controlled by the imposter or the imposter’s conspirators. After the TPA processes the fraudulent request, the request is forwarded to the investment firm responsible for managing the accountholder’s investments, and the funds—often the accountholder’s life savings—are then directed to the imposter’s designated bank account.
The defendants and co-conspirators facilitated BEC schemes, romance scams, and retirement account scams by receiving and distributing fraudulent funds throughout the United States and the world. Over the course of the conspiracy, the defendants and their co-conspirators laundered over $30 million in fraud proceeds. The defendants created multiple sham companies that did not have physical premises, earn legitimate income, or pay wages to employees. In turn, the defendants opened business bank accounts at multiple financial institutions to facilitate receipt of the fraudulent money. The defendants also opened personal bank accounts to receive fraudulent funds, often using false identities and victims’ identities. After funds were deposited into the defendants’ bank accounts, the money was quickly withdrawn from the accounts and circulated among the defendants.
The following individuals have been charged with money laundering conspiracy:
- Darius Sowah Okang, a/k/a Michael J. Casey, a/k/a Richard Resser, a/k/a Thomas Vaden, a/k/a Michael Lawson, a/k/a Matthew Reddington, a/k/a Michael Little, 29, of Stone Mountain, Georgia;
- Dominique Raquel Golden, a/k/a Desire Tamakloe, a/k/a Mellissa Moore, a/k/a Nicole Nolay, a/k/a Raquel Roberts, a/k/a Maria Henderson, a/k/a Raquel Golden, 29, of Houston, Texas;
- Blessing Oluwatimilehin Ojo, a/k/a “Timmy,” 34, of Nigeria;
- George Kodjo Edem Adatsi, 36, of Atlanta, Georgia;
- Desire Elorm Tamakloe, a/k/a “Chubby,” 25, of Smyrna, Georgia;
- Solomon Agyapong, a/k/a “Gumpe,” 31, of Marietta, Georgia;
- Afeez Olaide Adeniran, a/k/a “Ola,” 31, of Atlanta, Georgia;
- Francesco Benjamin, a/k/a “B-More,” 30, of Atlanta, Georgia;
- Jonathan Kojo Agbemafle, a/k/a “Skinny,” 26, of Kansas City, Missouri;
- Joshua Roberts, a/k/a “Onyx,” 28, of Houston, Texas;
- Hamza Abdallah, a/k/a Reggie Lewis, 30, of McDonough, Georgia;
- Prince Sheriff Okai, 26, of Mableton, Georgia;
- Kelvin Prince Boateng, 24, of Atlanta, Georgia;
- Monique Wheeler, 29, of Atlanta, Georgia;
- Matthan Bolaji Ibidapo, a/k/a “B.J.,” 27, of Colorado Springs, Colorado;
- Stephen Abbu Jenkins, a/k/a “Face,” a/k/a Steven Abbu Jenkins, Steven Jenkins, Steve Jenkins, 53, of Atlanta, Georgia;
- Kahlia Andrea Siddiqui, 28, of Chamblee, Georgia;
- Alexus Ciera Johnson, 26, of Mableton, Georgia;
- Abubakar Sadik Ibrahim, 26, of Mableton, Georgia;
- Emanuela Joe Joseph, 34, of Lawrenceville, Georgia;
- Obinna Nwosu, 26, of Douglasville, Georgia;
- Ojebe Obewu Ojebe, 27, of Atlanta, Georgia; and
- Gregory Thomas Hudson, 38, of Powder Springs, Georgia.
Darius Sowah Okang is also charged with one count of bank fraud, and one count of aggravated identity theft. The indictment alleges that Okang created a bank account in a retirement scam victim’s name, which was then used to deposit approximately $288,000 in funds fraudulently withdrawn from the victim’s retirement account.
Afeez Olaide Adeniran and Blessing Ojo are also charged with wire fraud. The indictment alleges that Adeniran defrauded a homebuyer of $40,000 intended for a real estate transaction. The indictment alleges that due to a computer intrusion and false invoicing scam, Ojo caused a media company in California to send payments totaling $89,140 to a bank account controlled by one of the defendants. In total, the victim sent $646,840, as a result of the fraud.
In addition, two related cases charging additional defendants with various counts of bank fraud, aggravated identity theft, money laundering, and conspiracies to commit these offenses are currently pending in federal court in Atlanta. These defendants include:- Benjamin Ibukunoluwa Oye, 26, of Sandy Springs, Georgia;
- Tyler Keon Roussell, 25, of Atlanta, Georgia;
- Christopher Akinwande Awonuga, 27, of Fayetteville, Georgia;
- Casey Broderick Williams, 26, of Covington, Georgia;
- Macario Lee Nelson, a/k/a “Mac,” 24, of Atlanta, Georgia;
- Chadrick Jamal Rhodes, 28, of Atlanta, Georgia;
- Chadwick Osbourne Stewart, 40, of Atlanta, Georgia;
- Oumar Bouyo Mbodj, 28, of Kennesaw, Georgia;
- Seth Appiah Kubi, 60, of Dacula, Georgia;
- Ahamefule Aso Odus, 27, of Atlanta, Georgia;
- Paul Chinonso Anyanwu, 27, of Hampton, Georgia;
- Egale Veonzell Woods, Jr., 41, of East Point, Georgia;
- Chineda Obilom Nwakadu, 25, of McDonough, Georgia;
- Chukwukadibia Ikechukwu Nnadozie, a/k/a “Chuka,” a/k/a Michael McCord, 27, of Fayetteville, Georgia;
- Uchechi Chidimma Odus, a/k/a “Uche,” 23, of Atlanta, Georgia;
- John Ifeoluwa Onimole, 27, of Powder Springs, Georgia; and
- Oluwafunmilade Onamuti, a/k/a Mathew Kelvin, 26, of Duluth, Georgia.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation, Department of Labor, Office of Inspector General, U.S. Secret Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are investigating this case.
Assistant U.S. Attorneys Kelly K. Connors, Russell Phillips, and John Ghose are prosecuting the case.
The investigating agencies received considerable support from numerous federal, state, and local law enforcement authorities, to include: Department of Labor, Employee Benefits Security Administration, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, and Firearms, the Drug Enforcement Administration, and the State of Georgia, Office of Inspector General. Also the Atlanta Police Department, Smyrna Police Department, Henry County Police Department, Gwinnett County Police Department, DeKalb County Sheriff’s Department, Chamblee Police Department, Dunwoody Police Department, Cobb County Police Department, McDonough Police Department, Carrollton Police Department, and the Sandy Springs Police Department, all in Georgia. Additional agencies are the New York City Police Department; Houston Police Department; Kent and Bellevue Police Departments in Washington; Newport Beach Police Department, Orange County Sheriff’s Department, San Francisco Police Department, and Upland Police Departments in California; Radnor Township Pennsylvania Police Department; York County South Carolina Sheriff’s Department; Bloomington Indiana Police Department; Arlington County Virginia Police Department; Wells Maine Police Department; Schaumburg Illinois Police Department; Salt Lake City Utah Unified Police District; and the Charlotte County Florida Sheriff’s Office.This investigation is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) program—the keystone drug, money laundering, and transnational organized crime enforcement program of the Department of Justice.
We engage in community outreach to educate local law enforcement and residents about how they can assist in the fight against, and protect themselves from, fraud schemes that target elder Americans. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Dalton gang member sentenced to 15 years in federal prison for possessing pistol and short-barreled shotgunRead the Press Release
ATLANTA - Florencio Rodriguez, a member of the Sureños 13 gang and multi-convicted felon, has been sentenced to consecutive, maximum terms of imprisonment for unlawfully possessing firearms, including a sawed-off shotgun with an obliterated serial number.
“Gang members are relentless in their attempts to prey upon vulnerable communities in this district, including in North Georgia,” said U.S. Attorney Byung J. “BJay” Pak. “We will continue to work with our state, local, and federal law enforcement partners to target gang members and other violent criminals who endanger the public.”
“It appears the only way to stop Rodriguez from terrorizing our communities is to keep him off the streets, and this sentence will do that for a long time,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners are dedicated to dismantling these violent criminal enterprises to make our communities safer places to live.”
“The Bureau of Alcohol, Tobacco, Firearms and Explosives is committed to the reduction of violent crime in our communities,” said ATF Special Agent in Charge Arthur Peralta. “Our law enforcement partnerships allow us to focus investigative resources on those individuals who pose the most danger. As a result, violent criminals receive the maximum sentence.”
"I am very pleased to see that the efforts of Dalton Police Department and our federal law enforcement partners has resulted in the successful prosecution of a local member of the Sur 13 street gang. Our community will be safer without this repeat offender being on the streets. This case is a great example of what can be accomplished when local, state, and federal law enforcement work together to target gang members and violent offenders,” said Dalton Police Chief Cliff Cason.
According to U.S. Attorney Pak, the charges, and other information presented in court: On July 11, 2019, police officers in Dalton, Georgia, approached Rodriguez, a member of the Sureños 13 gang, to arrest him on a pending probation warrant. Rodriguez ran from the officers when they ordered him to stop. Officers apprehended him when he fell during the chase. The officers found a .22 caliber pistol underneath Rodriguez and recovered approximately one ounce of methamphetamine from him.
At the time of his arrest, Rodriguez wore a blue bandana around his ankle, an article of clothing that gang members use to demonstrate their affiliation with the Sureños 13 gang. He also had been convicted of numerous felonies in North Georgia, including attempted robbery, street gang activity, and terroristic threats. Following his arrest, investigators seized a sawed-off shotgun and shotgun shells from a bedroom that Rodriguez shared with his girlfriend. The serial number on the sawed-off shotgun had been removed.
Florencio Rodriguez, also known as “Cheeto,” 29, of Dalton, Georgia, was sentenced by U.S. District Judge Steven D. Grimberg to 15 years in prison, followed by three years of supervised release.
The Federal Bureau of Investigation and Dalton Police Department investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
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 pleads guilty to using restricted pesticide to bait and kill coyotesRead the Press Release
ATLANTA - Terry Foster has been sentenced to pay a $1,000 fine for one count of violating the Federal Insecticide, Fungicide, and Rodenticide Act (“FIFRA”) by lacing deer carcasses with a restricted, highly poisonous pesticide in order to bait and kill coyotes.
“Foster’s conduct threatened Georgia’s wildlife and environment for his own personal benefit,” said U.S. Attorney Byung J. “BJay” Pak. “But for the speedy response by federal and state law enforcement, Foster’s actions could have had much graver consequences.”
“The defendant knowingly misused an acutely toxic pesticide to poison wildlife,” said acting Special Agent in Charge Charles Carfagno of EPA’s Criminal Investigation Division in Atlanta. “This case shows that EPA and its law enforcement partners are committed to enforcing pesticide laws to protect public health and the environment.”
“Georgia is fortunate to have a robust and unique set of natural resources that Georgians enjoy every day from the mountains to the coast. This case and outcome are a testament to the universal commitment by all federal, state, and local parties involved to protect our natural resources. DNR is proud to have strong, working relationships with these partners, which help to serve as a constant deterrent to those who wish to act outside the rule of law,” said Mark Williams, Commissioner of the Georgia Department of Natural Resources.
According to U.S. Attorney Pak, the charges and other information presented in court: In December 2018, a private citizen contacted the Georgia Department of Natural Resources (“GA-DNR”) about a possible wildlife poisoning on a property in Cherokee County. Upon arriving, GA-DNR found two deer carcasses, which had been cut open and laced with a blue, granular substance, and several dead (and dying) animals lying nearby, including an opossum and two red tailed hawks. GA-DNR then immediately requested the assistance of the United States Fish and Wildlife Service (“USFWS”) to collect and analyze the dead animals. GA-DNR subsequently learned that Foster hunted on the property where the dead animals were found, and obtained a state search warrant for his truck, from which they recovered several hunting knives, a bucket containing the blue poison, blood swaths, and deer hair. Foster was also interviewed by law enforcement, and admitted that he had recently been on the property where the deer carcasses were found, wanted nothing more than to kill coyotes, and knew the blue substance lining the deer carcasses was a poison used to bait the coyotes.
USFWS thereafter completed a toxicology analysis and DNA-matching of the animals and items recovered from Foster's truck. According to the DNA analysis, the deer hair found in Foster’s truck matched one of the deer found on the property, and the blood swabs as well as DNA from one of the knives recovered from Foster’s truck matched the other deer. The toxicology analysis confirmed that the blue substance found in the two deer carcasses, one of the red-tail hawks, and Foster’s truck was a poison, methomyl, a common fly bait that is sold under the trade name “Golden Malrin.”The EPA-approved labels for Golden Malrin Fly Killer state that it is “for use around the outside of food processing areas.” In particular, the labeling warns that: “It is illegal to use this product with the intention to kill raccoons, skunks, opossums, coyotes, wolves, dogs, cats, or any other non-target species.”
Foster admitted during his guilty plea that he had laced the deer carcasses with Golden Malrin for the purpose of killing coyotes. As a result, an opossum and two red-tailed hawks died after ingesting methomyl-laced deer.
Terry Foster, 54, of Blairsville, Georgia, was sentenced by U.S. Magistrate Judge Christopher C. Bly to pay a $1,000 fine. Foster pleaded guilty to the FIFRA violation on February 20, 2020, and was sentenced that same day.
The Georgia Department of Natural Resources, U.S. Fish and Wildlife Service Office of Law Enforcement, and U.S. Environmental Protection Agency investigated this case.
Assistant U.S. Attorney Alex R. Sistla prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta man sentenced in multi-state health care fraud conspiracyRead the Press Release
ATLANTA – Matthew Harrell has been sentenced for his role in organizing and managing a health care fraud scheme that stole millions in Medicaid funds in Georgia, Louisiana, and Florida.
“Harrell stole over $2 million dollars from the Medicaid program,” said U.S. Attorney Byung J. “BJay” Pak. “He stole those funds from several states and continued his fraud schemes even after he was released on bond. Our office will continue to prosecute those who believe they can steal from programs designed to help citizens in need.”
“The FBI makes it a priority to work with our federal and state partners to stop people from abusing government funded programs like Medicaid,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Abuse of these programs drives up their cost, hurting every single taxpayer in this country, but most importantly the low-income and elderly citizens who are entitled to the benefits they provide.”
“Harrell’s abhorrent actions are detrimental to the Medicaid program and the vulnerable beneficiaries it serves,” said Derrick Jackson, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “We will continue working closely with State and Federal law enforcement to protect these vital government healthcare programs.”
“This sentence is the result of the dedicated efforts by state and federal investigators and prosecutors from Georgia, Florida, and Louisiana who collaborated to protect the integrity of our government programs and bring down the ringleader of a multi-million dollar fraudulent scheme to steal from the taxpayers,” said Georgia Attorney General Chris Carr. “We’re proud to have worked together to obtain this outcome.”
Florida Attorney General Ashley Moody said, “Exploiting children’s personal information to steal public resources is not only reprehensible, it is illegal. This criminal even directed his employees to conceal his scheme by creating fake documents to support his fraudulent billing—of millions of dollars—to Medicaid. This man will now serve an extended sentence in prison.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Harrell and co-conspirators owned or worked with companies that purportedly provided mental health counseling and treatment to children and adults. These companies included Revive Athletics, Inc., R.A. Florida, Inc., Jode Counseling Treatment and Training Services, LLC, 118 Management and Consulting, Inc. and A Brighter Day, LLC. These companies billed over $3.5 million in Medicaid claims, and received approximately $2.5 million based on fraudulent billing.
According to the indictment, Harrell and co-conspirators fraudulently used the Medicaid provider numbers of mental health service providers, including a psychologist and licensed clinical social workers, located in Georgia and Florida. Harrell’s companies and related entities then used these identities to submit fraudulent Medicaid claims seeking payment for mental health services that were never provided. Harrell and his co-conspirators obtained Medicaid members numbers by stealing them from children’s summer and football camp registrations, from children placed in foster care, and from stolen government a document containing the numbers of 13,000 Louisiana Temporary Assistance for Needy Families (“TANF”) recipients.
Harrell attempted to conceal the fraud scheme by directing employees and contractors to create fraudulent documentation and forge provider signatures to support the fraudulent billing. Harrell initially started the fraudulent billing scheme in Georgia and replicated the scheme in Florida and then Louisiana before his arrest. While on pretrial release in this case, Harrell opened a new company in Louisiana and continued to fraudulently bill Louisiana Medicaid until his bond was revoked and he was detained pending trial.
Harrell, 44, of Atlanta, Georgia was sentenced by U.S. District Court Judge Steve C. Jones to 11 years in federal prison, and three years of supervised release and ordered to pay $2,543,629.98, in restitution. On December 19, 2019, Harrell pleaded guilty to one count of conspiracy to commit healthcare fraud and one count of aggravated identity theft.
Co-defendant Nikki Richardson, 44, of Fairburn, Georgia, was sentenced on January 29, 2020, to three years, and eleven months, three years of supervised release and ordered to pay $1,719,189.00 in restitution. Co-defendant Tomeka Howard, 44, of Decatur, Georgia pleaded guilty to healthcare fraud and aggravated identity charges and was sentenced to three years’ probation, with 18 months of home confinement, and ordered to pay $732,189.00 in restitution.
The case was investigated by the Georgia State Attorney General’s Medicaid Fraud Control Unit, the U.S. Department of Health & Human Services, Office of the Inspector General, the Federal Bureau of Investigation and the Medicaid Fraud Control Units for Florida and Louisiana.
Assistant U.S. Attorney Jeffrey Brown, Deputy Chief of the Complex Frauds Section, prosecuted the case. Georgia Assistant Attorney Generals Elizabeth Grofic and John Van Why also assisted with the prosecution.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Federal customs and border protection officer charged with smuggling 17 kilograms of cocaineRead the Press Release
ATLANTA - Ivan Van Beverhoudt has been arraigned on federal charges relating to importation of cocaine, possession with the intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking.
“This officer allegedly abused his office to engage in criminal conduct,” said U.S. Attorney Byung J. “BJay” Pak. “Federal law enforcement officers take an oath to uphold the law. When an officer violates that oath, he or she will be investigated and prosecuted to the fullest extent of the law.”
“A badge and a gun should be used for protecting the public, not for bypassing security to enable criminal activity,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Inspection (HSI) operations in Georgia and Alabama. “Corruption in law enforcement undermines the public’s trust and makes all of our jobs harder.”
“CBP officers take an Oath of Office, a solemn pledge that conveys great responsibility and one that should be carried out at all times with the utmost professionalism,” stated Todd Bellew, Area Port Director in Charlotte Amalie, St. Thomas, U.S. Virgin Islands. “Inappropriate behavior or misconduct is not tolerated, and does not reflect our values of vigilance, integrity and professionalism.”
“Van Beverhoudt allegedly abused his position as U.S. Customs and Border Protection Officer to smuggle drugs through the world’s busiest airport,” said DHS OIG’s Acting Special Agent in Charge Ronnie Tippett. “The public deserves better – they deserve officers who obey the laws that they are entrusted to enforce.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In January 2020, Ivan Van Beverhoudt was a sworn officer with the Department of Homeland Security Customs & Border Protection (“CBP”), stationed in the U.S. Virgin Islands. Part of Van Beverhoudt’s duties was the inspection of flights to prevent the importation of controlled substances on airplanes.
On January 10, 2020, Van Beverhoudt traveled on a flight from St. Thomas, U.S. Virgin Islands, through Atlanta, on his way to Baltimore, Maryland. At the time, Van Beverhoudt was carrying his U.S. Government-issued weapon that allowed him to bypass normal airport screening because he was a law enforcement officer “flying while armed.” When the flight arrived in Atlanta, Atlanta-based CPB officers at Hartsfield-Jackson Atlanta International Airport inspected the passengers on the flight with a K-9 handler and dog. As Van Beverhoudt passed by the K-9 handler and the dog, the dog alerted to his two carry-on bags.
CBP officers escorted Van Beverhoudt to an interview room where Van Beverhoudt claimed to be coming through Atlanta to see a doctor in Baltimore, although he could not identify the doctor or explain how the doctor would see him on the weekend and without a medical appointment. After the drug dog again alerted to his bags, CBP officers opened both bags and discovered 14 packages in one bag, and two additional packages in the other bag, containing a substance that field-tested positive for cocaine and weighed a total of 17.8 kilograms.
Ivan Van Beverhoudt, 40, of Saint Thomas, Virgin Islands, was arraigned before U.S. Magistrate Judge Regina D. Cannon. Van Beverhoudt was indicted by a federal grand jury on February 4, 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.
Homeland Security Investigations (HSI) and the Department of Homeland Security Office of Inspector General are jointly investigating this case.
Assistant U.S. Attorney Laurel R. Boatright is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Foreign currency trader pleads guilty to fraudRead the Press Release
ATLANTA – Kevin Perry has pleaded guilty to defrauding investors in a foreign currency trading scam that began when he was a teenager.
“Clients that invested with Perry’s company were assured they were secure from loss,” said U.S. Attorney Byung J. Pak. “Actually, Perry was enriching himself and paying off other investors. We encourage citizens to be cautious with investments, and to remember that if it sounds too good to be true, it probably is.”
“This guilty plea will be little solace to the victims who lost their savings because of Perry’s personal greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is determined to root out and prosecute anyone who undermines investor confidence at the expense of innocent victims.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Perry led investors to believe that his investment company, Lucrative Pips, was successfully earning substantial profits by investing in the foreign currency (or “forex”) market. Perry induced investors into sending money by signing agreements that claimed the investors’ initial investments were secure from loss. In actuality, Lucrative Pips was never registered as a commodity pool operator with the Commodity Futures Trading Commission.
Also, Perry had never generated the historical returns represented to investors, and he was using investor money to enrich himself or to pay off other investors, with the goal of enticing others to invest with him. Even after the Commodity Futures Trading Commission filed a civil complaint against Perry, he continued to make fraudulent investment pitches to potential investors, which included falsely promising an undercover agent that an investment of $10,000 would return a profit of $19,000 to $25,000 per month.
Kevin Perry, 22, of Cartersville, Georgia pleaded guilty before U.S. District Judge William M. Ray, II.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Thomas J. Krepp and Assistant U.S. Attorney Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crime Section, are prosecuting the case. The Commodities and Futures Trading Commission provided invaluable assistance throughout the course of the investigation.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Aviation maintenance student charged with bribing examiner to pass FAA’s mechanic’s examinationRead the Press Release
ATLANTA - Aviation maintenance student Frank A. Jalion Amaro has been charged with bribing a Federal Aviation Administration (“FAA”) Designated Mechanic Examiner in exchange for receiving a passing score on the FAA’s Airframe and Powerplant examination.
“The integrity of America’s civil aviation system is of paramount importance,” said U.S. Attorney Byung J. “BJay” Pak. “By allegedly trying to bribe his way into obtaining an FAA certification to repair aircrafts, Amaro put his personal ambitions ahead of the safety of others.”
“Blatant actions that seek to circumvent FAA certification requirements will not be tolerated,” said Todd A. Damiani, Regional Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General. “Together with our prosecutorial partners, we are committed to identifying and preventing those individuals willing to compromise the safety of the National Airspace System and the traveling public.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The FAA is an agency of the U.S. Department of Transportation that is responsible for the regulation and oversight of civil aviation in the United States, including the operation and development of the National Airspace System and the management of commercial space transportation. The FAA’s primary mission is to ensure the safety of civil aviation.
As part of its responsibility to protect the integrity and safety of the American civil aviation system, the FAA requires mechanics and repairmen to obtain an Airframe and Powerplant Certificate to perform maintenance on aircraft and approve equipment for returns to service. To receive an Airframe and Powerplant Certificate, the FAA requires mechanics to complete 1,900 hours of classroom and practical training and to pass several tests covering 43 technical subjects.
Amaro was a student at an aviation maintenance school in Las Vegas, Nevada. In late 2019, Amaro was preparing to take the examination to obtain an FAA Airframe and Powerplant Certificate. On November 19, 2019, Amaro contacted an FAA Designated Mechanic Examiner (“FAA Examiner”) in the Atlanta-metropolitan area. As a Designated Mechanic Examiner, the FAA authorized the FAA Examiner to perform activities on its behalf, including administering the Airframe and Powerplant examination.
Beginning on November 19, 2019, Amaro (using an alias and spoofed phone number) contacted the FAA Examiner and offered to pay the FAA Examiner a bribe payment in exchange for receiving a passing score on the Airframe and Powerplant examination. The FAA Examiner immediately reported Amaro’s bribe solicitation and, thereafter, agreed to work with federal law enforcement authorities.
Over the next several weeks, Amaro and the FAA Examiner agreed that Amaro would take the Airframe and Powerplant examination in Duluth, Georgia, on December 16, 2019. As part of the agreement, Amaro offered to pay the FAA Examiner $500 upfront and $2,000 on the day of the test, in exchange for receiving a passing score on the Airframe and Powerplant examination.
On December 9, 2019, Amaro sent the FAA Examiner $500 via a mobile payment service. On December 16, 2019, Amaro met the FAA Examiner in Duluth and paid the FAA Examiner $2,000 in cash for a passing score on the Airframe and Powerplant examination.
Based on the conduct set forth above, the U.S. Attorney charged Frank A. Jalion Amaro, 21, of Las Vegas, Nevada, in a criminal information with bribery. Notably, defendants who are charged via a criminal information, typically plead guilty shortly after being arraigned.
The Department of Transportation – Office of Inspector General is investigating this case.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney's Office for the Northern District of Georgia participates in unprecedented elder fraud sweepRead the Press Release
ATLANTA – U.S. Attorney Byung J. “BJay” Pak joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale to announce the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
“Combating fraud perpetrated upon elderly Americans is a top priority of my office and the Department of Justice,” said U.S. Attorney Byung J. “BJay” Pak. “Would-be criminals who prey upon elder U.S. residents and engage in such abhorrent conduct will be subject to criminal prosecution.”
Over the past year, the U.S. Attorney’s Office for the Northern District of Georgia has prosecuted numerous defendants who scammed thousands of Americans, including elder victims, out of over $12 million.
This interactive map provides state by state information on the elder fraud cases and education and prevention community outreach efforts highlighted by the sweep announcement.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the FBI Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Transnational Elder Fraud Strike Force
This office is one of six districts on the Department of Justice Transnational Elder Fraud Strike Force. The Transnational Elder Fraud Strike Force prosecuted more than one quarter of the defendants charged as part of the announced sweep. Established in June 2019, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Prosecutors in Strike Force districts brought cases against more than 140 sweep defendants. FBI and the Postal Inspection Service served as lead agencies in the Strike Force and committed substantial investigative resources to pursuing elder fraud cases as part of Strike Force efforts. The Strike Force has held dozens of meetings with industry, victim groups, and law enforcement at the federal, state, and local levels to identify the most harmful schemes victimizing American seniors and to bolster preventive measures against further losses.
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
Northern District of Georgia Elder Fraud Cases
Elder fraud prosecutions in this district over the past year included romance, retirement, impersonating the Internal Revenue Service, grandparent, timeshare, and investment fraud.
In 2019, our office prosecuted individuals involved in romance and retirement scams that target the elderly. 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. Alonge, et al., two defendants pled 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.
- In United States v. Adara, et al., one defendant pleaded guilty based upon his involvement in a Nigeria-based romance scam.
- In United States v. Oye, et al., three defendants pled guilty for their involvement in a West African organized crime group that laundered millions of dollars on behalf of various sophisticated fraud schemes, including romance and retirement fraud schemes. One defendant was sentenced to two years, three months in prison in January 2020.
- In United States v. Odus, et al., two defendants pled guilty and one was sentenced to 18 months incarceration for laundering funds on behalf of a West African group engaging in romance and retirement fund fraud.
- In United States v. MgBodile, the defendant was indicted for his alleged involvement in a romance scam that defrauded a Virginia woman out of more than $6.5 million.
We also prosecuted a number of cases in 2019 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 threaten potential victims with arrest, imprisonment, or fines if they do not pay supposed taxes, penalties, or fees. 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 United States v. Excellent Solutions BPO, et al., eight defendants pled 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 United States v. Charania, the defendant was sentenced to one year and four months imprisonment based on his involvement in an India-based call center scam that victimized over 340 people in the U.S., resulting in over $200,000 in losses.
- In United States v. Patel, the defendant was indicted for allegedly using fake identifications to retrieve over $150,000 from over 160 victims of India-based tele-fraud. He pleaded guilty to wire fraud on March 4, 2020.
- In United States v. Thakur, the defendant was indicted for his alleged involvement in an India-based call center scam that victimized approximately 288 people across the U.S., resulting in over $330,000 in losses.
In 2019, Cecilio Nemencio Rodriguez-Rivas was prosecuted for a wire fraud conspiracy in which he and others engaged in a grandparent scam. As part of the scam, co-conspirators of Rodriguez-Rivas made fraudulent telephone calls to elder victims purporting to be the victim’s grandchild. The callers pretended that they were in need of emergency funds, which Rodriguez-Rivas received in Georgia. Rodriguez-Rivas pled guilty and was sentenced to one year and one month in prison.
Also in 2019, our office indicted James Torchia, the CEO of a Georgia company named Credit Nation. Torchia allegedly ran a fraud scheme that caused investors, many of whom were elderly, to spend over $40 million on his company’s promissory notes. Torchia allegedly stole investors’ money by misrepresenting the security of their investments, and how he would use their money.
Katherine Craig was indicted in 2020 on federal charges of 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.
In addition to prosecuting cases involving elder victims, our office holds quarterly meetings for the Transnational Elder Fraud Strike Force. These quarterly meetings bring together federal, state, and local partners to discuss the latest scams targeting elder Americans, share investigative techniques, and coordinate in the investigation and prosecution of these transnational scams.
The charges are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
We engage in community outreach to educate local law enforcement and residents about how they can assist in the fight against, and protect themselves from, fraud schemes that target elder Americans. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Illegal alien sentenced for possessing with intent to distribute heroin, fentanyl, carfentanil, and methamphetamineRead the Press Release
ATLANTA - Nicholas Hernandez-Gonzalez has been sentenced for possessing with intent to distribute multiple kilograms of fentanyl and other opioids on May 16, 2019 when agents with Homeland Security Investigations (“HSI”) and Georgia State Patrol (“GSP”) seized one kilogram of fentanyl during a traffic stop and more than ten kilograms of heroin, fentanyl, and carfentanil from his apartment in Duluth, Georgia.
“Hernandez-Gonzalez endangered countless people with the quantity of extremely dangerous drugs he was mixing and storing in his apartment,” said U.S. Attorney Byung J. “BJay” Pak. “This case highlights the risks for drug users and their families – you do not know what is in the drugs sold on the street. Fortunately, our law enforcement partners work tirelessly to remove these dangerous products from our streets.”
“The reckless manner in which Hernandez-Gonzalez mixed and sold his illegal drugs placed the entire community at risk. Powerful opioids like fentanyl have the potential to kill just by contact. I’m relieved that this defendant’s days of poisoning our community are over,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “Combatting the importation of fentanyl into the country and its distribution remains a top priority for HSI and its partners across Georgia.”
According to U.S. Attorney Pak, the charges and other information presented in court: In April 2019, HSI agents identified Hernandez-Gonzalez as a drug dealer selling what he claimed was simply heroin, but which actually contained a mixture of significantly more potent synthetic opioids - fentanyl and carfentanil. Fentanyl is 50 times more potent than heroin, and carfentanil is 100 times more potent than fentanyl.
On May 16, 2019, a GSP trooper stopped Hernandez-Gonzalez shortly after he left his apartment, and seized a cellophane-wrapped bundle that contained one kilogram of fentanyl from the backseat of his car. Hernandez-Gonzalez claimed the bundle contained heroin that he was delivering to a customer. Later that day, HSI agents searched Hernandez-Gonzalez's apartment and found nearly 10.5 kilograms of heroin, fentanyl, and carfentanil, a gun, and evidence that Hernandez-Gonzalez had been mixing various substances in the sparsely-furnished apartment. Specifically, one large plastic box in the master bedroom contained three kilograms of heroin and another box contained nearly four kilograms of a mixture of fentanyl and carfentanil. Agents also found ten bundles of powder containing methamphetamine and another kilogram of mixtures of fentanyl and carfentanil hidden inside a hole that had been cut into the master bedroom closet.
According to immigration records, Hernandez-Gonzalez had previously been deported to Mexico on two occasions in 2013.
Nicholas Hernandez-Gonzalez, 36, of Duluth, Georgia, was sentenced by U.S. District Judge Orinda D. Evans to 17 years, six months in prison to be followed by five years of supervised release. Hernandez-Gonzalez was convicted on these charges on August 29, 2019, after he pleaded guilty. Hernandez-Gonzalez will be deported to Mexico following his sentence of imprisonment.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated this case.
Assistant U.S. Attorney Nicholas Hartigan prosecuted 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.
Hospice to pay $1.75 million to resolve false claims act allegationsRead the Press Release
ATLANTA - STG Healthcare of Atlanta, Inc. (“STG Healthcare”) and two of its senior executives, Paschal “Pat” Gilley and Mathew Gilley, have agreed to pay $1.75 million to resolve allegations that STG Healthcare, operating as Interim Healthcare of Atlanta, submitted or caused the submission of false claims to Medicare and Medicaid for patients who were not eligible for the hospice benefit and that resulted from STG Healthcare’s provision of unlawful payments to a referring physician in violation of the Anti-Kickback Statutes.
“Hospice is not a blank check for unscrupulous medical providers willing to admit patients who are not terminally ill,” said U.S. Attorney Byung J. “BJay” Pak. “It is reserved for those who truly need it. We will also continue to prioritize cases where it appears that a medical decision, especially the decision to forego curative treatment, has been influenced by a kickback.”
“When healthcare providers put their financial interests above the needs of patients the federal funds are diverted from where they are truly needed, putting our most vulnerable citizens at risk,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The message is clear; the FBI will not tolerate companies who file false claims to generate more corporate revenue and take advantage of programs like Medicare & Medicaid.”
“As more Americans choose hospice care, more government funding is being provided to this critical service. Unfortunately, scammers are seizing an opportunity to steal precious funding by enrolling ineligible patients in hospice care,” said Derrick Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “With our law enforcement partners, we will continue to protect patients and the programs on which they depend.”
“The hospice benefit provided by Medicaid is especially reserved for terminally ill Georgians at a critical time of transition in their care,” said Attorney General Chris Carr. “Our office is proud to have worked alongside the U.S. Attorney’s Office for the Northern District of Georgia in this effort, and we will continue to ensure the hospice benefit is not exploited and abused by health care providers to the detriment of Georgia taxpayers.”The Medicare and Medicaid hospice benefit is available for patients who elect palliative treatment (medical care focused on providing patients with relief from pain, symptoms, or stress) for terminal illness and who have a life expectancy of six months or less if their illness runs its normal course. Before billing government healthcare programs, a hospice provider must comply with Medicare and Medicaid’s requirements and ensure that patients who are foregoing curative care are in need of end-of-life care.
The government alleges that, between 2013 and 2017, STG Healthcare submitted claims for patients who were not terminally ill. Specifically, the government contends that STG Healthcare’s business practices—setting aggressive goals for enrolling patients and failing to supervise properly the admission practices of its staff and medical directors—resulted in the submission of claims for ineligible patients. The government also alleges that STG Healthcare submitted or caused the submission of claims to Medicare and Medicaid for services provided to individuals referred by a physician who STG Healthcare paid to be a “back up” medical director, but who did not serve as a legitimate hospice physician.
The settlement resolves allegations filed by Serita Samuel and Miranda Eskridge, former STG Healthcare employees, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States and State of Georgia ex rel. Eskridge v. STG Healthcare of Atlanta, Inc. et al., No. 1:16-cv-0688-LMM (N.D. Ga.). Ms. Samuel and Ms. Eskridge will receive a share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The U.S. Attorney’s Office for the Northern District of Georgia, the FBI, the U.S. Department of Health & Human Services Office of Inspector General, and the Georgia State Attorney General’s Medicaid Fraud Division investigated this case.The civil settlement was reached by Assistant U.S. Attorney Austin Hall and Georgia State Assistant Attorneys General Sara Vann and Rick Tangum.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Former supervisor in DeKalb County’s Tax Commissioner’s Office charged with bribery and blackmailRead the Press Release
ATLANTA - Gerald D. Harris, a former supervisor in DeKalb County’s Tax Commissioner’s Office, allegedly accepted bribe payments from customers to register unlawfully vehicles and then tried to blackmail a bribe payer by threatening to inform on her to the FBI.
“Harris traded his integrity for money and betrayed the trust of the citizens of DeKalb County by allegedly accepting bribe payments,” said U.S. Attorney Byung J. “BJay” Pak. “Then, in an audacious display of bravado, Harris attempted to blackmail one of those bribe payers.”
“The FBI stands firm with its partners in law enforcement to expose public officials who choose their own financial interest over the taxpayers they serve,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The crimes Harris is charged with erode the public’s trust in government and we will continue to vigorously pursue any public official who chooses to violate that trust.”
“Gerald Harris not only abused his position of public trust for his own gain, but also attempted to extort another involved in the scheme. Such actions by a public official will not be tolerated. The DeKalb County District Attorney’s Office will continue to support its law enforcement partners, as well as the DeKalb County Tax Commissioner’s Office, in ensuring Harris is held fully accountable for these crimes,” said DeKalb County District Attorney Sherry Boston.
“Taking bribes to illegally register vehicles is an egregious crime that compromises the public’s trust of public servants throughout all levels of government,” stated Department of Revenue Commissioner David Curry. “Bad actors such as Mr. Harris have no place in public service.”
“I am pleased to see that charges have been brought in this case. Since our staff uncovered this illegal activity, we’ve continued to work closely with the authorities for months to assist in the investigation of Mr. Harris. Protecting the integrity of our operation and the interest of DeKalb taxpayers is our top priority. We remain committed to reviewing our procedures and training our staff to detect fraudulent activity and improper behavior. On behalf of DeKalb taxpayers, we thank law enforcement for working quickly and collaboratively to bring this case to justice,” 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 was 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’s 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 accepted 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 more than $30,000 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, 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. Notably, defendants who are charged via a criminal information, typically plead guilty shortly after being arraigned.
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.
Federal inmate sentenced to additional prison time for using a contraband cell phone to post videos to FacebookRead the Press Release
ATLANTA – Brian J. Wilson, an inmate at the United States Penitentiary in Atlanta (“USP Atlanta”) has been sentenced to an additional three months in prison for using a contraband cell phone to post photographs and videos onto Facebook from his cell at the prison.
“Contraband cell phones are pervasive in prisons and dangerous in the hands of inmates in any prison facility,” said U.S. Attorney Byung J. “BJay” Pak. “Cell phones can, and often do, become a tool used by inmates to run illicit schemes, intimidate people outside of the facility, or as in this case, simply flaunt that they have one. The federal government will continue to combat their use through vigorous prosecutions and the imposition of consecutive prison sentences.”
“By continuing to break the law while incarcerated, Wilson has not learned from his past transgressions,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is using every resource possible to stop the proliferation of contraband cell phones in our prisons and hopefully this additional sentence will send a clear message that their use will not be tolerated.”
According to U.S. Attorney Pak, the charges, and other information presented in court; USP Atlanta is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. The Cell Phone Contraband Act of 2010 made it a crime for federal inmates to possess or use cell phones while incarcerated.
On March 24, 2015, Wilson was sentenced to ten years in prison after sustaining a conviction for possession of a stolen firearm. Since approximately May 3, 2018, Wilson has been an inmate at USP Atlanta.
As an inmate, Wilson possessed a cell phone in USP Atlanta. Between late-May and July 2019, Wilson used his cell phone to post images to and to live stream content onto the social media platform Facebook from his prison cell. In fact, Wilson posted a “selfie” photograph onto his Facebook account of himself holding a cell phone while in his prison cell. Ironically, in a live stream video, Wilson warned people that federal cases have significant prison sentences, lamenting that “federal law ain’t playing” because “the United States will lock you … up” if you are convicted of a federal crime.
Prior to his guilty plea, Wilson was scheduled to be released from custody in the fall of 2022. Under federal law, however, inmates convicted of possessing contraband in prison must receive consecutive (or additional) prison time after their original sentence is completed.
On November 21, 2019, Brian J. Wilson, 32, of Atlanta, Georgia, pleaded guilty to possessing a contraband cell phone in prison. Based on the plea, the Court sentenced Wilson to an additional three months in prison.
The FBI and the Bureau of Prisons investigated this case.
Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Assistant U.S. Attorney Carolyn Cain Burch prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office credited with over $169 million collected in civil and criminal actions in fiscal year 2019Read the Press Release
ATLANTA - U.S. Attorney Byung J. “BJay” Pak announced today that the Northern District of Georgia was directly and jointly responsible for over $169 million in criminal and civil collections for Fiscal Year 2019. Included in this amount were funds paid directly to the Northern District of Georgia of $23,963,457.52. Of this amount, $9,510,094.82 was collected in criminal actions and $14,453,362.70 was collected in civil actions. Additionally, the Northern District of Georgia was credited with recovery of an additional $145,287,404.95 for joint investigations worked with other U.S. Attorney’s Offices and components of the Department of Justice.
“Collecting restitution owed to victims of crime and recovering funds stolen from the federal government are among our highest priorities,” said U.S. Attorney Byung J. “BJay” Pak. “We understand that deterring crime and fraudulent conduct requires that we create disincentives through aggressive collection efforts. Here in the Northern District of Georgia, crime doesn’t pay but persons who violate our laws do.”
The largest collection of over $108 million in criminal penalties and civil settlements was the result of a joint investigation by criminal prosecutors and civil attorneys from Northern District of Georgia, along with attorneys at the Department of Justice and the Northern District of Ohio, and law enforcement partners at the Office of Inspector General of the Department of Health and Human Services, the Federal Bureau of Investigations and other federal agencies. Working together, these federal agencies held accountable Avanir Pharmaceuticals, a California-based company. Avanir was alleged to have violated the Anti-Kickback Statute and the False Claims Act by, among other things, paying doctors to become high prescribers of Nuedexta, a drug treating pseudobulbar affect (PBA), to beneficiaries of federal healthcare programs. The government alleged that Avanir implemented a strategy to market Nuedexta in long-term care (LTC) facilities for uses other than PBA that had not been approved by the FDA and were not medically accepted indications as defined by the statutes and regulations governing the Federal health care programs. Under a deferred prosecution agreement, Avanir agreed to pay a monetary penalty in the amount of $7,800,000, and a forfeiture in the amount of $5,074,895. It also agreed to pay $95,972,017 to the United States to resolve allegations under the False Claims Act related to its marketing of Nuedexta.
In another affirmative civil enforcement action, the Northern District of Georgia recovered $750,000 for violations of the False Claims Act from DeKalb County and Worksource DeKalb. This settlement resolved allegations that they failed to ensure federal grant funds were used to benefit those who qualified for the Department of Labor's On-the-Job Training (OJT) Programs and not used to subsidize the wages of County employees who were ineligible for the OJT Programs.
The U.S. Attorney’s Offices, along with the department’s litigating divisions, are also responsible for enforcing and collecting criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Highlights among the thousands of criminal collections on behalf of victims recovered in 2019 are a full pre-sentence payment of approximately $191,088 in the case of U.S. v. Morgan, an insurance fraud case, and a collection of $116,249 in U.S. v. Howle, a tax fraud case.
Additionally, the Northern District of Georgia, working with partner agencies and divisions, collected $10,603,801.00 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia woman pleads guilty to social security fraudRead the Press Release
ATLANTA - Valencia D. Williams has pleaded guilty to Social Security fraud. Williams received Supplemental Security Income (SSI) from the Social Security Administration because she claimed that she was so disabled by anxiety and depression that she spent most of her time in her room and could not work. In fact, she was working as an exotic dancer at a local adult entertainment club under the name “Chrissy the Doll.” SSI is a needs-based disability benefits program. Individuals who are over a certain income threshold or are not disabled cannot collect SSI.
“The Social Security Administration's SSI program is intended for individuals whose income is below the federal poverty guidelines, who are truly disabled, and cannot engage in work activity,” said U.S. Attorney Byung J. “BJay” Pak. “Williams was able to work and therefore she was not disabled. Moreover, the income she received by working would have likely rendered her ineligible for SSI. By getting SSI, when she did not qualify, she stole money from the most needy members of our communities: the poor and the disabled.”
“This plea serves as a warning to anyone who would conceal earnings or medical improvement from the Social Security Administration so they can continue receiving payments,” Special Agent in Charge Rodregas Owens, Social Security Administration Office of the Inspector General, Atlanta Field Division. “My office is committed to ensuring the integrity of Social Security’s benefit programs, which are a lifeline for so many truly disabled people in this country.”
“When individuals are approved for certain Social Security benefits, they automatically become entitled to Medicare and Medicaid,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This case represents how federal agencies can leverage precious resources to protect vital taxpayer-funded programs.”
According to U.S. Attorney Pak, the charges and other information presented in court: In or about July 2010, Williams applied for and began receiving SSI benefits based on her assertion that she was disabled by major depressive disorder and panic disorder. When she began receiving SSI, she was informed that she had to report any work activity to the SSA. As early as September 2014, she began working as an exotic dancer, using the stage name “Chrissy the Doll,” at Stoker's Adult Entertainment Club in DeKalb County. In fact, she obtained adult entertainer permits from DeKalb County in 2014, 2015, 2017, and 2018.
In 2018, as part of a review to determine if Williams continued to be disabled, Defendant told the SSA that she stayed in her room 99 percent of the time and swore that she had not worked in years. Later, in March 2019, she reported to the SSA that she was bedridden and only went outside three times per week. In fact, none of this was true. She regularly danced at Stroker's, during the night shift, often until 4:00 am. Williams received over $60,000 in federal funds that she was not entitled to receive.
Sentencing for Valencia D. Williams, 31, of Lithonia, Georgia, is scheduled for May 26, 2020, at 10:00 a.m., before U.S. District Court Judge Timothy C. Batten
The Social Security Administration - Office of the Inspector General investigated this case.
Special Assistant U.S. Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Alabama man sentenced for stealing 900 laptops worth nearly $250,000 from tractor-trailerRead the Press Release
ATLANTA - Gevorg Kevliyan has been sentenced for stealing 900 ACER Chromebook laptops from a tractor-trailer.
“The defendant’s cargo theft highlights how much these crimes financially impact local economies,” said U.S. Attorney Byung J. “BJay” Pak. “These crimes also affect potential customers who buy these products, as well as employees and communities where these companies operate.”
“This conviction demonstrates the great work of law enforcement at all levels to investigate and prosecute major cargo theft affecting Georgia and our surrounding states. The GBI remains committed to working with our local and federal partners to address these types of crimes,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the charges, and other information presented in court: On June 21, 2017, Acer Incorporated contracted with a trucking company to deliver 15 pallets of 900 Acer Chromebook laptops valued at $245,000 from a packaging facility in California to a Costco distribution center in College Park, Georgia. Due to problems with the purchase order paperwork, Costco rejected the shipment once it arrived. Gevorg Kevliyan was then hired to drive the tractor-trailer containing the laptops back to California. Once Kevilyan took control of the truck, however, he reported it to be empty. He later claimed to have traveled to Chicago, Illinois, to pick up another load of cargo before returning to California.
Contrary to Kevilyan’s statement, GBI agents obtained records from a weigh-station in Ringgold, Georgia, where Kevliyan stopped on his way to Chicago. The records indicated that Kevliyan’s truck weighed several thousand pounds more than would be expected for an empty tractor-trailer, consistent with a load of 900 laptops.
GBI agents traveled to Chicago, where they used GPS information from the truck to locate surveillance footage from a Chicago warehouse. The video showed a tractor trailer matching Kevliyan’s arriving on the evening of July 5, 2017. Approximately 15 pallets were then unloaded by the on-site janitor and several other unknown men. The pallets matched the appearance of the Acer laptops. When later located and interviewed, the janitor described being contacted by the owner of a nearby business to unload the truck for $250. On July 18, 2017, he later loaded the same pallets onto another truck with a different driver for an additional $250.
Agents also obtained gambling records from the Virgin River Hotel and Casino in Mesquite, Nevada, which showed that Kevliyan gambled with over $11,000 in cash after arriving at the casino from Chicago.
Gevorg Kevliyan, 51, of Decatur, Alabama, was sentenced by U.S. District Judge J.P. Boulee, to one year in prison, to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $245,000.
The Georgia Bureau of Investigation’s Major Theft Unit investigated this case, with assistance from the Chicago Police Department, the National Information Crime Bureau (NICB), CargoNet.com, and the Southeast Transportation Security Coalition (SETSC).
The Major Theft Unit is responsible for investigating instances of cargo theft throughout the State of Georgia and is a collaboration between the GBI and the Georgia Department of Public Safety’s Motor Carrier Compliance Division.
Assistant U.S. Attorney Scott McAfee prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former federal and local law enforcement officer sentenced to ten years in prison for stealing drugs and falsifying a police reportRead the Press Release
ATLANTA – Former Gwinnett County Sheriff’s Deputy Antione Riggins has been sentenced to ten years in federal prison following his guilty plea to drug trafficking and making a false statement to cover up his drug crimes. Riggins committed these crimes while employed as a federal and local law enforcement officer.
“Riggins put dangerous drugs back on the street after they had been seized by law enforcement,” said U.S. Attorney Byung J. “BJay” Pak. “He violated the most basic oath of officers to protect the public. His conviction and sentence is a victory for the rule of law, and it shows that there are severe consequences for abusing the public’s trust.”
“Instead of enforcing the laws he swore to uphold, Riggins abused his position by stealing drugs and falsifying evidence reports,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This case is a reminder that no officer is above the law. The FBI would like to thank our state and local law enforcement partners, as well as the US Attorney’s Office, for bringing this corrupt officer to justice.”
“Riggins’ crimes extend beyond his lies and the drugs he stole, he also stole the public’s trust when he betrayed his oath to enforce the law,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “Removing this corrupt officer from our midst helps restore public confidence in our strong law enforcement team. HSI Atlanta will continue to work with our great local, federal and state partners to make our communities safer.”
“This former officer violated his oath of office and the public’s trust. Corruption within the law enforcement ranks will not be tolerated. The GBI is committed to working with local and federal partners to investigate these types of crimes to ensure the public trust of officers is upheld,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the charges, and other information presented in court: in 2017, Riggins was a federally-deputized task force officer with Homeland Security Investigations (HSI), while also employed as a deputy sheriff with the Gwinnett County Sheriff's Office (GCSO). In these roles, Riggins was responsible for investigating drug trafficking cases and transporting seized drugs from HSI crime scenes to the GCSO evidence room.
On February 23, 2017, HSI seized three kilograms of cocaine following a high-speed car chase and crash on I-285. HSI identified the suspected owner of the cocaine, even though he fled from the crash and was not apprehended. HSI agents tasked Riggins with transporting the cocaine to the GCSO evidence vault. The next day, however, Riggins checked only one kilogram of cocaine into evidence, not three, and he failed to secure a warrant for the arrest of the cocaine trafficker. Riggins also made a false document to cover up his cocaine theft. In particular, Riggins created and submitted a falsified evidence form claiming that the identity of the drug trafficker was unknown, and that only one kilogram of cocaine was seized at the scene.
On July 14, 2017, HSI seized approximately six kilograms of methamphetamine from an Atlanta hotel room. An HSI agent tasked Riggins with transporting the methamphetamine to the GCSO evidence vault; however, none of the methamphetamine was subsequently checked into evidence.
Three days later, on July 17, 2017, HSI seized approximately four kilograms of heroin and 172 oxycodone pills from a metro-Atlanta stash house. Once again, Riggins was made responsible for transporting the drugs to the evidence room. Riggins stole all but 96 grams of the heroin.
Riggins’s role at HSI ended in early 2018, and his employment with the GCSO ended after these alleged actions came to the attention of law enforcement in May 2018.
Antione Riggins, 41, of Loganville, Georgia, has been sentenced to ten years in prison, to be followed by five years of supervised release. Riggins pleaded guilty to these charges on November 25, 2019.
The Federal Bureau of Investigation, the Department of Homeland Security - Office of the Inspector General, and the Georgia Bureau of Investigation investigated the case, with the assistance of the Gwinnett County District Attorney’s Office.
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.